Tag: California LAO

Sunday Train: Cap&Trade Funds should help finance the California HSR

An encore of a Sunday Train from 22 April, 2012, on a topic that has come back in the news

Burning the Midnight Oil for Living Energy Independence

One element of the recent California HSR “revised” draft 2012 Business Plan (which we shall call the Other, Other Plan) involves looking to one particular means of finance in addition to general fund bond finance and Federal transport grant funding:

Cap-and-Trade Program Funds

Assembly Bill 32 (Statutes, 2006, Chapter 488) mandates a reduction of statewide greenhouse gas emissions to 1990 levels by 2020. In accordance with that law, California will implement a market-based cap-and-trade program. Funds from the program can be used to further the purposes of AB 32, including for development and construction of the high-speed rail system.

This has led to the current controversy in which the California Legislative Analysts Office, the LAO, has argued that the Cap and Trade funds might not be usable for HSR (pdf: p. 8).

One of their points, “Other GHG Reduction Strategies Likely to Be More Cost Effective,” involves a serious and common misframing of the question of the use of funds dedicated to reducing Greenhouse Gas Emissions: when reducing GHG emissions in a project that serves multiple purposes, the cost effectiveness of the GHG emissions spending depends on what share of the project funding is represented by that GHG emissions spending.

So more on transport, Green House Gas emissions, and the peculiar analytical weaknesses that crop up whenever the California LAO turns its attention to HSR, over the fold.

Sunday Train: California Sierra Club Allies with Tea Party Against High Speed Rail

It’s a quite odd alliance. The Sierra Club is fighting the Climate Suicide Club both on the side of Supply, with the fight against the Keystone XL pipeline as one example and the fight against the establishment of Coal Export Terminals in the Pacific Northwest and on the side of Demand, with the Beyond Oil campaign, which in the Green Transportation component promises among other points that: “The Sierra Club will:

  • Ensure that all Americans have access to safe, affordable, clean transportation options. …”

And now the Director of Sierra Club California, Kathryn Phillips, has stepped up her attacks on the High Speed Rail project from “expressions of serious concern” to giving direct support for the attack from the Legislative Analyst’s Office that is working in concert with the Tea Party attack that is their most promising hope for killing the project :

“Inherent in AB 32 is that we need to act sooner rather than later,” said Kathryn Phillips, the Sierra Club’s California director. “The problem with taking that [cap-and-trade] money and applying it to high-speed rail is that we don’t anticipate that we’re going to get those benefits – reductions in greenhouse gas emissions – in the short-term. Given how urgent the problem is and has become, and how much we’re seeing the effects of climate change in this state, especially in water availability, it feels irresponsible to not apply that money to those programs that will get you greenhouse gas emissions reductions now.”

Given that we cannot feasibly arrive at a carbon neutral energy generation and transportation system within the next seven years, this implies that we should abandon the pursuit of a carbon neutral generation and transportation system and content ourselves with fighting for a slower rate of suicide as a national industrial economy than the faster rate of suicide that Big Oil, Big Coal and the rest of the Climate Suicide Club is pushing for.

Indeed, given that Sierra Club California had an official position in support of Prop1a which got the California HSR project moving , this could well be as strong an attack on the California HSR project that Kathryn Phillips is in a position to make.