Low carbon fuel standards: what, why, and how?

On February 15, 2023, the U.S. Senate held a hearing considering a national clean fuels program, modeled after California’s state-wide Low-Carbon Fuel Standard (LCFS). The LCFS sets an annually decreasing standard of net carbon intensity (amount CO2 emissions per unit energy) for all the fuels being sold in the state. Companies that produce fuels or fuel equivalents below the carbon intensity threshold can sell low-carbon fuel credits. Companies that produce and sell fuels above the carbon in...