The California Air Resources Board (CARB) voted last Friday to approve stricter policies to the state's Low Carbon Fuel Standard (LCFS) following nearly eight hours of testimony from the program's supporters and opponents. Despite criticism arguing that the stricter policies could result in increased fuel prices, CARB ultimately voted 12 to 2 in favor of the updates.
The LCFS, in place since 2011, is designed to boost the use of low-carbon fuels to help cut greenhouse gas emissions from the transportation industry, which contributes roughly 50 percent of the state's carbon emissions. The rule requires fuel manufacturers to purchase tradable credits if their fuels generate more CO2 emissions than a base level set by regulators. Low-carbon fuel and gas refiners can also generate sellable credits.
This resulted in increased production and usage of biodiesel and renewable diesel fuels. Both have since become popular alternatives to traditional diesel for medium- and heavy-duty vehicles.
[Related: Trucking groups make the case for renewable fuels in California]
The approved updates set targets to cut carbon intensity of the state's transportation pool by 30 percent by 2030 and 90 percent by 2045. The latest amendments also include additional support for zero-emissions infrastructure aimed at medium- and heavy-duty vehicles, and to boost the number of available credits for transit agencies. There's also now a cap on the usage of soy and canola oils, and a 2031 prohibition on hydrogen produced from fossil gas feedstocks.
More detailed LCFS updates include:
- Providing billions of additional dollars to fund zero-emission vehicle charging and hydrogen fueling infrastructure, including new crediting opportunities for medium - and heavy-duty refueling infrastructure, to support implementation of California’s zero emission vehicle regulations.
- Increasing incentives for infrastructure in low-income neighborhoods and remote locations and ensuring that historically underserved communities receive needed investment to reduce emissions and provide equitable access to a clean air future.
- Phasing out avoided methane crediting associated with the use of biomethane used as a combustion fuel, but extending the use of biomethane for renewable hydrogen to align with goals outlined in the 2022 Scoping Plan – the state’s plan for reducing climate-warming emissions and reaching carbon neutrality.
CARB's data indicates the LCFS has, to date, decreased the carbon intensity of the state's fuel mix by nearly 13 percent, thus eliminating 70 percent of the traditional diesel used previously.
“The proposal approved today strikes a balance between reducing the environmental and health impacts of transportation fuel used in California and ensuring that low-carbon options are available as the state continues to work toward a zero-emissions future,” said CARB Chair Liane Randolph. “Today’s approval increases consumer options beyond petroleum, provides a roadmap for cleaner air, and leverages private sector investment and federal incentives to spur innovation to address climate change and pollution.”
Opponents, meanwhile, expressed deep concern that the approved measures will result in higher gasoline prices.
"Many believe this will amount to a 65 cent increase ultimately in fuel prices. We don't disagree," said Joe Rajkovacz, director of governmental affairs & communications for the Western States Trucking Association.
CARB is adamant this won't be the case despite releasing an analysis last year that predicted gas prices could see an average 37 percent increase per gallon beginning this year through 2030. Today, however, CARB insists models can't always accurately predict fuel prices.
"CARB does not and has never predicted fuel pump prices, nor does the Board or any other state agency set those prices or determine regulatory pass-through costs. That is purely a business decision by oil companies," said Dave Clegern, CARB public information officer.
