With funding from the California Energy Commission under solicitation PON-13-603, the Redwood Coast Energy Authority (RCEA) and SERC began a two-year planning process in the spring of 2014. Key project partners were the Mendocino Council of Governments, the North Coast Unified Air Quality Management District, and the Siskiyou County Economic Development Council (SCEDC). As this project nears completion, we reflect on the accomplishments of the project and next steps for increased regional adoption of low carbon transportation fuels.
Background: “The goal of this project [was] to create an alternative fuel readiness plan through coordinated efforts in the Northwest Region,” which for this project consisted of the counties of Del Norte, Humboldt, Mendocino, Siskiyou, and Trinity. The readiness plan was to “include a strategic assessment of the challenges and opportunities for the adoption of alternative fuels and implementation of targeted outreach programs for fuels.”
The project consisted of six main tasks:
- assess the existing status of and potential for future deployment of fuels
- analyze existing and potential incentives structures
- identify strategies for increased procurement and commercialization of fuels
- review existing training materials targeted to relevant stakeholders and identify needs and barriers
- develop materials and strategies that communicate the benefits of low carbon fuels to targeted stakeholder groups
- create a complete, comprehensive, and detailed readiness plan for the region.
Accomplishments and Results: As reported in the Spring 2015 newsletter, SERC addressed the first task through the development of a simulation model that explores marginal abatement cost curves in order to guide regional investment in low carbon fuels. The model used the statewide Low Carbon Fuel Standard (LCFS) target of a 10% reduction in transportation fuel carbon intensity by 2020 (see Figure below). The key conclusions of this analysis are
- Electric vehicles currently present the least incremental cost across commercially available fuels and technologies, in terms of infrastructure capital cost, vehicle capital cost, and vehicle cost of ownership.
- Due to market limitations there is no single “silver bullet” fuel. Regional investment in a variety of low carbon fuels is needed to meet the 2020 LCFS target.
- Portfolio-wide average marginal cost of carbon abatement (as shown in is projected to be around $200 per metric ton of carbon dioxide equivalent, and could very well exceed this.
The results of this simulation model were used to develop regional estimates of the direct impact to the transportation sector should model results be fully implemented. These estimates show that 17% of passenger vehicles and 2.7% of all other on-road vehicles may be impacted, resulting in a 6% increase in electricity consumption and a displacement of 10% of total gallons of gasoline and diesel currently consumed in the region. Furthermore, over 300 public electric vehicle parking stalls may be needed along with 19 new or retrofitted liquid fueling stations representing 9% of existing stations in the region. The projected incremental societal cost over the five-year period between 2015 and 2020 is $43 million (in 2015 dollars), which averages to $1,600 per vehicle across all fuel and vehicle types modeled.
In parallel to the above modeling effort, the project team formed three working groups that informed the planning process: a strategic planning working group, a fuel distributor working group, and a training materials working group. The working groups helped identify barriers and potential solutions to increased low carbon fuel adoption as well as guided the structure of the readiness plan. The input from these stakeholders, along with an extensive literature review, resulted in the identification of 22 specific barriers and 69 potential actions to address these barriers.
In addition, project partners developed outreach materials to be used to engage with and inform a wide array of stakeholder groups, focusing mainly on local government entities and fleet managers. Numerous outreach efforts were also conducted, including extensive engagement with public and private fleet managers and local government agencies.
Readiness Plan and Next Steps: The above efforts have been synthesized into a detailed regional readiness plan which is now available. The primary audience is local government, but the plan contains useful information for fuel distributors and fleet managers and contains recommendations for action across all stakeholder groups including state policy makers.
Project partners also identified the Department of Energy Clean Cities program as a key next step that could continue the development and implementation of the readiness plan. To this end the project team held a strategic networking event in February in Eureka that was simulcast to Redding and Ukiah, California. The goals of the event were twofold:
- bring local government stakeholders up to speed on state and local efforts to accelerate the adoption of low carbon transportation fuels and vehicles
- explain the Clean Cities program, outline the potential benefits of this program for the region, and pursue stakeholder interest and/or commitments to the formation of a Clean Cities Coalition.
A total of 20 different stakeholder agencies were represented at the event across seven counties, two CalTrans Districts, and two Assembly Districts. All stakeholder representatives expressed positive interest in the development of a Clean Cities Coalition in the North State region and found the event informative. Commitments to further action were made regarding participation in future events to solidify details and next steps. Two follow-up meetings were held in May and June with a sub-group of participants during which co-coordinator commitments were confirmed from SCEDC and RCEA. A Clean Cities Coalition application to the DOE is currently in development and is expected to move forward.
Conclusion: It is clear the proposed LCFS target is not realistic for the region in the near future given the level of investment and action required over such a short time frame. However, the readiness plan provides a useful guidepost for regional stakeholders, and quantifiable and actionable steps that can be taken now and well past the LCFS target date of 2020. In addition, the successful formation of a Clean Cities Coalition in the region is expected to increase the impact of this project and will hopefully lead to future funding and action in the region.
For more detailed information and access to project reports visit http://redwoodenergy.org/current-projects/alternative-fuels