LCFS in New York would boost biofuel, EV use

A low-carbon fuel standard (LCFS) in New York state would accelerate biofuels use and serve as a bridge to full zero-emission vehicle (ZEV) use, stakeholders yesterday told a group that is developing transportation-related climate policy recommendations for the state.

Biofuels producers and electric vehicle (EV) stakeholders have been studying California's LCFS program, watching how it has grown the market for renewable fuels and EVs, and they want to see the same replicated in New York.

Walt Disney transitioned its trucks in southern California from petroleum diesel to renewable diesel (RD), a move made possible by the California LCFS, Disney environmental specialist Eric Cerretani said.

"California's LCFS made RD available at a competitive price," Cerretani told the panel. "We have a lot of productions in New York and we would love to see a similar standard to take advantage of the low-carbon fuels there."

Disney eventually wants to transition its fleets to EVs and the LCFS would help create incentives for EV growth, through rebates and charging infrastructure, he said.

"But the move [to EVs] will take years. Low carbon fuels like RD are an important bridge while we work to electrify our fleets," Cerretani said.

Legislation to create an LCFS was reintroduced in the New York state Senate and Assembly last month. It would require a 20pc reduction in the carbon intensity of on-road transportation fuel by 2032.

California's LCFS has grown the renewable natural gas (RNG) market and a clean fuel standard is now needed in New York to cut transportation GHG emissions there, said Sherrie Merrow, director at NGV America, a natural gas trade association. EVs present "tremendous medium- and long-term opportunity" to decarbonize the transportation sector, but low-carbon intensity RNG is available now to help lower emissions, she said.

If the New York LCFS is modeled after California's program, then electric vehicle charging would be eligible to receive compliance credits. California awards credits for the use of electricity as a transportation fuel and requires utilities to use LCFS credit revenue to fund electric vehicle rebates. This has helped to grow electricity's share within the LCFS, where it is now the third leading source of credits.

Some groups, like US ethanol producer Poet, called on the panel to adopt both an LCFS and the Transportation and Climate Initiative Program (TCI-P) to bolster biofuels use. New York has not yet made a decision on whether it will join the TCI-P, a cap-and-trade program that aims to reduce CO2 emissions from the use of gasoline and diesel fuel. Three states and the District of Columbia have so far committed to participating in the program when it launches next year.

The panel is developing policy recommendations for the New York Climate Action Council, which is tasked with coming up with a plan for implementing major climate legislation the state enacted in 2019. The law requires New York to cut GHG emissions by 40pc by 2030 and 85pc by 2050, both in relation to 1990 levels.

The committee will meet next on 9 March and deliver its final recommendations to the council. The council will issue its draft scoping plan in the autumn.

By Jessica Dell