Implementing Performance-Based Sustainability Requirements for the Low Carbon Fuel Standard – Key Design Elements and Policy Considerations

California’s Low Carbon Fuel Standard (LCFS) adopted by the California Air Resources Board (CARB) on April 23, 2009 requires a 10% reduction in the average greenhouse gas (GHG) emission intensity of the state’s transportation fuels by 2020. This regulation is expected to reduce lifecycle GHG emissions per year by 20–25 million metric tons by 2020. Given available technology options, biofuels are expected to play a major role toward achieving the target. However, the rapid expansion of biofuel production may have environmental and social impacts at local, regional, and international levels. In response, many governments and national consortia have adopted sustainability requirements for their biofuel programs. The CARB is to propose a strategic plan for addressing overall sustainability provisions for the LCFS, for consideration by the Board for adoption by the end of 2011.