California Air Resources Board Approves Climate Change Scoping Plan: Low Carbon Fuel Standard
This post was written by Katie Annand.
The Scoping Plan envisions reducing GHG emissions in the transportation sector through the use of a low carbon fuel standard (LCFS). The LCFS is an effort to lower the carbon intensity of fuels sold in California. The standard would require transportation fuel providers to ensure the fuels they sell meet a declining standard for GHG emissions in carbon dioxide equivalent per energy unit of fuel sold. The LCFS, an Discrete Early Action measure that will be up for consideration in March of 2009, will look at the full fuel cycle: from extraction, transportation, distillation, distribution and indirect land use.
The plan estimates that the carbon intensity off transportation fuels in California will be reduced by close to ten percent by 2020. An additional effect will be an incentive to develop a diverse set of clean, low carbon transportation fuel options.
The LCFS will incorporate market compliance mechanisms that provide flexibility to fuel providers. In other words, fuel providers who exceed the performance standards set by CARB will receive credits that they can trade.
Click here to return to Scoping Plan overview.
