Gov. Schwarzenegger issues biofuels executive order

July 1, 2006

California Gov. Arnold Schwarzenegger issued an executive order in April, directing Californian agencies to take steps in increasing the state's biofuels production and biomass power generation. "It is critical that we do everything we can to reduce our dependence on petroleum-based fuels," the governor said in a press release.

In the order, Schwarzenegger set targets to increase biofuels production in California. He set goals for 20 percent of all biofuels used in the state to come from state sources by 2010, 40 percent by 2020 and 75 percent by 2050. Currently, 900 MMgy of ethanol is consumed in the state, but only about 7.6 percent of that number is actually produced there. "He's made this a priority in this administration," said Bill Maile, spokesman from the governor's office, on Schwarzenegger's commitment to increasing biofuels production.

The governor's plan also calls for increasing the use of biomass for electricity. He set goals to reach 20 percent within the state's Renewables Portfolio Standard goals for 2010 and 2020.

The California Energy Commission (CEC), Resources Agency and other state agencies will work together to research and identify funding to advance biomass programs in the state. Progress will be reported to the governor's office and state legislature twice a year.

In a related move, the governor sent a letter to the CEC asking for an investigation of oil companies, for possible "market manipulation, price gouging or unfair business practices." The agency regularly monitors oil prices but will now be getting expanded information from refiners and information from dealers, according to Susanne Garfield, CEC spokeswoman. "His concern was of excessive profits or if there were manipulations or odd things that were going on in the industry that may result in consumer hardship," she said.

California's petroleum market is tight. As a result, it doesn't take much for sudden changes in the market or panic buying to occur. "California tends to live on the edge," she said.

At press time, the agency planned to make public a report on its findings. For more information or to access the report, visit www.energy.ca.gov.

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