30 Dec '13, 6pm

UC Davis report finds LCFS compliance costs may rise rapidly; recommends offsetting measures

UC Davis report finds LCFS compliance costs may rise rapidly; recommends offsetting measures 30 December 2013 A recent report prepared by UC Davis researchers for the California Air Resources Board (ARB) found that compliance costs for the Low Carbon Fuels Standard (LCFS) may increase rapidly in the future if there are large differences in marginal costs between traditional fossil fuels and alternative, low-carbon-intensity fuels; or if there are capacity or technological constraints to deploying alternative fuels, particularly those with low-carbon intensity. In the absence of readily available, low CI fuel alternatives, the fuel market will adjust along two dimensions to maintain compliance with the LCFS: (i) increase the use of cheaper fuels below the Standard such as ethanol derived from corn starch and sugarcane; or (ii) increase fuel prices and reduce fuel consumptio...

Full article: http://www.greencarcongress.com/2013/12/20131230-lcfs.html

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