SB 1383 Dairy & Livestock Main Meeting at Greenhouse Gas - - PowerPoint PPT Presentation

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

Dairy Subgroup #2:

Fostering Markets for Digester Projects

Committee Membership Breakdown

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

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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

heavy-duty near-zero emission vehicles

• 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

Subgroup #2: Digesters

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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 b) Water quality

• 3. Maximize benefits and minimize impacts on disadvantaged

communities

• 4. Utilize available resources efficiently
• 5. Provide long-term market certainty and stability

Subgroup #2: Digesters

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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 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

Subgroup #2: Digesters

9

Qu Ques estion

• ns?

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Subgroup #2: Digesters

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