Economic Evaluation of Proposed Low Carbon Fuel Standard Changes Now Available

The Standardized Regulatory Impact Assessment (SRIA) for the proposed modifications to the Low Carbon Fuel Standard (LCSF) was released earlier this month.  The SRIA provides an economic evaluation of potential changes to the LCFS.  It is a statutory requirement and one of the many steps the California Air Resources Board (CARB) must take prior to updating the regulation.

While not the final draft of proposed changes, the SRIA does offer a glimpse into the possible direction CARB staff could take in modifying the regulation. CRTA continues to be encouraged by staff’s efforts to set more ambitious carbon intensity (CI) targets pre-2030 and beyond. Clean fuels are currently delivering more greenhouse gas and air quality benefits than previously anticipated. This trend is due in large part to the LCFS incentivizing the production of lower carbon fuels. By simply adopting more stringent CI reduction targets, we can accelerate the continued success of the program without chipping away at its core programmatic concepts.

CARB anticipates releasing a formal draft of the proposed LCFS amendments later this Fall for a 45-day public comment period. Staff will present the Board with an informational, high-level presentation of its proposal at their September 28, 2023 meeting. Materials will be posted here after 9 am on the day before (September 27).

As required, the SRIA was submitted to the Department of Finance for review on September 8, 2023. More information about the SRIA can be found in the agency’s announcement.