FY 2017-18 Natural Gas Research Initiatives · 24/01/2017 · FY 2017-18 Natural Gas ... For the Natural Gas FY 2016-17 budget, the Energy ... • Continuing to explore measurement

C A L I F O R N I A E N E R G Y C O M M I S S I O N

FY 2017-18 Natural Gas Research Initiatives

Presented at the Stakeholders Workshop

California Energy Commission January 24, 2017

1:30 pm – 5:00 pm

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Agenda

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Time Topic 1:30 Introduction and Purpose – Laurie ten Hope

1:45 Staff Presentations on Proposed Natural Gas Research Initiatives Energy Efficiency – Bradley Meister

Renewable Energy and Advanced Generation – Kevin Uy

Energy Infrastructure – Avtar Bining & Yu Hou

Natural Gas-Related Transportation – Peter Chen

Consider Increased Funding – Mike Gravely

3:45 Public Comments

4:30 Closing/Next Steps – Laurie ten Hope


Introduction For the Natural Gas FY 2016-17 budget, the Energy

Commission R&D Program included a public vetting process with Stakeholders that included a public workshop.

For the upcoming Natural Gas FY 2017-18 budget, the Energy Commission R&D Program is holding this workshop seeking stakeholder comments on natural gas research initiatives.

Specific “Questions for Stakeholders” will be posed during the workshop.

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General Approach Identify research gaps for research initiatives through:

• Discussion with utilities, governmental agencies, other Energy Commission programs, and stakeholders

• Road maps • Public meetings with industry and trade associations • Research ideas submitted by the public

Research projects selected through competitive solicitations Internal and external stakeholders (e.g., other program areas,

state and federal agencies) Energy research priorities are guided by policy directives Need clearly identified benefits

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Commitment to Diversity The Energy Commission adopted a resolution strengthening its commitment to diversity in our funding programs. We continue to encourage disadvantaged and underrepresented businesses and communities to engage in and benefit from our many programs. To meet this commitment, Energy Commission staff conducts outreach efforts and activities to: Engage with disadvantaged and underrepresented groups throughout the state. Notify potential new applicants about the Energy Commission's funding

opportunities. Assist applicants in understanding how to apply for funding from the Energy

Commission's programs. Survey participants to measure progress in diversity outreach efforts.

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We Want to Hear From You! 1 Minute Survey

– The information supplied will be used for public reporting purposes to display anonymous overall attendance of diverse groups.

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Does your company identify as an underrepresented group?

Where is your company located?

How did you hear about the workshop?

Online survey for WebEx Participants: • https://www.surveymonkey.co

m/r/CKQML8K


Connect With Us

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http://calenergycommission.blogspot.com/2016/01/instructional-videos-help-public.html?platform=hootsuite

https://www.facebook.com/CAEnergy

https://twitter.com/CalEnergy




The Energy Commission has created a user-driven LinkedIn group page to help

potential applicants connect, collaborate and partner on proposals for funding

opportunities.

Participants can join the “California Energy Commission Networking Hub” by:

• Searching for the “California Energy Commission Networking Hub” group; or

• Entering this link into your browser:(bit.ly/CalEnergyNetwork)

Once there, find various subgroups that relate to specific funding opportunities by

checking the “About this group” section of the Networking Hub.

Find Partners via LinkedIn

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Budget and Priorities Transparent budget process

Priorities • Safety • Climate Preparedness • Loading Order • Ratepayer benefits and California focus

Support State Energy Policies and Governor’s priorities Issues of Elevated Importance in 2016, continue in 2017

• Governor’s Executive Orders B-29-15 and B-30-15 on climate and drought

• Greenhouse Gas Emission Reduction (AB 32 and SB 32) • CPUC Natural Gas Safety Policy Statement (July 2014) • Natural Gas: Leakage Abatement (SB 1371) • Governor’s Aliso Canyon Gas Leak Proclamation

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Research Areas and Proposed Natural Gas 2017-18 Budget

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Research Areas

Proposed Budget

Energy Efficiency

$6,000,000

Renewable Energy and Advanced Generation

$4,000,000

Energy Infrastructure

$8,600,000

Natural Gas Infrastructure Safety and Integrity

$5,000,000

Energy-Related Environmental Research

$3,600,000

Natural Gas-Related Transportation

$3,000,000

Program Administration

$2,400,000

TOTAL

$24,000,000


Workshop Format Each Natural Gas R&D team will discuss their

presentation

Questions related to the research initiatives will be posed to the Stakeholders at the end of each research area

There will be an additional public comment period at the conclusion of the presentations

To ensure each team has time to complete their presentations, some questions may need to be deferred to the public comment period

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Role of Stakeholders Advice and comments on the initiatives

Alerting Energy Commission staff to possible duplication of efforts

Advising Energy Commission staff on opportunities to gain synergies in research efforts, including partnering on funding to increase scale of research

Facilitating the effective transfer and use of research results

Identify missing initiatives

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End-Use Energy Efficiency

Presenter: Bradley Meister 13


Goals

Advance energy efficient technologies, design tools, and operations in support of decarbonization and potential for use in disadvantaged communities

Develop and demonstrate affordable energy-efficiency technologies, processes and strategies that are scalable to multiple facilities, have potential for commercialization within 5 years, and/or potential to inform codes and standards

Maintain or increase productivity while reducing energy consumption and ensuring ambient or indoor emissions standards are met

Improve information resources for sharing research results

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Conduct RD&D to reduce natural gas use in buildings, communities and industries while reducing greenhouse gas emissions.


Policy Drivers Integrated Energy Policy Reports/Energy Action Plan

Improve energy efficiency through increased R&D to reduce energy cost and GHG emissions

Research in energy efficient technologies, techniques, operations/commissioning Research to support new/updated building and appliance efficiency standards Support pilot programs/demonstrations of ZNE buildings Collaborate with utilities to improve energy efficiency programs

California Existing Buildings Energy Efficiency Action Plan (2016) A 10 year plan to transform California’s existing buildings into high-performing and

energy efficient buildings

California Public Utilities Commission- Energy Efficiency Strategic Plan (2008/2011) New residential and commercial construction will be ZNE by 2020, and 2030,

respectively HVAC industry - energy performance is optimal for California’s climate

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Policy Drivers SB 1250 (Perata and Levine, Chapter 512, Statutes of 2006) Undertake public RD&D projects that are not adequately provided for by competitive and

regulated energy markets and that advance energy science or technologies of value to California citizens

AB 32 (Núñez, Chapter 488, Statutes of 2006) Reduce GHG emissions in CA to 1990 levels by 2020 – Scoping Plan emphasizes energy efficiency

to slow the rate of GHG emissions AB 758 (Skinner, Chapter 470, Statutes of 2009) Achieve greater energy savings in the state’s existing buildings

SB 350 (De Léon, Chapter 547, Statutes of 2015) Require a cumulative doubling of statewide energy efficiency savings in electricity and natural

gas end uses by January 1, 2030 Reduce GHG emissions to 40% below 1990 levels by 2030 AB 802 (Williams, Chapter 590, Statutes of 2015) Undertake modified benchmarking and disclosure strategies Authorize financial incentives based on all estimated energy savings and reductions in existing

buildings Public Utilities Code Section 25402.8 Consider impacts to indoor air pollution when assessing new building standards relating to

conservation of energy

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Current Portfolio Highlights and Major Initiatives

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Name of Initiative Description Status Research for Commercial Facilities

Improve efficiency of food service appliances and hot water distributions systems

• Testing advanced efficient food service cooking, ventilation and hot water technologies. ≈ 22% natural gas savings

• Continuing demonstration to address natural gas efficiency for water heating in restaurants. ≈ 35% natural gas savings

• New hot water system design guide being developed.

Research for Residential and Commercial Facilities

Improve hot water generation and distribution systems

• Continuing research on hot water distribution to reduce cross over and improve balancing in multifamily/low income buildings. ≈ 14% natural gas savings

• Final report in 2017


Advanced energy efficient heating systems and building envelopes

• Continuing research to evaluate the use of phase change material (PCM) that can be embedded in cement walls

• ≈ 9% and 18% total energy reduction in San Francisco • ≈ 17% to 32% total energy reduction in Los Angeles • Energy reduction range represents a PCM volume from 10%

to 30%. More PCM represents more savings. • Continuing demonstration of a novel low NOx boilers for a

commercial steam distribution system • Use the same or less natural gas than current technology but

with NOx rates of about 9 ppm



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Name of Initiative Description Status


Cross-Cutting • Continuing lab and field research into improving roof and wall assemblies in manufactured homes

• ≈ 1500 kWh/yr reduction in cooling • ≈ 140 therms/yr reduction in heating

• Continuing demonstration of integrated energy efficiency retrofits for low income multifamily housing. ≈ 50% natural gas reduction

• Continuing research on solar thermal heat pumps for space conditioning and water heating in commercial buildings. ≈ 50% natural gas reduction

Reduce Environmental Footprint

Improve indoor environmental quality

• Continuing research to determine how homes built to the 2008 Title 24 standards are performing to the ventilation requirements

• Finalized measurement design protocols and conducting field study

• Continuing to explore measurement and control of ventilation rates in commercial buildings.

• Draft final report being reviewed

Research for Industrial/Agriculture

• Improve energy efficiency of industrial processes, food processing, waste heat recovery, solar thermal

• Develop industrial roadmap

• Continuing projects: infrared walnut drying ≈ 35-50% energy savings; low NOx ribbon burner; industrial waste heat recovery; advanced industrial furnaces ≈ 25% natural gas reduction

• Future roadmap solicitation planned for some industrial areas



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Natural Gas Energy Efficiency Research Grants for Residential and Commercial Buildings (GFO-16-502)

Competitive grant solicitation that focused on improving the efficiency of: water heating and distribution systems building envelope and HVAC systems Integrated systems

Phase 1 focused on demonstration projects in the Los Angeles Basin affected by the Aliso Canyon Natural Gas Storage Facility. Goal is to increase energy efficiency by at least 10 percent compared to existing systems. Phase 2 focused on development of research strategies for dual fuel appliances, community scale solar water heating, low flow fixtures, and low income building natural gas use.

Phase 1 Notice of Proposed Award (September 2016): Advanced commercial gas heat pump

water heater with space cooling. Estimated 40% natural gas savings

Residential high efficiency, low capacity HVAC systems. Estimated 30% energy savings compared to T-24 compliant home.

Residential gas heat pump water heater. Estimated 50% natural gas savings.

Multifamily solar thermal with gas heat pump water heating. Estimated 75% natural gas savings.

Advanced air distribution/air handling for HVAC systems in hospitals. Estimated 30-50% natural gas savings.

Phase 2 Notice of Proposed Award (January 2017): Strategies for dual fuel appliances, community scale solar water heating, code changes for hot water distribution and low flow fixtures, and low income building natural gas use.


Program Highlights

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Improve Multi-Family Hot Water Distribution

Contractor: Enovative R&D Funds: $1,061,800 (Match $12,000) Description: Reduce natural gas consumption and water for

multi-family water heating by investigating and improving crossover. Results: Based on current data, natural gas savings ranged from 9%

to 18% when compared to baseline data. For the 9 sites, average natural gas savings is 14% when crossover is fixed. Projected Ratepayer Benefits: Reduce natural gas consumption for residential water heating by an estimated 3-4% (86 million therms and 503,000 metric tons GHG)

Recent Activity: • Monitored hot water savings • Design guide: Efficient water heating equipment, piping system best practices • Recommendations to T24 code to eliminate crossover being developed • Results to provided in training to utilities, state and building professionals • Final report expected in May 2017


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Improve the Energy Efficiency of Commercial Cooking Equipment Program Highlights

Contractor: Frontier Energy (formerly Fisher Nickel, Inc.) R&D Funds: $909,515 (Match $352,500) Description: Demonstrate and characterize the benefits of a high

efficiency cook line and optimized kitchen exhaust ventilation system.

Projected Ratepayers Benefits: If adopted across California, 98 million therms/year and 573,000 metric tons of GHG reduction could be saved.

Recent Activity: Most field research is complete. Writing design guides for new or renovating operations to motivate a paradigm shift towards energy efficient equipment purchases. To prompt new restaurant interest, prepared magazine articles and held workshops at the PG&E Food Service Center to highlight research results and benefits of more efficient equipment.

Results: Broilers are the most energy intensive appliance, followed by steamers and ovens. Replacements often require a change in operations but have substantial potential for natural gas savings.


Program Highlights

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Demonstrating Scalable Energy Efficiency Retrofits for Low Income Multifamily Housing

Contractor: Electric Power Research Institute R&D Funds: $ 1,351,283 (Match $1,112,800) Description: Develop cost-effective, replicable packages of energy efficiency

measures for deep energy efficiency retrofits of low income multifamily properties. Demonstrated in Lancaster, CA at the Beechwood Complex in 30 apartment units to better understand installed performance and financial value.

Projected Ratepayer Benefits: Retrofit packages and the integration of solar technologies estimated to reduce annual natural gas use by 50% (125 Therms/year per apartment unit).

Recent Activity: • Final Report anticipated by March 2017 • Follow-on project to implement lessons learned in multifamily buildings in disadvantaged communities in

Ontario and Fresno

Preliminary Results: • Envelope improvement package (duct replacements, insulation and

conditioned attic, air sealing: 34% reduction in natural gas based on HVAC usage

• Smart Thermostats: 14% reduction in natural gas use for heating (estimated average)

• Water Heating Improvements (Solar thermal and distribution improvements): 70% reduction in natural gas use


Program Highlights

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Small and Medium Building Efficiency Toolkit Contractor: Lawrence Berkeley National Lab R&D Funds: $2,000,000 Description: Develop a retrofit energy toolkit for small and medium

commercial buildings and demonstrate the potential energy savings on buildings.

Projected Ratepayer Benefits: Help building owners identify potential energy saving retrofit opportunities that will save electricity and natural gas and address indoor environment quality impacts.

Recent Activity: • Final report expected January 2017 • Tool has been adopted by the SF 2030 Districts • Future expansion to more building types, ECMs , DR and renewable energy, & integration with DOE

tools.

• Includes low-cost to no-cost changes to control system and operations • Publically available: http://cbes.lbl.gov/ • Toolkit API can be integrated into third party software and utility portals that provide energy retrofit

incentives and cost savings evaluations

Results: • Developed a web-based tool that uses smart meter data, 14

building types, and an ECM database to help buildings owners produce custom implementation plans, retrofit scenarios, and take immediate action


FY 2017-18 Proposed Funding Initiatives

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Increase Efficiency and Reduce GHG Emissions from Large Natural Gas Using Facilities

Background: Past/current research: Food service: demonstrations of commercial cooking and hot water heating and distribution

equipment; currently demonstrating new efficient equipment in actual restaurants. Large commercial buildings: current research on improvements to air distribution designs. Industrial: Process improvements, waste heat recovery, solar thermal.

Continuing issues: Equipment cost and NOx emissions from high efficiency units; no cost effective high efficiency boilers that can achieve >95% efficiency, air distribution systems are energy intensive compared to hydronic systems; steam systems miss-matched to pressure levels for the task. Research Description: Focus on large commercial/industrial applications, such as bakeries, and commercial buildings with large natural gas

use and central plants, such as hospitals, universities, large office complexes. Identify opportunities to reduce greenhouse gas (GHG) and other emissions, including waste heat recovery,

efficiency improvements to process and manufacturing systems, improve air and hot water distribution systems and steam systems, and other equipment/operational improvements (match return temperatures to optimize system performance).

Potential Partners and Customers: Large industrial and commercial facilities with large natural gas loads, such as bakeries and food service, equipment manufacturers/suppliers, utilities, universities, hospitals and public agencies Ratepayer Benefits: Reduced natural gas consumption, GHG and operating cost; increased efficiency of heating or food processing

equipment such as bakery (proofers, ovens, and heating systems). Increased occupant comfort and improved air quality due to better performing heating systems.


FY 2017-18 Proposed Funding Initiatives Improving Building Envelopes in Existing Buildings

Background: Past/current research: Integrated demonstrations of multiple efficiency retrofits to achieve near ZNE

buildings; improved wall/roof designs for manufactured buildings; develop, test and demonstrate high performance integrated window and façade solutions.

Continuing issues: High cost and not cost effective. Many existing residential and commercial buildings still have inefficient single-pane windows. Upgrading these windows in existing buildings has been slow due to cost and other issues.

Research Description: Develop innovative materials that will improve the energy efficiency of existing single-pane windows in

commercial and residential buildings while minimizing installation and materials cost. Advance cost effective building envelope technologies to further reduce thermal loads and control flow

of air and moisture while minimizing installation and materials costs Analyze occupant behavior and motivations to install improvements to building envelope that could

increase energy efficiency and have other benefits Potential Partners and Customers: Building owners/operators, window manufacturers, material scientists, code inspectors, utilities, universities, public agencies Ratepayer Benefits: Reduced utility bills Increased occupant comfort Reduce GHG and other air emissions (e.g. NOx) due to reduction in HVAC energy use

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FY 2017-18 Proposed Funding Initiatives Waste Heat Recovery Opportunities for Thermoelectric Generation

Background: Generating thermoelectric power through using heat and materials to generate direct current

electricity is ideally suited for industrial/commercial processes with 100 to 1400 degrees C waste heat. Thermoelectric modules can create voltage due to a temperature difference caused by the electronic properties

of the semiconductor materials (thermoelectric elements). A single module, which may consist of dozens of thermoelectric elements, has a hot side (contacting heat source) and a cold side (usually atmosphere).

Potential applications: cement plants, refineries, petrochemical, furnaces, and incinerators, aluminum, metal, glass, ceramic sintering and steel production.

Issue: Thermoelectric power is a new technology and more information needed on its applicability and cost effectiveness.

Research Description: Understand the status of this technology, potential industries/applications that have the most technical and

economic feasibility, the potential for future efficiency improvements and relative cost, the increased efficiency associated with both medium and high temperature applications of waste heat, the pros and cons of this technology relative to other generation technologies, and what will be needed for widespread adoption.

Potential Partners and Customers: Government agencies, utilities, universities, research organizations, large commercial/industrial natural gas

customers Ratepayer Benefits: Reduced energy consumption (natural gas and electricity) and operating costs Reduced GHG and other emissions (e.g., NOx)

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Moving Towards Electrification - Electrification Options

Background: California is moving processes and equipment towards electrification. Large boilers or furnaces associated with commercial buildings or industries may be difficult to electrify due

to cost and capacity requirements. Current plan is to develop a roadmap to identify energy efficiency opportunities for 2-3 industrial sectors Research Description: Identify large natural gas using buildings and industries that may be unable to electrify in the future and

provide cost effective options for reducing GHG emissions. Identify barriers and recommended technology demonstrations or strategies to achieve reductions in GHG

emissions by 2030. Identify industrial/commercial sectors with most potential to electrify Identify energy efficiency research technology areas to reduce natural gas and GHG emissions Determine costs and benefits, especially to low income, disadvantaged communities Identify potential natural gas savings and GHG emission reductions and timeline for implementation Potential Partners and Customers: Government agencies, utilities, large commercial and industrial natural gas customers Ratepayer Benefits: Reduce GHG and other emissions (e.g. NOx) Potential to reduce energy and operating costs Identify targeted facilities that can benefit from specific research.


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Proposed FY 2017-18 Budget

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Initiatives

Proposed

FY 2017-18 Natural Gas Budget

End-Use Energy Efficiency

Increase Efficiency and Reduce GHG Emissions from Large Natural Gas Using Facilities

Improving Building Envelopes in Existing Buildings

Waste Heat Recovery Opportunities for Thermoelectric Generation

Moving Towards Electrification – Electrification Options

$6,000,000


Questions for the Stakeholders on End-Use Energy Efficiency Initiatives

Are we emphasizing the right initiatives for buildings and industries?

Are there any missing opportunities, especially those that are needed to meet the state’s carbon reduction and energy efficiency goals and local NOx emission reduction requirements? Are there other energy efficiency advancements we should consider?

Are there opportunities for partnerships to avoid duplication and generate new ideas to ensure research provides benefits to natural gas ratepayers?

Are there any collaboration opportunities related to this research? If so, what are they?

Are there any big game changer items that can benefit low income and disadvantaged communities?

If you have ideas, identify and provide missing opportunities by indicating the following: Technology Potential, Market Connection, Energy and Cost Savings, and/or Environmental Benefits

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Presenter: Kevin Uy


Goals With funding under the EPIC and the Natural Gas R&D programs, the Renewable Energy and Advanced Generation R&D Program area conducts research that reduce barriers and increase penetration of renewable energy. Under the Natural Gas research program, our goal is to reduce dependence on fossil-derived natural gas by:

Advancing the development and market availability of clean and efficient distributed generation (DG) and combined heat and power (CHP) technologies

Developing hybrid, fuel-flexible, energy efficient, and low emission DG technologies for natural gas and alternative fuels including biogas

Developing and demonstrating technologies for the conversion, cleanup, and upgrading of biogas to renewable natural gas

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Policy Drivers Emissions Reduction AB 32 (Núñez, Chapter 488, Statutes of 2006), Global Warming Solutions Act of 2006 Reduce GHG emissions to 1990 levels (~25% reduction from BAU) by 2020

All emissions from new base load generation must be at or below emissions from a natural gas combined cycle plant by 2020

SB 32 (Pavley, Chapter 249, Statutes of 2016), Global Warming Solutions Act of 2006 Emissions Limit Reduce GHG emissions to 40% below 1990 levels by 2030

Executive Order B-30-15 Reduce GHG emissions to 80% below 1990 levels by 2050

SB 1383 (Lara, Chapter 395, Statutes of 2016), Super Pollutant Reduction Act Calls for a dramatic reduction in short-lived climate pollutant emissions from 2013 levels by 2030:

• 50% reduction for anthropogenic black carbon;

• 40% reduction for methane; and

• 40% reduction for fluorinated gasses

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Policy Drivers Distributed Generation and Renewable Energy Assembly Bill 1613 (Blakeslee, Chapter 713, Statutes of 2007), Waste Heat and Carbon Emissions Reduction Act The CHP Feed-in Tariff requires electrical utilities to purchase excess electricity delivered by a CHP

system that complies with certain sizing, energy efficiency and air pollution control requirements

Governor Brown’s Clean Energy Jobs Plan (2011) Introduced goals of 12,000 MW of renewable distributed generation by 2020 and 6,500 MW of

additional CHP capacity by 2030

California Public Utilities Commission Energy Efficiency Strategic Plan (2008/2011) New residential and commercial construction will be ZNE by 2020, and 2030, respectively

SB X1-2 (Simitian, Chapter 1, 2011), Renewable Portfolio Standard 33% of electric retail sales from renewables by the end of 2020

SB 350 (De León, Chapter 547, Statutes of 2015), Clean Energy and Pollution Reduction Act of 2015 50% of electric retail sales from renewables by the end of 2030

Double statewide energy efficiency savings in electricity and natural gas final end uses for retail customers by the beginning of 2030 33


Policy Drivers Bioenergy Bioenergy Action Plan (2012) Recommends actions to increase the sustainable use of organic waste, expand

research and development of bioenergy facilities, reduce permitting and regulatory challenges, and address economic barriers to bioenergy development.

AB 1900 (Gatto, Chapter 602, Statutes of 2012), Renewable Energy Resources: Biomethane Establishes a process to promote and facilitate the injection and use of renewable natural gas into

common carrier pipelines to meet the state’s renewable energy goals.

Governor Brown’s Proclamation of a State of Emergency (10-30-2015) State of emergency issued in response to historic drought, wildfires, and tree mortality rates

Directs the Energy Commission to prioritize grant funding from the EPIC program towards woody biomass-to-energy technology development and deployment

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Name of Initiative Description Status Hybrid Generation and Fuel Flexible DG/CHP/CCHP Systems

Integrate emerging multiple DG/CHP/CCHP technologies and fuel flexibility

• Novel flex fuel oxidation for distributed generation • CHP with thermal storage for modern greenhouses • Fuel-flexible, hybrid CHP at a municipal water treatment

plant • Tri-generation energy system technology for CCHP

Successful CHP greenhouse demonstration, highlighted in 2016/2017 Natural Gas Stakeholder Workshop and Energy Commission Blog (link)

Since demonstration, other CHP greenhouse systems have developed and applied to the CHP Feed-In Tariff program

Localized Efficient and Advanced Power and Heat Systems (LEAPS)

Advancing CHP in opportunity areas in specific industry and commerce, biofuels and waste heat sources

• High compression ratio free piston engine for CHP • CCHP system with multi function absorption cycle

Supporting reliable power through accelerated demonstration and deployment of DG/CHP in southern California

• Piloting a DG/CHP system powered by anhydrous ammonia • Low cost micro DG/CHP for use in laundry facilities • Multi-MW renewable biogas fuel cell and absorption

chiller CCHP system at a university campus

Novel emissions control systems for biogas fueled CHP

• Pre- and Post-combustion NOx control for biogas engines with microwave energy at a food waste digester facility

Projects started in summer 2014;

Successful fuel cell absorption chiller demonstration, highlighted in 2016/2017 Natural Gas Stakeholder Workshop (link)

NOx control project is completing demonstration, highlighted in upcoming slides


http://calenergycommission.blogspot.com/2016/03/energy-saving-technology-brings-home.html

http://www.energy.ca.gov/research/notices/2016-01-25_workshop/2015-01-25_Final_FY_2016-17_Stakeholders_Presentation.pdf


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Name of Initiative Description Status Advancing Clean Energy through Biogas, Biomethane, and Natural Gas

Advancing cost-effective biogas production, cleanup, and upgrading to renewable natural gas (RNG)

• Novel biogas cleanup for conversion of landfill gas to RNG • Gasification and methanation methods for conversion of

woody biomass to RNG • Solid-state, amine-appended metal organic frameworks for

low-pressure upgrading of biogas to RNG • Demonstrating conversion of wastewater treatment plant

biogas to renewable heat, power, and vehicle fuel • Improving biogas production by optimizing micronutrients

and operating methods at a food waste digester facility

Demonstrating waste heat to power systems at industrial facilities for efficient use of natural gas

• Cost effective, packaged Organic Rankine Cycle system at an industrial facility

Supporting development of micro-scale CHP/CCHP systems

• Field demonstration of a 25 kWe low-emission reciprocating engine CHP system

Projects started in summer 2015;

Projects conducting bench-scale testing and pilot-scale demonstrations to be completed in 2017/2018

Landfill gas cleanup project is preparing for pilot-scale demonstration, highlighted in later slides.



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Name of Initiative Description Status Novel Solutions to Accelerate Deployment of Small and Micro-Scale Combined Cooling Heating and Power (CCHP) Systems

Develop novel CHP systems with significant potential for cost and efficiency improvements

• Solar micro CHP for electricity, hot water, and space heating

Develop and demonstrate efficient, innovative, and cost-effective small-scale CCHP systems with thermally-driven cooling and/or thermal energy storage

• Innovative biomass gasifier micro CCHP system

• Small CCHP system with quick-response, compact, high temperature thermal energy storage

• Packaged HVAC/micro CHP unit with thermal energy storage

Develop a comprehensive assessment of small CCHP technical and market potential in California

Projects to be awarded at February Business Meeting

Piloting Innovative Waste Heat to Power and Near-Zero Emission CCHP Systems

Removing Distributed Generation Barriers through Cost Effective Emissions Control and Other Novel Strategies

Cost-Effective Waste Heat to Power Systems for California Industries

Future solicitation



Program Highlights

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RNG from Landfill Gas via Novel Cleanup and Upgrading Technologies Recipient: Gas Technology Institute R&D Funds: $1,000,000 (Match $214,650) Location: Newport Beach, CA Term: 6/30/2015 – 12/31/2018 Goal: Improve effectiveness, efficiency, and cost of

removing landfill gas contaminants Technology:

• Liquid scrubber systems for carbon dioxide and nitrogen removal which utilize organic solvents with high absorption capacity at low energy input

• Oxygen, siloxane, hydrogen sulfide removal using subcontractor Nrgtek’s patented process

• Compact, skid-mounted systems for streamlined installation and commissioning

Key features: • Aims to clean and upgrade landfill gas into

pipeline-quality renewable natural gas (SoCalGas Rule 30, 990 BTU/scf, non-detectable siloxanes)

• 1 year or demonstration at an existing landfill • Compact, low cost, and low energy input

Simplified representation of the landfill gas cleanup process

Skid-mounted removal subsystems: H2O/CO2 (left), and O2/H2S/Siloxanes (right)


Program Highlights

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Pre and Post-Combustion NOx Control for Biogas Engines Recipient: CHA Corporation R&D Funds: $646,604 (Match $122,554) Location: Sacramento, CA Term: 6/30/2014 – 3/31/2017 Goal: Demonstrate pre- and post-combustion NOx

control for biogas engines Technology:

• Hydrogen Assisted Lean Operation (HALO) allows stable engine operations at ultra-lean conditions

• Pre-combustion system consists of microwave H2S removal unit and microwave steam reformer to produce H2 to implement HALO

• Post-combustion system consists of an exhaust cooler and two activated carbon absorbers in series to remove NOx, SO2 and VOCs

Key features: • Aims to meet CARB 2007 DG NOx standards, 0.07

lb./MW-hr • Reduces warm-up time of emission control

equipment and subsequently startup emissions

Schematic of the anaerobic digester, biogas engines, and NOx removal subsystems


Program Highlights

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Pre and Post-Combustion NOx Control for Biogas Engines Recipient: Las Gallinas Valley Sanitary District R&D Funds: $999,070 (Match $1,750,623) Location: San Rafael, CA Term: 6/30/2015 – 5/31/2018 Goal: Install and operate a pre-commercial biogas

energy recovery system at a small wastewater treatment plant

Technology: • Utilizes a biogas cleanup skid, microturbines,

hydronic boiler, and CNG refueling station • New system replaces aging internal combustion

engine and diesel-fueled vehicles with cleaner, more efficient technologies.

• Combines existing technologies in a configuration new to California and at a small WWTP

Key features: • Utilizes 100% of biogas produced by the existing

digester to provide renewable electricity, heat, and transportation fuel

• Replaces diesel vehicles with cleaner CNG vehicles

Photograph of microturbines, gas cleanup system, and digester

Simplified schematic of the biogas energy recovery system


Piloting Pipeline Quality Renewable Natural Gas from California’s Forest Biomass Resources

Background: In October 2015, the Governor issued a proclamation of a state of emergency in response to

over 22 million dead trees in California’s forests. Since then, the amount of dead trees in California’s forests has risen dramatically totaling 102

million according to the U.S. Forest Service in November 2015. Millions of additional trees are weakened and are expected to die in the coming months and years.

Dead and dying trees elevate the risk of catastrophic wildfires which pose a significant threat to human safety, human health, and the environment.

Sustainable forest management activities can help reduce the chances of catastrophic wildfires and associated black carbon emissions while providing a feedstock for bioenergy applications.

Renewable natural gas from forest waste biomass could be used to produce renewable heat, renewable power, renewable natural gas for pipeline injection, and renewable natural gas for transportation applications.

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Piloting Pipeline Quality Renewable Natural Gas from California’s Forest Biomass Resources (Cont.)

Research Description: Research will support pre-commercial technologies and strategies to enable economic

conversion of forest waste biomass to renewable natural gas of suitable quality for pipeline injection in California.

Possible technologies and strategies include, but are not limited to, the following: • A pilot-scale demonstration of woody biomass conversion pipeline-quality, to renewable

natural gas and subsequent injection into a California pipeline; • Improvements to the methanation reaction to enable cost-effective conversion of

woody biomass-derived syngas to renewable natural gas; Projects must demonstrate a “whole system approach” from feedstock to end use –

conversion of woody biomass to pipeline quality renewable natural gas. Technologies should focus on improving efficiency, reducing costs, and reducing

environmental impact compared to conventional systems, and should be demonstrated with support from a California investor-owned utility. 42



Piloting Pipeline Quality Renewable Natural Gas from California’s Forest Biomass Resources (Cont.)

Potential Partners and Customers: Local, state, and national forest services, technology manufacturers and providers, project

developers, fleet owners and operators, and utilities Estimated Ratepayer Benefits: Increase energy security and offset fossil fuel use by utilizing forest waste resources for the

production of renewable natural gas. Reduce the risk of catastrophic forest fires and associated black carbon emissions. Conserve natural gas by utilizing in-state biomass resources.

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Initiatives

Proposed



Piloting Pipeline Quality Renewable Natural Gas from California’s Forest Biomass Resources

$4,000,000


Questions for the Stakeholders on Renewable Energy and Advanced Generation Research Initiatives

Are we targeting the right research areas to advance the state of bioenergy technology in California? What aspects of technological R&D in bioenergy should be prioritized?

Are there others sectors or opportunities not addressed in the initiative but will provide dramatic natural gas ratepayer benefits?

What other research is needed to improve technical, economic and environmental aspects of distributed bioenergy systems?

Other general questions: Are there opportunities for partnerships to avoid duplication and generate new ideas to

ensure research provides benefits to natural gas ratepayers? Are there opportunities for collaboration or synergies? If so, with whom? Are there any federal cost share opportunities related to this research? If so, what are

they?

45


Natural Gas Infrastructure Safety and Integrity

Presenter: Avtar Bining

46


Goals Conduct research in natural gas infrastructure not adequately

addressed by the regulatory and competitive markets Provide research that results in tangible benefits to utility

customers • Focus is on projects that have the potential to increase safety

and enhance transmission and distribution capabilities of the natural gas system

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Policy Drivers

48

Public Resources Code 25620

The program goal is to develop and bring to market technologies that provide greater system reliability, increased environmental benefits and lower system costs

2011 Integrated Energy Policy Report

“The state needs public interest energy research to explore opportunities and apply new and emerging technologies that provide innovative options for natural gas pipeline integrity, operations, and safety.“

CPUC Natural Gas Safety Action Plan (April 2013)

More research is needed to develop cost-effective natural gas safety inspection equipment and tools for risk analysis.

Governor’s Aliso Canyon Gas Leak Proclamation (January 2016)

Protect public health and safety and ensure accountability of gas storage facilities

Senate Bill (SB) 887 (Pavley) – Natural Gas Storage Wells

Establish proactive safety standards for natural gas storage wells in California..

Natural Gas: Leakage Abatement (SB 1371)

CPUC to develop strategies to reduce leaks from transmission and distribution lines

Senate Bill 32 (Pavley) – State Targets for Climate Pollution



49


Natural Gas Pipeline Safety and Integrity Management Group 1: Technologies that Improve Situational Information; Group 2: Technologies that Enhance Integrity Management Practices through Risk Analysis; and Group 3: Natural Gas Pipeline Safety Integrity Monitoring Technologies Assessment

Develop and demonstrate natural gas pipeline safety and integrity management technologies that improve situation information and communication, enhance integrity management practices through risk analysis, and assess the status of various technologies.

Solicitation GFO-15-506 was released and funded 4 projects. (Details on next 4 slides)


Current Portfolio Highlights and Major Initiatives Name of Initiative

Description Status

Natural Gas Pipeline Safety and Integrity Management Research Pipeline Safety and Integrity Monitoring Technologies Assessment

Contractor: Gas Technology Institute Project Number: PIR-15-012 R&D Funds: $1,006,812 Purpose: To identify new and emerging technologies for implementation in the California’s natural gas pipeline integrity and safety management practices. Field demonstrations will enable operators to interact with the manufacturers for successful implementation. A web-based database will provide a selection of the best technology for use in specific threats, site conditions, and operation parameters.

Accomplishments Completed the contractual agreements with subcontractors Started communications with stakeholders to form the TAC

group Current Status The Kick-off meeting was held in July 2016 Started technical tasks coordination with subcontractors. Discussions with utilities are in progress



51

Name of Initiative

Description Status

Natural Gas Pipeline Safety and Integrity Management Research Development of Technologies for High Accuracy Maps for Excavation Damage Prevention and Real-Time Situational Awareness Tool for Operations and Emergency Responses

Contractor: Gas Technology Institute Sub-contractor(s): LocusView Solutions and Fisher Nickle Inc. Project Number: PIR-15-014 R&D Funds: $1,481,426 Purpose: Develop high accuracy maps to reduce/eliminate excavation damage and a situational awareness tool for gas industry operations and emergency response. The technology will enable more effective and systematic decisions to the California pipeline company. This will improve pipeline safety, reduce losses during unanticipated events, and reduce operating costs.

Accomplishments Past research on mapping technology collected several

pipeline features and a few thousand feet of pipes with an average accuracy of 7-inches. With 90% features there can be better than 4-inch accuracy

Advances in the mobile technologies will assist the proposed development work to the next technology level

Current Status The Kick-off Meeting was held in November 2016 Preliminary discussions with gas utilities are underway


Current Portfolio Highlights and Major Initiatives Name of Initiative

Description Status

Natural Gas Pipeline Safety and Integrity Management Research GPS Excavation Encroachment Notification System (GPS EENS) Implementation

Contractor: Gas Technology Institute Project Number: PIR-15-015 R&D Funds: $1,471,288 Purpose: To implement a GPS-based excavation encroachment notification device and technology to increase real time situational awareness of operating excavators and significantly reduce the risk of third party damage on utility infrastructure. The system will also augment emergency response and provide information and alerts to utility operators and first responders.

Accomplishments Developed the excavator hardware device prototype Developed the communications protocol for the utility Designed the dashboard and data management

architecture Current Status The project kick off meeting was held in Nov 2016 Work is in progress project Initiated the sub-contractual agreement with ESRI



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Name of Initiative

Description Status

Natural Gas Pipeline Safety and Integrity Management Research Group 2: Technologies that Enhance Integrity Management Practices through Risk Analysis

Contractor: Det Norske Veritas (U.S.A), Inc. Project Number: PIR-15-016 R&D Funds: $1,721,066 Cost share: $411,761 Purpose: Demonstrate an advanced risk assessment methodology for managing the integrity of pipelines in California. This risk assessment methodology will enable more effective, systematic, and verifiable decision-making utilizing all the knowledge and data available to the pipeline company. Thus allowing more robust pipeline integrity management and reducing losses due to unanticipated events.

Accomplishments Demonstrate the use of the risk assessment methodology

to predict pipeline risks Enable pipeline operators to make decision under diverse

and uncertain conditions Advance the risk assessment methodology to the next

technology readiness level Current Status Kick off meeting was held in July 2016 Technical kick off meeting with SoCal Gas and UCLA was

held in August 2016 Methodology and data reviews in progress

Source: Don Bartletti, Los Angeles Times 2014-09-03


Program Highlights

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Complete Pipeline Safety and Integrity Monitoring Technologies’ Assessment (GTI) Pipeline Safety and Integrity Management

• Inspection and Damage Detection Technologies (UCB’s MEMS System, Diakont’s Robot System and Acellent’s RAPID System)

Active Monitor and Report ROW Encroachments on the Pipeline (GTI and Acellent) Technologies for Situational Awareness and Integrity Management of

Pipelines – High-accuracy Mapping and Maps (GTI) Technologies that Enhance Pipeline Integrity Management through Risk

Analysis (DNV-GL) Update of Pipeline Safety and Integrity Monitoring Technologies’ Assessment

– CA and Nationally (GTI) Future Risk Assessment Models for Natural Gas Storage Safety and Integrity Advanced Training Tools and Technologies for improved Natural Gas

Infrastructure Safety and Integrity Inspection Audits


FY 2017-18 Proposed Funding Initiatives Seismic Risk Assessment and Management of

Underground Natural Gas Storage Infrastructure

Research Description: Develop advanced technologies and methods for early detection of seismic impacts and potential failure modes of underground natural gas storage in California, including risk analysis and assessment, damage and flaw detection, hot spot identification, and corrective action planning and implementation. Coordination with California Public Utilities Commission and California Department of Conservation’s Division of Oil, Gas, and Geothermal Resources.

Potential Partners and Customers: Natural Gas Utilities, Gas Storage Industry, Research Institutions, Policymakers, and Regulators

Advances in Science and Technology: Increase the capabilities of seismic risk assessment methods and technologies for early detection of seismic impacts and potential damage and failure modes and develop corrective actions

Rate Payer Benefits: Improve the safety and integrity of natural gas storage and improve reliability of natural gas storage infrastructure

55



56

Initiatives

Proposed


Natural Gas Infrastructure Safety and Integrity Seismic Risk Assessment and Management of

Underground Natural Gas Storage Infrastructure

$5,000,000


Questions for the Stakeholders on Natural Gas Infrastructure Safety and Integrity

Are we emphasizing the right initiatives (e.g. Seismic Impacts and Risk Assessment) and technologies (e.g. Impacts and Damage Detection and Risk Assessment Methods and Models) that can improve safety and integrity management of natural gas storage infrastructure?

Are there any missing opportunities to further improve the safety and integrity of natural gas storage infrastructure?

• Emerging Technologies and Methods • Technology Potential • Market Connection Commercialization and Deployment Potential • Inspection cost reductions • Minimizing intrusion and damage • Energy and Cost Savings • Environmental Benefits

Are there opportunities for partnerships to avoid duplication and generate new ideas to ensure research provides benefits to natural gas ratepayers?

Are there opportunities for collaboration or synergies? If so, with whom? Are there any federal cost share opportunities related to this research? If so, what are they?

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Energy-Related Environmental Research

Presenter: Yu Hou

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Goals Develop cost-effective approaches to evaluating and

resolving environmental effects of natural gas production, delivery, and use in California; explore how new energy applications and products can solve/mitigate environmental problems; identify vulnerabilities of the energy system to climate change and develop cost-effective approaches to ensure reliable energy services.

59


Policy Drivers Warren-Alquist Act CEQA equivalent environmental evaluations for power plants IEPR Energy-related environmental research priorities Safeguarding California An update to the Adaptation Strategy that was adopted by the Governor in 2009;

identifies adaptation measures that state agencies should implement SB 1250 Increased energy efficiency, reduce or eliminate consumption of water and other

finite resources, increase renewable energy Loading Order Increase energy efficiency, renewable energy, clean fossil generation, infrastructure

improvements AB 32 Reduce GHG to 1990 levels by 2020 SB X 1-2, SB 350 RPS, 33% by 2020 and 50% by 2030

60


Policy Drivers AB 1496 Life cycle analysis for natural gas Delta Reform Act of 2009 Delta Stewardship Council to update priorities for State investments in the Delta

levee system. Work with CEC on energy related issues. SB 1371 CPUC to develop strategies to reduce leaks from transmission and distribution

lines SB 32 (Pavley, Chapter 249, Statutes of 2016), Global Warming Solutions Act of 2006 Emissions Limit Reduce GHG emissions to 40% below 1990 levels by 2030

Executive Order B-30-15 Reduce GHG emissions to 80% below 1990 levels by 2050

SB 1383 (Lara, Chapter 395, Statutes of 2016), Super Pollutant Reduction Act Calls for a dramatic reduction in short-lived climate pollutant emissions from 2013

levels by 2030

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Policy Drivers SB 379 (Jackson, Chapter 608, Statutes of 2015) Requires local hazard mitigation plans developed by cities and counties to address

climate adaptation

SB 246 (Wieckowski, Chapter 606, Statutes of 2015) • Establishes a Climate Adaptation and Resiliency Program to be administered by the

Governor’s Office of Planning and Research (OPR)

AB 1482 (Gordon, Chapter 603, Statutes of 2015) Requires the California Natural Resources Agency (CNRA) to update the state’s

adaptation plan and requires state agencies to integrate adaptation concerns into planning.

AB 2800 (Quirk, Chapter 580, Statues of 2016) Requires state agencies to take into account the current and future impacts of

climate change when planning, designing, building, operating, maintaining, and investing in state infrastructure.

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63

Name of Initiative Description Status Investigations of Potential Induced Seismicity Related to Geologic Carbon Dioxide Sequestration in California

Assessing the risk of seismic events Demonstrate a simulation-based procedure

for assessing risk from induced seismicity Conduct laboratory experiment of potential

for CO2 leaking due to changes in caprock permeability

Final report being completed Ran series of models of the flow of

CO2 through sandstone layer, the change in pressure on faults, and the risk of induced seismicity for a site based on Kings Island

Probabilistic Seasonal and Decadal Forecasting for the Natural Gas System

Improvement of seasonal and decadal probabilistic forecasts of climate and weather conditions in CA that correlate to the natural gas demand: Develop seasonal predictions for temperature

and precipitation of 0-9 months Develop decadal predictions for temperature and

precipitation of 10-20 years

TAC is formed by technical staff from NG utilities, CalISO, and CEC Energy Demand Office

Forecasts are under development

Assessment of Residential Natural Gas Emissions

Design the study and conduct building leakage measurements in approximately 75 sample houses

Prior study sampled 10 homes

Field Study Ongoing Approximately 20 homes has

been tested Preliminary findings suggest

that emissions from operating combustion appliances vary significantly.



64

Name of Initiative Description Status Air Quality Implications of using Biogas (AQIB) to Replace Natural Gas in California

Measure the biological and chemical composition of biogas/biomethane and the composition of their combustion emissions

Samples of raw biogas and upgraded biomethane have been collected

Sample Chemical Analysis are being conducted

Vulnerability of the Natural Gas System to Climate Change: Initial Studies

Estimate subsidence of levees Improve sea level rise projections Conduct regional vulnerability studies

Project on-going One selected study for the San Diego

region. Two more studies were added recently

Exploratory Study of Innovative Methods to Assess Structural Integrity of Levees Protecting Natural Gas Infrastructure in the Sacramento-San Joaquin Delta

Measurements of Delta Island levee system subsidence in the areas of the Delta’s energy infrastructure

Mapping rates of subsidence associated with levees critical to energy infrastructure

LiDAR measurements of Delta Island levee system near completion

Compiling most up-to-date sea-level projection curves



65


Characterize the Impact of California Drought-Related Subsidence on Natural Gas System

Estimate impacts of subsidence(Central Valley) on pipelines and underground NG storage facilities

Estimate impact of subsidence(Central Valley) on methane emissions from abandoned/plugged natural gas wells

The notice of proposed awarded is posted

Agreement is under development

Long Term Strategic View of the Use of Natural Gas in a Carbon-Constrained Water-Efficient Environment

Develop long-term scenarios for natural gas taking into account GHG reduction programs

Explore options to decarbonize the natural gas system

Explore issues related to the injection of hydrogen which may damage the natural gas pipelines

The notice of proposed awarded is posted

Agreement is under development.

Chemical and Isotopic Fingerprints of Natural Gas Basins to Support Full Fuel Cycle Accounting

Empirical research focused on analyzing the chemical and isotopic composition of natural gas samples from different basins Collect and analyze NG samples from

different basins that potentially serve the California market

Compile a database with chemical fingerprint information for various natural gas samples

Future Solicitation


Program Highlights

Recipient: ICF Incorporated R&D Funds: $456,703 (Match $166,200) Term: 12/4/2015 to 5/30/2018 Project Description:

ICF is partnering with SDG&E to conduct a detailed, robust, climate change vulnerability assessment and identify and evaluate appropriate adaptation measures. This will provide a suite of practical, actionable climate change adaptation measures optimized to SDG&E’s natural gas system and customer needs.

• Highlight: Findings from this project are currently being integrated into Climate Resiliency documents being developed by SDG&E.

Ratepayer Benefits The project will establish better understanding of natural gas system vulnerabilities and adaptation options available for SDG&E. The conclusion from the study will assist SDG&E and other utilities to prepare adaptation plan to climate change, therefore, improved reliability of natural gas service.

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Investigate Climate Vulnerability of the Natural Gas System and Identify Resilience Option in the San Diego Area


Program Highlights

Recipient: Lawrence Berkeley National Laboratory R&D Funds: $2,263,300 Term: 6/7/2010 to 3/31/2016 Project Description:

The purpose of this research was to conduct measurements and research to reduce health risks to the population of California from exposure to unvented residential combustion gases.

Highlight: • Some indoor air pollutant (nitrogen oxides, nitrogen dioxide and carbon monoxide) levels are higher in

homes with natural gas versus electric cooking. Others pollutant (formaldehyde or acetaldehyde) levels are similar.

• Operating a venting range hood can greatly reduce pollutant levels from burner use, performance varies widely across hoods. Operating gas burner without venting can cause short term pollutant level exceeds the national ambient air quality standard.

• Nitrogen oxides and nitrogen dioxide levels were higher in homes with a gas pilot burner on cooking appliance or furnace (floor or wall).

Ratepayer Benefits This research produced and interpreted scientific information on indoor air quality impacts of combustion in homes and identified mitigation measures to help California move toward more energy efficient, healthy and comfortable homes.

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Healthy Homes – Exposure to Unvented Combustion Gases


FY 2017-18 Proposed Funding Initiatives Developing Next-Generation Cal-Adapt Features

to Support Natural Gas Sector Resilience Research Description: The proposed effort will deliver several new high-resolution data sets, “next-

generation” resilience tools that integrate results of California’s Fourth Climate Change Assessment, and a data download tool with pre-processing features that supports manipulation of climate projections to directly inform decision-making related to natural gas planning, management, operations, and infrastructure. This research will also provide larger data storage resources to accommodate the rapidly growing body of projected climate data and will begin investigating Big Data solutions that enable Cal-Adapt to maintain its usability while at the same time vastly expanding its computational power.

Potential Partners and Customers: Natural Gas Utilities, CPUC, OPR, CNRA, CDPH, Policy Makers, Regulators, and Environmental Groups.

Advances in Science and Technology: Breakthrough resilience tools that build on increasingly high-resolution climate projections and clear understandings of how climatic data inform operations, planning, management, and infrastructure-related decisions.

Estimated Ratepayer Benefits: Preserving reliability, safety, and efficient operations in the face of a changing climate requires integration of projected climate and weather-related parameters into decision-making. Cal-Adapt provides a basis for this, enabling stakeholders to access data for free and aligning with anticipated recommendations from OPR’s Advisory Committee on adaptation.

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FY 2017-18 Proposed Funding Initiatives Air Quality and Climate Benefits of Targeted Retrofits of Buildings

for Space Heating in an Urban Area in the San Joaquin Valley Research Description: Disadvantaged communities in California not only suffer from

disproportional environmental impacts but also may not be benefiting from the rapid penetration of clean energy systems such as deep increases in energy efficiency. The research looks at how to substantially increase energy efficiency in the existing building stock at the lowest possible costs taking into account EJ/Equity concerns. The research will target one or two cities in the San Joaquin Valley. The researchers will use “big data” afforded by monthly energy bills, building characteristics, reduced form energy models, and other tools.

Potential Partners and Customers: Natural Gas Utilities, CNRA, Strategy Growth Council, CPUC, ARB, and Policymakers.

Estimated Ratepayer Benefits: Doubling the efficiency of the existing stock of buildings and homes will be extremely difficult and potentially costly. Findings for Cambridge, MA indicate that retrofitting of only 16% of the buildings would result in increased energy efficiency for the entire building stock and would reduce natural gas consumption of the whole building stock by 40%. The benefits to California may be enormous if this study finds similar results.

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FY 2017-18 Proposed Funding Initiatives Investigation of Options to Cost Effectively Reduce Methane Leaks

Research Description: The research goal is to identify the best options to reduce CH4 emissions

from the natural gas system including production, processing, storage, distribution, and final consumption. This research would be open to different promising technological options on how to identify and reduce methane emissions with the lowest possible costs per ton of methane. The project will be integrated, as much as possible, with other CEC sponsored projects designed to improve the estimation of methane emissions from the natural gas system and the identification of super-emitters.

Potential Partners and Customers: Natural Gas Utilities, Environmental Groups, ARB, Policy Makers, and Regulators.

Advances in Science and Technology: Real world testing of technologies and/or practices designed to reduce methane emissions.

Estimated Ratepayer Benefits: Promoting mitigation technology that will not only reduce methane emissions from the California natural gas system but may also help other efforts outside California. This effort is important because California imports about 90% of the natural gas consumed. Reducing methane losses will result in energy and cost savings.

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71

Initiative

Proposed FY 2017-18 Natural Gas Budget

Energy-Related Environmental Research Developing Next-Generation Cal-Adapt Features to

Support Natural Gas Sector Resilience Air Quality and Climate Benefits of Targeted

Retrofits of Buildings for space heating in an urban area in the San Joaquin Valley

Investigation of Options to Cost Effectively Reduce Methane Leaks

$3,600,000


Questions for the Stakeholders on Energy-Related Environmental Research

Are we addressing the most important environmental issues that would affect the natural gas system in the next 5 to 10 years?

Is our long-term research perspective of factors that may affect the natural gas industry in the next 34 years (from now to 2050) adequate?

Are there additional opportunities for collaboration or synergies? If so, with whom?

Are there any federal cost share opportunities related to this research? If so, what are they?

72


Natural Gas-Related Transportation Research

Presenter: Peter Chen

73


Goals The goals of transportation-related projects are to:

Reduce carbon emissions Improve infrastructure capacity, reliability, and sustainability Improve air quality Increase the use of transportation renewable fuels

74


Policy Drivers Executive Order B-32-15 Directs the development of the Sustainable Freight Action Plan to improve freight efficiency,

transition to ZEV technologies, and increase California freight system competitiveness. State Alternative Fuels Plan Presents strategies and actions California must take to increase the use of alternative

transportation fuels including natural gas. 2013 Integrated Energy Policy Report Growth scenario shows six fold increase in natural gas vehicles between 2012 and 2020. Senate Bill 1250 Enables PIER funds to be used for advanced transportation technologies that:

• Reduce air pollution and GHG emissions beyond applicable standards. • Benefit natural gas ratepayers.

Assembly Bill 32 Calls for approximately 36% of the state’s 2020 GHG reduction targets to come from the

transportation sector. Assembly Bill 118 & 8 (Alternative and Renewable Fuel and Vehicle Technology Program) Authorizes the Energy Commission to develop and deploy alternative and renewable fuels and

advanced transportation technologies to help attain the state's climate change goals. 75



76

Initiative Description Status Develop and Demonstrate an Ultra Low Emissions, High Performance Spark Ignited Natural Gas Engine

Develop and demonstrate a low NOx, spark-ignited natural gas 6.7-liter engine for medium-heavy-duty applications such as shuttle buses, delivery trucks, and port yard spotters. The CWI 6.7L ISB G is certified at 0.1 g/bhp-hr NOx, 50% below the current CARB standard.

Initial design phase of engine completed in 2015

Final design phase and demonstration of engine with Heavy-Duty On-Board Diagnostics to be completed by 2019.

Engine is currently commercially available for school bus applications.

Near-Zero Emission Technology Research for Heavy-Duty Natural Gas Vehicles

Reduce NOx levels by 90% through advanced engine technologies while meeting other emission standards without incurring a fuel economy penalty. The CWI 8.9-liter ISL G is certified at 0.02 g/bhp-hr NOx, 90% below the current CARB standard.

Project completed in 2016

Engine is commercially available and is seeing adoption in major transit and refuse fleets throughout California.

Low NOx 12-Liter Natural Gas Engine Development

Development, integration, and demonstration of a 12-liter low NOx natural gas engine with the goal of certifying at CARB’s lowest optional NOx emission standard of 0.02 g/bhp-hr (90% below the current CARB standard). The engine will provide a larger low NOx engine option to refuse and goods movement applications.

In Progress

Expected Completion 2018

Co-funded by SoCalGas, Clean Energy Inc., SCAQMD, AB118



77

Initiative Description Status Natural Gas Vehicle Hybridization

Develop and demonstrate hybridization designs that use battery power to minimize idle and low-load engine operation to reduce emissions and improve vehicle performance.

In Progress Three projects awarded:

1. Efficient Drivetrains, Inc. (Completed 2016)

2. Transpower 3. Gas Technology Institute


Natural Gas Fueling Infrastructure Improvements

Current compressed natural gas fueling infrastructure can only fill a tank to 70-85% of its maximum capacity due to gas expansion during filling. This project will aim to develop an advanced fueling algorithm to increase the maximum fill capacity of CNG tanks by 20%. Potential for technology to be applied to hydrogen tank filling.

In Progress One project awarded:

1. Gas Technology Institute Expected Completion 2017

Advanced Ignition Engine Research

Develop advanced ignition methods to improve engine combustion efficiency while reducing tailpipe emissions. High-energy technologies such as plasma ignition, corona ignition, and prechamber turbulent jet ignition will aim to improve the performance of natural gas engines.

In Progress Three projects awarded:

1. Gas Technology Institute 2. North American Repower 3. Olson Ecologic

Expected Completion 2017-18



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Initiative Description Status

Development and Demonstration of Off-Road Natural Gas Applications

Natural gas engine development, integration and demonstration for off-road vehicle applications including harbor craft, locomotives, and off-road equipment. Exceed Tier 4 emissions standards while meeting the performance needs of off-road applications. Perform demonstrations in areas with key concentrations of Disadvantaged Communities such as the San Joaquin Valley Air Basin, South Coast Air Basin, and the Ports.

Solicitation Released October 21, 2016

NOPA Posting Estimated January 17, 2017

Expected Start May 2017

On-Road, In-Use Emissions and Fuel Usage Assessment

On-road, in-use emission and fuel usage testing for heavy-duty natural gas vehicles in the South Coast Air Basin. Data will be used to benchmark current technologies and guide future transportation research efforts in improving emissions and fuel usage of heavy-duty natural gas vehicles.

In Progress Expected Completion 2018

Co-funded by SoCalGas, CARB,

SCAQMD


Current Portfolio Highlights and Major Initiatives Initiative Description Status Natural Gas Engine Improved Efficiency Research and Development

Develop advanced engine efficiency improvement technology that is applicable to natural gas engines supporting heavy-duty vehicle applications. Technology should assist in reducing the efficiency gap between natural gas engines and equivalent diesel engines.

Solicitation Release December 13, 2016

Proposals Due February 13, 2017

Improved Economics of On-Board Compressed Natural Gas Storage Research and Development

Research to improve the economics of on-board compressed natural gas storage systems by developing more cost-effective and fuel efficient storage options.

Expected Solicitation Release June 2017

Natural Gas Vehicle On-Board Storage

Develop and demonstrate an adsorbed natural gas tank to provide a safe, low-pressure, high-density storage system that enables cost-effective home refilling of light-duty NG vehicles.

In Progress


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Program Highlights

Contractor: South Coast Air Quality Management District R&D Funds: $1.44M (Match $3M)

Partners: Cummins Westport, Inc., Southern California Gas Company

Term: 6/30/2013 – 6/30/2016

Description: Development of a low NOx 8.9 liter stoichiometric spark-ignited natural gas engine.

Results:

Reduced NOx levels by 90% and methane emissions by 70% from the base engine.

8.9L engine was certified at 0.02 g/bhp-hr NOx.

CWI’s 8.9L ISL G Near-Zero is commercially available and will phase out their base older 8.9L engine.

Market adoption in major refuse and transit fleets such as Waste Management and LA Metro.

Ratepayer Benefits: Improve urban community air quality. Reduced greenhouse gas emissions. Comparable well-to-wheels emissions with battery electric vehicles when used with renewable natural gas.

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Natural Gas 8.9 Liter Engine Achieves ‘Near-Zero’ NOx Emissions

Courtesy of CWI


Program Highlights On-Road In-Use Emissions and Fuel Use Assessment Guides

Future Transportation Research Efforts Contractor: South Coast Air Quality Management District R&D Funds: $2M (Match $1.25M)

Partners: UCR/CE-CERT, WVU, CARB, Southern California Gas Company

Term: 1/4/2016 – 6/29/2018

Description: Current emission and fuel usage estimates guiding transportation research are based on engine certification data. This project will provide more accurate real-world drive cycle data by conducting on-road testing.

Results:

Determine actual on-road emission performance of heavy-duty on-road vehicles to build information database to guide future transportation research efforts.

Develop deterioration factors for engine and after-treatment systems to determine robustness of current technologies.

Match vehicle technologies to vocations for which technology benefits can be maximized.

Ratepayer Benefits: Guide applications of vehicle technologies to maximize ratepayer benefits.

81 Courtesy of UCR/CE-CERT


FY 2017-18 Proposed Funding Initiatives Advanced Combustion Research to Reduce Emissions

of Large Displacement Natural Gas Engines Research Description: Research on combustion technologies to reduce emissions and increase

efficiency of large displacement high-horsepower natural gas engines for applications such as rail locomotives, marine vessels, and heavy-duty off-road equipment. Emission reduction from these mobile sources can provide health benefits to Disadvantaged Communities such as those surrounding California’s high traffic ports and rail yards.

Potential Partners: Partners may include Research Institutions, National Labs, other Governmental Agencies, and Private Industry OEMs.

How it Advances Science and Technology: • Current large displacement engines for high-horsepower applications use natural gas primarily

for favorable fuel economics; they are not optimized for low emission performance.

• Spark ignition is not effective for large displacement engines due to difficulties in uniformly igniting a high volume mixture.

• Accelerate the adoption of natural gas as a cleaner alternative transportation fuel to diesel and heavy fuel oil in the high-horsepower industry.

• Provide low emission options to high-horsepower applications that cannot practically achieve electrification in the near future. 82


FY 2017-18 Proposed Funding Initiatives Advanced Combustion Research to Reduce Emissions of Large Displacement

Natural Gas Engines Estimated Ratepayer Benefits: Marine vessels, heavy-duty off-road equipment, and locomotives will

make up roughly 30% of the total projected NOx emissions in the South Coast Air Basin in 2023. Reducing emissions from these sources will be critical to achieving attainment and improving air quality in California’s heavily polluted air basins.

Projected Sources of NOx Emissions in the South Coast Air Basin by 2023

83 Source: 2015 Natural Gas Vehicle Research Roadmap


FY 2017-18 Proposed Funding Initiatives Systems Optimization of Hybrid-Electric Natural Gas Vehicles

to Minimize Emissions and Maximize Efficiency Research Description: Building on previous natural gas vehicle hybridization research that has shown

NOx increases due to frequent cold starts primarily driven by drivetrain integration and controls issues, this research aims to better optimize medium-heavy duty hybrid-electric natural gas vehicles. Research will drive advancements in areas such as controls, on-board storage, and engine integration to minimize NOx emissions and maximize efficiency gains. Research will target vehicle applications with frequent stop-and-go duty cycles such as delivery trucks, transit buses, and yard trucks.

Potential Partners: Partners may include Research Institutions, National Labs, other Governmental Agencies, and Private Industry OEMs.

How it Advances Science and Technology: • Address issues with NOx increases due to frequent engine cold starts. • Controls and systems integration improvements to bridge the low NOx potential of natural gas

engines with the efficiency benefits and zero emission operation capabilities from electric hybridization.

• Maintain cost effectiveness of electric hybridization of natural gas vehicles to ensure a practical pathway to commercialization.

Estimated Ratepayer Benefits: Expanded natural gas hybrid electric vehicle operation with zero-emission capability will result in lower criteria pollutants, lower noise, and reduced GHG emissions.

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85

Initiatives Proposed FY 2017-18 Natural Gas Budget

Natural Gas-Related Transportation Advanced Combustion Research to Reduce Emissions of

Large Displacement Natural Gas Engines

Systems Optimization of Hybrid-Electric Natural Gas Vehicles to Minimize Emissions and Maximize Efficiency

$3,000,000


Questions for the Stakeholders on Natural Gas-Related Transportation

Are we emphasizing the right initiatives? Are there any missing opportunities?

• Energy Sector • Technology Potential • Market Connection • Energy and Cost Savings • Environmental Benefits

Are there any recommendations to reallocate funding? Are there opportunities for partnerships to leverage additional funding? What

are the priority areas that require more emphasis? Are there opportunities for collaboration or synergies? If so, with whom? Are there any federal cost share opportunities related to this research? If so,

what are they?

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87

Presenter: Michael Gravely

Consider Increasing the PIER Natural Gas Annual Funding Level



CPUC Resolution G-3519

• The CEC suggests the Commission consider adjusting annual funding levels for the program, including the $24 million program budget.

In its 2016-2017 plans, the CEC states:

• Natural gas critical issues needing research have increased significantly over the last five years. With natural gas pipeline explosions, uncertainty on the amount methane leaking from the natural gas system, impacts such as subsidence and overall infrastructure deterioration from climate change and the recent natural gas leak from the Aliso Canyon storage facility the need for additional natural gas system research continues to grow.

88



CPUC Resolution G-3519 • Historically, the funding for the program increased by 100% from 2005

until 2009 and has remained at the same level for the last seven years.

• Given the interest from stakeholders and the increase in the need for natural gas system research, the Energy Commission requests the CPUC consider evaluating the ability to increase the annual funding for natural gas research program in the near future to a level commensurate with the issues that need to be addressed.

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CPUC Resolution G-3519 We therefore request that the CEC provide a more detailed accounting to inform

Commission review of the overall funding levels of the program. This detailed accounting shall include, at minimum: • An overview of the impact of current funding levels; • An assessment of the results and outcomes from current and prior funding

levels (differentiating, for example, those resulting from the current $24 million levels, and those resulting when the program was at lower levels);

• An assessment of current research needs, priorities, and stakeholder input that may justify increased funding. Include data used to support these recommendations, and the metrics/indicators used to assess them; and

• An assessment of different funding ranges that may support different levels of results/research advancements, aligned to the identified research needs. 90


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Energy-Related Environmental Research Expanding the assessments on the impacts of waste flaring associated gas from oil

drilling sites and other facilities. Expanded assessments on mitigation economics associated with the fugitive gas

emissions from natural gas system. Investigate new methods to capture sustainable gas sources in a cost effective

manner. Expanded assessments of methane emission from super-emitters. Continued investigation to lower the carbon content of natural gas. Assess value of better monitoring and detection of emission from NG system in

metropolitan area such as Los Angeles, San Francisco, etc. Assess and reduce the environmental impact of transporting feedstock to biogas

generation sites.

Consider Increasing the PIER Natural Gas Annual Funding Level—Potential Research Topic Areas


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Natural Gas Infrastructure Safety and Integrity Research Assess and demonstrate improved technologies and methods for

detecting and assessing pipeline corrosion, damage, defects and leaks. Apply new technologies to improved safety training capabilities for utility

workers. Update and assist in the adoption of best practices and education of the

public on NG infrastructure safety. Assess, catalog and document accurate location of legacy existing assets. Increase leak detection monitoring performance--how to optimize and

balance between reliability and sensitivity. Develop recommended practice for predictive analytics related to

damage prevention, integrity management, and safety.




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Energy Efficiency Research

Assessing new technologies and methodologies for industrial facilities that need to continue to relay on natural gas in daily operations as the natural gas infrastructure changes in the future.

Renewable Energy and Advanced Research

Expanded research on renewable natural gas production and use.

Reducing NG demand for thermal and power needs at critical facilities.


Consider Increasing the PIER Natural Gas Annual Funding Level— Potential Research Topic Areas

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Natural Gas-Related Transportation Research Advancing renewable natural gas production for local transportation use. Addressing fuel switching barriers of natural gas vehicles for goods

movement applications. Expanding natural gas use in heavy duty vehicle market.

Natural Gas Research Small Grant Program Initiate a dedicated small grant program to identify and support innovative

and creative technologies and concepts across the full spectrum of natural gas research focus areas.

Provide entrepreneurs and researchers assistance in the commercial transition of their innovative natural gas technology.


Public Comments and Questions

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Submit additional written comments to: Nicole Dani ([email protected]) by 5:00 pm on January 31, 2017

Final draft to be submitted to the California Public Utilities Commission by March 31, 2017

Copies of presentations and public comments from today’s workshop will be posted at: http://www.energy.ca.gov/research/notices/index.html#XXX

Copies of past budget documents can be found at: http://www.energy.ca.gov/research/annual_reports.html

Closing Comments

Documents

FY 2017-18 Natural Gas Research Initiatives · 24/01/2017 · FY 2017-18 Natural Gas ... For the Natural Gas FY 2016-17 budget, the Energy ... • Continuing to explore measurement