HomeMy WebLinkAbout16 Monetize LCFS Credits_020222
Monetization of Current Low Carbon Fuel Standard (LCFS) Credits
Background Important Termsavoided CO2 emissions.Unit of trade within the LCFS program. One credit represents one ton of : LCFS Creditsemissions from traditional high carbon fuels in
the transportation sector.A Cap and Trade framework which assigns value to avoided CO2 LCFS Program:of traditional fossil fuels. For the District this is electricity.A Low Carbon energy
source used to fuel transportation vehicles in place Fuel Pathways: )owned public charging stationsCredits received from directly metered electricity used for EV charging (District
Pathway Credits:registration data in Truckee.metered EV charging in District territory using DMV -CARB estimates non Base Credits:The District generates LCFS credits quarterly from
two sources:-transportation equipment.to fuel sold electricity LCFS credits earned for -Registered with CARB in 2017 as an electric “Load Serving Entity” & fuel “pathways” within LCFS
program.-
Current Balance and Forecasted Accruals Forecasted AccrualsCurrent balance budget cycleForecast of 579 credits for ’22 to ’23 -No credits have been sold to date-2017Credits have continued
to accrue since -30227730220232771,0472772022 1,04702792021 76801712020597025420193430196201814701472017 EOY BalanceCredits SoldCredits ReceivedYear\[Presentation Header/Title\]
LCFS Credit Valuation$193,6361,3642023 Budget Cycle-Total for 2022$44,962317Forecasted Credits (per Year)$148,6741,047Existing CreditsValueLCFS Credits.per credit$142 -fuelscontent in
transportation program accelerates the reduction of carbon Expected to continue declining as intention of -.downward trendfor LCFS credits is displaying Market -
Spending Requirements.beyondand2024in%50tofinallythenand2023in%40toincreasespercentageminimumThe.areaRural)4(individuals,income-Low)3(communities,income-Low)2(communities,Disadvantaged)1(serving)prim
arily(orofbenefitprimarytheforelectrificationtransportationsupporttousedbemustCFRtocontributednotcreditstheof%30ofminimuma2022,1JanuaryStartingRequirementsEquity Holdback Credit 2023inbeginningCFRthe
tocreditsbaseof%2ofminimumacontributemust(POUs)utilitiesownedpublicallySmall(CFR) ProgramClean Fuel Reward DescriptionCategory benefits of EV transportation.information and material
it inform the public on the programs to provide & outreach education, Market, 2)Promote the use of electric transportation.4)benefits.provide grid peak hours to -EV charging during
offEncourage 3)infrastructure.direct 2).equipmentelectrification transportation or other for purchasing/leasing EV’sSupport 1)Provide incentives:1)…tousedbecansalesCreditLCFSfromreceivedFunds
Sales Process st 31NCPA Sale expected to happen March -price.scale as to improve the potential sale utilities to aggregate to a large enough together LCFS credits from its member is
currently preparing to pool NCPA -Important Dates.CBTS (online tool) to sell on its behalf-LRTTDPUD can allocate its existing LCFS credits to NCPA through the -.commodities on behalf
of its member utilitiesPurchase Program which enables NCPA to buy and/or sell certain provides a service to its member utilities under the Market NCPA -
Planned Usage of Proceeds Current Rebate Offeringstrucks.public transit buses, school buses, or drayage towards electrification of local Contributions -Evstowards purchase of new or
used Rebates -benefitsoptions and outreach regarding electric transportation marketing, education, and Multilingual -Additional activities may include:-.of our communityprojects which
will benefit disadvantaged members identify potential transportation electrification working with community partners to Actively -decarbonization goalsSuch programs are consistent with
District -transportation electrificationStaff have expanded rebate program targeting -increase)(may 1,000 $Main Panel Upgrade (Residential)$2,000Commercial EV Chargers$700Residential
EV chargers (Smart Charger)$500Residential EV chargers (Base Charger)(per)Incentive Amount Measure
Fiscal Impact the load growth associated with transportation electrification.Indirectly, the District will see incremental increases in revenue due to -cycle2023 budget -the 2022requirements
and worked the associated expenses into the budget for Staff have already developed programs which will meet CARB -auction sale proceeds)account (similar to AB32 will be deposited in
a restricted cash Funds -$193,636for a combined total of and an estimated $44,962 each year for the 2022/2023 budget cycle Sale will generate unbudgeted revenue of $148,674 for the
initial sale -
Recommendation for year 2022 and annually thereaftera quantity up to 1,100, which is estimated to result in unbudgeted revenue and restricted cash funds to the District the General Manager
to sell District owned Low Carbon Fuel Standard (LCFS) credits in the LCFS market of Authorize B.Program.(NCPA) to enter into NCPA’s Market Purchase the General Manager to execute an
agreement (Attachment F) with Northern California Power Agency Authorize A.