Updated: Feb 22, 2021
The Low Carbon Fuel Standard (LCFS) verification program is relatively new to industry; however, ALG already has considerable experience in this program having assisted multiple petroleum clients evaluate and permit Alternative Fuels projects, as well as submit Refinery Investment Credit applications to CARB. ALG is accredited as a Verification Body in the LCFS program, and is one of the few approved to conduct verification services for all types of reports (Fuel Pathway, Quarterly Fuel Transactions, Petroleum-Based Fuel Reports, and Carbon Capture and Sequestration). This, coupled with our longstanding experience with the AB32 MRR reporting and verification program, enable ALG to provide expert, efficient, and cost-effective consulting to the clients we serve.
The LCFS program is one of the keys measures identified in AB 32 to reduce greenhouse gas (GHG) emissions in California. The LCFS program is designed to reduce GHG emissions in the transportation sector, which is responsible for about 50% of GHG emissions, 80% of ozone-forming gas emissions, and over 95% of diesel particulate matter. The LCFS program sets annual carbon intensity (CI) standards, which reduce over time, for gasoline, diesel, and the fuels that replace them.
LCFS Verification Program
Entities generating credits in the LFCS program must undergo third-party verification for fuel pathway projects, and project-based credits. Fuel pathways credits are assessed based on the carbon intensity score of the transportation fuel produced. Project-based crediting includes activities to reduce GHG emissions in the petroleum supply chain. Credits are evaluated based on the life cycle assessment of the fuel supply chain and the associated reductions.
Does My LCFS Report Need Verification?
Third-party verification is necessary to ensure that validity of the greenhouse gas data reported under LCFS and the value of the credits generated. The LCFS verification framework is consistent with the verification program established under the Cap-and-Trade program. The first round of third-party verification and fuel pathway application validations begin in 2020 (this year). If you qualify as one of the following entities, you may be required to contract for LCFS verification:
Alternative liquid fuel producers and importers
Alternative and fossil liquid fuel exporters if fuel previously reported
Reporters of bio- and fossil propane and CNG/LNG
All fuel pathway holders with site-specific CI data, including low carbon electricity pathways under Tier 2
All fuel pathways holders with biomethane book-and-claim accounting, including renewable hydrogen (SMR) for fueling hydrogen vehicles
Reporters of project-based credits
If you would like to learn more about our experience, and the LCFS services that we provide, please contact Mike Waller (805-764-6003; firstname.lastname@example.org) or Irra Core (805-764-6006; email@example.com)