Low carbon fuel standard (LCFS) proposals are cap-and-trade like programs that take aim solely at the American fuel supply. An LCFS is designed to lower the amount of carbon dioxide emissions in the transportation sector by imposing costly mandates on American fuel manufacturers to pay for products and technologies they do not make and that may not even be available. In practice, such standards would weaken America’s economic and national security and harm American consumers, workers and businesses in many ways – with no environmental benefit.
The only way to reduce carbon from gasoline or diesel is to replace it with something else or blend more of a non-petroleum or uncovered “lower carbon” fuel into the fuel supply. There is a significant lack of existing alternatives that could be blended into the fuel supply that would meet carbon targets contained in the LCFS proposals released to date. Ethanol may not even be a viable option, because several studies show the fuel could generate up to 50 percent more greenhouse gases than gasoline. In addition, an LCFS would penalize American refiners for using crude oil from Canada, making our nation more reliant on oil from unstable parts of the world.
Currently, there is a LCFS regulatory program in California and one will begin in Oregon in 2016 (called Oregon Clean Fuels Program); they are similar, but not identical. Other states are considering implementing an LCFS, but may adopt different rules.
A study by a research organization found that a national LCFS on transportation fuels would raise average U.S. gasoline and diesel prices by as much as 80 percent within five years and up to 170 percent within 10 years, and would wipe out as many as 4.5 million American jobs in 10 years.
The implementation of a nationwide LCFS in the United States could increase global greenhouse gas emissions associated with changes in crude oil transport by up to 19 million metric tons each year – contradicting the claim of LCFS advocates that the standard would reduce such emissions.
© 2015 AFPM. All rights reserved
American Fuel & Petrochemical Manufacturers
1667 K Street NW Washington, DC 20006