Washington extends LCFS reporting delay

Washington state regulators today indefinitely delayed reporting requirements for the state's new low-carbon fuels program to address ongoing system issues.

The latest delay postpones the start of credit generation and trade to address Clean Fuel Standard obligations that began on 1 January. Regulators delayed a deadline to file reports needed to generate credits "until further notice" in an afternoon update to market participants.

"We are working hard to resolve the issues as quickly as possible," the Washington Department of Ecology said.

Low-carbon fuel standards (LCFS) require yearly reductions to transportation fuel carbon intensity in their markets. Conventional, higher-carbon fuels that exceed the annual limit incur deficits that suppliers must offset with credits generated from the distribution of approved, lower-carbon alternatives.

Ecology previously delayed reporting on the eve of the first 1 April reporting deadline. The reports detail the fuels supplied to the market in the first quarter so that regulators can verify and release associated credits.

"Several technical difficulties" with the Washington Fuels Reporting System used to administer the reports forced the suspension, according to the notice to participants. First quarter deadlines will be extended by however many days it takes to bring the stem fully online, the department said.

Washington began enforcement of the state's LCFS this year. California operates the oldest and largest North American program, and Oregon began enforcing its Clean Fuels Program in 2016. British Columbia has operated a provincial LCFS since 2013, a program will continue alongside a federal LCFS that begins imposing obligations in July.

By Elliott Blackburn