Low-carbon fuel standard
Encyclopedia
A low-carbon fuel standard (LCFS) is a rule enacted to reduce carbon intensity in transportation fuels as compared to conventional petroleum fuels, such as gasoline
Gasoline
Gasoline , or petrol , is a toxic, translucent, petroleum-derived liquid that is primarily used as a fuel in internal combustion engines. It consists mostly of organic compounds obtained by the fractional distillation of petroleum, enhanced with a variety of additives. Some gasolines also contain...

 and diesel. The most common low-carbon fuels are alternative fuel
Alternative fuel
Alternative fuels, known as non-conventional or advanced fuels, are any materials or substances that can be used as fuels, other than conventional fuels...

s and cleaner fossil fuel
Fossil fuel
Fossil fuels are fuels formed by natural processes such as anaerobic decomposition of buried dead organisms. The age of the organisms and their resulting fossil fuels is typically millions of years, and sometimes exceeds 650 million years...

s, such as natural gas
Natural gas
Natural gas is a naturally occurring gas mixture consisting primarily of methane, typically with 0–20% higher hydrocarbons . It is found associated with other hydrocarbon fuel, in coal beds, as methane clathrates, and is an important fuel source and a major feedstock for fertilizers.Most natural...

 (CNG
Compressed natural gas
Compressed natural gas is a fossil fuel substitute for gasoline , diesel, or propane/LPG. Although its combustion does produce greenhouse gases, it is a more environmentally clean alternative to those fuels, and it is much safer than other fuels in the event of a spill...

 and LPG). The main purpose of a low-carbon fuel standard is to decrease carbon dioxide
Carbon dioxide
Carbon dioxide is a naturally occurring chemical compound composed of two oxygen atoms covalently bonded to a single carbon atom...

 emissions associated to fuel-powered vehicles considering the entire life cycle
Life cycle assessment
A life-cycle assessment is a technique to assess environmental impacts associated with all the stages of a product's life from-cradle-to-grave A life-cycle assessment (LCA, also known as life-cycle analysis, ecobalance, and cradle-to-grave analysis) is a technique to assess environmental impacts...

 ("well to wheels"), in order to reduce the carbon footprint
Carbon footprint
A carbon footprint has historically been defined as "the total set of greenhouse gas emissions caused by an organization, event, product or person.". However, calculating a carbon footprint which conforms to this definition is often impracticable due to the large amount of data required, which is...

 of transportation.

The first low-carbon fuel standard mandate in the world was enacted by California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...

 in 2007, with specific eligibility criteria defined by the California Air Resources Board
California Air Resources Board
The California Air Resources Board, also known as CARB or ARB, is the "clean air agency" in the government of California. Established in 1967 in the Mulford-Carrell Act, combining the Bureau of Air Sanitation and the Motor Vehicle Pollution Control Board, CARB is a department within the...

 (CARB) in April 2009 but taking effect until January 2011. Similar legislation was approved in British Columbia
British Columbia
British Columbia is the westernmost of Canada's provinces and is known for its natural beauty, as reflected in its Latin motto, Splendor sine occasu . Its name was chosen by Queen Victoria in 1858...

 in April 2008, and by European Union
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...

 which proposed its legislation in January 2007 and which was adopted in December 2008. The United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...

 is implementing its Renewable Transport Fuel Obligation
Renewable Transport Fuel Obligation
The Renewable Transport Fuel Obligation in the United Kingdom is a requirement on transport fuel suppliers to ensure that 5 percent of all road vehicle fuel is supplied is from sustainable renewable sources by 2010...

 Program, which also applies the concept of low-carbon fuels.

Several bills have been proposed in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

 for similar low-carbon fuel regulation at a national level but with less stringent standards than California. As of early 2010 none has been approved. The U.S. Environmental Protection Agency (EPA) issued its final rule regarding the expanded Renewable Fuel Standard  (RFS2) for 2010 and beyond on February 3, 2010. This ruling, as mandated by the Energy Independence and Security Act of 2007
Energy Independence and Security Act of 2007
The Energy Independence and Security Act of 2007 is an Act of Congress concerning the energy policy of the United States...

 (EISA), included direct emissions and significant indirect emissions from land use changes.

California Low-Carbon Fuel Standard

Californian Governor Arnold Schwarzenegger
Arnold Schwarzenegger
Arnold Alois Schwarzenegger is an Austrian-American former professional bodybuilder, actor, businessman, investor, and politician. Schwarzenegger served as the 38th Governor of California from 2003 until 2011....

 issued Executive Order S-1-07 on January 19, 2007 to enact a low-carbon fuel standard (LCFS). The LCFS requires oil refineries
Oil refinery
An oil refinery or petroleum refinery is an industrial process plant where crude oil is processed and refined into more useful petroleum products, such as gasoline, diesel fuel, asphalt base, heating oil, kerosene, and liquefied petroleum gas...

 and distributors to ensure that the mix of fuel they sell in the Californian market meets the established declining targets for greenhouse gas
Greenhouse gas
A greenhouse gas is a gas in an atmosphere that absorbs and emits radiation within the thermal infrared range. This process is the fundamental cause of the greenhouse effect. The primary greenhouse gases in the Earth's atmosphere are water vapor, carbon dioxide, methane, nitrous oxide, and ozone...

 (GHG) emissions measured in CO2-equivalent
Carbon dioxide equivalent
Carbon dioxide equivalent and Equivalent carbon dioxide are two related but distinct measures for describing how much global warming a given type and amount of greenhouse gas may cause, using the functionally equivalent amount or concentration of carbon dioxide as the reference.- Global warming...

 gram
Gram
The gram is a metric system unit of mass....

s per unit of fuel energy sold for transport purposes. The LCFS directive calls for a reduction of at least 10 percent in the carbon intensity of California's transportation fuels by 2020. These reductions include not only tailpipe emissions but also all other associated emissions from production, distribution and use of transport fuels within the state. Therefore, California LCFS considers the fuel's full life cycle
Life cycle assessment
A life-cycle assessment is a technique to assess environmental impacts associated with all the stages of a product's life from-cradle-to-grave A life-cycle assessment (LCA, also known as life-cycle analysis, ecobalance, and cradle-to-grave analysis) is a technique to assess environmental impacts...

, also known as the "well to wheels" or "seed to wheels" efficiency of transport fuels. The standard is also aimed to reduce the state’s dependence on petroleum, create a market for clean transportation technology, and stimulate the production and use of alternative, low-carbon fuels in California.

The LCFS is a mix of command-and-control regulation and emissions trading
Emissions trading
Emissions trading is a market-based approach used to control pollution by providing economic incentives for achieving reductions in the emissions of pollutants....

, as it will use market-based mechanisms that allow providers to choose how they will reduce emissions while responding to consumer demand. Some believe that oil companies could opt for several actions to comply. For example, they state that refiners and producers could improve the efficiency of the refineries and upstream production, or may purchase and blend more low-carbon ethanol into gasoline products, or purchase credits from electric utilities supplying low carbon electrons to electric passenger vehicles, or diversifying and selling low carbon hydrogen for use by vehicles as a product, or any new strategy as the standard is being designed. The Global Warming Solutions Act of 2006
Global Warming Solutions Act of 2006
The Global Warming Solutions Act of 2006, or Assembly Bill 32, is a California State Law that fights climate change by establishing a comprehensive program to reduce greenhouse gas emissions from all sources throughout the state...

 authorized the establishment of emissions trading in California, with rules to be adopted by 2010, and taking effect no later than January 2012.

Regulatory proceedings

In accordance to the Global Warming Solutions Act of 2006
Global Warming Solutions Act of 2006
The Global Warming Solutions Act of 2006, or Assembly Bill 32, is a California State Law that fights climate change by establishing a comprehensive program to reduce greenhouse gas emissions from all sources throughout the state...

 and the Governor's Directive, the California Air Resources Board
California Air Resources Board
The California Air Resources Board, also known as CARB or ARB, is the "clean air agency" in the government of California. Established in 1967 in the Mulford-Carrell Act, combining the Bureau of Air Sanitation and the Motor Vehicle Pollution Control Board, CARB is a department within the...

 is the agency responsible for developing the "Low-Carbon Fuel Standard Program", and it was directed to initiate the regulatory proceedings to establish and implement the LCFS." CARB identified the LCFS as an early action item with a regulation to be adopted and implemented by 2010. Also Executive Order S-1-07 ordered the California Environmental Protection Agency
California Environmental Protection Agency
The California Environmental Protection Agency is a state cabinet-level agency within the government of California. Cal/EPA is composed of six departments, boards and offices responsible for environmental research, regulating and administering the state's environmental protection programs, and...

 to coordinate activities between the University of California
University of California
The University of California is a public university system in the U.S. state of California. Under the California Master Plan for Higher Education, the University of California is a part of the state's three-tier public higher education system, which also includes the California State University...

, the California Energy Commission
California Energy Commission
The California Energy Commission is California’s primary energy policy and planning agency. Created in 1974 and headquartered in Sacramento, the Commission has responsibility for activities that include forecasting future energy needs, promoting energy efficiency through appliance and building...

 and other state agencies to develop and propose a draft compliance schedule to meet the 2020 target.

As mandated by the Executive Order, a University of California team, led by Daniel Sperling (UC Davis) and the late Alexander E. Farrell (UC Berkeley), developed two reports that established the technical feasibility of an LCFS, proposed the methodology to calculate the full life cycle GHG emissions from all fuels sold in the state, identified technical and policy issues, and provided a number of specific recommendations, thus providing an initial framework for the development of CARB's LCFS. This study was presented by Governor Schwarzenegger in May 2007 and they were the backbone of CARB's initial efforts to develop the LCFS, even though not all of the specific recommendations were incorporated in the final LCFS staff's proposed regulation.

Public consultation process

During 2008 and until the April 2009 LCFS ruling, CARB published in its website all technical reports prepared by its staff and collaborators regarding the definition and calculations related to the proposed LCFS regulation, conducted 16 public workshops, and also submitted its studies for external peer review. Before the April 23, 2009 ruling, the Board held a 45-day public hearing that received 229 comments, 21 of which were presented during the Board Hearing.

Controversy about indirect land use impacts

Among relevant and controversial comments submitted to CARB as public letters, on June 24, 2008, a group of 27 scientists and researchers from a number of universities and national laboratories, expressed their concerns arguing that there "is not enough hard empirical data to base any sound policy regulation in regards to the indirect impacts of renewable biofuels production. The field is relative new, especially when compared to the vast knowledge base present in fossil fuel production, and the limited analyses are driven by assumptions that sometimes lack robust empirical validation." With a similar opposing position, on October 23, 2008, a letter submitted to CARB by the New Fuels Alliance, representing more than two-dozen advanced biofuel companies, researchers and investors, questioned the Board intention to include indirect land use change (ILUC). In another public letter just before the ruling meeting, more than 170 scientists and economists sent a letter to CARB, urging it to account for GHG emissions from indirect land use change for biofuels and all other transportation fuels. They argued that "...there are uncertainties inherent in estimating the magnitude of indirect land use emissions from biofuels, but assigning a value of zero is clearly not supported by the science."

2009 Ruling

On April 23, 2009, CARB approved the specific rules and carbon intensity reference values for the LCFS that will go into effect on January 1, 2011. The technical proposal was approved without modifications by a 9-1 vote, to set the 2020 maximum carbon intensity reference value for gasoline to 86 grams of carbon dioxide equivalent
Carbon dioxide equivalent
Carbon dioxide equivalent and Equivalent carbon dioxide are two related but distinct measures for describing how much global warming a given type and amount of greenhouse gas may cause, using the functionally equivalent amount or concentration of carbon dioxide as the reference.- Global warming...

 released per megajoule of energy produced. One standard was established for gasoline and the alternative fuels that can replace it, and a second similar standard is set for diesel fuel and its replacements. The regulation is based on an average declining standard of carbon intensity that is expected to achieve 16 million metric tons of greenhouse gas emission reductions by 2020. CARB expects the new generation of fuels to come from the development of technology that uses cellulosic ethanol
Cellulosic ethanol
Cellulosic ethanol is a biofuel produced from wood, grasses, or the non-edible parts of plants.It is a type of biofuel produced from lignocellulose, a structural material that comprises much of the mass of plants. Lignocellulose is composed mainly of cellulose, hemicellulose and lignin...

 from algae
Algae
Algae are a large and diverse group of simple, typically autotrophic organisms, ranging from unicellular to multicellular forms, such as the giant kelps that grow to 65 meters in length. They are photosynthetic like plants, and "simple" because their tissues are not organized into the many...

, wood, agricultural waste such as straw
Straw
Straw is an agricultural by-product, the dry stalks of cereal plants, after the grain and chaff have been removed. Straw makes up about half of the yield of cereal crops such as barley, oats, rice, rye and wheat. It has many uses, including fuel, livestock bedding and fodder, thatching and...

 and switchgrass
Switchgrass
Panicum virgatum, commonly known as switchgrass, is a perennial warm season bunchgrass native to North America, where it occurs naturally from 55°N latitude in Canada southwards into the United States and Mexico...

, and also natural gas
Natural gas
Natural gas is a naturally occurring gas mixture consisting primarily of methane, typically with 0–20% higher hydrocarbons . It is found associated with other hydrocarbon fuel, in coal beds, as methane clathrates, and is an important fuel source and a major feedstock for fertilizers.Most natural...

 from municipal solid waste. They also expect the standard to drive the availability of plug-in hybrid, battery electric
Electric car
An electric car is an automobile which is propelled by electric motor, using electrical energy stored in batteries or another energy storage device. Electric cars were popular in the late-19th century and early 20th century, until advances in internal combustion engine technology and mass...

 and fuel-cell powered cars while promoting investment in infrastructure for electric charging stations and hydrogen fueling stations.

The ruling is controversial. Representatives of the US ethanol industry complained that this rule overstates the environmental effects of corn ethanol, and also criticized the inclusion of indirect effects of land-use changes
Indirect land use change impacts of biofuels
The indirect land use change impacts of biofuels, also known as ILUC, relates to the unintended consequence of releasing more carbon emissions due to land-use changes around the world induced by the expansion of croplands for ethanol or biodiesel production in response to the increased global...

 as an unfair penalty to home-made corn ethanol because deforestation in the developing world is being tied to US ethanol production. The initial reference value set for 2011 for LCFS means that Mid-west corn ethanol
Ethanol fuel in the United States
The United States became the world's largest producer of ethanol fuel in 2005. The U.S. produced 13.2 billion U.S. liquid gallons of ethanol fuel in 2010, and together with Brazil, accounted for 88% of that year's global production...

 will not meet the California standard unless current carbon intensity is reduced. Oil industry representatives complained that there is a cost associated to the new standard, as the LCFS will limit the use of corn ethanol blended in gasoline, thus leaving oil refiners with few available and viable options, such as sugarcane ethanol from Brazil, but this option means paying costly U.S. import tariffs. CARB officials and environmentalists reject such scenario because they think there will be plenty of time and economic incentive to developed inexpensive biofuels, hydrogen-based fuels, even ethanol from such cellulosic materials, or new ways to make ethanol out of corn with a smaller carbon footprint.

Brazil
Brazil
Brazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people...

ian ethanol producers (UNICA
UNICA
UNICA may refer to:* Institutional Network of the Universities from the Capitals of Europe* Union Internationale du Cinéma* University of Ciego de Ávila, a university in Ciego de Ávila, Cuba...

), though they welcomed the ruling as they consider their sugarcane ethanol have passed a critical test and expect their biofuel to enter the California market in the future, UNICA also urged CARB to update the data and assumptions used, which according to them, is excessively penalizing their ethanol and is not reflecting the technology and agricultural practices currently in use in Brazil. UNICA disagreed with the assertion that indirect land-use changes can be accurately calculated with the current methodologies. Canadian officials also complained the standard could become an entry barrier to their Alberta
Alberta
Alberta is a province of Canada. It had an estimated population of 3.7 million in 2010 making it the most populous of Canada's three prairie provinces...

 oil sands, as producers will have to significantly reduce their emissions or purchase expensive credits from alternative energy producers in order for their non-conventional oil to be sold in California. They complained that the measure could be discriminating against Canadian oil sands crude as a high carbon intensity crude oil, while other heavy crude oil
Heavy crude oil
Heavy crude oil or extra heavy crude oil is any type of crude oil which does not flow easily. It is referred to as "heavy" because its density or specific gravity is higher than that of light crude oil. Heavy crude oil has been defined as any liquid petroleum with an API gravity less than 20°.Extra...

s from other sources were not evaluated by CARB's studies.

The only Board member who voted against the ruling explained that he had "hard time accepting the fact that we’re going to ignore the comments of 125 scientists", referring to the letter submitted by a group of scientists questioning the indirect land use change penalty. "They said the model was not good enough... to use at this time as a component part of such an historic new standard." CARB adopted only one main amendment to the staff proposal to bolster the standard review process, moving up the expected date of an expert working group to report on indirect land use change from January 2012 to January 2011. This change is expected to provide for a thoroughly review of the specific penalty for indirect land use change and correct it if possible. The CARB staff is also expected to report back to the Board on indirect impacts of other fuel pathways before the commencement of the standard in 2011.

Fuels were rated based on their carbon intensity, estimated in terms of the quantity of grams of carbon dioxide equivalent released for every megajoule of energy produced for their full life cycle
Life cycle assessment
A life-cycle assessment is a technique to assess environmental impacts associated with all the stages of a product's life from-cradle-to-grave A life-cycle assessment (LCA, also known as life-cycle analysis, ecobalance, and cradle-to-grave analysis) is a technique to assess environmental impacts...

, also referred to as the fuel pathway. Carbon intensity was estimated considering the direct carbon footprint for each fuel, and for biofuels the indirect land-use effects were also included. The resulting intensities for the main biofuels readily available are the following:
California carbon intensity values for gasoline and fuels that substitute for gasoline
(gram
Gram
The gram is a metric system unit of mass....

s of carbon dioxide equivalent
Carbon dioxide equivalent
Carbon dioxide equivalent and Equivalent carbon dioxide are two related but distinct measures for describing how much global warming a given type and amount of greenhouse gas may cause, using the functionally equivalent amount or concentration of carbon dioxide as the reference.- Global warming...

 released per megajoule of energy produced)
Fuel type Carbon
intensity
Carbon intensity
including land-use
changes
Comments
Midwest ethanol
75.10
105.10
Mainly made from corn
Maze
A maze is a tour puzzle in the form of a complex branching passage through which the solver must find a route. In everyday speech, both maze and labyrinth denote a complex and confusing series of pathways, but technically the maze is distinguished from the labyrinth, as the labyrinth has a single...

. Includes some of the plant's power coming from coal
Coal
Coal is a combustible black or brownish-black sedimentary rock usually occurring in rock strata in layers or veins called coal beds or coal seams. The harder forms, such as anthracite coal, can be regarded as metamorphic rock because of later exposure to elevated temperature and pressure...

.
California gasoline
Gasoline
Gasoline , or petrol , is a toxic, translucent, petroleum-derived liquid that is primarily used as a fuel in internal combustion engines. It consists mostly of organic compounds obtained by the fractional distillation of petroleum, enhanced with a variety of additives. Some gasolines also contain...

95.86
95.86
Gasohol with 10% ethanol.
CARB
California Air Resources Board
The California Air Resources Board, also known as CARB or ARB, is the "clean air agency" in the government of California. Established in 1967 in the Mulford-Carrell Act, combining the Bureau of Air Sanitation and the Motor Vehicle Pollution Control Board, CARB is a department within the...

 LCFS 2011
n/a
95.61
Maximum allowed in 2011 (initial). Might be reviewed as more studies are available.
CARB LCFS 2020
n/a
86.27
Maximum allowed by 2020. Might be reviewed as more studies are available.
California ethanol
50.70
80.70
Considers plant's power coming from natural gas.
Brazilian ethanol
Ethanol fuel in Brazil
Brazil is the world's second largest producer of ethanol fuel and the world's largest exporter. Together, Brazil and the United States lead the industrial production of ethanol fuel, accounting together for 87.8% of the world's production in 2010. In 2010 Brazil produced 26.2 billion litres Brazil...

27.40
73.40
Made from sugarcane
Sugarcane
Sugarcane refers to any of six to 37 species of tall perennial grasses of the genus Saccharum . Native to the warm temperate to tropical regions of South Asia, they have stout, jointed, fibrous stalks that are rich in sugar, and measure two to six metres tall...

 and ship transport Brazil-California included
CNG
Compressed natural gas
Compressed natural gas is a fossil fuel substitute for gasoline , diesel, or propane/LPG. Although its combustion does produce greenhouse gases, it is a more environmentally clean alternative to those fuels, and it is much safer than other fuels in the event of a spill...

: via pipeline
67.70
67.70
North American natural gas compressed in California.
CNG: landfill gas
11.26
11.26
Derived from landfill
Landfill
A landfill site , is a site for the disposal of waste materials by burial and is the oldest form of waste treatment...

s in California.
Note: the complete lifecycle analysis for these fuels and others considered such as cellulosic ethanol
Cellulosic ethanol
Cellulosic ethanol is a biofuel produced from wood, grasses, or the non-edible parts of plants.It is a type of biofuel produced from lignocellulose, a structural material that comprises much of the mass of plants. Lignocellulose is composed mainly of cellulose, hemicellulose and lignin...

 (farmed trees and forest waste), electricity (California average electricity mix),
hydrogen
Hydrogen
Hydrogen is the chemical element with atomic number 1. It is represented by the symbol H. With an average atomic weight of , hydrogen is the lightest and most abundant chemical element, constituting roughly 75% of the Universe's chemical elemental mass. Stars in the main sequence are mainly...

 (gaseous hydrogen from North American natural gas) and biodiesel
Biodiesel
Biodiesel refers to a vegetable oil- or animal fat-based diesel fuel consisting of long-chain alkyl esters. Biodiesel is typically made by chemically reacting lipids with an alcohol....

 (soybean
Soybean
The soybean or soya bean is a species of legume native to East Asia, widely grown for its edible bean which has numerous uses...

) are available at CARB's website (see Lifecycle Analysis)


The LCFS standards established in CARB's rulemaking will be periodically reviewed. The first formal review will occur by January 1, 2011. Additional reviews are expected to be conducted approximately every three years thereafter, or as necessary. The 2011 review will consider the status of efforts to develop low carbon fuels, the compliance schedule, updated technical information, and provide recommendations on metrics to address the sustainable production of low carbon fuels.

According to CARB's ruling, providers of transportation fuels must demonstrate that the mix of fuels they supply meet the LCFS intensity standards for each annual compliance period. They must report all fuels provided and track the fuels’ carbon intensity through a system of "credits" and "deficits." Credits are generated from fuels with lower carbon intensity than the standard. Deficits result from the use of fuels with higher carbon intensity than the standard. A fuel provider meets its compliance obligation by ensuring that amount of credits it earns (or otherwise acquires from another party) is equal to, or greater than, the deficits it has incurred. Credits and deficits are generally determined based on the amount of fuel sold, the carbon intensity of the fuel, and the efficiency by which a vehicle converts the fuel into usable energy. Credits may be banked and traded within the LCFS market to meet obligations.

Two "lookup tables" (similar to the one above) and its carbon intensity values are part of the regulation, one for gasoline and another for diesel. The carbon intensity values can only be amended or expanded by regulatory amendments, and the Board delegated to the Executive Officer the responsibility to conduct the necessary rulemaking hearings and take final action on any amendments, other than amending indirect land-use change values included in the lookup tables.

Latest developments

California-Modified GREET
Pathways for Brazilian sugarcane ethanol
Ethanol fuel in Brazil
Brazil is the world's second largest producer of ethanol fuel and the world's largest exporter. Together, Brazil and the United States lead the industrial production of ethanol fuel, accounting together for 87.8% of the world's production in 2010. In 2010 Brazil produced 26.2 billion litres Brazil...

 
(grams of CO2 equivalent
Carbon dioxide equivalent
Carbon dioxide equivalent and Equivalent carbon dioxide are two related but distinct measures for describing how much global warming a given type and amount of greenhouse gas may cause, using the functionally equivalent amount or concentration of carbon dioxide as the reference.- Global warming...

 released per megajoule of energy produced)
Fuel type Carbon
intensity
Carbon intensity
including land-use
changes
Comments
Average Brazilian ethanol
Ethanol fuel in Brazil
Brazil is the world's second largest producer of ethanol fuel and the world's largest exporter. Together, Brazil and the United States lead the industrial production of ethanol fuel, accounting together for 87.8% of the world's production in 2010. In 2010 Brazil produced 26.2 billion litres Brazil...

27.40
73.40
Baseline pathway
Mechanized harvesting and
co-product bioelectricity
12.20
58.20
Scenario 1
Mechanized harvesting
20.40
66.40
Scenario 2
Note: for all scenarios indirect land use change effects are the same and CARB estimate is 46 gCO2e/MJ.


On July 20, 2009, CARB published a Notice of Public Availability of modified text and availability of additional documents regarding the April 2009 rulemaking (Resolution 09-31), open for public comment until August 19. The supporting documents and information added to the rulemaking record include new pahtways for Liquefied Natural Gas
Liquefied natural gas
Liquefied natural gas or LNG is natural gas that has been converted temporarily to liquid form for ease of storage or transport....

 (LNG) from several sources, Compressed Natural Gas
Compressed natural gas
Compressed natural gas is a fossil fuel substitute for gasoline , diesel, or propane/LPG. Although its combustion does produce greenhouse gases, it is a more environmentally clean alternative to those fuels, and it is much safer than other fuels in the event of a spill...

 (CNG) from dairy digester biogas, biodiesel
Biodiesel
Biodiesel refers to a vegetable oil- or animal fat-based diesel fuel consisting of long-chain alkyl esters. Biodiesel is typically made by chemically reacting lipids with an alcohol....

 produced in California from used cooking oil, renewable diesel produced in California from tallow
Tallow
Tallow is a rendered form of beef or mutton fat, processed from suet. It is solid at room temperature. Unlike suet, tallow can be stored for extended periods without the need for refrigeration to prevent decomposition, provided it is kept in an airtight container to prevent oxidation.In industry,...

 (U.S. sourced), and two additional new pathways for Brazilian sugarcane ethanol
Ethanol fuel in Brazil
Brazil is the world's second largest producer of ethanol fuel and the world's largest exporter. Together, Brazil and the United States lead the industrial production of ethanol fuel, accounting together for 87.8% of the world's production in 2010. In 2010 Brazil produced 26.2 billion litres Brazil...

 which reflect best practices already implemented in some regions of the country.

The two additional scenarios for sugarcane ethanol were requested by the Board in order to account for improved harvesting practices and the export of electricity from sugarcane ethanol plants in Brazil using energy from bagasse
Bagasse
Bagasse is the fibrous matter that remains after sugarcane or sorghum stalks are crushed to extract their juice. It is currently used as a biofuel and as a renewable resource in the manufacture of pulp and paper products and building materials....

. These two scenarios are not to be considered average for all of Brazilian ethanol but specific cases when such practices are adopted in Brazil. Scenario 1 considers mechanized harvesting of cane which is gradually replacing the traditional practice of burning straw before harvesting cane, and the sale of electricity (co-generated) from power plants that are capable of exporting additional energy beyond that required for processing in the plant (co-product credit). Scenario 2 only considers the export of electricity (co-product) from power plants capable of producing the additional electricity for export. The assumptions or values for the baseline pathway published in February 2009 are the same, including the estimates of indirect land use change for all Brazilian sugarcane scenarios.

On December 2009 the Renewable Fuels Association
Renewable Fuels Association
The Renewable Fuels Association is an American lobbying organization which promotes policies, regulations, and research and development initiatives that will lead to the increased production and use of ethanol fuel...

 (RFA) and Growth Energy, two U.S. ethanol lobbying groups, filed a lawsuit in the Federal District Court in Fresno, California, challenging the constitutionality of the California Low Carbon Fuel Standard (LCFS). The two organizations are arguing that the LCFS violates both the Supremacy Clause
Supremacy Clause
Article VI, Clause 2 of the United States Constitution, known as the Supremacy Clause, establishes the U.S. Constitution, U.S. Treaties, and Federal Statutes as "the supreme law of the land." The text decrees these to be the highest form of law in the U.S...

 and the Commerce Clause
Commerce Clause
The Commerce Clause is an enumerated power listed in the United States Constitution . The clause states that the United States Congress shall have power "To regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes." Courts and commentators have tended to...

 of the US Constitution, and "jeopardizes the nationwide market for ethanol." In a press release both association announced that “If the United States is going to have a low carbon fuel standard, it must be based on sound science and it must be consistent with the U.S. Constitution..." and that "One state cannot dictate policy for all the others, yet that is precisely what California has aimed to do through a poorly conceived and, frankly, unconstitutional LCFS.”

US National Low-Carbon Fuel Standard

Using California's LCFS as a model, several bills have been presented to establish a national low-carbon fuel standards at the federal level.

2007

Senator
United States Senate
The United States Senate is the upper house of the bicameral legislature of the United States, and together with the United States House of Representatives comprises the United States Congress. The composition and powers of the Senate are established in Article One of the U.S. Constitution. Each...

s Barbara Boxer
Barbara Boxer
Barbara Levy Boxer is the junior United States Senator from California . A member of the Democratic Party, she previously served in the U.S. House of Representatives ....

, Dianne Feinstein
Dianne Feinstein
Dianne Goldman Berman Feinstein is the senior U.S. Senator from California. A member of the Democratic Party, she has served in the Senate since 1992. She also served as 38th Mayor of San Francisco from 1978 to 1988....

, and now President Barack Obama
Barack Obama
Barack Hussein Obama II is the 44th and current President of the United States. He is the first African American to hold the office. Obama previously served as a United States Senator from Illinois, from January 2005 until he resigned following his victory in the 2008 presidential election.Born in...

 introduced in 2007 competing bills with varying versions of California's LCFS.
  • In March 2007, Senator Dianne Feinstein sponsored the "Clean Fuels and Vehicles Bill", which would have reduced emissions from motor vehicle fuels by 10 percent below projected levels by 2030, and would have required fuel suppliers to increase the percentage of low-carbon fuels – biodiesel, E-85 (made with cellulosic ethanol), hydrogen, electricity, and others – in the motor vehicle fuel supply.

  • California Senator Barbara Boxer presented on May 3, 2007 the "Advanced Clean Fuels Act of 2007". This bill was an amendment to the Clean Air Act to promote the use of advanced clean fuels that help reduce air and water pollution and protect the environment.

  • Then Senator Obama introduced his bill on May 7, 2007. The "National Low Carbon Fuel Standard Act of 2007" would have required fuel refineries to reduce the lifecycle greenhouse gas emissions of the transportation fuels sold in the U.S. by 5 percent in 2015 and 10 percent in 2020.

2009

In March 2009, the Waxman-Markey Climate Bill
American Clean Energy and Security Act
The American Clean Energy and Security Act of 2009 was an energy bill in the 111th United States Congress that would have established a variant of an emissions trading plan similar to the European Union Emission Trading Scheme...

 was introduced in the U.S. House Committee on Energy and Commerce, and it has been praised by top Obama Administration officials. The bill requires a slightly higher targets for reductions in emissions of carbon dioxide
Carbon dioxide
Carbon dioxide is a naturally occurring chemical compound composed of two oxygen atoms covalently bonded to a single carbon atom...

, methane
Methane
Methane is a chemical compound with the chemical formula . It is the simplest alkane, the principal component of natural gas, and probably the most abundant organic compound on earth. The relative abundance of methane makes it an attractive fuel...

, and other greenhouse gas
Greenhouse gas
A greenhouse gas is a gas in an atmosphere that absorbs and emits radiation within the thermal infrared range. This process is the fundamental cause of the greenhouse effect. The primary greenhouse gases in the Earth's atmosphere are water vapor, carbon dioxide, methane, nitrous oxide, and ozone...

es than those proposed by President
President of the United States
The President of the United States of America is the head of state and head of government of the United States. The president leads the executive branch of the federal government and is the commander-in-chief of the United States Armed Forces....

 Barack Obama
Barack Obama
Barack Hussein Obama II is the 44th and current President of the United States. He is the first African American to hold the office. Obama previously served as a United States Senator from Illinois, from January 2005 until he resigned following his victory in the 2008 presidential election.Born in...

. The bill proposed a 20-percent emissions reduction from 2005 levels by 2020 (Obama had proposed a 14 percent reduction by 2020). Both plans aim to reduce emissions by about 80 percent by 2050. The Climate Change Bill was approved by the U.S. House of Representatives on June 26, 2009. As approved, emissions would be cut 17 percent from 2005 levels by 2020, and 83 percent by 2050.

EPA Renewable Fuel Standard

The Energy Independence and Security Act of 2007
Energy Independence and Security Act of 2007
The Energy Independence and Security Act of 2007 is an Act of Congress concerning the energy policy of the United States...

 (EISA) established new renewable fuel categories and eligibility requirements, setting mandatory life cycle
Life cycle assessment
A life-cycle assessment is a technique to assess environmental impacts associated with all the stages of a product's life from-cradle-to-grave A life-cycle assessment (LCA, also known as life-cycle analysis, ecobalance, and cradle-to-grave analysis) is a technique to assess environmental impacts...

 greenhouse gas
Greenhouse gas
A greenhouse gas is a gas in an atmosphere that absorbs and emits radiation within the thermal infrared range. This process is the fundamental cause of the greenhouse effect. The primary greenhouse gases in the Earth's atmosphere are water vapor, carbon dioxide, methane, nitrous oxide, and ozone...

 emissions thresholds for renewable fuel categories, as compared to those of average petroleum fuels used in 2005. EISA definition of life cycle GHG emissions explicitly mandated the U.S. Environmental Protection Agency (EPA) to include "direct emissions and significant indirect emissions such as significant emissions from land use changes."

On May 5, 2009 the U.S. Environmental Protection Agency (EPA) released its notice of proposed rulemaking
Notice of proposed rulemaking
A notice of proposed rulemaking is a public notice issued by law when one of the independent agencies of the United States government wishes to add, remove, or change a rule or regulation as part of the rulemaking process. It is an important part of United States administrative law which...

 for implementation of the 2007 modification of the Renewable Fuel Standard (RFS). The draft of the regulations was released for public comment during a 60-day period. EPA's proposed regulations also included the carbon footprint
Carbon footprint
A carbon footprint has historically been defined as "the total set of greenhouse gas emissions caused by an organization, event, product or person.". However, calculating a carbon footprint which conforms to this definition is often impracticable due to the large amount of data required, which is...

 from indirect land-use changes, which, as CARB's ruling, caused controversy among ethanol producers. On the same day, President Barack Obama
Barack Obama
Barack Hussein Obama II is the 44th and current President of the United States. He is the first African American to hold the office. Obama previously served as a United States Senator from Illinois, from January 2005 until he resigned following his victory in the 2008 presidential election.Born in...

 signed a Presidential Directive
Presidential directive
Presidential Directives, better known as Presidential Decision Directives or PDD are a form of an executive order issued by the President of the United States with the advice and consent of the National Security Council...

 with the aim to advance biofuels research and improve their commercialization. The Directive established a Biofuels Interagency Working Group which has the mandate to come up with policy ideas for increasing investment in next-generation fuels, such as cellulosic ethanol, and for reducing the environmental footprint of growing biofuels crops, particularly corn-based ethanol.

An amendment was introduced in the House Appropriations Committee during the discussion of the fiscal 2010 Interior and Environment spending bill, aimed to prohibit EPA to consider indirect land-use changes in the RFS2 ruling for five years. This amendment was rejected on June 18, 2009 by a 30 to 29 vote. A similar amendment to the Waxman-Markey Climate Bill
American Clean Energy and Security Act
The American Clean Energy and Security Act of 2009 was an energy bill in the 111th United States Congress that would have established a variant of an emissions trading plan similar to the European Union Emission Trading Scheme...

 was introduced in the U.S. House Committee on Energy and Commerce. The Climate Bill was approved by the U.S. House of Representatives with a vote of 219 to 212, and included a mandate for EPA to exclude any estimation of international indirect land use changes due to biofuels for a five-year period for the purposes of the RFS2. During this period, more research is to be conducted to develop more reliable models and methodologies for estimating ILUC. By 2010 the bill is awaiting approval by the U.S. Senate.
EISA
Energy Independence and Security Act of 2007
The Energy Independence and Security Act of 2007 is an Act of Congress concerning the energy policy of the United States...

 Standards for 2010
Fuel Category Percentage of
Fuel Required
to be Renewable
Volume of
Renewable Fuel
(in billion gal)
Cellulosic biofuel
0.004%
0.0065
Biomass-based diesel
1.10%(1)
1.15(1)
Total Advanced biofuel
0.61%
0.95
Renewable fuel
8.25%
12.95
Notes: (1) Combined 2009/2010 biomass-based diesel volumes applied in 2010.

On February 3, 2010, EPA issued its final rule regarding the expanded Renewable Fuel Standard (RFS2) for 2010 and beyond. The final rule revises the annual renewable fuel standards, and the required renewable fuel volume continues to increase reaching 36 billion gallons (136.3 billion liters) by 2022. For 2010, EISA set a total renewable fuel standard of 12.95 billion gallons (49.0 billion liters). This total volume, presented as a fraction of a refiner's or importer's gasoline and diesel volume, must be renewable fuel. The final 2010 standards set by EPA are shown in the table in the right side.

As mandated by law, and in order to establish the fuel category for each biofuel, EPA included in its modeling direct emissions and significant indirect emissions such as emissions from land use changes related to the full lifecycle. EPA's modeling of specific fuel pathways incorporated comments received through the third-party peer review process, and data and information from new studies and public comments. EPA's analysis determined that both ethanol produced from corn starch
Ethanol fuel in the United States
The United States became the world's largest producer of ethanol fuel in 2005. The U.S. produced 13.2 billion U.S. liquid gallons of ethanol fuel in 2010, and together with Brazil, accounted for 88% of that year's global production...

 and biobutanol
Butanol fuel
Butanol may be used as a fuel in an internal combustion engine. Because its longer hydrocarbon chain causes it to be fairly non-polar, it is more similar to gasoline than it is to ethanol...

 from corn starch comply with the 20% GHG emission reduction threshold required to classify as a renewable fuel. EISA grandfathered
Grandfather clause
Grandfather clause is a legal term used to describe a situation in which an old rule continues to apply to some existing situations, while a new rule will apply to all future situations. It is often used as a verb: to grandfather means to grant such an exemption...

 existing U.S. corn ethanol plants, and only requires the 20% reduction in life cycle GHG emissions for any renewable fuel produced at new facilities that commenced construction after December 19, 2007.

EPA also determined that ethanol produced from sugarcane
Ethanol fuel in Brazil
Brazil is the world's second largest producer of ethanol fuel and the world's largest exporter. Together, Brazil and the United States lead the industrial production of ethanol fuel, accounting together for 87.8% of the world's production in 2010. In 2010 Brazil produced 26.2 billion litres Brazil...

, both in Brazil
Brazil
Brazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people...

 and Caribbean Basin Initiative
Caribbean Basin Initiative
The Caribbean Basin Initiative was a unilateral and temporary United States program initiated by the 1983 "Caribbean Basin Economic Recovery Act" . The CBI came into effect on January 1, 1984 and aimed to provide several tariff and trade benefits to many Central American and Caribbean countries....

 countries, complies with the applicable 50% GHG reduction threshold for the advanced fuel category. Both diesel produced from algal oils
Green diesel
Green diesel, also known as renewable diesel, is a form of diesel fuel which is derived from renewable feedstock by using biomass to liquid or vegetable oil refining technologies. Based on its feedstock it could be classified as biodiesel; however, based on the processing technology and chemical...

 and biodiesel
Biodiesel
Biodiesel refers to a vegetable oil- or animal fat-based diesel fuel consisting of long-chain alkyl esters. Biodiesel is typically made by chemically reacting lipids with an alcohol....

 from soy oil and renewable diesel from waste oils, fats, and greases complies with the 50% GHG threshold for the biomass-based diesel category. Cellulosic ethanol
Cellulosic ethanol
Cellulosic ethanol is a biofuel produced from wood, grasses, or the non-edible parts of plants.It is a type of biofuel produced from lignocellulose, a structural material that comprises much of the mass of plants. Lignocellulose is composed mainly of cellulose, hemicellulose and lignin...

 and cellulosic diesel (based on currently modeled pathways) comply with the 60% GHG reduction threshold applicable to cellulosic biofuels.

The following table summarizes the mean GHG emissions estimated and the range of variations considering that the main source of uncertainty in the life cycle analysis is the emissions related to international land use change GHG emissions.
U.S. Environmental Protection Agency
Life cycle
Life cycle assessment
A life-cycle assessment is a technique to assess environmental impacts associated with all the stages of a product's life from-cradle-to-grave A life-cycle assessment (LCA, also known as life-cycle analysis, ecobalance, and cradle-to-grave analysis) is a technique to assess environmental impacts...

 Year 2022 GHG emissions reduction results for RFS2 final rule
(includes direct and indirect land use change effects and a 30 year pay back period
Time horizon
A time horizon, also known as a planning horizon, is a fixed point of time in the future at which point certain processes will be evaluated or assumed to end. It is necessary in an accounting, finance or risk management regime to assign such a fixed horizon time so that alternatives can be...

 at a 0% discount rate
Discount rate
The discount rate can mean*an interest rate a central bank charges depository institutions that borrow reserves from it, for example for the use of the Federal Reserve's discount window....

)
Renewable fuel Pathway
(for U.S. consumption)
Mean
GHG emission
reduction(1)
GHG emission
reduction
95% confidence
interval(2)
EISA
Energy Independence and Security Act of 2007
The Energy Independence and Security Act of 2007 is an Act of Congress concerning the energy policy of the United States...


category
Assumptions/comments
Corn ethanol
Corn ethanol
Corn ethanol is ethanol produced from corn as a biomass through industrial fermentation, chemical processing and distillation. Corn is the main feedstock used for producing ethanol fuel in the United States and it is mainly used as an oxygenate to gasoline in the form of low-level blends, and to a...

21%
7-32%
Renewable fuel
Natural gas fired dry mill plant, drying 63% of the DGS it produces and employing corn oil fractionation technology.
Corn biobutanol
31%
20-40%
Renewable fuel
Natural gas fired dry mill plant, drying 63% of the DGS it produces and employing corn oil fractionation technology.
Sugarcane ethanol
Ethanol fuel in Brazil
Brazil is the world's second largest producer of ethanol fuel and the world's largest exporter. Together, Brazil and the United States lead the industrial production of ethanol fuel, accounting together for 87.8% of the world's production in 2010. In 2010 Brazil produced 26.2 billion litres Brazil...

(3)
61%
52-71%
Advanced biofuel
Ethanol is produced and dehydrated in Brazil prior to being imported into the U.S. and the residue is not collected.
GHG emissions from ocean tankers bringing ethanol from Brazil to the U.S. are included.
Cellulosic ethanol
Cellulosic ethanol
Cellulosic ethanol is a biofuel produced from wood, grasses, or the non-edible parts of plants.It is a type of biofuel produced from lignocellulose, a structural material that comprises much of the mass of plants. Lignocellulose is composed mainly of cellulose, hemicellulose and lignin...

 from switchgrass
Switchgrass
Panicum virgatum, commonly known as switchgrass, is a perennial warm season bunchgrass native to North America, where it occurs naturally from 55°N latitude in Canada southwards into the United States and Mexico...

 
110%
102-117%
Cellulosic biofuel
Ethanol produced using the biochemical process.
Cellulosic ethanol from corn stover
Corn stover
Corn stover consists of the leaves and stalks of maize plants left in a field after harvest and consists of the residue: stalk; the leaf, husk, and cob remaining in the field following the harvest of cereal grain.” Stover makes up about half of the yield of a crop and is similar to straw...

 
129%
No ILUC
Cellulosic biofuel
Ethanol produced using the biochemical process. Ethanol produced from agricultural residues does not have any international land use emissions.
Soybean
Soybean
The soybean or soya bean is a species of legume native to East Asia, widely grown for its edible bean which has numerous uses...

-based biodiesel
Biodiesel
Biodiesel refers to a vegetable oil- or animal fat-based diesel fuel consisting of long-chain alkyl esters. Biodiesel is typically made by chemically reacting lipids with an alcohol....

 
57%
22-85%
Biomass-based diesel
Plant using natural gas
Waste grease biodiesel
86%
No ILUC
Biomass-based diesel
Waste grease feedstock does not have any agricultural or land use emissions.
Notes: (1) Percent reduction in lifecycle GHG emissions compared to the average lifecycle GHG for gasoline or diesel sold or distributed as transportation fuel in 2005.
(2) Confidence range accounts for uncertainty in the types of land use change assumptions and the magnitude of resulting GHG emissions.
(3) EPA develop a new Brazil module to model the impact of increased production of Brazilian sugarcane ethanol for use in the U.S. market and the international impacts of Brazilian sugarcane ethanol production. The Brazil module also accounts for the domestic competition between crop and pasture land uses, and allows for livestock intensification (heads of cattle per unit area of land).


UNICA, a Brazilian ethanol producers association, welcomed the ruling and commented that they hope the classification of Brazilian sugarcane ethanol as an advanced biofuel will contribute to influence those who seek to lift the trade barriers imposed against clear energy, both in the U.S. and the rest of the world. EPA's final ruling is expected to benefit Brazilian producers, as the blending mandate requires an increasing quota of advanced biofuels, which is not likely to be fulfill with cellulosic ethanol, and then it would force blenders to import more Brazilian sugarcane-based ethanol, despite the existing 54¢ per gallon tariff on ethanol imported directly from Brazil.

In the case of corn-based ethanol, EPA said that manufacturers would need to use “advanced efficient technologies” during production to meet RSF2 limits. The U.S. Renewable Fuels Association
Renewable Fuels Association
The Renewable Fuels Association is an American lobbying organization which promotes policies, regulations, and research and development initiatives that will lead to the increased production and use of ethanol fuel...

 also welcomed the ruling, as ethanol producers "require stable federal policy that provides them the market assurances they need to commercialize new technologies." However, they complained that "EPA continues to rely on oft-challenged and unproven theories such as international indirect land use change to penalize U.S. biofuels to the advantage of imported ethanol and petroleum."

Other U.S. regional proposals

Eleven U.S. Northeast
Northeastern United States
The Northeastern United States is a region of the United States as defined by the United States Census Bureau.-Composition:The region comprises nine states: the New England states of Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont; and the Mid-Atlantic states of New...

 and Mid-Atlantic
Mid-Atlantic States
The Mid-Atlantic states, also called middle Atlantic states or simply the mid Atlantic, form a region of the United States generally located between New England and the South...

 states have committed to analyzing a single low-carbon fuel standard for the entire region, driving commercialization and creating a larger market for fuels with low carbon intensity. The standard is aimed to reduce greenhouse gas emissions from fuels for vehicles and other uses, including fuel used for heating buildings, industrial processes, and electricity generation. Ten of these states are members of the Regional Greenhouse Gas Initiative
Regional Greenhouse Gas Initiative
Regional Greenhouse Gas Initiative is a regional initiative by states and provinces in the Northeastern United States and Eastern Canada regions to reduce greenhouse gas emissions...

 (RGGI). California Air Resources Board
California Air Resources Board
The California Air Resources Board, also known as CARB or ARB, is the "clean air agency" in the government of California. Established in 1967 in the Mulford-Carrell Act, combining the Bureau of Air Sanitation and the Motor Vehicle Pollution Control Board, CARB is a department within the...

 (CARB) staff has been coordinating with representatives of these States. The states developing a regional LCFS are Connecticut
Connecticut
Connecticut is a state in the New England region of the northeastern United States. It is bordered by Rhode Island to the east, Massachusetts to the north, and the state of New York to the west and the south .Connecticut is named for the Connecticut River, the major U.S. river that approximately...

, Delaware
Delaware
Delaware is a U.S. state located on the Atlantic Coast in the Mid-Atlantic region of the United States. It is bordered to the south and west by Maryland, and to the north by Pennsylvania...

, Maine
Maine
Maine is a state in the New England region of the northeastern United States, bordered by the Atlantic Ocean to the east and south, New Hampshire to the west, and the Canadian provinces of Quebec to the northwest and New Brunswick to the northeast. Maine is both the northernmost and easternmost...

, Maryland
Maryland
Maryland is a U.S. state located in the Mid Atlantic region of the United States, bordering Virginia, West Virginia, and the District of Columbia to its south and west; Pennsylvania to its north; and Delaware to its east...

, Massachusetts
Massachusetts
The Commonwealth of Massachusetts is a state in the New England region of the northeastern United States of America. It is bordered by Rhode Island and Connecticut to the south, New York to the west, and Vermont and New Hampshire to the north; at its east lies the Atlantic Ocean. As of the 2010...

, New Hampshire
New Hampshire
New Hampshire is a state in the New England region of the northeastern United States of America. The state was named after the southern English county of Hampshire. It is bordered by Massachusetts to the south, Vermont to the west, Maine and the Atlantic Ocean to the east, and the Canadian...

, New Jersey
New Jersey
New Jersey is a state in the Northeastern and Middle Atlantic regions of the United States. , its population was 8,791,894. It is bordered on the north and east by the state of New York, on the southeast and south by the Atlantic Ocean, on the west by Pennsylvania and on the southwest by Delaware...

, New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...

, Pennsylvania
Pennsylvania
The Commonwealth of Pennsylvania is a U.S. state that is located in the Northeastern and Mid-Atlantic regions of the United States. The state borders Delaware and Maryland to the south, West Virginia to the southwest, Ohio to the west, New York and Ontario, Canada, to the north, and New Jersey to...

, Rhode Island
Rhode Island
The state of Rhode Island and Providence Plantations, more commonly referred to as Rhode Island , is a state in the New England region of the United States. It is the smallest U.S. state by area...

, and Vermont
Vermont
Vermont is a state in the New England region of the northeastern United States of America. The state ranks 43rd in land area, , and 45th in total area. Its population according to the 2010 census, 630,337, is the second smallest in the country, larger only than Wyoming. It is the only New England...

.

A Memorandum of Understanding concerning the development of the regional low carbon fuel standard program was signed by the Governors of each State on December 30, 2009, committing the states to an economic analysis of the program, consultation with stakeholders before ruling, and a draft model rule by early 2011.

British Columbia Low-Carbon Fuel Requirements

The Legislative Assembly of British Columbia
Legislative Assembly of British Columbia
The Legislative Assembly of British Columbia is one of two components of the Parliament of British Columbia, the provincial parliament ....

, Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...

, approved in April 2008 the Renewable and Low Carbon Fuel Requirements Act, which mandates fuel suppliers in B.C. to sell gasoline and diesel containing 5 percent renewable fuels by 2010, and allows the provincial government to set thresholds for the carbon intensity of fuels, taking into account their entire carbon footprint
Carbon footprint
A carbon footprint has historically been defined as "the total set of greenhouse gas emissions caused by an organization, event, product or person.". However, calculating a carbon footprint which conforms to this definition is often impracticable due to the large amount of data required, which is...

. The RLCFR Act also provides flexibility for regulated fuel suppliers to meet their obligations as they may receive notional transfers of renewable fuels and of attributable greenhouse gas emissions.

Existing regulations

The EU has mainly acted to mitigate road transport greenhouse emissions mainly through its voluntary agreement on CO2 emissions from cars and subsequently through Regulation 443/2009 which sets mandatory CO2 emission limits for new cars. The EU promoted the use of biofuels through the directive on the promotion of the use of biofuels and other renewable fuels for transport
Directive on the Promotion of the use of biofuels and other renewable fuels for transport
The Directive on the Promotion of the use of biofuels and other renewable fuels for transport, officially 2003/30/EC and popularly better known as the biofuels directive is a European Union directive for promoting the use of biofuels for EU transport...

 (2003/30/EC), also known as Biofuel Directive, which calls for countries across the EU aiming at replacing 5,75 % of all transport fossil fuels (petrol and diesel) with biofuel
Biofuel
Biofuel is a type of fuel whose energy is derived from biological carbon fixation. Biofuels include fuels derived from biomass conversion, as well as solid biomass, liquid fuels and various biogases...

s by 2010. None of these regulations, however, were based on carbon intensity of fuel. Fuel quality standards in the European Union
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...

 are regulated by Directive 98/70/EC.

Other European countries have their own mandates limiting consumption of conventional fossil fuel
Fossil fuel
Fossil fuels are fuels formed by natural processes such as anaerobic decomposition of buried dead organisms. The age of the organisms and their resulting fossil fuels is typically millions of years, and sometimes exceeds 650 million years...

s by substituting to cleaner fuels in order to reduce greenhouse gas
Greenhouse gas
A greenhouse gas is a gas in an atmosphere that absorbs and emits radiation within the thermal infrared range. This process is the fundamental cause of the greenhouse effect. The primary greenhouse gases in the Earth's atmosphere are water vapor, carbon dioxide, methane, nitrous oxide, and ozone...

 emissions, such as the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...

 Renewable Transport Fuel Obligation
Renewable Transport Fuel Obligation
The Renewable Transport Fuel Obligation in the United Kingdom is a requirement on transport fuel suppliers to ensure that 5 percent of all road vehicle fuel is supplied is from sustainable renewable sources by 2010...

 Program (RTFO), requiring transport fuel suppliers to ensure that 5% of all road vehicle fuel comes from sustainable renewable sources by 2010.

UK Renewable Transport Fuel Obligation

The Renewable Transport Fuel Obligation
Renewable Transport Fuel Obligation
The Renewable Transport Fuel Obligation in the United Kingdom is a requirement on transport fuel suppliers to ensure that 5 percent of all road vehicle fuel is supplied is from sustainable renewable sources by 2010...

 is similar to California's LCFS in some aspects. Biofuel suppliers are required to report on the level of carbon savings and sustainability
Sustainability
Sustainability is the capacity to endure. For humans, sustainability is the long-term maintenance of well being, which has environmental, economic, and social dimensions, and encompasses the concept of union, an interdependent relationship and mutual responsible position with all living and non...

 of the biofuels they supplied in order to receive Renewable Transport Fuel Certificates (RTFCs). Suppliers have to report on both the net GHG savings and the sustainability of the biofuels they supply according to the appropriate sustainability standards of the feedstocks from which they are produced and any potential indirect impacts of biofuel production, such as indirect land-use change or changes to food and other commodity prices that are beyond the control of individual suppliers. Suppliers that do not submit a report will not be eligible for RTFO certificates.

Certificates can be claimed when renewable fuels are supplied and fuel duty is paid on them. At the end of the obligation period, these certificates may be redeemed to the RTFO Administrator to demonstrate compliance. Certificates can be traded, therefore, if obligated suppliers don't have enough certificates at the end of an obligation period they have to 'buy-out' the balance of their obligation by paying a buy-out price. The buy out price will be 15 pence per litre in the first two years.

EU low-carbon fuel standard

On January 31, 2007, the European Commission
European Commission
The European Commission is the executive body of the European Union. The body is responsible for proposing legislation, implementing decisions, upholding the Union's treaties and the general day-to-day running of the Union....

 proposed new standards for transport fuels to reduce full life cycle emissions by up to 10 percent between 2011 and 2020, just three weeks after the California LCFS Directive was announced. The proposal aims to encourage the development of low-carbon fuels and biofuels, considering reductions in greenhouse gas emissions caused by the production, transport and use of the suppliers fuels.

On December 2008 the European Parliament
European Parliament
The European Parliament is the directly elected parliamentary institution of the European Union . Together with the Council of the European Union and the Commission, it exercises the legislative function of the EU and it has been described as one of the most powerful legislatures in the world...

, among other measures to address climate change
Climate change
Climate change is a significant and lasting change in the statistical distribution of weather patterns over periods ranging from decades to millions of years. It may be a change in average weather conditions or the distribution of events around that average...

 in the European Union
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...

, approved amendments to the fuel quality directive (98/70) as well as replacing the Biofuels Directive
Directive on the Promotion of the use of biofuels and other renewable fuels for transport
The Directive on the Promotion of the use of biofuels and other renewable fuels for transport, officially 2003/30/EC and popularly better known as the biofuels directive is a European Union directive for promoting the use of biofuels for EU transport...

 with a Directive on the promotion of Renewable Energy Sources as proposed by the European Commission. This revision of Directive 98/07/EC introduced a mechanism to monitor and reduce greenhouse gas emissions from the use of road transport fuels, requiring fuel suppliers to reduce GHG emissions by up to 10 percent by 2020 on a life cycle basis. Regarding land use changes, the European Commission was ordered to "develop a concrete methodology to minimise greenhouse gas emissions caused by indirect land use changes
Indirect land use change impacts of biofuels
The indirect land use change impacts of biofuels, also known as ILUC, relates to the unintended consequence of releasing more carbon emissions due to land-use changes around the world induced by the expansion of croplands for ethanol or biodiesel production in response to the increased global...

." The fuel directive also includes provisions to promote sustainable biofuels which minimized the impacts of ILUC. The approved goal of 10 percent reduction in greenhouse gas emissions can be achieved in several ways, and not exclusively from low-carbon fuels:
  • At least 6% by 31 December 2020, compared to the EU-average level of life cycle greenhouse gas emissions per unit of energy from fossil fuels in 2010, obtained through the use of biofuels, alternative fuels and reductions in flaring and venting at production sites.
  • A further 2% reduction (subject to a review) obtained through the use of environmentally friendly carbon capture and storage technologies and electric vehicles.
  • An additional further 2% reduction obtained through the purchase of credits under the Clean Development Mechanism
    Clean Development Mechanism
    The Clean Development Mechanism is one of the "flexibility" mechanisms defined in the Kyoto Protocol . It is defined in Article 12 of the Protocol, and is intended to meet two objectives: to assist parties not included in Annex I in achieving sustainable development and in contributing to the...

     of the Kyoto Protocol
    Kyoto Protocol
    The Kyoto Protocol is a protocol to the United Nations Framework Convention on Climate Change , aimed at fighting global warming...

    .

The Commission is continuing development of the EU LCFS, in particular on the methodology for fossil fuel emissions and has recently consulted on various aspects of the implementation of it. Responses to the consultation have been published. Further work is underway to address Indirect Land Use Change emissions. Two modelling exercises and a model comparison exercise are being carried out to better understand the scale and nature of indirect land use change due to biofuels before the Commission makes proposals to address it.

On June 10, 2010, the European Commission adopted a package of guidelines explaining how the Renewable Energy Directive (RED) should be implemented, as the Directive comes into effect in December 2010. The package adopted consists of three measures that focus on the sustainability criteria for biofuels and how to control that only sustainable biofuels are used in the European Union. First, the Commission is encouraging E.U. nations, industry and NGOs to set up voluntary schemes to certify biofuel sustainability. Second, the EC laid down the rules to protect untouched nature, such as forests, wetlands and protected areas, and third, a set of rules to guarantee that biofuels deliver substantial reduction in well-to-wheel greenhouse gas emissions.

Sustainable biofuel certificates

The European Commission
European Commission
The European Commission is the executive body of the European Union. The body is responsible for proposing legislation, implementing decisions, upholding the Union's treaties and the general day-to-day running of the Union....

 decided to request governments, industry and NGOs to set up voluntary schemes to certify biofuel sustainability for all types of biofuels, including those imported into the European Union. According to the EC, the overall majority of biofuels are produced in the European Union, and for 2007, only 26% of biodiesel
Biodiesel
Biodiesel refers to a vegetable oil- or animal fat-based diesel fuel consisting of long-chain alkyl esters. Biodiesel is typically made by chemically reacting lipids with an alcohol....

 and 31% of bioethanol
Ethanol fuel
Ethanol fuel is ethanol , the same type of alcohol found in alcoholic beverages. It is most often used as a motor fuel, mainly as a biofuel additive for gasoline. World ethanol production for transport fuel tripled between 2000 and 2007 from 17 billion to more than 52 billion litres...

 consumed in the E.U. was imported, mainly from Brazil
Brazil
Brazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people...

 and the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

. The Commission set standards that must be met for these schemes to gain E.U. recognition. One of the main criteria is that the certification scheme must be interdependently audited and fraud-resistant. Auditors must check the whole production chain, from the farmer and mill to the filling station (well-to-wheel life cycle). The auditors must check all the paper and inspect a sample of the farmers, mills and traders, and also whether the land where the feedstock for the ethanol is produced has been indeed farm land before and not a tropical forest or protected area. The certificates guarantee that all the biofuels sold under the label are sustainable and produced under the criteria set by the Renewable Energy Directive.

Environmental groups complained the measures "are too weak to halt a dramatic increase in deforestation." According to Greenpeace
Greenpeace
Greenpeace is a non-governmental environmental organization with offices in over forty countries and with an international coordinating body in Amsterdam, The Netherlands...

  "indirect land-use change impacts of biofuel production still are not properly addressed" which for them is the most dangerous problem of biofuels that if not properly regulated, ILUC impacts will continue causing major biodiversity loss and more greenhosuse gas emissions." On the other hand, industry representatives welcomed the introduction of a certification system and some dismissed the concerns regarding the lack of criteria about changes in land use
Indirect land use change impacts of biofuels
The indirect land use change impacts of biofuels, also known as ILUC, relates to the unintended consequence of releasing more carbon emissions due to land-use changes around the world induced by the expansion of croplands for ethanol or biodiesel production in response to the increased global...

.UNICA
UNICA, Brazil
UNICA , the Brazilian Sugarcane Industry Association, is a lobbying organization of producers of sugarcane and ethanol fuel. UNICA members are responsible for more than 50% of all ethanol produced in Brazil and 60% of overall sugar production....

, the Brazilian ethanol producers association welcome the rules more cautiously, as they consider "that gaps in the rules needed to be filled in so the "industry has a clear framework within which to operate"." Some other industry organizations also said that further clarification is needed in order to implement the Renewable Energy Directive.

As part of the announcement, the Commission clarified that it will publish a report on the impacts of indirect land use
Indirect land use change impacts of biofuels
The indirect land use change impacts of biofuels, also known as ILUC, relates to the unintended consequence of releasing more carbon emissions due to land-use changes around the world induced by the expansion of croplands for ethanol or biodiesel production in response to the increased global...

 by the end of 2010, as requested in the Renewable Energy Directive and on the basis of recently released reports that suggest that biofuels are saving greenhouse gas emissions.

Protecting untouched nature

The rules set by the Commission establish that biofuels should not be made from feedstocks from tropical forests or recently deforested areas, drained peatland, wetland
Wetland
A wetland is an area of land whose soil is saturated with water either permanently or seasonally. Wetlands are categorised by their characteristic vegetation, which is adapted to these unique soil conditions....

 or highly biodiverse
Biodiversity
Biodiversity is the degree of variation of life forms within a given ecosystem, biome, or an entire planet. Biodiversity is a measure of the health of ecosystems. Biodiversity is in part a function of climate. In terrestrial habitats, tropical regions are typically rich whereas polar regions...

 areas. The corresponding Communication explains how this should be assessed and as an example, it makes it clear that the conversion of a forest to a palm oil
Palm oil
Palm oil, coconut oil and palm kernel oil are edible plant oils derived from the fruits of palm trees. Palm oil is extracted from the pulp of the fruit of the oil palm Elaeis guineensis; palm kernel oil is derived from the kernel of the oil palm and coconut oil is derived from the kernel of the...

 plantation would not meet the sustainability requirements.

Promote only biofuels with high greenhouse gas savings

The Commission reiterated that Member States have to meet binding, national targets for renewable energy and that only those biofuels with high greenhouse gas emission savings count for the national targets. The corresponding Communication explains how to make the calculation, which not only includes carbon dioxide
Carbon dioxide
Carbon dioxide is a naturally occurring chemical compound composed of two oxygen atoms covalently bonded to a single carbon atom...

 (CO2), but also methane
Methane
Methane is a chemical compound with the chemical formula . It is the simplest alkane, the principal component of natural gas, and probably the most abundant organic compound on earth. The relative abundance of methane makes it an attractive fuel...

 (CH4) and nitrous oxide
Nitrous oxide
Nitrous oxide, commonly known as laughing gas or sweet air, is a chemical compound with the formula . It is an oxide of nitrogen. At room temperature, it is a colorless non-flammable gas, with a slightly sweet odor and taste. It is used in surgery and dentistry for its anesthetic and analgesic...

 (N2O), both stronger greenhouse gases than CO2. Biofuels must deliver greenhouse gas savings of at least 35% compared to fossil fuel
Fossil fuel
Fossil fuels are fuels formed by natural processes such as anaerobic decomposition of buried dead organisms. The age of the organisms and their resulting fossil fuels is typically millions of years, and sometimes exceeds 650 million years...

s, rising to 50% in 2017 and to 60%, for biofuels from new plants, in 2018.

See also

  • California Air Resources Board
    California Air Resources Board
    The California Air Resources Board, also known as CARB or ARB, is the "clean air agency" in the government of California. Established in 1967 in the Mulford-Carrell Act, combining the Bureau of Air Sanitation and the Motor Vehicle Pollution Control Board, CARB is a department within the...

  • Carbon emissions reporting
    Carbon emissions reporting
    Businesses worldwide face pressure to reduce the impact their activities have upon the environment, and in particular the volume of greenhouse gases they produce. In the United Kingdom, Department for Environment, Food and Rural Affairs has described climate change as the "greatest environmental...

  • Emission standard
    Emission standard
    Emission standards are requirements that set specific limits to the amount of pollutants that can be released into the environment. Many emissions standards focus on regulating pollutants released by automobiles and other powered vehicles but they can also regulate emissions from industry, power...

  • Emissions trading
    Emissions trading
    Emissions trading is a market-based approach used to control pollution by providing economic incentives for achieving reductions in the emissions of pollutants....

  • Global Warming Solutions Act of 2006
    Global Warming Solutions Act of 2006
    The Global Warming Solutions Act of 2006, or Assembly Bill 32, is a California State Law that fights climate change by establishing a comprehensive program to reduce greenhouse gas emissions from all sources throughout the state...

  • Indirect land use change impacts of biofuels
    Indirect land use change impacts of biofuels
    The indirect land use change impacts of biofuels, also known as ILUC, relates to the unintended consequence of releasing more carbon emissions due to land-use changes around the world induced by the expansion of croplands for ethanol or biodiesel production in response to the increased global...

  • Low-carbon economy
    Low-carbon economy
    A Low-Carbon Economy or Low-Fossil-Fuel Economy is an economy that has a minimal output of greenhouse gas emissions into the environment biosphere, but specifically refers to the greenhouse gas carbon dioxide...

  • Low-carbon emission
    Low-carbon emission
    The main components of automobile exhaust are carbon dioxide and water vapor . Carbon dioxide is the most important anthropogenic greenhouse gas and the most significant Greenhouse Gas emitted in the U.S....

  • Renewable transport fuel obligation
    Renewable Transport Fuel Obligation
    The Renewable Transport Fuel Obligation in the United Kingdom is a requirement on transport fuel suppliers to ensure that 5 percent of all road vehicle fuel is supplied is from sustainable renewable sources by 2010...

  • Sustainable transport
    Sustainable transport
    Sustainable transport refers to any means of transport with low impact on the environment, and includes walking and cycling, transit oriented development, green vehicles, CarSharing, and building or protecting urban transport systems that are fuel-efficient, space-saving and promote healthy...

  • Zero emissions vehicle


External links

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