Energy-Water-Climate Change Scenario Proposed Project Scoping Introduction From 2010 through 2013, WECC’s Scenario Planning Steering Group (SPSG) developed four future scenarios for the Western Interconnection. These scenarios became the basis for four long-term study cases included in the 2013 WECC Interconnection-wide Transmission Plan. Each scenario followed the overall structure of evaluating uncertainties in the most significant drivers to create four futures for the Western Interconnection which the SPSG determined to be plausible as well as quite different from one another. The goal for developing these scenarios was to identify strategic choices regarding transmission expansion needs that WECC and its stakeholders may need to address in the 20-year planning horizon. The WECC scenarios considered water availability as a constraint for resource planning in the long-term study cases. However, in reviewing the many factors affecting water availability and its impacts on transmission expansion planning, several stakeholders have suggested that there could be significant value to the planning process in examining water-energy issues more deeply. Specifically, several stakeholders have suggested that developing a scenario that explores the relationship between energy and water could provide valuable insights for transmission expansion planning, water distribution efficiency, planning for extreme droughts and other issues. And, despite differing views among WECC’s broad stakeholder community on the extent and potential causes of climate change, recent extreme weather events and the climate projections from NOAA support the value of planning for such events and the ways in which they could affect electric and water utility operations and bulk electric grid reliability. Scenario Development This document proposes that stakeholders in the Western Interconnection develop a future scenario for the Western Interconnection that explores the nexus between water, energy and climate change. To develop the scenario, stakeholders would: 1.) Identify a focus question. Questions that will contribute to a focus question will likely include: Could climate change lead to changes in water availability patterns (amount, location, timing and costs) in the Western Interconnection? Water-Energy-Climate Change Scenario How might changes to temperatures, water availability and water cost in the Western Interconnection affect electricity grid reliability, demand, generation availability, and the need for additional transmission? What threats might extreme wildfires pose to the existing transmission grid? Can the risks of drought, extreme wildfires, and inaction be assessed? 2.) Identify drivers affecting the focus question. These would likely include: Uncertainties in the extent, timing and location of precipitation and extreme wildfires; Adequacy of the water capture, storage, treatment and transportation infrastructure; Demand for water for agriculture, energy production, municipal uses and commercial, industrial and residential uses; How implementation of electric system plans, water management plans and related policies might impact future water use and availability; Interrelated energy and water uses for applications such as water treatment, energy development and energy production; Demographic shifts associated with changing climate and extreme weather events; and Anticipated and future carbon reduction policies such as EPA’s 111(d) rules. 3.) Develop and describe the scenario. 4.) Recommend ways that the scenario might be modelled to provide insight on electric reliability, grid resiliency, and transmission expansion needs as well as on water infrastructure needs; 5.) Conduct a risk assessment of the individual threats to grid reliability and water availability (temperature and water changes), the interactive impact of those threats, and the risks associated with inaction; and 6.) Suggest policy considerations that merit further analysis and development in the coming years. Collaborative Approach While WECC (through the SPSG) has led the process for creating future scenarios for the Western Interconnection, it is clear that other regional organizations have interests of a similar magnitude in understanding the interrelationships between energy, water and climate change. This proposal recommends that stakeholders develop this scenario under the joint leadership of: Page 2 of 4 Water-Energy-Climate Change Scenario WECC, with a particular emphasis on transmission expansion needs and grid reliability; and Western States Water Council (WSWC), with a particular emphasis on the conservation, development and management of water resources. Many other organizations also would collaborate to develop a water-energy-climate change scenario, notably, the organizations represented by SPSG and TEPPC members, individual states and provinces within the Western Interconnection and their energy and water staffs. Benefits of Developing Water-Energy-Climate Change Scenario Developing this scenario would be expected to provide a significant benefit in increased understanding of several issues related to the water-energy-climate change nexus: 1.) Grid reliability and resiliency issues resulting from climate change impacts on water, temperature and extreme weather events. 2.) Needs for new transmission stemming from water and climate drivers. 3.) Efficiencies from integrated water and energy planning. 4.) Cost reductions from operational coordination between water and energy systems. 5.) Water and climate-driven electric generation challenges that could affect reliability. 6.) Policies that could mitigate undesired effects of climate change. Schedule Stakeholders would follow the following approximate schedule for developing the water-energyclimate change scenario: Date Activity June 30, 2014 Confirm leadership commitment from WECC and WSWC July 31, 2014 Develop preparatory materials including: September 4, 2014 Review of work completed to date by other organizations Pre-read materials for stakeholders Stakeholder contact list Data gathering, stakeholder coordination, and scenario planning workshop Page 3 of 4 Water-Energy-Climate Change Scenario Date Activity October 3, 2014 First draft of water-energy-climate change scenario October – December, 2014 Review and revise scenario First Quarter, 2015 Define modeling inputs for scenario Second Quarter, 2015 Run study cases for scenario Page 4 of 4