Cummins Westport 2018 Natural Gas Engines Certified by US EPA and CARB

By NGV Global News.

Cummins Westport Inc. has received certifications from both the U.S. Environmental Protection Agency (EPA) and California Air Resources Board (CARB) for its 2018 L9N and B6.7N natural gas engines. Both engines meet CARB optional Low NOx standards as well as 2017 EPA greenhouse gas emission (GHG) requirements, making them some of the cleanest engines available today for truck and bus customers.

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Sen. Ted Cruz & Representatives of refining states reportedly asking for price cap in the RFS

By Cole Boteler, Waste Dive. 

Senators have yet to reach an agreement on the long-term fate of the Renewable Fuel Standard (RFS), as reported by Politico's Morning Energy. Sen. Ted Cruz told Politico that he had a hold on nominee Bill Northey for an undersecretary position in the United States Department of Agriculture over the issue, but sees "real progress" in coming to a solution that helps biofuel producers and oil refiners. 

Cruz is reportedly planning to propose a cap on the price of Renewable Identification Numbers (RINs), a move that may conflict with the law's intent. A spokesperson for Iowa Sen. Chuck Grassley told Politico the senator's priority was "the integrity of the RFS." Iowa Sen. Joni Ernst's office told Politico the same — their top priority is upholding the "spirit and the letter of the RFS."

Cruz's office has not offered a timeline for when his proposal could be introduced. His office did not respond to a request for comment.

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Case Studies in Renewable Finance: The Digest’s 2017 Multi-Slide to Funding Bioeconomy projects in the US vs Internationally

By Jim Lane, Biofuels Digest.

Bottom line, if you’re in the business of financing a renewable fuels project with a loan guarantee in the mix, you’re probably talking with some combination of New Energy Risk, Stern Brothers, Faegre Baker Daniels partner John Kirkwood or Kilpatrick Townsend partner Mark Riedy. They’ve been part of the go-to team for more projects than there are stars in the heavens — more importantly, the ones that get done, and done well.

Recently, Mark Riedy gave a monumental presentation at ABLC Next in San Francisco, outlining a number of case studies in companies funding bioeconomy project in the US vs. internationally.. Consider it a must-read.

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University of California-Irvine and SoCalGas Partner to Design "Advanced Energy Community"

Oak View neighborhood in Huntington Beach to benefit from model energy plan

LOS ANGELES, Dec. 12, 2017 /PRNewswire/ -- Southern California Gas Co. (SoCalGas) today announced that it will partner with the University of California-Irvine's  Advanced Power & Energy Program to design an "Advanced Energy Community" in an underserved neighborhood in Huntington Beach.  The community will be planned as a replicable model that optimizes a full spectrum of diverse energy options, including solar, wind, and renewable natural gas. It will also consider the capability of storing wind- and solar-generated energy with power-to-gas technology.  

"We're excited to co-fund this worthy project in collaboration with the California Energy Commission," said Lisa Alexander, vice president of customer solutions and communications at SoCalGas. "Creating an Advanced Energy Community will serve as a guide for future policy and planning in California to keep our energy system sustainable and make a difference in our clean-energy future."

"The integrated set of energy efficiency measures, smart grid technologies, renewable power generation and energy storage technologies that we will include in the Advanced Energy Community design will improve quality of life while reducing costs and emissions," said Jack Brouwer, associate director of the Advanced Power and Energy Program of UCI.  "We are pleased to work with SoCalGas in this exciting project that could make a big difference in the lives of those living in this community."

Power-to-gas technology converts surplus energy from solar panels or wind farms into hydrogen, which can be blended with natural gas and utilized in everything from home appliances to power plants. The renewable hydrogen can also be used in hydrogen fuel cell vehicles or converted to methane for use in a natural gas pipeline and storage system. The conversion of renewable electricity to gas enables long-term, monthly, or seasonal storage of large amounts of carbon-free power.  Researchers note that this long-duration storage is difficult to achieve with traditional storage technology such as lithium-ion batteries, which are typically designed to store energy for shorter time periods. 

The University of California-Irvine began a pilot project in 2016 funded by SoCalGas which successfully demonstrated the use of power-to-gas technology to use excess solar-generated electricity on the university's campus.

Last month, SoCalGas announced the successful installation of a novel bioreactor system that will be used to test power-to-gas technology at the U.S. Department of Energy's National Renewable Energy Laboratory (NREL) in Golden, Colorado. The first of its kind pilot project will be used to help assess the commercial viability of this power-to-gas approach to energy storage and provide insights into potential megawatt-scale system designs. 

According to a 2017 Lawrence Berkley National Lab study, by 2025, between 3,300 and 7,800 gigawatt-hours of excess solar and wind energy will be curtailed in California. If all that excess solar and wind energy were converted to methane through the biomethanation process and stored as renewable natural gas, it would provide enough renewable energy to heat 158,000 to 370,000 homes or provide renewable electricity to 80,000 to 187,000 homes. 

SoCalGas is providing $150,000 in co-funding for the Huntington Beach project, which was proposed in response to a California Energy Commission Electric Program Investment Charge (EPIC) solicitation. The EPIC program funds clean energy research, demonstration and deployment projects that support California's energy policy goals and promote greater electricity reliability, lower costs, and increased safety.

About SoCalGas
Headquartered in Los Angeles, SoCalGas® is the largest natural gas distribution utility in the United States, providing clean, safe, affordable and reliable natural gas service to 21.7 million customers in Central and Southern California. Its service territory spans 22,000 square miles from Fresno to the Mexican border, reaching more than 550 communitiesthrough 5.9 million meters and 101,000 miles of pipeline. More than 90 percent of Southern California single-family home residents use natural gas for home heat and hot water. In addition, natural gas plays a key role in providing electricity to Californians—about 60 percent of electric power generated in the state comes from gas-fired power plants.  

SoCalGas has served communities in California for 150 years and is committed to being a leader in the region's clean energy future. The company has committed to spending $6 billion over the next five years to modernize and upgrade its gas infrastructure, while also reducing methane emissions. SoCalGas is working to accelerate the use of renewable natural gas, a carbon-neutral or carbon-negative fuel created by capturing and conditioning greenhouse gas emissions from farms, landfills and wastewater treatment plants. The company is a subsidiary of Sempra Energy (NYSE: SRE), a Fortune 500 energy services holding company based in San Diego. For more information visit socalgas.com/newsroomor connect with SoCalGas on Twitter (@SoCalGas), Instagram (@SoCalGas) and Facebook.

White House hosting fresh biofuels talks today on Renewable Fuel Standard

After a meeting with Senators representing certain states with oil refinery industries met with President Trump and Administration appointees last week to seek relief from compliance costs with the Federal Renewable Fuel Standard, the White House will host further discussions today that will include those representing states with significant ethanol industries, including Senators Grassley and Ernst from Iowa and Deb Fischer from Nebraska. 

While earlier reports claim the meeting would likely focus on short-term fixes to help oil refiners on the U.S. East Coast who say they are struggling with the costs of meeting the RFS requirement, an inside source with the White House team hosting the meeting has communicated that no specifics have been nailed down for the meeting's agenda. 

EPA Sets 2018 Cellulosic Waiver Credit Price at $1.96 Each

The U.S. Environmental Protection Agency (EPA) announced that the federally issued waiver credits needed to meet certain cellulosic fuel blending mandates in 2018 will cost $1.96 each.

For any calendar year for which the projected volume of cellulosic biofuel production is less than the applicable volume of cellulosic biofuel set forth in Clean Air Act (CAA), EPA must reduce the required volume of cellulosic biofuel for that year to the projected volume, and must provide obligated parties the opportunity to purchase cellulosic waiver credits (CWC). The price of these credits is determined using a formula specified in CAA section 211(o)(2)(B)(III).

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Con Edison Calls for Non-Pipeline Solutions to Manage Natural Gas Demand

New York gas provider Con Edison published notification that it is launching a Smart Solutions for Natural Gas Customers Program in order to manage the growth of peak demand and advance environmentally-sound energy, while considering the overall cost impact to customers. The program is designed to meet customers’ heating needs cost effectively and contribute to the achievement of state and local environmental goals, without requiring the development of new pipelines.

Con Edison will issue an RFP in mid-December for non-pipeline solutions to help reduce natural gas demand, particularly calling for innovative and substantial non-pipeline projects that can reduce winter peak day gas load or provide gas supplies from local alternatives.

Large contracts are available and proposals can address either the supply or demand side. Solutions could include, but are not limited to:

• energy efficiency
• beneficial electrification of space or water heating
• demand response programs
• provision of biogas
• distributed natural gas storage, CNG, or LNG
• and/or other projects that can offset the need for incremental pipeline capacity.

Con Edison delivers gas to 1.1 million customers in Manhattan, the Bronx, parts of Queens, and most of Westchester County. Demand for natural gas has grown substantially in recent years, and is expected to continue growing throughout the next 20 years. 

President Trump Says He Remains committed to the RFS in Meeting with Senators Over RFS Compliance Concerns

On December 7, at the request of Senator Ted Cruz (R-TX.), President Trump met with a group of Senators to discuss the Renewable Fuel Standard (RFS) program and possible reforms. Those in attendance were largely Senators from states with oil interests (particularly states with merchant refiner interests), as well as EPA Administrator Pruitt, Agriculture Secretary Perdue, and Energy Secretary Perry. 

Refiners have opposed the RFS and have raised concerns with high RIN prices. Statements from those attending the meeting indicated that President Trump expressed a desire to help refiners, but also wants to protect the interests of farmers and remains committed to the RFS. Sen. Cruz indicated that there will be ongoing discussion, including reconvening with President Trump next week to discuss potential solutions. 

Read more about the meeting HERE.

EPA Administrator Pruitt Fields Questions from House Energy & Commerce Subcommittee on Environment

EPA Administrator Pruitt fielded questions at a hearing before the House Energy & Commerce Subcommittee on Environment, entitled “The Mission of the U.S. Environmental Protection Agency.”

During the question and answer portion of the hearing, some of the Subcommittee members raised questions regarding the RFS. Rep. Green (D.-Tex.) asked if EPA would limit the ethanol portion of the program to 9.7% of the gasoline pool, which has been a request of the refining industry, and Rep. Olson (R.-Tex.) asserted EPA had “leeway” moving forward until Congress may act. Rep. Loebsack (D.-Iowa) asked Administrator Pruitt about the cellulosic volume for 2018, which he noted was still less than what was finalized for 2017.  

Pruitt's responses gave no indication of any potential actions beyond that EPA is monitoring and concerned with issues raised by Subcommittee Members. He did note, in response to a question, that EPA has begun its analysis of the environmental impacts of the RFS program, which is required by statute and the prior Administration had agreed to complete.

Joint House/Senate Conference Committee Working to Produce Final Tax Reform Bill

With both the House and Senate having approved their respective versions of H.R. 1, the Tax Cuts and Jobs Act, a joint House/Senate conference committee has been formed to reconcile the differences between the measures. 

The conferees are expected to ultimately report a final package for both the House and Senate to consider prior to December 22. If the conference report is approved, it will be sent to the President to sign into law. Republican Leadership and the White House have made completing tax reform legislation prior to Christmas their top legislative priority.

Though there are notable similarities between the packages, conferees will need to resolve specific differences between the bills, and do so in a way that complies with the strict procedural rules that govern consideration of a reconciliation bill in the U.S. Senate.