California Energy Commission 2016 Integrated Energy Policy Report

California Energy Commission 2016 Integrated Energy Policy Report Update October 24, 2016 Presented by Heather Raitt Assistant Executive Director for Policy Development heather. raitt@energy. ca. gov / 916 -654 -4735

California Energy Commission Background • The Energy Commission prepares an IEPR every two years, an update in intervening years. The Energy Commission: – Issued 2016 IEPR Update Scoping Order on March 28, 2016 – Adopted Order Instituting Information Proceeding for 2016 IEPR Update April 13, 2016 – Held 10 workshops on Scoping Order topics • Report, workshop materials, and transcripts available at: http: //www. energy. ca. gov/2016_energypolicy/ 2

California Energy Commission Transitional Time • Growing global recognition of climate change • Effects far-ranging • When including transportation, energy use accounts for 80% of California GHG emissions 3

California Energy Commission California Leadership • Senate Bill 32 (2016) enacts Governor Brown’s goal to reduce greenhouse gas emissions 40% below 1990 levels by 2030. • California accounts for 1% of global emissions. • Governor Brown is spearheading Under 2 MOU. Signatories represent: – 136 jurisdictions – 32 countries – 30% of global economy • Governor Brown signed accords with leaders from Mexico, China, Canada, Japan, Israel, and Peru 4

California Energy Commission Statewide Greenhouse Gas Emissions, 2014 • Electricity: 20% • Industrial: 24% • Residential and commercial: 11% (26% if include electricity use) • Transportation: 37% 5

California Energy Commission Transformation of California’s Electricity System: Renewables Growth • 2014 GHG emissions are 26% below 1990 levels • Renewable capacity grew from 6, 800 MW in 2001 to 19, 000 MW in 2016 (23, 600 MW including selfgen) 6

California Energy Commission Transformation of California’s Electricity System: Coal has Declined • Coal-fired electricity used in California was 11% in 2000 and has dropped to 6% by end of 2015, almost entirely from out-of-state. 7

California Energy Commission Transformation of California’s Electricity System (cont’d. ) • Criteria pollutants are low • Land-use planning advancements: – Desert Renewable Energy Conservation Plan (DRECP) – Phase 1 covering 10. 8 million acres of public lands was completed on Sept 14, 2016 • Renewable Energy Transmission Initiative 2. 0 • Reduced water consumption 8

California Energy Commission Further Transformation Needed • Grid operators are already managing big ramps • Energy Imbalance Market (EIM) helps avoid curtailment 9

California Energy Commission Further Transformation Needed (cont’d. ) • Develop regional grid • Increase flexible resources • Upgrade distribution system • Streamline permitting process 10

California Energy Commission Decarbonizing Energy System • Increased energy efficiency • Transform transportation • Expand access to clean energy technologies • Advance R&D on emerging technologies 11

California Energy Commission Aging Infrastructure Response to Large-Scale Leak at Aliso Canyon Natural Gas Storage Facility • Joint agencies: Energy Commission, CPUC, California ISO, and LADWP • Summer Action Plan • Winter Action Plan 12

California Energy Commission New legislation to Improve Safety of the Natural Gas System • Senate Bill 380 (Pavley) • Senate Bill 887 (Pavley) • Senate Bill 826 (Leno) • Senate Bill 888 (Allen) 13

California Energy Commission Electricity Reliability in Southern California • Multiyear joint agency effort • Preferred resources (energy efficiency, demand response, fuel cells, renewable distributed generation, combined heat and power) • Transmission upgrades • Conventional generation • Contingency planning 14

California Energy Commission Aging Infrastructure - Nuclear • San Onofre decommissioning underway • Diablo Canyon will shut down by 2025 • Long-term onsite spent fuel storage remains a concern • Permanent storage solution needed 15

California Energy Commission Planning for the Future • Integrated resource plans • Transform transportation • Enhanced analytical capability forecasting • Landscape-scale planning • Climate adaptation 16

California Energy Commission Comments Welcome Written Comments Due November 7 Thank you 17