According to the article, low-carbon doesn’t refer to the fuel itself but rather the whole process of manufacturing, handling and transporting the fuel. But how is this going to work? There doesn’t seem to be much room for improvement there. Does the government have any specific plan in mind or they just made the law to force the oil companies figure out something.
Are you kidding me. They are required to modify the fuel special for the state. That can limit the supply, so they can raise the cost more than what it costs to make the special fuel. And then claim don’t blame us we had to make the special fuel so that is why it cost more. It is a Win-Win-Lose case.
While the fuel producers can simply say, ok you asked for it - here’s what it’s going to cost you at the pump. At some point they could also decide that California isn’t worth the hassle. Extremely unlikely but theoretically possible. What’s more likely is the ethanol corn producers deciding they are better off growing their corn elsewhere.