The Promise of RNG. Johannes Escudero, Executive Director. Coalition for Renewable Natural Gas. June 9, 2015

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1 The Promise of RNG Johannes Escudero, Executive Director Coalition for Renewable Natural Gas June 9, 2015

2 Presentation Overview: The Promise of RNG 1. The RNG Coalition 2. RNG RNG Potential / Promise 4. RNG Public Policy 5. Solicitation for RNG Support

3 The RNG Coalition: Who We Are Int l Non-Profit Organization (501 c6) - Founded in RNG Industry Trade Association - RNG Education & Policy Advocacy Platform - Membership Based - Mission Driven Mission We advocate for advanced applications of renewable natural gas derived from cellulosic waste sources so that present and future generations will have access to clean, domestic, renewable fuel and energy supply.

4 The RNG Coalition: Who We Are Membership: Leading Companies - Represent Each Sector of RNG Industry: Waste Collection, Waste Management & Recycling companies, Renewable Energy Developers, Financial Institutions & Investment Bankers, Engineers, Technology Manufacturers, Service Providers, Consultants Gas & Power Marketers, Gas & Power Transporters, Gas Utilities & Associations, Organized Labor, Law Firms, Environmental Advocates, Research Organizations - Members in US, Canada, Brazil and UK - Members produce 90% of RNG in USA Partners include: ACORE, AJW Inc, Argus Media, BIO, CNGVC, EREF, Ernst & Young / Washington Council, NGV America, Sustainable America

5 The RNG Coalition: Who We Are

6 RNG 101: What is RNG? What distinguishes Renewable Natural Gas from Fossil Natural Gas? - Natural Gas = geologic or natural resources - Renewable Natural Gas = renewable resources Renewable Natural Gas is the product gas produced from the decomposition of organic materials in renewable, cellulosic waste stream resources after treatment processes to remove C02 and other trace constituents to meet pipeline quality standards or transportation fuel grade requirements have been completed. Renewable Natural Gas is mostly methane (95% CH4) Renewable Natural Gas is also referred to as: - RNG - Biomethane - Biogas that has been upgraded to meet transportation fuel grade or pipeline quality standards

7 RNG 101: Where Does it Come From? RNG Projects are currently operating and being developed at the following cellulosic waste stream sources : - Wastewater Treatment Plants - Landfills - Agricultural, Livestock & Commercial Food Waste Digester Facilities

8 RNG 101: How is it Produced? Raw Biogas (collected from landfills, wastewater treatment plants or anaerobic digesters) is processed and treated in gas processing facilities, using oil & gas industry equipment Gas Processing Facilities remove C02 and trace constituents from the raw biogas, treating and upgrading it to meet pipeline quality or transportation fuel grade Capital Intensive Process with High Operating Costs

9 RNG 101: How is it Used? RNG is used to displace/replace coal and fossil based natural gas RNG is used on-site or distributed via existing natural gas pipeline and then used to generate renewable: - Power (Electricity; displacing/replacing coal and fossil natural gas) - Heat (Hot Water Heater, Furnace, Dryer, Oven, Stove-top, etc; displacing natural gas) - Transportation Fuel (Renewable form of CNG or LNG or Hydrogen) Renewable Compressed Natural Gas (R-CNG) = biogas that is processed to meet natural gas pipeline standards (as defined in 40 CFR 72.2) and compressed to pressures up to 3600 psig (EPA, RFS2) Renewable Liquefied Natural Gas (R-LNG) = biogas that is processed to meet natural gas pipeline standards as defined in 40 CFR 72.2 and then liquefied (cooled below its boiling point and weighs less than half of the weight of water so that it floats if spilled; EPA, RFS2)

10 RNG 101: Environmental Benefits From an environmental perspective, we believe the highest and best use of RNG is as a transportation fuel. RNG is primarily methane (95%) which is 25x more potent than carbon (ARB) RNG can reduce GHG emissions by % compared to gasoline/diesel RNG is the lowest carbon intensity transportation fuel commercially available Transportation accounts for 43% of all GHG emissions in CA (ARB)

11 RNG 101: Environmental Benefits GHG Emissions Reductions Benefits of RNG Fuel

12 RNG Potential (USA) Most Abundant RNG Sources: Food Waste (66.5 million tons per year) WasteWater Treatment Facilities (17,000 Facilities) Agricultural Waste (8,000+ Large Farms & Dairies) Landfill Gas (1,750 Landfills) Taking Full Advantage of Market Potential for transportation purposes only, RNG in the US could: Replace 7+ billion gallons of diesel annually* (equivalent of removing 10+ million cars from the road) Generate more than 70,000 jobs nationwide More than 36 billion gallons of diesel used in US (2012)

13 RNG Potential (USA) There are 2,075 Operational gas-to-energy projects in the US: - Waste Water Treatment Facilities (1,200 of 17,000) - Landfills (636 of 1,750) - Agricultural Digesters (239 of 8,000+) Only 44+ sites(16 different States) have been developed into High Btu RNG projects There is tremendous potential for development of additional High Btu RNG projects in US California has opportunity to set precedent / lead rest of nation

14 RNG Potential (CA) What about the Golden (green, or brown) State of California? There are 200+ Operational gas-to-energy projects in California: - Waste Water Treatment Facilities (1 of 153) - Landfills (0 of 27) - Agricultural Digesters (0 of 20) Only 1 project (Pt. Loma WWTP) has been developed into a High Btu RNG Facility

15 RNG Potential (CA) Development of all potential sites = > 1 Billion DGE/year of RNG Enough RNG to displace > 30% of all diesel used in CA Enough RNG to fuel: 174,628 Heavy Duty Trucks (100% RNG), or 873,143 Heavy Duty Trucks (20% RNG blended with 80% Natural Gas), or 3,492,573 Heavy Duty Trucks (5% RNG blended with 95% Natural Gas) *Calculations based on 36,000 miles per truck per year at 6 MPG - According to US DOE there are 300,000 HD Diesel trucks in CA; - Only 3,000 HD Natural Gas trucks in California; - 250,000 Natural Gas Vehicles in the United States; Would displace > 9 million metric tonnes of carbon per year Would create > 20,000 jobs (by 2030)

16 From Potential to Promise (CA) Question: How do we move forward from just recognizing the potential and benefits of RNG to actually realizing the promise of RNG (environmentally/economically)? Answer: By putting aside unnecessary politics and collaborating on sound public policy RNG Coalition Advocacy Philosophy: Policy creates Market Demand, Demand Drives Value, Value Effects RNG Bottom Line RNG is a complement to Intermittent Renewables & to Geologic Natural Gas RNG Coalition advocates for legislation & regulation that supports development of High Btu facilities from every feedstock. RNG Coalition advocates for the increased utilization of RNG for generation of electric power, thermal heat and transportation fuel.

17 RNG-Related PUBLIC POLICY INTERNATIONAL Brazil RNG Pipeline Quality Standards Canada Renewable Fuel Act, RNG Roadmap, Renewable and Low Carbon Fuel Requirements FEDERAL Legislation (RFS2; Tax Reform; National Renewable Electricity Standard) Regulation (RFS2, RVOs) STATE (16 major state markets) California: Legislation - AB 1900 (Non-Discriminatory Open Access to Pipelines in California) - AB 2196 (Protect Out-of-State Biomethane Contracts for RPS Purposes) - SB 350, 189, 32, AB 645, 197 (RPS, LCFS) - AB 577 (Cap and Trade; In-State Biofuels Production Act of 2015) Related Regulation - PUC Proposed Decision ($40 mil); RPS; LCFS

SUPPORT RNG: Join the RNG Coalition 1. Support the RNG Coalition s Public Policy Advocacy Efforts, stand in solidarity with RNG Coalition Members and the Renewable Natural Gas Industry 2.

18 SUPPORT RNG: Join the RNG Coalition 1. Support the RNG Coalition s Public Policy Advocacy Efforts, stand in solidarity with RNG Coalition Members and the Renewable Natural Gas Industry 2. Help advocate for equitable tax treatment and increased utilization of RNG, including increased transportation through the common carrier pipelines 3. Participate in education efforts to produce data and bridge information gaps; resolve related RNG issues (interconnection costs, pipeline quality standards, unfounded safety concerns, etc.) Plan to attend RNG 2015: Fuel, Heat, Power & Policy Conference December 7-9, 2015 at the Hotel Del Coronado (Coronado Island, CA)

19 Thank You Johannes Escudero Executive Director RNG RNGCoalition.com

Sustainable Gas Systems New Business Models. Sean Gleeson, Noblehurst Green Energy (NGE) (585)

Sustainable Gas Systems New Business Models Sean Gleeson, Noblehurst Green Energy (NGE) Sgleeson22@gmail.com; (585) 750-8320 Agenda Noblehurst Green Energy (NGE) Biogas as a Transportation Fuel Critical