HomeMy WebLinkAboutChapter 14 - EnergyChapter 14: Energy
Final Draft August 8, 2005
Butte County General Plan Background Report
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CHAPTER 14: ENERGY
TABLE OF CONTENTS
14.1 INTRODUCTION...............................................................................................................................................3
14.2 ENERGY PRODUCTION..................................................................................................................................3
ENERGY SOURCES: COUNTY OVERVIEW ...................................................................................................................3
HYDROELECTRIC .......................................................................................................................................................4
Existing Facilities/Expansion Potential...............................................................................................................4
Regulatory Setting................................................................................................................................................5
Future Development.............................................................................................................................................5
BIOMASS CONVERSION ..............................................................................................................................................8
Facility Characteristics........................................................................................................................................8
Direct Combustion............................................................................................................................................................8
Methane Fermentation......................................................................................................................................................8
Gasification.......................................................................................................................................................................8
Regulatory Environment......................................................................................................................................8
Existing and Proposed Facilities .........................................................................................................................9
COGENERATION .........................................................................................................................................................9
Existing Facilities/Expansion Potential...............................................................................................................9
Regulatory Environment....................................................................................................................................10
Future Development...........................................................................................................................................10
OIL, GAS, AND COAL ENERGY GENERATION...........................................................................................................10
Natural Gas Resources ......................................................................................................................................10
SOLAR .....................................................................................................................................................................11
Existing Facilities/Expansion Potential.............................................................................................................11
WIND .......................................................................................................................................................................12
Existing Facilities/Expansion Potential.............................................................................................................12
GEOTHERMAL ..........................................................................................................................................................12
Existing Facilities/Expansion Potential.............................................................................................................12
TRANSMISSION LINES ..............................................................................................................................................13
EMISSIONS REDUCTION CREDITS .............................................................................................................................13
Historical ERC Needs........................................................................................................................................15
Future ERC needs..............................................................................................................................................15
14.3 ENERGY CONSERVATION...........................................................................................................................16
INTRODUCTION ........................................................................................................................................................16
CONSTRUCTION STANDARDS ...................................................................................................................................16
COUNTY OPERATIONS .............................................................................................................................................16
14.4 ENERGY CONSUMPTION.............................................................................................................................17
POPULATION GROWTH.............................................................................................................................................17
LAND USE................................................................................................................................................................17
CONSUMPTION PATTERNS .......................................................................................................................................18
Residential..........................................................................................................................................................19
Commercial........................................................................................................................................................20
Industrial............................................................................................................................................................20
Agricultural........................................................................................................................................................20
14.5 HISTORY OF ENERGY DEVELOPMENT IN BUTTE COUNTY............................................................21
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LIST OF TABLES
TABLE 14-1 EXISTING HYDROELECTRIC FACILITIES IN BUTTE COUNTY ........................................................................5
TABLE 14-2 EMISSION REDUCTION CREDITS (ERC) AVAILABLE AND ERC POTENTIAL IN BUTTE COUNTY ...............15
TABLE 14-3 NUMBER OF HOUSING UNITS AND TYPE OF ENERGY CONSUMED, BY ENERGY NEED BUTTE COUNTY
1980-1990..........................................................................................................................................................18
TABLE 14-4 RURAL AND URBAN CALIFORNIA COUNTIES PERCENT OF ELECTRICITY SALES BY SECTOR .....................19
TABLE 14-5 PG&E ACQUIRED POWER COMPANIES BUTTE COUNTY...........................................................................23
LIST OF FIGURES
FIGURE 14-1: ENERGY FACILITIES .................................................................................................................................7
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14.1 INTRODUCTION
Energy production, energy conservation, and patterns of energy consumption are increasingly
important issues for local government. Changes in the regulation of energy production make it
crucial that Butte County establish energy policies that preserve its influence in the siting of
energy production facilities. Comprehensive energy conservation policies should help reduce
overall energy costs for the county as well as for the residents and businesses in the county.
Certain land use policies and zoning can promote reduced energy consumption and equitably
distribute energy needs.
14.2 ENERGY PRODUCTION
This section discusses energy production-related issues in Butte County. Each section will
describe the existing, proposed, and future potential development of each energy resource, as
well as the regulatory environment of that resource and the County’s role in it. Because one
aspect of energy production over which the County has control is the siting of substations, the
transmission grid is also described here. Finally, the deregulation of energy production has made
the mechanisms of air quality control important energy resources in themselves. Therefore a final
section describes Emissions Reduction Credits, or ERCs, and the County’s role in using them.
Energy Sources: County Overview
The Pacific Gas and Electric Company (PG&E) provides Butte County with most of its gas and
electricity. The cities of Gridley and Biggs run their own power companies, providing electricity
to residents within their city limits with power purchased from the federal government. These are
two of the twelve municipal utility companies in rural California counties. Electricity purchased
from PG&E by local customers is generated and transmitted to the county by a large network of
power plants and transmission lines located throughout California. Butte County electrical power
generation facilities, consisting mainly of hydroelectric projects and small cogeneration facilities,
account for a very small percentage of the total electricity consumed in the county. Most of the
natural gas supplied to the county comes from Canada and is supplied to the region through the
Hershey station in Colusa County.
Wild Goose Storage Inc. operates an underground natural gas storage facility in Butte County . A
25-mile pipeline carries gas between the main PG&E pipeline in Colusa County and the Wild
Goose underground natural gas storage facility in Butte County. The Wild Goose Storage facility
stores natural gas in an underground rock formation, or reservoir, which had previously produced
natural gas. Gas is injected into the reservoir by compressors, where it is stored until
subsequently withdrawn and delivered to customers over the PG&E natural gas transmission and
distribution system.
Supplies of natural gas and electricity to the county are subject to California Public Utilities
Commission (CPUC) and Department of Energy (DOE) regulation.
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Solar energy is a new and expanding source of energy production within Butte County. While
the county’s climate is amenable to the production of solar energy, not until recently has it
become economically feasible on both a large and small scale. The county has seen the largest
growth of solar energy use in residential applications.
Several areas of potential energy production in Butte County have not been fully developed. One
such area is cogeneration, and another is waste-to-energy development. However, one
cogeneration facility closed in 2000. Other energy types such as wind, geothermal, and oil and
gas production are not expected to occur at any significant levels in Butte County.
Hydroelectric
Existing Facilities/Expansion Potential
Energy produced through the operation of hydroelectric facilities is a very important resource in
Butte County. The first hydroelectric plant began operation in 1898, serving Oroville and Chico.
The construction of other plants ensured a reliable source of energy that spurred the county’s
growth in the early 20th century.
In 2003 a majority of the significant waterways in the county are employed in some aspect of
hydroelectric capacity. Although hydropower has a long history in the region, Butte County has,
in the past few years, experienced a marked increase in hydroelectric project development,
expansion, and improvement. This increase is motivated in part by the marketability of
electricity, and also by the comparatively small depletion of natural resources incurred by the
technology. PG&E has proposed a number of small hydroelectric projects at existing facility
sites. This type of development is primarily due to the unavailability of new building sites in the
county. Although the capacity of Butte County for large-scale hydroelectric facilities is
considered to be fully developed, there remains considerable potential for small-scale
hydroelectric development at existing facilities.
Hydroelectric facilities in Butte County vary in design and layout. However, all projects contain
a dam or diversion structure to control water and create a hydrostatic head, a turbine to convert
water flow to mechanical energy, and a generator to convert the mechanical energy into
electricity.
Table 14-1 lists the existing hydroelectric facilities in Butte County. Their locations are shown in
Figure 14-1. These hydroelectric facilities tend to be located in the eastern portion of the county,
on the rivers and creeks running out of the Sierra Nevada foothills.
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TABLE 14-1
EXISTING HYDROELECTRIC FACILITIES IN BUTTE COUNTY
Plant name Alias Date online Service area Operator Owner Megawatts
Thermalito 11/1/67 OWID, PG&E CDWR CDWR 110.8
Coal Canyon 12/1/07 PG&E PG&E 0.9
Energy Growth
Partners
Forks of Butte 3/16/92 PG&E Energy Growth
Group
13.3
Forbestown 1/1/62 PG&E OWID OWID 27
Woodleaf 11/1/63 PG&E OWID OWID 49
De Sabla Forks of Butte 12/1/21 PG&E PG&E 18.5
Kelly Ridge 1/1/63 PG&E OWID OWID 9
Lassen Station Camp 5/22/86 PG&E Lassen Station
Electric LP
0.99
Perry Logging Mud Creek 1/26/83 PG&E Mud Creek
Hydro Partners
0.3
Poe 5/1/58 PG&E PG&E 120
Lime Saddle 8/1/06 PG&E PG&E 2
Centerville 1/2/00 PG&E PG&E 6.4
Kanaka STS Kanaka 2/13/89 PG&E STS Hydropower,
Ltd.
STS
Hydropower,
Ltd.
1.12
Edward C. Hyatt 3/1/68 PG&E CDWR CDWR 780.9
Toadtown 4/1/86 PG&E PG&E 1.5
Sly Creek 11/1/83 PG&E OWID OWID 8
Oroville Ogden Power
Pacific
9/26/85 PG&E Pacific Energy Ogden Energy
Group, Inc..
18
Source: California Energy Commission, 2003
Regulatory Setting
All proposed hydroelectric projects in Butte County are subject to review by various federal,
state, and local agencies. The Clean Water Act, Sections 410, 402, and 404, authorizes the U.S.
Environmental Protection Agency (EPA), U.S. Army Corps of Engineers (ACOE), and state
water quality agencies to grant permits in an effort to control water pollution. The ACOE is also
responsible for implementing the River and Harbor Act of 1899 by issuing permits for
construction or dredging in a public waterway. Enforcement of the River and Harbor Act ensures
that the basic natural features of a waterway will be maintained.
The Endangered Species Act of 1973 gives authority to the U.S. Fish and Wildlife Service
(USFWS) to review proposed projects for potential impact to endangered species. In addition,
the Federal Energy Regulatory Commission (FERC) is authorized by the Federal Power Act and
the Public Utility Regulatory Policies Act to license non-federal projects occurring in the county.
Future Development
Although very little potential exists for development of new large-scale hydroelectric facilities in
Butte County, there are a number of small-scale hydroelectric facilities proposed at existing sites.
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Small hydroelectric development offers the county an economically attractive energy source that
does not substantially deplete natural resources. Small-scale hydroelectric development has the
potential to make significant contributions to the county’s energy needs.
32
99
70
191
162
70
162
99
32
PARADISE
OROVILLE
BIGGS
GRIDLEY
CHICO
ENERGY FACILITIES
Figure 14-1
Butte County
General Plan
Miles02468101
Source: PG&E and Butte County Department of Development Services, 2003
Date printed: June 6, 2003
Legend
HIGH VOLTAGE LINES
115 KV Line
230 KV Line
500 KV Line
60 KV Line
Unknown voltage
ENERGY FACILITIES
Antenna Site
Power Plant
Substation
Switching Station
Other Energy Facilities
Lakes
MAJOR ROADS
highway
main road
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Biomass Conversion
Energy generation from biomass conversion has received renewed interest in due to the need for
diversified energy development. There are 29 biomass energy facilities in California that
generate 400 million megawatt (MW) hours per year. Twenty-five percent of the biomass
industry in the U.S. is located in California. Building and operating biomass facilities have been
encouraged through energy tax credits and favorable buy-back rates. However, tax credits have
been eliminated, reducing one incentive. Furthermore, widespread concern over air emissions
associated with the use of biomass materials for fuels has made the regulatory environment for
this energy source more strict.
Facility Characteristics
There are several types of biomass conversion processes that use a variety of fuels. Biomass
facilities are usually privately owned, and electricity produced is used in a cogeneration capacity
(e.g., in a timber mill operation).
Direct Combustion
The most popular method uses conventional steam boilers to burn dry woody fuel or agricultural
waste. The efficiency range for this type of cogeneration is 21 to 25 percent.
Methane Fermentation
Animal wastes from agricultural operations such as dairies and feedlots can be converted to a
biogas that is burned like a natural gas. The wastes are anaerobically broken down to form the
gas, leaving carbon dioxide as a major byproduct.
Gasification
The gasification process involves partial oxidation of biomass (usually wood) to produce biogas.
Although this process results in a lower conversion efficiency, existing gas and oil fired boilers
can be easily retrofitted to accommodate the gasification system. This type of biomass
conversion would be suitable for special applications, particularly in remote areas where other
forms of electrical power are not available.
Biomass facilities are typically located near their primary fuel source to minimize the
transportation of fuel to the conversion site. Another essential siting requirement is proximity to
electrical transmission facilities with available capacity.
Regulatory Environment
The California Energy Commission (CEC) maintains jurisdiction over biomass facilities with
generated capacities of 50 MW or greater. For projects less than 50 MW, the California Waste
Management Board (CWMB) acts as an advisory agency and reviews all applications. The
permit process for these smaller projects is handled by the Butte County Planning Division and
BCAQMD.
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Existing and Proposed Facilities
Butte County has one biomass conversion facility, which is the only cogeneration plant in the
county. The Pacific Oroville Power, Inc. (POPI) plant, located in Oroville (see Figure 14-1),
burns wood waste through the direct combustion process to generate electricity. The electricity is
sold to PG&E. It generates 18 MW of electricity, though it is licensed at 22 MW. The wood fuel
for the plant comes from agricultural wastes and timber operations.
As of 2003, there are no plans to develop any other facilities for biomass conversion in the
county.
Cogeneration
Existing Facilities/Expansion Potential
Cogeneration is an old and proven technology recently revived by the need to conserve our
limited energy resources and to achieve energy self-sufficiency through the use of alternative
technologies. Electricity can be produced through cogeneration of waste heat in business,
industry, and governmental facilities, thus saving money and conserving energy.
Cogeneration can be defined as simultaneous production of electrical or mechanical energy and
thermal energy. There are many types of cogeneration systems, including dual-purpose
powerplants, some waste heat use systems, certain types of district heating systems, space
heating and cooling in municipal and commercial applications, and total energy systems. By
recapturing and using some of the thermal energy that is normally discharged in the industrial
process, cogeneration can reduce system fuel requirements by one to 30 percent.
Industrial uses offer the greatest potential fuel savings through cogeneration. Industry often uses
process steam in applications requiring low temperature heat (less that 400 degrees Fahrenheit),
but generates steam through direct combustion of fossil fuels with resulting temperatures of over
3,000 degrees Fahrenheit. This high-temperature combustion heat generates electricity, then uses
the normally wasted exhaust heat for the industrial process. In addition, cogeneration can reduce
an industrial consumer’s energy vulnerability by providing improved efficiency, greater control,
and increased reliability of service. Cogenerated electricity can either be sold to PG&E or used to
reduce site demand and energy charges. The one existing cogeneration facility in Butte County
that uses biomass conversion technologies is described in the biomass energy discussion in the
Biomass Conversion section of this chapter.
In addition to POPI, the Oroville Cogeneration Limited Partnership was constructed in 1990.
This facility is located off of South Fifth Avenue in South Oroville. The facility is designed to
provide electricity during periods of peak energy demand. Energy is produced by several natural
gas-fired IC engines (1 MW/engine) coupled with generator units. Power is sold to PG&E.
No other cogeneration plants are proposed or planned in Butte County.
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Regulatory Environment
Cogeneration projects are subject to many of the federal, state and local regulations affecting
industrial facilities, as well as other regulations pertaining specifically to electricity generation.
The CEC is authorized by the Warren-Alquist Act of 1975 to regulate the siting of all thermal
power plants larger than 50 MW, including cogeneration plants. The County would also have
regulatory power over cogeneration facilities to ensure compliance with local general plan and
zoning provisions. For projects under 50 MW, the County would be the lead agency and would
conduct the environmental review required under CEQA.
There are numerous other federal and state regulations that establish cogeneration requirements
regarding fuel use (Federal Fuel Use Act - FUA, and Natural Gas Policy Act - NGPA), power
exchanges (Public Utility Regulatory Policies Act - PURPA), environmental quality, financing
and ownership, and health and safety.
Future Development
Continued development of cogeneration facilities can create public policy advantages,
specifically the reduction in dependence on expensive and vulnerable supplies of foreign oil. For
this reason, state legislation has reduced barriers to cogeneration, thus enhancing the economic
attractiveness of this type of energy technology. However, favorable utility rates for purchases of
excess cogenerated power have recently been removed, thereby reducing the incentives for
future cogeneration development.
Oil, Gas, and Coal Energy Generation
Oil, gas, and coal deposits are non-renewable sources of energy. Due to past exploitation of these
resources, opportunities for new oil, gas, or coal-fueled energy development have largely been
depleted. For some time now, these forms of energy generation have been considered
“conventional” because of their widespread use. However, due to the lack of quality oil and gas
resources in the county, and the impending depletion of these resources, the focus of energy
production is shifting to more sustainable sources of energy. Additionally, these methods of
energy production can have serious environmental impacts that have resulted in strong
community opposition. In Butte County, this shift in direction is demonstrated by the absence of
oil, gas, and coal developments.
Oil or coal developments are not in production in Butte County, and there are only eleven active
gas wells. Due to a lack of commercially viable reserves, it is not expected that coal or oil
development will contribute largely to future energy production in the county.
Natural Gas Resources
Although there are three actively-producing gas fields in the county, the potential for further gas
extraction in the future has been depleted. Six actively-producing gas fields were once found in
Butte County in the sedimentary valleys east of the Sacramento River. Now, the only producing
gas fields are the Durham gas field located in the vicinity of Durham; Perkins Lake Gas field,
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located around three miles west of the Durham Gas field; and the Wild Goose Gas field, located
on the southern edge of the county. The Durham Field has five wells, three of which are
producing. Figure 14-1 shows the pipeline system used to convey natural gas resources.
The majority of natural gas wells in the county are considered “abandoned,” meaning they have
been filled with cement and are no longer operable. The abandoned wells are identified by the
following field names: Chico and Schohr Ranch, and Llano Seco Gas fields. These fields have
been depleted of most of their economically extractable reserves.
In June 1997, the Wild Goose Storage became California's first independent gas storage utility.
A unanimous vote by the California Public Utility Commission (CPUC) created the utility.
Central facilities and site pipeline construction were constructed in mid to late 1998, and the
facility began operation in 1999. The company developed this facility to provide a major storage
and reserve field for surplus natural gas delivered from Canada. Wild Goose Storage Inc.
expanded the existing underground natural gas storage facility in Butte County on November 20,
2003, with additional wells, compressors, plant facilities and a new pipeline. The new 25-mile
pipeline carries gas between the main PG&E pipeline in Colusa County, and the expanded Wild
Goose underground natural gas storage facility in Butte County. The Wild Goose Storage facility
stores natural gas in an underground rock formation, or reservoir, which had previously produced
natural gas. Gas is injected into the reservoir by compressors, where it is stored until
subsequently withdrawn and delivered to customers over the PG&E natural gas transmission and
distribution system. During periods of low natural gas demand, gas is injected into the storage
field and during periods of high demand, the gas is withdrawn from the storage field and
returned to PG&E’s pipeline system.
Solar
Existing Facilities/Expansion Potential
There has been significant growth in the use of solar technology in Butte County since 2002.
Although most solar development has been for small-scale residential use, commercial and
government uses have also seen increases. The largest of these include a private 570-kilowatt
system; a 517-kilowatt system for the Butte County Government Facilities; a 480-kilowatt
system for South Feather River Power; and a 168-kilowatt facility for the City of Oroville.
As improvements in technology continue, increasing numbers of solar energy projects will be
developed in Butte County.
New solar projects proposed in Butte County are regulated by the California Energy Commission
(CEC). Typically, the CEC reviews only projects over 50 MW.
The Solar Rights Act specifically recognizes the legality of easements for solar access between
property owners, prohibits ordinances or covenants restricting the use of solar systems, and
requires tentative subdivision maps to provide for solar access.
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Solar collection devices must be properly sited to receive incoming energy from the sun.
Furthermore, a site with solar development must be protected from obstructions that block the
collection function. Solar access refers to the unobstructed exposure to the sun that a solar
collector requires to operate properly. Solar access can be a complicated issue because it deals
with a number of variables. Among these variables, the most important are:
1) the constant change of the sun’s position in the sky;
2) the tilt and orientation of the solar collection surface;
3) the existence or future development of structures adjacent to the solar collection surface
that may interfere with solar collection; and
4) the presence and type of vegetation adjacent to the collector.
These variables are important because they have the potential to threaten the efficiency of energy
collection.
Wind
Existing Facilities/Expansion Potential
Commercial wind energy is only effective in areas with strong and persistent winds. A minimum
annual average wind speed of 10 to 12 miles per hour is needed to make a wind generation site
productive. Butte County has been identified as having a low potential for commercial wind
generated energy.
No commercial wind generation facilities exist in the county. Wind energy is primarily used for
the operation of privately-owned water pump wind mills used in remote agricultural operations.
In 1977 the CEC established a Wind Resource Assessment Study by placing wind stations in
strategic locations within Butte County to monitor wind potential. Based on the data collected
from this study, the county has an average wind speed of approximately 8.5 miles per hour, and
is known to have prolonged periods of little to no wind.
Because the County did not exercise its regulatory authority over proposed wind projects on
private lands by adopting an ordinance prior to July of 2002, it is obligated to approve new wind
facilities that meet the State requirements. However, because of the low wind power potential in
the county, commercial wind facilities are not likely to become a significant energy industry.
Geothermal
Existing Facilities/Expansion Potential
Geothermal energy is derived from natural heat contained in the earth. This energy is used for
the purposes of generating electricity and heating space and water with the help of modern
technology. The natural heat of geothermal resources has been used for decades to heat homes
and water in California. Geothermal power has been identified as a major source of energy, and
is expected to be a significant component of energy generation in the state.
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However, geothermal energy production in Butte County is nonexistent. Presently no known
geothermal resources exist in the county, and geothermal development is not expected in the
future.
Transmission Lines
Butte County is presently crossed and served by two general types of transmission lines. The first
type is the 500 kV transmission line that is a part of the Pacific Intertie. The purpose of this line
is to enhance service reliability throughout a large area. The second type is the 60 kV - 230 kV
transmission lines that serve the specific energy needs in the county. Transmission facilities in
the county are shown in Figure 14-1.
The 500 kV transmission line is comprised of the following four transmission lines that cross the
county in a north-south pattern:
1) #551 - Round Mountain - Table Mountain
2) #552 - Table Mountain - Tesla
3) #558 - Round Mountain - Table Mountain
4) #559 - Table Mountain - Vaca Dixon
These four transmission lines appear as one unified structure that is the most predominant
transmission line development in the county. The 230, 115, and 60 kV lines conduct electricity
from the 500 kV lines and local substations to serve the various cities within the county.
Distribution lines, typically 21 kV and 12 kV, deliver electricity from these local transmission
lines to specific customers. There are no designated transmission line corridors identified in the
county, thus transmission line siting has been evaluated on a case-by-case basis.
Transmission lines can be classified according to voltage capacity, structure type, and right of
way required. Typically, transmission lines in the county are constructed with different poles
appropriate for the voltage. Larger voltage capacity lines (500 kV, 230 kV, and 115 kV) are
often supported by steel lattice towers or twin steel poles. Lines with a lower voltage capacity
(115 kV and 60 kV) are typically built with single steel or wood poles. Right of way corridors
are used to promote safety and allow adequate operational space for the transmission lines.
Emissions Reduction Credits
All emissions-producing power plants in Butte County must be licensed by the Butte County Air
Quality Management Control District. The District is responsible for assigning Emissions
Reduction Credits (ERCs) to licensed power plants in the county. The availability of ERCs
within the county or the ability to purchase ERC’s from elsewhere within the air basin is one
factor that affects energy development in the county. Because ERCs are transferable to other air
quality districts, ERCs can be considered another energy asset over which the County has
control.
In 2002 the Butte County Board of Supervisors approved a policy for the transfer of ERCs. This
policy facilitates the evaluation of ERC transfer requests in and out of the District. Pursuant to
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California laws, the Board of Supervisors must approve any ERC transfer into or out of the Butte
County Air Quality Management District.
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TABLE 14-2
EMISSION REDUCTION CREDITS (ERC) AVAILABLE AND
ERC POTENTIAL IN BUTTE COUNTY
Pollutant Stationary Source
Inventory(1)
ERCs Banked(2)% of Banked ERCs Relative to
Stationary Source Inventory
Oxides of Nitrogen
(NOx)
447 126 28.2%
Reactive Organic
Compounds (ROC)
1,080 265 24.5%
PM-10 1,389 220 15.9%
Pollutant Total Inventory All
Sources(1)
ERCsBanked(2)% of Banked ERCs Relative to the
Total Inventory for All Sources
Oxides of Nitrogen
(NOx)
8,625 126 1.5%
Reactive Organic
Compounds (ROC)
10,541 265 2.5%
PM-10 11,320 220 1.9%
Source: Butte County Air Quality Management Board, 2003. (1) Stationary Source Inventory derived from most recent ARB-approved data. (2)
Banked ERCs as per District register on October 14, 2002. This does not include the Community Bank or State Bank, which total less than 10
tons per pollutant.
Historical ERC Needs
Generally, ERCs have not been required for the typical business seeking to locate to Butte
County, either because the projects have low emissions or because the project proponent agreed
to limit production so that emissions did not exceed offset thresholds.
Over the last 10 years, ERCs were required for permitting the following projects:
Company Year Pollutant Tons
Louisiana Pacific Corporation 1995 NOx 11.0
Louisiana Pacific Corporation 1995 ROC 29.3
Louisiana Pacific Corporation 1996 PM-10 1.7
Future ERC needs
There are no active or pending permit applications for which ERCs would be required. However,
there are several rice dryers that would need to obtain PM-10 offsets in order to expand. The
staff of the Butte County Air Quality Management Board is not aware of any planned siting of a
power plant in Butte County. However, the following ERC requirements have been identified for
such a project:
Industry Rating NOx ROC PM-10
Power Plant 600 megawatt 150 20 150
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14.3 ENERGY CONSERVATION
Introduction
Energy price fluctuations in the late 1990s and energy price increases in early 2001, combined
with rolling blackouts, have led to a renewed interest in energy conservation. With continuing
uncertainty concerning electricity and natural gas prices, energy policies and programs can
reduce energy use, resulting in the reduction of overall energy expenditures in the county.
In California, energy conservation efforts have a substantial impact on energy demand. Since
1975, the displaced peak electricity demand from various conservation initiatives has equaled the
output from eighteen 500-MW power plants. The California Energy Commission calculated that
stricter building and appliance standards saved 5400 MW of energy across the state in 2000. The
historical trend is for standards to continue to reduce energy consumption.
Butte County has several opportunities to promote energy conservation and reduce energy
consumption, mainly through enforcing construction standards and through its own operations.
Construction Standards
The State of California requires local government to address conservation and efficiency in new
construction. In Butte County, the Building Division of the Department of Development Services
is responsible for enforcing all the provisions of the State Building Standard Code, including
Title 24, the State Building Energy Efficiency Standards. In June 2001, amendments to Part 6,
Title 24, of the State Administrative Code were enacted mandating more stringent conservation
and efficiency requirements for new residential and non-residential construction. These standards
apply to any new structures, additions to an existing structure, or changes to water and heating
systems. Changes to the footprint of a structure also require compliance with the requirements.
Butte County can reduce the effects of conventional energy shortages in the local communities
by reducing its dependence on conventional energy resources. A successful program to reduce
consumption of conventional energy resources and increase the use of renewable resources will
not only reduce the disruptions to community life as a result of energy shortages, but can also
contribute to state and federal efforts to promote energy conservation. In addition, it is important
to realize that conserving energy is a way of producing energy, and that energy production in
Butte County will be maximized by a reduction in consumption due to energy conservation and
renewable resource technologies.
County Operations
Butte County has a number of opportunities to foster increased energy conservation in its own
operations. The County owns and operates a significant number of automobiles, trucks and other
vehicles to carry out County functions. Some of these use alternative fuels. For instance, the
Butte County Transit system operates seven new buses that run on compressed natural gas.
These buses run between Chico, Paradise, Oroville, and Gridley-Biggs. In general, the purchase
of fuel-efficient vehicles will increase energy conservation and decrease costs to the County.
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Electric and hybrid vehicles represent yet another vehicle type the County could use that would
conserve energy.
New County buildings must be built in compliance with stricter energy conservation standards,
and older buildings could be retrofitted to reduce heat loss and/or heat gain. Outdoor and indoor
lighting could be audited to ensure that areas are not overlit, as lighting comprises a large
percentage of energy usage.
14.4 ENERGY CONSUMPTION
One way to determine future energy needs in a region is by forecasting energy demand. As the
fluctuations in price and supply of electricity and gasoline in the early 2000s demonstrated, there
is a substantial level of uncertainty associated with predicting future energy demand and supply,
since many factors determine the pricing of electricity and gas. In turn, pricing affects the
feasibility and rate of new energy source development. These uncertainties result in highly
speculative projections that must be constantly updated to accommodate changes in market
conditions.
It may be more useful to extrapolate the energy future of Butte County from population growth,
trends in land development, and patterns of energy consumption. These factors change more
slowly in Butte County, and they also present issues over which the County has control. In this
way the County can ensure that the energy needs of its residents and businesses continue to be
met in the timeframe of this General Plan, while it also works to improve energy conservation.
Population Growth
A full description of the demographics of the county and projected changes in the county
population, as well as the distribution of populations between the incorporated urban areas and
the unincorporated areas of the county, is available in the Land Use and Population Chapters of
this document.
Land Use
Land use policy and regulation affects energy use in several ways. The locations and relationship
between different land uses has a direct relationship to energy consumption. The specific land
use policies and regulations can be found in greater detail in the Land Use and Housing Chapters
of this Background Report.
Many residents find Butte County’s rural character attractive, which has implications for energy
usage. Rural counties use ten percent of all electricity in California. According to the California
Energy Commission, however, rural residents use a larger amount of electricity per capita than
urban dwellers do. Eight of the top ten counties for energy usage by residential customers are
rural counties. This is because these counties often experience more extreme climate conditions,
leading to higher cooling and heating costs. Also, many rural residents do not have natural gas
service. Finally, rural residents pay for services in their electricity bill that urban consumers pay
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for in other bills. When rural residents are not connected to piped water systems, they must rely
on water wells and electric pumps to connect them with water. Rural residents also must install
more outside lighting, if their homes and streets do not have street lights.
On the whole, higher density residential users consume less energy per dwelling unit due to the
smaller spaces to be heated and cooled, fewer construction materials used, and increased
opportunities for service by public transit, which consumes less fuel per passenger than single
occupant automobiles. Though development in the cities of Butte County will outpace growth in
the unincorporated areas, the bulk of building will be low density residential housing. This will
keep reliance on public transit largely confined to the urban areas.
Emphasis on neighborhood planning will result in reduced energy consumption by locating
frequently visited land uses, such as schools, shopping areas, and public buildings relatively
close to residential uses. For example, the residents of smaller dispersed neighborhood
commercial land uses consume less energy than in large, centralized shopping centers, because
they have to drive less and may also utilize non-automobile modes of transportation.
Subdivision design provides another opportunity to reduce energy consumption. The orientation
of lots and structures to protect solar exposure provides opportunities to use solar heating and
cooling equipment. Narrower residential street width would reduce the amount of pavement
reflecting solar heat in the area. Street tree planting provisions increase shading of buildings and
streets, reducing the energy demand for cooling in the summer.
Consumption Patterns
To facilitate the assessment of local energy consumption patterns, it is useful to determine the
types and purposes of energy consumption in Butte County. The relative importance of each type
of energy is indicated below.
At the time this General Plan was prepared, the 2000 Census data on the types of energy used for
home heating had not yet been released. Table 14-3 below shows what type of energy was
commonly used for residential dwellings and gives a comparison between 1980 and 1990.
TABLE 14-3
NUMBER OF HOUSING UNITS AND TYPE OF ENERGY CONSUMED, BY ENERGY NEED
BUTTE COUNTY
1980-1990
Fuel for Space Heating 1980 1990 % Change 1980 to 1990
Utility Gas 36,188 39,474 9.1%
Bottled, tank, or LP gas 3,873 4,601 18.8%
Electricity 9,988 14,167 41.8%
Fuel oil, kerosene, etc.183 155 -15.3%
Other fuels, primarily wood 6,579 13,143 99.7%
No fuel used 116 125 7.7%
Source: U.S. Bureau of Census, 1980 and 1990. Census of Housing. Detailed Housing Characteristics, California.
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Table 14-3 shows that the use of wood fuels increased dramatically between 1980 and 1990.
Electric power also showed a significant increase. Both of these increases were attributed to
homes built outside of urban service areas that do not have piped natural gas. Wood heat is also
cheaper than electricity, especially if a household cuts its own wood fuel supply. Butte County’s
bountiful forests and an ample supply of hard woods from local orchards supply much of the
demand for wood fuels. LP gas, or propane, has also seen a significant increase, because many
homes are built outside of urban service areas for natural gas. However, propane is expensive
compared to wood or pellet fuels. This increase is attributed to a perceived convenience by Butte
County’s large retiree population who do not wish to cut or handle heavy wood fuels.
Table 14-4 shows the distribution of energy uses in rural and urban counties in California.
TABLE 14-4
RURAL AND URBAN CALIFORNIA COUNTIES
PERCENT OF ELECTRICITY SALES BY SECTOR
Sector Rural Urban
Residential 40%32%
Commercial 27%35%
Industrial 15%19%
Agricultural 9%5%
Other 9%9%
Source: What Electricity Restructuring Means for Rural California Counties, California Energy Commission, 1998. In this study, a “rural”
county means one with fewer than 250,000 people.
Residential
There are various factors that influence the type and amount of energy consumed in a residential
structure. The most important are: 1) the type of dwelling units; 2) the size of the structure; 3) the
number of occupants and their habits; 4) the weather conditions and time of year; 5) the thermal
integrity of the building (level of insulation and number and location of windows); 6) the number
of appliances (e.g., washing machine, clothes dryer, swimming pool, etc.); and 7) the type of
appliances (e.g., gas versus electric heaters and ranges).
Typically, the most important factors influencing residential energy consumption are the type of
house (detached single-family or multi-family structure) and the number of major appliances. A
single-family home requires more energy for space heating than a multi-family unit, due to its
bigger size and the amount of heat loss through external walls. It also requires more energy for
operation of major appliances as it usually houses more occupants.
Some residential energy needs can be fulfilled by either gas or electricity (e.g., space and hot
water heating, cooking, and clothes drying), while others are most likely dependent on electricity
(lighting, radio, television, etc.). Space heating is by far the most energy consuming activity in
residential structures. Even in moderate climates such as in California, space heating can account
for more than one-third of residential energy consumption. Hot water heating is the second most
energy consuming activity in a residence.
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Commercial
Compared to residential uses, commercial activities consume more electricity than natural gas.
Generally, the major use of electricity for all commercial buildings is for lighting, with air-
conditioning as the second highest use for most building types. Grocery stores and supermarkets
are exceptions to this rule since their electrical usage is dominated by large refrigeration
operations. The use of natural gas in commercial buildings is usually limited to space heating and
occasionally air-conditioning.
Industrial
In contrast to energy consumption in the residential and commercial sectors, industrial patterns
of energy consumption depend upon the specific type of industrial operations. The major
industrial activities in Butte County are wood processing, manufacturing, and gravel mining.
Energy use within the general category of “industrial processes” includes a number of specific
uses. A significant portion of industrial gas use is for the purpose of heating water to various
temperatures.
Wood processing and manufacturing industries are high electrical and natural gas users. In
general, they use electricity for 60 percent of their energy needs and natural gas for the
remaining 40 percent.
Electricity runs motors, conveyor belts, chipping machines, and manufacturing equipment.
Natural gas is consumed for space heating and some specific industrial processes.
In the stone and mineral extraction industry, electricity runs handling and crushing equipment.
Drying and additional processing require natural gas and/or fuel oils.
The electricity portion of industrial process consumption includes a mixture of lighting, motor
operation, and the operation of more sophisticated electronic equipment.
Agricultural
Agricultural energy consumption represents a small portion of the total energy consumption in
Butte County. As agricultural production evolves, the energy needs in the county will also shift.
Electricity is important in the agricultural sector since it is the main source of energy used to
operate irrigation pumps, fans, and wind-producing machines used to protect fruits from winter
frost. Natural gas use, however, is less significant and is limited to the greenhouse industry,
heating of agricultural buildings, and crop drying.
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14.5 HISTORY OF ENERGY DEVELOPMENT IN BUTTE
COUNTY
The history of energy development in Butte County tells the story of its energy future. One of
Butte County’s earliest sources of energy was methane gas generated through a coal gasification
process. Two plants near Oroville produced the gas, which was later distributed by the California
Gas and Electric Corporation and General Western Power of California. The energy produced
was delivered to specific users such as lumber processing plants, mining operations, and
agricultural facilities. Some on-site generation of steam and oil manufactured gas was used for
light and power in lumber processing plants and mining operations. Household heating and
lighting was still conducted on an independent scale using wood-burning stoves and lanterns.
Over the following years, energy demands in the San Francisco Bay Area catalyzed the
development of energy export facilities in Butte County.
Hydroelectricity was a natural opportunity for the county to increase its capacity for energy
production. Energy production in Butte County took a significant step forward with construction
of the Centerville hydroelectric facility on Butte Creek. This powerhouse was completed in
1898, and was originally owned by the Butte County Electric Power and Lighting Company. The
plant had two transmission lines that served Chico and Oroville, with an initial combined
capacity of 800 kilowatts. Gridley was served by a distribution center in the town of Colusa. The
development of hydroelectric power plants, and the ready availability of electricity for
residential, commercial, and industrial uses, was partly responsible for a significant increase in
the county’s population in the early 1900’s.
The DeSabla powerhouse was built in 1903, and represented the effort of a number of engineers
who later took leading roles in the development of PG&E. Construction of the DeSabla
hydroelectric facility was noted for its engineering difficulty. The DeSabla Reservoir and
powerhouse are located on Butte Creek above the Centerville Powerhouse. Intricate systems of
old mining conduits previously used by the Cherokee Mining Company were reconditioned to
supply water to the reservoir. Construction of the DeSabla powerhouse was made possible by
Eugene de Sabla’s purchase of the entire Cherokee Mining Company water system, including the
system of ditches, pipelines, and dam.
The pioneers of hydroelectricity did not have the heavy construction equipment available today.
Instead of bulldozers, dump trucks, and motored transport, the construction was completed using
teams of horses and mules. Equipment was lowered into the canyons with cables and windlass,
and roads and reservoirs were graded with the use of horse-drawn plows and scrapers.
The custom of the time was to finance new power projects separately, even though the stock
holders of an existing company and those of the new may be identical. Consequently, when a
group of stock holders entered into the retail distribution of electricity and gas, a new company
was organized. In this way, many individual companies were developed to serve the county’s
power needs. Eventually, these companies were bought out by Eugene de Sabla Jr. and John
Martin.
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Eugene de Sabla, Jr. and John Martin were primarily responsible for development of the PG&E
system. These two men built power plants and consolidated utility systems to form the
foundation of PG&E. This process required the acquisition of many regional power and water
companies. By 1908, PG&E had control over the majority of Butte County’s power. Companies
were either acquired directly or descended to PG&E through California Gas and Electric
Corporation and General Western Power of California. Table 14-5 lists the component
companies from Butte County, with principal groups providing headings for formerly
incorporated companies.
In the late 1920’s, PG&E developed an efficient method of delivering heat and energy to homes,
office buildings, and industry. The technology for delivery of natural gas was finally established
to allow transportation from distant fields to the principal cities in its service area. However,
Butte County and other regions in PG&E’s northern domain were unable to find dependable and
adequate sources of natural gas. In the late 1930’s, PG&E was able to construct gas pipelines
from rich gas regions in southern California, including the Kettleman Hills and Topock gas
fields, to the northern areas.
Due to the very limited natural gas resources found in Butte County, over the last 80 years
hydroelectricity has become the county’s leading energy producer. The eastern portion of the
county developed rapidly with new hydroelectric plants, and additional smaller facilities are still
being proposed. The benefits of combining water supply and energy production into one facility
have made hydroelectricity a very desirable power supply in the county. The importance of
hydroelectric power generation is indicated by the existence of 17 hydroelectric facilities in the
county.
Only in Butte County’s recent history has the technology of cogeneration surfaced as a viable
source of energy. Two cogeneration plants have been developed in the county. The Pacific
Oroville Power, Inc. (POPI) facility was constructed in 1986, and presently supplies energy to
the PG&E grid system. The Koppers lumber facility was constructed in 1948, and its
cogeneration facility was added as an accessory use from 1983 to 2000. In 2000 this facility was
closed and is no longer in operation.
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TABLE 14-5
PG&E ACQUIRED POWER COMPANIES
BUTTE COUNTY
CALIFORNIA GAS AND ELECTRIC CORPORATION: ORGANIZED IN 1901 - ACQUIRED BY PG&E IN 1906
Butte County Electric Power and Lighting Company, organized in 1899
Butte County Power Company, organized in 1901
Cherokee Mining Company, organized in 1858
Chico Gas and Electric Company, organized in 1901
Chico Gas Company, organized in 1874
Chico Gas, Electric Power and lighting Company, organized in 1900
Valley Counties Power company, organized in 1902
GREAT WESTERN POWER COMPANY OF CALIFORNIA: ORGANIZED IN 1915 - ACQUIRED BY PG&E IN
1930
Feather River Power Company, organized in 1925
Western Canal Company, organized in 1915
DIRECT ACQUISITION
Butte and Tehama Power Company, organized in 1909
Cataract Gold Mining and Power Company, organized in 1909
Durham Light and Power Company, organized in 1906
Feather River Pine Mills, Inc., organized in 1927
Lava Bed Dredging Company, organized in 1900
Marigold Dredging Company, organized in 1901
Oro Development Company, organized in 1911
Oro Electric Corporation, organized in 1911
Oro Water, Light and Power Company, organized in 1905
Oroville Electric Light company, organized in 1889
Oroville Gas, Electric Light, and Power Company, organized in 1895
Oroville Light and Power Company, organized in 1901
Oroville Water Company, organized in 1878
Source: Michael Clayton & Associates, 1991