California to make ‘substantive modifications’ to its fuel emissions trading program

By Blanca Begert | 02/28/2025 06:26 AM EST

The notice comes after the Office of Administrative Law rejected changes to the low-carbon fuel standard.

Biodiesel

Biodiesel producers are facing another delay in California’s emissions trading rules. Justin Sullivan/Getty Images

The California Air Resources Board said Wednesday it would make substantive changes to its emissions trading program for transportation fuels after the Office of Administrative Law rejected its proposed program updates last week.

What happened: CARB on Wednesday said it would resubmit changes to its closely watched low-carbon fuel standard program, after posting the OAL’s detailed reasoning for rejecting amendments to the program that it approved in November.

The changes will be substantive enough to require a new public comment period, CARB said.

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Why it matters: The program is one of the cornerstones of California’s push to lower its emissions by 48 percent by 2030 compared with 1990 levels. It sets an average carbon content requirement for transportation fuels sold in the state and requires producers to either meet the threshold or buy credits from fuels producers that fall below the threshold to meet it.

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