SRECTrade has changed our policy regarding the distribution of IL ABP Change of Ownership paperwork. Effective immediately, SRECTrade will be the sole distributor of all IL ABP Change of Ownership paperwork (excluding the Voided Check, Settlement Statements, Divorce Decrees, Death Certificates, and/or Deeds) to clients via RightSignature.
As a result, Designees and other third parties are no longer permitted to distribute IL ABP Change of Ownership paperwork to clients. If you are notified of a home sale, please notify us so we can provide the paperwork to the respective parties once we have all necessary contact information from the buyer.
By implementing this change, we aim to reduce the confusion around the IL ABP Change of Ownership process and ensure clients have the correct paperwork. As you may be aware, GATS periodically releases new IL ABP Change of Ownership forms, and it is crucial that clients receive the most up-to-date paperwork.
We appreciate your cooperation in adhering to this new policy. If you have any questions or concerns, please do not hesitate to contact us.
On March 10, 2023 B24-0950, which was codified as Law Number L24-0314, went into effect. The Solar Renewable Energy Portfolio Standard (RPS) target increased from 10% to 15% by 2041. The Alternative Compliance Payment (ACP) schedule was also adjusted.
The DC SREC market has experienced unstable conditions due to oversupply and lack of liquidity over the last two years. The RPS increase and the more gradual step-down of the ACP will address these issues and lead to a more stable market. These changes will provide more price stability within the SREC market and increase investor confidence. Current market prices and requirements can be found on our website.
SRECTrade was proud to work with solar companies and other stakeholders in support of this bill. Monitoring market conditions and supporting legislation that benefits our clients and partners is one of our highest priorities.
The California Air Resources Board (CARB) published quarterly program data for the Low Carbon Fuel Standard (LCFS) on January 31, 2023. In this piece, we will provide some analysis of the new data and highlight interesting trends.
But First: What is the Credit Bank and Why is it Growing?
Each quarter, CARB issues credits and deficits based on the carbon intensity (CI) and volume of fuel reporting under the program. The cumulative credit bank, a measure of net credit generation over the lifetime of the program, is often used as a proxy for credit supply and demand. This credit bank grew for the first few years of the program, reaching about 10M MT by the end of 2016. From 2017 through the first half of 2021, the credit bank remained largely stable as quarterly net gains were balanced by quarterly net reductions. However, the credit bank has increased significantly since then, reaching about 13.5M MT according to the latest data.
The immediate reasoning behind the growing bank is simple:
An increase in the production and use of low carbon fuel, which creates credits
A simultaneous decrease in the use of gasoline and diesel, which creates deficits
The forces behind these trends are much more complex, but the LCFS is itself one of those forces. For example, the production of renewable diesel (RD) is incentivized by LCFS and now makes up almost 40% of the diesel fuel reported in the program. RD displaces the use of conventional diesel which would otherwise create deficits. As more RD is produced, more credits and fewer deficits will be generated each quarter. And RD happens to be the single largest source of credits in the program, making up about ⅓ of all credits last quarter.
Of course, RD is not the only fuel generating credits and contributing to the growing credit bank…
Q3 2022 Credit Trends
The largest quarter-over-quarter increases came from renewable natural gas (10%), ethanol (6%), and electricity (6%).
RD declined slightly (-3%) for the first time since 2020
The primary driver of credit growth from renewable natural gas (RNG), the third largest credit source in the program, has been declining average CI. While RNG volume is only 7% up from the same quarter last year, the average CI is now -111 gCO2e/MJ compared to -60 last year. The lower the CI of a fuel, the greater number of credits it will generate.
Spotlight on EV Credits
Credits from electric vehicles continue to be a major source of growth in LCFS, reaching a record share of credits generated Q3 2022 (24%). Consistent with previous quarters, almost 90% of credits from EV charging came from just three categories: residential (49%), eForklifts (23%), and non-residential light/medium-duty (15%).
CARB is expected to release Q4 2022 data by April 28, 2023.
The Pasha Group Partners with SRECTrade to Decarbonize through California’s LCFS Program
Pasha Hawaii’s LNG-powered George III on its maiden voyage to Honolulu in August 2023
SAN RAFAEL and SAN FRANCISCO, CA — Today The Pasha Group announced its partnership with SRECTrade to transition to low- and zero-emission equipment across its West Coast operations. The logistics and transportation services leader is partnering with SRECTrade to generate and monetize carbon credits from electric vehicles and equipment under the California Low Carbon Fuel Standard (LCFS).
The Pasha Group has led the transition to renewable energy in the marine ports sector through many projects and initiatives over the last five years, through initiatives to retrofit forklifts, drayage trucks, terminal tractors, and on-road EV trucks in California, the installation of dozens of charging stations, and a microgrid. The company has also conducted Terminal Equipment demonstration and prototyping projects in the Port of Los Angeles and serves on goods movement Technical Advisory Committees for the California Energy Commission. The Pasha Group and its partners have accomplished milestones in the marine port transition to clean energy such as approving and performing the first hydrogen refueling for a hydrogen powered vessel.
The Pasha Group continues to pave the way in electrifying ports with the support from incentives like LCFS, a market-based compliance program that provides ongoing funding to entities operating electric and hydrogen equipment. SRECTrade’s expert advisory and technology-enabled services make participation in complex compliance programs simple, rewarding, and transparent.
“SRECTrade is a valuable partner, providing our team with up-to-date information and opportunities to incorporate sustainability practices into our operations,” says George Pasha, IV, President and CEO. “Our partnership with SRECTrade contributes to our mission of moving forward as quickly as possible with our ESG goals.”
For companies still looking to benefit from clean fuels programs, The Pasha Group advises getting started now and working with a trusted partner like SRECTrade. To learn how much you can earn from clean fuel programs, contact SRECTrade at cleanfuels@srectrade.com.
About The Pasha Group
Established in 1947, The Pasha Group is a family-owned, third-generation diversified global logistics and transportation company that provides ocean transportation for containers and rolling stock between the U.S. West Coast and Hawaii; port processing services for finished and privately owned vehicles; stevedoring for vehicles, breakbulk and container cargos; auto hauling services with its truck fleet throughout the contiguous U.S.; domestic and international relocation services; and international logistics management for general commodity and project cargoes.
About SRECTrade
As the leader in environmental commodity management, SRECTrade provides full-service management and transaction solutions across a variety of renewable energy and clean fuel programs. The company is the largest third-party manager of EV charging assets under the California Low Carbon Fuel Standard. SRECTrade’s parent company, Xpansiv, provides market infrastructure to rapidly scale the world’s energy transition. Xpansiv operates CBL, the largest spot exchange for environmental commodities, including carbon credits and renewable energy certificates.
The Local Solar Expansion Amendment Act of 2022 was introduced on July 14, 2022. This bill will increase the Solar Renewable Portfolio Standard (RPS) target from 10.00% to 15.00% by 2041. It will also adjust the current Alternative Compliance Payment (ACP) schedule. Below is the proposed schedule:
Current RPS Requirement
Proposed RPS Requirement
Current ACP
Proposed ACP
2023
2.85%
3.00%
$500
$500
2024
3.15%
3.65%
$400
$480
2025
3.45%
4.30%
$400
$460
2026
3.75%
5.00%
$400
$440
2027
4.10%
5.65%
$400
$420
2028
4.50%
6.30%
$400
$400
2029
4.75%
7.00%
$300
$380
2030
5.00%
7.65%
$300
$360
2031
5.25%
8.30%
$300
$340
2032
5.50%
9.00%
$300
$320
2033
6.00%
9.65%
$300
$300
2034
6.50%
10.30%
$300
$300
2035
7.00%
11.00%
$300
$300
2036
7.50%
11.65%
$300
$300
2037
8.00%
12.30%
$300
$300
2038
8.50%
13.00%
$300
$300
2039
9.00%
13.65%
$300
$300
2040
9.50%
14.30%
$300
$300
2041
10.00%
15.00%
$300
$300
This bill passed two council votes in December and was approved during the mayoral review period. The Congressional review period is the final step and is expected to complete in the next 2 months.
The DC SREC market has experienced oversupplied market conditions, which have resulted in a lack of liquidity and lower SREC prices. Increasing the RPS will help with this oversupply issue. Additionally, a more gradual decrease to the ACP schedule will support higher SREC prices. The passage of this bill would put DC in the position of having the most highly valued SREC compliance market in the United States.
On August 10, 2022, SRECTrade announced that it would be retiring as an Approved Vendor in the ABP. As previously stated, SRECTrade will continue to provide services for applications that were successfully submitted to SRECTrade’s portal before the June 15, 2022 closure. This includes applications that were originally submitted to SRECTrade as non-energized.
On Thursday, January 26, 2023, at 10 AM CT, SRECTrade will enable Part II of its application for existing customers to allow the submission of Part II/energization information and documentation.
The SRECTrade ABP application has been updated to reflect the changes made to the Part II ABP application by the Program Administrator. These changes include the following:
Requirement of the “Construction activities completion date” – date of which construction for the project was completed.
“Proof of Construction Completion Date” document upload – required for non-residential projects with a “Construction activities completion date” on or before September 15, 2021, but a “Utility interconnection date” after September 15, 2021. The Prevailing Wage Act defines ‘construction’ to include maintenance, repair, assembly, or disassembly work performed on equipment.
“Proof of Revenue Grade Metering” document upload – required if “Revenue Grade” is selected for “Meter accuracy”. All projects > 10 kW AC are required to utilize a Revenue Grade Meter.
Addition of “Employee Declines to Identify” fields for Hours worked by Race and Hours worked by Ethnicity in the Demographic Data portion.
Application review times will be influenced by the number of Part II applications submitted. SRECTrade anticipates a large influx of applications and we appreciate your patience.
SRECTrade Pays Fleets under Canada’s Clean Fuel Regulations for Owning and Operating Electric Equipment.
SAN FRANCISCO, CA — SRECTrade, the single partner to manage and transact environmental commodities, announced that it has expanded its management and transaction services to Canada. With these services, SRECTrade and parent company Xpansiv, the premier global market-infrastructure platform for environmental commodities, generate and monetize clean fuel credits to fund budgets to help cover the cost of deploying and operating zero emission vehicles.
In June 2022, Canada launched the Clean Fuel Regulations (CFR), requiring a reduction in the carbon intensity (CI) of transportation fuels by 15% by 2030. This fuel agnostic program provides valuable incentives for transitioning to and operating clean fleets, including EV charging stations, electric and hydrogen buses, trucks and other equipment. The CFR shares many similarities with clean fuel programs across the United States including the California Low Carbon Fuel Standard (LCFS) and Oregon Clean Fuel Program (CFP). To learn more about participating in the Canada CFR, register for SRECTrade’s webinar on January 31 at 10 am PST.
SRECTrade is already serving Canadian companies and multinationals broadening their participation in clean fuel programs. As the largest agent manager of electric vehicle charging and renewable energy assets across North America, the firm’s expansion into Canada solidifies SRECTrade’s continued leadership in the space, providing clients equitable access to clean fuel and renewable energy programs wherever they exist.
“Organizations that act quickly to meet registration deadlines will be among the first to start generating credits this year,” says Steven Eisenberg, Xpansiv’s President of Managed Solutions. Under Canada CFR, there is no retroactive credit generation so the best time to get started is now. To learn more, contact cleanfuels@srectrade.com.
About SRECTrade
SRECTrade is the single partner to source, manage, and transact environmental commodities globally. Founded in 2008, SRECTrade is the largest agent manager of electric (EV) and renewable energy assets across the U.S. With a 99% annual client retention rate, the firm has generated almost a billion dollars in value across more than 64,000 clients while managing over 185,000 clean energy assets on its technology platform. SRECTrade partners with commercial and public entities across a variety of market segments including manufacturing, freight and logistics, warehouse and distribution, maritime, EV charging networks, transit fleets, municipalities, universities, property management companies and others. SRECTrade is a wholly owned subsidiary of Xpansiv, the premier market-based infrastructure platform for environmental commodities.
For information concerning this release, please contact:
Check out our November 2022 Clean Fuels Market Update for the latest news on clean fuel programs across North America. Highlights from this edition include:
SRECTrade begins registrations for Canada’s new Clean Fuel Regulations (CFR)
CARB holds workshops to discuss significant changes to the LCFS program
Oregon adopts stricter CFP targets
Contact SRECTrade at cleanfuels@srectrade.com to start getting paid for the clean equipment you already own and operate.
Check out our August 2022 Clean Fuels Market Update for recent updates on clean fuel programs, pricing trends, regulatory news, grant programs, and more. Highlights from this edition include:
Canada launched a new clean fuel program! The early registration deadline is August 20.
The CA LCFS market continues to be very active, with over 3.5 million credits transferred in July alone, the third-busiest month of the program.
CARB’s workshop on July 7 provided several key insights into the future of LCFS.
Contact SRECTrade at cleanfuels@srectrade.com to start getting paid for the clean equipment you already own and operate.
After careful consideration SRECTrade has made the decision to no longer provide Approved Vendor services for new Adjustable Block Program (ABP) eligible projects. This decision was made due to the increasing complexity and cost of servicing new assets under the ABP.
SRECTrade will continue to provide services for applications that were successfully submitted to SRECTrade’s portal before the June 15, 2022 closure. This includes applications that were originally submitted to SRECTrade as non-energized. Understanding that these non-energized applications require the energization information and documentation, SRECTrade will enable Part II of its application for existing customers to allow the submission of these materials. SRECTrade will announce this reopening date once all final changes to the application process have been announced by the IPA and new program administrator.
SRECTrade remains committed to servicing all existing ABP customers throughout the duration of their 15 year REC contract. Most importantly SRECTrade will continue to make payments to projects scheduled to receive first time or quarterly payments and to work with customers to ensure their systems are meeting their contracted REC obligations.
SRECTrade would like to thank you for your patience and understanding during this transition. SRECTrade looks forward to serving its Designees and existing clients during the remainder of their participation in the ABP.
