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In 2021, the Washington State Legislature passed HB 1091 to create the Clean Fuel Standard (CFS) program. The Washington State Department of Ecology began developing program rules in July 2021, and the rules were formally approved in November 2022. The CFS program, which started on January 1, 2023, aims to reduce the carbon intensity (CI) of transportation fuels, which is the largest source of greenhouse gas emissions in Washington. The program requires fuel suppliers to gradually reduce the CI of transportation fuels to 20% below 2017 levels by 2034. The CFS program includes a credit system where credits are issued per metric ton of CO2 equivalent reduced.
States Eligible for WA CFS Credits:
Tracking Registry
Compliance Year
For updates on CFS markets including pricing, regulatory updates, and market analyses, please visit our blog.
Learn moreThe Washington Clean Fuel Standard (CFS) applies to the sale or supply of any fuel in Washington. Fuel producers and importers are the primary regulated parties. Regulated parties that exceed the maximum carbon intensity (CI) compliance limit may meet compliance by purchasing credits that are issued to regulated parties with an average CI that is below the maximum CI compliance limit. The CFS enforces a declining CI curve every year to ensure the continuous reduction of the transportation fuel industry’s environmental impact.
From 2022 to 2024, spot market pricing for WA-CFS credits has ranged from $22 to $107 per credit. Click here to see the recent pricing.
The Credit Clearance Market (CCM) is held at the end of the year, during which all regulated parties that have an end-of-year deficit must purchase sufficient credits pro-rata to meet compliance. The CCM places a price cap on credits that essentially acts as a market cap for all credits sold throughout the year.
Regulated parties must report using the Washington Fuels Reporting System (WFRS) on a quarterly schedule. Please click here to view the reporting schedule.
As of the 2024 regulation, credits do not expire.
