To: richardred who wrote (2555 ) 8/5/2007 12:27:19 PM From: richardred Read Replies (1) | Respond to of 2801 Washington may follow California's fuel standard Sunday, August 05, 2007 BY KATHIE DURBIN, Columbian staff writer The Wall Street Journal calls it California's New Gold Rush. But these miners are energy entrepreneurs, developing low-carbon fuels and engines that can run on them. The "gold" they seek is a piece of the state's $50 billion annual transportation fuel market. In January, Gov. Arnold Schwarzenegger signed a first-of-its-kind executive order setting a goal of reducing the "carbon intensity" of California's passenger vehicle fuels by at least 10 percent by 2020. That might not sound like much, but it would require reducing carbon dioxide emissions by 13.4 million metric tons - the equivalent of taking 3 million cars off California's highways. Now Washington is considering whether to follow California's lead. At its July meeting, the transportation subcommittee of Gov. Chris Gregoire's Climate Advisory Team included California's low-carbon fuel standard on a list of measures Washington could take to reduce its own carbon dioxide footprint. The panel's recommendations will go to Gregoire by year's end. Schwarzenegger predicts that the standard will usher in a vibrant market in alternative fuels and vehicle technology and give consumers exciting new choices. Another goal of the new standard is to encourage cutting-edge research. "Each of the different approaches has different barriers," said Peter Moulten of the Washington environmental group Futurewise, which supports a low-carbon-intensity fuel standard for Washington. "Hydrogen is a complete technology rebuild. Plug-in vehicles are here." When the California standard takes effect in 2010, refiners, importers and blenders of passenger vehicle fuels will be required to meet a gradually declining standard for CO 2 emissions. They'll be required to calculate not only how much CO 2 their fuels emit from tailpipes but also how much is produced as a result of extracting, refining and transporting them. The California Air Resources Board (CARB) adopted the standard in June. Implementing rules are still being developed. But it's likely fuel suppliers will have several ways to comply: By boosting the ethanol content of gasoline. By selling more high-blend ethanol for flex-fuel vehicles. By increasing the use of biodiesel blends, natural gas and propane. By supporting research in alternative technologies such as plug-in vehicles and cars powered by hydrogen fuel cells. By purchasing carbon credits to offset their emissions. "By Jan. 1, 2010, we have to have enforceable regulations," said CARB spokeswoman Gennet Paauwe. "A lot has to happen before that. We need to hold workshops and public hearings and give industries the time to adjust to the new regulations." The board hopes to have a draft rule written by the end of 2008. Only the private sector can provide the innovation needed to bring new fuels and technologies to market, Schwarzenegger said at a low-carbon fuels symposium last spring. But government has a role to play by removing barriers and setting standards. "This is the first fuel policy to recognize that we can't transform our multi-billion-dollar fuel market unless the private sector sees a reason to invest, and the customers see a reason why they should bu y," he said. "We don't pick winning fuels, and we don't want to subsidize them either. That way, the best products will win." The Columbian Publishing Co. copyright & permissions rules All materials appearing in The Columbian are protected by copyright as a collective work or compilation under U.S. copyright and other laws and are the property of The Columbian Publishing Company or the party credited as the provider of the content. You may not copy, reproduce, distribute, publish, display, perform, modify, create derivative works, transmit, or in any way exploit any such content, nor may you distribute any part of this content over any network, including a local area network, sell or offer it for sale, or use such content to construct any kind of database. However you may download from columbian.com such content for your own personal, noncommercial use but only if you make only one machine readable copy and/or one print copy. You may not alter or remove any copyright or other notice from copies of the content. Copying or storing any content except as provided above is expressly prohibited without prior written permission of the copyright holder identified in the individual content's copyright notice. To obtain permission to photocopy content of The Columbian, contact Copyright Clearance Center, 222 Rosewood Drive, Danvers, MA 01923; FAX (978) 750-4470, or www.copyright.com. All other requests for permission should be directed via email to archives@columbian.com. columbian.com