Revenue generated from California’s Low Carbon Fuel Standard program will be returned to
LOS ANGELES, March 26, 2019 — Southern California Gas Co. (SoCalGas) today announced the company will lower the price of compressed natural gas at all of its 13 public access natural gas vehicle fueling stations by $0.26 per gallon beginning April 1 st. Through a California Public Utilities Commission approved program, the utility is able to offer a reduced price by returning revenue generated from the sale of Low Carbon Fuel Standard (LCFS) credits to customers.
The LCFS program is administered by the California Air Resources Board and seeks to reduce greenhouse gas emissions from transportation fuels by 20 percent through 2030. Under the program, fuels that help lower GHG emissions, such as natural gas, generate LCFS credits.
“Natural gas has played a significant role in reducing greenhouse gas emissions under the LCFS program, while also reducing smog-forming emissions by over 90% percent,” said Yuri Freedman, senior director of business development at SoCalGas. “Lowering the cost of this clean fuel increases the benefits for trucking fleets and others that have switched from gasoline or diesel to natural gas.”
Natural gas costs significantly less than gasoline or diesel per gallon. For example, the average pump price at utility compressed natural gas stations was $2.37 per gallon in February, whereas the average cost of gasoline in California was $3.24 per gallon, and the average cost of diesel was $3.73 per gallon, according to the Energy Information Administration.
Cleaning Up California’s Highways with Renewable Natural Gas
SoCalGas also recently announced it will soon begin using renewable natural gas, a fuel produced from waste sources, at its fueling stations. Because of its low or even negative carbon intensity, renewable natural gas can generate additional LCFS program credits.
The transportation sector is responsible for 41 percent of GHG emissions and 80 percent of smog forming pollution. The latest heavy-duty natural gas engines can cut smog-forming emissions by more than 90 percent compared to the cleanest heavy-duty diesel trucks on the road today. When these trucks are fueled with renewable natural gas, GHG emissions are reduced by at least 80 percent. SoCalGas has worked with fleet owners to secure millions of dollars in incentive funding for the replacement of diesel trucks with cleaner, new near-zero natural gas trucks.
Renewable natural gas is produced from the methane generated in landfills, wastewater treatment plants, food processing, and dairies. It can be used to fuel trucks and buses, to generate electricity, to heat homes and businesses, and to cook. Capturing the methane from these waste sources and using it for fuel has two benefits: it keeps methane, a GHG, from entering the atmosphere and contributing to climate change, and it reduces the use of traditionally-sourced natural gas.
Already in California, close to 70 percent of natural gas fleets are fueled with renewable natural gas.
Headquartered in Los Angeles, SoCalGas® is the largest natural gas distribution utility in the United States. SoCalGas delivers affordable, reliable, clean and increasingly renewable natural gas service to 21.8 million customers across 24,000 square miles of Central and Southern California, where more than 90 percent of residents use natural gas for heating, hot water, cooking, drying clothes or other uses. Natural gas delivered through the company’s pipelines also plays a key role in providing electricity to Californians— about 45 percent of electric power generated in the state comes from gas-fired power plants.
SoCalGas’ vision is to be the cleanest natural gas utility in North America, delivering affordable and increasingly renewable energy to its customers. In support of that vision, SoCalGas is committed to replacing 20 percent of its traditional natural gas supply with renewable natural gas (RNG) by 2030. Renewable natural gas is made from waste created by dairy farms, landfills and wastewater treatment plants. SoCalGas is also committed to investing in its natural gas system infrastructure while keeping bills affordable for our customers. From 2014 through 2018, the company invested nearly $6.5 billion to upgrade and modernize its natural gas system to enhance safety and reliability. SoCalGas is a subsidiary of Sempra Energy (NYSE: SRE), an energy services holding company based in San Diego. For more information visit socalgas.com/newsroom or connect with SoCalGas on Twitter (@SoCalGas), Instagram (@SoCalGas) and Facebook