Washington Pushes Ahead on Low-Carbon Fuel Rule
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The Washington state Department of Ecology yesterday issued a discussion draft for a low-carbon fuel standard (LCFS) that would require a 10pc cut in the carbon intensity of the state's fuels by 2026.
The draft proposal, closely modeled on California's LCFS, would require cuts starting in 2017 with relatively modest targets before ramping up substantially from 2021-2026. The department is taking comments on the draft plan until 4 March.
Washington's LCFS would use a modified version of the lifecycle greenhouse gas model that California uses, which is due for changes over the next few months. The program would also adopt the many default fuel pathways that California has issued under its LCFS. The pathways set the carbon intensity scores for various fuels used in the state.
The program would also adopt California's current indirect land-use change scores for crop-based biofuels, but not the revised values that California is close to finalizing. The new values are generally much lower because of updates to the science and models that the California Air Resources Board (ARB) has used over the past two years.
The draft also picks up provisions from the amendments ARB is considering this year, including a credit clearance market. Under that proposal, Washington would allow covered entities to roll over unfilled compliance obligations from one year to the next if they can show that there are insufficient credits available in the market.
Compliance with the LCFS is measured in credits and deficits. Fuels that beat each year's carbon-intensity target generate credits, while those that exceed it produce deficits.
The Department of Ecology has not proposed a price cap for its credit clearance mechanism, but California's is being set at $200/t.
Oregon, which recently finalized its LCFS regulations, may pursue the mechanism for its program if the legislature amends the authorizing legislation.
Washington governor Jay Inslee (D) has not made a final decision on whether the state will adopt the LCFS through its existing legal authorities or if he will seek new legislation. Inslee has said the draft review process and reaction from state legislative leaders would guide his decision.
News Release provided by:
Cortney Becker
Argus Media
