CARB: California's LCFS regulation to take effect July 1


   
Kristina Davis
DTN Refined Fuels Market Reporter

   MIAMI, FL (DTN) -- The California Air Resources Board (CARB) is preparing to 
implement its updated Low Carbon Fuel Standard (LCFS) regulation starting July 
1.

   The updated regulation is designed to accelerate investment in zero-emission 
infrastructure and clean fuels to improve public health and save Californians 
billions, according to a CARB statement released Friday. 

   The LCFS works by requiring fuel producers to meet declining carbon 
intensity targets or purchase credits from cleaner producers. Since 2011, the 
program has reduced California's fuel carbon content by nearly 13%, replaced 
75% of diesel use, and generated more than $4 billion annually in private 
investment. The latest update strengthens these goals, targeting a 30% carbon 
reduction by 2030 and 90% by 2045, according to CARB.

   In addition to environmental benefits, CARB projects $12 billion in avoided 
healthcare costs and another $60 billion in climate savings by 2046. The LCFS 
also boosts EV affordability and expands charging infrastructure with more than 
178,000 public chargers.

   Despite industry concerns over potential fuel price hikes, CARB believes 
that any impact will be modest. Officials say the program is designed to be 
cost effective and will be closely monitored with biannual price assessments.

   With final approval in place, the updated LCFS will drive California's push 
to lead on climate and clean transportation, CARB said.

    




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