- GNA Insight
Offset the cost of EVs with the Low Carbon Fuel Standard (LCFS)
May 18, 2020
Source: ACT News | May 18, 2020
Thousands of dollars are currently available for fleets operating clean vehicles. It sounds unbelievable, but for fleets in California and Oregon the Low Carbon Fuel Standard (LCFS) program offers an avenue to earn money using low emission or renewable fuels.
The LCFS is a market-based, fuel-neutral program designed to reduce the carbon intensity of traditional transportation fuels. Users and producers of clean energy earn credits through their emission reductions. Those credits are then sold to regulated entities, such as importers, producers, and refiners of petroleum fuels, that are required to purchase credits to meet carbon emission reduction goals. For a more detailed introduction to the LCFS program, read my previous article, “Generate Revenue with Clean Fuels.”
While several clean fuels are viable under the LCFS—including renewable natural gas—electric vehicles (EVs) have the greatest earning potential due to both their higher efficiencies generating more credits and the way those credits are awarded to owners of the EV infrastructure.