California Energy Commission Clean Transportation Program FINAL PROJECT REPORT

San Diego Regional Alternative Fuel Readiness Plan Final Report

Prepared for: California Energy Commission Prepared by: San Diego Association of Governments

Gavin Newsom, Governor January 2019 | CEC-600-2019-002 California Energy Commission

Anna Lowe Susan Freedman Allison Wood Primary Author(s)

San Diego Association of Governments 401 B Street, Suite 800 San Diego (619) 595-5603 SANDAG Website: (https://www.sandag.org)

Agreement Number: ARV-13-013

Miki Crowell Commission Agreement Manager

Jazqueline Gaskill Office Manager ADVANCED VEHICLE INFRASTRUCTURE OFFICE

Kevin Barker Deputy Director FUELS AND TRANSPORTATION

Drew Bohan Executive Director

DISCLAIMER This report was prepared as the result of work sponsored by the California Energy Commission (CEC). It does not necessarily represent the views of the CEC, its employees, or the State of California. The CEC, the State of California, its employees, contractors, and subcontractors make no warrant, express or implied, and assume no legal liability for the information in this report; nor does any party represent that the use of this information will not infringe upon privately owned rights. This report has not been approved or disapproved by the CEC nor has the CEC passed upon the accuracy or adequacy of the information in this report. ACKNOWLEDGEMENTS

Many individuals aided in the preparation of the San Diego Regional Alternative Fuel Readiness Plan and toolkits. Of particular note is the sustained participation and involvement of the San Diego Regional Alternative Fuel Coordinating Council (Refuel San Diego). Refuel San Diego Voting Members Chris Schmidt, Chair, Caltrans – District 11 Anna Lowe, Co-Chair, & Susan Freedman, SANDAG Barbara Locci & Lynn France, City of Chula Vista – South County Subregion Mike Grim, City of Carlsbad & Mo Lahsaie, City of Oceanside – North County Coastal Subregion Jeff Wyner, City of Escondido – North County Inland Subregion Kathy Valverde, City of Santee – East County Subregion Jacques Chirazi, City of San Diego Susan Freed, County of San Diego Michelle White & Kellie Carlson, Unified Port District of San Diego Randy Schimka & Greg Haddow, San Diego Gas & Electric Colin Santulli, Center for Sustainable Energy Jim Ruby, University of California, San Diego Greg Newhouse, Miramar College, Advanced Transportation Technology & Energy Center Albert Mar & Nick Cormier, San Diego County Air Pollution Control District Paul Manasjan & Brendan Reed, San Diego Regional Airport Authority Refuel San Diego Advisory Members Bill Cecil, City of Coronado Kristen Crane, City of Del Mar Matt Lyer, City of El Cajon Bryce Wilson, City of Encinitas Chris Helmer, City of Imperial Beach Howard Lee, City of La Mesa Mike James, City of Lemon Grove Ray Pe, City of National City Eric Heidemann, City of Poway Lisa Fowler, City of San Marcos Lyn Dedmon, City of Vista i Sharon Cooney, Metropolitan Transit System David Powell, Department of Defense Kevin Wood, San Diego Regional Clean Cities Coalition Nilmini Silva-Send, Energy Policy Initiatives Center Michael Catanzaro, University of San Diego Mike Evans, San Diego Regional Chamber of Commerce Jason Anderson, CleanTECH San Diego Additional Acknowledgements The San Diego Association of Governments (SANDAG) acknowledges the Center for Sustainable Energy (CSE) for its partnership and the San Diego County Air Pollution Control District for its support on this Contract. SANDAG also acknowledges Regional Energy Working Group Chair Chris Orlando, Councilmember, City of San Marcos, for his support for Refuel San Diego and the advancement of clean fuels. The following staff of SANDAG and the CSE had primary responsibility for the preparation of the work products created under this agreement. SANDAG Anna Lowe Susan Freedman Allison Wood Michelle Martinez CSE Kevin Wood Candace Chu Randy Wilde Colin Santulli Anna Miller Christina Machak Jessica Jinn

ii PREFACE

Assembly Bill 118 (Núñez, Chapter 750, Statutes of 2007) created the Clean Transportation Program, formerly known as the Alternative and Renewable Fuel and Vehicle Technology Program. The statute authorizes the California Energy Commission (CEC) to develop and deploy alternative and renewable fuels and advanced transportation technologies to help attain the state’s climate change policies. Assembly Bill 8 (Perea, Chapter 401, Statutes of 2013) reauthorizes the Clean Transportation Program through January 1, 2024, and specifies that the CEC allocate up to $20 million per year (or up to 20 percent of each fiscal year’s funds) in funding for hydrogen station development until at least 100 stations are operational. The Clean Transportation Program has an annual budget of about $100 million and provides financial support for projects that: • Reduce California’s use and dependence on petroleum transportation fuels and increase the use of alternative and renewable fuels and advanced vehicle technologies. • Produce sustainable alternative and renewable low-carbon fuels in California. • Expand alternative fueling infrastructure and fueling stations. • Improve the efficiency, performance and market viability of alternative light-, medium-, and heavy-duty vehicle technologies. • Retrofit medium- and heavy-duty on-road and nonroad vehicle fleets to alternative technologies or fuel use. • Expand the alternative fueling infrastructure available to existing fleets, public transit, and transportation corridors. • Establish workforce-training programs and conduct public outreach on the benefits of alternative transportation fuels and vehicle technologies.

To be eligible for funding under the Clean Transportation Program, a project must be consistent with the CEC’s annual Clean Transportation Program Investment Plan Update. The CEC issued PON-13-603 to provide funding opportunities for Alternative Fuel Readiness Plans. In response to PON-13-603, the recipient submitted an application, which was proposed for funding in the CEC’s notice of proposed awards January 14, 2014, and the agreement was executed as ARV-13-013 on June 11, 2014.

iii ABSTRACT

The San Diego region has been planning for alternative fuels for many years and aspires to further the growth of alternative fuel vehicles and infrastructure to position the region as a comprehensive zero-emission infrastructure network. This document is the Final Report by the San Diego Association of Governments pursuant to its Agreement ARV-13-013 with the California Energy Commission under solicitation PON-13-603 for regional alternative fuel readiness for the following vehicles and infrastructure: , electricity, hydrogen, , and propane . The project comprised four primary tasks: 1) Establish Refuel: San Diego Regional Alternative Fuel Coordinating Council (Refuel San Diego); 2) Complete a regional Alternative Fuels Assessment; 3) Create sector-specific Alternative Fuel Toolkits; and 4) Develop the San Diego Regional Alternative Fuel Readiness Plan (Alternative Fuel Readiness Plan). The team used the San Diego Regional Clean Cities Coalition, through the Center for Sustainable Energy to assist Refuel San Diego in developing meetings, materials, and stakeholder outreach efforts. The Center for Sustainable Energy team documented baseline locations of alternative fueling stations and the use levels of alternative fuels. They also identified regional deployment barriers to Refuel San Diego. The Fuels Assessment identified preliminary regional station location potential per alternative fuel type to enable possible infrastructure build-out. San Diego Association of Governments was able to provide planning and information resources for local governments and public agencies in support of their Climate Action Plans and gas (GHG) reduction efforts. San Diego Association of Governments provided Alternative Fuel Toolkits to numerous local agencies, including the Clean Cities Coalition and the San Diego County Air Pollution Control District. Refuel San Diego analyzed the alternative fuel requirements needed to further market growth within San Diego County and played a critical role in disseminating this information. Refuel San Diego’s recommendations are to: 1) Continue to emphasize and align alternative fuels in GHG reduction efforts and policies; 2) Identify project-funding resources; and 3) promote education and outreach efforts, including workforce development and training. Keywords: California Energy Commission, San Diego Association of Governments, Center for Sustainable Energy, San Diego County Air Pollution Control District, San Diego Regional Clean Cities Coalition, alternative fuel, alternative fuel infrastructure, , biodiesel, renewable diesel, , , , natural gas vehicle, renewable natural gas, propane autogas, zero-emission vehicle, planning, policy, guidebook, greenhouse gas, readiness plan, barriers, alternative fuel toolkit, Refuel San Diego, training. Please use the following citation for this report: Lowe, Anna, Susan Freedman, Allison Wood. San Diego Association of Governments. 2019. San Diego Regional Alternative Fuel Readiness Plan Final Report. California Energy Commission. Publication Number: CEC-600-2019-002.

iv TABLE OF CONTENTS

Page Acknowledgements ...... i Preface ...... iii Abstract ...... iv Table of Contents...... v List of Figures ...... vi List of Tables ...... vii EXECUTIVE SUMMARY ...... 1 CHAPTER 1: Project Purpose and Approach ...... 5 Purpose of the Regional Alternative Fuel Readiness Project ...... 5 Mission of Refuel San Diego ...... 6 Goals of Refuel San Diego ...... 6 CHAPTER 2: Activities Performed, Data Collection, and Results ...... 8 Activities Performed ...... 8 Refuel: San Diego Regional Alternative Fuel Coordinating Council ...... 8 Refuel Meeting Schedule...... 10 Alternative Fuel Assessment ...... 12 Identification and Prioritization of San Diego Regional Barriers ...... 15 Sector Specific Alternative Fuel Toolkits ...... 16 Data Collection ...... 17 Existing Conditions Data Collection ...... 17 Existing Conditions Coverage Maps ...... 18 Results ...... 23 Future Infrastructure Investment Needs ...... 33 CHAPTER 3: Technological Advancements and Success of the Project ...... 35 Technological Advancements ...... 35 Vehicle to Grid Integration ...... 35 Renewable Diesel ...... 35 Renewable Natural Gas ...... 36 Cellulosic Ethanol ...... 36 Measuring Success of the Project ...... 37 Achievement of Refuel San Diego Project Goals ...... 37 Achievement of Refuel San Diego Project Objectives ...... 37 CHAPTER 4: Observations, Conclusions, and Recommendations...... 39 Observations ...... 39 Stakeholder Participation ...... 39

v Program Collaboration ...... 39 Conclusions and Major Findings ...... 40 Climate Action Plans Motivate Alternative Fuel Deployment ...... 40 Recommendations ...... 40 Recommendations for the State ...... 40 Recommendations for the San Diego Region ...... 41 GLOSSARY ...... 42

LIST OF FIGURES

Page Figure 1: Survey Results - Resources Desired by Public Agency Respondents ...... 13 Figure 2: Survey Results - Resources Desired by Alternative Fuel Fleet Managers ...... 14 Figure 3: San Diego County Public Alternative Fuel Infrastructure Growth, 1991-2015 ...... 17 Figure 4: New Alternative Fuel Light-Duty Vehicle Sales San Diego County, 2010-2014 ...... 18 Figure 5: San Diego County Electric Vehicle Charging Station Coverage with a Five-Mile Radius of Business Sites (2014) ...... 19 Figure 6: San Diego County Propane Autogas Fueling Station Coverage with a Five Mile Radius of Business Sites (2014) ...... 20 Figure 7: San Diego County Fueling Station Coverage with a Five-Mile Radius of Business Sites (2014) ...... 21 Figure 8: San Diego County Ethanol Fueling Station Coverage with a Five Mile Radius of Business Sites (2014) ...... 22 Figure 9: San Diego County Biodiesel Fueling Station Coverage with a Five Mile Radius of Business Sites (2014) ...... 23 Figure 10: Biodiesel Infrastructure Coverage within 2.5 Miles - Residences ...... 24 Figure 11: Biodiesel Infrastructure Coverage within 2.5 Miles - Businesses ...... 25 Figure 12: Electricity (DC Fast Charger) Infrastructure Coverage within 2.5 Miles - Residences ...... 26 Figure 13: Electricity (DC Fast Charger) Infrastructure Coverage within 2.5 Miles - Businesses ...... 27 Figure 14: Ethanol () Infrastructure Coverage within 2.5 Miles - Residences ...... 28 Figure 15: Ethanol (E85) Infrastructure Coverage within 2.5 Miles - Businesses ...... 29 Figure 16: Hydrogen Infrastructure Coverage within 2.5 Miles - Residences ...... 30 Figure 17: Hydrogen Infrastructure Coverage within 2.5 Miles - Businesses ...... 31 Figure 18: Natural Gas (CNG) Infrastructure Coverage within 2.5 Miles - Businesses ...... 32 vi Figure 19: Propane Autogas Infrastructure Coverage within 2.5 Miles - Businesses ...... 33

LIST OF TABLES

Page Table 1: Infrastructure Investment Needs to Support Widespread Adoption of Alternative Fuels in San Diego County ...... 3 Table 2: Refuel San Diego Voting Members ...... 8 Table 3: Refuel San Diego Voting Members (all advisory) ...... 9 Table 4: Refuel San Diego Meeting and Outreach Schedule ...... 11 Table 5: Refuel San Diego Alternative Fuel Barriers ...... 15 Table 6: San Diego County Alternative Fuel Station Coverage (2014) ...... 18 Table 7: Current and Targeted Alternative Fuel Infrastructure Coverage for San Diego County (January 2016) ...... 23 Table 8: Infrastructure Investment Needs to Support Widespread Adoption in the San Diego County ...... 34 Table 9: SANDAG ARV-13-013 Agreement Project Goal ...... 37 Table 10: SANDAG ARV-13-013 Agreement Project Objectives ...... 37

vii viii EXECUTIVE SUMMARY

The San Diego region remains a leader in alternative fuel vehicle adoption, as reflected in participation rates of rebate and incentive programs such as the Clean Vehicle Rebate Project1; 77 percent of electric vehicles purchased in San Diego County participated in the rebate project. With new vehicles and technologies becoming available and new federal, state, and local policies, regulations, and guidance documents supporting the evolution from standard vehicles to alternative fuel vehicles, more planning information, such as a readiness plan, is needed to support widespread deployment and adoption of alternative fuels and vehicles in the San Diego region. The San Diego Regional Alternative Fuel Readiness Plan was developed to support local government entities as they develop a growing number of Climate Action Plans, alternative fuel policies, and other greenhouse gas emissions reduction planning and petroleum reduction efforts. It leveraged previous alternative fuel planning efforts by expanding the San Diego Regional Electric Vehicle Infrastructure Working Group and the Plug-in Electric Vehicle Coordinating Council for the San Diego Region, which was formed through the Plug-in Electric Vehicle Readiness Planning grant award to San Diego Association of Governments by the California Energy Commission in 2012. The San Diego Association of Governments’ goal for this project was to prepare the San Diego region for the increased use of alternative transportation fuels by developing a regionally- accepted, comprehensive alternative fuel readiness plan that identified immediate needs and long-term planning objectives. San Diego Association of Governments led the project in partnership with the Center for Sustainable Energy on behalf of the San Diego Regional Clean Cities Coalition and leveraged their existing efforts to engage alternative fuel stakeholders, assess training needs in the region, and expand upon the data collected in the coalition’s annual report. The San Diego County Air Pollution Control District provided project support. The project scope comprised four primary objectives: Create a forum named Refuel: San Diego Regional Alternative Fuel Coordinating Council (Refuel San Diego) to gain input from stakeholders and allow peer-to-peer exchange of ideas. Assess the current state of alternative fuels in the region (San Diego Regional Alternative Fuel Readiness Assessment) with regard to funding and incentives available, policies and training programs in place, and data available on alternative fuel infrastructure and fuel use. Create sector-specific alternative fuel toolkits (Alternative Fuel Toolkits) to provide resources to key stakeholders in alternative fuel readiness, such as fleet managers, local government staff, fuel providers, and vehicle dealers. Address the identified needs and challenges in a regional alternative fuel readiness plan (San Diego Regional Alternative Fuel Readiness Plan).

1 Clean Vehicle Rebate Project Participation Rates: The First Five Years (March 2010-March 2015). October 2015. Center for Sustainable Energy.

1 The San Diego Association of Governments Board of Directors accepted the San Diego Regional Alternative Fuel Readiness Plan on February 26, 2016, as a regional resource for use by local governments, public agencies, vehicle manufacturers, the fuel industry, and other interested stakeholders to advance the deployment of alternative fuel vehicles and infrastructure. The Alternative Fuel Readiness Plan, Alternative Fuel Toolkits, Assessment, and Refuel San Diego meeting agendas, materials, presentations, and summaries are available for review and download at their website: www.sandag.org/refuel. The Alternative Fuel Readiness Plan has been distributed to Refuel San Diego members and stakeholders, and is available to the public at no cost. Chapter 1 describes the purpose of Refuel San Diego and the approach used. To complete this project, San Diego Association of Governments, partnered with the Center for Sustainable Energy as a local nonprofit organization and federally designated coordinator of the clean cities coalition where the Center for Sustainable Energy provided technical and administrative support. They helped convene meetings and prepare meeting materials, the San Diego Regional Alternative Fuel Assessment (Assessment), components of the Alternative Fuel Toolkits, and the Alternative Fuel Readiness Plan, as well as outreach support. Chapter 2 describes the numerous activities performed by Refuel San Diego, the data collected over the project period, and the results of the project. Over the course of sixteen months, Refuel San Diego was established and held six quarterly meetings and eleven fuel-specific subcommittee meetings. In addition to the Refuel San Diego meetings, eleven additional outreach events and meetings convened to help inform the Alternative Fuel Toolkits and Alternative Fuel Readiness Plan, and to disseminate information. All of the meetings hosted by and/or attended on behalf of Refuel San Diego were very well attended and encompassed diverse stakeholders. The Assessment was developed to understand the alternative fuel landscape in the region. Refuel San Diego used the Assessment to help identify fourteen barriers (Table 5) to alternative fuel deployment, which became the framework for the five toolkits. • Alternative Fuels for Consumers Toolkit • Alternative Fuels for Public Agencies Toolkit • Alternative Fuels for Fleets Toolkit • Alternative Fuels for Fuel Marketers and Retailers Toolkit • Alternative Fuels for First Responders Toolkit The Assessment and toolkits produced a preliminary quantification of targeted alternative fuel station coverage for the San Diego region. The targeted coverage percentages would provide enough refueling stations for the region to meet what would be “our theoretical fair share” of state petroleum reduction/alternative fuel targets. Based on the targeted coverage analysis, the Center for Sustainable Energy developed two preliminary scenarios – a low case and high case –to estimate the level of investment necessary for the San Diego region to be considered ready to support the large-scale influx of vehicles run on each alternative fuel. The low case estimates how many stations would be necessary to reach the targeted coverage of residential and business sites using a two and a half mile radius. The high case envisions a scenario where infrastructure is ubiquitous throughout the region, with redundancies in fueling infrastructure similar to gasoline stations. Using approximate station costs, Table 1 estimates the costs to build out this comprehensive

2 fueling infrastructure for the region and exemplifies the need for ongoing funding to realize the region’s alternative fuel needs.

Table 1: Infrastructure Investment Needs to Support Widespread Adoption of Alternative Fuels in San Diego County Additional Stations Needed Cost Per Investment Costs Station (in millions) Fuel Type Low Case High Case Low Case High Case Biodiesel 11 25 $300,000 $3.30 $7.50 DC Fast Chargers 15 104 $60,000 $0.90 $6.24 L2 EV Charging 1,140 3,540 $5,000 $5.70 $17.70 Ethanol 5 22 $300,000 $1.50 $6.60 Hydrogen 9 20 $2,000,000 $18.00 $40.00 CNG 9 30 $1,200,000 $10.80 $36.00 Propane Autogas 5 10 $50,000 $0.25 $0.50 Total Cost: $40.45 $114.54

Source: SANDAG Chapter 3 highlights the technological advancements during the project period and success of the project. Four specific advancements were discussed at Refuel San Diego meetings and are included in the report: San Diego Gas & Electric Vehicle to Grid Integration pilot program, large scale availability of renewable diesel in California, anaerobic digesters increasing the availability of renewable natural gas, and the potential for effective and affordable cellulosic ethanol. Chapter 4 documents observations, conclusions, and recommendations. Observations include the region’s continuing adoption of alternative fuels in the context of the small volumes of alternative fuels in relation to total transportation fuel use, and the continued need for more alternative fuel infrastructure. Observations were captured in two primary categories: stakeholder participation and program collaboration. The conclusions and major findings described in Chapter 4 indicate that further communication and education is necessary to expand the public’s understanding of alternative fuels and their benefits. Locally, it is apparent that Capital Action Plans motivate alternative fuel deployment and that the need for future infrastructure investments is critical to the growth of the alternative fuel market. This chapter concludes with recommendations identified through input from Refuel San Diego and other stakeholders and outreach events. These recommendations can be categorized as “Recommendations for the State” and “Recommendations for the San Diego Region.” Two primary recommendations for the state identified by Refuel San Diego are: • Continued and new funding for planning and infrastructure. • Policy and regulatory direction.

3 Five recommendations for the San Diego region were identified (see Chapter 8 of the San Diego Regional Alternative Fuel Readiness Plan): • Continue to emphasize alternative fuels as a key strategy in the region’s GHG reduction efforts. • Continue to align alternative fuel policies across all local agencies in support of regional air quality attainment and other goals. • Seek new funding sources for alternative fuel and infrastructure deployment. • Enhance education and outreach efforts to promote awareness of alternative fuel options. • Accelerate market growth through workforce development, training, and local entrepreneurship.

4 CHAPTER 1: Project Purpose and Approach

Purpose of the Regional Alternative Fuel Readiness Project Transportation accounts for over 40 percent of the San Diego region’s greenhouse gas emissions.2 Planning for the increased use of alternative fuels is one way the San Diego Association of Governments (SANDAG) is trying to reduce regional impacts from this sector. In 2009, SANDAG prepared the Regional Alternative Fuels, Vehicles, and Infrastructure Report, and since that time, has integrated alternative fuel considerations into numerous planning and program documents, including San Diego Forward: The Regional Plan (October 2015). San Diego Forward: The Regional Plan serves as a blueprint for how the region will grow, and how SANDAG will invest in transportation infrastructure that provides more choices to public and private consumers. Through Refuel San Diego, SANDAG intended to develop a comprehensive strategic readiness plan that addresses immediate needs as well as long-term planning objectives for deployment of alternative fuel vehicles and alternative fuel infrastructure in the San Diego region. The SANDAG team coordinated engagement with alternative fuel stakeholders to ensure that the San Diego Regional Alternative Fuel Readiness Plan was regionally accepted by all parties. This project leveraged previous alternative fuel planning efforts by expanding the San Diego Regional Electric Vehicle Infrastructure Working Group (this region’s PEV Coordinating Council) to include stakeholders from the broader alternative fuel industry and established Refuel: San Diego Regional Alternative Fuel Coordinating Council (Refuel San Diego). Refuel San Diego met quarterly to discuss regional activities, state legislation, and other events and activities. Between quarterly meetings, smaller fuel specific subcommittee meetings were held with industry and subject matter experts to talk more in-depth about regional barriers, ways to address them, case studies, lessons learned, and available and needed resources and training opportunities. The Alternative Fuel Readiness Plan’s development began with the San Diego Regional Alternative Fuel Assessment (Assessment) which established existing conditions and identified key needs to prepare the region for deployment of alternative fuels (biodiesel, electricity, ethanol, hydrogen, natural gas, and propane autogas). The Assessment became the premise for which Refuel San Diego identified barriers to deployment and the resources included in the sector-specific Alternative Fuel Toolkits. Refuel San Diego prepared five sector-specific Alternative Fuel Toolkits to provide alternative fuel readiness resources to key sectors in the region: Consumers, Fleets, Public Agencies, First Responders, and Retailers and Marketers. Utilizing the Assessment and Alternative Fuel Toolkits, Refuel San Diego created a comprehensive, regionally accepted Alternative Fuel Readiness Plan.

2 San Diego Association of Governments. San Diego Forward: The Regional Plan (http://www.sdforward.com/).

5 Mission of Refuel San Diego At its first meeting on October 16, 2014, San Diego Refuel discussed a draft mission, which was accepted at their second meeting on January 15, 2015, as the fundamental purpose of group: “To support innovative partnerships and to facilitate and develop a San Diego regional alternative fuel readiness plan that identifies, reduces or resolves barriers to the widespread deployment of AF infrastructure and vehicles; thereby showcasing the San Diego region as a national leader in AF readiness.” Goals of Refuel San Diego Refuel San Diego accepted the following goals to define the direction and a collective approach to discussing and addressing alternative fuels throughout the project: • To establish a regional alternative fuel coordinating council to help streamline practices and address barriers to alternative fuel adoption as well as provide real-time learning and sharing across jurisdictions and to diverse stakeholders involved in alternative fuel readiness. • To provide input toward a regionally accepted comprehensive alternative fuel Readiness Plan that leverages past planning efforts, addresses barriers and complexities, and lays the framework for future alternative fuel planning efforts. • To provide consistent messages across jurisdictions, agencies, dealerships, consumers, companies, educational institutions, fuel providers and others about alternative fuels. • To leverage and foster partnerships among government, business, academia, and other organizations to promote alternative fuel deployment and support economic development in the region. Charter of Refuel San Diego The Refuel San Diego Charter states that the purpose of this coordinating council is to support innovative partnerships and to facilitate and develop a regional alternative fuel readiness plan that identifies, reduces and/or resolves barriers to promote the widespread deployment of alternative fuel infrastructure and vehicles across the San Diego region. • Maximize the benefits of alternative fuels while enhancing quality of life, protecting environment, promoting sustainability, and offering more mobility options. • Share information on alternative fuel readiness planning. • Disseminate best practices and alternative fuel deployment materials. • Develop policy approaches that reduce or remove barriers to region-wide alternative fuel readiness. Approach to Achieve Project Purpose SANDAG was the program administrator responsible for overall program content, performance and deliverables to the Energy Commission. SANDAG contracted with CSE on behalf of the SDRCCC, to provide support for the coordinating committee, dissemination of activities and materials, and development of alternative fuel toolkits and alternative fuel readiness plan components. SANDAG and CSE collaborated on the management of Refuel San Diego quarterly and subcommittee meetings.

6 The approach taken to ensure the operational success of Refuel San Diego included: 1. Strong communication via multiple avenues (websites, council/subcommittee meetings, emails, and other local and regional meetings/forums); 2. Open meetings at publicly accessible venues (publicly noticed in accordance with The Brown Act—a state law that ensures actions and deliberations of public bodies of local agencies are taken openly and with public access and input); and 3. Consensus-building across diverse regional stakeholders (local and regional public agencies, Caltrans, academic institutions, local utility, fleet managers, industry from both fuel and [Original Equipment Manufacturer]s, and other interested parties from throughout the region). SANDAG has extensive experience using stakeholder groups to develop policies and projects. We held fuel specific subcommittee meetings and brought all materials through the coordinating council early in their development. This approach led to robust discussions and wide engagement on alternative fuel readiness issues from Refuel San Diego and interested members of the public. Refuel San Diego activities were intended to leverage previous alternative fuel planning efforts from the broader alternative fuel industry and leverage existing efforts to engage alternative fuel stakeholders, assess training needs in the region, and expand upon the data collected in the SDRCCC annual report. The approach to developing the Alternative Fuel Readiness Plan was to focus alternative fuel specific Refuel San Diego subcommittee meetings on barriers identified by the collective coordinating council, specific to a fuel type from government officials, project developers, fuel suppliers, vehicle manufacturers, and others. From those discussions combined with interviews and research, the project team prepared sector-specific Alternative Fuel Toolkits for immediate use by Refuel San Diego members and others across the San Diego region. Refuel San Diego addressed each barrier individually, in what was determined to be the most effective means for addressing it, while leveraging other available resources, and capturing relevant information in the Alternative Fuel Toolkits. Table 1-1 in Chapter 1 of the San Diego Regional Alternative Fuel Readiness Plan lists the barriers and how each barrier was addressed. Chapter 6 of the San Diego Regional Alternative Fuel Readiness Plan details each of the barriers by category, the action item for each barrier, how it was addressed, and what continued effort is needed in order to gauge overall project success. Membership of Refuel San Diego Refuel San Diego was established as a multi-stakeholder forum to share information, identify regional barriers, and advise on the development of an alternative fuel readiness plan. It comprises voting, local government, and advisory members. Stakeholders from local and regional public agencies, San Diego Gas & Electric (SDG&E), industry, fleet managers, and other interested parties from throughout the region participated on Refuel San Diego. A complete list of Refuel San Diego members can be found in Tables 1 and 2 in Chapter 2 of this report.

7 CHAPTER 2: Activities Performed, Data Collection, and Results

Activities Performed Refuel San Diego was established as a forum to identify regional barriers to alternative fuel deployment, to share lessons learned, identify gaps in funding, resources, and training. The preparation of the Assessment, the Alternative Fuel Toolkits, and the Alternative Fuel Readiness Plan all were developed with the support of Refuel San Diego. Refuel: San Diego Regional Alternative Fuel Coordinating Council The formation of a coordinating council was a direct deliverable required by the Energy Commission grant agreement (Agreement). As described in Chapter 1 of this report, Refuel San Diego was established as a forum to identify local barriers to alternative fuel deployment, share ideas, and develop solutions for overcoming these barriers. Refuel San Diego was intended to build upon the groundwork established by the Regional Electric Vehicle Infrastructure, to address all alternative fuels and to continue to lay the framework for future alternative fuel planning efforts. Refuel San Diego meet quarterly at CSE with smaller fuel-specific subcommittee meetings occurring more frequently. Meetings were noticed by SANDAG and the SDRCCC and open to the public. All meeting agendas, summaries, minutes, presentations, and other materials are posted online at the SANDAG website: www.sandag.org/refuel and www.sdcleancities.org/refuel. A list of Refuel San Diego Voting and Advisory Members is included as Table 2 and 3.

Table 2: Refuel San Diego Voting Members REFUEL SAN DIEGO VOTING MEMBERSHIP LIST JURISDICTION / MEMBER / REPRESENTATION NAME ORGANIZATION ALTERNATE South County Subregion City of Chula Vista Barbara Locci Member North County Coastal City of Carlsbad Mike Grim Member Subregion City of Oceanside Mo Lahsaie Alternate North County Inland City of Escondido Jeff Wyner Member Subregion East County Subregion City of Santee Kathy Valverde Member City of San Diego Jacques Chirazi Member County of San Diego Susan Freed Member Anna Lowe, Co- Member San Diego Association of Governments Chair Susan Freedman Alternate San Diego Regional Airport Authority Brendan Reed Member Chris Schmidt, Caltrans, District 11 Member Chair Michelle White Member Unified Port District of San Diego Kellie Carlson Alternate

8 REFUEL SAN DIEGO VOTING MEMBERSHIP LIST JURISDICTION / MEMBER / REPRESENTATION NAME ORGANIZATION ALTERNATE Randy Schimka Member San Diego Gas & Electric Greg Haddow Alternate Center for Sustainable Energy Colin Santulli Member University of California, San Diego Jim Ruby Member Miramar College, Advanced Transportation Greg Newhouse Member Technology and Energy Program San Diego County Air Pollution Control District Nick Cormier Member Source: SANDAG

Table 3: Refuel San Diego Voting Members (all advisory) REFUEL SAN DIEGO ADVISORY MEMBERSHIP LIST JURISDICTION / ORGANIZATION NAME City of Coronado Bill Cecil City of Del Mar Kristen Crane City of El Cajon Matt Lyer City of Encinitas Bryce Wilson City of Imperial Beach Chris Helmer City of La Mesa Howard Lee City of Lemon Grove Mike James City of National City Ray Pe City of Poway Eric Heidemann City of San Marcos Lisa Fowler City of Vista Lyn Dedmon Metropolitan Transit System Sharon Cooney North County Transit District Vacant Department of Defense/Military David Powell San Diego Regional Clean Cities Coalition Kevin Wood Energy Policy Initiatives Center Nilmini Silva-Send University of San Diego Michael Catanzaro San Diego Regional Chamber of Commerce Mike Evans CleanTECH San Diego Jason Anderson

Source: SANDAG 9 Refuel Meeting Schedule Refuel San Diego held two types of meetings; full quarterly meetings and smaller fuel specific subcommittee meetings. The full quarterly meetings provided an opportunity to bring all stakeholders together to discuss regional issues, legislative updates, share new opportunities, and progress on project deliverables. In addition to the Refuel San Diego meetings, additional Alternative Fuel Toolkit and Alternative Fuel Readiness Plan outreach took place. Other local events, supported by the Refuel San Diego project partner, SDRCCC, were shared with the Refuel San Diego membership and interested stakeholder distribution lists and encouraged to attend.

10 Table 4: Refuel San Diego Meeting and Outreach Schedule Refuel: Refuel Subcommittee Meetings Toolkit Outreach Readiness Plan Acceptance Meeting Q - Mtgs Electricty Natural Gas Propane Biofuel Hydrogen October 10/16/2014 2014 November 11/19/2014 December January 1/15/2015 1/8/2015 1/12/2015 February 2/26/15 March 3/12/15 April 4/16/2015 4/22/15 4/2/15* May June 6/11/2015 7/21/2015 SDRCCC Fleet Mgr July 7/15/2015 7/9/2015 7/22/2015 1-on-1 w/ Carlsbad 2015 August 8/28/2015 8/21/2015 SoBEAC 9/13/2015 SDAPCD Detailed Input September 9/15/2015 9/15/2015 FSP Training** 10/14/2015 1-on-1 w/ Expo Propane 10/19/2015 Distributed to SDRCCC 10/20/2015 1-on-1 w/ Airport October 10/15/2015 10/27/2015 NoCEAC November 11/12/2015 EWG / TWG December January 1/21/2016 1/14/2016 Public Workshop 1/28/2016 SANDAG EWG 2016 February 2/5/2016 SANDAG RPC March 2/26/2015 SANDAG BOD *Refuel as a collaborator **Refuel training - NOT toolkit outreach meeting dates indicate toolkit outline presentation and discussion Bolded Source: SANDAG

11 Alternative Fuel Assessment The San Diego Regional Alternative Fuel Readiness Assessment provides an overview of the current state of alternative fuels in the San Diego region in order to: 1) identify regional barriers to alternative fuel deployment; 2) better inform the creation of sector-specific alternative fuel toolkits; and 3) inform development of a regional alternative fuel readiness plan. The Assessment addressed the following alternative fuels; biodiesel, electricity, ethanol (flex fuel/E85), hydrogen, natural gas such as compressed natural gas and liquefied natural gas, and propane autogas such as . The Assessment used three main data sources- existing conditions, survey results, and the regional alternative fuel barriers table. The San Diego Regional Alternative Fuel Existing Conditions Report detailed the current alternative fuel conditions in the San Diego region and documented past regional alternative fuel planning efforts and projects, including existing regional alternative fuel infrastructure, vehicles, funding, training, and other local gaps to deployment. With the completion of the Existing Conditions Report, a survey was administered to local governments, public agencies, transit providers, utility, and other local businesses to determine the level of knowledge of and comfort with alternative fuels in the San Diego region. The survey results provided the Assessment with information on the level of alternative fuel awareness and usage characteristics of public and private fleets. It also helped determine the most desirable resources sought after by both public agency and alternative fuel adopting fleet respondents, as illustrated in Figures 1 and 2.

12 Figure 1: Survey Results - Resources Desired by Public Agency Respondents

Source: SANDAG

13 Figure 2: Survey Results - Resources Desired by Alternative Fuel Fleet Managers

Source: SANDAG

14 Together, the Existing Conditions Report and the survey results fed into the Assessment, which documented the current state of alternative fuels in the region. The Assessment highlights the San Diego region’s current alternative fuel ecosystem and helped Refuel San Diego establish a baseline from which they would identify barriers to deployment. Identification and Prioritization of San Diego Regional Barriers The Assessment provided a regional alternative fuels baseline for Refuel San Diego, which was used to identify barriers to alternative fuel deployment in the region. Barriers were classified into three categories: education, infrastructure, and vehicle. Table 5 summarizes each barrier.

Table 5: Refuel San Diego Alternative Fuel Barriers Barrier Description EDUCATION: Lack of public Lack of knowledge and misconceptions knowledge about alternative about alternative fuels, and advanced fuels vehicle technology. Lack of training and education about EDUCATION: Training and alternative fuels, and advanced vehicle education for municipal staff technology and how to plan for and service them. EDUCATION: Training and Lack of safety and technical training for education for emergency alternative fuel vehicle and alternative personnel and transportation fuel infrastructure. fleet staff Discourage PEV charging during high- EDUCATION: Time-of-use utility cost peak hours and support grid rates/grid integration reliability. Need for increased guidance on INFRASTRUCTURE: Station alternative fuel station installation development: codes and processes, and how city staff and station permitting developers can work together to ease the station deployment process. Station developers encounter site- specific challenges to installations, INFRASTRUCTURE: Station including right of way and easement development: site assessment issues. Station locations should consider fleet routes. Lack of alternative fuel vehicle adoption due to limited fueling infrastructure INFRASTRUCTURE: Access to within proximity to fleets and the public. public alternative fuel stations Lack of station access for heavy-duty vehicles. Lack of knowledge by MuD property owners and residents about the INFRASTRUCTURE: Electric installation of EVCS. Coordinate with vehicle charging stations (EVCS) Home Owners Associations to identify at multi-unit dwellings (MuDs) and find solutions to unique building challenges.

15 Barrier Description INFRASTRUCTURE: Workplace Lack of understanding regarding benefits charging and approaches to workplace charging. Need justification/incentives due to lack INFRASTRUCTURE: of capital for higher station construction Infrastructure costs and operation costs. Advise municipal staff and businesses on VEHICLE: Selecting appropriate identifying alternative fuels that will alternative fuel vehicles meet fleet needs. Initial higher costs of alternative fuel VEHICLE: Procuring and financing vehicles are a barrier to adoption; more alternative fuel vehicles information about incentives for procuring alternative fuel vehicles. Lack of understanding about conversion VEHICLE: Converting regulations, conversion kits, or conventional vehicles to an companies that provide conversion alternative fuel services. Lack of comfort with emerging alternative fuel vehicle technology is a VEHICLE: Alternative fuel vehicle barrier causing consumers to delay technology investment until there is confidence in reliability. Source: SANDAG Sector Specific Alternative Fuel Toolkits Refuel San Diego, in both the full quarterly meetings and in the smaller fuel specific subcommittee meetings, discussed barriers, resources, and gaps to deployment of alternative fuels relevant to specific audiences. Through those discussions, the SANDAG Regional Energy Working Group developed five sector-specific Toolkits. Each Alternative Fuel Toolkit was designed to be used as a stand-alone document for each of the specific audiences identified by Refuel San Diego. These audiences are: • Consumers • Public Agencies • Fleets • First Responders • Fuel Marketers and Retailers The Alternative Fuel Toolkits for Consumers, Public Agencies and Fleets include sections specific to each fuel type: biodiesel, electricity, ethanol, hydrogen, natural gas, and propane autogas. The Alternative Fuel Toolkit for Fuel Marketers and Retailers includes information on each fuel type. The Alternative Fuel Toolkit for First Responders is less focused on individual fuel types and more about why training is needed, where it is offered, and how to pay for it.

16 Data Collection Refuel San Diego leveraged existing data sources, such as the SDRCCC Annual Report, the Energy Commission’s Statewide PEV Infrastructure Assessment3, and the Department of Energy’s Alternative Fuels Data Center. They also leveraged survey results and quantified the current and targeted alternative fuel infrastructure coverage for the region. Data identified, collected, and quantified was presented at Refuel San Diego meetings, shared with interested stakeholders, and further highlighted the need for the Alternative Fuel Toolkits and supported the identification of barriers. Existing Conditions Data Collection The data collected in preparation of the Assessment identified the number of existing alternative fueling stations and vehicles in the San Diego region, which established the baseline for what could potentially be considered a preliminary attempt at quantifying “our theoretical fair share” of state petroleum reduction/alternative fuel targets. The Figures 3 and 4 highlight the growth in alternative fuel infrastructure and vehicles in the San Diego region.

Figure 3: San Diego County Public Alternative Fuel Infrastructure Growth, 1991- 2015

Source: SANDAG

3 Melaina, Marc, Michael Helwig. (National Renewable Energy Laboratory). 2014. California Statewide Plug-In Electric Vehicle Infrastructure Assessment. California Energy Commission. Publication Number: CEC-600-2014- 003.

17 Figure 4: New Alternative Fuel Light-Duty Vehicle Sales San Diego County, 2010- 2014

Source: SANDAG Existing Conditions Coverage Maps Through an analysis of the location of alternative fuel infrastructure in San Diego County (detailed in Appendix E of the San Diego Regional Alternative Fuel Assessment), SDRCCC determined how many residences and businesses could be served by a given alternative fueling station. Table 5 shows the percentage of San Diego County residences and businesses within a five-mile radius of a public alternative fueling station.

Table 6: San Diego County Alternative Fuel Station Coverage (2014) All Residences All Businesses

CNG 47 percent 57 percent

Propane 66 percent 78 percent

Ethanol 48 percent 50 percent

Biodiesel 29 percent 35 percent

Electric (DC Fast Charger) 78 percent 88 percent

Source: SANDAG

18 The percent coverage included as Table 5, was translated into maps to further illustrate the region’s existing station coverage as shown in Figures 5-9.

Figure 5: San Diego County Electric Vehicle Charging Station Coverage with a Five- Mile Radius of Business Sites (2014)

Source: SANDAG

19

Figure 6: San Diego County Propane Autogas Fueling Station Coverage with a Five Mile Radius of Business Sites (2014)

Source: SANDAG

20 Figure 7: San Diego County Compressed Natural Gas Fueling Station Coverage with a Five-Mile Radius of Business Sites (2014)

Source: SANDAG

21 Figure 8: San Diego County Ethanol Fueling Station Coverage with a Five Mile Radius of Business Sites (2014)

Source: SANDAG

22 Figure 9: San Diego County Biodiesel Fueling Station Coverage with a Five Mile Radius of Business Sites (2014)

Source: SANDAG Results The existing San Diego County alternative fueling station inventory and access exercise led to the quantification of targeted coverage (see Section 4 of the San Diego Regional Alternative Fuel Readiness Plan). The targeted coverage is based on providing fueling access to the majority of businesses and residents in the region. The targeted coverage percentages would provide enough refueling stations for the region to meet what would be “our theoretical fair share” of state petroleum reduction/ alternative fuel targets (Table 6).

Table 7: Current and Targeted Alternative Fuel Infrastructure Coverage for San Diego County (January 2016) Fuel Audience Current Targeted Coverage Coverage Biodiesel Business 13% 50% Biodiesel Resident 10% 40% Electricity – Business 62% 75% Direct Current Fast Charger Electricity – Resident 45% 70% 23 Fuel Audience Current Targeted Coverage Coverage Direct Current Fast Charger Ethanol Business 42% 60% Ethanol Resident 29% 60% Hydrogen Business 2% 30% Hydrogen Resident 2% 30% CNG Business Only 44% 70% Propane Autogas Business Only 50% 65% Source: SANDAG The current and targeted alternative fuel infrastructure coverage was mapped for both residences and business within two and a half miles by fuel type as shown in Figures 10-19.

Figure 10: Biodiesel Infrastructure Coverage within 2.5 Miles - Residences

Source: SANDAG

24 Figure 11: Biodiesel Infrastructure Coverage within 2.5 Miles - Businesses

Source: SANDAG

25 Figure 12: Electricity (DC Fast Charger) Infrastructure Coverage within 2.5 Miles - Residences

Source: SANDAG

26 Figure 13: Electricity (DC Fast Charger) Infrastructure Coverage within 2.5 Miles - Businesses

Source: SANDAG

27 Figure 14: Ethanol (E85) Infrastructure Coverage within 2.5 Miles - Residences

Source: SANDAG

28 Figure 15: Ethanol (E85) Infrastructure Coverage within 2.5 Miles - Businesses

Source: SANDAG

29 Figure 16: Hydrogen Infrastructure Coverage within 2.5 Miles - Residences

Source: SANDAG

30 Figure 17: Hydrogen Infrastructure Coverage within 2.5 Miles - Businesses

Source: SANDAG

31 Figure 18: Natural Gas (CNG) Infrastructure Coverage within 2.5 Miles - Businesses

Source: SANDAG

32 Figure 19: Propane Autogas Infrastructure Coverage within 2.5 Miles - Businesses

Source: SANDAG

Future Infrastructure Investment Needs Based on the targeted coverage analysis, CSE developed two preliminary scenarios – a low case and high case –to estimate the level of investment necessary for the San Diego region to be considered ready to support the large-scale influx of vehicles run on each alternative fuel. The low case estimates how many stations would be necessary to reach the targeted coverage of residential and business sites using a two and a half mile radius. The high case envisions a scenario where infrastructure is ubiquitous throughout the region, with redundancies in fueling infrastructure similar to gasoline stations. Using approximate station costs, Table 8 estimates the costs to build out this comprehensive fueling infrastructure for the region and exemplifies the need for ongoing funding to realize the region’s alternative fuel needs.

33 Table 8: Infrastructure Investment Needs to Support Widespread Adoption in the San Diego County Additional Stations Needed Cost Per Investment Costs (in Station millions) Fuel Type Low High Case Low Case High Case Case Biodiesel 11 25 $300,000 $3.30 $7.50 DC Fast Chargers 15 104 $60,000 $0.90 $6.24 L2 EVCS 1,140 3,540 $5,000 $5.70 $17.70 Ethanol 5 22 $300,000 $1.50 $6.60 Hydrogen 9 20 $2,000,000 $18.00 $40.00 CNG 9 30 $1,200,000 $10.80 $36.00 Propane Autogas 5 10 $50,000 $0.25 $0.50 Total Cost: $40.45 $114.54 Source: SANDAG

34 CHAPTER 3: Technological Advancements and Success of the Project

Technological Advancements Vehicle to Grid Integration Vehicle-grid integration (VGI) encompasses approaches for plug-in electric vehicles (PEV) to provide services to the grid. The California Independent Systems Operator released the California Vehicle-Grid Integration Roadmap: Enabling vehicle-based grid services (February 2014), which is intended as a map toward developing solutions that enable electric vehicles to provide grid services while still meeting consumer-driving needs. Over the course of this project, SDG&E had been working with the California Public Utilities Commission on a VGI pilot program that would be unique to the San Diego region. Concurrently, SDG&E has served as a member of Refuel San Diego and Regional Electric Vehicle Infrastructure before that in support of regional readiness planning. Refuel San Diego and its Electricity Subcommittee were provided updates on VGI progress to ensure that the SDG&E pilot would be consistent with regional readiness needs. This pilot opportunity has the potential to help many of the public agencies in the San Diego region make progress toward meeting their climate and petroleum reduction goals. The California Public Utilities Commission approved the SDG&E pilot, Power Your Drive, in January 2016 with purpose of installing 3,500 electric vehicle-charging stations at 350 workplaces and multi-unit dwellings. The four-year pilot authorization includes $45 million for charging infrastructure, plus limited, reasonable operations and maintenance expenses to be considered in future General Rate Cases. The coordination during Refuel San Diego resulted in SANDAG being included in the California Public Utilities Commission Decision 16-01-0454 to participate on a SDG&E VGI pilot Advisory Council to maintain consistency with previous and ongoing regional readiness planning. Further, several Refuel San Diego members have signed up for the VGI pilot, including the cities of Carlsbad, Chula Vista, and San Diego as well as the Port of San Diego.

Renewable Diesel Renewable diesel is defined by the U.S. Department of Energy’s Alternative Fuels Data Center as a conventional diesel fuel substitute produced from nonpetroleum renewable resources. GHG and air-quality benefits of biodiesel are generally proportionate to the amount of biodiesel in the blend.

4 Decision Regarding Underlying Vehicle Grid Integration Application and Motion to Adopt Settlement Agreement Decision 16-01-045, January 28, 2016, (http://docs.cpuc.ca.gov/publisheddocs/published/g000/m158/k241/158241020.pdf).

35 In early 2015, Propel Fuels made renewable diesel available on a large scale in California by using a low-carbon renewable fuel that meet petroleum diesel specifications for use in diesel engines while realizing the benefits of better performance and lower emissions. The Refuel San Diego Biofuel Subcommittee discussed the availability and accessibility of diesel fuel, specifically as it relates to heavy duty vehicles. If renewable diesel is readily available, it could easily replace traditional diesel without vehicle modifications. This type of no-cost alternative could move a harder to reach market with little disruption to business-as- usual, all while reducing GHG emissions. Renewable Natural Gas Renewable natural gas also known as biomethane is produced from organic materials, like waste from landfills and livestock, using anaerobic digestion. Because Renewable natural gas is chemically identical to fossil-derived conventional natural gas, it can use the existing natural gas distribution system. Renewable natural gas must be compressed or liquefied for use as a vehicle fuel. Renewable natural gas is becoming more widely available, as is the use of biodigester technology. With digesters being installed on fuel source sites like farms and landfills, converting waste-to-energy is becoming a cost effective possibility for greatly increasing Renewable natural gas supplies. The potential for increased availability of Renewable natural gas for use in existing natural gas vehicles was discussed at the Refuel San Diego Natural Gas Subcommittee as an alternative to traditional natural gas fuel sources, such as fracking. Fracking has become a contentious issue for many public agencies in the region due to concerns about the environmental effects of the extraction process. A renewable alternative would allow for continued use of natural gas vehicles with less impact on the environment. Clean Energy, a Refuel San Diego participant, began selling Renewable natural gas to its natural gas clients in the San Diego region including the University of California, San Diego, a Refuel San Diego member. Together, they shared their local experiences with Renewable natural gas Renewable natural gas from supplier and end-user perspectives. Hearing first-hand from local stakeholders about this “Fracking Free” natural gas option generated much interest in stakeholders to investigate options for their fleets. Cellulosic Ethanol The Alternative Fuels Data Center asserts that almost any plant-based material can be an ethanol feedstock, noting the sugars within the plants can be fermented to make ethanol. Cellulosic feedstocks are non-food based feedstocks that include crop residues, wood residues, dedicated energy crops, and industrial and other wastes. It is more challenging to release the sugars in these feedstocks for conversion to ethanol; however, they offer many advantages because they are abundant and are either waste products or purposefully grown energy crops harvested from marginal lands not suitable for other crops. While this technology is still in its infancy, it is still of interest and a topic of discussion during a Refuel San Diego Biofuel Subcommittee meeting, primarily because so many of their fleet vehicles are E85 compatible. Researchers are currently studying this to determine effective and affordable solutions to cellulosic feedstocks. A limited-commercial scale quantity was eventually released during the project period. 36 Measuring Success of the Project The goal of Refuel San Diego and the Alternative Fuel Readiness Plan (Alternative Fuel Readiness Plan) was to continue and expand upon previous regional alternative fuel planning efforts, to further the deployment of alternative fuel vehicles and infrastructure, and to help the region achieve its energy and climate goals through audience relevant Alterative Fuel Toolkits. These Alternative Fuel Toolkits include specific resources and tools to address the independent barriers faced by specific sectors and helped with the development of the Alternative Fuel Readiness Plan. Achievement of Refuel San Diego Project Goals Table 9 describes project achievements as they relate to the project goal as described in the Agreement.

Table 9: SANDAG ARV-13-013 Agreement Project Goal GOAL: The goal of the Agreement is to expand on previous alternative fuel planning efforts that address electric vehicle readiness to address the increased 100% use of other alternative transportation fuels in the San Diego region. EXPLANATION: The San Diego Regional Alternative Fuel Readiness Plan was prepared leveraging previous PEV readiness planning efforts, such as the California Plug-in Electric Vehicle Collaborative, and other existing resources, successes and lessons learned from public agencies, academia, nonprofits, and industry stakeholders from throughout the region. For the purpose of this Agreement, alternative fuels include biodiesel, electricity, ethanol, hydrogen, natural gas, and propane autogas.

Source: SANDAG Achievement of Refuel San Diego Project Objectives Table 10 describes project achievements as they relate to the project objectives as described in the Agreement.

Table 10: SANDAG ARV-13-013 Agreement Project Objectives OBJECTIVE: Create a forum to gain input from stakeholders 100% and allow for peer-to-peer exchange of ideas. EXPLANATION: Refuel: San Diego Regional Alternative Fuel Coordinating Council was established and held six full quarterly meetings and eleven fuel specific subcommittee meetings. OBJECTIVE: Assess the current state of alternative fuels in the region with regard to funding and incentives available, 100% policies and training programs in place, and data available on alternative fuel infrastructure and fuel use. EXPLANATION: Center for Sustainable Energy, on behalf of the San Diego Regional Clean Cities Coalition, surveyed local governments, public agencies, transit providers, utility, and other local businesses to gauge familiarity with and understanding of alternative fuels. Second to the survey was the development of the San Diego Regional Alternative Fuel Existing Conditions Report (Existing Conditions Report), which documented existing regional alternative fuel infrastructure, vehicles, funding, training, and the like. Together, the Survey and Existing

37 Conditions Report, fed into the San Diego Regional Alternative Fuel Assessment (March 2015), which assessed and documented the current state of alternative fuels in the region. OBJECTIVE: Identify alternative fuel training, infrastructure, 100% policy and funding gaps. EXPLANATION: Through the activities described in Objective 2, gaps were identified in training, infrastructure, policy, and funding. It also was noted that general alternative fuel knowledge, applications, and best practices were lacking. Section 6 of the San Diego Regional Alternative Fuel Readiness Plan describes the barriers identified and how they were or should be addressed. OBJECTIVE: Create sector-specific toolkits to provide resources to key stakeholders in alternative fuel readiness, 100% such as fleet managers, local government staff, fuel providers, and vehicle dealers. EXPLANATION: Refuel San Diego in both the full quarterly meetings and in the smaller fuel specific subcommittee meetings discussed barriers, resources, and gaps to deployment of alternative fuels relevant to specific audiences. Through those discussions and in smaller more localized local government, the SANDAG Regional Energy Working Group, and other forums for dissemination and input, five sector-specific Alternative Fuel Toolkits for Consumers, Public Agencies, Fleets, First Responders, and Fuel Marketers and Retailers were developed. The Alternative Toolkits are intended to be used as individual resources and separate from the Alternative Fuel Readiness Plan. OBJECTIVE: Address identified needs and challenges in the 100% San Diego Regional Alternative Fuel Readiness Plan. EXPLANATION: Refuel San Diego identified barriers to regional alternative fuel deployment through the full quarterly meetings and the subcommittee meetings, as well as a public workshop and other local forums for sharing and soliciting feedback on the Alternative Fuel Readiness Plan. The SANDAG Board of Directors accepted the San Diego Regional Alternative Fuel Readiness Plan on February 26, 2016 as a regional resource.

Source: SANDAG

38 CHAPTER 4: Observations, Conclusions, and Recommendations

Observations The San Diego region has made noticeable progress in the adoption of alternative fuels, although they still equate to a small portion of the region’s overall total fuel use. Light-duty flex fuel vehicles and plug-in electric vehicles, in particular, have been growing steadily in number; however, 80 percent of the region’s light-duty vehicles use conventional gasoline. Alternative fuel infrastructure also is limited in number but continues to grow and does cover a large portion of the region’s business and residents. Since 2011, the region has benefitted from over $19 million in State investment, in terms of grants and vehicle rebates, for alternative fuel projects. Prior to the Refuel San Diego project (pre May 2014), the region had received $9.1 million. Since that time, the San Diego region has received an additional $10 million (through December 2015), more than doubling the funding available to advance alternative fuels in just over a year and a half. The successful strides to bring state resources to the local level at such a rate exemplify the region’s commitment to communitywide adoption of alternative fuels. Stakeholder Participation Refuel San Diego meetings were held from October 2014 through January 2016. The quarterly meetings (six meetings) provided a forum for cross-fuel communications, discussions, alternative fuels information sharing, and project progress updates. The smaller fuel-specific subcommittee meeting offered a more intimate dialogue on the unique challenges facing individual fuels and served as the venue to refine the Alternative Fuel Toolkits and resources (eleven meetings). The variety and number of stakeholders participating throughout the project exceeded expectations. Program Collaboration The variety of the stakeholders that participated in Refuel San Diego provided opportunities, perspectives, and insights, that would not have otherwise been shared across sectors and representatives. The diversity of this group was critical to the regional acceptance of the Alternative Fuel Toolkits and Alternative Fuel Readiness Plan as resources to help further the deployment of alternative fuels. Further, through smaller fuel specific subcommittee meetings, stakeholders were able to share lessons learned through personal/agency experiences, which helped, reduce redundancies and supplemented the resources developed. In addition to the resources developed, Refuel San Diego’s diverse membership provided new opportunities to participate in local workshops, trainings, and other meetings. Refuel San Diego leveraged events include those offered through SDRCCC, in conjunction with the Governor’s Office of Business and Economic Development, California Partnership, and others (see Table 3: Refuel San Diego Meeting and Outreach Schedule for a complete list of outreach events).

39 Conclusions and Major Findings Through extensive Refuel San Diego discussions and outreach to local stakeholders, including local governments, alternative fuel industry representatives, and fleet managers, it is clear that more conversations and education about alternative fuels and their benefits are necessary for mass deployment. Things like training modules and basic, digestible, and applicable resources need to continue to be developed and updated as technologies, policies, regulations, and standards change. As described in section 4.1, overall funding remains necessary to support broader build-out of infrastructure and vehicle adoption. Climate Action Plans Motivate Alternative Fuel Deployment Climate Action Plans have become a tool for identifying and reducing GHG emissions within a jurisdiction. Climate Action Plans include mitigation measures to reduce the GHG emissions, typically by sector, including transportation. Many plans have identified the use of alternative fuels as a means for doing so. The San Diego region comprises 18 cities and the County of San Diego. Of those 19 local jurisdictions, eight have completed plans, five are in the process of developing one, and two are considering one. Furthermore, there are a number of public and academic agencies such as the San Diego International Airport and Port of San Diego, institutions that are also adopting or developing Climate Action Plans. Alternative fuels play a critical role in how the San Diego region, individually and collectively, will reduce GHG emissions. Forums, such as Refuel San Diego, are critical for continued collaboration, coordination, and regional consistency of alternative fuel deployment. Recommendations The Refuel San Diego project, through council and subcommittee meetings, outreach events, public workshops, and other forums, identified recommendations for both the State and the region, to help further the deployment of alternative fuels. Recommendations for the State The State of California is a leader in GHG emissions reductions efforts through policy and regulation, technology development, innovative partnerships, and funding opportunities. These efforts must continue if the state is to reach alternative fuel vehicle and infrastructure goals. The following recommendations were discussed to further the deployment of alternative fuels in the San Diego region in support of the state’s aggressive alternative fuel goals: • Continued and new funding for planning and infrastructure • New technologies are expensive and require not just physical installation, but also policy adjustments, regulation refinement, and education and outreach to inform the community members, policy makers, policy implementers, and helping local government lead by example with reduced concern for risk. • Policy and regulatory direction • Policy and regulation drives action in most local governments and public agencies. Each entity may decipher these laws or guidance documents, individually or collectively, with variation, the potential variation in interpretation and application can create confusion and inconsistent and a disconnected alternative fuel network. More definitive direction from the state could help streamline and ease alternative fuel infrastructure deployment and market penetration. • Ongoing education and outreach to help 40 • Outreach and education continues to be a critical component in the advancement of alternative fuels. Helping public agencies, fleet managers, consumers, elected officials, and others understand the purpose, function, and benefit of these fuel types, demystifies the technology and will help further adoption. Recommendations for the San Diego Region The Alternative Fuel Readiness Plan captures Refuel San Diego’s recommendations for the San Diego region. It concludes with five recommendations that identify immediate actions and long-term planning objectives to further prepare the San Diego region for the deployment of alternative fuel vehicles and infrastructure as determined by Refuel San Diego. They are intended to help increase the awareness, accessibility, and use of alternative fuels while reducing GHGs. Each recommendation identifies the lead parties and strategies to implement them as detailed in Section 8 of the San Diego Regional Alternative Fuel Readiness Plan. The recommendations are: • Continue to emphasize alternative fuels as a key strategy in the region’s GHG reduction efforts. • Continue to align alternative fuel policies across all local agencies in support of regional air quality attainment and other goals. • Seek new funding sources for alternative fuel and infrastructure deployment. • Enhance education and outreach efforts to promote awareness of alternative fuel options. • Accelerate market growth through workforce development, training, and local entrepreneurship.

41

GLOSSARY

CENTER FOR SUSTAINABLE ENERGY (CSE) —is a nonprofit energy program administration and advisory services organization.5 COMPRESSED NATURAL GAS (CNG)—Natural gas that has been compressed under high pressure, typically between 2,000 and 3,600 pounds per square inch, held in a container. The gas expands when released for use as a fuel. ELECTRIC VEHICLE (EV)—A broad category that includes all vehicles that are fully powered by electricity or an electric motor. GREENHOUSE GAS (GHG)—Any gas that absorbs infrared radiation in the atmosphere. Greenhouse gases include water vapor, carbon dioxide (CO2), methane (CH4), nitrous oxide (NOx), halogenated fluorocarbons (HCFCs), ozone (O3), perfluorinated carbons (PFCs), and hydrofluorocarbons (HFCs). SAN DIEGO ASSOCIATION OF GOVERNMENTS (SANDAG) — public agency serves as the forum for regional decision-making.6 SAN DIEGO REGIONAL CLEAN CITIES COALITION (SDRCCC) —Coalitions serve as the foundation of Clean Cities by implementing transportation projects in communities across the country. These public-private partnerships are comprised of businesses, fuel providers, vehicle fleets, state and local government agencies, and community organizations.7 SAN DIEGO GAS & ELECTRIC (SDG&E) — SDG&E is a regulated public utility that provides energy service to 3.6 million people through 1.4 million electric meters and 873,000 natural gas meters in San Diego and southern Orange counties.8 PLUG-IN ELECTRIC VEHICLE (PEV)—A general term for any car that runs at least partially on battery power and is recharged from the electricity grid. There are two different types of PEVs to choose from—pure battery electric and plug-in hybrid vehicles. VEHICLE-GRID INTEGRATION (VGI) — Helps align electric vehicle charging with the needs of the electric grid. To do this, electric vehicles must have capabilities to manage charging or support two-way interaction between vehicles and the grid.9

5 CSE Webpage (https://energycenter.org/about-us).

6 SANDAG Webpage (https://www.sandag.org/index.asp?fuseaction=about.home).

7 Clean Cities Coalition Homepage (https://cleancities.energy.gov/coalitions/).

8 SDG&E Webpage (https://www.sdge.com/more-information/our-company).

9 California Public Utilities Commission VGI Definition (https://www.cpuc.ca.gov/General.aspx?id=6442454110).

42