California LCFS Credits
Targray is a leading supplier of California LCFS credits, part of the state’s Low Carbon Fuel Standard which aims to reduced the carbon intensity (CI) of transportation fuels. California LCFS credits are tradable and bankable, creating a market that accelerates fuel decarbonization.
California LCFS Program Overview
California’s Low Carbon Fuel Standard (LCFS) reduces the carbon intensity of transportation fuels over time by rewarding low-CI fuels with credits and assigning deficits to higher-CI fuels. Under the program, One LCFS credit equals 1 metric ton CO₂e avoided on a life-cycle basis.
California LCFS Credit Generation and Trading
How California LCFS Credits are Created
LCFS credits can be generated in three primary ways: fuel pathways, projects, and capacity-based crediting (e.g., certain EV infrastructure). CI values are assigned via approved pathways, then credits/deficits are calculated from energy delivered and the CI difference versus the annual standard.
Electricity and Hydrogen
California provides specific provisions for crediting electricity (utility and non-utility) and hydrogen used as transportation fuels; these credits are tradable in the LCFS market.
Registration, Reporting and Settlements
Participants register and report through CARB’s LRT-CBTS system, which handles organization onboarding, quarterly/annual reporting, credit ledgers, and credit transfers.
Credit Clearance Market (CCM): If needed, CARB can run a CCM with a CPI-indexed maximum credit price (price cap for transfers during CCM). CARB noted no CCM for 2025 after all parties met 2024 obligations.
How Targray Helps You Succeed in California's LCFS
Low-carbon Fuel Supply
Targray supplies compliance-grade biodiesel (B99/B20) and supports renewable diesel and other low-CI fuels across California via a growing in-state terminal network, enabling reliable volumes and optimized blends for credit creation.
California LCFS Credit Monetization and Trading
-
Direct counterparty execution in LRT-CBTS; Trading credits bilaterally, aligned with your compliance calendar.
-
Market intelligence to target favorable windows informed by CARB data and program mechanics.
Pathway, Compliance and Reporting Support
-
Guidance on CI pathway strategy, documentation, and verification alignment.
-
LRT-CBTS onboarding & reporting workflows, plus ongoing advisory for electricity/hydrogen crediting where applicable.
Contact Our Environmental Commodities Team
As a supplier and environmental commodities participant, Targray connects feedstocks → fuels → credits, helping reduce your total compliance cost while maintaining operational flexibility under the California LCFS program. Targray works with customers to build successful LCFS strategies through the planning, supply, and monetization of credits tailored to their California operations. Contact a member of our Environmental Commodities team to learn more:
Related Pages
Carbon Credits
Carbon credits are created by governments capping the amount of CO2 an entity may emit, and allocating a quantity of credits to entities covered in a regulated jurisdiction or policy regime.
Carbon Markets
Global carbon markets are broken down into two major market types; voluntary carbon markets (also known as VCMs) and compliance carbon markets, which vary by jurisdiction.
Carbon Pricing
A carbon price typically appears as a carbon tax or in emissions trading, with the main policy instrument being an Emissions Trading System (ETS), also known as Cap-and-Trade (CAT) program.
Environmental Commodities
Learn more about our carbon credit, carbon offset and renewable energy certificate (REC) programs & solutions for compliance and voluntary carbon markets around the world.
Carbon Offsets
A carbon offset is a transferrable credit certified by governments or certifying bodies to represent an emission reduction of one metric tonne of CO2, or an equivalent amount of other GHGs.