Delaware and 10 Northeast and Mid-Atlantic States in Pact to Reduce Greenhouse Gas Emissions from Fuels

This was announced on 12/30 — sorry for the delay is seeing this! You can see the entire Press Release here. The key info:

Gov. Jack Markell joined the governors of 10 other Northeast and Mid-Atlantic states today in announcing a Memorandum of Understanding (MOU) among the states that underscores their commitment toward developing a regional Low Carbon Fuel Standard in a regional effort to reduce greenhouse gas emissions from fuels for vehicles and other uses.

“We need to address the challenges we are facing with solutions that improve our environment and create jobs,” said Gov. Markell. “I am pleased that Delaware has again joined other states in addressing air quality and carbon emissions. This program will spark investment and innovation in alternative fuels and electric cars like those that Fisker Automotive plans to make in Wilmington.”

A Low Carbon Fuel Standard (LCFS) program is a market-based, fuel-neutral program that would apply to the transportation sector, and potentially apply to fuels used for heating buildings. A regional standard is expected to spur economic growth related to development of advanced technologies and green energy jobs. A low carbon standard also has the potential to reduce transportation-related greenhouse gas emissions, which represent approximately 30 percent of emissions in the region; reduce regional vulnerability to petroleum price volatility; and facilitate the long-term transition from petroleum-based fuels in the transportation sector.

This agreement made with 10 other governors commits Delaware to work with those states to:

analyze low carbon fuel supply options, determine the feasibility of achieving a range of reduction goals, including a 10-percent reduction in carbon intensity of fuels, and develop a framework for a regional Low Carbon Fuel Standard to ensure sustainable use of renewable fuels in the region. The Memorandum of Understanding also calls for a study to examine the potential economic impacts of any program moving forward.

One of the key ideas behind the development of Low Carbon Fuel standards is the development of protocols or methods that would measure the entire carbon life cycle intensity (co2/unit) of fuel. This gives consumers a standard by which to shop for fuels with lower emissions and it gives the state a real place to start asking for real and measurable reductions from carbons in fuel. California has been in this process for 4 or 5 years, and other states are taking a hard look at this too. California is currently fighting with the ethanol industry who object to the inclusion of indirect effects of land use changes in the final calculations of carbon fuel intensity.

Much like the Regional Greenhouse Gas Initiative (we already have cap and trade!), this is another excellent move on the environmental front by Governor Markell and his DNREC secretary. Joining with the other Mid-Atlantic and Northeast states, standards will get the kind of attention that a bigger state might get and — more importantly — keeps us proactively managing not just carbon emissions but market opportunities that will result from that. No waiting for the Feds or the Congress — just moves that will be good for all of us.