The Renewable Natural Gas Fuel Credit comes from the State of California's Low Carbon Fuel Standard (LCFS) program. The goal of the LCFS program is to reduce transportation-related greenhouse gas emissions by encouraging the adoption of cleaner fuels, like compressed natural gas (CNG). The Renewable Natural Gas Fuel Credit is available for PG&E compressed natural gas account holders for their use of compressed natural gas as a clean transportation fuel.
Each mile driven using compressed natural gas reduces vehicle greenhouse gas emissions by 30 percent compared to gasoline cars and 25 percent compared to diesel trucks. In addition, PG&E’s stations are now being supplied with Renewable Natural Gas (RNG) through an agreement with a biomethane supplier. Waste from dairy farms, water treatment facilities, and landfills that would normally decompose and release methane into the air is now processed into a low-carbon (or even carbon-negative) fuel to run your vehicles. You’re contributing to a cleaner air when you fuel your vehicle with RNG at one of PG&E’s fueling stations.
PG&E compressed natural gas account holders will automatically receive the Renewable Natural Gas Fuel Credit as an annual credit on their bill. There’s no need to apply.
The Renewable Natural Gas Fuel Credit amount varies for each customer and is based on that customer's consumption of compressed natural gas from one of PG&E's fueling stations during the Credit Period, which is the time period associated with the credit (see eligibility below).
To receive a credit, customers must have an active PG&E compressed natural gas account on the G-NGV2 rate schedule at the time of the credit distribution and have purchased compressed natural gas through this PG&E compressed natural gas account within the Credit Period. The Credit Period is generally the prior calendar year – for example, the 2022 Renewable Natural Gas Fuel Credit will cover consumption from January 1 to December 31, 2021.
The first credit was issued in 2017 and has been applied annually afterwards. The credit is expected to continue through 2023 but may be modified or discontinued at any time without notice.
The Low Carbon Fuel Standard (LCFS) is a State of California program administered by the California Air Resources Board. The LCFS Program is designed to reduce the carbon intensity of transportation fuels by 20 percent below 2010 levels by 2030 by encouraging adoption of cleaner fuels.
The LCFS program requires a 20% reduction in the carbon intensity of on-road transportation fuels by 2030. The LCFS compliance targets become more stringent over time, requiring fuels to become increasingly cleaner to meet the 2030 goal. Producers of fuels whose carbon intensities exceed the targets (e.g., electricity and compressed natural gas) generate credits. Producers with deficits can meet their LCFS compliance obligations by reducing the carbon intensity of their fuels and by purchasing credits.
For more information, visit the California Air Resources Board's Low Carbon Fuel Standard website.
When PG&E sells electricity for use in electric vehicles or compressed natural gas for use in natural gas vehicles, PG&E generates LCFS credits because these fuels are cleaner than conventional fuels like gasoline or diesel. PG&E then sells these LCFS credits to regulated parties that need to meet the compliance target under the LCFS. PG&E returns the revenue from the sale of these credits to its EV customers and CNG customers through programs like the Renewable Natural Gas Fuel Credit.
No, PG&E returns the revenue from its credit sales, minus administrative costs of running the program, to qualified customers through the Renewable Natural Gas Fuel Credit. PG&E believes in supporting a cleaner California and voluntarily participates in the LCFS Program. By generating and selling credits from the clean electricity and compressed natural gas it dispenses and providing customer programs, PG&E supports the LCFS program and provides a benefit for its customers.