Washington proposes LCFS participation fee

Washington regulators today proposed fees for companies supplying fuels to the state under its new Clean Fuel Standard.

Refiners, importers and other obligated parties would pay more than $77,000 and low-carbon fuel suppliers almost $2,300 to participate in the low-carbon fuel standard (LCFS) market this year, based on 64 companies registered in the program by the end of January.

State regulators expect those fees to come down before they are finalized in mid-March as program costs are spread across more registrants. The Washington Department of Ecology will accept comments on the proposed fee through 3 March.

LCFS programs require yearly reductions to transportation fuel carbon intensity. Higher-carbon, conventional gasoline and diesel incur deficits that suppliers must offset with credits generated from the distribution of approved, low-carbon alternatives.

Washington targets a 20pc reduction in state transportation fuel carbon intensity by 2034, although the program caps reductions at 10pc until in-state biofuels production capacity expands.

Washington follows established LCFS programs in California and Oregon. Neither of those states impose participation fees.

By Elliott Blackburn