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Docketed Before the 14-Chp-1 California Energy Commission Tn 3056 Jul 14 2014

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Docketed Before the 14-Chp-1 California Energy Commission Tn 3056 Jul 14 2014 California Energy Commission DOCKETED BEFORE THE 14-CHP-1 CALIFORNIA ENERGY COMMISSION TN 3056 JUL 14 2014 In the Matter of ) Docket No. 14-CHP-1 ) 2014 Combined Heat and Power ) Workshop re: Staff Workshop ) Combined Heat and Power CALIFORNIA ENERGY COMMISSION HEARING ROOM A, 1516 NINTH STREET SACRAMENTO, CALIFORNIA MONDAY, JULY 14, 2014 9:00 A.M. Reported by: Peter Petty CALIFORNIA REPORTING, LLC 1 52 Longwood Drive, San Rafael, California 94901 (415) 457-4417 APPEARANCES Staff Present Jason Harville Rizaldo Aldas Bryan Neff Ivin Rhyne Presenters Dave Mehl, CARB Damon Franz, CPUC Noel Crisostomo, CPUC Ray Williams, PG&E Sonika Choudhary, PG&E Joel Bluestein, ICF International Cliff Rochlin, Southern California Gas Company Dale Fontanez, Southern California Gas Company Panelists Panel 1 Tom Beach, Crossborder Energy Cherif Youssef, Southern California Gas Company Keith Davidson, DE Solutions Dorothy Rothrock, California Manufacturers and Technology Association Rizaldo Aldas, California Energy Commission Sidney Davies, California Independent System Operator Michael Alcantar, Cogeneration Association of California Beth Vaughan, California Cogeneration Council Evelyn Kahl, Energy Producers and Users Coalition Joel Bluestein, ICF International Panel 2 Debbie Chance, Chevron Steve Acevedo, Regatta Solutions David Erickson, California Public Utilities Commission Jim Reilly, Reilly Associates Adam Robinson, Solar Turbines Casey Houweling, Houweling’s Tomatoes CALIFORNIA REPORTING, LLC 2 52 Longwood Drive, San Rafael, California 94901 (415) 457-4417 APPEARANCES (Continued) Panelists Panel 3 Michael Alcantar, Cogeneration Association of California Dave Barker, San Diego Gas & Electric Joel Bluestein, ICF International Sonika Choudhary, Pacific Gas & Electric Keith Davidson, DE Solutions Evelyn Kahl, Energy Producers and Users Coalition Bryan Neff, California Energy Commission Cliff Rochlin, Southern California Gas Company Katie Sloan, Southern California Edison Beth Vaughan, California Cogeneration Council Ray Williams, Pacific Gas & Electric Also Present Public Comment Steve Uhler Jerry Bloom, Winston & Strawn John Larrea, CA League of Food Processors Robert Hoffman, Occidental Energy Ventures Corp. Thomas Marihart, Western Energy Systems Jen Derstine, Capstone Dan Consie, CAMS CALIFORNIA REPORTING, LLC 3 52 Longwood Drive, San Rafael, California 94901 (415) 457-4417 I N D E X Page Introduction and Workshop Goals Jason Harville, California Energy Commission 7 Presentation on CHP and AB 32 Dave Mehl, California Air Resources Board 13 Panel 1: Value and Benefits of Combined Heat and Power 18 (CHP) Moderator: Jason Harville, CEC Tom Beach, Crossborder Energy 20 Cherif Youssef, Southern California Gas Company 31 Keith Davidson, DE Solutions 40 Dorothy Rothrock, California Manufacturers and 46 Technology Association Rizaldo Aldas, California Energy Commission 52 Sidney Davies, California Independent System Operator 62 Michael Alcantar, Cogeneration Association of California 70, 73 Beth Vaughan, California Cogeneration Council 71 Evelyn Kahl, Energy Producers and Users Coalition Joel Bluestein, ICF International Questions from the Public 85 Break 101 Panel 2: Update on Small CHP Market in California (up 101 to 20 MW) Moderator: Keith Davidson, DE Solutions Debbie Chance, Chevron 110 Steve Acevedo, Regatta Solutions 116 David Erickson, California Public Utilities Commission 124 Jim Reilly, Reilly Associates 128 Adam Robinson, Solar Turbines 136 Casey Houweling, Houweling’s Tomatoes 148 Lunch 155 Questions from the Public 156 CALIFORNIA REPORTING, LLC 4 52 Longwood Drive, San Rafael, California 94901 (415) 457-4417 I N D E X (Continued) Page Presentation and Update on California Public Utilities Commission LTPP and QF Settlement Proceedings Damon Franz and Noel Crisostomo, California 167 Public Utilities Commission Questions from the Public 180 Overview of Papers Evaluating CHP Performance Presentation of Evaluating the Greenhouse Gas 183 Performance of Combined Heat and Power Systems: A Summary for Californian Policymakers – Ray Williams, Pacific Gas & Electric and Sonika Choudhary, PG&E Presentation of CHP’s Potential to Reduce GHG 191 Emissions in California: Evaluation of a June 2013 CRRI Conference Paper – Joel Bluestein, ICF International Presentation of CHP and Greening the Grid – Cliff 201 Rochlin, Southern California Gas Company Questions from the Public N/A Overview of CHP Performance Standards Presentation on 209 the Reference Electrical Generation Unit and Boiler Efficiency used to calculate CHP Program Performance Standards – Jason Harville, California Energy Commission Presentation on Boiler Efficiencies – Dale Fontanez, 211 Southern California Gas Company Presentation of a Proposed Methodology for Estimating 218 Fuel Displacement for California Electricity Reductions – Bryan Neff, California Energy Commission CALIFORNIA REPORTING, LLC 5 52 Longwood Drive, San Rafael, California 94901 (415) 457-4417 I N D E X (Continued) Page Panel 3: Calculating GHG Emissions Reductions from CHP 233 Moderator: Ivin Rhyne, California Energy Commission Michael Alcantar, Cogeneration Association of California Dave Barker, San Diego Gas & Electric Joel Bluestein, ICF International Sonika Choudhary, Pacific Gas & Electric Keith Davidson, DE Solutions Evelyn Kahl, Energy Producers and Users Coalition Bryan Neff, California Energy Commission Cliff Rochlin, Southern California Gas Company Katie Sloan, Southern California Edison Beth Vaughan, California Cogeneration Council Ray Williams, Pacific Gas & Electric Questions and Summary Comments from the Public N/A Next Steps - Jason Harville 272 Adjournment 274 Reporter's Certificate 275 Transcriber's Certificate 276 CALIFORNIA REPORTING, LLC 6 52 Longwood Drive, San Rafael, California 94901 (415) 457-4417 1 P R O C E E D I N G S 2 JULY 14, 2014 9:00 a.m. 3 MR. HARVILLE: I’m Jason Harville. I 4 work in the Supply Analysis Division. I’m kind 5 of our point technical person on CHP, and I’ll 6 be, I guess, your moderator for the workshop 7 today. I’d like to thank you all for coming out 8 this morning, especially so early on a Monday, 9 earlyish for me, at least. 10 Before we get started, I just have to 11 give you a couple of housekeeping items here. If 12 you haven’t been here before, our restrooms are 13 just across the hallway here if you just leave 14 this room and veer left a little bit, they’re 15 straight across the way. 16 We have a snack bar on the second floor. 17 If you go up the big staircase here, you’ll be 18 pointing straight at it when you come off on the 19 landing there. 20 In the event of an emergency, we have 21 emergency plans posted, but there’s an exit right 22 here to your left as you come out, and then the 23 main exit to your right. If there is an 24 emergency, we reconvene at this part, it’s just 25 kitty corner, directly across the way here, in CALIFORNIA REPORTING, LLC 7 52 Longwood Drive, San Rafael, California 94901 (415) 457-4417 1 the event of a fire or something like that, and 2 then we can take a head count and make sure 3 everyone is safe. And we just ask that in the 4 event of an emergency you proceed calmly and 5 quickly, and you can go ahead and follow us and 6 we’ll show you the way. 7 All right, just a couple of other items. 8 I’m sure you’ve all seen the agenda. We have a 9 pretty full day today, so I’m going to 10 unfortunately have to be pretty strict on some of 11 the time restrictions. I know the panelists and 12 everyone I’ve already talked to, but just please 13 do your best to stay within your time 14 restrictions. I have a handy timer here and the 15 state-of-the-art presenter notification system 16 right here; black is a five-minute warning, red 17 is a one-minute warning, you’re a little far away 18 to see the text, but I’ll just kind of give you a 19 friendly flash if you’re giving a presentation or 20 you’re speaking or something, just to give you a 21 heads up if you’re running low on time there. 22 Okay, I’d like to thank everyone to start 23 off with who helped put this workshop together. 24 We had a lot of help from stakeholders from our 25 sister agencies, and everyone who helped put this CALIFORNIA REPORTING, LLC 8 52 Longwood Drive, San Rafael, California 94901 (415) 457-4417 1 agenda together, we appreciate their help. This 2 includes the U.S. EPA, who unfortunately wasn’t 3 able to participate directly this morning, but 4 they did give me a brief statement they’d like me 5 to read. And so I’ll go ahead and go through 6 that. 7 They say: “The U.S. Environmental 8 Protection Agency commends the California Energy 9 Commission’s efforts to bring together key CHP 10 stakeholders for today’s discussion to tackle 11 such important issues as CHP’s environmental 12 benefits, challenges associated with measuring 13 these benefits, and obstacles to further CHP 14 development. The EPA CHP partnership is pleased 15 to be able to contribute to the discussion in the 16 form of supporting the analysis conducted by ICF 17 International that will be presented this 18 afternoon. EPA strongly supports combined heat 19 and power as a highly efficient low emitting 20 technology through the work of the CHP 21 partnership, its office in San Francisco and 22 other regional offices across the country, and 23 other programs such as wastewater management. 24 Where possible, EPA works to ensure that new and 25 updated Clean Air Act Regulation takes CHP’s two CALIFORNIA REPORTING, LLC 9 52 Longwood Drive, San Rafael, California 94901 (415) 457-4417 1 productive outputs into account; for example, in 2 the form of output-based standards.” 3 So this support from the EPA and the EPA 4 CHP Partnership is part of much broader federal 5 support, including the President’s 2012 Executive 6 Order mandating 40 gigawatts of additional CHP 7 nationwide by the end of 2020.
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