Energy Exchange: California

By Irene Burga

The Los Angeles City Council recently passed a unanimous resolution requiring Los Angeles Department of Water and Power – the largest municipally-owned utility in the country — to study how the city can achieve a 100% clean energy future. With help from research partners, including academic institutions, the U.S. Department of Energy, and environmental and consumer groups, the study has the potential to become a foundational roadmap for running the utility on only clean and renewable energy.

California currently has a goal to reduce greenhouse gas emissions 40% below 1990 levels by 2030, with half of the state’s energy supply powered by renewable electricity by 2030. To achieve these targets, it is imperative for the state to look seriously at how to get off of fossil fuel dependency for our energy needs. Utilities and cities can be the key to reaching those climate goals.

Mayor Garcetti’s LA Sustainability pLAn, sets even more stringent emission reduction targets than that of the state, calling on Los Angeles to reduce emissions by 45% by 2025, 60% by 2035, and 80% by 2050, all against a 1990 baseline. As one of eighteen U.S. cities committing to a clean energy future, L.A. is demonstrating tremendous leadership for others to follow suit.

Getting off of Natural Gas

California utilities currently rely on a massive amount of natural gas to generate electricity for millions of homes and businesses. The main component of natural gas is methane — a strong climate pollutant that has 80 times the warming power of carbon dioxide in the short-term. As the second largest natural gas consumer in the country, California’s methane pollution from natural gas transmission, distribution, and production is a major contributor to greenhouse gas emissions.

In 2014, the state’s oil and gas industry emitted approximately 270,000 tons of methane, nearly three times as much as was released by the Aliso Canyon storage facility in the recent disaster. This pollution has the same climate impact over the first 20 years after release as driving over 4.5 million cars for a year.

Real Public Health Concerns

There are also pressing public health concerns with the current energy system. Methane and volatile organic compound leaks from oil and gas facilities directly increase ozone smog levels, which aggravate asthma and other cardiac and respiratory ailments. And for three years straight, Los Angeles has been ranked the number one most contaminated city in the country for ozone pollution.

Low-income communities, and communities of color are burdened with outsized health and climate impacts associated with both oil and gas industry activities, and from the massive combustion of natural gas to make electricity. In Los Angeles, nearly half a million Latinos live within a half mile of an oil and gas facility, and all live in an air basin where nearly 17 separate power plants combust gas to supply electricity. Latino children suffer thousands of asthma attacks and missed school days due to the methane pollution and ozone smog resulting from these far ranging oil and gas activities.

Moving toward non-polluting renewable sources of energy means our most overburdened and vulnerable neighbors will benefit tremendously.

The Clean Energy Opportunity is Ripe in the City of Angels

LADWP delivers electricity and water to four million customers, supplying about a quarter of the electricity used in the state. Currently, only a quarter of Los Angeles is powered by renewable energy, mainly wind power, while the rest is powered by coal and natural gas.

With last month’s announcement of the study — along with the new direction coming from the Los Angeles city council and statewide legislation by way of SB 350 and SB 32 — we now have a real opportunity to upgrade LADWP’s 100-year old system.

The biggest obstacles to achieving the renewable energy  goals revolve around how to effectively make a switch as fast as possible, while maintaining energy reliability and keeping customer bills manageable.  In order to get the city’s renewable energy portfolio to 100%, there will need to be a significant increase in the rapid deployment of renewable technology, and it must be done so in a way that minimizes costs.

LADWP is already committed to getting off of coal completely by 2025. Now, as the renewable energy portfolio gets built up in Los Angeles, the same kind of commitment needs to happen for natural gas. The good news is that the clean technology currently does exist, and continues to advance at lightning speed.

Despite these challenges it is clear that switching to clean energy is vital for reducing anthropogenic climate impacts, as well as alleviating community health impacts. If the second largest city in the country can successfully transition into a full green economy, then Los Angeles will set a clear example of what steps must be taken to achieve this outcome in other metropolises. Our climate and our communities need this kind of leadership now.

Photosource: Flickr, allanjder

By Larissa Koehler

If you are anything like the typical Californian, you likely took the opportunity to get outside this summer and explore the great outdoors. Chances are you also took plenty of insect repellent to avoid becoming the latest offering at the mosquito buffet. Here in the Golden State, the California Public Utilities Commission (CPUC) is also fighting off BUGs – lest you think the CPUC is branching out into new regulatory territory, they are targeting the kind that harm our environment and public health: back-up generators (BUGs) that run on fossil fuels.

State regulators recently issued a proposed decision to end the use of fossil-fueled BUGs as a form of demand response – a clean energy tool intended to reward people who reduce their electricity use during periods of peak demand, or shift it to times of day when clean, renewable energy is abundant. Unfortunately, dirty, fossil-fueled generators are sometimes used to reduce demand from the electric grid during demand response events, but this does not help California meet its aggressive climate or clean energy goals.

Demand response programs should encourage people, buildings, and companies to use energy in a way that reduces the state’s need to make electricity from polluting sources. That’s why the CPUC’s recent proposal is a huge, positive step forward. However, there are also some changes that could make these advancements even more impactful.

How the CPUC could give the decision some teeth

Administrative Law Judge Hymes, who authored this decision, adopts an overarching goal for demand response programs to “assist the State in meeting its environmental objectives, cost-effectively meet the needs of the grid, and enable customers to meet their energy needs at a reduced cost.” In jointly filed comments, Sierra Club and Environmental Defense Fund (EDF) strongly support this sweeping reform, which precludes the use of diesel, natural gas, gasoline, propane, and liquefied petroleum gas in BUGs used as demand response.

While we applaud Judge Hyme’s decision that BUGs defeat the purpose of demand response, there are a few things that could make the decision even stronger:

• Ensure impact – The language in the proposed decision could be interpreted as delaying action stating, “The Commission should adopt a clearly identified prohibition.” Instead, the CPUC should make it clear that approving Judge Hyme’s decision would prohibit the use of BUGs as a form of demand response.

• Ensure enforcement – Currently, the prohibition as written allows non-residential customers enrolling in demand response programs to merely attest, or certify, that they are not using fossil-fuel powered BUGs. Without any additional monitoring, this kind of enforcement amounts to a prohibition without teeth. Rather than essentially taking a demand response enrollee’s word that they are not using dirty BUGs, it is imperative to construct a much more robust monitoring and enforcement program.

If implemented, these changes would make the CPUC’s proposal even more impactful – ensuring BUGs don’t undermine California’s demand response programs.

New California Demand Response Decision Comes Equipped with BUG Repellent
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The role of utilities

The proposed decision also addresses changes to how demand response is valued in the wholesale energy market, where demand response providers compete for contracts with California’s three big utilities: Pacific Gas & Electric, Southern California Edison, and San Diego Gas & Electric.

The accepted contracts count toward each utility’s Resource Adequacy requirement – the framework California uses to make sure the state has sufficient power supply to maintain reliable electricity services. Demand response ensures utilities can meet this requirement by offering a quantifiable amount of demand reduction (by lowering overall demand, the utility requires less electricity from power plants).

Unfortunately, the proposed decision preserves the utility role as “administrator” of the demand response auction mechanism. This is troubling, as it continues the potential for utilities to preserve what has traditionally been a relatively opaque and anti-competitive process that doesn’t always lead to procurement of the most clean, cost-effective resources. Instead, the market should be structured in a way that shifts administration responsibility to an independent and objective entity, and allows utilities and third parties to compete on an even playing field. Under these circumstances, there is a much better chance for a fair market that cultivates innovative, cost-effective resources.

With these changes, EDF believes the CPUC will be well on the way to a competitive, BUG-free demand response program.

By Jim Marston

Each year since 1981, the United Nations (UN) recognizes an International Day of Peace on September 21. The day is intended to strengthen peace both within and among nations.

As an environmental advocate, I can’t help but think about the effects of climate change on the current state of global peace. And while there are a few climate deniers out there, those who have looked at the science are saying climate change poses a serious threat to global security and peace.

Fortunately, the UN agrees – which is why they chose to focus this year’s International Peace Day on Sustainable Development Goals. Unanimously adopted by all 193 UN member states, the Sustainable Development Goals are broken down into 17 focus areas and are part of a broader agenda to fight inequality, injustice, and climate change by 2030.

Goal 7 – “ensure access to affordable, reliable, sustainable, and modern energy for all” – is a hugely important part of fostering global peace. The world needs affordable, reliable electricity to heat, cool, and power our homes, and to encourage economic growth. But we also need this electricity to be clean, modern, and efficient, so it doesn’t pollute our communities and exacerbate climate change.

Here are four ways the U.S. is doing our part to achieve an affordable, reliable, sustainable, and modern energy system for all:

Why Clean Energy is Center Stage on International Day of Peace
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• Affordability: In rural, poverty-persistent parts of the country, energy efficiency is the most direct way to save people money and reduce energy use, but it is often overlooked when families face hard choices about where to spend their money. On-bill financing is one solution that’s helping Americans finance energy efficiency upgrades without the burden of upfront costs. Upgrades are paid for over time (via utility bills) from the resulting energy savings of efficiency improvements. The program reduces energy use and saves people money, which is especially important in rural communities where median household incomes are shrinking compared to their urban and suburban counterparts. In North Carolina, non-profits like Environmental Defense Fund (EDF) and electric cooperatives (or “co-ops,” which supply power to 42 million Americans in rural areas) are partnering to expand on-bill financing.

• Reliability: Electricity touches everything we do. So when the grid goes down, the effects can range anywhere from inconvenient to life-threatening. With the help of smart meters, which now exist in nearly half of U.S. households and deliver detailed energy-use data to utilities, we can begin to identify outages faster and with great precision (meaning shorter outages). Smart meters can also enable energy management tools like demand response – which pays people to reduce energy when the electric grid is stressed – that can help improve reliability and reduce outages. New York recently approved an historic plan by its largest utility to distribute smart meters to millions of homes. This move will help increase efficiency, improve reliability, and lower pollution.

• Sustainability: An estimated 6% of U.S. energy use is water-related. That’s equivalent to the annual electricity consumption of 40 million Americans. Ensuring a sustainable future means addressing the way we manage our electricity and our water – part of what’s known as the “energy-water nexus.” Based in Austin, Texas, Pecan Street, Inc., the nation’s largest energy research network and an EDF partner, is studying and piloting some of the same strategies that are helping the energy sector get smart. Just like smart energy meters, smart water meters can help residents conserve resources by giving them access to meaningful data about when and how they use water. By saving water, we can save energy, too, which means fewer polluting power plants.

• Modernity: A key aspect of modern energy is that it should be accessible to all. While the price of solar panels has fallen 80 percent since 2008, many Americans reside in multi-unit buildings, or don’t own a home on which to install solar panels. But the solar game is changing and new models are emerging. Community solar, defined as “a solar-electric system that provides power and/or financial benefit to, or is owned by, multiple community members,” presents a unique opportunity to bring solar access to the masses. Cities like Los Angeles, California and San Antonio, Texas are actively working to expand community solar. And nationally, community solar is predicted to more than double between 2015 and 2016.

Global consensus

These examples reveal the new look of energy in America. Other nations are making clean energy progress, too, though their circumstances vary. For example, in Lesotho, Southern Africa, clean energy sometimes looks like solar panels on homes in rural areas that can’t be reached by vehicles. In Chennai, India, clean energy can be seen in the solar steam cooking system in a home-school for 650 orphans.

Yet, despite regional differences, this International Day of Peace – with Goal 7: Affordable and clean energy at center stage – reminds us that around the world, efforts to nurture a safer, more prosperous future are cut from the same cloth. It’s also a reminder that the world agrees with Secretary-General Ban Ki Moon’s message: “Affordable, clean energy is the golden thread that links economic growth, increased social equity, and a healthy environment.”

This post is part of a series produced by The Huffington Post to mark the occasion of the one-year anniversary of the adoption of the Sustainable Development Goals (SDGs, or, officially, "Transforming Our World: the 2030 Agenda for Sustainable Development"). The SDGs represent an historic agreement — a wide-ranging roadmap to sustainability covering 17 goals and 169 targets — but stakeholders must also be held accountable for their commitments. To see all the posts in the series, visit http://www.huffingtonpost.com/news/sustainable-development-goals.

By Jorge Madrid

By: Luis Gutierrez, Senior Associate, Leadership for Urban Renewal Network (LURN) and Jorge Madrid, CA Campaign Director, Environmental Defense Fund (EDF)

It’s a warm, sunny day in August at the iconic Mariachi Plaza in Boyle Heights, California. More than 400 local residents have come together to dance to the classic tunes of Selena and the cumbia-rock fusion of El Conjunto Nueva Ola – the entire stage powered by solar. They’re enjoying delicious vegan treats, participating in a live mural art project, and screen printing their own reusable tote bags. Many are collecting free shade trees to plant at home, learning about bicycle safety and receiving free helmets, and discovering information about a new vehicle trade-in program that allows Californians to swap out their older vehicles for a new or used electric car. So what exactly is this celebration of music, art, culture, and clean energy? It’s Eastside Sol.

Event organizers Jorge Madrid and Luis Gutierrez reflect on the origins of Eastside Sol, its driving principles, and what’s in store for the future.

How did the idea for Eastside Sol come about?

Jorge: I started working in clean energy policy during the peak of the economic recession, around 2008. Many advocates, myself included, believed clean energy could combat climate change, reduce local air pollution, and alleviate some of the economic malaise that hit low-income communities of color first and worst. Problem was, very few of these new clean energy technologies and programs were showing up in neighborhoods like the one I grew up in, on the Eastside of Los Angeles. This needed to change. I knew I wanted to do something to celebrate the culture and community where I grew up and introduce new technologies and programs that could help folks save money, access jobs and resources, and breathe cleaner air. But I had no idea how to pull it off until I met the folks at REPOWER LA and LURN.

Luis: LURN was working on several projects related to land use and local economic development, including a citywide effort to legalize street vending, a project to reimagine vacant lots throughout South Los Angeles, a healthy foods purchasing-cooperative for small businesses, and a campaign to utilize art in combatting gentrification and displacement in Boyle Heights. When Jorge approached us with this wild idea, we thought it fit perfectly with our style of projects.

How has this event evolved since the first Eastside Sol last year?

Jorge: The first Eastside Sol focused on solar access and equity issues. This year, we wanted to expand the scope of the event and provide residents with more, because we know there are complex challenges facing our neighborhood. Intersectional challenges need intersectional solutions.

Boyle Heights ranks among the top 5 percent most environmentally burdened neighborhoods in the state. Simultaneously, the community is dealing with a lead contamination disaster and major pollution from freeways and heavy industry. The neighborhood is 70 percent renters and the median income is $33,000. Boyle Heights is also on the front lines of gentrification and displacement, a growing concern in Los Angeles and many major U.S. cities.

We believe clean energy, like solar power and electric vehicles, can help families in Boyle Heights and similar neighborhoods. It can create local, well-paying jobs, lower energy bills, reduce pollution impacts and health costs like asthma, and create more affordable mobility options. California, and cities like Los Angeles, are rolling out programs that can help residents access these technologies and make them more affordable.

Clean energy is not a silver bullet to address all the challenges facing the Eastside, but we are confident it can be part of the solution.  

Eastside Sol Celebrates Community, Culture, and Clean Energy in Los Angeles
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What have you learned from Eastside Sol about community building?

Luis: To pull off the delicate balance between entertainment, information, and engagement, we discovered five values while planning our 2015 event and refined them this year:

• Fun – If people aren’t having a good time, they’re not going to grab onto the ideas we’re sharing and they’re certainly not going to share their opinions and advice. So, to get people to see the entire event, we turned it into a game of “loteria.” Visiting different stations allowed you to collect stamps on a card. Once attendees reached a certain number, they traded in their cards for a food ticket. The awesome music during the event helped keep people happy and moving!
• Culture – We worked closely with community organizations and members to ensure the event was an extension of local culture and values. Everything – from the food to the messaging and music – was planned and coordinated collectively. We wanted folks in the neighborhood to feel like it was their space.
• Local leadership – This event was a success because we worked closely with community leaders and organizations. We asked for their help in leading the planning and identifying the themes for the event.
• Tradition and history – We started Eastside Sol knowing the community was already doing a lot for the environment – re-using plastic containers, repurposing water for gardens, etc. Knowing this, we sought to introduce residents to services and resources that would help augment those existing practices.
• Accountability – Large agencies, such as LA Metro and utility companies, were critical in the development and execution of Eastside Sol. However, very early in the process we opened consistent and clear lines of communication to ensure their participation served community needs and the spirit of Eastside Sol. We also knew we had to hold ourselves accountable to community needs and concerns.

What’s next for Eastside Sol?

Luis: We want to return to Mariachi Plaza next year and produce an even bigger event with more resources for the community. Additionally, we may replicate our model in other neighborhoods and cities throughout Los Angeles and California. We want to work with as many impacted communities as possible to ensure they are at the table where important environmental, transportation, and land-use decisions happen. This, to us, is one of the best ways of engaging underrepresented communities – through fun, art and culture, and collaborative community spaces.  

This post originally appeared on Huffington Post.

By Lauren Navarro

After a long and hard-fought legislative session, the dust is settling in California’s capitol. Many forward-looking clean energy bills sit on Gov. Brown’s desk, while others did not make it that far. It’s a time when legislative staff and advocates step back, breathe a sigh of relief, and take stock of what has been accomplished, what was lost along the way, and – most importantly – what remains to be done.

AB 1937 (Gomez) – a bill to avoid new natural gas plants in heavily burdened communities – and other key energy bills await the governor’s signature. Efforts to expand the entity that manages our electric grid, the California Independent System Operator (CAISO), also continue. For the state to realize its vision of an economy powered by clean energy resources, it is crucial Gov. Brown sign these key energy bills and work closely with the legislature to expand CAISO.

Exciting progress

The California State Legislature advanced several important energy and climate bills to the governor’s desk this year. Here at Environmental Defense Fund (EDF), we give them all heartfelt congratulations because continuing California’s climate and energy policy leadership is vital to the state’s economy, the health of our citizens, and our ability to lead in clean energy technology development. And the Golden State has proven all this can be done in a way that expands consumer choice. For this reason, we see the following bills as particularly significant to sign into law:

• AB 1937 requires utilities, in their procurement plans – which describe how they will obtain electricity to sell – to actively look for and give preference to new fossil fuel plants outside areas already suffering from significant pollution. Instead, they will be prompted to draw on the benefits of clean, renewable power in these communities. It further assures regulators and utilities follow the the state’s loading order – a preference for low-cost, clean resources like energy efficiency and renewables – before the California Public Utilities Commission (CPUC) approves new fossil fuel plant contracts.
• AB 2454 (Williams), requires the CPUC to use the latest studies of demand response potential in determining the availability of resources that reduce energy demand. Demand response is a technology that rewards customers who use less electricity during times of peak, or high, demand, relying on people and technology, not power plants, to meet electricity needs. The bill will help bring more high-value demand response to California by ensuring the CPUC makes decisions based on the most up-to-date information regarding the kind of demand response available and what it can do to reduce costs and California’s reliance on fossil fuels.

These pieces of legislation will help bolster California’s reliance on low-cost, clean resources like demand response, energy efficiency, and solar if signed. In turn, they will yield critical environmental, health, and economic benefits improving the quality of life for communities and people across California.

Post-Legislative Session, California Is closer to Important New Clean Energy Laws
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 The work ahead and what was left on the table

Normally, after the legislative session and the bill-signing period, legislative staff and advocates enjoy a recess reminiscent of summer break: they relax, have fun, go hiking, and enjoy a relatively slow period, but in beautiful fall weather. Not this year, though, at least not for those of us working on an effort to create a western regional energy market. By expanding California’s grid beyond its borders to connect with grid operators throughout the west, the region can share resource more easily and efficiently. Specifically, the geographical size of a western regional grid would help integrate more renewable energy resources. We’ll continue working steadily on a “CAISO expansion” proposal for Gov. Brown to present to the legislature first thing next session in January.

Specifically, the geographical size of a western regional grid would help integrate more renewable energy resources.

This is good news. Not only is a regional market capable of integrating renewables and reducing harmful pollution, this extra time provides an opportunity to ensure it does so in a way that benefits California and the other participating western states. This requires establishing a tracking mechanism to understand how a regional grid might affect greenhouse gases throughout the region, securing rights for clean energy, environmental, and other stakeholders chosen by the states, and ensuring all states’ policies are respected.

Finally, the end of the legislative session usually includes reflection on what did not make it through the process. Although AB 2460 (Irwin) was held in Senate Appropriations in early August and, thus, will not make it to the governor’s desk, we want to acknowledge Assemblymember Irwin for pursuing it. AB 2460 would have extended through 2022 the life of a solar water heating program set to expire in 2017, with half of the program’s budget directed towards low-income housing and disadvantaged communities. California needs leaders like Irwin who will continue to pursue exciting clean energy opportunities with a focus on the communities that need them the most.

Clean energy leadership

With the legislative session now behind us, we thank California legislative leadership for their hard work and urge the governor to sign these and other important clean energy bills now sitting on his desk. By protecting communities burdened by pollution from more natural gas fired power plants in their back yards, and opening the door for more demand response, AB 1937 and 2454 represent huge steps forward for clean energy in California. Together they will help all Californians breathe a little easier and increase our access to cost-saving clean energy. And we will continue working with the governor and legislature during the recess to create a regional energy market. In doing so, we can hit the ground running when the legislature reconvenes in January.

By Adam Peltz

Infrared footage reveals massive methane emissions from a gas storage facility in California's Aliso Canyon

Last fall, a massive leak from a natural gas storage facility in California’s Aliso Canyon released nearly 100,000 tons of methane pollution into the atmosphere — the largest uncombusted release of this potent greenhouse gas in U.S. history, and seen by many as the industry’s worst environmental disaster since the BP oil spill.

Facilities like Aliso Canyon inject gas pumped in from elsewhere and withdraw it when needed for electric production or heating. Aliso Canyon is the largest field of its kind west of the Mississippi River. There are around 400 such facilities across the U.S., about 14 in California. Until recently, regulatory oversight of these facilities has been uneven at best.

The exact cause of the Aliso Canyon incident is still being investigated, but all signs point to a problem in the aging, corroded casing of one of over a hundred individual wells at the sprawling site. Neither the utility’s maintenance programs nor the state’s lax enforcement of 1980s-era policies were sufficient to prevent this disaster. But now that’s about to change.

California, Feds Eye Tough New Rules

In July, California’s Department of Oil, Gas & Geothermal Resources (DOGGR) proposed new regulations to modernize the way gas storage wells are designed, constructed, tested, maintained and operated. The proposal is strong in many ways, squarely addressing many of the key issues related to maintaining integrity and preventing gas leakage.

As noted in EDF’s public comments, with a few key improvements these rules could be some of the strongest in the nation.

But California regulators aren’t the only ones developing new policies to prevent another disaster. Spurred largely by Aliso Canyon, the federal Pipeline and Hazardous Materials Safety Administration (PHMSA), which traditionally limited its gas regulation to pipelines, has launched a rulemaking that could impact hundreds of gas storage facilities across the country.

“Consensus Standards” May Fall Short

PHMSA action could be very good news. The question is whether the regulations are strong – and whether they act as a floor, rather than a ceiling, for state oversight. The agency’s evident approach is to adopt the industry “consensus standards” embodied in guidance documents from the American Petroleum Institute. This could pose a problem; the standards themselves caution that they are “intended to supplement, but not replace, applicable local, state, and federal regulations.”

Not only is PHMSA crafting regulations based on industry guidelines that were never meant to serve that purpose, but the agency is also doing it on an extremely fast timetable with minimal public input. Stakeholders (including industry, the public, and even the states that will co-regulate this activity) will apparently not have a chance to respond to the rules until after they have the force of law.

Getting the Rules Right

Here are some key issues that PHMSA should get right from the start.

1. Coordination between state and federal regulators

One of the thornier issues facing PHMSA, California and the dozens of other states with gas storage facilities is how states and the federal government will share jurisdiction over the wells. For facilities that generally do not transport gas across state lines (a.k.a. intrastate facilities), states will have authority, but only if the state rules are certified by PHMSA.

That sounds okay on its face, but PHMSA’s certification plans would require states to adopt its rules word-for-word, opening possible conflicts with current and future state rules that might be stronger than the ones PHMSA adopts. With new California rules expected in the next several months, the sooner state and federal regulators begin discussing options for smooth sharing of authority over intrastate wells, the better.

1. Missing pieces

There is a potential for a true crisis at interstate facilities (generally those that do transport gas across state lines – about half the country’s storage wells). Historically, states have set de facto standards for construction and operation of those wells. But with PHMSA coming into the fold, these wells would now fall unambiguously under federal authority.

PHMSA is developing gas storage rules from scratch and, unlike states, does not have well construction rules of general applicability – i.e., that apply equally to production wells, injection wells and storage wells – to fall back on. The API guidelines that PHMSA is using as a basis for the rules do not cover these essential topics. Unless PHMSA broadens its scope, some of the most important aspects of well integrity may fall through the cracks.

One easy way to avoid this possibility this would be to allow state well construction rules of general applicability to apply to all wells, regardless of their designation as intrastate or interstate.

1. Manage Risk

Risk management planning is a key component of California’s gas storage rule proposal, and will likely be a major part of a federal rule. In order for risk management planning to be truly effective, PHMSA should review and approve plans prior to their implementation, and provide guidance to operators about how much they are expected to reduce risks (one commonly used standard is “as low as reasonably practicable, or “ALARP”). In the absence of such a standard, it will be impossible to determine whether an operator’s risk management plan is sufficiently stringent.

1. Equal protections for equal threats

There are no significant engineering differences between intrastate and interstate gas storage wells. But PHMSA’s rules could usher in an era when they are subject to different requirements even within the same state. If a state rule goes beyond PHMSA’s minimum safety standards, it will apply to intrastate facilities but not to interstate facilities.

A legal technicality should not determine the standards for protecting the health of our communities and our environment.

To get around this, PHMSA can require operators to provide as part of their risk management plans an intention to follow all state rules that do not conflict with PHMSA rules, except where operators can shows that alternative risk control options address the risks raised by a state rule at least as well as state’s solution. This would harness each state’s local expertise and ensure that all wells in a state are responsive to the best rules in that state, whether state or federal.

Leaving a Legacy

For state and federal rule makers alike, this is an historic opportunity to get gas storage right for safety and the environment. Regulating the integrity of gas storage wells requires significant, specialized expertise and in order for government to play a meaningful regulatory role it needs to do more than simply instruct companies to follow industry guidelines.

California and PHMSA should work together to implement leading practices in gas storage well integrity management, reduce risks as much as reasonably practicable, and remain responsive as technologies and practices improve over time. Finding the right balance between prescriptive and flexible rules is critical to preventing another gas disaster.

By Tim O'Connor

Click image to play video.

After passing the State Assembly Appropriations committee on Wednesday, a little known bill – SB 1441 – is headed for the assembly floor, which is slated to deliver big benefits for consumers and the environment. Not only will the bill create a strong market driver for utilities to operate tighter infrastructure and save California consumers tens of millions of dollars per year, the simple yet innovative approach it takes can chart a course for curbing methane leaks across the industry.

But first, a little context.

As recent as a couple years ago, non-hazardous natural gas leaks and venting were a commonly accepted occurrence across gas utility infrastructure. As long as a leak or a venting wasn’t likely to ignite, utilities could let it go – with many small persistent leaks lasting for decades. And though it sounds hard to believe, gas utilities continuously collect money from consumers through their gas bills to cover the amount of gas utilities lose, even though they also collect money from those same ratepayers to upgrade pipes. This market design works only to protect utilities – giving them money to fix leaks while also covering them if they don’t.

In 2014 however, the legislature made a major change to utility practices, saying gas companies had to use best practices to stop leaking and vented gas because methane, the main component of natural gas, is a potent climate change gas in addition to a safety hazard. Although SB 1371 also said utilities would have to adjust downward the amount they collect from ratepayers based on the amount they lose to the air, uncertainty in legislative terminology left utilities arguing that they should continue to get money to cover their lost gas – a debate which has persisted to present day.

Ratepayers shouldn’t owe money for utility leaks – SB 1441 forces gas companies to run a tighter ship

In 2014, California’s oil and gas industry is estimated to have lost more than $50 million worth of methane, with more than $20 million of that coming from gas utility infrastructure. All told, this gas is enough to have met the needs of about 400,000 California homes, had it not been lost to the air.

Across the gas industry, regulatory efforts like SB 1371 and new rules at the California Air Resources Board are underway to cut the amount of gas lost to the air. But, as long as utilities can force consumers to pay for leaked and vented gas, those efforts can only go so far. By changing state policy from one that says ratepayers owe gas companies for their leaks, to one that says gas companies need to shoulder the burden of their own leaks, the entire system will become tighter and more efficient.

Beyond fixing California’s policy where utilities argue they should have it both ways, SB 1441 is a landmark bill that could influence policy to stem gas leaks across gas system. State Assembly lawmakers have another major opportunity to protect the consumers and the environment. With the major gas utilities opposed to this effort, lawmakers must stand up for the people of California and pass this important bill.

By Irene Burga

Last month, lifelong Kern County, California resident Felipa Trujillo discussed the health impacts her community, located near oil and gas operations, has experienced. “It’s the most contaminated place in the country. I have witnessed many children getting cancer and asthma, and would like to leave a positive future for my grandkids.”

Trujillo was one of over twenty witnesses that appeared last month before the California Air Resources Board (CARB) to testify on the need for strong statewide rules to reduce methane pollution from the oil and gas industry. During the meeting, Board members heard about the importance of the rules from many powerful witnesses, ranging from concerned mothers and fathers, impacted community members overburdened by poor air quality, nurses who consistently treat asthma patients, industry experts, and air district agents from throughout California.

Several Porter Ranch residents testified on what it was like to endure one of the worst methane leaks in U.S. history right in their backyard. “A month prior [to the Aliso Canyon leak being reported] my daughter Emma, 22 months at the time, began showing signs of asthma. Two months after the gas leak was reported, my daughters were diagnosed with acute exacerbation of asthma,” described Porter Ranch resident, Jaqueline Shroeder, calling on the Board to take swift action in approving strong rules.

Big Solutions Needed for Big Health Problems

The oil and gas-rich lands of the San Joaquin Valley and the South Coast Air Basin, where Trujillo and Shroeder reside, respectively, have been some of the most productive energy fields in the country over the last century. However they are also among the nation’s most polluted regions. These districts consistently fail to meet national air quality standards for criteria pollutants, like smog-forming ozone, and have been the subject of much debate over pollution control and its adverse effects on residents.

Regulating methane is critical for the health of these communities because standards that reduce methane emissions from oil and gas development will simultaneously reduce levels of smog-forming volatile organic compounds (VOCs) and hazardous air pollutants.

Now, by proposing the strongest oil and gas methane standards in the nation, California has taken a big step forward in reducing the climate concerns associated with oil and gas methane pollution, and protecting the health and well-being of its residents.

CARB Takes Community Health Concerns Seriously

While poor air quality affects all California residents, disadvantaged communities are disproportionately burdened by pollution from the oil and gas industry, and can therefore especially benefit from these rules, a fact that Chair Mary Nichols acknowledged in her opening remarks. “Many oil and gas facilities are located in or near disadvantaged communities and this regulation will reduce over 100 tons per year of toxic emissions that have an impact on those communities.”

In California, people of color, particularly Latinos, are most affected by oil and gas pollution. Of the 1.3 million Californians that live within a half mile from an active oil and gas facility, over 500,000 are of Hispanic origin. Latinos make up 45% of the worst smog regions of the state, and, nationwide, Latino children are more likely to have asthma, and those with asthma are twice as likely to die from an asthma attack, than non-Latino whites

During the discussion of the rule, the importance and impact of strong community voices became clear.  Board member Phil Serna remarked “This is an opportunity that requires us to reflect back on our mission as an agency which is first and foremost to protect public health. [Methane] has a very strong health component and I’m very glad to hear folks give their very relevant testimony of what it is like to live next to [oil and gas] facilities.”

Continued Community Voices Are Needed

At the close of the meeting the Board unanimously voted to proceed with the strengthened methane rule, which is on track to be finalized in January. While the Board sent a definite signal that a strong rule is on the horizon, there is still work to be done to ensure the final rule is as robust and effective as possible. A public comment period that begins this fall will afford community members one last opportunity to ensure their concerns are heard, which is why it is critical for impacted communities to continue demanding regulators approve strong rules.

Despite the work that remains, last month’s CARB Board meeting gives a reason for optimism about the future of California’s climate, and the public health of its communities. As Kern County resident Juan Flores stated in his testimony to the Board, “Today is a landmark day … and I will be happy to go back to my community and say, ‘We won’t hear excuses anymore. Now we have a clear plan for protecting our health.’ ”

By Larissa Koehler

Calvin Bryne co-authored this post.

As with other environmental policies, California leads the nation in encouraging electric vehicle (EV) adoption. The state has made huge strides in promoting cleaner cars, and opportunities remain to fully tap the benefits of this clean energy resource.

California as a model for national policy

In California, vehicles are responsible for almost 40 percent of total greenhouse gas emissions, making transportation the state’s greatest sole contributor to climate pollution. The enormity of this problem was an impetus for California becoming the first state to adopt comprehensive vehicle emissions standards in 2009. Modeled largely after California’s regulations of the same name, the federal Clean Car Standards set national greenhouse-gas reduction goals for vehicles made between 2017 and 2025, and established incentives for manufacturers to produce technologically-advanced new cars.

The standards aim to improve vehicle fuel economy and reduce harmful climate change-causing pollution. Last month, the U.S. Environmental Protection Agency (EPA) and National Highway Traffic and Safety Administration (NHTSA) released their midterm review of America’s Clean Car Standards. The review brings good news: the U.S. is on track to achieve both of these critical goals.

1 California Air Resources Board, California Greenhouse Gas Emission Inventory – 2016 Edition

Notably, the midterm report finds by the year 2025, the Clean Car Standards will eliminate six billion metric tons of climate pollution – nearly double our nation’s fuel economy performance – and save Americans $1.7 trillion at the pump.

Likewise, policymakers are looking to California as a model when it comes to transitioning the nation to EVs.

Putting electric vehicles in the fast lane

Replacing fossil-fueled cars with EVs reduces reliance on petroleum and decreases the amount of carbon dioxide and other harmful pollutants in the atmosphere. So, ensuring customers have access to affordable, functional EVs is a key step in any comprehensive plan to reduce emissions from transportation.

In addition to the Clean Car standards, California has taken significant action focused directly on promoting the use of EVs:

• Governor Jerry Brown’s 2012 Executive Order established a goal of 1.5 million zero-emission vehicles in California by 2025.
• SB 350 called for widespread electrification of transportation and set concrete emissions-reduction goals.
• SB 1275 focused on ensuring low-income and disadvantaged communities are able to benefit from EVs and charging infrastructure, as they are most likely to be burdened by harmful transportation emissions.

Spurred by these state policies, EV offerings in California make up an increasingly large share of the market and are becoming more technologically advanced. In 2009, only one light duty EV – the Tesla Roadster – was available to U.S. customers. Today, more than 20 models are available, accommodating multiple customer price and battery preferences.

In addition, regulatory actions have further bolstered EV purchases: the California Public Utilities Commission (CPUC) and California’s utilities have developed promising pilots aimed at increasing statewide charging infrastructure and EV adoption.

California Shows the Nation How to Pave the Way for More Clean Cars
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Roadblocks

Despite progress, California faces barriers currently impeding widespread use of EVs – a key part of meeting California’s long-term climate and clean energy goals:

• Infrastructure – One of the biggest roadblocks to increased EV adoption is the current low number of charging stations in the state – meaning drivers aren’t assured that they can get to and from their destination without being stranded. Currently, California still only has about 3,900 charging stations. We must increase the number of charging stations dramatically for California to meet its emissions-reduction goals. These include EV-charging installations at single family homes of EV owners, but also at workplaces, apartment buildings, and other shared spaces. While SB 1275 will encourage charging infrastructure in disadvantaged communities, state policymakers and regulators should continue to prioritize EV expansion in these communities. Thankfully, the CPUC – in cooperation with utilities and private companies – is facilitating the installation of more charging stations throughout the Golden State by implementing the pilots described above.

  2 Bloomberg New Energy Finance

• Cost-competitiveness – The cost of producing EVs has fallen steadily, but their sticker price is currently higher, on average, than their gasoline-powered counterparts (though their cost over time, taking fuel prices into consideration, has been shown to be lower). While the transportation industry has made tremendous strides in lowering costs of battery technology, they must continue to make advancements in developing attractive financing options, and enhancing marketing, education, and outreach to facilitate increased customer engagement.
• Grid balance – EV batteries can store electricity when renewable energy is plentiful and electricity is at a lower price, and then use it when demand and prices rise. This helps reduce the need for dirty generation and expensive grid upgrades to accommodate higher demand. However, shift in customer behavior is critical. Without it, EV charging will actually increase demand on the grid at peak hours, potentially resulting in more pollution. As a solution, the CPUC has begun taking steps to make time-of-use electricity pricing the default option in California. Time-of-use pricing makes electricity cheaper when it comes from clean energy resources and more expensive during predictable times of peak demand when electricity comes from dirtier sources. This transition will benefit the grid by better incentivizing customers, including EV owners, to use electricity when it is cleaner and more affordable.

California has a longstanding history of pioneering advancements in clean energy solutions, and current progress in the state’s transportation sector offers an optimistic glimpse into the future. EVs today are less costly and more reliable than ever before, meaning they are well on their way to displacing a large portion of dirtier passenger vehicles. To be able to witness these changes across the state and the nation, it is imperative we maintain forward momentum and tackle barriers to increased EV adoption. In doing so, we will help ensure California – and the nation – are headed down the right road toward a clean energy future.

By Tim O'Connor

As a major producer and consumer of oil and gas, California can set the bar for reducing methane leaks. And today, the Golden State showed it’s up to the challenge, making a critical change in proposed rules aimed at cutting methane pollution from oil and gas wells, pipelines and equipment of the like – now putting California firmly on the path to adopt the nation’s strongest methane controls anywhere.

This matters because methane, the main ingredient in natural gas and a common byproduct of oil production, is a damaging greenhouse gas, with more than 80 times the warming power of carbon dioxide over a 20-year time frame.

A big lesson-learned from the months-long, mega-gas leak at Aliso Canyon, and the similarly tragic eight month gas leak in Arvin, CA in 2014, is that oil and gas infrastructure can fail. While leaks the size of Aliso Canyon are rare, it’s an example of the risk we face daily as this infrastructure ages, and a sobering reminder of how important it is to have protections that ensure methane stays in the pipelines—and not in our air.

Stepping Up Leak Detection

The California Air Resources Board (CARB) stepped up requirements in a final revision to its methane rule proposal by standardizing around quarterly leak inspections at new and existing oil and gas facilities. This improvement follows the latest science on what is needed to effectively detect and reduce methane emissions —because we know that regular inspections are the only way to stay ahead of unpredictable leaks.

It also removes a loophole that the oil and gas industry was pushing to allow operators to inspect facilities less often based on good previous performance. By requiring permanent quarterly inspections, this proposal can prevent elusive methane leaks before they do damage to our health and our environment.

Like California, Federal Rules Need to Address Existing Sources

The U.S. Environmental Protection Agency efforts to control methane leaks across the country should take a page out of California’s proposal. Unlike the Golden State’s rules, current national standards only cover oil and gas facilities that will be built or updated in the future, not the over one million existing facilities in use today that, cumulatively, generate almost 10 million metric tons of methane pollution a year.

Leaks from existing facilities represent not only health and environmental concerns but also huge costs to consumers—for example, in 2014 California’s oil and gas industry emitted nearly three times the methane pollution that was released during the Aliso Canyon disaster. This wasted gas is worth more than $50 million, and could have met the heating and cooking needs of about 400,000 homes in the state, had it not been lost. The kicker is customers are paying for this much of this lost gas on their monthly utility bills, and in their lungs through the degraded air they breathe.

CARB’s move to address both new and existing sources of methane pollution from the oil and gas industry is a major step forward in the march that has already been happening around the country in other states such as Colorado, Wyoming,  Pennsylvania, and Ohio. Today, California is ahead of the pack.

It’s not a moment too soon. Yet another storage facility in California, the PG&E McDonald Island facility in the Sacramento-San Joaquin Valley was found leaking – and is just the latest example showing that inspections like what CARB has proposed are the only reliable way to detect leaks.

CARB deserves our support for making the state’s rules as strong as possible, by requiring companies to rigorously find and fix methane leaks before they damage our communities and the air we breathe.

By EDF Blogs

Each month, the Energy Exchange rounds up a list of top clean energy conferences around the country. Our list includes conferences at which experts from the EDF Clean Energy Program will be speaking, plus additional events that we think our readers may benefit from marking on their calendars.

Top clean energy conferences featuring EDF experts in July:

July 26-28: NY Rev Summit (New York, NY)
Speaker: Rory Christian, Director, New York Clean Energy

• Building on New York’s Reforming the Energy Vision (REV) initiative, Infocast’s second REVolution summit will focus on how utilities are planning for the future, and how they will explore both the promise and the practical development of microgrids, renewable energy, and emerging opportunities for third party providers. The summit will also consider various state efforts to finance and encourage clean energy markets sufficiently to ensure a robust, sustainable power delivery system.

  Other top clean energy conferences in July:

  July 6-7: The Energy Cultures Conference – Sustainable Energy Futures: Understanding Behavior and Supporting Transitions (Wellington, New Zealand)

  • The purpose of this international conference is twofold: to share findings and conceptual advances from the University of Otago's Energy Cultures research program, and to invite other research perspectives on energy-related behavior and its role in transitioning to a sustainable energy future. The conference examines behavior change that includes households; businesses and governments; energy and mobility; and methods of change, including single-factor and systemic.

  July 11-13: National Town Meeting on Demand Response + Smart Grid (Washington D.C.)

  • This conference focuses on the business and policy aspects of demand response and its enabling technologies and applications. One day of the conference will be devoted to roundtable discussions featuring experts in demand response and smart grid. During the roundtables, experts discuss – with each other and with the audience – the latest trends, issues, and business developments. The event includes panels, case studies, and best practices presentations.

  Check out the top clean energy conferences of July 2016
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  July 21: The Illinois Renewable Energy Conference (Normal, IL)

  • This one-day event will feature plenary session speakers of interest to all areas of renewable energy, plus breakout sessions. Solar policy sessions include a discussion of Property Assessed Clean Energy (PACE) equity, and efficiency policy sessions include a panel featuring Suzanne Stelmasek, of Elevate Energy, along with Julia Friedman and Nikhil Vijaykar, of the Midwest Energy Efficiency Association. Other breakout sessions include a technical solar discussion with Harry Ohde of the international electrical workers’ union, as well as an energy efficiency session focusing on efficiency’s economic impact and jobs creation.

  July 23-24: Power Shift Northeast (Philadelphia, PA)

  • Energy Action Coalition will host this event at Temple University. Young climate and social justice leaders from the Northeast will gather for a weekend of workshops, trainings, speakers, and movement-building. Applications for scholarships covering the cost of event tickets are due no later than Sunday, Jul. 17, at 11:59 p.m. ET.

  July 23-27: National Association of Regulatory Utility Commissioners: Summer Committee Meetings (Nashville, TN)

  • This event is one of three annual meetings where members of the National Association of Regulatory Utility Commissioners (NARUC) gather to set policy, share best practices, and discuss crucial industry issues. NARUC committees include Electricity; Energy Resources and Environment; Gas; and Water. NARUC’s summer conference sessions will include litigation and legislative reports, as well as panels about topics that include loss of the Aliso Canyon Storage Facility and maintaining reliability of the bulk electric system, as well as developments in the Ohio debate about competitive electricity markets. [In June, 32 organizations, including Environmental Defense Fund, sent a letter to NARUC, making recommendations for developing good rate designs.]

  Photo source: Flickr/National Retail Federation

By Jamie Fine

California is at the forefront of the clean energy revolution. Innovative policies have helped make the state number one in solar installations and clean tech, and meet the 33 percent renewable energy goal early. This has provided the courage to set a course for half of the Golden state’s electricity to be renewably-sourced by 2030. Three new clues indicate that demand response (DR) will be the key that unlocks our clean energy future.

Traditional demand response signals customers to voluntarily and temporarily reduce their energy use at times when the electric grid is stressed. But there are also other types of demand response that signal customers, their appliances, and their electric vehicles to increase their energy use when electricity is clean, abundant, and cheap. I refer to it as “secret agent DR” because of its stealth quality. Its automated nature allows customers to benefit from demand response without having to think about it on a daily basis. Instead third party companies provide this service through enabling technologies.

I have three insider bits of good news for this particular type of demand response:

Demand response’s potential, unveiled

As my colleagues and I recently explained in an article for the Electricity and Natural Gas Journal, secret agent DR or “load modifying demand response” can be part of reliability and sustainability strategies. Load modifying demand response continually communicates to customers and their appliances. Energy users pay for their electricity based on the timing, as well as how much energy they use. Otherwise known as time-varying electricity rates, this type of load modifying demand response is a low-cost way to shift energy demand and thus make the best use of the cleanest generation resources. California regulators can take steps to tee up more customer demand management with time-variant pricing:

• Create incentives for utilities to develop electricity rates that are customized to locations and time. These rates will be the foundation for load modifying demand response, determining where and when shifting energy demand will most benefit the electric grid.
• Improve how the state forecasts energy demand by including demand response resources. This will ensure utilities do not build costly new infrastructure when demand response could meet those needs, ultimately saving customers money.
• Fully and fairly compensate people who invest in technologies, like rooftop solar or storage, for the services they can provide to the grid, and not make these people pay for redundant resources like giant, gas-burning power plants.

If California regulators and utilities work together to take these steps, the state will see even more distributed energy resources in ways that will help manage energy demand to integrate more renewable resources onto the grid.

3 Insider Clues that Demand Response is the Key to a Clean Energy Future
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More good news for demand response

1 Source: LBNL. This graph shows the availability and cost associated with different types of demand response

Thanks to Lawrence Berkeley National Labs, we now have a clear indication that this type of “load modifying” demand response has massive potential.

As this graph shows, load modifying demand response and time varying electricity rates are two of the lowest cost and most significant options. This further emphasizes why regulators and utilities should utilize this resource.

Finally, the California Public Utilities Commission (CPUC) now recognizes that “secret agent DR,” as well as other distributed energy resources, can and should be planned into the grid by our trusted utilities. To inspire this, the CPUC compelled California’s big three utilities – Pacific Gas & Electric, Southern California Edison, and San Diego Gas & Electric – to consider how various distributed energy resources can work together to help modify energy demand. EDF is actively engaging in piloting plans, specifically strategies that reward utilities for embracing distributed energy resources. Part of these plans includes the need for utilities to work with customers to put distributed energy resources into the service of the broader grid (kind of like how we all agree to recycle for the common good). EDF’s notion is to allow utilities to earn service fees as a market-facing platform for distributed energy resources. This would change the utility business model by enabling the exchange of payments for services, and in turn, grow more clean, distributed energy resources.

Demand response as a building block for a clean energy future

Together, the analysis reflected in the Electricity and Natural Gas Journal, the LBNL research, and recent CPUC actions all point to the exciting and substantial potential demand response can bring to California. By using all of this new information, California can build a strong foundation for the clean energy future.

The article referenced in this blog is a part of a subscription-only publication. To access the article, please contact Chloe Looker at clooker@edf.org.

By Tim O'Connor

California’s oil and gas industry emitted approximately 270,000 tons of methane in 2014 – nearly three times the gas released during the Aliso Canyon storage facility disaster. This wasted methane – primarily natural gas – is worth over $50 million, and would have met the heating and cooking needs of about 400,000 homes in the state, had it not been lost to the atmosphere.

Notwithstanding the fact that methane pollution damages the climate and co-pollutants can cause dramatic public health problems, losing natural gas is a wasteful practice. However, as demonstrated during a 2-day joint agency symposium in Sacramento earlier this month, there are businesses that are ready, willing and able to help the state reduce leaks by deploying cutting edge technology, many of which are based in California.

Innovative solutions on display

The symposium featured companies, like United Electric Technologies, Safety Scan, Rebellion and Heath Consultants, that showcased technologies and capabilities being used today to reduce methane emissions across the U.S. in the area of oil and gas production, transmission, and natural gas storage.

At the same time, ARPA-E of the U.S. Department of Energy, EDF, the Pipeline and Hazardous Materials Safety Administration, and others highlighted where this technology is going – with smaller, faster, cheaper, more versatile, and more precise instruments entering into the market at breakneck pace.

And in the area of natural gas utility system leak detection, companies like Los Gatos Research, Picarro, Enview and several others demonstrated how new technologies can improve traditional integrity management systems, helping companies to cut costs and better predict where investments can achieve the highest level of safety and environmental improvement.

California’s efforts need a strong backbone

With solutions available and growing, California is in the midst of a regulatory overhaul to cut methane emissions from the oil and gas sector. This includes proposed regulations at the Air Resources Board (CARB) and proposed Best Practices recently released by the Public Utilities Commission (CPUC).

Unfortunately, though not unsurprisingly, these efforts face stiff opposition as oil and gas companies push back against stringent leak detection and repair rules.

For example, as a result of industry pressure, the recent rule draft by CARB for oil and gas production leaves a serious loophole. By allowing operators to inspect less when they find fewer leaks, CARB’s proposal creates a powerful and perverse incentive to avoid finding and reporting methane leaks, and a baked-in reason to avoid fixing them quickly. Strengthening the proposed rule to require permanent quarterly inspections will help prevent leaks before they do damage to public health and the environment.

Similarly at the CPUC, some major gas utilities have pushed back against a requirement to use cutting-edge leak detection equipment, including those highlighted during the symposium, to survey distribution systems, even though this equipment can find small leaks faster than current methods. This equipment and the data it produces allows utilities to engage in better integrity management, predictive modelling and workforce deployment – practices that can reduce costs, and improve safety and environmental performance, across the board.

Cost effective opportunities

To ensure CARB and the CPUC stay strong and implement rules that eliminate waste and protect communities and the environment, a look at the economics of methane abatement is key.

Concerns about costs and feasibility raised by industry opponents seeking weaker standards simply don’t hold water – especially when dozens of companies are ready to do the work that California needs to protect its environment and communities.

Studies have found that we can significantly reduce oil and gas methane pollution for only around one penny per Mcf of natural gas. And with leaks responsible for approximately 50 percent of all methane emissions, reducing this pollution through commonsense measures like leak detection and repair, is among the most cost effective steps we can take today to cut energy waste.

Strong rules make good business sense, and additional economics make the case even better

Quarterly leak inspections and rigorous best practice standards for oil and gas operations stimulate gas savings, new business models, and better investment decisions. However, at the root of each cubic foot of gas saved is the pollution that otherwise would have gone into communities – emissions that produce smog and contribute to climate change.

Rules to reduce methane pollution from the oil and gas industry simply make sense, for our communities, such as those in Los Angeles whose health and well-being is impacted by oil sites located near their homes, schools, and playgrounds, and for our world, as the methane pollution from California’s oil and gas infrastructure helps to accelerate the worst impacts of climate change.

For the sake of our economy, our health and our planet, the state needs finalize the strongest standards possible that make use of newly available technologies to cut methane pollution.

By EDF Blogs

By Jayant Kairam and Timothy O’Connor. 

Adding insult to injury, Californians learned this spring that the disastrous four-month methane leak at the sprawling Aliso Canyon natural gas storage facility could result in a new problem: outages.

The failure at Southern California Gas Company’s massive storage site exposed a critical weakness in the state’s energy system. Densely populated Southern California is over-dependent on natural gas from a single provider.

As a result, a vast area stretching from San Diego in the south to Los Angeles and San Bernardino County in the east may face power and gas shortages during the hot summer and cold winter months, a recent report by a group of state regulatory agencies warned.

Will lights stay on?

Some analysts have suggested the possibility of power and gas outages might be exaggerated, but there’s no debate that the region is cutting it way too close for comfort.

Millions of people and thousands of businesses could be exposed to costly service disruptions if the region’s 17 gas-fired power plants can’t operate as expected and other gas needs go unmet.

It’s going to take time for the state to diversify its energy mix and create a stronger, more resilient system.

There’s recognition today that by balancing market incentives we can fuel competition between natural gas and clean energy resources to gradually transition to a more dynamic, reliable, and modern electric grid.

In the meantime, there are four steps regulators, utilities and consumers are already taking – and which must now be fully utilized and expanded to relieve immediate pressure:

1. Speed up deployment of demand response programs

This tool rewards customers for shifting their energy use to times of day when there is less demand on the power grid, or when renewable energy is more abundant. In turn, demand response reduces strain on the system when it’s most likely to hit or exceed maximum capacity.

Programs such as California’s Flex Alert, the Demand Response Auction Market and so-called automated demand response programs are all models that should be maximized.

2. Help consumers take advantage of time-of-use pricing

A different approach uses the power of prices to encourage consumers to adjust their energy use to times when the grid is not stressed – and renewable energy sources are plentiful. In addition to conserving energy, this program reduces bills.

This option is being piloted in California and already in use in other states. Southern California Edison’s pilot has more than 20,000 participants. If the utility educates consumers, they can take full advantage of this new program as we move into the summer months and the risk for power outages rises.

As SoCal braces for Aliso Canyon-related blackouts, these energy programs can help
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3. Invest in energy efficiency

Energy efficiency investments in residential and commercial buildings are among the most cost-effective and fastest ways to reduce peak energy and natural gas use.

California recently authorized an additional $250 million to target efficiency measures to households most affected by the Aliso Canyon leak, and to capture greater energy savings. These efforts can ease demand and reduce bills, especially in low-income communities. It’s critical that utilities fully leverage these funds.

4. Fast-track energy storage

Utilities and third-party providers can quickly build, connect and use home batteries and other energy storage systems to balance high energy demand. A leader in this area, California is already requiring utilities to invest in such projects – but more needs to be done.

Om a direct response to the Aliso Canyon disater and subsequent power reliability issues, the state’s Public Utilities Commission recently authorized fast-track procurement and deployment of this rapidly emerging technology to minimize the risk of outages. It’s an opportunity Southern California doesn’t want to miss.

California already generates more than one-quarter of its energy from renewable sources, and plans to boost that to 50 percent by 2030.

Turning the Aliso Canyon disaster into opportunity

California already generates more than one-quarter of its energy from renewable sources, and plans to boost that to 50 percent by 2030. By diversifying its energy portfolio for the long-term and designing a more competitive market, this state – like others – can become less dependent over time on one single fuel source.

But as the risk for power outages shows, these targets alone are not enough.

By rapidly scaling up programs that exist today, in addition to doubling down on clean energy investments, we can turn the Aliso Canyon disaster into an opportunity while keeping the lights on and our economy humming.

It’s what Americans expect.

This post originally appeared on our EDF Voices blog.

By EDF Blogs

Each month, the Energy Exchange rounds up a list of top clean energy conferences around the country. Our list includes conferences at which experts from the EDF Clean Energy Program will be speaking, plus additional events that we think our readers may benefit from marking on their calendars.

Top clean energy conferences featuring EDF experts in June:

June 19-21:  Citizens’ Climate Conference & Lobby Day (Washington, D.C.)
Speaker: Michael Panfil, Director of Federal Energy Policy and Senior Attorney

• Citizens’ Climate Lobby is a non-profit, non-partisan, grassroots advocacy organization focused on national policies to address climate change. Attendees will hear speakers and receive training to speak on this issue on behalf of future generations. The conference’s keynote speaker is Dr. Michael Mann, Distinguished Professor of Atmospheric Science at Penn State University and director of the Penn State Earth System Science Center. In 1998, it was his research – conducted with Raymond Bradley and Malcolm Hughes – that led to the famous “hockey stick” graph that shows the alarming rise in average global temperatures during the 20th Century.

Other top clean energy conferences across the U.S. in June:

June 3: Silicon Valley Energy Summit (Stanford, CA)

• The Silicon Valley Energy Summit provides workable ideas by exploring best practices and insights about upcoming energy technologies, markets, and policies. Panel topics include the following: Exploiting New Tools for Energy Efficiency Post-Paris; How Smart Factories Optimize Energy Use and Improve Productivity; People Power: Silicon Valley Creates Community Electricity Provider; and Digital Cities: Biggest Energy & Resource Opportunity.

June 8-10: ModernSolutions Power Systems Conference (Chicago, IL)

• Today, aging assets, supply chain security, emerging technologies, and regulation create new challenges for power systems worldwide. This conference, sponsored by Schweitzer Engineering Laboratories, Inc., fosters multidisciplinary discussion and knowledge sharing in the interest of rethinking possibilities for modern power systems and discovering new opportunities for the next 100 years. Sessions include the following: How Can Intermittent Sources Truly Succeed?; Decentralizing Control, Islanding and Microgrids; and Power System Controls of the Future.

Top Clean Energy Conferences of June 2016
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June 21-23: Grid Edge World Forum (San Jose, CA)

• Conference participants will discuss and debate the latest issues and opportunities impacting tomorrow’s distributed energy system, and examine the trends and innovation happening at the grid edge. The 3-day conference features business networking opportunities and dedicated exhibition time to experience the latest innovations at the grid edge. Hear from the industry experts shaping the next generation electricity system with keynotes, fireside chats, and deep-dive knowledge sessions. Compare different perspectives from utilities and regulators from around the globe in dedicated regional spotlights.

June 21-23: VERGE Hawaii 2016: Asia Pacific Clean Energy Summit (Honolulu, HI)

• The Hawaii State Energy Office, partnering with GreenBiz Group, host this conference to explore innovative clean energy policies, models, technologies and infrastructure. The conference intends to set the stage for immediate actions and plans needed to deliver on Hawaii’s goal of 100 percent renewably-powered energy in the electricity sector by 2045. The event also serves as a platform for Hawaii’s energy leaders and stakeholders to engage, learn, and contribute.

June 28-29: 2016 Renewable Energy Conference (Poughkeepsie, NY)

New York State and the Nation continue to be dramatically impacted by changes in energy policy. As a result of the Public Service Commission’s Reforming the Energy Vision (REV) and the rollout of Federal Energy Regulatory Commission Order 1000, the energy landscape is changing. The conference will examine the impact of these policy changes on the competitive bulk electric market place with associated impacts on the use, development, and pricing of renewable sources. Morning sessions are devoted to establishing a foundation for understanding the current status of the energy market place. Afternoon sessions will focus on the practical experiences of professionals working in these emerging energy markets, and there will be opportunities for networking.

Photo source: Flickr/National Retail Federation

By Lauren Navarro

As the days are getting longer and the weather is warming up, kids across the country are counting down the days until summer vacation. California state lawmakers, on the other hand, are rolling up their sleeves and building upon California’s strong foundation of clean energy leadership and momentum. With the electricity sector responsible for about 20 percent of California’s total greenhouse gas emissions – the main culprit of climate change – the state still has work to do.

Last year, the California Legislature passed ambitious clean energy legislation. At the head of the pack, SB 350 (De León) raised the state’s renewable energy target to 50 percent by 2030 and required a doubling of savings gained from energy efficiency in the residential, commercial, and industrial sectors.

This year, the legislature is considering bills that could help California continue on the path to a clean energy future. It is up to our lawmakers to ensure these efforts make it past the finish line and onto the governor’s desk.

This year’s stand-out clean energy legislation

The following bills will help California and its communities feel the environmental and economic benefits of clean energy, protect against unnecessary investments in fossil fuel generation, and increase the use of job-creating clean energy technologies throughout the state:

• AB 1937 (Gomez) is designed to help California’s most highly-polluted communities see more clean air and clean energy, while moving the state forward in building a cleaner, healthier electricity system. Under this bill, utilities seeking to build fossil fuel generation would have to actively seek bids outside of highly polluted communities and demonstrate they have tried to meet electricity needs through cleaner options. In doing so, it will help reduce pollution overall in California and in highly burdened areas.
• AB 2460 (Irwin) would provide greater incentives for the installation of solar thermal systems – solar power used to heat water and other liquids – to help reduce demand of natural gas in light of the Aliso Canyon disaster. To accomplish this, AB 2460 would extend the California Solar Initiative (CSI) Thermal program funding for ten years through 2027 and reserve half of it for solar thermal systems in low-income homes or buildings in disadvantaged communities.
• SB 886 (Pavley) is aimed at increasing the use of clean energy storage in California, a technology that complements solar generation and allows more clean resources on the grid. The bill would require electricity companies to incentivize customers to install energy storage systems. Further, it would require the California Public Utilities Commission to determine feasible targets for each utility to acquire viable and cost-effective energy storage systems by 2030.
• AB 1550 (Gomez) would direct a to-be-determined percentage of California’s cap-and-trade program funds to projects that benefit low-income households, in addition to the 25 percent of cap-and-trade funds currently required to benefit disadvantaged communities.

In addition to these bills, a provision in SB 350, which passed last year, opened the door for California to consider a western regional energy market (also referred to as “regionalization”) in this year’s Legislature.

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The big Kahuna: thinking regionally, acting locally

By merging the California Independent System Operator (CAISO) with other grid operators in the west, we can help California meet its climate and clean energy goals, while also making the entire western energy grid more efficient, affordable, and reliable. For example, if California is overproducing solar at 3pm, it could sell its excess electricity to Oregon, where clean energy is less abundant at that time. This type of regionalized energy trading is important to facilitate the ambitious goals set out in SB 350 and ensure optimal integration of low-cost, clean energy resources.

Last week, CAISO released a set of studies to evaluate the cost savings, economic, and environmental impacts of regionalization. The findings suggest a western-wide market would reduce carbon emissions, air pollution, and the costs of integrating more renewables on the grid between 2020 and 2030. In the near term, however, the study shows that merging CAISO with only PacifiCorp – a utility serving six states throughout the west – would result in a slight increase in greenhouse gas emissions from coal use in other parts of the west. This finding underlines the importance of getting the CAISO expansion right to ensure this does not happen.

It is important we put the right legislative framework in place – one that works for California, clean energy, and our fellow states.

As Californians, we want to design a regional energy market that supports the continued transition to clean energy, and away from carbon-intensive, fossil fuel generation. And, we must do so in a way that encourages other states to participate. In essence, we must ensure the creation of this market achieves the following:

• Creates a fair and balanced governing structure with no special control by any state, clear paths for stakeholder involvement, and transparent processes.
• Ensures renewable and demand-side resources, like rooftop solar and energy efficiency, environmental, renewable energy, and demand-side experts on stakeholder advisory boards.
• Uses California’s energy policies to build a substantial amount of renewable generation, either in-state or delivered directly to California, as well as more renewables throughout the larger regional electricity grid.
• Does not allow a regional market to interfere with California’s (and other states’) ability to pursue innovative renewable and demand-side management policies.
• Ensures that coal-generated electricity is kept out of California and that regionalization does not increase carbon produced elsewhere in the expanded market. Similarly, be sure that air pollution does not worsen in California, particularly in highly polluted communities and other environmentally sensitive areas.

Stakeholders are currently discussing with the legislature and governor’s office how this market would function. A bill related to the CAISO expansion could come before the legislature this session, bringing the west one step closer to creating a regional energy market. It is important we put the right legislative framework in place – one that works for California, clean energy, and our fellow states. If we do, we can unlock substantial economic and environmental gains for California and the rest of the West.

Building California’s clean energy future

If passed into law, these bills and the possible creation of a western regional energy market would build upon California’s solid foundation of ambitious clean energy policies. California legislators should take action to solidify the state’s leadership in the fight against climate change and formation of an inclusive, clean energy economy.

Photo credit: Flickr/daveynin

By Larissa Koehler

If you have ever worked in the service industry and dealt with a difficult customer (or even seen one in action), you are likely inclined to recall the oft-used adage, “the customer is always right.” Clichéd as that phrase may be, it is not without merit. Here at Environmental Defense Fund (EDF), we believe the same truism applies to how utilities approach providing electricity.

In a recent ruling issued in the Integrated Distributed Energy Resources (IDER) proceeding, California Public Utilities Commission (CPUC) Commissioner Michel Florio found, quite properly, that utility business models need to be evaluated in order to put more customer and third party-owned distributed energy resources, like rooftop solar and energy storage onto the grid. Currently, utilities receive a rate of return if they build infrastructure necessary to support our central power grid (like pipelines for our aging natural gas system). If clean, distributed energy sources make that infrastructure less essential, it could jeopardize the utilities’ revenue stream, thereby discouraging them from including these cost-effective energy resources in our power mix.

Right place, right time

While the ruling is groundbreaking in its consideration of the need to reform the utility business model – a change EDF continually pushes for – the CPUC can do more to ensure California increases its adoption of distributed energy resources. Doing so will help enhance grid reliability, as well as provide important cost and environmental benefits for customers. In order to accomplish this, EDF recommends California Utilities Commission do the following:

Putting the Customer First: How California can Achieve a Distributed Energy Grid
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• Think location, location, location. First and foremost, rather than focusing on whether the utilities are receiving an appropriate payment for deploying greater amounts of distributed energy resources, the CPUC should be looking at whether they are located in places that provide the most benefit to customers, the grid, and the environment. For example, if distributed energy resources are placed in communities that have historically been disproportionately impacted by air pollution, the potential of these resources to avoid emissions from fossil fuel resources can have tremendous positive impacts.
• Conduct further analysis before starting a pilot. The CPUC should conduct further analysis to discover how they will determine the locations that would provide the most benefit from distributed energy resources. Without this extra step, the CPUC’s efforts may not provide benefits at a scale necessary to help meet California’s clean energy and environmental goals. The best approach would be research by the Commission or an independent third party, paired with a multi-stakeholder workshop.
• Include access to data. In order to make fully informed decisions, customers and third party providers need better access to data. Currently, most energy data are gathered in ways that are slow or make it hard to use. Alternatively, a utility may possess data without sharing it. This lack of access prevents customers and third party providers from properly siting distributed energy resources and using them at the right times. By making data publicly available in a way that maintains confidentiality, customers and third parties can make truly informed decisions.
• Coordinate with other efforts. The Commission should coordinate with a number of other proceedings currently grappling with the issue of utility business models to derive important lessons. These include utility electric vehicle pilots, San Diego Gas & Electric’s new utility business model demonstration project, as well as demand response, energy storage, and time-of-use rate pilots – all currently pending with the Commission.

More often than not, businesses with outstanding customer service are positioned to be much more successful.

More often than not, businesses with outstanding customer service are positioned to be much more successful. Utilities that focus as much on their customers as they do on their profits will see the same trend. An increased focus on the customer side of the meter requires willing participation by customers themselves. People are more likely to participate if their utility demonstrates they are making changes that benefit them. In that spirit, EDF asks Commissioner Florio and the CPUC to take a good idea and make it even better. Commissioner Florio’s ruling has the potential to result in great outcomes for Californians – as well as the health of the grid and environment. However, in order to accomplish this, the CPUC needs to employ broader, more visionary thinking that incorporates more extensive research and solicits opinions from a wider array of stakeholders – whether they are formally involved in the IDER proceeding or not. Chances are, what’s good for the customer is what’s good for the grid.

Photo credit: Wayne National Forest / Flickr

By Sarah Ryan

Last year solar power saw unprecedented growth and it doesn’t seem to be slowing down. So where is much of this growth happening? In one word: cities.

In a new report from Environment America Research & Policy Center and Frontier Group, Shining Cities 2016 identifies the urban centers fostering growth in solar energy, and the policies and programs that can maximize solar potential. The cities that topped the list were, not surprisingly, primarily from the sunshine-abundant Pacific region, followed by an equal amount of cities from the Mountain, South Central and South Atlantic regions. These centers of connectivity and growth are major electricity consumers, and therefore important movers in the transition to a clean energy economy.

But there are still vast amounts of untapped solar potential in the U.S. – specifically 1,118 GW, which equates to 39 percent of total national electricity sales (enough to power over 782 million homes a year) – according to a study on “rooftop solar power generating capacity potential” by National Renewable Energy Laboratory (NREL). The same study stated that Los Angeles, the city currently with the most solar capacity, could host up to 42 times its current solar capacity, providing up to 60 percent of the city’s electricity. This staggering amount of renewable energy is possible in other cities across the U.S. as well – even in unlikely states, such as Texas.

Leading solar cities in Texas

San Antonio, despite being in one of the most conservative states, came in 7th place in the Shining Cities report for “Total Installed Solar PV Capacity,” following behind Los Angeles, San Diego, and Phoenix to name a few. The innovative approach CPS Energy – San Antonio’s municipally owned utility and the largest of its kind in the U.S. – has taken to provide clean electricity to its residents seems to be paying off.

CPS used to compensate rooftop solar owners for their excess electricity through a traditional net metering model. However, structural and financial barriers prompted the utility to launch a solar leasing program called SolarHost, in which homeowners receive a credit on their monthly electricity bills of 3 cents per kilowatt-hour for simply hosting solar panels on their roofs. In the first three days after the announcement of this program, more than two thousand people applied – as many people as had installed rooftop solar in the past seven years. The Alamo City currently has 108 MW of installed solar PV, but has the potential to accommodate more than 6,000 MW on city rooftops. With this new and innovative alternative to net metering, reaching that potential seems highly likely.

Texas Cities Lead on Solar, But Tapping The State’s Potential Has Just Begun
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Austin fell shortly behind San Antonio in the Shining Cities report, in 13th place with 33 MW of solar PV installed within the city limits. However, this number does not account for the solar power generated by the 35-MW Webberville Solar Farm just outside the city’s limits, which supplies solar energy to Austin through a PPA with Austin Energy. This solar farm generates enough electricity to power 5,000 homes a year.

Austin is on track to become even more of a solar leader and meet its goal of generating 55 percent of its energy from renewables by 2025 with 450 MW of additional operating solar capacity in the development pipeline. This is in part due to Austin Energy’s Value of Solar (VOS) tariff, another policy alternative to net energy metering wherein the customer purchases energy at the utility’s retail rate and is compensated for solar PV generation at a separate VOS rate of 10.9 cents per kilowatt-hour. This separation of electricity generated by the consumer and the electricity consumed allows Austin Energy to better understand customer volume, timing, and load, which in turn provides the customer with more accurate, area-specific compensation. Market interest and discussion of VOS tariffs are increasing, especially as Austin Energy continues to prove this alternative works.

Policy paves the way

By adopting smart policy – like attractive financing options, easy and streamlined installations, fair compensation for homeowners supplying energy to the grid, and a strong commitment to support solar energy development – more Texas cities have the potential to shine.

Texas has some of the most solar potential in the U.S., due in large part to the fact that it offers customers the lowest average cost for solar on a per-watt basis. The average gross cost difference for a solar energy system is significant: $3.21 per watt compared to the national average of $3.69 per watt. But this potential is hindered, not only due to low natural gas prices, but also the lack of utility rate options for solar in the deregulated market.

San Antonio and Austin have designated themselves as solar leaders by adopting policies and rate structures that strive to maximize the benefits of solar energy to consumers. Instead of resisting the spread of rooftop solar like some cities in Texas, these municipal utilities have found a way to promote distributed solar in their service area without losing any customers and even expanding their customer base to people at all income levels.

Houston, Dallas, and Ft. Worth – Texas’ other big urban centers – may never compete with Los Angeles or sunny San Diego when it comes to solar capacity. But by adopting smart policy – like attractive financing options, easy and streamlined installations, fair compensation for homeowners supplying energy to the grid, and a strong commitment to support solar energy development – these cities, too, have the potential to shine.

Photo credit: Larry D. Moore 

This post originally appeared on our Texas Clean Air Matters blog.

By Jamie Fine

On vacation and awake in my too-soft bed at 5 AM while my family snored, I was regretting my misaligned sleep schedule. But then I realized time was on my side, so I tiptoed out in solitude for sunrise at the south rim of the Grand Canyon. Thanks to my very clever smart phone that is also a camera, my amateur photos (sort of) reveal the majesty of this national landmark. When we realize the schedule of Nature’s wonders is both beautiful and indefatigable, and humble ourselves with simple acts of realignment, harmony can be found amidst the springs and cliffs of our lives.

Just as timing helped me take advantage of something I would have otherwise missed and my smart phone aided in capturing the moment, similar lessons can be learned in how we use energy. My phone, when linked to a smart thermostat, can help align my electricity use with cheap, clean energy resources like solar and wind. Soon residential customers of California’s “big three” utilities, Pacific Gas & Electric (PG&E), Southern California Edison (SoCal Ed), and San Diego Gas & Electric (SDG&E), will be able to take full advantage of this option. 

TOU Pricing in California

Under the direction of the California Public Utilities Commission (CPUC), these utilities are studying time-of-use (TOU) electricity rates, which reward customers who voluntarily shift some of their electricity use to times when renewable energy is abundant and away from times when there is a lot of stress on the electric grid. This model better reflects the true cost of electricity, which ebbs and flows with fluctuations in demand. All customers will be billed this way beginning in 2019, with an option to opt-out if they prefer the old rate structure.

A good grid is like a good vacation: balanced and well-timed
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TOU pricing is an empowering electricity pricing method that, when paired with other clean energy resources can bridge the clean energy divide and transition to an electric system that is smarter, cleaner, and more reliable. What’s more, with new data showing how often people think about their energy bills, there is a huge opportunity to meaningfully engage customers in the process.

Education and outreach is a critical route

Recent evidence indicates that these new opportunities are on the minds of energy users like you and me. A recent report by E Source explores time spent “thinking about and studying issues regarding your home’s energy use.” They found the average amount of time was 5.5 hours per year, and over half of the survey respondents said they spend at least four hours thinking about their energy bills each year. This is an enormous opportunity for education and action.

If people are already spending time thinking about their energy use, the more they learn about how and when they use electricity, the more likely they are to take steps that can help them control costs – like responding to TOU pricing. Ultimately, this can save people money and prevent harmful pollution by shifting energy demand, thus avoiding the need to fire up dirtier power plants.

Over half of the survey respondents said they spend at least four hours thinking about their energy bills each year. This is an enormous opportunity for education and action.

Still work to be done

But dawn has not yet arrived, and a massive chasm of customer awareness and actionable opportunities still persists. Fortunately, not unlike the cleaver and stout folks who braved the Grand Canyon’s edge and the icy waters of the Colorado River, brave and resilient innovators have begun to cross the great energy expanse. Even if it is scary to stand at the edge of a clean energy landscape that, depending on your position, appears as a steep cliff to climb or fall down, this change is happening. What’s more, entrepreneurs like those at Ohm Connect and Solar City are constantly and reliably making it easier for people to use clean energy with smart thermostats, better access to energy usage data, and self-generation like rooftop solar.

As the E Source study suggests, we have people’s attention. In California, and increasingly around the world, customers have options for TOU electricity pricing – a key currency to reward customer action. These two developments, paired with other clean energy solutions like energy storage and electric vehicles, make for exciting times during which timing will mean everything. I’m glad to be awake for it.

By Jamie Fine

California has a nice problem: It’s producing so much clean solar energy that the state’s electric grid is at capacity, and sometimes beyond.

As Vox’s David Roberts reports in his excellent piece about California’s grid headache, it makes good sense to expand the system by interconnecting state-run energy markets.

But he also notes, at the end of his story, some other and complementary strategies California can use to increase its grid bandwidth – while accommodating rapidly growing, but variable, renewable energy sources.

Connected grids, alone, are not a long-term fix.

One such strategy is time-of-use pricing, which encourages customers to shift some of their energy use to predictable and convenient times of day when clean energy sources are plentiful, and electricity cheaper. This innovative program, soon to be piloted in California, is expected to lower peak demand for energy over time.

Along with increased energy efficiency, energy storage and distributed power solutions such as rooftop and community solar initiatives, time-of-use pricing will help California stretch the capacity of its grid. Not to mention the fact that customers who sign up for it can pay less for electricity.

It helps us empower people, and to become smarter about how we produce and use energy.

As we continue to ramp up renewable energy sources and move from dirty fuels to clean power, we need solutions that help the system transition seamlessly, efficiently and affordably.

Connecting our patchwork of grids is something we’ll be hearing more about in California and beyond. But let’s not forget the other clean energy solutions we need in tandem to create the clean energy economy of the future.

This blog post originally appeared on EDF Voices.

Photo credit: Oran Viriyincy