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

Transcript

1. OPPORTUNITIES FOR GREEN POWER EV CHARGING IN CALIFORNIA’S LCFS PROGRAM WEDNESDAY, AUGUST 5, 2020
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.
3. © 2020 Center for Resource Solutions. All rights reserved.
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
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
6. Electric Transportation Categories Eligible for LCFS Crediting 3
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
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
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
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.
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
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
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
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
15. 12 THANK YOU
16. THE LCFS, VOLUNTARY GREEN POWER, & THE GREEN-E® PROGRAM © 2020 Center for Resource Solutions. All rights reserved.
17. Chapter 01. VOLUNTARY GREEN POWER & THE GREEN-E® PROGRAM. PAGE 17 © 2020 Center for Resource Solutions. All rights reserved.
18. 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
19. 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)
20. 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.
21. 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.
22. Chapter 02. CALIFORNIA’S PROGRAMS & REGULATORY SURPLUS FOR THE VOLUNTARY MARKET. PAGE 22 © 2020 Center for Resource Solutions. All rights reserved.
23. Cap-and-trade. PAGE 23 © 2020 Center for Resource Solutions. All rights reserved. The cap. A reduced cap (year 3).
24. 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.
25. 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.
26. Chapter 03. GREEN-E® PROGRAM REQUIREMENTS FOR CAP-AND-TRADE & LCFS. PAGE 26 © 2020 Center for Resource Solutions. All rights reserved.
27. 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.
28. 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.
29. 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.
30. 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
31. 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
32. 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
33. Q&A PAGE 33 © 2020 Center for Resource Solutions. All rights reserved.
35. © 2020 Center for Resource Solutions. All rights reserved. Contact. Todd Jones DIRECTOR, POLICY Center for Resource Solutions todd.jones@resource-solutions.org Jacob Englander, PhD STAFF AIR POLLUTION SPECIALIST California Air Resources Board jacob.englander@arb.ca.gov www.resource-solutions.org