California climate regulators on Monday proposed tightening one of their landmark climate programs: the low-carbon fuel standard, California’s credit-based program to reduce emissions from transportation fuels.
The California Air Resources Board’s proposed amendments — the second round of changes released ahead of a scheduled vote in November — would lower the carbon emissions threshold for fuels that are allowed to generate credits under the program.
The value of credits on the secondary market jumped Monday night on release of the proposed amendments in anticipation of supplies becoming more scarce in 2025, when the new rules would kick in. Prices spiked from $49.25 per metric ton to $65 per ton, according to Denton Cinquegrana, a chief oil analyst at theOil Price Information Service.
The amendments would also re-exempt jet fuel from having to buy credits under the program, an exemption a previous proposal had sought to eliminate, and would make other changes related to the admission and crediting of crop-based biofuels, biomethane and hydrogen in the program.
