California adopts low-carbon fuel rules

California has adopted new low-carbon fuel rules that aim to cut vehicle emissions across the state by 10 per cent over the next 10 years and deliver 16 million tonnes of greenhouse gas emission reductions by 2020.

The state's Air Resources Board (ARB) formally adopted Governor Schwarzenegger's Low Carbon Fuel Standard last Thursday, two years after he signed an executive order calling for the regulation.

It is designed to diversify the types of fuel used in the state's transportation sector, which currently contribute around 40 per cent of California's total carbon emissions, as well as increase the roll out of biofuels, electric-charging stations and hydrogen-fuelling stations.

The rules are based on a credit system that assigns more credits to lower-carbon fuels, and fewer credits to higher-carbon alternatives. Fuels are assessed on their carbon intensity - the amount of carbon emitted during the fuel's production and usage - and the efficiency of the vehicle in which they are used.

Under the regulation, providers, refiners, importers and blenders must provide fuels with an average declining standard of "carbon intensity", effectively forcing them to invest in low-carbon fuels.

The assessments for different 'fuel pathways' have been calculated by the board, and will be published in a table that can be used by fuel producers and importers.

"The new standard means we can begin to break our century-old dependence on petroleum and provide California with greater energy security," said ARB chairman Mary D. Nichols. "The drive to force the market towards greater use of alternative fuels will be a boon to the state's economy and public health - it reduces air pollution, creates new jobs and continues California's leadership in the fight against global warming."

The regulation technically comes into effect next year, but the first year will be a "break-in" reporting year. As well as carbon dioxide, emissions of other greenhouse gases including nitrous oxide and methane can be included under certain circumstances.

The state is still awaiting a decision on the Environmental Protection Agency's (EPA) reconsideration of its waiver denial. In March last year, the agency denied the state the right to waive federal fuel emissions standards in favour of more stringent standards on vehicle fuel efficiency.

However, president Obama signed a Presidential Memorandum asking the EPA to reconsider the waiver earlier this year, and it held a hearing on March 5 to discuss the issue.