California Approves Rules Restricting Use of High-Carbon Crude

California passed rules discouraging the state’s refiners, including Chevron Corp. and Tesoro Corp., from processing types of crude that release more carbon when produced and delivered, such as output from Canada’s oil sands.

The regulation, approved as a change to the state’s low-carbon fuel standard, assigns “carbon-intensity” values to about 250 types of crude oil, favoring those that take less energy to produce and transport. Next year, companies will have to cut their carbon scores on a statewide average and potentially on a refinery-by-refinery basis.