California Low Carbon Fuel Standard

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California operates the longest-standing and largest Low Carbon Fuel Standard (LCFS) program in North America. The program works to lower the Carbon Intensity (CI) of transportation fuels - the state’s largest source of greenhouse gas emissions. Effectively launched in 2015, the program has undergone multiple amendments, including measures to strengthen and extend the CI reduction targets, culminating in a 90% reduction goal by 2045. California also set a precedent of including a wide range of fuel types and transportation types in its LCFS program.

The LCFS program saw an initial rise in LCFS credit values in early years, followed by a sharp decline, driven by an overwhelming supply of credits from biofuels, ethanol and renewable diesel. Meanwhile, electricity has steadily increased its share of the state’s clean fuel supply. The 2025 amendments to the LCFS program took steps to improve the accuracy of CI scores for biofuels and introduced an automated mechanism to better balance credit supply and demand. These changes are designed to gradually reduce the credit surplus and restore stronger LCFS credit prices.

Verification Requirements

Annual starting in 2027 for 2026 compliance year.

Eligible Electric Assets:

Residential EV Charging
Public EV Chargers (including multi-unit dwellings of at least three units)
Commercial EV Charging
Fast-Charging Infrastructure crediting
Forklifts
Cargo Handling Equipment
Transport Refrigeration Units (TRUs)
Shore-Power for Ocean-Going Vessels

States Eligible for CA LCFS Credits:

CA

Tracking Registry

LCFS Reporting Tool and Credit Bank and Transfer System (LRT-CBTS)

Administering Agency

California Air Resources Board (CARB)

Compliance Period // Credit Issuance Schedule

Annual (Jan-Dec) compliance with quarterly reporting and credit issuance

Credit Useful Life

Credits do not expire

Book-and-Claim RECs Accepted

Yes. Eligible RECs must be from the CAISO region and retired in WREGIS

For updates on the California LCFS markets including pricing, regulatory updates, and market analyses, please visit our blog.

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Carbon Intensity Compliance

The LCFS program establishes Carbon Intensity (CI) standards for gasoline and diesel fuel produced or imported in the state. Fuel suppliers (typically oil and gas companies) that exceed the CI standard may stay in compliance by purchasing credits that are issued to parties (like electric vehicle charger companies or biofuel producers) that supply fuel with a CI that is lower than the standard. Each year, the CI standard decreases in order to continue to support the market structure (i.e. driving demand for credits) and move towards the program goals of a lower carbon fuel system.

Compliance Year	Carbon Intensity Reduction	Gasoline (gCO2e/MJ)	Diesel (gCO2e/MJ)
2019	6.25%	93.23	94.17
2020	7.50%	91.98	92.92
2021	8.75%	90.74	91.66
2022	10.00%	89.50	90.41
2023	11.25%	88.25	89.15
2024	12.50%	87.89	87.89
2025	13.75%	81.70	76.60
2026	20%	80.17	75.16
2027	22%	78.63	73.72
2028	23%	77.10	72.28
2029	25%	75.57	70.84
2030	27%	74.03	69.40
2031	31%	69.27	64.94
2032	36%	64.51	60.48
2033	41%	59.75	56.02
2034	45%	54.99	51.55
2035	50%	50.23	47.09
2036	55%	45.47	42.63
2037	60%	40.71	38.17
2038	64%	35.95	33.71
2039	69%	31.19	29.24
2040	74%	26.44	24.78
2041	77%	23.26	21.81
2042	80%	20.09	18.83
2043	83%	16.92	15.86
2044	86%	13.74	12.88
2045 and subsequent years	90%	10.57	9.91

CA LCFS Management & Brokerage Services

Navigate registration process for eligible assets
Maintain ongoing data reporting requirements with the appropriate state entity
Market credits, transact with counterparties, and remit payment to clients
Provide comprehensive market analysis and regulatory updates

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