Companies Support Cali’s Low Carbon Fuel Standard

Joanna Schroeder

A group of major companies have come out in support of California’s Low Carbon Fuel Standard (LCFS). Thirty-six companies sent a letter to California Air Resources Board (CARB) Chairman Mary Nichols expressing their support for the re-adoption of the program. They cited the standard’s positive influence on the development of cleaner transportation fuels.

Screen Shot 2015-09-22 at 1.00.51 PMBICEP companies support a strong LCFS because it’s good for the economy and the environment,” said Anne Kelly, director of the Business for Innovative Climate & Energy Policy (BICEP), a project of the nonprofit sustainability advocacy organization, Ceres (BICEP). “In contrast to the oil industry, which has consistently opposed the LCFS and other efforts to reduce emissions from the transportation sector, BICEP companies are engaging in climate policy advocacy constructively, and recognize the value of the LCFS as a catalyst for innovation and investment in clean fuels.“

CARB approved the LCFS in 2009 to reduce greenhouse gas emissions by achieving a 10 percent reduction in the carbon intensity of transportation fuels used in California by 2020. The standard was the first-of-its-kind, market-based approach to lowering transportation fuel emissions, and is part of a larger effort in California to tackle climate change and build a clean energy economy. Since the bill was passed, other states have used it as a foundation for similar clean energy legislation.

According to BICEP, since its implementation, the LCFS has reduced carbon emissions by approximately 9 million metric tons, or the equivalent of removing nearly 2 million passenger cars from the road for one year. Further, a report by consulting firm ICF International finds the LCFS is driving investment in cleaner fuels, including low carbon ethanol, biodiesel, renewable diesel, and biogas, as well as cleaner production processes. The analysis also found that the LCFS will result in $1.4-$4.8 billion in societal benefits by 2020 from reduced air pollution and increased energy security.

The businesses stressed that standards such as LCFS give regulatory certainty needed for investors.

Biodiesel, biofuels, biogas, Clean Energy, Ethanol, Low Carbon Fuel Standard