California Air Resources Board

Principal Investigator/Author: Jan Kleissl

Contractor: University of California, San Diego

Contract Number: 23STC023

Project Status: Completed

Relevant CARB Programs: California Climate Investments, Greenhouse Gas Inventory Program

Topic Areas: Sustainable Communities, Sustainable Community Strategies (SCS), Climate Change

Research Summary:

Under California’s Cap-and-Trade program, the State’s portion of the proceeds from Cap-and-Trade auctions is deposited in the Greenhouse Gas Reduction Fund (GGRF). The Legislature and Governor enact budget appropriations from the GGRF for State agencies to invest in projects that help achieve the State’s climate goals. These investments are collectively called California Climate Investments.

Senate Bill (SB) 862 requires CARB to develop guidance on reporting and quantification methods for all State agencies that receive appropriations from the GGRF. Guidance includes developing quantification methodologies for estimating GHG emission reductions and other social, economic, and environmental benefits of projects, referred to as “co-benefits.” CARB develops quantification methodologies (QM) to provide project-level GHG emission or co-benefit estimates that are supported by empirical literature.

In 2018, California SB 1339 directed the California Public Utilities Commission (CPUC) to undertake activities to further develop policies related to microgrids. In 2021, the CPUC authorized the Microgrid Incentive Program in an effort to fund clean energy microgrids that can support the critical needs of vulnerable communities. With increased funding into new microgrid projects, there is a great need to be able to quantify microgrid benefits via a QM, namely, how much each proposed microgrid reduces GHG and air pollutant emissions, as well as other co-benefits, through the deployment of clean energy generation and energy storage technologies.

This project aims to develop a quantification method for understanding the impact that a microgrid project might have on a community and its effect on GHG and air pollutant emissions. It will compare various microgrid projects both qualitatively and quantitatively to ensure an effective quantification method is developed.

Keywords: greenhouse gas (GHG), emissions, microgrid, California Climate Investments, quantification methodology, co-benefits