It’s Your Oregon

Oregon Clean Fuels Oregon Clean Fuels ProgramProgram

Jana Gastellum Program Director, Climate Protection

Oregon Electric Vehicle Association

January 10, 2013

It’s Your Oregon

OEC: Who We AreOEC: Who We Are

For more than 40 years we’ve been a champion for solutions to protect the health of every Oregonian and the health of the place we call home.

Our program work: Protect kids’ health from toxic pollution; Improve stewardship of Oregon’s rivers; Slow global warming; Create a sustainable food & farm system; Build a sustainable economy

We help individuals live green; We partner with professionals—businesses, farmers and health providers—to help them thrive with sustainable practices; We work with elected officials to create practical policy.

It’s Your Oregon

Oregon Clean Fuels Program

• Legislatively authorized in 2009 (HB 2186)

• Purpose: reduce the average carbon intensity of fuels 10% over a ten year period• Accelerate innovation• Spur Economic Development

• Program is back-loaded, allows time for a phase-in period

• Requires consumer cost safety nets

It’s Your Oregon

Why it matters

• Transportation responsible for largest share of state GHG emissions: need clean cars, clean fuels, reduce miles traveled

• Lost state incentives for EVs• Need economic programs to drive

investment and jobs in Oregon• Conventional oil is running out,

need smart transition to better fuels

It’s Your Oregon

Similar to RPSSimilar to RPSSets a target, many technologies help meet demand, credits created when clean energy is generated, benefits entire business supply chain

25%

Component Manufactures

Project developers

Land owners

Financiers Construction/Installers

Project Operators

It’s Your Oregon

Clean Fuels ProgramClean Fuels ProgramSets a target, many technologies help meet demand, credits generated when clean fuel is used, benefits entire business supply chain

10% CI reduction

Component Manufactures Project

developers

Charging stations and “hosts”

Financiers Construction/Installers

Vehicle manufacturers

It’s Your Oregon

How it worksHow it works• Two fuel pools: gasoline and diesel,

carbon baseline for each

• Fuels (sustainable biofuels, electricity, CNG, hydrogen) earn credits for being lower carbon than the baseline

• Automatically regulated parties: petroleum-based fuels, biofuels (ethanol and biodiesel part of baseline fuel pool)

• Opt-in participants: other low-carbon fuel producers

It’s Your Oregon

Creates opportunities for many fuel types

Fuel

OregonCarbon

Intensity* (gCO2e/MJ)

Gasoline 92.34Ultra Low Sulfur Diesel 91.53Compressed Natural Gas (CNG) 70.22Ethanol (Corn) 64.82Electricity 37.80Biodiesel (Midwest Soybeans) 19.99Cellulosic Ethanol (NW Farmed Trees) 15.54Biodiesel (Yellow Grease) 10.28* Without indirect effects

It’s Your Oregon

Specifics for EVsSpecifics for EVs• Statewide average number used for

electricity carbon intensityo Limits geographic bias for EV

deployment

• However, transportation-only electricity suppliers can apply for a separate carbon intensityo E.g., solar powered charging station

would have lower carbon value, could potentially earn more credits

• Inherent efficiency of electric drive train factored in

It’s Your Oregon

Specifics for EVs, cont.Specifics for EVs, cont.• Credits earned when electricity used

for transportation• Proposal:

o Credits rights go to1) bundled service provider 2) electricity generator 3) owner/operator of individual charging equipment (including home owner)

o In CA, value of credits returned to driver.

• Potential pilot project during Phase 1

It’s Your Oregon

Economic Benefits of Clean Economic Benefits of Clean Fuels ProgramFuels Program• Independent economic analysis

examined 8 scenarios:

• A: Cellulosic Biofuels w/ ILUC, In-state• B: Mixed Biofuels w/ ILUC, In-state• C: Mixed Biofuels w/o ILUC, In-state• D: EVs, NG, Cellulosic w/ ILUC, In-state• E: Single standard for both gas and diesel• F: C above, with higher oil prices• G: C above, but lower oil• H: Cellulosic biofuels w/ ILUC, Out-of-

state

It’s Your Oregon

Oregon LCFS

Economic Analysis Results

It’s Your Oregon

It’s Your Oregon

It’s Your Oregon

Changes in EmploymentChanges in Employment

It’s Your Oregon

Oregon CFP

Timeline

✓Legislation passed (2009)✓Advisory Committee (2010)✓EQC adopted Phase 1 (2012)•Lift 2015 sunset, resources (2013)•EQC adopt Phase 2 (2014)•Full program implementation (2015)

It’s Your Oregon

How you can help

• Endorse on CleanFuelsNow.com

• Recruit other businesses to endorse

• Contact your legislator: remove the sunset, provide DEQ with resources

• Write LTE• Interest in pilot program?

It’s Your Oregon

For More InformationFor More Information

CleanFuelsNow.com

Jana Gastellum, janag@oeconline.org 503.222.1963 x. 107