Come January 1, fuel suppliers across California will have to abide by the state's Low-Carbon Fuel Standard (LCFS). The standard aims to reduce the "life-cycle carbon intensity" of fuels consumed by cars, trucks, and other vehicles by 10 percent over the coming decade and, in the process, even the playing field for low-carbon alternatives.
This coming year a carbon intensity baseline for gasoline and diesel sold in California will be established. Each year thereafter, the state will set a standard that is progressively lower. Fuel distributors will need to reduce the carbon intensity of their fuel by blending in low-carbon fuels such as cellulosic biofuels, or by purchasing low-carbon credits earned by other firms that beat the standard.
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