Adoption of a Low-Carbon Fuel Standard (LCFS ) to reduce carbon emissions from transportation sources is a priority for the New York and New England E2 chapters. The governors of the Mid-Atlantic and Northeast States have charged NESCAUM (Northeast States for Coordinated Air Use Management) with recommending a framework for LCFS in the region, which would then be subject to adoption in each of the participating states.

This recommended framework and its associated economic analysis are due out at the end of Q1. Following these releases, the states will commence public forums and separate processes to consider regulatory adoption in a similar fashion to RGGI (Regional Greenhouse Gas Initiative). E2 is working to see the regulation adopted uniformly across the region, creating a model for other regions or for the national level.

On January 26, E2 New York convened a roundtable of stakeholders and state agencies to discuss the LCFS process and implications for two sectors in particular: utility companies and advanced biofuels manufacturers. Stakeholders included utility providers, biofuel producers, researchers, environmental groups, venture capitalists and strategic investors. This broad range of voices brought forth myriad perspectives on how to create regulation that encourages investment.

The morning session of this two-part forum focused on the institutional requirements for the electrification of transport as well as the business models that could lower costs and accelerate adoption. Afternoon activities centered on advanced biofuels and key policy features & challenges of the LCFS in the Northeast/Mid-Atlantic region. This session was moderated by E2’s partners at Environment Northeast (ENE). In both sessions, LCFS stakeholders continued to be interested in a regulatory framework that provides a clear and technology-neutral policy signal to advance low-carbon transport.

The Northeast/Mid-Atlantic LCFS efforts are modeled after the first Low-Carbon Fuel Standard that was developed in California as part of AB32, the Global Warming Solutions Act of 2006, to reduce the carbon intensity of transportation fuels (gasoline and diesel) by a minimum of 10% by 2020. E2 has been integral in creating this regulation, and has continued to be engaged in the development of the LCFS across the country because it encourages technology innovation and uses market signals to reduce dependence on foreign fuel.

E2’s upcoming Telesalon, "Alternative Fuels 101," will provide an overview of new advanced biofuels, how the LCFS helps reduce petroleum use, and E2’s leading role in shaping this regulation.

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