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The 92 Report


Aug 28, 2023

Show Notes:

Seth Hilton graduated from Harvard and later went on to law school at UC Davis, started working as a litigation associate at a law firm before joining a large firm in the Bay Area. During the California energy crisis, he was tasked with monitoring regulatory developments and participating at regulatory agencies when needed. He eventually shifted his practice from energy litigation and energy-regulated regulatory work to almost exclusively regulatory work, although occasionally doing a little bit of litigation.

Seth's interest in law stemmed from his father's law practice and his father's enjoyment of the law practice. He took a constitutional law course at Harvard, which inspired him to explore the field further. 

Seth is currently a partner in the law firm of Stole Rives, focusing on California energy regulatory work. He works with companies in the energy sector in California, many of which are regulated by various state agencies or entities. He advises them on current regulations and assists them in adapting or changing those regulations to better suit their clients or their customers. Seth's clients range from electric to natural gas, oil and gas, and more recently, hydrogen.

Seth talks about how the California Public Utilities Commission regulates utilities and other entities providing electric and natural gas service to retail customers. They dictate what resources and types of energy are procured to serve retail customers. The commission is concerned about the near term, the next five years, and the transition to more electrification. They have directed utilities and other load-serving entities to procure renewable resources, such as solar or wind, and sometimes specify energy storage that might assist with bringing in more renewable sources of energy. 

Blending Hydrogen and Natural Gas

Seth talks about exploring the potential of blending hydrogen with natural gas to reduce carbon intensity. This could involve blending hydrogen with natural gas or using hydrogen instead of natural gas. The California Public Utilities Commission is currently evaluating the role of hydrogen in its overall GHG reduction strategy. They are considering whether to use pure hydrogen or blend it with natural gas for retail customers, or if to use pure hydrogen and convert retail appliances to use blended hydrogen. 

Seth explains what the two flavors of hydrogen are and the challenges in determining the appropriate regulations for hydrogen use, such as whether to require it to be solely produced by renewable energy or if to relax regulations to make hydrogen more cost-effective. He also mentions the debates around the methodology for calculating greenhouse gas emissions, including accounting for the entire lifecycle of energy sources.

Seth talks about how he originally wanted to study engineering but decided it wasn’t for him. He explains why enjoys working in the energy sector, particularly in response to climate change, which has had significant impacts on California, such as heat, wildfires, drought, and increased rainfall. He believes that a specific regulation or detail would be beneficial in reducing greenhouse gas emissions and addressing the existing challenges faced by California.

Nuclear Power in California

Seth discusses the problems with the California grid, which is outdated and requires upgrading. The grid's old distribution system has caused wildfires and caused significant damage. The state is also trying to connect new generation resources, such as solar and offshore wind, to the grid, which requires planning and upgrading the transmission system. However, concerns about timing, cost, and retail customer satisfaction arise.

Seth explains that the future of nuclear power in California is uncertain, despite the significant advantages to nuclear power, such as GHG emission-free generation and the ability to provide consistent power. However, there are also concerns about waste management and waste disposal.

Currently, there is little hope for nuclear power in California, but there are potential technical developments that could change the situation, such as smaller generators. However, it would require significant technical breakthroughs to see nuclear power again in California.

Stability of the Grid and Energy Storage Facilities

Seth talks about the stability of a grid, and how, in California, a grid with a high percentage of solar and wind power can be unstable due to technical challenges. He explains that regulatory agencies are aware of these challenges and are creating regulations to address them, such as requiring procurement of additional energy storage. California has procured a vast amount of energy storage, primarily lithium ion batteries, which are large utility-scale batteries that store energy and discharge it when needed. Most of the storage resources in California consist of battery storage facilities, which can be either out in the field or in a large warehouse. Seth talks about storage facilities and how many homes can be served by one megawatt.

The Development of Charging Stations for EV's

Seth discusses the development of charging stations for electric and hydrogen vehicles, as well as the need for them in the transportation sector. The California Energy Commission is working towards creating additional hydrogen fueling stations across the state, which will provide the fueling stations for fuel cell hydrogen fuel cell cars. Hydrogen is also a good solution for larger vehicles like truck transport, as it provides the energy infrastructure to provide the energy for those vehicles.

His contact information is available on his website, and he would be happy to hear from people interested in his work.

Influential Courses at Harvard

Seth took a Constitutional Law course which interested him as a potential profession and led him to law school. 

Timestamps:

05:50 How you create a market for renewable energy

11:22 The difference between clean good hydrogen and dirty hydrogen

14:16 Why Seth likes working in the energy sector

18:17 Information about the grid in California

22:26 Nuclear Power in California

24:22 How energy storage works at utility scale

29:51 How many homes could be served by a megawatt battery

33:59 How Seth ended up in the world of energy regulatory policy

Links:

https://www.stoel.com/

CONTACT:

Email: seth.hilton@stoel.com