(a) LCFS CIs represent the life cycle greenhouse gas emissions, expressed in a per-megajoule of finished-fuel energy basis, associated with long-term, steady-state fuel production operations. Actual CIs vary over time due to a variety of factors, including but not limited to seasonality, feedstock properties, plant maintenance, and unplanned interruptions and shutdowns. A fuel production operation will not be found to be in violation of its certified pathway based on CI unless a CI calculated from production data covering 24 months of operations is higher than the certified CI reported for that fuel in the LRT-CBTS system. A fuel pathway applicant may add a conservative margin of safety, of a magnitude determined by the applicant, to increase the certified CI above the operational CI calculated based on the data submitted in the initial fuel pathway application, to account for potential process variability and diminish the risk of non-compliance with the certified CI. Fuel producers labeling fuel sold in California with LCFS CIs (in product transfer or similar documents), and fuel reporting entities using those CIs to report the fuel in the LRT-CBTS system, must ensure that the fuel so labeled and so reported will be found to have a life cycle CI, as calculated from production data covering 24 months of operation, that is equal to or less than the CIs reported in the LRT-CBTS system and on product transfer documents. Fuel reporting entities shall not report fuel sales under any LCFS CI unless the actual CI of that fuel, calculated as described in this subarticle, is equal to or less than the LCFS CI under which sales of that fuel are reported in the LRT-CBTS system.(b)General Rule. Except as provided in subdivision (c) below, fuel producers and fuel reporting entities covered by this regulation order must associate a CI with each unit of fuel sold in California. In general, fuel producers and fuel reporting entities shall assign all units of fuel produced while a given set of production parameters is in effect the same CI, regardless whether those units will be sold in California. For example, where a producer uses both biogas and natural gas as process fuel, the producer shall assign all units produced a single CI that reflects the mix of process fuels used to produce those units; the producer shall not assign the units destined for the California market a CI associated only with the use of biogas. A producer or fuel reporting entity may assign a different certified CI only when one or more production parameters changes. Following that change, all units produced while the new set of production parameters is in effect have the new CI, regardless of whether those units will be sold in California.
(c)Exceptions. Under the following two sets of conditions, a producer or fuel reporting entity may assign different CIs to portions of the fuel produced while a given set of production parameters is in effect. Those conditions are: (1) Two or more feedstocks are being simultaneously fed into the production process. For example, a renewable diesel production facility may feed a mixture of soy oil, tallow, and used cooking oil into its production process. Or a hydrogen production facility may use both natural gas and renewable natural gas as feedstock for steam methane reformation.(2) Two or more co-products are being produced simultaneously. For example, a corn ethanol plant may dry only a portion of the distiller's grains it produces; a portion of the distiller's grains produced is sold dry, and the remainder is sold wet.(d)How to Use the Multiple Feedstock Exception. When two or more feedstocks are being simultaneously fed into the production process, the producer or fuel reporting entity shall associate a portion of the fuel produced with each feedstock, using the production facility's average production yield and one of the methods provided in section 95491(d)(1)(C). The producer or fuel reporting entity must then label each feedstock-specific subdivision of the total fuel quantity produced with the certified CI associated with that feedstock.(e)How to use the Multiple Co-Product Exception. When two or more co-products are being simultaneously produced, the producer or fuel reporting entity may label the fuel associated with those co-products one of two ways: (1) If the production facility has available to it a single CI reflective of the current set of operational conditions (including the production of two or more co-products, in the proportions currently being produced), the producer or fuel reporting entity may label the facility's entire production run with that CI.(2) If the production facility has available to it separate CIs associated with the production of each co-product, the producer or fuel reporting entity may label portions of the fuel produced with the certified CIs associated with each co-product, in proportion to the co-product stream fraction that each co-product comprises. The producer or fuel reporting entity shall calculate the co-product proportions on an appropriate basis to conform to the life cycle approach used for the fuel pathway.Cal. Code Regs. Tit. 17, § 95488.4
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).
1. New section filed 1-4-2019; operative 1/4/2019 pursuant to Government Code section 11343.4(b)(3) (Register 2019, No. 1).