On January 12, 2010, California’s Office of Administrative Law (OAL) approved the state’s Low Carbon Fuel Standard (LCFS) for implementation as a discrete early action greenhouse gas emission reduction measure under the California Global Warming Solutions Act of 2006 (also known as A.B. 32). The purpose of the LCFS is to reduce the full fuel-cycle carbon intensity of the transportation fuels used in the state. It does so by gradually lowering the carbon content allowed in the transportation fuel mix over time, reaching a 10 percent reduction by 2020. Regulated parties must begin complying with reporting requirements in 2010; requirements for reductions in average carbon intensities begin in 2011.
California is the first state to adopt an LCFS. Governor Schwarzenegger first directed the state’s environmental agencies to begin work on an LCFS in 2007. The California Air Resources Board began considering the adoption of an LCFS in April 2009. Other states are working on LCFS policies as well. In December, Governors from eleven Northeast and Mid-Atlantic states signed a Memorandum of Understanding  to develop a regional LCFS framework by 2011. The Midwest Governor’s Association’s LCFS Advisory Group is tasked with providing a set of recommendations on how to craft such a policy.
CA's LCFS Page