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Wednesday, December 30, 2009

New England states agree to lower fuel emission standard

By Jackie Noblett

All six New England states, along with five of its Northeast Mid-Atlantic neigbors have signed an agreement committing to a regional framework for fuel emissions reductions.

The memorandum of understanding calls for the states to develop a low carbon fuel standard, which state officials call a “market-based, fuel neutral” way to cut greenhouse gas emissions from fuel for vehicles, homes and other uses. About 30 percent of carbon emissions in the region come from transportation.

The Massachusetts Clean Energy Biofuels Act, signed into law in July 2008 and mandating the mixing of lower-emissions biofuels into all diesel and heating oil, also called for the commonwealth to agree with other states participating in the Regional Greenhouse Gas Initiative to implement a fuel standard that would cut carbon emissions by 10 percent. The memorandum calls for such a framework by 2011.

“The Northeast and Mid-Atlantic states are more dependent than most on imported fossil fuels, and it’s up to us to lead the way forward, just as we have done in the Regional Greenhouse Gas Initiative for electricity,” said Massachusetts Gov. Deval Patrick in a statement. “I am proud to work with my fellow governors to set a standard that will make us more energy independent and environmentally sustainable in the ways we move people and goods and heat our homes.”

“New Hampshire is committed to working regionally and nationally to avert climate change,” said New Hampshire Gov. John Lynch in a statement. “We are pleased to work with other states to undertake an in-depth review of the issues surrounding a low-carbon fuel standard, including its potential economic impact. The work done under this MOU will give us information we need to determine whether to move forward with a Low-Carbon Fuel Standard as individual states and as a region.”

States agreeing to the proposal include Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island and Vermont.

A fuel standard would have a huge impact on Massachusetts’ biofuels industry, which benefits from both the blending requirements as well as a gas tax exemption. The biofuels act calls for the sunset of both measures if a standard is implemented. Yet, how the states account for greenhouse gas emissions, and particularly whether emissions from so-called “indirect land use” in the growing of agricultural crops for fuel should be considered, is a major sticking point for many in the biofuels industry.

“We believe in the concept of a low carbon fuel standard. We’re just asking for the same rules for all fuels, not just some fuels, and this MOU does not do that,” said Brooke Coleman, executive director of the New Fuels Alliance, a biofuels industry trade group. “We have to take this seriously, otherwise we’re trading something that is useful (to the biofuels community) for something that is not.”

Environmental leaders lauded the announcement but cautioned that more work needs to be done on the specifics of such a scheme.

“A program like this holds tremendous promise. We’ve seen examples like this before in California, where they have emphasized sound policies for reducing carbon emissions from fuel. It will kick start market growth for truly clean and sustainable fuels,” said Sue Reid of the Conservation Law Foundation. “But we think it’s really important for the states to come out with a strong comprehensive framework by the end of the year to send the right market signals.”

 

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