OBAMA SETS BAR FOR NEW ENERGY AT CALIFORNIA HEIGHT

The President-elect has not only nominated Californians to key positions on his energy team (Secretary of Energy, head of the White House Council on Environmental Quality), he has been quite clear about his model for developing New Energy and Energy Efficiency.

President-elect Obama:“It is very important just to look at the history when it comes to the regulation of emissions in California…Consistently, California has hit the bar and then the rest of the country has followed.”

The message is NOT that America needs a superhero but that the superhero needs America. From LCV2008 via YouTube.

If the incoming administration allows California to institute its own, stricter- than-the-national-standard auto emissions requirements, for which the state petitioned the Bush administration but was denied, 17 states will institute the same standards. This could drive a higher national standard by leaving the carmakers with no better choice than leading the way.

Charles Territo, spokesman, Alliance of Automobile Manufacturers: “While we share the goals of California and the Obama administration [on emission reduction], we continue to believe the best way is through a single national standard rather than a state-by-state patchwork of regulations…”

California has been generating policy in support of New Energy, and especially solar energy, since the 1970s. While other states and regions may not have California’s resources, the state has demonstrated how effectively designed policy generates productive capacity expansion. The incoming administration's commitment to a strong national Renewable Electricity Standard (RES) requiring U.S. utilities to obtain 10% of their power from New Energy sources by 2010 and 25% by 2025 shows it intends to follow California's lead.

California’s Silicon Valley electrical engineers have been conceptualizing a national, high-capacity transmission system and a “smart” grid for many years. The President-elect has indicated he may use part of the economic stimulus package to put the IT mavens to work on the project.

Robert Hines, vice president, Silicon Valley Leadership Group: “These candidates are not Johnny-come-latelies…We’re already ahead of the game, but this will grow jobs out of Silicon Valley.”

California has historically been tough on offshore oil drilling and the President-elect may want the state to push him away from his reluctant acceptance of it during the election campaign. On the other hand, there have been recent indications Californians will accept limited offshore drilling. Their leadership there might allow Obama to back limited, responsible offshore oil drilling and thereby deal away a potential filibustering obstruction of his New Energy agenda by fossil fuel industry-backed Senate conservatives.

California recently approved the Western Climate Initiative (WCI) cap-and-trade emissions reduction program. Regional acceptance of cap-and-trade, led by California Governor Arnold Schwarzenegger in the WCI (as well as a host of New England leaders in an analogous Northeastern agreement) clearly prepares the ground for the emissions reduction plan President-elect Obama has called for at the national level.

Eileen Tutt, Deputy secretary, California Environmental Protection Department: “We would really like to see national action on climate change. We would like to see a cap in place…Our state is already on the cutting edge. But with Sutley and Chu in the administration, it will make a huge difference.”

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Obama looks West for energy plan
Erika Lovley, December 22, 2008 (Politico)

WHO
President-elect Barack Obama; Nobel Laureate in physics Steven Chu, former head of Lawrence Berkeley National Laboratories, Secretary of Energy-designate; Nancy Sutley, former Los Angeles Deputy Mayor, nominee for head of the White House Council on Environmental Quality; Senator Ken Salazar (D-Colo), Secretary of Interior-designate

WHAT
The President-elect has praised California’s accomplishments in New Energy and Energy Efficiency and stocked his energy team with Californians.

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WHEN
- California auto efficiency standard: 36 mpg by 2016.
- Federal auto efficiency standard: 35 mpg by 2020.
- California’s Renewable Electricity Standard (RES) calls for its utilities to obtain 20% of their power from New Energy sources by 2010.
- A national cap-and-trade system may be legislated in 2009, depending on the economy.

WHERE
- The state of California’s energy and environmental plan could be a template for the U.S.
- California has petitioned the Supreme Court is auto emissions standard.
- The national standard auto efficiency standard was established in the last Bush administration energy bill.
- The states that have signed on in one way or another to the California standard: Connecticut, Maine, Maryland, Massachusetts, New Jersey, New York, Oregon, Pennsylvania, Rhode Island, Vermont, Washington, Arizona, Colorado, Florida, New Mexico, Utah and Illinois.
- The cap-and-trade system in California and that proposed by the President-elect are similar to the EU Emissions trading Scheme.

WHY
- California action may prefigure the incoming administration’s action on emissions standards, New Energy, transmission, offshore oil drilling and cap-and-trade.
- Emissions standards: The Bush administration blocked California from establishing its own auto emissions standard and the Obama administration is to remove the impediment. This could drive Congress to approve a matching national standard.
- New Energy: Secretary designate Chu studied and supported New Energy, especially solar energy, in his tenure as head of Lawrence Berkeley National Labs.
- Transmission: Silicon Valley sees development of solar energy and a “smart grid” as the next focus of its electrical engineering genius.
- Offshore oil drilling: Santa Barbara, which suffered seminal oil spill damage in the 1970s, recently approved new offshore drilling, suggesting the attitudes may be shifting in California from disdain to disinterest.
- Cap-and-trade: (1) Governor Schwarzenegger instigated the Western Climate Initiative, a proposed emissions trading collective of western states and Canadian provinces; (2) Senator Barbara Boxer (D-Calif.), chair, Senate Environment and Public Works Committee, will push climate change legislation similar to the new President’s proposals in the upcoming Congress.

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QUOTES
- Rhone Resch, President, Solar Energy Industries Association: “Living out in California, Chu’s seen firsthand what a clean energy economy can be…Now, he has the opportunity to translate that experience into a nationwide economy…”
- Dan Naatz, lobbyist, Independent Petroleum Association of America: “We have always known California will be a challenge. And we know that with the addition of these folks coming on, it will be a significant challenge…”