California mulls expansion of low carbon fuel scheme

The California Air Resources Board (CARB) is to consider extending the state’s Low Carbon Fuels Standard (LCFS) by ten years to 2030 and double the emissions reduction target from a 10% reduction in 2020 to 20% by 2030.  

If CARB decides to agree to the amendments at an April 27 meeting, suppliers of feedstocks and producers of biofuels in many parts of the US would likely benefit, as most of the low-carbon fuels consumed in California are brought in from outside the state.  

The LCFS aims to cut consumption of fossil fuels and greenhouse emissions from transport through a range of biofuels to renewable electricity and is a major pillar of the state's plans to cut GHG emissions 30% from 1990 levels by 2020 and slash emissions 80% below 1990 levels by 2050. 

Under the LCFS, refineries and fuel importers must phase in reductions of the average carbon intensity of the fuels they sell.

In common with the federal Renewable Fuels Standard, under the LCFS petroleum refiners and importers have the choice of blending biofuels into the fuel they sell, buy credits generated from producers or consumers of low carbon fuels, or both.  

The largest sources of clean fuel credits were ethanol, renewable diesel, biodiesel, electricity and biomethane, the environmental NGO the Union of Concerned Scientists stated in a research note.