California Gov. Statement on Adoption of National Low Carbon Fuel Standard

12/05/2007

Amendment Modeled after California’s Policy

California Governor Schwarzenegger issued the following statement today after the U.S. Senate Environment and Public Works Committee adopted the amendment by Sen. Lamar Alexander (R-TN) to establish a National Low Carbon Fuel Standard (NLCFS).

"I applaud today's action by the Environment and Public Works Committee in adopting an amendment to establish a national version of California's groundbreaking Low Carbon Fuels Standard. By adopting our approach of enforceable standards and market competition to reduce greenhouse gas emissions, this amendment to the Lieberman-Warner legislation, if passed, would dramatically increase low carbon fuels, expand consumer choice and reward innovation.

"Climate protection, energy security and economic well-being are not partisan issues. I'm pleased to see members of Congress on both sides of the aisle support this amendment in committee today and I look forward to Congress passing this important legislation. I commend Senator Boxer for her leadership, as well as Senator Alexander for authoring the amendment and Senators Lieberman and Warner for carrying the original bill."

The Schwarzenegger Administration has been working with Sen. Alexander's staff over the past few months to shape this national policy and the amendment.

Sen. Lamar Alexander's national proposal is modeled after California's and will gradually reduce the amount of carbon per unit of energy over time. The NLCFS is technology neutral and lets the market pick winners while decreasing our dependence on foreign oil.

Today's amendment picked up three additional sponsors in committee today: Sens. John Warner (R-VA), Joe Lieberman (I-CT) and Barbara Boxer (D-CA). Now that it has passed out of committee, the bill will be considered by the full Senate at a future date.

In January, Governor Schwarzenegger announced the world's first Low Carbon Fuel Standard (LCFS) for transportation fuels that requires fuel providers to reduce the carbon intensity of transportation fuels sold in California. This first-of-its kind standard firmly establishes sustainable demand for lower-carbon fuels but without favoring one fuel over another.

The LCFS is projected to initially displace 20 percent of California's gasoline consumption by 2020 and increasingly more after that. It's also projected to fuel more than 7 million low carbon vehicles by 2020 in California alone - and millions more after that. It is harnessing market forces to jump-start California's and the world's transformation to a low-carbon economy.

Allowing the market to do the work ensures the lowest cost, greatest innovation and most consumer-friendly environment. Like AB 32, the LCFS will use market-based mechanisms that allow providers to choose how they reduce emissions while responding to consumer demand. For example, providers may purchase and blend more low-carbon biofuels into gasoline products, purchase credits from electric utilities supplying low-carbon electrons to electric passenger vehicles, diversify into low-carbon hydrogen, and other to-be-developed strategies.

Source: California Governor

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