Is This A Bright Idea?

News and Views on Energy Issues In California
"Protecting natural resources is not only the right thing to do, it's the law. Offshore oil and natural gas projects must undergo stringent regulatory and environmental review. Local, state and federal environmental agencies are responsible for reviewing and approving these projects. The companies that operate them are required to comply with the toughest environmental regulations in the world."
"The California ISO proposal calls for the initial costs of multi-user resource trunkline transmission projects to be paid by the transmission owners and recouped through the [Transmission Access Charges (TAC's)]. As generators connect to the new trunkline they will pay a pro-rated share of the costs based
on their generating capacity. The generator payments will reduce the cost recovered through the TAC."
The one chart in the report projecting future renewable power use shows the state falling a few thousand megawatts short of the 2010, and the chart is probably over-optimistic because it assumes every contract utilities have signed for power so far will happen. Some will likely fall through.
The chart is barely referenced anywhere in the text of the rosy PUC report, which doesn't provide any writing on whether the 20 percent mandate will be met.
"California has achieved only minimal increases in renewable generation,'' the energy commission writes before outlining five major problems that have led to slow progress.
"This project would have put over 140,000 people who live and work within 3 miles of that LNG terminal at risk," said Harvey Morris, an attorney for the Public Utilities Commission. "The evidence was overwhelming there's all kinds of things that could go wrong if there was a terror attack or earthquake. There's a need for LNG, but there are much safer alternatives."
The solar roof is estimated to have a peak power output of 2 megawatts and will provide nearly a fifth of the depot's power supply. Mason estimated the installation will save about 1,200 tons of carbon dioxide emissions each year.
The energy-saving device was developed by Solar Integrated Technologies, Inc., of Los Angeles, a designer, manufacturer and installer of power-generating, building-integrated roofing systems for commercial buildings.
"But now arises the new 'tribe,' all Malibu residents and property owners. Members include the likes of Barbra Streisand, Jamie Lee Curtis, Tom Hanks, Daryl Hannah, Ed Harris, Woody Harrelson, Olivia Newton John, Jane Seymour, Craig T. Nelson, Charlize Theron and Dick Van Dyke, to name only a few.
Malibu may be as sacred to them as Point Conception is to the Chumash, and Billiton's plant might mar the views they've paid millions of dollars to enjoy. So they've signed letters of protest, and even turned out for anti-LNG rallies."
"If consumers are lucky, this gaggle of Hollywood celebrities will have even more juice with current Gov. Arnold Schwarzenegger, their old acting buddy, than the big companies seeking to bring in LNG."
Latest data show California crude stocks stood at 11.64 million barrels, up fractionally from the Dec. 29 level, which was the lowest since Oct 8, 2004. But because crude oil input to refineries is high, the relative level of stocks is lower.
California refineries processed an average of 1.88 million barrels a day of crude in the week ended Jan. 5, up 58,000 barrels a day from a week earlier and 99,000 barrels a day more than a year ago, when crude stocks were 2.7 million barrels higher.
Stocks levels are even lower than they were after a corrosion problem at a pipeline from BP’s Prudhoe Bay oil field cut Alaska North Slope output by as much 400,000 barrels a day in August 2006, and California refiners scrambled to line up alternative supplies. Crude stocks then remained above 14 million barrels and were sufficient to cover at least eight days of demand.
Natural gas prices are three times higher than during the 1990s and consumption of the fuel will outpace the 1.6 percent annual gain in energy demand for the next 25 years, according to the International Energy Agency. Gas is also becoming more popular because it emits 29 percent less carbon dioxide than oil and 45 percent less than coal burned in power stations.
``Costs are going up and they're going up far faster than anybody expected,'' said Andy Flower, a U.K.-based consultant to the LNG industry and a former BP Plc executive. He forecasts that the world LNG shortage will last until at least 2011.
None of the world's biggest energy companies approved developments last year to increase production of liquefied natural gas, which helps heat homes and run power plants from Tokyo to Boston. The main reason is the cost to build LNG plants has tripled in six years, according to Bechtel Group Inc., the biggest U.S. contractor.
Analysts have acknowledged that the supply of natural gas has peaked in the United States and supplies from Canada are expected to be shrinking in the coming year. With the bulk of natural gas reserves in Russia, Iran, Saudi Arabia and Qatar, the two High Desert power plants would become increasingly dependent on foreign sources of the volatile substance, which is expensive and delicate to ship. LNG terminals to receive such shipments have not yet been built or even sited, promising to delay any relief from the crunch for a decade or more.
Meanwhile, demand for energy will continue to grow. According to the California Independent Service Operator, which monitors the state power grid, demand could outstrip supply within the next two years, possibly leading to a repeat of the rolling blackouts which troubled the state in 2001.
"Its other operations are unregulated, including energy trading, liquefied natural gas (LNG) terminals in North America, and gas pipelines and storage facilities in the U.S. and Mexico. Sempra may form a master limited partnership for these, he says. Paul Justice of Morningstar (MORN ) says: "We're particularly excited" by its entry into LNG and partnership with Kinder Morgan (KMI ) to build a pipeline from the Rockies to the Midwest. Both ventures should provide stable cash flow for years, he says."
PG&E began receiving renewable power from the Buena Vista Energy LLC Wind Project located in the Altamont pass area of Contra Costa County. PG&E's second newly constructed renewable project to come on line under California's Renewable RPS Program, Buena Vista will provide over 38 MW of wind power to California's electricity customers.
The utility currently supplies more than 13% of its energy from renewable resources that qualify under California's RPS Program. In addition, more than 50% of the electricity that PG&E delivers to its customers comes from generating resources that emit no carbon dioxide. Since starting its RPS Program, PG&E has entered into contracts for more than 1,100 MW of renewable energy consisting of wind, solar, geothermal, biomass and hydro resources.
A number of studies, including one just completed at UC Berkeley, raise questions about whether corn-based ethanol, the form now most widely used in the United States, actually reduces carbon, the largest greenhouse gas contributor believed to be causing global warming.
"I don't think much of ethanol for energy or anything else," said Tad W. Patzek, professor of geoengineering at UC Berkeley, who said that several studies that he has co-written, including one in the peer-reviewed Natural Resources Research Journal next month, found that the coal, petroleum and other fossil fuels used by tractors to grow corn, and the heating equipment used to distill it into fuel, zeroed out any benefits from burning ethanol rather than petroleum.
"In a year when health care promises to be a central issue for the legislature and the governor, the delivery of electricity generated by renewable resources will reduce pollution throughout the state because of the decreased need to burn fossil fuels..."
Chevron Corp. is planning improvements to its Richmond facility that could expand the plant's gasoline production by about 7 percent, Chief Executive Officer David O'Reilly said in testimony before Congress. The company is still seeking government permits for the work and hasn't disclosed the price tag.
San Ramon's Chevron is also upgrading its refinery in El Segundo, in Los Angeles County. That project and the planned improvements in Richmond will increase the company's gasoline production in California by 840,000 gallons per day, a spokeswoman said.
ConocoPhillips' Rodeo refinery wants to expand production of gasoline by 791,000 gallons per day, a 35 percent increase, and its production of diesel by 290,000 gallons per day, up 21.5 percent. The company, which like Chevron isn't revealing the project's price, has applied for permits and hopes to have them by March.
Tesoro Corp.'s Golden Eagle refinery, near Martinez, will spend an estimated $475 million to $525 million installing equipment that will reduce air pollution and improve the plant's ability to process relatively cheap, heavy grades of crude oil. This project, which has just started construction, won't increase the amount of gasoline produced.
Valero Energy Corp.'s Benicia refinery also is upgrading equipment to handle heavier forms of crude. The project, under way since 2004, will cost an estimated $200 million to $400 million.
"...[T]he 9,900-cow Hilarides Dairy outside Tulare in Southern California has installed a state-subsidized methane digester system that could provide all its electricity from cow manure. In November, the dairy saved $15,547 in electricity costs. But as was the case with other dairies reviewed by the report, the Tulare farm has been reluctant to fully ramp up cower power. Why? For one thing, there's no system in place that lets dairies sell excess power they generate to Pacific Gas & Electric (PCG), Southern California Edison (EIX) and other California utilities. That discourages dairy owners from spending the money to operate methane digesters. Second, the state's "net metering" law - which credits dairies for excess electricity they generate - is so convoluted and stacked in the utilities favor as to make investments in cow power a risky bet."
The authority will cover 307,000 home and business customers. The Valley group consists of the city of Fresno, Kings County, Clovis, Hanford, Lemoore, Corcoran, Dinuba, Reedley, Sanger, Selma, Kerman, Parlier and Kingsburg. Tulare County supervisors also recently approved joining and may be the authority's 14th member. Tulare County could add more than 40,000 customers.