Ultra-Low-Carbon Fuel: Commercial-Scale Production Facilities & Blending Infrastructure
Updated: Apr 13, 2021
The California Energy Commission’s (CEC’s) Clean Transportation Program announces the availability of $8.0 million to support ultra-low-carbon fuel in two funding categories: commercial-scale production facilities and blending infrastructure.
Up to $6.0 million in grant funds is available for commercial-scale production facility projects (referred to in this solicitation as Fuel Production projects). Funding is available for new, ultra-low-carbon fuel production facilities, or for the expansion of existing ultra-low-carbon fuel production facilities.
Up to $2.0 million in grant funds is available for ultra-low-carbon fuel blending infrastructure projects (referred to in this solicitation as Fuel Blending projects).
The Fuel Production category contains two unique project types: New Facility and Expansion of an Existing Facility. Definitions for each category are described below.
A New Facility is a proposed project that:
· Constructs and operates a new, ultra-low-carbon fuel production facility.
· Produces at least 1.0 million Diesel Gallon Equivalents (DGE) of eligible fuel for transportation use.
· If the proposed project is located at an existing fuel production site, the new fuel production technology must be implemented as a stand-alone facility and be able to operate independently of the currently used fuel production technology.
An Expansion of an Existing Facility is a proposed project that:
· Constructs, modifies or installs equipment to increase production capacity of fuel being produced at an existing fuel production facility.
· Increases production by at least 1.0 million DGE of ultra-low-carbon eligible fuel for transportation use.
1. Eligible ultra-low-carbon fuels for fuel production include diesel substitutes, gasoline substitutes, biomethane, and electricity for transportation use. For purposes of this solicitation, eligible ultra-low-carbon fuels include the following:
Diesel substitutes. These include renewable diesel, biodiesel, or other suitable substitutes, including Dimethyl Ether (DME). These products can be used in pure form or blended.
Gasoline substitutes. These include ethanol, biobutanol, renewable gasoline or other suitable substitutes. These products can be used in pure form or blended.
Biomethane. Biomethane is renewable natural gas produced from organic material.
Electricity for Transportation Use. Electricity must be produced from an eligible feedstock and dedicated for use in transportation.
Renewable hydrogen, non-renewable hydrogen, aviation fuel, marine fuel and other off-road fuel are not an eligible ultra-low-carbon fuel for this solicitation. For scoring purposes, the evaluation committee will only consider the eligible portion of the project.
1. The proposed project must produce fuel using an eligible, renewable feedstock, as discussed in the subsequent section on Eligible Feedstocks. 2. The proposed project must produce a fuel with a calculated carbon intensity of 30 gCO2/MJ or less. To be eligible for funding as a Fuel Blending funding category:
1. The proposed project must install and operate ultra-low-carbon fuel blending infrastructure at a new or existing facility. 2. Eligible ultra-low-carbon fuels for fuel blending include biodiesel and/or renewable diesel and must have a calculated carbon intensity of 30 gCO2/MJ or less. 3. The proposed project must blend fuel produced from an eligible, renewable feedstock, as discussed in the subsequent section on Eligible Feedstocks.
4. The proposed project must result in a net increase of blending capacity of at least 1.0 million DGE annually of ultra-low-carbon fuel. If infrastructure is located at an existing fuel blending facility, the project must expand blending capacity by the minimum amount required.
If an applicant is submitting an application for both a fuel production and fuel blending project, if the fuel blending project proposes to use fuel from the fuel production project, the fuel and benefits will only be eligible for the fuel production project.
A. Eligible Feedstocks
For purposes of this solicitation, eligible feedstocks must be organic material not derived from fossil fuels or inorganic greenhouse gases, including but not limited to: · Pre-landfilled waste-based biomass
· Alternative purpose-grown crops
· Agricultural residues
· Woody biomass and forest residues
· Animal manures
Biomass is defined as any organic material not derived from fossil fuels or inorganic greenhouse gases, including, but not limited to: · Agricultural crops
· Agricultural waste and residues
· Rangeland maintenance residues
· Sludge derived from organic matter
· Landscape and right-of-way tree trimmings
· Wood waste from timbering operations
· Mill residues that result from milling lumber
· Waste pallets
· Dunnage, manufacturing, and construction wood wastes
Agricultural wastes and residues include, but are not limited to: · Animal wastes
· Remains and tallow
· Food wastes
· Recycled cooking oils
Landscape or right-of-way tree trimmings include all solid waste materials that result from tree or vegetation trimming or removal to establish or maintain a right-of-way on public or private land for the following purposes: 1) For the provision of public utilities, including, but not limited to, natural gas, water, electricity, and telecommunications.
2) For fuel hazard reduction resulting in fire protection and prevention.
3) For the public’s recreational use.
Corn grain is NOT an eligible feedstock; however, this limitation does not apply to ethanol derived from corn stover, leaves, cobs, or other nonedible plant portions of the corn. If using municipal solid waste (MSW) as a feedstock, only the biogenic fraction of the waste stream is eligible.
Landfill gas is NOT an eligible feedstock.