Staff Proposal to Implement Fuel Cell GHG Emission Standards

• AB  1637 (2016) establishes a new GHG standard, established by CARB, (rather than the existing SGIP standard) which is expected to be lower than the existing standard at the outset, and get progressively lower each year as the overall GHG emissions from the grid decrease due to implementation of CA's Renewables Portfolio Standard, reduction of coal imports, and other factors.

• In order for a fuel cell system to qualify for the NEMFC tariff, AB 1637 requires that the customer-generator use a technology the CPUC has determined will achieve reductions in emissions of greenhouse gases pursuant to CARB’s NEMFC GHG emission standards

• For onsite renewable fuel, all customer-generators must install a fuel metering system that reports use of both renewable and non-renewable fuel.

• Alternatively, a customer-generator can demonstrate compliance through its participation in a voluntary tariff program that allows the customer-generator to offset fossil natural gas consumption with renewable natural gas (RNG) through a special billing arrangement. While no such tariff currently exists, SoCalGas and SDG&E filed a joint application(A.19-02-015) proposing the creation of such a program.

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