Automakers and energy utilities now embrace California’s Low Carbon Fuel Standard, and even oil companies accept it
Sometimes the best policies must overcome early struggles. A great example is the Low Carbon Fuel Standard (LCFS), ordered by Governor Arnold Schwarzenegger in 2007 in support of California’s Global Warming Solutions Act of 2006. The LCFS is a statewide policy designed to reduce the lifecycle carbon intensity (CI) of transportation fuels—that is, the total greenhouse gas emissions from production to consumption, including raw materials, transportation, and processing. It achieves this goal by setting a regulatory target for fuel CI. Market forces then determine the most efficient way to stay below the target, even as it strengthens over time.
By Dan Sperling and Colin W. Murphy.