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Diversification of fuels will benefit economy and energy
security. 

Release 09-37
FOR IMMEDIATE RELEASE
April 23, 2009
	  	  	
Stanley Young
Dimitri Stanich
916-322-2990
www.arb.ca.gov

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 hydrogen
fueling 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.

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