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Home My WebLink About2008-08-12; City Council; 19548; Citys Adopted Position On Power PlantCITY OF CARLSBAD - AGENDA BILL 11 AB# MTG. DEPT. 19,548 08/12/08 CM UPDATE ON ENERGY COMMISISON PROCEEDINGS AND REVIEW CITY'S ADOPTED POSITION ON POWER PLANT DEPT. HEAD rfe~^ CITYATTY. XjgS CITY MGR. AT, YY ' RECOMMENDED ACTION: Receive staff update on the California Energy Commission's proceedings regarding NRG's proposal to construct a new power plant and consider adopting Resolution No.2008-235 which amends Council's adopted position on the proposed power plant. ITEM EXPLANATION: The City of Carlsbad recognizes the need to develop energy resources that meet the growing demands of our region. As home to the existing Encina Power Station and numerous other regional uses, such as the McClellan-Palomar Airport and the Encina Water Pollution Control Facility, Carlsbad understands a community's responsibility in hosting regional facilities and the impacts associated with such. On September 14, 2007, Carlsbad Energy Center, LLC, (the Applicant) submitted an Application for Certification (AFC) to the California Energy Commission (CEC) for the Carlsbad Energy Center Project (CECP). Carlsbad Energy Center LLC is an indirect wholly-owned subsidiary of NRG Energy, Inc. (NRG), which owns the existing Encina Power Station and adjacent 32-acre parcel of land. The proposed project is to be located on the 32-acre parcel of land, northeast of the existing Encina Power Station, east of the rail lines and west of I-5. The City recognizes that the CEC has exclusive jurisdiction to approve and license this project. City staff has been actively reviewing NRG's application and is working closely with the CEC's staff to fully understand and evaluate the impacts that the proposed CECP will have on the community. On July 25, 2008, NRG submitted a series of project changes to the CEC for its consideration. These changes include: • Project Design • Stack Height • Water Supply • Wastewater Discharge • Switchyard Re-orientation • Fuel Tank Demolition City staff will provide an overview of these changes and the impacts they may have on the City and its residents. DEPARTMENT CONTACT: Joe Garuba, Municipal Project Manager 760-434-2893 jgaru@ci.carlsbad.ca.us FOR CITY CLERK'S USE ONLY. COUNCIL ACTION: APPROVED DENIED CONTINUED WITHDRAWN AMENDED X'D D D D CONTINUED TO DATE SPECIFIC CONTINUED TO DATE UNKNOWN RETURNED TO STAFF OTHER -SEE MINUTES D nn D Page 2 Based on numerous concerns previously identified by staff, the City Council, at its May 13, 2008 meeting, unanimously approved Resolution No. 2008-138, which outlined the City's opposition to the proposed CECP. Staff believes that it is appropriate for the City Council to amend its position at this time to expand Finding #3 in Resolution 2008-138 to include clearer language regarding Council's intent for the Encina Power Station site. This clarification is in response to significant misapplication of land use regulations raised by NRG in its AFC. This amendment will clarify and reiterate the City's policy requiring a comprehensive land use plan (Specific Plan 144) for the Encina site, which has been in place for more than 25 years. To date, a comprehensive plan has not been submitted for Council consideration by any landowner within Specific Plan 144. In order to remain consistent with this policy, the City Council believes and requires that before any new project is considered at the Encina Power Station site, a comprehensive land use analysis and vision plan should be conducted. Furthermore, while the future land use of the Encina property is as yet undetermined, the Carlsbad City Council does not support the continued application of non-coastal dependent industrial uses at that site, including energy generation. Staff recommends that the City Council adopt Resolution No2008-23S which wholly incorporates Resolution No. 2008-138 and provides increased specificity regarding future types of land use that the City Council deems inappropriate for the Encina Power Station property. FISCAL IMPACT: Unknown at this time. ENVIRONMENTAL IMPACT: The California Energy Commission proceedings are considered to be the functional equivalent of the California Environmental Quality Act. As such, the environmental impacts of the CECP are being studied through that process, in which the California Energy Commission, not the City, is considered to be the Lead Agency. EXHIBITS 1. Resolution No. 2008-235 which opposes the proposed Carlsbad Energy Center project and calls for the future preclusion of any non-coastal dependent industrial land use, including energy generation, at the Encina Power Station site. 1 RESOLUTION NO. 2008-235 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, WHICH OPPOSES THE 3 PROPOSED CARLSBAD ENERGY CENTER PROJECT (CECP) AND PRECLUDES ALL NON-COASTAL DEPENDENT INDUSTRIAL APPLICATIONS, INCLUDING 5 ENERGY GENERATION FROM ANY FUTURE LAND USE AT THE ENCINA POWER STATION SITE. 6 7 WHEREAS, NRG Energy, Inc., has submitted an Application for Certification 8 (AFC) for the Carlsbad Energy Center Project (CECP) to the California Energy 9 Commission (CEC); and 10 WHEREAS, the CEC has jurisdiction in approving new power plants; and 11 WHEREAS, the City of Carlsbad recognizes the need to develop energy 12 resources that meet the growing demands of our region; and 14 WHEREAS, as home to the existing Encina Power Station (EPS) since the 15 1950s and numerous other regional facilities, Carlsbad understands a community's 16 responsibility in hosting regional resources and the impacts associated with such; and 17 WHEREAS, due to recent advances in technology, a state-of-the-art power plant 18 is not a coastal dependent land use; and 19 WHEREAS, the proposed CECP would constitute a non-coastal dependent 20 industrial land use at the EPS site for an estimated additional 40 years; and 21 WHEREAS, the proposed CECP will negatively impact the future redevelopment 22 of the EPS site (defined as those parcels owned by NRG and San Diego Gas and 23 Electric which are located west of Interstate 5, North of Cannon Road, South of Agua 25 Hedionda Lagoon, and East of Carlsbad Blvd); and 26 WHEREAS, the City of Carlsbad has reviewed the AFC and found it to be 27 inconsistent and detrimental to the best interests of the community; and 28 3 1 WHEREAS, the proposed CECP contains several objectionable concerns, 2 including land use compatibility; and 3 WHEREAS, the City of Carlsbad has required for over twenty-five years that a 4 comprehensive land use plan be conducted for Specific Plan 144 (which includes the 5 Encina Power Station site) to clearly identify acceptable future land uses and guide site 6 redevelopment; and 7 WHEREAS, any proposed non-coastal dependent industrial land use (including8 9 energy generation) should be located away from the Encina Power Station site to avoid 10 impacting significant coastal resources; and 11 WHEREAS, the proposed CECP has failed to demonstrate any extraordinary 12 public benefit as required by the South Carlsbad Coastal Redevelopment Plan. 13 14 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of 15 Carlsbad, California, as follows: 16 1. That the above recitations are true and correct. 17 18 2. Reaffirms its opposition to the proposed Carlsbad Energy Center Project, 19 as stated in Council Resolution No. 2008-138. 20 3. Supports the re-use of the existing Encina Power Station site to provide 21 greater public benefit. 22 4. Reaffirms its longstanding requirement for a comprehensive plan which 23 will guide the redevelopment of the Encina Power Station site. 24 5. Any non-coastal dependent industrial land use (including power 26 generation) at the Encina Power Station site is inconsistent with the best 27 interests of the community and should be precluded. 28 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 6. City Staff is hereby directed to continue to work with NRG and San Diego Gas and Electric to help identify alternate solutions to regional energy demands. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 12fo day of August t 2008, by the following vote to wit: AYES: Council Jfembers Lewis, Kulcbin, Hall and Packard. NOES: None. ABSENT: Council Member Nygaard. xAJDE 'A. LEWIS, Mayor ATTEST: LORRAINE M. yfodD, city cierk o UPDATE ON PROPOSED CARLSBAD ENERGY CENTER PROJECT(CECP) PURPOSE|Provide Updated Project Information|Review Project Schedule |Expand City’s PositionyStaff Recommendation -Adopt Resolution No. 2008-235 PROPOSED PROJECT LOCATION CITY’S POSITION -OPPOSED|Carlsbad supports regional infrastructure|City understands energy needs|City supports development to meet those needs|Long Term Vision for Encina is greater than intense industrial|Significant Environmental, Quality of Life and View impacts|Proposed power plant not coastal dependent |Alternate locations available CITY CONCERNS –PROJECT CHANGES|Use of Coastal Property |Environmental ConcernsyWater –New 4 million gallon/day Desalination PlantyWastewater Discharge –Existing OutfallyFuel Tank Demolition|Quality of Life Impacts|Views and Visual ImpactsoSmoke Stack Height Increase –139 ftoSwitchyard Relocation SIGNIFICANT CHANGES|Smoke Stack HeightyIncrease to 139 ft Proposed Switchyard CECPSwitchyardSewer Line &Rail TrailFuture Desal PlantI -5 Widening SCHEDULE –LIKELY SCENARIOHearing/Workshop/Planned Event or FilingCEC Initial ScheduleCEC Current ProjectedScheduleCarlsbad Anticipated ScheduleDraft Preliminary Staff Assessment (PSA)April 2008July 2008November 2008PSA WorkshopApril 2008July 20081stQtr 2009Final Staff Assessment (FSA)May 2008September 20082ndQtr 2009Evidentiary HearingsTBDTBD3rdQtr 2009CEC DecisionNovember 2008February 20091stQtr 2010Plant Construction24 Months24 Months30-36 MonthsPotential Online DateNov 2010Feb 20111st -2ndQtr 2013 IN REVIEW –REMAIN OPPOSED|Carlsbad supports regional infrastructure|City understands energy needs|City supports development to meet those needs|Long Term Vision for Encina is greater than intense industrial|Significant Environmental, Quality of Life and View impacts|Proposed power plant not coastal dependent |Alternate locations available STAFF RECOMMENDATION|Approve Resolution No. 2008-235yClearly states that future non-coastal dependent industrial land uses (including energy generation) are not appropriate for the Encina Power Station siteyReaffirms opposition to proposed power plant QUESTIONS ???