California Code of Regulations
Title 17 - Public Health
Division 3 - Air Resources
Chapter 1 - Air Resources Board
Subchapter 10 - Climate Change
Article 4 - Regulations to Achieve Greenhouse Gas Emission Reductions
Subarticle 7 - Low Carbon Fuel Standard
Section 95486.2 - Generating and Calculating Credits for Zev Fueling Infrastructure Pathways

Universal Citation: 17 CA Code of Regs 95486.2

Current through Register 2024 Notice Reg. No. 38, September 20, 2024

(a) Hydrogen Refueling Infrastructure (HRI) Pathways.

(1) HRI Pathway Eligibility. A hydrogen station owner may submit an application to certify an HRI pathway subject to the following eligibility conditions:

(A) The proposed HRI must be located in California and open to the public.

(B) The HRI pathway application must be received on or before December 31, 2025.

1. Any station receiving or spending funds pursuant to any settlement related to any California or Federal regulation enforcement; or

2. Any station built as a required mitigation measure pursuant to the California Environmental Quality Act.

(2) HRI Application Requirements. For each hydrogen refueling station, the station owner must submit an application in the LRT-CBTS containing the following information:

(A) Name and address of the owner of the proposed station.

(B) Contact person for the owner entity.

1. Name

2. Title or position

3. Phone number

4. Mobile phone number

5. Email address

(D) Expected daily permitted hours of operation for the station. If the daily permitted hours are less than 24 hours, the applicant must provide documentation from a permitting authority demonstrating that daily permitted hours for the station are limited.

(E) The station nameplate refueling capacity for the permitted hours of operation calculated using the HySCapE 1.0 model or an equivalent model or capacity estimation methodology approved by the Executive Officer. The applicant must submit a completed model with the application.

(F) The HRI refueling capacity for the station is the nameplate refueling capacity determined in subsection (E) above or 1,200 kg/day, whichever is less.

(G) The number of dispensing units at the station.

(H) Expected source(s) of hydrogen, CI value(s), and method(s) used for delivery.

(I) Expected date that the station will be operational.

(J) Justification for the station location and how the proposed location contributes in developing a hydrogen refueling station network to support ZEV adoption. The justification must include:

1. The role(s) the station location will play in the developing hydrogen station network;

2. The means by which the station contributes to robust growth of the statewide hydrogen fueling network;

3. Demonstration of potential for consistent and calculable hydrogen demand;

4. Demonstration that the proposed station capacity is an appropriate capacity based on documented, verifiable, and reproducible projections of daily hydrogen demand at the proposed location;

5. Calculation of the projected trajectory of annualized average station utilization (calculated as annual throughput divided by annual station capacity) at the proposed location; and

6. Demonstration that the proposed station location has been discussed with local authorities having jurisdiction and no early roadblocks have been identified.

(K) A signed attestation letter from the applicant attesting to the veracity of the information in the application packet. The attestation letter must be submitted as an electronic copy, be on company letterhead, be signed by an officer of the applicant with authority to attest to the veracity of the information in the application and to sign on behalf of the applicant, be from the applicant and not from an entity representing the applicant (such as a consultant or legal counsel), and include the following attestation:

I, an authorized representative of ____________________ (applicant entity), attest to the veracity of the information submitted as part of the Hydrogen Refueling Infrastructure (HRI) application, attest that the proposed FSE is not receiving funds pursuant to any enforcement settlement related to any California or Federal regulation, and declare that the information submitted accurately represents the anticipated and intended design and operation of the hydrogen refueling station. Further, I understand and agree to each of the statements in the attached application. I am a duly authorized officer with authority to attest to the veracity of the information in the application and to sign on behalf of the respective applicant.

I understand that the following information in the HRI application will be made available on the LCFS web site: Name of the Applicant Entity, Station Name, Station Address, Number of Dispensing Units, HRI Refueling Capacity, and Effective Date Range for HRI Crediting.

By submitting this application, ____________________ (applicant entity) accepts responsibility for the information herein provided to CARB. I certify under penalty of perjury under the laws of the State of California that I have personally examined, and am familiar with, the statements and information submitted in this document. I certify that the statements and information submitted to CARB are true, accurate, and complete.

___________________________
Signature	Print Name & Title	Date

(L) CBI must be designated pursuant to the requirements described in section 95488.8(c).

(M) An application and supporting documents must be submitted electronically via the LRT-CBTS unless the Executive Officer has approved or requested in writing another format.

(3) Application Approval Process.

(A) The HRI application must be approved by the Executive Officer before the station owner may generate hydrogen refueling infrastructure credits. If estimated potential HRI credits from all approved stations exceed 2.5 percent of deficits in the prior quarter, the Executive Officer will not approve additional HRI pathways and will not accept additional applications until estimated potential HRI credits are less than 2.5 percent of deficits. HRI applications will be evaluated for approval on a first come, first served basis.

Estimated potential HRI credits will be calculated using the following equation:

Click here to view image

(B) After receipt of an application designated by the applicant as ready for formal evaluation, the Executive Officer will advise the applicant in writing either that:

1. The application is complete, or

2. The application is incomplete, in which case the Executive Officer will identify which requirements of section 95486.2(a)(2) have not been met.

a. The applicant may submit additional information to correct deficiencies identified by the Executive Officer.

b. If the applicant is unable to achieve a complete application within 180 days of the Executive Officer's receipt of the original application, the application will be denied on that basis, and the applicant will be informed in writing.

3. At any point during the application evaluation process, the Executive Officer may request in writing additional information or clarification from the applicant.

(C) The Executive Officer will not approve an application if the Executive Officer determines, based upon the information submitted in the application and any other available information, that the application does not meet requirements in subsections 95486.2(a)(1) and (a)(2). The Executive Officer may reject an application if satisfactory justification is not provided for station location pursuant to subsection 95486.2(a)(2)(J). If the Executive Officer does not approve the application, the applicant will be notified in writing and the basis for the disapproval shall be identified.

(D) If the Executive Officer determines that the applicant and application have met all requirements for approval pursuant to subsections 95486.2(a)(1) and (a)(2), the Executive Officer will approve the application and provide an approval summary on the LCFS website including the station location and assigned identifier, number of dispensing units, HRI refueling capacity, and effective date range for HRI pathway crediting.

(E) Crediting Period. HRI crediting is limited to 15 years starting with the quarter following Executive Officer approval of the application.

(4) Requirements to Generate HRI Credits. To generate credits using HRI pathways the station must meet the following conditions. The station owner must maintain, and submit to CARB upon request, records demonstrating adherence to these conditions.

(A) The station owner must update the HRI refueling capacity if different from the design HRI refueling capacity provided in the application. Any station design or operational information that deviates from the original application must be declared to the Executive Officer, and a new attestation must be submitted pursuant to 95486.2(a)(2).

(B) The station must be open to the public, meaning that no obstructions or obstacles exist to preclude vehicle operators from entering the station premises, no access cards or personal identification (PIN) codes are required for the station to dispense fuel, and no formal or registered station training shall be required for individuals to use the hydrogen refueling station.

(D) The station is connected to the Station Operational Status System (SOSS), is listed open for retail, and:

1. The station passed final inspection by the appropriate authority having jurisdiction and has a permit to operate.

2. The station owner has fully commissioned the station, and has declared it fit to service retail FCV drivers. This includes the station owner's declaration that the station meets an appropriate SAE fueling protocol.

3. At least three OEMs have confirmed that the station meets protocol expectations, and their customers can fuel at the station.

4. All dispensers installed in the hydrogen refueling station have undergone type evaluation according to the California Type Evaluation Program (CTEP) administered by the California Department of Food and Agriculture/Division of Measurement Standards (CDFA/DMS) and have either a Temporary Use Permit or a type approval Certificate of Approval issued by CDFA/DMS.

(E) The FSE registration must be completed pursuant to section 95483.2(b)(8) and the quantity of dispensed hydrogen must be reported as required in section 95491.

(F) Dispensed hydrogen meets the following CI and renewable content requirements on a company-wide, weighted average basis. The Executive Officer will consider all the stations registered by an entity with a unique FEIN in the LRT-CBTS for calculating the company-wide weighted average CI and renewable content.

1. CI of 150 gCO2e/MJ or less, and

2. Renewable content of 40 percent or greater.

(G) The station must be operational within 24 months of application approval. If the applicant fails to demonstrate the operability within 24 months of approval then the application will be canceled. The applicant can reapply for the same station eligible only for 10 years of crediting.

(5) Calculation of HRI Credits. HRI credits will be calculated using the following equation:

Click here to view image

(6) Reporting and Recordkeeping Requirements. The following must be reported to the Executive Officer each quarter as set forth in section 95491 before credits will be issued to the LRT account associated with an approved HRI pathway.

(A) Station availability. This is the percentage of hours the station is available for fueling during the quarter relative to the permitted hours of operation for the station, as reported to the SOSS. Any period of time that SOSS reports that a portion of the station capacity is not available will count as a pro-rated amount of station availability, proportional to the percentage of the station capacity that remains available for fueling for this period of time.

(B) Company-wide, weighted average renewable content (percent) for dispensed hydrogen.

(C) Cost and revenue data. Provide a quarterly account of the following costs borne and revenues received by the station owner up through the most recent reporting quarter per station.

1. Total capital expenditures ($)

2. Total delivered cost ($) of hydrogen and average delivered cost ($/kg) for hydrogen

3. Total maintenance costs ($)

4. Total land rental cost ($)

5. Total grant revenue or other external funding received towards capital expenditures ($)

6. Total grant revenue or other external funding received towards operational and maintenance expenditures ($)

7. Total revenue ($) received from sale of hydrogen and average retail price ($/kg) for hydrogen sold

8. Other operational expenditures ($)

(7) Applications for Expanded HRI Refueling Capacity. Station owners who expand the capacity of a station and that is already generating HRI credits under the LCFS must submit an application to the Executive Officer to generate additional credits based on the updated capacity. Applications for expanded station capacity must be received before December 31, 2025 and do not extend the effective date range for the HRI crediting specified upon initial project approval in 95486.2(a)(3)(D). The application must include the following elements.

(A) In order to be eligible to generate HRI credits for expanded capacity, the station owner must demonstrate that station throughput in a reporting quarter is greater than or equal to 50 percent of the original approved HRI refueling capacity.

(B) Updated nameplate refueling capacity and updated HRI refueling capacity.

(C) If the sources of hydrogen and delivery methods stated in the original HRI application will change as a result of the added capacity, the station owner must disclose the new hydrogen sources and delivery methods.

(D) The station owner must maintain records demonstrating that any new equipment added as a result of the expansion in capacity, including storage and fueling dispensers, meet the requirements listed in 95486.2(a).

(b) DC Fast Charging Infrastructure (FCI) Pathways.

(1) FCI Pathway Eligibility. An FSE owner may submit an application to receive an FCI pathway subject to the following eligibility conditions:

(A) The proposed FSE must be located in California and open to the public for charging.

(B) Upon an individual applicant's estimated potential FCI credits, calculated pursuant to section 95486.2(b)(3)(B), exceeding 0.5 percent of the deficits in the prior quarter, each additional site applied for by the applicant must meet the following requirements:

1. Charging equipment at the site must support at least two of the following three fast charging connectors: CHAdeMO, SAE CCS, and/or Tesla;

2. The site must have at least one FSE with a CHAdeMO connector protocol and at least one FSE with an SAE CCS connector protocol; and

3. No more than three-quarters of all FSE subject to this provision at the site can support only a single fast charging connector protocol.

(D) The following FSE are not eligible for FCI crediting:

1. Any FSE that is permitted to operate prior to January 1, 2019; or

2. Any FSE receiving or spending funds pursuant to any settlement related to any California or Federal regulation enforcement; or

3. Any FSE built as a required mitigation measure pursuant to the California Environmental Quality Act.

(E) Each FSE must have a minimum nameplate power rating of 50 kW.

(F) Each FSE must be networked and capable of monitoring and reporting its availability for charging.

(2) FCI Application Requirements. The applicant must submit an application in the LRT-CBTS containing the following information:

(A) Name and address of the owner of the proposed FSE.

(B) Contact person for the owner entity.

1. Name

2. Title or position

3. Phone number

4. Mobile phone number

5. Email address

(D) The number of FSEs.

(E) The nameplate power rating (kW), connector type(s), and model for each FSE.

1. The total nameplate power rating for all FSE at a single site claiming FCI credit under this provision cannot exceed 2,500 kW.

2. Notwithstanding 95486.2(b)(2)(E)1 above, upon request the Executive Officer may approve an application with total nameplate power rating for all FSE at a single site up to 6,000 kW. The total number of FSE at sites with total nameplate power rating greater than 2,500 kW cannot exceed 10 percent of total FSE approved under FCI pathways. The applicant must provide justification for requesting a total power rating greater than 2,500 kW at the given site.

(F) The effective simultaneous power rating (kW) for each FSE calculated using the equation below. The effective simultaneous power rating must be at least 50 percent of the nameplate power rating for each FSE.

Click here to view image

(G) The FCI charging capacity for each FSE calculated using the following equation:

Click here to view image

(H) Expected date that the FSE will be operational.

(I) Expected daily permitted hours of operation for the site. If the daily permitted hours are less than 24 hours, the applicant must provide documentation from a permitting authority demonstrating that daily permitted hours for the FSE are limited.

(J) A signed attestation letter from the applicant attesting to the veracity of the information in the application packet. The attestation letter must be submitted as an electronic copy, be on company letterhead, be signed by an officer of the applicant with authority to attest to the veracity of the information in the application and to sign on behalf of the applicant, be from the applicant and not from an entity representing the applicant (such as a consultant or legal counsel), and include the following attestation:

I, an authorized representative of __________ (proposed FSE owner entity), attest to the veracity of the information submitted as part of the DC Fast Charging Infrastructure (FCI) application, attest that the proposed FSE is not receiving funds pursuant to any enforcement settlement related to any California or Federal regulation, and declare that the information submitted accurately represents the anticipated and intended design and operation of the charging infrastructure. Further, I understand and agree to each of the statements in the attached application. I am a duly authorized officer with authority to attest to the veracity of the information in the application and to sign on behalf of the respective applicant.

I understand that the following information in the FCI application will be made available on the LCFS web site: Name of the Applicant Entity, Site Name, Site Address, Number and Type of Charging Units, Nameplate and Effective Simultaneous Power Rating for Each Unit, and Effective Date Range for FCI Crediting

By submitting this application, __________ (applicant entity) accepts responsibility for the information herein provided to CARB. I certify under penalty of perjury under the laws of the State of California that I have personally examined, and am familiar with, the statements and information submitted in this document. I certify that the statements and information submitted to CARB are true, accurate, and complete.

(K) CBI must be designated pursuant to the requirements described in section 95488.8(c).

(L) An application and supporting documents must be submitted electronically via the LRT-CBTS unless the Executive Officer has approved or requested in writing another format.

(3) Application Approval Process.

(A) The FCI application must be approved by the Executive Officer before the applicant may generate FCI credits. If estimated potential FCI credits from all approved FSEs exceed 2.5 percent of deficits in the prior quarter, the Executive Officer will not approve additional FCI pathways and will not accept additional applications until FCI credits are less than 2.5 percent of deficits. FCI applications will be evaluated for approval on a first come, first served basis.

Estimated potential FCI credits will be calculated using the following equation:

Click here to view image

(B) The estimated potential FCI credits for an individual applicant will be calculated using the same equation as in subsection (A) above, where:

Click here to view image

(C) After receipt of an application designated by the applicant as ready for formal evaluation, the Executive Officer shall advise the applicant in writing either that:

1. The application is complete, or

2. The application is incomplete, in which case the Executive Officer will identify which requirements of section 95486.2(b)(2) have not been met.

a. The applicant may submit additional information to correct deficiencies identified by the Executive Officer.

3. At any point during the application evaluation process, the Executive Officer may request in writing additional information or clarification from the applicant.

(D) The Executive Officer shall not approve an application if the Executive Officer determines, based upon the information submitted in the application and any other available information, that the application does not meet requirements in subsections 95486.2(b)(1) and (b)(2). If the Executive Officer does not approve the application, the applicant will be notified in writing and the basis for the disapproval shall be identified.

(E) If the Executive Officer determines the application has met all requirements for approval pursuant to subsections 95486.2(b)(1) and (b)(2), the Executive Officer will approve the application and provide an approval summary on the LCFS website including the site location and FSE ID, number and type of FSE, nameplate and effective simultaneous power rating for each FSE, and effective date range for FCI pathway crediting.

(F) Crediting Period. FCI crediting is limited to 5 years starting with the quarter following Executive Officer approval of the application.

(4) Requirements to Generate FCI Credits. To generate credits using FCI pathways the following conditions must be met. The applicant must maintain, and submit to CARB upon request, records demonstrating adherence to these conditions.

(A) The applicant must update the nameplate and effective simultaneous power rating of FSE if different from the power rating provided in the application. Any FSE design or operational information that deviates from the original application must be declared to the Executive Officer, and a new attestation must be submitted using the language in section 95486.2(b)(2).

(B) The FSE must be open to the public, meaning that no obstructions or obstacles exist to preclude vehicle operators from entering the FSE premises, no access cards or personal identification (PIN) codes are required for the FSE to dispense fuel, and no formal or registered equipment training shall be required for individuals to use the FSE.

(C) The FSE that charges a fee for service must be capable of supporting a public point-of-sale method that accepts all major credit or debit cards.

(D) The FSE passed final inspection by the appropriate authority having jurisdiction and has a permit to operate.

(E) The FSE owner has fully commissioned the FSE, and has declared it fit to service retail EV drivers.

(F) The FSE registration must be completed pursuant to section 95483.2(b)(8) and the quantity of dispensed electricity must be reported as required in section 95491.

(G) The FSE must be operational within 12 months of application approval. If the applicant fails to demonstrate the operability within 12 months of approval then the application will be canceled. The applicant can reapply for the same FSE site eligible only for 2 years of crediting.

(H) The estimated cumulative value of FCI credits generated for the FSE in the prior quarter must be less than the difference between the total capital expenditure reported pursuant to section 95486.2(b)(6)(B)1 and the total grant revenue or other funding reported pursuant to section 95486.2(b)(6)(B)5 in the prior quarter.

1. The estimated value of FCI credits, for the purpose of this determination, shall be calculated using the number of FCI credits generated for the FSE in the quarter and the average LCFS credit price for that quarter published on the LCFS website.

2. The cumulative credit value generated for each FSE will be tracked as the sum of all quarterly credit values in constant-dollar for the year in which the FCI application was approved using an annual discount rate of 10%.

3. The estimated value calculated under this provision will be made available only to the respective reporting entity in LRT-CBTS and will not be published on the LCFS website.

4. This will not affect the reporting entity's ability to generate non-FCI LCFS credits for the electricity dispensed at the FSE.

(5) Calculation of FCI Credits. FCI credits will be calculated using the following equation for each FSE approved under this provision:

Click here to view image

(A) FSE availability. This is the percentage of hours the FSE is available for charging during the quarter relative to the permitted hours of operation for the site.

(B) Cost and revenue data. Provide a quarterly account of the following costs borne and revenues received by the FSE owner up through the most recent reporting quarter per site.

1. Total capital expenditures ($)

2. Total delivered cost ($) of electricity, including demand charges, and average delivered cost ($/kWh) for electricity

3. Total maintenance costs ($)

4. Total land rental cost ($)

5. Total grant revenue or other external funding received towards capital expenditures ($)

6. Total grant revenue or other external funding received towards operational and maintenance expenditures ($)

7. Total revenue ($) received from sale of electricity and average retail price ($/kWh) for electricity sold

8. Other operational expenditures ($)

(7) Applications for Expanded FCI Capacity. Applicants who increase the power rating of an FSE or add an FSE to a site that is already generating FCI credits under the LCFS must submit an application to the Executive Officer to generate additional credits based on the increased power or number of FSEs. Applications must be received before December 31, 2025 and do not extend the end date for the FCI crediting specified upon initial project approval in 95486.2(b)(3). The application must include the following elements.

(A) Updated number and type of FSE at the site.

(B) Updated FCI charging capacity, nameplate power rating and effective simultaneous power rating for each FSE at the site.

(C) The applicant must maintain records demonstrating that any new equipment added as a result of the expansion in capacity meet the requirements listed in 95486.2(b).

1. New section filed 1-4-2019; operative 1-4-2019 pursuant to Government Code section 11343.4(b)(3) (Register 2019, No. 1).

Note: Authority cited: Sections 38510, 38530, 38560, 38560.5, 38571, 38580, 39600, 39601, 41510, 41511 and 43018, Health and Safety Code; 42 U.S.C. section 7545; and Western Oil and Gas Ass'n v. Orange County Air Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr. 249 (1975). Reference: Sections 38501, 38510, 39515, 39516, 38571, 38580, 39000, 39001, 39002, 39003, 39515, 39516, 41510, 41511 and 43000, Health and Safety Code; Section 25000.5, Public Resources Code; and Western Oil and Gas Ass'n v. Orange County Air Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr. 249 (1975).

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