State taking lead in alternative fuel race
SMC — The future of California’s economy — the world’s fifth largest — lies in the development and mass distribution of alternative fuels as viable competition for an increasingly unstable world oil market.
That’s according to state lawmakers and auto industry insiders who testified here Friday during a hearing that provided updates on the progress of developing and marketing alternative fuels such as ethanol, bio-diesel and hydrogen.
With developing nations in Asia expected to increase their oil consumption by 50 percent in the next 25 years — from 15 to 32 million barrels a day — California and the rest of the United States can expect to see gas prices skyrocket, said Michael Smith, director of governmental affairs for the California Energy Commission.
Coupled with political uncertainty in Iraq, Iran and other major oil producers, that could cripple commerce in the state — the world’s second largest consumer of gasoline and diesel behind only the entire United States. That is, unless companies here begin to invest in alternative fuel technology, energy experts said. By becoming a leader in the development and use of alternative, renewable fuels, California can reinvigorate its economy by becoming a supplier for the rest of the nation and beyond. The new energy sources will also help improve air quality and keep the coastline free of offshore oil drilling.
“With demand only expected to rise, we’ll need to narrow the gap between supply and demand,”Smith said.“It will be important to cut back or invest in alternative fuels. Failing to do so could be an enormous drain on our economy.”
The hearing was called by state Assembly member Fran Pavley, D-Santa Monica, a leader in protecting the environment and chair of the Assembly Select Committee on Air and Water Quality. Pavley was joined by state Sen. Sheila Kuehl (D-Santa Monica), Assembly members Ted Lieu (D-Torrance), and Pedro Nava (D-Santa Barbara), along with City Councilman Kevin McKeown.
They heard testimony from representatives of Southern California Edison, the California Renewable Fuels Partnership, General Motors and Honda. Also present were representatives from companies specializing in the manufacturing of renewable fuels, such as Ceres, Inc. and Community Fuels.
While far behind Europe in the mass marketing and distribution of alternative fuels, California is poised to become a major player, that is, if funding is made available to entice gas station owners to build the infrastructure needed to supply the next generation of automobiles with the environmentally friendly fuel, those who testified said.
The state has embarked on a BioEnergy Action Plan with goals of establishing California as a market leader in technological innovation, sustainable biomass development and marketing.
Gov. Arnold Schwarzenegger, who drives a hybrid Hummer, has set goals for the production of biofuels — gas made from plants such as corn, soybeans or algae. By 2010, the state should produce 20 percent of its biofu-els in-house, according to the action plan. The projections jump to 40 percent by 2020 and 75 percent by 2050. By 2010, 20 percent of all energy used in the state must come from renewable fuels.
Pavley is sponsoring legislation that would require the state Legislature to develop a strategy for diversifying the fuel supply through the increased use of alternative fuels. The bill, AB 1007, was introduced in 2005 to reduce the state’s dependency on foreign oil, cleaning up the environment in the process.
Pavley has also introduced a bill that would require the Department of General Services and the Energy Commission to develop fuel economy standards for the state’s fleet of vehicles and use those standards for any vehicle purchased after Jan. 1, 2008.
“Oil still has a stranglehold on our transportation system,” Pavley said. “California should be leading the way in reducing the nation’s addiction to oil. With the technological advances we have, this state could become an economic example in alternative energy sources to the rest of the world.”
Originally published in the Santa Monica Daily Press print edition on July 24, 2006. Read the original PDF.