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California Air Resources Board Reauthorizes Low Carbon Fuel Standard

On Friday, the California Air Resources Board (CARB) voted unanimously to reauthorize the Low Carbon Fuel Standard.  The LCFS requires a 10 percent reduction by 2020 in the carbon intensity of transportation fuels.  The requirements are based on gasoline and diesel carbon intensity and rely on a full-fuel cycle assessment of fuels.  Fuels like natural gas and renewable natural gas that that have lower carbon dioxide equivalent emissions compared to gasoline and diesel fuel earn credits under the program. The program has become increasingly important to the promotion of natural gas as a larger percentage of renewable natural gas is sold in California for transportation. Reauthorization of the program includes a number of measures intended to strengthen the program including a cap on the price of credits, adjustments to the carbon intensity values of fuels, and a revised phase-in schedule among other things.  In addition to supporting extension of the program, natural gas interests worked with California regulators to ensure that the carbon intensity calculations represent the value provided by natural gas.  Over the past year, NGVAmerica has joined with the California Natural Gas Vehicle Coalition and the Coalition for Renewable Natural Gas to submit numerous letters and comments to CARB.

More information about this program is available here.