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The Game ChangerHow Natural Gas Can Transform California’s Energy Future
Air & Waste Management Association,
Golden Empire Chapter
Golden West Section
October 18, 2016
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DUEL CHALLENGEWe have a
FEDERAL CLEAN AIR ACT
Reduce SMOG by
50-60% within the next 20 years
CA CLIMATE GOALS (AB32, SB32)
GOVERNOR’S EO
Reduce GHG emissions to
80% of 1990 levels by 2050
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© phdinbs /iStockphoto.com
PROBLEMAir quality is a serious
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California’s most
VULNERABLEbear the brunt of it
© Chris Jordan-Bloch, EarthJustice
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THE TRANSPORTATION SECTOR
80% of the region’s SMOG
nearly
40% of its GHG emissions
© Bart Everett/Shutterstock.com
Sources: 2012 South Coast Air Quality Management Plan & California Air
Resources Board (CARB), California GHG Emissions Inventory 200-2012,
released in May 2014
CLEAR FOCUSThe good news is, we have a
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BIGGEST POLLUTERS
Start with the
Heavy & Medium
Duty Trucks
Off Road
Equipment
Cars
Light Duty
Trucks
Light-Heavy
Duty Trucks
0 50 100 150 200
TONS PER DAY
SCAQMD NOx
Top NOx Source Categories
Source: CARB Staff Report for 8-Hour Ozone State Implementation Plan Emission Inventory Submittal
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Quick facts
DID YOU KNOW?
Sources: CARB’s Truck and Bus Rule , U.S. Dept. of Energy - Argonne National Laboratory
Report, 1999 & California Energy Commission’s Report: Full Fuel Cycle Assessment, 2007,
of engines in California’s
trucks and buses must be
replaced by 2023. 80% TO COMPLY WITH CA 2010 STANDARDS
50% fewer NOx emissions
20% fewer GHG emissions
NATURAL GAS IS CLEANER THAN DIESEL
© istockphoto.com
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NEAR-ZERO HEAVY-DUTY
NATURAL GAS TRUCKS
fueled by renewable natural
gas are the best way for CA
to meet its goals.
Near-zero natural gas engines
can reduce NOx emissions by
By switching to renewable
natural gas, we can reduce
vehicle GHG emissions by
80%
90%
GAME CHANGERNew natural gas engines are a
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CURRENT FOCUS EXPANDING FOCUS
Transit/Fleet
Vehicles
Heavy Duty
Trucks
Marine
VesselsTrains
TRANSFERABLENatural gas technology is
Off-Road &
Construction
Equipment
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But that’s only a part of the picture.
We need to look at other ways to dramatically reduce
GHG EMISSIONS
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Quick facts
DID YOU KNOW?
*Source: California Air Resources Board (CARB) Short-Lived Climate Pollutant Inventory (2016 Edition)
CA 2013 METHANE EMISSIONS*
Agriculture
Waste
Oil & Gas Pipelines
Oil & Gas Extraction
Industrial & Misc
58%24%
9%
5%4%
© Bart Everett/Shutterstock.com
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RENEWABLENatural gas
Source: Bioenergy Association of California, CARB May 2014 Look-Up Table30
POWER
2-3 million homes
WHAT’S POSSIBLE
REPLACE
75% of all diesel
used by CA vehicles
SUPPLY biogas from food and green waste with a
NEGATIVEcarbon intensity
CH4
Convert waste from dairies, farms and landfills
into biogas using anaerobic digestion
extract the methane
put in the pipeline for future use
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CONVERT
335,000tons/year of waste
INTO
4 million gallons of renewable
natural gas and
260,000tons of fertilizer
© istockphoto.com
CR&R PERRIS, CAA vision of what’s possible
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ALISO EMISSIONS
2.1 MMTCO2e or
84,000 MT of methane
5% of CA’s total
methane levels in 2014
0.5% of CA’s total
GHG levels in 2014
ALISO CANYON?But what about
Source: Analysis in relation to California Air Resources Board (CARB) Greenhouse Gas Inventory (2016 Edition)
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Advocate for customers
Sustain a strong safety culture
Mitigate GHG emissions
Support national legislation that
promotes safety and sound
environmental practices
© SoCalGas
COMMITMENTOur
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16
Natural gas storage is critical.
The grid relies on natural gas storage to keep the lights on when demand for electricity is highest.
IT MAKES THE SYSTEM WORK
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Source: California Energy Commission (CEC), 2015 Energy Almanac
© Ezra Klein/The Washington Post
Natural Gas
Renewables
Hydroelectric
Nuclear
Coal and petroleum
2015 CA IN-STATE ELECTRICITY GENERATION*
60%
24.5%
9%
6%
<1%
Quick facts
DID YOU KNOW?
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1/3 of California’s
demand at peak times CANNOT be
meet with what is in the pipeline
NATURAL GAS STORAGE
Supports RELIABILITY
Keeps PRICES DOWN
Provides EFFICIENT
energy supply
of natural gas ensures energy supplySTORAGE
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EFFICIENCYUnderstanding
Source: Energy Solutions Center
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Combined Heat & Power
Decarbonize energy with
Fuel Cells
Micro-turbines
Engines
Waste Heat to Power
Solar-Thermal Heating & Cooling
© Narvikk/iStockphoto.com
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WASTETOVALUECombined Heat & Power converts
Houweling’s Tomatoes
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HOUWELING’S TOMATOES
© Funwithfood/iStockphoto.com
CONSERVE
9,500 gallons of water/day
GENERATE
13.2 MW of electricity–
enough to power approximately
8,800 homes
DIVERT
21,400tons of CO2 emissions – theequivalent of taking more than
4,000 cars off the road
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To achieve our climate goals, we need to find a way to store renewable energy at utility scale.
The opportunity for natural gas is greater.
THERE IS A WAY
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RENEWABLEENERGY
Natural gas gives California a practical way to store
© deliormanli/iStockphoto.com
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addresses the storage challengePOWER-TO-GAS
excessrenewable
energy
goes throughelectrolysis
which splits the molecule
hydrogen & carbon combine through
methanization
carbon captured from factories and plants
methane can be stored in the pipeline for future use
hydrogen can also
be stored directly
in the pipeline
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GERMANY’S RENEWABLE
ENERGY STORAGE
Potential for electrolysis
is estimated at up to
170GWwhich could power
114 million homes.
A vision of what’s possible
GERMANY
Source: Commercialisation of Energy Storage in Europe, 2014
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we just need to investTHE PATH IS CLEAR,
Reduce SMOGthrough Transportation sector
Decarbonize Electricity – Distributed Generation
Decarbonize Electricity– Power-to-Gas (P2G)
Decarbonize Natural Gas –Biogas
Trucking & Transit conversions
Rail conversions
Fuel Cells& Microturbines
Combined Heat & Power
More low carbon gas supply from renewable sources using
existing waste streams
Additional gas supply from purpose
grown crops and solar
P2G enables renewableenegy storage in gas
pipeline system
Marine conversion
NEAR TERMwithin 5 years
MID-TERMwithin 10 years
LONG TERMwithin 20 years
90% NOxreduction from “near
zero” engines
Market development of P2G systems for vehicle fuel and
grid support
80% GHGreduction with
renewable natural gas
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Limit technology and you limit the possibility.
We need to think bigger and find solutions across the entire
ENERGY SYSTEM
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In California, nearly
25% of residents live in poverty
SoCalGas provides
1/3of its customers withfinancial assistance
Source: 2014 US Census Bureau
This is about
PEOPLE
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Sources: Vision 2014 Study, conducted by Meyers Research for Building Industry Association and SoCal Gas
95%
83%91%
82%
95% 92%
Natural gas is the
PREFERRED CHOICE
Cooking Space
heating
Heating
water
Drying
clothesFireplaces Outlets for grill
or patio heater
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Natural gas is more
Space Heating
$60/year
Laundry
$76-$160/year
Water Heater
$96-$528/year
Note: Cost of natural gas compared to electricity. Estimated energy use is based on average operating conditions and costs of $0.14 per kWh and $1.00 per therm.
AFFORDABLE
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By 2035, natural gas
production will provide
$3.3Bin annual wages to
California workers
Sources: America’s Natural Gas Alliance, IHS Global Insight
ECONOMIC GROWTHNatural gas is good for California’s
In California, natural
gas supports more than
250,000 jobs
Natural gas adds
$36B+ to California’s
economy
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We share the same goals.
To reach environmental targets, Californian’s just need
MORE OPTIONS
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• Keep energy issues on your radar
• Keep an open mind
• Offer a balanced perspective
• Advocate for measures that will help:
– Promote safety and smart environmental practices
– Drive investment in infrastructure, fueling stations and technology today
– Encourage policies that stay focused on the goal and remain
technology neutral
What we can do
TOGETHER
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THANKYOU!