By Paul Sousa, Director of Environmental Services & Regulatory Affairs

Despite recent shifts at the federal level, climate change remains a top priority in California—both in state regulations and in market demands. From legislation to consumer expectations, every industry is being asked to do its part, and dairy is no exception.

One important program is the Low Carbon Fuel Standard (LCFS), which I’ve written about before. Amendments to the LCFS took effect on July 1 after a long and sometimes contentious process. The program is designed to lower the carbon intensity of transportation fuels and has been one of California’s most effective tools for reducing greenhouse gas (GHG) emissions.

Because LCFS goals were being met ahead of schedule, the California Air Resources Board (CARB) decided to raise the bar. This is where California dairies play a unique role. Many dairy digesters in our state—and across the country—produce renewable natural gas (RNG) for vehicle fuel that qualifies for LCFS credits. These credits make digester projects financially viable, create a new source of farm revenue, help meet SB 1383’s requirement to reduce manure methane emissions by 40% from 2013 levels, and replace fossil fuels with cleaner energy.

There’s more. RNG-fueled trucks produce far less air pollution than diesel trucks—reducing both greenhouse gases and local pollutants that affect human health. The LCFS amendments are expected to boost demand for credits, likely raising their value and benefiting dairies with digesters while supporting our state’s overall methane-reduction goals.

Of course, change brings challenges. Not everyone supports the new rules. Lawsuits have been filed—including one aimed directly at dairy’s role in the LCFS—by anti-dairy legal groups such as the Animal Legal Defense Fund. They argue against the 2025 amendments, even though these changes help dairies improve environmental performance and comply with state law. The California legislature has also taken an interest in the cost of the LCFS program. The legal outcome is uncertain, but for now, the amendments stand.

For California dairy families, the takeaway is this: the LCFS can be a powerful tool to turn environmental requirements into opportunities—generating revenue, improving air quality, and helping keep our farms stay ahead of regulation. It’s proof that with the right programs in place, dairies can remain part of the climate solution while sustaining our way of life.