TERC Program Framework 2024

Program Framework

Eco-Energy, LLC

November 2024

Version 1

ADDITIONAL REFERENCES

The TERC Program Framework supports individual TERC fuel methodologies, digital asset specifications, claims documents, and Xpansiv Digital Fuels Registry documentation.

TERC-ENERGY.COM

Executive Summary

1.1 MISSION AND PURPOSE

The Transport Emission Reduction Certificate (TERC) Program aims to accelerate the decarbonization of the U.S. transportation sector by focusing on low-carbon fuels within the fuel-vehicle system. This voluntary carbon program, driven by a market-based mechanism, fosters innovation in clean fuel technologies and advances the transition to a low-carbon economy by providing organizations with a pathway to address their sustainability goals through investment in scaling low-carbon solutions.

1.2 KEY OBJECTIVES

1

CAPTURE GHG EMISSION PROFILES

Quantify the environmental impact of low-carbon transportation fuels in the form of tradable asset or certificate (TERC).

2

THIRD-PARTY VERIFIED EMISSION REDUCTIONS

Ensure credibility and transparency in emission reduction claims through independent certifications and verification.

3

Enable producers, operators, consumers, and other market participants to define, register and transact the environmental attributes of low carbon transportation fuels.

4

DEFINE AND REGISTER ENVIRONMENTAL ATTRIBUTES STREAMLINE ENVIRONMENTAL BENEFIT TRANSFERS

Facilitate the transfer of emissions reductions from fuel producers to consumers, even when physical fuel access is limited.

5 ENABLE INVESTMENT AND INNOVATION

Promote investment in and innovation for low-carbon fuels throughout the US

Transport Emission Reduction Certificate Program

2.1 WHAT IS THE TERC PROGRAM?

The TERC Program is designed to accelerate the reduction of greenhouse gas (GHG) emissions in the U.S. transportation sector by incentivizing the use of low-carbon fuels, promoting technological innovation in energy production, and advancing infrastructure. It empowers organizations to meet sustainability goals while driving progress in clean fuel technologies.

A major challenge in scaling low-carbon fuels is the imbalance between the funding required to advance these technologies and the available capital. Advanced biofuels and other lowcarbon technologies have not yet reached the production scale necessary to compete costeffectively with fossil fuels. To achieve the economies of scale needed for cost reductions, these technologies require significant upfront investment and sustained demand something difficult to achieve across the U.S. market. Technologies like carbon capture and storage, which are essential for reducing emissions, also pose financial challenges, particularly in regions without regulatory incentives for low-carbon fuels.

At the same time, corporations are striving to decarbonize complex supply chains that contribute heavily to their direct and indirect emissions These efforts are often constrained by technological limitations, infrastructure gaps, high capital requirements, and limited availability of low-carbon fuels.

By unbundling environmental attributes from the physical fuel supply, the TERC Program enables fuel producers to engage with customers who have a need to decarbonize, even if they cannot physically access or use sustainable fuels This aligns incentives and demonstrates market demand for a cleaner fuel pool. Organizations purchasing TERCs can then claim the environmental benefits toward their own GHG reduction targets. For example:

Long-haul carriers without consistent access to renewable diesel can purchase and claim TERCs generated from renewable diesel.

A railroad can purchase low-carbon biodiesel with associated TERCs to claim toward their shippers' emissions.

A shipper can purchase TERCs from renewable diesel or biodiesel to account for emissions from products transported on heavy-duty trucks, while TERCs from ethanol can be used for last-mile deliveries.

Corporate end-users can purchase and claim TERCs from ethanol to cover emissions from employee commutes or on-road business travel

By catalyzing private investment, the TERC Program helps align corporate sustainability goals that can’t currently be addressed with operational efficiencies, with the substantial costs of funding the clean energy transition. It brings together two critical stakeholders fuel producers with the ability to decarbonize and those with the capital to support that change. This synergy can accelerate the widespread adoption of low-carbon fuels and technologies.

With effective implementation, the TERC Program will build on the emissions benefits of existing regulated motor vehicle fuel standards, fostering greater use of low-carbon fuels, supporting infrastructure development, driving technological innovation, and ultimately enhancing public health and environmental outcomes.

2.2 KEY PROGRAM FEATURES

FUEL CATEGORIES

UNBUNDLING ENVIRONMENTAL ATTRIBUTES

LIFECYCLE GHG ACCOUNTING

TERCs are currently generated from ethanol, biodiesel, and renewable diesel. Future categories may include electricity, renewable natural gas, and hydrogen.

TERCs separate the environmental benefits of fuel from its physical use, enabling broad participation.

Emissions are measured on a well-to-wheel basis using a version of the Argonne’s Greenhouse Gases, Regulated Emissions, and Energy Use in Transportation (GREET) Model employed by CA-LCFS. In particular, the CA GREET Model will serve as the basis for lifecycle calculation.

Current Market Landscape Addressed by TERC

3.1 TRANSPORTATION EMISSIONS

Transportation accounts for nearly 30% of U.S. greenhouse gas (GHG) emissions

and is one of the largest contributors to GHG emissions globally, making it a critical sector for decarbonization, particularly in freight. The rise in vehicle ownership and logistics networks across the world has further amplified the role of transportation in driving climate change, with the global transportation sector relying on fossil fuels for 96% of its energy*. While various technologies and fuels including electricity and biofuels like biomass-based diesel and low carbon ethanol show promise, no single solution can meet the complex needs of a global transportation sector.

*Su, J. et al.

3.2 CHALLENGES IN DECARBONIZING ROAD FREIGHT

The road transportation sector, which includes everything from personal vehicles to heavyduty freight trucks, faces several significant challenges in its transition to lower-carbon alternatives:

Long-haul trucks, critical to global supply chains, require long ranges and fast refueling capabilities, making it difficult to adopt low-carbon technologies that are not yet advanced enough to meet these needs.

The wide variety of vehicles ranging from light-duty cars to heavy-duty trucks—means that no single solution can decarbonize the entire sector. Each type of vehicle has different energy requirements, which necessitates a mix of solutions rather than a one-size-fits-all approach.

Transitioning to lower-carbon fuels and technologies involves high upfront costs both for fuel producers who have to build supply, and for fleets who would have to retrofit existing vehicles and infrastructure, or buy new vehicles. Many companies, particularly in freight and logistics, are hesitant to adopt new technologies without clear financial incentives or government mandates.

Low-carbon fuels require considerable investment in fueling and distribution infrastructure, which is currently lacking in many regions.

3.3 CORPORATE RESPONSIBILITY FOR INDIRECT EMISSIONS

For many companies, transportation-related emissions represent the largest or even the majority of their indirect (Scope 3) GHG emissions. In fact, over 70% of most companies' total emissions come from their supply chains Understanding Scope 3 inventories enables sustainability and procurement leaders to identify inefficiencies, gain insights into carbon intensity (CI) across value chains, and unlock business benefits, including innovation and trend identification.

Traditionally, corporate accounting standards have focused primarily on direct emissions from fuel combustion, but this is starting to change Regulatory frameworks are increasingly requiring Scope 3 emissions calculations, including the European Union's Corporate Sustainability Reporting Directive (CSRD), which emphasizes transparency and accountability for environmental impacts. These regulations encourage the adoption of sustainable practices throughout supply chains, laying the groundwork for addressing broader carbon footprints.

In the voluntary carbon market, frameworks such as the Greenhouse Gas Protocol (GHGP), the Carbon Disclosure Project (CDP), and the Science Based Targets initiative (SBTi) provide foundational guidance. However, they currently offer limited solutions for addressing transportation-related Scope 3 emissions beyond activity reduction. Notably, these organizations are now evaluating the inclusion of environmental attribute certificates (EACs) and other carbon market-based instruments as practical tools to tackle Scope 3 emissions.

The need for sustainable transportation options is undeniable. TERCs address this gap by providing a measurable and scalable mechanism to reduce emissions while enabling companies to credibly manage their transportation-related Scope 3 emissions. By capturing upstream emissions reductions from renewable feedstocks and ensuring transparency in environmental benefits, TERCs empower businesses to align sustainability goals with supply chain decarbonization efforts, driving both environmental and operational innovation.

Purpose & Rationale of

4.2 LEARNING FROM EXISTING MODELS

Certain regulated carbon programs, like low carbon fuel standards, have been successful at incenting significantly lower CI of energy used in transportation.

However, they operate in limited markets and only for obligated parties. The TERC Program leverages aspects of low-carbon fuel programs to generate similarly high-quality, thirdparty verified certificates from the environmental attributes of low-carbon fuel that can be traded voluntarily across boundaries to a variety of stakeholders aiming to meet corporate emission targets.

LCFS programs work by setting a baseline CI for transportation fuels and requiring fuel producers and importers to meet progressively lower targets over time. CI is measured in terms of the amount of carbon (or CO2 equivalent) emitted per unit of energy provided by the fuel, and takes into account the full life cycle emissions of the fuel, from extraction or cultivation, through refining and distribution, to combustion in a vehicle. Fuels with a CI below the standard are eligible to create LCFS credits, and obligated parties who are large GHG emitters must purchase credits to claim against their carbon deficits. California’s flagship LCFS (CA-LCFS), implemented in 2011 as part of the state’s comprehensive climate strategy, has achieved remarkable success in decarbonizing its transportation sector.

As of 2023, transportation fuels in California had realized a 15.34% reduction in CI over the 2010 baseline reported in the state, according to the California Air Resources Board (CARB) – outperforming the projected 2023 target 11.25% reduction. The program acknowledges that different fuels provide varying levels of GHG reductions and is able to track trends both in supply of lower-CI fuels to the state, as well as advancements in fuel production and feedstocks that drive down CI from an operational perspective.

By incentivizing fuel providers to lower the CI of their products, the CA-LCFS encourages the import and development of cleaner fuels such as biomass-based diesel, electricity, ethanol, renewable natural gas, and hydrogen. A recent environmental impact study showed that the volume of low carbon fuels supplied to the state tripled from the time of its adoption through 2023, and program has helped to displace 25 billion gallons of petroleum fuel. As of the first quarter of 2024, more than 70% of all petroleum diesel in California had been substituted for biomass-based alternatives.

Similar programs have been adopted by Oregon and Washington, broadening the market for clean fuels along the west coast of the U.S. Policymakers and environmental advocates have long pushed for a nationwide LCFS that could replicate these benefits across the U.S., creating a more competitive landscape for low-carbon fuels. However, political, institutional, economic, social, and technical challenges have prevented such a program from materializing at the federal level.

Canada and the EU have also implemented low-carbon fuel programs, each with policy variations and parameters for LCA calculation, but all with success in driving emission reductions from transportation.

By incentivizing fuel providers to lower the carbon intensity of their products, the CA-LCFS encourages the import and development of cleaner fuels such as biomass-based diesel, electricity, ethanol, renewable natural gas, and hydrogen. A recent environmental impact study showed that the volume of low carbon fuels supplied to the state tripled from the time of its adoption through 2023, and program has helped to displace 25 billion gallons of petroleum fuel As of the first quarter of 2024, more than 70% of all petroleum diesel in California had been substituted for biomass-based alternatives.

Similar programs have been adopted by Oregon and Washington, broadening the market for clean fuels along the west coast of the U.S. Policymakers and environmental advocates have long pushed for a nationwide LCFS that could replicate these benefits across the U.S., creating a more competitive landscape for low-carbon fuels However, political, institutional, economic, social, and technical challenges have prevented such a program from materializing at the federal level.

Canada and the EU have been successful at implemented low-carbon fuel programs, each with policy variations and parameters for LCA calculation, but all with success with driving emission reductions from transportation

4.3 MODELING TERC CALCULATION

To facilitate transparency, the TERC Program will be anchored in existing methodologies under regulated programs that are well-known and understood in the transportation fuels market In particular, the initial framework of the program will leverage aspects of the CALCFS for the following criteria:

Generation of CI scores based on the life cycle analysis (LCA) of the fuel; Annual benchmarks; See Section 6.3

Credit generation calculation as it appears in the CA-LCFS regulations at 17 CCR §95486 1(a); and Third-party verification methodology.

CA-LCFS is buttressed by more than 10 years of data evidencing its success in reducing CI of fuels produced in and imported to the state, and for diversifying the fuel mix over time. Long-term results from this and other regulated programs offer guidance from real-world outcomes critical for launching and scaling a voluntary market-based program like TERC. By building on the lessons learned from regulated markets, the TERC Program benefits from well-established methodologies that have, and continue to be evaluated and refined.

Harmonizing policies across regulated and voluntary carbon markets is essential for creating consistency and efficiency. LCFS programs, rooted in scientific research, are familiar to fuel producers who invest in emission-reducing technologies, build infrastructure, and diversify distribution. Streamlined methodologies can facilitate these efforts without adding excessive compliance costs, cumbersome logistics, or time. Consistency reduces uncertainty for stakeholders and broadens the potential to achieve environmental impact through voluntary programs.

4.4 ADAPTING A REGULATORY APPROACH IN A VOLUNTARY FRAMEWORK

The TERC program operates as a voluntary market-based mechanism on an unbundled book-and-claim basis. A book-and-claim program for carbon is a system designed to support the trading and management of environmental attributes, without requiring the physical delivery of the product or service associated with the attribute:

Book: Fuel producers book the lower carbon advantages of their fuels (i.e. renewable diesel) over traditional petroleum baselines (i.e. petroleum diesel) in the form of a digital certificate.

Claim: Companies or individuals claim the advantage of a lower carbon fuel even though they might not directly consume the fuel that generated the certificate.

In a book and claim system, the physical product may be sold to one entity, while the environmental attribute (TERC) can be sold separately to another entity. The physical product and the certificate do not need to be linked through the supply chain, allowing more flexibility and scalability in markets for carbon reduction.

This system is particularly useful for companies seeking to meet sustainability targets or comply with corporate compliance goals when direct access to low-carbon products is challenging.

As pressure to reduce transportation emissions intensifies, new market-based mechanisms (MBMs) are emerging outside of the compliance landscape in the voluntary carbon market. Companies across various industries are increasingly seeking in-sector solutions to address transportation-related emissions from their supply chains. From airfreight and maritime shipping to heavy and long-haul trucking and last-mile delivery, businesses are exploring innovative strategies to decarbonize logistics operations Accredited thirdparty auditors verify Fuel Certified to Standard Fuel Standards

4.5 TERC PROGRAM VARIATION TO TRADITIONAL BOOK AND CLAIM

Typically, in book-and-claim systems, the emission reductions are calculated as: emission of the low carbon fuel v. baseline emissions. However, instead of actual baseline emissions, the TERC Program applies CI benchmarks as published by CA-LCFS (see Section 6.5). As a result, the calculated emission reductions do not exactly represent the actual emission reductions in the fuel pool. However, the mismatch between baseline and applied benchmark lead to an understatement in emission reductions, making the parameters of the program more conservative and stringent, while maintaining the consistency and integrity of the LCFS programs from which it draws its inspiration.

4.6 RELEVANT VOLUNTARY MBM FRAMEWORKS

Within the voluntary carbon market, established initiatives guide accounting and reporting principals, most prominently the GHG Protocol and the SBTi Corporate Net Zero Standard, particularly as they relate to program-based initiatives that represent emission reductions in the form of carbon offsets.

The voluntary carbon markets have, and continue to be rooted in program-based carbon commodities like carbon offsets, but the field continues to diversify MBMs, often in the form book and claim certificates allow companies to invest in program level abatement by sharing the higher cost of low-carbon energy across transportation modalities, financing decarbonization of the fuel sources that power their business.

A growing collection of frameworks, standards and protocols have also started to emerge from reputable organizations, corporations, buyer’s alliances, governments, and collective efforts, to define best practices of emerging voluntary MBMs. To ensure consistency and build credibility in these nascent systems, the design of the TERC Program, as well as the method for generating TERCs and claiming TERCs, aligns as closely as possible with the GHG Protocol and Science Based Target Initiatives (SBTi) Corporate Net Zero Standard, as well as the RSB Book and Claim Manual and Smart Freight Centre’s Voluntary Market Based Measures Accounting Framework for Logistics Emissions Accounting and Reporting.

However, as TERCs exist as a new class of voluntary MBM instrument, representing a variety of on-road transportation fuels, slight adjustments to current methods are proposed to accommodate the structure of the related energy industries and accurately reflect their unique features.

In the absence of formal accounting and reporting mechanisms for market-based initiatives, the TERC Program is designed to best integrate into established corporate emissions frameworks in the existing landscape, while also being:

Administratively easy to implement;

Broadly consistent with established and emerging frameworks and methodologies; Robust in verification parameters and focused beyond carbon emission reduction to encourage performance-based sustainability standards – conservation of air, water soil biodiversity and land use; Cost effective to adopt; and Nimble enough to recognize negative consequences and mitigate them as much as possible.

The TERC Program is structured for continuous improvement through stakeholder consultations and pilot initiatives, evolving in response to practical experience, ongoing research, and the broader development and maturation of voluntary market-based mechanisms, along with the implementation of best practices.

TERC Program Scope 05

5.1 ELIGIBLE FUELS

Eligible fuels within the scope of the TERC Program include denatured Fuel Ethanol derived from starch or fiber, or grain sorghum, and biomass-based diesel including renewable diesel and biodiesel.

Each individual fuel category for which TERCs are generated, there exists a unique TERC Category, with which it is identified for the process of listing through the registry.

Additional fuel types will continue to be piloted through the program, as market need and potential are evaluated.

5.2 OWNERSHIP

TERCs function like environmental attribute certificates (EACs) linked to the renewable fuels they represent. Each TERC is a tradable instrument corresponding to one metric ton of CO₂equivalent (MTCO2e) emissions avoided through the use of renewable fuels. Ownership of a TERC grants the holder the exclusive right to claim the environmental benefits associated with the corresponding renewable fuel.

Once a TERC is sold or transferred, the original generator or any other party is prohibited from claiming the environmental benefits of that specific renewable fuel. Only the TERC owner is entitled to make claims regarding the use of the associated renewable fuel and its environmental attributes

This exclusivity prevents double counting and ensures the accuracy and integrity of renewable fuel claims, maintaining transparency and credibility in environmental benefit reporting

5.3 VOLUNTARY USE

These guidelines apply exclusively to the voluntary use of the energy for transportation, and the TERCs related to it. TERCs do not apply to fuels used for compliance purposes in low carbon fuel standards. As the TERC Program evolves and other voluntary market-based standards emerge to deal with decarbonization in the transportation space, these guidelines may be revisited to ensure flexibility, broader applicability, and continued alignment with new frameworks and industry standard. See Appendix A

5.4 FUEL CATEGORY DIFFERENTIATION

In regulated low carbon fuel markets, credits are often fungible despite being their association with a variety of fuels.

As price is applied to TERCs within the bounds of the voluntary carbon market, each TERC category maintains a unique value proposition related the qualities of the physical fuel from which the TERC is derived including, but not limited to:

Environmental profile,

Temporal and geographical availability of the fuel, Market penetration and supporting infrastructure for the fuel, Cost of production and expansion, Cost of innovation, Cost to the consumer, Macroeconomic forces affecting its proliferation.

As such, TERC-Ethanol, TERC-RD, and TERC-Biodiesel are independent commodities from a pricing perspective in the marketplace.

Additionally, voluntary buyers may ascribe unique value to TERCs on a batch level based on vintage, CI, feedstocks, production facility location, and a variety of other factors.

5.5 MARKET PARTICIPANTS

The TERC Program participants are an eco-system of players within the Voluntary Carbon Market (VCM) and can include low carbon fuel producers, brokers, marketers, traders, aggregators, retailers, and end-consumers

5.6

GHGS COVERED

The TERC program uses the CO₂e framework to account for the following key greenhouse gases, which are included in its emissions calculations:

Carbon dioxide (CO₂) – GWP of 1 (baseline for all comparisons).

Methane (CH₄) – High GWP due to its potent short-term effects on global warming.

Nitrous oxide (N₂O) – Strong greenhouse gas often emitted from agricultural practices, transportation, and industrial processes.

Hydrofluorocarbons (HFCs) – Used in refrigeration and air conditioning, with a GWP ranging from hundreds to thousands of times that of CO₂.

Perfluorocarbons (PFCs) – Used in industrial processes like electronics manufacturing, with very high GWP.

Sulfur hexafluoride (SF₆) – Extremely potent greenhouse gas used in electrical insulation with a GWP of over 23,000.

5.7 DETERMINATION OF CO₂ EQUIVALENTS

Lifecycle Analysis (LCA): CA LCFS uses lifecycle analysis to calculate the total greenhouse gas emissions associated with each fuel from "well to wheels" (i.e., extraction, production, transportation, and combustion). This means that all emissions from the production and consumption of fuels are evaluated.

GWP Calculation: Once the total emissions of different greenhouse gases are determined, they are converted into CO₂ equivalents by multiplying the quantity of each gas by its respective GWP.

5.8 EMISSION REDUCTION OR AVOIDANCE SOURCES

Plant-level CI reduction methods for biorefineries, including biodiesel, renewable diesel, and ethanol production, involve strategies focused on improving efficiency, reducing emissions, and using sustainable feedstocks.

FEEDSTOCK OPTIMIZATION

o Sustainable Feedstock Sourcing: Using waste oils, agricultural residues, and non-food crops as feedstocks to minimize land-use changes and emissions from raw material production.

o Improved Agricultural Practices: For ethanol, using low-carbon agricultural practices such as reduced fertilizer use, cover cropping, and conservation tillage can lower the CI of feedstock.

ENERGY EFFICIENCY IMPROVEMENTS

o Process Heat Optimization: Integrating energy recovery systems (such as combined heat and power or cogeneration) to use waste heat efficiently

o Advanced Process Controls: Implementing modern automation and controls to optimize energy usage in real-time, reducing energy waste in the production processes

o Thermal Integration: Using heat exchangers and advanced heat management to reduce the need for external energy inputs.

RENEWABLE ENERGY INTEGRATION

o Onsite Renewable Energy: Installing solar panels, wind turbines, or biomass boilers to generate renewable energy onsite, reducing dependence on fossil fuels for plant operations.

o Biogas Capture and Utilization: Capturing biogas from wastewater treatment or digesters and using it as an energy source to offset natural gas or other fossil fuel

CARBON CAPTURE AND STORAGE (CCS)

o CO2 Capture: Implementing CCS technology to capture CO2 produced during fermentation in ethanol production or from combustion processes in biodiesel and renewable diesel plants

o Storage or Utilization: Either storing the captured CO2 underground (geological sequestration) or utilizing it in other industrial processes, such as for enhanced oil recovery (EOR) or in carbonated beverages

CARBON CAPTURE AND STORAGE (CCS)

o CO2 Capture: Implementing CCS technology to capture CO2 produced during fermentation in ethanol production or from combustion processes in biodiesel and renewable diesel plants.

o Storage or Utilization: Either storing the captured CO2 underground (geological sequestration) or utilizing it in other industrial processes, such as for enhanced oil recovery (EOR) or in carbonated beverages.

WASTE AND BYPRODUCT MANAGEMENT

o Valorization of Byproducts: Converting byproducts like glycerin (from biodiesel) or distillers grains (from ethanol) into high-value products like biogas, animal feed, or chemicals, thereby increasing overall efficiency and reducing waste.

o Zero-Waste Design: Designing processes to minimize waste, recycle process water, and treat wastewater on-site, reducing environmental impact and lowering CI.

GREEN HYDROGEN UTILIZATION

o Green Hydrogen for Renewable Diesel: Switching to green hydrogen (produced from renewable electricity via electrolysis) instead of hydrogen derived from natural gas for the hydrogenation process in renewable diesel production can significantly lower CI

SUSTAINABLE WATER AND RESOURCE MANAGEMENT

o Water Recycling: Recycling water in ethanol and biodiesel plants reduces the need for fresh water, improving sustainability and lowering the CI associated with water usage

o Efficient Use of Chemicals: Using lower-carbon chemicals and reducing the amount of chemicals used in production processes can also reduce emissions

TERC Program Methodologies & Technical Standards

KEY OBJECTIVES

1 CAPTURE GHG EMISSION PROFILES

6.1 DATA COLLECTION

TERCs are generated from assessments of the environmental performance attributes of specific units of fuel production (e.g., greenhouse gas emissions associated with production and refining) and/ or operations, grounded in continuously metered operations data, supplemental data (e.g., production of seed and fertilizer, land use change, direct air monitoring of N2O and CO2), 3rd party certifications, analytics and modeling. High quality data can be captured from multiple technologies and monitoring systems, and verified to substantiate and authenticate property rights in environmental claims derived from physical fuel production and other lifecycle components.

Operations data are captured from meters, scales, certified chemical analysis, sales records and other primary sources that are auditable/ verifiable by a 3rd party, and from monitoring equipment calibrated to meet regulatory/ technical specifications.

Operations data should be measured using equipment calibrated to regulatory specifications, industry standards, and production accounting principles, along with any certified chemical analyses being regularly updated.

Operations data that includes greenhouse gas emission intensity calculations should align with industry best practices and international protocols for site level measurements such as US DOE GREET model, CA LCFS program, and other regulatory Renewable Fuel Standard schemes.

6.2 INDIVIDUAL FUEL METHODOLOGIES

Each eligible fuel, or transportation energy source will be accompanied by an individual fuel methodology that more explicitly describes the process for TERC generation.

6.3. LCA SCORE CALCULATION

In the TERC Program, lifecycle GHG emissions will be represented in a CI score measured in units of grams of carbon dioxide equivalent per megajoule of energy ("gCO2e/ MJ").

Each participating producer’s fuel pathway(s) will be scored using a version of the CAGREET model in effect under CA-LCFS – in particular the CA-GREET 3.0 or 4.0 calculator. Where possible, a simplified calculator published by CARB and applicable to the fuel pathway will be used. In some cases, Tier 2 fuel pathways will be acceptable (see individual fuel methodologies).

CIs will be calculated at least annually for each participating producer, subject to individual methodologies; the data period used for CI modeling will be the same as required under the LCFS program (i.e., up to 24 months of actual production data, and not less than 3 months of actual production data). Finished fuel transportation distances used in CI modeling will be based on a weighted average of distances to final destinations during the data period, based on knowledge or reasonable belief by the participating producer. If unknown, then a conservative default distance will be used in CI modeling.

6.4 TERC PROGRAM VARIATION TO CA-LCFS

In November 2024, CARB ratified amendments to the LCFS program that include but are not limited to:

A 9% step down in benchmark for 2025 volumes and 30% reduction target by 2030, up from the previous 20% goal.

The inclusion of an Automatic Acceleration Mechanism (AAM) to pull forward the next year’s CI target if certain conditions are met.

The introduction of traceability requirements for biomass feedstocks starting in 2026 with 3rd party certification required in 2028.

The introduction of a 20% cap for the use of soybean oil, canola oil, or sunflower oil as feedstocks for RD/BD production, applicable to new pathways in 2025 and all pathways by 2028.

Deliverability requirements for biomethane projects commencing in 2030.

The potential exclusion of new biodiesel and RD pathways in 2031 if ZEVs achieve certain adoption targets.

The addition of a mechanism to adjust ILUC CI charges for “high risk” feedstocks.

While the TERC Program draws heavily on the framework and integrity of CA-LCFS, it will not recognize the recent amendments to the LCFS approved by the California Air Resources Board (CARB) through at least December 31, 2025. This decision is driven by several factors:

Regulatory Uncertainty: The recent amendments introduce significant changes, such as stricter CI reduction targets and the implementation of new crediting mechanisms. However, there remains uncertainty about how regulatory hurdles will be navigated to effectively operationalize the changes and reach full implementation Implementation Timeline: Many of the new provisions, such as the automatic adjustment mechanism, are not slated to take full effect immediately. Delays in their implementation could lead to market inconsistencies that would complicate alignment with TERC Program goals.

Market Stability: Grandfathering in the current baselines and methodologies ensures stability and predictability for market participants during this transitional period Allowing sufficient lead time for stakeholders to adapt to the new amendments protects the integrity of the TERC Program and avoids premature adjustments that might undermine participant confidence.

Alignment with Broader Markets: The TERC Program targets fuels sold to markets outside of California, which have not benefited from the carbon intensity reductions achieved through an LCFS program over more than a decade ·Aggressive reductions to benchmarks and other amendments could derail adoption before the TERC program gains traction. Additionally, some voluntary market participants may take a "wait and see" approach to the new amendments, delaying adoption. Additionally, some jurisdictions may take a "wait and see" approach to the new amendments, delaying their adoption or rejecting them outright. By maintaining current baselines, the TERC Program ensures consistent applicability across multiple markets Program Integrity and Stakeholder Input: The delay provides the TERC Program time to evaluate the real-world impacts of regulatory changes, gather stakeholder input, and ensure that any potential alignment with the amendments upholds the TERC Program’s core principles of additionality, permanence, and verifiability.

·The TERC Program will continue to leverage established baselines and methodologies from CA-LCFS, with few exceptions, relying on pre-amendment CA-LCFS framework to ensure stability, transparency, and market confidence during this interim period. Evaluation of the amendments and their potential integration into the TERC framework will be ongoing, and regular updates and stakeholder feedback will be made available through the TERC Website (www.terc-energy.com) with formal adjustments incorporated during the next annual review of the TERC framework

6.5 ANNUAL BENCHMARK AND VINTAGE YEAR

A fuel's CI score will be compared against a yearly benchmark; fuels with a CI below the benchmark will be eligible to generate TERCs.

CI benchmarks used in TERC generation calculations for 2023, 2024, and 2025 volumes will be those published by CARB for 2024 CA-LCFS credit generation, see chart below, applicable to the following LCA calculation pathways:

Digital Ethanol generated using a GREET 3.0 Tier 1 Simplified CI Calculator

Digital Biodiesel or Digital RD generated from fuel that maintained an existing and active GREET 3.0 Tier 1 or Tier 2 CA-LCFS pathway in 2024; or Digital Biodiesel or Digital RD that had an active GREET 3.0 Tier 1 or Tier 2 pathway application submitted to CARB for approval in 2024.

Carbon Intensity Benchmarks in gCO₂e/MJ for diesel and gasoline fuel to be compared to GREET 3.0 Pathways for biomass-based diesel and ethanol.

New Tier 1 and Tier 2 pathway applications for biodiesel and renewable diesel that are submitted to CARB on or after January 1, 2025, will be required to obtain a CI generated from the GREET 4.0 CI Calculator. Throughout the course of 2025, all CI pathways, generated by both GREET 3.0 and 4.0 will be compared against the grandfathered baselines.

The version of the GREET 3.0 calculator used will be denoted within the Digital Fuels Registry

TERC vintage will align with the year that the corresponding fuel was produced and the baseline year against which it is compared.

6.6 TERC GENERATION

The formula appearing in the LCFS regulations at 17 CCR §95486.1(a), including all incorporated references, shall be used to calculate the quantity of TERCs generated for biomass-based diesel and annually for ethanol. The volume input for this formula will be the volume of eligible low carbon fuel produced and sold by a participating producer during:

Calendar Q1- Q4 of Year X, for the annual credit generation of Year Y

One metric ton of carbon dioxide-equivalent (MT CO2e) calculated as described above will be equivalent to one TERC. Only whole credits will be issued, meaning calculation remainders are rounded down to whole credit number.

For liquid fuels:

TERCs = [(CARB LCFS baseline year CI - CARB LCFS alternative fuel pathway CI) * (CARB LCFS MJ/ gal energy density of fuel) * 0.000001(conversion factor) * verified gallons of fuel]

Where the energy density of qualifying fuel is listed below:

CARBOB (gal) 11953 (MJ/gal)

CaRFG (gal) 115.83 (MJ/gal)

Diesel Fuel (gal) 13447 (MJ/gal) LNG (gal) 78.83 (MJ/gal)

CNG (Therms) 105.5 (MJ/Therm)

Electricity (KWh) 36 (MJ/KWh)

Hydrogen (kg) 120 (MJ/kg)

Undenatured Anhydrous Ethanol

Denatured Ethanol (gal)

FAME Biodiesel (gal)

(MJ/gal)

(MJ/gal)

(MJ/gal)

Renewable Diesel (gal) 12965 (MJ/gal)

Alternative Jet Fuel (gal) 126.37 (MJ/gal)

Propane (LPG) (gal)

(MJ/gal)

* LCFS Energy Density as appearing in the CA-LCFS regulations at 17 CCR §95486.1(b)(1) https://ww2.arb.ca.gov/sites/default/files/2020-07/2020 lcfs fro oal-approved unofficial 06302020.pdf

Voluntary Carbon Market Principals

7.1 DOUBLE COUNTING

The TERC Program considers double counting as erroneous, duplicate or improper accounting of emissions reductions. There are three main scenarios in which counting is possible: Double issuance, double use, double claiming, double use. TERCs are safeguarded from double counting through the following mechanisms:

Double issuance happens when duplicate certificates are created for the same solution. To prevent double issuance:

TERCs will only be issued on the Xpansiv DF Registry after third-party verification approvals and reports are generated, submitted by an account representative for the producer, and checked for completeness and accuracy

The Xpansiv Digital Fuels Registry has digital traceability tools, including serialization of individual certificates, to ensure that double issuance is impossible. See Digital Fuels Program Governance Framework.

TERCs cannot be created from the same fuel that is used for compliance obligations in certain programs (see Appendix A). TERCs are therefore only issued after regulated fuel volumes have been accounted for and excluded from voluntary fuel inventories.

The fuel producers that issue TERCs will be contractually obligated not to generate multiple voluntary certificates on the same fuel volumes. As additional registries develop to address on-road transportation fuel, alternative measures, including the potential for a master registry to harmonize coordination will be taken under advisement, as long as data privacy and antitrust rules are followed. (COSAFA)

Double use is the repeated utilization of a single certificate by the same party for multiple purposes

Fuel producers should not claim the environmental benefit of the physical fuel when it is sold, if TERCs are generated on those volumes.

The transfer of a TERC represents and confirms the transfer of all rights, title, and interest in the environmental attributes of the fuel.

Double claiming happens when multiple parties claim the same certificate Registry participants should ensure that claims match the information contained on TERC Retirement Certificates issued by the Xpansiv Digital Fuels Registry including their name and TERC serial numbers.

Often one company’s direct emissions are another company’s indirect emissions. The carrier, or owner of the vehicle is responsible for direct emissions of the burned fuel, while the company for whom the carrier used the fuel can claim indirect, or supply chain emissions.

For additional information on double claiming as it relates to Scope 1 and Scope 3 emissions, and how it relates to the TERC Program, see TERC Claims Guidance document.

7.2 ATTRIBUTE OWNERSHIP AND ABILITY TO TRANSACT

For liquid fuels, the producer of the alternative fuel is responsible for generating TERCs. The participating fuel producer is solely accountable for ensuring compliance with all federal and state regulations and meeting the TERC Program's participation requirements, and providing proof of their legal ownership and ability to generate certificates from the fuel sold.

Fuel producers are not allowed to borrow or use credits from anticipated future CI reductions to demonstrate a lower CI or increase TERC generation.

7.2 ADDITIONALITY

The GHG Protocol defines additionality as a criterion for addressing whether a project-based intervention resulted in GHG reductions or removals beyond what would have occurred if the project never occurred, and the Integrity Council for the Voluntary Carbon Market (ICVCM) calls financial additionality is in place when "GHG emission reductions would not have occurred in the absence of the incentive created by carbon credit revenues

Definitions for additionality continue to expand with the growth of program-based initiatives, and book and claim in particular. The RSB Book and Claim Manual considers additionality for market- based mechanisms as increased demand for lower carbon fuels facilitated by a program, leading to greater production. This, in turn, helps displace fossil fuels, reduce greenhouse gas emissions, and positively influence climate change while promoting broader sustainability benefits.

However, for the case of the traditional GHG Protocol definition as they apply to carbon offsets, TERCs are defined as partially additional. Unclaimed mitigation takes place and certificates are issued in order to provide seed capital for additional GHG mitigation. The carbon revenue is reinvested to increase GHG mitigation

Climate Pal and MEO Carbon Solutions

FINANCIAL ADDITIONALITY

Low carbon fuel production can be a profitable business, but at times production and distribution can be limited by cost in the absence of a properly aligned carbon benefit, as is true with renewable diesel. Costs for additional volumes in the fuel pool or for additional reductions of the CI of the fuel cannot be passed through to the consumer in the absence of an MBM.

PERFORMANCE ADDITIONALITY

Instead of assessing whether the project would have happened without the financial incentive (as with traditional additionality), performance additionality evaluates the project's emission reductions relative to a pre-defined performance benchmark or industry standard. If the project outperforms this benchmark, it can be considered additional. The TERC Program uses annually declining performance benchmarks established by CARB to incentivize the ongoing reduction of the carbon intensity of fuels.

7.3 PERMANENCE

LEGAL/REGULATORY ADDITIONALITY

Only biofuel volumes and emission reductions outside of regulated markets are considered.

The emission reductions are not claimed by any party along the value chain. Blended biofuel volumes are not included in emission factors, which GHG reporting companies apply when calculating scope 1 emissions from combustion of gasoline in owned vehicles. The EPA provides a purely fossil fuel emission factor, not taking into account renewable or low-carbon volumes, while in some other regions, emission factors do include these volumes, for example, UK DEFRA.

The partial fuel switch from fossil fuel to renewable fuel that is incentivized by TERC is factual and reduces carbon emissions from the combustion of fuels. The emission reductions are irreversible.

7.4 VERIFIABILITY

The lifecycle emissions of low carbon fuels are measured, monitored, and verified according to well known models.

Monitoring Reporting and Verification (MRV)

KEY OBJECTIVES

2 THIRD-PARTY VERIFIED EMISSION REDUCTIONS

8.1 VERIFICATION FRAMEWORK FOR LIQUID BIOFUELS

TERCs generated from biofuels will be registered and issued only after independent, thirdparty verification of the following elements:

Calculation of CI score for a batch/payload of fuel from a participating producer for a given classification, pathway, and verification period. See individual methodologies for additional parameters.

Product volumes produced and distributed to qualifying jurisdictions.

8.2 CI VERIFICATION

The methodology for the verification will be an attestation engagement consistent with the statements on Standards for Attestation Engagements (SSAE), developed by the American Institute of Certified Public Accountants (AICPA), under the agreed-upon procedures model of SSAE 19.

Fuel producer will engage directly with an approved third-party verification body.

Verifier will issue engagement letter and protocols to fuel producer participant.

Fuel producer will submit required documentation to verification body.

Verification process will consist of the following data checks:

Transactional Verification: Low carbon fuel production and shipment/distribution records.

Operational Verification: Feedstock and process energy consumed, renewable fuel and co-product production, transportation distances.

See individual fuel methodologies for requirements as they pertain to site visits.

Upon completion of verification, verifier will issue a TERC CI score statement report.

8.3 ELIGIBLE GALLON VERIFICATION

Verifier to confirm eligible fuel gallons.

Verifier to apply appropriate credit generation formula to eligible verified fuel gallons to authenticate TERC credit generation.

Upon completion of verification of eligible gallons and TERC calculation, verifier will issue an “Eligible Gallons Report” report, confirming findings, and “TERC Calculation Statement” including the total TERCs available for generation from an individual batch of fuel applied to a corresponding period of generation.

8.4 GENERATION TIMELINE FOR BIOFUELS

TERCs must be recorded in the Digital Fuels Registry within 24 months of the low carbon fuel delivery.

Fuel producers will be eligible to generate TERCs under ex-post process only after thirdparty verification.

8.5 VARIATION FROM CA-LCFS

CI is associated with a long-term, steady state fuel production operation. The score may vary over time due to a variety of factors, but is traditional consistent. CA-LCFS allows producers to generate dynamically and then balance any discrepancies after a verification.

In order to avoid the risk of double counting, the TERC program requires fuel producers to report their committed gallons through the Xpansiv DF Registry on a specific cadence, depending on the Fuel Category. However, the TERCs will only be generated and issued on the registry after the verification occurs.

CIs will be verified with a certain regularity as specified in individual fuel methodologies; the data period used for CI modeling will be the same as required under the LCFS program (i.e., up to 12 months of actual production data, and not less than 3 months of actual production data).

Xpansiv Digital Fuels (DF) Program, DF Registry

KEY OBJECTIVES

3

DEFINE AND REGISTER ENVIRONMENTAL ATTRIBUTES

The Xpansiv Digital Fuels (DF) Fuels™ Program creates and manages a new category of tradable, standardized environmental assets, allowing market participants to identify, document, and exchange the environmental attributes associated with energy. For each unit of energy produced, transported, or used, a corresponding digital twin is registered This twin communicates verified environmental performance claims throughout the supply chain, backed by auditable data. The program aims to promote investment in low-carbon technologies, environmental monitoring, data analytics, and the development of advanced standards and verification systems.

9.1 XPANSIV DF REGISTRY

A primary mechanism within the Xpansiv DF Fuels Program, the Xpansiv DF Registry, enables producers, operators, consumers, and other market participants to define, register and transact the environmental attributes of energy fuels. As part of the Digital Fuels Program, Xpansiv has developed standardized digital asset specifications to claim the environmental impacts and risks associated with energy production, movement, refining and use.

The DF Registry was built and developed with APX, a technology solutions platform for the energy and environmental markets with experience that spans from transaction management, registries, scheduling, and settlements, to demand-side management, asset control, analytics, operations, exchanges, clearing, and brokerage

9.2

DATA INGESTION,

MRV, AND QUANTIFICATION

The Xpansiv DF Registry operates as an account mechanism developed, managed, governed, and maintained by Xpansiv to enable fuel producers to calculate, register and manage digital commodities, including TERCs. All related hardware and software to monitor and track TERCs, including management and transaction of registered assets is housed within the registry.

The Xpansiv DF Registry provides a central hub for entering and aggregating fuel production data, certifications, and verification, as well as digital data management services and TERC quantification. The DF Registry is responsible for:

Collecting and verifying a standardized set of environmental attributes from each unit of commodity production, storage, transport, refining and use.

Rules for conversion of Payload Datasets into digital assets

https://xpansiv.com/wp-content/uploads/2024/01/Xpansiv-DFP-Governance-Framework.pdf

9.3 AUDITABILITY OF INGESTED DATA

The DF Registry tracks the TERC LCA in a system-wide, binding digital chain of origination This chain is referenced on the retirement certificate, creating a forensic trail that shows how TERCs are derived.

Any company involved in creating, collecting, or assessing data (i.e. as producers, operators, monitoring system providers, or verifiers) follows a consistent set of APIs and a standardized data model This allows authorized participants, including the registry operator and thirdparty auditors, to have visibility into the data. All contributions from firms at each stage of the digital asset lifecycle are accessible through the Xpansiv platform.

When TERCs are registered, the owner can convert the packaged attributes into tradeable assets on the registry. As the ownership of the TERCs transfers, the licensed owner of the commodity gains access to the certain related data captured during the data ingestion process.

Payload datasets are maintained in an encrypted, immutable file format that preserves confidentiality, privacy and custodial management in order to prevent manipulation, fraud, and double counting.

9.4 REGISTRY DOCUMENTS

Xpansiv Digital Fuels Program maintains several documents that define the DF Registry’s role and interaction with the TERC Program including:

Asset Specification for each individual fuel type (Digital Monitoring Reporting and Verification Parameters)

Xpansiv Digital Fuels Governance Framework;

Xpansiv Digital DF Registry Rulebook;

Xpansiv Digital Fuels Program Market Advisory Report;

Xpansiv Digital Fuels Registry Terms of Use

9.5 REGISTRY ADMINISTRATION

Xpansiv provides an administrator to oversee all registry operations and transactions.

9.6 SYSTEM ACCOUNTS FOR PROGRAM PARTICIPANTS

Program participants can sign up through the registry system under one of three primary account statuses: Producer, Trader, and Buyer. Beneficial owners can have TERCs retired on their behalf without obtaining a registry account. Accredited verifiers will also have a log in to ensure proper entry of verified data for TERC generation.

9.7 ELIGIBILITY AND PARTICIPANT ROLES

PRODUCERS

Fuel producers opt into the TERC Program by registering with the Xpansiv Digital Fuel Registry. They submit production data for independent verification before receiving registered TERCs for verified emissions reductions that they can then offer for trade. Producers can register production facilities, enter batch information, hold TERCs, accept incoming TERCs, transfer outgoing TERCs, and retire TERCs on behalf of Beneficial Owners

TRADERS

Brokers and market participants that can buy, hold, sell, and retire TERCs on their own behalf or on behalf of buyers or beneficial parties.

BUYERS

Companies purchasing TERCs claim the verified emissions reductions toward their sustainability goals

BENEFICIAL PARTIES

Parties on whose behalf TERCs can be retired, even if they do not have an active account on the registry.

VERIFIERS

Verifiers who are active in the TERC Program will be assigned a username and password for the Verification Portal in the Xpansiv Digital Fuels Registry. Once a fuel producer uploads and selfattests to the production data from a third-party verification report, the verification body will login to the verification portal and confirm the accuracy of the entered data. Following the verifier’s data check, the Xpansiv DF Registry Administrator will undertake a final confirmation to ensure all necessary documentation is filed and complete, and all processes necessary for registration and issuance have been met The associated batch of TERCs can be uploaded on the Digital Fuels Registry

9.8 RULES FOR ISSUANCE

A fuel producer can opt-in to the TERC Program by registering a Producer Account within the TERC Digital Fuels Registry. The Producer Account is established when it is approved by the Xpansiv DF Registry Administrator. A producer account can be denied based on false, misleading, or missing information, or due to expulsion from another carbon registry or regulated carbon program for nefarious actions Upon Xpansiv registry receipt of eligible fuels containing all required data, including, but not limited to verified CI score, fuel volume, and production period, fuel units will be registered and TERCs generated based on credit generation formula. The credits are deposited to the account holder in accordance to the registry rulebook terms of use.

The fuel producer can issue registered and deposited TERCs

9.10 RULES FOR RETIREMENT

9.9 RULES FOR TRANSFER

Verified and registered TERCs may be managed by an eligible fuel operator or market participant and transferred on the XPV Digital Registry. The transfer of a TERC represents and confirms the transfer of all rights, title, and interest in the attributes that are substantiated and verified within the asset.

Fuel producers and other account holders will not count or double claim TERCs or the attributes contained within the footprint of the digital asset.

Any holder of a TERC cannot separately transfer rights of ownership to any attributes contained within the footprint of the digital asset to a third-party platform or registry without the express written consent of Xpansiv and EcoEnergy.

Once retired, TERCs cannot be claimed or used again by any party and will be permanently marked as retired within the registry. The TERCs will be automatically canceled, expired, and no longer eligible for voluntary disclosure or environmental claim by another organization.

9.11 REGISTRY FEES

Registry fees differ for TERCs that fall under each individual fuel category. The Registry Fee schedules will be posted through the Xpansiv DF Registry and through the TERC Program Website.

TERC Program Governance & Oversight

10.1 GOVERNANCE STRUCTURE

The Transport Emission Reduction Certificate (TERC) Program was developed by Franklin, TNbased Eco-Energy LLC in collaboration with a diverse array of stakeholders, including fuel producers, assurance firms, certification bodies, verification firms, registry partners, corporate end-users, non-governmental organizations (NGOs), policy advisors, and academic consultants specializing in life cycle assessments (LCAs), emission factors, and lowcarbon policies.

The program’s governance is designed to ensure its integrity, adaptability, and alignment with industry best practices. This is achieved through a structured process of strategic oversight, stakeholder engagement, and transparent rulemaking.

10.2 THE TERC ADVISORY BOARD

The TERC Advisory Board plays a central role in guiding the program’s development. Its members are selected based on expertise, sectoral representation, and commitment to advancing low-carbon initiatives The board’s diversity ensures a balanced approach to program oversight. The TERC Advisory Board Bylaws govern program involvement.

10.3 ADVISORY BOARD RESPONSIBILITIES

The responsibilities of the TERC Advisory Board are organized into the following key areas:

STRATEGIC OVERSIGHT

Provide guidance on program direction and long-term goals.

Evaluate and recommend new fuel categories for inclusion in the program. Promote best practices in carbon accounting, lifecycle analysis, and certification standards.

NETWORK BUILDING

Foster relationships with industry stakeholders to enhance program participation and credibility Collaborate with certification and verification bodies to align with global standards.

STAKEHOLDER ENGAGEMENT

Facilitate ongoing dialogue with market participants, including producers, buyers, and NGOs.

Ensure that feedback loops are in place to capture industry needs and concerns.

GOVERNANCE AND OVERSIGHT

Oversee the implementation and enforcement of program rules

Monitor the performance and integrity of verification bodies and registry partners.

10.4 RULEMAKING AND RISK MITIGATION

Eco-Energy LLC, in partnership with the TERC Advisory Board, is responsible for rulemaking and program oversight. This includes:

RULEMAKING PROCESS

Conducting an Annual Stakeholder Consultation to solicit feedback on the program's methodology, rules, and governance protocols.

Hosting a Public Comment Period prior to finalizing any major updates. Publishing a Methodology Revision Report summarizing changes, stakeholder input, and justification for decisions

REGISTRY OVERSIGHT

Monitoring activity within the Xpansiv Digital Fuel Registry to detect and mitigate risks of doublecounting or invalid claims. Requiring regular audits to maintain the program’s integrity.

VERIFICATION AND ASSURANCE

Ensuring all TERCs meet rigorous verification standards.

Collaborating with third-party verification bodies to validate the accuracy and credibility of emission reductions.

RISK MANAGEMENT FRAMEWORK

Implementing safeguards against fraud, misrepresentation, and data inaccuracies. Establishing a Dispute Resolution Mechanism to address grievances from stakeholders or participants.

This governance structure, coupled with a commitment to transparency, stakeholder inclusivity, and continuous improvement, positions the TERC Program as a trusted mechanism for advancing low-carbon fuel markets.

Sustainability Criteria & Co-Benefits

11.1 CO-BENEFITS

The positive impact of the TERC Program has the ability to reach beyond reduction of carbon intensity of the transportation fuel pool, with co-benefits that overlap with the United Nations (UN) General Assembly Sustainable Development Goals (SDGs) including improved health and well-benign (SDG 3), Increased incomes for farmers and economic benefits for rural communities in the US (SDG 1 & 8), Improved (innovative) farming practices and technology transfer (SDG 9), and reduced costs of renewable fuels (SDG 7).

11.2

SDG 3 – CLEANER AIR LEADING TO GOOD HEALTH AND WELLBEING

In a health benefits study conducted by the Clean Fuels Alliance America and Trinity Consultants, significant health and environmental benefits were found to be a result of transitioning to biodiesel, renewable diesel, and sustainable aviation fuel. The study emphasizes the role of clean fuels in promoting cleaner air and healthier communities and demonstrates that shifting to 100% biodiesel in various sectors can immediately improve community health by reducing pollution.

Notable findings from the first two phases of the study found that switching to 100% biodiesel in 28 transportation and home heating oil sectors could prove immediate health improvements including over 457,000 fewer asthma cases, a reduction in sick days by 177,000, the prevention of over 1,100 premature deaths, and $7.5 billion in avoided health costs annually Furthermore, the study, which used standard EPA air dispersion modeling tools, and well-established health risk assessments and benefit valuations, found that use of pure biodiesel (B100) significantly reduces cancer risk, especially in high-pollution areas. These benefits are particularly evident in underserved Environmental Justice communities, where clean fuels help mitigate pollution in legacy heavy-duty transportation and residential heating systems. The study’s results affirm that cleaner fuel adoption not only improves public health but also provides substantial economic savings by reducing healthcare costs tied to pollution-related illnesses.

Ethanol also plays a role in promoting public health and environmental sustainability. It is commonly used in various blends such as E10 (10% ethanol), E15, and E85 (flex fuel), which can contain up to 83% ethanol. Ethanol provides significant health and safety benefits by reducing harmful emissions and contributing to a more resilient transportation system The carbon dioxide emitted when ethanol is burned is largely offset by the carbon captured during the growth of the crops used to produce it, unlike the emissions from gasoline and diesel, which have no offset.

From a life cycle perspective, corn-based ethanol can reduce greenhouse gas (GHG) emissions by an average of 40% compared to conventional fuels Even greater reductions, ranging from 88% to 108%, are possible when ethanol is produced from cellulosic feedstocks. This reduction in GHG emissions helps mitigate the environmental impact of the transportation sector, the largest source of emissions in the United States, while promoting cleaner air and improving public health. Ethanol, as part of a broader clean fuel strategy, can contribute to achieving a more sustainable and health-conscious transportation future. (EIA)

11.3 SDG 7 – AFFORDABLE AND CLEAN ENERGY

The TERC Program could eventually reduce the cost of renewable transportation fuels. Initially, the premium for these fuels will likely be passed on to voluntary buyers -- companies aiming to meet sustainability goals. These buyers are typically willing to pay higher prices due to the environmental benefits. In some cases, this cost premium may also be passed on to consumers, particularly in sectors where clean fuel use adds value to products or services.

However, over time, the TERC Program is expected to create market incentives that drive innovation and investment in renewable fuel technologies. As production scales up and technological advancements improve efficiency, the costs of producing renewable fuels will decrease, making them more competitive with traditional fossil fuels. Similar to the renewable energy sector, where the cost of solar and wind power dropped significantly as production increased, the same scaling effect should apply to renewable fuels.

In a more mature market with increased competition and expanded infrastructure, the initial premium on renewable fuels could diminish or disappear. This would benefit both consumers and industries by making cleaner fuels more affordable and accessible while still delivering environmental and health benefits. Ultimately, programs like TERC could help reduce renewable fuel prices for everyone, contributing to a more sustainable energy future. By creating stable market conditions, TERC would encourage long-term investment, lowering costs through economies of scale and reducing risks for renewable fuel producers.

11.4 SDG 1 & 8 – NO POVERTY AND DECENT WORK AND ECONOMIC GROWTH

The TERC Program can drive economic growth by encouraging the adoption of low-carbon fuels, creating jobs in fuel production, distribution, and related industries. As fuel costs decrease over time, the program could make transportation more affordable, benefiting low-income communities and contributing to poverty reduction. Green jobs created by TERC, especially in rural areas where feedstocks are cultivated, would support sustainable economic growth and improve labor opportunities, aligning with SDG 8.

Additionally, TERC could strengthen low-carbon fuel infrastructure in underserved communities, improving air quality and access to economic opportunities. By investing in these areas, the program would reduce pollution, enhance public health, and create new jobs, addressing both environmental justice and economic development.

As of 2024, the U.S. bioeconomy supported nearly 644,000 jobs, contributed $210 billion to the GDP, and generated $49 billion in wages. For every direct bioeconomy job, 11 more are created across the supply chain, leading to a job multiplier of 12. TERC could accelerate these trends, contributing to cleaner energy and broader economic benefits.

11.5 SDG 9 – INDUSTRY INNOVATION AND INFRASTRUCTURE

The TERC Program aligns with SDG 9 by promoting industry innovation and building resilient infrastructure for low-carbon fuels. By driving investment in renewable fuel technologies and expanding clean fuel infrastructure, TERC supports sustainable industrial growth and enhances the transportation sector’s ability to meet future energy demands.

Environmental Claims

KEY OBJECTIVES

4 STREAMLINE ENVIRONMENTAL BENEFIT TRANSFERS

The TERC Program provides a mechanism for fuel producers and purchasers to support the decarbonization of the transportation sector by facilitating emissions reduction claims. However, it is critical to shape and regulate these claims in alignment with existing reporting standards and corporate climate action frameworks to ensure transparency and credibility.

In alignment with the mitigation hierarchy, TERCs should be viewed as part of a broader corporate strategy where organizations first aim to avoid and reduce emissions. Afterward, carbon financing instruments, including TERCs, can be used to address emissions that cannot be directly mitigated. By investing in TERCs, companies contribute to the decarbonization of the fuel pool, incentivizing fuel producers to adopt cleaner technologies and lower their CI.

However, TERCs should not be confused with carbon offsets, which represent the direct purchase of carbon reduction or sequestration efforts and are widely accepted within the carbon accounting landscape. Unlike carbon offsets, TERCs should not be used to support claims such as carbon neutrality. Similarly, net-zero claims are bound by stringent guidelines that often recognize only certified carbon removal credits. While TERCs play a critical role in reducing emissions, they cannot currently be used to fulfill net-zero claims under most protocols.

A key strength of TERCs lies in the 1:1 correlation between the emissions a company seeks to compensate for and the specific fuel-related emissions being addressed, both direct and indirect. This correlation is essential for making credible claims about reducing direct combustion emissions (Scope 1) and indirect upstream emissions (Scope 3). Just as Renewable Energy Certificates (RECs) offset electricity-related emissions by certifying that an equivalent amount of renewable energy has been produced, TERCs ensure that an equivalent amount of low-carbon fuel is produced and used to decarbonize the fuel pool.

This 1:1 correlation is particularly important for indirect emissions claims, as it ensures that the emissions being offset are directly tied to the production and use of cleaner fuels, not just abstract reductions. This provides companies with a transparent and measurable way to link their fuel consumption to real environmental impacts, making their indirect emissions claims more robust and verifiable. This transparency helps companies avoid potential accusations of greenwashing and strengthens the credibility of their environmental claims.

As book-and-claim programs like TERC grow, formal accounting guidance for their use within the voluntary carbon market continues to evolve. Companies should consider best industry practices when applying TERCs to their emissions accounting and ESG reporting:

TERCs should be applied specifically to emissions from transportation, balancing support for broad sectoral decarbonization and individual company value chain decarbonization

Mode-specific application is critical: on-road decarbonization efforts should target onroad emissions, aviation efforts should target aviation emissions, maritime toward maritime, etc.

Companies must ensure that carbon instruments do not exceed the actual emissions impact based on the amount of relevant fuel in their carbon inventory.

Value chain interventions must not result in an emissions profile that shows net emissions falling below zero for the value chain component affected by the intervention.

Please refer to the TERC Claims Guidance for further details and use-case-specific applications of TERCs.

Continued Improvement & Safeguards

13.1 ONGOING FEEDBACK AND IMPROVEMENTS

Pursuant to the guidance and input from market stakeholders under the TERC Program, Eco-Energy and Xpansiv will continue to update the standards and methodologies used to generate and register TERCs. Stakeholders are welcome to offer feedback through open comment periods and ongoing stakeholder consultations in order to continuously improve the program and build the market for voluntary market-based mechanisms. Pilot projects, and periodic audits ensure the TERC Program evolves in response to market needs and emerging best practices. As voluntary market mechanisms grow, the TERC Program will expand its fuel categories and methodologies.

13.2 TIMELINE FOR REVIEWING TERC PROGRAM TECHNICAL DOCUMENTS

The intention of the TERC Program is to update the Program Framework and all associated methodologies annually, and no more than every 2 years to reflect evolving market conditions, emerging information on the environmental impacts of fuels, and growing experience with various certification systems and methodologies. Reviews and surveys may happen throughout the year to assess changes to the regulatory frameworks and LCA models that help shape the TERC Program, in order to best inform the annual revisions.

13.3 QUALITATIVE METRICS FOR EVALUATING THE SUCCESS OF TERC IMPLEMENTATION

The following qualitative metrics will be considered in the ongoing evaluation of successful implementation:

Flexibility of the TERC Program, including its ability to adapt and evolve with market dynamics.

Certainty in its interaction with the market, particularly regarding temporal parameters, legal frameworks, and policy conditions. Assessment of financial and social costs and benefits

Sensitivity to price fluctuations due to external factors.

Ease of implementation.

Market acceptance and adoption rates.

Economic Opportunities & Scalability

KEY OBJECTIVES

5 ENABLE INVESTMENT AND INNOVATION

By offering stable, long-term demand for low-carbon fuels, the TERC Program provides fuel producers with the predictability needed to scale up production and invest in infrastructure. This fosters innovation and drives the transition to a more sustainable transportation sector.

14.1 PLANS FOR EXPANSION

The program will pilot new fuel types such as renewable natural gas, hydrogen, and electricity. Additional methodologies will be developed to capture emissions reductions from a broader range of alternative fuels.

Appendix A

REGULATORY INTERPLAY AND OVERLAP

There are numerous voluntary and state, regional, federal, and international regulated programs designed to incentivize the production of clean fuels. While some of these programs demonstrate overlapping or doublecounting issues with voluntary initiatives, the concept of credit stacking helps to clarify when programs coexist without resulting in such duplication. Credit stacking allows for a clearer understanding of how different programs can complement one another rather than cause redundancies Below is a list of currently active, relative programs and their interaction with the TERC Program:

U.S.

Renewable Fuel Standard (RFS) – The federal RFS program was created by The Energy Independence and Security Act of 2007 with the aim of increasing the blend of biofuels into the fuel pool by setting mandates for each fuel category Managed by the EPA, Renewable Identification Numbers (RINs) are generated when biofuels are blended with fossil fuel to track compliance with the RFS The LCFS, implemented in states like California, aims to reduce the CI of transportation fuels Fuels can generate credits based on their lifecycle carbon emissions compared to a petroleum baseline. RFS focuses more on the volume of renewable content, while LCFS is focused on CI.

A fuel can be eligible for both RFS and LCFS if it meets the criteria of each program. For example, a biofuel that generates RINs under RFS could also generate LCFS credits if its CI is lower than the baseline set by the LCFS program. Similarly, a fuel that is eligible under RFS can also be eligible to generate TERCs.

Clean Fuel Production Credit (CFPC) under Section 45Z of the Internal Revenue Code – Introduced as part of the Inflation Reduction Act of 2022 to incentive the production of clean fuels and reduce GHG emissions, it offers producers a tax credit for each gallon (or gallon-equivalent) of clean fuel they produce, based on the fuel's greenhouse gas emissions compared to conventional fuel. The CFPC (45Z) will be implemented starting on January 1, 2025, and will be available for clean fuel produced and sold through December 31, 2027. It applies to fuels including ethanol, biodiesel, renewable diesel, hydrogen, renewable natural gas, synthetic fuels including e-fuels, and other clean transportation fuels The IRA has not provided guidance on how the 45Z tax credit will be administered, including which LCA model will be used for calculating CI scores The CORSIA model is explicitly approved for Sustainable Aviation Fuel (SAF) and it is assumed that Argonne National Lab will provide a specific model for the purpose of calculating the relevant CI score for the 45Z tax credit

In the absence of clear guidance on the required parameters for participation in 45Z, a true conflict of interest will depend on how the programs are implemented and harmonized The IRS and the Treasury Department will need to carefully craft rules to ensure there is no unfair double-counting or excessive administrative burdens Ideally, 45Z could complement LCFS, and voluntary MBM programs, providing broader incentives for clean fuel production. Currently LCFS program operate independently of federal tax structures, offering no competition on existing federal credits.

Appendix A

The CFPC replaces the 40A Advanced Biofuel Credit, which is more popularly known as the Biodiesel Tax Credit (BTC). There is no conflict of interest between the federal tax policy, EPA RFS program, or state LCFS programs, with a producer able to claim the BTC, generate RINs, and generate LCFS credits if the fuel satisfies the requirements of all programs.

STATE LCFS

California Low Carbon Fuel Standard (CA-LCFS), Oregon Clean Fuels Program (CFP), Washington Clean Fuel Standard (CFS) – Any fuel used in California, Oregon, or Washington state are ineligible from generating TERCs

INTERNATIONAL FUEL PROGRAMS

The scope of the TERC Program covers fuels sold domestically in the United States, but if the scope does expand to international markets, any fuel used in a low carbon fuel program will be ineligible to generate TERCs, including but not limited to: the British Columbia Low Carbon Fuel Standard (BC-LCFS), the Canada Clean Fuel Regulations (CFR), European Union Renewable Energy Directive (EU RED II), and Brazil RenovaBio..

Appendix B

REQUIREMENTS FOR VERIFICATION BODIES

ELIGIBILITY

Verification bodies are eligible to provide verification services under the TERC Program if they have signed the required agreement with TERC and are accredited, qualified, and trained verifier under CARB accreditation program.

To become an approved verification body with the TERC Program, organizations must submit letter via email requesting interest in the TERC Program, along with supporting evidence that they have been verified under CARB accreditation program to info@terc-energy com

A list of accredited, approved, and qualified verification body providing verification services under TERC Program will be kept at www terc-energy com, and will be updated frequently

VERIFICATION BODY ROTATION RULES

A company that needs validation or verification services can't use the same verification company or individual verifiers for more than six consecutive years, starting from January 1, 2020. This six-year period starts when the first contract for validation or verification is signed and ends when the final report is submitted. If the company switches verification bodies, it must wait three years before using the previous verifier again, unless there’s a special circumstance. If the verification company loses its approval, the company must find a new one for future verifications.

SITE VISITS

The verification body providing verification services pursuant to this subarticle must retain the following:

(A) The sampling plan in paper, electronic, or other format for a period of no less than ten years following the submission of each validation or verification statement. The sampling plan must be made available to the Executive Officer upon request.

(B) All material received, reviewed, or generated to render a validation or verification statement for an entity required to validate and verify under LCFS. The documentation must allow for a transparent review of how a verification reached its conclusion in the validation or verification statement, including independent review.

Verification Body Rotation Rules: A company that needs validation or verification services can't use the same verification company or individual verifiers for more than six consecutive years, starting from January 1, 2020 This six-year period starts when the first contract for validation or verification is signed and ends when the final report is submitted If the company switches verification bodies, it must wait three years before using the previous verifier again, unless there’s a special circumstance If the verification company loses its approval, the company must find a new one for future verifications.

Appendix C

BIOFUEL REQUIREMENTS FOR TERC PROOF OF ENVIRONMENTAL ATTRIBUTE, BASED ON CA-LCFS PARTICIPATION

General1.

Approved fuel pathway through CA-LCFS a

CARB annual reports and verification date with next report due date b Quarterly project reports and verification date with next report due date c

Feedstock ID 2

Documentation from feedstock provider(s) of geographic origin location a

Type of feedstock (matching list of acceptable feedstocks from LCFS) b

Amount of each type of feedstock from each provider c.

Fuel Production Data 3.

Documentation of approved fuel pathway, from registration package for LCFS. a.

Date of production of neat fuel b. Location of production of neat fuel c. Batch identification. d. Fuel pathway code. e.

Fuel Type 4.

Type of fuel a. Feedstock type b. Conversion process c. Aggregated transaction indicator d

Quantity and type of co-products produce with each batch. e

Portion of Batch Purchased 5

Purchase date a

Location of purchase b

Volume in gallons of each blend stock c

6. Sustainability Documentation

Supporting documents of the certification process, third party auditors, certification body a

Dates of certification b

All parties the certificate has been transferred as proof of certification c

Name of the certification program (i e , California LCFS) d

7 Life-Cycle Emission Values of Fuel

Party that conducted the LCA a.

Supporting Documents (certificate of approval) of applied CI value, direct emission CI, indirect emission CI, and total CI b. Applied CI value. c. Direction emission CI d. Indirect emission CI e. Total CI f.

Certificates of approval of energy values g.

Certificates of approval of energy content by weight/ volume h.

8.Intermediate Purchasers

Name of intermediate purchaser a

Address of intermediate purchaser b

9.Fuel (Neat) Shipper

Transportation method (truck, rail, boat, pipe) – neat shipper to blender a

Appendix

TERCS IN THE VOLUNTARY CARBON MARKET LANDSCAPE

ORIGINATORS

MARKET& INSTRUMENT

BUYER

CARBON CREDIT

RENEWABLE ENERGY CERTIFICATE

MARKET ELECTRICITY = REC PROJECTS OFFSETTING

CARBON MARKET =OFFSET

CARBONCONSUMERS CORPORATE

RENEWABLE ENERGY PRODUCERS

LOWCARBON FUELPROGRAMS

LOWCARBON FUELPRODUCERS

TERCVOLUNTARY MARKET-BASED MECHAMISM

LOWCARBON FUELPRODUCERS

MARKETS REGULATED = CREDIT

CONSUMERS ELECTRICITY OBLIGATED

PARTIES

CARBON MARKET = CERTIFICATE

CARBONCONSUMERS CORPORATE

Appendix D

CONTINUED

CARBON OFFSETS

DIRECT EMISSIONS COMPENSATION

Carbon offsets represent the direct purchase of emissions reductions from specific projects like renewable energy developments, afforestation, sequestration, or energy efficiency projects, and are not limited to energy-related emissions. Offsets can cover a broader range of activities like forestry, methane capture, or waste management. When companies purchase offsets, they are compensating for their own carbon emissions by supporting projects that achieve equivalent emissions reductions elsewhere.

PROJECT-SPECIFIC

Offsets are tied to specific projects and locations. For example, a transport company may purchase offsets generated by a wind farm in another country to claim carbon neutrality for its operations

RELEVANCE TO TERCS

Although both offsets and TERCs are focused on reducing emissions, TERCs are specifically designed for the transportation sector. While offsets are project based, TERCs are program-based. TERCs represent the environmental attributes of lower carbon fuels and exist to incentivize decarbonization of transportation fuels.

RENEWABLE ENERGY CERTIFICATES (RECS)

WHAT THEY REPRESENT

RECs are a form of book-and-claim certificates representing the environmental attributes of electricity generated from renewable sources, such as wind, solar, and hydropower. When a company purchases RECs, they are essentially buying the right to claim that the electricity they use comes from renewable sources, even if the physical electricity they consume isn’t directly generated from renewables.

HOW RECS WORK

Electricity from renewable sources enters the grid alongside electricity from non-renewable sources. Since it’s impossible to track which electrons come from which source once they enter the grid, RECs provide a method to account for renewable energy usage For every megawatt-hour of renewable electricity generated, a corresponding REC is issued Companies can then buy RECs to claim that they are using green energy, even if the actual energy consumed at their location comes from non-renewable sources

RELEVANCE TO TERCS

While RECs focus on the decarbonization of energy consumption, TERCs focus specifically on decarbonization within the transportation sector. Both mechanisms offer a flexible approach to reducing environmental impact, but RECs are particularly useful for companies that want to lower their carbon footprint through energy sourcing, while TERCs target transport emissions.

Appendix D

FUEL-RELATED MBMS INCLUDING BOOK-AND-CLAIM MECHANISMS

DECOUPLING EMISSIONS REDUCTIONS FROM PHYSICAL FLOW

The book-and-claim model separates the physical emission reductions from the claim on those reductions In this system, companies can purchase certificates (such as TERCs) that represent the use of cleaner energy achieved elsewhere, even if those lower emission fuel didn’t directly correspond to their own operations

FLEXIBILITY IN ACCOUNTING

In the transportation sector, where tracking emissions is complicated by global supply chains, TERCs allow for flexible accounting. A company operating in logistics can purchase TERCs generated by more efficient or lower-emission transport systems like biofuel usage, and claim them

RELEVANCE TO TERCS

Transport Emission Reduction Certificates fit well into this model. By allowing emissions reductions to be traded across different transport modes and geographies, TERCs help companies reduce their transport-related carbon footprints without needing to physically control or modify every aspect of their supply chain emissions.

KEY COMPARISON

PROJECT-SPECIFIC VS. MARKET FLEXIBILITY

Carbon offsets are linked to specific projects and offer direct, measurable compensation for emissions, but they lack the sectoral focus that TERCs provide. TERCs, on the other hand, focus on reducing emissions from transport-related activities and offer flexibility through market mechanisms.

TRANSPORT-SPECIFIC IMPACT

While carbon offsets can cover a wide variety of projects (from energy to forestry), TERCs are directly tied to transportation-specific reductions, potentially making them more relevant for companies looking to mitigate emissions in the transport and logistics sectors.

OWNERSHIP AND FLEXIBILITY

Offsets give companies direct ownership of emissions reductions from particular projects, whereas TERCs like other book-and-claim systems allow for indirect claims. This separation makes TERCs particularly valuable in the transport sector, where emissions reductions can be difficult to physically achieve across complex global supply chains.

Transport Emission Reduction Certificates (TERCs) can be a crucial tool for managing transportation-related emissions by combining the benefits of market flexibility and sector-specific focus. When used alongside or in place of traditional carbon offsets, TERCs allow businesses to invest in in-sector mitigation, especially in industries where tracking and reducing transport emissions can be a complex challenge.

References

AIM Platform Criteria (2024) Draft for Stakeholder Comment

California Air Resources Board (2023) Low Carbon Fuel Standard 2023 Amendments: Standardized Regulatory Impact Assessment (SRIA) https://ww2 arb ca gov/sites/default/files/202309/lcfs sria 2023 0 pdf

California Air Resources Board. (2020). Low carbon fuel standard (LCFS) regulation (Title 17, California Code of Regulations, §§ 95480–95503). https://ww2.arb.ca.gov/our-work/programs/low-carbon-fuel-standard

California Air Resources Board. (2024). LCFS Data Dashboard. California Air Resources Board. Retrieved October 13, 2024, from https://ww2.arb.ca.gov/resources/documents/lcfs-data-dashboard

Chong, C. T., & Ng, J.-H. (Eds.). (2021). Biojet fuel in aviation applications (p. iii). Elsevier. https://doi.org/10.1016/B978-0-12-822854-8.01001-5

Global Methodology for Sustainable Aviation Fuel

Council on Sustainable Aviation Fuels Accountability (CoSAFA). (2023). Global Methodology for Sustainable Aviation Fuel. https://cosafamethod.org/.

Environmental Attribute Transactions ICF International. (2015). Waste, Residue and By-Product Definitions for the California Low Carbon Fuel Standard: Final Report, Page xxxx

ISCC, & RSB (2024) Understanding SAF sustainability certification: Guidance document on requirements and criteria for sustainability certification ISCC and RSB

ISCC System GmbH (2024) ISCC PLUS Version 3 4 2 ISCC System GmbH © 2023

Kelly, K, and Ragatz, A. (2020). Economy and Emissions Impacts from Solazyme Fuel in UPS Delivery Vehicles. Nation al Renewable Energy Laboratory (NREL).

Lyons, J., Szust, J., & Daly, A. (2021, March). Assessment of health benefits from using biodiesel as a transportation fuel. Trinity Consultants. Prepared for the National Biodiesel Board.

Mandegari, M., Ebadian, M., & Saddler, J. (2023). The need for effective life cycle assessment (LCA) to enhance the effectiveness of policies such as low carbon fuel standards (LCFS's). Energy Policy, 181, 113723. https://doi.org/10.1016/j.enpol.2023.113723

Ramkumar, A. (2024, August 18). Clean-fuel startups were supposed to be the next big thing. Now they are collapsing: Hydrogen and biofuel projects have become money pits, threatening climate progress. The Wall Street Journal. https://www.wsj.com

References

Roundtable on Sustainable Biomaterials (2023) RSB book and claim manual (RSB book and claim procedure), version 3 0 Roundtable on Sustainable Biomaterials

Science Based Targets initiative (2021) Corporate Net-Zero Standard Science Based Targets Initiative Retrieved from https://sciencebasedtargets org

Secretariat of the Book and Claim Community, & Community Stakeholders. (2024). Principles and best practice for book and claim systems in heavy transport. SFC and RMI.

Sheehan, J., Camobreco, V., Duffield, J., Graboski, M., & Shapouri, H. (1998). An overview of biodiesel and petroleum diesel life cycles. National Renewable Energy Laboratory. U.S. Department of Agriculture and U.S. Department of Energy. https://doi.org/UnderContractNo.DE-AC02-83CH10093

Smart Freight Centre. (n.d.). GLEC Framework: Global Logistics Emissions Council (GLEC) Model. Smart Freight Centre. Retrieved from https://www.smartfreightcentre.org

Smith, D., & Lewis, A. (2023). Voluntary market-based measures framework for logistics emissions accounting and reporting. Smart Freight Centre.

Sustainable Aviation Buyers Alliance (SABA) (2023) SABA sustainability framework for sustainable aviation fuel Sustainable Aviation Buyers Alliance

U S Environmental Protection Agency (n d ) GHG Emission Factors Hub U S Environmental Protection Agency Retrieved [Month, Day, Year], from https://www epa gov/climateleadership/ghg-emission-factorshub

World Economic Forum (2020) Clean Skies for Tomorrow: Sustainable Aviation Fuel as a Pathway to Net-Zero Aviation, 202.

World Economic Forum. (2022). Clean Skies for Tomorrow: Sustainable Aviation Fuel Certificate (SAFc) Emissions Accounting and Reporting Guidelines.

World Resources Institute, & World Business Council for Sustainable Development. (2004). The Greenhouse Gas Protocol: A corporate accounting and reporting standard (revised edition). World Resources Institute and World Business Council for Sustainable Development. https://ghgprotocol.org/corporate-standard

References

Wyman, K , & Minelli, A (2021) Propertizing environmental attributes (Law and Economics Research Paper Series, Working Paper No 21-18) New York University School of Law

Yeh, S , Sperling, D Griffin, M , Khanna, M , Leiby, Msangi, S , Rhodes, J , and Rubin, J (2012) National Low Carbon Policy Design Recommendations Institute of Transportation Studeis, University of California, Davis, Research Report USD-ITS-RR-12-10 http://ssrn com/abstract+2105897