What is the Low Carbon Fuel Standard (LCFS)?
The California LCFS is a statewide market-based policy with the goal of decarbonizing California’s transportation fuel mix. The policy requires “deficit generators” — providers of petroleum-based fuels — to purchase credits from “credit generators” — companies providing or utilizing low carbon fuels like electricity, renewable natural gas (RNG) or renewable diesel. While historically transportation policy […]
The California LCFS is a statewide market-based policy with the goal of decarbonizing California’s transportation fuel mix. The policy requires “deficit generators” — providers of petroleum-based fuels — to purchase credits from “credit generators” — companies providing or utilizing low carbon fuels like electricity, renewable natural gas (RNG) or renewable diesel. While historically transportation policy has focused on making vehicles using legacy fossil fuels more efficient, the LCFS focuses on switching to fuels with lower lifecycle emissions.
