California Low Carbon Fuel Standard

California’s Low Carbon Fuel Standard is the first state-level standard designed to shift transportation fuels away from high-carbon petroleum. It establishes separate standards for gasoline and diesel fuel, reducing CO2-e emissions for each by 10% over 2010 levels. It relies on a life-cycle analysis of fuels (using the GREET methodology), including level of feedstock choice and cultivation. It focuses on carbon intensity of fuels as opposed to fuel volume. It was occasioned by the California Global Warming Solutions Act of 2006, and advanced by Executive Order S-01-07. The LCFS reduces air pollution and greenhouse gas emissions by setting a declining carbon intensity target for transportation fuels used in California; producers that don’t meet established benchmarks buy credits from those that do. This system has generated $4 billion in annual private sector investment toward a cleaner transportation sector.

In November, 2024, CARB approved updates to the LCFS that set targets to reduce the carbon intensity of California’s transportation fuel pool by 30% by 2030 and by 90% by 2045. The amendments also increase support for zero-emissions infrastructure, including for medium- and heavy-duty vehicles, and make more transit agencies eligible to generate credits.