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UCLA Helps Civic Leaders Address ‘Vexing Issues’ During Annual Mayoral Summit

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The setting was virtual this time, but UCLA again figured prominently when the Los Angeles Business Council convened a who’s who of California elected officials and civic leaders for its annual Mayoral Summit on Housing, Transportation and Jobs, an event that UCLA has co-hosted for 18 of its 19 years. “This event is near and dear to our hearts,” Chancellor Gene Block said in welcoming remarks. “As a public institution with a deeply rooted service mission, we view it as our obligation to help address the vexing issues facing our city.” Academic research figured prominently in the daylong event presented in partnership with the UCLA Ziman Center for Real Estate and the UCLA Luskin Center for Innovation directed by JR DeShazo, professor of public policy. He moderated a panel focusing on how to promote zero-emission vehicles in an equitable manner, noting that California’s policy investments have brought low-emission vehicles to 10% of sales, a notable accomplishment. “But we have failed miserably to make those policies beneficial to our low-income communities and communities of color,” DeShazo said. Richard Ziman, who is founding chair of the Los Angeles Business Council, opened the virtual summit, and Stuart Gabriel, professor of finance and director of the Ziman Center, led a session on economic recovery efforts. Jacqueline Waggoner, Miguel A. Santana and Michael Mahdesian of the UCLA Luskin School of Public Affairs Board of Advisors also spoke, as did public officials that included Los Angeles Mayor Eric Garcetti, Senate President pro Tempore Toni G. Atkins and Assembly Speaker Anthony Rendon.

 

DeShazo on Future of Clean Vehicles in the U.S.

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JR DeShazo, director of the UCLA Luskin Center for Innovation, was featured in a Popular Science article about General Motors’ announcement that it plans to eliminate emissions from passenger vehicles by 2035. “This is a seismic event that is hard to overstate in its importance to America’s transition to zero-emission vehicles,” DeShazo said. The company hopes to expand its electric vehicle fleet to 30 all-electric models and have 40% of the entire fleet composed of battery-electric cars by 2025. According to DeShazo, these plans are the strongest thus far to come from a traditional American automaker. While international companies like Volvo and BMW have announced similar goals, the U.S. industry has lagged behind. GM’s statement is going to force other automakers to respond, which will stimulate competition in the industry, DeShazo explained.  However, he added, the adoption of zero-emission vehicles must go hand in hand with investment in renewable energy sources in order to effectively combat climate change.

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DeShazo Expresses Skepticism Over Hydrogen-Fueled Cars

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JR DeShazo, director of the UCLA Luskin Center for Innovation, expressed doubts about the future of hydrogen-powered vehicles in an ABC News article. A small market exists for hydrogen fuel cell electric vehicles, which convert hydrogen gas into electricity to power an electric motor. These “plug-less” vehicles can refuel in less than five minutes and have a long driving range. However, DeShazo noted that the infrastructure to support hydrogen fuel for transportation has never materialized. “If there were stations everywhere, hydrogen would be an obvious solution,” DeShazo explained. “Refueling stations are really expensive and require significant economies of scale to be cost effective and compete with gasoline and electricity.” There are currently 42 hydrogen fueling stations in California, and the average price of hydrogen is much higher than a gallon of gasoline. DeShazo also pointed out that the production of hydrogen causes greenhouse emissions, making it less environmentally sustainable.

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Clean Energy Transition Should Benefit Communities of Color, Callahan Says

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Colleen Callahan, deputy director of the UCLA Luskin Center for Innovation, spoke to Health about how to address environmental racism. “Race matters in the distribution of environmental hazards, dirty air, and polluted soil and water,” Callahan said. Communities of color are more likely to be burdened with environmental hazards, such as toxic waste and industrial pollution, that put residents at greater risk of illness and negative health outcomes, she said. They also experience fewer positive environmental benefits, such as quality parks, compared with white communities, she added. According to Callahan, it is not enough for environmental policies to be race neutral. “Communities of color and low-income households disproportionately harmed by pollution from our fossil-fueled economy should also disproportionately benefit from the transition to a clean economy,” she said. “Health disparities, education disparities, economic disparities and more are linked to where we live — our environment.”

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Transition to All-Electric Expected to Create Jobs, Study Finds

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Two articles by NRDC and the Sierra Club, and an opinion piece in the Los Angeles Daily News, summarize the findings of the UCLA Luskin Center for Innovation’s recent study “California’s Building Decarbonization: Workforce Needs and Recommendations.” The study is the first to estimate the potential employment impacts of decarbonization as California moves away from the use of fossil fuels in buildings. Despite a loss of jobs in the fossil fuel industry, the report estimates that the transition to all-electric buildings will support a net increase of more than 100,000 jobs over the next 25 years. The study recommends policy interventions and programs to ease work transitions, including bridges to retirement for older works and retraining and job placement assistance for younger ones. As California lays out its long-term climate goals, the report highlights the importance of planning and policy action to protect workers and ease the transition from one industry to the next.

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Read the Sierra Club article
Read the Daily News op-ed

Summit Highlights Local Transitions to 100% Clean Energy

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The Summit on State and Local Progress Toward 100% Clean Energy, which brought experts from 30 states to UCLA to discuss different community approaches to environmental goals, was covered by media outlets including Forbes and Greentech Media. The summit was hosted by the UCLA Luskin Center for Innovation (LCI), which issued a report finding that more than 200 cities and counties have committed to a 100% clean electricity target — and dozens have already hit it. The report highlights differences in how and when communities plan to achieve their targets. “We’re going to look back on this moment as the moment when local action and state commitments began to push the entire nation toward this goal,” LCI Director JR DeShazo said. Senior analyst and policymaker-in-residence Kevin de León added, “The lack of leadership at the national level has forced states, cities and counties to take the lead and fight for their own public health.”

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Read the GTM article

DeShazo and Callahan on California’s Move Toward Clean Energy

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Luskin Center for Innovation Director JR DeShazo and Deputy Director Colleen Callahan co-authored an opinion piece for the Capitol Weekly that explores the rise of clean energy in cities. Dozens of cities and counties in California are already running on 100% clean energy, a transition often spearheaded by local leaders, the authors found. They argued for a statewide move toward clean energy achieved by reforming state and utility policies, modernizing grid operations and increasing grid connectedness. “Local communities are proving possible what once seemed impossible: Cities and counties can run on 100% clean power,” DeShazo and Callahan wrote. “By achieving this goal today, local initiatives can light the way for the rest of the country. They can and should serve as inspiration to other cities, states, and the federal government to support 100% clean energy commitments, and to take bold action to achieve those goals.”

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Ports of Los Angeles and Long Beach Could be Ground Zero for Zero-Emission Trucks Electric trucks will be financially viable as early as the 2020s, a UCLA Luskin Center for Innovation report finds

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By Colleen Callahan

The two San Pedro Bay ports — Los Angeles and Long Beach — form the largest container port complex in North America. While an important economic engine for Southern California, port-related activity is one of the largest contributors to air pollution in a region that regularly violates air quality standards.

Concerned about the public health and climate impacts of drayage trucking — which moves cargo from the ports to train yards, warehouses and distribution centers — the mayors of Los Angeles and Long Beach set a goal to transition the fleet to 100% zero-emission vehicles by 2035. A new report from the UCLA Luskin Center for Innovation, however, finds that an accelerated transition starting in the 2020s could be both feasible and advantageous.

The UCLA researchers analyzed the significant challenges and opportunities of replacing diesel drayage trucks with zero-emission trucks, specifically battery electric trucks, beginning in the 2020s. One advantage of an earlier transition is a quicker reduction in tailpipe emissions, they found. Unlike current diesel trucks, zero-emission trucks do not directly emit any regulated pollutants and can be fueled by renewable energy sources like wind or solar.

However, there are barriers to adoption of battery electric zero-emission trucks by the drayage industry. The UCLA report finds that current constraints include nascent technology not yet proven in drayage operations; limited vehicle range; high capital costs for trucks and charging infrastructure; uncertainty about which entity would shoulder the upfront costs; and space and time constraints for vehicle charging.

“Despite these challenges, we conclude that there is significant potential for zero-emission trucks to be used in drayage service,” said James Di Filippo, the lead researcher on the UCLA study. “Operationally, the range of early-state battery electric trucks is suitable for most drayage needs at the ports.”

The technology is advancing quickly. One manufacturer already has a zero-emission battery electric truck on the market, while five other leading manufacturers plan to do so by 2021. New entrants into the battery electric truck market expect to bring longer ranges and lower costs.

“We made a surprising finding: When incorporating incentives and low-carbon fuel credits, the total cost of ownership for a battery electric truck is less than near-zero-emission natural gas trucks,” Di Filippo said. “Even more surprising is that battery electric trucks can even be less expensive than used diesel trucks. This supports our finding that, even in the short and medium term, there is opportunity to electrify a meaningful portion of the drayage fleet at the ports.”

The Clean Trucks Program, adopted by the two ports in 2007, successfully spurred the replacement of the oldest, dirtiest diesel trucks in the fleet with cleaner diesel and natural gas models. UCLA researchers expect another nearly complete turnover of the drayage fleet in the 2020s. This presents a tremendous opportunity to transition to zero-emission trucks.

As demonstrated by the 2007 program, the strongest lever in the ports’ policy toolbox is the ability to assess differentiated fees to trucks entering the ports based on compliance with emission standards. The ports’ new clean truck program is set to differentiate between near-zero-emission trucks and zero-emission trucks by 2035. However, additional incentives to switch to zero-emission trucks from the start of the program could support a transition to the cleanest trucks sooner, the researchers concluded.

A swift move to zero-emission trucks could avoid the expense and disruption of two sharp technology transitions — one to near-zero in the 2020s and then to zero-emission in the 2030s. Meanwhile, early adopters could take advantage of current generous state and regional incentives for zero-emission trucks that make battery electric trucks less expensive to own and operate than all alternatives.

The UCLA report analyzed other options that the ports could pursue, including investing in technology that allows electric trucks to specialize in routes that suit their range. It also recommends that the ports collaborate with stakeholders — such as utilities and air regulators — to coordinate a wraparound strategy that provides technical assistance to trucking companies and drivers.

Other recommendations target incentives adopted by utilities and air quality agencies, which the researchers said could be updated to meet evolving needs.

The report by the Luskin Center for Innovation, which unites UCLA scholars and civic leaders to solve environmental challenges, was made possible by two separate funding sources: a partnership grant from California’s Strategic Growth Council, and members of the Trade, Health and Environmental Impact Project (THE Impact Project).

DeShazo Remarks on Rise of CCAs in Future of Clean, Cheap Energy

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J.R. DeShazo, director of the UCLA Luskin Center for Innovation (LCI),  is featured in a Comstock’s article assessing publicly owned electric-power-purchasing organizations in a transient energy market. The growth of so-called Community Choice Aggregators (CCAs) as an alternative to municipal and investor-owned utilities is transforming the energy market. CCAs offer cheaper and cleaner power, but their future hinges on their ability to navigate regulatory and market changes. DeShazo, who is also chair of Public Policy at UCLA Luskin, is cautious about predicting the long-term success of CCAs, citing past bankruptcies of large utilities as a result of “wrong conditions and bad policy by the legislature.” Climate change and the resulting shifts in environmental policy make electricity and the energy market as a whole competitive arenas. If they are able to overcome the obstacles in their path, “CCAs may serve the majority of the state’s consumers now served by the big three investor-owned utilities within 10 years,” the article stated, citing a July report from LCI.

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Alternative Utility Providers Offer Options for Energy Customers New report by the UCLA Luskin Center for Innovation assesses the options available to Santa Monica and other cities in Los Angeles County

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By Colleen Callahan MA UP ’10

Los Angeles County is set to launch its own electricity provider in 2018, giving customers another option besides longtime power company Southern California Edison. Called Los Angeles Community Choice Energy, the county’s venture is part of a wave across California of new community choice aggregators.

Community choice aggregators (CCAs) enable cities or counties to make decisions about what kinds of energy resources and local clean energy programs in which to invest, such as local renewable energy. Since 2010, California communities have established nine CCAs, with over a dozen municipalities actively exploring forming a CCA and many others considering joining one. Multiple CCA models have arisen out of this rapid growth. Now cities such as Santa Monica have multiple CCA options.

A new study by the UCLA Luskin Center for Innovation analyzed three CCA options to inform Santa Monica’s decision whether to form or join a CCA.

“This study commissioned by the City of Santa Monica is garnering wide attention from cities across the region that are faced with a similar set of options, because it is an important decision,” said J.R. DeShazo, director of the UCLA Luskin Center for Innovation. The decision could affect electricity rates for local customers, the amount of renewable energy procured and how much money could be available for local energy programs, among other consequences.

The study assessed the strengths and potential challenges of Santa Monica’s three CCA options:

  • Los Angeles Community Choice Energy (LACCE), a large, soon-to-launch CCA with member cities across Los Angeles County. This regional option may dilute influence for Santa Monica, in terms of its direct vote on the governing board. However, it could also provide Santa Monica with the greatest economies of scale, which would well position the city to meet its ambitious renewable energy and other environmental goals while avoiding long-term risks.
  • South Bay Clean Power (SBCP), a CCA designed for a group of cities in the South Bay and Westside subregion. SBCP is more a set of recommendations than an operationally ready option at this time. SBCP’s business plan includes innovative, sophisticated strategies for a next generation CCA, which others outside of SBCP could adopt. With no other currently committed members, Santa Monica would likely have to take the lead in its development and it would likely benefit from fewer economies of scale than LACCE.
  • A single-city CCA through the services of California Choice Energy Authority (CCEA), which pools services for multiple single-city CCAs. The business model for CCEA allows for member cities to have a significant amount of autonomy to pursue and meet renewable energy and other goals. However, it would also involve an initial financial and staff commitment.

Relying in part on UCLA’s research findings, the Santa Monica City Council recently voted unanimously to join LACCE as the first step in a two-step approval process.

The associated Santa Monica staff report states, “The UCLA study helped to inform staff’s recommendations. … LACCE is operationally ready and could provide the City with a variety of economies of scale and a stronger voice for the legislative and regulatory discussions that lay ahead.” By collaborating with other cities through this new regional energy partnership, Santa Monica hopes to be a powerful voice pushing for clean energy strategies that advance the City’s progressive environmental goals, according to the report.