Monetizing the Environmental Attributes of RNG
Several State and Federal programs exist to incentivize cleaner transportation fuels. RNG when used as a transportation fuel is eligible to receive credits from the following programs:
Renewable Fuel Standard (RFS). Administered by the EPA through the Clean Air Act, the RFS mandates that blenders and refiners of petroleum-based fuels procure alternative fuels through its annual Renewable Volume Obligation. Alternative fuel providers receive a Renewable Identification Numbers (RIN) for each gallon of fuel used in transportation. These RINs are then sold to Obligated Parties. RNG qualifies as a cellulosic biofuel and receives a D3 RIN for ethanol gallon equivalent of fuel used in transportation..
Low Carbon Fuel Standard (LCFS). In addition to qualifying for RINs, RNG qualifies for LCFS credits in California and Oregon. The LCFS program uses lifecycle analysis to determine the environmental impact for every fuel pathway issuing a Carbon Intensity (CI) score. Carbon Intensity is measured in grams of CO2 equivalents per megajoule. As part of their Clean Air Plan, California Air Resources Board has mandated an increasingly lower state-wide CI score each year until 2025. For each ton of CO2 equivalents avoided, LCFS creditors, like RNG providers, receive credits. These credits are then sold to deficit-producing entities. Because of the dual pathway to greenhouse gas reduction outlined above, RNG is recognized by ARB as the cleanest fuel pathway in the LCFS program.
Fixed Credit Pricing
With our track-record and reputation in the environmental credits markets, we have successfully negotiated forward sales of both RIN and LCFS credits.
This means more price stability and less price risk.
Sound interesting? Contact us for more information.