Low Carbon Jet Fuel

The Program

The BC Low Carbon Jet Fuel Incentive Program (BC-LCJFIP) is intended to encourage the early adoption of low carbon jet fuel (LCJF) across British Columbia.

Backed by BC’s Low Carbon Fuel Standard (LCFS), this initiative aims to lower the carbon intensity of jet fuel, supporting both provincial regulations and global efforts to reduce greenhouse gas (GHG) emissions in aviation.

Through incentives, the Program will help airlines offset the higher cost of LCJF by providing either a cash or credit incentive, making the transition to more sustainable fuel options easier and more accessible.

Duration

The BC-LCJFIP is a three-year program. It will operate until December 31, 2026, providing incentives for eligible LCJF purchases made and received in BC during the 2024, 2025, and 2026 program years.

Application Periods

Applicants may submit applications during designated periods:

2024 (credits only):

November 18 – December 3, 2024 (noon PST)

2025 (cash or credits):

January 1, 2025 – February 28
April 1, 2025 – May 31
July 1, 2025 – August 31

2026 (cash or credits):

January 1, 2026 – February 28
April 1, 2026 – May 31,
July 1, 2026 – August 31

Application Process

Email [email protected] to obtain the application package, including:

Application Guide
Application Form
Delivery Verification Form

Eligible airlines complete and submit application forms to the Ministry of Energy and Climate Solutions (MECS) at [email protected] within the application period.
Applicants are advised of their allocation of low carbon fuel standard (LCFS) credits based on litres of low carbon fuel purchased.
Applicants purchase and receive LCJF within the applicable calendar year.
Applicants provide evidence of eligible fuel purchases and submit to MECS for review.
MECS advises applicants and YVR of incentive amounts.
YVR transfers LCFS cash or credits to applicants.

Who can apply

Eligibility

Eligible air operators are those operating flights under Parts 701 (excluding state aircraft), 703, 704, and 705 of the Canadian Aviation Regulations.

Applicants must provide satisfactory evidence of eligible fuel purchases and delivery, such as approved BC-LCFS Fuel Codes, invoices, and delivery receipts.

How to apply

Email [email protected] for an application package.

Forms must submitted by email to [email protected] with the subject line: “BC-LCJFIP Application Form – [Organization Name]”.

Why apply

Applying for the BC Low Carbon Jet Fuel Incentive Program (BC-LCJFIP) offers a valuable opportunity for airlines to reduce the cost of transitioning to low carbon jet fuel (LCJF). This program provides support to offset the price difference between traditional jet fuel and LCJF, helping airlines meet new carbon intensity regulations and environmental targets. By participating, your airline can lower its carbon footprint, contribute to industry-wide sustainability goals, and gain a competitive edge as the sector moves toward greener operations.

Frequently Asked Questions (FAQ)

What is the low carbon jet fuel Incentive Program?

The LCJF Incentive Program is a YVR program to help offset the cost of low carbon jet fuel purchased by carriers flying from BC airports. In 2024, this subsidy be awarded in the form of Low Carbon Fuel Standard credits.

This program aligns with YVR’s Net Zero by 2030 goal, and our commitment to support the aviation industry’s Net Zero 2050 goal, including by supporting development of a supply chain for made-in-British Columbia low carbon jet fuel.

Who is eligible?

Eligible air operators are those under the Aeronautics Act and that operate flights under Parts 701, 703, 704, and 705 of the Canadian Aviation Regulations.

What is the application process for the rebate?

Applicants must submit an application form. Applications will be accepted between November 18 and December 3, 2024, at noon PST. Please email [email protected] for the application package.

What is the deadline to apply in 2024?

Applications will be accepted between November 18 and December 3, at noon PST.

Will there be a second round of applications?

There will only be one round of applications for the 2024 program. Dates for the 2025 and 2026 program are as follows:

2025 Application Periods:
- 2025 - A: January 1st, 2025 - February 28th, 2025
- 2025 - B: April 1st, 2025 - May 31st, 2025 (if needed)
- 2025 - C: July 1st, 2025 - August 31st, 2025 (if needed)
2026 Application Periods:

2026 - A: January 1st, 2026 - February 28th, 2026
2025 - B: April 1st, 2026 - May 31st, 2026 (if needed)
2025 - C: July 1st, 2026 - August 31st, 2026 (if needed)

How much incentive funding or credits can my organization apply for?

Support is based on the amount of low carbon jet fuel that is delivered to an airport in BC and the carbon intensity of the fuel. For the 2024 program year, support will be awarded in the form of Low Carbon Fuel Standard credits. Credits will be awarded in accordance with this formula:

Baseline Incentive Rates

Carbon Intensity:

> 10 gCO2e/MJ	0.0016 credits/L
< = 10 gCO2e/MJ	0.0024 credits/L

For future rounds where cash incentive funding is awarded, the estimated incentive will be :

Baseline Incentive Rates

Carbon Intensity

> 10 gCO2e/MJ	$0.75 CAD/L
< = 10 gCO2e/MJ	$1.120 CAD/L

Please apply for the amount you expect to purchase.

How are applicants selected?

Selection is based on eligibility; all qualified applicants will be entitled to participate in the program.

When will applicants be advised of their credit allocation?

After the application period closes, applicants will be advised of their allocation of credits. If the program is oversubscribed, allocations will be awarded on a pro rata basis.

What happens if the program is oversubscribed?

If the program is oversubscribed each successful applicant will receive a cash or credit allocation on a pro rata basis.

What is the process if I disagree with the outcome?

The airline should contact the Low Carbon Fuel Branch (LCFB) if they wish to raise an objection regarding the allocation. In their communication, the airline must provide a clear, detailed explanation of their objection, including supporting calculations or any relevant data.

How should I source LCJF?

You may purchase qualified low carbon jet fuel from the supplier of your choice.

What evidence must be submitted to receive the rebate?

Applicants must provide satisfactory evidence to verify the eligible fuel purchase and delivery. This evidence includes the Delivery Verification Form, an approved BC-LCFS Fuel Code, invoices, and/or delivery receipts, which must be accurate and complete. Please see the Application Guide for more detail.

My organization purchased Sustainable Aviation Fuel earlier in 2024, does the rebate apply to those purchases?

Yes, for 2024 only, incentives can apply to purchases of low carbon jet fuel received at an airport in BC that took place anytime in 2024.

How is the LCJF Incentive Program being funded?

Support for the program is provided by the BC Provincial Government through its Low Carbon Fuel Standard Initiative program. Initiative Agreements promote innovation, diversity, and greater uptake of lower carbon fuels. The LCFS Initiative Agreement program helps undertake actions that are not otherwise economically viable, and that will help create pathways for businesses to comply with the LCFS.

What is the difference between low carbon jet fuel, alternative jet fuel and sustainable aviation fuel?

These terms are used interchangeably to describe the biofuel equivalent for jet fuel.

How is LCJF made? Is it sustainable?

Low carbon jet fuel is a type of biofuel, meaning it is made from plant or animal materials, rather than fossil fuels. For more information on the sustainability of low carbon jet fuel (or “SAF”) please see this video from IATA.

What is YVR doing to encourage the production of local low carbon jet fuel?

YVR has signed a Memorandum of Understanding with the Province of British Columbia to complete a SAF opportunities study, involving First Nations and partners in academia, aviation, energy and natural resources.