OEA partners with the largest agent manager of electric vehicle assets under the California Low Carbon Fuel Standard (LCFS) program for management and monetization of environmental commodities across North America. This ensures that our customers receive maximum value from LCFS credits generated through your zero emission vehicles, equipment and fueling infrastructure. With our services, fleets gain access to complex regulatory programs and carbon markets with no up-front costs.
The LCFS Program:
A Low Carbon Fuel Standard (LCFS) is a market-based incentive program intended to reduce the carbon intensity of transportation fuels within the state. The California Air Resource Board (CARB) sets carbon-intensity goals for the transportation sector, which decrease with each respective year. To meet compliance requirements, importers and refiners of carbon-intensive fuels, such as gasoline and diesel, accrue deficits which they need to offset with credits. These are the entities that purchase LCFS credits from generators and consumers of lower carbon-intensity fuels (i.e. electricity, biofuel, renewable diesel, etc.) to offset their deficits. Each LCFS credit represents one metric ton (MT) of CO2 displaced.
The value of an LCFS credit is determined by supply and demand dynamics within the market and can change daily. Accessing these markets and the program benefits is difficult and even systemically impossible without the enabling service capabilty provided by experienced Environmental Commodity Managers . Getting started with these progams is a critical step to understanding and optimizing how they can be applied to your fleet’s benefit and continue funding the deployment and operation of clean equipment AND renewable energy genration.
LCFS Credits and Optimizing Value
LCFS credits can be sold to offset costs from proceeds and can be used to finance your Rollout Plan for zero emission transportation:
- EV Purchases and Maintenance
- Charging Infrastructure Purchases and Maintenance
- Solar Installations
- Microgrid/Battery Storage for Redundancy
- Hydrogen Production from RNG for Electron Generation to Power Electric Vehicles
- Hydrogen Production from RNG to Fuel Vehicles
- Purchase of Electricity
- Installations
- Software
- Administrative Fees
- Marketing Outreach and Education