New Report: Clean Fuels Standard in Northeast and Mid-Atlantic Can Deliver Thousands of Jobs, Billions of Dollars

CONTACT:
Karen Wood, CLF, (617) 850-1722, or kwood@clf.org

BOSTON, MA – August 17, 2011 – A forthcoming economic analysis leaked this week indicates a proposed Clean Fuels Standard could significantly strengthen the economy and boost energy self-sufficiency in the Northeast and mid-Atlantic by saving Americans billions in personal disposable income, bringing in billions more for participating states, and creating up to 50,000 jobs per year.

The analysis, conducted by the Northeast States for Coordinated Air Use Management (NESCAUM) on behalf of 11 northeast and mid-Atlantic states, shows that creating a Clean Fuels Standard would help strengthen the region’s economy while reducing America’s reliance on oil and our exposure to volatile oil prices by supporting a clean energy economy here at home.

It enumerates multiple economic and environmental benefits the standard could deliver in the next 10 years, including:

• Creating up to 50,000 jobs annually
• Increasing personal disposable income in the region by up to $3.2 billion
• Growing our state economies by up to nearly $30 billion dollars
• Reducing our region’s dependence on oil by as much as 29 percent
• Reducing harmful air pollution that causes climate change up to 9 percent

Under a Clean Fuels Standard being considered, oil companies would make their fuels 10 percent cleaner on average when it comes to carbon pollution, allowing them to do this any way they choose (such as boosting sales of electricity for electric vehicles, advanced biofuels or natural gas). This means billions of dollars would be reinvested in the states to develop clean, local alternatives to gasoline and diesel – rather than sending them overseas.

The final economic analysis is expected to be released next week. Statements from leading environmental organizations follow:

Nathanael Greene, Director of Renewable Energy Policy at Natural Resources Defense Council:

“The economic analysis shows that we can protect our health, our communities and our wallets at the same time. By investing in American technology and entrepreneurs, we can put our energy dollars to work creating jobs and cleaning up the air at home, rather than sending them overseas. The Clean Fuels Standard is the path forward.”

Sue Reid, VP and Director, Conservation Law Foundation:

“The status quo of continuing to burn billions of gallons of gasoline and diesel fuels year after year is unsustainable on every level. With gas prices a dollar higher than this time last year, our region should seize on this good news that cleaner alternatives present real economic opportunity for the region. A Clean Fuels Standard provides a viable path to meeting our greenhouse gas reduction targets, and a way off of the fossil fuel roller coaster.”

Jeremy McDiarmid, Massachusetts Director, ENE (Environment Northeast):

“Today our region imports almost 100% of its transportation fuels, sending billions of dollars out of the region each year.  We can remain shackled to this expensive, high-risk routine that feeds Big Oil interests, or we can chart a new path to a cleaner and more secure energy future.  It’s no surprise that Big Oil prefers the status quo—it lines their pockets with our hard earned money while their dirty fuel freely pollutes the air.  But, the choice for our region is clear: investing in cleaner fuels puts us on a self-sufficient path that produces local jobs, economic growth, and healthier communities.”

Brendan Bell, Senior Washington Representative, Union of Concerned Scientists:

“This report confirms that a clean fuel standard will create jobs and new economic opportunities across the Northeast.  Companies throughout the region have the technology to power our cars and homes with cleaner fuels.  This means less reliance on imported oil, cleaner air, and more money for consumers.”

Jan Jarrett, President and CEO of Citizens for Pennsylvania’s Future (PennFuture):

“Changing how we use energy and what kind of energy we use is the single most important thing we can do to fight pollution and climate change, and this report proves that it is also the most powerful thing we can do to build our economy, create jobs, and protect our security. Smart politicians will waste no time embracing this plan of action.”

Daniel Gatti, Staff Attorney, Environment America:

“The cost of our oil dependence is out of control, from the price we pay at the pump to the impact of oil dependence on our air, our beaches and our climate.  The Clean Fuel Standard will stimulate billions in investment in the new technologies that can get us off oil, and in the process create thousands of jobs building a clean transportation future for the region.”

Background on the Clean Fuel Standard

In December 2009, the governors from eleven Northeast and mid-Atlantic states signed a Memorandum of Understanding (MOU) to develop a mandatory, multi-state Clean Fuel Standard (CFS).

The CFS is a market-based, technology-neutral policy requiring gradual reductions in the carbon content of fuel.  The CFS will promote a regional market for cleaner alternative fuels, delivering greenhouse gas (GHG) reductions, local economic development, and technological innovation. It is designed to reduce the carbon intensity of fuels used for transportation in the region by 5-15% over the next 10-15 years.