CARB Proposes Updates to the LCFS Regulation

by Nancy Brockman

The California Air Resources Board (CARB) recently held a workshop for stakeholders in the Low Carbon Fuel Standard program. The presentation included the much-anticipated proposed updates to the Carbon Intensity standards in the program as well as a few new concepts. PineSpire has summarized two key proposed changes for you below.

1. Increasing the Demand for LCFS Credits by tightening the Carbon-Intensity Standard.

The Carbon Intensity Standard (i.e. how much Carbon is permitted in transportation fuels) is the key factor in the amount of deficits oil and gas companies have, and the amount of credits generated by low/no carbon fuel sources. Currently, the LCFS program is set at a 20% reduction target by 2030; based on the fact the LCFS program is already exceeding current reduction goals, CARB proposed to increase this target to 25% or 30% by 2030. The higher targets would help ensure that the supply side of LCFS credits does not outstrip the deficit-holder’s demand for credits and keep the marketplace in balance.

2. Potentially introduce Phase-Out of Vehicle Types, such as e-forklifts.

CARB also introduced the concept of ‘phase-out’ for discussion in the workshop. The stated intent is that low carbon-fueled vehicles that are widely adopted would phase out of eligibility in the LCFS program. While CARB’s intent is to focus LCFS values on more emergent vehicle types, this proposal is problematic and inconsistent with overall CARB goals. Most importantly, this proposal is at odds with the goals of CARB’s own proposed Zero-Emission Forklift regulation. Additionally it sends the wrong market signal to other low-carbon vehicle and fuel technology developers. The proposed phase-out in conjunction with the Zero Emission and Advanced Clean Fleet rules would essentially remove the carrot and only leave the stick.

Where do the proposed changes to the LCFS Program go from here?

We are in the middle of a multi-year process for California to update its overall Green House Gas reduction goals and the LCFS goals specifically. At this time, CARB is focusing on workshops, public comment, and feedback to refine its proposals before drafting changes to the regulation.

LCFS Rulemaking Timeline
CARB’s graphic showing the LCFS Rulemaking Timeline and the California Scoping Plan timeline

PineSpire is actively participating in all of CARB’s processes on behalf of our customers. If you would like to submit comments directly to CARB, you can do so here. You can also reach out to PineSpire to learn more and join voices in influencing the future of the LCFS program!

Operations Manager: PineSpire Team Continues to Grow

by pinespire

PineSpire is thrilled to announce Jen Colomb has joined our team as our new Operations Manager.

Operations Manager
Jen Colomb Joins PineSpire’s Team as Operations Manager

Creating Carbon Credits for our customers requires managing immense data sets using Pinespire’s proprietary data platform. Jen will assume responsibility for accurate and efficient data processes from the first customer interaction through to credit monetization. PineSpire also ensures our data is current by providing Customers ongoing access to their fleet inventories through a Customer Dashboard. Additionally, we are integrating fleet data with air quality regulations and EV grants so we can provide valuable guidance and funding opportunities to our customers. All of these services start with a thorough understanding of fleet data and excellent quality control of large data sets. Jen’s experience and attention to detail will ensure smooth data operations for PineSpire and our Customers as we continue to grow and expand our services, including to Washington.

Jen brings a broad set of skills to the Operations Manager role.  Before joining PineSpire, Jen was Billing Manager at an Electric Utility, leading the team who ensured accurate billing and accounting for over 40,000 meters.  She also partnered with and supported the Finance and Member Services teams in her utility role.  Jen honed her research, analysis, and reporting skills during her prior experience as a Forensic Mortgage Analyst and Team Lead with First American Financial, auditing subprime mortgage loans.   A naturally curious person, she is a lifelong learner who takes pride in organization, efficiency, problem-solving, adaptability, and integrity.  She earned a BA in Psychology from Trinity University and a BS in Accounting from Colorado State University Global, and is a Certified Fraud Examiner.

To Learn more about how PineSpire’s Customer Dashboard, Data and Analytics services, or our Awesome Team, can help your business, please contact us!

Goods Movement Program funds available for Electric Forklifts

by pinespire
Bay Area Goods Movement Program

The Bay Area Goods Movement Program has $20 million available in grant funding to replace diesel equipment with electric fueled equipment. Don’t miss out on a great opportunity for your equipment to be Zero-Emission Compliant before it is mandatory! The deadline to submit your application is Thursday, March 31st.

Eligible Applications include:

  • Entities located in the BAAQMD (see below)
  • Entities whose products or business are involved in Good Movement (manufacturing, warehousing, logistics)
  • Replacement of Diesel cargo-handling equipment, transport refrigeration units, and rail-yard equipment

The Goods Movement Program was created to reduce diesel emissions and health risk from freight movement along California trade corridors as quickly as possible. The program is a partnership between CARB (the California Air Resources Board) and the BAAQMD (Bay Area Air Quality Management District) which includes Alameda, Contra Costa, Marin, Napa, San Francisco, San Mateo, Santa Clara, western portion of Solano, southern portion of Sonoma counties.

The program can be used to convert to electric forklifts, transport refrigeration units, rubber-tired gantry cranes, and other equipment. In addition to funding the equipment, the program can cover costs for associated new charging infrastructure.

When you decide to covert to an electric fleet now, you have the opportunity to receive grant funding, as well as become eligible to enroll in the LCFS (low carbon fuel standard) program. The LCFS program allows you to generate revenue each time you charge your electric equipment.

Additionally, electric equipment helps your operations stay in compliance with current and future regulations (like the proposed Zero Emission Forklift rule). Your bottom line will also benefit right away in reduced fuel costs and reduced maintenance costs.

To find out if your equipment is eligible for the Goods Movement Program, visit the Good Movement Program’s application page. Reach out to PineSpire to talk about your fleet strategy and making the most of these funding opportunities:

Come to the electric side!

Come See Us…2022 Trade Shows

by Ryan Huggins

2022 was here before we knew it, and it goes without saying that the past few years have made in person connections and networking a challenge. Working from home, wondering if people you see on Zoom are shorter than they appear and asking ourselves when things will go back to normal have all been constants during this time.

We don’t know if we’ll work in person any time soon or that video calls will go away, but what we do know is that here at PineSpire we want to see you again… in person! To make that happen, we will be attending some of the biggest conferences the West Coast has to offer, and we want you to join us.

Wrapping up January, we will be at Unified Wine & Grape Symposium in Sacramento, California from the 26-27th. Unified Wine and Grape will have an exposition including a wide range of products related to the wine and grape industry and includes international representation.

Following that, we will also be attending the Food Northwest Process & Packaging Expo on February 3-4th in Portland, Oregon– the expo is one of the largest in the United States and happens to be celebrating their 50th annual show by featuring world- recognized keynote speaker, John Manzella.

Lastly, we will be at the California League of Food Producer’s Food Processing Expo on February 15-16th in Sacramento and it is California’s largest food processing expo.

All these events will be great opportunities to:

  1. Learn about new industries
  2. Network with other businesses and potential clients
  3. Get caught up on trends coming up this year

Future of the LCFS Program

by Nancy Brockman

California Low Carbon Fuel Standard begins public input process to define the Future of the LCFS program.Portion of Credits created by Alternative Fuel Types

Proposed Updates to the LCFS Program

CARB has initiated the public input process to evaluate proposed updates to the Low Carbon Fuel Standard (LCFS) regulation.  The process kicked off with a public input workshop in December, attended by nearly 500 participants. The event provided a forum for CARB to present potential updates to the future LCFS program across a wide range of policy aspects that would go into effect in 2024 (at the earliest)

Some of the key proposed future changes to the LCFS program include:

  • Tightening the permitted carbon levels in transportation fuels (called the Carbon-Intensity Score) beyond 2030.  This widely anticipated update would continue to drive incentives for low carbon fuels, like electricity and green-hydrogen.
  • Consider addition of new eligible vehicle classes (like agricultural equipment and off-road heavy equipment).
  • Expanding the types of fuels subject to the program to include jet fuel for intra-state flights
  • Increasing verification and validation methods for fuel producers and credit generators to ensure all participants are receiving appropriate carbon scores.

PineSpire Advocates for Inclusion of Agriculture and Off-Road Equipment

PineSpire has submitted comments to CARB on the proposed rule changes to advocate for the inclusion of agricultural vehicles, improve the efficiency of reporting, and to strive to create a level playing field across vehicle and fuel types.  You can see PineSpire’s comments here.

We want to amplify the voices of our food and agricultural community for inclusion in this revenue-generating opportunity.  As available alternative fuel equipment (i.e. hydrogen and electric) becomes more readily available for the field and farm, it is important to advocate for the equipment to be eligible to generate LCFS credits.  Being eligible in the future LCFS program would help reduce the cost of owning and operating alternative fuel equipment and staying in compliance with evolving air quality regulations. 

What’s Next?

The rulemaking process is just at the beginning.  PineSpire will continue to participate and keep our customers informed on the direction the new policy measures take and how that can create additional LCFS revenue opportunities.  To receive regular updates, you can ask to subscribe here. If you have unique story or business perspective to share with CARB, reach out to us and we can help ensure your comments and business needs are considered in the rulemaking process.