California LCFS gives options to claim EV credits

California Low-Carbon Fuel Standard (LCFS) credits from electricity may get a boost this year, as regulators look to make it easier to document electric vehicle (EV) charging from clean energy sources.

Utilities, automakers and others can use meters or vehicle data to claim additional LCFS credits from residential EV charging that uses electricity with a low carbon intensity, the Air Resources Board (ARB) said in a 25 March guidance.

The ARB added "incremental" credits to the LCFS this year to encourage EV charging during periods of low demand on the grid, or from renewable sources. The entities supplying the electricity, or the manufacturer of the vehicle associated with the charging station, can claim a lower carbon intensity score and generate more LCFS credits.

The agency currently awards "base" credits for EV charging using the average carbon intensity score for California's electric grid, set at 93.75g CO2e/megajoule this year.

Electric utilities, or the "load serving entity," get first priority for the incremental credits, followed by the automakers, despite efforts from EV maker Tesla to move to the front of the line.

Those entities using meters to claim incremental LCFS credits must be able to measure the quantity of electricity dispensed to an EV over a quarter. Data from the vehicle must be able to differentiate between usage of home and public chargers, to prevent double counting.

The number of LCFS credits generated by electricity has risen steadily as EVs have grown in popularity. The alternative fuel trailed only ethanol and renewable diesel in the third quarter of 2018, with just over 370,000 metric tonnes of credits — an 82pc increase from the same period the year prior.

The California LCFS requires a 20pc reduction in the carbon intensity of transportation fuels by 2030.

The ARB will meet on 5 April to discuss the next round of updates to the program, including a possible hard price ceiling.