The new proposed rules for AB 32 and carbon credits are being finalized for 2019 and there is a big change. Currently, the carbon credits and trading apply to raw material and energy producers with high Greenhouse Gas Emissions. The new rules allow for companies who are putting in ZEV (Zero Emissions Vehicle) infrastructure to earn carbon credits they can then sell on the carbon market. This will hopefully incentivize private investment in ZEV infrastructure.
The carbon credits are earned when either a hydrogen fuel cell filling station or a level 3 charging station is installed. Level 3 Chargers are also known as DC Fast chargers, can charge an EV at ten times the speed of Level 2 chargers, but they can cost up to $100,000 per charger. Hydrogen Fuel Stations face similar problems with stations costing in over $2 Million. With more consumers demanding faster charging and more Hydrogen stations, the hope is the carbon credits will incentivize investment.
While those cost may seem high, they are still competitive to the cost to build a Gas Station. The stumbling block has been a chicken and egg problem. For mass adoption consumers demand more fueling and changing station and for mass investment in those stations, investors demand more ZEV adoption. With increasing numbers of ZEVs on the market, and exponential EV growth, stimulating investment in infrastructure seems like a smart choice.
To learn more about Charging and the future of fueling EVs come to our next meet up on the 30th. We will have presenters form CARB (California Air Resources Board), SMUD and local success story Clipper Creek talking about what is happening in Charging.
ABOUT THE AUTHOR
Thomas is the Executive Director of CleanStart. Thomas has a strong background in supporting small businesses, leadership, financial management and is proficient in working with nonprofits. He has a BS in Finance and a BA in Economics from California State University, Chico. Thomas has a passion for sustainability and a commitment to supporting non-profits in the region.