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California’s Proposed Low CarbonFuel Standard (LCFS)ENERGY PARTNERS, L.P. 40% of California Green House Gas (GHG) Emissions fromTransportation Sector Reduce carbon intensity of California passenger vehicles by atleast 10% by 2020 Analyze on “well to wheel” or “field to wheel” basis Performance Based (allows averaging, banking and trading toachieve lowest cost and consumer responsive solutions) Fuel neutral (fuel providers to choose which fuels to sell and inwhat volumes) Implement program by year-end 200813