Combined with cap-and-trade, an LCFS simply becomes waste and graft

If the legislature passes both a CO2 cap-and-trade bill (SB 5126) and the low-carbon fuel standard (LCFS) – as now appears likely – it would have the same corrupting effect, rewarding insider special interests and favored political allies while doing absolutely nothing to reduce CO2 emissions. …

A CO2 cap-and-trade system puts a limit (i.e., a “cap”) on total CO2 emissions for the state. How that cap is met is left up to companies that emit CO2. As long as CO2 emissions meet the goal, the state and the environment don’t care how it is done. There are real problems with a cap-and-trade approach, to be sure, but it is more effective and less expensive than regulatory mandates and wasteful government subsidies.

Adding an LCFS mandate on top of cap-and-trade, however, doesn’t reduce the total amount of CO2 reduction as set by the cap, it simply requires that emissions be reduced is a particular, and expensive, way. The LCFS would mandate that some of the required emissions reductions be achieved by paying biofuel companies instead of less-expensive alternatives – like the requirement that meals be bought from the friend of the charity director. The cost of meeting the LCFS is pure waste, doing literally nothing for the environment. …

Supporters of the LCFS know this. Fighting climate change isn’t their priority. They see climate change is an opportunity for profit. And they are taking advantage of in the current legislative atmosphere in our state capitol to further their own self-serving goals.

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