Archive for February, 2024

Washington State Considers Changes to Clean Fuel Standard

Posted February 22nd, 2024 by SRECTrade.

The Washington Department of Ecology held a workshop on Thursday to discuss potential rule changes to the state’s Clean Fuel Standard (CFS) which was originally implemented on January 1, 2023. Ecology staff laid out the scope of this rulemaking which is expected to conclude with rule adoption by early 2025. The rulemaking will address the following topics:

  • Sustainable Aviation Fuel (SAF) – align program rules with state legislation passed in 2023 that aims to expand use of SAF.
  • Third-Party Verification – require fuel pathway applications and fuel transaction reports to be verified by accredited verification bodies. Ecology is looking to mirror similar programs in California and Oregon, where both programs are proposing to expand existing verification requirements to include EV charging. Ecology did not clarify whether verification would be required for EVs during the workshop.
  • Expand ZEV infrastructure applicability – current rules allow for certain public fast-charging and hydrogen refueling stations to generate CFS credits based in part on station fueling capacity and not solely on the quantity of fueling. Ecology is considering expanding the current rules to allow for medium and heavy-duty infrastructure to be eligible as well. The California Air Resources Board has proposed a similar expansion of ZEV infrastructure crediting for their Low Carbon Fuel Standard. Ecology also indicated that the current ZEV infrastructure program will soon be implemented.
  • Book-and-claim accounting – Ecology staff propose to update accounting methods for biomethane and electricity.

Ecology clarified that changes to carbon intensity targets and program participation fees would not be considered during this rulemaking.

Public comments from this initial workshop may be submitted by March 24. Ecology will schedule additional workshops in the spring and begin publishing draft rules this summer. Ecology aims to hold a public hearing to consider rule changes in the fall or winter.

Latest Data Shows Largest CA LCFS Credit Surplus

Posted February 16th, 2024 by SRECTrade.

Quarterly data from the California Air Resources Board (CARB) showed the largest ever credit surplus as prices fell to multi-year lows last month. Earlier this week, CARB postponed a March hearing to consider reforms to the LCFS program and may be evaluating stricter carbon intensity targets amidst stakeholder pressure.

In Q3 2023, 2.2 million more credits were generated than deficits, pushing the cumulative credit bank to over 20M credits and 3.6x greater than the average quarterly deficits generated in the prior year. This last metric is significant under the proposed amendments where an auto-acceleration mechanism (AAM) would be triggered under certain market conditions beginning in 2027.

Overall credit generation was up 9% from the previous quarter, driven by increases from the largest credit sources: renewable diesel (12% QoQ), electricity (10%), ethanol (20%), and renewable natural gas (4%). Nearly half of all credits came from bio-derived diesel which now makes up 60% of all diesel fuel consumed in the state.

Growth in credits from EV charging were driven by increases in residential credits awarded to utilities (11%), non-residential charging (17%), and heavy-duty fleet charging (19%). Credits from DC fast-chargers enrolled in the ZEV infrastructure crediting scheme fell by 4%. EVs continue to represent about one-quarter of all credits in the program. 

Oregon Clean Fuels Program Data and Rulemaking Workshop

Data for the Oregon Clean Fuels Program indicated a second straight quarter of net credit gains. In Q3, 686k credits were generated compared to just 624k deficits, a net gain of 62k credits. Last quarter saw a net gain of 81k credits, the largest quarterly increase since 2019. Following the trend in California, renewable diesel has quickly become the largest source of credits in the program, growing by 32% last quarter and 187% year-over-year.  Credits from electric forklifts were unchanged the previous two quarters after falling over 75% in Q1. 

On January 30, the Oregon Department of Environmental Quality (DEQ) held a rulemaking workshop to outline potential changes to the CFP including expanding third-party verification requirements to electricity reporting. The rulemaking will not consider changes to carbon intensity targets which were last updated in 2022. Future workshops are expected March through June. 

CARB Postpones LCFS Hearing to Reconsider Reforms

Posted February 15th, 2024 by SRECTrade.

The California Air Resources Board (CARB) announced yesterday that the March 21 public hearing to consider amendments to the Low Carbon Fuel Standard (LCFS) will be postponed to a later date. CARB plans to hold a workshop sometime in mid-April to “enable additional discussion and re-evaluation of the carbon intensity benchmarks, including the proposed step-down and auto-acceleration mechanism, as well as more consideration of the proposed sustainability guardrails, among other topics.” The 45-day public comment period will still close on February 20. 

CARB’s postponement comes two weeks after the release of quarterly data which indicated the largest ever net credit surplus and as LCFS credit pricing surpasses multi-year lows.

New Mexico Just Passed a Clean Fuel Standard. Which Other States Are Considering Legislation?

Posted February 14th, 2024 by SRECTrade.

The New Mexico Senate approved HB41 by a vote of 26-15 on Tuesday night. The bill now heads to Governor Grisham for signature. Once signed into law, New Mexico will become the fourth state with a clean fuel standard behind Washington, Oregon, and California.  

The bill would require the New Mexico Department of Environment to implement low carbon fuel standard regulations by July 2026. The program would mandate a 20% reduction in carbon intensity by 2030 and a 30% reduction by 2040, while creating mechanisms for generating and trading credits similar to those of existing programs.

Which Other States are Considering Clean Fuel Policy?


Minnesota approved a 100% clean energy standard in 2023 and may be poised to become the next state to pass a clean fuel standard this year. Last week, a working group convened by the legislature delivered a report recommending more moderate carbon intensity targets than those included in the current legislation. Minnesota’s 2024 legislative session concludes on May 20. 

New York

The New York Senate approved S. 1292 in June 2023 but the bill failed to pass in the State Assembly. Clean fuel policy has been considered by New York lawmakers for a number of years but has struggled to gain support with key stakeholders including environmental groups. 


In 2023, lawmakers introduced H.B 5083 and S.B 275 to establish a clean fuel standard for the state. The bill would require a 35% reduction in the carbon intensity of transportation fuels by 2035. The bill has yet to be heard by a legislative committee in the current session and was not included in sweeping climate policies approved last November. 

Several other states are considering clean fuel standard legislation including: Massachusetts, New Jersey, Pennsylvania, Vermont, Hawaii, and Illinois.