Energy-Initiative-Roadmap-Final-June-2017

PORT OF LONG BEACH ENERGY INITIATIVE ROADMAP JUNE 2017 Port of Long Beach Energy Initiative Roadmap Contents: Executive Summary Introduction The Energy Initiative and the Port’s Strategic Plan The Energy Initiative Supports Environmental Stewardship Current Assets and Future Energy Needs Energy Initiative Drivers Partnerships and Advisories Advocacy 10 Approach to Program Development 10 Studies 10 Near-Term Priorities 12 Funding 15 Strategic Energy Planning Process and Long-term Approach 16 Conclusion 16 Glossary 18 Port of Long Beach Energy Initiative Roadmap Executive Summary As the Port of Long Beach (the Port) moves toward a goal of increasing zero-emission operations, our reliance on electrical power is dramatically increasing, and there is greater need for resiliency in the electrical system and stabilized costs for energy On-terminal electricity usage is predicted to quadruple by 2030, compared to 2005 levels At the same time, the electrical grid is aging and its long-term energy costs are not predictable The Port’s Energy Initiative will improve port-wide energy management and infrastructure to provide system resiliency, create long-term cost stability, provide value for our customers, and create new business opportunities, while achieving the Port’s environmental and regulatory mandates The Port adopted an Energy Policy in 2013, with objectives to reduce reliance on limited natural resources, work with customers on mutually beneficial energy choices and infrastructure, promote energy conservation and efficiency, optimize generation of alternative and renewable energy, foster innovative energy technologies, and ensure a safe and reliable energy supply to support continuity of Port operations The Port’s Energy Initiative is the program that will implement the Port’s Energy Policy The Port’s initial energy planning efforts have focused on education, data gathering and forecasting, developing partnerships, technical collaborations, and promoting energy efficiencies As the Port moves forward with further implementation of the Energy Initiative, we will follow a step-wise approach, with continuous evaluations and check-ins to ensure we stay focused on the priority needs and make smart decisions about where to focus our resources We anticipate following the approach outlined below: Energy Initiative Priorities Near-term (1 year) • Refine the scope of the pilot project at the Joint Command and Control Center (JCCC) to incorporate solar generation, energy storage and microgrid controls, and submit an application for California Energy Commission grant funding (solicitation anticipated summer 2017) • Secure technical resources to assist with Energy Initiative development and implementation, including contracts with the National Renewable Energy Laboratory (NREL) and technical consultants • Continue to implement the Energy Efficiency Rebate Match (EERM) program to provide incentives for port tenants to reduce energy use Consider modifications to increase participation • Continue to gather technical information on power generation technologies to supplement existing white papers and studies, including information on available geothermal energy resources • Prepare a forecast of potential future energy needs, including the anticipated energy demand associated with zero-emission equipment deployment Port of Long Beach Energy Initiative Roadmap Energy Initiative Priorities (cont.) Mid-term (2-5 years) Long-term (5+ years) • Continue to gather the latest technical information on power generation technologies to best meet the Port’s Energy Initiative goals and objectives • Continue to implement the Energy Efficiency Rebate Match (EERM) program to provide incentives for port tenants to reduce energy use • Implement JCCC pilot project and evaluate use of technologies for future applications in the port • Refine the scope of the pilot project at the Maintenance Yard, and seek grant funding as available to initiate the project • Prepare a Strategic Energy Plan to outline the Port’s energyrelated goals, specific objectives, technical alternatives and strategies, and decision-making approach Include prioritization of meeting critical loads first, and long-term implementation • Develop design standards for new energy infrastructure • Develop electrical infrastructure plans and proceed with capital improvement program to support zero emission terminal equipment deployment • Ongoing implementation of Strategic Energy Plan and emerging technology demonstrations • Design energy infrastructure into new capital improvement projects Port of Long Beach Energy Initiative Roadmap Introduction Preparing for the future energy needs of the Port of Long Beach (the Port) has been a priority for more than a decade In this document, the Energy Initiative Roadmap, the Port describes the rationale, goals, and process by which it will move forward to ensure that the energy systems that will power the “Green Port of the Future” can operate reliably and competitively Energy planning groundwork began in 2005, when the Board of Harbor Commissioners (the Board) adopted the Green Port Policy, which established the Port’s environmental priorities and set the direction for addressing our environmental impacts The Port recognized that some of the strategies resulting from the policy would have significant energy implications These strategies were outlined in the subsequent 2006 San Pedro Bay Clean Air Action Plan (CAAP) For example, the Port committed to shore power for container vessels and also described the need for technologies that replaced diesel engines with alternative-fueled or electric-powered equipment to meet our long-term emission reduction goals As shore power implementation proceeded and demand escalated, the Port needed to ensure that adequate electricity was available and that costs associated with greater electrical power use would be economically viable for our customers As a result, staff worked closely with Southern California Edison (SCE), the Port’s electricity utility, and the Board approved significant investment toward enhancing electrical infrastructure New substations, transmission and distribution lines, and other ancillary infrastructure was installed, and the Port negotiated a new rate structure for most of our tenants This valuable experience offers a strong foundation of success to build upon In 2013, recognizing the continued need for energy planning, partnerships, emerging technologies, and the various opportunities available to meet those needs, the Board adopted the Port’s Energy Policy This policy outlined six broad goals to guide Port energy decisions and designs: Reduce the Port’s reliance on limited natural resources Work with customers for mutually beneficial improvements to energy choices and infrastructure Promote energy conservation and efficiency Optimize generation of alternative and renewable energy Foster innovative energy technologies Ensure a safe and reliable energy supply to support continuity of Port operations The policy also described a framework for its implementation: Collaborate with City departments, tenants, shipping lines, marine terminal operators, utilities, universities, the Port of Los Angeles, labor and other stakeholders to implement cost-effective energy efficiency, conservation, resiliency, and renewable energy generation measures Evaluate existing Port energy use to establish a baseline from which to measure goals and opportunities for improvement Establish goals and targets to achieve these measures and develop specific metrics to measure progress toward meeting the goals Port of Long Beach Energy Initiative Roadmap Align the Port’s energy program with other Port policies, plans and programs Seek funding for these activities through grants and partnerships Maintain a diverse portfolio of cost-effective energy efficiency, conservation, resiliency, and renewable energy strategies and provide incentives to the Port community in furtherance of these strategies Identify emerging technologies for energy efficiency, conservation, resiliency, and renewable energy generation, and establish a process for the evaluation and deployment of these technologies Further local, state, and federal legislative proposals in support of this policy Provide periodic reports on these activities to the Board and the City Council detailing progress and achievements It is the Port’s Energy Initiative that will implement the Energy Policy The Energy Initiative and the Port’s Strategic Plan Building infrastructure to support increasing energy loads will not be as simple as providing additional substations and electrical outlets The Port must think strategically about the types of infrastructure and equipment it will need to meet our environmental objectives while simultaneously providing the greatest value and security for our tenants and other stakeholders Indeed, the Port’s Fiscal Year 2017 Strategic Plan identifies our Value Proposition as: Customers choose the Port of Long Beach because we are the greenest, most reliable, and most cost-effective gateway for the movement of goods to America’s major consumer markets The Port’s Energy Initiative can support our “greenest” value through: • • • Energy efficiency – in marine terminal design as well as retrofits for existing structures and equipment Renewable energy generation – such as the rooftop photovoltaic systems or solar carports that are already being integrated into Port projects Near zero- to zero-emissions – in vehicles and equipment used on Port terminals and other operations The Port’s Energy Initiative can support our “most reliable” and “cost-effective” values by: • • Minimizing potential losses or downtime by providing alternative (to grid) power in times of emergency or planned outages This may be in the form of on-site energy storage or selfgeneration Testing energy strategies with minimal disruption to Port tenants Port of Long Beach Energy Initiative Roadmap • Developing and analyzing metrics for cost-effectiveness that incorporate capital costs, operational costs, life cycle (including, potentially, disposal), risks and delays, and alternatives Reliance on a single, vulnerable grid could cost Port customers hundreds of millions of dollars in lost labor and cargoes if an outage occurs A comprehensive approach to resiliency and risk management for all Port operations enhances the Port’s value proposition and should be one of the key attributes of the Port’s Energy Initiative The Energy Initiative Supports Environmental Stewardship The Port is currently working on our third iteration of the CAAP, which will include a greater focus on implementation of zero-emission equipment technologies over the next 15 to 20 years The CAAP will also identify the related energy needs, such as electrical infrastructure and alternative fuels to support deployment of those technologies within the timeframes identified The Energy Initiative provides the link between CAAP strategies to lower air emissions and the engineering and infrastructure necessary to make these strategies successful In addition to the Port’s energy policy and planning efforts, state and other local agencies have also been working to integrate energy planning with environmental and transportation planning The Governor’s Executive Order B-32-15 was adopted in July 2015 in order to support the state’s freight transportation system, achieve air emission reductions through a transition to zero-emission technologies, and ensure continued economic competitiveness Energy planning and investment in energy resources is an integral component described in the Order The effectiveness and sustainability of energy planning efforts will be dependent upon the extent to which the planning body considers and addresses all of the various related components, including air quality and transportation This integrated planning approach is being carried through in efforts like the California Sustainable Freight Action Plan Current Assets and Future Energy Needs In mid-2015, the report “Electrical Power Risk Assessment and Planning for Standby System Equipment” was completed in support of the Port’s business continuity efforts The report identified several risk factors for power interruptions that could affect long-term terminal operations The report assessed current electrical infrastructure in the Port, prioritized critical loads, and identified where to apply standby power to keep those critical loads operating The report emphasized the need to procure a fleet of traditional standby power (i.e diesel generators) but also highlighted the opportunity to integrate cleaner power under the Energy Initiative as it develops Building upon the Electric Power Risk Assessment work, the Port commissioned development of a Baseline Power Demand Assessment, completed in 2016 The expanded study looked at port-wide utility power demand for a 12-month period from 2014 to 2015 Results show the Port requires between 10-14MW for base load, and approximately 40MW for coincident peak demand Port of Long Beach Energy Initiative Roadmap These estimates not account for the Port’s Middle Harbor operations, which were under construction during the time the study was conducted However, the study estimated that a fully-electrified marine container terminal would use about times more power than a traditional container terminal Additional shore power requirements under the California Air Resources Board (CARB) rule that increased in 2017 and will continue to increase in the next few years were also not accounted for in this study, nor was additional electrification of terminal equipment throughout the Port At the time of this study, shore power accounted for 19% of the total energy used As the Port moves toward a zero emission future, our power demand will significantly increase Modernization of the remaining marine terminals at the Port could quadruple port-wide electrical demand the next 20-30 years To forecast future energy demand, the Port will integrate information from a variety of sources The Port is currently engaged in several initiatives that will influence our energy needs At the core of these initiatives is the Port’s Strategic Plan, which provides goals and objectives for various long- and shortterm Port programs The Energy Initiative must align with the mission, vision, and values stated in the Strategic Plan, and provide cost-effective alternatives to meeting the Port’s strategic goals Other Port programs, including the CAAP, the Port Master Plan update, Supply Chain Optimization, Sustainable Design Guidelines, and Business Continuity, are moving forward simultaneously The energy needs of these programs will continuously inform, or be informed by, the Energy Initiative efforts For Port of Long Beach Energy Initiative Roadmap example, the CAAP may provide information about the potential deployment of electricity-intensive technologies in Port operations and the supply chain optimization efforts may identify efficiency improvement strategies that have energy demand implications The Energy Initiative can also inform other efforts For example, it may help identify siting requirements for energy facilities in the Port Mater Plan or updates to the Sustainable Design Guidelines to include advanced energy infrastructure and controls during construction to avoid costly retrofits later It is critical that energy planning efforts are coordinated with other Port initiatives and capital programs and that these efforts are checked and updated as the Port’s strategic goals are met or reprioritized Energy Initiative Drivers There are several specific drivers that compel the Port to engage in energy planning As discussed earlier, the Port’s power demand in the future will significantly increase Yet, technologies relating to energy, such as generation, controls, storage, and distribution are dynamic, and could significantly improve the Port’s ability to maintain reliability, resiliency, and long-term cost-competitiveness The Port currently relies on SCE’s grid for electricity distribution, including the distribution (tie-in) of selfgenerated power The U.S Department of Energy (DOE) has predicted that, due to a variety of factors like severe weather events, equipment failures from aging infrastructure, and cybersecurity attacks, the frequency and duration of grid outages is anticipated to increase A 2015 study, Assessing Changes in the Reliability of the U.S Electric Power System (Lawrence Berkeley National Laboratory), found “a statistically significant trend in increasing annual average duration of power interruptions” over a 13year study period This trend, to a large extent, is attributed to extreme weather, including abnormally windy, cold, and wet climate events The report also found that the frequency of power outages is increasing for the same reasons The downtown area of Long Beach experienced the effects of a multi-day power outage during the summer of 2015 which resulted in negative economic and quality of life impacts to the public While the Port has a more modern grid infrastructure than downtown Long Beach, it is still vulnerable to potential outages As marine terminal operations become more dependent on electric power, adequate reliable power must be available so those operations can continue uninterrupted The economic consequences of a port wide power outage could be significant Rough estimates of financial loss from a 1-day portwide power outage could include over $100 million in spoilage of perishable cargo, and lost labor costs and wages The Governor’s Executive Order, the priorities outlined by the regulatory agencies, and the Port’s priorities for air emission and greenhouse gas reductions reflect technological innovations in marine transportation equipment that rely primarily on non-fossil fuel sources As a result, environmental planning and energy management need to be integrated to support these efforts and ensure their success Future energy projects offer an opportunity for furthering progress toward meeting the Port’s Green Port Policy goals Demonstration of green power options will result in reduced greenhouse gas Port of Long Beach Energy Initiative Roadmap emissions by the Port and marine terminal operations The Port may be able to leverage the current momentum and interest in renewable energy and energy technologies by the regulatory agencies, and their apparent interest in dedicating resources, both in terms of technical support and funding opportunities As Port tenants consider investments in greater electrification, an increasing proportion of their operating costs will be associated with procuring power Future energy costs can be predicted by analyzing past increases, but energy generation and transmission paradigms are vulnerable to rapidlychanging technological, economic, and political factors Securing energy resources that can provide long-term cost stability for our tenants adds to our value proposition and would give the Port of Long Beach a competitive advantage for attracting and maintaining customers Potential new customers interested in modern, reliable infrastructure – particularly for energy intensive uses like cold storage— may be attracted to business with the Port of Long Beach as result of predictable costs associated with newly procured energy resources The Center for Labor Research and Education at the University of California reports that since 2012, over 30,000 jobs have been created in California due to the advancement of clean power As a direct consequence, they estimate that $46.6 million has been invested in apprenticeship training The Port’s Energy Initiative could provide partnership and training opportunities in association with labor apprenticeship programs and support the City’s desire to become an important technical innovation hub Finally, the Port has an interest in evaluating the energy system and optimizing its effectiveness on a port-wide basis – a systems integration approach SCE is doing this type of assessment on a grid-wide scale The Port’s focus is much narrower and specific to ensuring our system meets the needs of Port users in the most economical and efficient way A well-planned, system integration approach will allow us to best match the various sources of power - such as on-site generation, storage, grid power, and fuels – with the energy demand over a port-wide area, which provides greater efficiencies and minimizes waste Many tenants are considering on-site power generation through solar or other technologies The Port is uniquely positioned to help integrate these systems, and to help make sure the right choices are made for the overall benefit of the Port and our tenants, to preserve future resiliency and flexibility, ensure that the various systems are able to communicate securely, and to maintain an appropriately-sized system Goal Statement: The Port’s Energy Initiative will improve port-wide energy management and infrastructure to increase system resiliency, provide long-term value, and create new business opportunities, while achieving the Port’s environmental goals and regulatory mandates Port of Long Beach Energy Initiative Roadmap Partnerships and Advisories To inform our energy planning process, Port staff continue to develop strong relationships with a variety of external partners that have experience and expertise It is the Port’s intent that these partners participate in the implementation of energy projects, provide funding assistance, help facilitate permitting or other regulatory approvals for projects, advise on development and implementation efforts, and/or help to identify and resolve potential barriers to implementation The Port has strengthened our existing relationship with SCE, to better understand their programs and the available resources that can provide benefits to the Port and our tenants Port staff and representatives from other City departments meet with SCE monthly as part of the Long Beach Energy Leader program This group establishes energy efficiency and design goals that maximize SCE incentives The Port has earned tens of thousands of dollars in rebates and contributes toward discounts in electricity rates throughout the City SCE’s technical staff have collaborated with the Port to test LED high mast lights at Pier A, and they provide assistance in optimizing buildings and energy systems to save money In addition, since 2015, port staff has been participating in the California Energy Commission’s (CEC’s) Port Energy Collaborative, a group convened by CEC Commissioner Janea Scott California ports meet monthly to learn more about the technical resources and support available within CEC, to discuss energy-related efforts being led by the various California seaports, and to understand the funding opportunities available from CEC The Port is developing relationships with the DOE’s national laboratories The National Renewable Energy Laboratory (NREL) focuses on applied energy and the only national lab exclusively focused on renewable energy, energy efficiencies and systems integration Their mission is to provide objective, technological, and neutral analyses NREL works in partnership across all industries to advance energy related technologies and to provide technical support in decision making Through the use of their supercomputer simulation tools, NREL is able to test and verify proposed projects to ensure they will be successful and meet specified energy goals prior to implementation NREL has provided similar support to the United States Navy at military bases across the globe to meet their efficiency and resiliency goals NREL can also provide potential opportunities to access federal funding for projects through DOE Sandia National Laboratories and the Lawrence Livermore National Laboratory also provide energy support to industry and government In conjunction with the U.S Maritime Administration, these laboratories could partner with the Port on future energy projects, especially those related to fuel cells and hydrogen systems The Port has established a partnership with University of California Irvine’s, Advanced Power and Energy Program, both in providing data to support their research and in commissioning technical reviews During the course of the Energy Initiative, the Port will seek to promote partnerships with other academic institutions, particularly those in Long Beach Port of Long Beach Energy Initiative Roadmap The experience and tools contributed through these partnerships, and others, will assist the Port in making the right choices to meet our goals expeditiously and economically, and will help address our needs as implementation of the Energy Initiative moves forward Advocacy The Port of Long Beach has long demonstrated leadership in advancing green technologies for goods movement to improve air quality and optimize freight transportation This early action can have the effect of increasing costs for our tenants compared to marine terminal operators with facilities in other seaports where these efforts are not a priority Therefore, Long Beach advocates to local, state, and federal representatives to encourage financial support for our early action initiatives and to share best practices that could be implemented more broadly One area where we continue to engage in these efforts is to review draft legislation to ensure that any relevant approaches to improve seaport operations consider cost and availability of energy technologies that must be used to support these improvements Approach to Program Development The Port intends to take a deliberate, measured approach in developing the Energy Initiative program, taking time to learn and evaluate along the way so that informed choices are made Learning, assessment (including modeling and scalable demonstrations), design and specification improvements, and construction tasks will be reviewed by multiple experts and checked against existing Port control systems (quality assurance, financial controls, fair bidding, Harbor Commission approvals, etc.) Understanding the Port’s baseline energy use was critical first step in moving the Energy Initiative forward To that end, a Port-wide Power Demand Assessment and Survey, described earlier, was completed in 2016 Studies Educating Port staff and stakeholders in current energy technologies and the potential applications of each technology in a seaport setting has been another early priority To date, consultants and Port staff wrote four technology whitepapers, which are summarized below: Renewable Energy This white paper considered solar, geothermal, wind, tidal and wave power, and flywheel energy generation technologies According to the analysis, solar and flywheel technologies, particularly flywheels in cranes, merit consideration as viable, near-term renewable energy opportunities Geothermal energy production may be another viable option, but that permitting and siting requirements may be barriers Wind data modeled by AWS TruePower at the Port showed that wind power has low potential for cost-effective energy production due to the low wind speeds that don’t 10 Port of Long Beach Energy Initiative Roadmap match current wind turbine technologies Tidal and wave technologies have not become fully commercialized but may provide a solution in the future Microgrids Microgrids are small-scale power grids that can manage local power generation sources and loads They can operate independently or in conjunction with a main electrical grid The DOE defines a microgrid as: “A group of interconnected loads and distributed energy resources with clearly defined electrical boundaries that acts as a single controllable entity with respect to the grid [and]… can connect and disconnect from the grid to enable it to operate in both grid-connected or island-mode.” Microgrids align with Port Energy Initiative goals by providing improved energy security, resiliency, power quality, reduced load on the utility, increased grid functionality, and potentially lower electricity costs Improved resiliency is achieved largely due to a microgrid’s ability to allocate power (which could be stored or generated at a Port site) during utility grid outages and hasten power recovery Higher power quality results from microgrid mitigation of power quality fluctuations through processes such as dispatching energy storage and switching loads Microgrids can maximize energy flow and manage renewables, creating a lower dependence on the grid which could result in reduced utility infrastructure needs and costs Fuel Cells Fuel cells are capable of providing power generation at multiple scales and can satisfy both heat and power needs Fuel cells are also being evaluated in zero-emission vehicle applications including for terminal equipment, light-, medium-, and heavy-duty vehicles, and locomotives Fuel cells are advantageous due to their high efficiencies when resultant thermal energy is captured to meet heating demand They also have the benefits of zero local pollutant emissions, very low greenhouse gas emissions, and virtually net zero water consumption Mobile applications of fuel cells, such as fuel cell engines, support low emission motive power in line with Port emission reduction goals Energy Storage Multiple energy storage technologies are applicable to the Port operations, particularly for uses that boost resiliency, maximize use of solar energy, and balance daily energy costs Major categories include chemical (e.g battery), hydrogen and other gases, mechanical, thermal energy storage, and supermagnetic conducting energy storage The appropriate technology, or combination of technologies, depends on the topography and limitations of the host site, environmental impacts, cost-effectiveness, amount of power needed and dispatch time Energy storage will be critical for optimizing energy use and generation, managing distributed energy resources including renewables, decreasing reliance on the SCE grid, and even reducing the cost of electricity for Port tenants According to the California Energy Commission blog, June 15, 2015: “Energy storage technology is being hailed globally as the game-changer toward reliably managing low-carbon, greener electricity grids 11 Port of Long Beach Energy Initiative Roadmap California, a national leader in advancing energy storage, envisioned this technology as a critical component in reducing global warming, improving air quality, and promoting energy independence.” This means that large-scale energy storage will be a critical factor in meeting carbon reduction goals by bridging power demand when intermittent renewable resources are underproducing Currently, this need is met by low-efficiency, fossil-fueled peaker plants Upcoming Investigations The Port is assessing the legal and regulatory frameworks for power generation, purchasing, and controls Studies related to microgrid configurations for the JCCC and Maintenance Yard are underway And finally, a modeling effort that will help the Port understand potential for geothermal power generation is about to commence Near-Term Priorities Energy Efficiency Energy efficiency upgrades have multiple benefits: they reduce operational energy costs, lower emissions related to fossil-fueled power generation, create manufacturing and installation jobs, and lower the energy demand throughout the system Many energy efficiency strategies are relatively easy to implement Energy efficiency provides long-term value, one of the key goals of the Energy Initiative The Port rolled out our Energy Efficiency Rebate Match program (EERM) in early 2016 to incentivize our tenants to replace older equipment, such as light fixtures, pumps, and HVAC systems, with energysaving equivalents The EERM established a fund that leverages SCE’s equipment rebates, essentially doubling the value of the rebates Port tenants can obtain by enrolling in the program Traditionally, Port tenants have underutilized SCE’s rebate program, which is funded with rate-payer monies, and the EERM seeks to provide an “extra push.” However, in the year since the program was approved by the Harbor Commission, the level of interest from tenants has been low Port staff will conduct additional outreach to determine whether changes to the program are warranted Energy efficiency is not limited to tenant operations Buildings owned and operated by the Port are undergoing energy evaluations and retrofits, and equipment, such as streetlights and stormwater pumps, is being replaced Energy Pilot Projects Pilot projects provide a real-world understanding of energy technology applications, the benefits they can provide, the operation and maintenance requirements, the costs, the regulatory requirements, and other decision-making factors Pilot projects can enhance the Port’s practical knowledge of renewable power generation, energy storage, microgrid controls, alternative fuels, and other emerging technologies Energy systems simulation modeling and other decision making tools can also be utilized to help design the most effective projects Demonstrations can provide information necessary to develop design criteria and bid specifications to construct future installations, and also to understand 12 Port of Long Beach Energy Initiative Roadmap long-term maintenance and operational requirements It is critical that the Port test various energy integration systems that can be designed into new terminals because potential infrastructure retrofits, after a terminal has already been constructed, will likely be much more expensive and disruptive to tenant operations In addition, pilot projects can be designed for long-term utility and can assist with Energy Initiative implementation by providing a starting point for future expansion The two sites that have been identified as good candidates for early pilot projects are at the Port’s Joint Command and Control Center (JCCC) and the maintenance facility (Maintenance Yard) Both sites are Port owned and operated and pilot projects would be designed to meet the Energy Initiative goals The JCCC is a critical security asset for the Port complex The objective of this pilot project is to ensure energy resiliency, improve reliability, and reduce emissions for the facility by providing islanding capability through a combination of energy-use optimization, on-site generation, energy storage, and microgrid controls The proposed pilot project would evaluate and implement energy efficiency and demand-side management strategies, install photovoltaic energy generation, and install in energy storage and microgrid controls The energy storage system could either be developed as a permanent on-site installation, or could be developed as a mobile, zero-emission mobile generator to provide backup power to critical facilities, such as pump stations and refrigerated containers during outages The microgrid could also support the neighboring Jacobsen Pilot Services facility, and could be expandable to other existing or future facilities The Maintenance Yard’s existing solar photovoltaic (PV) system generates electricity in excess of the facility’s current needs during times of peak solar insolation (the times that the sun is shining on the panels) At other times, when it’s cloudy or dark, the Maintenance Yard uses electricity from the grid The Maintenance Yard pilot project can be separated into several phases and each phase can be conducted independently The initial objective of the pilot project would be to optimize energy use (integrated demand-side management) and utilize the excess solar power generation through use of energy storage and microgrid controls These phases reduce operational costs and provide resiliency in the event of an outage The next phases could be to expand roof-top solar PV generation and convert the excess power into clean fuel, such as hydrogen, which can be used to store energy and/or fuel vehicles or other mobile equipment The Port is currently exploring options for partnerships and funding to leverage Port budgeted funds for these two proposed pilot projects Zero Emission Equipment Infrastructure Since the adoption of the original CAAP in 2006 and the update in 2010, the operators at the Port of Long Beach and the Port of Los Angeles, have invested more than a billion dollars in cleaner trucks, cargo-handling equipment, and strategies such as shore power in order to reduce air emissions This 13 Port of Long Beach Energy Initiative Roadmap movement toward zero emissions has a multitude of implications for energy consumption at the Port Of particular concern is that the demand for electricity is projected to dramatically increase due to electrification, affecting energy resiliency, availability, reliability, cost-stability, efficiency, and sustainability CAAP 2017, anticipated for adoption later this year, is currently in development The plan will identify the pathway for the ports to move toward zero emissions The document lays out major strategies which align with the State’s Sustainable Freight Action Plan The focus areas are clean vehicles and equipment technology, freight infrastructure investment and planning, and freight efficiency improvements In addition, the ports identify the need for energy resource planning to support implementation of these efforts The ports recognize that we must plan for the energy resource needs as a critical part of the path to zero-emissions due to the importance of available energy infrastructure and supply to support operation of these clean technologies The types of equipment that will be incorporated into the energy planning process include supporting electric and alternative energy (such as hydrogen) equipment, and other emerging technologies Per the CAAP discussion document, the ports are seeking to replace all terminal equipment with zero-emissions equipment by 2030 The California Air Resources Board has also recently indicated they will also be developing amendments to their cargo handling equipment regulation to achieve up to 100% compliance with zero emissions equipment by 2030 Another major strategy identified in the CAAP is to move on-road trucks to cleaner technologies, with a goal of zero emission trucks by 2035 Switching to battery-electric and plug-in hybrid electric trucks will also increase electricity demands at the Port Fuel cell trucks will require hydrogen infrastructure and supply These efforts will drive the timeline for implementation of this equipment and therefore it will be critical that the Port plan for the resulting increased electrical power needs in the near-term In order to deploy CAAP strategies, the two Ports have committed to developing design criteria and terminal infrastructure plans to support equipment electrification, alternative fuels, and other energy resource goals This effort will require collaboration between various stakeholders, including the Ports, technology developers, manufacturers, and regulators and will be increasingly important in the nearterm as Port tenants receive grant funding for demonstration and early deployment of zero emission equipment One example of these efforts already underway is the establishment of a working group to determine a charging standard for heavy-duty terminal equipment and evaluate different charging systems The Port of Long Beach will work closely with our utility provider, SCE, on improving energy infrastructure and developing standards, as well developing partnerships with other agencies and organizations It is particularly important to the Port to emphasize within these collaborations and partnerships the implications of CAAP strategies, particularly electrification of equipment, for Port resiliency and risk As terminals plug-in more of their equipment at different hours due to the variety of operations, and in some cases require back-up energy supplies, the Port will need to shape energy plans 14 Port of Long Beach Energy Initiative Roadmap which not only meet current and future energy demand for terminal operators, but also maximize cost savings and minimize risk of power disruptions to Port operations Energy Demand Forecasting Anticipating future electrical demand will be critical for determining appropriate technologies for investment, designing pilot projects, sizing new equipment and infrastructure, and providing supporting evidence for strategy development By forecasting electrical demand, the Port may minimize unnecessary expenditures such as oversizing equipment or systems This will be a critical early step in the planning process – to understand the scope of the potential energy needs – so we can identify the appropriate options for meeting those needs Funding A mix of funding strategies will likely be needed to implement the Energy Initiative Selection of funding strategy needs to reflect a number variables, such as operational need, identification of economic beneficiaries, return on investment, potential tax advantages, leverage of partner monies, investment sharing, loan instruments, and so on Because tenants own equipment used on their facilities, they may elect to capitalize major energy investments or participate in a third-party investment program where another entity provides contractual services and maintenance of equipment This is a common financing technique for large renewable energy projects, where the capital costs are amortized over several years Often there are tax benefits to non-governmental agencies making this advantageous to commercial enterprises Some third party investors also provide energy efficiency equipment and defray costs by sharing the savings on the customer’s energy bill In addition, SCE provides interest-free, on-bill financing for energy efficiency equipment with a 5-year pay-back period The Port can elect to fund energy projects, either as stand-alone projects or incorporate them into larger facility design Costs for facility improvements can be embedded into lease rates Some facility improvements, such as microgrids, power generation, and energy storage, could be constructed to be used by multiple tenants and the costs could be shared accordingly As a long-range strategy, there may be a time when clean, utility-scale energy generation within Port property becomes cost effective and the Port could become an energy purveyor, charging customers for power as utility that is either independent of SCE’s grid, or supplements the grid Funding for energy projects through grants is available from a number of agencies including the California Energy Commission, US Department of Energy, the California Air Resources Board, South Coast Air Quality Management District, and others Port staff currently subscribe to agency listservers and stay apprised of potential funding opportunities However, grant funding is typically reserved for emerging technologies 15 Port of Long Beach Energy Initiative Roadmap Partner funding may also be available SCE is working with the Port to test energy strategies that may mutually benefit the Port or our tenants and have commercialization potential for their other customers Other utilities, vendors, universities, institutes, and grant recipients may present partner funding opportunities Port staff is active in outreach to these entities via participation on conference panels, agency working groups, the Port’s web site, and tenant events Strategic Energy Planning Process and Long-term Approach This Roadmap is intended to serve as a discussion document on the high-level approach to proceeding with the Energy Initiative, and is intended to result in feedback and guidance from the Harbor Commission and other advisors on the next steps As more information on various energy options becomes available, and direction is provided for steps forward, a Strategic Energy Plan will be developed This plan will include: • • • • • • • • • • • Goals and objectives for the Energy Initiative Technology review (including summary of work performed to date) Forecast of electrical demands Energy systems modeling Land availability and siting Implementation strategies Evaluation tools, metrics, and criteria for project prioritization and decision-making Energy design criteria Partnerships Funding Process and timeline for fulfilling Energy Initiative goals and objects Investments in the construction of energy infrastructure to implement the Energy Initiative will be directed by the Board of Harbor Commissioners Port staff will use decision-making criteria outlined in the Strategic Energy Plan and ensure that all stakeholders are engaged and empowered to provide necessary input for recommendations to the Harbor Commission The Strategic Energy Plan will also outline a sensible process for the evolution of the Port’s design guidelines and implementation of best energy practices into new terminal designs, infrastructure, and other capital projects Conclusion In moving toward a zero-emission future, the Port has identified the need to improve our energy infrastructure and choices to make our energy systems more resilient, stabilize operating costs, create new business opportunities and jobs, all while meeting regulatory and community needs The Energy Initiative informs and prepares the Port so that it can address complex systems and emerging – and 16 Port of Long Beach Energy Initiative Roadmap often, competing – technologies in a systematic and cost-effective manner The Port intends to approach development of the Energy Initiative as guided by the priorities identified in the table below Energy Initiative Priorities Near-term (1 year) Mid-term (2-5 years) Long-term (5+ years) • Refine the scope of the pilot project at the Joint Command and Control Center (JCCC) to incorporate solar generation, energy storage and microgrid controls, and submit an application for grant funding (i.e California Energy Commission microgrid solicitation anticipated this summer) • Secure technical resources to assist with Energy Initiative development and implementation, including contracts with the National Renewable Energy Laboratory (NREL) and technical consultants • Continue to implement the Energy Efficiency Rebate Match (EERM) program to provide incentives for port tenants to reduce energy use Consider modifications to increase participation • Continue to gather technical information on power generation technologies to supplement existing white papers and studies, including information on available geothermal energy resources • Prepare a forecast of potential future energy needs, including the anticipated energy demand associated with zero-emission equipment deployment • Continue to gather the latest technical information on power generation technologies to best meet the Port’s Energy Initiative goals and objectives • Continue to implement the Energy Efficiency Rebate Match (EERM) program to provide incentives for port tenants to reduce energy use • Implement JCCC pilot project and evaluate use of technologies for future applications in the port • Refine the scope of the pilot project at the Maintenance Yard, and seek grant funding as available to initiate the project • Prepare a Strategic Energy Plan to outline the Port’s energyrelated goals, specific objectives, technical alternatives and strategies, and decision-making approach Include prioritization of meeting critical loads first, and long-term implementation • Develop design standards for new energy infrastructure • Develop electrical infrastructure plans and proceed with capital improvement program to support zero emission terminal equipment deployment • Ongoing implementation of Strategic Energy Plan • Design energy infrastructure into new capital improvement projects 17 Port of Long Beach Energy Initiative Roadmap Glossary California Sustainable Freight Action Plan – the integrated action plan which “establishes clear targets to improve freight efficiency, transition to zero-emission technologies, and increase competitiveness of California's freight system,” as described in the Governor’s Executive Order B-32-15 Coincident baseload – baseload is the minimum level of energy required from an electrical grid by a user Coincident baseload is the minimum level required by a group of users at a single, specific time Distributed generation – on-site (decentralized) power generation requiring shorter transmission distances between generation and end-user than centralized power generation such as the local utility power stations Energy efficiency – the ratio between useful power output to the electrical power consumed Governor’s Executive Order B-32-15 – directs the Secretary of California State Transportation Agency (CALSTA), Secretary of the California Environmental Protection Agency (CalEPA), and the Secretary of the Natural Resources Agency to lead other relevant State departments in developing an integrated action plan by July 2016 that "establishes clear targets to improve freight efficiency, transition to zero-emission technologies, and increase competitiveness of California's freight system." Integrated energy planning – planning approach which considers the supply and demand of energy and the role of energy efficiency Islanding – powering a site via distributed generation without utilizing electrical power from the grid Load-following – the addition or subtraction of power to available energy supplies to meet current power demand Microgrid - A group of interconnected loads and distributed energy resources with clearly defined electrical boundaries that acts as a single controllable entity with respect to the grid [and]… can connect and disconnect from the grid to enable it to operate in both grid-connected or island-mode Power demand – the maximum amount of power utilized at a given moment Renewable energy – energy from a resource which can theoretically be replaced rapidly via natural processes such as wind or solar Smart controls – electrical controls which have advanced technical capabilities to sense, analyze, and control electrical power Standby power – describes the power which is lost when a device or system is not in use Systems integration – the process by which different subsystems are joined into one larger system 18