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Emerging Opportunities with the 
Low Carbon Fuel Standard 
Peter Weisberg 
American Biogas Council/Bioenergy Association o...
Biogas Climate Benefits 
Example project: 2,000 cow dairy, 750 kw digester 
Renewable 
electricity 
21% 
Avoided 
methane ...
Environmental Markets for Biogas 
Market Credit Biogas Use Geographic 
Limitation 
California 
Cap-and-Trade 
Carbon Offse...
Ownership of climate attributes 
Renewable energy 
(displacing fossil fuel) 
Avoided methane 
emissions 
Carbon Offset x 
...
99.18 
68 
13.45 
-15.29 
120 
100 
80 
60 
40 
20 
0 
-20 
-40 
Gasoline Compressed Natural Gas Dairy Biogas Food Waste B...
100 
80 
60 
40 
20 
0 
Carbon Intensity of Crude Oil - 99.18 gCO2e/MJ 
LCFS Carbon Intensity Targets 
Deficits 
Credits 
...
$90.00 
$80.00 
$70.00 
$60.00 
$50.00 
$40.00 
$30.00 
$20.00 
$10.00 
$- 
California LCFS Price ($/mtCO2e) 
Jan-13 Feb-1...
LCFS Value to Biogas 
Food Waste (HSAD) Carbon Intensity: -15.29 
$/mtCO2e $/MMBTU1 $/DGE1 
(diesel gallon 
equivalent) 
C...
LCFS Value to Biogas 
Dairy Digestion Carbon Intensity: 13.45 
$/mtCO2e $/MMBTU1 $/DGE1 
(diesel gallon 
equivalent) 
Curr...
Key Barrier: Financing projects 
• LCFS market is 
– Nascent 
– Volatile 
– Complex 
– Under legal challenge 
– Policy dep...
Emerging Solutions! 
• Price Floor/Price Ceiling: 
– April 4th “Cost Containment Provision” workshop 
– “Determine” price ...
Green Credit Reserve (AB 2390) 
• State contracts to buy LCFS credits 
during project development. 
– Fixed price 
– Long ...
Expansion to New States 
• Pacific Coast Collaborative 
– October 2013: Oregon, Washington, British Columbia 
and Californ...
Thank you! 
Peter Weisberg 
Program Manager 
The Climate Trust 
pweisberg@climatetrust.org 
503-238-1915 x207
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Emerging Opportunities with the Low Carbon Fuel Standard

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Emerging Opportunities with the Low Carbon Fuel Standard: biogas climate benefits, environmental markets for biogas, ownership of attributes, key barriers and emerging solutions.

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Emerging Opportunities with the Low Carbon Fuel Standard

  1. 1. Emerging Opportunities with the Low Carbon Fuel Standard Peter Weisberg American Biogas Council/Bioenergy Association of California Webinar April 17, 2014
  2. 2. Biogas Climate Benefits Example project: 2,000 cow dairy, 750 kw digester Renewable electricity 21% Avoided methane emissions 79%
  3. 3. Environmental Markets for Biogas Market Credit Biogas Use Geographic Limitation California Cap-and-Trade Carbon Offset Any Anywhere in the US State Renewable Portfolio Standard REC (Renewable Energy Certificate) Electricity generation Depends on state renewable portfolio standard California Low Carbon Fuel Standard LCFS Credit Transportation fuel Fuel consumed in California US Renewable Fuel Standard RIN (Renewable Identification Number) Transportation fuel Anywhere in the US
  4. 4. Ownership of climate attributes Renewable energy (displacing fossil fuel) Avoided methane emissions Carbon Offset x REC x LCFS Credit x x
  5. 5. 99.18 68 13.45 -15.29 120 100 80 60 40 20 0 -20 -40 Gasoline Compressed Natural Gas Dairy Biogas Food Waste Biogas Carbon Intensity (gCO2e/MJ)
  6. 6. 100 80 60 40 20 0 Carbon Intensity of Crude Oil - 99.18 gCO2e/MJ LCFS Carbon Intensity Targets Deficits Credits 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Carbon Intensity (gCO2e/MJ) California’s Low Carbon Fuel Standard Carbon Intensity of Compressed Biomethane from Dairy Farms - 13.45 gCO2e/MJ
  7. 7. $90.00 $80.00 $70.00 $60.00 $50.00 $40.00 $30.00 $20.00 $10.00 $- California LCFS Price ($/mtCO2e) Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14
  8. 8. LCFS Value to Biogas Food Waste (HSAD) Carbon Intensity: -15.29 $/mtCO2e $/MMBTU1 $/DGE1 (diesel gallon equivalent) Current $19.50 $2.33 $0.30 Average $53.32 $6.38 $0.83 High $85.00 $10.16 $1.32 1 $/MMBTU and $/DGE prices for 2014; credits generated per MMBTU or DGE vary annually as the CA LCFS carbon intensity target is adjusted down.
  9. 9. LCFS Value to Biogas Dairy Digestion Carbon Intensity: 13.45 $/mtCO2e $/MMBTU1 $/DGE1 (diesel gallon equivalent) Current $19.50 $1.74 $0.23 Average $53.32 $4.76 $0.62 High $85.00 $7.58 $0.98 1 $/MMBTU and $/DGE prices for 2014; credits generated per MMBTU or DGE vary annually as the CA LCFS carbon intensity target is adjusted down.
  10. 10. Key Barrier: Financing projects • LCFS market is – Nascent – Volatile – Complex – Under legal challenge – Policy dependent (demand = policy, supply = policy) •  credits are not “bankable”
  11. 11. Emerging Solutions! • Price Floor/Price Ceiling: – April 4th “Cost Containment Provision” workshop – “Determine” price ceiling – “Explore” price floor • Contracts – Regulated entities hesitant to enter long-term contracts –  Green Credit Reserve
  12. 12. Green Credit Reserve (AB 2390) • State contracts to buy LCFS credits during project development. – Fixed price – Long terms – Payment on delivery • AB 2390 legislative status – Assembly • Passed Natural Resource Committee • Must pass Appropriations Committee
  13. 13. Expansion to New States • Pacific Coast Collaborative – October 2013: Oregon, Washington, British Columbia and California “committed to adopting and maintaining low carbon fuel standards in each jurisdiction.” • Oregon: – Current LCFS (Clean Fuels Program) expires in 2015. – Requires legislative extension. • Washington: – May have authority under state Clean Air Act to adopt a LCFS
  14. 14. Thank you! Peter Weisberg Program Manager The Climate Trust pweisberg@climatetrust.org 503-238-1915 x207

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