The Low Carbon Fuel Standard (LCFS) is a rule designed to reduce the carbon emissions of the fuels used by our transportation sector. This rule limits the burning of fossil fuels, such as diesel and gasoline, and promotes the use of biofuels, natural gas, propane and electricity. In 2011, California adopted LCFS regulations along with a cap-and-trade program. Oregon soon followed and Colorado, South Dakota, Minnesota and Iowa are considering low carbon fuel standard programs too. To comply with the low-carbon standard, oil companies could blend more ethanol into gasoline products, purchase credits from electric utilities supplying electricity to electric vehicles, or sell hydrogen for vehicles powered by fuel cells.

Environmentalists claim LCFS rules are a state response to our federal government’s inability to pass legislation to reduce greenhouse gases. They say that about 30% of our air pollution is caused by gasoline and diesel-burning engines, and claim that if overall emissions are to be reduced, low carbon fuel standards must play a role.
Opponents claim LCFS rules will drive up gasoline prices and result in higher prices for other consumer goods in which transportation costs are a factor.

Proposed Legislation: Reintroduction of H.R.2434 - Next Generation Fuels Act of 2023
Prospective Sponsor: Rep. Mariannette Miller-Meeks (IA)

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