10
MJB &A A Natural Gas Distribution Perspective on RNG Panel 2: RNG Policy and Market Forces September 26, 2017 Brian Jones Senior Vice President M.J. Bradley & Associates [email protected] Pye Russell Policy Analyst M.J. Bradley & associates [email protected]

Natural Gas Distribution Perspective on RNG€¦ · MJB &A A Natural Gas Distribution Perspective on RNG Panel 2: RNG Policy and Market Forces September 26, 2017 . Brian Jones Senior

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Page 1: Natural Gas Distribution Perspective on RNG€¦ · MJB &A A Natural Gas Distribution Perspective on RNG Panel 2: RNG Policy and Market Forces September 26, 2017 . Brian Jones Senior

MJB amp A

A Natural Gas Distribution Perspective on RNG Panel 2 RNG Policy and Market Forces September 26 2017

Brian Jones Senior Vice President MJ Bradley amp Associates bjonesmjbradleycom

Pye Russell Policy Analyst MJ Bradley amp associates prussellmjbradleycom

MJB P A

Economy-Wide State GHG Reduction Goals Achieving deep decarbonization goals will require reductions from end use combustion associated with delivered fuels and natural gas supplied by utilities

50

50

75

80 80

75 (2000)

60 80 (2006)

80

80 (2001)

75-80 (2003)

80

75

80

80

80 (2005)

80 1Unless noted in parentheses GHG reduction targets are below 1990 emission levels 2Refers to Arizonarsquos 2040 GHG reduction target

502

(2000)

State 2050 GHG Reduction Targets

2

MJB P A

Decarbonization Analyses

Several state and national studies identify the key strategies for economy-wide decarbonization

bull Energy Efficiency - Energy intensity of GDP must decline by 70 to 2050 (Nationally)

bull Decarbonized electricity - Near complete decarbonization of electricity

bull Fuel switching ndash Electrification where possible

bull Decarbonize fuels ndash Liquid and gas

3

Manufacturing Commercial Bu ii dings Residential

MJB P A

bull Other

bull Office Equipment

bull Computing

bull Cooking

bull Lighting

Refrigeration

bull Water Heating

bull Space Heating

Processes

bull Boilers

bull Other Process Heat

Share of Natural Gas End Use by Sector

2016 Natural Gas Consumption by Sector amp End Use

trillion cubic feet

Source US EIA Annual Energy Review (May 2017) US Natural Gas Consumption by End Use MJBampA analysis to apportion shares by end use based on available data (2010 RECs for Residential 2010 MECS for Industrial and 2012 CBECs for Commercial Buildings)

4

MJB P A

LDC Challenges and Opportunities

RNG allows LDCs to use existing natural gas distribution system to deliver a renewable fuel and decarbonize the fuel supplied to customers

Challenges Potential Solutions

bull Upfront capital costs gas processing interconnection pipeline laterals

bull Utilities subject to least-cost requirements

bull Lack of gas quality standards creates uncertainty for both developers and utilities

bull Availability of RNG supply in a given state or region

bull Voluntary RNG customer offerings bull FortisBC DTE Energy Vermont Gas

bull Direct contracting to large end users bull Corporations and institutions with sustainability goals

bull Renewable Thermal Collaborative bull Renewable Gas Standards ndash following Renewable Portfolio Standards

bull State policy action bull Interconnectiongas quality standards

bull Funding mechanisms bull Regulator consideration of climateeconomic benefit of RNG investment

5

MJB amp A MJ Bradley amp Associates LLC

Concord MA Headquarters

47 Junction Square Drive Concord MA 02145 USA T +1 978 369 5533 F +1 978 369 7712

Washington DC

1225 Eye Street NW Suite 200 Washington DC 20005 USA T +1 202 525 5770

For more information visit wwwmjbradleycom

6

MJB P A

About Us MJ Bradley amp Associates (ldquoMJBampArdquo) is an internationally recognized consulting firm with an 21-yeartrack record advising industry NGOs and government agencies on environmental and energy policytechnology and implementation

Our staff has professional experience from public private sector and non-governmental organizationsand advanced degrees in law engineering finance policy and environmental science

Key areas of focus and expertise bull Power Sector bull Oil and Gas Industry bull Transportation and Electric Vehicle Technology and Policy bull Engineering and Technical Services

We apply our skills to help clients with issues including bull Market implications of emerging laws and regulations bull Market entry strategies for emerging technologies bull Investment strategies for environmental markets bull Investment due diligence bull Stakeholder coalitions on long-term energy sector strategy bull Tracking state regional and federal energy and environmental initiatives

7

-E conEdison = Exelon

~ nationalgrid rtilDom1n1on

11c11110 r1s here The power of action

NewYorkPower Authority

~ Seattle City Light

cip

NEXTera-E~

tic LPINE0 -

Los Angeles Department of Water amp Power

BAE SYSTEMS ~ Massachusetts Bay ~ Transportation Authority

MJB P A

[ CSX ] How tomorrow moves

bullbull bullbull

NESCAUM

O cENTER ~ NEW ENERGY ECONOMY

CLEANAIR) TASK FORCE

WOR

(t ceres

EDF-ENVlAONMENTA~ DEFENSE FUND

Findng1hewaysthat w0fk

Ritilf RC F I NTl ru r E

GEORGETOWN CL MATE G NTER

ENERGY FOUNDATION hlild ng a new ner~ lut1Jre

Barr Foundation

merck family fund pr llC1~ l111 pahorJbull11~ru-l bull atr11t1llw11uia Jbull ori_IOlAUJlt

Bloomberg Philanthropies

Representative Clients Our clients are multi-national in scope and include energy and clean technology firms environmental groups transportation companies and government agencies

Energy Sector Clients

Municipal and Government Clients

Think Tanks Policy Institutes amp Advocacy

Group Clients

Foundations

Transportation Sector Clients

8

-

MJB P A

Cumulative Household GHG Emissions with RNG

A home using RNG would generate roughly one quarter the CO2 emissions of a home using electricity

0

20

40

60

80 NG Electricity RNG

Cumulative CO2 Em

issions (tons)

2016 2018 2020 2022 2024 2026 2028 2030

9

MJB P A

Comparison of Bus Fleet GHG Emissions Projected Annual Fleet GHG Emissions Using Different Fuels

Annual CO2e (tons) Baseline Low NOx CNG Bus amp RNG

Electric Bus (Depot Charge) Electric Bus (Depot amp In-Route) 450000

Fuel Cell Bus (SMR) Fuel Cell Bus (Electrolysis)

50000

100000

150000

200000

250000

300000

350000

400000

0 2015 2020 2025 2030 2035 2040 2045 2050 2055

Source Ramboll Environ US Corporation MJBampA Note The analysis assumed that GHG emissions from electricity generation in California would be 262 gkWh in 2015 falling to 109 gkWh in 2050 2015 emissions are actual average values based on EIA data Projected future emissions are based on zero-carbon electricity generation in California increasing from 46 today to 78 in 2050 in accordance with state goals Fleet-wide deployment of electric buses is assumed to be uneconomical until 2025

10

  • A Natural Gas Distribution Perspective on RNGPanel 2 RNG Policy and Market Forces
  • Economy-Wide State GHG Reduction Goals
  • Decarbonization Analyses
  • Share of Natural Gas End Use by Sector
  • LDC Challenges and Opportunities
  • Slide Number 6
  • About Us
  • Representative Clients
  • Slide Number 9
  • Comparison of Bus Fleet GHG Emissions
Page 2: Natural Gas Distribution Perspective on RNG€¦ · MJB &A A Natural Gas Distribution Perspective on RNG Panel 2: RNG Policy and Market Forces September 26, 2017 . Brian Jones Senior

MJB P A

Economy-Wide State GHG Reduction Goals Achieving deep decarbonization goals will require reductions from end use combustion associated with delivered fuels and natural gas supplied by utilities

50

50

75

80 80

75 (2000)

60 80 (2006)

80

80 (2001)

75-80 (2003)

80

75

80

80

80 (2005)

80 1Unless noted in parentheses GHG reduction targets are below 1990 emission levels 2Refers to Arizonarsquos 2040 GHG reduction target

502

(2000)

State 2050 GHG Reduction Targets

2

MJB P A

Decarbonization Analyses

Several state and national studies identify the key strategies for economy-wide decarbonization

bull Energy Efficiency - Energy intensity of GDP must decline by 70 to 2050 (Nationally)

bull Decarbonized electricity - Near complete decarbonization of electricity

bull Fuel switching ndash Electrification where possible

bull Decarbonize fuels ndash Liquid and gas

3

Manufacturing Commercial Bu ii dings Residential

MJB P A

bull Other

bull Office Equipment

bull Computing

bull Cooking

bull Lighting

Refrigeration

bull Water Heating

bull Space Heating

Processes

bull Boilers

bull Other Process Heat

Share of Natural Gas End Use by Sector

2016 Natural Gas Consumption by Sector amp End Use

trillion cubic feet

Source US EIA Annual Energy Review (May 2017) US Natural Gas Consumption by End Use MJBampA analysis to apportion shares by end use based on available data (2010 RECs for Residential 2010 MECS for Industrial and 2012 CBECs for Commercial Buildings)

4

MJB P A

LDC Challenges and Opportunities

RNG allows LDCs to use existing natural gas distribution system to deliver a renewable fuel and decarbonize the fuel supplied to customers

Challenges Potential Solutions

bull Upfront capital costs gas processing interconnection pipeline laterals

bull Utilities subject to least-cost requirements

bull Lack of gas quality standards creates uncertainty for both developers and utilities

bull Availability of RNG supply in a given state or region

bull Voluntary RNG customer offerings bull FortisBC DTE Energy Vermont Gas

bull Direct contracting to large end users bull Corporations and institutions with sustainability goals

bull Renewable Thermal Collaborative bull Renewable Gas Standards ndash following Renewable Portfolio Standards

bull State policy action bull Interconnectiongas quality standards

bull Funding mechanisms bull Regulator consideration of climateeconomic benefit of RNG investment

5

MJB amp A MJ Bradley amp Associates LLC

Concord MA Headquarters

47 Junction Square Drive Concord MA 02145 USA T +1 978 369 5533 F +1 978 369 7712

Washington DC

1225 Eye Street NW Suite 200 Washington DC 20005 USA T +1 202 525 5770

For more information visit wwwmjbradleycom

6

MJB P A

About Us MJ Bradley amp Associates (ldquoMJBampArdquo) is an internationally recognized consulting firm with an 21-yeartrack record advising industry NGOs and government agencies on environmental and energy policytechnology and implementation

Our staff has professional experience from public private sector and non-governmental organizationsand advanced degrees in law engineering finance policy and environmental science

Key areas of focus and expertise bull Power Sector bull Oil and Gas Industry bull Transportation and Electric Vehicle Technology and Policy bull Engineering and Technical Services

We apply our skills to help clients with issues including bull Market implications of emerging laws and regulations bull Market entry strategies for emerging technologies bull Investment strategies for environmental markets bull Investment due diligence bull Stakeholder coalitions on long-term energy sector strategy bull Tracking state regional and federal energy and environmental initiatives

7

-E conEdison = Exelon

~ nationalgrid rtilDom1n1on

11c11110 r1s here The power of action

NewYorkPower Authority

~ Seattle City Light

cip

NEXTera-E~

tic LPINE0 -

Los Angeles Department of Water amp Power

BAE SYSTEMS ~ Massachusetts Bay ~ Transportation Authority

MJB P A

[ CSX ] How tomorrow moves

bullbull bullbull

NESCAUM

O cENTER ~ NEW ENERGY ECONOMY

CLEANAIR) TASK FORCE

WOR

(t ceres

EDF-ENVlAONMENTA~ DEFENSE FUND

Findng1hewaysthat w0fk

Ritilf RC F I NTl ru r E

GEORGETOWN CL MATE G NTER

ENERGY FOUNDATION hlild ng a new ner~ lut1Jre

Barr Foundation

merck family fund pr llC1~ l111 pahorJbull11~ru-l bull atr11t1llw11uia Jbull ori_IOlAUJlt

Bloomberg Philanthropies

Representative Clients Our clients are multi-national in scope and include energy and clean technology firms environmental groups transportation companies and government agencies

Energy Sector Clients

Municipal and Government Clients

Think Tanks Policy Institutes amp Advocacy

Group Clients

Foundations

Transportation Sector Clients

8

-

MJB P A

Cumulative Household GHG Emissions with RNG

A home using RNG would generate roughly one quarter the CO2 emissions of a home using electricity

0

20

40

60

80 NG Electricity RNG

Cumulative CO2 Em

issions (tons)

2016 2018 2020 2022 2024 2026 2028 2030

9

MJB P A

Comparison of Bus Fleet GHG Emissions Projected Annual Fleet GHG Emissions Using Different Fuels

Annual CO2e (tons) Baseline Low NOx CNG Bus amp RNG

Electric Bus (Depot Charge) Electric Bus (Depot amp In-Route) 450000

Fuel Cell Bus (SMR) Fuel Cell Bus (Electrolysis)

50000

100000

150000

200000

250000

300000

350000

400000

0 2015 2020 2025 2030 2035 2040 2045 2050 2055

Source Ramboll Environ US Corporation MJBampA Note The analysis assumed that GHG emissions from electricity generation in California would be 262 gkWh in 2015 falling to 109 gkWh in 2050 2015 emissions are actual average values based on EIA data Projected future emissions are based on zero-carbon electricity generation in California increasing from 46 today to 78 in 2050 in accordance with state goals Fleet-wide deployment of electric buses is assumed to be uneconomical until 2025

10

  • A Natural Gas Distribution Perspective on RNGPanel 2 RNG Policy and Market Forces
  • Economy-Wide State GHG Reduction Goals
  • Decarbonization Analyses
  • Share of Natural Gas End Use by Sector
  • LDC Challenges and Opportunities
  • Slide Number 6
  • About Us
  • Representative Clients
  • Slide Number 9
  • Comparison of Bus Fleet GHG Emissions
Page 3: Natural Gas Distribution Perspective on RNG€¦ · MJB &A A Natural Gas Distribution Perspective on RNG Panel 2: RNG Policy and Market Forces September 26, 2017 . Brian Jones Senior

MJB P A

Decarbonization Analyses

Several state and national studies identify the key strategies for economy-wide decarbonization

bull Energy Efficiency - Energy intensity of GDP must decline by 70 to 2050 (Nationally)

bull Decarbonized electricity - Near complete decarbonization of electricity

bull Fuel switching ndash Electrification where possible

bull Decarbonize fuels ndash Liquid and gas

3

Manufacturing Commercial Bu ii dings Residential

MJB P A

bull Other

bull Office Equipment

bull Computing

bull Cooking

bull Lighting

Refrigeration

bull Water Heating

bull Space Heating

Processes

bull Boilers

bull Other Process Heat

Share of Natural Gas End Use by Sector

2016 Natural Gas Consumption by Sector amp End Use

trillion cubic feet

Source US EIA Annual Energy Review (May 2017) US Natural Gas Consumption by End Use MJBampA analysis to apportion shares by end use based on available data (2010 RECs for Residential 2010 MECS for Industrial and 2012 CBECs for Commercial Buildings)

4

MJB P A

LDC Challenges and Opportunities

RNG allows LDCs to use existing natural gas distribution system to deliver a renewable fuel and decarbonize the fuel supplied to customers

Challenges Potential Solutions

bull Upfront capital costs gas processing interconnection pipeline laterals

bull Utilities subject to least-cost requirements

bull Lack of gas quality standards creates uncertainty for both developers and utilities

bull Availability of RNG supply in a given state or region

bull Voluntary RNG customer offerings bull FortisBC DTE Energy Vermont Gas

bull Direct contracting to large end users bull Corporations and institutions with sustainability goals

bull Renewable Thermal Collaborative bull Renewable Gas Standards ndash following Renewable Portfolio Standards

bull State policy action bull Interconnectiongas quality standards

bull Funding mechanisms bull Regulator consideration of climateeconomic benefit of RNG investment

5

MJB amp A MJ Bradley amp Associates LLC

Concord MA Headquarters

47 Junction Square Drive Concord MA 02145 USA T +1 978 369 5533 F +1 978 369 7712

Washington DC

1225 Eye Street NW Suite 200 Washington DC 20005 USA T +1 202 525 5770

For more information visit wwwmjbradleycom

6

MJB P A

About Us MJ Bradley amp Associates (ldquoMJBampArdquo) is an internationally recognized consulting firm with an 21-yeartrack record advising industry NGOs and government agencies on environmental and energy policytechnology and implementation

Our staff has professional experience from public private sector and non-governmental organizationsand advanced degrees in law engineering finance policy and environmental science

Key areas of focus and expertise bull Power Sector bull Oil and Gas Industry bull Transportation and Electric Vehicle Technology and Policy bull Engineering and Technical Services

We apply our skills to help clients with issues including bull Market implications of emerging laws and regulations bull Market entry strategies for emerging technologies bull Investment strategies for environmental markets bull Investment due diligence bull Stakeholder coalitions on long-term energy sector strategy bull Tracking state regional and federal energy and environmental initiatives

7

-E conEdison = Exelon

~ nationalgrid rtilDom1n1on

11c11110 r1s here The power of action

NewYorkPower Authority

~ Seattle City Light

cip

NEXTera-E~

tic LPINE0 -

Los Angeles Department of Water amp Power

BAE SYSTEMS ~ Massachusetts Bay ~ Transportation Authority

MJB P A

[ CSX ] How tomorrow moves

bullbull bullbull

NESCAUM

O cENTER ~ NEW ENERGY ECONOMY

CLEANAIR) TASK FORCE

WOR

(t ceres

EDF-ENVlAONMENTA~ DEFENSE FUND

Findng1hewaysthat w0fk

Ritilf RC F I NTl ru r E

GEORGETOWN CL MATE G NTER

ENERGY FOUNDATION hlild ng a new ner~ lut1Jre

Barr Foundation

merck family fund pr llC1~ l111 pahorJbull11~ru-l bull atr11t1llw11uia Jbull ori_IOlAUJlt

Bloomberg Philanthropies

Representative Clients Our clients are multi-national in scope and include energy and clean technology firms environmental groups transportation companies and government agencies

Energy Sector Clients

Municipal and Government Clients

Think Tanks Policy Institutes amp Advocacy

Group Clients

Foundations

Transportation Sector Clients

8

-

MJB P A

Cumulative Household GHG Emissions with RNG

A home using RNG would generate roughly one quarter the CO2 emissions of a home using electricity

0

20

40

60

80 NG Electricity RNG

Cumulative CO2 Em

issions (tons)

2016 2018 2020 2022 2024 2026 2028 2030

9

MJB P A

Comparison of Bus Fleet GHG Emissions Projected Annual Fleet GHG Emissions Using Different Fuels

Annual CO2e (tons) Baseline Low NOx CNG Bus amp RNG

Electric Bus (Depot Charge) Electric Bus (Depot amp In-Route) 450000

Fuel Cell Bus (SMR) Fuel Cell Bus (Electrolysis)

50000

100000

150000

200000

250000

300000

350000

400000

0 2015 2020 2025 2030 2035 2040 2045 2050 2055

Source Ramboll Environ US Corporation MJBampA Note The analysis assumed that GHG emissions from electricity generation in California would be 262 gkWh in 2015 falling to 109 gkWh in 2050 2015 emissions are actual average values based on EIA data Projected future emissions are based on zero-carbon electricity generation in California increasing from 46 today to 78 in 2050 in accordance with state goals Fleet-wide deployment of electric buses is assumed to be uneconomical until 2025

10

  • A Natural Gas Distribution Perspective on RNGPanel 2 RNG Policy and Market Forces
  • Economy-Wide State GHG Reduction Goals
  • Decarbonization Analyses
  • Share of Natural Gas End Use by Sector
  • LDC Challenges and Opportunities
  • Slide Number 6
  • About Us
  • Representative Clients
  • Slide Number 9
  • Comparison of Bus Fleet GHG Emissions
Page 4: Natural Gas Distribution Perspective on RNG€¦ · MJB &A A Natural Gas Distribution Perspective on RNG Panel 2: RNG Policy and Market Forces September 26, 2017 . Brian Jones Senior

Manufacturing Commercial Bu ii dings Residential

MJB P A

bull Other

bull Office Equipment

bull Computing

bull Cooking

bull Lighting

Refrigeration

bull Water Heating

bull Space Heating

Processes

bull Boilers

bull Other Process Heat

Share of Natural Gas End Use by Sector

2016 Natural Gas Consumption by Sector amp End Use

trillion cubic feet

Source US EIA Annual Energy Review (May 2017) US Natural Gas Consumption by End Use MJBampA analysis to apportion shares by end use based on available data (2010 RECs for Residential 2010 MECS for Industrial and 2012 CBECs for Commercial Buildings)

4

MJB P A

LDC Challenges and Opportunities

RNG allows LDCs to use existing natural gas distribution system to deliver a renewable fuel and decarbonize the fuel supplied to customers

Challenges Potential Solutions

bull Upfront capital costs gas processing interconnection pipeline laterals

bull Utilities subject to least-cost requirements

bull Lack of gas quality standards creates uncertainty for both developers and utilities

bull Availability of RNG supply in a given state or region

bull Voluntary RNG customer offerings bull FortisBC DTE Energy Vermont Gas

bull Direct contracting to large end users bull Corporations and institutions with sustainability goals

bull Renewable Thermal Collaborative bull Renewable Gas Standards ndash following Renewable Portfolio Standards

bull State policy action bull Interconnectiongas quality standards

bull Funding mechanisms bull Regulator consideration of climateeconomic benefit of RNG investment

5

MJB amp A MJ Bradley amp Associates LLC

Concord MA Headquarters

47 Junction Square Drive Concord MA 02145 USA T +1 978 369 5533 F +1 978 369 7712

Washington DC

1225 Eye Street NW Suite 200 Washington DC 20005 USA T +1 202 525 5770

For more information visit wwwmjbradleycom

6

MJB P A

About Us MJ Bradley amp Associates (ldquoMJBampArdquo) is an internationally recognized consulting firm with an 21-yeartrack record advising industry NGOs and government agencies on environmental and energy policytechnology and implementation

Our staff has professional experience from public private sector and non-governmental organizationsand advanced degrees in law engineering finance policy and environmental science

Key areas of focus and expertise bull Power Sector bull Oil and Gas Industry bull Transportation and Electric Vehicle Technology and Policy bull Engineering and Technical Services

We apply our skills to help clients with issues including bull Market implications of emerging laws and regulations bull Market entry strategies for emerging technologies bull Investment strategies for environmental markets bull Investment due diligence bull Stakeholder coalitions on long-term energy sector strategy bull Tracking state regional and federal energy and environmental initiatives

7

-E conEdison = Exelon

~ nationalgrid rtilDom1n1on

11c11110 r1s here The power of action

NewYorkPower Authority

~ Seattle City Light

cip

NEXTera-E~

tic LPINE0 -

Los Angeles Department of Water amp Power

BAE SYSTEMS ~ Massachusetts Bay ~ Transportation Authority

MJB P A

[ CSX ] How tomorrow moves

bullbull bullbull

NESCAUM

O cENTER ~ NEW ENERGY ECONOMY

CLEANAIR) TASK FORCE

WOR

(t ceres

EDF-ENVlAONMENTA~ DEFENSE FUND

Findng1hewaysthat w0fk

Ritilf RC F I NTl ru r E

GEORGETOWN CL MATE G NTER

ENERGY FOUNDATION hlild ng a new ner~ lut1Jre

Barr Foundation

merck family fund pr llC1~ l111 pahorJbull11~ru-l bull atr11t1llw11uia Jbull ori_IOlAUJlt

Bloomberg Philanthropies

Representative Clients Our clients are multi-national in scope and include energy and clean technology firms environmental groups transportation companies and government agencies

Energy Sector Clients

Municipal and Government Clients

Think Tanks Policy Institutes amp Advocacy

Group Clients

Foundations

Transportation Sector Clients

8

-

MJB P A

Cumulative Household GHG Emissions with RNG

A home using RNG would generate roughly one quarter the CO2 emissions of a home using electricity

0

20

40

60

80 NG Electricity RNG

Cumulative CO2 Em

issions (tons)

2016 2018 2020 2022 2024 2026 2028 2030

9

MJB P A

Comparison of Bus Fleet GHG Emissions Projected Annual Fleet GHG Emissions Using Different Fuels

Annual CO2e (tons) Baseline Low NOx CNG Bus amp RNG

Electric Bus (Depot Charge) Electric Bus (Depot amp In-Route) 450000

Fuel Cell Bus (SMR) Fuel Cell Bus (Electrolysis)

50000

100000

150000

200000

250000

300000

350000

400000

0 2015 2020 2025 2030 2035 2040 2045 2050 2055

Source Ramboll Environ US Corporation MJBampA Note The analysis assumed that GHG emissions from electricity generation in California would be 262 gkWh in 2015 falling to 109 gkWh in 2050 2015 emissions are actual average values based on EIA data Projected future emissions are based on zero-carbon electricity generation in California increasing from 46 today to 78 in 2050 in accordance with state goals Fleet-wide deployment of electric buses is assumed to be uneconomical until 2025

10

  • A Natural Gas Distribution Perspective on RNGPanel 2 RNG Policy and Market Forces
  • Economy-Wide State GHG Reduction Goals
  • Decarbonization Analyses
  • Share of Natural Gas End Use by Sector
  • LDC Challenges and Opportunities
  • Slide Number 6
  • About Us
  • Representative Clients
  • Slide Number 9
  • Comparison of Bus Fleet GHG Emissions
Page 5: Natural Gas Distribution Perspective on RNG€¦ · MJB &A A Natural Gas Distribution Perspective on RNG Panel 2: RNG Policy and Market Forces September 26, 2017 . Brian Jones Senior

MJB P A

LDC Challenges and Opportunities

RNG allows LDCs to use existing natural gas distribution system to deliver a renewable fuel and decarbonize the fuel supplied to customers

Challenges Potential Solutions

bull Upfront capital costs gas processing interconnection pipeline laterals

bull Utilities subject to least-cost requirements

bull Lack of gas quality standards creates uncertainty for both developers and utilities

bull Availability of RNG supply in a given state or region

bull Voluntary RNG customer offerings bull FortisBC DTE Energy Vermont Gas

bull Direct contracting to large end users bull Corporations and institutions with sustainability goals

bull Renewable Thermal Collaborative bull Renewable Gas Standards ndash following Renewable Portfolio Standards

bull State policy action bull Interconnectiongas quality standards

bull Funding mechanisms bull Regulator consideration of climateeconomic benefit of RNG investment

5

MJB amp A MJ Bradley amp Associates LLC

Concord MA Headquarters

47 Junction Square Drive Concord MA 02145 USA T +1 978 369 5533 F +1 978 369 7712

Washington DC

1225 Eye Street NW Suite 200 Washington DC 20005 USA T +1 202 525 5770

For more information visit wwwmjbradleycom

6

MJB P A

About Us MJ Bradley amp Associates (ldquoMJBampArdquo) is an internationally recognized consulting firm with an 21-yeartrack record advising industry NGOs and government agencies on environmental and energy policytechnology and implementation

Our staff has professional experience from public private sector and non-governmental organizationsand advanced degrees in law engineering finance policy and environmental science

Key areas of focus and expertise bull Power Sector bull Oil and Gas Industry bull Transportation and Electric Vehicle Technology and Policy bull Engineering and Technical Services

We apply our skills to help clients with issues including bull Market implications of emerging laws and regulations bull Market entry strategies for emerging technologies bull Investment strategies for environmental markets bull Investment due diligence bull Stakeholder coalitions on long-term energy sector strategy bull Tracking state regional and federal energy and environmental initiatives

7

-E conEdison = Exelon

~ nationalgrid rtilDom1n1on

11c11110 r1s here The power of action

NewYorkPower Authority

~ Seattle City Light

cip

NEXTera-E~

tic LPINE0 -

Los Angeles Department of Water amp Power

BAE SYSTEMS ~ Massachusetts Bay ~ Transportation Authority

MJB P A

[ CSX ] How tomorrow moves

bullbull bullbull

NESCAUM

O cENTER ~ NEW ENERGY ECONOMY

CLEANAIR) TASK FORCE

WOR

(t ceres

EDF-ENVlAONMENTA~ DEFENSE FUND

Findng1hewaysthat w0fk

Ritilf RC F I NTl ru r E

GEORGETOWN CL MATE G NTER

ENERGY FOUNDATION hlild ng a new ner~ lut1Jre

Barr Foundation

merck family fund pr llC1~ l111 pahorJbull11~ru-l bull atr11t1llw11uia Jbull ori_IOlAUJlt

Bloomberg Philanthropies

Representative Clients Our clients are multi-national in scope and include energy and clean technology firms environmental groups transportation companies and government agencies

Energy Sector Clients

Municipal and Government Clients

Think Tanks Policy Institutes amp Advocacy

Group Clients

Foundations

Transportation Sector Clients

8

-

MJB P A

Cumulative Household GHG Emissions with RNG

A home using RNG would generate roughly one quarter the CO2 emissions of a home using electricity

0

20

40

60

80 NG Electricity RNG

Cumulative CO2 Em

issions (tons)

2016 2018 2020 2022 2024 2026 2028 2030

9

MJB P A

Comparison of Bus Fleet GHG Emissions Projected Annual Fleet GHG Emissions Using Different Fuels

Annual CO2e (tons) Baseline Low NOx CNG Bus amp RNG

Electric Bus (Depot Charge) Electric Bus (Depot amp In-Route) 450000

Fuel Cell Bus (SMR) Fuel Cell Bus (Electrolysis)

50000

100000

150000

200000

250000

300000

350000

400000

0 2015 2020 2025 2030 2035 2040 2045 2050 2055

Source Ramboll Environ US Corporation MJBampA Note The analysis assumed that GHG emissions from electricity generation in California would be 262 gkWh in 2015 falling to 109 gkWh in 2050 2015 emissions are actual average values based on EIA data Projected future emissions are based on zero-carbon electricity generation in California increasing from 46 today to 78 in 2050 in accordance with state goals Fleet-wide deployment of electric buses is assumed to be uneconomical until 2025

10

  • A Natural Gas Distribution Perspective on RNGPanel 2 RNG Policy and Market Forces
  • Economy-Wide State GHG Reduction Goals
  • Decarbonization Analyses
  • Share of Natural Gas End Use by Sector
  • LDC Challenges and Opportunities
  • Slide Number 6
  • About Us
  • Representative Clients
  • Slide Number 9
  • Comparison of Bus Fleet GHG Emissions
Page 6: Natural Gas Distribution Perspective on RNG€¦ · MJB &A A Natural Gas Distribution Perspective on RNG Panel 2: RNG Policy and Market Forces September 26, 2017 . Brian Jones Senior

MJB amp A MJ Bradley amp Associates LLC

Concord MA Headquarters

47 Junction Square Drive Concord MA 02145 USA T +1 978 369 5533 F +1 978 369 7712

Washington DC

1225 Eye Street NW Suite 200 Washington DC 20005 USA T +1 202 525 5770

For more information visit wwwmjbradleycom

6

MJB P A

About Us MJ Bradley amp Associates (ldquoMJBampArdquo) is an internationally recognized consulting firm with an 21-yeartrack record advising industry NGOs and government agencies on environmental and energy policytechnology and implementation

Our staff has professional experience from public private sector and non-governmental organizationsand advanced degrees in law engineering finance policy and environmental science

Key areas of focus and expertise bull Power Sector bull Oil and Gas Industry bull Transportation and Electric Vehicle Technology and Policy bull Engineering and Technical Services

We apply our skills to help clients with issues including bull Market implications of emerging laws and regulations bull Market entry strategies for emerging technologies bull Investment strategies for environmental markets bull Investment due diligence bull Stakeholder coalitions on long-term energy sector strategy bull Tracking state regional and federal energy and environmental initiatives

7

-E conEdison = Exelon

~ nationalgrid rtilDom1n1on

11c11110 r1s here The power of action

NewYorkPower Authority

~ Seattle City Light

cip

NEXTera-E~

tic LPINE0 -

Los Angeles Department of Water amp Power

BAE SYSTEMS ~ Massachusetts Bay ~ Transportation Authority

MJB P A

[ CSX ] How tomorrow moves

bullbull bullbull

NESCAUM

O cENTER ~ NEW ENERGY ECONOMY

CLEANAIR) TASK FORCE

WOR

(t ceres

EDF-ENVlAONMENTA~ DEFENSE FUND

Findng1hewaysthat w0fk

Ritilf RC F I NTl ru r E

GEORGETOWN CL MATE G NTER

ENERGY FOUNDATION hlild ng a new ner~ lut1Jre

Barr Foundation

merck family fund pr llC1~ l111 pahorJbull11~ru-l bull atr11t1llw11uia Jbull ori_IOlAUJlt

Bloomberg Philanthropies

Representative Clients Our clients are multi-national in scope and include energy and clean technology firms environmental groups transportation companies and government agencies

Energy Sector Clients

Municipal and Government Clients

Think Tanks Policy Institutes amp Advocacy

Group Clients

Foundations

Transportation Sector Clients

8

-

MJB P A

Cumulative Household GHG Emissions with RNG

A home using RNG would generate roughly one quarter the CO2 emissions of a home using electricity

0

20

40

60

80 NG Electricity RNG

Cumulative CO2 Em

issions (tons)

2016 2018 2020 2022 2024 2026 2028 2030

9

MJB P A

Comparison of Bus Fleet GHG Emissions Projected Annual Fleet GHG Emissions Using Different Fuels

Annual CO2e (tons) Baseline Low NOx CNG Bus amp RNG

Electric Bus (Depot Charge) Electric Bus (Depot amp In-Route) 450000

Fuel Cell Bus (SMR) Fuel Cell Bus (Electrolysis)

50000

100000

150000

200000

250000

300000

350000

400000

0 2015 2020 2025 2030 2035 2040 2045 2050 2055

Source Ramboll Environ US Corporation MJBampA Note The analysis assumed that GHG emissions from electricity generation in California would be 262 gkWh in 2015 falling to 109 gkWh in 2050 2015 emissions are actual average values based on EIA data Projected future emissions are based on zero-carbon electricity generation in California increasing from 46 today to 78 in 2050 in accordance with state goals Fleet-wide deployment of electric buses is assumed to be uneconomical until 2025

10

  • A Natural Gas Distribution Perspective on RNGPanel 2 RNG Policy and Market Forces
  • Economy-Wide State GHG Reduction Goals
  • Decarbonization Analyses
  • Share of Natural Gas End Use by Sector
  • LDC Challenges and Opportunities
  • Slide Number 6
  • About Us
  • Representative Clients
  • Slide Number 9
  • Comparison of Bus Fleet GHG Emissions
Page 7: Natural Gas Distribution Perspective on RNG€¦ · MJB &A A Natural Gas Distribution Perspective on RNG Panel 2: RNG Policy and Market Forces September 26, 2017 . Brian Jones Senior

MJB P A

About Us MJ Bradley amp Associates (ldquoMJBampArdquo) is an internationally recognized consulting firm with an 21-yeartrack record advising industry NGOs and government agencies on environmental and energy policytechnology and implementation

Our staff has professional experience from public private sector and non-governmental organizationsand advanced degrees in law engineering finance policy and environmental science

Key areas of focus and expertise bull Power Sector bull Oil and Gas Industry bull Transportation and Electric Vehicle Technology and Policy bull Engineering and Technical Services

We apply our skills to help clients with issues including bull Market implications of emerging laws and regulations bull Market entry strategies for emerging technologies bull Investment strategies for environmental markets bull Investment due diligence bull Stakeholder coalitions on long-term energy sector strategy bull Tracking state regional and federal energy and environmental initiatives

7

-E conEdison = Exelon

~ nationalgrid rtilDom1n1on

11c11110 r1s here The power of action

NewYorkPower Authority

~ Seattle City Light

cip

NEXTera-E~

tic LPINE0 -

Los Angeles Department of Water amp Power

BAE SYSTEMS ~ Massachusetts Bay ~ Transportation Authority

MJB P A

[ CSX ] How tomorrow moves

bullbull bullbull

NESCAUM

O cENTER ~ NEW ENERGY ECONOMY

CLEANAIR) TASK FORCE

WOR

(t ceres

EDF-ENVlAONMENTA~ DEFENSE FUND

Findng1hewaysthat w0fk

Ritilf RC F I NTl ru r E

GEORGETOWN CL MATE G NTER

ENERGY FOUNDATION hlild ng a new ner~ lut1Jre

Barr Foundation

merck family fund pr llC1~ l111 pahorJbull11~ru-l bull atr11t1llw11uia Jbull ori_IOlAUJlt

Bloomberg Philanthropies

Representative Clients Our clients are multi-national in scope and include energy and clean technology firms environmental groups transportation companies and government agencies

Energy Sector Clients

Municipal and Government Clients

Think Tanks Policy Institutes amp Advocacy

Group Clients

Foundations

Transportation Sector Clients

8

-

MJB P A

Cumulative Household GHG Emissions with RNG

A home using RNG would generate roughly one quarter the CO2 emissions of a home using electricity

0

20

40

60

80 NG Electricity RNG

Cumulative CO2 Em

issions (tons)

2016 2018 2020 2022 2024 2026 2028 2030

9

MJB P A

Comparison of Bus Fleet GHG Emissions Projected Annual Fleet GHG Emissions Using Different Fuels

Annual CO2e (tons) Baseline Low NOx CNG Bus amp RNG

Electric Bus (Depot Charge) Electric Bus (Depot amp In-Route) 450000

Fuel Cell Bus (SMR) Fuel Cell Bus (Electrolysis)

50000

100000

150000

200000

250000

300000

350000

400000

0 2015 2020 2025 2030 2035 2040 2045 2050 2055

Source Ramboll Environ US Corporation MJBampA Note The analysis assumed that GHG emissions from electricity generation in California would be 262 gkWh in 2015 falling to 109 gkWh in 2050 2015 emissions are actual average values based on EIA data Projected future emissions are based on zero-carbon electricity generation in California increasing from 46 today to 78 in 2050 in accordance with state goals Fleet-wide deployment of electric buses is assumed to be uneconomical until 2025

10

  • A Natural Gas Distribution Perspective on RNGPanel 2 RNG Policy and Market Forces
  • Economy-Wide State GHG Reduction Goals
  • Decarbonization Analyses
  • Share of Natural Gas End Use by Sector
  • LDC Challenges and Opportunities
  • Slide Number 6
  • About Us
  • Representative Clients
  • Slide Number 9
  • Comparison of Bus Fleet GHG Emissions
Page 8: Natural Gas Distribution Perspective on RNG€¦ · MJB &A A Natural Gas Distribution Perspective on RNG Panel 2: RNG Policy and Market Forces September 26, 2017 . Brian Jones Senior

-E conEdison = Exelon

~ nationalgrid rtilDom1n1on

11c11110 r1s here The power of action

NewYorkPower Authority

~ Seattle City Light

cip

NEXTera-E~

tic LPINE0 -

Los Angeles Department of Water amp Power

BAE SYSTEMS ~ Massachusetts Bay ~ Transportation Authority

MJB P A

[ CSX ] How tomorrow moves

bullbull bullbull

NESCAUM

O cENTER ~ NEW ENERGY ECONOMY

CLEANAIR) TASK FORCE

WOR

(t ceres

EDF-ENVlAONMENTA~ DEFENSE FUND

Findng1hewaysthat w0fk

Ritilf RC F I NTl ru r E

GEORGETOWN CL MATE G NTER

ENERGY FOUNDATION hlild ng a new ner~ lut1Jre

Barr Foundation

merck family fund pr llC1~ l111 pahorJbull11~ru-l bull atr11t1llw11uia Jbull ori_IOlAUJlt

Bloomberg Philanthropies

Representative Clients Our clients are multi-national in scope and include energy and clean technology firms environmental groups transportation companies and government agencies

Energy Sector Clients

Municipal and Government Clients

Think Tanks Policy Institutes amp Advocacy

Group Clients

Foundations

Transportation Sector Clients

8

-

MJB P A

Cumulative Household GHG Emissions with RNG

A home using RNG would generate roughly one quarter the CO2 emissions of a home using electricity

0

20

40

60

80 NG Electricity RNG

Cumulative CO2 Em

issions (tons)

2016 2018 2020 2022 2024 2026 2028 2030

9

MJB P A

Comparison of Bus Fleet GHG Emissions Projected Annual Fleet GHG Emissions Using Different Fuels

Annual CO2e (tons) Baseline Low NOx CNG Bus amp RNG

Electric Bus (Depot Charge) Electric Bus (Depot amp In-Route) 450000

Fuel Cell Bus (SMR) Fuel Cell Bus (Electrolysis)

50000

100000

150000

200000

250000

300000

350000

400000

0 2015 2020 2025 2030 2035 2040 2045 2050 2055

Source Ramboll Environ US Corporation MJBampA Note The analysis assumed that GHG emissions from electricity generation in California would be 262 gkWh in 2015 falling to 109 gkWh in 2050 2015 emissions are actual average values based on EIA data Projected future emissions are based on zero-carbon electricity generation in California increasing from 46 today to 78 in 2050 in accordance with state goals Fleet-wide deployment of electric buses is assumed to be uneconomical until 2025

10

  • A Natural Gas Distribution Perspective on RNGPanel 2 RNG Policy and Market Forces
  • Economy-Wide State GHG Reduction Goals
  • Decarbonization Analyses
  • Share of Natural Gas End Use by Sector
  • LDC Challenges and Opportunities
  • Slide Number 6
  • About Us
  • Representative Clients
  • Slide Number 9
  • Comparison of Bus Fleet GHG Emissions
Page 9: Natural Gas Distribution Perspective on RNG€¦ · MJB &A A Natural Gas Distribution Perspective on RNG Panel 2: RNG Policy and Market Forces September 26, 2017 . Brian Jones Senior

-

MJB P A

Cumulative Household GHG Emissions with RNG

A home using RNG would generate roughly one quarter the CO2 emissions of a home using electricity

0

20

40

60

80 NG Electricity RNG

Cumulative CO2 Em

issions (tons)

2016 2018 2020 2022 2024 2026 2028 2030

9

MJB P A

Comparison of Bus Fleet GHG Emissions Projected Annual Fleet GHG Emissions Using Different Fuels

Annual CO2e (tons) Baseline Low NOx CNG Bus amp RNG

Electric Bus (Depot Charge) Electric Bus (Depot amp In-Route) 450000

Fuel Cell Bus (SMR) Fuel Cell Bus (Electrolysis)

50000

100000

150000

200000

250000

300000

350000

400000

0 2015 2020 2025 2030 2035 2040 2045 2050 2055

Source Ramboll Environ US Corporation MJBampA Note The analysis assumed that GHG emissions from electricity generation in California would be 262 gkWh in 2015 falling to 109 gkWh in 2050 2015 emissions are actual average values based on EIA data Projected future emissions are based on zero-carbon electricity generation in California increasing from 46 today to 78 in 2050 in accordance with state goals Fleet-wide deployment of electric buses is assumed to be uneconomical until 2025

10

  • A Natural Gas Distribution Perspective on RNGPanel 2 RNG Policy and Market Forces
  • Economy-Wide State GHG Reduction Goals
  • Decarbonization Analyses
  • Share of Natural Gas End Use by Sector
  • LDC Challenges and Opportunities
  • Slide Number 6
  • About Us
  • Representative Clients
  • Slide Number 9
  • Comparison of Bus Fleet GHG Emissions
Page 10: Natural Gas Distribution Perspective on RNG€¦ · MJB &A A Natural Gas Distribution Perspective on RNG Panel 2: RNG Policy and Market Forces September 26, 2017 . Brian Jones Senior

MJB P A

Comparison of Bus Fleet GHG Emissions Projected Annual Fleet GHG Emissions Using Different Fuels

Annual CO2e (tons) Baseline Low NOx CNG Bus amp RNG

Electric Bus (Depot Charge) Electric Bus (Depot amp In-Route) 450000

Fuel Cell Bus (SMR) Fuel Cell Bus (Electrolysis)

50000

100000

150000

200000

250000

300000

350000

400000

0 2015 2020 2025 2030 2035 2040 2045 2050 2055

Source Ramboll Environ US Corporation MJBampA Note The analysis assumed that GHG emissions from electricity generation in California would be 262 gkWh in 2015 falling to 109 gkWh in 2050 2015 emissions are actual average values based on EIA data Projected future emissions are based on zero-carbon electricity generation in California increasing from 46 today to 78 in 2050 in accordance with state goals Fleet-wide deployment of electric buses is assumed to be uneconomical until 2025

10

  • A Natural Gas Distribution Perspective on RNGPanel 2 RNG Policy and Market Forces
  • Economy-Wide State GHG Reduction Goals
  • Decarbonization Analyses
  • Share of Natural Gas End Use by Sector
  • LDC Challenges and Opportunities
  • Slide Number 6
  • About Us
  • Representative Clients
  • Slide Number 9
  • Comparison of Bus Fleet GHG Emissions