CARB Report Finds 100% Compliance with Low Carbon Fuel Standard

The 2016 Compliance Report for the Low Carbon Fuel Standard (LCFS), released today by the California Air Resources Board (CARB), shows 100% compliance with the regulation, presenting further evidence that renewable transportation fuels are rapidly replacing fossil fuels.

“Full compliance is further evidence that the LCFS is working as designed,” says Executive Officer Richard Corey. “This means that cleaner, renewable fuels encouraged by the program are now replacing hundreds of millions of gallons of fossil fuel every year and significantly reducing greenhouse-gas emissions, as well as other pollutants.”

The LCFS requires transportation fuel producers to reduce the carbon intensity of their fuels 10% by 2020. Greenhouse-gas emissions are counted at all stages of production, known as “well-to-wheel” lifecycle analysis.

The LCFS was developed to help California achieve A.B.32’s 2020 reduction target of a return to 1990 levels of greenhouse-gas emissions. CARB says the program is also important for reaching the 2030 emissions reduction target set by the governor and the legislature, requiring 40% below 1990 levels.

Providing consumers with an increasing volume of cleaner fuels, the program enabled renewable liquid fuels to displace over 400 gallons of diesel in 2016, and more than 80 million gallons were displaced by renewable natural gas.

Of the 224 companies reporting in the LCFS, 54 generated credit deficits for fuels with carbon intensity above the desired baseline and were required to make up for the shortfall. All obligations were fulfilled.

In 2016, the industry continued to over-comply with the regulation, generating 9.1 million credits against 6.8 million deficits.

Since the start of the program in 2011, it has generated credits representing 25.6 million metric tons of greenhouse-gas emission reductions. That equals over-compliance of 9.7 million metric tons and means that greenhouse-gas emission reductions are occurring ahead of schedule.

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