Initiative Agreements

The Initiative Agreement (IA) program supports the development of low carbon fuel projects. These agreements enable selected projects to contribute to long-term compliance pathways, helping to advance low carbon fuel supply and infrastructure while ensuring alignment with carbon intensity reduction targets.

Low Carbon Fuel Standard Initiative Agreement program

The Initiative Agreement program is a component of British Columbia’s Low Carbon Fuel Standard (LCFS) that supports the development of low carbon fuel projects through the issuance of compliance units (Credits).

An Initiative Agreement is a formal agreement between an eligible project proponent and the statutory Director under the Low Carbon Fuels Act. These Agreements are structured to award credits based on the successful completion of major project milestones.

The program follows a performance-based approach. Instead of providing incentives up front, organizations receive credits as they achieve key project targets. This structure supports measurable progress and accountability while aligning with the objectives of the LCFS.

These credits are identical to other LCFS credits and can be used for compliance or traded to offset project costs.

Applications

We currently welcome proposals related to Sustainable Aviation Fuel (SAF). 

Following the inclusion of jet fuel under the B.C. Low Carbon Fuel Standard on January 1, 2024, SAF-related proposals that support the new requirements for jet fuel are encouraged.

The Initiative Agreement program accepts concise project descriptions to help us better understand your project and assess its alignment with program goals. Selected applicants may be invited to submit an Expression of Interest.

If you have a SAF-related project, please send a brief project description to strategicinvestment.lcfs@gov.bc.ca.

Include the following details:

• Regulatory Alignment: Indicate whether the project qualifies under Section 15(1)(a) or (b) of the Low Carbon Fuels Act. Also confirm that, by the end of the project, it will meet one or more of the requirements listed in section 15(4)(a), (b), (c), or (d).
• Project Stage: For example, pre-final investment decision (FID), post-FID.
• Project Overview: Brief description of what the project is, including main objectives, outputs, or technology used, and expected carbon intensity of neat SAF.
• Location: Geographic location and relevant site information.
• Project Timeline: Start and end dates, and key milestones (for example, FID, construction start, commissioning, commercial operation).
• Project Cost: Estimated capital and/or operating cost, including cost class (for example, Class 3 estimate).
• Ownership and Partners: Outline the ownership structure, principal partners or investors, and any Indigenous ownership, investment, or partnership.

Non-SAF projects

The Initiative Agreement program is currently not accepting project applications that are not related to SAF.

Projects supported under Initiative Agreements

The Initiative Agreement program has supported more than 40 projects, driving investments of over $2 billion in B.C.'s clean fuel production, infrastructure and supply chains while contributing to economic growth and job creation.

Current Initiative Agreements include projects that support clean fuel production, infrastructure development and emerging low carbon technologies. Some examples are:

• Biofuel Projects: Facilitating the production, supply, and uptake of low carbon liquid fuels to replace conventional fossil fuel
• Electrification of Transport Fleets: Encouraging the adoption of electric vehicles and vessels and charging infrastructure
• Hydrogen Infrastructure Projects: Developing hydrogen fueling stations and expanding hydrogen supply to support zero-emission transportation

For more information about projects supported by an Initiative Agreement, read RLCF-014: Projects supported under Initiative Agreements

History of the program

From 2014 to 2023, the program was called the Part 3 Agreement program. With the introduction of the new Low Carbon Fuels Act on January 1, 2024, the Part 3 Agreement program became the Initiative Agreement program.