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newsrel -- California's Low Carbon Fuel Standard compliance rate is 98 percent

Posted: 17 May 2016 13:58:34
Please consider the following news release from the California
Air Resources Board: http://bit.ly/1W0wVn4



May 17, 2016



Dave Clegern
(916) 322-2990

California’s Low Carbon Fuel Standard compliance rate is 98

Low-carbon and renewable fuels have replaced more than 5.3
billion gallons of gasoline and 1.2 billion gallons of diesel
fuel since the program began

SACRAMENTO — The California Air Resources Board’s report on the
state of the Low Carbon Fuel Standard (LCFS) program for the
compliance year 2015 indicates a compliance rate of 98 percent,
with a total of 5.49 million credits generated in the year. 
These credits are roughly the same as removing 1 million cars
from the roads for a year in terms of preventing greenhouse gases
from entering the atmosphere. 

“This program is succeeding: California has a thriving market for
new, low-carbon fuels, there is an ample supply of low-carbon
fuel credits, and the marketplace and the regulation provide
businesses with the flexibility needed to comply,” said CARB
Chair Mary D. Nichols. “The Low Carbon Standard is fully
delivering on its promise to drive innovation and create a
thriving market that delivers clean, low-carbon fuels for the
trucks, buses and cars in California.”

The Low Carbon Fuel Standard took effect in 2011, and is designed
to lower carbon emissions generated at every stage of a fuel’s
production. In California, transportation is the single largest
sector for climate impact; responsible for 37 percent of the
state’s total greenhouse gas emissions. 

The transportation sector is also responsible for the majority of
the state’s air pollution which adversely impacts public health. 
Thus, by encouraging the production and use of clean fuels in
California the LCFS is reducing emissions of other pollutants of

To date renewable and low-carbon fuels rewarded under the LCFS
have displaced 5.3 billion gallons of gasoline, and 1.2 billion
gallons of diesel fuel. Overall, the program has generated 16.55
million credits with a current balance (that is, over-compliance)
of 7.41 million credits. Each credit is the equivalent of 1
metric ton of carbon dioxide. 

The 2015 annual reports demonstrate exceedingly high levels of
overall compliance.  Of the 52 entities who sell high carbon
fuels, and have an obligation under the program, only a single
company – Astra Oil Company LLC – ended the compliance period
with a small shortfall of 337 credits and will be required to
purchase the necessary credits from the LCFS Credit Clearance
Market (CCM) between June 1 and July 31, 2016.  

The CCM is a cost containment mechanism introduced into the
regulation last year and allows a company to purchase credits
offered for sale by producers who have generated a surplus. 
Sellers in the CCM voluntarily offer them into the pool of
credits to be made available to other companies that may require
them for compliance purposes.  Companies that have pledged
credits to the CCM in 2016 include BP Products, North America
Inc.; Calgren Renewable Fuels; and Titan El Toro LLC.

The 2015 Fourth Quarter report can be found here:

Full year data can be found here:

California is in a drought emergency.
Visit www.SaveOurH2O.org for water conservation tips.

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