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Contents POWER

Building A Better Board

The State Water Resources Control Board is big, busy, and its ripples are widely felt

WATER

Energy Storage Evolution

POU leaders weigh costs, beneﬁts and performance

18 POWER PLAYER

A Tech Transition

22 DEPARTMENTS:

Joaquin Esquivel is optimistic that modernized systems and data will improve the State Water Resources Control Board’s eﬀectiveness.

California Municipal Utilities Association Executive Director Barry Moline Communications Manager Matt Williams Director for Water Danielle Blacet Legislative Director for Energy Patrick Welch Regulatory Advocate Jonathan Young Event & Membership Manager Christine Chapman Office Manager Teresa Rexrode COPYRIGHT All editorial and advertising contents are ©2019 by Ruralite Services,Inc. Reproduction or use in any form of editorial, news, photo or advertising content in whole or part without permission of Ruralite Services, Inc. is prohibited.

Ruralite Services, Inc. CEO Michael Shepard Editor Leon Espinoza Assistant Editors Jennifer Brown, Brandon Pomrenke Graphic Designer Duy Mai Communications and Marketing Director Kathi VanderZanden Display Advertising Inquiries American MainStreet Publications 611 S. Congress Ave., Suite 504 Austin, TX 78704 800-626-1181 or 512-441-5200

CALIFORNIA WATER & POWER IS A PUBLICATION OF CMUA IN ASSOCIATION WITH RURALITE SERVICES INC.

WINTER 2019 CALIFORNIA WATER & POWER 3

FirstWord

Getting Serious About Wildfires

T FROM THE EXECUTIVE DIRECTOR BARRY MOLINE

here’s no question that everyone believes we need to take action to mitigate wildfires. The tragic and unprecedented loss of life and property in Paradise—and in other major fires across California a few months ago—make it clear that urgent measures are needed. The question is, what actions are the most effective, and how fast can they be implemented? I’m encouraged we can find effective solutions because I’ve seen firsthand how

a community can come together in the face of an overwhelming disaster. When I was in Florida, the state was hit by seven hurricanes in the span of 15 months during 2005-06. Few were prepared, and nearly everyone involved did a mediocre job of hardening their homes, businesses and infrastructure against the next hurricane. It was only when everyone collectively admitted they needed to improve across the board that they began to make headway together. Things began to change only when all involved—including local government, police, fire, utilities, state emergency response, the federal

government and individuals—took on the responsibility to improve. Florida is now a well-oiled machine of preparedness and response. Here in California, we are in a similar predicament. We’re behind the curve, without a clear plan to minimize wildfire. Certainly, there are ideas. We took the first step toward action in 2018 when the state Legislature passed Senate Bill 901 requiring more wildfire mitigation planning and action. However, we are not yet in a position of coordination or even fully comprehending the magnitude of the problem and/or the most effective actions to reduce fire and the resulting damage. What we hear in the news is that extreme wildfires are the new normal and a consequence of climate change. It’s hotter and drier. Trees are dying and are perfect kindling. Any kind of spark can cause a devastating inferno, from a trailer by the side of the road, a campfire in the wilderness or a utility line in high winds. Plenty of fingers are being pointed. Some want to focus attention solely on a few utilities, but that’s just a fraction of fire ignition. Other significant factors include California’s and the federal government’s restrictive logging and timber harvesting rules, which they say have turned the forest into a giant tinderbox. Still others lament a lack of firefighter resources that make rapid response in remote areas nearly impossible, which allows small fires to quickly grow large and unmanageable. This blame game could go on and on. The hard truth is that we must come together to find

answers to many complicated, vexing questions. Should cities and counties approve permits for buildings in the wildland-urban interface? Why can’t we notify residents in time to safely evacuate when a fatal fire is headed their way? How can we quickly find adequate housing for those suddenly put on the streets? With one of the state’s biggest environmental goals being carbon emission reduction to reduce the impact of climate change, how can we continue to accept the huge carbon emissions from California wildfires, which annually on average are eight times larger than the emissions avoided from all the state’s clean energy investments? More than anything, we need leadership. This is a multifaceted problem, and we must act quickly and effectively. We need leaders across the state, in every element of mitigation and response, to come together and discuss openly what’s needed to reduce the fire threat and get our communities ready to evacuate, respond and house displaced residents if needed. The road ahead is daunting, and we must start immediately. We can’t worry about what we haven’t done or that acting now is somehow too late. Wildfires will continue, and they won’t wait for us. We need to simply begin where we are. The impacts are huge, and the stakes are high. Community-owned water and power agencies are ready to do their part to engage in this major effort to protect our residents. CWP

WE NEED TO SIMPLY BEGIN WHERE WE ARE.

Photo by iStock.com/FrozenShutter

4 CALIFORNIA WATER & POWER WINTER 2019

WINTER 2019 CALIFORNIA WATER & POWER 5

FirstWord

Getting Serious About Wildfires

T FROM THE EXECUTIVE DIRECTOR BARRY MOLINE

WE NEED TO SIMPLY BEGIN WHERE WE ARE.

Photo by iStock.com/FrozenShutter

4 CALIFORNIA WATER & POWER WINTER 2019

WINTER 2019 CALIFORNIA WATER & POWER 5

Building A Better

Board T

quality controlboards, boards,which whichcan can quality control elevate issuesto tothe thestate statelevel levelwhen when elevate issues the boarddeems deemsnecessary. necessary. the board As aa whole, whole, it’s the As it’s not not surprising surprising the State WaterBoard Boardsometimes sometimesisisa a State Water target of discontent. discontent.Debate Debateabout about target of thethe board’s mission, mission, role role and andpriorities priorities board’s won’t stop anytimesoon, soon,ififever, ever, and and won’t stop anytime opinions vary widely widely about aboutits itsoverall overall opinions vary eff ectiveness. There Thereare arethree threefocus focus effectiveness. areas thatcould couldresult resultininpositive positive areas that changes for the theboard boardand andthe themany many changes for entities regulates. entities ititregulates.

By Matt Williams

The State Water Resources Control Board is big, busy, and its ripples are widely felt

he State Water Resources Control Board (SWRCB) is, by any measure, a big organization with a lofty mission: “To preserve, enhance and restore the quality of California’s water resources and drinking water for the protection of the environment, public health and all beneficial uses, and to ensure proper water resource allocation and efficient use, for the benefit of present and future generations.” But the reality is the State Water Board is likely better known for a lot of unglamorous regulatory work. The board’s various divisions issue permits for wastewater and stormwater discharges; administer surface water and groundwater rights; enforce laws and regulations pertaining to California’s waterways; provide loans and grants for water facilities; and, as of five years ago, regulate public drinking water systems. Besides those many functions, the State Water Board is tasked with debating, deciding and permitting many of California’s most complicated and contentious water issues, such as Bay Delta flows, safe and affordable drinking water and the California WaterFix project. This list of responsibilities also includes oversight and coordination with the state’s nine regional, semi-autonomous water

EILEEN SOBECK

6 CALIFORNIA WATER & POWER WINTER 2019

JONATHAN YOUNG

ROBERT GORE

Coordinate andcommunicate communicate Coordinate and Robert Gore, a regulatory adviser at the Gualco Group in Sacramento, has seen the State Water Board change during his 40-year career. Gore said SWRCB has become much more focused on groundwater quality than it used to be and is dealing with several regulatory regimes—water recharge, water recycling, “Waters of the State” and others—all at once. “To drag itself into the 21st century, the Water Board needs to have a true management analytics program,” Gore said. “None of its databases are integrated, and they don’t communicate with the Department of Water Resources or the Department of Conservation. No one can make these complex decisions because there is not near real-time information.” The data problem in California remains largely unaddressed, Gore said, even though other states have proved it can be done by launching water analytics programs of their own. State Water Board Member Joaquin Esquivel said one of his

Water Boards

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priorities as the board’s public member is to support efforts that will fix the board’s computers and data systems. [See interview with Esquivel on page 22] “It is going to be incredibly important that we do so because we'll never have enough staff to do everything that we want,” Esquivel said. “We will have to continue to learn how to oﬄoad what are repetitive tasks that are better suited for data systems to free up our human capital.” The Water Board and the California Department of Water Resources are convening a working group to hash out the data systems. It’s not just a technology issue at SWRCB, Gore said. In his experience, staff working for the board’s different divisions sometimes don’t talk with one another, or they don’t know what

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other parts of the organization are doing. “The issue becomes the overall coordination and coherence,” Gore said. “The regulated community— CMUA’s members in particular— would benefit if there was a continuing management effort to coordinate the SWRCB’s divisions and remove duplication and needless overlays.” Maintain continuity There is a line of thinking that the State Water Board might be taking on too much with so many areas of oversight and could be better off splitting up or oﬄoading some functions to other state agencies. Shortly after being named the board’s executive director in late 2017, Eileen Sobeck acknowledged her organization has a lot going on.

WINTER 2019 CALIFORNIA WATER & POWER 7

Building A Better

Board T

By Matt Williams

The State Water Resources Control Board is big, busy, and its ripples are widely felt

EILEEN SOBECK

6 CALIFORNIA WATER & POWER WINTER 2019

JONATHAN YOUNG

ROBERT GORE

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Semi-autonomous Regional Water Control Boards.

Full-time board positions: civil engineer, professional engineer, water quality expert, attorney member/water rights expert and public member.

1967 State Water Board is established.

2,200

BY THE NUMBERS The State Water Resources Board formed in 1967 to"preserve, enhance and restore the quality of California’s water resources and drinking water for the protection of the environment, public health and all beneficial uses, and to ensure proper water resource allocation and efficient use, for the benefit of present and future generations.”

$1.1 BILLION

Employees

2018-2019 Budget

“This [Brown] administration, as I’m finding out quickly, has been a very active administration in the water world, and has made a lot of demands on the board, and put a lot on the board’s plate—and I think the State Water Board chaired by Felicia Marcus has really stepped up,” she said. A year ago, Sobeck said the board has a laundry list of priorities, such as guidance for water system consolidations, permanent regulations for water conservation, procedures for dredge-and-fill, aquatic toxicity provisions and statewide standards for bacterial water quality. To get a better picture of these priorities, one must look at the voluminous executive director’s reports that accompany monthly board meetings. “We’re not talking about the longterm horizon,” Sobeck said. “We’re talking about what the State Board hopes to address in the next year or 8 CALIFORNIA WATER & POWER WINTER 2019

18 months.” With Gov. Gavin Newsom taking office, the Water Board will be in transition again. There are bound to be staff vacancies and a new round of priority setting. “We expect the new administration will review the board’s major regulatory proceedings and want to apply their own stamp on the issues prior to moving forward, and there are a lot of moving parts to consider,” said CMUA Regulatory Advocate Jonathan Young. “It’s unclear at this point if the board’s direction will change much, at least in the short term.” Despite the challenges, those who CMUA interviewed said the board would be better off staying the course and focus on putting its expansive organization to better use. Changing the board’s structure significantly might only exacerbate some problems. “What they need most is to

make a significant, concerted effort to coordinate all these emerging regulatory regimes and understand, truly, what the impact of their regulations are by getting out of their cubicles and into the field,” Gore said. Similarly, Esquivel said he hears the criticisms and understands the board moves slower than some people would like, and is dealing right now with a backlog of water rights permits. But he also sees little or no value in changing the board’s overarching structure. If anything, Esquivel said he’s heard good things since the Brown Administration moved the state’s drinking water program from the Department of Public Health to State Water Board in 2014. “I do not see any example anywhere else where spreading authority, and ability to manage water across even more entities, will actually help us really get anything done,” Esquivel said.

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"MY PURPOSE IS NOT TO EVISCERATE REGULATORY AGENCIES, BUT TO RESTORE ACCOUNTABILITY AND FLEXIBILITY TO THEIR ACTIONS” —ASSEMBLYMEMBER ADAM GRAY, D-MERCED

Water Board Strategic Goals 1. Implement strategies to fully support the beneficial uses for all 2006-listed water bodies by 2030. 2. Improve and protect groundwater quality in high-use basins by 2030. 3. Increase sustainable local water supplies available for meeting existing and future beneficial uses by about 1.7 million acre-feet per year, in excess of 2002 levels, by 2015, and ensure adequate flows for fish and wildlife habitat. 4. Comprehensively address waterquality protection and restoration, and the relationship between water supply and water quality, and describe the connections between water quality, water quantity and climate change throughout California’s water planning processes. 5. Improve transparency and accountability by ensuring Water Board goals and actions are clear and accessible by demonstrating and explaining results achieved with respect to the goals and resources available, by enhancing and improving accessibility of data and information, and by encouraging the creation of organizations or cooperative agreements that advance this goal, such as establishment of a statewide water data institute. 6. Enhance consistency across the water boards on an ongoing basis to ensure our processes are effective, efficient and predictable, and to promote fair and equitable application of laws, regulations, policies and procedures. 7. Ensure water boards have access to information and expertise, including employees with appropriate knowledge and skills, needed to effectively and efficiently carry out the Water Boards’ mission.

Source: waterboards.ca.gov

10 CALIFORNIA WATER & POWER WINTER 2019

Build more trust Criticism of the State Water Board from some stakeholders isn’t new and it isn’t likely to go away. A 2011 survey by the Public Policy Institute of California found that the nearly one-fifth of respondents “singled out the ineffectiveness of the SWRCB” as a long-term problem in state water management and described the agency as “redundant, inconsistent, archaic or otherwise dysfunctional.” Frustrations with operation of the Water Board have even extended to the Legislature. Assemblymember Adam Gray, D-Merced, introduced AB 313 (2017), which sought to move authority and enforcement over water rights from the State Water Resources Control Board to a new Water Rights Division in the Office of Administrative Hearings. The bill passed through the Legislature but was ultimately vetoed by Gov. Brown. In his veto message, Brown recommended the secretary of CalEPA evaluate the potential role for administrative law judges to improve the process. “My purpose is not to eviscerate regulatory agencies but to restore accountability and flexibility to their actions,” Gray wrote in an op-ed explaining his legislation. He compared the board to a “bureaucratic maze.” Perhaps these harsh reviews are unavoidable given the board must work on programs that are difficult and sometimes unpopular, whether it’s California’s new mandatory water conservation standards, or the controversial river flow proposals for the San Joaquin/Bay Delta.

“As we move to a more datadriven decision-making process, a large concern from local agencies is the quality of the data being requested,” said Young. “If the State Water Board is seeking data about water system infrastructure or water shut-off frequency, for example, those questions need to be asked in a manner that allows local agencies to provide substantive responses that will inform and elevate discussions, not result in solutions seeking a problem.” Collaboration and trust can be difficult to get to. Earlier this year, the State Water Board proposed several new sections of the electronic annual report, which caused significant consternation among local agencies due to the breadth of the questions and their concern individual questions would not yield substantive results. As a result, State Water Board staff, researchers, environmental justice advocates and water agencies have been meeting to discuss how to refine the updated report to achieve better results. In his time as the board’s designated public member, Esquivel said he has seen how there can be some built-in mistrust when the Water Board initiates a regulatory proceeding. Public transparency is another high priority for Esquivel. “I certainly see it here at the board, as far as [an attitude of], ‘We don't want to give the board information, because they'll just use it to regulate us, or do something that we don't want,’ ” Esquivel said. "The first step to improvement is creating that trust.” CWP

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Energy Storage

Evolution By John Egan

POU leaders weigh costs, benefits and performance

12 CALIFORNIA WATER & POWER SUMMER 2018

ome experts have called energy storage a versatile “Swiss Army knife” group of technologies that could help California efficiently use more carbon-free energy while continuing to maintain a high level of reliability for customers. Like the many tools that splay from a utility knife, energy storage projects come in many shapes and sizes, with varying price tags and operational tradeoffs. In the Golden State, battery energy storage systems have garnered the lion’s share of funding, managerial attention and media coverage, although there are other types of viable storage systems, too.

CMUA spoke with five executives from publicly owned utilities in California to hear what they’re thinking about the technology, costs, safety issues and other topics relating to energy storage systems—battery systems in particular. While recognizing there are many potential benefits of utility-scale energy storage systems, several leaders also flagged potential concerns, such as permitting, endof-life disposal and scant operational history. In the rapidly evolving market for energy storage, many POU leaders are moving forward but proceeding cautiously with a posture similar to the adage trust but verify. Nico Procos, general manager of Alameda Municipal Power, acknowledges utilities tend to be risk-averse. “We want to be sure something will work before we sign on,” Procos said. Steve Zurn, general manager for Glendale Water & Power, has a similarly guarded attitude.

“I’m trying to be practical and pragmatic,” Zurn explained. “Let’s say I’m a centrist leaning toward enthusiasm.” Costs are still high Battery storage costs have decreased by about 50 percent the past few years. A recent report from the Electric Power Research Institute predicted battery energy storage could be cost effective by 2021 or 2022. Nevertheless, echoing the concerns of several other executives, Procos noted the Illustration by David Miller price of battery energy storage Like the many tools that splay from a Swiss projects is still too high. Army knife, energy storage projects come in “I’m supportive of new many shapes and size. technologies,” Procos said. “The price for battery energy storage is not there yet, though it is moving in the right direction.” The energy-water nexus is a factor In 2018, Alameda investigated Water and electric issues standalone solar generation and a continue to be deeply intertwined solar-plus-storage hybrid package in California. The water industry as part of a process managed by the consumes about 20 percent of the Northern California Power Agency. state’s electricity. Hydropower For Alameda, 2.5 megawatts of generates a sizable percentage of solar generation penciled out at the state’s electricity. Water and an affordable and competitive power utilities face distinct but $72 per megawatt-hour over 20 interrelated challenges. years. When that same amount of Irvine Ranch Water District solar generation was paired with partnered with Southern California battery storage, the cost ballooned Edison and Advanced Microgrid to between $172 to $259 per MWh. Solutions to install a total of 6.25 Alameda committed to the next step MW of lithium-ion batteries at six with standalone solar generation of the water district’s facilities. and decided to wait to add storage. Approximately half the batteries Because front-of-the-meter are operating. The remaining were battery storage is not expected to scheduled to be activated by yearbe cost effective for several more end 2018. years, SMUD is initially focusing IRWD, which serves about on storage behind the meter, at a 400,000 customers across 180 customer’s premise, with an eye on square miles in Orange County, will more options in the future, said Paul shave about $500,000 off its annual Lau, SMUD’s chief of grid strategy $14 million electric bill by using the and operations. batteries, explained Paul Cook, the water district’s general manager. Anton Tokarev / Dreamstime “That’s a healthy chunk of The Los Angeles Department of Water & change,” Cook said. Power has a bold plan to potentially convert The water district’s peak electric the Hoover Dam into a massive pumped demand is 26 MW. It used about 116 storage facility, essentially making the upper MWh of electricity in 2017. reservoir at Hoover Dam a giant battery. SCE will use the batteries

WINTER 2019 CALIFORNIA WATER & POWER 13

Energy Storage

Evolution By John Egan

POU leaders weigh costs, benefits and performance

12 CALIFORNIA WATER & POWER SUMMER 2018

WINTER 2019 CALIFORNIA WATER & POWER 13

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“AS LARGE USERS, WATER UTILITIES HAVE A ROLE TO PLAY IN MEETING THESE MANDATES. STORAGE COULD HELP FIX THE STATE’S ‘DUCK CURVE’ PROBLEM AND CURTAIL NEGATIVE PRICING FOR RENEWABLES.” —IRVINE RANCH WATER DISTRICT GENERAL MANAGER PAUL COOK

installed by AMS to reduce its peak load during the day. The batteries are charged at night and used during peak demand periods to relieve stress on the grid. “Achieving the mandate of 100 percent carbon-free electricity and greenhouse-gas reductions will fall on all utilities as well as their customers,” Cook said. “As large users, water utilities have a role to play in meeting these mandates. Storage could help fix the state’s ‘duck curve’ problem and curtail negative pricing for renewables.”

depleted, typically within 10 years? “You can’t just throw them into a landfill,” Kerr noted. “I am confident that a process will be worked out, but for now that standard simply doesn’t exist.” Janice Lin, executive director of the California Energy Storage Alliance said there are recycling programs in place, particularly for lithium ion batteries that are specific to each manufacturer. For utilityscale projects, the end-of-life disposal typically is built into a project’s total cost, she said.

Safety is an ongoing concern As companies tinker with battery chemistry to improve density and performance, there could be an impact on safety. Several executives noted the buildup of highly flammable hydrogen gas in lithium ion batteries is a particular concern. Hydrogenfueled fires burn so hot that some fire departments let the fire burn out rather than try to extinguish it. “Safety is critical,” said Reiko Kerr, senior assistant general manager of power systems at the Los Angeles Department of Water & Power, regarding battery energy storage. “There is a backfeed potential during outages when storage is paired with other distributed energy resources. Battery storage manufacturers continue to tweak the software, but our employees’ safety is critical.” Several sources also noted that lithium ion batteries, which contain cobalt or other rare-earth minerals, can create toxic waste. And what do you do when the batteries are

Operations must be seamless As with any new technology, electric utilities and water agencies must continue to deliver exceptional reliability. “We provide a vital service and we are unwilling to accept tradeoffs involving lower reliability,” Irvine Ranch’s Cook said. “Operationally, if there is a problem (with the batteries), we want to know how fast we could switch back to grid power.” The utility invested in its electric infrastructure to integrate the batteries and isolate them if there is a need to work on the system. “We were particularly concerned over potential safety and lockout issues,” Cook said. Working with SCE and AMS, a solution was found. In a separate project, LADWP brought online in October one of the state’s largest battery-storage projects at its Beacon site. Built by Doosan GridTech, the 20 MW/25 MVA/10 MWh lithium-ion system

BATTERIES N0T THE ONLY OPTION The term “energy storage” often seems synonymous with batteries. This is because lithium ion batteries account for at least 90 percent of the energy storage market—according to new research from Massachusetts Institute of Technology—are used widely in consumer electronics and have come down in cost. Batteries, however, are but one of many energy storage options. Other technologies include: • Hydrogen. Electricity can be used to split water molecules to create hydrogen, which can be stored and used later to produce electricity. • Flywheel. A mechanical form of storage in which electricity is used to spin a mass around an axis that is connected to a generator. • Compressed air. Uses excess electricity or electricity at times of low demand to compress air, which is stored and can later be released to spin generating turbines to create electricity. • Pumped-hydro. Uses electricity to move water from a lower reservoir into an upper reservoir. The stored water can later be released through generating turbines to produce electricity at times when the value of the energy is high.

connects to a dedicated 34.5-kV breaker in the Beacon Collector Station. In addition to stabilizing local photovoltaic generation, the direct connection to the substation allows LADWP’s grid operations to manage the Beacon Energy Storage System in accordance with daily needs of the grid. The $19 million Beacon Energy Storage System is LADWP’s first utility-scale battery energy storage project, installed alongside new solar photovoltaic power plants totaling 570 MW in the Mojave Desert, about 230 miles northeast of downtown Los Angeles. LADWP is contracting for an additional 490 MW of solar PV in the immediate area. WINTER 2019 CALIFORNIA WATER & POWER 15

Onofre nuclear power plant and the planned closure of the Diablo Canyon nuclear facility mean nuclear soon will be out of the picture. Similarly, the leak at the Aliso Canyon natural gas storage facility in 2015-2016 created concern about the state’s ability to reliably supply fuel for its gas-fired generation. California POUs can select from a variety of energy-storage technologies in the market, ranging from pumpedhydro storage to flywheels to compressed air to batteries. Right now, battery energy storage has captured much of the interest and investment, although LADWP has discussed a plan to turn the Hoover Dam into a $3 billion pumpedhydro storage project—see sidebars “Batteries Not the Only Option” and “Pumped-Hydro Storage Projects."

IRVINE RANCH WATER DISTRICT

Irvine Ranch Water District partnered with Southern California Edison and Advanced Microgrid Solutions to install 6.25 megawatts of lithium-ion batteries at six of the water district’s facilities.

LADWP’s Kerr recalled that shortly after Christmas 2016, the sun disappeared and it rained for a week around Los Angeles, depriving the utility of about 1,300 MW of daily solar generation. Executives are mindful the utility should provide reliable and low-cost electric power in an environmentally responsible manner. LADWP is committed to have a plan in place for scenarios when the sun doesn’t shine and the wind doesn’t blow for an extended period of time. “It always comes down to an operator’s confidence that electricity from batteries will be there when it’s needed,” Glendale’s Zurn said. “With a gas turbine, you know you can have power flowing so many minutes after you flip the switch. There’s a solid track record of performance. Batteries are not there yet.” Although energy storage is a newer 16 CALIFORNIA WATER & POWER WINTER 2019

technology, Lin noted that grid-scale projects are performing as expected, or even exceeding expectations. “A battery system may not have the same longevity as a pumped-hydro system, but the economics should be baked into the project lifecycle,” Lin added. “When these [energy] projects are sold, they have performance warranties from credible companies. Like components from any power plant, they need to be replaced and maintained over time.” New targets are driving adoption of energy storage New California laws, which include setting the goal to reach 100 percent carbon-free power by 2045, encourage utilities to take a closer look at battery energy storage projects. Regulators have pushed for more storage for years. A 2013 decision by the California Public Utilities

Commission (CPUC) directing investor-owned utilities to procure or install 1,325 MW of cost-effective energy storage by 2020 doesn’t directly affect California POUs, but it has a significant impact on the state’s market for battery storage. Lin said that after recent moves in November 2018, the CPUC has approved more than 1,500 MW of energy storage capacity in California—about half of that is already installed. The CPUC has eased the way for deployment of more storage by offering up to $423 million in selfgeneration incentives for energy storage projects. That has accelerated the industry’s march toward a future where energy storage projects are more than a novelty. Operational changes in the state’s power business play a critical role in the deployment of energy storage systems. The closure of the San

A measured march forward Although there is no shortage of concerns about energy storage among the POU leaders CMUA interviewed, there also was unanimity that storage will play an indispensable role in meeting the 100 percent carbon-free requirements of California’s Senate Bill 100. Storage can offset the intermittency of renewable resources such as solar and wind. Storage also could help lower the peak in the state’s “duck curve.” How the batteries are recharged—with gas power or renewables—will determine if storage reduces or increases greenhouse gas emissions from the power sector. There are clear indicators that energy storage is of growing interest to California POUs. Glendale Water & Power, for example, is investigating options to repower its Grayson power plant, an aging gas-fired facility. Most of the units at Grayson were built between 40 and 77 years ago. “There are a lot of uncertainties about the future of Grayson, but I can say storage is a virtual certainty,” Zurn said. In a mid-2018 request for proposals issued by GWP for options at Grayson, energy storage projects were the largest single category of bids submitted.

PUMPED-HYDRO STORAGE PROJECTS With a decarbonizing electricity business and the West perennially coping with drought, pumped-storage projects would seem to be the ideal win-win solution. Carbon-free electricity is generated by water from an upper reservoir falling on a turbine. Water is then pumped from the lower reservoir back to the upper reservoir chiefly using renewable power to be used again and again. Federal legislation signed in October may provide a boost to pumpedstorage projects under development by lengthening the duration of preliminary permits issued by the Federal Energy Regulatory Commission. The new law, named the Water Resources Development Act, extended the duration of a FERC preliminary permit for pumped-storage projects to four years. Pumped-storage facilities, which have operated in the U.S. for nearly a century, are the original energy storage projects, said Reiko Kerr, senior assistant GM of power systems at Los Angeles Department of Water & Power. There is more than 22,000 MW of pumped storage generation across the U.S., according to the National Hydropower Association. But few new projects have been built in recent years. Uncertainties about electric load and the high cost of pumped storage projects work against large pumped-storage projects, Kerr noted. LADWP has a bold plan to potentially convert the Hoover Dam into a giant pumped storage facility. The project, with a preliminary estimate of $3 billion, would turn Lake Mead, the upper reservoir at

Energy storage is a game changer for the power sector in many ways, said Lin, who lauded the technology’s ability to make all other energy resources run more efficiently, and consequently make significant cost savings possible. “Its flexibility and modularity gives you a new tool in the toolkit, especially for local resource adequacy, and the ability to 'island' portions of the grid if you need to, in instances where you need to shut

Hoover Dam, into a giant battery. A proposed water pipeline and pump station would be powered by solar and wind energy. The water, which runs once through the turbines at the dam, would be pumped back to Lake Mead, where it could generate more electricity. Key to the project’s success would be no negative impacts to current operations of the dam. Separately, the San Diego County Water Authority in late October received a preliminary permit from FERC for a 500 MW, $1.5 billion pumped storage project about 20 miles northeast of downtown San Diego, said Gary Bousquet, a senior engineering manager at SDCWA. If a contract can be reached with a developer, hopefully by late 2019, construction could start around 2026, and the facility could be operating by 2030. The project has been under development for about a decade. “We’re still in the very early study stage with the San Vicente Energy Storage Facility,” Bousquet said. “But it’s clear that increased use of intermittent resources means you need to do something to store that energy for when the sun doesn’t shine and the wind doesn’t blow.” With regular maintenance, pumped storage projects can operate for 80 to 100 years—an important advantage over battery storage projects, where the batteries have to be replaced every 10 years or so. Another proposal in California—the Eagle Mountain Hydroelectric Pumped Storage Project—has been under development for 25 years and remains unlicensed. This $2.6 billion, 1,300-MW project is scheduled to be built by NextEra in east Riverside County near the Joshua Tree National Park.

down the grid when it's very windy," said Lin. Speaking about storage, Alameda’s Procos said, “It’s always good to have another tool in the toolbox, but these need to be viable options. I think it’s a little unwise to count on batteries to solve all the problems we will face.” LADWP’s Kerr spoke for many POUs when she said, “We want to be a fast follower, not a first adopter. The devil’s always in the details.” CWP WINTER 2019 CALIFORNIA WATER & POWER 17

IRVINE RANCH WATER DISTRICT

Irvine Ranch Water District partnered with Southern California Edison and Advanced Microgrid Solutions to install 6.25 megawatts of lithium-ion batteries at six of the water district’s facilities.

LEADERSHIP MATTERS

Municipally

Minded

oseville Electric Utility Director Michelle Bertolino shares lessons learned—and “monkeys” avoided—during her successful career in public power.

CW&P: Looking back at your career working for municipally owned utilities, how did you get your start? Bertolino: I’m a “recovered” certified public accountant, and I was hired by a client—the San Francisco Public Utilities Commission. That’s where I got a real love for public utilities. I saw I could improve people’s quality of life and provide a service that’s very much needed. I got into this industry by accident, but I stayed intentionally. After the SFPUC, I went to SMUD and I worked there for a number of years. I came to Roseville about 16½ years ago. I stayed because I really enjoy what we do. We improve the quality of life of our communities and we do it reliably, affordably and safely—and that’s important to me. I don’t know that I ever intentionally aspired to be an executive. But I was always looking to do more, and I really enjoy working 18 CALIFORNIA WATER & POWER WINTER 2019

with people, so that opened a lot of doors for me.

CW&P: You have been Roseville’s utility director for more than eight years. What leadership lessons have you learned along the way? Bertolino: Probably one of the most important ones is about communication and how it’s so important to make sure that it’s happening regularly. Even if we think we’re repeating ourselves, we need to do that. Ninety-nine percent of the issues I deal with on a daily basis, at the core of the issue is either a breakdown or failure in communication, or a miscommunication. We talk about that every day in our staff meetings and within our organization—to overcommunicate. Another lesson is how important it is to have a good team around you. When I became Roseville’s utility director, we started to look at emotional intelligence and people skills, which we didn’t do before. We always aimed to hire the most talented and skilled employees, but we didn’t ask, “Are these people we really want to work with?” We now emphasize a core

competency curriculum—a list of eight competencies that all of us need to embrace and use in our jobs. I knew we finally made it when our engineering team was having a team interview and they were asking Michelle Bertolino Present: Roseville Electric Utility Director (2010-present) XX Previous: City of Roseville (2002-10) XX Managed Roseville Electric’s Administrative and Retail Energy Services business unit, the distribution business unit and was responsible for electric operations, construction, maintenance, engineering and dispatch services. XX SMUD (1996-2002) Several XX

positions, including business unit planning supervisor

San Francisco Public Utilities Commission (1987-1993)

Various positions, including assistant general manager and chief financial officer XX

CMUA past president (20152017)

LEADERSHIP MATTERS

THE EIGHT CORE COMPETENCIES Roseville Electric Utility’s core competencies are characteristics and traits that each employee must possess and exemplify to successfully service its customers and community: 1. People focused. Develops and delivers service-oriented solutions that meet or exceed expectations. 2. Builds trust. Ensures honesty and integrity are paramount values in our work environment. 3. Ensures accountability. Takes responsibility for the outcomes of one’s own work and fosters a sense of ownership in others. 4. Communicates effectively. Communicates clearly, concisely and openly, tailoring communication for diverse audiences. 5. Inclusive collaborator. Builds eﬀective working partnerships, alliances and teams. 6. Quality decision maker. Makes sound, timely decisions and recommendations. 7. Proactive. Takes on challenges as a proactive problem solver with a bias towards decisive action. 8. Resilient. Recovers quickly from negative experiences and continues to move forward.

NINETY-NINE PERCENT OF THE ISSUES I DEAL WITH ON A DAILY BASIS, AT THE CORE OF THE ISSUE IS EITHER A BREAKDOWN OR FAILURE IN COMMUNICATION, OR A MISCOMMUNICATION. WE TALK ABOUT THAT EVERY DAY IN OUR STAFF MEETINGS AND WITHIN OUR ORGANIZATION— TO OVER-COMMUNICATE. core competency questions to the candidates. When people say, “I have to go to work today,” you don’t have to go to work. Nobody has to go to work. If you don’t go to work, there are consequences, but nobody has to go to work. So I choose to go to work. And on the days where it’s harder to choose to go to work, what gets me there are the people I work with and the people that I know are either relying on me or I’m relying on. I need to be there to help them or support them. CW&P: You’re in a predominantly male-dominated ﬁeld. How has that vantage point informed your leadership style? MB: I am the first woman in my position in the history of Roseville Electric, which is over 100 years [old]. When I started here eight-and-a-half years ago, it was very common for me to go into meetings and be the only woman. Now that’s changed, and that’s great. I think that we’re making progress, but we still have a long way to go. We’re seeing a lot of change in getting a more diverse workforce within the municipal utility industry. CW&P: Outside of work, what do you enjoy doing? What have you read lately? Bertolino: I still do want to learn how to golf; I golf twice or three times a year. For my birthday this year, my husband bought me an acoustic guitar. I used to play the guitar and I actually performed when I was a kid. He got tired of hearing me tell stories about it. He bought me the guitar so I could learn how to play it again. So

20 CALIFORNIA WATER & POWER WINTER 2019

that’s on my list. I have at least two leadership books on my list. One is "The Alchemist"—a great book I didn’t think was a leadership book, but it is. It’s about staying true to yourself and going with your instincts in some cases. Sometimes you have to go completely around in a circle to get back where you started. Because where you started is where you really needed to be. It’s one of my favorite books of all time. Another is about time management and leadership. It’s called “The One Minute Manager Meets the Monkey.” It’s a very short read. We have a stack of this one in my office, and somebody will come in and I’ll be talking to them about “the monkey” and give them the book. The monkey is the next step or a problem. The book teaches how not to take on other people’s monkeys. That’s one of my favorite books to give to people. CW&P: You have been a leader at CMUA the past few years as the association has transformed. What are your impressions of where CMUA stands and where our members are headed together? Bertolino: As past president of CMUA, I’ve seen a lot of great changes. We’ve got a lot of new staff, a new director, and I think that CMUA is doing a great job right now. One of the strengths that CMUA has is its staff, and everybody’s working really hard, doing a great job and being very active. Our goal is for CMUA to become the go-to association for both municipal water and power utilities. Our voice is now there, and I think there’s a lot more we can do. I’m very proud to be a part of the organization. CWP

We power progress together by providing more and cleaner energy solutions. #makethefuture

WINTER 2019 CALIFORNIA WATER & POWER 21

POWER PLAYER

A Tech

Transition S

Joaquin Esquivel is optimistic that modernized systems and data will improve the State Water Board’s effectiveness.

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By Matt Williams

ometimes a career turns in an unexpected yet welcome direction. That’s the case for Joaquin Esquivel, who serves on California’s five-member State Water Resources Control Board. He rarely, if ever, imagined he would become a water regulator. After more than a decade working on policy as a legislative aide in Washington, D.C., the 36-year-old from La Quinta quickly realized he enjoys being “closer to the ground” on California water issues at the State Water Board while working in-depth on many of today’s biggest and most complex issues. Esquivel’s grandparents emigrated from Mexico and worked in the agricultural fields of the Coachella Valley, so he grew up seeing how the water board’s everyday functions—whether processing water rights permits, setting water quality standards or identifying priorities for the state’s ever-changing water landscape—can directly affect local communities. “I think what drew me here is we’re closer to the ‘doing,’ even here at the board level,” said Esquivel, who was appointed to the board in March 2017 for a term continuing into early 2021. “It’s really the people on the ground, those who day in and day out are coming to important decisions on the management of an incredible resource: water.” Esquivel was a legislative adviser specializing in water and natural resources for former U.S. Sen. Barbara Boxer before working for Gov. Jerry Brown’s administration as assistant secretary for federal water policy at the California Natural Resources Agency. He has a wide view on water issues because of his experience at different levels of government. “Much of what I can contribute, and what I see as my mission and focus, is to explain the work of the state board,” he said. “We are a different entity, in so far as having regulatory functions for water rights, water quality and drinking water—all in this one wheelhouse. Our ability as an agency to think holistically about water policy and water quality, and the state’s challenges, is unique.” Esquivel also has a background in technology, which is

somewhat unusual among his peers on the State Water Board. He served as Boxer’s IT director, among other duties. For the past two years, Esquivel has focused his efforts on work that will ensure the State Water Board becomes what is, in his words, a “21st century regulatory agency.” Specifically, Esquivel is interested in programs that continue to improve the State Water Board’s technology and data systems, along with workforce development initiatives that will help retain the board’s institutional memory and knowledge base. Esquivel said his time with the State Water Board has reinforced his belief that California’s water issues are much more “disparate and non-point source” than they were decades ago, which requires many groups at the local, state and federal levels to be better aligned and work together. Improving data and technology can help drive informed decision-making and good outcomes. “California’s water data is fragmented; it’s housed in many different places,” he said. “A lot of it is at the local level, with the water districts or local irrigation districts. The question is, how do we build a better system for sharing that data so that we

California Citrus Mutual

Joaquin Esquivel of the State Water Resources Control Board on a tour of citrus groves.

purposes,” he said. “The duplication of all that is where there’s some fat to trim.” Esquivel is hopeful that making those processes more efficient will enable the creation of common “decision support” tools and platforms

leaving us as an organization.” Like many workplaces inside and outside of government, the State Water Board is bracing for a wave of retirements among its staff as the population ages. Esquivel said the focus is both on how the board can develop its staff internally and also integrate with the water sector as a whole. The board needs to identify the skillsets needed for a 21st century regulatory agency and determine how to actively develop them. They must also —JOAQUIN ESQUIVEL better engage with academia and community colleges to that can analyze, interpret and bolster training opportunities. contextualize the huge amount of Despite its challenges, Esquivel is data the State Water Board collects confident the State Water Board can regularly. The objective is to make successfully become a regulator for the the board nimbler and more efficient modern age. One reason is that people despite bigger workloads and more across the state are increasingly aware responsibility, including the state’s of the value of water. drinking water program that was “I’m incredibly fortunate to serve moved to the State Water Board in on the board at the time that I do,” 2014. Esquivel said. “I’ve never seen the “How do we more flexibly operate literacy of Californians around water ourselves, given the enormity of and water policy this high. If everyone challenges we face and the limited time is able to understand their place— to get things done?” he asks. “We want the resource that water is, and its to be able to do more with less and monetary and intrinsic societal value— have the systems necessary to capture that will allow the amazing innovation the institutional information that is that’s happening everywhere.” CWP

“I THINK WHAT DREW ME HERE IS WE’RE CLOSER TO THE ‘DOING,’ EVEN HERE AT THE BOARD LEVEL. IT’S REALLY THE PEOPLE ON THE GROUND, THOSE WHO DAY IN AND DAY OUT ARE COMING TO IMPORTANT DECISIONS ON THE MANAGEMENT OF AN INCREDIBLE RESOURCE: WATER.” can make better decisions? Because it’s the foundation of all that we do.” Although much remains to be done, Esquivel said the State Water Board is making tremendous progress from a technology standpoint, particularly toward creating of a statewide water data platform required by legislation passed in 2016, and a data reporting resolution adopted in June 2018 that basically will create an inventory of how State Water Board staff requests information from outside entities. “We have many different divisions, and oftentimes many different people are asking for information from the same regulated entity, but for different

WINTER 2019 CALIFORNIA WATER & POWER 23

POWER PLAYER

A Tech

Transition S

Joaquin Esquivel is optimistic that modernized systems and data will improve the State Water Board’s effectiveness.

22 CALIFORNIA WATER & POWER WINTER 2019

By Matt Williams

California Citrus Mutual

Joaquin Esquivel of the State Water Resources Control Board on a tour of citrus groves.

WINTER 2019 CALIFORNIA WATER & POWER 23

24 CALIFORNIA WATER & POWER WINTER 2019

WINTER 2019 CALIFORNIA WATER & POWER 25

BrightBites REPORTS FROM THE FIELD

SAN FRANCISCO FIRE HYDRANTS LISTEN FOR WATER LEAKS Acoustic technology is helping the San Francisco Public Utilities Commission proactively detect and repair leaks in underground water mains. During a three-monthlong pilot project that started in August, more than 150 sound devices were attached to ﬁre hydrants in the Bay Area to listen for minuscule water leaks on SFPUC’s water mains. The program has detected multiple leaks that otherwise would have gone undetected.

SMUD MOVES CUSTOMERS TO TIME-OF-DAY RATES In October, SMUD began transitioning some customers to a time-of-day rate structure where electricity is cheaper except between the peak hours of 5 and 8 p.m. and is even less costly in winter than summer. Most SMUD customers will be moved onto the new rate structure in 2019. SMUD said it anticipates about half of its customers will save money under the new rates. Those who don't change their consumption habits might see a minimal increase in bills. One reason SMUD is moving to time-of-day rates is that it typically costs two to three times more to provide electricity service during peak times—and especially on weekday evenings—than during non-peak hours. Empowering the customer is another beneﬁt. “The new rate structure puts pricing into customers’ hands,” SMUD announced. “By shifting or reducing energy usage, customers can actually save on their bills and help SMUD continue to provide clean electricity, at some of the 26 CALIFORNIA WATER & POWER WINTER 2019

“The proactive approach helps the SFPUC avoid costly repair projects, reduces claims and damages, reduces system water losses, and ensures service reliability for local customers,” SFPUC said. “The new technology, which does not interfere with any San Francisco Fire Department operations, also allows the SFPUC to more eﬀectively allocate assignments for its leak detection crews.” SFPUC leak detection technology could be necessary to meet new performance standards for water loss that California is developing.

lowest rates around.” The SMUD Board of Directors approved the time-of-day rates in summer 2017. At the time, SMUD believed it was the ﬁrst public power utility that approved a timeof-day rate as a standard rate for residential customers. MIT STUDY: NATURAL GAS POWER PLANTS WOULD HELP CALIFORNIA ACHIEVE 100% CARBON-FREE ENERGY California can’t realistically achieve its goal of 100 percent carbon-free energy by 2045 with wind and solar alone, according to“The Role of Firm Low-Carbon Electricity Resources in Deep Decarbonization of Power Generation,” a paper released in September by Massachusetts Institute of Technology researchers and principally authored by Nestor Sepulveda. Researchers concluded the state’s energy portfolio could be prohibitively expensive and potentially unreliable if policymakers choose to exclude resources such as hydropower, nuclear power, and natural-gas plants that capture carbon dioxide. Decarbonizing the grid aﬀordably will require energy resources that

fill in the gaps when the sun doesn’t always shine and the wind doesn’t always blow. The study found California should maintain flexibility in its mix of zero-carbon resources in order to get to its 100 percent goal. “In the end, this report is a reminder that California needs to keep its options on the table,” said Patrick Welch, CMUA legislative director for energy. “Enacting laws and policies that constrain choice will only lead to a more expensive pathway to achieve the carbon reductions that are needed to help slow the pace of climate change. The electric sector has already taken a leadership role in the efforts to meet California climate goals. With continued flexibility, the sector can keep doing so while maintaining affordable electric rates.”

InnovativeCommunities A ROUNDUP OF RECENT CALIFORNIA UTILITY ACCOMPLISHMENTS

In September, the city of Alameda’s Public Utilities Board approved a battery storage program—up to 50 kilowatts— open to all Alameda Municipal Power customers with a renewable power system. Eastern Municipal Water District received a $210,000 Bureau of Reclamation grant to support water-use efficiencies among agricultural customers. Technology includes real-time online tracking of water use, creating weather-based water budgets for local farms, and more water-efficient devices. Glendale Water & Power launched the Peak Day Alerts program to encourage residents to conserve energy on hot days or during heat waves. Customers receive feedback about how much energy they conserved and how their efforts helped Glendale reduce peak load. In fall 2018, Imperial Irrigation District awarded $800,000 in energy efficiency awards to 60 schools and school districts to help install energy-efficient upgrades such as lighting, heating, ventilation and cooling measures. Irvine Ranch Water District and the University of California Irvine dedicated the university's renovated Central Plant, retrofitted to use recycled water for cooling campus buildings. The conversion will save 80 million gallons of drinking water annually. The Los Angeles Department of Water & Power plans to launch a new program in early 2019 allowing customers living in multifamily dwellings in economically disadvantaged areas to buy blocks of solar power at a 10-year fixed rate. Marin Municipal Water District is using 20 acres of its land to support scientific experiments that aim to mitigate destructive effects of sudden oak death on Mount Tamalpais forests. The research is in partnership with the U.S. Forest Service, UC Davis and Cal Poly. Metropolitan Water District of Southern California will develop a comprehensive plan to combat climate change. The plan will include analysis of emissions produced in importing, treating and delivering water; assess and quantify actions MWD has already taken to reduce its carbon footprint; and provide a blueprint for further mitigating emissions. Placer County Water Agency recently agreed to a memorandum of understanding with the Sacramento Area Flood Control Agency to explore utilizing PCWA’s Hell Hole Reservoir to minimize the negative effects of extreme flood events in the region. Riverside Public Utilities shut down its oldest electric substation, ending the service of Magnolia Substation dating back to 1949, which provided reliable power to customers for 69 years. A replacement transformer went into service in summer 2016. The U.S. Environmental Protection Agency in October recognized San Diego County Water Authority with a 2018 WaterSense Excellence Award for advancing water efficiency through its Qualified Water Efficient Landscaper program. More than 750 San Diego landscapers have participated, making the region’s program one of the largest in the nation. The San Francisco Public Utilities Commission received a local award for its Holloway Green Street Project showcasing the city’s first application of pervious concrete in the public right-of-way and rain gardens to receive, manage and treat stormwater. In September, the city of San Jose hosted a climate innovation conference in partnership with the Global Climate Action Summit, co-chaired by former California Gov. Jerry Brown. The event brought together leaders to share ideas, innovations and best practices. Santa Clara Valley Water District has approved $200,000 for local mini-grants up to $5,000 each to help seed community-level wildlife habitat restoration and watershed stewardship activities. The funding comes from a parcel tax voters approved six years ago. SMUD sponsored a study examining the effects of tunable LED lighting systems in the classroom and at the homes of children with autism. Tunable LEDs allow the light output color to be adjusted. After reviewing the results, SMUD experts recommend school districts install LED lighting systems that include lighting controls and tunable-white LED systems for new classrooms. South San Joaquin Irrigation District staff is developing a 20-year water master plan for SSJID on water supplies, water demand, infrastructure needs, modernization concepts and more in the local community. Southern California Public Power Authority signed a 25-year power purchase agreement with EDF Renewables for renewable energy from a 70-megawatt solar photovoltaic project paired with an energy storage facility in Riverside County. The project is expected to deliver electricity to SCPPA members in Anaheim, Burbank and Vernon beginning in 2020. Western Municipal Water District and the city of Riverside are seeing benefits from a partnership that enables Western to buy surplus Riverside groundwater. The partnership's first year resulted in a $2.6 million savings for Western and $4.5 million in revenue to Riverside. A Yuba Water Agency pilot project brings water conservation measures to homes already served by a PG&E energy savings assistance program for low-income residents. In a test of more than 100 homes, Yuba Water Agency covered the costs of toilet replacements, outdoor water assessments, meter checks, leak detection, hose nozzles and shower timers. WINTER 2019 CALIFORNIA WATER & POWER 27

BigIdea

CMUA’s Comprehensive Water Solution By Matt Williams

very Californian deserves safe drinking water delivered to their homes, but the reality is nearly 800,000 people statewide lack access to safe and reliable drinking water on a daily basis. Most would agree this public health crisis deserves a complete and wide-ranging solution. Debate about how to address this problem continues. Unfortunately, most efforts thus far have attempted to fix drinking water issues in California with a piecemeal approach addressing only one of four key ingredients—data, funding, governance and expertise—needed to successfully sustain drinking water system improvements. In 2019, CMUA will again lead from the front on this issue by advancing a comprehensive package for safe drinking water that would bring together those four complementary elements into a single solution. “CMUA’s proposed approach is all-encompassing, and importantly it doesn’t rely on imposing a tax or fee on Californians’ water bills in order to provide funding,” said Danielle Blacet, CMUA director for water. “We look forward to sharing our comprehensive package with

28 CALIFORNIA WATER & POWER WINTER 2019

legislative leaders in 2019.” Here are the main points in CMUA’s proposal: Data CMUA supports an assessment of noncompliant drinking water systems that considers and is inclusive of both the needs of the systems and the potential benefits that would occur due to more water system consolidations and water regionalization efforts. The data collected by the state water board should determine the extent of the challenge and identify existing gaps in financial and technical needs. Funding CMUA identifies three distinct funding mechanisms that could be used singularly or in combination to fund initial improvements and operations and maintenance of drinking water systems: • A new “irrevocable trust” seeded with funding from the state general fund, cap-and-trade and/or voluntary contributions. The trust would create a perpetual funding source of approximately $50 million annually. • Cap-and-trade will generate an estimated $2 billion to $7 billion of revenue annually through 2030 from the sale of allowances to entities emitting greenhouse gases. Some spending of cap-and-trade revenue is discretionary. Providing clean drinking water to disadvantaged communities is consistent

with past cap-and-trade expenditures. • A fee assessed on single-serve bottled water purchased in California, while including important tax exemptions for low-income consumers and other eligible households. Governance Chronically noncompliant, small water systems need an improved governance structure to enact immediate and lasting changes. CMUA urges the Legislature to again consider a proposal similar to one CMUA co-sponsored in 2018 that would have set up a transparent, locally controlled process for noncompliant water systems to merge into a larger, more robust system. These newly created small system water authorities would provide communities with larger economies of scale and maximize their technical, managerial and financial capacities. Technical Expertise Last, CMUA proposes to establish—with partnering organizations—a network of volunteer professionals, retirees and university-level students from the water community who can assist small and disadvantaged communities with their technical, managerial and financial needs. Communities would benefit from these experts’ vast knowledge and experience and would receive this mentoring at little or no cost. CWP

team:

noun \ˈtēm\

a group of people working together toward a common objeccve

At TEA, our main objeccve is your success. Because we are owned by public power, we understand what makes you unique and can help you develop strategies to achieve your goals.

beeer together. WINTER 2019 CALIFORNIA WATER & POWER 29

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BigPicture

Dispatches from the Field CMUA officials were out and about this fall, visiting member utilities and touring their power generation facilities. “It was pleasure to leave my desk behind in Sacramento and connect with many of our electric members,” said Patrick Welch, CMUA legislative director for energy. “I saw up close how unique conditions in their communities shape operational decisions and policy preferences and fortify the principle that local decision-makers know what will work best in their community.” The close ups included a visit to a Riverside Public Utilities solar project located on a closed landfill. Welch (top left) is alongside Jarod Mayne, utility senior resource analyst for RPU. At bottom left, it was another high-energy visit in mid-November when CMUA Executive Director Barry Moline and Welch toured the Roseville Energy Park, a 160MW combined-cycle baseload natural gas power plant fitted with a zero-liquid-discharge system. The tour was coordinated by Chris Romero of the Roseville Electric Utility and was led by Power Generation Superintendent Matt Garner. To the right, Modesto Irrigation District Senior Assistant GM Greg Salyer and Generation Manager Richard Smith welcomed Welch to the Woodland 3 power plant. WINTER 2019 CALIFORNIA WATER & POWER 31

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Photo Credit: Clockwise from the bottom are Harry Robertson, electrical line mechanic apprentice; Kurtis Wasko, electrical line mechanic apprentice; and Chris Sanchez, electrical line mechanic journeyman.

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