Washington’s Clean Fuel Standard (CFS) FAQs

Each CFS credit represents the reduction of one ton of CO2-equivalent on a life-cycle emissions basis. Fuel suppliers are able to reduce the CI of their fuels through several different activities, including: manufacturing or blending low-carbon biofuels into the fuel they sell, enhancing fuel production efficiency, or purchasing CFS credits.

Producers of low-carbon fuels (e.g., biofuels, electricity, and alternative jet fuel) are allowed to participate and create credits. Owning or operating charging or fueling equipment for electric vehicles (EVs) or hydrogen fuel cell electric vehicles (FCEVs) is a common way to generate credits under the CFS.  

Entities that install publicly-accessible low-carbon fueling infrastructure (e.g., DC fast chargers and hydrogen fueling infrastructure) are also able to generate credits. Infrastructure crediting is based on the capacity of the site infrastructure and establishes a credit baseline that the project can rely on receiving each quarter. Capacity credits generated by charging or fueling site installation play an important role in increasing infrastructure availability and expanding adoption of low-carbon technology.

Suppliers and producers of regulated fuels (e.g., gasoline, diesel, ethanol and blends, biomass-based diesel and blends, and natural gas) are mandated to participate in the program. These fuels generate deficits in proportion to how much higher their CI is than the CI reduction target in a given compliance year.Exempt fuels such as aviation fuel, marine fuel, railroad fuel and off-road fuel (for agriculture, mining, logging, or other activities) do not generate deficits.

Yes, regulated and opt-in (credit-generating) entities that produce or import their fuel into Washington are able to participate. Additionally, credits can be generated or transacted only for fuels that are supplied in Washington. Record keeping is required for all transactions of transportation fuel imported, sold, or supplied for use in the state. All transportation fuel must also have an assigned CI score through a fuel pathway to be able to participate in the CFS program. A fuel pathway CI score is based on the sum of the GHGs emitted during each stage of a fuel’s production and use.

The CFS program is now live, with regulated entities generating deficits and opt-in low-CI fuel users able to generate credits. The first compliance period runs through the end of 2024, so credit trading may be limited for some time

To get the most out of the CFS, participants should keep up with quarterly and annual reporting through the WFRS. There are user guides for participation best-practices, however, working with an advisor can eliminate the headaches of data calculation and rigorous reporting requirements. With the help of a clean fuels advisor, like 3Degrees, regulated entities can ensure they are meeting compliance and opt-in entities can be assured they are receiving maximum value from program participation.