Air

The nascent California ethanol production industry could see its market broadened substantially if the air board eventually raises a cap on the alcohol's content in reformulated gasoline (RFG), which is seen by some officials as a distinct possibility. Production increases and refueling infrastructure improvements could also buoy the industry by enabling the use of ethanol in thousands of government-owned flexible-fuel vehicles (FFVs), which are now being run on gasoline.

Cal/EPA and energy commission officials are drafting landmark greenhouse gas (GHG) emission reduction targets for California expected to be announced by Gov. Arnold Schwarzenegger early next year, possibly in his January State of the State speech, according to sources. West Coast regional GHG reduction targets are subsequently expected to be announced jointly by California, Oregon and Washington officials, according to a source involved in the effort.

Assemblywoman Fran Pavley (D-Agoura Hills) and a high-level air board staffer this week pitched to Canadian officials her landmark legislation requiring new regulations on automakers to reduce greenhouse gas (GHG) emissions. Pavley and air board officials hope her visit will help trigger a "continental shift" in regulating GHG emissions, combined with the expectation that several key Northeast states will adopt the air board regulation.

Automakers are seeking a second air board hearing on its controversial regulation requiring greenhouse gas (GHG) emission reductions in future vehicles, charging multiple administrative law violations. But air board officials are declining these requests and intend soon to send the rule to the Office of Administrative Law (OAL) for final approval. It is widely expected that automakers will sue the state over the regulation once OAL approves the rule.