On December 19, the California Air Resources Board (CARB) revealed their long-awaited proposal to update and extend the Low Carbon Fuel Standard (LCFS). Among the most significant changes: 

• Increases 2030 carbon intensity (CI) targets from 20% to 30%, including a one-time 5% reduction of the CI benchmark in 2025
• Extends CI reduction targets to 90% CI by 2045
• Creates new auto-acceleration mechanism to help stabilize the credit market in the event of rapid decarbonization that outpaces deficits, beginning in 2028
• Phases in some limitations to biomethane crediting
• Reduces credits from eForklifts
• Adds third-party verification requirement to electricity and other fuels
• Expands ZEV infrastructure crediting for medium and heavy-duty charging

Staff published a Preliminary Draft Report, Regulatory Text, and nearly 12 total documents on its rulemaking page. These 500+ pages make for a good read over the holiday break.

What to Watch for Next

The agency indicated a formal regulatory notice will be issued in early January 2024, which kicks off a 45-day public comment period. The proposed regulations can then be adopted at a subsequent board meeting, potentially as early as March 21.

Check back here for more analysis on these proposed changes!