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HomeMy WebLinkAbout2014-05-06; City Council; 21589; Adoption Repealing Urgency Ordinance CS-170 Which Amended Ordinance Chapter 21.36 Public Utility ZoneCITY OF CARLSBAD - AGENDA BILL '^^^ 21.589 ADOPTION OF ORDINANCE REPEALING URGENCY ORDINANCE CS-170 WHICH AMENDED ZONING ORDINANCE CHAPTER 21.36, PUBUC UTILITY ZONE DEPT. DIRECTOR ^]^^ MTG. 5/06/14 ADOPTION OF ORDINANCE REPEALING URGENCY ORDINANCE CS-170 WHICH AMENDED ZONING ORDINANCE CHAPTER 21.36, PUBUC UTILITY ZONE CITY ATTORNEY DEPT. Clerk ADOPTION OF ORDINANCE REPEALING URGENCY ORDINANCE CS-170 WHICH AMENDED ZONING ORDINANCE CHAPTER 21.36, PUBUC UTILITY ZONE CITY MANAGER i^f) RECOMMENDED AaiON: Adopt Ordinance No. CS-250, repealing Urgency Ordinance CS-170, which amended Zoning Ordinance Chapter 21.36, Public Utility Zone, and specifically Section 21.36.020, Permitted Uses, regarding generation and transmission of electrical energy. ITEM EXPLANATION: Ordinance No. CS-250 was introduced and first read at the City Council meeting held on April 22, 2014. The second reading allows the City Council to adopt the ordinance. The City Clerk will have the ordinance or a summary of the ordinance published within fifteen days, if adopted. FISCAL IMPACT: See AB #21,574 on file in the Office ofthe City Clerk. ENVIRONMENTAL IMPACT: Pursuant to Public Resources Code Section 21065, the proposed actions do not constitute "projects" within the meaning of CEQA in that they have no potential to cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, and therefore do not require environmental review. Furthermore, environmental review ofthe Amended CECP as contemplated by the Agreement is within the exclusive jurisdiction of other agencies, including without limitation the California Energy Commission and California Public Utilities Commission, which have served and/or will serve as the Lead Agencies for compliance with the California Environmental Quality Act (CEQA). EXHIBIT: 1. Ordinance No. CS-250. DEPARTMENT CONTACT: Shelley Collins 760-434-2808 Shelley.Collinstgcarlsbadca.gov FOR CITY CLERKS USE ONLY COUNCIL AaiON: APPROVED CONTINUED TO DATE SPECIFIC • DENIED • CONTINUED TO DATE UNKNOWN • CONTINUED • RETURNED TO STAFF • WITHDRAWN • OTHER-SEE MINUTES • AMENDED • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 EXHIBIT 1 ORDINANCE NO. CS-250 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, REPEALING URGENCY ORDINANCE CS-170, WHICH AMENDED ZONING ORDINANCE CHAPTER 21.36, PUBLIC UTILITY ZONE, AND SPECIFICALLY SECTION 21.36.020, PERMITTED USES, REGARDING GENERATION AND TRANSMISSION OF ELECTRICAL ENERGY. WHEREAS, in May of 2012, the California Energy Commission (CEC) approved NRG's application for certification ofthe Carlsbad Energy Center Project (CECP), a thermal power plant, over the vigorous objections of the City of Carlsbad and the Carlsbad Redevelopment Agency; and WHEREAS, as part of its objections, the City Council adopted Urgency Ordinance CS-170 on January 10, 2012, pursuant to Carlsbad Municipal Code 1.20.610 and Government Code Section 36937, to amend Zoning Ordinance Chapter 21.36 ofthe Carlsbad Municipal Code, Public Utility Zone; and WHEREAS, adoption of an urgency ordinance was necessary for the immediate preservation of the public peace, health and safety, which was justified by several facts, including the proposed development ofthe CECP within the South Carlsbad Coastal Redevelopment Area Plan (SCCRA) and Coastal Zone; and the negative impacts construction of the CECP would cause to sensitive coastal resources, land uses, and the public's health, safety and welfare; a California Supreme Court decision negatively impacting redevelopment plans, including the SCCRA, in which the CECP site is located; and, the city's potential inability, due to the court decision, of applying the SCCRA requirement that generation and transmission of electrical energy must serve an extraordinary public purpose; and /// 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 WHEREAS, specifically. Urgency Ordinance CS-170 amended Zoning Ordinance Section 21.36.020, including Table A, to require a Conditional Use Permit for the generation and transmission of electrical energy and a finding by the City Council that the use serves an extraordinary public purpose, the latter a requirement of the SCCRA; and WHEREAS, since October, 2012, the energy supply environment in Southern California has dramatically changed due to the permanent closure of the San Onofre Nuclear Generation Station (SONGS) and as a result the California Independent System Operator (CAISO) and the California Public Utilities Commission (CPUC) have determined that additional power generation capacity is currently needed in the San Diego Region by 2018; and WHEREAS, most recently on March 13, 2014, the CPUC approved a decision addressing San Diego Gas and Electric's (SDG&E) need to procure gas-fired power generation of up to 600 MWs in the San Diego region; and WHEREAS, given the recent CAISO and CPUC determination of power needs in the San Diego region, SDG&E recently indicated its interest in entering into a Power Purchase Agreement (PPA) with NRG for electricity generated from the CECP, but only if NRG is willing to change the proposed technology of the approved CECP from a "combined-cycle configuration" plant to a "peaker configuration" plant and submit a Petition to Amend (PTA) application to the CEC for the previously approved CECP; and WHEREAS, NRG is interested in submitting a PTA application, but only if the City would be supportive of such an application; and /// 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 WHEREAS, on January 14, 2014, the City Council and Carlsbad Municipal Water District approved the Settlement Agreement (Agreement) between and among the City of Carlsbad, the Carlsbad Municipal Water District, Cabrillo Power I LLC and Carlsbad Energy Center LLC (collectively "NRG"), and SDG&E to support a change in the proposed technology of the approved CECP and the submittal of a PTA application to the CEC for approval of the technology change, conditioned upon the decommissioning, demolition, removal and remediation ofthe current Encina Power Station (EPS) site by a date certain, as well as other changes in CECP plant design, energy infrastructure and property considerations beneficial to the residents of Carlsbad; and WHEREAS, the repeal of Urgency Ordinance CS-170 is contemplated in response to the Agreement, which directs staff to review the City's prior legislative actions concerning the CECP and recommend changes, if any, as may be necessary to reflect the changed circumstances, reduced environmental profile and significant community benefits associated with the amendment; and WHEREAS, after procedures in accordance with requirements of law, the City Council has determined that the public interest indicates that the repeal of Urgency Ordinance CS-170 be approved. NOW, THEREFORE, the City Council of the City of Carlsbad does ordain as follows that: SECTION 1: The above recitations are true and correct. SECTION 2: That the conditions which led to the adoption of Urgency Ordinance CS-170, as noted in the above recitations, are no longer applicable due to the Agreement provisions for decommissioning, demolition, removal and remediation ofthe 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 current Encina Power Station (EPS) site, as well as other changes in CECP plant design, energy infrastructure and property considerations beneficial to the residents of Carlsbad as stipulated in the Agreement. SECTION 3: Ordinance CS-170 is repealed. EFFECTIVE DATE: This ordinance shall be effective thirty days after its adoption; and the city clerk shall certify the adoption ofthis ordinance and cause the full text ofthe ordinance or a summary of the ordinance prepared bythe City Attorney to be published at least once in a newspaper of general circulation in the City of Carlsbad within fifteen days after its adoption. INTRODUCED AND FIRST READ at a regular meeting of the Carlsbad City Council on the 22"'^ day of April, 2014, and thereafter. /// /// /// /// /// /// /// /// /// /// /// /// 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 PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 6*^ day of May, 2014, by the following vote to wit: AYES: NOES: Council Members Packard, Wood, Schumacher and Blackburn. None. ABSENT: Council Member Hall. ABSTAIN: None. APPROVED AS TO FORM AND LEGALITY CELIA A. BREWER, City Attorney 1ARK PACKARD, Mayor Pro Tem ATTEST: BARBARA ENGLESON, ©ty Clerk