California Code of Regulations
Title 17 - Public Health
Division 3 - Air Resources
Chapter 1 - Air Resources Board
Subchapter 10 - Climate Change
Article 4 - Regulations to Achieve Greenhouse Gas Emission Reductions
Subarticle 7 - Low Carbon Fuel Standard
Section 95488.1 - Fuel Pathway Classifications

Universal Citation: 17 CA Code of Regs 95488.1

Current through Register 2024 Notice Reg. No. 38, September 20, 2024

(a) For purposes of fuel pathway carbon intensity determination, all new LCFS fuel pathways certified after January 1, 2019 (or the effective date of this regulation) shall be classified as either a:

(1) Lookup Table pathway;

(2) Tier 1 pathway; or

(3) Tier 2 pathway, as described below.

(b) Lookup Table Classification. Pathways falling under this classification are the simplest pathways to use. The Board's staff develops Lookup Table pathway CI values using the CA-GREET3.0 model. Input variables and assumptions are provided in the CA-GREET3.0 Lookup Table Pathways -- Technical Support Documentation (August 13, 2018), which is incorporated herein by reference.

(1) Lookup Table Pathways That Do Not Require a Fuel Pathway Application. The following pathways are developed using average values for inputs into the CA-GREET3.0 model, which are not expected to vary significantly across providers of the fuel. Entities seeking to generate credits under the pathways listed in 95488.1(b)(1)(A) through (E) may report fuel transactions directly in the LRT-CBTS without taking any action in the AFP.
(A) California Reformulated Gasoline Blendstock for Oxygenate Blending (CARBOB)

(B) California Ultra-low Sulfur Diesel (ULSD)

(C) Compressed Natural Gas

(D) Propane

(E) Electricity (California average grid)

(2) Lookup Table Pathways That Require a Fuel Pathway Application. Fuel pathway applicants for the following Lookup Table pathways must register in the AFP and meet the application requirements of section 95488.5(b). Fuel pathway applicants may then report fuel transactions in the LRT-CBTS for the fuel pathways listed in 95488.1(b)(2)(A) through (F).
(A) Electricity (100 percent zero-CI sources, which include: eligible renewable energy resources as defined in California Public Utilities Code sections 399.11- 399.36, excluding biomass, biomethane, geothermal, and municipal solid waste)

(B) Electricity associated with smart charging pathway for EV charging and smart electrolysis pathway for hydrogen production through electrolysis

(C) Hydrogen (gaseous and liquefied) from central SMR of North American fossil-based natural gas

(D) Hydrogen (gaseous and liquefied) from central SMR of biomethane

(E) Hydrogen (gaseous) from electrolysis using California grid-average electricity

(F) Hydrogen (gaseous) from electrolysis using electricity from a zero-CI source as defined in (A) above

(c) Tier 1 Classification. The Tier 1 pathway classification applies to fuel pathway categories that the Board's staff has extensive experience evaluating. This classification includes fuel pathways for which the Executive Officer has identified a discrete set of site-specific inputs that can be modified to achieve CI changes. CI values for Tier 1 fuel pathways are determined using Board-approved Simplified CI Calculators. The Simplified CI Calculators provide a framework for applicants to enter monthly operational data inputs that are combined with emission factors and life cycle inventory data from the CA-GREET3.0 model to calculate the pathway CI. The Tier 1 classification includes, but is not limited to, the following fuel pathways:

(1) Ethanol derived from starch or fiber in corn kernels or grain sorghum, and sugarcane;

(2) Biodiesel produced from feedstocks including but not limited to oilseed crop-derived oils; rendered animal fat, distiller's corn oil, distiller's sorghum oil, and used cooking oil;

(3) Renewable Diesel produced by hydrotreatment of feedstocks in a stand-alone reactor, including but not limited to oilseed crop-derived oils, rendered tallow, distiller's corn oil, distiller's sorghum oil, and used cooking oil;

(4) LNG and L-CNG from North American fossil natural gas; and

(5) Biomethane from North American landfills, anaerobic digestion of wastewater sludge, dairy and swine manure, and food, urban landscaping waste, and other organic waste.

(d) Tier 2 Classification. The Tier 2 pathway classification shall apply to fuel pathways that the Board's staff has limited experience evaluating and certifying, including fuel pathways that are not currently in widespread commercial production. The Tier 2 classification includes all fuel pathways not included in Tier 1 or the Lookup Table pathways. The Tier 2 classification includes, but is not limited to the following fuel pathways:

(1) Cellulosic alcohols;

(2) Biomethane from sources other than those listed under the Tier 1 classification in (c)(5), above;

(3) Hydrogen pathways not found in the Lookup Table;

(4) Electricity pathways not found in the Lookup Table;

(5) Drop-in fuels (renewable hydrocarbons) except for renewable diesel produced from feedstocks described in section 95488.1(c)(3). This category includes fuels produced from low carbon feedstocks co-processed with fossil feedstocks in petroleum refineries;

(6) Any fuel produced from unconventional feedstocks, such as algae oil;

(7) Pathways classified as Tier 1 that are produced using innovative production methods. Innovative production methods include, but are not limited to:
(A) Use of one or more low-CI process energy sources.

(B) Use of carbon capture and sequestration. (Projects that utilize carbon capture and sequestration are subject to the provisions of section 95490).

(C) Pathways classified as Tier 1 that cannot be accurately modeled using the Simplified CI Calculators. Such pathways must meet the substantiality requirements of 95488.9(a).

1. New section filed 1-4-2019; operative 1-4-2019 pursuant to Government Code section 11343.4(b)(3) (Register 2019, No. 1).

Note: Authority cited: Sections 38510, 38530, 38560, 38560.5, 38571, 38580, 39600, 39601, 41510, 41511 and 43018, Health and Safety Code; 42 U.S.C. section 7545; and Western Oil and Gas Ass'n v. Orange County Air Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr. 249 (1975). Reference: Sections 38501, 38510, 39515, 39516, 38571, 38580, 39000, 39001, 39002, 39003, 39515, 39516, 41510, 41511 and 43000, Health and Safety Code; Section 25000.5, Public Resources Code; and Western Oil and Gas Ass'n v. Orange County Air Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr. 249 (1975).

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