DECISION ADOPTING LOW CARBON FUEL STANDARD REVENUE ALLOCATION METHODOLOGY FOR THE INVESTOR-OWNED ELECTRIC AND NATURAL GAS UTILITIES Summary This decision adopts a methodology for allocating revenue generated from the sale of Low Carbon Fuel Standard (LCFS) credits by the electric and natural gas utilities. The electric investor-owned utilities are directed to allocate LCFS credit revenue to plug-in electric vehicle (PEV) customers by reducing the purchase cost of a PEV or by applying the revenue as a credit against the customer’s electric utility bill annually. Electric utilities may return all LCFS revenue through one of these options or divide LCFS revenue between each of these options. Electric utilities may not return LCFS revenue by reducing the volumetric rate levied on the electricity used to re-charge PEVs at residential locations. Natural gas investor-owned utility companies are directed to allocate LCFS credit revenue to natural gas vehicle customers by reducing the price of compressed natural gas fuel at utility-owned stations accessible to the public or via an on-bill credit for residential customers. Natural gas utilities may choose among these methodologies. Procedural History The Legislature, through the Global Warming Solutions Act of 2006, Assembly Bill (AB) 32, and the Governor’s Office, through Executive Order S-1-07, directed state government agencies to develop programs that reduce California’s greenhouse gas (GHG) emissions. AB 32 granted the California Air
DECISION ADOPTING LOW CARBON FUEL STANDARD REVENUE ALLOCATION METHODOLOGY FOR THE INVESTOR-OWNED ELECTRIC AND NATURAL GAS UTILITIES Summary This decision adopts a methodology for allocating revenue generated from the sale of Low Carbon Fuel Standard (LCFS) credits by the electric and natural gas utilities. The electric investor-owned utilities are directed to allocate LCFS credit revenue to plug-in electric vehicle (PEV) customers by reducing the purchase cost of a PEV or by applying the revenue as a credit against the customer’s electric utility bill annually. Electric utilities may return all LCFS revenue through one of these options or divide LCFS revenue between each of these options. Electric utilities may not return LCFS revenue by reducing the volumetric rate levied on the electricity used to re-charge PEVs at residential locations. Natural gas investor-owned utility companies are directed to allocate LCFS credit revenue to natural gas vehicle customers by reducing the price of compressed natural gas fuel at utility-owned stations accessible to the public or via an on-bill credit for residential customers. Natural gas utilities may choose among these methodologies. Procedural History The Legislature, through the Global Warming Solutions Act of 2006, Assembly Bill (AB) 32, and the Governor’s Office, through Executive Order S-1-07, directed state government agencies to develop programs that reduce California’s greenhouse gas (GHG) emissions. AB 32 granted the California Air
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