Oil Stakeholders Rally against Low-Carbon Fuel Standard

September 3, 2009

Email this story Print this post Add your comments

A 125-member group, comprised of oil companies, retailers, trucking and transportation groups, and industry organizations, are stepping up efforts against a low-carbon fuel standard (LCFS), reports The Trucker. Some are also protesting the Obama administration’s multi-million grants to industry groups to promote clean alternatives to petroleum.

A LCFS will raise gas prices, cost jobs and force more energy dependence on foreign oil, according to the Consumer Energy Alliance (CEA), reports The Trucker. Although low carbon provisions were removed from the Waxman-Markey bill earlier this summer, CEA is starting a grassroots educational campaign against a LCFS because it may be considered again in future legislation, reports The Trucker.

The CEA raises concerns that oil imported from Canada will face stiff penalties under a low-carbon provision because it’s largely produced from sands with a higher carbon footprint, forcing the U.S. to buy costlier fuel from less friendly countries, according to The Trucker.

Among members of the group are the American Trucking Association, the American Bus Association, the American Highway Users Alliance, ConocoPhillips, Exxon, BP, Peabody, the National Association of Manufacturers and the U.S. Chamber of Commerce.

Petroleum suppliers estimate that climate change legislation could increase the cost of gasoline by 77 cents per gallon and 88 cents per gallon for diesel fuel, reports the American Trucking Association (ATA). The association said a one-cent increase in the average price of diesel costs the trucking industry an additional $390 million in fuel expenses, which would be passed on to shippers of goods and materials and then to consumers.

In addition, stakeholders in the oil industry are protesting the Obama administration’s multi-million grants to help trade groups promote clean energy including ethanol, natural gas, propane and biodiesel products, reports the New York Times.

Daniel Kish, a spokesman for the Institute for Energy Research, a conservative group fighting the proposed emissions caps, told the New York Times that the Department of Energy is basically underwriting these for-profit companies’ public-relations campaigns.

The Department of Energy grants, totaling $300 million, were awarded to 25 projects to encourage the use of cleaner and energy-efficient alternatives to petroleum. Most of the grants are targeted at alternative fuel and energy efficient vehicles and building the infrastructure for refueling stations. The grants are expected to help reduce the annual use of petroleum by 38 million gallons.

The Department of Energy also awarded about $3.25 million aimed at “educational projects” to increase “awareness of alternative fuels and advanced technology vehicles,” according to the New York Times.

Industry groups that received the grants like the Renewable Fuels Association told the New York Times that the grants would only go to marketing not for lobbying, and the groups were required to report their marketing to the Energy Department to ensure that accurate information is being disseminated to the public.

Email this story Print this post Add your comments

Advertisers

Stay competitive through sustainability.

Find out how at the SAP Sustainability Resource Center. >>

Unclear about the EPA's new GHG Rule?

Learn how it could affect your business. >>

EPA mandatory emissions reporting starts Jan 1st

CSA Standards can help your organization get ready for compliance. Find out how. >>

Product Environmental Compliance Best Practices

How to achieve compliance at a significantly lower cost. Download the full report. >>

Join the Discussion

Reader Comments

What does this group suggest we do to reduce the aggregate greenhouse gas emissions from their production and use of fossil fuels?

Doug | September 3rd, 2009

Recent Daily News [ see all ]

11/20/2009
11/19/2009
11/18/2009

Charts [ see all ]

European Paper Industry Cuts CO2 Emissions by 42% since 1990

S. America Takes Most Urgent View of Copenhagen Talks

Nike Tops Annual Climate Action Scores

Oceans May Trap more Carbon than Forests

Jobs

View All Jobs >> Post a Job >>

Comments and Discussions

Trade Association on Trade Group on EPA Chemical Regs: ‘If Everything is a Priority, Then Nothing is a Priority’
"Seriously… that..."

Gary Markowitz on Supermarkets Tackle Emissions Reductions, Fuel Efficiency
"Supermarkets waste over 10 percent of their energy through improper..."

peter in ireland on Ontario May Follow California’s Lead on TV Energy Efficiency
"Governor Schwarzenegger is shooting himself in the foot! 1...."

Environmental Leader on S. America Takes Most Urgent View of Copenhagen Talks
"The survey respondents (the PDF report mentions 4,000 respondents in 38..."

Jake on UPS Trying New Hydraulic Hybrid Trucks
"A point of clarification: the Reuters press release referenced herein reports that 20 UPS will purchase..."

Custom Organic Shirts on S. America Takes Most Urgent View of Copenhagen Talks
"90% of North Americans believe it is urgent to get a global climate..."

peter dublin on California City’s Green Building Ordinance Applies to Commercial Buildings
"Why energy efficiebnt regulation on buildings –..."

Environmental Leader