HomeMy WebLinkAboutMayor to send letter to League of Cities Representative to S CITY OF HUNTINGTON BEACH
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TO: Honorable Mayor and City Council Members
VIA: Ray Silver, City Administrator
FROM: Clay Martin, Director of Administrative Services
DATE: June 14, 2001
SUBJECT: "C" ITEM FOR JUNE 18, 2001 CITY COUNCIL MEETING
AQMD Permit Issuance to AES
Background
At the City Council Meeting of April 16, 2001, City Council Member Ralph Bauer
submitted an H-item related to the purchase of Air Pollution Credits by A.E.S.
The two recommended actions that were approved by the City Council at that
meeting directed staff to:
1. Intervene in the negotiations between AES and SCAQMD to prevent the
purchase of any air pollution credits.
2. Request the Mayor to send a letter protesting the purchase of any air
Pollution credits to Newport Beach City Council Member Norma Glover
(League of Cities representative to the SCAQMD Board of Directors)
The following summary presents the results of this effort for further council review
and discussion.
Summary
The Governing Board of the South Coast Air Quality Management District
(SCAQMD) issued AES Huntington Beach a permit to proceed with
construction/operation of Units 3 and 4 on May 30, 2001. At issue was the
availability of pollution credits required by AES to operate Units 3 and 4.
The permit was issued by the Governing Board despite AES' failure to obtain a
contract from the State Department of Water Resources (DWR) to sell power.
The city of Huntington Beach,.among others, successfully lobbied to have
SCAQMD Rule 1309.1 amended to require AES to have a signed contract with
the DWR insuring that they would sell the electricity generated by Units 3 and 4
in the State of California. As of June 8, 2001, AES does not have a signed
contract with DWR.
In addition, staff believes that AES should be required to demonstrate the
following:
• AES meets best available retrofit control technology (BARCT).
• Units 3 and 4 will not cause significant increases in toxic emissions.
• AES is in compliance with all record keeping, monitoring, and reporting
requirements.
The city can appeal the ruling within 30 days from the date of issuance (deadline -
June 28, 2001).
Attachment
CITY OF HUNTINGTON BEACH
HUNTINGTON BEACH CITY COUNCIL MEMO M}b�1
To: Honorable Mayor and City Council Members
From: Ralph Bauer, City Council Memberftj� o
Date: April 10, 2001
Subject: "H"ITEM FOR APRIL 16, 2001 CITY COUNCIL MEETING-
PURCHASE OF AIR POLLUTION CREDITS BYA.E.S. )
Co r-
STATEMENT OF ISSUE: _
N �
-Co .:: -
It is my understanding that AES is in negotiations with SCAQMD to buy pollution
credits under air pollution rules laid down by AES. According to newspaper
articles, AES could buy unlimited credits and then pass the cost of these
purchases on to their customers. We are thus in the ludicrous position of the
people paying for more air pollution.
RECOMMENDED ACTION:
It is moved that:
1. The city staff intervenes in the negotiations between AES and SCAQMD to
prevent the purchase of any air pollution credits.
2. The Mayor send a letter protesting the purchase of any air pollution credits to
Newport Beach Council Member Norma Glover, who is the League of Cities
representative to the SCAQMD Board of Directors.
Technology is available to prevent pollution of the atmosphere by oxides of
nitrogen and oxides of sulfur. This technology should be put in place for all
power generating units at the AES Plant.
RB:cf
xd: Ray Silver
Connie Brockway
Bill Workman
Clay Martin
t - INN ,
CITY OF HUNTINGTON BEACH
HUNTINGTONBEACH CITY COUNCIL MEMO M-JV--;D)
To: Honorable Mayor and City Council Members
From: Ralph Bauer, City Council Membergp-12 o z
Date: April 10, 2001
Subject: "H"ITEM FOR APRIL 16, 2001 CITY COUNCIL MEETING— -Ell
Q
PURCHASE OF AIR POLLUTION CREDITS BY A.E.S.
co r
_ C
STATEMENT OF ISSUE: N
It is my understanding that AES is in negotiations with SCAQMD to buy pollution
credits under air pollution rules laid down by AES. According to newspaper
articles, AES could buy unlimited credits and then pass the cost of these
purchases on to their customers. We are thus in the ludicrous position of the
people paying for more air pollution.
RECOMMENDED ACTION:
It is moved that:
1. The city staff intervenes in the negotiations between AES and SCAQMD to
prevent the purchase of any air pollution credits.
2. The Mayor send a letter protesting the purchase of any air pollution credits to
Newport Beach Council Member Norma Glover, who is the League of Cities
representative to the SCAQMD Board of Directors.
Technology is available to prevent pollution of the atmosphere by oxides of
nitrogen and oxides of sulfur. This technology should be put in place for all
power generating units at the AES Plant.
RB:cf
xd: Ray Silver
Connie Brockway
Bill Workman
Clay Martin
r � �
ATTACHMENT # 1
South Coast Air Quality Management District
Rule 118 Executive Order #01-06
WHEREAS, District Rule 118 authorizes the Executive Officer to suspend all or part of
any District rule for emergency activities in up to 10-day increments during a state of
emergency declared by the Governor; and
WHEREAS, on January 17, 2001, the Governor proclaimed a State of Emergency
resulting from the imminent threat of widespread and prolonged disruption of
electrical power; and
WHEREAS, the Governor's proclamation declared that a condition of extreme peril to
the safety of persons and property within the state exists by virtue of the threat of
disruption of electrical power, particularly disruption of power to emergency services,
law enforcement, schools, and hospitals; and
WHEREAS, rapid availability of additional electric power from facilities in the South
Coast Air Quality Management District is necessary to assure adequate power supplies
to protect the safety of persons and property within the State of California; and
WHEREAS, on February 8, 2001, the Governor issued an Executive Order, D-22-01,
which provides in pertinent part as follows:
IT IS FURTHER ORDERED that the Energy Commission shall expedite to
the extent feasible the processing of applications for certification for existing
thermal powerplants that require retooling and a current license to operate.
In order to bring such thermal powerplants online as soon as possible, the
Energy Commission is authorized to reduce the time in which to conduct a
reasonable review of the application, consistent with the objectives of
environmental protection and the protection of public health and safety.
IT IS FURTHER ORDERED that all local, "regional, and state agencies
involved in the licensing of proposed thermal powerplants in California
shall work cooperatively and expeditiously with the Energy Commission
and within its timeline to review all such Applications for Certification. All
agencies shall diligently review such proposed license applications and
provide timely comments to the Energy Commission as the Energy
Commission requests, and
WHEREAS, the AES Huntington Beach Generating Station Units 3 and 4 Retool Project
file://C:\WINDOWS\TEMP\AQMD Executive Order 01-06.htn l 4/9/01
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is one of the facilities referred to in the Governor's Executive Order D-22-01, and the
District has been working cooperatively and expeditiously with the Energy
Commission to provide timely review of the project; and
WHEREAS, District Rules 212(d) and 1710(b)(3) require the applicant to distribute
public notice of the proposed project, 30 days before the issuance of the permit, to each
address within a 1/4 mile radius of the project; and
WHEREAS, the project applicant for the Huntington Beach Units 3 and 4 Retool Project
inadvertently failed to deliver public notice as required in a timely manner; and
WHEREAS, under the provisions of Rule 118(d)(1), I hereby determine and declare
that strict compliance with District Rules 212(d) and 1710(b)(3), to the extent they
require 30 days notice to each address within 1/4 mile of the project, would delay or
prevent critical actions necessary to construct the project to provide for emergency
power generation; and
WHEREAS, public notice required by federal regulations or state laws has been
provided for this project, notice has been given to additional interested parties, and the
project is well-publicized in the area; and
WHEREAS, in order to provide the maximum compliance with Rules 212(d) and 1710
(b)(3) that is consistent with the emergency situation, it is necessary to impose
reasonable conditions requiring prompt distribution of notice;
NOW, THEREFORE, pursuant to the authority vested in me pursuant to District Rule
118(d)(1) I hereby suspend applicable sections of Rules 212(d) and 1710(b)(3), only to
the extent they require delivery of notice of the Huntington Beach Units 3 and 4 Retool
Project 30 days prior to issuing the permit, provided that:
the applicant or its agent delivers notice to all addresses within 1/4 mile of the project
by April 6, 2001; and
the notice specifies that comments must be provided to the AQMD on or before
April 16, 2001, but is otherwise in the form previously provided to the applicant.
This order expires Monday, April 16, 2001, at noon, or when the State of Emergency
declared by the Governor on January 17, es..to exist, whichever is earlier.
Executed at Diamond Bar, California, n April 6, 2001.
Barry R. Wallerstein, D.Env.
file://C:\WINDOWS\TEMP\AQMD Executive Order 01-06.htH 4/9/01
Executive Officer
AQMD Home Page
This page updated:April 06,2001
URL:httpllwuw.aqmd.gov/newsl/Exec_order_01_06.htm
file:HC:\WINDOWS\TEMP\AQMD Executive Order 01-06.html 4/9/01
To: Governor Gray Davis
State Capital Building
RECEIVED FROM
Sacramento, California 95814
AND MADE PART OF THE�A
COUNCIL MEETING of
OFROEOFTHECITYCLERK
From: Mr. William "Bill" Curtis CONNIEBFIOCKWAY,CITY CLERK
Choctaw Crude Oil Company moo
Post Office Box 5952
Balboa Island, California 92662
RE: Land use at Pacific Coast Highway and Magnolia Street
Dear Governor Gray Davis,
I wish to thank you for going out of your way to praise Edison International, I have been
in touch with Paul Phelan he is president of Pacific Pipeline system. The Pipeline System
is the greatest in the state of California.
As the first step to discussing the oldest, the worst, the only power plant that has
two of largest smoke stacks in the U.S.A. that is pumping bad gas every day!
The Edison's pledge to tear down the old and only powerplant in U.S.A. that is
killing all the property owners around this power plant with two smoke stacks that were
supposed to be taken down in the 1980's.
William "Bill" Curtis is the owner of 212 acres of mineral rights on P.C.
Highway Magnolia Street. The A.E.S. Corp. is the owner of power plant in Huntington
Beach. They have converted the land to a large repair plant. Curtis owns the mineral
rights under this plant. The old A.G. Edwards Plant has to be torn down and replaced by
a new power plant with no smoke stacks! Mills Land and Water Company owned by
Robert Logon Moore Jr. since 1901 will be very happy and I own 34 acre that I can
develop and drill oil and gas well to the 4000 ft. zone and 6000 ft. main zone with high
26 gravity. I have been on the property in past week, I met Ed Blackford president of
A.E.S. Corp. He stated his company would like to clean up and get rid of the old power
plant. A.E.S. has threatened to pull out of their five years lease unless they are permitted
to move the old plant out, new one in. It sounds O.K. with me.
Choctaw Crude Oil
William "Bill" Curtis
President
P.O. Box 5952
Balboa Island Cal. 92662