Oregon’s Clean Fuels Program (CFP): How The CFP Credit Market Works
September 10, 2023
Oregon’s Clean Fuels Program (CFP) was implemented in 2016 and encourages the widespread adoption of clean fuels throughout the transportation sector. Under the CFP, fleet and charging station owners across the state can earn CFP credits for their reduced greenhouse gas (GHG) emissions by taking advantage of low-carbon and alternate transportation fuels, including electric vehicles.
This article explains how the CFP credit system works and how EV fleet and charging station owners can optimize their earnings.
Oregon’s Clean Fuels Progam
The Clean Fuels Program is designed to encourage the widespread adoption of low-carbon and alternate fuels throughout the transportation sector, particularly electric, renewable gas and diesel, and hydrogen fuels. Fossil-based fuel suppliers throughout Oregon are required to lower the carbon intensity (CI) of their fuels to meet annual benchmarks, or purchase CFP credits to offset their carbon deficits. Suppliers of low-carbon fuels, including owners of electric vehicle (EV) chargers, can earn CFP credits for their reduced emissions, which can be sold to fuel suppliers in a deficit.
Earning CFP credits can enable owners of EV forklifts and charging stations to earn additional revenue simply by utilizing their electric vehicles.
The CFP Credit Market
The CFP credit system is the cornerstone of Oregon’s Clean Fuel Program, driving the transition towards low-carbon and alternative transportation fuels. The CFP credit system rewards fuel producers—including owners of EV charging stations—for supplying fuels with a lower carbon intensity than the annual standards set by the program.
Credit generators earn credits based on the amount of GHG emissions offset by utilizing electric vehicles and MHE, with one credit earned for every metric ton of carbon they offset through their EVs. This trading system creates a marketplace where the value of credits is determined by market dynamics between fossil-based fuel suppliers and suppliers of electric and low-carbon fuels, fostering economic competition that leads to reduced carbon emissions throughout the transportation sector. However, the value of credits is subject to fluctuation due to the supply and demand of the market, which can lead to credit generators missing out on earnings if they’re not well-versed in the credit market.
Optimizing Your Earnings
Credit generation is a viable and efficient way for EV fleet and charger owners owners to earn additional revenue through their fleets and electric equipment. While fleets of any size can participate in the program, fleet owners generate more credits with every EV they own, including:
- Transportation refrigeration units (TRUs)
While EVs are typically more expensive than traditional gas vehicles, EVs see a significantly faster return on investment, especially when fleet owners earn CFP credits through their electric equipment and charging stations. By transitioning to an electric fleet, fleet owners can invest in long-term savings, with many vehicles earning savings in as little as 14 months.
Learn more about how fleet owners can offset the costs of switching to electric: Success Stories: How Businesses Are Offsetting the Cost of Transitioning to Electric
Credit generators can optimize their earnings in the CFP market by taking advantage of partnerships that help them efficiently and thoroughly manage their credits. Smart Charging Technologies (SCT) is one of the largest credit aggregators along the West Coast and maintains positive relations with oil and gas suppliers, which enables SCT to sell CFP credits in bulk at the highest price while minimizing fluctuations in the CFP credit market.
SCT helps fleet owners enroll and report every eligible vehicle or charging station, maximizing their earnings without hassle. By partnering with SCT, you can ensure that every piece of equipment in your fleet is accounted for and earning CFP credits at the highest value.
Learn more about how partnering with SCT can help you optimize your Oregon CFP credits: Oregon’s Clean Fuels Program