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California scheming: How are refiners, traders reacting to changes in LCFS rules?

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Listen: California scheming: How are refiners, traders reacting to changes in LCFS rules?

Plenty of artists have penned songs about California - from Tupac to the Beach Boys to Katy Perry. But the one aspect of California that every singer seems to leave out is its Low Carbon Fuel Standard, a potentially game-changing program to clean up transportation fuels. LCFS credits have spiked in price over the last month as the state readies new rules for the program, with more aggressive carbon intensity targets.

While they catch some rays, Platts senior editors Brian Scheid and Herman Wang look at what's going on with the LCFS and whether California will be able to reach its goal of a 10% reduction in the carbon intensity its transportation fuels by 2020. They talk to David Hackett, president of transportation energy consulting firm Stillwater Associates, and Platts associate editor Faiza Hassan, who has covered the LCFS market, on how refiners and traders are reacting to the changes.

Check back every Monday for the latest analysis of US oil policy news from leading Platts editors covering the Capitol. E-mail the editors at brian.scheid@platts.com and herman.wang@platts.com.


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