CEC Adopts Clean Transportation Funding Program

The California Energy Commission has adopted a new Clean Transportation Funding Plan (formerly known as the ARFVTP or AB 118 program) for 2019-2020.  The overall funding remains at $100 million annually, but the CEC cut biofuels funding from $20 million to $10 million.  The biofuels funding is now limited to low carbon, waste-based fuels and renewable hydrogen.

To read the full plan, see CEC’s 2019-20 Clean Transportation Funding Plan.

Legislative Analyst Critiques State’s Transportation Climate Programs

In December 2018, the non-partisan Legislative Analyst’s Office released reports on the state’s climate change mitigation programs.  The reports noted a lack of coordination across programs, significant duplication, and a number of programs that are not cost-effective or effective at all.  The LAO singled out the state’s transportation programs in a stand-alone report that shows that most of the state’s programs are failing to show measurable progress, particularly the state’s investments in zero-emission vehicles.  The LAO report found that the only transportation sector that has made progress in reducing climate emissions is the heavy duty sector and that those are also the most cost-effective investments in climate and air pollution reductions.

Read the full report here: LAO climate-policies-transportation-122118

Biofuels Coalition Opposes LCFS Infrastructure Credit

In recent amendments to the Low Carbon Fuel Standard, the California Air Resources Board has proposed giving Low Carbon Fuel Standard (LCFS) credit to hydrogen and electric vehicle fueling stations, whether or not they provide low carbon fuels and regardless of the carbon intensity of the hydrogen or power provided.  BAC and other biofuels producers submitted a joint letter objecting to this proposal as it would undercut the core strength of the LCFS program, which is based solely on the lifecycle carbon intensity of fuels.  Picking technology winners and losers takes away the performance (science) based foundation of the LCFS program and makes if far less likely to achieve the state’s carbon and petroleum reduction goals.

See Biofuels Coalition letter on LCFS

BAC Comments on Proposed LCFS Changes

BAC provided comments on several of the proposed changes to the LCFS that would adversely affect the instate biomethane industry, including a proposed reduction in the 2020 target, proposed change to biomethane that would require it to meet pipeline standards whether or not it will be injected into a utility pipeline, carbon intensities for temporary fuel pathways that are much higher than the actual carbon intensities for biomethane projects, and other changes.

See BAC Comments on Proposed LCFS changes

Air Resources Board Proposes LCFS Amendments

Thee California Air Resources Board has proposed major changes to the Low Carbon Fuel Standard, including changes to the 2020 and 2030 targets for carbon intensity, changes to the definition of “biomethane,” temporary carbon intensity levels for various types of fuels, and other changes that could have major impacts on biomethane development in California.

See ARB Proposed Amends to LCFS Rules

ARB Proposal for Low Carbon Transportation Funding

In February, the California Air Resources Board released staff proposals on how ARB would spend the proposed $363 million in Low Carbon Transportation funding (from Cap and Trade revenues) if the Legislature approves the funding later this year.  The staff proposals include funding plans for Low Carbon Fuels and for Heavy Duty Vehicles.  ARB is holding workshops in March to discuss the draft plans.  Details about the workshops are available on ARB’s website.  The staff drafts are below.

ARB staff presentation on Low Carbon Transpo Investments (Feb2017)

ARB HDV 3-year funding plan (Feb2017)

BAC Comments on Transportation Plan for 2030 GHG Reductions

The California Air Resources Board has developed a draft plan for reducing climate pollution from the transportation sector.  BAC’s comments on the draft plan focus on the need for greater transparency, specific goals for large trucks that cause a disproportionate share of emissions, focus on lifecycle emissions, and incentives for the most cost-effective emissions reductions.

See BAC Comments on 2030 SP Update (Transportation)

BAC Comments on CEC’s Proposed Biofuels Funding Plan

The California Energy Commission administers the Alternative and Renewable Fuel and Vehicle Technology Program, which provides approximately $100 million in funding per year.  At a recent staff workshop, the CEC presented its staff proposal for the biofuels portion of that funding.  The staff proposal stated that its goals are are to reduce carbon intensity, increase waste based fuels and fund technology transformation.  The proposed funding allocations, however, prioritize very high volume production facilities, which excludes most waste based fuels that are more distributed in nature.  See BAC Comments on Biofuels Solicitation Concepts.