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In a sign of possible increasing scrutiny of new diesel backup generators, the California Energy Commission postponed a vote on whether the Sequoia Data Center project in Santa Clara should be allowed to install 54 diesel-fired units without a state license.

The postponement of the exemption for the 99 MW diesel backup project comes just days after the agency held an all-day workshop on replacing dirty diesel backup systems with less polluting alternatives.

Exemptions from state permits are granted after findings that projects sized between 50 MW to 99 MW won’t substantially harm the environment. Last year, air regulators raised air pollution concerns about Sequoia’s 99 MW backup system and the CEC decided to take another look at the issue last November.

Then right before this Jan. 25 meeting, the project developer filed a project amendment switching to less polluting Tier 4 generators rather than the original Tier 2 systems. Tier 4 units reduce particulate matter and nitrogen oxide emissions by 90%.

After going into closed session on Monday, the Commission voted “to continue to move the project forward, with a follow up review of the amended project in April,” according to Commissioner Karen Douglas.

Also, at this week’s meeting, the CEC approved $24 million in clean energy grants and zero interest loans. Commissioners also gave the green light to more local ordinances that limit the use of natural gas in new construction.

This meeting was Commissioner Janea Scott’s final one after serving for eight years. She was named Counselor to the Department of Interior’s new chief Deb Haaland by President Joe Biden. Much of the meeting was dedicated to state officials and CEC staff applauding her dedication and clean energy work.

More city restrictions on gas use in new buildings

The CEC signed off on five more local ordinances restricting fossil gas use in new construction. That brings the number of city codes that are more stringent than the state standard to 41. The ordinances are to curb building greenhouse gas emissions and indoor air pollution.

The local ordinances “show the world what more can be done to reduce carbon pollution and save money,” Commissioner Patty Monahan said.

The commission faces considerable pressure from clean air advocates to ban natural gas use in new residential and commercial construction as part of its upcoming Title 24 update. It is also getting pushed the other direction by natural gas stakeholders.

Continuing the streak of new city ordinances just approved are:

The City of Campbell’s code requiring new homes to have electric space and water heating, with gas allowed for cooking and fireplaces. Millbrae’s new code requiring new commercial and residential buildings to be all-electric, with an exemption for commercial kitchens and laboratory. It also requires photovoltaic systems on all new buildings and prewiring for electric appliances when gas appliances are installed. Sunnyvale’s ordinance mandating new buildings, major renovations and additions be all-electric. It will allow exceptions for emergency centers and commercial kitchens. PV is required on all new buildings and prewiring for electric appliances is required where gas appliances are installed. Los Altos requiring new nonresidential and multifamily buildings be all-electric with exceptions made for labs and commercial kitchens. Accessory dwellings and low-rise residential units must be all-electric with natural gas allowed for cooking and fireplaces. Prewiring for electric appliances is required where gas appliances are installed

Also approved on Monday were $17 million in zero interest loans for renewable and energy efficiency projects at 13 schools across the state, many in disadvantaged communities.

Each dollar of loan repayment “gets cycled through to new programs,” Commissioner Andrew McAlister said.

The largest loans are as follows:

$3 million to Upland Unified School District to install ground-mounted carport solar PV systems totaling 892 kW at five schools. Nearly $3 million to Palo Verde Unified School District for two PV arrays in parking areas, estimated to cut annual costs by $215,340. Nearly $25 million to Hanford Elementary School District to install of 522 kW of ground-mounted shade structure solar PV systems. It is estimated to produce annual energy cost savings of $19,371. $1.7 million to the Golden Valley Unified School District to install various energy efficient devices. $1.46 million to the Pixley Union Elementary School to install a 396 kW ground-mounted solar PV systems.

Also approved was a $2 million grant to Redwood Energy to demonstrate an advanced heat pump water heater load-control technology at four zero net energy apartments that house seniors, low-income people, and those formerly homeless.

The system is expected to increase central water heating efficiency by up to 37% a year by combining load shifting with high-efficiency thermal storage. The system also will provide grid services, such as peak load reductions and renewable integration.

McAlister noted the system also uses a low greenhouse gas producing refrigerant.

Lastly, $5 million was approved for two projects to better align energy planning with climate change. Eagle Rock Analytics was awarded a $3.5 million grant to develop a state-of-the-art climate data platform. UC San Diego was awarded $1.5 million to develop climate impact projections to assist energy resiliency planning.