Regulators voted Thursday to continue using the Aliso Canyon natural gas storage facility likely for the next decade, despite objection from activists and local residents who demanded a faster closure of the site of the largest methane leak. in American history.
The California Public Utilities Commission voted 4-0, with one abstention, in favor of a plan first presented Nov. 13 to develop a process to shut down the storage facility as demand for natural gas falls, as expected in the coming years.
The vote took place in San Francisco, where dozens of people protested outside. Nearly 80 people addressed the commission virtually or in person during a two-and-a-half-hour public comment period.
“This is not the same as the commission saying we don't care about the concerns of local residents,” said CPUC Commissioner John Reynolds. “It means, rather, that we are obliged to… fulfill our fundamental responsibility to ensure a safe, reliable and affordable public service.”
But that was little consolation to those who for years have pushed to close the Southern California Gas Co.-owned storage field in Porter Ranch, which caused a long leak in late 2015.
“You're hearing the angst that 'we waited 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, forcing more than 8,000 families to flee their homes. Many of those families complained of medical ailments, such as headaches, nosebleeds and nausea.
The proposal approved by the commission calls for moving forward with the potential closure of Aliso Canyon once Southern California natural gas demand declines to a point where peak demand can be met without the site.
“Aliso Canyon must be closed permanently, but without harming working families with skyrocketing utility bills,” Gov. Gavin Newsom said in a statement. “Reducing reliance on the facility has been slower than I would like, but the Public Service Commission, a constitutionally independent agency, has established a reasonable path that protects residents near the facility and does not add to the chaos in the natural gas market.
The commission said demand for natural gas is on a downward trajectory as the state continues to bring renewable energy sources online.
The commission proposes initiating procedures to review and potentially shut down the facility once projected peak demand two years from now declines to 4.121 million metric cubic feet per day, and a biennial assessment shows that doing so would not jeopardize gas reliability. natural nor its reasonable rates.
“We share the commission's and the governor's view that natural gas storage in Aliso Canyon is currently necessary to help keep customers' electric and gas bills low and for the reliability of the energy system,” the spokesperson said. SoCalGas, Chris Gilbride, in a statement Thursday.
The current peak demand forecast is 4.618 million metric cubic feet per day, and is expected to fall to 4.197 million in 2030, according to a fact sheet from the commission.
“We will only be able to responsibly close Aliso Canyon when demand for natural gas declines,” said commission chairwoman Alice Busching Reynolds.
Busching Reynolds said the first biennial assessment would take place in June. The approved proposal also allows for “incremental reductions” in the amount of gas stored in Aliso Canyon.
She struck an optimistic tone regarding gas usage projections, saying that “it is certainly possible that we will reach this goal faster than anticipated.”
However, even if California reaches the designated two-year benchmark, the proposal would not actually begin an immediate closure process. Instead, it would begin another evaluation on the possible closure and decommissioning of Aliso Canyon.
At a news conference two weeks ago, Stern estimated that Aliso Canyon would close in 2039 at the earliest, according to the commission's plan.
Stern was in San Francisco on Thursday and urged commissioners to postpone their decision until March 31. He said a regulatory investigation into possible market manipulation during gas price spikes that occurred in the 2022-2023 winter season would be complete by early next year. He said he believes the report will provide more information about Aliso Canyon and help evaluate whether the facility should be kept online to avoid future price increases.
Matt Pakucko, president of the advocacy group Save Porter Ranch, said he couldn't understand why the commission didn't move forward with an earlier proposal to begin Aliso Canyon's closure in 2022.
He told commissioners that the decision is not just an energy issue.
“The current biennial proposal puts costs and profits before the health and safety of Californians,” he said.
For now, natural gas use remains strong in California even though it is declining.
The US Energy Information Administration published a report That noted that 70% of California households used a gas stove in 2020, among the highest share of any state.
A California Energy Commission review also found that almost 37% of the state's electricity generation in 2023 it was natural gas.
