June20,2016CaliforniaAirResourcesBoard1001IStreetSacramento,CA95814Via electronic submittal to: [email protected] Re:June2,2016WorkshopComments-InnovativeCrudeProposedAmendmentsGlassPointSolarInc.(GlassPoint)wassurprisedtoseeproposedchangestotheInnovativeCrudeprovisionsintherecentLowCarbonFuelStandard(LCFS)workshop.Wewerepleasedtobeabletoprovideinitialcommentsandweappreciatetheopportunitytoprovidethesewrittencommentsaswell.GlassPointisaCaliforniacompanythatmanufacturessolarsteamgeneratorsforthermalenhancedoilrecovery(EOR).Ourrenewableenergytechnologyhasprovenreliable,safeandeconomicalinfieldoperationsinCaliforniaandtheMiddleEast.WewerepleasedtobeselectedbytheU.S.StateDepartmentasoneofninefinalistsfortheSecretaryofState’sprestigious2014AwardforCorporateExcellence(ACE)forourtechnologyandcorporatebehavior.Solarpoweredoilproductiontechnologies—solarsteamgenerationandsolarelectricpowergeneration—havethepotentialtocontributetoCalifornia’seconomysignificantlywhilereducingcostsandrisksassociatedwithmeetingtheLCFS.1ThermalEOR,orsteaminjection,hasextendedthevalueandthelifeofCalifornia’soilfields.Today,thermalEORaccountsformorethan40%ofCalifornia’soilproductionandconsumesmorethan200MMMMBTUperyearoffuelforsteamgeneration.Solarenergycanreplaceasubstantialfractionofthatexistingfueluse,reducingemissionsresultingfromupstreamproduction.Ofthepotentialinnovativemethods,theuseofsolarenergyisthelowest-cost,lowest-risk,andlargest-scaleopportunitytoreducetheCIofCaliforniapetroleumfuels.GlassPointisreadytobuildnewlow-carbonprojectsinCaliforniawhichwillcontributetothestabilityofthesystemanddeliveremissionsreductionsandlowercostsforallstakeholders.Certaintyaboutthestabilityoftheregulationisaparamountrequirementforinvestment.TheexistingregulatorylanguagewasaresultofacooperativerulemakingprocessthatGlassPointbelievesisworkableforallInnovativeCrudestakeholders.Changesatthispointintimeshouldbeminimized,asthekeytotheInnovativeCrudeprovisionsiscertaintywithintheregulations.
1 January 2015, ICF Report: The Impact of Solar Powered Oil Production on California’s Economy, An economic analysis of Innovative Crude Production Methods under the LCFS. Previously submitted.
TheproposedrevisiontotheInnovativeCrudeprovisionswouldcreateuncertaintyinthemarketplaceandobstaclestothedeploymentofsolarprojects.GlassPointunderstandsthefundamentalconcernpresentedbystaff,butbelievestherearewaysinwhichtoaccomplishstaff’sgoalswithoutjeopardizingtheprogram.The2010mass-basedbaselinecrudeflowproposalcreatesseriousandmaterialunintendedconsequencesforprojectdevelopers.Ensuringprojectcreditcertaintyatthetimeofprojectapprovalneedstobeincorporatedintoanysuchamendments.GlassPointappreciatestherecentdiscussionsontheissueandlooksforwardtoseeingamendedlanguageinthenearfuturethataddressestheseconcerns.GlassPointstronglysupportsInnovativeCrudemechanismsandcalculationproceduresthatprovidecertaintytoprojects,andwouldsupportregulatorylanguagethataccomplishesthisgoal.Thankyoufortheopportunitytocommentandwelookforwardtotheconclusionofthisrulemaking,andtoworkingonbuildingalowercarboninfrastructureforCalifornia.
Sincerely,JohnO’DonnellVicePresident,BusinessDevelopment
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