SACRAMENTO – Four years after
electricity prices soared and
blackouts rolled across
California, the state is in
danger of another energy crisis
– this one involving gasoline
and natural gas as well, said a
draft report Friday.
The state is a captive of its
own geographic and regulatory
isolation, separated by miles
and mountains from many
refineries and fossil fuel
sources. Moreover, the state
sets stricter fuel standards to
trim air pollution, driving up
prices and limiting availability
as is evident in the wake of
Hurricane Katrina, said the
California Energy Commission.
"California's way of life is
threatened by its growing
dependence on oil and natural
gas, spiraling energy prices,
potential supply shortages and
an inadequate and aging energy
delivery infrastructure," said
the report that, in its final
version, will go to Gov. Arnold
Schwarzenegger and state
legislators.
The draft was released as a
three-day international global
warming conference hosted by the
commission and the California
Environmental Protection Agency
concluded. Commissioners are to
vote on adopting the report Nov.
16.
An EPA panel separately
released draft proposals for how
the state can meet
Schwarzenegger's goal of cutting
the state's emissions of
greenhouse gases to 2000 levels
by 2010, 1990 levels by 2020,
and 80 percent below 1990 levels
by 2050. A final version will go
to Schwarzenegger in January.
The problems are interlinked:
Warming temperatures could harm
the Sierra Nevada snow pack that
provides hydroelectricity, while
hotter summers will drive up
electricity demand.
"As the state's demand for
electricity intensifies,
California could face severe
shortages in the next few
years," partly as a result of
the warming trend, the energy
report warned.
Both panels recommended
conservation, improved
technology and regulatory
changes among responses.
But the energy commission
report warns that "the state has
made only minimal progress"
since it made similar
recommendations two years ago,
and calls for policy-makers to
"take immediate action." Few new
power plants are operating
despite an intensive drive after
the last electricity crisis,
with 7,000 megawatts worth of
approved plants on hold due to
regulatory and market problems.
California's demand for
transportation fuels has
increased nearly 50 percent in
20 years. It is second only to
Texas in consumption of natural
gas, 87 percent of which is
imported from other states or
nations and much of which goes
to produce electricity.
Electricity transmission
problems last year cost the
state's economy more than $1
billion, the energy report
estimated, and this summer led
to Southern California's first
rolling blackouts since the
2000-2001 crisis.