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Home My WebLink About2010-02-16; City Council; 20126; Update Power Plant and CA Energy CommissionCITY OF CARLSBAD - AGENDA BILL 16 AB# MTG. DEPT. 20.126 2-16-2010 CM UPDATE ON PROPOSED POWER PLANT AND CALIFORNIA ENERGY COMMISSION PROCEEDINGS DEPT. DIRECTOR CITY ATTORNEY CITY MANAGER RECOMMENDED ACTION: Receive staff update on the California Energy Commissions proceedings regarding NRG's proposal to construct a new power plant. Background 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. 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 Interstate 5. CEC Process As established by the Warren Alquist Act, (PRC § 25000 et. seq.) the CEC has exclusive jurisdiction to license power plants of 50 MW or greater in the State of California. The CEC process is quasi-judicial in nature and the CEC review and licensing process is a regulatory program certified by the Secretary of the Resources Agency which provides for the CEC's process may be submitted in lieu of an EIR (PRC § 21080.5(9)). Its' program; however, must consider all relevant environmental impacts. The CEC licensing process can best be described in the following stages: • Project application • Staff Fact finding and analysis • Commission Preliminary project review and decision • Commission Final project review and decision, and • Appeal The CEC licensing process is intended to take approximately 12 months. However, based on the complexity of the project, the CECP has progressed at an appreciably slower pace. DEPARTMENT CONTACT: Joe Garuba 760-434-2820 ioe.qaruba@carlsbadca.gov FOR CITY CLERK'S USE ONLY. COUNCIL ACTION: APPROVED DENIED CONTINUED WITHDRAWN AMENDED D D D D D CONTINUED TO DATE SPECIFIC CONTINUED TO DATE UNKNOWN RETURNED TO STAFF OTHER -SEE MINUTES Dn $ Accepted Report Evidentiary Hearings On February 1-4, 2010, the CEC held a series of workshops, called Evidentiary Hearings, in Carlsbad. The purpose of these hearings was for the CEC Siting Committee to gather information about the CECP. These hearings represented the first time that the CEC Commissioners were briefed about the CECP in detail, and provided an opportunity for those involved, including the City, the Housing and Redevelopment Agency, and the community-at- large to present information gathered to date. Information collected by the Siting Committee will result in the issuance of a preliminary decision. This preliminary decision is expected to be released in the 3rd Quarter of 2010. CEC Schedule The CEC identified the following schedule as part of the Evidentiary Hearings. This schedule is subject to change. • February 12, 2010 Parties submit potential topics for briefs • February 19, 2010 CEC sends out topics for briefs • March 22, 2010 Opening Briefs due • April 14, 2010 Reply Briefs due • June/July 2010 CEC Preliminary Decision released for review Staff will present an update to the City Council on the upcoming CEC proceedings. FISCAL IMPACT: The fiscal impact from the CECP is uncertain at this time. If constructed the CECP will result in increased revenue to the City in the form of property tax and franchise fees from natural gas usage in the range of $2 -$5 million annually. However, this revenue would be realized if the project were to be located at an alternate site within the City. Impacts from the CECP on the broader tourism industry in the City have not yet been analyzed. The City will continue to review the fiscal impact from the project as more information becomes available through the licensing process. ENVIRONMENTAL IMPACT: The CEC, not the City of Carlsbad, serves as lead agency under its certified regulatory program which is commonly known as the functional equivalent of CEQA for the proposed CECP and performs the environmental review as part of its exclusive jurisdiction to license the proposal. No Environmental Impact Report (EIR) is required; however, the CEC certification process is subject to certification by the Secretary of the Resources as the functional equivalent of CEQA; therefore, the CEC must analyze all potential environmental impacts resulting from the project. The Preliminary Staff Assessment and the Final Staff Assessment produced by CEC staff have so far provided the project environmental analysis. As noted herein, city staff believes the proposed CECP, if approved by the CEC, would cause significant land use, fire safety, and visual impacts and potentially other impacts as well. EXHIBITS: None Proposed Power Plant Project Agua Hedionda Lagoon 14 stories tall 10 stories tall 6 stories tall Evidentiary Hearings February 1-4, 2010 35+ hours of testimony 8 hours of Public Comment HUGE Public Involvement (600+ people) 3 AH HA Moments Proposed Changes to Encina Location and need for CECP Contract status w/SDG&E Schedule March 22 Briefs due April 14 Rebuttal Briefs due Summer 2010 Preliminary Decision PMPD Public Comment Override consultation Revised PMPD Full Commission consideration Other agencies Questions ? Agua Hedionda Lagoon Existing Power Plant I-5 (Widened) Strawberry Fields RR Future Desal Plant Sewer Line & Rail Trail Lift Station 186 ac. LEGEND: Owned by NRG Owned by SDGE Acreage of Cannon Corridor Properties