Operator: Our next question is from Craig Shere with Tuohy Brothers. Please proceed with your question.
Craig Shere: Good afternoon, thanks for taking the questions. So I obviously, neither carb nor the EPA wants these programs to implode. So I just what I want to ask is one, do you see a silver lining that the regulators feel more pressured with these low prices? And two, do you see any catalysts for other state programs. And there were some draconian possible recommendations with options being evaluated by the carb, kind of eliminating, projects past a certain line in the sand from west to east or other things? Do you see them starting to shy away from some of those draconian changes and just focus on total supply demand in terms of, the carbon reduction, track versus tweaking the market? In other ways?
Andrew Littlefair: Yes. Well, Craig, look, I think, I hope, what I’ve been trying to say on this call was that I’m actually somewhat optimistic of the way both these programs are going to end up. And it hasn’t helped. As the markets watch this kind of making a sausage and regulatory proclamations and staff workshops, and all, that’s kind of can be a little bit of a unnerving. And frankly, he’s done that to the credit prices in the latter part of the year. But I’m kind of, I think, on picking up where you are. I don’t believe that either California or the EPA wants to dismantle these programs. Okay. I think unfortunately, there was a tendency to want to micromanage and steer and pick winners and losers and maybe some things that we see governments do from time to time and certainly staff and governments do from time to time.
And not always, well, well guidance, certainly often not, market. I think it’s beginning to but having said that, if you if I if I look at California, but what overpowers some of these micromanaging of West lines in the sand and the West and pathways and look and claim and some of these different things and length of service and all that some of that stuff that had been kind of proposed is that when that they know the program works, they know that half the dairies the state of California, for instance, have voluntarily gone into capturing methane. They know they need RNG in order to lower the carbon in the state. It’s — it works other states it works. The governor of the state no, Governor Newsom, he knows it works. So the last thing you want to do is kills a golden cow if you will.
So I think what you’ll see is what kind of overpowers all of those, those tendencies to want to micromanage the program is the fact that they’re going to increase the obligation curve from 20% to 30%. That’s big. And if they go to 35%, which many have suggests that there’s no better time to do it, you’re going to need all the RNG and a lot of these, these little programs, little things that they were kind of wanting to test, I think will go away, because you’re going to need it all. So I feel actually kind of, I’m an optimist, but I feel actually that that is headed in a, in a better direction. And then as we relate to the, to the, to the EPA, I feel similar in a similar way. For the federal government to decide that they, they want to decide where this fuel should go and jury rigged the math on generating returns to force it to go to make electricity for their electric vehicle program.
