California consequences : examining the relationship between the state's new low-carbon fuel standard and Alberta

California's new low carbon fuel standard (LCFS) means that Canadian bitumen is too carbon-intensive for Californian consumers to use. The state is aiming to reduce its dependency on petroleum by 20 per cent while cutting 10 per cent of its greenhouse gas (GHG) emissions from its transportation fuels by 2020. Consumer groups fear that the standard will cost motorists billions of dollars as the blended gasoline will be more expensive. Studies have suggested that ethanol additions of greater than 10 per cent pose risks to vehicles. Alberta oil producers are concerned that the rules may benefit Mexican and Venezuelan oil producers. A number of factors account for the differences in carbon intensity in refined fuels. Alberta's producers use a variety of techniques to extract bitumens, all of which vary in carbon intensity. 3 figs