| Independently Powered Energy News

The need for reliable power clashed with the need for breathable air for nearly five hours at the California Energy Commission on Monday. Companies with data centers again pushed to be allowed to install hundreds of megawatts of new backup generation that runs on diesel fuel.

The possibility of this much additional pollution in California would have been unthinkable before the surge in devastating wildfires and subsequent preventive power shutoffs the last couple of years.

State and local air regulators urged the commission to put the brakes on the polluting projects. But the commissioners agreed to reassess only one of three large diesel backup projects, totaling 250 MW at new data centers in Santa Clara.

The California Air Resources Board attorney Wesley Dyer told the CEC diesel backup systems will cause air quality to reach unhealthy levels given public safety shutoffs and grid imbalances. The state is trying to clean up the air and grid, but these new generators will continue to be fired up for decades, he said.

Diesel exhaust, particularly nitrogen oxides, can cause asthma, heart disease, and in some cases, elevate cancer risks.

The lawyer for the Energy Commission took the side of the businesses. “Data centers provide critical services to the state,” including during emergencies, and to home offices, use of which has soared because of the pandemic, said Lisa DeCarlo.

Three closed-door sessions

During the Nov. 16 afternoon meeting, the commissioners went behind closed doors, virtually, three times, leaving the public to guess what was being discussed.

Two of the backup projects before the Commission were 78 MW of diesel power for a data center at Mission College, and 80 MW of diesel units at the Walsh Data Center, also in Santa Clara. On Aug. 12, both were approved without a full environmental review under an exemption for small power plants. Reconsideration of these expedited approvals before the CEC this week were unanimously rejected.

Opponents of the projects argued that the cumulative impacts of the pollution must be considered, and also the pollution created during emergency operations at the different sites. But such consideration is not required under the shortened review under the CEC’s small power plant exemption process, the commissioners concluded. Power plants smaller than 100 MW may seek this exemption.

The commission called concerns about the amount of pollution from fired up diesel backup power speculative.

A vocal opponent of the diesel projects, Robert Sarvey, argued unsuccessfully that a cumulative impact analysis was requisite for the Walsh diesel backup, in particular. That is because it will be adjacent to a proposed 99.8 MW diesel backup system at the planned 576,000 square foot Lafayette Data Center.

The third generator project before the Commission on Monday was the Sequoia data center backup. The developer seeks permission for 96.5 MW of diesel units to power 702,000 square foot data center during power losses.

1,600 MW of diesel backup in pipeline

In a filing against the Walsh and Mission systems, Sarvey argued that the generators are likely to see heavy use. He pointed out there were rolling blackouts in California two days after their expedited approval. “100 MW of diesel backup generators at data centers in Santa Clara” were fired up to help alleviate the strain on the grid, he wrote.

CARB and the Bay Area Air Quality Management representatives told the CEC that over 1,600 MW of diesel generators are planned for data centers alone in the Bay Area. They insisted that data centers must use cleaner technology, for example, natural gas fuel cells to protect against the toxic air pollution.

The CEC did agree to incorporate data from CARB and Bay Area regulators on direct and cumulative impacts of nitrogen oxide emissions from the units in the ongoing Sequoia diesel backup project proceeding.

Commissioner Andrew McAllister encouraged the Bay Area and state air regulators “to provide information about the actual behavior of back up generation going forward.”

In related news, the CEC also approved a $2.1 million settlement with the Geysers Power Co. after inadequate fire protection was found at the company’s six geothermal plants in 2018.

CEC staff noted that the company has worked cooperatively to address fire concerns and needed upgrades to the geothermal plants in Lake and Sonoma counties. They supply a total 300 MW of baseload power.

The settlement “reflects the commission’s focus on the health and safety of lives and property and reliability,” said Commissioner Karen Douglas. She added settlements are far more preferred than litigation.