East Coast states announce plan for vehicle emission standards

Pressure on the beleaguered US auto industry to deliver cleaner and more fuel efficient vehicles stepped up another notch yesterday with the news that the 10 states behind the Regional Greenhouse Gas Initiative (RGGI) have begun working on a new low carbon fuel standard designed to bolster demand for green vehicles.

Fresh from the successful launch last year of the first US cap-and-trade scheme, the RGGI states have joined with Pennsylvania and are planning to deliver a new low carbon fuel standard by the end of the year.

The standard would likely mirror that already proposed by California and is expected to require refiners to reduce the carbon footprint of their petrol or diesel. It could also attempt to guarantee a market for low carbon vehicles by setting targets for the use of biofuels, hydrogen cars and electric vehicles.

"Working together, the 11 states from Maine to Delaware will cut greenhouse gas emissions from cars and trucks, spur the development of clean energy technologies like advanced biofuels and electric cars, and reduce our dependence on petroleum," Massachusetts Secretary of Energy and Environmental Affairs Ian Bowles said in a statement.

The move was welcomed by California governor Arnold Schwarzenegger who is working on similar plans for a low carbon fuel standard that would require a 10 per cent cut in vehicle emissions by 2020.

"Like California, these other states are leading the way in recognising that we must take action now to fight global warming," he said.

The Bush administration has maintained that the states should adhere to less demanding national emission standards and has been locked in a legal tussle with California over its plans.

But supporters of the proposed standards are confident that the election of Barack Obama, a vocal supporter of emission reduction targets, will allow both the west and east coast standards to be adopted.