Revised 10/2021 6/1/2022 10:58 AM
For information regarding this Agenda please contact:
Olivia Nashed
City Clerk
Telephone: (209) 333-6702
A. Call to Order / Roll Call
B. Topics
B-1 Hydrogen Pilot Project and Energy Market Conditions (EU)
C. Comments by Public on Non-Agenda Items
THE TIME ALLOWED PER NON -AGENDA ITEM FOR COMMENTS MADE BY THE PUBLIC IS LIMITED TO FIVE MINUTES.
Public comment may only be made on matters within the Lodi City Council's jurisdiction (Government Code Section 54954.3, Lodi City Council Protocol Manual Section 6.3l). The Council cannot take action or deliberate on items that are not on this agenda unless there is an emergency and the need t o take action on that emergency arose after this agenda was posted (Government Code Section 54954.2(b)(2)). All other items may only be referred for review to staff or placement on a future Council agenda.
If you wish to address the Council, please refer to the Notice at the beginning of this agenda. Individuals are limited to one appearance during this section of the Agenda.
D. Adjournment
Pursuant to Section 54954.2(a) of the Government Code of the State of California, this agenda was posted at least 72 hours in advance of the scheduled meeting at a public place freely accessible to the public 24 hours a day.
______________________________
Olivia Nashed
City Clerk
LODI CITY COUNCIL
Carnegie Forum
305 West Pine Street, Lodi
Notice Regarding Public Comments
Public Comment may be submitted in the following ways:
• In-person – The Carnegie Forum is open to the public in accordance with CDPH and CalOSHA guidelines.
• Zoom Webinar
Meeting ID: 872 2014 2274
Passcode: 401448
Phone number: +1 720 07 2699 or +1 253 215 8782
Link:
https://us06web.zoom.us/j/87220142274?pwd=dzYySXc2bTkvZ0ZFdlpMTkRZdW9XZz09 • Email – [email protected]
Received no later than 4:30 p.m. on the business day prior to the meeting. • Mail – City Clerk’s Office, P.O. Box 3006, Lodi, CA 95241 • Hand delivered to: City Clerk’s Office, 221 W. Pine Street, Lodi, CA 95240
AGENDA – Shirtsleeve Session
Date: June 7, 2022
Time: 7:00 a.m.
All staff reports or other written documentation relating to each item of business referred to on the agenda are on file in the Office of the City Clerk, located at 221 W. Pine Street, Lodi, and are available for public inspection. Agendas and staff reports are also posted on the City’s website at www.lodi.gov . If requested, the agenda shall be made available in appropriate alternative formats to persons with a disability, as required by Section 202 of the Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12132), and the federal rules and regulations adopted in implementation thereof. To make a request for disability-related modification or accommodation contact the City Clerk’s Office as soon as possible and at leas t 72 hours prior to the meeting date. Language interpreter requests must be received at least 72 hours in advance of the meeting to help ensure availability. Contact Olivia Nashed at (209) 333- 6702. Solicitudes de interpretación de idiomas deben ser recibi das por lo menos con 72 horas de anticipación a la reunión para ayudar a asegurar la disponibilidad. Llame a Olivia Nashed (209) 333-6702.
Meetings of the Lodi City Council are telecast on SJTV, Channel 26. The City of Lodi provides live and archived webcasts of regular City Council meetings. The webcasts can be found on the City's website at www.lodi.gov by clicking the meeting webcasts link.
Members of the public may view and listen to the open session of this teleconference meeting at www.facebook.com/CityofLodi/ or https://us06web.zoom.us/j/87220142274?pwd=dzYySXc2bTkvZ0ZFdlpMTkRZdW9XZz09.
AGENDA ITEM B-01
COUNCIL COMMUNICATION
APPR
OVED: ________________________________
Stephen Schwabauer, City Manager
AGENDA TITLE: Hydrogen Pilot Project and Energy Market Conditions M
EETING DATE: June 7, 2022
P
REPARED BY: Electric Utility Director
RE
COMMENDED ACTION: Receive report from Northern California Power Agency (NCPA) on Hydrogen Pilot Project and Energy Market Conditions.
B
ACKGROUND INFORMATION: Randy Howard, General Manager for NCPA has prepared a report on a Hydrogen Pilot Project and will provide additional information regarding current energy market conditions.
P
G&E, in partnership with NCPA, Siemens Energy, the City of Lodi, GHD Inc., and University of California at Riverside, is launching the nation’s most comprehensive end-to-end hydrogen study and demonstration facility, which will examine the future potential of the zero-carbon fuel hydrogen as a renewable energy source.
T
he dedicated 130-acre facility, to be located near White Slough, will allow for a controlled and safe study of hydrogen injection, storage, and combustion of different hydrogen blends in a variety of end uses. NCPA will use the blend at the Lodi Energy Center that adjoins the future PG&E facility.
M
r. Howard will provide an overview of the project, including the benefits to Lodi, as well as a general update on current energy market conditions.
F
ISCAL IMPACT: Not applicable.
F
UNDING AVAILABLE: Not applicable.
________________________________________
J eff Berkheimer
Electric Utility Director
Northern California Pacific H2ub
1 Key Benefits of Northern California Concept
• Existing infrastructure will accelerate project development (i.e., already permitted) and reduce overall costs
• Diversity of off-takers in one of the world’s largest economies • Leveraging abundant renewable energy resources that might be otherwise curtailed • Research and development components will help inform how to leverage existing natural gas system in future clean hydrogen economy
• CA leading in net-zero goals and serving Disadvantaged Communities 2 Key Locational Attributes Supporting Project Viability • Project is shovel ready
• Existing gas and electric infrastructure installed
• CAISO and federal transmission lines are already on-site • LEC Hydrogen Capable Turbine Installed
• Availability of on-site reclaimed water source to support electrolysis process • Central to major transit corridor
• Low density (rural) population
• Strong environmental support
• Existing union workforce with project expertise and highly-trained labor pool 3 Key Locational Attributes Supporting Project Viability 4 Project Concept
5 Facility Overview
Lodi Energy Center
• Advanced combined cycle
combustion turbine
• ~300MW
• Recently upgraded to
accommodate 45% blend
• On-site recycled water supply
• On-site HV transmission
interconnection
• Interconnection with PG&E
• Delivery for transportation
6 PG&E Hydrogen Pilot
7 Laboratory and
Workshop Facility
• Destructive and NDE
Materials Testing
• Workshop for Sample
Preparation
• Control Center and ‘Digital
Twin’ for Simulations
Full Scale Offline
Testing
• Equipment compatibility and
leak testing prior to long-term
on-line testing
• Pipe-in-Pipe Destructive
Testing
Full Scale Online
Testing
• Large Flow Loop in Isolated
Transmission System – 30%
H2 Blend
• Long-Term Testing - Various
Pipeline Components and
Materials
• Maintenance and Operator
Training on Live Equipment
Training and
Education Center
• Classrooms
• Training Areas
• Public Education Center
PG&E Integrated RD&D Program
8 Integrated RD&D Program
Research Roadmap Focus Areas
Goal:
Test the ability of safely converting existing transmission assets to a blended hydrogen-natural gas system
Operations and
Maintenance
Transmission Equipment
Focus to Inform
Standards Development
& Inspection Frequency
Integrity
Pipe & Welds, Fatigue &
Fracture, ILI & NDE,
Coatings and Cathodic
Protection
Gas Quality and
Measurement
Accuracy and
Performance, Long-Term
Equipment Stability,
Contaminant Detection
Fluid Hydraulics
Mixing, Thermodynamics,
Noise/Vibration/Stresses
Safety
Leak Dispersion,
Flammability and Ignition,
Venting & Plume
Dispersion
9 Questions and Discussion
10 Summer Readiness 2022
&
Market Conditions
Issues Facing Lodi in 2022
PSPS/Rolling Blackouts
Wildfire/Drought
Electrification
Decarbonization
Supply Chain/Inflation
Costs
Geopolitical Issues
Retirement of Gen
California Energy Policy
Among the most aggressive in the world
• 3700MW of natural gas plants scheduled for retirement in 2023 • 2280MW of nuclear generation scheduled for retirement in 2025 California projects a 1700MW shortage of
energy this summer!
• ≈ 12000MW of generation planned – not procured or built RPS Standards
Established in 2002, California’s Renewables Portfolio Standard (RPS) requires electricity providers to ensure that renewable energy constitutes a specified minimum portion of their electric load
2017
20%
2030
60%
2045
100%
2020
33%
36% Eligible Renewable
>55% Carbon Free
Lodi is committed to meet the State’s RPS
Requirements
State Requirements
Electrification
Adding load to an already taxed grid
California has 10% of the nations vehicles on the road
California boasts 40% of the nations zero-emission vehicles Gov. Newsom is advancing $10 billion for zero-emission vehicles Market Pressures – Drought
Market Pressures – Electric Forwards
Average FY23 power
prices are up 88%
August 2022 HL trading
at $160/MWh
Market Pressures – Gas Forwards
Budget Pressures – Transmission
Market Pressures – Inflation 8.3%, Energy 32% (BLS)
Market Pressures – Shrinking Supply
NCPA’s 10y forecast assumes a normal/average operating year; however NCPA adjusted forecasted Hydro generation down significantly Antelope 1B COD postponed due to Federal action on solar panels Western’s May 2022 BR forecast was 21% less than its April 2022 forecast for May 2022 and 8% less for June 2022
Lodi Energy Center (LEC) on outage through June 19th and derated for the balance of 2022 (at least) to ~225 MW
Supply chain issues canceling or postponing new projects Market Pressures – IOUs
Public Safety Power Shutoffs
• Public Safety Power Shutoff’s (PSPS)
• PG&E De-energizing to prevent wildfires
• During times of high wind events/storms
• Effects transmission and distribution
• Transmission lines shared by all utilities
• What has been done?
• PG&E – Extensive work
• PG&E – Re-rated lines for wind loading
• Lodi has wildfire mitigation program
What are Rolling Blackouts? – Flex Alerts
• CalISO – California Independent System Operator
• Manages flow of electricity on CA’s
transmission lines / dispatch generation
• Duck Curve
• 4pm-10pm – High load, solar declining
• Need “spinning reserves”
• City works hard to avoid impacting customers
• City load reduced first
• Plan, plan, plan
• You can help too… Use bulk of energy between
7am–3pm, conserving between 4pm-10pm
Rolling Blackouts used to
balance the grid when
load exceeds generation
Questions?