# 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 ofCarlsbad respectfully submitsthefollowing lettertothe u.S. Environmental Protection Agency (EPA) for docketing. This letter, datedJune 11, 2009, is regardingthe Prevention ofSignificant Deterioration (PSD) review.
Ifyou have any questions, please feel freeto contact me at 760-434-2820.

Municipal Projects Manager
JG:ad

c: ProofofService List (Revised 5/11/2009) 'f,

1200 Carlsbad Village Drive. Carlsbad, CA 92008-1989· (760) 434-2821 • FAX (760) 720-9461June 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 ofCarlsbad is writing in response to NRG's proposed Carlsbad Energy Center Project (CECP). In a letter dated June 5, 2009, NRGrequestedthatthe U.S. Environmental Protection Agency (EPA) determine that the proposed plant would not trigger a Prevention ofSignificant Deterioration (PSD) review. The City ofCarlsbad has reviewed NRG's request and strongly disagrees with their conclusions. Specificallythe City objects to the operational years ofthe 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 thatthe baseline (32.8 tons peryear of NOx) the APCD established forthe 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 overthat period. However, it should be recognized that the APCD does not currently have PSD permit authority and its baseline methodologywas predicated on regulations which differfrom those ofthe EPA's. After a review offederal regulations, it appears that a different baseline methodology than that ofthe APCD's should be applied when considering ifthe CECP hastriggered a PSD review. Based on information provided by NRG to the California Energy Commission as part of the CECP, it is clearthat annual emissionsfrom the EPS have substantially decreased overthe past several years. Table 1 reflects the annual NOx emissions in tons from EPS Units #1-3 forthe years 2002
- 2008.

1200 Carlsbad Village Drive G Carlsbad, CA 92008-1989 G (760) 434-2821 G FAX (760) 720-9461June 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 apparentthat dueto ongoing delays in project permitting and the numerous government agencieswhich still need to considerthe proposed power plant, the CECP will not be permitted during 2009 and may not be permitted until late 201O/beginning 2011. The City ofCarlsbad 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 highestyears ofemissions 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 of49 tons NOx peryear, which triggers both the NOx and the Ozone threshold for significance (40 tons peryear). 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 ifthe construction schedule forthe CECP was delayed beyond 2010. The City ofCarlsbad appreciates your consideration ofthis matter. Ifyou have any questions, please feel free to contact me at760-434-2820. Sincerely,

e ruba Jcipal Projects Manager JG:ad

c: Packard GovernmentAffairs Caridad Sanchez, Senator Boxer's OfficeBEFORE 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 FORTHE CARLSBADENERGY CENTERPROJECT Docket No. 07-AFC-6 PROOFOFSERVICE

(Revised 5/11/2009) APPLICANT INTERVENORS PowerofVision Julie Bakerand Arnold Roe, Ph.D. David Lloyd TerramarAssociation P.O. Box 131302 'George Piantka, PE. Kerry Siekmann &Catherine Miller Carlsbad, California 92013 Carlsbad Energy Center, LLC 5239 EI Arbol gowerofvision@roadrunner.com 1817Aston 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 ofCarlsbad 27126 GrandviewAvenue Allan J. Thompson Hayward CA 94542 APPLICANT'S CONSULTANTS Attorneyforthe City rob@redwoodrob.com 21 "C" Orinda Way#314 Robert Mason, Project Manager Orinda, CA 94563 ENERGY COMMISSION CH2M Hill, Inc. allanori@comcast.net 6Hutton Centre Drive, Ste. 700 JAMES D. BOYD Santa Ana, CA 92707 'CityofCarlsbad Vice Chairand Presiding Member Robert.Mason@ch2m.com Joseph Garuba, jboyd@energy.state.ca.us Municipals Project Manager Megan Sebra Ron Ball, Esq., CityAttorney KAREN DOUGLAS CH2M Hill, Inc. 1200 Carlsbad Village Drive Chairand Associate Member 2485 Natomas Park Drive, Ste. 600 Carlsbad, CA92008 kldougla@energy.state.ca.us Sacramento, CA 95833 E-mailpreferred 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 Unionsfor 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 StaffCounsel INTERESTED AGENCIES dratliff@energy.state.ca.us California ISO Centerfor Biological Diversity e-reciRient@caiso.com 

### c/o William B. Rostov Elena Miller EARTHJUSTICE PublicAdviser's Office 426171h St., 5 1h Floor gublicadviser@energy.state.ca.us Oakland, CA 94612 wrostov@earthjustice.org

"indicates changeDECLARATION OF SERVICE


### I, Andrea Dykes, declare that on June 12, 2009, Iserved and filed copies ofthe attached document. The original document, filed with the Docket Unit, is accompanied by a copy ofthe most**r~cent** 

### ProofofService list, located on the web page forthis 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: (Checkall thatApply) 

### Forserviceto all other parties:**~sent** 

### electronicallyto all email addresses on the ProofofService 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 Forfiling with the Energy Commission: -Lsending an original paper copy and one electronic copy, mailed and emailed respectively, tothe 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 ofperjury that the foregoing is true and correct.

'indicates change 2