California Low Carbon Fuel Standard (LCFS) prices rebounded off the lowest level since 2015 to trade over $68.00/t as CARB mulls more stringent carbon intensity targets and possible restrictions in the use of renewable fuels and biogas. CARB called off a March 21 hearing under pressure from the state’s Environmental Justice Advisory Committee (EJAC), environmentalists, and a swath of stakeholders to advance more stringent CI targets and adopt measures to hasten the transition away from biofuels.
CARB now aims to hold a workshop in mid-April to discuss critical reforms to the program. The decision holds enormous implications for the development of renewable transport fuels in the state and will exert on both federal and state programs.
Oregon LCFS credit prices proved choppy over the course of February, ranging from $72.00/t to $82.00/t amid a lack of direction. Prompt prices slumped to $75.00 by early March, shedding 17% since the start of the year. The state’s spot credit price maintains a premium to California and Washington even as Oregon attracts increasing amounts of renewable diesel.
IN THIS REPORT AEGIS EXAMINES: