LCFS California

Overview:

The California LCFS is a regulatory program designed to reduce greenhouse gas emissions from the transportation sector. It sets annual carbon intensity (CI) targets for fuels used in California, requiring fuel producers to decrease the carbon intensity of their products.

Key Points:

  • The LCFS incentivizes the production and use of lower-carbon fuels.
  • It includes a credit trading system where fuel producers that exceed CI reduction targets can sell credits to those that do not meet the targets.
  • The program has driven significant investment in low-carbon technologies and alternative fuels.

What It Is and Does:

The California LCFS is a regulatory program designed to reduce greenhouse gas emissions from the transportation sector by setting annual carbon intensity (CI) targets for fuels. The LCFS incentivizes the production and use of lower-carbon fuels through a credit trading system. Fuel producers that exceed CI reduction targets can sell credits to those that do not meet the targets.

Regulations:

  • Administered by the California Air Resources Board (CARB).
  • Sets annual CI targets that decrease over time to encourage continuous improvement.

Benefits to Customers:

  • Encourages the adoption of cleaner fuels and technologies.
  • Provides a market for low-carbon fuel credits, which can be traded to meet regulatory requirements.
  • Supports the state’s climate goals by reducing transportation emissions .

Why They Are Used:

To reduce greenhouse gas emissions in the transportation sector and promote the use of cleaner fuels.

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