UC Davis Institute of Transportation Studies

California's Low Carbon Fuel Standard (LCFS) aims to reduce emissions of greenhouse gases (GHGs) by creating financial incentives for innovation and deployment of low carbon fuels. From 2011 through Q4 2012, there was a net excess of 1.285 million credits (metric tons of CO2e); if all available for use, the excess credits represent about half of what is needed to cover the 2013 obligation. During the period, the average fuel carbon intensity (CI) of gasoline and diesel substitutes declined. There was a rise in credit trading and credit trade prices. Feedstock-specific issues are examined.