Oregon House approves low-carbon fuel standard

OREANDA-NEWS. The Oregon House of Representatives yesterday approved a bill to allow the state's low-carbon fuel standard (LCFS) to take effect next year.

The House voted 31-29 in favor of the bill, SB 324, with four Democrats joining the chamber's 25 Republicans in opposition. SB 324 would lift a 31 December 2015 sunset date in the 2009 legislation that authorized creation of the LCFS, known as the Clean Fuel Program. The LCFS regulations enacted in January require a 10pc reduction in the carbon intensity of the state's transportation fuels by 2025, with the first cuts taking effect next year.

The bill includes changes to the law that would allow the state Department of Environmental Quality to implement new cost controls based on the price of credits rather than retail fuel prices. The state Senate passed the bill by a 17-13 vote on 17 February.

The bill now goes to governor Kate Brown (D) for her signature. Brown has said she supports the idea of an LCFS, but has not said whether she would sign the bill.

If Brown signs the bill, Oregon would join California as the only two US states with an LCFS in place. Washington has issued a discussion draft for a possible LCFS, but governor Jay Inslee (D) has not said whether he will move forward with the standard under existing authorities or seek legislation. The three states and the Canadian province of British Columbia have agreed to collaborate on climate policies, including LCFS programs.

House Democrats said the program would boost the state's alternative fuels market while helping to cut greenhouse gas emissions. "Oregonians understand that climate change is an urgent threat to our livelihood, and they are asking us to take action," said representative Jessica Vega Pederson (D), one of the House sponsors.

The House passed the bill after rejecting a Republican alternative that would have used revenue from a state electric rate charge to fund research on low-carbon technologies by the state's university system. The Republican bill would have still required blending of ethanol and biodiesel, but without carbon- intensity targets.

SB 324 "is a partisan boondoggle that increases fuel prices for Oregon families and businesses while achieving no perceptible outcome in carbon reduction in the state," representative Mark Johnson (R) said.