Carbon tariffs pose risk of trade war, OECD told

By National Post


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The leading economic organization of the industrialized world is being advised to condemn attempts by countries to impose carbon tariffs on certain imported goods - an initiative that the Liberal party advocates in its key election-campaign policy, the Green Shift plan.

The Organization for Economic Co-operation and Development has been told that tariffs aimed at punishing countries - mostly from such emerging markets as China - that emit high levels of greenhouse gases carry "significant" risks, including sparking a global trade war. It is advised to "speak out strongly" against such levies.

Carbon tariffs "will neither improve the global environment nor strengthen the competitiveness of OECD industries, companies and firms," the OECD was told in a briefing dated Sept. 10.

The advice was from a coalition of 36 business associations that includes the Canadian Chamber of Commerce.

"Unilateral measures are likely to be considered a violation of international trade and climate-change commitments, could trigger trade protectionism, could damage the integrity of international environmental treaties and make it more difficult to achieve a much-needed global post-Kyoto agreement on GHG emissions reductions," the association said.

The advice to the OECD was contained in a briefing stamped "draft," a copy of which has been obtained by the National Post.

Carbon tariffs are seen as a way that governments can help their domestic businesses compete in a global marketplace where rivals may not face the same kind of stringent environmental regulations. Economists at CIBC World Markets have said carbon tariffs could boost inflation, as new charges are slapped on imports, and reverse companies' march toward moving manufacturing operations to countries with less-robust climate-change policies.

It is expected that once the United States puts a price on carbon either through a carbon tax or a cap-and-trade system - it may be keen to use carbon tariffs as a weapon against the emerging economic powerhouses, most notably China. The European Union already prices carbon through its cap-and-trade system. Imposing carbon tariffs is part of the Liberal party's Green Shift plan, which Stephane Dion, has made the centerpiece of the Liberal election platform.

"We will build carbon pricing into our strategy for international trade, endeavouring where possible to ensure that goods from countries that are not pricing carbon will face a tariff reflective of carbon content," the Green Shift says.

The Liberal environmental platform adds there should be no risk to Canada's trading relationship with the United States because it is expected that the next U. S. president, whether Republican or Democratic, will pursue a policy that prices carbon.

However, the business advisory group warns the OECD that trade policy should not be used to "coerce" countries to adopt more stringent environmental policy. It adds an unintended consequence for countries that pursue carbon tariffs is that their business communities will become complacent and less productive - leading to drops in their respective standards of living.

"The initial advantage of protection for domestic companies will over time likely turn into a competitive disadvantage as companies that are partially shielded from competition tend to be less innovative, less active in seeking new business opportunities and less eager to reduce excessive costs than companies that are exposed to effective international competition," the OECD is warned.

The OECD briefing adds that carbon tariffs could undermine efforts to get consensus on a global environmental treaty.

"It is difficult to understand how OECD countries could sign an international environmental agreement, recognizing common but differentiated responsibilities, and then impose border tax adjustments on trade with those countries," the briefing says.

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Texas lawmakers propose electricity market bailout after winter storm

Texas Electricity Market Bailout proposes securitization bonds and ERCOT-backed fees after Winter Storm Uri, spreading costs via ratepayer charges on power bills to stabilize generators, co-ops, and retailers and avert bankruptcies and investor flight.

 

Key Points

State plan to securitize storm debts via ERCOT fees, adding bill charges to stabilize Texas power firms.

✅ Securitization bonds finance unpaid ancillary services and energy costs

✅ ERCOT fee spreads Winter Storm Uri debts across ratepayers statewide

✅ Aims to prevent bankruptcies, preserve grid reliability, reassure investors

 

An approximately $2.5 billion plan to bail out Texas’ distressed electricity market from the financial crisis caused by Winter Storm Uri in February has been approved by the Texas House.

The legislation would impose a fee — likely for the next decade or longer — on electricity companies, which would then get passed on to residential and business customers in their power bills, even as some utilities waived certain fees earlier in the crisis.

House lawmakers sent House Bill 4492 to the Senate on Thursday after a 129-15 vote. A similar bill is advancing in the Senate.

Some of the state’s electricity providers and generators are financially underwater in the aftermath of the February power outages, which left millions without power and killed more than 100 people. Electricity companies had to buy whatever power was available at the maximum rate allowed by Texas regulations — $9,000 per megawatt hour — during the week of the storm (the average price for power in 2020 was $22 per megawatt hour). Natural gas fuel prices also spiked more than 700% during the storm.

Several companies are nearing default on their bills to the Electric Reliability Council of Texas, which manages the Texas power grid that covers most of the state and facilitates financial transactions in it.

Rural electric cooperatives were especially hard hit; Brazos Electric Power Cooperative, which supplies electricity to 1.5 million customers, filed for bankruptcy citing a $1.8 billion debt to ERCOT.

State Rep. Chris Paddie, R-Marshall, the bill’s author, said a second bailout bill will be necessary during the current legislative session for severely distressed electric cooperatives.

“This is a financial crisis, and it’s a big one,” James Schaefer, a senior managing director at Guggenheim Partners, an investment bank, told lawmakers at a House State Affairs Committee hearing in early April. He warned that more bankruptcies would cause higher costs to customers and hurt the state’s image in the eyes of investors.

“You’ve got to free the system,” Schaefer said. “It’s horrible that a bunch of folks have to pay, but it’s a system-wide failure. If you let a bunch of folks crash, it’s not a good look for your state.”

If approved by the Senate and Gov. Greg Abbott, a newly-created Texas Electric Securitization Corp. would use the money raised from the fees for bonds to help pay the companies’ debts, including costs for ancillary services, a financial product that helps ensure power is continuously generated and improve electricity reliability across the grid.

Paddie told his colleagues Wednesday that he could not yet estimate how long the new fee would be imposed, but during committee hearings lawmakers estimated it’s likely to be at least a decade. Several other bills to spread out the costs of the winter storm and consider market reforms are also moving through the Legislature.

ERCOT’s independent market monitor recommended in March that energy sold during that period be repriced at a lower rate, which would have allowed ERCOT to claw back about $4.2 billion in payments to power generators, but the Public Utility Commission declined to do so, even as a court ruling on plant obligations in emergencies drew scrutiny among market participants.

Instead, lawmakers are pushing for bailouts that several energy experts have said is needed, both to ensure distressed companies don’t pass enormous costs on to their customers and to prevent electricity investors and companies from leaving the state if it’s viewed as too risky to continue doing business.

Becky Klein, an energy consultant in Austin and former chair of the Public Utility Commission who played a key role in de-regulating Texas’ electricity market two decades ago, said during a retail electricity panel hosted by Integrate that legislation is necessary to provide “some kind of backstop during a crazy market crisis like this to show the financial market that we’re willing to provide some relief.”

Still, some lawmakers are concerned with how they will win public support, including potential voter-approved funding measures, for bills to bail out the state’s electricity market.

“I have to go back to Laredo and say, ‘I know you didn’t have electricity for several days, but now I’m going to make you pay a little more for the next 20 years,’” state Rep. Richard Peña Raymond, D-Laredo, said during an early April discussion on the plan in the House State Affairs Committee. He said he voted for the bill because it’s in the best interest of the state.

Paddie, during the same committee hearing, acknowledged that “none of us want to increase fees or taxes.” However, he said, “We have to deal with the reality set before us.”

 

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EasyPower Webinars - August and September Schedule

EasyPower Webinars deliver expert training on electrical power systems, covering arc flash, harmonics, grounding, overcurrent coordination, NEC and IEEE 1584 updates, with on-demand videos and email certificates for continuing education credits.

 

Key Points

EasyPower Webinars are expert-led power systems trainings with CE credit details and on-demand access.

✅ Arc flash, harmonics, and grounding fundamentals with live demos

✅ NEC 2020 and IEEE 1584 updates for compliance and safety

✅ CE credits with post-webinar email documentation

 

We've ramped up webinars to help your learning while you might be working from home, and similar live online fire alarm training options are widely available. As usual, you will receive an email the day after the webinar which will include the details most states need for you to earn continuing education credit, amid a broader grid warning during the pandemic from regulators.

EasyPower's well known webinar series covers a variety of topics regarding electrical power systems. Below you will see our webinars scheduled through the next few months, reflecting ongoing sector investments in the future of work across the electricity industry.

In addition, there are more than 150 videos that were recorded from past webinars in our EasyPower Video Library. The topics of these videos include arc flash training, short circuit, protective device coordination, power flow, harmonics, DC systems, grounding, and many others.

 

AUGUST WEBINARS

 

Active & Passive Harmonic Filters in EasyPower

By Tao Yang, Ph.D, PE, at EasyPower

In this webinar, Tao Yang, Ph.D, PE, from EasyPower provides a refresher course on fundamental concepts of harmonics study and the EasyPower Harmonics module. He describes the two major harmonics filters, both active and passive, and their implementation in the EasyPower Harmonics module. As passive filters are widely used in the industry, he covers four kinds of typical passive filters: notch, first order, second order, and C-type filters, including their implementation in EasyPower and their tuning processes. He uses live examples to demonstrate the modeling and parameter tuning for both active and passive filters using simple EasyPower cases.

Date: Thursday, August 13, 2020
Time: 10:00 AM - 11:00 AM Pacific
Register: https://attendee.gotowebinar.com/register/1359680676441129997

 

Cracking the Code for Arc-Flash Mitigation

By Mark Pollock at Littelfuse

The National Electrical Code (NEC) outlines several arc-flash mitigation options, aligning with broader arc flash training insights across the industry. This presentation, given by Mark Pollock at Littelfuse, reviews the arc-flash mitigation options from the NEC 2020, and some updates to the IEEE 1584-2018 standard. In addition to understanding the codes, we’ll discuss the return on investment for the various mitigation options and the importance of arc-flash assessments in your facility. 

Date: Thursday, August 20, 2020
Time: 10:00 AM - 11:00 AM Pacific
Register: https://attendee.gotowebinar.com/register/107117029724512527

 

Ground Fault Coordination in EasyPower

By Jim Chastain, Support Engineer at EasyPower

The PowerProtector™ module in EasyPower simplifies the process of coordinating protective devices. In this refresher webinar, Jim Chastain demonstrates the procedure to coordinate ground fault protection for both resistance-grounded and hard-grounded systems.

Date: Tuesday, August 25, 2020
Time: 8:00 AM - 8:30 AM Pacific
Register: https://attendee.gotowebinar.com/register/561389055546364429

 

SEPTEMBER WEBINARS

 

Overcurrent Coordination and Protection Basics

By James Onsager and Namrata Asarpota at S&C Electric

Coordination of overcurrent protective devices is necessary to limit interruptions to the smallest portion of the power system in the event of an overload or short-circuit. This webinar, given by James Onsager and Namrata Asarpota at S&C Electric, goes over the basics of Time Current Curves (TCCs), types of overcurrent protective devices (for both low-voltage and medium-voltage systems), and how to coordinate between them. Protection of common types of equipment such as transformers, cables and motors according the National Electrical Code (NFPA 70, NEC) is also discussed, alongside related fire alarm training online resources available to practitioners. 

Date: Thursday, September 3, 2020
Time: 10:00 AM -11:00 AM Pacific
Register: https://attendee.gotowebinar.com/register/6345420550218629133

 

Static Discharge Awareness and Explosion Protection

By Christopher Coughlan at Newson Gale, a Hoerbiger Safety Solutions Company

For any person responsible for the safety of employees, colleagues, plant equipment and plant property, one of the most potentially confusing aspects of providing a safe operating environment is understanding and safeguarding again static discharge, with industry leadership in worker safety highlighting best practices. In this webinar given by Christopher Coughlan at Newson Gale, a Hoerbiger Safety Solutions Company, he discusses how to determine if your site’s manufacturing or handling processes have the potential to discharge static sparks into flammable or combustible atmospheres. 

Date: Thursday, September 17, 2020
Time: 10:00 AM -11:00 AM Pacific
Register: https://attendee.gotowebinar.com/register/7225333317600833296

 

XGSLab New Feature - Seasonal Analysis For Grounding Systems

By David Lewis, P.E, Electrical Engineer, Grounding and Power Systems at EasyPower

In regions where the frost depth meets or exceeds the depth of a grounding system, the grounding system’s performance may be dramatically reduced, possibly creating hazardous conditions. The latest XGSLab release 9.5 provides a powerful new tool to analyze grounding system performance that considers the seasonal variation in soil characteristics. In this webinar, given by David Lewis, an electrical engineer at EasyPower, we describe the effect that seasonal variation can have on a grounding system and we step you through the use of the Seasonal Analysis tool. 

Date: Tuesday, September 25, 2020
Time: 8:00 AM -8:30 AM Pacific
Register: https://attendee.gotowebinar.com/register/6805488101896212751

 

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Europe's stunted hydro & nuclear output may hobble recovery drive

Europe 2023 Energy Shortfall underscores how weak hydro and nuclear offset record solar and wind, tightening grids as natural gas supplies shrink and demand rebounds, heightening risks of electricity shortages across key economies.

 

Key Points

A regional gap as weak hydro and nuclear offset record solar and wind, straining supply as gas stays tight.

✅ Hydro and nuclear output fell sharply in early 2023

✅ Record solar and wind could not offset the deficit

✅ Industrial demand rebound pressures limited gas supplies

 

Shortfalls in Europe's hydro and nuclear output have more than offset record electricity generation from wind and solar power sites over the first quarter of 2023, leaving the region vulnerable to acute energy shortages for the second straight year.

European countries fast-tracked renewable energy capacity development in 2022 in the wake of Russia's invasion of Ukraine last February, which upended natural gas flows to the region and sent power prices soaring.

Europe lifted renewable energy supply capacity by a record 57,290 megawatts in 2022, or by nearly 9%, according to the International Energy Agency (IRENA), amid a scramble to replace imported Russian gas with cleaner, home-grown energy.

However, steep drops in both hydro and nuclear output - two key sources of non-emitting energy - mean Europe's power producers have limited ways to lift overall electricity generation, as the region is losing nuclear power at a critical moment, just as the region's economies start to reboot after last year's energy shock.

POWER PLATEAU
Europe's total electricity generation over the first quarter of 2023 hit 1,213 terawatt hours, or roughly 6.4% less than during the same period in 2022, according to data from think tank Ember.

At the same time, European power hits records during extreme heat as plants struggle to cool, exacerbating supply risks.

As Europe's total electricity demand levels were in post-COVID-19 expansion mode in early 2022 before Russia's so-called special operation sent power costs to record highs amid debates over how electricity is priced in Europe, it makes sense that overall electricity use was comparatively stunted in early 2023.

However, efforts are now underway to revive activity at scores of European factories, industrial plants and production lines that were shuttered or curtailed in 2022, so Europe's collective electricity consumption totals are set to trend steadily higher over the remainder of 2023.

With Russian natural gas unavailable in the previous quantities due to sanctions and supply issues, Europe's power producers will need to deploy alternative energy sources, including renewables poised to eclipse coal globally, to feed that increase in power demand.

And following the large jump in renewable capacity brought online in 2022, utilities can deploy more low-emissions energy than ever before across Europe's electricity grids.

 

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No time to be silent on NZ's electricity future

New Zealand Renewable Energy Strategy examines decarbonisation, GHG emissions, and net energy as electrification accelerates, expanding hydro, geothermal, wind, and solar PV while weighing intermittency, storage, materials, and energy security for a resilient power system.

 

Key Points

A plan to expand electricity generation, balancing decarbonisation, net energy limits, and energy security.

✅ Distinguishes decarbonisation targets from renewable capacity growth

✅ Highlights net energy limits, intermittency, and storage needs

✅ Addresses materials, GHG build-out costs, and energy security

 

The Electricity Authority has released a document outlining a plan to achieve the Government’s goal of more than doubling the amount of electricity generated in New Zealand over the next few decades.

This goal is seen as a way of both reducing our greenhouse gas (GHG) emissions overall, as everything becomes electrified, and ensuring we have a 100 percent renewable energy system at our disposal. Often these two goals are seen as being the same – to decarbonise we must transition to more renewable energy to power our society.

But they are quite different goals and should be clearly differentiated. GHG emissions could be controlled very effectively by rationing the use of a fossil fuel lockdown approach, with declining rations being available over a few years. Such a direct method of controlling emissions would ensure we do our bit to remain within a safe carbon budget.

If we took this dramatic step we could stop fretting about how to reduce emissions (that would be guaranteed by the rationing), and instead focus on how to adapt our lives to the absence of fossil fuels.

Again, these may seem like the same task, but they are not. Decarbonising is generally thought of in terms of replacing fossil fuels with some other energy source, signalling that a green recovery must address more than just wind capacity. Adapting our lives to the absence of fossil fuels pushes us to ask more fundamental questions about how much energy we actually need, what we need energy for, and the impact of that energy on our environment.

MBIE data indicate that between 1990 and 2020, New Zealand almost doubled the total amount of energy it produced from renewable energy sources - hydro, geothermal and some solar PV and wind turbines.

Over this same time period our GHG emissions increased by about 25 percent. The increase in renewables didn’t result in less GHG emissions because we increased our total energy use by almost 50 percent, mostly by using fossil fuels. The largest fossil fuel increases were used in transport, agriculture, forestry and fisheries (approximately 60 percent increases for each).

These data clearly demonstrate that increasing renewable energy sources do not necessarily result in reduced GHG emissions.

The same MBIE data indicate that over this same time period, the amount of Losses and Own Use category for energy use more than doubled. As of 2020 almost 30 percent of all energy consumed in New Zealand fell into this category.

These data indicate that more renewable energy sources are historically associated with less energy actually being available to do work in society.

While the category Losses and Own Use is not a net energy analysis, the large increase in this category makes the call for a system-wide net energy analysis all the more urgent.

Net energy is the amount of energy available after the energy inputs to produce and deliver the energy is subtracted. There is considerable data available indicating that solar PV and wind turbines have a much lower net energy surplus than fossil fuels.

And there is further evidence that when the intermittency and storage requirements are engineered into a total renewable energy system, the net energy of the entire system declines sharply. Could the Losses and Other Uses increase over this 30-year period be an indication of things to come?

Despite the importance of net energy analysis in designing a national energy system which is intended to provide energy security and resilience, there is not a single mention of net energy surplus in the EA reference document.

So over the last 30 years, New Zealand has doubled its renewable energy capacity, and at the same time increased its GHG emissions and reduced the overall efficiency of the national energy system.

And we are now planning to more than double our renewable energy system yet again over the next 30 years, even as zero-emissions electricity by 2035 is being debated elsewhere. We need to ask if this is a good idea.

How can we expand New Zealand’s solar PV and wind turbines without using fossil fuels? We can’t.

How could we expand our solar PV and wind turbines without mining rare minerals and the hidden costs of clean energy they entail, further contributing to ecological destruction and often increasing social injustices? We can't.

Even if we could construct, deliver, install and maintain solar PV and wind turbines without generating more GHG emissions and destroying ecosystems and poor communities, this “renewable” infrastructure would have to be replaced in a few decades. But there are at least two major problems with this assumed scenario.

The rare earth minerals required for this replacement will already be exhausted by the initial build out. Recycling will only provide a limited amount of replacements.

The other challenge is that a mostly “renewable” energy system will likely have a considerably lower net energy surplus. So where, in 2060, will the energy come from to either mine or recycle the raw materials, and to rebuild, reinstall and maintain the next iteration of a renewable energy system?

There is currently no plan for this replacement. It is a serious misnomer to call these energy technologies “renewable”. They are not as they rely on considerable raw material inputs and fossil energy for their production and never ending replacement.

New Zealand is, of course, blessed with an unusually high level of hydro electric and geothermal power. New Zealand currently uses over 170 GJ of total energy per capita, 40 percent of which is “renewable”. This provides approximately 70 GJ of “renewable” energy per capita with our current population.

This is the average global per capita energy level from all sources across all nations, as calls for 100% renewable energy globally emphasize. Several nations operate with roughly this amount of total energy per capita that New Zealand can generate just from “renewables”.

It is worth reflecting on the 170 GJ of total energy use we currently consume. Different studies give very different results regarding what levels are necessary for a good life.

For a complex industrial society such as ours, 100 GJ pc is said to be necessary for a high levels of wellbeing, determined both subjectively (life satisfaction/ happiness measures), and objectively (e.g. infant mortality levels, female morbidity as an index of population health, access to nutritious food and educational and health resources, etc). These studies do not take into account the large amount of energy that is wasted either through inefficient technologies, or frivolous use, which effective decarbonization strategies seek to reduce.

Other studies that consider the minimal energy needed for wellbeing suggest a much lower level of per capita energy consumption is required. These studies take a different approach and focus on ensuring basic wellbeing is maintained, but not necessarily with all the trappings of a complex industrial society. Their results indicate a level of approximately 20 GJ per capita is adequate.

In either case, we in New Zealand are wasting a lot of energy, both in terms of the efficiency of our technologies (see the Losses and Own Use info above), and also in our uses which do not contribute to wellbeing (think of the private vehicle travel that could be done by active or public transport – if we had good infrastructure in place).

We in New Zealand need a national dialogue about our future. And energy availability is only one aspect. We need to discuss what our carrying capacity is, what level of consumption is sustainable for our population, and whether we wish to make adjustments in either our per capita consumption or our population. Both together determine whether we are on the sustainable side of carrying capacity. Currently we are on the unsustainable side, meaning our way of life cannot endure. Not a good look for being a good ancestor.

The current trajectory of the Government and Electricity Authority appears to be grossly unsustainable. At the very least they should be able to answer the questions posed here about the GHG emissions from implementing a totally renewable energy system, the net energy of such a system, and the related environmental and social consequences.

Public dialogue is critical to collectively working out our future. Allowing the current profit-driven trajectory to unfold is a recipe for disasters for our children and grandchildren.

Being silent on these issues amounts to complicity in allowing short-term financial interests and an addiction to convenience jeopardise a genuinely secure and resilient future. Let’s get some answers from the Government and Electricity Authority to critical questions about energy security.

 

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BC Hydro says province sleeping in, showering less in pandemic

BC Hydro pandemic electricity trends reveal weekend-like energy consumption patterns: later morning demand, earlier evenings, more cooking, streaming on smart TVs, and work-from-home routines, with tips to conserve using laptops and small appliances.

 

Key Points

Weekend-like shifts in power demand from work-from-home routines: later mornings, earlier evenings, and more streaming.

✅ Later morning electricity demand; earlier evening peaks

✅ More cooking and baking; increased streaming after dinner

✅ Conservation tips: laptops, small appliances, smart TVs

 

The latest report on electricity usage in British Columbia reveals the COVID-19 pandemic has created an atmosphere where every day feels like a Saturday, a pattern also reflected in BC electricity demand during peak seasons.

BC Hydro says overall power usage hasn't changed much, but similar Ontario electricity demand shifts suggest regional differences, while Manitoba demand fell more noticeably, and a survey of 500 people shows daily routines have shifted dramatically since mid-March when pandemic-related closures began.

The hydro report says, with nearly 40 per cent of B.C. residents working from home, trends in residential electricity use confirm almost half are sleeping in and eating breakfast later, while about a quarter say they are showering less.

Those patterns more closely resemble what hydro says is typical weekend power consumption, and could influence time-of-use rates as electricity demand occurs later in the morning and earlier in the evening.

The report also finds many people are cooking and baking more than before the pandemic, preparing the evening meal earlier, streaming or viewing more television after dinner even as Ottawa's electricity consumption dipped earlier in the pandemic, and 80 per cent are going to bed later.

Although electricity use is normal for this time of year, hydro says homebound residents can conserve by using laptops instead of desktops, small appliances such as Instant Pots instead of ovens, and streaming movies or TV shows on a smart televisions instead of game consoles, even as Hydro One peak rates continue to shape consumption patterns elsewhere.

 

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Should California classify nuclear power as renewable?

California Nuclear Renewable Bill AB 2898 seeks to add nuclear to the Renewables Portfolio Standard, impacting Diablo Canyon, PG&E compliance, carbon-free targets, and potential license extensions while addressing climate goals and natural gas reliance.

 

Key Points

A bill to add nuclear to California's RPS, influencing Diablo Canyon, PG&E planning, and carbon-free climate targets.

✅ Reclassifies nuclear as renewable in California's RPS.

✅ Could influence Diablo Canyon license extension and ownership.

✅ Targets carbon-free goals while limiting natural gas reliance.

 

Although he admits it's a long shot, a member of the California Legislature from the district that includes the Diablo Canyon nuclear plant has introduced a bill that would add nuclear power to the state's list of renewable energy sources.

"I think that nuclear power is an important component of generating large-scale electricity that's good for the environment," said Jordan Cunningham, R-San Luis Obispo. "Without nuclear as part of the renewable portfolio, we're going to have tremendous difficulty meeting the state's climate goals without a significant cost increase on electricity ratepayers."

Established in 2002, California's Renewables Portfolio Standard spells out the power sources eligible to count toward the state's goals to wean itself of fossil fuels. The list includes solar, wind, biomass, geothermal, small hydroelectric facilities and even tidal currents. The standard has been updated, currently calling for 60 percent of California's electricity to come from renewables by 2030 and 100 percent from carbon-free sources by 2045, even as some analyses argue net-zero emissions may be difficult to achieve without nuclear power.

Nuclear power is not part of the portfolio standard and Diablo Canyon — the only remaining nuclear plant in California — is scheduled to stop producing electricity by 2025, even as some Southern California plant closures face postponement to maintain grid reliability.

Pacific Gas & Electric, the operators of Diablo Canyon, announced in 2016 an agreement with a collection of environmental and labor groups to shut down the plant, often framed as part of a just transition for workers and communities. PG&E said Diablo will become uneconomical to run due to changes in California's power grid — such as growth of renewable energy sources, increased energy efficiency measures and the migration of customers from traditional utilities to community choice energy programs.

But Cunningham thinks the passage of Assembly Bill 2898, which he introduced last week, — as innovators like Bill Gates' mini-reactor venture tout new designs — could give the plant literally a new lease on life.

"If PG&E were able to count the power produced (at Diablo) toward its renewable goals, it might — I'm not saying it will or would, but it might — cause them to reconsider applying to extend the operating license at Diablo," Cunningham said.

Passing the bill, supporters say, could also make Diablo Canyon attractive to an outside investor to purchase and then apply to the Nuclear Regulatory Commission for a license extension.

But nuclear power has long generated opposition in California and AB 2898 will face long odds in Sacramento, and similar efforts elsewhere have drawn opposition from power producers as well. The Legislature is dominated by Democrats, who have expressed more interest in further developing wind and solar energy projects than offering a lifeline to nuclear.

And if the bill managed to generate momentum, anti-nuclear groups will certainly be quick to mobilize, reflecting a national energy debate over Three Mile Island and whether to save struggling plants.

When told of Cunningham's bill, David Weisman, outreach coordinator for the Alliance for Nuclear Responsibility, said flatly, "Diablo Canyon has become a burdensome, costly nuclear white elephant."

Critics say nuclear power by definition cannot be considered renewable because it leaves behind waste in the form of spent nuclear fuel that then has to be stored, while supporters point to next-gen nuclear designs that aim to improve safety and costs. The federal government has not found a site to deposit the waste that has built up over decades from commercial nuclear power plants.

Even though Diablo Canyon is the only nuclear plant left in the Golden State, it accounts for 9 percent of California's power mix. Cunningham says if the plant closes, the state's reliance on natural gas — a fossil fuel — will increase, pointing to what happened when the San Onofre Nuclear Generating Station closed.

In 2011, the final full year operations for San Onofre, nuclear accounted for 18.2 percent of in-state generation and natural gas made up 45.4 percent. The following year, nuclear dropped to 9.3 percent and gas shot up to 61.1 percent of in-state generation.

"If we're going to get serious about being a national leader as California has been on dealing with climate change, I think nuclear is part of the answer," Cunningham said.

But judging from the response to an email from the Union-Tribune, PG&E isn't exactly embracing Cunningham's bill.

"We remain focused on safely and reliably operating Diablo Canyon Power Plant until the end of its current operating licenses and planning for a successful decommissioning," said Suzanne Hosn, a PG&E senior manager at Diablo Canyon. "The Assemblyman's proposal does not change any of PG&E's plans for the plant."

Cunningham concedes AB 2898 is "a Hail Mary pass" but said "it's an important conversation that needs to be had."

The second-term assemblyman introduced a similar measure late last year that sought to have the Legislature bring the question before voters as an amendment to the state constitution. But the legislation, which would require a two-thirds majority vote in the Assembly and the Senate, is still waiting for a committee assignment.

AB 2898, on the other hand, requires a simple majority to move through the Legislature. Cunningham said he hopes the bill will receive a committee assignment by the end of next month.
 

 

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