On Tuesday, June 1st, Maryland’s updated Renewable Portfolio Standard (RPS) took effect after Governor Larry Hogan allowed Senate Bill 65 (SB 65) to pass into law without signature. The new law still mandates that Maryland source 50% of its electricity sales from Tier I renewable energy sources by 2030, with a 14.5% solar carve-out. Notably, the law decreases Maryland’s solar carve-out from 2022-2029 and increases its solar alternative compliance payment (SACP) rate from 2023-2029. The bill originally cleared the Maryland legislature on April 12th by significant majorities.
The new law also removes black liquor, a paper mill byproduct, from the list of eligible Tier I REC resources.
SRECTrade plans to publish an analysis on the impacts that this law could have on Maryland’s SREC market in the coming weeks.
Q4 2020 saw California LCFS credit generation outpace deficit generation, with the credit bank increasing 4.8% between Q3 2020 and Q4 2020. (Note: LCFS credits are issued on a delayed quarterly schedule; the most recent credit issuance was on April 1 for fuel consumption in Q42020)
Electricity as a fuel has been increasing in its market share, aside from the dip at the beginning of the pandemic in Q1 2020
Steady credit pricing for the California LCFS in Q1 2021, with some fluctuation in Q2 2021 as credit prices dipped as low as $173 between March and April, far from its historic highs of $202 per credit.
Oregon CFP now allows the use of renewable energy credits (RECs) to claim zero-carbon electricity
Washington state is the next state to adopt a clean fuels program, aiming to reduce transportation emissions by 20% by 2035, with 2017 as the baseline
Federal, state, and regional grant programs available in California and across the country as regulators push for the transition to zero-emission vehicles and equipment
Learn about Fast Charging Infrastructure (FCI) crediting and how LCFS credits can lower your capital expenditure in DCFCs
City of Porterville, CA Accelerates Adoption of Zero-Emission Vehicles with Revenue from LCFSCredits Managed and Monetized by SRECTrade
Rapidly Advancing Porterville’s Top Priority – Improved Air Quality
PORTERVILLE, CA, April 7, 2021 – The City of Porterville and SRECTrade today announced key milestones and plans to continue reducing carbon emissions and improving air quality for area residents. Porterville is rapidly electrifying its fleet and getting paid to do so by SRECTrade via the California Low Carbon Fuel Standard (LCFS) program. In a region battling air pollution, the municipality has taken bold steps to deploy zero- and near zero-emissions fleet equipment by deploying Compressed Natural Gas (CNG) buses and electric buses, as well as light-duty charging stations that generated more than $65,000 of LCFS credits in 2020, and with higher post-COVID use could generate more than $100,000 in 2021.
As a visionary and early adopter of alternative fuels
among municipalities, Porterville, located in the San Joaquin Valley, deployed
its first CNG bus in 2010 and first electric bus in 2018. Porterville’s fleet today
consists of 10 battery-electric buses, 12 battery-electric vans, 10 200kW DC
Fast Chargers and six Level-2 public charging stations, with 14 additional DCFC
stations under construction, that reduce total cost of ownership and enable
quicker adoption, while also creating a healthier future for the community. By 2024
Porterville plans to convert its entire fleet to electric and provide more
public-access charging infrastructure for residents.
“The key was taking those first steps – it was hard work,
but more doable than anyone thought,” said Transit Manager Richard Tree. “A
wealth of resources existed to help us move forward. Getting started quickly showed
what was possible technologically and financially. We learned, adjusted, and
kept moving forward.” Tree emphasized the advantage of engaging resource
partners with the knowledge and capabilities required to help address the
challenges encountered when planning, funding, deploying, and managing
zero-emission transportation equipment and infrastructure.
These cleaner vehicles also save money. Electric fuel and maintenance costs have been reduced by about 80% and 75%, respectively. Grant and incentive programs such as the California LCFS program supported the city’s initial deployment while also providing an ongoing revenue stream and offsetting electricity costs. In the past year alone, the City of Porterville generated an average of $0.21/kWh from its electric fleet.
“The City of
Porterville has demonstrated committed leadership in its drive to reduce carbon
emissions. We’ve been happy to play our role on this very driven team,” noted
Mike Saxton, SRECTrade Managing Director. “SRECTrade plugged in to manage and
monetize LCFS credits generated by Porterville’s eligible equipment. The higher
dollars we pay organizations directly support our mission to help fund continued
deployment of zero-emission equipment.”
Porterville has set its sights on even bolder clean energy goals, exploring solar generation, energy storage, renewable electric vehicle chargers, and electric vehicle and charger programs that would help its residents make the switch to electric vehicles. SRECTrade will continue supporting the municipality through its expertise in environmental commodities and transparent reporting of the value being generated.
City of Porterville
Porterville is a city in the San Joaquin Valley, in Tulare County, California. It is part of the Visalia-Porterville metropolitan area. Located between Fresno to the north and Bakersfield to the south, Porterville serves as a gateway to Sequoia National Forest, Giant Sequoia National Monument, and Kings Canyon National Park. The city has a population of nearly 60,000.
SRECTrade provides trusted advice, management, and technology to maximize financial and environmental benefits of environmental commodities for the owners of clean transportation and renewable energy assets. We manage all credit generation and sale to get companies paid in compliance with complex regulatory programs. SRECTrade is the largest agent manager of EV assets for the California Low Carbon Fuel Standard (LCFS) and has earned an annual client retention greater than 99% with more than 54,000 unique assets under management and more than 150,000 clean energy assets utilizing its proprietary technology platform. With presence across 10 regulated markets and 20 tradable products in North America, SRECTrade helps accelerate the adoption of clean energy and clean transportation equipment by minimizing the time, cost, and risk associated with realizing program benefits.
On Friday, March 26th, Pennsylvania State Senators Art Haywood (D-Montgomery/Philadelphia) and Dan Laughlin (R-Erie) introduced legislation that would amend PA’s Alternative Energy Portfolio Standards (AEPS) Act of 2004 and increase the state’s Tier I requirement from 8% to 18% by 2026. In addition, the legislation would increase the state’s solar carve-out from 0.5% at present to 5.5%, with 3.75% of the carve-out being sourced from in-state utility-scale solar (projects larger than 5 MW) and 1.75% from in-state distributed solar (smaller, interconnected residential and commercial projects). Notably, the legislation would also establish a limit on the cost of alternative energy credits (AECs, PA’s renewable energy credits) and facilitate long-term contracting in an effort to help minimize ratepayer impacts. Lastly, the legislation would also initiate a study on renewable energy storage in the state. The proposed legislation is expected to help address the state’s current economic crisis due to COVID-19 by inspiring renewable energy investment and creating jobs.
This legislation was introduced just days after PA Governor Tom Wolf’s announcement on March 22nd that 50% of the Pennsylvania government’s electricity will come from solar energy by 2023. The governor’s initiative, named PULSE (Project to Utilize Light and Solar Energy), represents the largest state government solar energy commitment in the nation. PULSE includes seven new solar arrays totaling 191 MW that will be built around the state.
While a number of steps in the legislative process must still be completed before the AEPS expansion would be passed into law, its introduction represents a continued step forward in PA’s renewable energy transition. SRECTrade will continue to monitor the legislation’s development and provide updates.
It is horrific, heartbreaking, and saddening to see members of our communities and neighborhoods killed, attacked, and abused. We stand in solidarity with the Asian American and Pacific Islander (AAPI) communities during the continued increase in xenophobic, racist anti-Asian American violence across the United States.
No one should live in fear in their own country. No one should see their loved ones killed or attacked. No one should be afraid to go outside.
We acknowledge to the AAPI members of our community – team members, partners, stakeholders, and beyond – that we will continue to commit to doing our part to combat the structural racism and fear-mongering that is degrading the safety of our communities. It remains very important that we acknowledge this violence and recognize that this continues to be a daily reality for many others including Black, Latinx, Indigenous, and LGBTQ+ communities across our country.
These moments and events are a constant reminder that as a company and individuals we need to recommit to the work of supporting cross-racial unity and work towards a future where our communities are free of hate and violence.
To demonstrate our immediate support, we have donated $5,000 to Asian Americans Advancing Justice (AAJC) and $5,000 to the Asian Pacific Environmental Network (APEN).
Additionally, below are some resources to help support each other, create awareness, and further educate ourselves.
Last October, SRECTrade provided information regarding the passage of the Virginia Clean Economy Act (VCEA). This Act mandates a Renewable Portfolio Standard (RPS) for Dominion and Appalachian Power Company. This update will present information regarding the progress of the RPS implementation and current REC transaction options for Virginia-sited systems.
Since the Act’s passage, utilities and other solar stakeholders have participated in public proceedings held by the Virginia State Corporation Commission (SCC). The SCC is currently reviewing the information that was presented throughout the process and will provide RPS implementation details later this spring. The SCC will be providing guidance regarding REC procurement, eligibility requirements, and the solar facility certification process.
In the meantime, Virginia-sited systems are eligible to register in the Pennsylvania Tier I REC market. Upon registration in this market, solar facilities will be issued a Virginia Certification number as part of the PJM GATS registry approval process. It is likely that these VA-certified systems and RECs will be eligible when the Virginia REC market opens.
We encourage anyone with an eligible solar system located in Virginia to begin the registration process now. To start a Pennsylvania Tier I application, please log in to your SRECTrade account and select the link to “Apply to sell SRECs”. There is currently no application fee for Virginia-sited solar assets.
SRECTrade will monitor program updates and will trade Virginia-generated RECs when the market opens. Please contact SRECTrade with any questions.
March 24, 2021 EDIT: Removed the text, “There is no requirement in MA Class I for projects to utilize a revenue grade meter, regardless of size.” See the added “Minimum Meter Accuracy” table from Section 2.1 e) of the NEPOOL GIS Operating Rules below for revenue grade meter requirements.
SRECTrade’s MA Class I application is now fully updated and live on our website. This update includes streamlining our online application to only require fields that are necessary for obtaining MA Class I certification. To start an MA Class I application, please log in to your SRECTrade account and select the link to “Apply to sell SRECs”.
Below is more info about the MA Class I REC Market parameters:
Any solar PV project interconnected to the New England ISO is eligible to sell MA Class I RECs.
As of the time of this post, the current MA2020 Class I spot market price is approximately $40.00 (per MWh).
There are no REC factors in the MA Class I market as there were in MA SREC-II; one Class I REC is generated per 1 MWh of production.
Qualified MA Class I projects are not limited to 40 quarters of REC transactions like in the past MA SREC markets; they are eligible to transact in perpetuity.
All MA Class I projects are required to utilize an Independent Verifier for production reporting. If you have questions about whether your solar inverters/meters qualify, please view the approved NEPOOL Independent Verifiers List (current as of the time of this post).
Regarding fixed-price contract opportunities, 5- and 10-year forward contract links will be emailed on a quarterly basis to interested parties. Please email firstname.lastname@example.org to indicate your interest in this mailing list.
As always, please contact SRECTrade with any questions and we look forward to working with you in the MA Class I market.
Throughout the fourth quarter of 2020, the California Low Carbon Fuel Standard (CA LCFS) market demonstrated steady credit prices between $193 – $199 per credit. On January 29 the California Air Resources Board (CARB) released the Q3 2020 credit and deficit report. There was an overall increase in deficits and credits generated in Q3 2020 as well as a 1.5% increase in the cumulative bank. SRECTrade has been engaged with new clean fuel programs that are considering legislation across North America. The enclosed update provides highlights on news impacting the market, a recent price trend overview, clean fuel program updates, and a closer look at the Q3 2020 credit and deficit report.
SRECTrade helps you get paid on the use of zero-emission vehicles and fueling equipment that you already own, such as electric light-duty vehicles, forklifts, trucks, and charging stations. The regulations are complex and the benefits are hard to access – we make it easy for you. SRECTrade is the largest agent manager of EV assets for California’s Low Carbon Fuel Standard (LCFS) and the trusted partner across North America for similar programs already redefining equipment plans and budgets. With 150,000+ assets on its tech platform, SRECTrade manages 20 traded products in 10 regulated markets with > 99% client retention. Through SRECTrade you get paid and accelerate deployment of clean energy and transportation equipment, while minimizing time, cost, and risk of complex and diverse regulatory programs.
SRECTrade was thrilled to sponsor and send seven team members to the Women of Renewable Industries and Sustainable Energy (WRISE) 2021 Leadership Forum. Even virtually, the Forum remained thoughtfully put-together with its workshops, networking events, keynotes, and professional development one-on-one opportunities. SRECTrade applauds WRISE’s commitment to building a diverse workforce for the success of the renewable energy economy for all, especially those who are historically left out of the conversation.
More information on WRISE and how to support the work that the organization is doing can be found here.
As we near the end of 2020 and look to celebrate the holiday season, it is a good time to take a step back and reflect on the ups and downs of the year. With all elements of our personal, social, and professional lives impacted by unprecedented global events, I am thankful that SRECTrade has been able to forge ahead and cross new milestones. I regularly remind myself that many individuals and companies haven’t been as lucky.
Thank you to our clients and partners for continuing to work with us as we expand our business and services. With you, we have been able to continue our mission to accelerate the sustainable adoption of clean energy assets while focusing on making carbon reduction a reality.
Lastly, thank you to the ever-growing SRECTrade team! We’ve recently surpassed 40 employees and look forward to more growth in 2021. We have a very special group of dedicated and passionate people. Across the entire organization, the team is working hard every day to ensure we are providing high quality services and technology to make efficient access to our markets possible.
We wish everyone a happy and healthy holiday season. Stay safe and be well. We look forward to working with you in 2021 and beyond!