DATE

 RECD.

DOCKET

07-AFC-6

JUN 12 2009

JUN 12 2009

arlsbad 

June 12, 2009 

Mike Monasmith 

Siting Project Manager 

California Energy Commission 

1516 Ninth Street, MS-15 

Sacramento, CA 95814 

Re: Carlsbad Energy Center Project (07-AF-6) - June 11, 2009 EPA Letter 

Dear Mr. Monasmith: 

The City of Carlsbad respectfully submits the following letter to the u.S. Environmental 

Protection Agency (EPA) for docketing. This letter, dated June 11, 2009, is regarding the 

Prevention of Significant Deterioration (PSD) review. 

If you have any questions, please feel free to contact me at 760-434-2820. 

Municipal Projects Manager 

JG:ad 

c: Proof of Service List (Revised 5/11/2009) 

'f, 

1200 Carlsbad Village Drive. Carlsbad, CA 92008-1989· (760) 434-2821 • FAX (760) 720-9461 
June 11, 2009 

Mr. Gerard Rios 

Air Division AIR-3 

U.S. Environmental Protection Agency 

73 Hawthorne Street 

San Francisco, CA 94105 

Dear Mr. Rios: 

arlsbad 

'f, 

The City of Carlsbad is writing in response to NRG's proposed Carlsbad Energy Center 

Project (CECP). In a letter dated June 5, 2009, NRGrequested that the U.S. 

Environmental Protection Agency (EPA) determine that the proposed plant would not 

trigger a Prevention of Significant Deterioration (PSD) review. 

The City of Carlsbad has reviewed NRG's request and strongly disagrees with their 

conclusions. Specifically the City objects to the operational years of the Encina Power 

Station (EPS) Units #1-3, which it is proposing to be considered for the air emission 

baseline for PSD evaluation. 

In the letter, NRG highlights the emission baseline which the San Diego Air Pollution 

Control District (APCD) is using in reviewing the CECP. It is worth noting that the 

baseline (32.8 tons per year of NOx) the APCD established for the existing EPS Units 

1-3, was based on a methodology in which it took the five years preceding the date of 

application and averaged the annual amount of emissions over that period. However, it 

should be recognized that the APCD does not currently have PSD permit authority and 

its baseline methodology was predicated on regulations which differ from those of the 

EPA's. 

After a review of federal regulations, it appears that a different baseline methodology 

than that of the APCD's should be applied when considering if the CECP has triggered 

a PSD review. 

Based on information provided by NRG to the California Energy Commission as part of 

the CECP, it is clear that annual emissions from the EPS have substantially decreased 

over the past several years. Table 1 reflects the annual NOx emissions in tons from 

EPS Units #1-3 for the years 2002 - 2008. 

1200 Carlsbad Village Drive G Carlsbad, CA 92008-1989 G (760) 434-2821 G FAX (760) 720-9461 
June 11, 2009 

Mr. Gerard Rios 

Page 2 

Table 1 - EPS Units #1-3 NOx emissions tons/year 

2002 2003 2004 2005 2006 2007 2008 , NOx 39.5 30.8 46 31.8 16.2 10.1 6.2 

Furthermore, it is apparent that due to ongoing delays in project permitting and the 

numerous government agencies which still need to consider the proposed power plant, 

the CECP will not be permitted during 2009 and may not be permitted until late 

201 O/beginning 2011. 

The City of Carlsbad believes the EPA's regulations are clear and encourages it to 

follow its baseline calculation methodology as established by Section 52.21 (b) (48). 

Based on this methodology, the CECP's available baseline for NOx credits associated 

with the EPS would be the five years immediately preceding construction. Construction 

on CECP could begin at the earliest in 2010 which would set the baseline years from 

2005-2009. Selecting the two highest years of emissions which are 2005 and 2006, the 

24 month average is approximately 24 tons of NOx. Using this calculation, the CECP 

would cause a net increase of 49 tons NOx per year, which triggers both the NOx and 

the Ozone threshold for significance (40 tons per year). Recognizing the trend of EPS's 

decreasing usage and the substantial changes in the region's power supply, it is 

foreseeable that the net increase in air emissions related to the CECP would grow if the 

construction schedule for the CECP was delayed beyond 2010. 

The City of Carlsbad appreciates your consideration of this matter. If you have any 

questions, please feel free to contact me at 760-434-2820. 

Sincerely, 

e ruba 

Jcipal Projects Manager 

JG:ad 

c: Packard Government Affairs 

Caridad Sanchez, Senator Boxer's Office 
BEFORE THE ENERGY RESOURCES CONSERVATION AND DEVELOPMENT 

COMMISSION OF THE STATE OF CALIFORNIA 

1516 NINTH STREET, SACRAMENTO, CA 95814 

1-800-822-6228 - WWW.ENERGY.CA.GOV 

ApPLICATION FOR CERTIFICATION 

FOR THE CARLSBAD ENERGY 

CENTER PROJECT 

Docket No. 07-AFC-6 

PROOF OF SERVICE 

(Revised 5/11/2009) 

APPLICANT INTERVENORS Power of Vision 

Julie Baker and Arnold Roe, Ph.D. 

David Lloyd Terramar Association P.O. Box 131302 

'George Piantka, PE. Kerry Siekmann & Catherine Miller Carlsbad, California 92013 

Carlsbad Energy Center, LLC 5239 EI Arbol gowerofvision@roadrunner.com 

1817 Aston Avenue, Suite 104 Carlsbad, CA 92008 

Carlsbad, CA 92008 siekmann1@att.net Rob Simpson 

david.Lloyd@nrgenergy.com Environmental Consultant 

george.~iantka@nrgenergy.com City of Carlsbad 27126 Grandview Avenue 

Allan J. Thompson Hayward CA 94542 

APPLICANT'S CONSULTANTS Attorney for the City rob@redwoodrob.com 

21 "C" Orinda Way#314 

Robert Mason, Project Manager Orinda, CA 94563 ENERGY COMMISSION 

CH2M Hill, Inc. allanori@comcast.net 

6 Hutton Centre Drive, Ste. 700 JAMES D. BOYD 

Santa Ana, CA 92707 'City of Carlsbad Vice Chair and Presiding Member 

Robert.Mason@ch2m.com Joseph Garuba, jboyd@energy.state.ca.us 

Municipals Project Manager 

Megan Sebra Ron Ball, Esq., City Attorney KAREN DOUGLAS 

CH2M Hill, Inc. 1200 Carlsbad Village Drive Chair and Associate Member 

2485 Natomas Park Drive, Ste. 600 Carlsbad, CA 92008 kldougla@energy.state.ca.us 

Sacramento, CA 95833 E-mail preferred 

Megan.Sebra@ch2m.com Joe.Garuba@carlsbadca.gov Paul Kramer 

Ron.Ball@carlsbadca.gov Hearing Officer 

COUNSEL FOR APPLICANT Rkramer@energy.state.ca.us 

California Unions for Reliable Energy 

John A. McKinsey ("CURE") Mike Monasmith 

Stoel Rives LLP Gloria D. Smith & Marc D. Joseph Siting Project Manager 

980 Ninth Street, Ste. 1900 Adams Broadwell Joseph & Cardozo rnmonasrni@energy.state.ca.us 

Sacramento, CA 95814 601 Gateway Boulevard, Suite 1000 

jamckinsey@stoel.com South San Francisco, CA 94080 Dick Ratliff 

gsmith@adamsbroadwell.com Staff Counsel 

INTERESTED AGENCIES dratliff@energy.state.ca.us 

California ISO Center for Biological Diversity 

e-reciRient@caiso.com c/o William B. Rostov Elena Miller 

EARTHJUSTICE Public Adviser's Office 

426171h St., 51h Floor gublicadviser@energy.state.ca.us 

Oakland, CA 94612 

wrostov@earthjustice.org 

"indicates change 
DECLARATION OF SERVICE 

I, Andrea Dykes, declare that on June 12, 2009, I served and filed copies of the 

attached document. The original document, filed with the Docket Unit, is accompanied 

by a copy of the most r~cent Proof of Service list, located on the web page for this 

project at: [http://www.energy.ca.gov/sitingcases/carlsbadlindex.html]. The 

document has been sent to both the other parties in this proceeding (as shown on the" 

Proof of Service list) and to the Commission's Docket Unit, in the following manner: 

(Check all that Apply) 

For service to all other parties: 

~sent electronically to all email addresses on the Proof of Service list; 

_--::by personal delivery or by depositing in the United States mail at Sacramento, 

California with first-class postage thereon fully prepaid and addressed as provided 

on the Proof of Service list above to those addresses NOT marked "email 

preferred. " 

AND 

For filing with the Energy Commission: 

-Lsending an original paper copy and one electronic copy, mailed and emailed 

respectively, to the address below (preferred method); 

OR 

__ depositing in the mail an original and 12 paper copies, as follows: 

CALIFORNIA ENERGY COMMISSION 

Attn: Docket No. 07-AFC-6 

1516 Ninth Street, MS-4 

Sacramento, CA 95814-5512 

docket@energy.state.ca.us 

I declare under penalty of perjury that the foregoing is true and correct. 

'indicates change 2