Development and analysis of a durable low-carbon fuel investment policy for California

Despite the urgent need to expand low carbon fuel production and the implementation of a variety of incentives, the alternative fuel industry has struggled to scale up the production of these fuels for a variety of reasons. [...] The winning bidder then enters a contract that sets the strike price as a price floor for the project’s electricity for the duration of the contract. [...] CI estimation and fuel production pathway details The above criteria are not intended to be exhaustive, but rather illustrative of the basic program details necessary to indicate the credibility of a project and the likelihood that it would be operational within the timeline of the program. [...] One method of incentivizing fuels with CIs under 30 gCO2e/MJ may be that the calculated market value, which is to say the present value for unit of fuel in relationship to the strike price, for the CCIFP program would be designed with a 30 gCO2e/MJ baseline for the purpose of estimating the LCFS credit value. [...] California’s funding commitment for the CCIFP is the largest factor determining the amount of production support granted by the policy, as it is the one constant in determining the amount of support available to contracted producers.