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Earlier this month, the California Air Resources Board (CARB) updated the state’s Low Carbon Fuel Standard (LCFS), which focuses on reducing air pollution and greenhouse gases (GHGs) with a declining carbon intensity target for transportation fuels used in the state. Carbon intensity refers to the amount of GHG emissions per unit of some activity or output—transportation, in this specific case.
With the new, lower standard, CARB wants to increase cleaner fuel and transportation options for consumers; accelerate the deployment of a zero-emission infrastructure; and ensure that California meets legislatively-mandated air quality and climate targets.
“The LCFS reduces air pollution and greenhouse gas emissions by setting a declining carbon intensity target for transportation fuels used in California; producers that don’t meet established benchmarks buy credits from those that do,” CARB explains in a press release. “This system has generated $4 billion in annual private sector investment toward a cleaner transportation sector.”
CARB says that the LCFS has been “very effective to date,” and that it has helped reduce the carbon intensity of California’s fuel mix by almost 13% and displaced 70% of the diesel used in the state with cleaner alternatives—to the tune of about 320 million metric tons of carbon dioxide (CO2) that were being emitted by gasoline and diesel engines.
“The proposal approved today strikes a balance between reducing the environmental and health impacts of transportation fuel used in California and ensuring that low-carbon options are available as the state continues to work toward a zero-emissions future,” said CARB Chair Liane Randolph. “Today’s approval increases consumer options beyond petroleum, provides a roadmap for cleaner air, and leverages private sector investment and federal incentives to spur innovation to address climate change and pollution.”
Just the Facts
In a fact sheet on the LCFS program, CARB highlights some of the program’s key goals, which include:
- In health cost savings, Californians are expected to save almost $5 billion by avoiding the impacts of pollution.
- Californians will be saving 42% in fuel costs per mile, paying $0.12 per mile traveled—translating to savings of over $20 billion in fuel expenditures every year.
- For the light-duty sector, the savings will be even more pronounced, with costs going from $0.19 per mile to $0.08 per mile by 2045, a reduction of over 50%.
- $300 million has gone to support more public transit projects and nearly $1 billion has gone towards light duty zero emission vehicles (ZEVs).
- LCFS has displaced fossil diesel with cleaner fuels for over 70% of the demand in the state.
- Moving forward, it is expected to “supercharge investment in clean fuels and infrastructure into the billions,” CARB adds.
CARB says the state has also taken action to hold oil refiners accountable for gas price spikes and increase transparency, with more tools to ensure that refiners maintain supplies to help avoid increased costs on consumers.
A Mixed Bag
Not everyone is onboard with this new lower carbon fuel standard. CalMatters reports that environmentalists and consumer advocates both oppose the new rules and warn that the changes will boost alternative fuels while also allowing oil companies to stay in business (because they can buy credits or switch to producing those fuels).
However, electric vehicle (EV) advocates and some biofuel companies support the new rules, saying they will “provide billions of dollars in funds and incentives to move California toward eliminating carbon that warms the planet.”
