The primary goal of the LCFS is to reduce the carbon intensity (CI) of transportation fuel used in California by at least 10% by 2020 from a 2010 baseline.

Although the LCFS takes stringent measures to reduce greenhouse gas emissions in California, the program has other significant benefits. It mitigates petroleum dependency while attempting to improve air quality, while transforming and diversifying the transportation fuel pool in California. The program aligns with preceding state legislation addressing air quality and climate change.

The LCFS applies to all transportation fuel that is sold, supplied, or offered for sale in California. The program also applies to any entity responsible for that transportation fuel in a calendar year.

Regulated parties inside California, as well as exempt providers of clean fuels that meet 2020 targets can opt into the program and participate in the credit market.

Low Carbon Credit Generating Fuels and Blend stocks include: bio-based natural gas, fossil natural gas, hydrogen, electricity, ethanol, biomass-diesel and renewable diesel.

High Carbon Deficit Generating Fuels and Blend stocks include: California Reformulated Gasoline Blend stocks for Oxygenate Blending (CARBOB) and California Diesel Fuel.