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Opportunities for Green Power Electric Vehicle Charging in California’s Low Carbon Fuel Standard Program

Opportunities for Green Power Electric Vehicle Charging in California’s Low Carbon Fuel Standard Program

Please join us for this free webinar covering electric vehicles (EVs) and green power in the Low Carbon Fuel Standard (LCFS). We provided an overview of LCFS program, credits for EV charging, and credits for charging with green power (low-carbon-intensity electricity). We described opportunities for owners of vehicle charging equipment that buy green power as well as green power providers and renewable energy certificate (REC) providers. We also discussed interactions with the state’s Voluntary Renewable Energy Program (VREP), the Renewable Portfolio Standard (RPS), and the Green-e® certification program, including recent changes to Green-e® program rules for 100% renewable electricity products and solutions for impactful green power EV charging in California. We addressed common questions about how different providers and buyers can participate in multiple programs.

We were very excited to welcome Dr. Jacob Englander from the California Air Resources Board (CARB), the agency’s primacy contact for LCFS reporting and credits related to low-CI electricity.

This webinar is aimed at:

• Green power providers (e.g. utilities and community choice aggregators)
• REC marketers
• EV charging station owners
• EV fleet owners
• Transit agencies
• Other owners of charging equipment

Speakers
• Dr. Jacob Englander, CARB
• Todd Jones, CRS

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Transcript

  1. OPPORTUNITIES
    FOR GREEN POWER
    EV CHARGING
    IN CALIFORNIA’S LCFS
    PROGRAM
    WEDNESDAY, AUGUST 5, 2020

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  2. • Intro to LCFS
    • Overview of credits for EV charging
    • Credits for charging with green power (low-CI electricity)
    • Requirements for FSE owners and green power providers
    • Interactions with the VREP
    • Interactions with the Green-e® certification program
    • Recent changes to Green-e® program rules
    • Green power for EV charging to create additional benefits
    • Specific questions and scenarios
    • Q&A
    OUTLINE
    PAGE
    2
    © 2020 Center for Resource Solutions. All rights reserved.

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  3. © 2020 Center for Resource Solutions. All rights reserved.

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  4. Low Carbon Fuel Standard
    and
    Transportation Electrification
    Jacob Englander, PhD
    Staff Air Pollution Specialist
    Opportunities for Green Power EV Charging in California’s LCFS
    August 5, 2020

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  5. Low Carbon Fuel Standard (LCFS)
    California’s primary program to promote alternative fuel use in the transportation sector
    • Reduce carbon intensity of transportation fuels
    • Transform and diversify fuel pool
    • Reduce petroleum dependency
    • Reduce emissions of criteria pollutants and toxics
    Transportation sector accounts for ~50% of State’s
    GHG inventory when industrial emissions from
    refining and oil production are included
    2

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  6. Electric Transportation Categories Eligible
    for LCFS Crediting
    3

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  7. Electric Transportation Categories Eligible
    for LCFS Crediting
    Base Credits:
    ම Only Electrical Distribution Utilities (EDUs) are eligible
    ම Credits used to:
    ම Establish Clean Fuel Reward Program
    ම Support equity programs
    ම Credits based on difference between gasoline benchmark
    and California grid average CI
    Incremental Credits:
    ම Registration based on VINs and metered EV charging
    ම Must have low-CI pathway
    ම Hierarchy for incremental claims:
    1. Load Serving Entities (EDU + Community Choice aggregators)
    2. Automakers
    3. Others (EVSP, etc.)
    ම Credits based on difference between Grid average and low-
    CI
    4

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  8. Electric Transportation Categories Eligible
    for LCFS Crediting
    On-road non-residential EV charging:
    ම Includes light- and heavy duty EV charging
    ම Register by charging equipment
    ම Public, workplace, and fleet charging (including transit)
    ම Credits based on difference between benchmark and
    reported CI
    Off-road:
    ම Shore Power for Oceangoing vessels At-berth (eOGV)
    ම Transportation Refrigeration Unit (eTRU)
    ම Cargo Handling Equipment (eCHE)
    ම Electric Forklifts
    ම Fixed Guideway Systems
    5

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  9. Estimated LCFS Value
    Electric Transportation Type
    LCFS Value* (cents/kWh)
    Grid Avg. CI**
    Electricity
    Zero-CI
    Electricity
    Residential EV Charging (Incremental Credit) NA 6.0
    Light-duty EV Charging (EER 3.4) 16.9 22.8
    Heavy-Duty EV Charging (EER 5) 27.6 33.6
    eOGV (EER 2.6) 11.5 18.1
    eCHE (EER 2.7) 12.2 22.9
    6
    *Assuming LCFS credit price of $200
    **Using Grid Average CI value of 82.92 gCO2
    e/MJ available for 2020 reporting

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  10. Key Steps for Generating LCFS Credits for
    Supplying Electricity
    7
    Establish account in the LCFS Reporting Tool (LRT)
    Step 1
    •In the quarter during which the EV charging takes place
    •Example: For EV charging during Q2, register in the LRT by June 30th. Reporting for Q2 occurs Jul-Sep.
    Register Fueling Supply Equipment (FSE)
    Step 2
    •Ideally by the end of quarter during which EV charging takes place
    •Example: For EV charging during Q2, ideally register the FSE by June 30th. Reporting for Q2 occurs Jul-Sep.
    Identify and apply for a fuel pathway (Carbon Intensity) to use for reporting
    Step 3
    •More details in the following slides
    Complete quarterly reporting for credit issuance
    Step 4
    •Data upload deadline (45-day after end of quarter); quarterly report submission deadline (90-days after end of quarter)
    •Credits are issued after the reporting deadline
    •Example: For EV Charging taking place during Q2, upload data by August 15th and submit final report by September 30th. Credits will
    be issued on October 1st.

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  11. Different Electricity Pathway Options
    ම Plan sufficiently ahead of time to ensure a desired pathway is available for reporting
    ම Refer Guidance on Book-and-Claim Accounting for Low-CI Electricity
    https://www.arb.ca.gov/fuels/lcfs/guidance/lcfsguidance_19-01.pdf
    8
    Lookup Table
    Pathways
    California
    Average
    Grid
    Smart
    Charging
    Tier 2
    Pathways
    All other low-
    CI electricity
    resources
    Zero-CI
    Electricity Pathway Options in LCFS - No application required
    - Readily available
    - Simple and quick application process
    - Ideally apply before end of quarter during
    which EV charging takes place
    - Slightly more involved application process
    - Time depends on pathway complexity
    - Ideally apply two-three quarters in advance

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  12. REC retirement Guidelines for low-CI
    electricity pathways
    • Deliverability
    • Located within a California Balancing Authority or delivered to a California Balancing Authority without
    substitution (PUC code 399.16 Subdivison (b)(1))
    • Additionality
    • Low-CI electricity must be in addition to California Renewable Portfolio Standard (RPS) obligation
    •Time Limit
    • Three quarter limit from electricity delivery to charging event
    9

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  13. Further details regarding Additionality and
    LCFS pathway requirements for Electricity
    • Further notes on Additionality
    • RECs for the low-CI electricity cannot be claimed in any other program with the exceptions of:
    • Federal Renewable Fuel Standard (RFS)
    • California Cap-and-Trade (Low-CI electricity claimed in the Voluntary Renewable Electricity (VRE) program is not
    eligible for LCFS crediting because VRE prohibits claims on the renewable electricity or the use of RECs in any other
    voluntary or mandatory program)
    • LCFS Pathway requirements
    • Lookup Table Pathway
    • Reporting Entity must be pathway holder
    • Green Tariff:
    • Load Serving Entity is the pathway holder and retires RECs
    • Reporting Entity demonstrates participation in tariff
    • For more details, we have published guidance 19-01 Guidance document on Book-and-Claim
    Accounting for low-CI electricity
    10

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  14. Use LCFS Credit Proceeds to Promote
    Transportation Electrification
    ම Reporting Entities must use credit proceeds to promote transportation electrification
    ම Expansion of electrification of equipment
    ම Paying of debt or equity for electrification capital
    ම Supplying low-CI electricity
    ම Rebates for used EVs
    ම On-bill credit to EV customers
    ම Invest in residential and non-residential charging infrastructure
    ම Educate public and customers on the benefits of EV transportation
    ම Rate options to encourage off-peak charging and provide grid benefits
    ම Other ideas?
    ම Provide an annual itemized summary of the spending
    11

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  15. THE LCFS, VOLUNTARY
    GREEN POWER, & THE
    GREEN-E® PROGRAM
    © 2020 Center for Resource Solutions. All rights reserved.

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  16. Chapter 01.
    VOLUNTARY GREEN POWER &
    THE GREEN-E® PROGRAM.
    PAGE
    17
    © 2020 Center for Resource Solutions. All rights reserved.

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  17. Renewable energy sales in voluntary,
    compliance, and other markets,
    2010–2017
    PAGE
    18
    © 2020 Center for Resource Solutions. All rights reserved.
    Source: National Renewable Energy Laboratory
    https://www.nrel.gov/analysis/green-power.html
    Renewable Capacity Additions,
    2000–2018
    Source: Lawrence Berkeley National Laboratory
    https://eta-publications.lbl.gov/sites/default/files/rps_annual_status_update-
    2019_edition.pdf
    Millions of MWh
    U.S. Voluntary Renewable Energy Market

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  18. PAGE
    19
    © 2020 Center for Resource Solutions. All rights reserved.
    The leading third-
    party certification
    for voluntary
    renewable energy.
    Green-e® Certified Sales By Customer Type (In MWH)

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  19. PAGE
    20
    © 2020 Center for Resource Solutions. All rights reserved.
    The leading third-party
    certification for voluntary
    renewable energy.
    New projects.
    Verification.
    No double counting.
    Surplus to regulation.

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  20. Voluntary means surplus to regulation.
    Beyond no double counting.
    Building on compliance.
    Generation that reduces emissions.
    Clear voluntary claims.
    Driving the development of renewable energy.
    Moving the needle.
    What is “Regulatory Surplus?”
    PAGE
    21
    © 2020 Center for Resource Solutions. All rights reserved.

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  21. Chapter 02.
    CALIFORNIA’S PROGRAMS &
    REGULATORY SURPLUS FOR
    THE VOLUNTARY MARKET.
    PAGE
    22
    © 2020 Center for Resource Solutions. All rights reserved.

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  22. Cap-and-trade.
    PAGE
    23
    © 2020 Center for Resource Solutions. All rights reserved.
    The cap. A reduced cap (year 3).

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  23. Cap-and-trade & Voluntary Renewable
    Energy.
    PAGE
    24
    © 2020 Center for Resource Solutions. All rights reserved.
    1. The cap. 2. New voluntary renewable
    energy reduces emissions,
    creating “space” under the
    cap…
    3. ...that fossil-fuel emissions
    can fill.

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  24. PAGE
    25
    EV charging in California supports
    LCFS.
    LCFS reduces emissions under the
    cap.
    Charging EVs with green power
    generates creates more reductions
    under the cap.
    Regulatory Surplus
    & the LCFS.
    © 2020 Center for Resource Solutions. All rights reserved.

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  25. Chapter 03.
    GREEN-E® PROGRAM
    REQUIREMENTS FOR
    CAP-AND-TRADE & LCFS.
    PAGE
    26
    © 2020 Center for Resource Solutions. All rights reserved.

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  26. Cap-and-trade, without a set-aside.
    PAGE
    27
    © 2020 Center for Resource Solutions. All rights reserved.
    1. The cap. 2. New voluntary renewable
    energy reduces emissions,
    creating “space” under the
    cap…
    3. ...that fossil-fuel emissions
    can fill.

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  27. Cap-and-trade, with a set-aside.
    PAGE
    28
    © 2020 Center for Resource Solutions. All rights reserved.
    1. The cap. 2. New voluntary renewable
    energy reduces emissions,
    creating “space” under the
    cap.
    3. The space under the cap
    remains only if allowances
    are retired—e.g. as part of the
    VREP.

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  28. CARB: RECs used to verify use of
    low-CI electricity for the LCFS
    cannot also be used for the VREP.
    The Green-e® program requires
    the VREP.
    The Green-e® program and the
    LCFS are generally incompatible,
    except…
    LCFS & the Green-e®
    Program
    PAGE
    29
    © 2020 Center for Resource Solutions. All rights reserved.

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  29. New Green-e® program rules for 100%
    renewable electricity products that
    include renewable energy used for
    the LCFS.
    • 25% “voluntary” threshold.
    • Resources still need to meet the Green-e®
    Standard.
    • Allowances will not be retired for LCFS portion.
    • Additional disclosure required.
    • Pre-approval by Green-e® Staff required.
    PAGE
    30
    © 2020 Center for Resource Solutions. All rights reserved.
    LCFS & the Green-e®
    Program

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  30. Participate in both the Green-e®
    program and LCFS and create
    benefits beyond LCFS.
    1. Double buy green power for EV charging.
    2. Onsite solar for EV charging, keep the RECs,
    and apply to the VREP.
    3. Purchase allowances.
    PAGE
    31
    © 2020 Center for Resource Solutions. All rights reserved.
    Solutions to Increase
    Impact

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  31. Common Questions
    1. Issuance of base LCFS credits or LCFS credits
    for grid average electricity use for charging by
    customers buying Green-e® certified renewable
    energy
    2. CEC rules for voluntary programs using the
    LCFS
    PAGE
    32
    © 2020 Center for Resource Solutions. All rights reserved.
    LCFS & the Green-e®
    Program

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  32. Q&A
    PAGE
    33
    © 2020 Center for Resource Solutions. All rights reserved.

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  33. © 2020 Center for Resource Solutions. All rights reserved.
    Contact.
    Todd Jones
    DIRECTOR, POLICY
    Center for Resource Solutions
    [email protected]
    Jacob Englander, PhD
    STAFF AIR POLLUTION SPECIALIST
    California Air Resources Board
    [email protected]
    www.resource-solutions.org

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