Last month Oregon passed a Clean Fuels Program, that credits renewable fuels for their greenhouse gas reductions. This presentation discusses the potential value of those credits to Oregon biogas projects, and the potential future for Washington to follow Oregon and California's lead and create its own Low Carbon Fuel Standard.

1. Oregon’s Clean Fuels Program and
Biogas
Peter Weisberg
April 14th, 2015
Biocycle in Portland, OR

2. Environmental Markets for Biogas
Market Credit Biogas Use Geographic
Limitation
California
Cap-and-Trade
Offset Any Anywhere in the
US
US
Renewable
Fuel Standard
RIN (Renewable
Identification
Number)
Transportation
fuel
Anywhere in the
US
California
Low Carbon
Fuel Standard
LCFS Credit Transportation
fuel
Fuel consumed
in California
Oregon Clean
Fuels Program
LCFS Credit Transportation
fuel
Fuel consumed
in Oregon

3. 99.18
68
13.45
-15.29
-40
-20
0
20
40
60
80
100
120
Gasoline Compressed Natural Gas Dairy Biogas Food Waste Biogas
CarbonIntensity(gCO2e/MJ)

4. 0
20
40
60
80
100
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
CarbonIntensity(gCO2e/MJ) California’s Low Carbon Fuel Standard
Carbon Intensity of Compressed Biomethane from Dairy Farms - 13.45 gCO2e/MJ
Carbon Intensity of Crude Oil - 99.18 gCO2e/MJ
LCFS Carbon Intensity Targets
Credits
Deficits

5. Oregon’s Clean Fuels Program
• 2009 – Passed the Clean Fuels Program
– Sunset in 2015
• 2015 – SB324 removes sunset
– 10% reduction in carbon intensity of
transportation fuels by 2025.
• 2016 through 2025 – Credit trading to meet
reduction targets

6. Washington Clean Fuels Standard
• Washington Department of Ecology has the authority to implement a Low
Carbon Fuel Standard (under the Washington Clean Air Act).
– Agency rulemaking (not new legislation) is all that is required.
• 2009 – Study Low Carbon Fuel Standard (with Oregon).
• 2013 – Pacific Coast Collaborative.
– “Oregon and Washington will adopt Low Carbon Fuel Standards.”
• April 2014 –Office of Financial Management reevaluate Clean Fuels
Standard.
Source: Lifecycle Associates et al. A Clean Fuel Standard in Washington State. December 2014.

7. Washington Clean Fuels Standard
• April 2015 – Senate transportation bill “poison pill”
– “redirects vehicles fees to a legislatively controlled account should the Governor
move ahead with Clean Fuel Standard adoption”
• We’ll see!
– “Hard to imagine Washington being the only state on the West Coast without a Low
Carbon Fuel Standard”

8. $-
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
$70.00
$80.00
$90.00
Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15
California LCFS Price ($/mtCO2e)

9. $/mtCO2e $/MMBTU1 $/DGE1
(diesel gallon
equivalent)
Current $21.75 $2.59 $0.34
Average $42.26 $5.03 $0.65
High $85.00 $10.12 $1.31
LCFS Value to Biogas
Food Waste (HSAD) Carbon Intensity: -15.29
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. $/mtCO2e $/MMBTU1 $/DGE1
(diesel gallon
equivalent)
Current $21.75 $1.93 $0.25
Average $42.26 $3.75 $0.49
High $85.00 $7.54 $0.98
LCFS Value to Biogas
Dairy Digestion Carbon Intensity: 13.45
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.

11. Biomethane credit ownership
• Oregon – Entity that refines/treats biogas into
biomethane
• Importers
- Trucked – Owner of biomethane when trucked
into Oregon
- Pipeline – Owner of biomethane when injected
into pipeline outside of Oregon.

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

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