Fuel Industry Incites Fear of CA's Low Carbon Fuel Standard

"You think 50 cents in one week is bad - wait till the state adopts the Low Carbon Fuel Standard", warns one critic, predicting increases three times as much. The regulation was devised by the CA Air Resources Board to reduce greenhouse gas emissions

2 minute read

October 16, 2012, 1:00 PM PDT

By Irvin Dawid


Energy reporter David Baker writes on the business opposition facing California's Low Carbon Fuel Standard (LCFS) "which is designed to cut the greenhouse gas emissions that come from making and burning fuel. Created in 2007, the standard forces fuel producers to lower the "carbon intensity" of their products 10 percent by 2020."

The regulation is under appeal by the Air Resources Board after being blocked by a federal judge on December 29, 2011 because "the policy interfered with interstate commerce and favored California biofuel producers over their Midwestern competitors The U.S. Ninth Circuit Court of Appeals will hear arguments on the case on Oct. 16."

The LCFS stems from California's landmark climate change law, AB 32, that industry attempted to retract with Proposition 23 in 2010, and former Governor Arnold Schwarzenegger's Executive Order S-01-07.

The regulation was blocked because the judge ruled that "the policy interfered with interstate commerce and favored California biofuel producers over their Midwestern competitors. The California Air Resources Board challenged the ruling, and the U.S. Ninth Circuit Court of Appeals will hear arguments on the case on Oct. 16."

"The fuel price increases are going to make last week look like nothing," warned Robert Sturtz, chairman of Fueling California, a coalition of companies that buy large amounts of fuel.

"You'll be writing articles not about 50-cent increases in a week, but $1.50 increases in a week," he said. "That's what we're trying to avoid."

"It's the consensus of the (fuel) industry that this is going to be a train wreck," said Jay McKeeman, vice president of government relations at the California Independent Oil Marketers Association."

Taking aim at those assertions is the Environmental Defense Fund nonprofit group.

"A policy like this, that's aimed at diversifying the fuel mix, can help shield against those price swings," said Timothy O'Connor, director of the California Climate Initiative at EDF.

As the Low Carbon Fuel Standard Video on the ARB webpage indicates, "California relies on petroleum fuels for 96% of its transportation needs". The LCFS is designed to lower that percentage as well as reduce the "40% of the state's greenhouse gas emissions that come from the state's 30 million vehicles."

Saturday, October 13, 2012 in San Francisco Chronicle

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Close-up of "Apartment for rent" sign in red text on black background in front of blurred building

Trump Administration Could Effectively End Housing Voucher Program

Federal officials are eyeing major cuts to the Section 8 program that helps millions of low-income households pay rent.

April 21, 2025 - Housing Wire

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

April 30, 2025 - Diana Ionescu

Ken Jennings stands in front of Snohomish County Community Transit bus.

Ken Jennings Launches Transit Web Series

The Jeopardy champ wants you to ride public transit.

April 20, 2025 - Streetsblog USA

Close-up of white panel at top of school bus with "100% electric" black text.

Driving Equity and Clean Air: California Invests in Greener School Transportation

California has awarded $500 million to fund 1,000 zero-emission school buses and chargers for educational agencies as part of its effort to reduce pollution, improve student health, and accelerate the transition to clean transportation.

April 30 - California Air Resources Board

Aerial view of Freeway Park cap park over I-5 interstate freeway in Seattle, Washington at night.

Congress Moves to End Reconnecting Communities and Related Grants

The House Transportation and Infrastructure Committee moved to rescind funding for the Neighborhood Equity and Access program, which funds highway removals, freeway caps, transit projects, pedestrian infrastructure, and more.

April 30 - Streetsblog USA

"No Thru Traffic - Open Streets Restaurants" sign in New York City during Covid-19 pandemic.

From Throughway to Public Space: Taking Back the American Street

How the Covid-19 pandemic taught us new ways to reclaim city streets from cars.

April 30 - Next City