California has updated its Low Carbon Fuel Standard (LCFS) in a bid to attract more investments into cleaner fuel and transportation technologies, with the ambitious goal of reducing CO2 emissions in the transportation sector by 90% by 2045.
The newly announced updates to the LCFS aim to cut the carbon intensity of the stateās fuel mix by 30% by 2030, ultimately reaching a 90% reduction by 2045. Additionally, the revisions will provide increased support for zero-emissions infrastructure, particularly for medium- and heavy-duty vehicles, and expand the eligibility for transit agencies to generate credits under the LCFS program.
The LCFS functions as an emissions trading system, where producers who fail to meet zero-emission targets must purchase credits from those who achieve them. This system has driven over $4 billion in annual private-sector investment into the stateās cleaner transportation sector, according to the California Air Resources Board (CARB).
Much of the proceeds generated from the LCFS are reinvested into low-income communities, with funds directed toward establishing electric vehicle (EV) chargers and hydrogen fueling stations. Over the next decade, CARB expects to invest around $4.8 billion, also targeting zero-emission infrastructure in remote areas across the state.
California continues to lead the nation in phasing out combustion engine vehicles. In 2023, CARB implemented the “Advanced Clean Fleets” rule, which bans the sale of new trucks with combustion engines starting in 2036. Additionally, the sale of new gasoline-powered cars will be prohibited after 2035.
The state has historically received a waiver from the U.S. Environmental Protection Agency (EPA), allowing it to set stricter vehicle emission standards than other states. However, the future of these clean air regulations may face uncertainty if federal policies shift under the incoming administration.
Source: arb.ca.gov