IESO appeals for reduced electricity consumption in the GTA

By Canada News Wire


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The Independent Electricity System Operator (IESO) is asking consumers in the Greater Toronto Area (GTA) to reduce their use of electricity during peak demand times for June 26 and 27.

High temperatures and high humidity levels are resulting in increased demand for electricity through air conditioning use. There are also limitations on the generation and transmission system serving the GTA as a result of equipment outages.

As a precautionary measure, the IESO is asking customers to reduce demand to help relieve the strain on the system serving the GTA. Curtailment efforts can reduce demand and provide additional operating flexibility to help maintain reliability in the area should further problems develop.

Residential and business consumers are being asked to reduce their electricity consumption, where possible, between noon and 8:00 p.m. over the next two days.

Consumers can reduce the demands on the electricity system between noon and 8:00 p.m. by:

- Turning off all but essential internal and external lights;

- Set air conditioners to 26 degrees Celsius or higher, or use fans as an alternative;

- Close curtains and blinds to keep out the sun and retain cooler air inside; and

- Limit the use of major power-consuming equipment such as dishwashers, washers and dryers and swimming pool pumps.

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Are Norwegian energy firms ‘best in class’ for environmental management?

CO2 Tax for UK Offshore Energy Efficiency can accelerate adoption of aero-derivative gas turbines, flare gas recovery, and combined cycle power, reducing emissions on platforms like Equinor's Mariner and supporting net zero goals.

 

Key Points

A carbon price pushing operators to adopt efficient turbines, flare recovery, and combined cycle to cut emissions.

✅ Aero-derivative turbines beat industrial units on efficiency

✅ Flare gas recovery cuts routine flaring and fuel waste

✅ Combined cycle raises efficiency and lowers emissions

 

By Tom Baxter

The recent Energy Voice article from the Equinor chairman concerning the Mariner project heralding a ‘significant point of reference’ for growth highlighted the energy efficiency achievements associated with the platform.

I view energy efficiency as a key enabler to net zero, and alongside this the UK must start large-scale storage to meet system needs; it is a topic I have been involved with for many years.

As part of my energy efficiency work, I investigated Norwegian practices and compared them with the UK.

There were many differences, here are three;


1. Power for offshore installations is usually supplied from gas turbines burning fuel from the oil and gas processing plant, and even as the UK's offshore wind supply accelerates, installations convert that to electricity or couple the gas turbine to a machine such as a gas compressor.

There are two main generic types of gas turbine – aero-derivative and industrial. As the name implies aero-derivatives are aviation engines used in a static environment. Aero-derivative turbines are designed to be energy efficient as that is very import for the aviation industry.

Not so with industrial type gas turbines; they are typically 5-10% less efficient than a comparable aero-derivative.

Industrial machines do have some advantages – they can be cheaper, require less frequent maintenance, they have a wide fuel composition tolerance and they can be procured within a shorter time frame.

My comparison showed that aero-derivative machines prevailed in Norway because of the energy efficiency advantages – not the case in the UK where there are many more offshore industrial gas turbines.

Tom Baxter is visiting professor of chemical engineering at Strathclyde University and a retired technical director at Genesis Oil and Gas Consultants


2. Offshore gas flaring is probably the most obvious source of inefficient use of energy with consequent greenhouse gas emissions.

On UK installations gas is always flared due to the design of the oil and gas processing plant.

Though not a large quantity of gas, a continuous flow of gas is routinely sent to flare from some of the process plant.

In addition the flare requires pilot flames to be maintained burning at all times and, while Europe explores electricity storage in gas pipes, a purge of hydrocarbon gas is introduced into the pipes to prevent unsafe air ingress that could lead to an explosive mixture.

On many Norwegian installations the flare system is designed differently. Flare gas recovery systems are deployed which results in no flaring during continuous operations.

Flare gas recovery systems improve energy efficiency but they are costly and add additional operational complexity.


3. Returning to gas turbines, all UK offshore gas turbines are open cycle – gas is burned to produce energy and the very hot exhaust gases are vented to the atmosphere. Around 60 -70% of the energy is lost in the exhaust gases.

Some UK fields use this hot gas as a heat source for some of the oil and gas treatment operations hence improving energy efficiency.

There is another option for gas turbines that will significantly improve energy efficiency – combined cycle, and in parallel plans for nuclear power under the green industrial revolution aim to decarbonise supply.

Here the exhaust gases from an open cycle machine are taken to a separate turbine. This additional turbine utilises exhaust heat to produce steam with the steam used to drive a second turbine to generate supplementary electricity. It is the system used in most UK power stations, even as UK low-carbon generation stalled in 2019 across the grid.

Open cycle gas turbines are around 30 – 40% efficient whereas combined cycle turbines are typically 50 – 60%. Clearly deploying a combined cycle will result in a huge greenhouse gas saving.

I have worked on the development of many UK oil and gas fields and combined cycle has rarely been considered.

The reason being is that, despite the clear energy saving, they are too costly and complex to justify deploying offshore.

However that is not the case in Norway where combined cycle is used on Oseberg, Snorre and Eldfisk.

What makes the improved Norwegian energy efficiency practices different from the UK – the answer is clear; the Norwegian CO2 tax.

A tax that makes CO2 a significant part of offshore operating costs.

The consequence being that deploying energy efficient technology is much easier to justify in Norway when compared to the UK.

Do we need a CO2 tax in the UK to meet net zero – I am convinced we do. I am in good company. BP, Shell, ExxonMobil and Total are supporting a carbon tax.

Not without justification there has been much criticism of Labour’s recent oil tax plans, alongside proposals for state-owned electricity generation that aim to reshape the power market.

To my mind Labour’s laudable aims to tackle the Climate Emergency would be much better served by supporting a CO2 tax that complements the UK's coal-free energy record by strengthening renewable investment.

 

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As peak wildfire season nears, SDG&E completes work on microgrid in Ramona

SDG&E Ramona Microgrid delivers renewable energy and battery storage for wildfire mitigation, grid resilience, and PSPS support, powering the Cal Fire Air Attack Base with a 500 kW, 2,000 kWh lithium-ion system during outages.

 

Key Points

A renewable, battery-backed microgrid powering Ramona's Air Attack Base, boosting wildfire response and PSPS resilience.

✅ 500 kW, 2,000 kWh lithium-ion storage replaces diesel

✅ Keeps Cal Fire and USFS aircraft operations powered

✅ Supports PSPS continuity and rural water reliability

 

It figures to be another dry year — with the potential to spark wildfires in the region. But San Diego Gas & Electric just completed a renewable energy upgrade to a microgrid in Ramona that will help firefighters and reduce the effects of power shutoffs to backcountry residents.

The microgrid will provide backup power to the Ramona Air Attack Base, helping keep the lights on during outages, home to Cal Fire and the U.S. Forest Service's fleet of aircrafts that can quickly douse fires before they get out of hand.

"It gives us peace of mind to have backup power for a critical facility like the Ramona Air Attack Base, especially given the fact that fire season in California has become year-round," Cal Fire/San Diego County Fire Chief Tony Mecham said in a statement.

The air attack base serves as a hub for fixed-wing aircraft assigned to put out fires. Cal Fire staffs the base throughout the year with one two airtankers and one tactical aircraft. The base also houses the Forest Service's Bell 205 A++ helicopter and crew to protect the Cleveland National Forest. Aircraft for both CalFire and the Forest Service can also be mobilized to help fight fires throughout the state.

This summer, the Ramona microgrid won't have to rely on diesel generation. Instead, the facility next to the town's airport will be powered by a 500 kilowatt and 2,000 kilowatt-hour lithium-ion battery storage system that won't generate any greenhouse gas emissions.

"What's great about it, besides that it's a renewable resource, is that it's a permanent installation," said Jonathan Woldemariam, SDG&E's director of wildfire mitigation and vegetation management. "In other words, we don't have to roll a portable generator out there. It's something that can be leveraged right there because it's already installed and ready to go."

Microgrids have taken on a larger profile across the state because they can operate independently of the larger electric grid, where repairing California's grid is an ongoing challenge, thus allowing small areas or communities to keep the power flowing for hours at a time during emergencies.

That can be crucial in wildfire-prone areas affected by Public Safety Power Shutoffs, or PSPS, the practice in which investor-owned utilities in California de-energize electrical power lines in a defined area when conditions are dry and windy in order to reduce the risk of a power line falling and igniting a wildfire, while power grid upgrades move forward statewide.

Rural and backcountry communities are particularly hard hit when the power is pre-emptively cut off because many homes rely on water from wells powered by electricity for their homes, horses and livestock.

In addition to Ramona, SDG&E has established microgrids in three other areas in High Fire Threat Districts:

The microgrids in Butterfield Ranch and Shelter Valley run on diesel power but the utility plans to complete solar and battery storage systems for each locale by the end of next year, as other regions develop new microgrid rules to guide deployment.

SDG&E has a fifth microgrid in operation — in Borrego Springs, which in 2013 became the first utility-scale microgrid in the country. It provides grid resiliency to the roughly 2,700 residents of the desert town and serves as a model for integrated microgrid projects elsewhere in delivering local electricity. While the Borrego Springs microgrid is not located in a High Fire Threat District, "when and if any power is turned off, especially the power transmission feed that goes to Borrego, we can support the customers using the microgrid out there," Woldemariam said.

Microgrid costs can be higher than conventional energy systems, even as projected energy storage revenue grows over the next decade, and the costs of the SDG&E projects are passed on to ratepayers. As per California Public Utilities Commission rules, the financial details for each of microgrid are kept confidential for at least three years.

SDG&E's microgrids are part of the utility's larger plan to reduce wildfire risk that SDG&E files with the utilities commission. In its wildfire plan for 2020 through 2022, SDG&E expected to spend $1.89 billion on mitigation measures.

 

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UK peak power prices rise to second highest level since 2018

UK Peak Power Prices surged as low wind speeds forced National Grid to rely on gas-fired plants and coal generation, amid soaring wholesale gas prices and weak wind generation during the energy crisis.

 

Key Points

UK Peak Power Prices are electricity costs at peak hours, driven by wind output, gas reliance, and market dynamics.

✅ Spikes when wind generation drops and demand rises.

✅ Driven by gas-fired plants, coal backup, and wholesale gas prices.

✅ Moderate as wind output recovers and interconnectors supply.

 

Low wind speeds pushed peak hour power prices to the second highest level for at least three years on Monday, a move consistent with UK electricity prices hitting a 10-year high earlier this year, as Britain’s grid was forced to increase its reliance on gas-fired power plants and draw on coal generation.

Calm weather this year has exacerbated the energy price crisis in the UK, as gas-fired power stations have had to pick up the slack from wind farms. Energy demand has surged as countries open up from pandemic restrictions, which together with lower supplies from Russia to western Europe, has sent wholesale gas prices soaring.

Power prices in the UK for the peak evening period between 5pm and 6pm on Monday surpassed £2,000 per megawatt hour, only the second time they have exceeded that level in recent years.

This was still below the levels reached at the height of the gas price crisis in mid-September, when they hit £2,500/MWh, according to the energy consultancy Cornwall Insight, whose records date back to 2018.

Low wind speeds were the main driver behind Monday’s price spike, although expectations of a pick-up in wind generation on Tuesday, after recent record wind generation days, should push them back down to similar levels seen in recent weeks, analysts said.

Despite the expansion of renewables, such as wind and solar, over the past decade, with instances of wind leading the power mix in recent months, gas remains the single biggest source of electricity generation in Britain, typically accounting for nearly 40 per cent of output.

At lunchtime on Monday, gas-fired power plants were producing nearly 55 per cent of electricity, while coal accounted for 3 per cent, reflecting more power from wind than coal in 2016 milestones. Britain’s wind farms were contributing 1.67 gigawatts or just over 4 per cent, according to data from the Drax Electrics Insights website. Over the past 12 months, wind farms have produced 21 per cent of the UK’s electricity on average.

National Grid, which manages the UK’s electricity grid, has been forced on a number of occasions in recent months to ask coal plants to fire up to help offset the loss of wind generation, after issuing a National Grid short supply warning to the market. The government announced in June that it planned to bring forward the closure of the remaining coal stations to the end of September 2024.

Ministers also committed this year to making Britain’s electricity grid “net zero carbon” by 2035, and milestones such as when wind was the main source underline the transition, although some analysts have pointed out that would not signal the end of gas generation.

Since the start of the energy crisis in August, 20 energy suppliers have gone bust as they have struggled to secure the electricity and gas needed to supply customers at record wholesale prices, with further failures expected in coming weeks.

Phil Hewitt, director of the consultancy EnAppSys, said Monday’s high prices would further exacerbate pressures on those energy suppliers that do not have adequate hedging strategies. “This winter is a good time to be a generator,” he added.

Energy companies including Orsted of Denmark and SSE of the UK have reported some of the lowest wind speeds for at least two decades this year, even though record output during Storm Malik highlighted the system's volatility.

According to weather modelling group Vortex, the strength of the wind blowing across northern Europe has fallen by as much as 15 per cent on average in places this year, which some scientists suggest could be due to climate change.
 

 

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The UK’s energy plan is all very well but it ignores the forecast rise in global sea-levels

UK Marine Energy and Climate Resilience can counter sea level rise and storm surge with tidal power, subsea turbines, heat pumps, and flood barriers, delivering renewable electricity, stability, and coastal protection for the United Kingdom.

 

Key Points

Integrated use of tidal power, barriers, and heat pumps to curb sea level rise, manage storms, and green the UK grid.

✅ Tidal bridges and subsea turbines enhance baseload renewables

✅ Integrated barriers cut storm surge and river flood risk

✅ Heat pumps and marine heat networks decarbonize coastal cities

 

IN concentrating on electrically driven cars, the UK’s new ten-point energy plans, and recent UK net zero policies, ignores the elephant in the room.

It fails to address the forecast six-metre sea level rise from global warming rapidly melting the Greenland ice sheet.

Rising sea levels and storm surge, combined with increasingly heavy rainfall swelling our rivers, threaten not only hundreds of coastal communities but also much unprotected strategic infrastructure, including electricity systems that need greater resilience.

New nuclear power stations proposed in this United Kingdom plan would produce radioactive waste requiring thousands of years to safely decay.

This is hardly the solution for the Green Energy future, or the broader global energy transition, that our overlooked marine energy resource could provide.

Sea defences and barrier design, built and integrated with subsea turbines and heat pumps, can deliver marine-driven heat and power to offset the costs, not only of new Thames Barriers, but also future Severn, Forth and other barrages, while reducing reliance on high-GWP gases such as SF6 in switchgear across the grid.

At the Pentland Firth, existing marine turbine power could be enhanced by turbines deployed from new tidal bridges to provide much of UK’s electricity needs, as nations chart an electricity future that replaces fossil fuels, from its estimated 60 gigawatt capability.

Energy from Bluemull Sound could likewise be harvested and exported or used to enhance development around UK’s new space station at Unst.

The 2021 Climate Change Summit gives Glasgow the platform to secure Scotland’s place in a true green, marine energy future and help build an electric planet for the long term.

We must not waste this opportunity.

THERE is no vaccine for climate change.

It is, of course, wonderful news that such progress is being made in the development of Covid-19 vaccines but there is a risk that, no matter how serious the Covid crisis is, it is distracting attention, political will and resources from the climate crisis, a much longer term and more devastating catastrophe.

They are intertwined. As climate and ecological systems change, vectors and pathogens migrate and disease spreads.

What lessons can be learned from one to apply to the other?

Prevention is better than cure. We need to urgently address the climate crisis, charting a path to net zero electricity by the middle of the century, to help prevent future pandemics.

We are only as safe as the most vulnerable. Covid immunisation will protect the most vulnerable; to protect against the effects of climate change we need to look far more deeply. Global challenges require systemic change.

Neither Covid or climate change respect national borders and, for both, we need to value and trust science and the scientific experts and separate them from political posturing.

 

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Opinion: The awesome, revolutionary electric-car revolution that doesn't actually exist

Ecofiscal Commission EV Policy Shift examines carbon pricing limits, endorsing signal boosters like subsidies, EV incentives, and coal bans, amid advisory changes and public pushback, to accelerate emissions cuts beyond market-based taxes and regulations.

 

Key Points

An updated stance recognizing carbon pricing limits and backing EV incentives, subsidies, and rules to reduce emissions.

✅ Carbon pricing plus subsidies, EV incentives

✅ Advisory shift; Jack Mintz departs

✅ Focus on emissions cuts, coal power bans

 

Something strange happened at the Ecofiscal Commission recently. Earlier this month, the carbon-tax advocacy group featured on its website as one of its advisers the renowned Canadian economist (and FP Comment columnist) Jack M. Mintz. The other day, suddenly and without fanfare, Mintz was gone from the website, and the commission’s advisory board.

Advisers come and advisers go, of course, but it turns out there was an impetus for Mintz’s departure. The Ecofiscal Commission in its latest report, dropped just before Canada Day, seemingly shifted from its position that carbon prices were so excellent at mimicking market forces that the tax could repeal and replace virtually the entire vast expensive gallimaufry of subsidies, caps, rules and regulations that are costing Canada a fortune in business and bureaucrats. As some Ecofiscal commissioners wrote just a few months ago, policies that “dictate specific technologies or methods for reducing emissions constrain private choice and increase costs” and were a bad idea.

But, in this latest report, the commission is now musing about the benefits of carbon-tax “signal boosters”: that is, EV subsidies and rules to, for instance, get people to start buying electric vehicles (EVs), as well as bans on coal-fired power. “Even well designed carbon pricing can have limitations,” rationalized the commission. Mintz said he had “misgivings” about the change of tack. He decided it best if he focus his advisory energies elsewhere.

It’s hard to blame the commission for falling like everyone else for the electric-car mania that’s sweeping the nation and the world. Electric cars offer a sexiness that dreary old carbon taxes can never hope to match — especially in light of a new Angus Reid poll last week that showed the majority of Canadians now want governments to shelve any plans for carbon taxes.

So far, because nobody’s really driving these miracle machines, said mania has been limited to breathless news reports about how the electric-vehicle revolution is about to rock our world. EVs comprise just two-tenths of a per cent of all passenger vehicles in North America, despite the media’s endless hype and efforts of green-obsessed governments to cover much of the price tag, like Ontario’s $14,000 rebate for Tesla buyers. In Europe, where virtue-signalling urban environmentalism is the coolest, they’re not feeling the vehicular electricity much more: EVs account for barely one per cent of personal vehicles in France, the U.K. and Germany. When Hong Kong cancelled Tesla rebates in April, sales fell to zero.

Going by the ballyhoo, you’d think EVs were at an inflection point and an unstoppable juggernaut. But it’s one that has yet to even get started. In his 2011 State of the Union address, then president Barack Obama predicted one million electric cars on the road by 2015. Four years later, there wasn’t even a third that many. California offered so many different subsidies for electric vehicles that low-income families could get rebates of up to US$13,500, but it still isn’t even close to reaching its target of having zero-emission vehicles make up 15 per cent of California auto sales by 2025, being stuck at three per cent since 2014. Ontario’s Liberal government last year announced to much laughter its plan to ensure that every family would have at least one zero-emission vehicle (ZEV) by 2024, and Quebec made a plan to make ZEVs worth 15.5 per cent of sales by 2020, while Ottawa’s 2035 EV mandate attracts criticism too. Let’s see how that’s going: Currently, ZEVs make up 0.16 per cent of new vehicle sales in Ontario and 0.38 per cent in Quebec.

The latest sensational but bogus EV news out last week was France’s government announcing the “end of the sale of gasoline and diesel cars by 2040,” and Volvo apparently announcing that as of 2019, all its models would be “electric.” Both announcements made international headlines. Both are baloney. France provided no actual details about this plan (will it literally become a crime to sell a gasoline car? Will hybrids, run partly on gasoline, be allowed?), but more importantly, as automotive writer Ed Wiseman pointed out in The Guardian, a lot will happen in technology and automotive use over the next 23 years that France has no way to predict, with changes in self-driving cars, public car-sharing and fuel technologies. Imagine making rules for today’s internet back in 1994.

Volvo, meanwhile, looked to be recycling and repackaging years-old news to seize on today’s infatuation with electric vehicles to burnish its now Chinese-owned brand. Since 2010, Volvo’s plan has been to focus on engines that were partly electric, with electric turbochargers, but still based on gasoline. Volvo doesn’t actually have an all-electric model, but the gasoline-swigging engine of its popular XC90 SUV is, partly, electrical. When Volvo said all its models would in two years be “electric,” it meant this kind of engine, not that it was phasing out the internal-combustion gasoline engine. But that is what it wanted reporters to think, and judging by all the massive and inaccurate coverage, it worked.

The real story being missed is just how pathetic things look right now for electric cars. Gasoline prices in the U.S. turned historically cheap in 2015 and stayed cheap, icing demand for gasless cars. Tesla, whose founder’s self-promotion had made the niche carmaker magically more valuable than powerhouses like Ford and GM, haemorrhaged US$12 billion in market value last week after tepid sales figures brought some investors back to Earth, even as the company’s new Model 3 began rolling off the line.

Not helping is that environmental claims about environmental cars are falling apart. In June, Tesla was rocked by a controversial Swedish study that found that making one of its car batteries released as much CO2 as eight years of gasoline-powered driving. And Bloomberg reported last week on a study by Chinese engineers that found that electric vehicles, because of battery manufacturing and charging by fossil-fuel-powered electricity sources, emit 50-per-cent more carbon than do internal-combustion engines. Still, the electric-vehicle hype not only continues unabated, it gets bigger and louder every day. If some car company figures out how to harness it, we’d finally have a real automotive revolution on our hands.

Kevin Libin, Financial Post

 

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How Should California Wind Down Its Fossil Fuel Industry?

California Managed Decline of Fossil Fuels aligns oil phaseout with carbon neutrality, leveraging ZEV adoption, solar and wind growth, severance taxes, drilling setbacks, fracking oversight, CARB rules, and CalGEM regulation to deliver a just transition.

 

Key Points

California's strategy to phase out oil and gas while meeting carbon-neutral goals through policy, regulation, and equity.

✅ Severance taxes fund clean energy and workforce transition.

✅ Setbacks restrict drilling near schools, homes, and hospitals.

✅ CARB and CalGEM tighten fracking oversight and ZEV targets.

 

California’s energy past is on a collision course with its future. Think of major oil-producing U.S. states, and Texas, Alaska or North Dakota probably come to mind. Although its position relative to other states has been falling for 20 years, California remains the seventh-largest oil-producing state, with 162 million barrels of crude coming up in 2018, translating to tax revenue and jobs.

At the same time, California leads the nation in solar rooftops and electric vehicles on the road by a wide margin and ranking fifth in installed wind capacity. Clean energy is the state’s future, and the state is increasingly exporting its energy policies across the West, influencing regional markets. By law, California must have 100 percent carbon-free electricity by 2045, and an executive order signed by former Governor Jerry Brown calls for economywide carbon-neutrality by the same year.

So how can the state reconcile its divergent energy path? How should clean-energy-minded lawmakers wind down California’s oil and gas sector in a way that aligns with the state’s long-term climate targets while providing a just transition for the industry’s workforce?

Any efforts to reduce fossil fuel supply must run parallel to aggressive demand-reduction measures such as California’s push to have 5 million zero-emission vehicles on the road by 2030, said Ethan Elkind, director of Berkeley Law's climate program, especially amid debates over keeping the lights on without fossil fuels in the near term. After all, if oil demand in California remains strong, crude from outside the state will simply fill the void.

“If we don’t stop using it, then that supply is going to get here, even if it’s not produced in-state,” Elkind said in an interview.

Lawmakers have a number of options for policies that would draw down and eventually phase out fossil fuel production in California, according to a new report from the Center for Law, Energy and the Environment at the UC Berkeley School of Law, co-authored by Elkind and Ted Lamm.

They could impose a higher price on California's oil production through a "severance" tax or carbon-based fee, with the revenue directed to measures that wean the state from fossil fuels. (California, alone among major oil-producing states, does not have an oil severance tax.)

Lawmakers could establish a minimum drilling setback from schools, playgrounds, homes and other sensitive sites. They could push the state's oil and gas regulator, the California Geologic Energy Management Division, to prioritize environmental and climate concerns.

A major factor holding lawmakers back is, of course, politics, including debates over blackouts and climate policy that shape public perception. Given the state’s clean-energy ambitions, it might surprise non-Californians that the oil and gas industry is one of the Golden State’s most powerful special interest groups.

Overcoming a "third-rail issue" in California politics
The Western States Petroleum Association, the sector’s trade group in California's capital of Sacramento, spent $8.8 million lobbying state policymakers in 2019, more than any other interest group. Over the last five years, the group, which cultivates both Democratic and Republican lawmakers, has spent $43.3 million on lobbying, nearly double the total of the second-largest lobbying spender.

Despite former Governor Brown’s reputation as a climate champion, critics say he was unwilling to forcefully take on the oil and gas industry. However, things may take a different turn under Brown's successor, Governor Gavin Newsom.

In May 2019, when Newsom released California's midyear budget revision (PDF), the governor's office noted the need for "careful study and planning to decrease demand and supply of fossil fuels, while managing the decline in a way that is economically responsible and sustainable.”

Related reliability concerns surfaced as blackouts revealed lapses in power supply across the state.

Writing for the advocacy organization Oil Change International, David Turnbull observed, “This may mark the first time that a sitting governor in California has recognized the need to embark upon a managed decline of fossil fuel supply in the state.”

“It is significant because typically this is one of those third-rail issues, kind of a hot potato that governors don’t even want to touch at all — including Jerry Brown, to a large extent, who really focused much more on the demand side of fuel consumption in the state,” said Berkeley Law’s Elkind.

California's revised budget included $1.5 million for a Transition to a Carbon-Neutral Economy report, which is being prepared by University of California researchers for the California Environmental Protection Agency. In an email, a CalEPA spokesperson said the report is due by the end of this year.

Winding down oil and gas production
Since the release of the revised budget last May, Newsom has taken initial steps to increase oversight of the oil and gas industry. In July 2019, he fired the state’s top oil and gas regulator for issuing too many permits to hydraulically fracture, or frack, wells.

Later in the year, he appointed new leadership to oversee oil and gas regulation in the state, and he signed a package of bills that placed constraints on fossil fuel production. The next month, Newsom halted the approval of new fracking operations until pending permits could be reviewed by a panel of scientists at Lawrence Livermore National Laboratory. The California Geologic Energy Management Division (CalGEM) did not resume issuing fracking permit approvals until April of this year.

Not all steps have been in the same direction. This month Newsom dropped a proposal to add dozens of analysts, engineers and geologists at CalGEM, citing COVID-related economic pressure. The move would have increased regulatory oversight on fossil fuel producers and was opposed by the state's oil industry.

Ultimately, more durable measures to wind down fossil fuel supply and demand will require new legislation, even as regulators weigh whether the state needs more power plants to maintain reliability.

A 2019 bill by Assemblymember Al Muratsuchi (D-Torrance), AB 345, would have codified the minimum 2,500-foot setback for new oil and gas wells. However, before the final vote in the Assembly, the bill’s buffer requirement was dropped and replaced with a requirement for CalGEM “to consider a setback distance of 2,500 feet.” The bill passed the Assembly in January over "no" votes from several moderate Democrats; it now awaits action in the Senate.

A bill previously introduced by Assemblymember Phil Ting (D-San Francisco), AB 1745, didn’t even make it that far. Ting’s bill would have required that all new passenger cars registered in the state after January 1, 2040, be zero-emission vehicles (ZEV). The bill died in committee without a vote in April 2018.

But the backing of the California Air Resources Board (CARB), one of the world's most powerful air-quality regulators, could change the political conversation. In March, CARB chair Mary Nichols said she now supports consideration of California establishing a 100 percent zero-emission vehicle sales target by 2030, as policymakers also consider a revamp of electricity rates to clean the grid.

“In the past, I’ve been skeptical about whether that would do more harm than good in terms of the backlash by dealers and others against something that sounded so un-California like,” Nichols said during an online event. “But as time has gone on, I’ve become more convinced that we need to send the longer-term signal about where we’re headed.”

Another complicating factor for California’s political leaders is the lack of a willing federal partner — at least in the short term — in winding down oil and gas production, amid warnings about a looming electricity shortage that could pressure the grid.

Under the Trump administration, the Bureau of Land Management, which oversees 15 million acres of federal land in California, has pushed to open more than 1 million acres of public and private land across eight counties in Central California to fracking. In January 2020, California filed a federal lawsuit to block the move.

 

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