Benefits of Reducing Demand for Gasoline and Diesel

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California Air Resources Board

2004

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Introduction

California’s ever-increasing consumption of petroleum products in the face of limited refining

capacity and less secure sources of crude oil exposes our economy to great risk. If measures are

implemented in the near future to both reduce demand and augment supply, the risk to our

economy can be mitigated.

Assembly Bill 2076 (Chapter 936, Statutes of 2000) requires the California Energy Commission and

the California Air Resources Board (ARB) to develop and submit a strategy to the Legislature to

reduce petroleum dependence in California. The statute requires the strategy to include goals for

reducing the rate of growth in the demand for petroleum fuels. Options to be considered include

increasing transportation energy efficiency, as well as using non-petroleum fuels and advanced

transportation technologies including alternative-fueled vehicles and hybrid vehicles.

The California Energy Commission and the ARB have developed a program and methodologies to

evaluate and analyze possible petroleum reduction options. The goal of this effort is to provide

policy makers with a robust analysis of the possible measures that could be implemented to meet

the fuel demands of consumers and industry. This analysis needs to account for the costs of

these measures as well as the benefits.