Demand-side implications related to changes approved by the California Air Resources Board to the Low Carbon Fuel Standard may drive up the price of diesel in the state, according to Land Line Magazine, the publication of the Owner-Operator Independent Drivers Association (OOIDA).
The Low Carbon Fuel Standard is designed to work with California’s new Cap-and-Trade program and the upcoming Advanced Clean Car regulations. Its fuel standard is designed to reduce greenhouse gas emissions from transportation fuels 10 percent by the year 2020. Transportation accounts for 40 percent of California’s greenhouse gas emissions, CARB said.
OOIDA said trucks operated by interstate operators may end up purchasing their diesel fuel outside of California, while in-state fuel distributors digest their inclusion in the state’s emissions reducing legislation.
A coalition of more than 30 business organizations, including the California Manufacturers and Technology Association, the California Chamber of Commerce, and the California Construction Trucking Association, signed onto a letter opposing the new standard, Land Line Magazine said.