CARB Previews Future Changes to California Low Carbon Fuel Standard

December 9, 2021

On December 7, 2021, the California Air Resources Board (CARB) held a public workshop to preview potential changes to the groundbreaking California Low Carbon Fuel Standard (LCFS) program, which has served as a model for other low carbon fuel programs across the country.  CARB is accepting written public comments on the concepts presented in the workshop through January 7, 2022.

In keeping with these broad principles, CARB staff presented a number of topics on which they are requesting input over the next month. The topics on which CARB is seeking input are outlined in the staff presentation, but some of the higher-profile topics on which CARB invites comment include:

  • Expanded Incentives for Hydrogen as a Transportation Fuel. Staff presented a number of potential measures to incentivize the use of low-CI hydrogen as a transportation fuel on which CARB is seeking comment, including:
    • Allowing for book-and-claim accounting so that credits may be generated for low-CI hydrogen injected into hydrogen pipelines. According to CARB staff, this would expand LCFS crediting opportunities for low-CI hydrogen injected into regional hydrogen pipelines, aligning LCFS incentives with the development of regional hydrogen hubs to be funded under the federal infrastructure bill signed into law on November 15, 2021.
    • Developing a dedicated crediting mechanism for hydrogen refueling infrastructure (HRI) for medium- and heavy-duty vehicles.
    • Defining new energy economy ratios (EERs) for emerging zero-emission fuel-vehicle combinations, including for medium- and heavy-duty hydrogen vehicles.
    • Allowing hydrogen production facilities not co-located with a refinery to generate credits under the refinery investment provision.

Read more here.

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