HomeMy WebLinkAboutResolution 2013-55 urging the Governing Board of the South CDept. ID AD 13-030 Page 1 of 2
Meeting Date: 10/21/2013
CITY OF HUNTINGTON BEACH
REQUEST FOR CITY COUNCIL ACTION
MEETING DATE: 10/21/2013
SUBMITTED TO: Honorable Mayor- and City Council Members
SUBMITTED BY: Fred A. Wilson, City Manager
PREPARED BY: Fred A. Wilson, City Manager
SUBJECT: Adopt Resolution No. 2013-55 urging the Governing Board of the South Coast
Air Quality Management District (SCAQMD) to use funding from Rule 1304.1,
Electrical Generating Facility Fee for use of offset exemptions on local SCAQMD
projects and directing the City Manager to develop a set of Clean Air
Infrastructure Proiects
Statement of Issue: Council is being asked to approve a resolution urging the Governing Board of
the South Coast Air Quality Management District (SCAQMD) to use fees of more than $72,000,000
collected from the AES Huntington Beach Energy Project, as per rule 1304.1, on air quality projects
that are closest to the Electrical Generating Facility (AES Huntington Beach).
Financial Impact: No financial impact at this time. However, there is potential for significant grant
funding for projects with a clean air nexus in 2014, 2019 and 2021.
Recommended Action:
Approve Resolution No. 2013-55, "A Resolution of the City Council of the City of Huntington Beach,
Urging the Governing Board of the South Coast Air Quality Management District to Use Funding
From Rule 1304.1, Electrical Generating Facility Fee, For Use of Offset Exemptions, on Local Air
Quality Projects and Directing the City Manager to Develop a Set of Proposed Clean Air
Infrastructure Projects."
Alternative Action(s): Do not approve the resolution and advise staff on how to proceed.
Analysis: City staff has been working with California Energy Commission (CEC) and AES
Huntington Beach staff on the proceeding at the CEC to license the AES Huntington Beach Energy
Project (HBEP). The CEC is the permitting authority for this re -licensing and the city of Huntington
Beach has maintained a cooperative advisory role with the CEC ensuring that the city's long-
standing laws, ordinances, regulations and standards are properly incorporated into the proceeding.
The SCAQMD is the air quality permitting authority.
SCAQMD's Governing Board recently finalized Rule 1304.1, Electrical Generating Facilities fee,
setting an estimated fee level of $72,000,000 for the AES Huntington Beach Energy Project with
payments in 2014, 2019 and 2021. SCAQMD staff has been directed to work on developing an
investment plan for these clean air funds. SCAQMD scheduled the first workshop to study the use
of these fees for October, 23, 2018. This resolution urges SCAQMD's Governing Board to use
these fees on projects that are consistent with the SCAQMD's Air Quality Management Program
goals in communities that are closest to the facilities.
xB -55- Item 5. - 1
Dept. ID AD 13-030 Page 2 of 2
Meeting Date: 10/21/2013
The city has an exemplary track record of clean energy projects with energy efficiency investments
having already reduced energy consumption and associated emissions by 4,315,909 Kilo -watt
hours and 89,377 Therms of natural gas. Additionally, the city's installation of 2.13 Megawatts of
solar capacity has reduced annual emissions by 3.4 million pounds of CO2, 910 pounds of NOx,
174 pounds of Sox, 285 pounds of PM10 and 213 pounds of PM 2.5-
The city's project to re -structure street lighting services provides an opportunity for SCAQMD to
invest in and receive credit for mobile and stationary source emissions reductions near the HBEP.
City staff have developed a preliminary set of clean air infrastructure projects that support
SCAQMD's Air Quality Management Plan and the city believes should be eligible for the projected
funding in 2014, 2019 and 2021. However, ongoing engagement with SCAQMD staff and the
Governing Board is necessary to make these projects eligible and secure funding from SCAQMD.
1. Funding to support the city-wide street lighting services re -structuring providing stationary
and mobile source emissions reductions with LED light and by eliminating 1,764,000 miles
of diesel truck travel over the life of the equipment.
2. Develop and implement a complete streets program for PCH and Beach Blvd that improves
active transportation (pedestrian, bicycle) options and amenities.
3. Conversion of the city's vehicle fleets to Compressed Natural Gas fuel.
4. Improvements identified in the draft Bicycle Master Plan
5. Installation of additional solar capacity on city facilities such as Fire Stations, Community
Centers, Branch Libraries, Water Yard and Parks, Trees and Landscape Yard.
6. Signal Synchronization that increases average speeds and reduces air emissions
7. Improvements identified in the city's Local Energy Assurance Plan that would make the
Emergency Operations Center cleaner, more secure and resilient.
8. Improvements identified in the city's Local Energy Assurance Plan that would make
innovative clean air upgrades to mobile and stationary back up generators.
9. Funding to better accommodate Neighborhood Electric Vehicles reducing air emissions.
10. Improve Multi -family housing plug-in electric vehicle charging infrastructure to eliminate
barriers to Zero Emission Vehicle adoption.
11. Implement a comprehensive whole home and business energy upgrades on facilities
nearest the AES Huntington Beach energy project.
These potential projects provide mobile and stationary source emissions reductions that support of
SCAQMD's air quality management plan but eligibility and awards for implementation are at the
SCAQMD Governing Board's discretion. This resolution will help to guide city staff in terms of
working to ensure the eligibility of the city's projects and be prepared for the solicitation and
subsequent awards from SCAQMD.
Environmental Status: Not applicable
Strategic Plan Goal: Improve the City's infrastructure
Attachment(s):
1. Resolution No. 2013-55, "A Resolution of the City Council of the City of Huntington Beach,
Urging the Governing Board of the South Coast Air Quality Management District to Use
Funding From Rule 1304.1, Electrical Generating Facility Fee, For Use of Offset
Exemptions, on Local Air Quality Projects and Directing the City Manager to Develop a Set
of Proposed Clean Air Infrastructure Projects."
Item 5. - 2 HB -56-
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RESOLUTION NO. 2013-55
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF HUNTINGTON BEACH URGING THE GOVERNING BOARD
OF THE SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT TO USE
FUNDING FROM RULE 1304.1, ELECTRICAL GENERATING FACILITY FEE
FOR USE OF OFFSET EXEMPTIONS, ON LOCAL AIR QUALITY PROJECTS
AND'DIRECTING CITY MANAGER TO DEVELOP A SET OF PROPOSED
CLEAN AIR INFRASTRUCTURE PROJECTS
WHEREAS, on September 6, 2013 the South Coast Air Quality Management District
(SCAQMD) approved Rule 1304.1, which sets a fee if Electric Generating Facilities meet their
emissions offset obligations for boiler replacement projects by using different offsets provided
by SCAQMD pursuant to Rule 1304(a)(2). The final rule (adopted by a vote of 11-1)
emphasizes the use of fees in those communities that are closest to the facilities and funding
projects consistent with the AQMD s Air Quality Management Program goals; and
Recently, SCAQMD Executive Officer Dr. Barry Wallerstein informed the Stationary
Source committee that the CPV Sentinel project located in Coachella Valley is a good model for
the use of Rule 1304.1 fees and recommended that the CPV Sentinel general approach, i.e. that
all of the fees paid by the CPV Sentinel were expended locally, be followed for other projects;
and
The City of Huntington Beach (CiV) estimates that fees generated from AES' Huntington
Beach Energy Project using offsets pursuant to Rule 1304.1 will total over $72,000,000. The
fees will be paid in increments to SCAQMD in 2014, 2019 and 2021; and
The AES' Huntington Beach Energy Project Application for Certification before the
California Energy Commission requests permit conditions to potentially emit a net increase of
193.9 tons per year of Oxides of Nitrogen, or NOx, 13.8 tons per year of Sulfur Dioxides (SOx),
119.6 tons per year of Volatile Organic Compounds (VOCs), 91.1 tons per year of PMIo and 98.2
tons per year of PM2,5; and
AES' Huntington Beach Energy Project will utilize Best Available Control Technology to
meet the Lowest Achievable Emissions Rate (LAER) standard and in addition pay the Rule
1304.1 fees; and
The City has installed 2.13 megawatts of on -site solar and retired the Renewable Energy
Credits creating annual emission reductions of 3,429,545 pounds of carbon dioxide, 910 pounds
of NOx, 174 pounds of SOx, 285 pounds of PMIo and 213 pounds of PM2_5; and
13-3940/101747.doc
Resolution No. 2013-55
The City is in the process of upgrading its street lights to LED light sources which is
projected to reduce electricity consumption by 4,405 megawatt hours annually; this will also
reduce stationary source emissions by as 2,912,586 pounds of Carbon Dioxide, 1,846 pounds of
NOx and 802 pounds of Sox; reduce 388 pounds of PMIo emissions annually and 291 pounds of
PM2.5 emissions annually; and
The longer life LED street lights will result in three avoided round trips of heavy duty
maintenance bucket trucks per fixture; and the City's LED street light conversions will eliminate
1,764,000 miles of diesel -fueled heavy duty truck vehicle emissions and pursuant to EPA data
result in reduced mobile source emissions of 4,303,423 pounds of CO2, 17,686 pounds of
Nitrogen Oxides, 1,065 pounds of Volatile Organic Compounds, 4,623 pounds of Carbon
Monoxide, 307 pounds of PMIo and 330 pounds of PM2.5; and
NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby
resolve as follows:
SECTION 1. The City Council urges the Governing Board of the South Coast Air
Quality Management District to-
1 . Engage with the stakeholders nearest the AES Huntington Beach Energy Project
to develop an investment plan consistent with the CPV Sentinel template where the mitigation
funding is expended on projects closest to the project.
2. Invest the Rule 1304.1 2014 annual estimated fees of $2,894,802, less 8% for
AQMD administration, from AES' Huntington Beach Energy Project Rule 1304.1, in the City's
street light LED upgrades providing stationary and mobile emissions reductions.
SECTION 2. The City Council directs the City Manager to develop a proposed
comprehensive set of clean air infrastructure projects in consultation with SCAQMD staff in
preparation for AES' planned lump sum Rule 1304.1 payments.
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a
regular meeting thereof held on the 21 s t day of October , 2013.
An
APPROVED:
ty Manager
APPROVED AS TO FORM:
City Attorne
13-3940/101747.doc
Res. No. 2013-55
STATE OF CALIFORNIA
COUNTY OF ORANGE ) ss:.
CITY OF HUNTINGTON BEACH )
I, JOAN L. FLYNN the duly elected, qualified City Clerk of the City of
Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby
certify that the whole number of members of the City Council of the City of
Huntington Beach is seven; that the foregoing resolution was passed and adopted
by the affirmative vote of at least a majority of all the members of said City Council
at a Regular meeting thereof held on October 21, 2013 by the following vote:
AYES: Sullivan, Hardy, Harper, Boardman, Carchio, Shaw, Katapodis
NOES: None
ABSENT: None
ABSTAIN: None
Cit-Clerk and ex-officio Irk of the
City Council of the City of
Huntington Beach, California