The Long Road Forward: AB 32 & the Energy Transformation Karen Douglas, Commissioner California Energy Commission September 21, 2016

RENEWABLES PORTFOLIO STANDARD & GREENHOUSE GAS EMISSION REDUCTION POLICIES SB 1078 AB 32 SB 107 SB 1368 SB X1-2 SB 350 SB 32 Governor Brown, Climate Summit, Paris, 2015

CALIFORNIA GHG EMISSIONS BY CATEGORY (2000-2014) Source: ARB California GHG Emission Inventory, 2016 Edition: http://www.arb.ca.gov/cc/inventory/data/data.htm

Changes in the Gas Fleet Upstream Methane Emissions Aliso Canyon

ELECTRIC GENERATION BY RESOURCE TYPE Source: California Energy Commission, 1304 Power Plant Data Reporting, Energy Assessments Division

IN-STATE ELECTRIC GENERATION CAPACITY BY RESOURCE TYPE Source: California Energy Commission, 1304 Power Plant Data Reporting, Energy Assessments Division

INSTALLED RENEWABLE CAPACITY (IN MW) BY RESOURCE TYPE Source: California Energy Commission, 1304 Power Plant Data Reporting, Energy Assessments Division

SOLAR ADDITIONS IN CALIFORNIA (1-5 MW FACILITIES), 2001-2015

SOLAR ADDITIONS IN CALIFORNIA (<1 MW FACILITIES), 2000-2015

SELF-GENERATION SOLAR INSTALLATIONS IN CALIFORNIA   Residential Commercial Total Installed Systems MW POU 42,649 229 1,783 169 44,432 398 IOU 500,086 2,586 15,189 1,423 515,275 4,008 542,735 2,815 16,972 1,592 559,707 4,407 Source: (1) Publicly Owned Utilities SB1 Solar Program Status Reports, available at: http://www.energy.ca.gov/sb1/pou_reports/ (2) Currently interconnected data set of all solar PV (NEM) systems within Pacific Gas and Electric Company (PG&E), Southern California Edison Company (SCE), and San Diego Gas & Electric (SDG&E) service territories, available at: https://www.californiasolarstatistics.ca.gov/data_downloads/. Commercial also includes educational, industrial, military, nonprofit, other government and school projects.

CALIFORNIA ENERGY COMMISSION ENVIRONMENTAL PERFORMANCE REPORTS

2016 DRAFT ENVIRONMENTAL PERFORMANCE REPORT Environmental Performance Issues: Air quality and public health Water use and conservation Land use Biological Cultural Visual Environmental justice

AIR QUALITY AND PUBLIC HEALTH Reductions in criteria pollutants Air quality permitting issues Air quality trends Retirement of aging power plants Increasing deployment of flexible gas-fired plants Dust movement during construction

WATER USE AND CONSERVATION 2003 IEPR Water Policy Fresh water use for thermal power plant cooling Improved water efficiency in cooling Elimination of OTC for power plant cooling Renewable resource water use Drought and power plant cooling

CALIFORNIA ENERGY COMMISSION WATER POLICY It is further the policy of the state and the intent of the Legislature to promote all feasible means of energy and water conservation and all feasible uses of alternative energy and water supply sources. Warren-Alquist Act Consistent with the [State Water Resources Control] Board policy and the Warren-Alquist Act, the Energy Commission will approve the use of fresh water for cooling purposes by power plants which it licenses only where alternative water supply sources and alternative cooling technologies are shown to be “environmentally undesirable” or “economically unsound.” 2003 Integrated Energy Policy Report

COOLING PROCESS FOR OPERATING POWER PLANTS THAT HAVE A STEAM CYCLE

ONCE-THROUGH COOLING Impacts to coastal or estuarine ecosystems Historical: 21 Power Plants = 52,000 acre- feet per day 2010 State Water Resources Control Board Policy Reduce the inflow of ocean and estuarine water for power plant cooling Affected 19 Power Plants Original compliance dates: 2010-2024

HISTORICAL AND PROJECTED OTC FLEET WATER USAGE Source: California Energy Commission, Tracking Progress: Once-Through Cooling Phase-Out, available at http://www.energy.ca.gov/renewables/tracking_progress/documents/once_through_cooling.pdf

NUCLEAR DECOMMISSIONING – SAN ONOFRE NUCLEAR GENERATING STATION Shut down in 2013 Decommissioning completed within 20 years De-energized and safe, non-operating conditions Islanding of spent fuel pools system Construction of new Independent Spent Fuel Storage Installations Restored to its original condition

NUCLEAR DECOMMISSIONING – DIABLO CANYON June 2016- PG&E announcement to shut down Diablo Canyon No relicensing of Diablo Canyon beyond 2025 Joint Proposal Agreement between PG&E, labor, and environmental organizations Secure an extension of lease 2018: Site-specific decommissioning study Expedited post shut-down transfer of spent fuel to dry cask storage

ANNUAL AND EXPECTED ENERGY FROM COAL USED TO SERVE CALIFORNIA (1996-2026) Source: California Energy Commission, CPUC, and ARB presentation at the October 1, 2015, kickoff public workshop on Scoping Plan Update to Reflect 2030 Target, http://www.arb.ca.gov/cc/scopingplan/meetings/10_1_15slides/2015slides.pdf

ACREAGE COMPARISON OF INSTALLED IN-STATE CAPACITY BY FUEL TYPE (2005-2015) Source: California Energy Commission, Siting, Transmission, and Environmental Protection Division

BIOLOGICAL IMPACTS Habitat loss, degradation, and alteration associated with scale and location of renewables Species attraction and predatory risk Technology-specific impacts and mitigation Experience gained from recent projects continues to improve avoidance, minimization, and mitigation measures

CULTURAL RESOURCES Engagement with tribes Assembly Bill 52 and CEQA Identification of cultural landscapes essential to tribal cultural practices

VISUAL RESOURCES Typically greater visual sphere of influence with utility-scale renewable projects Solar PV projects Wind energy projects Transmission lines

ENVIRONMENTAL JUSTICE The fair treatment of people of all races, cultures, and incomes with respect to the development, adoption, implementation, and enforcement of environmental laws, regulations, and policies. Senate Bill 115

LANDSCAPE-SCALE PLANNING Consider a wide range of potential constraints and conflicts for future renewable energy development Balance the need for future renewable energy development and transmission Collaboration between California agencies, federal agencies, local governments, tribes, and stakeholders

THANK-YOU! Thank-you! Karen Douglas, Commissioner California Energy Commission For more info go to: http://www.energy.ca.gov/

AVERAGE LAND USE PER MW BY FUEL TYPE Average Land Use per Megawatt Natural Gas 0.08 acres/MW Nuclear 0.832 acres/MW Biomass 2.5 acres/MW Geothermal 6.0 acres/MW Solar 7.0 acres/MW Small Hydro 7.5 acres/MW Large Hydro 29.125 acres/MW Wind Ranges from 24.8 to 40 acres/MW Source: (1) California Energy Commission staff; (2) National Renewable Energy Laboratory (NREL) Technical Report NREL/TP-6A2-45834, available at: http://www.nrel.gov/docs/fy09osti/45834.pdf; (3) NREL Technical Report NREL/TP-6A20-56290, available at: http://www.nrel.gov/docs/fy13osti/56290.pdf; and (4) DRECP Acreage Calculator at: http://www.drecp.org/documents/docs/DRECP_Acreage_Calculator_Documentation.pdf