Clean fuel standards are policies that require reductions in the carbon intensity of transportation fuels over time. They work by assessing the full lifecycle carbon emissions of fuels and requiring oil companies to reduce the average carbon intensity of their fuels. This creates incentives for producers to provide lower-carbon biofuels and electric vehicles. California has had a low carbon fuel standard in place since 2011 that has led to increased use of biofuels and generated over $580 million in credits that support transportation electrification programs. Other states have implemented or are considering similar clean fuel standards policies tailored to their goals.

1. Clean Fuel Standards
What are they and how do they work
Jeremy Martin, Director of Fuels Policy
Alyssa Tsuchiya, Research Associate and Washington Representative
Union of Concerned Scientists

3. 0
10
20
30
40
50
60
70
80
90
100
MW Gasoline Ethanol Efficient
ethanol
Ethanol
potential
MW grid
average
Leading MW
utility
80%
renewable
grid
Carbon
Intensity
(grams
CO2e/MJ)
Gasoline Ethanol Electricity

4. 0
10
20
30
40
50
60
70
80
90
100
MW Gasoline Ethanol Efficient
ethanol
Ethanol
potential
MW grid
average
Leading MW
utility
80%
renewable
grid
Carbon
Intensity
(grams
CO2e/MJ)
Baseline
Standard
Gasoline Ethanol Electricity

5. 0
10
20
30
40
50
60
70
80
90
100
MW Gasoline Ethanol Efficient
ethanol
Ethanol
potential
MW grid
average
Leading MW
utility
80%
renewable
grid
Carbon
Intensity
(grams
CO2e/MJ)
Baseline
Deficits
Standard
Credits
Credits Credits Credits Credits Credits
Gasoline Ethanol Electricity

6. California Low Carbon Fuel Standard
-8.75
-10
-11.25
-12.5
-13.75
-15
-16.25
-17.5
-18.75
-20
-20.0
-18.0
-16.0
-14.0
-12.0
-10.0
-8.0
-6.0
-4.0
-2.0
0.0
2011 2016 2021 2026
Percent
Reduction
in
Carbon
Intensity
Historic Compliance Targets
Reported % CI Reduction
Future Compliance Targets
Carbon intensities based on composite of gasoline and diesel fuels

7. CA LCFS Fuel Volume and Credits by Fuel Type
-
500
1,000
1,500
2,000
2,500
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Volume
(million
gallons
gasoline
equivalent)
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Credits
(million
metric
tons
CO2e)
Ethanol Biodiesel Renewable diesel Natural gas
Biomethane Electricity
ww3.arb.ca.gov/fuels/lcfs/dashboard/dashboard.htm

8. 0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Credits
(million
metric
tons
CO2e)
Ethanol Biodiesel Renewable diesel Natural gas Biomethane Electricity
ww3.arb.ca.gov/fuels/lcfs/dashboard/dashboard.htm
2.9 million credits
x $198 per credit
= $580 million

9. EV fleets generate credits. A transit bus can generate
credits worth more than $10K/year per bus

10. States are taking different approaches to
credit value from residential EV charging

11. In California utilities pool credits to fund a cash on the hood EV
incentive with additional funds designated to support
transportation electrification for disadvantaged communities

12. In Oregon utilities are using Clean Fuel
Program funds to run a variety of programs

13. Conclusion
• Clean Fuel Standards hold oil companies accountable to contribute
directly and financially towards transportation decarbonization.
• Clean Fuel Standards are an important source of support for
transportation electrification
• Generate significant value that grows without ongoing appropriations
• Program details can be designed to support state goals and values
• Clean Fuel Standards support cleaner biofuels based on lifecycle
analysis
• Rewards biofuels producer for lower emissions, not just increasing production
• A flexible approach that covers all fuels and adapts over time

14. UCS Clean Fuel Resources
• Clean Fuels for the Midwest
• ucsusa.org/resources/clean-fuels-midwest
• Clean Fuel Standards
• ucsusa.org/resources/clean-fuel-standards
• Fueling a Clean Transportation Future
• ucsusa.org/FuelingaCleanFuture
• Blogs
• blog.ucsusa.org/author/jeremy-martin/
• Or just reach out
• Jeremy Martin
• jmartin@ucsusa.org
• 202 331 6946