Reducing Coal Use
The best way to keep carbon out of the atmosphere is by leaving coal in the ground. California presently gets over 20% (and America over 50%) of its electricity supply from coal-fired generation plants. In a global climate context it is meaningless for a single state to pursue climate emission reduction goals which result in its pollution being passed on to its neighbors. That is why California recently adopted a ban on future long term electricity supply imported from conventional coal power plants in other states. Working with the Western Clean Energy Campaign and others, CEERT has been urging municipal utility leaders to say no to coal and yes to renewables for their constituents.
Summary:
CEERT will monitor and work to influence the State Water Resource Control Board's implementation of its new Once-Through-Cooling policy that will strongly affect the state's 19 ocean-cooled power plants. CEERT has been presenting our survey of jobs at 16 proposed renewables plants to state agencies, community colleges, training programs, and labor groups. We also began work on a renewables supply-line manufacturing study.
Recent Developments:
Once-Through-Cooling (OTC) Plants
On December 14, the State Water Resources Control Board (SWRCB) rejected requests to modify its recently adopted Once-Through-Cooling (OTC) policy that affects ocean-cooled power plants. The policy became effective on October 1. Some plant operators said they could not meet the standard, and others sued. The Los Angeles Department of Water and Power (LADWP) said it would be infeasible.
The OTC policy establishes technology-based standards to implement federal Clean Water Act section 316(b) and reduce the harmful effects of cooling-water intake structures on marine and estuarine life. The policy applies to the 19 ocean-cooled power plants in California (including two nuclear plants). These plants currently can withdraw over 15 billion gallons per day using a single-pass (OTC) system.
CEERT put forward two candidates to advise the SWRCB review panel that is tasked with evaluating plant operators' extension requests (especially the complications and estimated costs of retrofitting the nuclear plants). It is generally expected that most, if not all, of the power plant operators will submit requests for extensions on the dates in the Implementation Schedule for at least for some of their units.
SWRCB has outlined a two-track approach to implementation and compliance:
- Track One is an option for owner/operators to install wet cooling towers by a date set for each power plant in the Implementation Schedule that is part of the adopted policy.
- Track Two is an alternative that allows owners to request an extension of their compliance date. It also allows alternative technologies or practices that meet 90% of the reduction in entrainment/impingement — but only after an owner/operator has shown that Track One is not feasible. "Feasible" generally does not include cost factors; however, nuclear plants were allowed to include cost factors in their feasibility argument when applying for a Track Two exception.
The extension review process will most likely have three stages:
- Within the next two months, SWRCB will organize a review panel of representatives from the energy agencies (CEC, CPUC, CAISO) and perhaps other agencies (Coastal Commission, Department of Fish & Game, etc.) to review Track Two requests for extensions.
- The review panel will evaluate the merit of each request as well as the cumulative impact of reorganizing the Implementation Schedule and potential impacts on grid reliability. The panel will submit its recommendations to the State Board, whereupon the SWRCB will hold a public hearing to take comments before voting on the recommendations.
- All owner/operators have to submit their extension requests by April. At the request of LADWP, the SWRCB will hold two public comment and hearing processes. The State Board hopes to resolve the requests from LADWP in July. The rest of the fleet that is managed by CAISO (including the two nuclear plants) will get a hearing in October.
CEERT will continue to monitor the process. We will also continue to coordinate with environmental groups, CEERT affiliates, and other stakeholders to understand positions, find areas of agreement, and offer public comment as appropriate.
Jobs Report
By invitation, CEERT has been presenting findings of our research report Workforce Needs for Renewable Energy Power Plants in various venues around the state, including the CPUC, CalEPA, the California Community Colleges Vocational Workforce Training Association, the California Apprenticeship Training Standards Board, and the California Labor and Workforce Investment Boards.
The audiences included government agencies that must understand workforce needs and colleges that are creating training programs for students looking at careers in the clean-energy sector. Labor organizations have also benefited from learning the results: almost 200 representatives of the building trades unions attended the California Apprenticeship Training Standards Board meeting, and the presentation drew many questions and considerable interest.
Most people are surprised to see the number of skilled and non-skilled jobs that large renewable projects require. Our research has helped several colleges rethink how they deploy their ARRA grants in workforce training, and spurred them to work with clean-power developers on setting up training programs.
Manufacturing Study
From October through December, CEERT's Rhonda Mills worked with the California Secretary of Labor, the Governor's Office of Economic Development, and Senior Advisors to the Governor on Renewable Energy to learn more about the supply-line needs and procurement practices of renewable developers in California. The project has had several fronts: a survey of developers' supply lines, discussions with developers and manufactures on increasing new investments in the sector, and discussions on ways to help existing California companies participate in the renewables build-out. Discussions are ongoing between state officials and several companies as a result of this work.
LADWP
New General Manager and Board President
The Mayor tapped Ron Nichols to be his candidate for LADWP General Manager. Nichols is a Navigant Consulting executive, and was an advisor to the Department of Water Resources, which oversaw energy procurement for IOUs following the energy crisis of 2001-02. He was part of a team that evaluated the effects of energy efficiency and renewable energy on carbon levels and electricity costs in California.
In addition, LADWP Commissioners elected Thomas Sayles as President. Sayles is a vice president of USC, and previously worked for Rentech, an alternative fuels company based in LA, and for Sempra Energy and its predecessors. He has served as California Commissioner of Corporations and as California Secretary of Business, Transportation and Housing.
Integrated Resource Plan (IRP)
The LADWP has not yet adopted its proposed IRP (described in our last Quarterly Report.) Questions remain about the recommendations, and the budgetary and rate increase needs for the options presented.
