California LCFS Cumulative Credit Bank Reduced by 8.46% in Q1 2026
California Low Carbon Fuel Standard (LCFS) credit generation in the first quarter of 2026 was outpaced by deficits by over 30%, resulting in the total number of banked credits in the state decreasing by 8.46%, according to California Air Resources Board (CARB) quarterly data released on Friday.
Total credit generation in Q1 2026, including electricity-generated credits, was 6.78 million credits – down 18.95%, or 1.28 million credits, from 8.06 million credits in Q4 2025. Credit generation for the quarter was also down approximately 25% from the same period in 2025, when total credit generation, including electricity-generated credits, was 8.47 million credits.
Deficit generation in Q1 – 9.76 million deficits – was 1.29% higher than the total number of deficits generated in Q4 and deficit generation for the quarter was also up 41.8% in total deficit generation from Q1 2025.
Overall deficit generation in Q1 outpaced credit generation by 30.5%, resulting in a cumulative credit bank from Q1 2011 through Q1 2026 of 35.3 million total credits. At the end of 2025, the cumulative credit bank totaled approximately 38.3 million credits, indicating an 8.46% drawdown in Q1.
Cumulatively through Q1 2026, approximately 232.4 million credits, including electricity-generated credits, and 197.1 million deficits have been generated.
Renewable diesel generated 1.9 million credits in Q1, down 26%, or 518,368 credits from the quarter prior. Renewable diesel credit generation during the quarter was also 54.6% lower on the year, with a renewable diesel total volume of 455 million gal. The average carbon intensity (CI) score for renewable diesel was 46.94 in Q1.
The fuel type yielding the second-highest credit totals in Q1 was bio-CNG, or biomethane, which generated 1.7 million credits during the quarter, down 15.2% from Q4 yet 10.4% higher on the year. The average CI score for biomethane in Q1 was -174.05.
Credits generated through the use of ethanol in Q1 — a total of 451,014 credits — was 21.3% lower on the quarter and down 72.6% on the year, on the blending of 342 million gal of the fuel. The average CI score of ethanol in Q1 was 59.57.
Total credits generated through the use of biodiesel in Q1 was 196,466, down 45.4% from the quarter prior and 57.7% lower on the year. The average CI score for biodiesel was 43.03 with a volume of 41 million gal for the quarter.
OPIS assessed California LCFS credits at $78.625/credit on Thursday after market sources reported prompt transfer credits changed hands at $78.25 and $78.50/credit and credits scheduled for delivery during the fourth quarter of 2026 traded at $79/credit.
Reporting by Maura Hossler, mhossler@opisnet.com ; Editing by Adam Spolane, aspolane@opisnet.com