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A low-carbon fuel standard (LCFS) is an
emissions trading Emissions trading is a market-oriented approach to controlling pollution by providing economic incentives for reducing the emissions of pollutants. The concept is also known as cap and trade (CAT) or emissions trading scheme (ETS). One prominen ...
rule designed to reduce the average
carbon intensity Carbon () is a chemical element; it has symbol C and atomic number 6. It is nonmetallic and tetravalent—meaning that its atoms are able to form up to four covalent bonds due to its valence shell exhibiting 4 electrons. It belongs to grou ...
of transportation fuels in a given jurisdiction, as compared to conventional
petroleum fuel Petroleum, also known as crude oil or simply oil, is a naturally occurring, yellowish-black liquid chemical mixture found in geological formations, consisting mainly of hydrocarbons. The term ''petroleum'' refers both to naturally occurring u ...
s, such as
gasoline Gasoline ( North American English) or petrol ( Commonwealth English) is a petrochemical product characterized as a transparent, yellowish, and flammable liquid normally used as a fuel for spark-ignited internal combustion engines. When for ...
and
diesel Diesel may refer to: * Diesel engine, an internal combustion engine where ignition is caused by compression * Diesel fuel, a liquid fuel used in diesel engines * Diesel locomotive, a railway locomotive in which the prime mover is a diesel engine ...
. The most common methods for reducing transportation carbon emissions are supplying electricity to
electric vehicles An electric vehicle (EV) is a motor vehicle whose propulsion is powered fully or mostly by electricity. EVs encompass a wide range of transportation modes, including road vehicle, road and rail vehicles, electric boats and Submersible, submer ...
, supplying
hydrogen fuel The hydrogen economy is an umbrella term for the roles hydrogen can play alongside low-carbon electricity to reduce emissions of greenhouse gases. The aim is to reduce emissions where cheaper and more energy-efficient clean solutions are not avail ...
to
fuel cell vehicles A fuel cell vehicle (FCV) or fuel cell electric vehicle (FCEV) is an electric vehicle that uses a fuel cell, sometimes in combination with a small battery or supercapacitor, to power its onboard electric motor. Fuel cells in vehicles generate el ...
and blending
biofuels Biofuel is a fuel that is produced over a short time span from biomass, rather than by the very slow natural processes involved in the formation of fossil fuels such as oil. Biofuel can be produced from plants or from agricultural, domestic ...
, such as
ethanol Ethanol (also called ethyl alcohol, grain alcohol, drinking alcohol, or simply alcohol) is an organic compound with the chemical formula . It is an Alcohol (chemistry), alcohol, with its formula also written as , or EtOH, where Et is the ps ...
,
biodiesel Biodiesel is a renewable biofuel, a form of diesel fuel, derived from biological sources like vegetable oils, animal fats, or recycled greases, and consisting of long-chain fatty acid esters. It is typically made from fats. The roots of bi ...
, renewable diesel, and
renewable natural gas Renewable natural gas (RNG), also known as biomethane, is a renewable fuel made from biogas that has been upgraded to a quality similar to fossil natural gas and has a methane concentration of 90% or greater. By removing carbon dioxide and other ...
into fossil fuels. The main purpose of a low-carbon fuel standard is to decrease
carbon dioxide Carbon dioxide is a chemical compound with the chemical formula . It is made up of molecules that each have one carbon atom covalent bond, covalently double bonded to two oxygen atoms. It is found in a gas state at room temperature and at norma ...
emissions associated with vehicles powered by various types of internal combustion engines while also considering the entire life cycle ("well to wheels"), in order to reduce the
carbon footprint A carbon footprint (or greenhouse gas footprint) is a calculated value or index that makes it possible to compare the total amount of greenhouse gases that an activity, product, company or country Greenhouse gas emissions, adds to the atmospher ...
of transportation. The first low-carbon fuel standard mandate in the world was enacted by
California California () is a U.S. state, state in the Western United States that lies on the West Coast of the United States, Pacific Coast. It borders Oregon to the north, Nevada and Arizona to the east, and shares Mexico–United States border, an ...
in 2007, with specific eligibility criteria defined by the
California Air Resources Board The California Air Resources Board (CARB or ARB) is an agency of the government of California that aims to reduce air pollution. Established in 1967 when then-governor Ronald Reagan signed the Mulford-Carrell Act, combining the Bureau of Air S ...
(CARB) in April 2009 but taking effect in January 2011. Similar legislation was approved in
British Columbia British Columbia is the westernmost Provinces and territories of Canada, province of Canada. Situated in the Pacific Northwest between the Pacific Ocean and the Rocky Mountains, the province has a diverse geography, with rugged landscapes that ...
in April 2008, and by
European Union The European Union (EU) is a supranational union, supranational political union, political and economic union of Member state of the European Union, member states that are Geography of the European Union, located primarily in Europe. The u ...
which proposed its legislation in January 2007 and which was adopted in December 2008. The
United Kingdom The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Northwestern Europe, off the coast of European mainland, the continental mainland. It comprises England, Scotlan ...
is implementing its
Renewable Transport Fuel Obligation The Renewable Transport Fuel Obligation (RTFO) in the United Kingdom is a requirement on transport fuel suppliers to ensure that 5 percent of all road vehicle fuel is supplied from sustainable renewable sources by 2010. The Government intends ...
Program, which also applies the concept of low-carbon fuels. Several bills have been proposed in the
United States The United States of America (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic of 50 U.S. state, states and a federal capital district, Washington, D.C. The 48 ...
for similar low-carbon fuel regulation at a national level but with less stringent standards than California. As of early 2010 none have been approved. The
U.S. Environmental Protection Agency The Environmental Protection Agency (EPA) is an independent agency of the United States government tasked with environmental protection matters. President Richard Nixon proposed the establishment of EPA on July 9, 1970; it began operation on De ...
(EPA) issued its final rule regarding the expanded
Renewable Fuel Standard The Renewable Fuel Standard (RFS) is an American federal program that requires transportation fuel sold in the United States to contain a minimum volume of renewable fuels. It originated with the Energy Policy Act of 2005 and was expanded and ext ...
(RFS2) for 2010 and beyond on February 3, 2010. This ruling, as mandated by the
Energy Independence and Security Act of 2007 The Energy Independence and Security Act of 2007Pub.L. 110-140, originally named the Clean Energy Act of 2007, is an Act of Congress concerning the energy policy of the United States. As part of the United States Democratic Party, Democratic Pa ...
(EISA), included direct emissions and significant indirect emissions from land use changes.


California Low-Carbon Fuel Standard

Californian Governor
Arnold Schwarzenegger Arnold Alois Schwarzenegger (born July30, 1947) is an Austrian and American actor, businessman, former politician, and former professional bodybuilder, known for his roles in high-profile action films. Governorship of Arnold Schwarzenegger, ...
issued
Executive Order In the United States, an executive order is a directive by the president of the United States that manages operations of the federal government. The legal or constitutional basis for executive orders has multiple sources. Article Two of the ...
S-1-07 on January 19, 2007, to enact a low-carbon fuel standard (LCFS). The LCFS requires
oil refineries An oil refinery or petroleum refinery is an industrial process plant where petroleum (crude oil) is transformed and refined into products such as gasoline (petrol), diesel fuel, asphalt base, fuel oils, heating oil, kerosene, liquefied pet ...
and distributors to ensure that the mix of fuel they sell in the Californian market meets the established declining targets for greenhouse gas (GHG) emissions measured in CO2-equivalent
gram The gram (originally gramme; SI unit symbol g) is a Physical unit, unit of mass in the International System of Units (SI) equal to one thousandth of a kilogram. Originally defined in 1795 as "the absolute Mass versus weight, weight of a volume ...
s per unit of fuel energy sold for transport purposes. The LCFS directive calls for a reduction of at least 10 percent in the carbon intensity of California's transportation fuels by 2020. These reductions include not only
tailpipe An exhaust system is used to guide reaction exhaust gases away from a controlled combustion inside an engine or stove. The entire system conveys burnt gases from the engine and includes one or more exhaust pipes. Depending on the overall syste ...
emissions but also all other associated emissions from production, distribution and use of transport fuels within the state. Therefore, California LCFS considers the fuel's full life cycle, also known as the "well to wheels" or "seed to wheels" efficiency of transport fuels. The standard is also aimed to reduce the state's dependence on petroleum, create a market for clean transportation technology, and stimulate the production and use of alternative, low-carbon fuels in California. There have been efforts to change the intensity measurement model from the CARB GREET model to the Argonne GREET model in order to more fully capture the carbon intensity impact of the fuels. The LCFS is a mix of
command and control regulation Command and Control (CAC) regulation finds common usage in academic literature and beyond. The relationship between CAC and environmental policy is considered in this article, an area that demonstrates the application of this type of regulation. Ho ...
and
emissions trading Emissions trading is a market-oriented approach to controlling pollution by providing economic incentives for reducing the emissions of pollutants. The concept is also known as cap and trade (CAT) or emissions trading scheme (ETS). One prominen ...
, as it will use market-based mechanisms that allow providers to choose how they will reduce emissions while responding to consumer demand. Some believe that oil companies could opt for several actions to comply. For example, they state that refiners and producers could improve the efficiency of the refineries and upstream production, or may purchase and blend more low-carbon ethanol into gasoline products, or purchase credits from electric utilities supplying low carbon electrons to electric passenger vehicles, or diversifying and selling low carbon hydrogen for use by vehicles as a product, or any new strategy as the standard is being designed. The California Global Warming Solutions Act of 2006 authorized the establishment of emissions trading in California, with rules to be adopted by 2010, and taking effect no later than January 2012.


Regulatory proceedings

In accordance to the California Global Warming Solutions Act of 2006 and the Governor's Directive, the
California Air Resources Board The California Air Resources Board (CARB or ARB) is an agency of the government of California that aims to reduce air pollution. Established in 1967 when then-governor Ronald Reagan signed the Mulford-Carrell Act, combining the Bureau of Air S ...
is the agency responsible for developing the "Low-Carbon Fuel Standard Program", and it was directed to initiate the regulatory proceedings to establish and implement the LCFS." CARB identified the LCFS as an early action item with a regulation to be adopted and implemented by 2010. Also Executive Order S-1-07 ordered the
California Environmental Protection Agency The California Environmental Protection Agency (CalEPA) is a state cabinet-level agency within the government of California. The mission of CalEPA is to restore, protect and enhance the environment, to ensure public health, environmental quali ...
to coordinate activities between the
University of California The University of California (UC) is a public university, public Land-grant university, land-grant research university, research university system in the U.S. state of California. Headquartered in Oakland, California, Oakland, the system is co ...
, the
California Energy Commission The California Energy Commission, formally the Energy Resources Conservation and Development Commission, is the primary energy policy and energy planning, planning Government agency, agency for California. Created in 1974 and headquartered in S ...
and other state agencies to develop and propose a draft compliance schedule to meet the 2020 target. As mandated by the Executive Order, a University of California team, led by Daniel Sperling of
UC Davis The University of California, Davis (UC Davis, UCD, or Davis) is a Public university, public Land-grant university, land-grant research university in Davis, California, United States. It is the northernmost of the ten campuses of the University ...
and the late Alexander E. Farrell (
UC Berkeley The University of California, Berkeley (UC Berkeley, Berkeley, Cal, or California), is a public land-grant research university in Berkeley, California, United States. Founded in 1868 and named after the Anglo-Irish philosopher George Berkele ...
), developed two reports that established the technical feasibility of an LCFS, proposed the methodology to calculate the full life cycle GHG emissions from all fuels sold in the state, identified technical and policy issues, and provided a number of specific recommendations, thus providing an initial framework for the development of CARB's LCFS. This study was presented by Governor Schwarzenegger in May 2007 and they were the backbone of CARB's initial efforts to develop the LCFS, even though not all of the specific recommendations were incorporated in the final LCFS staff's proposed regulation.


Public consultation process

During 2008 and until the April 2009 LCFS ruling, CARB published in its website all technical reports prepared by its staff and collaborators regarding the definition and calculations related to the proposed LCFS regulation, conducted 16 public workshops, and also submitted its studies for external peer review. Before the April 23, 2009 ruling, the Board held a 45-day public hearing that received 229 comments, 21 of which were presented during the Board Hearing.


Controversy about indirect land use impacts

Among relevant and controversial comments submitted to CARB as public letters, on June 24, 2008, a group of 27 scientists and researchers from a number of universities and national laboratories, expressed their concerns arguing that there "is not enough hard empirical data to base any sound policy regulation in regards to the indirect impacts of renewable biofuels production. The field is relative new, especially when compared to the vast knowledge base present in fossil fuel production, and the limited analyses are driven by assumptions that sometimes lack robust empirical validation." With a similar opposing position, on October 23, 2008, a letter submitted to CARB by the New Fuels Alliance, representing more than two-dozen advanced biofuel companies, researchers and investors, questioned the Board intention to include indirect land use change (ILUC). In another public letter just before the ruling meeting, more than 170 scientists and economists sent a letter to CARB, urging it to account for GHG emissions from indirect
land use change Land use is an umbrella term to describe what happens on a parcel of land. It concerns the benefits derived from using the land, and also the land management actions that humans carry out there. The following categories are used for land use: for ...
for biofuels and all other transportation fuels. They argued that "...there are uncertainties inherent in estimating the magnitude of indirect land use emissions from biofuels, but assigning a value of zero is clearly not supported by the science."


2009 Ruling

On April 23, 2009, CARB approved the specific rules and carbon intensity reference values for the LCFS that will go into effect on January 1, 2011. The technical proposal was approved without modifications by a 9–1 vote, to set the 2020 maximum carbon intensity reference value for gasoline to 86 grams of
carbon dioxide equivalent Global warming potential (GWP) is a measure of how much heat a greenhouse gas traps in the atmosphere over a specific time period, relative to carbon dioxide (). It is expressed as a multiple of warming caused by the same mass of carbon dioxide ( ...
released per
megajoule The joule ( , or ; symbol: J) is the unit of energy in the International System of Units (SI). In terms of SI base units, one joule corresponds to one kilogram- metre squared per second squared One joule is equal to the amount of work don ...
of energy produced. One standard was established for gasoline and the alternative fuels that can replace it, and a second similar standard is set for diesel fuel and its replacements. The regulation is based on an average declining standard of
carbon intensity Carbon () is a chemical element; it has symbol C and atomic number 6. It is nonmetallic and tetravalent—meaning that its atoms are able to form up to four covalent bonds due to its valence shell exhibiting 4 electrons. It belongs to grou ...
that is expected to achieve 16 million metric tons of greenhouse gas emission reductions by 2020. CARB expects the new generation of fuels to come from the development of technology that uses
cellulosic ethanol Cellulosic ethanol is ethanol (ethyl alcohol) produced from cellulose (the stringy fiber of a plant) rather than from the plant's seeds or fruit. It can be produced from grasses, wood, algae, or other plants. It is generally discussed for use as a ...
from
algae Algae ( , ; : alga ) is an informal term for any organisms of a large and diverse group of photosynthesis, photosynthetic organisms that are not plants, and includes species from multiple distinct clades. Such organisms range from unicellular ...
, wood, agricultural waste such as
straw Straw is an agricultural byproduct consisting of the dry wikt:stalk, stalks of cereal plants after the grain and chaff have been removed. It makes up about half of the crop yield, yield by weight of cereal crops such as barley, oats, rice, ry ...
and
switchgrass ''Panicum virgatum'', commonly known as switchgrass, is a perennial warm season bunchgrass native to North America, where it occurs naturally from 55th parallel north, 55°N latitude in Canada southwards into the United States and Mexico. Switch ...
, and also
natural gas Natural gas (also fossil gas, methane gas, and gas) is a naturally occurring compound of gaseous hydrocarbons, primarily methane (95%), small amounts of higher alkanes, and traces of carbon dioxide and nitrogen, hydrogen sulfide and helium ...
from municipal solid waste. They also expect the standard to drive the availability of
plug-in hybrid A plug-in hybrid electric vehicle (PHEV) or simply plug-in hybrid is a type of hybrid electric vehicle equipped with a rechargeable battery pack that can be directly replenished via a charging cable plugged into an external electric power so ...
, battery electric and fuel-cell powered cars while promoting investment in infrastructure for electric charging stations and hydrogen fueling stations. The ruling is controversial. Representatives of the US ethanol industry complained that this rule overstates the environmental effects of corn ethanol, and also criticized the inclusion of indirect effects of land-use changes as an unfair penalty to home-made corn ethanol because deforestation in the developing world is being tied to US ethanol production. The initial reference value set for 2011 for LCFS means that Mid-west corn ethanol will not meet the California standard unless current carbon intensity is reduced. Oil industry representatives complained that there is a cost associated to the new standard, as the LCFS will limit the use of corn ethanol blended in gasoline, thus leaving oil refiners with few available and viable options, such as sugarcane ethanol from Brazil, but this option means paying costly U.S. import tariffs. CARB officials and environmentalists reject such scenario because they think there will be plenty of time and economic incentive to developed inexpensive biofuels, hydrogen-based fuels, even ethanol from such cellulosic materials, or new ways to make ethanol out of corn with a smaller carbon footprint.
Brazil Brazil, officially the Federative Republic of Brazil, is the largest country in South America. It is the world's List of countries and dependencies by area, fifth-largest country by area and the List of countries and dependencies by population ...
ian ethanol producers ( UNICA), though they welcomed the ruling as they consider their sugarcane ethanol have passed a critical test and expect their biofuel to enter the California market in the future, UNICA also urged CARB to update the data and assumptions used, which according to them, is excessively penalizing their ethanol and is not reflecting the technology and agricultural practices currently in use in Brazil. UNICA disagreed with the assertion that indirect
land-use change Land use is an umbrella term to describe what happens on a parcel of land. It concerns the benefits derived from using the land, and also the land management actions that humans carry out there. The following categories are used for land use: for ...
s can be accurately calculated with the current methodologies.
Canadian Canadians () are people identified with the country of Canada. This connection may be residential, legal, historical or cultural. For most Canadians, many (or all) of these connections exist and are collectively the source of their being ''C ...
officials also complained the standard could become an entry barrier to their
Alberta Alberta is a Provinces and territories of Canada, province in Canada. It is a part of Western Canada and is one of the three Canadian Prairies, prairie provinces. Alberta is bordered by British Columbia to its west, Saskatchewan to its east, t ...
oil sands Oil sands are a type of unconventional petroleum deposit. They are either loose sands, or partially consolidated sandstone containing a naturally occurring mixture of sand, clay, and water, soaked with bitumen (a dense and extremely viscous ...
, as producers will have to significantly reduce their emissions or purchase expensive credits from alternative energy producers in order for their non-conventional oil to be sold in California. They complained that the measure could be discriminating against Canadian oil sands crude as a high carbon intensity crude oil, while other
heavy crude oil Heavy crude oil (or extra heavy crude oil) is highly viscous oil that cannot easily flow from production wells under normal reservoir conditions. It is referred to as "heavy" because its density or specific gravity is higher than that of light cr ...
s from other sources were not evaluated by CARB's studies. The only Board member who voted against the ruling explained that he had "hard time accepting the fact that we’re going to ignore the comments of 125 scientists", referring to the letter submitted by a group of scientists questioning the indirect land use change penalty. "They said the model was not good enough... to use at this time as a component part of such an historic new standard." CARB adopted only one main amendment to the staff proposal to bolster the standard review process, moving up the expected date of an expert working group to report on indirect land use change from January 2012 to January 2011. This change is expected to provide for a thoroughly review of the specific penalty for indirect land use change and correct it if possible. The CARB staff is also expected to report back to the Board on indirect impacts of other fuel pathways before the commencement of the standard in 2011. Fuels were rated based on their carbon intensity, estimated in terms of the quantity of grams of carbon dioxide equivalent released for every megajoule of energy produced for their full life cycle, also referred to as the fuel pathway. Carbon intensity was estimated considering the direct carbon footprint for each fuel, and for biofuels the indirect land-use effects were also included. Originally published online in Science Express on 7 February 2008. See Letters to ''Science'' by Wang and Haq. There are critics to these findings for assuming a worst-case scenario. Originally published online in Science Express on 7 February 2008. There are rebuttals to these findings for assuming a worst-case scenario The resulting intensities for the main biofuels readily available are the following: The LCFS standards established in CARB's rulemaking will be periodically reviewed. The first formal review will occur by January 1, 2011. Additional reviews are expected to be conducted approximately every three years thereafter, or as necessary. The 2011 review will consider the status of efforts to develop low carbon fuels, the compliance schedule, updated technical information, and provide recommendations on metrics to address the sustainable production of low carbon fuels. According to CARB's ruling, providers of transportation fuels must demonstrate that the mix of fuels they supply meet the LCFS intensity standards for each annual compliance period. They must report all fuels provided and track the fuels’ carbon intensity through a system of "credits" and "deficits." Credits are generated from fuels with lower carbon intensity than the standard. Deficits result from the use of fuels with higher carbon intensity than the standard. A fuel provider meets its compliance obligation by ensuring that amount of credits it earns (or otherwise acquires from another party) is equal to, or greater than, the deficits it has incurred. Credits and deficits are generally determined based on the amount of fuel sold, the carbon intensity of the fuel, and the efficiency by which a vehicle converts the fuel into usable energy. Credits may be banked and traded within the LCFS market to meet obligations. Two "lookup tables" (similar to the one above) and its carbon intensity values are part of the regulation, one for gasoline and another for diesel. The carbon intensity values can only be amended or expanded by regulatory amendments, and the Board delegated to the Executive Officer the responsibility to conduct the necessary rulemaking hearings and take final action on any amendments, other than amending indirect land-use change values included in the lookup tables.


Latest Developments

On July 20, 2009, CARB published a Notice of Public Availability of modified text and availability of additional documents regarding the April 2009 rule making (Resolution 09–31), open for public comment until August 19. The supporting documents and information added to the rule making record include new pathways for
Liquefied Natural Gas Liquefied natural gas (LNG) is natural gas (predominantly methane, CH4, with some mixture of ethane, C2H6) that has been cooled to liquid form for ease and safety of non-pressurized storage or transport. It takes up about 1/600th the volume o ...
(LNG) from several sources,
Compressed Natural Gas Compressed natural gas (CNG) is a fuel gas mainly composed of methane (CH4), compressed to less than 1% of the volume it occupies at standard atmospheric pressure. It is stored and distributed in hard containers at a pressure of , usually in ...
(CNG) from dairy digester biogas,
biodiesel Biodiesel is a renewable biofuel, a form of diesel fuel, derived from biological sources like vegetable oils, animal fats, or recycled greases, and consisting of long-chain fatty acid esters. It is typically made from fats. The roots of bi ...
produced in California from used cooking oil, renewable diesel produced in California from
tallow Tallow is a rendered form of beef or mutton suet, primarily made up of triglycerides. In industry, tallow is not strictly defined as beef or mutton suet. In this context, tallow is animal fat that conforms to certain technical criteria, inc ...
(U.S. sourced), and two additional new pathways for Brazilian sugarcane ethanol which reflect best practices already implemented in some regions of the country. The two additional scenarios for sugarcane ethanol were requested by the Board in order to account for improved harvesting practices and the export of electricity from sugarcane ethanol plants in Brazil using energy from
bagasse Bagasse ( ) is the dry pulpy fibrous material that remains after crushing sugarcane or sorghum stalks to extract their juice. It is used as a biofuel for the production of heat, energy, and electricity, and in the manufacture of pulp and building ...
. These two scenarios are not to be considered average for all of Brazilian ethanol but specific cases when such practices are adopted in Brazil. Scenario 1 considers mechanized harvesting of cane which is gradually replacing the traditional practice of burning straw before harvesting cane, and the sale of electricity (co-generated) from power plants that are capable of exporting additional energy beyond that required for processing in the plant (co-product credit). Scenario 2 only considers the export of electricity (co-product) from power plants capable of producing the additional electricity for export. The assumptions or values for the baseline pathway published in February 2009 are the same, including the estimates of indirect land use change for all Brazilian sugarcane scenarios. In December 2009 the
Renewable Fuels Association The Renewable Fuels Association (RFA) represents the ethanol industry promoting policies, regulations, and research and development initiatives that will lead to the increased production and use of ethanol fuel. First organized in 1981, RFA serve ...
(RFA) and
Growth Energy Growth Energy is an American trade association that represents ethanol producers. Growth Energy's mission is "the producers and supporters of ethanol, who feed the world and fuel America in ways that achieve energy independence, improve economic w ...
, two U.S. ethanol lobbying groups, filed a lawsuit in the Federal District Court in Fresno, California, challenging the constitutionality of the California Low Carbon Fuel Standard (LCFS). The two organizations argued that the LCFS violates both the
Supremacy Clause The Supremacy Clause of the Constitution of the United States ( Article VI, Clause 2) establishes that the Constitution, federal laws made pursuant to it, and treaties made under its authority, constitute the "supreme Law of the Land", and th ...
and the
Commerce Clause The Commerce Clause describes an enumerated power listed in the United States Constitution ( Article I, Section 8, Clause 3). The clause states that the United States Congress shall have power "to regulate Commerce with foreign Nations, and amon ...
of the
US Constitution The Constitution of the United States is the supreme law of the United States of America. It superseded the Articles of Confederation, the nation's first constitution, on March 4, 1789. Originally including seven articles, the Constitut ...
, and "jeopardizes the nationwide market for ethanol". In a press release both associations announced that "If the United States is going to have a low carbon fuel standard, it must be based on sound science and it must be consistent with the U.S. Constitution..." and that "One state cannot dictate policy for all the others, yet that is precisely what California has aimed to do through a poorly conceived and, frankly, unconstitutional LCFS." Additional lawsuits against the California regulation were filed by refiners and truckers including Rocky Mountain Farmers Union; Redwood County Minnesota Corn and Soybean Growers; Penny Newman Grain, Inc.; Red Nederend; Fresno County Farm Bureau; Nisei Farmers League; California Dairy Campaign; National Petrochemical and Refiners Association;
American Trucking Associations The American Trucking Associations (ATA), founded in 1933, is the largest national trade association for the trucking industry. ATA represents more than 37,000 members covering every type of motor carrier in the United States through a federation ...
; Center for North American Energy Security; and the Consumer Energy Alliance. In December 2011 a federal judge granted a preliminary injunction against the implementation of California's LCFS. In three separate rulings the judge rejected CARB's defense as he concluded that the state acted unconstitutionally and the regulation "impermissibly treads into the province and powers of our federal government, reaches beyond its boundaries to regulate activity wholly outside of its borders." CARB announced it intends to appeal the decision. The Ninth Circuit Court of Appeals issued a stay of the injunction on 23 April 2012 during the tendency of the litigation. In other words, the challenge to the constitutionality of the LCFS continues, but until it is resolved there is no bar on the CARB continuing to enforce the LCFS. (While the stay did not specifically authorize a return to the LCFS, CARB argued in its briefs before the Court that a stay would "permit the LCFS to go back into effect as though the injunction had never been issued". That is the approach currently taken by CARB and it continues to refine carbon intensity standards and applicability). In 2011, a provision was added to the LCFS that allows refiners to receive credits for the deployment of innovative crude production technologies, such as carbon capture and sequestration or solar steam generation. Solar thermal enhanced oil recovery is a form of
enhanced oil recovery Enhanced oil recovery (abbreviated EOR), also called tertiary recovery, is the extraction of crude oil from an oil field that cannot be extracted after primary and secondary recovery methods have been completely exhausted. Whereas primary and se ...
(EOR), which is key to harvesting California's heavy crude. Currently, California uses EOR to help produce about 60% of its crude output. By using solar power instead of natural gas to create steam for EOR, solar steam generation reduces the amount of emissions produced during oil extraction, thus lowering the overall carbon intensity of crude. California currently has two solar EOR projects in operation, one in McKittrick, operated by LINN Energy (formerly Berry Petroleum) using enclosed trough technology from GlassPoint Solar, and another in Coalinga operated by
Chevron Corporation Chevron Corporation is an American multinational energy corporation predominantly specializing in oil and gas. The second-largest direct descendant of Standard Oil, and originally known as the Standard Oil Company of California (shortened t ...
using
BrightSource Energy BrightSource Energy, Inc. is an Oakland, California based, corporation that designs, builds, finances, and operates utility-scale solar power plants. Greentech Media ranked BrightSource as one of the top 10 environmental technology, greentech star ...
power tower technology. CARB is currently considering an amendment to allow upstream operators to receive credits for deploying innovative crude production technologies. In 2015, California's LCFS was re-adopted in order to address some of the issues in the original proposed standard. A number of the changes were made, including updated crude provisions, a new model used to be used to calculate carbon intensity, the establishment of a "Credit Clearance" process that would take effect at the end of the year should the LCFS credit market become too competitive, and other provisions. In May 2016, the Seneca Solar Project became the first facility to start earning LCFS credits. Located in the North Midway Sunset oil field in Taft, Kern County, California, this facility met the threshold of 0.10gCO2/ MJ carbon intensity (CI) reduction. Shortly after that, in August 2016, the SB 32 was passed, which changed the target for green house gas (GHG) reduction to 40% below the levels in 1990, to be achieved by 2030. It is anticipated that this will lead to the tightening of LCFS standards from 2020 all the way through 2030. In November 2017, GlassPoint announced a partnership with
Aera Energy Aera Energy LLC (or simply Aera) is a natural gas, oil exploration and production company started as a joint venture between Shell plc (through Shell USA) and Mobil (which later merged to form ExxonMobil). Headquartered in Bakersfield, Californ ...
to bring its enclosed trough technology to the
South Belridge Oil Field The South Belridge Oil Field is a large oil field in northwestern Kern County, San Joaquin Valley, California, about forty miles west of Bakersfield. Discovered in 1911, and having a cumulative production of over of oil equivalent at the end o ...
, near
Bakersfield, California Bakersfield is a city in and the county seat of Kern County, California, United States. The city covers about near the southern end of the San Joaquin Valley, which is located in the Central Valley region. Bakersfield's population as of th ...
. When done, the facility will be California's largest solar EOR field. It is projected to produce approximately 12 million barrels of steam per year through a 850MW thermal solar steam generator. It will also cut carbon emissions from the facility by 376,000 metric tons per year. In 2019, concluding a long-running challenge to the constitutionality of the California LCFS, the
Ninth Circuit Court of Appeals The United States Court of Appeals for the Ninth Circuit (in case citations, 9th Cir.) is the U.S. federal court of appeals that has appellate jurisdiction over the U.S. district courts for the following federal judicial districts: * Distric ...
ruled that the 2015 LCFS did not violate the Commerce Clause of the United States Constitution.


US National Low-Carbon Fuel Standard

Using California's LCFS as a model, several bills have been presented to establish a national low-carbon fuel standards at the federal level.


2007

Senator A senate is a deliberative assembly, often the upper house or Legislative chamber, chamber of a bicameral legislature. The name comes from the Ancient Rome, ancient Roman Senate (Latin: ''Senatus''), so-called as an assembly of the senior ...
s
Barbara Boxer Barbara Sue Boxer (née Levy; born November 11, 1940) is a retired American politician, lobbyist, and former reporter who served in the United States Senate, representing California from 1993 to 2017. A member of the Democratic Party (United St ...
,
Dianne Feinstein Dianne Emiel Feinstein (; June 22, 1933 – September 29, 2023) was an American politician who served as a United States senator from California from 1992 until her death in 2023. A member of the Democratic Party, she served as the 38th ...
, and future President
Barack Obama Barack Hussein Obama II (born August 4, 1961) is an American politician who was the 44th president of the United States from 2009 to 2017. A member of the Democratic Party, he was the first African American president in American history. O ...
introduced in 2007 competing bills with varying versions of California's LCFS. *In March 2007, Senator Dianne Feinstein sponsored the "Clean Fuels and Vehicles Bill", which would have reduced emissions from motor vehicle fuels by 10 percent below projected levels by 2030, and would have required fuel suppliers to increase the percentage of low-carbon fuels – biodiesel, E-85 (made with cellulosic ethanol), hydrogen, electricity, and others – in the motor vehicle fuel supply. *California Senator Barbara Boxer presented on May 3, 2007, the "Advanced Clean Fuels Act of 2007". This bill was an amendment to the Clean Air Act to promote the use of advanced clean fuels that help reduce air and water pollution and protect the environment. *Then Senator Obama introduced his bill on May 7, 2007. The "National Low Carbon Fuel Standard Act of 2007" would have required fuel refineries to reduce the lifecycle greenhouse gas emissions of the transportation fuels sold in the U.S. by 5 percent in 2015 and 10 percent in 2020.


2009

In March 2009, the Waxman-Markey Climate Bill was introduced in the
U.S. House Committee on Energy and Commerce The Committee on Energy and Commerce is one of the oldest standing committees of the United States House of Representatives. Established in 1795, it has operated continuously—with various name changes and jurisdictional changes—for more than ...
, and it has been praised by top
Obama Administration Barack Obama's tenure as the 44th president of the United States began with his first inauguration on January 20, 2009, and ended on January 20, 2017. Obama, a Democrat from Illinois, took office following his victory over Republican nomine ...
officials. The bill requires a slightly higher targets for reductions in emissions of
carbon dioxide Carbon dioxide is a chemical compound with the chemical formula . It is made up of molecules that each have one carbon atom covalent bond, covalently double bonded to two oxygen atoms. It is found in a gas state at room temperature and at norma ...
,
methane Methane ( , ) is a chemical compound with the chemical formula (one carbon atom bonded to four hydrogen atoms). It is a group-14 hydride, the simplest alkane, and the main constituent of natural gas. The abundance of methane on Earth makes ...
, and other
greenhouse gas Greenhouse gases (GHGs) are the gases in the atmosphere that raise the surface temperature of planets such as the Earth. Unlike other gases, greenhouse gases absorb the radiations that a planet emits, resulting in the greenhouse effect. T ...
es than those proposed by
President President most commonly refers to: *President (corporate title) * President (education), a leader of a college or university *President (government title) President may also refer to: Arts and entertainment Film and television *'' Præsident ...
Barack Obama Barack Hussein Obama II (born August 4, 1961) is an American politician who was the 44th president of the United States from 2009 to 2017. A member of the Democratic Party, he was the first African American president in American history. O ...
. The bill proposed a 20-percent emissions reduction from 2005 levels by 2020 (Obama had proposed a 14 percent reduction by 2020). Both plans aim to reduce emissions by about 80 percent by 2050. The Climate Change Bill was approved by the
U.S. House of Representatives The United States House of Representatives is a chamber of the bicameral United States Congress; it is the lower house, with the U.S. Senate being the upper house. Together, the House and Senate have the authority under Article One of th ...
on June 26, 2009. As approved, emissions would be cut 17 percent from 2005 levels by 2020, and 83 percent by 2050.


EPA Renewable Fuel Standard

The
Energy Independence and Security Act of 2007 The Energy Independence and Security Act of 2007Pub.L. 110-140, originally named the Clean Energy Act of 2007, is an Act of Congress concerning the energy policy of the United States. As part of the United States Democratic Party, Democratic Pa ...
(EISA) established new renewable fuel categories and eligibility requirements, setting mandatory life cycle
greenhouse gas emissions Greenhouse gas (GHG) emissions from human activities intensify the greenhouse effect. This contributes to climate change. Carbon dioxide (), from burning fossil fuels such as coal, petroleum, oil, and natural gas, is the main cause of climate chan ...
thresholds for renewable fuel categories, as compared to those of average petroleum fuels used in 2005. ''See Table 1''. EISA definition of life cycle GHG emissions explicitly mandated the
U.S. Environmental Protection Agency The Environmental Protection Agency (EPA) is an independent agency of the United States government tasked with environmental protection matters. President Richard Nixon proposed the establishment of EPA on July 9, 1970; it began operation on De ...
(EPA) to include "direct emissions and significant indirect emissions such as significant emissions from land use changes." On May 5, 2009, the U.S. Environmental Protection Agency (EPA) released its
notice of proposed rulemaking A notice of proposed rulemaking (NPRM) is a public notice that is issued by law when a U.S. federal agency wishes to add, remove, or change a rule or regulation as part of the rulemaking process. The notice is an important part of US administrat ...
for implementation of the 2007 modification of the
Renewable Fuel Standard The Renewable Fuel Standard (RFS) is an American federal program that requires transportation fuel sold in the United States to contain a minimum volume of renewable fuels. It originated with the Energy Policy Act of 2005 and was expanded and ext ...
(RFS). The draft of the regulations was released for public comment during a 60-day period. EPA's proposed regulations also included the
carbon footprint A carbon footprint (or greenhouse gas footprint) is a calculated value or index that makes it possible to compare the total amount of greenhouse gases that an activity, product, company or country Greenhouse gas emissions, adds to the atmospher ...
from indirect land-use changes, which, as CARB's ruling, caused controversy among ethanol producers. On the same day, President
Barack Obama Barack Hussein Obama II (born August 4, 1961) is an American politician who was the 44th president of the United States from 2009 to 2017. A member of the Democratic Party, he was the first African American president in American history. O ...
signed a
Presidential Directive In the United States, a presidential directive, or executive action, is a written or oral instruction or declaration issued by the president of the United States, which may draw upon the powers vested in the president by the Constitution of the Uni ...
with the aim to advance biofuels research and improve their commercialization. The Directive established a Biofuels Interagency Working Group which has the mandate to come up with policy ideas for increasing investment in next-generation fuels, such as cellulosic ethanol, and for reducing the environmental footprint of growing biofuels crops, particularly corn-based ethanol. An amendment was introduced in the
House Appropriations Committee The United States House Committee on Appropriations is a committee of the United States House of Representatives that is responsible for passing appropriation bills along with its Senate counterpart. The bills passed by the Appropriations Co ...
during the discussion of the fiscal 2010 Interior and Environment spending bill, aimed to prohibit EPA to consider indirect land-use changes in the RFS2 ruling for five years. This amendment was rejected on June 18, 2009, by a 30 to 29 vote. A similar amendment to the Waxman-Markey Climate Bill was introduced in the
U.S. House Committee on Energy and Commerce The Committee on Energy and Commerce is one of the oldest standing committees of the United States House of Representatives. Established in 1795, it has operated continuously—with various name changes and jurisdictional changes—for more than ...
. The Climate Bill was approved by the
U.S. House of Representatives The United States House of Representatives is a chamber of the bicameral United States Congress; it is the lower house, with the U.S. Senate being the upper house. Together, the House and Senate have the authority under Article One of th ...
with a vote of 219 to 212, and included a mandate for EPA to exclude any estimation of international indirect land use changes due to biofuels for a five-year period for the purposes of the RFS2. During this period, more research is to be conducted to develop more reliable models and methodologies for estimating ILUC. By 2010 the bill is awaiting approval by the
U.S. Senate The United States Senate is a chamber of the bicameral United States Congress; it is the upper house, with the U.S. House of Representatives being the lower house. Together, the Senate and House have the authority under Article One of the ...
. On February 3, 2010, EPA issued its final rule regarding the expanded Renewable Fuel Standard (RFS2) for 2010 and beyond. The final rule revises the annual renewable fuel standards, and the required renewable fuel volume continues to increase reaching 36 billion gallons (136.3 billion liters) by 2022. For 2010, EISA set a total renewable fuel standard of 12.95 billion gallons (49.0 billion liters). This total volume, presented as a fraction of a refiner's or importer's gasoline and diesel volume, must be renewable fuel. The final 2010 standards set by EPA are shown in the table in the right side. As mandated by law, and in order to establish the fuel category for each biofuel, EPA included in its modeling direct emissions and significant indirect emissions such as emissions from land use changes related to the full lifecycle. EPA's modeling of specific fuel pathways incorporated comments received through the third-party peer review process, and data and information from new studies and public comments. EPA's analysis determined that both
ethanol Ethanol (also called ethyl alcohol, grain alcohol, drinking alcohol, or simply alcohol) is an organic compound with the chemical formula . It is an Alcohol (chemistry), alcohol, with its formula also written as , or EtOH, where Et is the ps ...
produced from
corn starch Cornflour, cornstarch, maize starch, or corn starch (American English) is the starch derived from corn (maize) grain. The starch is obtained from the endosperm of the seed, kernel. Corn starch is a common food ingredient, often used to thick ...
and
biobutanol image:Butanol_flat_structure.png, Butanol, a C-4 hydrocarbon is a promising bio-derived fuel, which shares many properties with gasoline. Butanol may be used as a fuel in an internal combustion engine. It is more similar to gasoline than it is to ...
from corn starch comply with the 20% GHG emission reduction threshold required to classify as a renewable fuel. EISA grandfathered existing U.S. corn ethanol plants, and only requires the 20% reduction in life cycle GHG emissions for any renewable fuel produced at new facilities that commenced construction after December 19, 2007. EPA also determined that ethanol produced from sugarcane, both in
Brazil Brazil, officially the Federative Republic of Brazil, is the largest country in South America. It is the world's List of countries and dependencies by area, fifth-largest country by area and the List of countries and dependencies by population ...
and
Caribbean Basin Initiative The Caribbean Basin Initiative (CBI), a trade initiative initiated by the 1983 Caribbean Basin Economic Recovery Act (CBERA), is a United States program. The CBI came into effect on January 1, 1984, and aimed to provide several tariff and trade be ...
countries, complies with the applicable 50% GHG reduction threshold for the advanced fuel category. Both diesel produced from algal oils and
biodiesel Biodiesel is a renewable biofuel, a form of diesel fuel, derived from biological sources like vegetable oils, animal fats, or recycled greases, and consisting of long-chain fatty acid esters. It is typically made from fats. The roots of bi ...
from soy oil and renewable diesel from waste oils, fats, and greases complies with the 50% GHG threshold for the biomass-based diesel category.
Cellulosic ethanol Cellulosic ethanol is ethanol (ethyl alcohol) produced from cellulose (the stringy fiber of a plant) rather than from the plant's seeds or fruit. It can be produced from grasses, wood, algae, or other plants. It is generally discussed for use as a ...
and cellulosic diesel (based on currently modeled pathways) comply with the 60% GHG reduction threshold applicable to cellulosic biofuels. The following table summarizes the mean GHG emissions estimated and the range of variations considering that the main source of uncertainty in the life cycle analysis is the emissions related to international land use change GHG emissions. UNICA, a Brazilian ethanol producers association, welcomed the ruling and commented that they hope the classification of Brazilian sugarcane ethanol as an advanced biofuel will contribute to influence those who seek to lift the trade barriers imposed against clean energy, both in the U.S. and the rest of the world. EPA's final ruling is expected to benefit Brazilian producers, as the blending mandate requires an increasing quota of advanced biofuels, which is not likely to be fulfill with cellulosic ethanol, and then it would force blenders to import more Brazilian sugarcane-based ethanol, despite the existing 54¢ per gallon tariff on ethanol imported directly from Brazil. In the case of corn-based ethanol, EPA said that manufacturers would need to use “advanced efficient technologies” during production to meet RSF2 limits. The U.S.
Renewable Fuels Association The Renewable Fuels Association (RFA) represents the ethanol industry promoting policies, regulations, and research and development initiatives that will lead to the increased production and use of ethanol fuel. First organized in 1981, RFA serve ...
also welcomed the ruling, as ethanol producers "require stable federal policy that provides them the market assurances they need to commercialize new technologies." However, they complained that "EPA continues to rely on oft-challenged and unproven theories such as international indirect land use change to penalize U.S. biofuels to the advantage of imported ethanol and petroleum."


Other U.S. regional proposals and programs

Eleven U.S.
Northeast The points of the compass are a set of horizontal, radially arrayed compass directions (or azimuths) used in navigation and cartography. A '' compass rose'' is primarily composed of four cardinal directions—north, east, south, and west—eac ...
and
Mid-Atlantic Mid-Atlantic or Mid Atlantic can refer to: *The middle of the Atlantic Ocean *Mid-Atlantic English, any mix between British and American English *Mid-Atlantic Region (Little League World Series), one of the United States geographic divisions of the ...
states have committed to analyzing a single low-carbon fuel standard for the entire region, driving commercialization and creating a larger market for fuels with low
carbon intensity Carbon () is a chemical element; it has symbol C and atomic number 6. It is nonmetallic and tetravalent—meaning that its atoms are able to form up to four covalent bonds due to its valence shell exhibiting 4 electrons. It belongs to grou ...
. The standard is aimed to reduce greenhouse gas emissions from fuels for vehicles and other uses, including fuel used for heating buildings, industrial processes, and electricity generation. Ten of these states are members of the
Regional Greenhouse Gas Initiative The Regional Greenhouse Gas Initiative (RGGI, pronounced "Reggie") is the first mandatory market-based program to reduce greenhouse gas emissions by the United States. RGGI is a cooperative effort among the states of Connecticut, Delaware, Maine, ...
(RGGI).
California Air Resources Board The California Air Resources Board (CARB or ARB) is an agency of the government of California that aims to reduce air pollution. Established in 1967 when then-governor Ronald Reagan signed the Mulford-Carrell Act, combining the Bureau of Air S ...
(CARB) staff has been coordinating with representatives of these States. The states developing a regional LCFS are
Connecticut Connecticut ( ) is a U.S. state, state in the New England region of the Northeastern United States. It borders Rhode Island to the east, Massachusetts to the north, New York (state), New York to the west, and Long Island Sound to the south. ...
,
Delaware Delaware ( ) is a U.S. state, state in the Mid-Atlantic (United States), Mid-Atlantic and South Atlantic states, South Atlantic regions of the United States. It borders Maryland to its south and west, Pennsylvania to its north, New Jersey ...
,
Maine Maine ( ) is a U.S. state, state in the New England region of the United States, and the northeasternmost state in the Contiguous United States. It borders New Hampshire to the west, the Gulf of Maine to the southeast, and the Provinces and ...
,
Maryland Maryland ( ) is a U.S. state, state in the Mid-Atlantic (United States), Mid-Atlantic region of the United States. It borders the states of Virginia to its south, West Virginia to its west, Pennsylvania to its north, and Delaware to its east ...
,
Massachusetts Massachusetts ( ; ), officially the Commonwealth of Massachusetts, is a U.S. state, state in the New England region of the Northeastern United States. It borders the Atlantic Ocean and the Gulf of Maine to its east, Connecticut and Rhode ...
,
New Hampshire New Hampshire ( ) is a U.S. state, state in the New England region of the Northeastern United States. It borders Massachusetts to the south, Vermont to the west, Maine and the Gulf of Maine to the east, and the Canadian province of Quebec t ...
,
New Jersey New Jersey is a U.S. state, state located in both the Mid-Atlantic States, Mid-Atlantic and Northeastern United States, Northeastern regions of the United States. Located at the geographic hub of the urban area, heavily urbanized Northeas ...
,
New York New York most commonly refers to: * New York (state), a state in the northeastern United States * New York City, the most populous city in the United States, located in the state of New York New York may also refer to: Places United Kingdom * ...
,
Pennsylvania Pennsylvania, officially the Commonwealth of Pennsylvania, is a U.S. state, state spanning the Mid-Atlantic (United States), Mid-Atlantic, Northeastern United States, Northeastern, Appalachian, and Great Lakes region, Great Lakes regions o ...
,
Rhode Island Rhode Island ( ) is a state in the New England region of the Northeastern United States. It borders Connecticut to its west; Massachusetts to its north and east; and the Atlantic Ocean to its south via Rhode Island Sound and Block Is ...
, and
Vermont Vermont () is a U.S. state, state in the New England region of the Northeastern United States. It borders Massachusetts to the south, New Hampshire to the east, New York (state), New York to the west, and the Provinces and territories of Ca ...
. A Memorandum of Understanding concerning the development of the regional low carbon fuel standard program was signed by the Governors of each State on December 30, 2009, committing the states to an economic analysis of the program, consultation with stakeholders before ruling, and a draft model rule by early 2011.


The Oregon Clean Fuels Program

In 2009, Oregon's legislature authorized the state's Department of Environmental Quality to create a standard with the same essential structure as California's LCFS. DEQ began full implementation of the program starting in 2016. The Oregon Clean Fuels Standard (CFS) explicitly draws on life-cycle greenhouse gas intensity calculations created or approved by the California Air Resources Board for the LCFS. By early 2019, the path of CFS credit prices seemed to suggest some ''de facto'' linkage between the California and Oregon programs. Although Oregon's credit prices have been generally lower, Oregon has experienced a similar upward movement in prices in the 2016-2018 period, in parallel with California credit price increases.


Washington Clean Fuel Standard

The
state of Washington Washington, officially the State of Washington, is a state in the Pacific Northwest region of the United States. It is often referred to as Washington State to distinguish it from the national capital, both named after George Washington ...
is implementing a clean fuel standard which will require carbon intensity of its transportation fuels to 20% below 2017 levels by 2034.


British Columbia Low-Carbon Fuel Requirements

The
Legislative Assembly of British Columbia The Legislative Assembly of British Columbia () is the deliberative assembly of the Legislature of British Columbia, in the province of British Columbia, Canada. The other component of the Legislature is the lieutenant governor of British Columbi ...
,
Canada Canada is a country in North America. Its Provinces and territories of Canada, ten provinces and three territories extend from the Atlantic Ocean to the Pacific Ocean and northward into the Arctic Ocean, making it the world's List of coun ...
, approved in April 2008 the Renewable and Low Carbon Fuel Requirements Act, which mandates fuel suppliers in B.C. to sell gasoline and diesel containing 5% and 4% percent renewable fuels, respectively, by 2010, and allows the provincial government to set thresholds for the
carbon intensity Carbon () is a chemical element; it has symbol C and atomic number 6. It is nonmetallic and tetravalent—meaning that its atoms are able to form up to four covalent bonds due to its valence shell exhibiting 4 electrons. It belongs to grou ...
of fuels, taking into account their entire
carbon footprint A carbon footprint (or greenhouse gas footprint) is a calculated value or index that makes it possible to compare the total amount of greenhouse gases that an activity, product, company or country Greenhouse gas emissions, adds to the atmospher ...
. The RLCFR Act also provides flexibility for regulated fuel suppliers to meet their obligations as they may receive notional transfers of renewable fuels and of attributable greenhouse gas emissions.


Canada Clean fuel regulations

At a national level, Canada is implementing regulations to require liquid fossil fuel providers to reduce the carbon intensity of their fuels to 15% below 2016 levels by the year 2030.


Europe


Existing regulations

The EU has mainly acted to mitigate road transport greenhouse emissions mainly through its voluntary agreement on emissions from cars and subsequently through Regulation 443/2009 which sets mandatory emission limits for new cars. The EU promoted the use of biofuels through the
directive on the promotion of the use of biofuels and other renewable fuels for transport Directive 2003/30/EC was a European Union directive promoting the use of biofuels for EU transport. The directive entered into force in May 2003, and stipulated that national measures must be taken by countries across the EU aiming at replacing ...
(2003/30/EC), also known as Biofuel Directive, which calls for countries across the EU aiming at replacing 5,75% of all transport fossil fuels (
petrol Gasoline (North American English) or petrol ( Commonwealth English) is a petrochemical product characterized as a transparent, yellowish, and flammable liquid normally used as a fuel for spark-ignited internal combustion engines. When formul ...
and
diesel Diesel may refer to: * Diesel engine, an internal combustion engine where ignition is caused by compression * Diesel fuel, a liquid fuel used in diesel engines * Diesel locomotive, a railway locomotive in which the prime mover is a diesel engine ...
) with
biofuel Biofuel is a fuel that is produced over a short time span from Biomass (energy), biomass, rather than by the very slow natural processes involved in the formation of fossil fuels such as oil. Biofuel can be produced from plants or from agricu ...
s by 2010. None of these regulations, however, were based on
carbon intensity Carbon () is a chemical element; it has symbol C and atomic number 6. It is nonmetallic and tetravalent—meaning that its atoms are able to form up to four covalent bonds due to its valence shell exhibiting 4 electrons. It belongs to grou ...
of fuel. Fuel quality standards in the
European Union The European Union (EU) is a supranational union, supranational political union, political and economic union of Member state of the European Union, member states that are Geography of the European Union, located primarily in Europe. The u ...
are regulated by Directive 98/70/EC. Other European countries have their own mandates limiting consumption of conventional
fossil fuel A fossil fuel is a flammable carbon compound- or hydrocarbon-containing material formed naturally in the Earth's crust from the buried remains of prehistoric organisms (animals, plants or microplanktons), a process that occurs within geolog ...
s by substituting to cleaner fuels in order to reduce
greenhouse gas emissions Greenhouse gas (GHG) emissions from human activities intensify the greenhouse effect. This contributes to climate change. Carbon dioxide (), from burning fossil fuels such as coal, petroleum, oil, and natural gas, is the main cause of climate chan ...
, such as the
United Kingdom The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Northwestern Europe, off the coast of European mainland, the continental mainland. It comprises England, Scotlan ...
Renewable Transport Fuel Obligation The Renewable Transport Fuel Obligation (RTFO) in the United Kingdom is a requirement on transport fuel suppliers to ensure that 5 percent of all road vehicle fuel is supplied from sustainable renewable sources by 2010. The Government intends ...
Program (RTFO), requiring transport fuel suppliers to ensure that 5% of all road vehicle fuel comes from sustainable renewable sources by 2010.


UK Renewable Transport Fuel Obligation

The
Renewable Transport Fuel Obligation The Renewable Transport Fuel Obligation (RTFO) in the United Kingdom is a requirement on transport fuel suppliers to ensure that 5 percent of all road vehicle fuel is supplied from sustainable renewable sources by 2010. The Government intends ...
is similar to California's LCFS in some aspects. Biofuel suppliers are required to report on the level of carbon savings and
sustainability Sustainability is a social goal for people to co-exist on Earth over a long period of time. Definitions of this term are disputed and have varied with literature, context, and time. Sustainability usually has three dimensions (or pillars): env ...
of the biofuels they supplied in order to receive Renewable Transport Fuel Certificates (RTFCs). Suppliers have to report on both the net GHG savings and the sustainability of the biofuels they supply according to the appropriate sustainability standards of the feedstocks from which they are produced and any potential indirect impacts of biofuel production, such as indirect land-use change or changes to food and other commodity prices that are beyond the control of individual suppliers. Suppliers that do not submit a report will not be eligible for RTFO certificates. Certificates can be claimed when renewable fuels are supplied and fuel duty is paid on them. At the end of the obligation period, these certificates may be redeemed to the RTFO Administrator to demonstrate compliance. Certificates can be traded, therefore, if obligated suppliers don't have enough certificates at the end of an obligation period they have to 'buy-out' the balance of their obligation by paying a buy-out price. The buy out price will be 15 pence per litre in the first two years.


EU low-carbon fuel standard

On January 31, 2007, the
European Commission The European Commission (EC) is the primary Executive (government), executive arm of the European Union (EU). It operates as a cabinet government, with a number of European Commissioner, members of the Commission (directorial system, informall ...
(EC) proposed new standards for transport fuels to reduce full life cycle emissions by up to 10 percent between 2011 and 2020 This was three weeks after the California LCFS Directive was announced. The EU proposal aimed to encourage the development of low-carbon fuels and biofuels, considering reductions in greenhouse gas emissions caused by the production, transport and use of the suppliers fuels. In December 2008 the
European Parliament The European Parliament (EP) is one of the two legislative bodies of the European Union and one of its seven institutions. Together with the Council of the European Union (known as the Council and informally as the Council of Ministers), it ...
, among other measures to address climate change in the
European Union The European Union (EU) is a supranational union, supranational political union, political and economic union of Member state of the European Union, member states that are Geography of the European Union, located primarily in Europe. The u ...
, approved amendments to the fuel quality directive (98/70) as well as replacing the
Biofuels Directive Directive 2003/30/EC was a European Union directive promoting the use of biofuels for EU transport. The directive entered into force in May 2003, and stipulated that national measures must be taken by countries across the EU aiming at replacing ...
with a Directive on the promotion of Renewable Energy Sources as proposed by the European Commission. The revision of Directive 98/07/EC introduced a mechanism to monitor and reduce greenhouse gas emissions from the use of road transport fuels, requiring fuel suppliers to reduce GHG emissions by up to 10 percent by 2020 on a life cycle basis. Regarding land use changes, the EC was ordered to "develop a concrete methodology to minimise greenhouse gas emissions caused by indirect land use changes." The fuel directive includes provisions to promote sustainable biofuels which minimized the impacts of ILUC. ''For the text referring to ILUC see item 18'' The approved goal of 10 percent reduction in greenhouse gas emissions can be achieved in several ways, and not exclusively from low-carbon fuels: * At least 6% by 31 December 2020, compared to the EU-average level of life cycle greenhouse gas emissions per unit of energy from fossil fuels in 2010, obtained through the use of biofuels, alternative fuels and reductions in flaring and venting at production sites. * A further 2% reduction (subject to a review) obtained through the use of environmentally friendly
carbon capture and storage Carbon capture and storage (CCS) is a process by which carbon dioxide (CO2) from industrial installations is separated before it is released into the atmosphere, then transported to a long-term storage location.IPCC, 2021Annex VII: Glossary at ...
technologies and electric vehicles. * An additional further 2% reduction obtained through the purchase of credits under the
Clean Development Mechanism The Clean Development Mechanism (CDM) is a United Nations-run carbon offset scheme allowing countries to fund greenhouse gas emissions-reducing projects in other countries and claim the saved emissions as part of their own efforts to meet internat ...
of the
Kyoto Protocol The was an international treaty which extended the 1992 United Nations Framework Convention on Climate Change (UNFCCC) that commits state parties to reduce greenhouse gas emissions, based on the scientific consensus that global warming is oc ...
. The commission is continuing development of the EU LCFS, in particular on the methodology for fossil fuel emissions, has recently consulted on various aspects of the implementation and responses have been published. Further work is underway to address Indirect Land Use Change emissions. Two modelling exercises and a model comparison exercise are being carried out to better understand the scale and nature of indirect land use change due to biofuels before the Commission makes proposals to address it. On June 10, 2010, the EC adopted guidelines explaining how the Renewable Energy Directive (RED) should be implemented, as the Directive came into effect in December 2010. Three measures focus on the criteria for sustainability of biofuels and how to control that only sustainable biofuels are used in the EU. First, the commission is encouraging E.U. nations, industry and
NGO A non-governmental organization (NGO) is an independent, typically nonprofit organization that operates outside government control, though it may get a significant percentage of its funding from government or corporate sources. NGOs often focus ...
s to set up voluntary schemes to certify biofuel sustainability. Second, the EC laid down the rules to protect untouched nature, such as forests, wetlands and protected areas, and third, a set of rules to guarantee that biofuels deliver substantial reduction in well-to-wheel
greenhouse gas emissions Greenhouse gas (GHG) emissions from human activities intensify the greenhouse effect. This contributes to climate change. Carbon dioxide (), from burning fossil fuels such as coal, petroleum, oil, and natural gas, is the main cause of climate chan ...
.


Sustainable biofuel certificates

The EC decided to request governments, industry and NGO's to set up voluntary schemes to certify biofuel sustainability for all types of biofuels, including those imported into the EU. According to the EC, the overall majority of biofuels are produced in the EU, and for 2007, only 26% of
biodiesel Biodiesel is a renewable biofuel, a form of diesel fuel, derived from biological sources like vegetable oils, animal fats, or recycled greases, and consisting of long-chain fatty acid esters. It is typically made from fats. The roots of bi ...
and 31% of
bioethanol Ethanol fuel is fuel containing ethyl alcohol, the same type of alcohol as found in alcoholic beverages. It is most often used as a motor fuel, mainly as a biofuel additive for gasoline. Several common ethanol fuel mixtures are in use a ...
consumed in the EU was imported, mainly from
Brazil Brazil, officially the Federative Republic of Brazil, is the largest country in South America. It is the world's List of countries and dependencies by area, fifth-largest country by area and the List of countries and dependencies by population ...
and the
United States The United States of America (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic of 50 U.S. state, states and a federal capital district, Washington, D.C. The 48 ...
. The Commission set standards that must be met for these schemes to gain EU recognition. One of the main criteria is that the certification scheme must be interdependently audited and fraud-resistant. Auditors must check the whole production chain, from the farmer and mill to the filling station ( well-to-wheel life cycle). Auditors must check all the paper and inspect a sample of the farmers, mills and traders, and also whether the land where the feedstock for the ethanol is produced has been indeed farm land before and not a tropical forest or protected area. The certificates are to guarantee that all the biofuels sold under the label are sustainable and produced under the criteria set by the Renewable Energy Directive. Several private certification systems originally designed for sustainability more generally have adapted their standards to qualify for recognition under the Renewable Energy Directive, including the Roundtable on Sustainable Biomaterials and Bonsucro. Environmental groups complained the measures "are too weak to halt a dramatic increase in deforestation." According to
Greenpeace Greenpeace is an independent global campaigning network, founded in Canada in 1971 by a group of Environmental movement, environmental activists. Greenpeace states its goal is to "ensure the ability of the Earth to nurture life in all its biod ...
"
Indirect land use change impacts of biofuels The indirect land use change impacts of biofuels, also known as ILUC or iLUC (pronounced as i-luck), relates to the unintended consequence of releasing more carbon emissions due to land-use changes around the world induced by the expansion of ...
(ILUC) production still are not properly addressed" because if not properly regulated, "ILUC impacts will continue causing major
biodiversity loss Biodiversity loss happens when plant or animal species disappear completely from Earth (extinction) or when there is a decrease or disappearance of species in a specific area. Biodiversity loss means that there is a reduction in Biodiversity, b ...
and more greenhosuse gas emissions." On the other hand, industry representatives welcomed the introduction of a certification system and some dismissed the concerns regarding the lack of criteria about ILUC. UNICA, the Brazilian ethanol producers association welcome the rules more cautiously, as they consider "that gaps in the rules needed to be filled in so the "industry has a clear framework within which to operate". Some other industry organizations also said that further clarification is needed in order to implement the Renewable Energy Directive. The EC clarified that it would publish a report on the impacts of indirect land use by the end of 2010, as requested in the Renewable Energy Directive and on the basis of recently released reports that suggest that biofuels are saving greenhouse gas emissions.


Protecting untouched nature

The rules set by the Commission establish that biofuels should not be made from
feedstock A raw material, also known as a feedstock, unprocessed material, or primary commodity, is a basic material that is used to produce goods, finished goods, energy, or intermediate materials/Intermediate goods that are feedstock for future finishe ...
s from
tropical forest Tropical forests are forested ecoregions with tropical climates – that is, land areas approximately bounded by the Tropic of Cancer, tropics of Cancer and Tropic of Capricorn, Capricorn, but possibly affected by other factors such as prevailing ...
s or recently deforested areas, drained
peatland A peatland is a type of wetland whose soils consist of Soil organic matter, organic matter from decaying plants, forming layers of peat. Peatlands arise because of incomplete decomposition of organic matter, usually litter from vegetation, du ...
,
wetland A wetland is a distinct semi-aquatic ecosystem whose groundcovers are flooded or saturated in water, either permanently, for years or decades, or only seasonally. Flooding results in oxygen-poor ( anoxic) processes taking place, especially ...
or highly
biodiverse Biodiversity is the variability of life on Earth. It can be measured on various levels. There is for example genetic variability, species diversity, ecosystem diversity and phylogenetic diversity. Diversity is not distributed evenly on Earth ...
areas. The corresponding Communication explains how this should be assessed and as an example, it makes it clear that the conversion of a forest to a
palm oil Palm oil is an edible vegetable oil derived from the mesocarp (reddish pulp) of the fruit of oil palms. The oil is used in food manufacturing, in beauty products, and as biofuel. Palm oil accounted for about 36% of global oils produced from o ...
plantation would not meet the sustainability requirements.


Promote only biofuels with high greenhouse gas savings

The Commission reiterated that Member States have to meet binding, national targets for renewable energy and that only those biofuels with high
greenhouse gas emission Greenhouse gas (GHG) emissions from human activities intensify the greenhouse effect. This contributes to climate change. Carbon dioxide (), from burning fossil fuels such as coal, petroleum, oil, and natural gas, is the main cause of climate chan ...
savings count for the national targets. The corresponding Communication explains how to make the calculation, which not only includes
carbon dioxide Carbon dioxide is a chemical compound with the chemical formula . It is made up of molecules that each have one carbon atom covalent bond, covalently double bonded to two oxygen atoms. It is found in a gas state at room temperature and at norma ...
(CO2), but also
methane Methane ( , ) is a chemical compound with the chemical formula (one carbon atom bonded to four hydrogen atoms). It is a group-14 hydride, the simplest alkane, and the main constituent of natural gas. The abundance of methane on Earth makes ...
(CH4) and
nitrous oxide Nitrous oxide (dinitrogen oxide or dinitrogen monoxide), commonly known as laughing gas, nitrous, or factitious air, among others, is a chemical compound, an Nitrogen oxide, oxide of nitrogen with the Chemical formula, formula . At room te ...
(N2O), both stronger greenhouse gases than CO2. Biofuels must deliver greenhouse gas savings of at least 35% compared to
fossil fuel A fossil fuel is a flammable carbon compound- or hydrocarbon-containing material formed naturally in the Earth's crust from the buried remains of prehistoric organisms (animals, plants or microplanktons), a process that occurs within geolog ...
s, rising to 50% in 2017 and to 60%, for biofuels from new plants, in 2018.


See also

*
California Air Resources Board The California Air Resources Board (CARB or ARB) is an agency of the government of California that aims to reduce air pollution. Established in 1967 when then-governor Ronald Reagan signed the Mulford-Carrell Act, combining the Bureau of Air S ...
*
Carbon emissions reporting Carbon () is a chemical element; it has symbol C and atomic number 6. It is nonmetallic and tetravalent—meaning that its atoms are able to form up to four covalent bonds due to its valence shell exhibiting 4 electrons. It belongs to gro ...
*
Emission standard Emission standards are the legal requirements governing air pollutants released into the atmosphere. Emission standards set quantitative limits on the permissible amount of specific air pollutants that may be released from specific sources ov ...
*
Emissions trading Emissions trading is a market-oriented approach to controlling pollution by providing economic incentives for reducing the emissions of pollutants. The concept is also known as cap and trade (CAT) or emissions trading scheme (ETS). One prominen ...
*
Global Warming Solutions Act of 2006 The Global Warming Solutions Act of 2006, or Assembly Bill (AB) 32, is a California state law that fights global warming by establishing a comprehensive program to reduce greenhouse gas emissions from all sources throughout the state. AB32 was c ...
*
Indirect land use change impacts of biofuels The indirect land use change impacts of biofuels, also known as ILUC or iLUC (pronounced as i-luck), relates to the unintended consequence of releasing more carbon emissions due to land-use changes around the world induced by the expansion of ...
*
Low-carbon economy A low-carbon economy (LCE) is an economy which absorbs as much greenhouse gas as it emits. Greenhouse gas (GHG) emissions due to human activity are the dominant cause of observed climate change since the mid-20th century. There are many proven ...
*
Renewable transport fuel obligation The Renewable Transport Fuel Obligation (RTFO) in the United Kingdom is a requirement on transport fuel suppliers to ensure that 5 percent of all road vehicle fuel is supplied from sustainable renewable sources by 2010. The Government intends ...
*
Sustainable transport Sustainable transport is transportation sustainability, sustainable in terms of their social and Environmental issue, environmental impacts. Components for evaluating sustainability include the particular vehicles used; the source of energy; and ...
* Zero emissions vehicle


References


External links


CARB's website for the Low-Carbon Fuel Standard ProgramCARB: Proposed Regulation to Implement the Low Carbon Fuel Standard
(approved April 23, 2009)
European Parliament "Monitoring and reduction of greenhouse gas emissions from fuels (road transport and inland waterway vessels"
approved December 17, 2008)
Draft bill of the ‘‘American Clean Energy and Security Act of 2009’’EPA's Renewable Fuel Standard Program (RFS2): Regulatory Impact Analysis for RFS2 (February 2010)Text of the National Low-Carbon Fuel Standard Act of 2007
presented by
Barack Obama Barack Hussein Obama II (born August 4, 1961) is an American politician who was the 44th president of the United States from 2009 to 2017. A member of the Democratic Party, he was the first African American president in American history. O ...
(This bill never became law).
Text of the Advanced Clean Fuels Act of 2007
(This bill never became law)
DfT home site for the Renewable Transport Fuel Obligation (RTFO)Roundtable on Sustainable Biomaterials profile on database of market governance mechanisms

Status Review of California's Low Carbon Fuel Standard - July 2014
Institute of Transportation Studies The Institute of Transportation Studies (ITS) at the University of California's Berkeley, Davis, Irvine, and Los Angeles campuses are centers for research, education, and scholarship in the fields of transportation planning and engineering. Facul ...
(ITS),
University of California, Davis The University of California, Davis (UC Davis, UCD, or Davis) is a Public university, public Land-grant university, land-grant research university in Davis, California, United States. It is the northernmost of the ten campuses of the University ...
.
Bonsucro profile on database of market governance mechanismsLCFS Credit Price Tracking
(The Jacobsen Pricing Benchmark) {{DEFAULTSORT:Low-Carbon Fuel Standard Emission standards Low-carbon economy Fuels