HomeMy WebLinkAboutMinutes - March 10, 2020 SSLODI CITY COUNCIL
SHIRTSLEEVE SESSION
CARNEGIE FORUM, 305 WEST PINE STREET
TUESDAY, MARCH 10, 2020
An Informal Informational Meeting ("Shirtsleeve" Session) of the Lodi City Council was held
Tuesday, March 10, 2020, commencing at 7:02 a.m.
Present: Council Member Chandler, Council Member Mounce, Mayor Pro Tempore Nakanishi,
and Mayor Kuehne
Absent: None
Also Present: City Manager Schwabauer, City Attorney Magdich, and Assistant City Clerk Farris
Transportation Manager Georgia Graham provided a brief introduction of the renewable natural
gas proposal, which would be a revenue generating program for the City.
Sahara Kamali, Director of Business Development with Clean Energy Renewables, provided a
PowerPoint presentation regarding the renewable natural gas proposal. Specific topics of
discussion included clean energy at a glance, definition of renewable natural gas (RNG),
renewable natural gas roadmap, regulatory programs, low carbon fuel standard, RNG proposal,
and CNG with better economics.
In response to Council Member Chandler, Ms. Kamali explained that the RNG is brought up to
specifications and then comingled with the other fuel within the pipeline.
In response to City Manager Schwabauer, Ms. Kamali stated the cost of what the City is currently
paying for natural gas would not change; the $24,000 is an additional value.
In response to Mayor Kuehne, Ms. Kamali stated other cities using their company include
Culver City, Santa Monica, Beverly Hills, Ontario, and Norwalk, as well as transit agencies in
Los Angeles, Santa Monica, and Culver City.
In response to Council Member Mounce, City Manager Schwabauer stated that the project
proposed in the past by Schneider Electric was very different from this program; that project
involved a less refined product running through an onsite motor at White Slough Water Pollution
Control Facility. The Public Works Director at that time was concerned the technology was not
right yet and with the dirtier fuel being utilized, the motors would require a lot of maintenance, and
so the project did not move forward.
In response to Council Member Chandler's question regarding local sources, Ms. Kamali stated
that three or four California dairies will be used starting in 2021, but the majority of suppliers are
outside of California.
None.
A.Roll Call by City Clerk
B.Topic(s)
B-1 Receive Information on Revenue Opportunities Available through Renewable Natural Gas
Low Carbon Fuel Standard Program (PW)
C. Comments by Public on Non-Agenda Items
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No action was taken by the City Council. The meeting was adjourned at 7:31 a.m.
D.Adjournment
ATTEST:
Pamela M. Farris
Assistant City Clerk
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RNG Proposal –City of Lodi
March 10, 2020
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Agenda
1.Clean Energy
2.What is RNG?
3.RIN & LCFS Markets
4.RNG Proposal –City of Lodi
5.Questions
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40 states
Across the
U.S.
and
Canada$346 MM in
Revenue in
2018
365M
Gallons sold
Provide Services
or Fuel to 300+
Additional
Stations
530+
Natural Gas Stations
190+
Service
Technicians
1,000+
Fleet Customers
46,700+NGVs
CLEAN ENERGY
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Clean Energy At A Glance
In 2018, Clean Energy
delivered 110 million
gallons of Redeem
Renewable Natural Gas
(RNG) Fuel
REDUCES EMISSIONS
Reduces greenhouse gas
emissions by 70% or more
from gasoline and diesel
COST EFFICIENT
Substantially less
expensive than diesel
and gasoline
RENEWABLE
Made from organic
waste sources like
landfills and dairy waste
DOMESTIC
Moving the country
towards energy
independence
What is
Renewable
Natural Gas?
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Renewable natural gas (RNG) has
significantly lower greenhouse gas
emissions than diesel and gasoline. It is
even cleaner than electric vehicles,
when considering how the electricity
is produced.
When used as a vehicle fuel, RNG
delivers the best and highest use; it
replaces the demand for high-carbon
diesel and gasoline with a fuel that
reduces the GHG emissions of a fleet.
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CAPTURE
& EXTRACT
PROCESS
& PURIFY
ENTER INTERSTATE
FUEL PIPELINE
REDUCE
TRANSPORTATION
EMISSIONS
FUEL A GREENER
SUPPLY CHAIN
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5
Renewable Natural Gas Roadmap
Federal Regulation:
Renewable Fuel Standard (RFS2)
Mandated through 2022 and every
year thereafter
Credits (RINs) generated for every
gallon of renewable fuel produced
and consumed
State Regulation:
California Low Carbon Fuel Standard
Mandated through 2030
LCFS credits generated for every
metric ton (MT) of CO2 emission
reduced when using a low carbon
transportation fuel
Regulatory Programs
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RFS2
LCFS
Low Carbon Fuel Standard (LCFS)
GHG Emissions Calculations
CO 2
102G
ULTRA LOWSULFURDIESEL
CNG CNG
79G
COMPRESSEDNAT GAS
48G
FROMLANDFILL
-15G
FROMDRY AD
•Credits are
generated
against
compliance
curve
•Goal: decrease
CI of
transportation
fuels in CA 20%
by 2030
3-year supply deal
•Two one-year extensions at City’s option
•100% RNG Supply for City’s volumes
•Can accommodate City CNG station volume growth
5% RIN revenue share, paid monthly
10% Incremental LCFS revenue share, paid
quarterly
100% Fossil CNG equivalent LCFS revenue,
paid quarterly
CI is fixed at 48 for revenue share only
Sustainability marketing support
CER RNG Proposal
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Conclusion: CNG with Better Economics
RNG is available today for 100% of the
City’s CNG demand
Significant additional value can be
unlocked by the City by fueling with RNG
instead of fossil CNG
Clean Energy Renewables is an
experienced RNG provider and offers a
comprehensive program for
environmental credit management,
recordkeeping, reporting and
monetization
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