SB 1383 – Dairy & Livestock Main Meeting at Greenhouse Gas Reduction San Joaquin Valley APCD Office - Fresno with video teleconferencing at Working Group Modesto and Bakersfield branches Joint Subgroup Meeting July 26, 2018 10:00 am to 4:00 pm
Committee Membership Dairy Subgroup #2: Breakdown Fostering Markets for Digester Projects CO-CHAIRS - Michael Boccadoro (West Coast Advisors) - Jim Lucas (SoCalGas) - Ryan Schuchard (CALSTART) 25 Subgroup committee members consists of representatives from… • dairy industry • utilities • project development • environmental justice • transportation and fuel industries • non-governmental organizations • local government • financial consulting • advocacy groups • health organizations
T re me ndo us Pro g re ss Da iry Dig e ste r Re se a rc h a nd De ve lo pme nt Pro g ra m (DDRDP) 6 ne w pro je c ts c a me o nline in 2017 18 mo re pro je c ts in va rio us sta g e s o f de ve lo pme nt 40 a dditio na l pro je c ts re c e ntly a wa rde d g ra nts b y CDF A Ne w ro und o f funding a va ila b le in “18-’ 19 fisc a l ye a r Co nc e iva b le to ha ve 100-120 pro je c ts funde d a nd o pe ra ting in ne xt 4-5 ye a rs
Dig e ste r Pro g ra m Summa ry 24 pro je c ts funde d to da te a c hie ving e stima te d re duc tio ns o f 5.7 millio n MT CO2e o ve r 10 ye a rs Ave ra g e c o st o f re duc tio n is $27.12/ MT CO2e Ave ra g e c o st to sta te is just $8.15/ MT CO2e # 3 mo st c o st e ffe c tive GHG inve stme nt pro g ra m in sta te po rtfo lio # 1 mo st e ffe c tive pro g ra m in a c hie ving to ta l GHG re duc tio ns in sta te c lima te inve stme nt po rtfo lio 40 ne w pro je c ts e xpe c te d to a c hie ve 7.3 millio n MT CO2e o ve r 10 ye a rs All to ta l dig e ste rs a re a c hie ving o ve r 1.5 millio n MT CO2e re duc tio n a nnua lly o r a b o ut 15% o f ma nure me tha ne b y 2022
Me tha ne Re duc tio n Summa ry T re me ndo us mo me ntum Ca lifo rnia re c e ntly b e c a me the na tio n’ s le a de r in da iry me tha ne re duc tio n Critic a l pie c e o f Ca lifo rnia Clima te I nve stme nt Pro g ra m Just g e tting sta rte d in sho wing the e ntire wo rld ho w da iry c a n b e pa rt o f a g lo b a l susta ina b le fo o d syste m On pa th to a c hie ve 40% sta te ma nure ma na g e me nt g o a l
zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA Da Dairy d diges ester er barrier ers a and c challen enges es 1) Absence of long-term market certainty to ensure ongoing project success Availability of on-going incentives to encourage continuing digester development Availability of on-going incentives for commercially available Subgroup #2: heavy-duty near-zero emission vehicles Digesters LCFS and RFS credit markets uncertainty Biomethane Interconnection Incentive Program ends in 2021 BioMAT Tariff program currently under program review Lack of long-term biomethane contracts 2) Understanding and addressing cross-media environmental impacts and benefits and environmental justice concerns 7
Overar arching g goals a as s we c consider r recommendations s 1. Maximize dairy manure methane reductions 2. Understand and achieve environmental co-benefits a) Criteria/toxic air pollutants Subgroup #2: b) Water quality Digesters 3. Maximize benefits and minimize impacts on disadvantaged communities 4. Utilize available resources efficiently 5. Provide long-term market certainty and stability 8
Broad ad r recommendations s 1) Continue to allocate incentive funding to encourage and incentivize all dairy methane reduction efforts 2) Understand environmental justice concerns and conduct necessary outreach and engagement to ensure environmental benefits accrue and impacts are avoided in local communities Subgroup #2: Digesters 3) Ensure availability of long-term markets for digester energy production a) Electricity b) Biomethane/RNG transportation fuels c) Near-zero emission heavy duty CNG vehicles are commercially available today d) EV’s and other emerging clean fuel technologies and pathways 9
Qu Ques estion ons? ? Subgroup #2: Digesters 10
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