Policy Issues Associated with the 

Development of Renewable Energy in the 

California-Mexico Region

Good Neighbor Environmental Board

San Diego, California

June 16, 2011

Pablo S. Gutierrez

Geothermal Program 

California Energy Commission 

Sacramento, CA 95814-5512 

pgutierr@energy.state.ca.us

1
Outline

• Background

• Licensing Authority

• Power Plant Licensing Process

• Renewable Energy Policies and Perspectives

• Renewable Energy Guiding Legislation

• Renewable Energy Policy Drivers

• Infrastructure Challenges

• Barriers to Geothermal Development 

• CEC’s Geothermal Program

• Geothermal Program 2011 Grant Awards

• Geothermal Status in California

• Geothermal Resource Areas

• Installed Capacity in the California-Mexico Region

• Geothermal Potential in the California-Mexico Region

• Recommendations 

2
Background

The CEC was created in 1974 by the California Legislature as the 

State’s primary energy policy and planning agency. 

The CEC has five major responsibilities:

• Licensing thermal power plants 50 MW or larger.

• Forecasting future energy needs and keeping historical 

energy data.

• Promoting energy efficiency through appliance and building 

standards.

• Planning for and directing state response to energy 

emergencies.

• Developing and supporting research and development of 

renewable energy technologies. 3
Licensing Authority

• The CEC has licensing authority over thermal 

power plants that are 50 megawatts or greater, 

including solar-thermal and geothermal power 

projects. 

• The CEC does not have authority over 

photovoltaic, wind, nuclear or hydroelectric 

power plants.

• The CEC is the lead state agency for California 

Environmental Quality Act (CEQA) review and 

ongoing compliance.
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PRE-FILING of AFC

EVENTS

AFC ACCEPTED

DISCOVERY AND ANALYSES

Issues Identification Report and 

Data Requests

EVIDENTIARY HEARINGS

DISCOVERY AND ANALYSES

Preliminary Staff Assessment and

Final Staff Assessment

PRESIDING MEMBER’S 

PROPOSED DECISION (PMPD)

FINAL DECISION

CEC STAFF

Project Developer

INPUT TO

PROCESS

APPROXIMATE

SCHEDULE

Discussions

on scope 

of the petition

Day 0

Day 365

CEC STAFF

AGENCIES

INTERVENER

S 

INTERESTED

PARTIES/PUBLIC
Renewable Energy Guiding Legislation

SB 1368 – GHG Emissions standards for POUs

AB 2021 – Energy Efficiency for POUs

AB 2160 – Green Building Acquisition Financing 

for State Facilities

SB 1250 – PIER and Renewables Incentive 

Programs Reauthorized

SB 107 – Accelerated RPS Goals

SB 1 – Renewables Goals for New and Existing 

Residential and Commercial Structures

AB 2778 – Self-Generation Incentive Program for Fuel 

Cells and Wind

AB 1007 – Transportation and Alternative Fuels

AB 32 – Global Warming Solutions Act of 2006; 

aggressive goals for 2020

AB 118 – Alternate and Renewable Fuels and 

Vehicles Deployment

SB 1250 – PIER and Renewables Incentive 

Programs Reauthorized

Governor Brown’s Renewable Energy Action Plan, 8K 

MW Re Energy and 12K MW DG by 2020
Renewable Energy Policy Drivers 

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California’s primary short and long-term 

energy driver is the state’s GHG 

emission reduction goal. 

At the same time, California needs to 

maintain reliable and affordable energy 

supplies while using reduced carbonintensive energy sources.
Renewable Energy Policy Drivers 

In April, 2011, Governor Brown signed the 

renewable portfolio standard (RPS) into law, 

which requires all retail sellers of electricity 

and all publicly owned utilities (POUs) to 

procure renewable energy resources with the 

following targets: 

• 20% by December 31, 2013, 

• 25% by December 31, 2016; and, 

• 33% by December 31, 2020.

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Renewable Energy Policy Drivers 

The state's main challenge is to ensure adequate 

electricity supplies while reduce greenhouse gas 

emissions as directed by AB 32 (33% reduction by 

2020). 

Since 2003, California's energy policy has recognized 

an electricity "loading order" as the preferred 

sequence for meeting electricity demands. The loading 

order lists: 

• Energy efficiency and demand response, 

• Renewable resources; and, 

• Clean and efficient natural gas-fired power plants

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California’s Electricity Supply Mix (2009)

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California’s Electrical Grid

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California's electricity generation 

system produces more than 296,000 

GWh/year and is transported over 

32,000 miles of transmission lines.1

In 2009, California produced 69% of 

its electricity. 

7% imported from the Pacific NW 

24% imported from the U.S. SW 

The installed capacity of the 1,008 

in-state power plants totals 69,709 

MW. 

1. California Energy Commission, 2009 Integrated Energy Policy Report 
Infrastructure Challenges

• Transmission and distribution congestion

• Ensure adequate electricity supplies while 

o Reducing greenhouse gas emissions

o Increasing renewable energy resources

• Variable (intermittent) resources such as 

wind and solar can impact grid reliability

o Forecasting of renewable resources 

(wind and solar)

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Barriers to Geothermal Development

• Environmental permitting delays (e.g. CEQA, water 

quality and rights, air, and drilling permits)

• Financing (capital costs)

• Exploration costs

• Loss of incentives (production tax credits)

• Supply shortages – competition with oil and gas 

companies for drilling rigs

• Lack of information – e.g. resource assessments, 

exploration tools 

• Lack of access to transmission

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CEC’s Geothermal Program

Mission: promote the research, 

development, demonstration, and 

commercialization of California's 

enormous geothermal energy resources. 

Since 1980, the Geothermal Program 

provided funding for research, 

development, and demonstration 

projects with over 174 public and private 

entities. 

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Geothermal Program 2011 Grant Awards 

• Imageair, Inc., Surface Deformation Baseline in 

Imperial Valley from Satellite Radar Interferometry, 

(Imperial County), $672,234.

• Layman Energy Associates, Inc, Exploratory Well to 

Confirm Liquid-Dominated Hydrothermal Resource 

on Margin of The Geysers Steamfield, (Lake County) 

$2,377,364.

• Renovitas LLC, Exploration Drilling and Assessment 

of Wilbur Hot Springs, (Colusa County), $1,492,722.

• Simbol, Inc., Potassium Production from 

Geothermal brines (Imperial County), $949,545. 15
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Geothermal Status in California

California has a very large geothermal 

resource base.1

• 2,565 MWe installed capacity, 49 power 

plants.

• 2,100 MWe running capacity.

• 30 projects under some stage of 

development with potential to increase 

installed capacity from 712 – 738 MW.

1. Geothermal Energy Association, Annual U.S,. Geothermal Power Production and Development Report, April 2011.
Geothermal Status in California

• Additional potential from know geothermal 

resources is estimated up to 4600 MW 3.

• Undiscovered resources may provide an additional 

3,200 to 25,000 MW. 3.

• The Geysers: world’s largest geothermal producer 

with 1250 MW.

• Salton Sea area: huge identified resource, but 

underexploited with 625 MW.

• Glass Mountain: major potential resource, currently 

unexploited.

• Many unknown or smaller resource areas currently 

unexploited.

3. U.S. Geological Survey 

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Geothermal Status in California

• California has developed over 2/3 of the U.S. geothermal 

projects delivering ~2,100 MW of baseload power.

• High temperature geothermal resources are distributed 

throughout the state including:

o The Geysers (1,250 MW), 

o Long Valley/Eastern Sierra (37MW), 

o Coso (240 MW); and, 

o Imperial Valley (625 MW)

• Nearly 40 geothermal companies are based in California 

representing nearly 60 percent of the U.S. geothermal 

industry. 

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19

California Geothermal Resource Areas
Installed Capacity in the CA-Mexico Region

Four geothermal fields have installed capacity 

of 625 MW. 1.

• Salton Sea (350 MW), 

• Heber (130 MW), 

• East Mesa (95 MW); and, 

• North Brawley (50 MW) 

This is more than 1/3 of the installed capacity 

in California. 16 plants are currently operating 

in Imperial County.

1. GeothermEx Report, 2007; Aerospace Report to IID, 2011) 20
Geothermal Potential in the CA-Mexico Region

Currently there are 13 geothermal prospects have been documented in 

the Imperial Valley for a total of 3,263 MW 1. geothermal capacity. 

• Salton Sea (1750 MW likely capacity), 

• Niland (776 MW), 

• Westmoreland (50 MW), 

• Glamis (6 MW), 

• East Mesa (148 MW), 

• Heber (142 MW), 

• Dunes (11 MW), 

• Superstition Mountain (10 MW), 

• North Brawley (135 MW), 

• East Brawley (129 MW), 

• Mesquite/South Brawley (62 MW), 

• Mount Signal (19 MW); and, 

• Truckhaven (25 MW) 1. GeothermEx Report, 2007; and Aerospace Report to IID, 2011 21
What’s Next? 

Continue to support geothermal 

activities

• Encourage continued geothermal 

technologies research.

• Promote research focused on 

energy policy goals.

• Encourage the geothermal industry 

to participate in state policy 

activities

[http://www.energy.ca.gov/2011_ener

gypolicy/index.html].
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Geothermal Technologies Research

Resource assessment for adding electrical generation:

• Need to locate unknown high and moderate 

temperature resources without surface expression. 

• Need to assess known areas in finer-grained detail 

for targeted exploration and well drilling.

• Exploration of oil and gas fields for geothermal coproduction. 

• Improved surface exploration.

• Evaluation and analysis of co-located resources.

• Improved environmental protection.
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Geothermal Technologies Research 

• Advanced tools and techniques for exploration and resource 

assessment, including remote sensing tools, to reduce costs, 

risk, time.

• Demonstrations and/or modifications of existing tools and 

techniques from the oil and mining industries.

• Refined models and modeling tools for reservoir management.

• “Smart” tools needed for assessment, drilling, and exploration.

• High efficiency binary plants for exploitation of lower 

temperature resources.

• Innovative water use for wet-dry cooling.

• Life-cycle analysis.

• New materials and methods for use in corrosive and aggressive 

brine environments.
Research Focused on Energy Policy Goals

• Improved environmental protection: Much of the regulatory and 

permitting barriers reflect the need to carefully assess 

environmental impacts. RD&D that directly and forcefully 

addressed key environmental challenges (e.g., emissions, 

water use and protection, and induced seismicity) could 

ultimately provide the basis for a streamlined and statewide 

regulatory and permitting framework that would dramatically 

reduce project cost and time delays.

• Improved subsurface exploration: Focused RD&D that would 

improve the ability to obtain, at lower cost and higher 

resolution subsurface imaging and reservoir characterization 

could dramatically improve project development, reduce cost 

and streamline facilities installation.

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Research Focused on Energy Policy Goals

• Innovative water use: Identifying non-traditional 

water resources for plant operation, as well as 

improving cooling design efficiencies and hybrid 

cooling systems, would significantly improve 

power production economics and environmental 

impacts.

• Life-cycle analysis: RD&D that thoroughly 

analyzed life-cycle costs and impacts would 

provide a much more quantitative description of 

generation costs across technologies. 

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Research Focused on Energy Policy Goals

• Evaluation and analysis of co-located resources: 

Geothermal energy is often located in regions where 

other renewable energy resources occur. Optimizing 

the mix of co-located resources, especially for DG 

applications, could greatly improve energy 

management strategies.

• Energy storage: Geothermal energy systems can 

benefit from thermal inputs from other renewable 

systems. This is, in essence, a form of energy 

storage and could be innovatively developed to 

supply DG as well as combined heat and power 

applications.

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Pablo S. Gutierrez

Geothermal Program 

Energy Generation Research Office 

Energy Research & Development Division 

California Energy Commission 

1516 Ninth St., MS-47 

Sacramento, CA 95814-5512

pgutierr@energy.state.ca.us

916.327.1542

Questions?

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