HomeMy WebLinkAboutD-4. LCFS Sale of CreditsUB-38
APPROVED
UTILITY BOARD
09/24/2018
ANALYSIS:
ALW supports the use of electricity as a transportation fuel, and it accommodates EV usage within
Azusa through discounted EV electric rates and publicly available charging stations located
throughout the City. Under the LCFS Program, the proceeds from the proposed sale of LCFS credits
must be used to support the use of low carbon intensity fuels, such as electricity.
Under the LCFS program, ALW accumulates LCFS credits for all EVs and electric forklifts
registered in the City of Azusa. Based on current market conditions, the currently accumulated
LCFS credits have an estimated market value of approximately $40,000. ALW will continue to
accumulate credits after the proposed sale, and the amount of credits received may increase with the
number of EVs and forklifts operating within the ALW service territory.
In order to be eligible to receive LCFS credits for transportation fuel supplied, ALW must use all
credit proceeds to benefit current or future EV customers, educate the public on the benefits of EV
transportation, provide rates that encourage off-peak charging and minimize grid impacts, and
provide CARB with an annual compliance report. Expenditure options include providing rebates to
EV owners with registered vehicles in Azusa, funding the installation of additional public EV
chargers, developing low income EV incentive programs, and local business work place charging
incentives. Staff will report to the Board how funds are being utilized in accordance with the CARB
allowable expenditure guidelines for funding of electric utilities LCFS related programs.
ALW plans to monetize the credits through competitive solicitation for the sale of ALW LCFS
Credits utilizing Non-Exclusive Brokerage Agreements and Environmental Credit Transaction
Agreements as approved by the City Attorney, and subsequently utilize the funds in accordance
with CARB requirements.
FISCAL IMPACT:
Staff estimates, based on current market conditions, that the sale of the currently accumulated LCFS
credits would yield approximately $40,000.
Prepared by: Reviewed and Approved:
Paul Reid Manny Robledo
Utility Programs Specialist Director of Utilities
Reviewed and Approved:
Sergio Gonzalez
City Manager
UB-39