The Globe and Mail reports this morning that federal Natural Resources Minister Lisa Raitt has written Governor Arnold Schwarzenegger about California's proposed new low carbon fuel standard saying, "We are concerned that crude oil derived from Canada's oil sands may be discriminated against as a high (carbon-intensity) crude oil, while other crude oils with similar upstream emissions are not singled out This could be perceived as creating an unfair trade barrier between our two countries."
"California's Air Resources Board is expected today to approve North America's first low-carbon fuel standard...The California board's regulations would require Canadian oil sands producers to dramatically reduce their emissions before their product could be sold in the state, or to purchase expensive credits from alternative energy producers..."
"While California does not currently consume oil from the oil sands, the largest state in the union is a potentially lucrative market for American refiners that do handle Alberta-based bitumen and upgraded synthetic crude."