LCFS Modernization
Summary
The Union of Concerned Scientists (UCS) advocates for several reforms to California's Low Carbon Fuel Standard (LCFS) to address a decline in credit prices and prevent the program from becoming a regressive burden on low-income drivers. Key recommendations include capping lipid-based biofuels, phasing out credits for 'avoided methane emissions' from out-of-state manure lagoons, and excluding carbon capture used for enhanced oil recovery. UCS also calls for redirecting EV credit value to support overburdened populations and requiring strict community engagement for hydrogen projects in refinery areas.
Key insights
- The LCFS credit market has experienced a significant price drop, falling from the $200 price point used in the Advanced Clean Fleets Rule Total Cost of Ownership analysis to approximately $80, which threatens associated zero-emission vehicle policies.
- UCS recommends that the California Air Resources Board (CARB) implement a limit on lipid-based biofuels, specifically soy-based renewable diesel, because federal policies like the Renewable Fuel Standard are subsidizing an influx of these fuels and driving down LCFS credit prices.
- The document argues for the phase-out of negative carbon intensity scores and credits for 'avoided methane emissions' from out-of-state manure lagoons, characterizing these as a 'poorly run offset program' that does not help California meet its AB32 targets.
- To prevent the LCFS from becoming a regressive financial burden on low-income drivers of older internal combustion vehicles, UCS proposes redirecting support from EV credits toward overburdened populations via the Clean Fuel Rewards program.
- UCS opposes the use of LCFS credits for carbon dioxide captured for enhanced oil recovery (EOR) and suggests that project-based credits for carbon capture and storage (CCS) be paused until the SB 905 rulemaking process is complete.
Cite the original document
- APA
- Martin, J., & Barad, D. (2023). LCFS Modernization. Union of Concerned Scientists. https://www.ucs.org/sites/default/files/2024-01/ucs-priorities-for-reforms-ca-low-carbon-fuel-standard.pdf
- Chicago
- Martin, Jeremy, and Daniel Barad. LCFS Modernization. Union of Concerned Scientists, 2023. https://www.ucs.org/sites/default/files/2024-01/ucs-priorities-for-reforms-ca-low-carbon-fuel-standard.pdf.
- Wikipedia
- {{cite press release |last1=Martin |first1=Jeremy |last2=Barad |first2=Daniel |title=LCFS Modernization |publisher=Union of Concerned Scientists |date=22 June 2023 |url=https://www.ucs.org/sites/default/files/2024-01/ucs-priorities-for-reforms-ca-low-carbon-fuel-standard.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}
- BibTeX
- @misc{martin2023lcfs, author = {Martin, Jeremy and Barad, Daniel}, title = {{LCFS Modernization}}, publisher = {Union of Concerned Scientists}, year = {2023}, month = jun, url = {https://www.ucs.org/sites/default/files/2024-01/ucs-priorities-for-reforms-ca-low-carbon-fuel-standard.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }
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