DISCOURSE
gas emissions are balanced by removal ) by 2040 . … We were planning to spend about $ 6.7 billion ( on electrification , renewable energy infrastructure , carbon offsets and other measures ) doing so . … The 2040 energy plan was one of the most aggressive carbon reduction plans of any utility in the country , but , unfortunately , that wasn ’ t enough . … We ’ ve seen all the devastating effects of climate change : the wildfires here in California , the flooding and hurricanes ( on the East and Gulf Coasts ).
But it ’ s much more than that , because we actually live in one of the dirtiest air basins in the nation . Childhood asthma rates are off the charts . The American Lung Association consistently recognizes Sacramento for all the wrong reasons . In the association ’ s 2020 “ State of the Air ” report , Sacramento was the fifth most ( ozone-polluted ) city in the nation , with a grade of F . So if we don ’ t attack this issue aggressively , Sacramento will continue to rank among the 10 worst regions in the nation for air quality , and the childhood asthma rate will continue to be a blight of our region .
So what happened was that our board back in July said , you know what , getting to net zero by 2040 was not good enough . They actually passed a climate emergency declaration to get to carbon neutrality by 2030 . … My vision is that I really want SMUD to pursue an aggressive carbon reduction goal to get to zero carbon emissions by 2030 without compromising our world-class reliability or affordable rates . … This bold vision is really a big invitation to others here in Sacramento , nationally and internationally to partner with us to tackle carbon reductions and do great things for the region , and we really need to leverage Sacramento ’ s reputation for innovation through leadership and progressive environmental policies to become a test bed for the most innovative technologies that can lead the way in carbon reduction .
It ’ s important to point out that SMUD ’ s approach to carbon reduction has always been to benefit our region in an inclusive way . We prioritize local investment to drive inclusive economic development , create jobs , spawn innovation , and improve environmental conditions for all the communities and neighborhoods that we serve .
First , we ’ re going to look at proven clean technologies like wind , solar , geothermal , hydro , biomass , shortduration batteries , energy efficiency and demand response . These are the technologies and energy resources that we already have in our pathway to decarbonize our energy supply . … Secondly , we ’ re going to look at new technology , new business models , because without those , we can ’ t get there . … And then the third thing is that we have five gas-fired plants in our service territory that we need to take a look at . How do you either retire or withdraw those gas plants that can burn on alternative fuel , like hydrogen ?
To get to our 2030 clean energy vision , there ’ s not going to be a silver bullet that will solve all of it . It ’ s going to be a silver buckshot . … But I fully envision that this will be a very robust , transparent public process as we go through this .
Solar energy seems like a doubleedged sword , since it might result in less revenue for utility providers . How does SMUD encourage more distributed , efficient energy while still generating revenue ? SMUD has been a big supporter of the solar industry . … We installed the first utility-scale solar in the U . S . over at Rancho Seco ( in 1984 ). … Going forward , I think we ’ re going to need both utility-scale solar and batteries . … Storage is a great way for us to store the energy when the grid is needed and then dispatch it when there ’ s actually the highest value to the grid . And so we ’ d be looking at what incentives we ’ d be creating in terms of … distributing the batteries on customers ’ homes or businesses and then also looking at something like critical peak pricing rates that would give you additional incentives , by using rate structures , just for you not to use your energy during that time period .
We also are planning to really accelerate our efforts on electrification . … We ’ ll be incentivizing our customers to electrify their buildings and switch over from gasoline vehicles to electric vehicles so that we ’ ll have beneficial load growth . … We plan to spend about $ 1.7 billion in the next 20 years to accelerate electrification efforts , which is what we call in the industry beneficial electrification — not just for the environment , but also to utilize the grid in a way that ’ s better for everyone .
Is there anything else you ’ d like to share ? I just want to touch on that , really , Sacramento is my home . … I was born in Hong Kong , and then I moved to Nigeria , Africa , when I was 9 1 / 2 … and then came to Sacramento when I was 14 1 / 2 , and I ’ ve been here ever since . … I see SMUD really as a community asset , and to be a steward of such an asset is such an honor .
Edited for length and clarity .
Jennifer Fergesen is assistant editor of Comstock ’ s . Online at jcfrgsn . journoportfolio . com and on Twitter @ jenniferferges1 .
The Back Story
SMUD has become more than just a public utility . Page 92
30 comstocksmag . com | February 2021