The report recommends approving the proposed 262-megawatt peaker power plant in Oxnard. The nearly 1,200-page California Energy Commission report found that the plant would operate as intended and that environmental impacts could be mitigated if regulations are followed. The report also refuted claims that the site would flood from tsunamis or sea level rise. The Energy Commission held public meetings to explain the findings and status of the proposed plant. The commission recommends approving the plant if certain conditions are met to ensure public safety and compliance with engineering standards.
PG&E's pledge to replace Diablo Canyon power won't be easy
1. 6A Pacific Coast Business Times July 29 - August 4, 2016
By Philip Joens
Staff Writer
A recent California Energy Commis-
sion report said a proposed peaker power
plant in Oxnard would work as designed
and that environmental effects would be
mitigated if the project is built.
The energy commission released the
nearly1,200pagereportonJune17,which
said federal, state and local engineering
regulations would be followed if the plant
isbuilt.Thereportalsorefutedopponents’
claimsthesitewouldbesubjecttoflooding
from tsunamis and rising sea levels.
To help the public understand the re-
port,theenergycommissionheldmeetings
July21tobriefthepubliconthereportand
the current status of the power plant.
“Energy Commission staff recom-
mends that the proposed conditions of
certificationbeadoptedtoensurethatthe
project is designed and constructed in a
mannerthatprotectsthepublichealthand
safetyandcomplieswithallapplicableen-
gineering (laws, ordinances, regulations
and standards),” the report said.
On April 15, 2015, Houston-based NRG
Energyfiledanapplicationwiththeenergy
commission seeking to build a 262-mega-
watt peaker power plant on Mandalay
BeachnexttothecurrentMandalayGener-
ating Station. NRG wants to install a natu-
ralgaspoweredcombustionengine,which
is essentially a natural gas powered jet en-
gine that can be fired up in 10 minutes.
Peakerplantsarepowerplantsthatcan
bequicklyturnedonandofftorespondto
lateafternoonpowersurgeswhenthegrid
needs more power.
By Philip Joens
Staff Writer
NestledontheCarrizoPlaininSanLuisObispoCountyis$3.8
billion worth of solar panels.
There, two sprawling solar farms that seem to stretch on for
milesproduceacombined800megawattsofelectricity,provide
enoughpowerfor260,000homesandoffset700,000tonsofcar-
bon emissions.
InnearbyAvilaBeach,theDiabloCanyonPowerPlantproduc-
es18,000gigawattsofelectricityannuallyormorethan20times
theamountofpowerproducedbythetwosolarfarms.Withthe
Diablo Canyon nuclear power plant closing by the end of 2025,
regionalandstateleadersaretakingactiontoensureresidentshave
access to more solar energy.
“That’s not trivial, 18,000 gigawatts,” said Jon Miller, utility
program manager for San Luis Obispo-based REC Solar. “It’s not
like we’re going to replace that overnight.”
When Pacific Gas & Electric announced June 21 that it would
closeDiabloCanyonby2025,thecompanysaiditplannedtore-
placeitsoutputwithaportfolioofrenewableenergy.PG&Edidso
becauseregulatorsforcedtheirhand.InOctober,CaliforniaGov.
JerryBrownsignedabillthatrequiresthestatetogethalfitselec-
tricity from renewable energy by 2030.
“It’sgoingtocostlessoverallasatotalpackagethanifyoujust
continued to operate Diablo Canyon,” PG&E CEO Tony Earley
said on a call with reporters June 21.
By making the decision to announce the plant’s closure now
though, PG&E gives itself nine years to find and develop renew-
able resources.
WhentheSanOnofreNuclearPowerPlantsuddenlyclosedin
2013becauseofmaintenanceproblems,fossilfuelscreatedpow-
er in its place, Lt. Gov. Gavin Newsom said at a California State
Lands Commission meeting June 28.
“San Onofre was a disaster,” Newsom said. “It increased en-
ergy costs and it increased greenhouse gas emissions.”
In its proposal to close the Diablo Canyon plant, PG&E said
replacementpowerplantswillbebuiltinthreephases.Between
2018 and 2024, PG&E will create 2,000 gigawatts of renewable
electricity. Another 2,000 gigawatts of renewable power will be
brought online between 2025 and 2030.
After 2031, PG&E said, 55 percent of electricity sold will come
from renewable energy resources. A PG&E spokesman declined
tosaywhattypesofrenewableenergythecompanymightinvestin
and the proposal is just as vague.
“It would be a mistake to try to specify all the necessary re-
placement (resources) now,” the proposal states.
Millersaidhavingadiverseportfolioofrenewableswillbekey
More massive solar farms like this one on the Carrizo Plain will be needed for the state to reach renewable energy mandates.
NIKBLASKOVICHFILEPHOTO
see RENEWABLE on page 8A
PG&E delays filing joint
proposal with CPUC
PacificGasandElectric,alongwithlabor
andenvironmentalgroups,aredelayingthe
planned July 28 filing with the California
Public Utilities Commission of their joint
proposal to increase investment in energy
efficiency, renewables and storage beyond
current state mandates while phasing out
PG&E’s production of nuclear power in Cal-
ifornia by 2025.
Parties to the proposal supported the
two-weekdelayinordertocontinueongoing
discussionswithseveralstakeholdergroups
thathaveprovidedfeedback,includingthe
county of San Luis Obispo and the San Luis
Coastal Unified School District.
PG&E and the original parties are fo-
cusedonacontinueddialogueandexploring
the issues raised in order to seek potential
solutionsthatcouldbeintegratedintothefil-
ing with the CPUC on or before Aug. 11.
PG&E, along with International Broth-
erhood of Electrical Workers Local 1245,
Coalition of California Utility Employees,
Friends of the Earth, Natural Resources De-
fense Council, Environment California and
the Alliance for Nuclear Responsibility, an-
nounced the joint proposal on June 21.
ARRO Autogas opens
20th refueling station
ARRO Autogas, a subsidiary of Paso Ro-
bles-based Delta Liquid Energy, opened its
20th refueling station in California, provid-
ing propane for vehicles like school buses.
The new station is located in Exeter.
“We provide propane for an awful lot of
engines in the region, not just vehicles but
alsowindmachines,waterpumpsandagri-
cultural applications,” said Delta Liquid En-
ergy President Bill Platz.
In addition to public partnerships like
the one with the city of Exeter, the family
owned and operated network supplies al-
ternativefuelstocompaniesthroughoutthe
Tri-Counties,Platzsaid,suchasRoadrunner
Shuttle, Schwan Foods and Mission Linen.
Ventura conservancy
hosts Family Fun Day
The Ventura Hillsides Conservancy will
host a Family Fun Day at its Big Rock Na-
ture Preserve from 10 a.m. to noon Aug. 6.
Thisfree,family-friendly,open-to-the-pub-
licoutdooreventwillincludenature-themed
crafts,anenvironmentalscavengerhuntand
a biologist-led hike along the banks of the
Ventura River.
“It has been several months since our
generousvolunteershelpedusplantthe500
trees that are taking root at our Big Rock
Preserve and we are eager to show off our
work,” said Derek Poultney, VHC executive
director.
July 29-August 4, 2016 A Business Times corridor report Page 7A
see PEAKER PLANT on page 8A
Briefcase
Race for renewables
PG&E’spledgetoreplaceDiabloCanyonpowerwon’tbeeasy
Report recommends proposed Oxnard peaker plant
ACG
Weakpesocouldbetroubleforagproducers
By Marissa Nall
Staff Writer
Mexican imports could look increasingly attractive to
U.S. buyers as the peso continues to weaken relative to
the dollar.
Economic growth in Mexico is expected to be around
2.3percentthisyear,continuingaslowdownthatstarted
in2013whenitfellbelow3percentandmakingthepeso
theyear’sworstperformingcurrency.Weakerinvestment
spending,depressedoilprices,downwardpressureonthe
pesoandforeigninflationaretoblame,accordingtoare-
port compiled by Sung Won Sohn, the Martin V. Smith
Professor of Economics at CSU Channel Islands.
“It will be a competitive sore spot for U.S. producers
in California,” said Michael Swanson, chief agricultural
economist for Wells Fargo. “Strawberries and produce, if
they’re paying Mexican labor, Mexican water, Mexican
infrastructure,that’sgoingtocertainlygivethemalegup
ontheU.S.costs.Whethertheycanexpand,that’sanother
question.”
CheaperMexicanimportscoulddrivedowncroppric-
es in the region, especially for its main competitors for
strawberries, citrus and avocados, but so far Mexico has
seenweakdemandforitsnon-oilproducts,thereportsaid.
“For a developing nation such as Mexico, they should
be developing at a much faster rate,” Sohn said.
Mexico was the third largest destination for U.S. ag
exports — $18 billion in 2015, primarily comprised of
grains, meats and dairy, according to the Office of the
United States Trade Representative. It was also the sec-
ondlargestsourceofagimportswith$21billionthesame
year, mainly fresh and processed fruit and vegetables,
wine, beer and snack foods.
Around 60 percent of Mexico’s total ag exports go
to the U.S. and ag contributes to 8 percent of the coun-
try’s total GDP and 22 percent of its labor force. Sluggish
growth domestically could be a factor in weak Mexican
imports and the peso’s decline, Sohn said.
Productivity in Mexico is also hit or miss, he added,
andAmericanconsumerstendtovaluequalityandtrace-
ability over price.
SomeMexicansupplierscouldbewaitingtoseeifthe
exchange rate will settle before they make long-term in-
vestments,Swansonsaid.Ifthetrendcontinues,Mexican
suppliers will have time to expand production and offer
more products to U.S. consumers at those lower prices.
“(It’s) a question of timing to some degree. It takes a
while to put some additional supply into place.”
ALTERNATIVE MEASURES
VenturaCountyagriculturerepresentativesmettodis-
cuss the Stop Sprawl With Sustainable Agriculture bal-
lotmeasureJune21ataforumsponsoredbytheVentura
County CoLAB Foundation.
Also called Sustain VC, it uses SOAR language but
addresses water restrictions and calls for an additional
225acres,in12-15acreparcels,throughoutthecountyfor
processing facilities.
The proposed SOAR renewal only allows for 12 acres
ofadditionalprocessing,inparcelsofthreeacresorfewer.
Sustain VC also calls for scientific and research facilities
to support agriculture.
The measure competes with SOAR only at the county
level, said CoLAB Secretary Lynn Jensen. Individual city
measures would not be affected and the proposal main-
tains urban boundaries and voting requirements.
ConsultantsfromtheEconomicDevelopmentCollab-
orative-VenturaCounty,AppliedDevelopmentEconom-
ics and the Hatamiya Group presented findings from a
reporttheycompletedlastyearindicatingthatincreased
agriculturalprocessingcouldcreate4,500jobsandgener-
ate $1.33 billion in total revenue for the county.
Most of the additional development would likely be
fromlocalcompaniesthatwanttoexpandexistingopera-
tions or add additional functions to their packaging and
processing facilities, Jensen said.
Bothinitiativesmakeallowancesforthedevelopment
offarmworkerhousing.Ifapproved,SustainVCwouldbe
in effect until 2036 and require an economic feasibility
study analyzing its effects on housing costs, job growth
and traffic, no later than 2026. The SOAR proposal would
expire in 2050.
“Wearen’targuingorchallengingthecurblines,”Jen-
sen said. “Our measure is simply to strengthen the goals
and policies for agriculture in Ventura County.”
MORE THAN LEMONS
Santa Paula-based Limoneira added its oranges and
specialty citrus varieties to its One World of Fresh Cit-
rusmodel,partneringwithCeceliaPackingoutofOrange
Grove.
“For 124 years, we’ve been growing a wide variety of
citrus,” Alex Teague, chief operating officer for Limonei-
ra, said in a statement. “We began our direct selling pro-
gramforlemonssixyearsagoandweareexcitedtoonce
againhaveourorangesandothercitrusvarietiesmarketed
in Limoneira cartons.”
Theagribusinessandrealestatedevelopmentcompany
produceslemons,avocados,orangesandspecialtycitrus
on nearly 11,000 acres in California and Arizona.
Varieties included in the expansion are Cara Cara
Navels, Moro Blood oranges, Pummelos and Star Ruby
grapefruit.
“We look forward to the opportunity to grow the cat-
egoryandconnectshopperstoothercitrustrees,”saidDi-
rector of Global Sales John Carter.
• Contact Marissa Nall at mnall@pacbiztimes.com.
Agriculture
2. 8A Pacific Coast Business Times July 29 - August 4, 2016
The Pacific Coast Business Times/
UCSB Economic Forecast Project rose 0.24
percentfortheweekendedJuly22,trailing
the NASDAQ and other national indices.
Bank of America showed the week’s
highest gains, with a jump of 5.3 percent.
The major regional employer ended at
$14.38 after beating analyst estimates for
quarterly earnings.
Inphi, a semiconductor provider with
offices in Westlake Village, tied Resonant,
aradiofrequencyfront-enddesigneroutof
Goleta, with gains of 4.0 percent. Shares
for the two companies ended the week at
$34.90 and $4.53, respectively, ahead of
earnings reports expected in early August.
Heritage Oaks Bancorp shed 2.7 per-
cent after a 5 percent bump the previous
week. Shares for the Paso Robles company
endedat$8.23afteritextendedthedeadline
on its stock repurchase program.
Deckers Outdoor fell 2.5 percent to
$60.66. Shares for the Goleta footwear and
apparelcompanyareup8.6percentforthe
month.
Defense and technology company Ray-
theon, with offices in Goleta, fell 2.2 per-
cent, ending at 135.60.
Amgen reported a 6 percent increase in
revenue and a 15 percent increase in earn-
ingspershareinitssecondquarterearnings
results July 27.
Revenues grew to $5.7 billion thanks to
higher sales of the company’s drugs Enbrel,
Prolia, Kyprolis and Xgeva, and operating
incomeincreased15percentoverthesecond
quarter of 2015 to $2.4 million.
With earnings of $2.47
pershare,Amgenincreased
its revenue guidance from
around $22.2 billion to
around $22.5 billion for fiscal year 2016.
Higher prices for top-selling products
Enbrel and Neulasta led to a 3.8 percent in-
creaseinoperatingmarginforthecompany,
partiallyhamperedbycompetitionfrombio-
similarsforitsdrugsNeupogenandEpogen.
Researchanddevelopmentcostsdecreased
7percentandadministrativecostsincreased
11percent,offsetsomewhatbyefficienciesin
manufacturing.
Capital expenditures for 2016 are antici-
pated to reach $700 million. The company
hadcashandinvestmentsof$35billionwith
outstandingdebtof$33.2billion.Amgenhas
$3.6 billion of stock repurchase authoriza-
tionremainingafterbuying
back 3.9 million shares this
quarter.
Amgen also settled a
lawsuit and released positive news about a
breast cancer biosimilar recently.
The Thousand Oaks-based biotech giant
said July 20 the company reached a settle-
ment stemming from a class action lawsuit
involving shareholders who sued the com-
panyoversharestheyboughtbetweenApril
22, 2004 and May 10, 2007. Amgen agreed
topay$95millionbutdidnotadmitfaultand
saidinanewsreleasethecompanybelieves
the suit has no merit.
On July 21, Amgen and Dublin-based Al-
lerganreleasedpositivenewsaboutbiosimilar
ABP 980.
ABP 980 is an early breast cancer treat-
mentdrugsimilartoGenentech’sHerceptin,
also known as trastuzumab. Amgen said in
thenewsreleasethattherewerenoclinically
meaningful differences between ABP 980
and trastuzumab. Amgen is currently devel-
oping nine biosimilars and working with Al-
lergan to develop four more.
The U.S. Food and Drug Administration
Amgen revenue, earnings per share climb
• It may be time to take a second look
at those under-performing foreign stock
funds. Capital Group Portfolio Manager
Philip Winston tells investors there are
signs of improvement outside the U.S.
“where things have been less than good.”
Europe had been improving prior to the
Brexit vote, which adds some short-term
uncertainty, he said in a quarterly update.
• Contrarians looking for a safe yield
coulddoworsethanconsiderRoyalDutch
Shell. A lengthy report in Barron’s makes
the case that the Anglo-Dutch oil giant
hasmanageabledebt,alowbook-to-share
price and a 6.6 percent yield that’s safer
than risky BP.
• Speaking of Barron’s, Lon Morton of
Morton Capital Management again has
madetheweeklynewspaper’slistoftopfi-
nancial advisers with total assets of $1.47
billion and average account size of $3 mil-
lion. Morton is based in Calabasas but has
an office in Santa Barbara. see FIN BRIEFS on page 10A
July 29 - August 4, 2016 A weekly report on personal finance and investing Page 9A
Biz Times index,
national indices
all show gains
Index Update
One-week One-month 52-week
change change change
Biz Times index . . . . 0.24%. . . . . 6.60%. . 12.67%
DJIA. . . . . . . . . . . . . . . . 0.29%. . . . . 6.72%. . . . 5.71%
S&P 500. . . . . . . . . . . . 0.61%. . . . . 6.75%. . . . 4.59%
Nasdaq. . . . . . . . . . . . . 1.40%. . . . . 8.33%. . . . 0.23%
Russell 2000. . . . . . . . 0.63%. . . . . 7.57%. . . -1.07%
Note:Seepage11AforcompaniestrackedbytheBusiness
Times/UCSB stock index.
Portfolio watch
$FINANCIAL BRIEFS
TAKING STOCK
AOL CEO Timothy Armstrong, who will oversee a merged operation with Yahoo, speaks at a conference in this file photo.
Verizon doubles down on
AOL bet by acquiring Yahoo
By Scott Moritz
Bloomberg News
Tim Armstrong and Marissa Mayer go
back — way back.
But when the pair first crossed paths a
decadeandahalfagoatGoogle,fewwould
have predicted how their careers would
play out — or that Armstrong would one
dayhelpVerizonCommunicationsacquire
Yahoo!, the creaking Internet company
that Mayer had been struggling to right.
With news July 25 that Verizon’s long
courtship of Yahoo had finally resulted in
adeal,thequestioniswhetherhe’llbeable
to succeed where she failed. The $4.83
billion deal to acquire Yahoo is basically
Verizon’smovetodoubledownonits$4.4
billion bet last year on AOL, where Arm-
strong is CEO.
Verizon gets Yahoo’s hodgepodge of
Internet businesses — Yahoo Mail, Tum-
blr, Flickr, Yahoo Finance, Yahoo Sports
-- plus every one of its 1 billion users and
some ad technology such as BrightRoll.
Turning that collection of assets into a vi-
able,sustainablebusinessstumpedMayer,
andArmstrongwillhavetheaddedtaskof
integrating them with AOL and with Veri-
zon’s mobile properties.
Inaninterview,Armstrongsaidheand
Mayer discussed a deal to combine AOL
and Yahoo in 2014, before Verizon came
intothepicture.Hesaidbeforehewaseven
at AOL, the Internet pioneers had toyed
with the idea of a merger for more than
decade,evenreachingahandshakedealat
one point in the mid 2000s. The logic re-
mains the same as it always has.
“We talked about ways to combine on
BLOOMBERGNEWSFILEPHOTO
see TAKING STOCK on page 10A
PEAKER PLANT
Continued from page 7A
RENEWABLE
Continued from page 7A
Limoneira’s solar array in Santa Paula provides electricity for the citrus grower.
MARISSANALLPHOTO
This artist’s rendering shows what the proposed Puente Power Project would like when built.
COURTESYRENDERING
Twounitsatthecurrentplantaresteam
fired and take 12 to 14 hours to bring on-
line. Seawater cools those units but envi-
ronmental regulations will not allow sea-
water-cooled plants after 2020.
The Puente Power Project appears to
be gaining steam. In a 5-0 vote May 26,
the California Public Utilities Commission
unanimouslyapprovedacontractbetween
NRG and Southern California Edison to
build the plant. Edison already agreed to
buypowerfromthenewplantundera20-
year agreement signed on Nov. 5, 2014.
If built, the plant would be licensed to
run 2,150 hours per year, but the commis-
sionandNRGexpecttheplanttorunmuch
less frequently.
Opponents, including the city of Ox-
nard, have long argued that they are con-
cerned about the impacts emissions from
the plant could have on the health of local
residents,whicharepredominantlyminor-
ities or live below the poverty level.
The report showed that 16 percent of
Oxnard’s 200,000 residents live below
the poverty line. Port Hueneme, which is
also in the 6 mile radius emissions are
expected to spread, has a poverty rate of
18 percent.
Thereportsaidthehazardousmaterials
willnotharmresidents’healthbutimpacts
on air quality are still being studied.
Because of expected sea level rise due
toclimatechange,opponentsalsoquestion
thesafetyofanewpowerplantbeingbuilt
on the beach and say a new plant would
alsobevulnerabletofloodingfromtsuna-
mis.
The report said flooding is a legitimate
concernbutdoubtstherewillbesignificant
impacts by either sea level rise or tsuna-
mis,partiallybecauseof30-foot-highsand
dunes that protect the plant.
“Eighty-two tsunamis have been re-
corded in California,” the report said.
“Most of these events were small and only
detectedbytidegauges.Elevenwerelarge
enough to cause damage and four events
causeddeaths.Twotsunamieventscaused
major damage.”
Though approved by the utilities com-
mission, the energy commission needs to
sign off for the project to move forward.
The report serves as a rough draft before
afinalreportislatersenttocommissioners
deciding the plant’s fate.
Two meetings July 21 were held as
workshops where commission members
sought input from the public, NRG and
city leaders to decide what will be in the
final draft.
to replacing Diablo Canyon.
“You’re going to need to replace it with
solar or wind and what you really want is to
havecertainsustainableassetsatpeakloads.”
REC Solar installs commercial solar sys-
temsthathavepoppedupthroughoutCentral
Coastwineries,greenhouses,farmsandeven
Costco. Most systems REC installs produce
about 1 megawatt of power. Sunrun, a solar
companywhichboughtREC’sresidentialso-
larbusinessin2014,alsostillhasalargepres-
ence in San Luis Obispo.
While these small systems may not pro-
duceasmuchelectricityaslargesolarfarms,
Miller said they are significant.
“Over time those small systems really
start to add up,” Miller said. “We are install-
ingthematapacenowthatreallyisstarting
to become significant. They are making a
dent.”
According to a June report from Next 10,
an independent non-partisan organization
that aims to educate Californians about the
state’seconomy,Californiahad13,243mega-
watts of solar electricity installed in 2015.
Wind energy generated 5,917 megawatts in
2014, the last year of data provided.
In the Tri-Counties, PG&E serves an area
startingjustsouthofLompoc,runningnorth
through San Luis Obispo County. According
tothereport,in2015SanLuisObispoCounty
had3.83megawattsofcommercialsolarca-
pacityinstalled,10.26megawattsofresiden-
tialsolarpanelsinstalledand255megawatts
of industrial solar panels installed.
Some regional companies are taking it
upon themselves to get off the grid. Santa
Paula citrus crop grower Limonera first in-
vestedinsolarenergyin2008.Thecompany
wants to be off the grid by 2022 by adding
moresolarenergyandexperimentingwitha
formofenergycalledgasification,wheregas-
ses from compost spin an electric turbine.
STORAGE SOLUTIONS
In the proposal to close the plant, PG&E
saiditwouldleanheavilyonstoragesystems
for solar and wind energy projects.
Storage is the Holy Grail for the renew-
ables industry. Limonera is also partnering
with Tesla and Livermore-based Perpetual
Powertodevelopbatteriesthatcanbeusedto
store excess solar energy.
Renewable energies hold great promise.
Even people in the industry acknowledge,
though, that if the wind doesn’t blow, or it’s
cloudy, systems don’t produce electricity at
their full capacities — if at all.
CosminLaslau,asenioranalystatBoston-
based Lux Research, said that despite the
hype,storagetechnologymightnotbethere.
“We don’t have that technology yet,”
Laslau said. “There have been some strides
overthepast10years.Youcanpacktwiceas
much energy into batteries.”
Laslau said over that time the price has
droppedfrom$100,000perwattforstorage
to$21,000perwatt.Butevenifthepriceset-
tles between to $1,000 to $2,000 per watt, it
will still be expensive for mass applications.
ENVIRONMENTAL IMPACT
Ralph Cavanaugh, the energy program
co-directorattheNaturalResourcesDefense
Council,saidhe’sbeenworkingtoshutdown
Diablo Canyon since he joined the group in
1979. He represented the group in the joint
proposal PG&E signed with regional utility
unionsandenvironmentalgroupstoclosethe
plant.
When the plant opened in 1985, Diablo
Canyonwastoutedasaformofenergyclean-
er than fossil fuel plants. While he agrees
with environmentalists’ concerns that fault
linesnearlyencircletheplant,hesaidtheclo-
sure is needed to make a stronger grid.
“This is not about environmental perfor-
mance.Carbon-firedplantsdon’tfitintothe
economicneedsofthegrid,”Cavanaughsaid.
Forasmuchpromiseasrenewableenergy
plants hold, they can still harm the environ-
ment.
“Wheneveryoubuildpowerplants,there
aregoingtobeenvironmentalimpacts,”Ca-
vanaugh said.
The California Valley Solar Ranch, one of
thetwolargesolarfarmsontheCarrizoPlain,
isbuiltonsensitivegrasslandsthatarehome
to 1,400 species of wildlife. When building
thesolarpanels,designershadtothinkabout
animalslikecondors,sphinxmothsandeven
ferry shrimp that perpetually hibernate ex-
ceptduringraremomentswhentheygetwet.
WIND POWER
OfftheshoresofMorroBay,Seattle-based
Trident Winds proposed building a floating
windfarmlastyear.Opponentsciteconcerns
thatimpactsfromtherotatingbladeswillkill
migratorybirds.Otheropponentshaveraised
concerns about the impact the windfarm
could have on fisheries and the ocean floor.
Alla Weinstein, CEO of Trident Winds,
said the windfarm project is slowly gaining
steam,thoughconstructionwon’tstartbefore
2022. Weinstein said Trident Winds has not
spoken to PG&E.
“Itdoesn’tchangehowmuchenergyyou
needcomingfromrenewableenergysources.
Whatitdoesispotentiallyfreeupagridcon-
nection off that coast,” Weinstein said.
Trident Winds hopes to use an existing
substation at the old Morro Bay Generating
Station to move power from the wind farm
onto the grid. It or another company could
lookatdoingthesamethingwiththeDiablo
CanyonplantbutWeinsteinsaidshe’sfocused
on building the Morro Bay wind project.
ACCESS FOR ALL
OnJuly19,PresidentObamaannounced
the Clean Energy Savings for All Americans
initiative.Theinitiativeaimstomakeiteasier
for low-income residents to buy residential
solarsystemsthroughloansfinancedthrough
thepropertyassessedcleanenergyprogram.
The Department of Energy also launched a
Solar Training Network to retrain workers
who’ve lost jobs in fossil fuel industries.
On a call with reporters, Brown stressed
the importance of the president’s program.
“We have to come to grips with global
warming,” he said. “This is a grassroots pro-
gramtogetmoremoneytowardthegoalof
reducing fossil fuel consumption.”
ECONOMIC STRENGTH
Next 10 said California already led the
countryinrenewableenergyproductionlong
before Brown issued his mandates. In 2014,
thelastyeardatawasavailable,Next10said
California produced 20.1 percent of its elec-
tricityfromrenewables,comparedto6.8per-
cent for the nation.
Moreimportantly,thereportsaidrenew-
ables help the state’s economy.
“Californiacontinuestoprovideevidence
that economic growth does not require a
growth in (carbon) emissions,” the report
said.
Laslau said though there’s a fear about
what happens when renewable electricity
makesup40or50percentofagridbecause
of the sputtery nature of renewables.
“There will always be a place for natural
gas,”Laslausaid.“It’sgoingtobeaveryhard
transition to a fully renewable grid.”