As the California Energy Commission sets energy savings goals for public power in the coming decade to meet greenhouse gas reduction targets an argument has broken out over the cost. In filings with the Energy Commission last month, the Natural Resources Defense Council called energy savings a great bargain and one of the cheapest ways to cut greenhouse gases. The environmental group maintains that Californians get about $3 of benefits for every dollar munis invest in energy efficiency. NRDC told the Energy Commission efficiency programs cost about 2 cents for each kWh of power saved. Not so fast, responded City of Palo Alto Utilities. The muni maintains two cents is an outdated figure. Today’s energy efficiency programs cost more and are headed north. Palo Alto told the Energy Commission that the cost of energy efficiency rose from 2.9 cents/kWh in 2008 to 6.4 cents/kWh in 2010 and can be expected to further increase as “low-cost efficiency measures reach saturation” and more expensive new standards take effect. Even then, the muni stated it still expects energy efficiency to remain “cost-effective” compared to “supply-side resources.” * * * * * Governor Jerry Brown vetoed SB 211 by Senators Bill Emmerson (R-Hemet), Tom Harman (R-Huntington Beach), and Bob Dutton (R-Rancho Cucamonga). It would have allowed auto mechanics to forego inflating tires to manufacturer specifications when the tires had tread wear, tread irregularity, or damage. The bill, according to Brown, would have allowed mechanics to get around complying with a California Air Resources Board rule requiring mechanics to properly inflate tires of cars on which they work. The Air Board adopted the rule under the state’s climate change law, AB 32. Keeping tires on California cars properly inflated to reduce rolling resistance can save 75 million gallons of gasoline/year and cut annual greenhouse gas emissions by 700 million tons, the governor noted in his veto message. * * * * * California greenhouse gas markets got a boost after the California Air Resources Board adopted its amended plan for carrying out the state’s climate change law, AB 32, late last month. Evolution Markets reported Sept. 1 that prices moved up between $1 and $1.50/ ton for early action credits. Meanwhile, California carbon allowances traded for between $17 and $21/ton. The Air Board adopted the changes Aug. 24 and is expected to adopt final amendments to its carbon cap-and-trade program rules next month.
