Regulators voted Thursday to keep the Aliso Canyon natural gas storage facility in use, possibly for the next decade, but local activists and residents demanding a speedy closure of the site of the largest methane leak in U.S. history objected.
The California Public Utilities Commission voted 4-0, with one abstention, in favor of a plan first proposed on Nov. 13 that would create a process to reduce gas demand as natural gas demand declines, as is expected in the coming years. , gradually closing storage facilities.
The vote took place in San Francisco, and dozens of people protested outside. Nearly 80 people addressed the committee virtually or in person during the 2.5 hours of public review.
“This is contrary to the commission saying we don’t care about the concerns of local residents,” said CPUC Commissioner John Reynolds. “Rather, it means we have an obligation … to fulfill our core responsibility to ensure safe, reliable and affordable utility service.”
But that’s little comfort to those who have pushed for years to close Southern California Gas Co.’s Porter Ranch oil storage field, which in late 2015 Prolonged leakage.
“You hear the pain of people saying, ‘We’ve been waiting nine years for this,'” said state Sen. Henry Stern (D-Calabasas).
The disaster spewed 109,000 tons of methane and other chemicals into the air and forced more than 8,000 families to leave their homes. Many of the families complained of medical ailments, including headaches, nosebleeds and nausea.
The proposal approved by the commission calls for potentially closing Aliso Canyon once demand for natural gas in Southern California drops to the point where peak demand can be met without the site.
“Aliso Canyon must be permanently closed without hurting working families with skyrocketing utility bills,” Gov. Gavin Newsom said in a statement. “Reducing reliance on this facility is more important than I would like.” Be slow, but the Public Utilities Commission — a constitutionally independent agency — has charted a reasonable path that would protect residents near the facility and not throw the natural gas market into chaos.
The commission said demand for natural gas is declining as the state continues to bring renewable energy sources online.
The committee recommends initiating a review process and possibly closing the facility once the two-year peak demand forecast drops to 4.121 billion cubic feet per day, and a biennial review shows that doing so would not jeopardize the reliability of the gas or reasonably rates.
“We agree with the commission and the governor that a natural gas storage facility in Aliso Canyon is currently necessary to help reduce customers’ electric and gas bills and energy system reliability,” SoCalGas spokesman Chris Gilbride said in a statement Thursday. .
The current peak demand forecast is 4.618 billion cubic feet per day, which is expected to fall to 4.197 billion cubic feet per day by 2030, according to the Commission Information Sheet.
“We can only responsibly close Aliso Canyon when demand for natural gas declines,” said Commission Chairwoman Alice Busching Reynolds.
Busching Reynolds said the first biennial review will take place in June. The approved proposal also allows for a “phased reduction” of natural gas storage in Aliso Canyon.
She was optimistic about natural gas use forecasts, saying “it’s certainly possible that we can get there sooner than forecast.”
However, the proposal would not actually initiate an immediate shutdown process even if California met the designated two-year benchmark. Instead, it will initiate another review of the possible closure and decommissioning of Aliso Canyon.
At a press conference two weeks ago, Stern estimated that Aliso Canyon could close as early as 2039 under the commission’s plan.
Stern was in San Francisco on Thursday, urging commissioners to delay the decision until March 31. He said he believed the report would provide more information about Aliso Canyon and help assess whether the facility must remain online to prevent future price spikes.
Matt Pakucko, president of the advocacy group Save Porter Ranch, said he doesn’t understand why the commission has not followed through on a previous proposal to close Aliso Canyon in 2022.
He told commissioners the decision was not just an energy issue.
“The current two-year proposal puts costs and profits ahead of the health and safety of Californians,” he said.
Currently, natural gas use in California, although declining, remains strong.
U.S. Energy Information Administration issued a report The report states that 70% of California households used gas furnaces in 2020, the highest proportion of any state.
A review by the California Energy Commission also found Accounts for nearly 37% of the state’s electricity generation 2023 from natural gas.
