POWER Program Design
ABAG POWER is committed to supporting the goals of the customers and communities we serve.
As part of this commitment, we hosted a series of outreach events in 2021 to discuss the State’s climate action goals driving an anticipated decline of natural gas use. These conversations were intended to frame products and programs offered by ABAG POWER, in order to better support a transition to renewable energy resources and to further reduce greenhouse gas emissions. Feedback received during these events was incorporated into a Stakeholder Engagement Report and Strategic Implementation Roadmap, both approved on December 16, 2021 by the ABAG POWER Executive Committee following a public comment period.
ABAG POWER Strategic Implementation Roadmap Priorities
The Strategic Implementation Roadmap (“Roadmap”) focuses on the development and implementation of various priorities identified below:
1: Enhanced Default Product
ABAG POWER’s default product will transition from fossil-based natural gas to fossil-based natural gas bundled with certified carbon offsets. Carbon offsets are a competitively priced option furthering project development for operations that indirectly mitigate the impact of combusting natural gas, which results in greenhouse gases emissions.
Calendar Year 2022
2: Low Carbon Transportation Fuel
Both the State and Federal government incentivize the use of compressed natural gas (CNG) as a vehicle fuel because CNG vehicles emit lower emissions profiles than gasoline or diesel-powered variants. ABAG POWER will participate in vehicle fuel programs to redeem credits that can be used to effectively offset cost premiums for other program design elements.
Calendar Year 2022
3. Senate Bill (SB) 1383-Compliant Renewable Natural Gas (RNG)
ABAG POWER members identified SB 1383 compliance as a major priority and near-term concern, and expressed widespread support for ABAG POWER fulfilling a procurement and/or reporting role to assist with compliance pathways. Staff will continue discussions aiming to secure SB 1383-compliant RNG to assist members in meeting their procurement obligations.
4: Transitional Electrification Incentives
Many members of ABAG POWER have identified electrification of buildings and vehicles as a primary method for achieving climate-related goals. ABAG POWER will offer a financial incentive to electrify these end-uses, funded through a voluntary volumetric surcharge coupled to natural gas usage. This incentive is intended to partially alleviate the up-front cost of electrifying equipment or vehicles.
Calendar Years 2022/2023
5: Transparent and Socially Responsible Supply
ABAG POWER will offer a voluntary "opt-up" product comprised of a blend of RNG, fossil-based natural gas purchased from disadvantaged business enterprises, and natural gas produced from organizations striving to actively reduce or mitigate greenhouse gas emissions.
Calendar Year 2023