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Resources: Low Carbon Fuel Standard

New Regulation Means New Opportunity

California's groundbreaking Low Carbon Fuel Standard (LCFS) was adopted in 2007 to reduce greenhouse gas emissions across the state. Oregon and British Columbia have similar laws for reducing carbon content of transportation fuels. The LCFS does this by requiring fuel providers to ensure that the carbon intensity score of its fuel meets the annual carbon intensity target for a given year. Carbon credits are bought and sold among market participants in an active carbon credit market.

Pacific Ethanol Provides the Best Solution

The LCFS requires and incentivizes refiners to lower the carbon content on their fuels by blending the lowest carbon renewable fuels available. In addition, Pacific Ethanol produces among the lowest carbon ethanol of any commercially available transportation fuel and receives a premium for its fuel sold to carbon regulated markets, where it is used to help oil refiners comply with the Low Carbon Fuel Standard.

Meeting the Demands of a Growing Market

In October 2013 the governors of Oregon, Washington and California - together with British Columbia - signed an agreement to introduce a low-carbon fuels regulation similar to California's LCFS. As that occurs, we expect our fuel will receive a premium in all states and provinces along the western coast of the US and Canada.

As the US sees the emergence of more efficient, higher octane E15 fuel blends designed to comply with the new standards, Pacific Ethanol is well equipped to meet the demand.