Staff of the California Energy Commission is rejecting criticism of the CEC’s approval of a licensee to operate a long-awaited natural gas fired power plant on the Valleys westside. The proposed project is scheduled to be approved January 9, 2013 by the full commission allowing Avenal Energy Project to begin to operate under an updated emission plan.
The $530 million project, first proposed in 2008, has been the subject of some 5 years of criticism and legal action by various environmental groups including San Francisco-based Center For Race Poverty & The Environment (CRPE) who argue that pollutants from the proposed plant would result in a disproportionate impact to low income or minority populations in the nearby towns of Kettleman City,Avenal and Huron.
The power plant is located in Kings County near the Avenal Cuttoff in the city limits of Avenal – west of I-5.
A December 31,2012 letter to the CEC from CRPE charges that the natural gas power plant will add to harmful emission levels in the nearby towns and that the plan does not meet the EPA’s most stringent rules on maximum emissions allowed on a per-hour basis.
The applicant counters that this facility will be the cleanest burning natural gas power plant built yet.
The project remains caught up in environmental justice concerns surrounding health problems in the Kettleman City area that have focused on a waste dump there as well. Advocates claim emissions from I-5 , toxic waste, pesticide pollution from farms and other air and water problems should limit new development that creates more problems.
Agreeing the project should move forward is CEC staff led by Richard Ratliff, Staff Counsel, who argues Avenal Energy’s latest application lowers the annual emissions of oxides of nitrogen (NOx) and carbon monoxide (CO) so that all criteria pollutant emissions allowed by the Avenal license would be below the threshold limits that require a federal Prevention of Significant Deterioration (PSD) permit. Avenal has received the federal PSD permit from the Environmental Protection Agency (EPA), but that permit is currently being litigated in the federal Ninth Circuit Court of Appeals, and it is unclear when that litigation will result in a decision says the CEC staff report.
The license was originally issued by the Energy Commission in December 2009 but the project faced years of foot dragging by the EPA and after the EPA’s approval ,forced by court action, more lawsuits from environmental groups that are still pending in court.
Because the issue remains tied up in court CRPE says the state Energy Commission should wait before approving Avenal’s latest emission plan.Among other things CRPE argues that the project does not meet a new EPA standard on one hour emissions put in place after the project was approved by the CEC .But the San Joaquin Valley Air Pollution Control District did an analysis that says the project does meet that higher standard.
CRPE questions the SJVAPCD analysis.The area “has worse air quality than any other region in the Nation.”
CEC staff suggest the commission approve the project despite CRPE’s claims,a likely outcome.
“The CRPE request should be rejected for three reasons: (1) As stated above, the amendment imposes more stringent requirements on Avenal, requiring reductions in criteria pollutant emissions; (2) the San Joaquin Valley Air Pollution Control District (SJVAPCD) has performed an analysis of N02 emissions impacts demonstrating compliance with the new federal standard, and Staff has independently reviewed and confirmed the validity of that analysis; and (3) the CRPE request in essence seeks to create a separate state forum in which to re-litigate issues already raised and resolved in the original proceeding, or to litigate the issues it has raised with regard to the federal PSD permit on issues that are outside the State’s purview, and that can only be resolved by the federal courts. “
The 600MW project would provide power to some 450,000 Valley homes and businesses The City of Avenal is hoping it moves forward as it will be the town’s largest property taxpayer and provide new employment. The project owner Houston-based Macquarie Energy , says during the nearly three-year construction period, 300-400 construction workers will be employed at the peak of construction with an average of 250 per month during the three-year construction phase.
During operation, the project will create 19-25 new well-paying jobs.
The California Energy Commission response to CRPE concludes:”Lower emissions equal lower potential environmental impacts. As such, the proposed amendment cannot result in any significant adverse environmental impact, making it eligible for the “common sense” exemption from the California Environmental Quality Act. (Cal. Code Regs., tit. 14,§ 15061, subd. (b)(3) [“CEQA applies only to projects which have the potential for causing a significant effect on the environment.”].)
Accordingly, the amendment would not result in a disproportionate impact to low income or minority populations. “
Even with a victory here Avenal Energy must get a power purchase agreement from a utility to move to a ground breaking.