Transcript of the 05222017 2017 IEPR Joint Agency Workshop Energy Reliability in Southern California
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DOCKETED Docket 17-IEPR-11 Number: Project Title: Southern California Energy Reliability TN #: 218020 Document Title: Transcript of the 05222017 2017 IEPR Joint Agency Workshop Energy Reliability in Southern California Description: N/A Filer: Cody Goldthrite Organization: California Energy Commission Submitter Role: Commission Staff Submission 6/12/2017 9:24:02 AM Date: Docketed Date: 6/12/2017 BEFORE THE CALIFORNIA ENERGY COMMISSION In the Matter of: ) Docket No. 17-IEPR-11 ) 2017 Integrated Energy Policy ) Report Update IEPR) ) 2017 IEPR Joint Agency Workshop Energy Reliability in Southern California SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT 21865 COPLEY DRIVE AUDITORIUM DIAMOND BAR, CALIFORNIA 91765 MONDAY, MAY 22, 2017 1:30 P.M. Reported by: Martha Nelsen California Reporting, LLC (510) 313-0610 2 APPEARANCES Commissioners Present Robert Weisenmiller, Chair CEC Karen Douglas Janea Scott, CEC David Hochschild, CEC Andrew McAllister (Via WebEx) CEC Liane M. Randolph, CEC Tom Doughty, CAISO Reiko Kerr, Los Angeles Department of Water & Power Laki Tisopulos, South Coast Air Quality Management District Legislative Officials Katherine Ellis, Senator Henry Stern’s Office Staff Present Heather Raitt Panelists Present Rob Oglesby, Executive Director, CEC Lana Wang, CEC Matthew Layton, CEC Neil Millar, CAISO Garry Chinn, SCE Sergio Islas, SCE Patrick Charles, SDG&E Catherine Elder, Aspen Environmental Edward Randolph, CPUC California Reporting, LLC (510) 313-0610 3 APPEARANCES (Continued) Panelists Present (Continued) Kenneth Silver, LADWP Update from Southern California Gas Rodger Schwecke, Southern California Gas Independent Third-Party Review Scott Backhaus, Los Alamos National Laboratory Panel Discussion Lana Wong, CEC Tim O’Connor, Environmental Defense Fund Michael Bardee, FERC Jason Ackerman, Best, Best & Krieger Bryan Starr, Irvine Chamber of Commerce Dorothy Rothrock, (Via WebEx) California Manufacturers Association Michael Webster, Southern California Public Power Authority Kevin Wood, SCE Issam Najm, Porter Ranch Neighborhood Council Public Comment Chuck Adamson, SCE Anthony Frontino Jane Fowler California Reporting, LLC (510) 313-0610 4 APPEARANCES (Continued) Public Comment (Continued) Deirdre Bolona Lane Semper Helen Attai Loraine Lundquist Alexandra Nagy Andrea Leon-Grossman, Food & Water Watch Daryl Gale V. John White Armando Flores, VICA Christine McLeod, Cordoba Corporation Patricia Glueck Brandon Matson Cheri Derohanian Brad Jensen, San Gabriel Valley Economic Partnership Marcel Hawiger Amy Yue-Lap-Wan Anthony D-Aquila Anna Jung, San Gabriel Valley Chamber of Commerce Patty Conover, Orange County Business Council Craig Glancy (phonetic) (Via WebEx) California Reporting, LLC (510) 313-0610 5 I N D E X Page Panel 1 13 Legislative Comment 68 Panel 2 72 Update from Southern California Gas 135 Independent Third-Party Review 158 Panel Discussion 180 Public Comment 223 Adjournment 262 Reporter's Certificate 263 Transcriber's Certificate 264 California Reporting, LLC (510) 313-0610 6 1 P R O C E E D I N G S 2 1:30 P.M. 3 MS. RAITT: All right. Good morning, again. 4 Welcome to today's IEPR Joint Agency Workshop on Energy 5 Reliability in Southern California. I'm Heather Raitt, the 6 Program Manager for the IEPR. 7 I'll just go over a few housekeeping items. 8 Please go ahead and turn your cellphone to silent 9 or vibrate mode. 10 The restrooms are located down the hallway across 11 the auditorium entrance. 12 The facility is normally closed on Mondays, so 13 the onsite cafeteria is closed; but there are a number of 14 nearby restaurants and there's a listing of nearby 15 restaurants at the entrance to the auditorium, where we 16 have some other materials for today's workshop. 17 For the speakers, I would like to request that 18 you put your microphone on mute until you want to speak. 19 And, for today's workshop, please note that it is 20 being broadcast through our WebEx conferencing system, so 21 you should be aware that it is being recorded. 22 We'll post an audio recording on the Energy 23 Commission's website in about a week and a written 24 transcript in about a month. 25 We do have a very full agenda, so I would like to California Reporting, LLC (510) 313-0610 7 1 remind our presenters to please stay within your allotted 2 time. 3 There will be an opportunity for public comments 4 at the end of the day, and we will limit those to three 5 minutes. 6 And, for those on WebEx, you will also have an 7 opportunity to comment; just go ahead and raise your hand 8 to let our coordinator that you would like to make 9 comments. 10 And then just a few words about the scope of 11 today's workshop. The workshop will address reliability 12 issues related to the two major disruptions in California's 13 energy infrastructure. 14 The morning, we'll review issues related to the 15 closure of San Onofre Nuclear Generating Station that 16 closed in 2012, which was compounded with the planned phase 17 out of once-through cooling facilities. 18 In the afternoon, we'll move on to review the 19 energy reliability issues for this summer related to 20 operational limitations of the Aliso Canyon Natural Gas 21 Storage Facility. 22 Discussion of the role of gas storage facilities 23 and natural gas infrastructure and the state's long-term 24 greenhouse gas reduction strategies is not a topic of 25 discussion for this workshop. California Reporting, LLC (510) 313-0610 8 1 Those issues and long-term solutions for the 2 reliability related to the Aliso Canyon Storage Facility 3 are being addressed in the proceeding led by the CPUC. 4 So, just to recap, the afternoon will be, in 5 regards to Aliso Canyon, is on summer reliability issues. 6 And one more comment is that written comments are 7 welcome and they're due June 5th. 8 And, with that, I'll turn it over to Chair 9 Weisenmiller for opening remarks. 10 Thanks. 11 CHAIR WEISENMILLER: Great. Thank you. 12 First, I'd like to thank the South Coast for 13 letting us use their facility today, and, particularly, as 14 Heather said, on a day when they're not even open. 15 But, anyway, we find this to be a very convenient 16 location because, as you know, oftentimes when we come to 17 Southern California, we bring down our audiovisual staff to 18 try to get things set up and working. And it's always 19 amazing how something goes wrong. And this one seems to be 20 pretty flawless. 21 So, thank you in terms of the South Coast team, 22 and I certainly again thank them for allowing us to use 23 this facility. 24 As Heather said, in my tenure as Chair of the 25 Energy Commission, we've had two critical pieces of California Reporting, LLC (510) 313-0610 9 1 Southern California infrastructure fail. Both of them were 2 not anticipated. 3 I mean, we'll start out with San Onofre. And, in 4 fact, when it failed, much of the transmission system in 5 Southern California was built around the assumption it was 6 always going to keep operating. And, when that happened, 7 we were directed by the Governor to put together an action 8 plan and to basically deal with the situation we had. 9 And, in the case of San Onofre, we weren't quite 10 sure how long it was going to be out, if it was going to 11 come back, or when it was going to come back. But we 12 worked pretty closely with the California Public Utilities 13 Commission (CPUC) and the California Independent System 14 Operator (Cal ISO) to really put together an action plan, 15 you know. And, through whatever combination, so far, we're 16 doing pretty well. And each year as we move forward, as we 17 put -- you know, the various pieces of the action plan are 18 more and more in place, we're more and more comfortable 19 with where we're heading in that context. 20 Today's morning conversation, then, will be 21 looking at San Onofre. It will be looking at basically the 22 implementation status of the action plan. And, you know, I 23 think we've been doing this every year now for -- I've lost 24 track of the years we've done this. I suspect we probably 25 will have one more event next year on this review; but, California Reporting, LLC (510) 313-0610 10 1 literally, we're getting to a stage where it is pretty 2 mature. 3 In the case of Aliso Canyon, again, when that 4 failed, you know, and that's sort of a historic leak, you 5 know, that there was a long period of time scrambling to 6 deal with the leak. And, at this point, we're sort of in a 7 situation, there are myriad proceedings trying to address 8 different aspects of that. 9 You know, I think there's the CPUC, Division of 10 Oil, Gas and Geothermal Resources (DOGGR) investigation on 11 whether or not to allow reinjection and when. There is the 12 CPUC investigation on long-term future of the facility. 13 This, again, is very focused on reliability this 14 summer, mitigation measures. And we put in place a number 15 of mitigation measures. I think there is about 20. And 16 part of what we want to do this afternoon is see what 17 worked, what didn't work, what we can do better, and also 18 to figure out if there's any other actions we can take.