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Oregon Clean Fuels Program

Oregon Clean Fuels Program. Jana Gastellum Program Director, Climate Protection Oregon Electric Vehicle Association January 10, 2013. OEC: Who We Are.

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Oregon Clean Fuels Program

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  1. Oregon Clean Fuels Program Jana Gastellum Program Director, Climate Protection Oregon Electric Vehicle Association January 10, 2013

  2. OEC: 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.

  3. 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

  4. 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

  5. Similar to RPS Sets a target, many technologies help meet demand, credits created when clean energy is generated, benefits entire business supply chain 25% Component Manufactures Project developers Project Operators Land owners Construction/Installers Financiers

  6. Clean Fuels Program Sets 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 Vehicle manufacturers Charging stations and “hosts” Financiers Construction/Installers

  7. How 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

  8. Creates opportunities for many fuel types * Without indirect effects

  9. Specifics for EVs • Statewide average number used for electricity carbon intensity • Limits geographic bias for EV deployment • However, transportation-only electricity suppliers can apply for a separate carbon intensity • E.g., solar powered charging station would have lower carbon value, could potentially earn more credits • Inherent efficiency of electric drive train factored in

  10. Specifics for EVs, cont. • Credits earned when electricity used for transportation • Proposal: • Credits rights go to1) bundled service provider 2) electricity generator 3) owner/operator of individual charging equipment (including home owner) • In CA, value of credits returned to driver. • Potential pilot project during Phase 1

  11. Economic Benefits of Clean Fuels 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

  12. Oregon LCFSEconomic Analysis Results

  13. Changes in Employment

  14. Oregon CFPTimeline ✓ 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)

  15. 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?

  16. For More Information CleanFuelsNow.com Jana Gastellum, janag@oeconline.org503.222.1963 x. 107

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