In a letter last week Washington governor Christine Gregoire, Consumer Energy Alliance (CEA) urges her to fully consider the harmful effects that a Low-Carbon Fuel Standard (LCFS) could potentially have on the state. Signed by president David Holt, CEA’s letter comes almost one year after Governor Gregoire issued an executive order to begin the process of determining whether Washington should implement a California-style LCFS, or a similar proposal.
This from Holt’s letter to the governor:
Adopting a California-style LCFS, aimed at restricting the state’s use of Canadian oil, makes no sense for the state of Washington. Unlike California, Washington receives more than 25 percent of its crude from Canada. An LCFS would not only inhibit the state from obtaining and using that crude, but it would also restrict your state’s access to more than 10 percent of its current gasoline supply, which is refined in Montana and derived from Canada’s oil sands.
Indeed, to replace the supply lost under an LCFS, Washington will likely need to increase crude shipments from the Middle East, leading to additional energy security concerns. And as mentioned, as it relates to the imperative of reducing GHGs, several prominent studies have found that an LCFS may actually generate greater net emissions compared to the reference case (no LCFS) by requiring imports from distant, unstable countries instead of relying on crude from our North American neighbors such as Canada and Mexico. Under this scenario, not only would an LCFS increase our nation’s dependence on foreign energy sources, but it would also add significantly to global GHG concentrations.
As Holt notes, Washingtonians – including the governor and elected state leaders – should understand that an LCFS will not reduce greenhouse gas emissions. In fact, such a misguided policy could lead to severe economic and security consequences for consumers across the state.
Unfortunately, Washington isn’t the only state that is currently considering adopting an LCFS. There’s even efforts underway in Washington to pass a national, one-size-fits-all LCFS.
The Michigan Manufacturers Association (MMA) has been a dogged advocate for policies that aim to reduce and stabilize energy costs for consumers and small businesses across the state. Randy Gross – director of environmental and regulatory affairs at MMA – recently penned a column entitled “LCFS targets U.S. economy” in the Traverse City Record-Eagle. He also recently wrote a Muskegon Chronicle letter to the editor under the headline “Canadian crude oil, Michigan economy in the crosshairs”. Here are key excerpts:
Most folks may not know how critical our Canadian neighbors are in fueling the Michigan economy. Indeed, more than 63 percent of our state’s gasoline and diesel fuel begins its life as unrefined oil in Canada. Unfortunately, efforts under way in the capital right now threaten that critical relationship — and the millions of people on this side of the border whose jobs and livelihoods depend on continued access to this secure, affordable and reliable energy.
For example, in Detroit the Marathon refinery produces almost 100,000 barrels of a day of gasoline and diesel fuel derived from Canadian energy — energy that provides thousands of good-paying jobs to Michigan families, as well as pensions and health care. In this troubled economy, why would any lawmaker in Michigan even consider putting those jobs on the line?
Our leaders in both Lansing and Washington, D.C., need to say “no” to an LCFS. The people of Michigan cannot afford to adopt a policy that will lead to higher prices at the pump, fewer American and Michigan jobs and threatened energy security. We need legislation that will improve Michigan’s competitiveness, nationwide and worldwide.
And in New York, former Illinois congressman Thomas Corcoran of the Center for North American Energy Security recently took to the pages of the Buffalo News to highlight the devastating effects that an LCFS could have on the Empire State. In a column entitled, “Low-carbon fuel standard would hurt New Yorkers,” Corcoran writes:
Under the standard, secure sources of oil from Canada and even our own Gulf Coast score much worse than sources of crude from Saudi Arabia and Nigeria. Just about every bit of New York’s 75 million- barrel reserve would be targeted for elimination under the low-carbon fuel standard. The Northeast would have to import more light crude from unstable and unfriendly regimes found in the Middle East, Africa and Libya.
The standards could also impact heating oil from New York refineries. Since about one-third of New York households use fuel oil as their primary energy source for home heating and the Empire State required more than $537 million last year in federal funding from the Low Income Heating Energy Assistance Program, restricting New York’s availability and use of home heating fuel just doesn’t make sense.
CEA will continue to lead the drumbeat of support for commonsense energy policies that encourage more energy production of all forms – especially stable and secure North American supplies derived from Canada. At the same time, we will continue to fight for smart conservation measure that will help drive down our demand and overall energy use. We must continue to use what we have more wisely, while working to balance our needs with the energy that we have here at home and in North America.
