It’s Your Oregon Oregon Clean Fuels Program Jana Gastellum Program Director, Climate Protection Oregon Electric Vehicle Association January 10, 2013

It’s Your Oregon 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.

It’s Your Oregon 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

It’s Your Oregon 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

It’s Your Oregon 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 Land owners Financiers Construction /Installers Project Operators

It’s Your Oregon 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 Charging stations and “hosts” FinanciersConstruction /Installers Vehicle manufacturers

It’s Your Oregon 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

It’s Your Oregon Creates opportunities for many fuel types Fuel Oregon Carbon Intensity* (gCO2e/MJ) Gasoline92.34 Ultra Low Sulfur Diesel91.53 Compressed Natural Gas (CNG)70.22 Ethanol (Corn)64.82 Electricity Biodiesel (Midwest Soybeans)19.99 Cellulosic Ethanol (NW Farmed Trees) Biodiesel (Yellow Grease)10.28 * Without indirect effects

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

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

It’s Your Oregon 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

It’s Your Oregon Oregon LCFS Economic Analysis Results

It’s Your Oregon

Changes in Employment

It’s Your Oregon Oregon CFP Timeline ✓ 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)

It’s Your Oregon 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?

It’s Your Oregon For More Information CleanFuelsNow.com Jana Gastellum, x. 107