Illinois CFS will take more time

Illinois lawmakers will move slowly on a proposed state low-carbon fuel standard (LCFS) as opponents target fuel costs and placing authority over the program with a state agency.

The state Senate Energy and Public Utilities Committee discussed a proposed Illinois LCFS without voting during a Friday morning hearing for which registered opponents of the legislation outnumbered supporters by more than five-to-one. Both members of the public and legislators were wary of granting substantial rulemaking authority on the concept to Illinois environmental regulators.

Lawmakers had delayed a previous hearing and committee vice-chairman and bill sponsor David Koehler (D) switched the topic on the eve of today's hearing from a voting matter to a discussion item.

"This is important stuff and we have to do it right," Koehler said. "I'm committed to doing it right, rather than doing it fast."

LCFS programs require yearly reductions to transportation fuel carbon intensity. Higher-carbon fuels that exceed annual limits incur deficits that suppliers must offset with credits generated from the distribution to the market of approved, lower-carbon alternatives. California, Oregon and Washington operate US LCFS markets. New Mexico lawmakers earlier this year directed its state environmental regulator to develop a program for that state.

The Koehler bill would direct the Illinois Environmental Protection Agency and Pollution Control Board to establish an LCFS requiring a 20pc reduction in gasoline and diesel carbon intensity by 2038. That direction, used in California, Oregon and, soon, New Mexico, has drawn immediate skepticism from opponents who believe those details should come from legislators who answer to constituents.

"I'm not prepared to cede that responsibility to non-elected boards," committee minority spokeswoman Terri Bryant (R) said today, summarizing concerns that have been raised from other opposed or neutral interest groups watching the bill.

The proposed law would also require consideration for low-carbon agricultural practices. Illinois hosts the largest soybean production of any state as well as an established corn and ethanol sector.

Corn grower and ethanol groups testified today supporting that idea, but not the overall bill.

"I sincerely believe that, if done right, Illinois policy could become a beacon in the Midwest of what a clean transportation standard should look like," said Dustin Marquis, president of the ethanol producers' organization Illinois Renewable Fuels Association.

Some environmental groups also registered as neutral on the language in the morning session, concerned that the proposal lacked protections against land-use changes and other environmental issues associated with agricultural-based lower-carbon fuels. Koehler said it was an issue that would be looked at in an upcoming amendment.

Trucking and fuel retail groups focused on costs based on interpretations of California's program. Truck associations chafed at exemptions for aviation and locomotive fuel, noting that the proposal could make their shipping rivals cheaper.

By Elliott Blackburn