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California low carbon fuel policies and natural gas fueling infrastructure: Synergies and challenges to expanding the use of RNG in transportation

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  • Scheitrum, Daniel
  • Myers Jaffe, Amy
  • Dominguez-Faus, Rosa
  • Parker, Nathan

Abstract

The emergence of natural gas as an abundant, inexpensive fuel in the U.S. raises the possibility that expanding natural gas infrastructure could enable a transition to other low carbon fuels. We assess how California's existing fuels policies interact with expanding natural gas infrastructure in the state to promote renewable natural gas resource development in the state. We employ a profit-maximizing mixed-integer linear programming optimization to solve for development of natural gas refueling infrastructure incorporating spatial and temporal considerations and estimate the associated expansion in natural gas fuel demand in California. We investigate whether renewable fuel and carbon pollution credit markets create sufficient incentive to promote shifting to renewable natural gas fuel to replace vehicular natural gas demand. An assessment of California's current policies is undertaken and alternative policy options to enhance market efficiency are discussed. These policies include improvements to state regulations of waste disposal, incentives for fleets to shift to sustainable fuel trucks, and mechanisms to lower connection costs for in-state renewable natural gas into the California natural gas pipeline grid.

Suggested Citation

  • Scheitrum, Daniel & Myers Jaffe, Amy & Dominguez-Faus, Rosa & Parker, Nathan, 2017. "California low carbon fuel policies and natural gas fueling infrastructure: Synergies and challenges to expanding the use of RNG in transportation," Energy Policy, Elsevier, vol. 110(C), pages 355-364.
    • Handle: RePEc:eee:enepol:v:110:y:2017:i:c:p:355-364
    DOI: 10.1016/j.enpol.2017.08.034
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    References listed on IDEAS

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    1. Kuby, Michael & Capar, Ismail & Kim, Jong-Geun, 2017. "Efficient and equitable transnational infrastructure planning for natural gas trucking in the European Union," European Journal of Operational Research, Elsevier, vol. 257(3), pages 979-991.
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    4. Hwang, Seong Wook & Kweon, Sang Jin & Ventura, Jose A., 2017. "Locating alternative-fuel refueling stations on a multi-class vehicle transportation network," European Journal of Operational Research, Elsevier, vol. 261(3), pages 941-957.
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    6. Michael Kuby & Seow Lim, 2007. "Location of Alternative-Fuel Stations Using the Flow-Refueling Location Model and Dispersion of Candidate Sites on Arcs," Networks and Spatial Economics, Springer, vol. 7(2), pages 129-152, June.
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    8. Yueyue Fan & Allen Lee & Nathan Parker & Daniel Scheitrum & Rosa Dominguez-Faus & Amy Myers Jaffe & Kenneth Medlock III, 2017. "Geospatial, Temporal and Economic Analysis of Alternative Fuel Infrastructure: The case of freight and U.S. natural gas markets," The Energy Journal, International Association for Energy Economics, vol. 0(Number 6).
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    Cited by:

    1. Daniel Scheitrum, 2020. "Impact of Intensity Standards on Alternative Fuel Adoption: Renewable Natural Gas and California’s Low Carbon Fuel Standard," The Energy Journal, , vol. 41(2), pages 191-217, March.
    2. Von Wald, Gregory A. & Stanion, Austin J. & Rajagopal, Deepak & Brandt, Adam R., 2019. "Biomethane addition to California transmission pipelines: Regional simulation of the impact of regulations," Applied Energy, Elsevier, vol. 250(C), pages 292-301.
    3. Felipe Solferini de Carvalho & Luiz Carlos Bevilaqua dos Santos Reis & Pedro Teixeira Lacava & Fernando Henrique Mayworm de Araújo & João Andrade de Carvalho Jr., 2023. "Substitution of Natural Gas by Biomethane: Operational Aspects in Industrial Equipment," Energies, MDPI, vol. 16(2), pages 1-19, January.
    4. Goulding, D. & Fitzpatrick, D. & O'Connor, R. & Browne, J.D. & Power, N.M., 2019. "Introducing gaseous transport fuel to Ireland: A strategic infrastructure framework," Renewable Energy, Elsevier, vol. 136(C), pages 548-557.
    5. Trey Malone & K. Aleks Schaefer & Felicia Wu, 2021. "The Razor's Edge of “Essential” Labor in Food and Agriculture," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(1), pages 368-381, March.
    6. Scheitrum, Dan & Parker, Nathan C., 2018. "Analysis of United States Supplies of RNG and their Impact on the California Low Carbon Fuel Standard through 2030," 2018 Annual Meeting, August 5-7, Washington, D.C. 274453, Agricultural and Applied Economics Association.

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