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The LCFS program works as a market system where users and producers of clean energy, including electric forklift owners, earn credits through their emission reductions, while emitters purchase those credits to offset their carbon footprint. The Low Carbon Fuel Standard is designed to decrease the carbon intensity of California’s transportation fuel pool and provide an increasing range of low-carbon and renewable alternatives, which reduce petroleum dependency and achieve air quality benefits.
In 2007, California created the Low Carbon Fuel Standard (LCFS) to reduce carbon intensity of transportation fuels. This ‘cap-and-trade’ style program is designed to motivate both the conventional fuel suppliers (e.g. diesel and gasoline producers) as well as low-carbon fuel users (e.g. EV owners).
The LCFS Regulation sets a carbon target for transportation fuel. Producers of high-carbon fuel (diesel, gasoline, etc.) have a deficit because their fuel does not meet the carbon standard. Users of low-carbon fuel (electric forklifts, EVs, etc.) create credits. The companies with the Deficits buy the Credits to bring them into compliance with the required carbon target. This means the revenue is not directly from the government and is not a one-time grant or rebate. This is a recurring revenue stream.
Full Service Provided: From Registration to Revenue While the ins-and-outs of Carbon Credits can be complex, Big Joe manage the entire process for you. Get in contact with us today to register your current fleet, or an upcoming purchase through us.
