LCFS Credit Clearance Market
The LCFS includes a provision for holding a Credit Clearance Market (CCM) that provides additional compliance flexibility to regulated parties who have not met their previous year-end obligation. The CCM increases market certainty regarding maximum compliance costs, strengthens incentives to invest in and produce low-CI fuels, and reduces the probability of credit shortfalls and price spikes.
The LCFS regulation established the maximum price for credits acquired, purchased or transferred in CCM at $200 in 2016, and it requires that this price be adjusted by a Consumer Price Index (CPI) deflator in all years subsequent to 2016. The table below shows the maximum credit price determined for CCM in the past years and whether a CCM took place in each year.
LCFS Credit Clearance Market Information
|CCM Year||Maximum Credit Price||CCM Held||Credits Purchased in CCM|
For more information on relevant CCM dates, please refer to the CCM Timeline.