This November 2024 edition brings important updates to California’s Low Carbon Fuel Standard (LCFS) regulations, ensuring businesses stay ahead in a competitive energy landscape. Among the changes, metering devices for electric forklifts must be installed and fully operational by December 31, 2025, to ensure compliance and continued revenue generation through 2045. Additionally, the Carbon Intensity (CI) reduction target will increase to 30% by 2030, driving up LCFS credit prices and creating new opportunities for growth.

25,Q2 2024 LCFS, CFP, and CFS Rebate Payments Are on the Way!

We are pleased to announce that Smart Rebates™ customers will receive Q2 2024 rebate payments by early December. With reporting and sales of LCFS, CFP, and CFS credits now complete, participants are set to continue benefiting from streamlined revenue generation.

CARB-Approved Changes to LCFS Regulations

On November 8, the California Air Resources Board (CARB) voted to ratify key updates to the LCFS regulations. These changes, which were previously proposed, have already driven LCFS credit prices up by over 70%, reflecting increased demand and value.

Key Highlights:

• Higher CI Reduction Target: The average Carbon Intensity (CI) reduction target has increased to 30% by 2030, up from the current 20%. More specifically, the reduction target will increase by an additional 9% in 2025 alone. These changes are expected to create greater demand for LCFS credits and increase LCFS credit prices in 2025. CARB has also established CI reduction targets through 2045.
• Extended Credit Opportunities: Electric and hydrogen forklifts will continue to earn LCFS credits through 2045, providing long-term incentives for businesses adopting sustainable operations.
• Unified Credit Criteria: The updated LCFS regulations have removed the old (pre-2011) vs. newer (post-2010) MHE manufacturing date classifications. All forklift trucks, regardless of age, now have the same credit-earning ability. Older equipment that was previously downgraded can now receive higher rebates.

Metering Requirements for Electric Forklifts

To comply with LCFS regulations, businesses must implement metering devices by the end of 2025. Starting January 1, 2026, energy usage (in kWh) must be reported, ensuring accurate credit generation. These requirements align with practices already established in Oregon, Washington, and Canada, setting a consistent standard for compliance.

Solutions to Meet LCFS Requirements

Motive Energy offers two solutions to help businesses meet these requirements while unlocking maximum financial benefits:

• CHARGlink Meters: These cloud-based, cellular devices deliver precise energy tracking, simplify reporting, and ensure compliance. CHARGlink meters integrate seamlessly with existing systems to help businesses maintain operational efficiency.
• Quantum Chargers: As the only CARB-accepted chargers with built-in metering, Quantum chargers deliver advanced energy management, reliable data tracking, and simplified compliance. Their robust design optimizes energy usage while ensuring businesses capture the highest possible credit value

Both CHARGlink meters and Quantum chargers work seamlessly with the Smart Rebates™ program, enabling businesses to streamline compliance, maximize energy credits, and enhance financial performance under LCFS regulations.

Additional LCFS Updates

• Price Stabilization Mechanism: CARB will introduce measures in 2027 to stabilize credit prices and ensure program reliability.
• Third-Party Verification: Quarterly forklift fueling reports will require third-party verification, made easier with Smart Rebates™ and the precise data provided by CHARGlink meters and Quantum chargers.

Looking Ahead

The updated LCFS regulations pave the way for enhanced financial performance and sustainability through 2045. By integrating Smart Rebates™, CHARGlink meters, or Quantum chargers, businesses can navigate these regulatory changes with confidence, ensuring they remain competitive in a fast-evolving energy landscape.

Partner with us to maximize your energy efficiency, unlock significant savings, and drive meaningful progress toward your sustainability goals.

For more information, explore the full LCFS regulations here:
CARB LCFS Final Regulations