On December 30th, Governors from eleven Northeast and Mid-Atlantic states signed a Memorandum of Understanding(MOU) to develop a regional Low Carbon Fuel Standard (LCFS). The MOU commits states to work together and establish a regional LCFS framework by 2011. An LCFS is a market-based, technology-neutral policy that requires gradual reductions in the carbon content of fuels. An LCFS program will lower greenhouse gas (GHG) emissions and lessen dependence on imported fossil fuels. If adopted by the states, the LCFS would cover fuels used in vehicles, and potentially fuels used for heating buildings.
Ten of the signatory states are members of the Regional Greenhouse Gas Initiative (RGGI), the first mandatory cap-and-trade program in the country. These ten states are: Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Rhode Island, and Vermont. The eleventh state, Pennsylvania, is an observer of the RGGI process.