The Low Carbon Fuel Standard: A Climate Policy Solution for Transportation

On June 5, 2007, the Environmental and Energy Study Institute (EESI) and the California Institute for Federal Policy Research held a Congressional briefing on low carbon fuel standard policies and a draft policy report developed by the University of California in response to California's Executive Order S-1-07. Future transportation energy policy must simultaneously address the challenges of energy security AND global warming. The Low Carbon Fuel Standard (LCFS) is a transportation sector-specific policy which seeks to provide industry with the appropriate structure and incentives to reduce greenhouse gas emissions at the lowest cost and fastest pace by harnessing market competition and preserving consumer choice.

Since its original introduction in California as the first early action item under California's Global Warming Solutions Act (AB32), the LCFS has received significant national and international support this year as detailed below:

A distinguished panel discussed the draft LCFS policy report, entitled A Low-Carbon Fuel Standard for California, and the primary motivations, implementation issues, and compliance strategies associated with a Low Carbon Fuel Standard for California and the nation. The panel will be moderated by Anthony Eggert, Energy Policy Advisor, University of California.

The LCFS policy report was funded by the Energy Foundation. Recent drafts of the LCFS policy report and related documents can be found on the website of the California Energy Commission.

• January 16: Senators Sanders(I-VT) and Boxer (D-CA) introduced legislation incorporating a Low Carbon Fuel Standard (S.309).
• January 31: the European Commission proposed a European LCFS.
• February 21: Senator McCain (R-AZ) endorsed a national LCFS.
• March 30: Senators Collins (R-ME), Feinstein (D-CA) and Snowe (R-ME) introduced legislation to enact a National Low Carbon Fuel Standard (S. 1073).
• May 3: Senators Boxer, Collins and Lieberman (I-CT) introduced legislation incorporating a Low Carbon Fuel Standard (S. 1297).
• May 8: Rep. Inslee (D-WA) introduced a Federal Low Carbon Fuels Act (H.R. 2215).
• May 8: Senators Obama (D-IL) and Harkin (D-IA) introduced legislation to enact a National Low Carbon Fuel Standard (S. 1324)

In the Technical Discussion Session, Alex Farrell, UC Berkeley Professor and Co-Director of Report A Low-Carbon Fuel Standard for California presented the technical details and challenges of implementing an LCFS. This was followed by a Q&A session with the audience.