Changes are Coming for LCFS Regulations
We know you, as industry leaders, want to be kept in the loop about upcoming developments. Many stakeholders have common questions on LCFS that we have answered below. If you have a question that is not listed here in the FAQ, please submit it at the bottom of this page and we will address it.
We also have an LCFS email campaign series you are welcome to subscribe to that will outline changes as they’re announced.
Please note that in an effort to eliminate conflict of interest risk, all answers will be educational, non-specific to clients, and directed to the general public.
- Are there extensions available for the verification report? What happens if I am late?
There are no extensions available for the verification report, all reports are due by August 31 following the compliance year. If your report is not complete by August 31 then the verifier will file an Adverse Statement with CARB.
- What if I don’t produce fuel to be shipped into California in a given year, do I still need a verification?
If you have an active pathway with a certified CI then you have annual reporting requirements as well as an annual verification requirement. If you have generated less than 6,000 credits or deficits in a given year then you can defer your verification requirement for up to two years. At the end of the third year you will need to complete verifications for each of the previous compliance years and submit 3 verification statements. Deferring a verification eliminates the need for a site visit every year.
- What is the difference between a verification and a validation?
A verification is an audit of a company’s quarterly or annual reporting to CARB. A validation is an audit of a company’s pathway application for a certified CI.
- What is the timing of the verification/validation, when do I need to do something?
Third party validations are required starting January 1, 2020. If you submit a pathway application after December 31, 2019 or if you have a pathway application in process that has not been deemed complete by December 31, 2019 then you will need to engage a third party verifier to conduct an audit. You have 6 months from the submission date of your application to complete a validation. If you submitted a pathway application in Q4 of this year or plan to submit one in early 2020, you should be contacting verifiers now.
Verification work cannot begin until you have filed and attested to the accuracy of your reporting with CARB. If you choose to do annual verifications, then the initial verification would start end of Q1 or begin of Q2 in 2021. If you opt in to do quarterly verifications then work could start in Q1 or Q2 of 2020 and you should be setting up a plan with your verifier now.
- How do I know if a verifier is clear of the conflicts to do the verification?
You should contact any potential verifiers and request that they do a conflict of interest evaluation to ensure they are able to complete your verification or validation. Christianson has submitted an initial evaluation to CARB to clear a number of our services, there are only a select few that are considered high conflicts. Please contact our experts for more information.
- What happens if my facility is shut down for an extended period of time?
CARB currently has not addressed how they will handle facility shutdowns. They have advised plants to contact CARB when a shutdown is expected so that they can evaluate the case and determine how to proceed with the Tier 1 calculators and with verifications.
- When can we begin procedures for a validation, we want our pathway ready as soon as possible in 2020.
In order to begin validation procedures we have to submit a conflict of interest evaluation and receive approval from CARB in order to proceed. The approval from CARB can take up to 60 days. We have inquired about when the conflict of interest forms will be available to complete and submit for evaluation but have not heard anything earlier than the end of the year. Please check back here for updates on when conflict of interest forms are available for submission.