HomeMy WebLinkAbout2007-12-11; City Council; 19251; NRG Proposal to Construct Power Plant EncinaCITY OF CARLSBAD - AGENDA BILL
AB#
MTG.
DEPT.
19,251
12/11/2007
CM
CITY OF CARLSBAD STAFF
OVERVIEW OF NRG'S PROPOSAL TO
CONSTRUCT A NEW POWER PLANT
AT THE ENCINA POWER STATION
DEPT. HEAD^£-
CITYATTY. Vff^
CITY MGR. I/A-^
RECOMMENDED ACTION:
Receive overview of NRG's proposal to construct a new power plant located at the northeastern
portion of the Encina Power Station and Adopt Resolution No. 2007-312 appropriating funds from
the Council Contingency Account.
ITEM EXPLANATION:
On September 14, 2007, Carlsbad Energy Center, LLC, (the Applicant) submitted an
Application for Certification (AFC) to the California Energy Commission for the Carlsbad Energy
Center Project (CECP). Carlsbad Energy Center LLC (the Applicant) is an indirect wholly
owned subsidiary of NRG Energy, Inc. (NRG), which owns the existing Encina Power Station.
The proposed project is a combined-cycle power plant facility to be located on the northeast
area of the existing Encina Power Station property, east of the rail lines and west of Interstate 5.
The California Energy Commission has exclusive jurisdiction to license this project and is
considering the proposal.
NRG's proposed project will be a 558 MW gross combined-cycle generating facility configured
using two units with one natural-gas-fired combustion turbine and one steam turbine per unit.
The project is projected to incorporate fast-start technology to better meet SDG&E's
requirements.
NRG is currently seeking a license from the Energy Commission by fall 2008 and is proposing
to begin construction of the project shortly thereafter. NRG anticipates having some portion of
the proposed plant operational by summer 2010.
Included in NRG's proposal is the partial retirement of the existing power plant (Boiler Units 1,
2, and 3). NRG's proposal calls for the retirement of those units to occur upon the successful
commercial operations of the new power plant. It is important to note at this time, that it is not
projected, nor proposed, for the existing power plant be fully decommissioned, which precludes
the existing structure from being removed.
City staff is currently reviewing NRG's application and is working with the Energy Commission's
staff to clarify questions and issues that arise as part of the review process. While the Energy
Commission retains jurisdiction in the permitting process, the City has an opportunity to
participate in the proceedings and has been working diligently to do so. As this project was
unanticipated during the City's 2008 budget deliberations, city staff is requesting that the City
Council appropriate $200,000 from the City Council contingency account to fund staffs
(including the use of outside consultants) review of this project. A more detailed description of
the funding request is included in the Financial Impact portion of this agenda bill.
DEPARTMENT CONTACT: Joe Garuba 760-434-2820 jgaru@ci.carlsbad.ca.us
FOR CITY CLERKS USE ONLY.
COUNCIL ACTION:APPROVED
DENIED D
CONTINUED D
WITHDRAWN D
AMENDED D
CONTINUED TO DATE SPECIFIC D
CONTINUED TO DATE UNKNOWN D
RETURNED TO STAFF D
OTHER - SEE MINUTES D
Page 2
Copies of NRG's proposed application are available for public review at the following locations:
Carlsbad City Library (Dove Lane); Georgina Cole Library (Carlsbad Village Drive); UCLA
Research Library; the Energy Commission's Library in Sacramento; the California State Library
in Sacramento; and, at public libraries in Eureka, San Francisco, Fresno, Los Angeles and San
Diego.
Information concerning the status of the project, as well as notices and other relevant
documents, may be viewed on the Energy Commission's Internet web page at:
www.energv.ca.gov/sitingcases/carlsbad/.
On Monday, December 17, 2007, the Energy Commission is proposing to hold a public site visit
and informational meeting. The purpose of this meeting is to introduce the applicant and the
proposed project to the community at large. This informational hearing provides an opportunity
for members of the community to obtain information, offer comments and concerns, and view
the project site. NRG will be on-site to explain plans for developing the project and the related
facilities and the Energy Commission staff will explain the administrative licensing process and
their role in reviewing the application.
City staff will attend the meeting to answer any questions the public may have about the City's
role in this matter.
FISCAL IMPACT:
Staff is requesting that Council appropriate $200,000 from the City Council contingency account
and authorize the Finance Director to transfer the funds to the Carlsbad Environmental
Resource Management Program.
Staff anticipates the review of this project will be rigorous and will require a broad array of
internal and external expertise. As this project was not anticipated as part of the 2008 budget,
staff is requesting that City Council appropriate and authorize the expenditure of funds to cover
legal, technical, communication, and other external support the City will need to retain.
Additional financial needs for this project, if required, will be included in future budgets for
Council consideration.
Due to provisions contained in the California Energy Commission's Project Siting Regulations,
which provide for reimbursement to the City for certain project-related costs, staff anticipates a
substantial portion of the City's expenditures in this project review will be reimbursed.
ENVIRONMENTAL IMPACT:
Undetermined at this time.
EXHIBITS:
1. Resolution No. 2007-312
2. California Energy Commission Notice of Public Site Visit and Informational Hearing.
1 RESOLUTION NO. 2007-312
2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, APPROPORIATING AND
3 AUTHORIZING $200,000 TO FUND THE CITY'S REVIEW
4 OF NRG's PROPOSED POWER PLANT
5
WHEREAS, NRG have applied to the California Energy Commission (CEC) to
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develop a new power plant, and
7
WHEREAS, the CEC, as the lead agency, has requested the City's support in8
Q reviewing the proposed project, and
10 WHEREAS, the City is committed to preserving and enhancing the quality of life
11 of the citizens of Carlsbad, and
12 WHEREAS, the siting of an additional power plant my have serious adverse
13 affects to that quality of life, and
14 WHEREAS, the City is committed to a thorough evaluation of the proposed
15 project.
16
17
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
18
Carlsbad, California, as follows:
20 1 • That the above recitations are true and correct.
21 2. The City Council directs city staff to participate in the review of NRG's
22 proposed power plant project.
23 3. The City Council appropriates $200,000 from the City Council contingency
24
account for this review.
25
4. The City Council authorizes the Finance Director to transfer the funds to26
27 the Carlsbad Environmental Resource Management Program.
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PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council
of the City of Carlsbad on the 11th day of December, 2007, by the following vote to wit:
AYES: Council Members Lewis, Kulchin, Hall, Packard and Nygaard
NOES: None
ABSENT: None
;LAUDE A LEWIS, Mayor
ATTEST:
LORRAINE M^WPOD, City fclerk
(SEAL) s^vx
NOTICE OF MEETING Page 1 of 4
Exhibit 2
WWW.ENERGY.CA.QOV / SITINGCASES / CARLSBAD / NOTICES / 2007-12-17 NOTICE PUBLIC SITE VISIT
California Inergy
IN THE MATTER OF:
)
APPLICATION FOR CERTIFICATION ) DOCKET NO. 07-AFC-6
CARLSBAD ENERGY CENTER PROJECT )
NOTICE OF PUBLIC SITE VISIT AND INFORMATIONAL HEARING
On September 14, 2007, Carlsbad Energy Center, LLC, (the Applicant) submitted an Applicatior
Certification (AFC) for the Carlsbad Energy Center Project (CECP), a combined cycle electrical p
plant facility proposed in the city of Carlsbad, San Diego County. The CECP is-a 540-megawatt
combined cycle power plant facility to be located on the northeast area of the existing Encina PI
Station property, north of the intersection of Carlsbad Boulevard and Cannon Road. The Energy
Commission has exclusive jurisdiction to license this project and is considering the proposal un(
twelve-month review process established by Public Resources Code section 25540.6.
PLEASE TAKE NOTICE that the Energy Commission has designated a Committee of two
commissioners to conduct proceedings on the application. The Committee has scheduled a publ
Site Visit and Informational Hearing to discuss the proposed project as described below:
MONDAY, DECEMBER 17, 2007
Site Visit begins (bus leaves) at 3:15 p.m
Public Informational Hearing begins at 5:00 p.m.
City of Carlsbad - Faraday Center
Conference Room 173B
1635 Faraday Avenue
Carlsbad, California 92008
Wheelchair Accessible
(Map to Location)
Prior to the Informational Hearing, members of the public are invited to join the Committee on
tour of the proposed site. The Applicant will provide transportation to and from the site. For
reservations, contact the Energy Commission Public Adviser's Office at (916) 654-4489 or 1-80
822-6228 or e-mail at: pao@energy.state.ca.us. Please make your reservation on or before
Wednesday, December 12, 2007 so that we can assure you a space.
http://www.energy.ca.gov/sitingcases/carlsbad/notices/2007-12-17_notice_public_site_visi... 12/3/20oV
Overview of NRGOverview of NRG’’s s Proposed Power PlantProposed Power Plant
PurposePurposeOverview NRGOverview NRG’’s proposed power plant s proposed power plant Inform Council, Public, and Staff of Inform Council, Public, and Staff of California Energy CommissionCalifornia Energy Commission’’s processs processHighlight upcoming meetingsHighlight upcoming meetingsRequest that Council consider approving Request that Council consider approving request for fundingrequest for funding
Names you might hearNames you might hearCalifornia Energy Commission (CEC)California Energy Commission (CEC)NRG/Encina NRG/Encina SDG&E SDG&E CA Independent System Operator (Cal CA Independent System Operator (Cal ISO)ISO)Air Pollution Control District (APCD)Air Pollution Control District (APCD)
PROPOSED PROJECT LOCATION
Proposed Power Plant Schematic
Proposed Power Plant Dimensions (Height x Length x Width)76 x 72 x 4588 x 132 x 26100 x 25
1000+ Ft.800 ft.
ProcessProcessCalifornia Energy Commission drivenCalifornia Energy Commission driven––Lead AgencyLead Agency––Process is called Process is called ““Application for Certification (AFC)Application for Certification (AFC)””––Review of AFC is CEQA equivalentReview of AFC is CEQA equivalentCity of CarlsbadCity of Carlsbad’’s roles role––Provide input to the Energy CommissionProvide input to the Energy Commission––Help promote community awarenessHelp promote community awareness
About the Energy CommissionAbout the Energy CommissionState's primary energy policy and planning State's primary energy policy and planning agency agency Created by the Legislature in 1974 Created by the Legislature in 1974 ––Warren Warren AlquistAlquistActActOne of the CommissionOne of the Commission’’s five major s five major responsibilities is: responsibilities is: ––Licensing thermal power plants 50 megawatts or Licensing thermal power plants 50 megawatts or largerlarger
Key DatesKey DatesSite Visit/Informational Hearing Site Visit/Informational Hearing ––December 17December 17Issue Resolution Workshop Issue Resolution Workshop ––January 8January 8Preliminary Staff Assessment Workshop Preliminary Staff Assessment Workshop ––AprilAprilEvidentiary Hearings Evidentiary Hearings ––To Be DeterminedTo Be Determined
WorkWork--ToTo--DateDateCity Review TeamCity Review Team––Evaluating longEvaluating long--term Social, Economic, and term Social, Economic, and Environmental impactsEnvironmental impacts––Requires many different fieldsRequires many different fieldsMeetingsMeetings––Working with CEC & NRGWorking with CEC & NRGStaff has developed a list of items for Staff has developed a list of items for considerationconsideration
Items for ConsiderationItems for ConsiderationLand Use Land Use Water/SewerWater/SewerVisual Visual NoiseNoiseReRe--use of existing power plant siteuse of existing power plant site
Communications PlanCommunications PlanActively promote Actively promote Public awarenessPublic awarenessKey DateKey Date––December 17December 17th : th : Faraday Center, 5 PMFaraday Center, 5 PMMailerMailerAdvertisementsAdvertisementsWebsiteWebsiteFlyersFlyersPostersPosters
Why We Should CareWhy We Should CareItIt’’s a Vision Questions a Vision QuestionLong Term ImplicationsLong Term Implications
Requested Council ActionRequested Council ActionRequest $200K appropriation from Council Request $200K appropriation from Council contingencycontingency––CommunicationCommunication––Technical Technical ––LegalLegal
For More InformationFor More Informationwww.energy.ca.gov/sitingcases/carlsbad/www.energy.ca.gov/sitingcases/carlsbad/www.carlsbadconnected.comwww.carlsbadconnected.comOr CallOr CallCEC Public Advisor CEC Public Advisor ––(916) 654 (916) 654 --44894489Carlsbad City Hall Carlsbad City Hall ––(760) 434 (760) 434 --28202820