The Office of Administrative Law (OAL) has released details on its decision to disapprove the California Air Resources Board’s (CARB) amendments to the Low Carbon Fuel Standard (LCFS).

CARB approved amendments to refine the LCFS Program, which promotes lower-carbon transportation fuels, on November 8, 2024. However, the OAL rejected the proposal on February 18, 2025, due to clarity concerns, such as ambiguous language, undefined terms, and presentation issues that could confuse affected parties. The OAL also identified procedural issues requiring non-substantive adjustments to certain text and incorporated documents to comply with Administrative Procedure Act (APA) requirements. CARB has until June 25, 2025 (120 days), to submit revised regulations, with significant changes subject to a 15-day public comment period.

The OAL’s disapproval highlights several provisions that may impact RNG production from dairy digesters, particularly regarding credit calculations, feedstock tracking, and Executive Officer discretion. As a result, the decision has the potential to impact industry operations.

New RNG projects could be delayed due to potential revisions in the implementation timeframe, affecting planning for investors and operators. Existing projects might experience uncertainty regarding credit generation. Updated reporting standards might increase administrative efforts for producers operating dairy digesters. Additionally, opening a 15-day comment period could invite further scrutiny and criticism from opponents of the amendments.

Over the coming months, CRTA will be actively reviewing and engaging in the public comment period to shape the outcome and advocate for a clear, practical regulatory framework that balances environmental goals and industry interests. We encourage affected stakeholders to collaborate with industry and legal experts to better understand the implications to your operations.