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

1. Emerging Opportunities with the
Low Carbon Fuel Standard
Peter Weisberg
American Biogas Council/Bioenergy Association of California
Webinar
April 17, 2014

2. Biogas Climate Benefits
Example project: 2,000 cow dairy, 750 kw digester
Renewable
electricity
21%
Avoided
methane
emissions
79%

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. Ownership of climate attributes
Renewable energy
(displacing fossil fuel)
Avoided methane
emissions
Carbon Offset x
REC x
LCFS Credit x x

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. 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. $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. 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. 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. Key Barrier: Financing projects
• LCFS market is
– Nascent
– Volatile
– Complex
– Under legal challenge
– Policy dependent (demand = policy, supply = policy)
•  credits are not “bankable”

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. 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. 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. Thank you!
Peter Weisberg
Program Manager
The Climate Trust
pweisberg@climatetrust.org
503-238-1915 x207