California LCFS Program

New LCFS verification requirements begin in 2026—making participation structure more important than ever.

Earning LCFS Credits for EV Fleets in California

The California Low Carbon Fuel Standard (LCFS) is a program aimed at reducing greenhouse gas emissions by promoting low-carbon fuels in transportation. It assigns a “Carbon Intensity” (CI) score to transport fuels to incentivize cleaner energy use.

For EV fleets, forklift trucks, and material handling equipment (MHE), electricity used as a transportation fuel generates LCFS credits—creating an opportunity to turn everyday operations into a new revenue stream.

Beginning in 2026, electricity reporting will require third-party verification, with the first quarterly report due at the end of May. As a result, participation will require structured data, verification, and ongoing compliance.

Eligibility

EV fleet owners in California can voluntarily participate in the Low Carbon Fuel Standard (LCFS) to generate additional revenue through energy credits.

Entities eligible for earning LCFS credits from reduced emissions include:

Electric vehicle service providers (EVSP)
Electric vehicle (EV) fleet operators, including buses and trucks
Electric forklift and material handling equipment (MHE) operators

What types of vehicles are eligible to earn LCFS credits?

The following types of electric vehicles are eligible to earn credits in California. If you’re unsure whether your vehicle qualifies, contact us today.

Electric / Hydrogen Forklift Trucks GSE
Battery-powered Material Handling Equipment (MHE)
Electric Transportation Refrigeration Units (eTRUs)
Electric Trucks - All Classes and Yard Tractors
Electric Buses and Shuttles

Am I required to opt into the program?

Importers, producers, and refiners of fossil fuels in California are the only entities required to report their emissions.

What happens if I don’t opt in?

Voluntary participants, such as EV fleet owners, are not required to opt into the program. However, the rebates you would otherwise earn will go unclaimed.

If I only have one electric vehicle, am I still eligible?

Yes – businesses of any size in California are encouraged to enroll with Smart Rebates™. You’ll earn monetary rebates regardless of your fleet size.

How does third-party verification impact LCFS participation?

Beginning in 2026, LCFS electricity reporting will require third-party verification, with the first quarterly report due at the end of May.

This means participants must ensure their data is accurate, structured, and audit-ready as part of ongoing program requirements. Verification may also introduce additional costs, depending on how participation is structured.

Does verification affect the cost of participating in LCFS?

Yes. Verification introduces a fixed cost that does not scale with credit volume. As a result, how participation is structured can impact overall program economics and net revenue.

Application

California-based EV fleet owners can apply to the LCFS through Smart Rebates™ at no out-of-pocket cost. We manage the application and enrollment process on your behalf.

Our enrollment process includes a no-cost site audit to provide an accurate estimate of your potential credit earnings. Unlike other providers that require manual data submission, our team handles the process for you—helping ensure accuracy and reduce the risk of reporting issues or penalties.

How can my company enroll in Smart Rebates™?

Companies interested in Smart Rebates™ must sign any CARB-required paperwork and opt into Smart Rebates™ by signing the Participation Agreement. Next, you’ll allow SCT or our service providers to survey your site to assess and collect your forklift truck, MHE, transportation fleet, and battery charger data. Once your company is deemed eligible for Smart Rebates™, you’re only required to provide us with quarterly changes to your fleet. Contact us to get started.

I’ve already enrolled in the LCFS program. Can I still switch to Smart Rebates™?

Yes. To get an estimate of your potential earnings with Smart Rebates™, we will perform an in-person audit to ensure your estimate is accurate and you’re getting the maximum value for your credits.

How long does the application process typically take?

When you enroll with Smart Rebates™ we’ll perform an on-site audit to estimate your earnings and will immediately begin the application process. You’ll receive your first check 45 days after the end of the first reporting quarter and every 90 days after that.

I’m already enrolled in the LCFS program—can I still switch to Smart Rebates™?

Yes. If you’re currently participating in LCFS, you can transition your participation to Smart Rebates™. Many operators choose to do this to simplify reporting, share verification requirements, and improve overall program structure.

How does the 2026 verification requirement affect enrollment?

Beginning in 2026, LCFS electricity reporting will require third-party verification. By enrolling with Smart Rebates™, your participation can be structured as part of a larger aggregated program—helping streamline reporting and manage verification requirements more efficiently.

Reselling

Electric bus, truck, forklift, and MHE operators in California generate LCFS credits based on reduced carbon emissions from electricity used as a transportation fuel. These credits are sold in the market to fuel producers that must offset their emissions.

LCFS credit pricing is driven by supply and demand, meaning values can fluctuate over time and may vary based on credit volume and market conditions.

Credit aggregators like Smart Rebates™ manage the trading process by combining credit volumes across multiple participants. This aggregation helps improve market positioning, reduce pricing variability, and optimize overall credit value.

Through established relationships with credit buyers, Smart Rebates™ works to secure competitive pricing and deliver consistent returns for participating fleets.

What kind of rebates can I expect to earn on a quarterly basis?

The LCFS energy credit market is based on supply and demand, and varies with the type and quantity of EV equipment used. When you enroll with us, you’ll receive a no-cost on-site audit to get you an estimate of your quarterly earnings. Contact us to initiate the audit process.

How long can I expect to receive rebates?

The LCFS is currently planned to remain active until 2030; however, the program is expected to be extended to continue reducing California’s carbon emissions.

Does credit volume impact LCFS pricing?

Yes. LCFS credits are typically sold in larger volumes, and smaller credit lots may be subject to pricing discounts. Aggregating credits across multiple participants can help improve pricing consistency and overall value.

Rebates

LCFS rebates are earned on a quarterly basis based on energy usage, fleet size, and overall credit generation.

Because LCFS credits are sold in a market driven by supply and demand, rebate values can vary depending on credit pricing and volume.

Participants receive quarterly payments reflecting the value of their sold LCFS credits. These earnings can be reinvested into operations, offset vehicle costs, or support continued fleet electrification.

What’s the catch?

There is no cost to enroll in the Smart Rebates™ program. LCFS participation includes reporting requirements and, beginning in 2026, third-party verification as part of the program.

Smart Rebates™ is designed to help manage these requirements efficiently—so you can participate with confidence while maximizing your overall results.

When can I expect my first rebate check?

Rebates are distributed quarterly after LCFS credits are generated, verified (if applicable), and sold. You’ll receive your first check 45 days after the end of the first reporting quarter.

Reporting

Fleet operators participating in the California LCFS program are required to submit quarterly and annual reports based on energy usage and emissions data.

Beginning in 2026, electricity reporting will also require third-party verification, adding an additional step to ensure data accuracy and compliance.

Reporting is submitted through CARB’s LRT-CBTS system according to the following quarterly deadlines:

June 30th – covering January through March
September 30th – covering April through June
December 31st – covering July through September
March 31st – covering October through December

Maintaining accurate, timely reporting is essential to ensure credits are properly generated and monetized.

What type of data is being collected and reported to CARB?

Smart Rebates™ only requires your company to provide SCT or our service providers with access to your site and equipment usage data.

What happens if my site changes or if I purchase new EVs?

We’ll perform a no-cost in-person audit to alleviate the burden and compliance risks associated with reporting by accurately capturing relevant site and equipment usage.

What happens if I report inaccurate data?

Inaccurate reporting may result in fines from CARB. Our in-person audit helps you avoid the risks associated with self-reporting.

How does third-party verification affect LCFS reporting?

Beginning in 2026, LCFS electricity reporting must be verified by an accredited third party. This requires structured, audit-ready data and adds an additional step to the reporting process.

Who is responsible for LCFS reporting and verification?

Responsibility depends on how participation is structured. When enrolled through an aggregator like Smart Rebates™, reporting and verification processes are managed as part of the program.

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What to Expect

When you enroll in Smart Rebates™, our team will evaluate your fleet, estimate your potential LCFS credit earnings, and guide you through the enrollment process.

We manage reporting, credit monetization, and—beginning in 2026—verification requirements as part of a structured, aggregated program.

As an EV fleet operator, you can generate additional revenue from your operations while participating in a program designed to support accuracy, consistency, and long-term performance.

Already participating in LCFS? We’ll review your current setup and identify opportunities to improve performance.

With new LCFS verification requirements beginning in May 2026, now is the time to review how your participation is structured.