Category Archives: Carbon Markets

CARB Launches Rulemaking for Heavy-Duty Engine Low NOx Standard

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On November 3, the California Air Resources Board (CARB) announced plans for a new low-nitrogen oxide (NOx) standard for heavy-duty engines sold in the state.  CARB intends to adopt the new NOx standard—of 0.02 grams per brake horse power-hour (g/bhp-hr)—in 2019.  This standard would apply beginning with 2023 model year engines sold in California.  CARB stated that this new rulemaking will combine amendments to: The heavy-duty engine NOx standards, including a low load certification cycle; The Not-to-Exceed in-use compliance program; The useful life and durability requirements [...]Read more

The Role of Social Cost of Carbon in Federal Rulemakings Under Scrutiny

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The social cost of carbon (SCC) is an estimate of economic damages caused by climate change and includes changes in human health, property damages from flood risks and agricultural productivity among others; however it does not include all categories of damage. EPA and other federal agencies have used the SCC to estimate climate benefits during the rulemaking process since SCC estimates were first published in 2010. Recently the White House increased the estimated SCC value from $22/ton of carbon dioxide (CO2) to $36/ton of CO2. A bill that is expected to hit the House floor, the Energy Consumers [...]Read more

Judge Blocks California LCFS

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Last week, Judge Lawrence O’Neill issued a preliminary injunction against California’s low-carbon fuel standard(LCFS). The LCFS program, which was originally ordered by former Gov. Schwarzenegger in 2007 and later approved by the California Air Resources Board(CARB) in late 2009, would cut vehicle emissions by 10 percent by 2020. Judge O’Neill believes that the LCFS ultimately discriminates against interstate commerce. His ruling reads in part, “California is attempting to stop leakage of GHG emissions by treating electricity generated outside of the state differently than [...]Read more