California LCFS Program
The Low Carbon Fuel Standard (LCFS) is a regulation designed to reduce Greenhouse Gas (GHG) emissions associated with the lifecycle of transportation fuels used in California. The regulation is aimed at reducing the lifecycle GHG emissions by assessing a “Carbon Intensity” (CI) score to each transportation fuel based on its lifecycle assessment.
The California Air Resources Board (CARB) adopted the LCFS regulation in 2009 to reduce the carbon intensity of transportation fuels used in California by at least 10% by 2020 from a 2010 baseline. The Board passed amendments to the LCFS in 2011 and in 2015, approved the re-adoption of the LCFS. CARB voted to extend the LCFS program by ten years to 2030 and to double the program’s CI reductions target from 10% to 20%.
Benefits of opting into the LCFS
By opting into the LCFS program and providing electricity as transportation fuel, electricity providers can earn LCFS credits for each metric ton of CO2 equivalent (MTCO2e) emissions avoided through the use of electricity. LCFS credits hold a dormant monetary value and may be sold to regulated parties who must offset their LCFS deficits created by the production, supply, and sale of fuels with a CI level higher than CARB’s target amount.
Who can participate in the LCFS program?
Under the re-adopted LCFS, for electricity used as a transportation fuel, the entities that are eligible to generate LCFS credits include:
Are there any requirements after opting into the LCFS program?
Electricity providers that opt into the LCFS program are subject to the reporting and record-keeping requirements. The electricity provider must submit quarterly and annual reports. The data for the quarterly reports must be uploaded and submitted to the LRT-CBTS by the deadlines shown below:
Annual reporting for the prior calendar year must be submitted in the LRT-CBTS by April 30th of each year.
Where can you learn more about the LCFS program?
For more information about California’s LCFS program, you can visit their website here:
For additional details pertaining to LCFS regulation, click the link below: