Low Carbon Fuel Standard
The California Air Resources Board (CARB) is in the process of adopting regulations expected to be finalized by the end of 2009 that will require a 10 percent reduction by 2020 in the “carbon intensity” of transportation fuels (such as gasoline, diesel, and jet fuel) sold in the state. This new Low Carbon Fuel Standard (LCFS) is a key part of AB 32 (the Global Warming Solutions Act) aimed at reducing greenhouse gas emissions.
The complications associated with implementation of the LCFS provide a clear example of how this novel government program may impact all Californians.
The petroleum industry stands ready to use its expertise to work with the state to achieve the goals of AB 32 and the LCFS. But, the challenges should not be underestimated.
For example, there is no technology or fuel formulation currently available that can remove carbon from petroleum-based fuels.
There are alternative fuels that exist today that have lower carbon intensities than petroleum-based fuels. But they face many challenges. First, these alternatives are not yet capable of being produced in sufficient quantities. Next, no one knows if they can be produced in a manner that makes them affordable and sufficiently reliable for consumers. And, finally, the infrastructure to get these alternatives to consumers does not yet exist.
Critical questions about reliability and supply must be answered before moving forward. Only after answering these questions can we begin to determine the cost to consumers.
With adoption of the LCFS regulations expected in April and finalization in December, WSPA has embarked on an outreach program designed to raise awareness of these important issues as the process moves forward. The links below provide more information, including a letter to CARB from the state’s leading business coalition on climate change.
For more information, please contact Tupper Hull (916) 498-9203.
Low Carbon Fuel Standard Fact Sheet.pdf
Low Carbon Fuel Standard Q&A.pdf
AB32 Implementation Group LCFS letter.pdf