Title: Draft AB 1257 Natural Gas Act Report
1Draft AB 1257 Natural Gas Act Report
- Rachel MacDonald
- Supply Analysis Office
- Energy Assessments Division
- IEPR Lead Commissioner Workshop
- California Energy Commission
- September 21, 2015
2About the presentation
- This presentation provides an overview of the
Draft AB 1257 Natural Gas Act Report. - Comments are welcome
- Produced through multi-division collaboration
with subject experts - Written comments are due October 1, 2015
- Assembly Bill 1257 (Bocanegra, Chapter 749,
Statutes of 2013) requires the California Energy
Commission to identify strategies to maximize the
benefits of natural gas as an energy source.
3Ch. 1 Introduction
- Energy Commission staff has addressed the
following areas relating to natural gas - Natural gas delivery infrastructure, safety, and
reliability - Natural gas for electric generation
- Combined heat and power using natural gas
- Natural gas as a transportation fuel
- Efficient natural gas use in heating and cooling,
water heating, and appliances - Natural gas and zero net energy buildings
- Other low emission natural gas resources and
biogas - Methane leakage associated with the natural gas
system
4Ch. 2 Pipeline Safety and Natural Gas
Infrastructure
- Pipeline safety continues to be at the forefront
- The passage of Senate Bill 705 (Leno, Chapter
522, Statutes of 2011), requires utilities to
submit safety plans. - The CPUC ordered the gas utilities to submit
Pipeline Safety Enhancement Plans (PSEPs) by
August 26, 2011 - Inspect or replace programs still underway
- Energy Commission funding pipeline integrity
management and inspection technologies research - Micro electro-mechanical sensors
- Piezoelectric sensors
- Ultrasonic transducers to monitor/inspect gas
pipelines girth welds/defects
5Ch.2 The Southern System Minimum Issue
- The Southern System Minimum (SoSysMin) flow
requirement ensures enough gas is delivered
through the region to meet the load in the SoCal
Gas southern system. - Necessary because of suppliers delivering
sufficient gas to meet demand. - Southern system suffers from isolation, limited
interconnection, and no direct access to gas
storage. - Loss of San Onofre increases demand for gas,
increasing curtailment risk. - CPUC granted SoCal Gas permission to purchase
make-up gas intended to be infrequent small
amounts as a short-term solution.
6Ch. 2 The Southern System Minimum Issue continued
7Ch. 2 Proposed solutions to SoSysMin
- SoCal Gas has filed application with the CPUC for
the North-South Pipeline. - 60 miles of 36 inch diameter pipeline with a
capacity of 800 MMcf/d - Creates ability for customer gas delivered into
northern system to reach southern system - Alternative projects proposed by other parties
- Transwestern
- TransCanada
- Kinder Morgan
- Evidentiary Hearings just concluded
- The CPUC is expected to issue a decision by the
end of 2015
.
8Ch. 2 Pipeline Safety and Natural Gas
Infrastructure
- Challenges
- Need greater data exchange and transparency
between utilities and agencies doing research. - Need additional analysis such as summer peak
conditions and line-pack conditions in the
afternoon. - Need continued public outreach regarding natural
gas infrastructure and safety. One of the most
common causes of pipeline failure is third-party
excavation damage.
9Ch. 3 Natural Gas Generation
- Roughly 40 of Californias natural gas use is
for electricity generation - Federal regulations expected to reduce coal and
increase natural gas demand, mostly outside of
CA - Mercury and Air Toxics Standards (MATS)
- Clean Power Plan (111d)
- Need to ensure sufficient gas delivery to
electric generation in high load conditions.
10Ch. 3 Natural Gas Generation and Renewables
- In 2013 roughly 21 of retail electricity sales
were from renewables. - Intermittent wind and solar generation varies
hour by hour, often minute by minute - California ISO must operate with enough
dispatchable natural gas resources to address
increasing variation from renewables. - Natural gas generation typically meets
reliability needs for local capacity and
ancillary services.
11Ch. 3 Natural Gas Generation
- Challenges meeting changing conditions for
renewable integration - Line packing can be done on a limited basis.
Line packing is when the gas line intentionally
holds more gas than is being used at a given
moment. Line packing is ultimately limited by the
Maximum Allowable Operating Pressure (MAOP) of
the pipelines. - Drafting is the opposite of line packing. If
relied on too much can lead to loss of pressure
in the pipeline.
12Ch. 4 The Role of Natural Gas as a Fuel for
Combined Heat and Power Systems
- CHP policy
- 2008 Climate Change Scoping Plan 4,000 MW of
installed CHP capacity by 2020 - 2010 AB 1613 Waste Heat and Carbon Emissions
Reduction Act - 2010 Governor Browns Clean Energy Jobs
- CPUC Settlement agreements D.10-12-035 (2010) and
D.15-06-028 establishes IOU procurement
requirements for CHP
13Ch. 4 The Role of Natural Gas as a Fuel for
Combined Heat and Power Systems Continued
- Economic Barriers include
- Non-bypassable charges
- Grid Interconnection
- Contract difficulties
- Research needed to better understand
- Monetization of the cost and benefits of CHP
- Infrastructure cost and operations
- Regulatory and market framework to align the true
value/benefits of CHP with utility incentives
14Ch. 5 Natural Gas as a Transportation Fuel
- Transportation roughly 36 of states GHG
emissions - Natural gas vehicles (NGV) with low NOx engines
can use natural gas or biomethane - Most NGVs are in fleet services and in the medium
and heavy duty vehicle sector - Lack of NG fueling infrastructure is a challenge
to greater NGV deployment
15Ch. 5 Natural Gas as a Transportation Fuel
Continued
- Research is needed to
- Support the ARBs Low-Carbon Fuel Standard
Intensity Value. - Expand natural gas and biomethane fueling
infrastructure. - Understand methane leakage from infrastructure.
- Develop and demonstrate functionality of large NG
engines. - Better quantify the impacts of NGVs on the
environment. -
16Ch. 6 Natural Gas and End-Use Efficiency
Applications Policy
- Assembly Bill 758 (Skinner, Chapter 470, Statutes
of 2009) Assembly Bill 758 requires the Energy
Commission with the CPUC and stakeholders, to
develop a comprehensive program for energy
efficiency in existing residential and
nonresidential buildings. - The Final Californias Existing Buildings Energy
Efficiency Action Plan in September 2015 - Includes plans prioritize to strategies and
approaches to double the rate of efficiency
savings in buildings in California through 2030. - Recognizes the importance of saving natural gas
energy efficiency.
17Ch. 6 Natural Gas and End-Use Efficiency
Applications
- CAs households and small businesses consume
about 1/3 of the total natural gas usage. - Residential for space and water heating
- Commercial for process loads
- Industrial sector consumes about 25 of total
natural gas usage.
18Ch. 6 Natural Gas and End-Use Efficiency
Applications
- Research is needed to
- Understand cost effectiveness of switching
technologies, i.e. replacing a natural gas water
heater with solar thermal. - Develop smart appliances to improve efficiency
while reducing equipment cost and air emissions. - Improve space heating/cooling technology and
efficiency to address technology cost and local
environmental air quality requirements.
19Ch. 7 Natural Gas Use for Zero Net Energy
Buildings
- The simplest explanation of a ZNE building is
that it uses only as much energy as it produces. - ZNE buildings have high levels of energy
efficiency of both the structure and appliances,
combined with clean, renewable power generation,
typically solar photovoltaic (PV).
20Ch. 7 Natural Gas Use for Zero Net Energy
Buildings
- Challenges
- Uncertainty and lack of clarity regarding natural
gas and ZNE - The Energy Commission should continue to explore
the connection between end-use natural gas
applications and the increased electrification
of buildings and electric appliances.
21Ch. 8 Natural Gas and Biogas as Low Emissions
Resources
- Biogas is the raw, untreated gas produced during
the anaerobic decomposition of biomass and
composed of mostly methane and carbon dioxide. - Biomethane is the treated product of biogas where
CO2 and other contaminants are removed. - Dairies, landfills, and wastewater treatment
facilities produce biogas as a by-product of
normal operation.
22Ch. 8 Natural Gas and Biogas as Low Emissions
Resources Policy
- Assembly Bill 1900 (Gatto, Chapter 602, Statutes
of 2012) requires CPUC to adopt pipeline access
rules to ensure nondiscriminatory, open access
for biomethane, regardless of the type or source
of the biogas.
23Ch. 8 Natural Gas and Biogas as Low Emissions
Resources
- Challenges
- Biogas typically contains greater levels of
contaminates/ constituents allowed in natural
gas. - Regulatory uncertainty and problems securing
long-term contracts. - Location constraints
- Interconnection costly for projects that deliver
a relatively small quantity of gas - Some locations dont have enough gas in local
pipe to allow blending - Processing biogas into biomethane plus
interconnection makes it significantly more
costly than natural gas
24Ch.9 Greenhouse Gas Emissions and the Natural
Gas System
- The primary source of carbon dioxide (CO2)
emissions is combustion in - Power plants
- Appliances
- Industrial processes
- Vehicles
- Natural gas has the potential to reduce CO2
emissions by shifting away from higher GHG
emitting fuels like coal and gasoline or diesel.
25Ch.9 Greenhouse Gas Emissions and the Natural
Gas System
- Methane is a highly potent, short-lived GHG
- Methane is the second most prevalent GHG emitted
in California, with CO2 being the most dominant. - About 90 of natural gas is methane.
- California imports around 95 percent of its
natural gas from productions areas located
outside the state. - Unintentional releases of methane fugitive
emissions can come from multiple sources along
the natural gas system, such as from leaking
pipelines, flange seals on compressors, abandoned
wells, or inefficient combustion.
26Ch.9 Greenhouse Gas Emissions and the Natural
Gas System
- Federal President Obamas Climate Action Plan A
Strategy to Reduce Methane Emissions. - California has taken significant steps in
reducing short-lived climate pollutant (SLCP)
emissions - Senate Bill 1371 (Leno, Chapter 525, Statutes of
2014) the CPUC with ARB, are developing rules to
reduce emissions/leaks from gas transmission and
distribution pipelines throughout the state. - Senate Bill 605 (Lara, Chapter 523, Statutes of
2014), ARB developing strategies by the end of
2015 to further reduce SLCP emissions.
27Ch.9 Greenhouse Gas Emissions and the Natural
Gas System
- Challenges and uncertainties estimating
emissions - Measurement and sample bias
- Quantifying super emitters
- Attributing emissions between oil and gas sectors
28Ch.9 Greenhouse Gas Emissions and the Natural
Gas System
- Research to reduce the uncertainty of estimating
methane emissions - Bring convergence between methods (i.e. bottom-up
and top-down) - Improve allocation methods for attributing oil
and gas emissions. - Improve methane emission factors or other methods
for use in research studies and inventories. - Early detection technology for large methane
leaks and source identification - Pathfinder a Gas Distribution Asset Management
Project (PGE) - Picarro a vehicle mounted leak sensor system
(PGE) - Cost effective methane mitigation/recovery
technologies to address known emission sources,
such as leaks from pipelines and other equipment
29Filing Comments
- Please submit comments to the electronic
commenting system here http//www.energy.ca.gov_e
nergypolicy/ - Or submit written comments by emailing to the
dockets office here docket_at_energy.ca.gov - Or handwritten comments may be submitted to
- California Energy Commission
- Dockets Office, MS-4
- RE Docket No. 15-IEPR-04
- 1516 Ninth Street
- Sacramento, CA 95814-5512
30Staff Contact Information
- Rachel MacDonald
- (916) 654-4862
- Rachel.MacDonald_at_energy.ca.gov