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Status Review of California’s Low Carbon Fuel Standard

Abstract

Adopted and implemented in 2010, the Low Carbon Fuel Standard (LCFS) was the world’s first policy to address the carbon pollution caused by transportation fuels. A model for similar policies in British Columbia and other U.S. states, the LCFS is designed to reduce greenhouse gas (GHG) emissions, stimulate technology improvements, and help California achieve its climate change goals. The LCFS contributes to California’s overall GHG emission reduction goals under the Global Warming Solutions Act of 2006 (AB 32). It is a performancebased regulation that requires regulated parties (fuel producers and importers to California) to reduce the rated carbon intensity (CI) of the state’s transport fuel mix by at least 10 percent by 2020. It sets declining annual targets, starting with a 0.25 percent reduction in 2011 and reaching a 10 percent reduction by 2020. This report is part of a series providing status reviews on California’s LCFS. The periodic status review series by ITS-Davis provides updates on LCFS compliance and markets, and addresses selected special topics. This fourth report addresses the following: 1. Credits and deficits 2. Carbon intensity of fuels 3. Credit trading and credit prices 4. The Federal Renewable Fuel Standard (RFS2), LCFS, and U.S. biofuel imports 5. Special topics: Carbon prices and interactions with a cap-and-trade, key proposed amendments in re-adoption, Pacific Coast Climate and Energy Action Plan

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