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For nearly two years, the staff of the California Air Resources Board (CARB) has been developing amendments to the Low Carbon Fuel Standard (LCFS) regulation. Currently, the LCFS requires California transportation fuel suppliers to reduce greenhouse gas (GHG) emissions by reducing the average carbon intensity (CI) of gasoline and diesel fuel by 10% in 2020 from a 2010 baseline. Compliance is achieved by blending lower CI alternative fuels and/or buying LCFS credits. In March 2018, CARB released its proposed revisions to the program and supporting documentation, which are available on CARB's website.

On April 27, 2018, after receiving the staff proposal and public testimony, the CARB Board directed staff to move forward with the amendments and to make a number of revisions that will be considered for final approval by the Board this fall. The proposed changes include relaxing the 2020 CI standard from 10% to 7.5% and requiring a 20% CI reduction by 2030. The amendments also provide increased credits for use of electricity and hydrogen as transportation fuels such that the amount of credits provided will exceed the actual greenhouse gas (GHG) reductions they provide. Other significant changes include the proposed requirements for third-party verification of alternative fuel CI values and quarterly reports, as well as revised modeling procedures used to estimate CI values for all transportation fuels. Assuming it is approved by the Board this fall, the revised regulation will become effective on January 1, 2019.

For more information or compliance assistance (compliance planning, credit calculations, fuel pathway applications, or reporting assistance), please contact Alex Marcucci of Trinity's Mobile Source and Fuels business line.