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HomeMy WebLinkAboutMinutes - June 7, 2022 SSLODI CITY COUNCIL SHIRTSLEEVE SESSION CARNEGIE FORUM, 305 WEST PINE STREET TUESDAY, JUNE 7, 2022 An Informal Informational Meeting ("Shirtsleeve" Session) of the Lodi City Council was held Tuesday, June 7, 2022, commencing at 7:11 a.m. Present: Council Member Khan, Council Member Kuehne, and Mayor Pro Tempore Hothi Absent: Council Member Nakanishi, and Mayor Chandler Also Present: City Manager Schwabauer, City Attorney Magdich, and City Clerk Nashed Northern California Power Agency Consultant Randy Howard provided a PowerPoint presentation regarding the Northern California Pacific H2ub and summer 2022 readiness/market conditions. Specific topics of discussion included Northern California Pacific H2ub: key benefits of Northern California concept, key locational attributes supporting project viability, project concept, facility overview, PG&E hydrogen pilot, PG&E integrated research and development program, and research roadmap focus areas. Mr. Howard provided a PowerPoint presentation regarding summer readiness and market conditions. Specific topics of discussion included issues facing Lodi in 2022; California energy policy; Renewables Portfolio Standard (RPS) requirements; electrification; market pressures - drought, electric forwards, gas forwards, transmission, inflation, shrinking supply, and IOUs; public safety power shutoffs; and rolling blackouts and flex alerts. Pat Patrick provided public comment regarding the item. Lisa Craig provided public comment regarding the item. None. No action was taken by the City Council. The meeting was adjourned at 8:06 a.m. A.Call to Order / Roll Call B.Topics B-1 Hydrogen Pilot Project and Energy Market Conditions (EU) C.Comments by Public on Non-Agenda Items THE TIME ALLOWED PER NON-AGENDA ITEM FOR COMMENTS MADE BY THE PUBLIC IS LIMITED TO FIVE MINUTES. D.Adjournment ATTEST: Olivia Nashed City Clerk 1 Northern California Pacific H2ub 1 Key Benefits of Northern California Concept •Existing infrastructure will accelerate project development (i.e., already permitted) and reduce overall costs •Diversity of off-takers in one of the world’s largest economies •Leveraging abundant renewable energy resources that might be otherwise curtailed •Research and development components will help inform how to leverage existing natural gas system in future clean hydrogen economy •CA leading in net-zero goals and serving Disadvantaged Communities 2 Key Locational Attributes Supporting Project Viability •Project is shovel ready •Existing gas and electric infrastructure installed •CAISO and federal transmission lines are already on-site •LEC Hydrogen Capable Turbine Installed •Availability of on-site reclaimed water source to support electrolysis process •Central to major transit corridor •Low density (rural) population •Strong environmental support •Existing union workforce with project expertise and highly-trained labor pool 3 Key Locational Attributes Supporting Project Viability 4 Project Concept 5 Facility Overview Lodi Energy Center •Advanced combined cycle combustion turbine •~300MW •Recently upgraded to accommodate 45% blend •On-site recycled water supply •On-site HV transmission interconnection •Interconnection with PG&E •Delivery for transportation 6 PG&E Hydrogen Pilot 7 Laboratory and Workshop Facility •Destructive and NDE Materials Testing •Workshop for Sample Preparation •Control Center and ‘Digital Twin’ for Simulations Full Scale Offline Testing •Equipment compatibility and leak testing prior to long-term on-line testing •Pipe-in-Pipe Destructive Testing Full Scale Online Testing •Large Flow Loop in Isolated Transmission System –30% H2 Blend •Long-Term Testing -Various Pipeline Components and Materials •Maintenance and Operator Training on Live Equipment Training and Education Center •Classrooms •Training Areas •Public Education Center PG&E Integrated RD&D Program 8 Integrated RD&D Program Research Roadmap Focus Areas Goal: Test the ability of safely converting existing transmission assets to a blended hydrogen-natural gas system Operations and Maintenance Transmission Equipment Focus to Inform Standards Development & Inspection Frequency Integrity Pipe & Welds, Fatigue & Fracture, ILI & NDE, Coatings and Cathodic Protection Gas Quality and Measurement Accuracy and Performance, Long-Term Equipment Stability, Contaminant Detection Fluid Hydraulics Mixing, Thermodynamics, Noise/Vibration/Stresses Safety Leak Dispersion, Flammability and Ignition, Venting & Plume Dispersion 9 Questions and Discussion 10 Summer Readiness 2022 & Market Conditions Issues Facing Lodi in 2022 PSPS/Rolling Blackouts Wildfire/Drought Electrification Decarbonization Supply Chain/Inflation Costs Geopolitical Issues Retirement of Gen California Energy Policy Among the most aggressive in the world •3700MW of natural gas plants scheduled for retirement in 2023 •2280MW of nuclear generation scheduled for retirement in 2025 California projects a 1700MW shortage of energy this summer! •≈ 12000MW of generation planned –not procured or built RPS Standards Established in 2002, California’s Renewables Portfolio Standard (RPS) requires electricity providers to ensure that renewable energy constitutes a specified minimum portion of their electric load 2017 20% 2030 60% 2045 100% 2020 33% 36% Eligible Renewable >55% Carbon Free Lodi is committed to meet the State’s RPS Requirements State Requirements Electrification Adding load to an already taxed grid California has 10% of the nations vehicles on the road California boasts 40% of the nations zero-emission vehicles Gov. Newsom is advancing $10 billion for zero-emission vehicles Market Pressures –Drought Market Pressures –Electric Forwards Average FY23 power prices are up 88% August 2022 HL trading at $160/MWh Market Pressures –Gas Forwards Budget Pressures –Transmission Market Pressures –Inflation 8.3%, Energy 32% (BLS) Market Pressures –Shrinking Supply NCPA’s 10y forecast assumes a normal/average operating year; however NCPA adjusted forecasted Hydro generation down significantly Antelope 1B COD postponed due to Federal action on solar panels Western’s May 2022 BR forecast was 21% less than its April 2022 forecast for May 2022 and 8% less for June 2022 Lodi Energy Center (LEC) on outage through June 19th and derated for the balance of 2022 (at least) to ~225 MW Supply chain issues canceling or postponing new projects Market Pressures –IOUs Public Safety Power Shutoffs •Public Safety Power Shutoff’s (PSPS) •PG&E De-energizing to prevent wildfires •During times of high wind events/storms •Effects transmission and distribution •Transmission lines shared by all utilities •What has been done? •PG&E –Extensive work •PG&E –Re -rated lines for wind loading •Lodi has wildfire mitigation program What are Rolling Blackouts? –Flex Alerts •CalISO –California Independent System Operator •Manages flow of electricity on CA’s transmission lines / dispatch generation •Duck Curve •4pm-10pm –High load, solar declining •Need “spinning reserves” •City works hard to avoid impacting customers •City load reduced first •Plan, plan, plan •You can help too… Use bulk of energy between 7am–3pm, conserving between 4pm-10pm Rolling Blackouts used to balance the grid when load exceeds generation Questions?