LCFS is a regulatory program that encourages the adoption of low-carbon fuels over time 

LCFS regulations use an emissions standard called carbon intensity (CI) as a basis for measuring and limiting the carbon emissions associated with a fuel.  CI is a measure of the typical life-cycle CO2 emissions of a fuel, including those associated with sourcing feedstock, producing and transporting the fuel, and burning the fuel.

LCFS defines the CI for individual fuels and a standard CI value that fuels have to meet. Fuel suppliers must either make fuel that is compliant or buy credits that offset CI above the regulatory limit.  Credits are created by producers of fuels with a CI score that is lower than the regulatory limit.

LCFS programs typically set the standard below the typical CI value for traditional fossil fuels (eg gasoline and diesel), and lower the regulatory standard over time to drive the industry toward a mix of lower CI fuels (eg renewable diesel, EV charging) through ongoing investment.

A number of jurisdictions have put in place LCFS regulations:

• California - through the LCFS program administered by CARB

• Washington (the state) - through its Clean Fuels Standard regulation

• Oregon - through its Clean Fuels Program

• British Columbia - through its provincial Renewable and Low Carbon Fuels Requirement

• Canada (nationwide)  - through its Clean Fuels Requirement

• European Union - through its Renewable Energy Directive