Cal. Code Regs. tit. 17 § 95486.1

Current through Register 2024 Notice Reg. No. 45, November 8, 2024
Section 95486.1 - Generating and Calculating Credits and Deficits Using Fuel Pathways
(a)General Calculation of Credits and Deficits Using Fuel Pathways. LCFS credits or deficits for each fuel or blendstock for which a fuel reporting entity is the credit or deficit generator will be calculated according to the following equations:

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(4) For Fixed Guideway Systems and Forklifts:

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where:

Ei is the energy of the fuel used to propel fixed guideway systems, electric forklifts, and hydrogen fuel cell forklifts. For fixed guideway system expansion beyond 2010, and for electric and hydrogen fuel cell forklifts with model year 2011 or later, the formula for displaced energy in section 95486.1(a)(3) may be used with Executive Officer approval.

Table 5. EER Values for Fuels Used in Light- and Medium-Duty, and Heavy-Duty Applications.

Light/Medium-Duty Applications (Fuels used as gasoline replacement)

Heavy-Duty/Off-Road Applications (Fuels used as diesel replacement)

Aviation Applications (Fuels used as jet fuel replacement)

Fuel/Vehicle CombinationEER Values Relative to GasolineFuel/Vehicle CombinationEER Values Relative to DieselFuel/Vehicle CombinationEER Values Relative to Conventional Jet
Gasoline (incl. E6 and E10) Or E85 (and other ethanol blends)1Diesel fuel Or Biomass-based diesel blends1Alternative Jet Fuel1
CNG/ICEV1CNG or LNG (Spark-Ignition Engines)0.9
CNG or LNG (Compression-Ignition Engines)1
Electricity/BEV, or PHEV3.4Electricity/BEV or PHEV* Truck or Bus5.0
Electricity/Fixed Guideway, Heavy Rail4.6
Electricity/Fixed Guideway, Light Rail3.3
On-Road Electric Motorcycle4.4Electricity/Trolley Bus, Cable Car, Street Car3.1
Electricity Forklifts3.8
eTRU3.4
eCHE2.7
eOGV2.6
H2/FCV2.5H2/FCV1.9
H2 Fuel Cell Forklifts2.1
Propane1.0Propane0.9

* BEV = battery electric vehicle, PHEV= plug-in hybrid electric vehicle, FCV = fuel cell vehicle, ICEV = internal combustion engine vehicle.

(b)Credit and Deficit Generation Frequency Using Fuel Pathways. Unless expressly provided elsewhere in this subarticle, credits and deficits for fuel transactions reported each quarter will be generated in LRT-CBTS accounts upon completion of the reporting period for the given quarter, if all the conditions set forth in section 95486(a)(1) are met.
(c)Calculation of Credits for EV Charging Using Fuel Pathways.
(1)Base Credits to EDUs. "Base Credit" refers to the credit generated by an EDU for electricity using carbon intensity values provided in the Lookup Table pathway for California Average Grid Electricity and the credit calculation in 95486.1(a).
(A)Determining Quantity of Electricity. For calculating base credits to EDUs, the quantity of electricity must be determined as follows:
1.For Non-Metered Residential EV Charging. The Executive Officer will use the following method to calculate the quantity of electricity used for non-metered residential charging:

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2. Using the equation in subsection 1. above, the Executive Officer may also calculate, based upon the best data available, the quantity of non-metered electricity used in residential EV charging within service areas for which the EDU has not opted in or is not eligible to receive base credit per section 95483(c)(1)(A). The Executive Officer may then calculate credits generated from this quantity of electricity and assign these credits to Large IOUs and Large POUs that are eligible to receive base credits.
3.For Metered Residential EV Charging. The EDU may demonstrate the quantity of electricity for the purposes of calculating the base credits for metered charging at residences through timely submission of Quarterly Fuel Transaction Reports based on meter records.
(B)Calculation of Base Credits. The Executive Officer will use the quantity of electricity as determined in subsection (A) above to calculate the base credit using the Lookup Table pathway CI value for California Average Grid Electricity and the credit generation equation provided in section 95486.1(a).
(C) Credits calculated and generated pursuant to subsection (B) above are exempt from the credit generation requirements pursuant to sections 95486(a)(2) and 95486.1(b).
(2)Incremental Credits for Residential EV Charging. "Incremental Credit" refers to any credits generated in addition to the base credits generated by an EDU pursuant to subsection (1)(B) above, for the same electricity, using the calculation in subsection (2)(B), below.
(A)Quantity of Electricity.
1.Non-Metered Residential EV Charging. The Executive Officer shall use the formula in 95486.1(c)(1)(A) for calculating the quantity of electricity eligible to generate incremental credits for each residence that has an electric vehicle that is not separately metered and is shown to receive low-CI electricity, and is not claimed by another generator of incremental low-CI electricity credits using metered data.
2.Metered Residential EV Charging for Incremental Credits. Any entity generating incremental credit for metered residential EV charging must supply the quantity of electricity through timely submission of Quarterly Fuel Transaction Reports based on meter records.
(B)Calculation of Incremental Credits. Incremental credits for residential EV charging, including either low-CI electricity or smart charging, and incremental credits for smart electrolysis pathways, must be calculated according to the following equation:

Creditsi(MT) = (CIgrid average - CIreported) X Electricity X C

where:

Creditsi (MT) is the number of incremental LCFS credits generated (a zero or positive value), in metric tons, for improvements in carbon intensity of electricity supplied to residential EV charging or for hydrogen production using electrolysis compared to the grid-average carbon intensity;

CIgrid average is the carbon intensity of California Average Grid Electricity pathway certified by the Executive Officer for a given year, or the applicable region's average grid electricity for hydrogen imported to California;

CIreported is the adjusted carbon intensity of electricity, in gCO2e/MJ, as calculated for a certified Tier 2 pathway or a Lookup Table pathway, including smart charging or smart electrolysis pathways;

Electricity is the total quantity of either low-CI electricity supplied for EV charging, or electricity supplied for smart charging or smart electrolysis and reported by hourly windows, in MJ, determined from the energy density conversion factors in Table 4; and

C is a factor used to convert credits to units of metric tons from gCO2e and has the value of:

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(d)Calculation of Credits for Non-Residential EV Charging Using Fuel Pathways. The base and incremental framework does not apply to non-residential EV charging. Only one entity per FSE may claim credits for non-residential metered EV charging.
(1) An entity may generate credits for Non-Residential EV charging using a carbon intensity for California Average Grid Electricity, Zero-CI Electricity, or Smart Charging pathway from the Lookup Table in section 95488.5, or a carbon intensity value certified through the Tier 2 pathway application process, and the credit calculation in 95486.1(a).
(e)Calculation of Credits for Other Electricity used as Transportation Fuel Using Fuel Pathways. An entity may generate credits for the non-EV charging applications listed in sections 95483(c)(3) to (6), which use electricity to displace conventional transportation fuel, using a carbon intensity for California Average Grid Electricity or Zero-CI Electricity from the Lookup Table 7-1 in section 95488.5, or a carbon intensity value certified through the Tier 2 pathway application process, and the credit calculation in 95486.1(a).
(f)Calculation of Credits for Hydrogen Using Fuel Pathways.
(1) An entity may generate credits for hydrogen used as a transportation fuel using a carbon intensity for hydrogen found in the Lookup Table in section 95488.5, or a carbon intensity value certified through the Tier 2 pathway application process, and the credit calculation in 95486.1(a).
(2)Smart Electrolysis Pathways for Hydrogen Production. An entity can generate incremental credits, in addition to credits generated under a pathway for electrolytic hydrogen produced using average grid electricity, for hydrogen using smart electrolysis pursuant to section 95488.5 and the incremental credit calculation in section 95486.1(c)(2)(B).

Cal. Code Regs. Tit. 17, § 95486.1

1. Redesignation and amendment of former section 95486, subsections (b)(3)-(c) as new section 95486.1 filed 1-4-2019; operative 1-4-2019 pursuant to Government Code section 11343.4(b)(3) (Register 2019, No. 1).
2. Amendment of subsection (c)(1)(A)2. filed 5-27-2020; operative 7-1-2020 (Register 2020, No. 22).

Note: Authority cited: Sections 38510, 38560, 38560.5, 38571, 38580, 39600, 39601 and 43018, Health and Safety Code; 42 U.S.C. section 7545; and Western Oil and Gas Ass'n v. Orange County Air Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr. 249 (1975). Reference: Sections 38501, 38510, 39515, 39516, 38571, 38580, 39000, 39001, 39002, 39003, 39515, 39516 and 43000, Health and Safety Code; Section 25000.5, Public Resources Code; and Western Oil and Gas Ass'n v. Orange County Air Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr. 249 (1975).

1. Redesignation and amendment of former section 95486, subsections (b)(3)-(c) as new section 95486.1 filed 1-4-2019; operative 1/4/2019 pursuant to Government Code section 11343.4(b)(3) (Register 2019, No. 1).
2. Amendment of subsection (c)(1)(A)2. filed 5-27-2020; operative 7/1/2020 (Register 2020, No. 22).