SPECIAL REPORT
Selling Carbon Credits a Growing Incentive For School Districts
Written By Kari Lydersen S
chool districts in Cali- fornia can help fund the electrification of their bus fleets through selling cred-
its awarded under the state’s Low Carbon Fuel Standard (LCFS), and similar options could increasingly be available in other states. Under the program run by the
California Air Resources Board, districts can claim credits based on metric tons of carbon emis- sions avoided when they operate and charge electric buses. Those credits can be sold on the state’s carbon market—where industries and other entities that emit high levels of greenhouse gas (GHG) emissions buy credits to stay in compliance with the standard. Taking advantage of this
opportunity isn’t easy. School districts must understand how to best negotiate the carbon market, and they must accrue enough credits to attract buyers. Voluminous record-keeping and reporting also represent signifi- cant barriers. But institutions like Gladstein,
Neandross and Associates (GNA) and energy technology company The Mobility House are helping
24 School Transportation News • MAY 2021
Electric school buses operated by Ocean View School District in Oxnard, California, are accruing low-carbon fuel credits that could provide a revenue stream to help offset the high upfront vehicle and infrastructure costs.
districts tap funds under the LCFS program by incorporating the standard into larger energy plans for schools, facilitating reporting and interacting with the market on districts’ behalf. In the process, they can use innovative, benefit-maximizing strategies like bundling credits from multiple districts and obtaining higher-value credits by having schools charge buses when energy demand is low and renewable sources are more likely to be provid- ing the power. Incorporating solar on site can also boost the value of credits while saving
on energy costs and promoting cleaner energy, explained Zoheb Davar, director of business development and growth at The Mobility House. Mean- while, buying clean energy credits essentially increases the carbon-credit value of the electric buses, since they are theoretically being charged by clean energy. Thus far, few school districts are taking advantage of the program, given
its complexity and the fact that most districts do not have large electric bus fleets. The vehicles must also be running and charging for credits to accrue, so the pandemic has put the possibility on hold for many districts. Though, Davar said, Mobility House clients in California will start obtaining credits in coming months.
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