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LCFS Enforcement

This page last reviewed January 22, 2018


LCFS Tipline 

Background


The Low Carbon Fuel Standard (LCFS) enforcement program is designed to ensure that reported emission reductions are real, and to promote a level playing for all fuel suppliers.  

Submitting a Tip


If you would like to submit any tips related to the LCFS Enforcement Program, please report your tip to LCFSEnforcement@arb.ca.gov or via phone:

  • For Northern California: Rachel Connors at (916) 229-0513.
  • For Southern California: Thomas Lopez at (626) 450-6168.

LCFS Enforcement Activities

Listed below are administrative account balance adjustments and notice of violations by Air Resources Board (ARB) pursuant to Low Carbon Fuel Standard (LCFS) regulation

For more information please contact William Brieger at William.Brieger@arb.ca.gov.

Notices of Violation 

Date of NOV Company Name Description
July 22, 2015 Paramount Petroleum The company’s annual reports showed net deficit balances for 2013 and 2014.

Settlements 

Date Settled Settlements Summary
September 5, 2017Kern Oil and Refining CoKern Oil and Refining Co Settlement
April 4, 2017 SK Energy Americas, Inc. SK Energy Americas, Inc. Settlement

Account Balance Adjustments 

Listed below are administrative adjustments to participants’ accounts in the LCFS Reporting Tool and Credit Banking and Transfer System.  The adjustments reflect corrections to inaccurately reported data discovered through audits or self reported to ARB.  In some instances the data correction retroactively improves a company’s credit balance; because the regulation does not allow such retroactive benefits, the credit account balance was administratively returned to its pre-correction status.

Date of Adjustment Company Name Description
January 9, 2018Musket CorporationIn 2016, Musket Corporation failed to report purchases and sales of CARBOB, ULSD, and Biodiesel supplied to California. Those volumes were added to the system. ARB then adjusted the credits retroactively generated by removing 10,575 credits from Musket's account.
November 13, 2017Clean EnergyBetween 2011 and 2017, Clean Energy processed gas into LNG using energy that was not fully reflected in the CI scores for numerous pathways.  ARB adjusted the CI values for those pathways to accurately reflect the liquefaction process, then invalidated and removed 109,226* credits from Clean Energy's account.
November 13, 2017Shell Energy North America (US), L.P. Between 2015 and 2016, Shell Energy North America (US), L.P. processed gas into LNG using energy that was not fully reflected in the CI scores for numerous pathways.  ARB adjusted the CI values for those pathways to accurately reflect the liquefaction process, then invalidated and removed 2,752 credits from Shell Energy's account.
November 13, 2017Element Markets Renewable Energy, LLCIn 2014 and 2016, Element Markets Renewable Energy, LLC processed gas into LNG using energy that was not fully reflected in the CI scores for numerous pathways.  ARB adjusted the CI values for those pathways to accurately reflect the liquefaction process, then invalidated and removed 521 credits from Element Markets's account.
November 3, 2017Tesoro Marketing and Refining Between 2011 and 2016, Tesoro Refining and Marketing Company misreported production of CARBOB and ULSD and misreported ethanol imports to California.  Volumes were corrected in the LRT-CBTS.  ARB then adjusted Tesoro’s net balance by removing 24,005 credits.
September 27, 2017City of DublinIn Q3 2016, City of Dublin registered in the LCFS reporting tool. They submitted a Q1 2016 report which is prior to their opt-in quarter. Because the regulation does not allow retroactive credit generation, ARB then adjusted the credits generated by removing 7 credits from City of Dublin's account.
September 7, 2017CleanWorldBetween 2013 and 2016, CleanWorld reported production of Fuel Pathway Code CNG005, bio-cng from anaerobic digestion. ARB determined that production did not include co-production of compost. 116 credits corresponding to the ineligible co-product factor were removed from CleanWorld's account.
May 10, 2017 Valero Marketing and Supply In 2016, Valero Marketing and Supply failed to report imports of ethanol supplied to California. Those volumes were added to the system. ARB then adjusted the credits generated by removing 2,708 credits from Valero's account.
May 3, 2017 Kern Oil and Refining Co. Between 2013 and 2015, Kern Oil & Refining reported production of Fuel Pathway Code RNWD003, renewable diesel from tallow.  ARB determined that production batches made using corn oil – a different feedstock than called for in the pathway – were not eligible to generate credits under any pathway.  15,838 credits corresponding to the ineligible batches were removed from Kern Oil & Refining Co.'s account.
April 4, 2017 Kinergy Marketing LLC In Q1 2016 volumes of ethanol were incorrectly reported while balancing gains and losses of inventory. ARB adjusted the credits generated by removing 64 credits from Kinergy's account.
March 30, 2017 WM Renewable Energy L.L.C. In Q3 2016, WM Renewable Energy overreported LNG volumes.  The company corrected the volumes in the system which temporarily resulted in a net loss of 607 deficits. ARB then added these 607 deficits to WM Renewable Energy's account.
February 7, 2017 Crimson Renewable Energy LP The fuel volumes reported by Crimson Renewable Energy LP between 2012 and 2016 had not been corrected for temperature.  Crimson recalculated to account for temperature, reducing the volumes and the corresponding credits by 4,405.  
*CARB's November 13, 2017 Credit adjustment removed 109,534 credits from Clean Energy’s account.  This adjustment included 308 credits generated through fuel pathway code CNGLF250. The fuel pathway CNGLF250 is a CNG pathway, but was mistakenly included in the adjustment as an L-CNG pathway. To correct this mistake, 308 credits were reinstated to Clean Energy’s account on January 3, 2018.
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