ARB Adopts LCFS Amendments

At its September 2018 Board Hearing, the California Air Resources Board (CARB) unanimously adopted amendments to the Low Carbon Fuel Standard (LCFS). The Board took comments from a broad array of interested stakeholders, mostly in support of the amendments. CARB’s news release summarizing its action is here. The Final Regulation Order is here. The proposed amendments would extend the program and require a 20% reduction in carbon intensity of transportation fuels by 2030. The Amendments also create new opportunities for generating credits from electric vehicle charging and other alternative fuels. Once approved by the California Office of Administrative Law, these changes will take affect on January 1, 2019.

During the September 28^th Board Hearing, CARB received comments from stakeholders on several aspects of the redesigned LCFS program:

• Carbon capture and sequestration (CCS) amendments. Stakeholders expressed support for CCS, with many parties commenting on the need for inclusion of CCS in the LCFS program, and potential value of CCS as a model for other states, and as a means of reaching California’s goals under SB 100 (100% clean energy standard by 2045). A number of parties supporting the CCS advocated for future work on risk-based verification and monitoring program, as recommended by NRDC.

• Zero Emission Vehicle (ZEV) Fueling Infrastructure Pathways. A number of parties commented in support of the addition of new 15-day language addressing credit generation for hydrogen refueling and DC fast charging (DCFC). These provisions would create new opportunities for generating LCFS credits based on the capacity of fueling infrastructure (as distinguished from the quantity of fuel dispensed).

• Incremental EV crediting mechanism. These provisions will allow load serving entities (LSEs) and various types of EV service providers (EVSPs) to generate LCFS credits when they demonstrate that EV charging occurred with a lower carbon intensity than the state-wide average carbon intensity for electricity. The amended regulations will create opportunities for LSEs and EVSPs to attribute renewable electricity to EV charging sessions and generate additional LCFS credits beyond the credits that are already awarded to the Electric Distribution Utilities.

• Clean Fuel Rebates. Many commenters spoke in support of the up to $2000 point-of-purchase rebate program incorporated into the new amendments. The Board complimented the coalition of EDUs, automakers and dealers that developed the rebate program.

If you have questions about this development, please contact Brian Biering at bsb(at)eslawfirm.com or Lynn Haug at lmh(at)elsawfirm.com.