CEC conditions
On Feb. 12, 2001, the Arizona Power Plant and Transmission Line Siting Committee recommended by a 6-to-1 vote that SRP be granted a Certificate of Environmental Compatibility (CEC) for its Santan Expansion Project (referred to as "the Project" below) in Gilbert, Arizona.
Many of these conditions are attempts to solve potential problems brought forward during the several months of testimony before the Arizona Power Plant and Transmission Line Siting Committee. SRP fully embraces these changes and will work diligently to make them successful.
The Line Siting Committee recommended that the certificate include the first 34 conditions listed below. On April 26, 2001, the Arizona Corporation Commission (ACC) granted the CEC to SRP with seven additional conditions. The status of each condition is reflected in the Quarterly Reports.
On June 25, 2003, SRP voluntarily withdrew its application to the ACC to amend Condition 36 of the CEC to allow the use of ultra-low sulfur fuel at the existing generating units in the case of emergency.
Condition 1
SRP shall comply with all existing applicable air and water pollution control standards and regulations, and with all existing applicable ordinances, master plans and regulations of the State of Arizona, the Town of Gilbert, the County of Maricopa, the United States, and any other governmental entities having jurisdiction.
Condition 2
This authorization to construct the Project will expire five years from the date the Certificate is approved by the ACC unless construction of the Project is completed to the point that the project is capable of operating at its rated capacity; provided, however, that SRP shall have the right to apply to the ACC for an extension of this time limitation.
Condition 3
SRP's project has two approved transmission lines emanating from its power plant transmission switchyard and interconnecting with the existing transmission system. This plant interconnection must satisfy the single contingency criteria (N-1) without reliance on remedial action such as a generator unit tripping or load shedding.
Condition 4
SRP shall use reasonable efforts to remain a member of WSCC, or its successor, and shall file a copy of its WSCC Reliability Criteria Agreement or Reliability Management System (RMS) Generator Agreement with the Commission.
Condition 5
SRP shall use reasonable efforts to remain a member of the Southwest Reserve Sharing Group, or its successor.
Condition 6
SRP shall meet all applicable requirements for groundwater set forth in the Third Management Plan for the Phoenix Active Management Area.
Condition 7
- With respect to landscaping and screening measures, including the improvements listed in the IGA, SRP agrees to develop and implement a public process consistent with the process chart (Exhibit 89) presented during the hearings, modifying the dates in the IGA with the Town of Gilbert, if necessary, to correspond with the schedule in Exhibit 89.
- The new Community Working Group (CWG) will consist of 12 members, selected as follows: one member selected by the Town of Gilbert, four members selected by neighborhood homeowner associations, four representatives selected by intervenors, and three members selected by SRP (not part of the aforementioned groups) who were part of the original community working group. SRP and landscaping consultants shall act as advisors to the CWG. CWG meetings shall be noticed to and be open to the general public. The initial meeting shall take place on an evening or weekend in the Town of Gilbert.
- The objective of the CWG shall be to refine the landscaping and mitigation concept plans submitted during these hearings (Exhibit 88). The CWG shall work to achieve appropriate visual mitigation of plant facilities and to facilitate the design and installation of the concept plan components so as to maximize the positive impact on the community and to increase, wherever possible, the values of the homes in the neighboring areas. The refinement of the mitigation plans shall be reasonably consistent with the planning criteria of the Town of Gilbert, the desires of neighboring homeowner associations, and the reasonable needs of SRP.
- SRP shall retain an independent facilitator, acceptable to the CWG, to conduct the CWG meetings. It shall be the role of the facilitator to assist in initial education and in conducting an orderly and productive process. The facilitator may, if necessary, employ dispute resolution mechanisms.
- The CWG shall also assist in establishing reasonable maintenance schedules for landscaping of SRP's plant site in public-view areas.
- SRP will develop with the Town of Gilbert a continuous fund, to be administered by the Town of Gilbert, to provide for the construction and maintenance of off-site landscaping in the areas depicted in the off-site landscaping concepts as developed by the CWG in an amount sufficient to fund the concepts in Exhibit 88 or concepts developed by the CWG, whichever is greater.
Condition 8
The visual mitigation efforts shall be in general compliance with the plans and concepts presented in these proceedings and constitute a commitment level by SRP. SRP will not reduce the overall level of mitigation as set forth in its Application and this proceeding, except as may be reasonably changed during the CWG process. The plans agreed to by the CWG shall be approved by the Town of Gilbert.
Condition 9
SRP shall, where reasonable to do so, plant on-site trees by the fall of 2001. Because planting of trees must await the improvement of Warner Road and the design and construction of berms, this condition will largely apply to trees on the east side of the site, and some of the trees on the North side.
All landscaping will be installed prior to the installation of major plant equipment such as, but not limited to, exhaust stacks, combustion turbines, and heat recovery steam generators, except where delays are reasonably necessary to facilitate construction activities.
Condition 10
SRP shall operate the Project so that during normal operations the Project shall not exceed the most restrictive of applicable (i) HUD residential noise guidelines, (ii) EPA residential noise guidelines, or (iii) applicable City of Tempe standards.
Construction and operation of the facility shall comply with OSHA worker safety noise standards. SRP agrees that it will use its best efforts to avoid during nighttime hours construction activities that generate significant noise.
Additionally, SRP agrees to comply with the standards set forth in the Gilbert Construction Noise Ordinance, Ordinance No. 1245, during construction of the project. In no case shall the operational noise level be more than 3 db above background noise as of the noise study prepared for this application. The SRP shall also, to the extent reasonably practicable, refrain from venting between the hours of 10 p.m. and 7 a.m.
Condition 11
SRP will work with the Gilbert Unified School District to assist it in converting as many as possible of its school bus fleet to green diesel or other alternative fuel, as may be feasible and determined by Gilbert Unified School District, and will contribute a minimum of $330,000 to this effort.
Condition 12
SRP shall actively work with all interested Valley cities, including at a minimum, Tempe, Mesa, Chandler, Queen Creek and Gilbert, to fund a Major Investment Study through the Regional Public Transit Authority to develop concepts and plans for commuter rail systems to serve the growing population of the East Valley. SRP will contribute a maximum of $400,000 to this effort.
Condition 13
Within six months of approval of this Order by the ACC, SRP shall either relocate the gas metering facilities to the interior of the plant site or construct a solid wall between the gas metering facilities at the plant site and Warner Road. The wall shall be of such strength and size as to deflect vehicular traffic, including a fully loaded concrete truck, that may veer from Warner Road to the gas-metering site.
Condition 14
SRP will use only SRP surface water, CAP water or effluent water for cooling and power plant purposes. The water use for the plant will be consistent with the water plan submitted in this proceeding and acceptable to the Department of Water Resources. SRP will work with the Town of Gilbert to attempt to use available effluent water, where reasonably feasible.
Condition 15
SRP agrees to comply with all applicable federal, state and local regulations relative to storage and transportation of chemicals used at the plant.
Condition 16
SRP agrees to maintain on file with the Town of Gilbert safety and emergency plans relative to emergency conditions that may arise at the plant site. On at least an annual basis SRP shall review and update, if necessary, the emergency plans. Copies of these plans will be made available to the public and on SRP's Web site.
Additionally SRP will cooperate with the Town of Gilbert to develop an emergency notification plan and to provide information to community residents relative to potential emergency situations arising from the plant or related facilities.
SRP agrees to work with the Gilbert police and fire departments to jointly develop on site and off-site evacuation plans, as may be reasonably appropriate. This cooperative work and plan shall be completed prior to operation of the plant expansion.
Condition 17
In obtaining air offsets required by EPA and Maricopa County, SRP will use its best efforts to obtain these offsets as close as practicable to the plant site.
Condition 18
In order to reduce the possibility of generation shortages and the attendant price volatility that California is now experiencing, SRP will operate the facilities consistent with its obligation to serve its retail load and to maintain a reliable transmission system within Arizona.
Condition 19
Beginning upon operation of the new units, SRP will establish a citizens' committee, elected by the CWG, to monitor air and noise compliance and water quality reporting. SRP will establish on-site air and noise monitoring facilities to facilitate the process.
Additionally, SRP shall work with Maricopa County and the Arizona Department of Environmental Quality to enhance monitoring in the vicinity of the plant site in a manner acceptable to Maricopa County and the Arizona Department of Environmental Quality.
Results of air monitoring will be made reasonably available to the public and to the citizens' committee. SRP shall provide on and off-site noise monitoring services (at least on a quarterly basis), testing those locations suggested by the citizens' committee. The off-site air monitoring plan shall be funded by the SRP and be implemented before operation of the plant expansion.
Condition 20
SRP will explore, and deploy where reasonably practicable, the use of available technologies to reduce the size of the steam plumes from the unit cooling towers. This will be a continuing obligations throughout the life of the plant.
Condition 21
SRP will, where practicable, work with El Paso Natural Gas Company to use the railroad easements for the installation of the new El Paso gas line.
Condition 22
Other than the Santan/RS 18 lines currently under construction, SRP shall not construct additional Extra High Voltage transmission lines (115kV and above) into or out of the Santan site, including the substation on the site.
Condition 23
SRP will replace all Town of Gilbert existing street sweepers with certified PM10 efficient equipment. A PM10 efficient street sweeper is a street sweeper that has been certified by the South Coast Air Quality Management District in California to comply with the District's performance standards under its Rule 1186, which is the standard referenced by the Maricopa Association of Governments.
Condition 24
SRP shall work in a cooperative effort with the Office of Environmental Health of the Arizona Department of Health Services to enhance its environmental efforts.
Condition 25
SRP shall operate, improve and maintain the plant consistent with applicable environmental regulations and requirements of the Environmental Protection Agency, the Arizona Department of Environmental Quality, Maricopa County and the Town of Gilbert.
Condition 26
SRP shall actively work in good faith with Maricopa County in its efforts to establish appropriate standards relative to the use of distillate fuels in Valley generating facilities.
Condition 27
SRP shall install continuous emission monitoring equipment on the new units and will make available on its Web site emissions data from both the existing and new units according to EPA standards. SRP shall provide information to the public on its website in order to assist the public in interpreting the data, and provide viable information in a reasonable time frame.
Condition 28
SRP will comply with the provisions of the Intergovernmental Agreement dated April 25, 2000, between SRP and the Town of Gilbert, as modified pursuant to this Certificate.
Condition 29
During the proceeding neighbors to the plant site raise significant concern about the impact of the plant expansion on residential property values. In performing each of the conditions in this order SRP, in conjunction where applicable, with the Town of Gilbert and the plant site neighbors, shall consider and attempt to maximize the positive effect of its activities on the values of the homes in the surrounding neighborhoods.
Condition 30
SRP shall construct the auxiliary boiler stack at such height as may be determined by air modeling requirements. SRP shall situate the auxiliary boiler stack so that it is not visible from off the plant site.
Condition 31
SRP will construct the heat recovery steam generators ("HRSG") approximately 15 feet below grade and will construct the HRSGs so that the overall height of the HRSG module from the natural grade is no more than 80 feet.
Condition 32
SRP will complete the installation of the dry low NOX burners on the existing units prior to the construction of the new units.
Condition 33
SRP shall not transfer this Certificate to any other entity for a period of 20 years from the date of approval by the Corporation Commission, other than as part of a financing transaction where operational responsibilities will remain with SRP, and where SRP will continue to operate the plant in accordance with this Certificate.
Condition 34
SRP shall post on its Web site when its air quality permit application is submitted to the Maricopa County Environmental Services Department. Also, SRP shall post on its Web site any official notice that may be required to be posted in newspapers for its air quality permit application.
Conditions added by the Arizona Corporation Commission
Condition 35
The Santan Expansion Project shall be required to meet the lowest achievable emission rate (LAER) for carbon monoxide (CO), nitrogen oxides (Nox), volatile organic carbons (VOCs), and particulate matter (PM) less than 10 micron in aerodynamic diameter (PM10). The Santan Expansion Project shall be required to submit an air quality permit application requesting this LAER to the Maricopa County Environmental Services Department.
Condition 36
Due to the plant's location in a non-attainment area, SRP shall not use diesel fuel in the operation of any combustion turbine or heat recovery steam generator located at the plant.
Condition 37
In obtaining emissions reductions related to carbon monoxide (CO) emissions, SRP shall where technologically feasible obtain those emission reductions onsite to the Santan Expansion Project.
Condition 38
Beginning upon commercial operation of the new units, SRP shall conduct a review of the Santan Generating facility operations and equipment every five years and shall, within 120 days of completing such review, file with the Commission and all parties in this docket, a report listing all improvements which would reduce plant emissions and the costs associated with each potential improvement.
Commission staff shall review the report and issue its findings on the report, which will include an economic feasibility study, to the Commission within 60 days of receipt. SRP shall install said improvements within 24 months of filing the review with the Commission, absent an order from the Commission directing otherwise.
Condition 39
SRP shall provide $20,000 to the Pipeline Safety Revolving Fund on an annual basis, thus improving the overall safety of pipelines throughout the State of Arizona.
Condition 40
Where feasible, SRP shall strive to incorporate local and in-state contractors in the construction of the three new generation units for the expansion projects.
Condition 41
SRP shall construct a 10-foot-high block wall surrounding the perimeter of the Santan plant, and appropriately landscape the area consistent with the surrounding neighborhood, unless otherwise agreed to by SRP and the Citizens Working Group.
