Climate Change:The future is now for the UtilitiesDeanna Haines, Director of Gas EngineeringSouthern California Gas Company and San Diego Gas & Electric

September 9, 2016 California Contract Cities Association 36th Annual Fall Educational Summit 1

• WHO WE ARE• POLICY FRAMEWORK• RESILIENCY DEFINED-LESSONS

FROM THE PAST• CLIMATE ADAPTATION –

INCREASING RESILIENCY• HOW YOU CAN HELP

PREVIEW

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Both Utilities in service for over 135 years SoCalGas• Largest natural gas distribution

utility in the US

• Serve 12 counties (over 500 communities) and more than 21 million people

• Over 5.8 million gas metersSDG&E• Provides electricity and natural gas

to 3.4 million people from Orange County to the Mexican border.

WHO WE ARE…

SoCalGas & SDG&E Territory

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POLICY FRAMEWORK

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PEOPLE AND POLICIES EXECUTIVE ORDERS

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• “…requires cities and counties to include climate adaptation and resiliency strategies in the safety elements of their general plans”

• Must include a set of goals, policies, and objectives for their communities based on current data and information pertaining to climate change adaptation and resiliency.

Source: SB 379 Fact Sheet. Presidential Policy Directive -- Critical Infrastructure Security and Resilience

SB 379

RESILIENCY DEFINED & LESSONS FROM THE PAST

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“…ability to prepare for and adapt to changing conditions and withstand and recover rapidly from …deliberate attacks, accidents, or naturally occurring threats or incidents...”

Source: Press Release (dated Feb. 12, 2013) Presidential Policy Directive -- Critical Infrastructure Security and Resilience

RESILIENCE DEFINED

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Potential Impacts

• Threat of impacts to energy infrastructure is driving state and regional agencies to develop plans and policies to reduce system vulnerability.

• Ensure resiliency from impacts due to:– Sea level rise– Increasing Temperatures– Wildfires– Floods/Storms (including “wind” storms)– Changing Precipitation (e.g. Droughts)

1. California Natural Resources Agency. “Safeguarding California: Reducing Climate Risk, an Update to the 2009 California Climate Adaptation Strategy,” July 2014. http://resources.ca.gov/docs/climate/Final_Safeguarding_CA_Plan_July_31_2014.pdf.

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Climate Adaptation-DroughtSan Joaquin Valley Subsidence

• Subsidence in San Joaquin Valley classified as “the greatest human alteration of the Earth’s surface”

• Causes of subsidence in the SJV primarily from groundwater and oil extraction, and mining

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Climate Adaptation-DroughtsImpacts to Pipelines

• Vertical Subsidence– not the primary concern

with pipeline structural integrity (current issue in SJV)

• Horizontal subsidence– at edge of subsidence

zone creates compression and can cause buckling

• Local subsidence can create sinkholes, which cause bending stress

• Cathodic Protection effectiveness diminished

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El Niño rain intense events can create debris flows, flash flooding or landslides, which can cause:• Wash outs of access roads • Pipeline exposures that can lead

to corrosion• Increase dewatering activities

(e.g. regulator vaults)• Delays in routine maintenance,

repairs and construction projects• Workforce diversion and

potentially limited mutual assistance availability.

PRIMARY CONCERNS FOR GAS INFRASTRUCTURE

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• Electricity Supply-severe impact– Biggest fragilities were Transmission &

Distribution Components• Winds downed power lines, flooding

affected dozens of substations– Power outages created a domino effect

across other sectors– Every system dependent on electricity

alone was vulnerable• Fueling, Information and

Communication, Transportation • Gas System –no major impact

– Flooding /power outages concern at compressor stations along some interstate pipelines , but natural gas flows were not interrupted

– One company vented gas from distribution lines causing water intrusion in flooded areas

LESSONS FROM THE PASTHURRICANE SANDY

13Images Source: CNN

• Employees of SoCalGas and SDG&E were among those who lost homes or were forced to flee when the flames got too close.

• Hundreds of distribution lines and over 17 major transmission lines were damaged. In just a few weeks a one year supply had to be replaced ~ 3000 transmission and distribution wood pole structures, 400 miles of electrical lines

• Under a mutual-aid agreement, crews from Pacific Gas & Electric, the Salt River Project, Tucson Electric, the Imperial Irrigation District and Arizona Public Service joined in the battle against the fires.

LESSONS FROM THE PASTFIRESTORMS-SDGE TERRITORY

14Images Source: Cedar Fire east county magazine

CLIMATE ADAPTATION - INCREASING RESILIENCY

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Climate Adaptation – Increasing Resiliency

• Link between climate change and key enterprise risks. Drought increases wildfire risk; sea level rise increases infrastructure

integrity risk; extreme temperatures increase electricity supply risk. Relying on electricity alone increases energy system vulnerability.

• Increasing Resiliency: Just like buying stock, diversifying energy assets helps protect the

overall system. Need variety of energy options to increase energy system resiliency. An all electric system places great risk to critical infrastructure in the

event of climate change impacts E.g. Need a way to power hospitals and fire stations during power outages.

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• Natural gas infrastructure is inherently resilient.

• Majority of natural gas pipelines are underground with little exposure to wildfires or weather driven climate change events.

• System can operate during electricity outages

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Natural Gas Infrastructure: Underground and Resilient

• New near-zero emissions engines for heavy-duty trucks are now available that reduce NOx emissions by 90% opportunity for natural gas buses and trucks to achieve substantial environmental benefits.

• Can achieve emission levels below electric buses and trucks

• Rapid deployment of near-zero engine technologies is needed to help State achieve emission reduction goals and improve air quality.

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SoCalGas working with agencies and engine manufacturers to deliver truck engine 90% lower emissions for 2018!

Near Zero Emission Natural Gas Engine<0.02 g NOx

Ensuring Resiliency in Fleets/Transportation/Fueling

• Distributed generation technologies can isolate consumers from the electricity grid protection from power outages.

• “Islandable”, black start energy sources that provide power separate from the vulnerabilities of the grid.

• Broader, diverse mix of energy sources increases energy system security and resiliency

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Protecting Customers from Outages:Distributed Generation

RENEWABLE Natural Gas Can Eliminate Methane Emissions from the Leading Sources

Convert waste from dairies, farms and landfills

into biogasusing anaerobic digestion

extract the methane

put in the pipeline for future use

SOURCE: Bioenergy Association of California and CARB May 2014 Look-Up Table 30

GENERATE 2.5 quadrillion Btu annually – enough to meet the natural gas needs

of 50% of all US homes

WHAT’S POSSIBLE

REPLACE75% of all diesel used by CA vehicles

SUPPLY biogas as a transportation fuel from food and green waste with a

NEGATIVEcarbon intensity

RENEWABLEENERGY

Natural gas system also gives California a practical way to store

MARCH 2015 | SOUTHERN CALIFORNIA GAS COMPANY 21

addresses the storage challengePOWER-TO-GAS

excessrenewable

energygoes throughelectrolysis

which splits the molecule

hydrogen & carbon combine through

methanization

carbon captured from factories and plants

methane can be stored in the pipeline for future use

How YOU can help

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• Include utilities when identifying community assets/vulnerabilities and when developing high level policies, plans and implementation strategies.

• Incorporate consideration of natural gas technologies into future planning processes

• Expedited permit process to support “resiliency and hardening” of infrastructure

• Learn from previous disasters, support diversity of energy sources and avoid putting all “eggs into one basket”