LCFS programs are designed to reduce the carbon intensity of on-road transportation fuels with an increasing range of renewable fuel alternatives. Fuel suppliers must blend biofuels or buy credits to comply with the annual targets. These credits can be banked, which helps with ensuring compliance in future years when targets become more stringent.

Fuels are issued carbon intensity scores based on lifecycle greenhouse gas (GHG) emissions: 

• Fuels above targets — gasoline, diesel — generate deficits
• Low-carbon alternatives — including renewable diesel, renewable natural gas, sustainable aviation fuel, biodiesel and ethanol — generate credits

LCFS credits and deficits remain within the state where the fuels are used:

• California LCFS requires a 30pc cut in GHG emissions from a 2010 baseline by 2030.
• Oregon’s Clean Fuels Program requires a 20pc cut by 2030 and began work on a 50pc reduction target by 2040.
• Lawmakers intensified Washington's Clean Fuel Standard targets into the next decade. 
• New Mexico in April 2026 began its Clean Transportation Fuel Program, requiring a 20pc reduction by 2030.

Our trusted, independent price references for all key LCFS credit programs help provide a transparent view to assess the cost of compliance, or to inform supply strategies by comparing credit opportunities in different markets.