Transportation Politics and Policy
Transcript of Transportation Politics and Policy
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Transportation Politics and Policy
Nick Nigro
Solutions Fellow
Pew Center on Global Climate Change
TRB Environment and Energy Research ConferenceJune 9, 2010
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Presentation Overview
• Basics of Climate Policy
– All Levels of Government Play a Role
– Need for Complementary Policies
• Reducing GHG Emissions From Transportation
• Climate Change Politics
– Debate at the Federal Level
• Kerry-Lieberman Bill
– Transportation coverage and impacts
– Waxman-Markey comparison
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Basics of Climate Policy
All Levels of Government Play a Role, Need
for Complementary Policies
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Multi-level, Multi-pronged Approach
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City State Regional Federal International
Cap and Trade
Tax Policies
Land Use/VMT
System Efficiency
Tech Transfer
Low-Carbon Fuel Standard
Vehicle
Standards
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Recent State Action
January, 2010
•RGGI working on LCFS framework for 2011 per MOU
•CA adopts LCFS to start in 2011
March, 2010
•WV passes anti-idling law for trucks
•OR requires GHG reductions in transportation planning
May, 2010
•MD passes tax credit for plug-in electric vehicles
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US GHG Cap-and-Trade Programs
• 23 states participating in/developing cap-and-trade
• These states emit ~37% of total US emissions
• Three regional cap-and-trade programs
• Three regional initiatives are collaborating on cap-and-trade
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Participant
Observer
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Abatement From Waxman-Markey
Source: U.S. EPA
Transportation
needs more than
cap-and-trade
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Reducing GHG Emissions From
Transportation
Fuels, Vehicles, Vehicle Miles Traveled,
System Efficiency
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GHG Emissions From Transportation
• 27% of total GHG
emissions in U.S.
• Over 85% of
transportation GHGs
are from surface
transportation
• Almost all
transportation GHGs
are from fuel
combustion
Passenger
Cars
34%
Light-Duty
Trucks
29%
Medium-
and
Heavy-
Duty
Trucks
21%Aircraft
8%
Other
8%
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Transportation Policy Options
• Fuels– Covering fuels in cap-and-trade
– LCFS
• Vehicles– CAFE
– GHG Standards
• VMT– HOV lanes, carpooling, transit
• System Efficiency– Public spending on smarter transportation
system
Transportation GHG
Reductions
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Fuel Policy Options: Low-Carbon Fuel
Standard
• Carbon intensity standard for fuel
lifecycle
• Creates a market for low-carbon fuels
– Gasoline, biofuels, electricity, natural gas,
hydrogen, etc.
• Allows credit trading
• California’s LCFS will reduce intensity by
10% below 2010 levels by 2020
– Reduce GHG emissions by 15 MMT in 2020
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Importance Of A Global Perspective
0
100
200
300
400
500
600
700
India China Brazil U.S.
Millio
ns o
f C
ars
2000
2030
2050
Source: Goldman Sachs
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Climate Bill Status In Congress
House
• Waxman-Markey passed in summer of 2009, 219-212
• 8 Republicans voted for legislation, 44 Democrats voted against
Senate
• Kerry-Lieberman or other climate/energy legislation
• 60 Senators needed including Republicans
• Needs Administration support
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Debate in Washington
• “Climategate” fueled opposition
• Weather ≠ climate
– DC snow storms and Al Gore’s Igloo
– Recent NAS studies reaffirm science
• Term cap-and-trade is out of favor
– Kerry-Lieberman has many elements from Waxman-Markey
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Kerry-Lieberman Bill
Coverage and impacts on transportation
and comparison with Waxman-Markey bill
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Transportation GHG Coverage
• Covers almost all transportation sources
– 93% or 1760 MMT of CO2e of GHG emissions from transportation in 2008
– Excludes ships and boats, pipelines, and lubricants
• Allowances for refined product providers set aside by EPA for transportation quarterly
• Allowance price set quarterly by EPA equal to auction clearing price
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Transportation GHG Programs
• About 2/3 of transportation funds focused on GHG reductions
• HTF funds must consider GHG reductions
• Targets and strategies required by states and MPOs
• Clean Vehicle Technology Fund
– PEV pilot, manufacturing, infrastructure
• Natural Gas Vehicle Support
– Includes light-, medium-, and heavy-duty
– Tax credits, bond program, research
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Allowance Allocation
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
% o
f To
tal A
llo
wa
nce
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TIGER Grant Program
States & MPOs to reduce
GHG emissions
Highway Trust Fund
Clean Vehicle Technology
Fund
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W-M/K-L Comparison on Transportation
W-M
• No set-aside allowances
• Allowance value distributed to advanced auto technology
• Support for PEVs (funded)
• Support for MPOs (unfunded)
• Require GHG standards for heavy-duty vehicles through EPA
K-L
• Set-aside allowances
• Allowance value to HTF, states and MPOs, clean vehicle fund, and deficit reduction
• Support for PEVs, MPOs, and HTF (funded)
• Support for NGVs (unfunded)
• Require GHG standards for heavy-duty vehicles through EPA