Summer Gas Formula Means Higher Prices for Consumers
Southern California has switched to a summer gasoline formula. Northern California will start its switch in March. Usually that means consumers can anticipate a small increase in gas prices.
California motorists have been enjoying declining gasoline prices over the last five weeks with the average price of regular grade gasoline down by 57.5 cents per gallon between January 7 and February 25. But, the advent of warmer weather has ushered in an annual rite of spring: the switch from a winter to a summer gasoline recipe.
In the summer, refiners eliminate some ingredients in the gasoline, like butane, to keep polluting emissions low and prevent vapor lock that can stall engines and prevent restarting. Click here to learn more about how gasoline is refined.
The reduction of blending components in the summer reduces the supply of California’s blend of gas by 5 to 8 percent and increases production costs. So it is no surprise that gasoline prices have recently rebounded from an average low of $2.30 cents per gallon on February 25 to $2.39 cents per gallon on February 29, an increase of almost 9 cents per gallon. Driving increases this time of year as do prices. Refiners usually operate at higher levels and draw down their inventories to help meet this seasonal increase in demand.
But, there’s good news, according to Gordon Schremp, senior fuel specialist at the California Energy Commission. This year there may be fewer refinery problems. California recently completed an extraordinary amount of maintenance and repairs, which caused supplies and inventory to drop and prices to rise. ExxonMobil is planning to repair pollution equipment to restart its gas production at Torrance refinery. Once that is done, possibly in April, about 10 percent of the state’s gasoline supply should be restored.
What’s that mean for prices? Californians may see prices drift down again and level off.
California is not the only state that switches to a summer gasoline formula. All states change to a different formula that depends on the regulations in each state. But, California is the first state in the nation to make the switch and the last state to transition back to the winter formula in early November.
Petroleum prices have fluctuated for years. The Energy Commission is helping to fund advanced technology that will enable Californians to switch to alternative, less polluting fuels and energy that may offer more stable prices.
Creativity Brings Out Campus-Wide Approaches to Save Energy and Water
What would you come up with if the sky was the limit when updating a facility to save energy and water? That was the question the Division of the State Architect asked seven architectural firms looking at seven prototypical schools around the state.
The conceptual designs were unveiled this week in Sacramento. The message to attendees was that schools could implement many features that could help improve students’ learning environments.
The initiative, dubbed 7x7x7: Design, Energy, Water, was to start a conversation to reimagine how schools can be renovated to both enhance the learning environment and eventually meet zero net energy and carbon neutral goals for future California students.
The schools represented typical campuses constructed in different eras. Facilities ranged from urban to suburban and elementary to community college campuses. Many designs employed natural light by upgrading or enlarging windows and adding skylights. Other unique features were water harvesting, renewable energy generation, grey water systems, and changes to campus systems and façades.
As a partner, the California Energy Commission completed the energy assessments for each campus. Architects used the baseline energy use data as a starting point to measure projected reduced energy and water use.
The 7x7x7: Design, Energy, Water initiative was an exercise in creativity, but schools do have access to money to save energy. Through the California Clean Energy Jobs Act, also known as Proposition 39, schools can apply for state funding for building-performance improvements. The money can be used to update systems and help improve the learning environment on school campuses.
Energy Commission Funds All-Electric Delivery Vans
Bit by bit California is transforming its fleets of diesel trucks to non-polluting vehicles, with a little help from the California Energy Commission.
The Energy Commission provided $1.7 million to help fund six all-electric delivery vans built with powertrains by Motiv Power Systems on existing Ford chassis.
The step-in vans, unveiled a week ago, will replace polluting diesel trucks used by AmeriPride, an international uniform and linens delivery service company. The initial six vans can travel 100 miles per day, about half of the miles they will travel in 10-hour shifts from AmeriPride’s facility in Vernon, a community challenged by poor air quality.
AmeriPride has ordered four more of Motiv’s all-electric vans to expand its alternative fuel program in the Southern California community.
“Zero-emission vehicles, like the ones AmeriPride is introducing into its fleet, can help California meet its clean air standards and reduce greenhouse gas emissions in communities like Vernon, which is especially challenged by pollution,” said Energy Commissioner Janea A. Scott.
Funds for the project were approved through the Energy Commission’s Alternative and Renewable Fuel and Vehicle Technology Program, which supports new technology for a non-polluting world.
Energy Commission Workshop Explains Funding Programs to Diverse Business Enterprises
The California Energy Commission will hold a public workshop on February 26 in Sacramento to help women, minority, disabled veteran and LGBT business enterprises learn how to participate in funding opportunities.
Energy Commissioner Janea Scott, Public Adviser Alana Mathews and Energy Commission staff will help participants in the Empower California Workshop learn about the Energy Commission’s clean energy grant and loan programs, how to apply for funding opportunities and how to successfully collaborate with other applicants on proposals.
The Energy Commission’s funding opportunities play an important role in helping California meet its energy and greenhouse gas reduction goals. Each year, millions of dollars in grants and loans are awarded for projects that:
- Protect the air and water
- Make energy safer, cheaper and more efficient
- Change the way we think about transportation
- Challenge public entities and educational institutions to find new ways to save energy
The Energy Commission, through the backing of Assembly Bill 865, is committed to increasing diversity in the energy sector. During the workshop, participants will have an opportunity to provide input on the composition and selection process for a new Diversity Task Force that is being formed.
The Empower California Workshop is scheduled to run from 9 a.m. to noon at the Warren-Alquist Energy Building, 1516 Ninth Street, Sacramento.
More information and directions for participating remotely are available in the workshop notice.
Energy Commission Partners with Mexico, Imperial Valley on Clean Energy Workshop
More than 100 representatives from the energy community participated in a workshop near the California-Mexico border to discuss opportunities to invest in clean and renewable energy projects on both sides of the border and to share information and best practices.
The California Energy Commission hosted the workshop, which was held February 18 and February 19 in the Imperial Valley. The Energy Commission organized the event in partnership with the Mexican Ministry of Energy (SENER), UC-Mexico Initiative, Imperial Valley Irrigation District, Imperial Valley Development Corporation, and the Energy Foundation.
Regulators and energy professionals from both sides of the border explored strategies to increase the deployment of clean and renewable energy projects in the border region. They also learned about the main policy drivers encouraging clean and renewable energy development and discussed how incentives and financing mechanisms can support such development.
In addition to presentations, participants visited renewable energy projects in the region including the Tenaska Imperial Solar Energy Center near El Centro, the Ormat Geothermal Plant in Heber and the Ocotillo wind facility in Imperial Valley.
“This was an excellent workshop,” said Energy Commission Chair Robert Weisenmiller. “It provided opportunities for stakeholders from both countries to engage in a dialogue and continue to strengthen partnerships that will help move California and Mexico closer to a sustainable, reliable, clean-energy future.”
In the effort to reduce greenhouse gas emissions, California plans to get 50 percent of its electricity from renewable sources by 2030. Currently, California receives 25 percent of its electricity from renewable sources.
Energy Commission Workshops Examine Feasibility of Heavy Duty Natural Gas-Powered Off-Road Vehicles
The California Energy Commission will hold public workshops to gather comments on the development and demonstration of advanced natural gas engines and engine technologies for off-road vehicles that support the construction, industrial and cargo handling market sector.
Representatives from the Energy Commission, the off-road vehicle (ORV) industry and community will discuss the current market, advanced technology needs and the market potential for natural gas-powered ORVs suitable for heavy-hauling such as those used for waste transport, mining and semi-tractor trailer applications and at ports such as yard tractors and crane transports. The Energy Commission will also examine clean engine technology for recreational ORVs.
The workshops are scheduled for February 19 in Long Beach and February 22 in Fresno. Two of the state's most severely polluted regions are the San Joaquin Valley and the South Coast Air Basins. ORVs are one of the largest sources of nitrogen oxides emissions in those areas. Later this year, the Energy Commission will release a grant solicitation aimed at applying cleaner engine technologies developed for on-road natural gas vehicles to ORVs.
The Long Beach workshop is scheduled for 10 a.m. to noon at the Long Beach City Hall City Council Chambers, 333 W Ocean Blvd.
The Fresno workshop is scheduled from 2 p.m. to 4 p.m. at the San Joaquin Valley Air Pollution Control District’s Fresno Office, 1990 E. Gettysburg Ave. The Fresno workshop can also be viewed remotely at the district’s Bakersfield office, 34946 Flyover Court, and its Modesto office, 4800 Enterprise Way.
More information and instructions for participating remotely can be found in the workshop notice.
Energy Commission Adopts Key Energy Policy Report
The California Energy Commission has adopted its biennial report on energy issues facing the state.
The 2015 Integrated Energy Policy Report (IEPR), which was adopted at the February 10 business meeting, assesses major energy trends and issues and provides policy recommendations. This year's edition covers a broad range of topics including the continuing need to improve the energy efficiency of buildings and appliances, decarbonizing the electricity sector and reducing greenhouse gas emissions 40 percent below 1990 levels by 2030.
The report provides a 10-year forecast of electricity consumption and peak demand. It finds projected electricity consumption to be slightly lower than past projections because of declining consumption and higher projections for self-generation, mostly from photovoltaic systems. The report also projects higher natural gas demand, but less natural gas to be used for electricity generation.
The report forecasts transportation energy demand for the next 10 years and provides updates on the electricity infrastructure in Southern California, the status of California's nuclear plants, and trends in crude oil production and transport.
The Energy Commission is responsible for preparing the IEPR, which provides a comprehensive integrated approach to solving the state's energy needs and issues, every two years and the IEPR Update in the intervening year. Among the energy trends and issues included are integrated assessments, analyses and forecasts of California’s energy industry supply, production, transportation, delivery and distribution, demand, and prices. The Energy Commission uses the assessments and forecasts to develop policies that conserve resources, protect the environment, ensure energy reliability, enhance the state’s economy, and protect public health and safety.
Once adopted, the IEPR is submitted to the Governor and Legislature. Policy recommendations in the IEPR inform energy policy decisions that the Governor, Legislature and other state agencies make.
California’s Push For Clean Energy Is Paying Off
By David Hochschild and Matthew Freedman
This week, the Supreme Court made the unfortunate decision to temporarily block President Barack Obama's clean-energy plan. Many of the arguments made against it have also been made against California's clean energy policies.
The state's new landmark clean-energy law took effect this month, ensuring that at least 50 percent of the electricity powering our state comes from renewable sources such as solar, wind and geothermal by 2030. This policy strengthens California’s position as a global leader on clean energy and flips the script to make renewable energy “mainstream” and fossil fuels the “alternative.”
Since California first established clean-energy requirements 15 years ago, critics have argued that, in addition to being unachievable, aggressive renewable energy goals would destabilize the power grid, eliminate jobs and hurt ratepayers.
Today, California produces more renewable energy than any other state in the nation and the major utilities are on track to meet and exceed their targets in the coming years. We are now in a good position to evaluate these claims.
The verdict on grid stability and jobs is clear. California has not had rolling blackouts caused by renewable energy and maintains a healthy surplus of reserves to meet peak electricity demand. As for the economy, since 2010, California’s unemployment rate has been cut in half while the amount of renewable energy produced has nearly doubled. More Californians now work in the renewable energy industry than at all 46 of the state's public and private electric utilities combined.
This is an excerpt from commentary that was originally published in The Sacramento Bee on February 11, 2016. Read the full commentary here.
David Hochschild is a commissioner at the California Energy Commission. Matthew Freedman is a staff attorney at TURN, an independent ratepayer advocacy group.
This week, the Supreme Court made the unfortunate decision to temporarily block President Barack Obama's clean-energy plan. Many of the arguments made against it have also been made against California's clean energy policies.
The state's new landmark clean-energy law took effect this month, ensuring that at least 50 percent of the electricity powering our state comes from renewable sources such as solar, wind and geothermal by 2030. This policy strengthens California’s position as a global leader on clean energy and flips the script to make renewable energy “mainstream” and fossil fuels the “alternative.”
Since California first established clean-energy requirements 15 years ago, critics have argued that, in addition to being unachievable, aggressive renewable energy goals would destabilize the power grid, eliminate jobs and hurt ratepayers.
Today, California produces more renewable energy than any other state in the nation and the major utilities are on track to meet and exceed their targets in the coming years. We are now in a good position to evaluate these claims.
The verdict on grid stability and jobs is clear. California has not had rolling blackouts caused by renewable energy and maintains a healthy surplus of reserves to meet peak electricity demand. As for the economy, since 2010, California’s unemployment rate has been cut in half while the amount of renewable energy produced has nearly doubled. More Californians now work in the renewable energy industry than at all 46 of the state's public and private electric utilities combined.
This is an excerpt from commentary that was originally published in The Sacramento Bee on February 11, 2016. Read the full commentary here.
David Hochschild is a commissioner at the California Energy Commission. Matthew Freedman is a staff attorney at TURN, an independent ratepayer advocacy group.
Energy Efficiency Projects Reap Multiple Benefits
Schools teach students to think ahead to solve problems in hopes that they take that knowledge to become successful adults. Santa Ana Unified School District administrators took a page out of those lesson books when they turned their attention to energy efficiency measures.
In 2012, voters had passed the Clean Energy Jobs Act, or Proposition 39, to close a tax loophole and reallocate those funds toward schools for energy efficiency projects. Santa Ana Unified officials began plans to upgrade outdated energy systems with the goal to save energy costs, money, and improve classroom lighting and air quality.
It took about a year to audit how the district was using energy and where to maximize the investments and savings. For the first of five years of funding, the district chose to replace old heating and air conditioning systems at three elementary schools. One site was in such poor condition that staff was adding Freon to units almost every day for several months. The new, code-compliant units will save utility and maintenance costs, but also improve the air quality.
Santa Ana Unified, which is the seventh largest in the state, submitted an application for $1.6 million in Proposition 39 funding using the California Energy Commission’s on-line system. The funding was used to clean and seal leaky ducts, install controls, replace seven multi-zone units and 31 efficient all-in-one heating and air conditioning package units. The result is a better learning environment for more than 1,800 students at Harvey, Kennedy, and Monte Vista elementary schools.
The district’s early planning and successful Proposition 39 application meant these energy projects were completed in 2014. The district saved an estimated $90,000 in energy costs in the year after projects were installed, according to the final project report filed with the Energy Commission.
District officials reaped immediate financial and environmental benefits from Proposition 39. For their second-year funds, the district has already installed efficiency measures at 10 school sites. They are working on applications for subsequent years.
To see the list of approved Energy Expenditure Plans by district, visit the Energy Commission’s Proposition 39 (K-12) program webpage and click on Expenditure Plans Listing.
In 2012, voters had passed the Clean Energy Jobs Act, or Proposition 39, to close a tax loophole and reallocate those funds toward schools for energy efficiency projects. Santa Ana Unified officials began plans to upgrade outdated energy systems with the goal to save energy costs, money, and improve classroom lighting and air quality.
Multi-zone heating and
air conditioning units at Monte Vista Elementary before (top) the upgrade and
after (bottom).
|
It took about a year to audit how the district was using energy and where to maximize the investments and savings. For the first of five years of funding, the district chose to replace old heating and air conditioning systems at three elementary schools. One site was in such poor condition that staff was adding Freon to units almost every day for several months. The new, code-compliant units will save utility and maintenance costs, but also improve the air quality.
Santa Ana Unified, which is the seventh largest in the state, submitted an application for $1.6 million in Proposition 39 funding using the California Energy Commission’s on-line system. The funding was used to clean and seal leaky ducts, install controls, replace seven multi-zone units and 31 efficient all-in-one heating and air conditioning package units. The result is a better learning environment for more than 1,800 students at Harvey, Kennedy, and Monte Vista elementary schools.
The district’s early planning and successful Proposition 39 application meant these energy projects were completed in 2014. The district saved an estimated $90,000 in energy costs in the year after projects were installed, according to the final project report filed with the Energy Commission.
District officials reaped immediate financial and environmental benefits from Proposition 39. For their second-year funds, the district has already installed efficiency measures at 10 school sites. They are working on applications for subsequent years.
To see the list of approved Energy Expenditure Plans by district, visit the Energy Commission’s Proposition 39 (K-12) program webpage and click on Expenditure Plans Listing.
Energy Commission Grant Helps Airline Kitchen Land Big Energy Savings
As the state's primary energy policy and planning agency, it’s not unusual for the California Energy Commission to have its fingers in many pots including the ones used to prepare meals for airline passengers flying out of Los Angeles International Airport (LAX).
The Energy Commission awarded a $900,000 Building Natural Gas Technology grant in 2014 to Fisher-Nickel, Inc. The project's goal was to demonstrate to the commercial food service community the business value of replacing standard cooking equipment with energy efficient items that improve cooking performance and significantly reduce energy costs.
A year later, Fisher-Nickel began setting up demonstration projects in the kitchen of a popular restaurant in San Diego, a large national hotel in Pleasanton, and a dining hall at an University of California campus. The company also partnered with Southern California Gas Co. for a demonstration project at the LAX kitchen of Gate Gourmet, a Swiss company that provides global airline catering services. As many as 32,000 meals per day are prepared at the LAX facility for passengers on domestic and international flights
One of the first things that Fisher-Nickel did at the Gate Gourmet was replace a 60-gallon steam kettle that has an annual operating cost of $5,000 with a large steamer that cost less than $1,000 a year to operate.
The company also replaced a conventional broiler with a conveyor-type broiler, a single oven with a double-stack convection oven, and a six-burner range with a four-burner model. Topping it off was new energy efficient cookware. In all, the new equipment is expected to reduce annual natural gas use by more than 9,100 therms – that’s equivalent to what 60 average California home kitchens would use in a year.
The LAX demonstration is scheduled to wrap up in mid-February. The other demonstrations will be completed in 2017. Fisher-Nickel will present the results from the demonstration projects to the Energy Commission.
If successful, the demonstrations could become a model for the industry. With more than 93,000 commercial food service facilities in the state, that would be a big pot of savings, not to mention, a significant reduction in natural gas use.