Low Carbon Fuel Standard

Transcription

1 Low Carbon Fuel Standard April 26, 2017 Jing Yuan, Ph.D. Fuels Section Transportation Fuels Branch Industrial Strategies Division 1

2 Outline Program background Demonstration How do I register in the system? How do I generate credits? How do I sell credits?

3 Program Background 3

4 4 Low Carbon Fuel Standard (LCFS) Originally adopted in 2009, compliance began 2011, re-adopted in 2015 to address legal issues Goal: Reduce Carbon Intensity (CI) of California transportation fuel pool by at least 10% by 2020 CI is carbon footprint score of fuel based on well-to-wheel analysis Expected Benefits Reduce Greenhouse Gas (GHG) emissions Transform and diversify fuel pool Reduce petroleum dependency Reduce emissions of other air pollutants

5 5 Electricity Opt-in Parties are Credit Generators Refineries and other providers of high carbon petroleum fuels generate deficits Entities using electricity as transportation fuel, such as EV fleet, transit agencies, and school districts, if opt into LCFS, will only generate credits, not deficits

6 6 What are LCFS Credits Worth? $120 Volume of Credits Transacted (MT) ARB Monthly Average Credit Price $100 1,200,000 1,000,000 Credit Price ($/Metric Ton) $80 $60 $40 $20 800, , , ,000 Volume Transacted (metric tons CO 2 e) $0 S O N D J F M 0

7 Value of LCFS Credits to EVs Estimated 2017 credit revenue of EVs Credit Revenues (per KWh) Typical EV Types EERs LCFS Credit Price $50* $100* $150* Light/Medium Duty EVs** Electric Buses*** * Credit prices used here are for illustration proposes only ** Electricity is used as a gasoline substitute ***Electricity is used as a diesel substitute See: and Credit value calculator at: 7

8 8 Who Can Register for LCFS Credits? Electric vehicle service providers (EVSP) for public charging stations Site hosts of private access EV charging equipment at a business or workplace EV fleet operators for EV fleets (including electric forklifts) Transit agencies operating fixed guideway systems or electric buses Electrical Distribution Utilities (EDU) for residential charging, and for all of the above categories, if no other parties opt-in and generate credits

9 9 Demonstrations LCFS Account Registration LCFS Reporting Credit Generation Credit Transfer

10 10 How Do I Register in the System? To prepare to generate credits you must register as an optin party in the LCFS Reporting Tool and Credit Bank & Transfer System (LRT-CBTS) Registration Steps: Step 1: Download/complete the LRT-CBTS Account Registration Form Step 2: Upload the completed LRT-CBTS Account Registration Form Step 3: Agree to LRT-CBTS General Use Conditions & Disclaimer Step 4: Provide Organization and Administrator details

11 11 Step 1 Click on the link to download the Account Registration Form

12 12 Step 1 ABC Company X X

13 13 Step 1 CEO Smith Milton ABC Company Jacob Nash 04/07/2016 Jacob Nash Louis Smith 04/07/2016 Louis Smith 04/07/2016 Smith Milton

14 14 Step 2 Complete and sign the Form and save as PDF Upload the completed Form

15 15 Step 3 Agree to LRT-CBTS general use conditions & disclaimer Ensure you have checked the box after reading the Terms of Use

16 16 Step 4 ABC Company 1001 I street Sacramento X-XXXXX Jacob Nash (999) Jacob.N@MNB.com Jacob Nash (999) Jacob.N@MNB.com AMD_ABC Jacob.N@MNB.com

17 17 How Do I Generate Credits? If desired, register for an individual carbon intensity pathway Defaults available for electricity Submit reports indicating the amount of fuel dispensed Compliance Timelines Upload Deadlines Submit Deadlines Q1 Reporting May 15 June 30 Q2 Reporting August 14 September 30 Q3 Reporting November 14 December 31 Q4 Reporting February 14 of the following year March 31 of the following year Annual Reporting April 30 of the following year Credits are saleable after these quarterly deadlines, never expire

18 Reporting Step 1. 18

19 Reporting Step 2 19

20 Check Your Credit Balance 20

21 How do I sell credits? The major refiners are the primary buyers in the LCFS Brokers are also available to facilitate credit transactions The credits can be bilaterally transferred between buyers and sellers Link to info about LCFS credit prices: 21

22 List of Registered Brokers Name Company Phone Jeff A Hove RINAlliance, Inc (515) David Dunn Progressive Fuels Limited (239) Dusty Granet BGC Enivronmental Brokerage Services, L.P. (646) Leonard D Hochschild Evolution Markets Inc. (415) Samantha Katz BGC Environmental Brokerage Services, L.P. (415) Noah Verleun Global Clean Energy Holdings (310) John A Kolozak Clear Energy Brokerage & Consulting LLC (312) Kirk Belch Amerex Brokers LLC (281) Contract Administration Anahau Energy, LLC (310) Mark e Luitwieler Peaker Energy Marketing (832) Nicole F Shaughnessy The Finerty Group, Inc. (415) Jackie N Ferlita ClimeCo Corporation (484) Christopher A Dufour GT Environmental Finance (512) Brian Carroll TFS Energy Futures LLC (212) Boris Bernstein ACT Commodities Inc. (415) Michael S Speichert Banyan Commodity Group LLC (239) Barry G Lamb Banyan Commodity Group (239) Andy Emerson Banyan Commodity Group LLC (239) Jason Sawicki Banyan Commodity Group, LLC (239) Larry Thrall Vireo Energy (310) Edward Calvin Charted Energy LLC (888) Shawn E Garvey Grant Farm (916) Mark Filimonov The Grant Farm (916) Ryan T Cook Clear Energy Brokerage & Consulting, LLC (616) Suyen E Pell Anahau Energy (310) Derek B Six ClimeCo Corporation (484) Andy Karetsky Skyview Finance Company (203) Thomas S Stama ClimeCo Corporation (484) Will Overly Blue Source LLC (801) Claire N Dumville Iogen Biofuel Holdings LLC (613) Sam W Weinhold Tethys Biofuels, LLC (312) Cristian D'Anna NCP West LLC (616) Christopher Dufour GT Environmental Finance (512)

23 Utilities Now Offering ZEV Rebates Using LCFS Credit Revenue Residential EV charging generates LCFS credits for utilities Proceeds from the sale of these credits by utilities are returned to EV drivers SMUD offering a $599 vehicle rebate PG&E offering a $500 vehicle rebate Other utilities to follow

24 24 Contacts: Jing Yuan, Ph.D., Lead Staff (916) Manisha Singh, Ph.D., Manager of Fuels Section (916) Sam Wade, Chief of Transportation Fuels Branch (916)