Act quickly to fully decarbonize the economy
By: Katelyn Roedner Sutter and Michael Colvin
This past summer, Californians were hit hard by inflation: rising grocery costs, utility bills, and nowhere more evident than at the gas pump. The cost of filling up a tank has many possible causes and many experts weigh in – see here, here and here. Regardless of the cause, those with the tightest budgets are hit hardest.
Last week, Gov. Newsom called a special session of the Legislature to address high gas prices, and the state began sending direct rebates to Californians to provide immediate relief. In the long term, we must remember that while sending checks is helpful, The permanent solution to ending this gas price madness is a swift transition to a 100% clean economy.
Bold climate leadership, like the ones we’ve seen from the Newsom administration and the state legislature, not only lowers greenhouse gas emissions, improves local air quality, tackles disproportionate pollution, and improves public health — it also has long-term economic benefits for Californians Consumer.
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Affordable rules for clean vehicles
California recently pledged to ensure that all new passenger vehicles sold are zero-emissions by 2035. This transition to a zero-emission vehicle future will not happen immediately, but the passenger car market has matured enough for an electric car to be accessible to a broader market. EDF analysis shows that the Advanced Clean Cars II standard will save California nearly $11 billion yearly by 2040 in economic and environmental benefits and $194 billion cumulative by 2050. For individual car buyers, this means they will save more than $9,000 over the life of the vehicle when purchasing a new electric vehicle by 2027 compared to a gas-powered vehicle. By 2035, this will increase to more than $13,000. These economic savings go a long way in reducing a customer’s energy burden.
The total cost of owning an electric vehicle is significantly less than owning a gas-powered car. and the purchase price also falls. With the new rebates included in the Inflation Reduction Act — including up to $7,500 for a new zero-emission vehicle and up to $4,000 for a used one — 10 models of new electric vehicles could cost less than $30,000. The State of California is also offering a rebate of up to $4,500, along with additional incentives for lower-income residents and local rebates.
This isn’t just a Californian trend. New York, Washington, Oregon, Vermont, Massachusetts and Virginia are all poised to adopt the Advanced Clean Cars II regulation.
Bold steps to clean heavy-duty transport
While ACC II applies to passenger vehicles, California is also moving to heavy-duty trucks. Together, the Advanced Clean Trucks and Advanced Clean Fleets rules will help ensure that heavy-duty trucks sold in California are zero-emission vehicles. The ACT rule requires 55% to 75% of new vehicle sales to be zero emissions by 2035, depending on truck size. EDF and Energy Innovation estimate that this rule will save truckers $6 billion to $7 billion in fuel and maintenance by 2040 and counting, and the savings will continue to accrue for years to come. Additionally, the climate and air quality benefits of this rule will generate nearly $9 billion in public health benefits over the same time horizon.
As is usual with passenger cars, other states are following California’s example. New York, New Jersey, Washington, Oregon, and Massachusetts have all adopted the ACT, and many others are considering the rule.
The companion to the ACT sales requirement is the Advanced Clean Fleets rule, which is a purchase requirement for medium and heavy-duty fleets to adopt an increasing percentage of zero-emission trucks. The California Air Resources Board estimates that the introduction of the ACF rule would result in net savings of $47 billion between 2024 and 2050, including $20 billion in savings for fleet operators.
For both passenger and commercial electric vehicles, a large part of the savings comes from the price difference between petrol and electric charging. California is leading the way in creating special EV charging plans for both personal and commercial EVs that make plugging in cleaner and more affordable than filling up at the gas station. Additionally, this summer California passed a state-first “submetering” rule to make charging at home or in an apartment building more accessible. EDF remains committed to aligning electric charging with abundant renewable power to make charging both clean and affordable.
Ambitious climate legislation and historical climate budget
While transportation accounts for a whopping 40% of California’s emissions inventory, our entire economy needs to be decarbonized to truly break away from its overwhelming reliance on fossil fuels. The state is also addressing this challenge in a comprehensive legislative package passed by the Legislature in August 2022 and subsequently signed into law by Governor Newsom.
Along with a host of other major bills and a record-breaking $54 billion climate budget, California’s actions this term are estimated by the state to create 4 million new jobs, cut the state’s oil use by 91% and save $23 billion Saving dollars in the cost of pollution pollution.
As California celebrates these important steps toward a cleaner economy, the state must continue to take advantage of the opportunities created by the Inflation Reduction Act to steadily increase its climate ambition. Transitioning to a completely clean economy is the most enduring way to reduce our demand for fossil fuels, reduce our need for imported oil, reduce disproportionate pollution, and save money at the pump—or even eliminate the pump altogether . Climate protection saves money and saves lives.