What is LCFS, How Will It Impact New Jersey?

consumer-energy-alliance1Conservative New Jersey is proud to introduce guest poster Michael Whatley, Vice President Consumer Energy Alliance. This is the first of a series of posts that will explain LCFS (Low Carbon Fuel Standard) and the impact it will have on all of us.

On the heels of New Jersey’s exit from the Regional Greenhouse Gas Initiative, another policy is being introduced that would have similar damaging impacts on New Jersey consumers. Low carbon fuel standards, or LCFS, are being proposed in several states across the Northeast including New Jersey. These standards will require fuel providers to ration traditional fuels such as gasoline and diesel and replace them with “low carbon” fuels like ethanol from switchgrass (a type of cellulosic biofuel) that are more expensive and require technology that is not readily available.

Since low-carbon fuel alternatives are not currently available at the quantities needed to support our economy, consumers will have to pay substantially higher fuel costs as the supply of traditional fuels will become rationed. These higher priced fuels will put a burden on business and put American jobs at risk. In addition the standards will limit reliable sources of fuel from neighboring countries like Canada and cause market distortions. These distortions will force gasoline, diesel, and home heating oil prices to skyrocket while decreasing our country’s fuel security.

Unfortunately not only are these policies extremely harmful to consumers, they are inherently ineffective. An unintended consequence of an LCFS often referred to as “crude shuffling” would actually lead to higher global GHG emissions due to increased transportation of crudes to and from far away markets. For example, Canadian crudes would be transported to Asia in exchange for higher volumes of Middle Eastern crudes shipped to the United States.

New Jersey voters should be educated on the harm enacting an LCFS would have so that the policy doesn’t become a reality. To learn more about how a low carbon fuel standard would hurt New Jersey consumers you can visit http://www.secureourfuels.org/. Follow us on Twitter or like us on Facebook to be kept in the loop on how you can help defeat an LCFS in New Jersey.

Additional Articles by Michael Whatley on LCFS

Assumptions Big Enough To Drive An Electric Truck Through

New Jersey Consumers will bear the burden of proposed Clean Fuel Standards

As Gas Prices Rise, Low Carbon Fuel Standards Still Bad Policy

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