Calif. Low Carbon Fuel Standard Price Cap Is A Trade-Off

Law360 (February 7, 2020, 6:00 PM EST) -- On Nov. 21, 2019, the California Air Resources Board adopted a series of amendments to its Low Carbon Fuel Standard, or LCFS, program. The LCFS program is designed to encourage the use of low-carbon transportation fuels, and these amendments are intended to limit compliance costs for regulated parties and diminish any resulting adverse impacts on consumers.

The amendments must still be approved by the Office of Administrative Law. If approved, they will impose a price cap on all LCFS credit transfers. The price cap will limit the price of LCFS credit transfers to the existing Credit Clearance Market price cap of...

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