HomeMy WebLinkAbout7/5/2022 Item 6b, Platz
Delgado, Adriana
From:Allison Platz <allisonp@deltaliquidenergy.com>
Sent:Tuesday, July
To:E-mail Council Website
Subject:Public Comment Regarding Item Number 6B - July 5, 2022
Attachments:San Luis Obispo City Council Meeting 7-5-2022 Public Comments from Delta Liquid
Energy.pdf
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Good Morning,
I am submitting the attached written, public comments for review regarding the Introduction of Two
Ordinances Supporting the Clean Energy for New Buildings Program (agenda item number 6.B.) on
the July 5, 2022 city council meeting agenda.
I welcome any questions regarding propane's role in a clean energy future for our city, county, and
state.
Thank you.
Sincerely,
Allison Platz-Velazquez
Marketing Manager
San Luis Butane Distributors
dba Delta Liquid Energy, ARRO Autogas, and AePEX Energy
Mobile: (805) 391-3810
Office: (805) 226-4350
1
ADDRESS : 1960 RAMADA DRIVE • PO BOX 3068 • PASO ROBLES, CA • 9 3446
PHONE: (805 ) 239 -0616 • FAX: (805 ) 239 -1327 • WWW.DELTALIQUIDENERGY .COM
San Luis Obispo City Council Meeting
July 5, 2022
Re: Item Number 6B – Introduction of Two Ordinances Supporting the Clean Energy for New Buildings Program
To Whom it May Concern:
I am submitting these comments on behalf of Delta Liquid Energy, a family-owned and operated propane marketer. We
have been in business on the Central Coast for nearly 90 years, supplying a clean fuel to customers in rural parts of our
county and within the city limits of San Luis Obispo. Mandating that all new residential buildings in San Luis Obispo city
be all-electric would be detrimental to our customers and the constituents of San Luis Obispo. Many contractors and
homeowners choose propane for their new builds. It’s an effective fuel that, when working in tandem with electricity
produced by wind and solar, can bring us toward our state’s environmental goals.
Propane is Good for the Environment
Propane is an approved clean alternative fuel under the Clean Air Act of 1990. The California Air Resources Board
(CARB) has given propane a carbon intensity score of 83. Electricity’s carbon intensity is 81.5, also according to CARB.
These two energy sources have nearly the same number of emissions from source to end use. The propane industry is
diligently working toward bringing renewable propane into the marketplace. It is already being produced in a facility in
Bakersfield, CA. The World LP Gas Association estimates through internal studies that the world’s propane demand can
be met with renewable propane by 2040. CARB has given renewable propane a carbon intensity score of 20.5, depending
on the feedstock.
Propane is Cost Effective
The Energy Star Program gives propane a source site ratio of 1.01, compared to 3.03 for electricity from the grid. This
means it takes 3.03 units of electricity to produce and deliver one unit of energy to a home, compared to only 1.01 for
propane.
When comparing energy output, twenty-seven kilowatt hours is equivalent to one gallon of propane. PG&E’s rate per
kilowatt hour in January 2022 was twenty-eight cents ($0.2824). At this price, electricity would cost $7.62 per gallon of
propane. At its highest this past winter, the propane price was $4.90 in San Luis Obispo County.
With summer upon us, electricity rates continue to increase. Propane’s price decreases in the warmer months. Most
propane companies, including Delta Liquid Energy, offer our customers pre-purchase plans. We had over 750 customers
in San Luis Obispo County save over a dollar per gallon on deliveries this past winter, increasing the affordability gap
between propane and electricity.
Propane is Reliable
Our electric grid is already strained and it is reported that we can expect more rolling blackouts this summer. This week,
an energy proposal put forth by the Newsom administration was approved, allowing the electric utilities to purchase
additional electricity, some of which is produced by natural gas fired power plants. This is because the administration
estimates we will have a shortfall in electricity this summer equivalent to powering 1.3 million homes on hot summer
days. Constituents of SLO city, and PG&E customers, are already being asked to “power down” between 4pm and 9pm
because California does not have the energy needed for existing homes. Adding more strain to this by requiring a new
home to be all-electric will only dishearten current San Luis Obispo residents and deter future residents from moving to
the area.
ADDRESS : 1960 RAMADA DRIVE • PO BOX 3068 • PASO ROBLES, CA • 9 3446
PHONE: (805 ) 239 -0616 • FAX: (805 ) 239 -1327 • WWW.DELTALIQUIDENERGY .COM
When implementing a propane system into new residential builds, homeowners know they will be able to maintain power
during these public safety power shut offs. They know they are using a fuel that will not degrade over time, is safely
stored on their property, and can be used to power their entire home.
To be clear, we feel that electricity created with renewable sources has its place in the city. Propane can also help.
Allowing residents to choose their clean energy source is what is important. In some applications, an all-electric home can
be a right fit. Other consumers may want to power their homes with a combination of propane and solar panels. Others
still, may want a new home solely powered by propane. By taking away the consumer’s ability to choose their clean
energy source, or sources, we are limiting how quickly we can meet our climate change goals and requiring residents to
rely on an electric grid we’ve already seen cannot meet demand.
I welcome any questions or continued discussion. Thank you for your time and consideration.
Sincerely,
Allison Platz-Velazquez
Marketing Manager, Delta Liquid Energy
allisonp@deltaliquidenergy.com