(Fueling California)  Issue brief reviews and highlights, the best and most current research and analysis on all viewpoints of the LCFS

Fueling California  released “A Comprehensive Analysis of Current Research and Outlook for the Future,” a first of its kind comprehensive issue brief on California’s Low Carbon Fuel Standard. This issue brief analyzes the most current research available from various viewpoints of the LCFS.

“As a group that represents some of the nation’s largest fuel users, Fueling California wanted to assist policymakers, elected officials, business leaders, and the general public in understanding the range of most recent and best available LCFS research,” said Robert M. Sturtz, Chairman of the Board of Fueling California and Managing Director of Strategic Sourcing-Fuel for United Airlines. “This report has attempted to capture and represent the many, often opposing views on California’s LCFS in an accurate, fair, and balanced manner. As California’s LCFS is a first of its kind fuel policy with potential far-reaching impacts, it is important that we look at all sides and potential outcomes of this policy at every stage of this process.”

Compiled by Dr. Wallace Walrod, Chief Economic Advisor for the Orange County Business Council, “A Comprehensive Analysis of Current Research and Outlook for the Future,” reviews and analyzes 13 different reports commissioned by the Consumer Energy Alliance, Western States Petroleum Association, California Manufactures and Technology Association, California Trucking Association, California Energy Commission, and the California Air Resources Board, among others. The issue brief is organized into four categories:

- Supply: What impacts will the LCFS as proposed have on California fuel supply?
- Cost: What is the impact of the LCFS as proposed on fuel costs?
- Economy: Impact on the California Economy
- Two Concluding School of Thoughts: Overall, is the LCFS feasible as currently framed?

As California’s LCFS is often referenced by many as a potential model for a national LCFS, understanding the true impacts of California’s LCFS from a California fuel user perspective will be helpful in understanding the potential effect of a national standard, including lessons learned from California’s LCFS experience so far, potential ramifications to fuel supply and cost, and/or unintended consequences.

“In the long run, most acknowledge that low carbon fuels will be a part of California’s future. However, the LCFS breaks new ground and is in its very early stages. LCFS supporters and skeptics both agree that more innovation, technology, and process improvement is necessary; and that substantial additional investment will be needed for long-term LCFS success,” said Wallace Walrod, Chief Economic Advisor for the Orange County Business Council. “The next formal review of the LCFS is required to be completed by January 2015, at which time many if not most aspects of the LCFS’s impact should be much clearer. The current intervening time period provides a real opportunity to step back and discuss legitimate concerns and make necessary adjustments to the LCFS.”  READ MORE  Download report

Excerpt from the report:  Supporters view the LCFS as a technology-forcing policy designed to target greenhouse gas emission reductions and advance climate policy objectives in the transportation sector specifically, rather than broader climate change policies such as carbon taxes or cap-and-trade programs. The LCFS does not require specific volumes of any fuel, and fuel suppliers have flexibility to choose the most cost-effective, efficient compliance options. Skeptics view the LCFS as infeasible in its current form due to supply constraints leading to much higher fuel costs and resulting negative impacts to jobs and the California economy. For California consumers, business, and the California economy, the LCFS does more harm than good.  READ MORE