Governor vetoes low-carbon fuel standard measure

By CMTA Staff

Capitol Update, Oct. 19, 2007 Share this on FacebookTweet thisEmail this to a friend

Governor Schwarzenegger has vetoed legislation that would have codified a low-carbon fuel standard (LCFS).  SB 210 (Christine Kehoe, D-San Diego) would have required the California Air Resources Board (CARB) to adopt, implement, and enforce LCFS by January 10, 2010 to reduce the carbon content of transportation fuels in California by 10 percent by January 1, 2020.

The bill, which CMTA opposed, was unnecessary and premature, and prejudged the outcome of the AB 32 implementation process currently underway and the LCFS established by executive order.  In January of this year, the Governor signed the order [S-01-07] establishing a LCFS for transportation fuels, with market-based mechanisms to achieve the standard at the lowest cost to consumers and businesses.  CARB began the regulatory process to implement the LCFS this summer, with the new standard to be completed by December 2008.

In his veto message, the Governor said that the bill’s "failure to incorporate all of the provisions outlined in the Executive Order and in particular the authority for CARB to utilize market-based mechanisms in its implementation of the LCFS creates uncertainty about whether California is committed to a market-driven LCFS."  He then added, "that uncertainty could curtail the interest of entrepreneurs in bringing low-carbon fuels to market, reduce the availability of capital required to produce and distribute low-carbon fuels in a consumer-convenient fashion, and raise low-carbon fuel prices."

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