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Navy Generates First Low Carbon Fuel Credits for Electrification Projects at Naval Base San Diego

14 March 2023

From Brian O'Rourke

SAN DIEGO – Since signing an Intergovernmental Support Agreement with the Port of San Diego in September 2022, $4.5 million has been generated from the sale of Low Carbon Fuel Standard (LCFS) credits.
SAN DIEGO – Since signing an Intergovernmental Support Agreement with the Port of San Diego in September 2022, $4.5 million has been generated from the sale of Low Carbon Fuel Standard (LCFS) credits.

These funds will be used to begin significant upgrades to the electrical infrastructure at Naval Base San Diego, which will further reduce emissions at our largest West Coast surface ship installation. As this program matures, it has the capability to generate in-kind consideration valued at up to $20 million annually.

“This is a great step forward in which Navy Region Southwest uses an innovative process to improve our infrastructure and add to Naval Base San Diego’s resilience,” said Rear Adm. Brad Rosen, Commander, Navy Region Southwest. “I am very excited to continue the collaboration with the Port of San Diego and the local community as we develop solutions to challenging problems that are beneficial to all.”

The Navy’s participation in this program is the first ever participation by the Department of Defense in this type of carbon reduction effort. The Navy generates LCFS credits while ships are plugged into shore power, rather than generating power internally using traditional, carbon-intensive fuels, and limiting emissions of greenhouse gasses in the surrounding community. Connecting ships to shore power while in port directly aligns with two Presidential Executive Orders requiring all federal agencies to take steps to reduce carbon emissions and support clean energy activities.

The LCFS is a cap-and-trade-like program where the producers of fossil fuels must either increase the use of plant-based carbon (e.g., ethanol and soybean oil) or buy credits to meet the requirement. The Navy generates credits via its current use of shore power for its fleet. One LCFS credit generated is equivalent to one metric ton of carbon dioxide reduced. Creation of credits can be achieved utilizing alternative low carbon fuels or electrification.

For more information on the Navy’s energy conservation efforts, please call Brian O’Rourke, Navy Region Southwest, at (619) 985-3725, or email

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