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Ty Korenwinder Account Manager Energy Markets.

Biogas To Pipeline SJV Clean Energy Organization Farming Clean Energy Conference November 5-6, 2008. Ty Korenwinder Account Manager Energy Markets. Topics. Southern California Gas Company (SoCalGas) biomethane policy Interconnection Support Gas Transportation Basics.

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Ty Korenwinder Account Manager Energy Markets.

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  1. Biogas To PipelineSJV Clean Energy OrganizationFarming Clean Energy ConferenceNovember 5-6, 2008 Ty Korenwinder Account Manager Energy Markets.

  2. Topics • Southern California Gas Company (SoCalGas) biomethane policy • Interconnection Support • Gas Transportation Basics

  3. Southern California Gas Company Policy Southern California Gas Co. is committed to aiding California’s Assembly Bill 32 climate change efforts. • SoCalGas’ natural gas pipeline network is available for biomethane receipts. • This provides biomethane suppliers with access to the California gas buyers’ marketplace

  4. Southern California Gas CompanyBiomethane Interconnection Support • SoCalGas Climate Action Initiative and Advice Letter Filing 3847, the CPUC has dismissed without prejudice. Both initiatives proposed for qualifying facilities over 500 Mcf/d , to be subsidized points of receipt up to a total of $10-million funded by Utility ratepayers. • The CPUC generally questioned whether there was a need for rate payer funding and, if so, at what level. • Information, economic analysis, is likely to be essential to future CPUC requests for funding of biomethane interconnections. • Gas Technology Institute (GTI) Study, a national guidance document for handling biogas. • SoCalGas has assigned a single key contact for project management and discussion of interconnections.

  5. Southern California Gas CompanyBiomethane interconnection support – GTI Study Plan • Limited US biomethane pipeline receipt experience and lack of gas quality guidelines creating uncertainty about the viability of pipeline receipts. • Objective to develop supplier and transporter gas quality sampling and analysis standards to facilitate and optimize pipeline biomethane development and acceptance • First study phase, Dairy focused. • Dairy sourced raw biogas and biomethane sampled and analyzed to verify interchangeability with natural gas supplies. • Guidance Document for Interchangeability of Dairy Waste Derived Biomethane provides, biomethane analytical tests, tariff ranges or constituents exposure limits and references.

  6. Southern California Gas CompanyBiomethane interconnection support – GTI Study Plan • Second phase to focus on, landfill and waste water treatment sourced biomethane. • SoCalGas has requested a similar co-digestion study sources proposal • Currently SoCalGas is not accepting land fill generated biomethane, but is soliciting development of gas quality monitoring equipment (e.g., Vinyl Chloride and Siloxanes) in addition to the GTI study to address concerns about these potential contaminants.

  7. Southern California Gas Company Biomethane interconnection support – Optimal Interconnections • Partial map of dairy locations that are proximal to SoCalGas systems potentially capable of receiving and transporting to demand centers.

  8. Southern California Gas Company Biomethane interconnection support – Optimal Interconnections • Complete description of biogas and methods utilized for upgrading to biomethane. • Consistent and known biogas feed stocks. • Adequate gas quality monitoring and controls to ensure Rule 30 compliant deliveries of biomethane. • Adequate funding and lead time to design, procure, and install point of receipt and, if necessary, downstream facilities.

  9. Southern California Gas CompanyBiomethane Interconnection Support - Utility Interconnection Process A five step predefined process to facilitate cost effective phased site feasibility and project cost estimation. • Developer requests in writing a capacity study determining the feasibility of a chosen site. • When location is determined to be feasible, developer then provides written request for preliminary engineering study. • The final step is a request for detailed engineering study. It is possible to combine step 2 and 3 if a developer is confident of the project feasibility. • Contract development and execution. (Interconnect Collectible System Upgrade Agreement, Interconnection Agreement, and Operational Balancing Agreement) • Installation and Startup. Gas quality testing, and on going monitoring testing and control.

  10. Southern California Gas CompanyGas Transportation Basics

  11. Questions And Answers Contact Information: Ty Korenwinder Account Manager, Energy Markets Southern California Gas Company 559-739-2307 Office 559-901-1266 Mobile tkorenwinder@semprautilities.com

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