STA. OF CALIFORNIA —THE RESOURCES AGENCY ARNOLD SCHWARZENEGGER, Governor

CALIFORNIA ENERGY COMMISSION

1516 NINTH STREET

SACRAMENTO, CA 95814-5512

STATE OF CALIFORNIA DOCKET

ENERGY RESOURCES CONSERVATION 99-AFC-5C

AND DEVELOPMENT COMMISSION

DATE JUN 032009

In the Matter of: RECD. JUN 10 2009

OTAY MESA GENERATING PROJECT ) Docket No. 99-AFC-5C

)

OTAY MESA ENERGY CENTER, ) Order No. 09-603-2

LLC ) ORDER APPROVING a Petition to Modify

) Air Quality Conditions of Certification

)

On May 12, 2008, Otay Mesa EnergyCenter, LLC, the owner/operator of the Otay Mesa

Generating Project, submitted a petition requesting to modify air quality conditions of

certification AQ-21 — AQ-23; AQ-83; A Q-36-AQ-40; AQ-42; A Q-59; AQ-60 and AQ-61. The

condition changes will 1) provide the project owner options for reducting their NOx emissions

from 2 parts per million (ppm) to 1 ppm when Mobile Emission Reduction Credits (MERCs)

expire. The modifications will also provide language clarification for compliance methods and

consistency with Federal terminology.

The modifications were approved by the San Diego County Air Pollution Control District and a

revised Final Determination of Compliance was issued on February 20, 2009. Staff is

renumbering and reissuing all the air quality conditions of certification to ensure consistency in

the numbering between the Energy Commission and the District’s conditions, and to highlight

those few conditions changed by this proposed amendment.

STAFF RECOMMENDATION

Energy Commission staff reviewed the petition and finds that it complies with the requirements

of Title 20, Section 1769(a) of the California Code of Regulations and recommends approval of

Otay Mesa Energy Center, LLC’s petition to modify the Otay Mesa Generating Project and

amend related Conditions of Certification.

ENERGY COMMISSION FINDINGS

Based on staff’s analysis, the Energy Commission concludes that the proposed changes will not

result in any significant impact to public health and safety, or the environment. The Energy

Commission finds that:

• The petition meets all the filing criteria of Title 20, section 1769(a) of the California Code

of ReguJations concerning post-certification project modifications;

• The modification will not change the findings in the Energy Commission’s Final Decision

pursuant to Title 20, section 1755;
June 3, 2009

Page 23

information gathered in this condition shall be included in the quarterly reports required

in Condition AQ-64.

AQ-43. AQ 48 The emissions of particulate matter less than 10 microns (PMjO) shall

not exceed 9.0 lbs/hr when operated without duct firing and shall not exceed

11.5 lbs/hr for each turbine when operated with duct firing. Compliance with

this limit shall be based on an initial emissions source test and at least annual

source testing thereafter.

Verification: The project owner shall provide copies of the initial compliance and

annual source test reports to the District and the CEC CPM within 60 days after

completion of the compliance or source tests.

AQ-44. AQ 8-1 Fuel consumption by the auxiliary boiler shall not exceed 762,120

MMBtu (HHV) per rolling 12-month period..The GEMS shall record the total

auxiliary boiler fuel usage for each rolling 12-month period (in MMBtu). The

applicant shall maintain a log that contains, at a minimum, the dates, times and

fuel consumption during each auxiliary boiler startup and shutdown and the

total auxiliary boiler fuel consumption for each rolling 12-month period. These

records shall be maintained on site for a minimum of five years and made

available to District personnel upon request.

Verification: The project owner shall maintain records of the operation of the

auxiliary boiler. These records shall be maintained on site for a minimum of five years

and shall be available for inspection by representatives of the District, California Air

Resources Board (GARB) and the Commission. The information gathered in this

condition shall be included in the quarterly reports required in Condition AQ-64.

AQ-45. AQ 85 Once final selection and design details of the auxiliary boiler have been

submitted to the District, specific operating parameters defining auxiliary boiler

startups and shutdowns shall be established.

Verification: At least 90 days prior to on-site delivery of equipment, the project owner

shall provide copies of design details of the auxiliary boiler, including any proposed post

combustion control systems to the CPM and the District.

AQ-46. AQ-86 The emissions of oxides of nitrogen (NOx) from the auxiliary boiler,

calculated as nitrogen dioxide, shall not exceed 9.0 parts per million by volume

on a dry basis (ppmvd) corrected to 3% oxygen. Compliance with this limit

shall be based on an initial emissions source test and annual source testing

thereafter. This limit shall not apply during startups and shutdowns of the

auxiliary boiler.

Verification: The project owner shall provide copies of the initial compliance and

annual source test reports to the District and the CEC CPM within 60 days after

completion of the compliance or source tests.