CAAP Implementation and Carbon Pricing
Climate Action and Environmental Committee Meeting –
March 15, 2022
CAAP—Carbon
Reduction Goals
The CAAP proposes a
range of actions to
reduce greenhouse gas
emissions and
dependence on carbon
in energy, buildings,
transportation, and
waste
2 CAAP—Carbon Reduction-Related Objectives
3 Building and Energy
• Transition to a carbon-free, more
resilient electricity system
• Ensure new buildings are low-carbon or
carbon-neutral
• Reduce emissions from local oil and gas
extraction
Transportation Waste
• Reduce how much waste we generate
• Materials that can be recycled are
recycled
• Collect all organic waste for composting
or clean energy generation
• Decrease reliance on personal motor
vehicles and increase transit, biking,
and walking trips
• Shift to low- and zero-emissions
vehicles to move people and freight
• Emissions are reduced by shifting to
cleaner equipment and vehicles
• Air quality impacts from local oil and
gas operations are minimized
Air Quality
CAAP—How we Measure our GHG Emissions
4 • CAAP analyzed emissions from a variety of perspectives:
• Production based
• Consumption based
• Oil & lifecycle emissions
• However, per guidance from the State and to align with AB 32 and other legislation, CAAP reduction targets are based on “BASIC” production inventory, focusing on everything in the city boundaries that is in the city’s control (excludes, e.g., airplane and certain waterborne emissions) Long Beach Average Household Carbon Footprint (Consumption-Based) 5 • 2015: 13 million barrels of crude oil and 5 billion cubic feet of natural gas produced in LB, resulting in 8.3 million MT CO2e life cycle emissions • Approximately 96 percent of the city’s oil and gas life cycle emissions are attributed to crude oil, and the remaining 4 percent result from natural gas Life Cycle Emissions
Fossil Fuels
6 Long-Term Strategy
• Local action to replace fossil fuel consumption in Long Beach with clean electricity and other renewable energy sources
• Support efforts to minimize global demand for oil and gas extracted in LB • Investments in future carbon capture technology
CAAP—Production Inventory
7 • California is one of 13 states in the U.S. that has a carbon pricing or emissions trading program, but there is no nationwide carbon tax • Launched in 2013, California’s Cap-and-Trade system is one strategy among many aimed at reducing greenhouse gas emissions—by setting a statewide limit on emissions and selling emission allowances • Revenues from the program are put into the Greenhouse Gas Reduction Fund, which invests in programming to further reduce emissions—$12.5 billion in revenues since the start of the program
California’s Cap-and-Trade Program
8 Benefits to Long Beach of California Cap & Trade
9 AB 32 proceeds invested in city GHG
reduction strategies in disadvantaged and
low-income communities ($5.9M in FY22)
Project examples:
• Direct Install for Multi-Family Efficiency
(Water)
• Energy-efficient facility and appliance
upgrades
• Streetlight LED conversion
• EV charging infrastructure
• Solar and battery storage
• Tree planting
State Greenhouse Gas Reduction Fund (GGRF) grants available to the City and partners:
• Affordable Housing and Sustainable Communities Program (AHSC) awarded the City $13,975,653 for Las Ventanas affordable housing project in 2018 and AHSC has also supported Century Villages at Cabrillo; 2 other AHSC applications pending • Caltrans granted the City approximately $1 million for UPLAN Phase II effort to reduce GHGs through coordinated land use and transportation strategies • Conservation Corps of Long Beach-- tree planting and other services in disadvantaged communities throughout the City
• Los Cerritos Wetlands Authority (LCWA)- funding to protect and maintain wetlands in the City
• CA Air Resource Board- funding to implement the Clean Vehicle Rebate Project and Enhance Fleet Modernization Program
Benefits to Long Beach of California Cap & Trade
10 Carbon Pricing
11 • Market-based strategy to increase the price of carbon extraction and production, thereby making fossil fuel sources less competitive • Carbon fees would be collected on producers or importers of fossil fuels • By increasing the cost of production and use, proposals aim to reduce emissions and drive clean energy innovation
• Legislative proposals for carbon pricing differ on:
• Emissions and entities covered
• Level of the tax/price
• How the revenue is used
General Policy Approach
Place a fee on
carbon, collected at
the source based on
dollar amount per
metric ton
Collected carbon
fees are returned
to households
each month in the
form of a monthly
dividend
Example:
Energy
Innovation and
Carbon
Dividend Act
12 • Continue to support legislative and funding proposals that help to advance the City’s CAAP objectives to reduce carbon emissions, with an equity lens for how to best support communities most impacted by climate change
• Continue to support policies that distribute resources to the City to implement CAAP programs and projects
• Identify long-term, sustainable revenue sources to invest in carbon reduction efforts–as carbon use declines, so do carbon-based revenues • Support policies that compliment or advance the State’s Cap-and-Trade Program, which has benefited the City
Staff Recommendations for Advocacy
13 Thank you!