Eleven eastern US states plan to develop low-carbon fuel standard

Eleven states in the US Northeast and Mid-Atlantic -- members of the Regional Greenhouse Gas Initiative, plus Pennsylvania -- plan to develop a low-carbon fuel standard that may not only affect transportation fuels but also electric generation, Massachusetts' energy secretary said.
Massachusetts Governor Deval Patrick initiated the idea in a letter sent last June to the governors of the 10 RGGI states, the Massachusetts Office of Energy and Environmental Affairs said.

Officials from each state earlier signed a letter of intent to pursue a common standard because of the "interconnected nature" of the fuel system in the region. The letter noted that RGGI already set a precedent for multi-state efforts to reduce GHGs from power plants.
The states plan to pursue a market-based approach, similar to California's, to reduce carbon dioxide from fuels.

"Such a fuel standard is potentially applicable not only in transportation, but also for fuel used for heating buildings, for industrial processes and for electricity generation," the letter of intent said. The goal is to create a larger market for cleaner fuels, reduce GHG emissions and support the development of clean energy technologies.
"Working together, the 11 states from Maine to Delaware will cut [GHGs] from cars and trucks, spur the development of clean-energy technologies like advanced biofuels and electric cars and reduce our dependence on petroleum," said Ian Bowles, Massachusetts secretary of Energy and Environmental Affairs.

The standard will seek a technologically neutral approach to reduce the average lifecycle GHGs/unit of useful energy.
The states plan to draft a memorandum of understanding in about one year for the participating governors to consider.