1. Restructuring Roundtable Boston, MA December 4, 2009
The Regional Low Carbon Fuel Standard and Sustainable Biomass in the Northeast
Michelle Manion
NESCAUM
(Northeast States for Coordinated Air Use Management)
Restructuring Roundtable
Boston, MA
December 4, 2009

2. What’s “carbon intensity” again?
A measure of the total CO2-equivalent emissions produced throughout a fuel’s lifecycle
Measured in grams of CO2-equivalent GHG emissions per unit of energy in fuel
gCO2e/MJ

3. Carbon Intensity Calculation: Conventional Gasoline
Well-To-Tank Carbon Intensity: gCO2e/MJ
Carbon Content of Fuel: gCO2e/MJ
+ Vehicle emissions of CH4 and N20: gCO2e/MJ
= Lifecycle Carbon Intensity: gCO2e/MJ

4. Emissions from Indirect Land Use Change
Plants and soils store large amounts of carbon that is released during land conversion
Diversion of corn or other crops from existing markets to biofuels production can induce farmers elsewhere to bring new acreage into production
Initial carbon release from land conversion event may exceed GHG benefits of displacing use of petroleum or other fossil fuels

5. Example of Indirect Land Use Change Emissions
.06 forest
.24 grassland
converted to
agriculture
~30 metric
tons CO2
released
-29 CO2 Net
GHG Emissions
One acre
cropland
devoted to
corn ethanol
Saves
~1 metric ton
CO2
emissions
annually
Produces
~400
gallons/yr
ethanol
Source: CARB 2009, based on GTAP modeling.

6. Local/Regional Biomass Feedstocks
Municipal Solid Waste
Only items that have reached the end of their use cycle (non-reusable, non-recyclable)
The Northeast’s most significant resource
Less likely to induce additional LUC than virgin feedstocks
Woody Biomass
New England has substantial woody biomass but also many existing markets (e.g., pulp and paper, exports)
NY and PA combine for approximately two-thirds of total supply
Agricultural Residues
New York and Pennsylvania dominate again, approximately 75 to 90 percent of agricultural biomass resources

7. Estimated Biomass Availability in the Northeast
Sources: NESCAUM and INRS analysis, 2008; US EPA

8. Current Regional Market for Woody Biomass

9. Climate Change Impacts on Forest Carbon
Source: Canadian Forest Service, Knight Science Journalism, 2009.
Source: Natural Resources Canada, 2006.

10. Thank You Northeast States for Coordinated Air Use Management
89 South Street, Suite 602
Phone
Boston, MA 02111
Fax
Arthur Marin, Executive Director
Thank You

11. Transportation Sector GHGs are Important!
GHG emissions from transportation are large and increasing (over 30% of total in most states)
Transportation GHG emissions affected by:
Amount and type of transportation fuels
Efficiency of motor vehicles
Number of vehicle miles traveled

12. Northeast/Mid-Atlantic Low Carbon Fuel Standard
December 2008: Commissioners from 11 Northeast and Mid-Atlantic states signed Letter of Intent to develop framework for regional LCFS
Governors will sign LCFS Memorandum of Understanding this month
Connecticut
Delaware
Maine
Maryland
Massachusetts
New Hampshire
New Jersey
New York
Pennsylvania
Rhode Island
Vermont

13. “What is a Low Carbon Fuel Standard?”
Performance-based standard for fuels
Does not “pick winners” or ban any fuel
Regulates “carbon intensity” or lifecycle carbon emissions from fuels
Requires displacement of conventional transportation fuels with advanced fuels that have low carbon intensities, such as:
Natural gas
Low-carbon biofuels
Electricity generated with renewable sources
Hydrogen produced from renewable sources

14. “What is a Low Carbon Fuel Standard?”
Would require reductions in carbon intensity from today’s transportation fuels:
Gasoline
Diesel
Requires lifecycle GHG accounting for
All baseline fuels
Low-carbon substitutes on an opt-in basis
Heating oil could be included
NOT A CAP ON TRANSPORTATION EMISSIONS

15. How is the LCFS Different From Other Regulations?
Typical vehicle and fuel standards regulate tailpipe emissions
LCFS regulates GHG emissions from the full fuel lifecycle
Cap-and-trade regulations limit total emissions allowed
LCFS regulates only the “intensity” of emissions for a unit of fuel
Total transportation emissions could still increase if total energy use increases
LCFS complements vehicle efficiency standards and travel demand management strategies

16. Program Structure: Who is Regulated?
Providers of most petroleum and biofuels are ‘regulated parties’
Providers of fuels that meet 2020 levels must ‘opt in’ to earn credits:
Electricity
Hydrogen
Natural Gas

17. Flexible, Market-Driven Compliance Options
Supply a mix of fuels with carbon intensity equal to the standard
Provide fuels that have lower carbon intensity than the standard
Use purchased or banked credits to meet the standard

18. Regional LCFS Initiative: Stringency
California’s LCFS requires a 10% reduction in GHG-intensity of fuels by 2020
States are not required by any law to adopt the same LCFS stringency as California
Given the interconnected nature of the region’s fuel supply network, adopting the same stringency within the region is optimal
Facilitate compliance for regulated parties
Maximize program effectiveness

19. What is Lifecycle Analysis?
An accounting of the emissions associated with each stage in the life of a product.
Production
Transport
Storage
Delivery
End Use
“Cradle-to-Grave”, “Well-to-Wheels”, “Full Fuel Cycle”…
Simple addition…
…but keeping track of every stage can be very complicated!