In this Emerging Issues Commentary, Alyssa Moir of the Marten Law Group examines California's plan to institute a low carbon fuel standard (LCFS) for transportation fuels, the implementation of which is expected to begin by the end of 2008. The LCFS will require fuel providers in or importing into California to ensure that the mix of fuel they sell meets, on average, a declining standard for greenhouse gas emissions. The LCFS will measure the "carbon intensity" of a fuel on a "lifecycle" or "field to wheel" basis in order to include all emissions from fuel production and consumption that contribute to the global warming impact of transportation fuels. Among the topics discussed are reducing the carbon intensity of transportation fuels, complying with the LCFS, reporting and measuring "carbon intensity," sources of low-carbon content fuels (including cellulosic biomass), and proposals for creating a federal LCFS. Ms. Moir concludes by offering practical advice on how refiners and blenders of fuel can capitalize on the opportunities presented by a LCFS, and by identifying the factors that should be considered by farmers and agribusinesses that are able to provide the renewable fuels market with cellulosic biomass.
Ms. Moir writes: “Corn-based ethanol has been criticized as a high-carbon content renewable fuel, due to the fertilizer inputs, acreage needs, and mechanization of the corn industry. Arguably, the cost of producing, and thus purchasing, alternatives to corn-based ethanols presents considerable technical and cost hurdles. There are, however, several alternatives that may overcome these economic and technical concerns. Legislation is driving the technology to economically refine cellulosic biomass into low-carbon content fuels. Sources of cellulosic biomass include crops such as switchgrass and poplar trees; agricultural biomass, including animal waste and residue from cultivation; and municipal solid waste. These potential sources of low-carbon content fuels stand to provide fuel providers with the alternatives necessary to meet the LCFS. Municipalities and agricultural operations that are able to provide the renewable fuels market with cellulosic biomass should stand to profit from materials that were once considered low value crops or waste. Permitting regulations, however, will present new challenges as regulatory agencies grapple with the need to develop infrastructure and land-use regimes.”
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