California regulators restore emissions-cutting fuel rule

The rules further strengthen California’s toughest-in-the-nation carbon emissions standards, but oil producers warn that the changes could drive up the cost of gasoline.

“The transportation sector is and will remain the largest source of greenhouse gases in the state of California, but we’ve made some serious strides and we need to continue to build on those actions,” Mary Nichols, chairwoman of the board, said before the vote.

The vote was a boost for Gov. Jerry Brown, who has vowed to intensify his fight against climate change after the oil lobby helped kill a Democratic legislative proposal this month to slash statewide petroleum use by half in 15 years.

Unlike other rules the state has adopted requiring cleaner-burning fuel or more fuel-efficient vehicles, the standard, first proposed in a 2007 executive order from then-Gov.

Arnold Schwarzenegger, calls for counting all the pollution required to deliver gasoline, diesel or alternative fuels to in-state consumers — from drilling a new oil well or planting corn to delivering it to gas stations.

In addition to tailpipe emissions, it includes factors such as whether an ethanol factory uses coal or natural gas, or an oil rig uses diesel fuel to drill.

Oil producers say the standard will impact consumers in a state that already has some of the highest gas prices in the nation as the companies try to comply with the mandate or face being shut out of the market.

The Western States Petroleum Association, which represents oil companies, said there is not enough low-carbon biofuel to allow refiners to comply with the regulations.