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California Governor Schwarzenegger To Order Low-Carbon Fuels By 2020 January 9, 2007

Posted by notapundit in Politics, US News.

SAN FRANCISCO (Dow Jones)–Gasoline and other transport fuels sold in California must have 10% less carbon by 2020 to reduce greenhouse gas emissions, under an executive order planned by Gov. Arnold Schwarzenegger.

The governor plans to discuss the order further in his “State of the State” speech Tuesday evening, his administration said in a press release. The order will support California’s 2006 law requiring that the state reduce its total greenhouse gas emissions to 1990 levels by 2020.

“I propose that California be the first in the world to develop a low-carbon fuel standard that leads us away from fossil fuels,” says an excerpt from the governor’s speech released in advance of the address.

“Our cars have been running on dirty fuel for too long. Our country has been dependent on foreign oil for too long. I ask you to set in motion the means to free ourselves from oil and from OPEC,” Schwarzenegger plans to say.

Transportation accounts for 40% of California’s annual emissions of greenhouse gases. The low-carbon fuel standard will requires fuel companies to ensure that the mix of fuel they sell into the California market meets, on average, a declining standard for greenhouse gas emissions per unit of fuel energy sold. Emissions are to be measured as equivalents of carbon dioxide.

As a result, the governor’s office projected, 20% of the state’s on-road gasoline consumption will be replaced with lower carbon fuels, tripling the size of the state’s renewable fuels market. Also, the number of alternative fuel or hybrid vehicles on California’s roads will rise to more than 7 million, or 20 times the current number.

The mandate will use markets to allow fuel companies some flexibility on how they meet the standard. They could, for example, blend more low-carbon ethanol into gasoline products or increase sales of hydrogen for cars and trucks running on fuel cells. Or, they could purchase credits for greenhouse gas reductions from electric utilities that exceed their mandated reductions under the state’s Global Warming Solutions Act.

Various state agencies are to develop ways of measuring the carbon intensity of transport fuels, according to the administration’s press release. The California Air Resources Board is to complete its review of the low-carbon fuel rules no later than June 2007 and complete the regulatory process by December 2008.

By Mark Golden, Dow Jones Newswires


1. Pigou Club - January 10, 2007

Yes, this is 1 state doing something. I guess it is still better than nothing.

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