Renewable Natural Gas

Presented by Dan Evans (Promus Energy) on behalf of the Coalition for Renewable Natural Gas April 5, 2016

Presentation Overview 

1. The RNG Coalition

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2. RNG 101

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3. RNG Potential

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4. RNG Nexus with Natural Gas

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5. RNG Education & Advocacy

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6. RNG Coalition Membership

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7. Q&A

The RNG Coalition

 RNG Industry Trade Association -

Founded in July 2011 Membership Based Non-Profit (501 c6) International Members Vision & Mission Driven Public Policy & Education Focused

RNG Coalition: Members  Membership:

Represent 70+ Leading Companies / Each RNG Industry Sector: Waste Collection, Waste Management & Recycling Companies, Renewable Energy Developers, Financial Institutions & Investment Bankers, Engineers, Environmental Advocates, Research Organizations, Organized Labor, Law Firms, Technology Manufacturers, Service Providers, Consultants, Gas & Power Marketers, Gas & Power Transporters, Gas Utilities & Associations. Produce 90% of RNG in North America

Cynthia Obadia Consulting

Law Office of Jeremy Weinstein

RNG Coalition: Partners ACORE, Advanced Biofuels Association, AJW Inc, Argus Media, Biotechnology Industry Organization, CA Natural Gas Vehicles Coalition, Clean Cities Coalitions, Energy-Vision, Environmental Research & Education Foundation, Ernst & Young / Washington Council, Gladstein Neandros & Associates, Natural Gas Vehicles for America, RNG Global Initiative, Sustainable America, Solid Waste Assoc. of North America (SWANA)

The RNG Coalition: Our Mission  Mission We advocate for renewable natural gas derived from cellulosic waste sources so present & future generations will have access to clean, domestic, renewable fuel and energy supply.

The RNG Coalition: Our Priority  Priority To provide public policy advocacy and education that enables the number of RNG projects in North America to double (from 55 to 100+).

RNG 101: What is Renewable Natural Gas? Renewable Natural Gas is the gas produced from the decomposition of organic materials in renewable waste resources after treatment processes to remove C02 and other trace constituents to meet natural gas pipeline quality or transportation fuel standards have been completed. Renewable Natural Gas is also referred to as: - RNG - Biomethane - Upgraded Biogas RNG (95%+ CH4) & Natural Gas (80%+ CH4) = Mostly Methane  Major Difference between RNG & Natural Gas? Natural Gas = geologic sources (limited natural resources) RNG = renewable sources (Landfills, WWTP, Ag, Food, etc.); RNG = ultra low-carbon alternative or complement to natural gas

RNG 101: How is RNG Produced?

Raw Biogas is first collected from landfills, wastewater treatment plants or anaerobic digesters (agricultural, food waste, etc.) It is then upgraded in gas processing facilities, using recycled oil & gas industry equipment, to remove C02 and other trace constituents as required RNG Facilities = Capital Intensive Process with High Operating Costs

RNG Potential (USA)

According to US EPA LMOP there are 2,075 Operational gas-to-energy projects in the US: - Waste Water Treatment Facilities (1,200 developed out of 17,000 candidates) - Landfills (636 developed out of 1,750 candidates) - Agricultural Digesters (239 developed out of 8,000+ candidates) Only 55+ have been developed into High Btu RNG projects These RNG projects are operational in 18 States Vast potential for development of new High Btu RNG projects in US

RNG Potential (USA) Traditionally, we’ve relied on geologic natural gas Today, we have the technology and opportunity to convert organic waste into RNG from the following feedstock sources: 66.5 million tons of food waste (per year) 12,000 large agricultural farms and facilities

3,500 waste water treatment facilities 1,450 landfills Doing so would replace 7+ billion gallons of diesel fuel/year; Have the effect of removing 12 million cars from the road; Create 70,000+ jobs.

RNG: Nexus with Natural Gas  Environmental benefits associated with injection of RNG into natural gas pipelines is well documented (decarbonization; methane capture, greenhouse gas emissions reduction).  Success in development of RNG projects, expansion of existing or creation of new RNG markets is dependent upon:    

1) Environmental Policies & Markets 2) Access to and interconnection with natural gas infrastructure 3) Development of natural gas fueling stations & deployment of natural gas vehicles 4) Overcoming bias against natural gas in favor of other alternatives (electrification, etc.)

 OPPORTUNITY TO BE PROACTIVE:  1) Coalesce  2) Educate  3) Advocate

RNG: Policy Reality

 Public Policy (RFS2, LCFS, RPS, AB 1900, etc.) = Creates Market Demand;  Demand (Renewable Fuel, Heat, Power, etc.) = Determines Market Value;  Value (D3 RINs, Carbon Credits, RECs, AECs, etc.) = Affects Revenue  Revenue = Directly Impacts the Sustainability of Business (Revenues must exceed expenses, predictably)

Be proactive in the process. Collaborate. Educate. Advocate.

RNG: 2016 Policy Objectives The RNG Coalition Monitors, Supports or Opposes RNG-relevant Legislation & Regulation in the US & Canada. The following objectives could set policy precedent for other states: 1. Modify Siloxane & Minimum Heating Value Standard Requirements for Biomethane Pipeline Injection 2. Create an RNG Standard 3. Biofuels Initiative ($210m Cap & Trade GGRF Allocation) 4. Production Tax Incentive

5. Parity for Biofuels with Electric Vehicles

RNG Coalition: Education & Advocacy  Provide policy advocacy & education for RNG Industry (North America), including but not limited to:  Protection, growth & sustainability of the RNG industry (legislation, regulation, rules, etc.).  Increased development of RNG from every eligible feedstock (agricultural/food waste digesters, landfills & WWTP, etc.).  Increased pipeline injection & utilization of RNG for every available end-use application (fuel, heat, power, plastics, feed, etc.).  Baseload complement to other intermittent renewables (wind & solar, etc.).

 RNG Continuing Education Program for NG Pipeline Utilities

RNG Coalition Membership

We invite you to support the RNG Coalition’s Public Policy Advocacy & Education Efforts: Join the RNG Coalition to further collaborate, educate and advocate as an official member. We are often opposed by other alternative energy sources & big oil interests, but we are stronger together. In addition to member dues, contribute & participate by lending your company’s industry experience, expertise, influence & resources to the cause. Stay informed. Receive real-time updates on international, federal, state & provincial politics, legislation & regulation relevant to the RNG industry, including markets & affected products.  For more information or to request a membership application, please email [email protected], or click on the Membership page at www.RNGCoalition.com

RNG 2016: Fuel, Heat, Power & Policy Conference  Save the Date: December 5-7, 2016

 Hotel Del Coronado (Coronado Island - San Diego, CA)  Panel, Roundtable Sessions & Working Groups  Current policy information relevant for the RNG industry in North America including but not limited to the RFS2, LCFS, RPS, Cap-and-Trade & AB 1900.  Networking Events  Annual Golf Classic at Torrey Pines & Sailing on San Diego Bay; Morning Breakfasts, Luncheons on the Beach, Evening Receptions & Dinners

Acknowledgments

 On behalf of the RNG Coalition and industry, we would like to thank Western Washington Clean Cities and WSU Energy Program for the invitation to present to & discuss RNG during the 2016 Green Transportation Summit & Expo  We look forward to the prospect of working together with towards realizing increased development, pipeline injection, transportation and utilization of RNG in the Pacific Northwest & across North America.

Contact Info

Johannes Escudero CEO & Executive Director Coalition for Renewable Natural Gas [email protected] O. 916.588.3033 x1 M. 916. 520. 4RNG RNGCoalition.com