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CC 2019-08-13 Items Rec'd at Mtg.
�cvd // f1q ' 1--n9(?aho ', ) 7 MSoCalGas 2019 Clean Energy Roadmap A*Sempra Energy utility' u Reducing Emissions in the Gas Supply For the past several years, SoCalGas has researched the critical role renewable natural gas (RNG) needs to play in achieving California's environmental goals. We are taking positive steps to reduce greenhouse gas emissions in our gas supply, by displacing traditional fossil gas with RNG. Our vision is to become the cleanest natural gas utility in America, and we will deliver 5% renewable gas by 2022, and reach 20% renewable gas by 2030 delivered in our system. Delivering RNG to Customers In 2018, RNG produced from organic waste by CR&R Environmental Services in Riverside County started flowing into SoCalGas' pipelines to be used by CR&R's fleet. Additionally, the California Public Utilities Commission (CPUC) announced seven dairy projects, representing 45 dairies, will begin producing RNG for pipeline delivery. This year, we began receiving RNG from Calgren's dairy waste digester facility in the Central Valley. 2019 Clean Energy Roadmap SoCalGas has developed a 2019 roadmap to further reduce emissions in the gas supply. Our focus is on engaging state regulators and legislators to develop and implement policies that create positive results by: • Seeking a RNG procurement target, like the requirements for electric utilities to procure a set percentage of energy from renewables. • Submitting a CPUC filing to provide customers who would like to receive RNG the option of purchasing a portion of their gas from renewable sources. • Engaging in a building decarbonization proceeding to reinforce how RNG can help reduce greenhouse gas emissions from energy use in buildings. • Sponsoring a bill to have an independent third-party study the impacts on the pipeline system of using low- or zero-carbon hydrogen to displace traditional fossil gas. The bill would then direct the CPUC to implement standards for injecting hydrogen into the system, based on study findings. • Supporting a bill that would incentivize the use of RNG in buildings to reduce greenhouse gas emissions from space and water heating. More to Come The 2019 Roadmap is part of our strategy to help California meet its climate change goals and supports our vision to be the cleanest natural gas utility in North America. We look forward to working collaboratively with stakeholders to help advance a balanced energy approach to the future California energy system. We hope you will stay engaged on issues that may impact your community, your business or your constituents. SoCalGas remains committed to providing customers affordable, safe, reliable service with an increasing emphasis on renewable natural gas. California's Clean Energy Future In 2018 California set a bold goal to achieve carbon neutrality and 100 percent clean energy by 2045. No clear path exists today to get us to that goal. Currently, most of the conversation focuses on an electric generation system that uses solar, wind and batteries. However, those technologies cannot do it alone. To date, natural gas has played an important role in achieving California's clean air goals and reducing greenhouse gas (GHG) emissions. To achieve California's 2045 goals, an inclusive and balanced approach is needed — one that is technology-neutral and welcomes all ideas. To create a clean, affordable and sustainable energy future, three critical questions will need to be successfully answered: (13 icerib* Relisrii�l Affordaiii Consumer Behavior&Choice How will we store energy How do we keep energy How do we inspire when the sun isn't shining, affordable for all Californians? consumer adoption? or the wind isn't blowing? The total cost of reaching the 2045 The slow adoption of clean transportation Wind and solar don't provide a reliable, target, as well as the full implications options shows consumer adoption is a continuous power supply; often the power to California's consumers, is unknown. critical challenge to meeting our goals. is not available when needed the most. Success depends on using all To inspire consumers to reduce their California already produces excess solar technologies and resources that can help emissions, we must preserve consumer and wind energy that can't be used As we create a realistic and affordable pathway. choice and maintain energy options that increase the use of these resources,we We don't want to create an energy system are affordable and minimize disruption to will need to figure out long-term storage that deepens the state's affordability crisis, Californians. options to deliver energy when and where continues to widen income disparity, or people need it. has businesses leaving the state Natural gas will continue to play an Working together to advance important role in our sustainable California's energy goals. clean energy future by: Making California's vision a reality will take business leaders, non-governmental organizations, and policymakers working Reducing Waste together to re-imagine how California's energy infrastructure Using waste streams from our food, sewers and dairy can operate as an interconnected system that maximizes farms to create renewable natural gas(RNG) reduces GHG emissions reductions and minimizes waste. emissions that would otherwise go into the atmosphere. Utilizing Current Infrastructure Using technology to convert excess solar and wind energy into renewable gas that can be stored in our existing pipeline system and solve long-term storage challenges. Capturing and Using Carbon Capturing carbon dioxide(CO2)from industrial and manufacturing processes before it releases into the air and M SoCalGas using it to create solid carbon or RNG. A.Sempra Energy utility` ©2019 Southern California Gas Company All copyright and trademark rights reserved N19H0063A 0419