1. (a) Applicability of the Low Carbon Fuel Standard. Except as provided in this section, the California Low Carbon Fuel Standard regulation, California Code of Regulations (CCR), title 17, sections 95480 through 95503 (collectively referred to as the “LCFS”) applies to any transportation fuel, as defined in section 95481, that is sold, supplied, or offered for sale in California, and to any person who, as a fuel reporting entity defined in section 95481 and specified in section 95483, is responsible for reporting a transportation fuel in a calendar year. The types of transportation fuels to which the LCFS applies include:

   1. (1) California reformulated gasoline (“gasoline” or “CaRFG”);
   2. (2) California diesel fuel (“diesel fuel” or “ULSD”);
   3. (3) Fossil compressed natural gas (“Fossil CNG”), fossil liquefied natural gas (“Fossil LNG”), or fossil liquefied compressed natural gas (“Fossil L-CNG);
   4. (4) Bio-CNG, bio-LNG, or bio-L-CNG;
   5. (5) Electricity;
   6. (6) Compressed or liquefied hydrogen (“hydrogen”);
   7. (7) A fuel blend containing greater than 10 percent ethanol by volume;
   8. (8) A fuel blend containing biomass-based diesel;
   9. (9) Denatured fuel ethanol (“E100”);
   10. (10) Neat biomass-based diesel (“B100” or “R100”);
   11. (11) Alternative Jet Fuel;
   12. (12) Propane; and
   13. (13) Any other liquid or non-liquid fuel.

2. (b) Opt-In Fuels. Each of the following alternative fuels (“opt-in fuels”) is presumed to have a full fuel cycle, carbon intensity that meets the compliance schedules set forth in sections 95484(d) through (f) through December 31, 2030. A fuel provider for an alternative fuel listed below may generate LCFS credits for that fuel only by electing to opt into the LCFS as an opt-in fuel reporting entity pursuant to section 95483.1 and meeting the requirements of this regulation:

   1. (1) Electricity;
   2. (2) Bio-CNG;
   3. (3) Bio-LNG;
   4. (4) Bio-L-CNG;
   5. (5) Alternative Jet Fuel; and
   6. (6) Renewable Propane.

3. (c) Exemption for Specific Fuels. The LCFS regulation does not apply to:

   1. (1) An alternative fuel that:

      1. (A) is not a biomass-based fuel; and

      2. (B) is supplied in California by all providers of that particular fuel for transportation use at an aggregated quantity of less than 420 million MJ (3.6 million gasoline gallon equivalent) per year;

         A fuel reporting entity that believes it is subject to this exemption has the sole burden of proving to the Executive Officer's satisfaction that the exemption applies to the entity.

   2. (2) Fossil jet fuel.
   3. (3) Any deficit-generating fuel used in military tactical vehicles and tactical support equipment as defined in title 13, CCR, section 1905(a) and CCR, title 17, section 93116.2(a)(38), respectively.
   4. (4) Any credit-generating fossil CNG or fossil propane dispensed at a fueling station with total throughput of 150,000 gasoline-gallons equivalent or less per year. The exemption for fossil propane dispensing stations expires January 1, 2021, when the use of that fuel in heavy-duty or off-road applications becomes deficit generating. The exemption for fossil CNG dispensing stations expires January 1, 2024, when the use of that fuel in heavy-duty or off-road applications becomes deficit generating.

4. (d) Exemption for Specific Applications. The LCFS regulation does not apply to any transportation fuel used in the following applications:

   1. (1) Locomotives not subject to the requirements specified in CCR, title 17, section 93117; and
   2. (2) Ocean-going vessels, as defined in CCR, title 17, section 93118.5(d). This exemption does not apply to shore power provided to ocean-going vessels at-berth, nor to recreational and commercial harbor craft, as defined in CCR, title 17, section 93118.5(d); and
   3. (3) Any deficit-generating fossil propane and CNG used in school buses purchased prior to January 1, 2020.
5. (e) Nothing in this LCFS regulation (Cal. Code Regs., tit. 17, §§ 95480 et seq.) may be construed to amend, repeal, modify, or change in any way the California reformulated gasoline regulations (CaRFG, Cal.Code Regs., tit. 13, §§ 2260 et seq.), the California diesel fuel regulations (Cal.Code Regs., tit. 13, §§ 2281-2285 and Cal. Code Regs., tit. 17, § 93114), or any other applicable State or federal requirements. A person, including the regulated entity as that term is defined in the LCFS regulation, who is subject to the LCFS regulation or other State and federal regulations, shall be solely responsible for ensuring compliance with all applicable LCFS requirements and other State and federal requirements, including the CaRFG requirements and obtaining any necessary approvals, exemptions, or orders from either the State or federal government.
6. (f) Transportation fuel derived from palm oil or palm derivatives is ineligible for LCFS credit generation. Any volumes of transportation fuel derived from palm oil or palm derivatives reported through the LCFS Data Management System must be assigned the ULSD carbon intensity found in Table 7-1.
7. (g) For projects that break ground after December 31, 2029, pathways for bio-CNG, bio-LNG, and bio-L-CNG used in CNG vehicles are ineligible for LCFS credit generation after December 31, 2040. Any volumes of bio-CNG, bio-LNG, and bio-L-CNG used in CNG vehicles reported through the LCFS Data Management System after December 31, 2040, must be assigned the ULSD carbon intensity found in Table 7-1.
8. (h) Effective January 1, 2030, hydrogen dispensed as a vehicle fuel must comprise at least 80 percent of the following: Renewable hydrogen, hydrogen produced with accompanying carbon capture and sequestration technology, or a combination of renewable hydrogen and hydrogen produced with accompanying carbon capture and sequestration technology. Any volumes of hydrogen that do not meet the requirements of this subsection must be assigned the ULSD carbon intensity found in Table 7-1, and an EER of 1. Effective January 1, 2035, hydrogen produced using fossil gas as a feedstock is ineligible for LCFS credit generation unless biomethane attributes are matched to 100 percent of the hydrogen production as described in section 95488.8(i)(2) or 100 percent of the hydrogen is produced with accompanying carbon capture and sequestration technology.
9. (i) Biomass-based diesel produced from soybean oil, canola oil, and sunflower oil is eligible for LCFS credits for up to 20 percent combined of total biomass-based diesel annual production reporting, by company, based on the following transaction types: production in California, produced for import, and import. Any reported quantities of biomass-based diesel produced from soybean oil, canola oil, and sunflower oil in excess of 20 percent on a company-wide basis will be assigned a carbon intensity equivalent to the carbon intensity benchmark shown in Table 2 in section 95484(e) for the applicable data reporting year, or the certified carbon intensity for the associated fuel pathway -- whichever is greater. For companies which have submitted a biomass-based diesel pathway certification application under CA-GREET3.0 or which have a certified biomass-based diesel pathway prior July 1, 2025, this provision takes effect beginning January 1, 2028.

Note: Authority cited: Sections 38510, 38560, 38560.5, 38562.2, 38571, 38580, 39600, 39601 and 43018, Health and Safety Code. Reference: Sections 38501, 38510, 39515, 39516, 38571, 38580, 39000, 39001, 39002, 39003, 39515, 39516 and 43000, Health and Safety Code; Section 25000.5, Public Resources Code; 42 U.S.C. Section 7545; and Western Oil and Gas Ass'n v. Orange County Air Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr. 249 (1975).

History

1. New section filed 1-12-2010; operative 1-12-2010 pursuant to Government Code section 11343.4 (Register 2010, No. 3).

2. Amendment filed 11-26-2012; operative 11-26-2012 pursuant to Government Code section 11343.4 (Register 2012, No. 48).

3. Repealer and new section filed 11-16-2015; operative 1-1-2016 (Register 2015, No. 47).

4. Amendment filed 1-4-2019; operative 1-4-2019 pursuant to Government Code section 11343.4(b)(3) (Register 2019, No. 1).

5. Amendment of subsections (b) and (c)(2), new subsections (f)-(i) and amendment of Note filed 6-27-2025; operative 7-1-2025 (Register 2025, No. 26).