Renewable NatGas Benefits From California Low Carbon Fuels Standard

By David Bradley, NGI's Daily Gas Price Index.

California officials are encouraging alternative fuel fleets, including those switching to renewable natural gas (RNG), to take advantage of the low carbon fuel standard (LCFS) and cap-and-trade program created under the state's 2006 climate change law (AB 32).

A state greenhouse gas (GHG) emissions reduction fund administered by the California Air Resources Board (CARB) has $230 million available for low carbon transportation. The money comes from proceeds of CARB cap-and-trade auctions selling emission credits.

The program funds zero- and near-zero emission passenger vehicles rebates, heavy duty trucks/buses, freight demonstration projects and pilot programs in car sharing, financing, etc., according to state officials. Funds are also available for high-speed rail and public transit systems.

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