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Industry Questions on Applying a LCFS to Residential Heating & Hot Water Systems

Understand the impact of a LCFS on building energy efficiency, environmental standards, and fuel switching. Consider factors such as emissions data, appliance efficiency, air pollution, infrastructure costs, conversion costs, fuel supply projections, and homeowner lifestyle changes. Explore the potential impact on R&D efforts.

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Industry Questions on Applying a LCFS to Residential Heating & Hot Water Systems

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  1. Industry Questions on Applying a LCFS to Residential Heating & Hot Water Systems • How does a LCFS interact with current and future Federal, regional and state building energy efficiency and environmental ? • If fuel switching is employed based on CO2e alone how do you account for: • Keeping the life-cycle emissions data current • Appliance efficiency differences • Impacts of other air pollutants on the region • Additional infrastructure costs • Homeowner conversion costs • Projections of fuel supply, demand and cost • Other life cycle emissions impacts • Required homeowner lifestyle changes • Impact on current R&D efforts 1

  2. Liquid Fuels Industry Plans • There is no silver bullet • Multiple energy sustainable pathways are required • The industry has decided to move to ultralow sulfur fuel as soon as practicable • The industry is committed to accelerate the blending with sustainable biofuels - infrastructure, end-use storage and regulatory approvals • The industry is accelerating the use of solar thermal integrated liquid fueled hydronic systems to increase fuel use reduction while maintaining the reliability and convenience of stored liquid fuels • In the future liquid fuels can redefine ZEBs to include ZCBs (zero carbon footprint buildings) 2

  3. Liquid Fuels Industry Plans Near-Term Carbon Footprint Reduction Pathway 3

  4. Liquid Fuels Industry Plans ZEB – zero fossil energy buildings ZCB – zero carbon footprint buildings 4

  5. Issues to Consider Should we push each fuel to Improve - Gas, Liquid, Solid, Electrical In an area like Heating Fuels where there are Five robust competitors, would we all benefit by encouraging each fuel to improve Should we consider incentivizing a particular fuel, when no fuel today has shown they can achieve the objectives, e.g. “get to the finish line” – very green, very clean, sustainable, very cheap, and available to all. Keeping all Four Distribution Systems Robust allows for a Continuing Race in each of these areas, which benefits consumers both environmentally and economically. We can also manipulate other aspects of the race, including efficiency if we do not go all in on “carbon content” of fuel

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