Transcript CASA Energy Workgroup Regulatory Update

CASA Energy Workgroup
Regulatory Update
SCAP Energy Management Committee
May 30, 2013
CASA Energy Workgroup
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Newly formed group, had kickoff meeting in March
Response to growing importance of energy issues
for POTWs
– Rising energy costs
– Climate change a central issue in
state politics
– New opportunities for renewable
generation and energy efficiency
– Number and complexity of state programs has grown

CWCCG was in transition, CASA stepped in to take
on this direct role
Role of Energy Workgroup

Advocacy for California POTWs on state-level
energy legislation and regulation
 Review bills and make recommendations to
CASA Legislative Committee
 Engage in relevant regulatory proceedings at
CPUC and CEC
 Inform state policymaking
and advocate for POTWs
Current Issues
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Feed-in Tariffs
Pipeline Biomethane
Water-Energy Nexus
Funding Programs – EE Incentives, SGIP,
CSI, EPIC
Proposed Legislation
Low Carbon Fuels Standards
Feed-in Tariff

Changes legislated in 2011
– Project sized increased to 3 MW
– Market-based price
– Three categories: baseload, peaking,
as-available

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Carries over 750 MW cap
Final decision passed by CPUC last
Thursday
Feed-in Tariff Results

Re-MAT pricing mechanism
 Limited remaining capacity
 Little flexibility to change contract capacity
 Guaranteed Energy Production
 Difficult for POTWs to participate
under these conditions
Feed-in Tariff Final Decision
The City of San Diego contends that in an excess sales
situation, it is unreasonable to require the Seller to
predict Contract Quantity because the site load is often
unpredictable.
We find predictability in Contract Quantity to be a
fundamental element of the standard contract and that
the proposed provision, only permitting a one-time
change, is a reasonable means of providing the buyer
and seller with the ability to plan accordingly. Regarding
the concerns raised by the City of San Diego, we will
monitor the impact of the contract provision in the context
of excess sales.
SB 1122
250 MW Feed-in Tariff carve-out for
bioenergy projects

110 MW for wastewater
treatment, municipal
organic waste diversion,
food processing, and
co-digestion
 90 MW for dairy and
agriculture
 50 MW for forestry
Pipeline Biomethane

Mandates open access to common carrier
natural gas pipelines for biomethane based
on standards to be adopted by the CPUC
– Set concentrations of COCs to protect public
health and ensure pipeline integrity and safety
– Establish requirements for monitoring, testing,
reporting, and recordkeeping
– Health protective standards to be based on
recommendations of ARB and OEHHA which
were released on May 15
POTW Biomethane Health
Protective Standards
Constituent of
Concern
Risk Management Levels - Health Based
Standards (ppmv)
Trigger Level Lower Action Upper Action
Level
Level
Carcinogenic Constituents of Concern
0.95
p-Dichlorobenzene
6
Ethylbenzene
0.84
Vinyl Chloride
9.5
60
3.3
Non-carcinogenic Constituents of Concern
22
216
Hydrogen Sulfide
12
120
Alkyl Thiols (Mercaptans)
240
2,400
Toluene
24
150
8.3
1,080
610
12,000
AB 1900 Provisions

The CPUC shall:
– Hold public hearings to identify
impediments that limit procurement of
biomethane in California
– Adopt policies and programs that
promote the in-state production and
distribution of biomethane

Costs addressed after standards
established, may consider subsidies
SoCalGas Proposed
Biomethane Tariffs

Biogas Conditioning/Upgrading Tariff
Service
– SoCalGas to design, install, own,
operate & maintain biogas
conditioning/upgrading equipment
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Need about 1000 scfm of biogas for
project to be economical
Settlement agreement issued May 3
SoCalGas Proposed
Biomethane Tariffs
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Proposed “Sustainable SoCal Program”
For Small to mid size wastewater
treatment plants (200 to 600 scfm)
SoCalGas to design, install, own, operate
& maintain biogas conditioning/upgrading
equipment
SoCalGas to
own biomethane
Part of general
rate case
Water-Energy Nexus
Governor’s
Workshops
 SCE WaterEnergy Program
Advisory Group
 CPUC Water and Energy Programs

– 2013-2104 EE program cycle to expand
water-energy nexus efficiency program
– Staff proposal for a Cost Effectiveness
framework for Water-Energy
– Water Energy Project Coordination Group
being formed
Questions
or
Comments?