On December 19, the California Air Resources Board (CARB) revealed their long-awaited proposal to update and extend the Low Carbon Fuel Standard (LCFS). Among the most significant changes:
- Increases 2030 carbon intensity (CI) targets from 20% to 30%, including a one-time 5% reduction of the CI benchmark in 2025
- Extends CI reduction targets to 90% CI by 2045
- Creates new auto-acceleration mechanism to help stabilize the credit market in the event of rapid decarbonization that outpaces deficits, beginning in 2028
- Phases in some limitations to biomethane crediting
- Reduces credits from eForklifts
- Adds third-party verification requirement to electricity and other fuels
- Expands ZEV infrastructure crediting for medium and heavy-duty charging
Staff published a Preliminary Draft Report, Regulatory Text, and nearly 12 total documents on its rulemaking page. These 500+ pages make for a good read over the holiday break.
What to Watch for Next
The agency indicated a formal regulatory notice will be issued in early January 2024, which kicks off a 45-day public comment period. The proposed regulations can then be adopted at a subsequent board meeting, potentially as early as March 21.
Check back here for more analysis on these proposed changes!Tweet