LCFS Services

Leveraging the LCFS to speed up transportation decarbonization

3DEGREES LCFS SERVICES IN THE NEWS
feeding cows
3Degrees and New Energy One bring Idaho biogas-based electricity to California electric vehicles
Hydrogen fuel pump
3Degrees Announces First Oregon Clean Fuels Program Credits from Hydrogen and New Advancements in Green Hydrogen

Organizations across the country are tapping into revenue available through California’s Low Carbon Fuel Standard (LCFS) and other statewide market-based incentive programs for their transportation decarbonization initiatives. By accessing these market incentives, both public and private entities can lower their total cost of ownership and infrastructure deployment, subsidize the transition to low-carbon transportation solutions, and accelerate progress toward greenhouse gas reduction goals.


What is the LCFS?

The California LCFS is a statewide market-based policy introduced in 2010 to accelerate the decarbonization of the state’s transportation fuel pool. The regulation forces producers/distributors of petroleum-based fuels to purchase credits from companies using or furthering the use of low carbon fuels.

3DEGREES LCFS SERVICES IN THE NEWS
feeding cows
3Degrees and New Energy One bring Idaho biogas-based electricity to California electric vehicles
Hydrogen fuel pump
3Degrees Announces First Oregon Clean Fuels Program Credits from Hydrogen and New Advancements in Green Hydrogen

Partners in Sustainability

Regional access to transportation market-based incentives is expanding

Clean Fuel Standards (CFS) like the LCFS are expanding across many states and regions in North America and around the world. Broadly speaking, a CFS is a policy that sets a carbon intensity (CI) target for transportation fuels and allows low-carbon or clean fuels to generate credits based on their CI relative to the target in a given year. 

Current CFS programs beyond California include Oregon’s Clean Fuels Program (CFP) and British Columbia’s Low Carbon Fuels Standard (LCFS). Forthcoming CFS programs include Washington’s Clean Fuel Standard (CFS) and Canada’s Clean Fuel Standard (CFS), with several other states and regions in various stages of the legislative process to establish a CFS. 

 

MARKET-BASED INCENTIVES (MBI) PROGRAM ADOPTIONLCFS Map


Active or About to Begin (British Columbia, California, Canada, Oregon, Washington)

Proposed or Exploring (Illinois, Massachusetts, Michigan, Minnesota, Nebraska, Nevada, New Mexico, New York, Ohio, Pennsylvania)

Map current as of Q1 2022

LCFS Program Services

3Degrees helps organizations access the most value possible through the LCFS:

PHASE 1. 
  • Identify all eligible fueling activities under each program
  • Appraise credit value
  • Manage LCFS pathway approval process
PHASE 2. 
  • Manage ongoing reporting and compliance requirements under each pathway
  • Provide assurance for program data quality standards
  • Ensure mandatory reporting deadlines are met
PHASE 3. 
  • Maximize credit generation by matching charging with a cost-effective supply of eligible green power
  • Optimize program revenue through a custom, long-term green power sourcing strategy
PHASE 4. 
  • Secure highest possible return for partners by aggregating credits
  • Shield partners from market risk by arranging custom offtake agreements

Understand the value of the LCFS for your business & how 3Degrees can help:

LCFS PROGRAM BENEFITS FOR EVERY APPLICATION*
Distribution centers & warehouses
  • LCFS makes low-carbon equipment leasing and owning significantly more viable
  • Electric forklifts are especially well-suited to generate revenue to help finance electrifying cargo handling fleet.

Estimated annual credit value:

Forklifts – $1,100
Yard trucks – $7,400

Overland fleets
  • Lowers total cost of ownership and improves the business case for electrification
  • Generate a revenue stream to subsidize fleet electrification in support of broader corporate emissions reduction targets.

Estimated annual credit value:

Class 8 Trucks (semis) – $38,200

Electric vehicle and charging manufacturers
  • Lowers total cost of ownership for fleet customers and owners of EV charging stations
  • Maximize value to your end customers through 3Degrees’ turnkey LCFS monetization program

Estimated annual credit value:
 
Buses – $17,300

EV Charging Stations
  • Create new revenue stream from electric charging occurring at your locations
  • Use available charging data to generate credits and finance additional infrastructure or maintenance costs

Estimated annual credit value:

Level 2 Chargers – $5,700

Public Fast Charging (DCFC)
  • Receive a guaranteed minimum credit generation, regardless of utilization

Estimated annual credit value:
 
Public DCFC (150 kw) – $23,000

LCFS PROGRAM BENEFITS FOR EVERY APPLICATION*
Distribution centers & warehouses
  • LCFS makes low-carbon equipment leasing and owning significantly more viable
  • Electric forklifts are especially well-suited to generate revenue to help finance electrifying cargo handling fleet.

Estimated annual credit value:
Forklifts – $1,100
Yard trucks – $7,400

Overland fleets
  • Helps to lower total cost of ownership and improves the business case for electrification
  • Generate a revenue stream to subsidize fleet electrification in support of broader corporate emissions reduction targets.

Estimated annual credit value:
Class 8 Trucks (semis) – $38,200

Electric vehicle and charging manufacturers
  • Helps to lower total cost of ownership for fleet customers and owners of EV charging stations
  • Maximize value to your end customers through 3Degrees’ turnkey LCFS monetization program

Estimated annual credit value:
Buses – $17,300

EV Charging Stations
  • Create new revenue stream from electric charging occurring at your locations
  • Use available charging data to generate credits and finance additional infrastructure or maintenance costs

Estimated annual credit value:
Level 2 Chargers – $5,700

Public Fast Charging (DCFC)
  • Receive a guaranteed minimum credit generation, regardless of utilization

Estimated annual credit value:
Public DCFC (150 kw) –
$23,000

 

*Assumes that zero-CI electricity is matched with charging, and estimates EV charging based on average utilization rates and charging for each EV application. An average 2021 price for California LCFS credits as reported by CARB was applied to calculate these values.

 

CALCULATE YOUR FLEET POTENTIAL

Check out our interactive LCFS calculator to uncover the revenue potential of your fleet:

Proterra’s ability to help our transit customers easily register and monetize their LCFS credits in an inexpensive and transparent way helps lower the barrier to entry to deploy battery electric buses and chargers. Proterra appreciates working with 3Degrees and their professional approach in accessing the LCFS market.

— Alan Westenskow, Director of Business Development, Proterra

The 3Degrees Difference:

  • Understand your true LCFS revenue potential: 3Degrees offers complete transparency into LCFS credit value and can guarantee maximum LCFS value by accessing zero-CI RECs from our extensive renewable energy portfolio.
  • Trust an industry leader: 3Degrees is the #1 supplier of RECs in N. America and a leading supplier of qualifying RECs to the LCFS market with over 15 years of experience in market-based incentive programs. We have also been operating as experts in ARB compliance programs since 2007.
  • Mitigate LCFS program risk by tapping into regulatory expertise: Our team of transportation and market intelligence experts are deeply steeped in pricing trends, emerging markets, and regulatory frameworks. We help our customers understand all relevant policies and negotiate new market entry strategies.
  • Bring your valuable low-carbon fuel supply to the transportation market: 3Degrees’ team of experts help project developers navigate the complex LCFS pathway approval process. We gather all necessary data, identify the most valuable pathways, and take care of all reporting, monitoring, and verification. To date, we have helped register and generate LCFS credits for over 1,000 pieces of equipment.