Agenda

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SUSTAINABILITY COMMITTEE

Meeting Date:	01/28/2019
Subject: APPROVE and AUTHORIZE the Public Works Director, or designee, to enroll in Calif. Air Resources Board (CARB) Low Carbon Fuel Standard (LCFS) program.
Submitted For:	Jody London, Sustainability Coordinator
Department:	Conservation & Development
Referral No.:
Referral Name:	APPROVE and AUTHORIZE the Public Works Director, or designee, to enroll in Calif. Air Resources Board (CARB) Low Carbon Fuel Standard (LCFS) program.
Presenter:	Warren Lai, Public Works	Contact:	Jody London (925)674-7871

Information

Referral History:

Recommend that the Board of Supervisors APPROVE and AUTHORIZE the Public Works Director, or designee, to submit an application to enroll and to participate in the California Air Resources Board (CARB) Low Carbon Fuel Standard (LCFS) program.

Referral Update:

The California Air Resources Board developed the Low Carbon Fuel Standard program to reduce the Carbon Intensity (CI) of the California fuel pool by at least 10% by 2020. Similar to the Cap- and-Trade program for stationary pollution sources, the LCFS creates a means for entities that produce fuels with a carbon intensity higher than standard levels (deficits) to provide funding to entities that produce fuels with a lower than standard carbon level (credits). An example of a “deficit” generator is an oil refinery; a “credit” generator is an entity such as Contra Costa County that provides clean electricity to electric vehicle charging stations. By participating in the program, the County will receive program credits for each kWh delivered to electric vehicle chargers owned and operated by the County. These credits can be monetized through the CARB LCFS program and the proceeds used to offset the cost of owning and operating the electric vehicle chargers and/or to reduce the cost of charging for employees and the public. County facilities powered by solar generate more credits because their CI is lower.

Contra Costa County currently has a dozen Level 2 Chargers in service. Fourteen additional chargers are currently being installed at the new parking lot at 1126 Escobar Street, two at 30 Muir and one at 255 Glacier. On November 13, 2018 the Board of Supervisors authorized the Director of Public Works to participate in the PG&E EV Charge Network program. It is anticipated that twenty to fifty additional chargers will be installed under this program.

By participating, the County will receive one credit for each 1,300 kWh delivered to their EV chargers. Currently a credit is valued at $200 which equates to an incentive of $0.15 per kWh delivered to the EV charger. If the facility where the EV charger is located is powered by solar (an even a lower carbon intensity source) the value of the credit increases by a third to $0.20/kWh.

On average the County pays around $.20/kWh. Participating in the LCFS program would allow the County to provide reasonably priced power to EV drivers and possibly even create a new revenue stream for the County. Participants can choose to sell their credits directly to the refineries or use a qualified broker that takes a percentage of the monetized credit.

The LCFS program can provide a viable, easily obtainable, and continuing cash flow stream to support the use of electric vehicles in the County.

Recommendation(s)/Next Step(s):

Fiscal Impact (if any):

There is no cost to enroll and participate in the CARB LCFS program.

Attachments
LCFS Background Info - Attachment (2)