SoCalGas is able to offer the reduced price by returning revenue generated from the sale of Low Carbon Fuel Standard (LCFS) credits to customers through a California Public Utilities Commission approved program. - Photo courtesy of SoCalGas

SoCalGas is able to offer the reduced price by returning revenue generated from the sale of Low Carbon Fuel Standard (LCFS) credits to customers through a California Public Utilities Commission approved program.

Photo courtesy of SoCalGas

Southern California Gas Co. (SoCalGas) is lowering the price of compressed natural gas at all of its 13 public access natural gas vehicle fueling stations by 12 cents per gallon beginning April 1, 2019.

The utility is able to offer a reduced price by returning revenue generated from the sale of Low Carbon Fuel Standard (LCFS) credits to customers through a California Public Utilities Commission approved program, according to SoCalGas.

The LCFS program is administered by the California Air Resources Board and seeks to reduce greenhouse gas emissions from transportation fuels by 20% through 2030. Under the program, fuels that help lower greenhouse gas (GHG) emissions, such as natural gas, generate LCFS credits.

SoCalGas also recently announced it will soon begin using renewable natural gas, a fuel produced from waste sources, at its fueling stations. Because of its low or even negative carbon intensity, renewable natural gas can generate additional LCFS program credits.

In California, close to 70% of natural gas fleets are fueled with renewable natural gas.

The transportation sector is responsible for 41% of GHG emissions and 80% of smog forming pollution, according to SoCalGas.

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