Published by Todd Bush on November 11, 2024
The California Air Resources Board on Friday voted to approve updates to the Low Carbon Fuel Standard (LCFS). The updates raise the carbon intensity reduction targets from 20% to 30% in 2030 and to 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.
The new ruling also limits credit generation for virgin oil feedstocks and prioritizes waste-based fuels and phases out avoided methane credits from dairies that provide fuel for combustion trucks and buses.
>> In Other News: Why the Call for Permanent Carbon Removals is Growing Louder
The LCFS to date has reduced the carbon intensity of California’s fuel mix by almost 13% and displaced 70% of the diesel used in the state with cleaner alternatives. This has displaced 320 million metric tons CO2 of gasoline and diesel emissions since the program’s inception.
The LA Times noted that last September, CARB estimated that the change could lift gasoline prices 47 cents a gallon, or $6.4 billion a year. Other analysts put the resulting price hike even higher at 65 cents a gallon, or $8.8 billion a year.
CARB is backing off any price hike forecasting, saying that its policy comparison model does not predict gas prices. LCFS requires polluters pay, and how compliance costs are passed down is a business decision. CARB also noted that it is responsible for finding solutions to achieve legislatively mandated climate and air quality targets, and that increased stringency is needed to achieve required emissions reductions.
The Board directed staff to assess any impacts and potential mitigation from the newly adopted amendments on retail gasoline prices every six months and to submit an annual report beginning one year from the effective date of these amendments, and to collaborate with the California Energy Commission in that effort.
The program currently limits the pass-through costs companies can shift to consumers by capping the price of credits that high-carbon-intensity fuel-producing entities are required to purchase for compliance and allowing banking of credits bought at lower prices. Data from third-party commodities markets experts shows the current LCFS pass-through to California consumers is $0.10 per gallon of gasoline. This is consistent with the self-reported data by high-carbon-intensity fuel producers, which reflects an LCFS cost pass-through to consumers of $0.08 to $0.10 per gallon of gasoline.
Follow the money flow of climate, technology, and energy investments to uncover new opportunities and jobs.
Inside This Issue 💧 Duke Energy Florida Unveils Nation's First System Capable Of Producing, Storing And Combusting 100% Green Hydrogen ✈️ Technip Energies’ Hummingbird Technology Powers LanzaJet’s...
Inside This Issue 💰 The $9B Deal That Almost Didn't Happen ⚖️ IMO Rules Understate Benefits of Utilising Captured Carbon, Says GCMD 🌾 Corteva and bp Launch Biofuel Feedstock Joint Venture Etlas 🔬 ...
Inside This Issue 🌽 Nebraska's 3-Plant Ethanol CCS Gamble Pays Off Big 🧊 New Evaporative Crystallizer Design Accelerates Direct-Air Carbon Capture ✈️ From SAF to Solar: DHL’s Bold Steps Toward Net...
Capstone Green Energy Holdings, Inc. (the "Company” or “Capstone”) (OTCQX: CGEH), together with its subsidiaries, a leading provider of clean technology solutions using ultra-low emission microturb...
Duke Energy Florida, a subsidiary of Duke Energy, unveiled its DeBary Hydrogen Production Storage System in Volusia County, marking the first demonstration project in the United States capable of u...
ESG Clean Energy, LLC ("ESG"), developers of Net Zero Carbon Footprints and clean energy solutions for distributed power generation, announced today it has signed a licensing deal with Viking Energ...
LanzaTech Achieves Guaranteed Performance At Japan MSW-To-Ethanol Plant
Collaborative pilot at Kuji facility showcases robust ethanol yields using LanzaTech’s fermentation technology Achieved ethanol yields exceeding guaranteed performance for over 14 consecutive d...
Follow the money flow of climate, technology, and energy investments to uncover new opportunities and jobs.