1. (a) For purposes of fuel pathway carbon intensity determination, all new LCFS fuel pathways certified after January 1, 2019 (or the effective date of this regulation) shall be classified as either a:

   1. (1) Lookup Table pathway;
   2. (2) Tier 1 pathway; or
   3. (3) Tier 2 pathway, as described below.

2. (b) Lookup Table Classification. Pathways falling under this classification are the simplest pathways to use. The Board's staff develops Lookup Table pathway CI values using the CA-GREET4.0 model. Input variables and assumptions are provided in the Technical Support Documentation for Lookup Table Pathways (August 12, 2024), which is incorporated herein by reference.

   1. (1) Lookup Table Pathways That Do Not Require a Fuel Pathway Application. The following pathways are developed using average values for inputs into the CA-GREET4.0 model, which are not expected to vary significantly across providers of the fuel. Entities seeking to generate credits under the pathways listed in 95488.1(b)(1)(A) through (E) may report fuel transactions directly in the LRT-CBTS without taking any action in the AFP.

      1. (A) California Reformulated Gasoline Blendstock for Oxygenate Blending (CARBOB)
      2. (B) California Ultra-low Sulfur Diesel (ULSD)
      3. (C) Compressed Natural Gas
      4. (D) Fossil Propane
      5. (E) Electricity (California average grid)

   2. (2) Lookup Table Pathways That Require a Fuel Pathway Application. Fuel pathway applicants for the following Lookup Table pathways must register in the AFP and meet the application requirements of section 95488.5(b). Fuel pathway applicants may then report fuel transactions in the LRT-CBTS for the fuel pathways listed in subsections 95488.1(b)(2)(A) and (B).

      1. (A) Electricity (100 percent zero-CI sources, which include: eligible renewable energy resources as defined in California Public Utilities Code sections 399.11-399.36, excluding biomass, biomethane, geothermal, and municipal solid waste)
      2. (B) Electricity associated with smart charging pathway for EV charging and smart electrolysis pathway for hydrogen production through electrolysis

3. (c) Tier 1 Classification. The Tier 1 pathway classification applies to fuel pathway categories that the Board's staff has extensive experience evaluating. This classification includes fuel pathways for which the Executive Officer has identified a discrete set of site-specific inputs that can be modified to achieve CI changes. CI values for Tier 1 fuel pathways are determined using Board-approved Tier 1 CI Calculators. The Tier 1 CI Calculators provide a framework for applicants to enter monthly operational data inputs that are combined with emission factors and life cycle inventory data from the CA-GREET4.0 model to calculate the pathway CI. The Tier 1 classification includes, but is not limited to, the following fuel pathways:

   1. (1) Ethanol derived from starch or fiber in corn kernels or grain sorghum, and sugarcane;
   2. (2) Biodiesel produced from feedstocks including but not limited to oilseed crop-derived oils; rendered animal fat, distiller's corn oil, distiller's sorghum oil, and used cooking oil;
   3. (3) Renewable diesel, renewable naphtha, alternative jet fuel and renewable propane produced by hydrotreatment of feedstocks in a stand-alone reactor, including oilseed crop-derived oils, rendered animal fat, distiller's corn oil, distiller's sorghum oil, and used cooking oil, also known as Hydroprocessed Ester and Fatty Acid (HEFA) Fuels;
   4. (4) Biomethane from North American landfills, anaerobic digestion of wastewater sludge, dairy and swine manure, and food, urban landscaping waste, and other organic waste; and
   5. (5) Hydrogen produced from steam methane reforming of methane and electrolysis.

4. (d) Tier 2 Classification. The Tier 2 pathway classification shall apply to fuel pathways that the Board's staff has limited experience evaluating and certifying, including fuel pathways that are not currently in widespread commercial production. The Tier 2 classification includes all fuel pathways not included in Tier 1 or the Lookup Table pathways. The Tier 2 classification includes, but is not limited to the following fuel pathways:

   1. (1) Cellulosic alcohols;
   2. (2) Biomethane from sources other than those listed under the Tier 1 classification in (c)(5), above;
   3. (3) Electricity pathways not found in the Lookup Table;
   4. (4) Drop-in fuels (biomass-derived hydrocarbons using processes such as gasification and pyrolysis, alcohol to hydrocarbons, and synthetic hydrocarbons) except for renewable hydrocarbon fuels produced from feedstocks described in section 95488.1(c)(3). This category includes fuels produced from low carbon feedstocks co-processed with fossil feedstocks in petroleum refineries;
   5. (5) Any fuel produced from unconventional feedstocks, such as algae oil;

   6. (6) Pathways classified as Tier 1 that are produced using innovative production methods. Innovative production methods include, but are not limited to:

      1. (A) Use of one or more low-CI process energy sources.
      2. (B) Use of carbon capture to produce an alternative fuel or carbon capture and sequestration where CO₂ capture occurs at the fuel production facilities. (Projects that utilize carbon capture and sequestration are subject to the provisions of section 95490).
      3. (C) Pathways classified as Tier 1 that cannot be accurately modeled using the Tier 1 CI Calculators.

Note: Authority cited: Sections 38510, 38530, 38560, 38560.5, 38562.2, 38571, 38580, 39600, 39601, 41510, 41511 and 43018, Health and Safety Code. Reference: Sections 38501, 38510, 39515, 39516, 38571, 38580, 39000, 39001, 39002, 39003, 39515, 39516, 41510, 41511 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 1-4-2019; operative 1-4-2019 pursuant to Government Code section 11343.4(b)(3) (Register 2019, No. 1).

2. Amendment of section and Note filed 6-27-2025; operative 7-1-2025 (Register 2025, No. 26).