Eleven Eastern states are developing a regional "Low Carbon Fuel Standard" to reduce the carbon concentration in fuels used in vehicles and buildings and ultimately reduce greenhouse gases.
The group includes the 10 members of the Regional Greenhouse Gas Initiative (RGGI) - Massachusetts, New York, Connecticut, Delaware, Maine, Maryland, New Hampshire, New Jersey, Rhode Island and Vermont - plus Pennsylvania.
They hope that the new standard will push companies to develop cleaner fuels and related technology in order to comply with the standard, reports the Associated Press. It could also encourage more use of electric-powered vehicles and biofuels.
The low carbon fuel standard, which requires a reduction in average greenhouse gas emissions per unit of energy, applies to vehicle fuel for transportation, but could also be applied to the fuel used for indoor heating, industrial processes, and electricity generation.
Last month, some 69 participants from the financial, energy, and environmental sectors bid on permits for the right to emit carbon dioxide from power plants in the US Northeast in an auction by RGGI.
In December, California adopted a sweeping plan to cut greenhouse gas emissions.
