Intersection of Environmental Programs and Energy Reliability Objectives CFEE Roundtable Conference on State and Regional Energy Issues October 8-10, 2007

2 Programs: The Global Warming Solutions Act of 2006 (AB 32) State Water Resources Control Board’s Once-Through Cooling Program (OTC)

3 In Seven Minutes X 2  Why  What  Intersection with Reliability  Costs  Coordination

4 AB 32 – Why?

5 IMPACTS TO CALIFORNIA’S ENVIRONMENT FROM GLOBAL WARMING  Increased fire risk  Sea level rise  Loss of snow pack  Heat waves that threaten public health, worsen air pollution and threaten animal health (…)

6 IMPACTS TO CALIFORNIA’S ECONOMY FROM GLOBAL WARMING  Floods  Reduced water storage  Crop Loss  Impacts on tourism (…)

Executive Order Established Statewide GHG Targets By 2010, Reduce to 2000 Emission Levels By 2020, Reduce to 1990 Emission Levels By 2050, Reduce to 80% Below 1990 Levels

8 AB 32 – What?  Emissions Cap: Reduce GHG emissions to 1990 levels by 2020  Action

9 AB 32 – What? Action ProvisionDate Early Actions List7/07 Mandatory GHG reporting regulation 1/08 GHG reduction scoping plan1/09 Early action measures adopted1/10 Plan implemented1/11

10 AB 32 – Intersection with Reliability

11 AB 32 – Costs/Economic Impacts  Early in Process  2006 Climate Action Team Report  Updated Macroeconomic Analysis – Fall 2007.

12 AB 32 – Coordination?  Unprecedented

13

14 SWRCB Once-Through Cooling Program (OTC)

15 OTC – Why?

16 (modified from Raimondi) (> 3/8 inch)

17 Impacts from Once-through Cooling  Impingement in intakes: adult fish and other large organisms, including (e.g., turtles)  Entrainment through the plant: larval fish and other plankton, 100% mortality

18 Impinged fishEntrainment: fish larvae Traveling (intake) screenImpinged organism disposal

19 OTC – What?  Federal and State Law - Section 316(b) CWA  Federal Regulation - 40 CRF (b)  State Policy (ETA: June 2008)

20 OTC – What?  Permitting authorities must develop case-by-case best professional judgment controls for existing facility cooling water intake structures that reflect the best technology available for minimizing environmental impact [40 CFR (b)]

21 OTC – Intersection w/Reliability Humboldt Bay, RB1 Contra Costa, RB5 Pittsburg, RB2 Hunter’s Point, RB2 Potrero, RB2 Moss Landing, RB3 Morro Bay, RB3 Diablo Canyon, RB3 Alamitos, RB4 El Segundo, RB4 Harbor, RB4 Haynes, RB4 Long Beach, RB4 Mandalay, RB4 Ormond, RB4 Redondo, RB4 Scattergood, RB4 Huntington, RB8 Encina, RB9 San Onofre, RB9 South Bay, RB9

22 Existing Coastal Power Plants 19 active plants with approximately 16 billion gallons per day sent through the once- through cooling water systems.

23 OTC – Costs?  Will depend upon approach taken by the State Board  State Board welcomes constructive input  Make sure they are aware of plant-specific facts

24 OTC - Coordination  State Board and ISO  State Board and CEC/PUC  State Board and Stakeholders  Understanding that rollout schedule must take into account reliability

Intersection of Environmental Programs and Energy Reliability Objectives CFEE Roundtable Conference on State and Regional Energy Issues October 8-10, 2007