Major Companies Announce Support for California’s Low Carbon Fuel Standard
Letter to California Air Resources Board stresses positive impact LCFS re-adoption will have on the economy, reducing carbon emissions
BOSTON -- Thirty-six companies, including 11 based in California, issued a letter to California Air Resources Board Chairman Mary Nichols expressing strong support for the re-adoption of California’s Low Carbon Fuel Standard (LCFS), citing the standard’s influence on investment in cleaner transportation fuels. The letter was coordinated by Business for Innovative Climate & Energy Policy (BICEP), a project of the nonprofit sustainability advocacy organization, Ceres.
“BICEP companies support a strong LCFS because it’s good for the economy and the environment,” said Anne Kelly, Director of BICEP. “In contrast to the oil industry, which has consistently opposed the LCFS and other efforts to reduce emissions from the transportation sector, BICEP companies are engaging in climate policy advocacy constructively, and recognize the value of the LCFS as a catalyst for innovation and investment in clean fuels.“
The California Air Resources Board approved the LCFS in 2009 to reduce greenhouse gas emissions by achieving a 10 percent reduction in the carbon intensity of transportation fuels used in California by 2020. The standard is a first-of-its-kind, market-based approach to lowering transportation fuel emissions, and is part of a larger effort in California to tackle climate change and build a clean energy economy.
Since its implementation, the LCFS has reduced carbon emissions by approximately 9 million metric tons, or the equivalent of removing nearly 2 million passenger cars from the road for one year. Further, a report by consulting firm ICF International finds the LCFS is driving investment in cleaner fuels, including low carbon ethanol, biodiesel, renewable diesel, and biogas, as well as cleaner production processes. The analysis also found that the LCFS will result in $1.4-$4.8 billion in societal benefits by 2020 from reduced air pollution and increased energy security.
California’s businesses recognize that climate change presents significant long-term risks to companies, not to mention the broader economy. Furthermore, stable, future-oriented fuel standards, like LCFS, provide the regulatory certainty needed to create investment opportunities and ensure the availability of clean fuels.
“Given that the transportation sector accounts for 38 percent of California’s greenhouse gas emissions, it is critical to shift to cleaner transportation fuels,“ said Carol Lee Rawn, Director of Ceres Transportation Program. “The LCFS is a proven and effective strategy to reduce sector emissions, and BICEP companies recognize that the LCFS’s re-adoption is necessary to ensure continued progress in transitioning to cleaner fuels and meeting California’s climate goals.”
Signatories to the letter include: Annie’s Inc.; Aspen Skiing Company; Aveda; Avon Products; Ben & Jerry’s; Burton Snowboards; CA Technologies; Clif Bar; Dignity Health; eBay Inc.; Eileen Fisher; Gap Inc.; General Mills; JLL; KB Home; Kellogg Company; L Brands; L’Oreal; Levi Strauss & Co.; Mars Incorporated; Nestle; New Belgium Brewing; Nike Inc.; The North Face; Outdoor Industry Association; Owens Corning; Patagonia; Portland Trail Blazers; Seventh Generation; Starbucks; Stonyfield Farm;Symantec; Timberland; Unilever; VF Corporation; and Vulcan Inc.
To read a copy of the letter, click here.