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April 2025 CARB Regulation Update: Key Changes and Implications

Posted April 9th, 2025 by SRECTrade.

On April 4th, California Air Resources Board (CARB) published the latest revisions to the proposed amendments to the Low Carbon Fuel Standard (LCFS). These changes are required after the Office of Administrative Law (OAL) rejected the latest submission from CARB of the updated regulation.

Timeline and Process

CARB was required to revise the language in the proposed LCFS amendments due to a lack of clarity on how certain updates would be implemented. The revisions were published on April 4th, 2021, well ahead of the deadline, demonstrating CARB’s commitment to completing the amendment process efficiently. Public comments on the proposed changes are due by April 21st

Once public comments are received, CARB will prepare a response and submit the revised amendments to the Office of Administrative Law (OAL) for consideration. The OAL has 30 days to review and either adopt or reject the amendments, focusing solely on the technical clarity of the language, not the issues or political viewpoints regarding the LCFS

CARB has not yet made a statement on when the proposed changes, specifically the amended Carbon Intensity (CI) targets, will go into effect. If the OAL approves the amendments, the new CI score could be applied to 2025 credits and deficits.

Key Changes in the Updated Proposed Amendments

  1. OEMs and Base Credits: CARB has removed the proposal for the Executive Officer to direct a portion of base credits to Original Equipment Manufacturers (OEMs) following a specified regulatory trigger. Instead, base credits will be allocated to Electrical Distribution Utilities (EDUs), with a portion of these credit proceeds allocated to a Clean Fuel Reward to increase grants for Medium-Duty Vehicles (MDVs) and Heavy-Duty Vehicles (HDVs)
  2. EV Usage Metering: The metering of electric vehicle (EV) usage must meet 5% accuracy and show that calibration specifications are being followed. If there are no calibration specs from the manufacturer, the credit generator must develop reasonable methods for proving accuracy in their monitoring plan, which will be used by the third-party verifier during the verification process. This requirement affects all EV chargers and forklift meters, with verification requirements for electricity starting in 2026
  3. Hydrogen Refueling Infrastructure: Several beneficial revisions have been made to the hydrogen refueling infrastructure crediting, including removing a cost cap and changing the formula for calculating infrastructure credits

Additional Details

Metering for Forklifts: No change in the latest update. California will require metering for all material handling equipment, including forklifts, starting on January 1st, 2026. This requirement ensures that actual energy usage is accurately measured and reported.

Verification Requirements: No change in the latest update. Verification of metering accuracy will be required for all EV chargers and forklift meters. This involves third-party verification to ensure compliance with the specified accuracy standard.

Change to Credit Ownership for Transport Refrigeration Units (eTRUs): No change in the latest update. The right to generate credits for charging eTRUs has changed so that the owner of the facility where the eTRU charger is located can claim the credits.

Multi-Family Rules for EV Chargers: No change in the latest update. Commercial EV Charger owners at multi-family housing units will now be able to claim credits for their charging. For the owner of the EV Charger to claim the LCFS credits, the EV chargers at the multi-family residence cannot be limited to serving dedicated or reserved parking spaces.

Useful Links

Please feel free to reach out to SRECTrade with any questions you have on the updates to the LCFS.

Posted in SREC Markets |

Virginia RPS Bill Update: Potential Impact on the SREC Market 

Posted March 31st, 2025 by SRECTrade.

In March, the Virginia Legislature has been working on a bill (HB1883) to amend the state Renewable Energy Portfolio Standard (RPS) program requirements. The bill passed in the House and Senate, and last week, Governor Youngkin returned the bill with substitutions to be reviewed and approved. 

What was in the original bill? 

Here are the key amendments made to the Virginia RPS that impact the SREC market: 

  • Utilities were originally required to source 75% of the REC requirement from in-state sources starting in 2025. This bill pushed that requirement to start in the 2027 compliance year. 
  • The carve-out for solar, wind, and anaerobic digestion resources was increased from 1% to 3% in 2026, 5% in 2028, with an ongoing three-year assessment by the Commission to begin with the 2029 – 2031 compliance years, based on the availability of RECs and future market expansion. 
  • The maximum size of a project at a single location, owned by a single entity, was increased from 1 MW to 3 MW. 

What are the governor’s proposed substitutions? 

In his substitutions, the governor made the following sweeping change: 

  • There will be no requirement to procure and retire RECs for RPS compliance from 2024 to 2027. 

What to expect next: 

Since the governor returned the bill without signature, the legislature will now have the opportunity to reject or accept his changes. Should the amendments be rejected, the governor will again have the opportunity to veto the bill. 

  • If the bill is vetoed, the RPS will remain as is, with the in-state requirement of 75% beginning in 2025, and the carve-out remaining at 1%. 
  • If the amendments are accepted, there would be no requirement to procure RECs until 2028, changing the market in those years from compliance to voluntary, effectively eliminating a REC market in VA until 2028.  

As the legislature deliberates the governor’s amendments, SRECTrade and other stakeholders in the renewable energy sector are closely monitoring the implications for the state’s SREC market. The resolution of these amendments will shape the trajectory of Virginia’s renewable energy landscape, influencing both short-term strategies and long-term goals for sustainable growth and compliance. 

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Posted in SREC Markets, SREC Pricing, Virginia |

Metering Deep Dive: AC Metering at Electrical Panel

Posted March 25th, 2025 by SRECTrade.

Understanding the Requirements and Solutions 

As the demand for measuring energy consumption increases, particularly with the need to participate in the California Low Carbon Fuel Standard (LCFS), it has become imperative to explore advanced metering solutions. This blog post delves into the intricacies of AC metering for forklifts, offering insights into compliance and best practices. 

Why AC Metering Matters 

Forklift chargers primarily rely on three-phase power, which necessitates accurate measurement of energy consumption. To achieve this, a current transformer is required for each phase to monitor the current effectively. This precision is crucial for adhering to regulatory requirements and optimizing energy usage. 

Types of Meters and Their Capabilities 

The market offers a variety of meters, each with distinct capabilities: 

  • Multi-Item Meters: Meters like the eGauge can handle the metering of multiple items through a single device, making them ideal for comprehensive energy monitoring. 
  • Single-Item Meters: Other meters, such as the EKM, are designed to meter one item per device, providing focused and precise measurements. 

Voltage References

For each deployed meter, it’s required to have voltage references to measure the voltage accurately and power the meter. This step ensures the reliability and consistency of the data collected, which is crucial for making informed decisions about energy management. 

Optimizing Metering Solutions 

The most efficient metering strategy involves metering multiple forklift chargers at a single point: 

  • Single Point Metering: If an electrical panel serves multiple forklifts exclusively, it’s possible to meter at a single point within the panel. This approach simplifies the process and reduces costs. 
  • Branch Circuit Metering: When other items share the electrical panel with forklift chargers, each branch circuit with a charger must be metered individually. While this method provides detailed data, it can be more expensive. 

Cost Considerations 

Individually metering each forklift charger can become prohibitively expensive. Therefore, assessing the specific needs and configuration of your facility is crucial in choosing the most cost-effective metering solution. 

Turn-Key Metering Solutions 

For those seeking bespoke solutions, Anvil Monitor offers comprehensive services to deploy custom AC metering systems. Their expertise ensures that your metering setup is tailored to your unique requirements, providing accurate and reliable data. 

Next Steps

Reach out to your account executive at SRECTrade to learn more about how to implement effective AC metering solutions for your forklifts and stay compliant with the LCFS requirements. 

The timeline below will help you prepare for these upcoming changes: 

SREC Forklift Metering Customer Timeline:  

  • Q1 – 2025: Review metering options for your specific fleet  
  • Q2 – 2025: Install pilot project and/or make technology decision  
  • Q3 – 2025: Purchase and install metering solution   
  • Q4 – 2025: Ensure metering is reporting accurately and operating as expected 

Please reach out to your SRECTrade account executive with any questions.   

Posted in SREC Markets |

Metering Deep Dive: Anvil Remote Energy Monitors

Posted March 25th, 2025 by SRECTrade.

Simple Forklift Charging Monitoring with Real-time Analytics and Easy Installation 

Are you looking for the most cost-effective way to monetize your forklift charging while contributing to clean energy initiatives? Anvil Monitor’s Remote Energy Monitors (REM) offer the perfect solution. By leveraging cutting-edge technology, Anvil Monitor enables businesses to track, report, and capitalize on energy usage from electric forklift charging, unlocking new revenue opportunities through clean fuel program incentives. 

Anvil Monitor 

At Anvil Monitor, their mission is to deliver advanced monitoring solutions that track energy usage from forklift charging, enabling participation in clean fuel programs. Anvil’s REM technology allows companies to monitor and report electric forklift energy usage effortlessly, unlocking new revenue streams through incentives offered by clean fuel programs. 

Eligible Markets 

Anvil Monitor’s REM technology can benefit businesses across various regions with clean fuel programs, including: 

  • California: Low Carbon Fuel Standard (LCFS) 
  • Oregon: Clean Fuels Program (CFP) 
  • Washington: Clean Fuel Standard (CFS) 
  • Canada: Clean Fuel Regulation (CFR) 

REM Highlights 

Anvil Remote Energy Monitors offer several key features that make them indispensable for businesses aiming to optimize their energy usage and participate in clean fuel programs: 

  • Seamless Installation: Quick and simple installation of Anvil REMs ensures minimal disruption to your operations. 
  • Real-time Analytics: Monitor energy usage in real-time and report it for clean fuel programs with ease. 
  • Live Cloud Platform: Access your data anywhere through our intuitive web-based dashboard. 
  • Warranty: A one-year manufacturer warranty from the date of delivery ensures peace of mind. 

Technical Specifications 

Anvil’s REM technology is designed to track the energy (in kWh) used by each registered electric vehicle from the DC side of the forklift charger. Here are the key technical specifications: 

  • Wi-Fi: 802.11b/g/n 
  • Range: up to 200 meters (CLOS) 
  • Sensing & Operating Voltage: 10-80+VDC 
  • Current Sensing Range: 400A 
  • Size: L 3.64in x W 2.36in x H 1.10in (similar to the size of a deck of cards) 

Timeline for Implementation 

To ensure a smooth transition and optimal results, we provide a detailed implementation timeline: 

  • Q2-2025: Implement a pilot project to verify energy consumption and test the product if necessary 
  • Q3-2025: Order and install REMs 
  • Q4-2025: Verify REMs are operational and troubleshoot as needed 
  • Q1-2026: Report energy usage and earn revenue! 

Deadline to have monitoring installed: January 1, 2026 

Next Steps 

Anvil Monitor’s REM technology is poised to revolutionize forklift charging, offering businesses a seamless solution to monitor energy usage and participate in clean fuel programs. By implementing REMs, companies can unlock new revenue opportunities while contributing to a cleaner, more sustainable future. 

Stay tuned for more updates and ensure your company is ready for the upcoming changes in clean fuel regulations. Reach out to us at sales@anvilmonitor.com and visit their website at www.anvilmonitor.com for more information. 

Posted in SREC Markets |

Metering Deep Dive: Smart Technology

Posted March 25th, 2025 by SRECTrade.

How Technological Advancements Can Ease Compliance 

The California Low Carbon Fuel Standard (LCFS) program aims to reduce greenhouse gas emissions, and to continue benefiting from forklifts, businesses must now monitor their energy usage. Forklift fleets, a crucial part of many industries, can benefit significantly from smart charging solutions to meet these requirements. 

Advantages of Smart Batteries and Chargers 

Smart batteries and chargers offer a range of benefits, including energy monitoring, efficiency, and remote data reporting. With technological advancements, upgrading to these new batteries and chargers can provide accurate energy usage data, essential for compliance with LCFS. 

Efficiency and Data Reporting 

Modern smart chargers, such as ECOTec, are designed to be more efficient than traditional chargers. They offer options to push data to the cloud, allowing remote monitoring of energy consumption. This feature is particularly useful for businesses aiming to keep LCFS dollars flowing. 

Upgrading Your Equipment 

While upgrading to new equipment can be costly, it is a worthwhile investment for businesses planning to enhance their fleets. Smart chargers and lithium batteries provide a robust solution for both efficient charging and comprehensive energy usage reporting. By connecting these devices to the internet, businesses can easily pull and analyze energy data. 

Telematics for Forklifts 

If you’re already considering telematics for your fleet, then it offers a practical solution for tracking energy usage. Some technology allows for real-time monitoring and reporting, ensuring that businesses can comply with LCFS requirements without significant financial investment. 

Next Steps 

Smart charging solutions, whether through new batteries or chargers or telematics, provide an effective way to meet the California LCFS program’s energy monitoring requirements. By adopting these technologies, businesses can ensure they continue to benefit from the program while contributing to the reduction of greenhouse gas emissions. 

The timeline below will help you prepare for these upcoming changes: 

SREC Forklift Metering Customer Timeline:  

  • Q1 – 2025: Review metering options for your specific fleet  
  • Q2 – 2025: Install pilot project and/or make technology decision  
  • Q3 – 2025: Purchase and install metering solution   
  • Q4 – 2025: Ensure metering is reporting accurately and operating as expected 

Consider upgrading your fleet or integrating smart technology to keep your LCFS dollars flowing. Please reach out to your SRECTrade account executive with any questions.  

Posted in SREC Markets |

Important Update on LCFS Regulation Amendments

Posted March 4th, 2025 by SRECTrade.

Introduction: The California Air Resources Board (CARB) has recently issued a notice regarding the disapproval of amendments to the Low Carbon Fuel Standard (LCFS) Regulation by the Office of Administrative Law (OAL). This decision has significant implications for market participants and the public. In this blog post, we will provide an overview of the notice, its impact on the market, and the next steps for CARB.

Overview of the Notice: On February 18, 2025, the OAL disapproved the amendments to the LCFS Regulation that CARB had approved for adoption at a hearing on November 8, 2024[1]. The OAL identified inconsistencies with the clarity standard in Government Code section 11349(c) as the reason for the disapproval[1]. CARB plans to address these concerns and resubmit the amendments within 120 days[1].

Impact on the Market: The disapproval of the LCFS amendments has already had a noticeable impact on the market. According to recent reports, the market experienced a significant drop, with prices falling by $17. This decline reflects the uncertainty and potential challenges that market participants may face as CARB works to address the issues raised by the OAL.

Next Steps for CARB:CARB will continue to implement the current version of the LCFS Regulation, which has been in effect since July 2020, while addressing the concerns raised by the OAL[1]. CARB staff plan to rewrite and resubmit the amendments, incorporating any necessary grammatical and non-substantial changes[1]. Any substantive modifications will be released for public comment, ensuring transparency and stakeholder engagement throughout the process[1].

Conclusion: The recent notice from CARB highlights the ongoing efforts to refine and improve the LCFS Regulation. While the disapproval of the amendments presents challenges, it also provides an opportunity for CARB to address concerns and strengthen the regulation. We will continue to monitor the situation and provide updates as more information becomes available. It is unclear at this point if it will effect the implementation for the 2025 CI Changes.

Call to Action: If you have any questions or need assistance, please feel free to contact our team at SRECTrade.


References

[1] Information Regarding Low Carbon Fuel Standard Regulation Updates

Posted in SREC Markets |

New Regulations: California’s Upcoming Metering Requirements for Material Handling Equipment

Posted January 6th, 2025 by SRECTrade.

What You Need to Know About Compliance and Implementation

California will require metering for all material handling equipment starting on January 1st, 2026. While the California Air Resources Board (CARB) has yet to publish the formal rules surrounding metering for material handling, there are traditionally multiple options for achieving compliance. Here, we’ll explore these options and their respective benefits and drawbacks, helping you prepare for the transition.

Anvil Remote Energy Monitors 

Simple device that is installed at on the DC side of your forklift charger that measures the current with a current sensor and the positive + negative voltage.

Benefits:

  • Most cost-effective solution
  • Easy to install
  • Direct connection to SRECTrade

Negatives:

  • Only provides kWh used

AC Meter at the Electrical Panel

Meter such as an EKM or eGauge installed on the AC electrical panel at your facility. This is typically a 3-Phase meter with current transformers attached each phase of your circuit breaker on the electrical panel.  

Benefits: 

  • Cheaper if subpanel metering is available for many forklifts 

Negatives: 

  • Expensive to deploy at the circuit level 
  • Requires an electrician 
  • Most complicated option 

Telemetry on Forklifts Paired with Battery Monitoring

Telemetry systems are installed on your forklift that provides key information on the forklifts usage such as operating hours, location, productivity, etc.  

Benefits: 

  • Provides additional fleet benefits such as usage statistics, tracking, and battery health monitoring 

Negatives: 

  • Expensive systems 
  • Forklift-specific and may require newer forklifts 

Smart Equipment (Chargers and Batteries) 

Smart equipment such as chargers and batteries can provide important details on energy consumption, battery health, and power/charging control. These come integrated into these systems 

Benefits: 

  • May be enabled on your existing units 
  • Options to provide additional benefits such as usage statistics, battery health, and power controls 

Negatives: 

  • May require additional expensive hardware 
  • Only possible on newer chargers and batteries 

As we await the detailed rules from CARB, it’s essential to begin evaluating these options now. Each method has its distinct advantages and potential challenges and understanding these will help you make an informed decision that aligns with your operational needs and budget constraints. Stay tuned for further updates and insights as we continue to navigate these new regulatory landscapes together. 

With a proactive approach, we can ensure smooth compliance and leverage the benefits that each metering solution offers to enhance our material handling efficiency and sustainability. 

Posted in Low Carbon Fuel Standard |

Maryland Brighter Tomorrow Act SB-783

Posted December 20th, 2024 by SRECTrade.

There has been an update to Maryland’s renewable energy landscape: 2024 Senate Bill 783 – The Brighter Tomorrow Act. This new legislation will have a direct impact on SREC processing in 2025.

Key Highlights:

SREC Multiplier:
Starting January 1, 2025, a SREC multiplier will be implemented, adding a potential return of up to 1.5 times the market rate for Certified SRECs.
To qualify for this multiplier and Certified SREC status, solar projects must be placed in service between July 1, 2024, and January 1, 2028.
The multiplier will allow facilities to earn up to 1.5 times the value of the SREC pricing. Please note that this is not a guaranteed payout, but rather the potential for an increased price. Maryland SREC prices will likely not be 1.5x the Alternative Compliance Payment (ACP), but could go above the ACP.

Capacity Limits:
The first 300 MW AC of solar systems 20 kW and less are eligible for the multiplier.
The first 270 MW AC of solar 20 kW to 5 MW are eligible for the multiplier.

SREC Lifespan:
All SRECs will now have a 5-year lifespan, an increase from the current 3-year lifespan.

Additional Application Fees:
The Maryland Public Service Commission (PSC) will begin to collect application fees for all facilities. This includes applications for systems that are not eligible for the multiplier as well. Below is the fee structure that will be required:
$50.00 for systems 20kW or less.
$200.00 for systems greater than 20kW.

In addition to the application fees, there will be changes to the Maryland application submission process. As more information becomes available, we will provide additional details to our clients and partners.


As always, you may contact our support team if you have any questions.

Posted in Maryland, SREC Markets, SREC Pricing |

CARB approves major updates to strengthen the LCFS Program

Posted November 12th, 2024 by SRECTrade.

On November 8th, the California Air Resources Board (CARB) approved the proposed updates to the Low Carbon Fuel Standard (LCFS) regulation. This approval is the culmination of a two-year rulemaking process which saw passionate input from a diverse range of stakeholders.  The updated regulation will set more ambitious carbon reduction standards and increase the stringency of credit qualifications, to ensure long-term integrity in the program.

We’ve provided a summary of the key updates to the regulation, focusing on electric fleets and EV networks. You can also find more detailed information on the rulemaking website.

Next Steps and Implementation Timeline

CARB is anticipated to complete their final rulemaking documents by early January and submit them to the State’s Office of Administrative Law. From there, the administrative office will review the entire rulemaking process and the amendments to ensure compliance with California law. If everything meets the necessary requirements, the updates to the regulation will go into effect on April 1, 2025. However, it’s important to note that some amendments, such as forklift metering and verification requirements, have specific delayed implementation dates to give businesses time to adapt to the new requirements (see below).

More Aggressive Carbon Intensity Standard

CARB has tightened the Carbon Intensity (CI) standard, making the carbon reduction goals more ambitious than previously required, with a large single-year drop in CI Standard in 2025.  This adjustment is CARB’s most significant lever to increase the value of Low Carbon Fuel Standard (LCFS) credits and encourage long-term participation in the program. This change is already leading to increased LCFS credit values in the market.

Additionally, the amendments introduce an Automatic Adjustment Mechanism starting in 2028. This new tool will set criteria that automatically trigger a tighter CI standard when credit supply volumes hit a certain threshold. This improvement allows the market to adapt much quicker than in the past, leading to more stable credit values in the long-term.

Updates for Electric Forklifts

Energy Economy Ratio (EER)

Once the regulation updates are implemented, forklifts will no longer be segregated by model year for reporting. However, all forklifts with a capacity of less than 12,000 lbs (the majority of the deployed electric forklift population) will see a 37% decrease in the Energy Economy Ratio (from 3.8 to 2.4). This means fewer credits will be generated per amount of electricity used.

Forklift Metering will be required in 2026

Starting in 2026, forklifts will no longer be allowed to estimate energy usage. Instead, fleets will need to measure the energy used to charge forklifts, bringing forklifts in line with all other categories of electric vehicles (EVs). SRECTrade has a cost-effective forklift metering solution for our partners, which are already being deployed in Oregon, Washington and Canada and will provide more information to our partners as this deadline approaches. 

New Opportunity to generate revenue for charging electric Transport Refrigeration Units (eTRUs)

The right to generate credits for charging eTRUs has changed so that the owner of the facility where the eTRU charger is located can claim the credits. Previously, the regulation gave the right to report credits to the owner of the eTRU. As with other electric vehicle reporting, it is necessary to measure the energy use at the eTRU charger in order to generate credits. For entities that participated under the previous regime, they can continue to generate credits if they own the facilities where their eTRUs are charged, or they can work with the facility owner to arrange a pass through of credit reporting rights.

Verification of Reporting

Historically, EV Charging data has been exempt from third party verification requirements under the LCFS program. However, starting with electricity used in 2026, LCFS credits from using electricity for fuel (including EV Charging, e-forklifts, eTRUs, etc.) will be subject to verification. Verification is completed after the reporting is submitted to the regulator; for example, for all 2026 reporting, verification work will be completed in early 2027. SRECTrade has experience in successfully navigating verification and auditing processes and will reach out to our partners with more details on what to expect with verification as the implementation date approaches. 

Feel free to reach out to the SRECTrade Clean Transportation Team (cleanfuels@srectrade.com) if you have any questions or need further clarification on any of these points!

Posted in Low Carbon Fuel Standard |

Looking Back at Washington Clean Fuel Standard’s First Year (Part 2)

Posted July 30th, 2024 by SRECTrade.

This is a two-part post. Click here for Part 1

Credit Prices Slump Amid Oversupply

The first Washington Clean Fuel Standard (CFS) credits were transacted around the $100 mark in August 2023. However, credit value has steadily declined since the program began. The latest market data made available by Ecology indicated a $40 average for credits transferred in June 2024, with only 4 recorded transfers. Credit pricing has continued to decline since, with trades in July reported as low as $20, similar to levels seen for the Oregon Clean Fuels Program.  

Source: Department of Ecology

Ecology To Make Changes to CFS Rules

Ecology continues to hold workshops to collect stakeholder feedback on potential changes to the program. Changes being proposed include:

  • Integrating sustainable aviation fuel (SAF) into the program
  • Requiring third-party verification for fuel pathway applications and fuel transaction reports
  • Expanding the zero-emission infrastructure capacity crediting program to align with changes proposed for the CA-LCFS
  • Adjusting book-and-claim accounting requirements for electricity and renewable natural gas

Notably, Ecology will not be modifying the carbon intensity targets in this rulemaking, despite the apparent oversupply of credits and declining credit prices. 

Initiative 2117

In November, Washington voters will consider Initiative 2117 which, if approved, would repeal the Climate Commitment Act and the state’s Cap and Invest program. While Initiative 2117 leaves the Clean Fuel Standard intact, the balance of credits and deficits may be impacted: “Repealing the Climate Commitment Act will likely have an impact on the flow of renewable diesel to the state of Washington as the [Cap and Invest] program increases the cost of diesel made from crude oil, the exact thing renewable diesel is replacing. Without this policy in place, renewable diesel will likely go elsewhere where this type of carbon policy pricing arbitrage exists such as California and Canada” says Will Faulkner, founder of CarbonAcumen.

Recent polling indicated that 48% of respondents would vote to repeal the Climate Commitment Act, with an additional 18% undecided.

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Posted in Low Carbon Fuel Standard |

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