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Adopts changes to streamline, add flexibility to Low Carbon Fuel
Standard. 

Release #:11-55
Date:11/16/2011

ARB PIO: (916) 322-2990
CONTACT:

Stanley Young
916-322-1309
916-956-9409(C)
syoung@arb.ca.gov
David Clegern
916-322-8286
dclegern@arb.ca.gov



Air Resources Board moves forward with clean fuels program

Adopts changes to streamline, add flexibility to Low Carbon Fuel
Standard

SACRAMENTO - The California Air Resources Board voted today to
introduce some changes to its Low Carbon Fuel Standard to
streamline procedures and clarify language.

The Low Carbon Fuel Standard is designed to reduce greenhouse gas
emissions from transportation fuels 10 percent by 2020. This will
drive innovation to reduce the carbon intensity of existing fuels
and develop the next generation of cleaner fuels, ultimately
reducing the state’s reliance on petroleum. Transportation alone
accounts for 40 percent of California’s Greenhouse Gas
emissions.
 
"The Low Carbon Fuel Standard is an essential part of
California’s program to move away from dirty fuels and toward a
clean energy future,” according to Air Resources Board Chairman
Mary D. Nichols. “These changes streamline the program. They
ensure that we accurately account for every gram of carbon
released during the extraction and transportation of unrefined
fossil fuels, no matter where they come from."

One key amendment will improve how the regulation accounts for
the carbon intensity of crude oils. The carbon intensity of
crudes can vary significantly with heavy crudes generally having
a higher carbon footprint.  The proposed amendments require that
the carbon intensity of crudes be fully accounted for just like
other fuels under the program.  The provision also incentivizes
innovation by providing credits for specific actions to reduce
the carbon intensity of crude oil.

The amendments also clarify which regulated parties receive low
carbon fuel credits for the electricity used to charge electric
vehicles.

For residential charging, the electric utilities will be eligible
for the credits, as they appear best suited to send the credit
value back to electric vehicle owners in the form of rebates,
time-of-use rates or other incentives. For public access
charging, companies that install and service charging units in
public settings such as malls or parking structures may receive
the related credits.  Finally, businesses that install private
access charging stations for employees, or fleet operators that
operate at least three electric vehicles may also be eligible for
credits.

Regulated facilities began operating under the Low Carbon Fuel
Standard in April of 2010. The Air Resources Board estimates the
Low Carbon Fuel Standard will achieve 15 million metric tons of
greenhouse gas reduction by 2020. The standard is also expected
to lead to replacement of the equivalent of up to four billion
gallons of gasoline by then. The Low Carbon Fuel Standard will
drive the development of new fuels to help clean California’s air
and protect the state from dramatic price spikes seen with
petroleum.

The Low Carbon Fuel Standard is designed to work with
California’s new Cap-and-Trade Program and the upcoming Advanced
Clean Car regulations to reduce greenhouse gas emissions now, and
for decades into the future.

All documents related to these amendments are available at:
http://www.arb.ca.gov/regact/2011/lcfs2011/lcfs2011.htm .

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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