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California Adopts Low Carbon Fuel Standard
New measure will reduce greenhouse gas emissions and increase use of
alternative fuels
SACRAMENTO - Today, the Air Resources Board adopted a regulation that
will implement Governor Schwarzenegger's Low Carbon Fuel Standard calling
for the reduction of greenhouse gas emissions
from California's transportation fuels by ten percent by 2020.
The new regulation is aimed at diversifying the variety of fuels used
for transportation. It will boost the market for alternative-fuel vehicles
and achieve 16 million metric tons of greenhouse gas emission reductions
by 2020. ARB representatives describe the measure as the most important
early-action called for under AB 32, the Global Warming Solutions Act
(Nunez, 2006).
"The new standard means we can begin to break our century-old dependence
on petroleum and provide California with greater energy security" said
ARB Chairman Mary D. Nichols. "The drive to force the market toward greater
use of alternative fuels will be a boon to the state's economy and public health
- it reduces air pollution, creates new jobs and continues California's leadership
in the fight against global warming."
According to ARB analyses, to produce the more than 1.5 billion gallons
of biofuels needed, over 25 new biofuel facilities will have to be built
and will create more than 3,000 new jobs, mostly in the state's rural
areas. Production of fuels within the state will also keep consumer dollars
local by reducing the need to make fuel purchases from beyond its borders.
The regulation requires providers, refiners, importers and blenders to
ensure that the fuels they provide for the California market meet an
average declining standard of 'carbon intensity'. This is established
by determining the sum of greenhouse gas emissions associated with the
production, transportation and consumption of a fuel, also referred to
as the fuel pathway.
Economic mechanisms will allow the market to choose the most cost-effective
clean fuels (those with the lowest carbon intensity) giving California
consumers the widest variety of fuel options.
Seeking to enhance private sector and federal investment into alternative
fuel production and distribution, California is also providing funding
to assist in the early development and deployment of the most promising
low-carbon fuels. The Alternative and Renewable Fuel and Vehicle Technology
Program, AB 118 (Nunez, 2007), managed by the California Energy Commission,
will provide approximately $120 million dollars per year over seven years
to deploy the cleanest fuels and vehicles.
Regulators expect the new generation of fuels to come from the development
of technology that uses algae, wood, agricultural waste such as straw,
common invasive weeds such as switchgrass, and even from municipal solid
waste.
The standard is also expected to drive the availability of plug-in hybrid,
battery electric and fuel-cell powered cars while promoting investment
in electric charging stations and hydrogenfueling stations.
Governor Schwarzenegger issued the executive order requiring a low carbon
fuel standard in early 2007. It directed the state to drive down greenhouse
gas emissions from the transportation sector which accounts for 40 percent
of the state's total greenhouse gas emissions. The regulation is designed
to increase the use of alternative fuels, replacing 20 percent of the
fuel used by cars in California with clean alternative fuels by 2020,
including electricity, biofuels, hydrogen and other options.
The Air Resources Board is a department of the California Environmental
Protection Agency. ARB's mission is to promote and protect public health,
welfare, and ecological resources through effective reduction of air
pollutants while recognizing and considering effects on the economy.
The ARB oversees all air pollution control efforts in California to attain
and maintain health based air quality standards.
Source: California Air Resources Board
April 23, 2009
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