Resolution No. 78761
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RESOLUTION NO. 7876
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON AMENDING RESOLUTION NO. 7813, WHICH APPROVED
AND AUTHORIZED THE FILING OF PERMIT TO CONSTRUCT
AND TITLE V APPLICATIONS AND RELATED DOCUMENTS WITH
THE SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT
REGARDING THE MALBURG GENERATING STATION AND
AUTHORIZED THE CITY TO DO ALL OTHER ACTIONS DEEMED
NECESSARY OR ADVISABLE CONCERNING THE APPLICATION
PROCESS
WHEREAS, the City of Vernon is in the process of developing a
120 MW Combined Cycle Power Plant officially named the Malburg
Generating Station (the "Malburg Project") for the purpose of
installing additional generating capacity that will yield an efficient,
cost-effective, and reliable source of electric generation to the City
lof Vernon; and
WHEREAS, on August 1, 2001, the City Council of the City of
Vernon adopted Resolution Nos. 7812 and 7813, which approved the filing
of an Application for Certification (the "AFC") with the California
Energy Commission (the "CEC") and a Permit to Construct and Title V
Application with the South Coast Air Quality Management District (the
"AQMD"), to undertake the Malburg Project in two phases, respectively;
and
WHEREAS, the City has decided, based upon changes in the
wholesale electric power market and the additional costs required for
air quality emissions control equipment, to build the Malburg Project
in one phase consisting of the installation and operation of several
major items of equipment, including two combustion turbine generator
units (the "CTGs"), each equipped with a heat recovery steam generator
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(the "HRSG"), which provides steam to power a single steam turbine
(generating unit (the "STG"), being operated in a combined cycle mode;
land
WHEREAS, Section 25550 of the California Public Resources
Code' establishes the procedural requirements for expediting thermal
power plant facility permits with the CEC; and
WHEREAS, the City of Vernon desires the Malburg Project to be
considered under the CEC's six month "fast -track" permitting process;
and
WHEREAS, the CEC has exclusive authority and jurisdiction to
certify the sites of new power plants in excess of 50 MW; and
WHEREAS, the CEC is the lead agency to certify, permit and
authorize the construction of power plants, in conjunction with all
local, regional and state licenses and permits; and
WHEREAS, the City is required to submit in its AFC all the
information required for a Permit to Construct under the Rules and
Regulations of the AQMD (the "Rules"), to enable the AQMD to evaluate
the Malburg Project's potential air quality impacts and conduct a
Determination of Compliance (the "DOC") review of the City's AFC to
establish that the proposed facility meets the requirements of all
applicable sections of the federal Clean Air Act (the "Act"),
stationary source regulatory programs required by the Act, and all
other applicable Rules and issue a DOC letter to the CEC; and
WHEREAS, as part of the CEC's six month "fast track"
certification process, the City is required to submit the following
documents to the AQMD: an Application for a Permit to Construct and
Operate the Malburg Project, (the "Permit to Construct"), and
supplemental applications consisting of a Title V Operating Permit
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WE
Application (the "Title V Application"), a Title IV Acid Rain Permit
Application, a Modification to Reclaim Facility (Identification Number
014502) Permit Application and other applications which may be
required by the AQMD, as dictated by the City's facility design
specifications (the "AQMD Applications"); and
WHEREAS, the Rules require the City to obtain emissions
reduction credits (the "ERCs") and additional credits under the AQMD's
Reclaim Program (the "Reclaim Credits"), in order to commission,
start-up and operate the Malburg Project; and
WHEREAS, the City deems it prudent to authorize the City
Administrator to obtain all the ERCs and Reclaim Credits necessary to
permit and operate the Malburg Project; and
WHEREAS, the City deems it beneficial and advantageous to
the CEC's data adequacy determination of the City's AFC, to submit the
AQMD Applications to the AQMD prior to the submission of the AFC to
the CEC, in order to receive a timely DOC letter for the CEC; and
WHEREAS, by letter dated November 19, 2001, the City
Administrator/City Clerk, has recommended that the City Council
approve the Permit to Construct, Title V Application, Title IV Acid
Rain Application and Modification to Reclaim Facility Permit
Application, and authorize their submittal to the AQMD.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF VERNON AS FOLLOWS:
SECTION 1: The City Council of the City of Vernon hereby
finds and determines that the recitals contained hereinabove are true
and correct.
SECTION 2: The City Council of the City of Vernon hereby
approves and authorizes the filing of an Application for a Permit to
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1 Construct and operate the Malburg Project with the AQMD.
2 SECTION 3: The City Council of the City of Vernon hereby
3 approves and authorizes the filing of the supplemental applications
4 consisting of the Title V Application (City of Vernon Environmental
5 Protection Agency, "EPA," ID No. 000031305), Title IV Acid Rain
6 Permit, the Modification to Reclaim Facility (Facility Identification
7 Number 014502) Permit, and any other necessary applications (the
8 "Supplemental Applications"), at the City Administrator's direction
9 and required by the AQMD licensing process for the Malburg Project.
10 SECTION 4: The City Council of the City of Vernon hereby
11 authorizes the City Administrator, or his authorized designee, to
12 execute said Permit to Construct and the Supplemental Applications
13 for, and on behalf of, the City of Vernon.
14 SECTION 5: The City Administrator, or his authorized
15 designee, is hereby authorized to obtain, purchase and secure all the
16 ERCs and Reclaim Credits that are necessary to permit, commission,
17 start-up and operate the Malburg Project.
18 SECTION 6: The City Administrator, or his authorized
19 designee, is hereby authorized and empowered to undertake any acts and
20 execute any documents necessary to secure, implement and carry out the
21 purposes of this Resolution, the Permit to Construct and the
22 Supplemental Applications.
23 SECTION 7: The City Administrator, or his authorized
24 designee, is hereby authorized to make whatever changes, upon advice
25 of counsel, to the Permit to Construct and the Supplemental
26 Applications and all related documents that become necessary to
27 implement and carry out the purposes of this Resolution.
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1 SECTION 8: The City Council of the City of Vernon hereby
2 directs the City Clerk, or his designee, to send the Permit to
3 Construct, the Supplemental Applications and a copy of the AFC and a
4 permit processing fee not to exceed Four Thousand Dollars and No Cents
5 ($4, 000.00) to:
6 South Coast Air Quality Management District
Attn. John T. Yee, Senior Air Quality Engineer
7 21865 East Copley Drive
8 Diamond Bar, CA 91765-4182
9 SECTION 9: The City Clerk of the City of Vernon shall
10 certify to the passage of this resolution, and thereupon and
11 thereafter the same shall be in full force and effect.
12 APPROVED AND ADOPTED this 28th day of November, 2001.
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15 EONIS C. MAL91JRG, Major
16 ATTEST:
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19 BRUCE V. MALKENHORST, City Clerk
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1 STATE OF CALIFORNIA )
2 ) ss
COUNTY OF LOS ANGELES )
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4 I, BRUCE V. MALKENHORST, City Clerk of the City of Vernon, do
5 hereby certify that the foregoing Resolution, being Resolution No.
6 7876, was duly adopted by the City Council of the City of Vernon at an
7 adjourned regular meeting of the City Council duly held on Wednesday,
8 November 28, 2001, and thereafter was duly signed by the Mayor of the
9 City of Vernon.
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BRUCE V. MALKENHORST, City Clerk
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CITY COUNCIL
LEONIS C. MALBURG
Mayor
THOMAS A. YBARRA
Mayor Pro-Tem
WM. `BILL" DAVIS
Councilman
H. "LARRY" GONZALES
Councilman
W. MICHAEL MCCORMICK
Councilman
BRUCE V. MALKENHORST
City Administrator / City Clerk
FAX (323) 826-1438
City Council
City of Vernon
Honorable Members:
EDUARDO OLIVO
City Attorney
FAX: (562) 927-8722
KEVIN WILSON
Director of Community Services & Water
FAX: (323) 826-1435
CITY HALL
4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058
TELEPHONE (323) 583-8811
November 19, 2001
c�
KENNETH J. DeDARIO
Director of Municipal Utilities
FAX: (323) 826-1425
STEVEN E. PARKER
Fire Chief
FAX: (323) 826-1407
BRUCE W. OLSON
Police Chief
FAX:(323)826-1481
On August 1, 2001, this legislative body approved and authorized the
filing of various documents with the South Coast Air Quality
Management District (AQMD) regarding the Malburg Generating Station.
After further review by staff and the City Attorney, it is hereby
recommended that Resolution No. 7813 adopted August 1, 2001 be amended
to approve the filing of Permit to Construct, Title V applications and
related documents with the AQMD under the six (6) month fast track
permitting process. This amendment will also allow the City
Administrator to acquire the needed emissions reduction credits for
the Malburg Generating Project.
Very truly yours,
Bruce V. Malkenhorst
City Administrator/City Clerk
. r
CITY COUNCIL
LEONIS C. MALBURG
Mayor
THOMAS A. YBARRA
Mayor Pro -Tern
WM. 'BILL" DAVIS
Councilman
H. "LARRY" GONZALES
Councilman
W. MICHAEL MCCORMICK
Councilman
BRUCE V. MALKENHORST
City Administrator / City Clerk
FAX (323) 581-7924
CITY HALL
4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058
TELEPHONE (323) 583-8811
November 20, 2001
Mr. Bruce V. Malkenhorst
City Administrator
City Of Vernon
4305 Santa Fe Avenue
Vernon, California 90058
DUARDO OLIVO
City Attorney
FAX: (562) 927-8722
KEVIN WILSON
Director of Community Services & Water
FAX: (323) 588-2761
KENNETH J. DeDARIO
Director of Municipal Utilities
FAX: (323) 583-1983
STEVEN E. PARKER
Fire Chief
FAX: (323) 581-1385
BRUCE W. OLSON
Police Chief
FAX: (323) 583-5236
Re: Revised Request For Resolutions Of The City Council To
Approve The City's Applications To The California Energy
Commission And The South Coast Air Quality Management
District To Construct The Malburg Generating Station
Dear Bruce:
You have previously authorized submitting resolutions to the
City Council for the November 28, 2001 meeting to approve filing
permit applications with the California Energy Commission and
the Air Quality Management District ("AQMD").
I request that the California Energy Commission resolution be
held back until the City Council meeting of December 5, 2001.
The City's air quality consultant, Parson's Engineering, will
revise air emissions data from revised figures to be submitted
by Alstom Power. This delay is necessary in order to minimize
the required amount of air emissions credits the City must
purchase to commission, start up and operate the power plant in
the combined cycle mode.
I further request that you consider submitting the attached
revised resolution concerning the filing of the AQMD permit
Mr. Bruce V. Malkenhorst
November 20, 2001
Page 2
application for the November 28, 2001 City Council meeting.
This resolution additionally authorizes you to acquire the
needed emissions reduction credits ("ERCs") for the Malburg
Project, either directly from the AQMD's priority reserve or
from outside vendors, to comply with the AQMD air quality
requirements. There are many price competitive offers for ERCs
in the market today, and it is in the best interests of the City
to empower you to act upon these opportunities.
The City will need these ERCs no later than June, 2002, in order
to begin construction of the plant.
I look forward to discussing this matter with you at your
earliest convenience.
Sincerely,
2: V-11�
Eric Fresch
Legal Counsel
EF: j 1
Enclosure
cc: Eddie Olivo
Ken DeDario
Ramon Abueg
Jorge Somoano
Sharon Johnson
Chuck Montoya
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RESOLUTION NO. 7876
11/20/01 3:53 PM
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON AMENDING RESOLUTION NO. 7813, WHICH APPROVED
AND AUTHORIZED THE FILING OF PERMIT TO CONSTRUCT
AND TITLE V APPLICATIONS AND RELATED DOCUMENTS WITH
THE SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT
REGARDING THE MALBURG GENERATING STATION AND
AUTHORIZED THE CITY TO DO ALL OTHER ACTIONS DEEMED
NECESSARY OR ADVISABLE CONCERNING THE APPLICATION
PROCESS
WHEREAS, the City of Vernon is in the process of developing a
120 MW Combined Cycle Power Plant officially named the Malburg
Generating Station (the "Malburg Project") for the purpose of
installing additional generating capacity that will yield an efficient,
cost-effective, and reliable source of electric generation to the City
of Vernon; and
WHEREAS, on August 1, 2001, the City Council of the City of
Vernon adopted Resolution Nos. 7812 and 7813, which approved the filing
of an Application for Certification .(the "AFC") with the California
Energy Commission (the "CEC") and a Permit to Construct and Title V
Application with the South Coast Air Quality Management District (the
"AQMD"), to undertake the Malburg Project in two phases, respectively;
and
WHEREAS, the City has decided, based upon changes in the
wholesale electric power market and the additional costs required for
air quality emissions control equipment, to build the Malburg Project
in one phase consisting of the installation and operation of several
major items of equipment, including two combustion turbine generator
units (the "CTGs"), each equipped with a heat recovery steam generator
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MM
ME
(the "HRSG"), which provides steam to power a single steam turbine
(generating unit (the "STG"), being operated in a combined cycle mode;
Iand
WHEREAS, Section 25550 of the California Public Resources
Code establishes the procedural requirements for expediting thermal
power plant facility permits with the CEC; and
WHEREAS, the City of Vernon desires the Malburg Project to be
considered under the CEC's six month "fast -track" permitting process;
and
WHEREAS, the CEC has exclusive authority and jurisdiction to
certify the sites of new power plants in excess of 50 MW; and
WHEREAS, the CEC is the lead agency to certify, permit and
authorize the construction of power plants, in conjunction with all
local, regional and state licenses and permits; and
WHEREAS, the City is required to submit in its AFC all the
information required for a Permit to Construct under the Rules and
Regulations of the AQMD (the "Rules"), to enable the AQMD to evaluate
the Malburg Project's potential air quality impacts and conduct a
Determination of Compliance (the "DOC") review of the City's AFC to
establish that the proposed facility meets the requirements of all
applicable sections of the federal Clean Air Act (the "ACT"),
stationary source regulatory programs required by the Act, and all
other applicable Rules and issue a DOC letter to the CEC; and
WHEREAS, as part of the CEC's six month "fast track"
certification process, the City is required to submit the following
documents to the AQMD: an Application for a Permit to Construct and
Operate the Malburg Project, (the "Permit to Construct"), and
supplemental applications consisting of a Title V Operating Permit
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1 Application (the "Title V Application"), a Title IV Acid Rain Permit
2 Application, a Modification to Reclaim Facility (Identification Number
3 014502) Permit Application and other applications which may be
4 required by the AQMD, as dictated by the City's facility design
5 specifications (the "AQMD Applications"); and
6 WHEREAS, the City deems it beneficial and advantageous to
7 the CEC's data adequacy determination of the City's AFC, to submit the
8 AQMD Applications to the AQMD prior to the submission of the AFC to
9 the CEC, in order to receive a timely DOC letter for the CEC; and
10 WHEREAS, by letter dated November 19, 2001, the City
11 Administrator/City Clerk, has recommended that the City Council
12 approve the Permit to Construct, Title V Application, Title IV Acid
13 Rain Application and Modification to Reclaim Facility Permit
14 Application, and authorize their submittal to the AQMD.
15 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
16 CITY OF VERNON AS FOLLOWS:
17 SECTION 1: The City Council of the City of Vernon hereby
18 finds and determines that the recitals contained hereinabove are true
19 and correct.
20 SECTION 2: The City Council of the City of Vernon hereby
21 approves and authorizes the filing of an Application for a Permit to
22 Construct and operate the Malburg Project with the AQMD, a copy of
23 which has been presented to the City Council concurrently with this
24 Resolution, and the City Council hereby orders said Permit to
25 Construct to be received and filed by the City Clerk.
26 SECTION 3: The City Council of the City of Vernon hereby
27 approves and authorizes the filing of the supplemental applications
28 consisting of the Title V Application (City of Vernon Environmental
1 Protection Agency, "EPA," ID No. 000031305), Title IV Acid Rain
2 Permit, the Modification to Reclaim Facility (Facility Identification
3 Number 014502) Permit, and any other necessary applications (the
4 "Supplemental Applications"), at the City Administrator's direction
5 and required by the AQMD licensing process for the Malburg Project.
6 SECTION 4: The City Council of the City of Vernon hereby
7 authorizes the City Administrator, or his authorized designee, to
8 execute said Permit to Construct and the Supplemental Applications
9 for, and on behalf of, the City of Vernon.
10 SECTION 5: The City Administrator, or his authorized
11 designee, is hereby authorized and empowered to undertake any acts and
12 execute any documents necessary to secure, implement and carry out the
13 purposes of this Resolution, the Permit to Construct and the
14 Supplemental Applications.
15 SECTION 6: The City Administrator, or his authorized
16 designee, is hereby authorized to make whatever changes, upon advice
17 of counsel, to the Permit to Construct and the Supplemental
18 Applications and all related documents that become necessary to
19 implement and carry out the purposes of this Resolution.
20 SECTION 7: The City Council of the City of Vernon hereby
21 directs the City Clerk, or his designee, to send the Permit to
22 Construct, the Supplemental Applications and a copy of the AFC and a
23 permit processing fee not to exceed Three Thousand Dollars and No
24 Cents ($3,000.00) to:
25 South Coast Air Quality Management District
Attn. John T. Yee, Senior Air Quality Engineer
26 21865 East Copley Drive
27 Diamond Bar, CA 91765-4182
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SECTION 8: The City Clerk of the City of Vernon shall
certify to the passage of this resolution, and thereupon and
thereafter the same shall be in full force and effect.
APPROVED AND ADOPTED this 28th day of November, 2001.
ATTEST:
BRUCE V. MALKENHORST, City Clerk
LEONIS C. MALBURG, Mayor
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STATE OF CALIFORNIA )
ss
COUNTY OF LOS ANGELES )
I, BRUCE V. MALKENHORST, City Clerk of the City of Vernon, do
hereby certify that the foregoing Resolution, being Resolution No.
7876, was duly adopted by the City Council of the City of Vernon at an
adjourned regular meeting of the City Council duly held on Wednesday,
November 28, 2001, and thereafter was duly signed by the Mayor of the
City of Vernon.
(SEAL)
BRUCE V. MALKENHORST, City Clerk
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3
CITY COUNCIL
t
LEONIS C. MALBURG
Mayor
THOMAS A. YBARRA
Mayor Pro—Tem
WM. 'BILL" DAVIS
Councilman
H. "LARRY" GONZALES
Councilman
W. MICHAEL MCCORMICK
Councilman
BRUCE V. MALKENHORST
City Administrator / City Clerk
FAX (323) 826-1438
December 5, 2001
Ms. Sharon Johnson
Deputy City Treasurer
City of Vernon
4305 Santa Fe Avenue
Vernon, CA 90058
CITY HALL
4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058
TELEPHONE (323) 583-8811
Re: Malburg Generating Station Project; Check for Permit Fees
Dear Sharon:
EDUARDO OLIVO
City Attorney
FAX: (562) 927-8722
KEVIN WILSON
Director of Community Services & Water
FAX: (323) 826-1435
KENNETH J. DeDARIO
Director of Municipal Utilities
FAX: (323) 826-1425
STEVEN E. PARKER
Fire Chief
FAX: (323) 826-1407
BRUCE W. OLSON
Police Chief
FAX: (323)826-1481
Please draw a check in the amount of Two Thousand One Hundred Ohe and 39/100
($2,101.39), made payable to the South Coast Air Quality Management District (AQMD) for the
fees due for the filing of the Permit to Construct and Operate Application to the AQMD. This
represents the balance due for total fees of $15,490.03, less the credit applied for moneys
tendered from a previous submission, as per the attached documents.
These fees have been authorized by the City Council pursuant to
check is needed by the end of today. Please have the check deli
Call me if you have any questions.
Sincerely,
Eric Fresch
EF:ah
Attachments
c: Bruce V. Malkenhorst
Kenneth J. DeDario
Ramon Z. Abueg
lution No. 7876. The
to Ramon Abueg.
Page 1 of d
Abueg, Ramon
From: Chris Perri [CPerri@agmd.gov]
Sent: Thursday, August 30, 2001 1:18 PM
To: 'rabueg@ci.vernon.ca.us'
Cc: 'beller@energy.state.ca.us'; John Yee; Tran Vo
Ramon:
RE: A/N's 389635, 389636, 389637, 389638, 389639, 389640, 389641, 389642, 389643, 389644
We received your letter of August 22, 2001 stating that the City will be amending or re -filing its AFC with the
California Energy Commission for the proposed Malburg Generating Station. We understand that the project
description has changed in that the proposal for simple cycle operation in the summer of'02 has been eliminated,
and instead the turbines will be constructed and operated as combined cycle units only, to begin operation in
summer '03.
We further understand that the revised application package, including air quality information, pertaining to the
combined cycle operation will not be available until mid -October of this year.
In light of these facts, the AQMD will cancel the City's pending applications submitted to us on August 2, 2001 for
the simple cycle turbines. The City will need to refile applications for the combined cycle units, the associated
control equipment, and the ammonia tank when the necessary permitting information becomes available.
The application fees submitted with the initial filing will be refunded.
If you have any comments or concerns about this issue, please contact me at (909) 396-2696. Thank you.
Chris Perri
Air Quality Engineer
South Coast AQMD
12/4/2001
i
Application for Permit to Construct
Malburg Generating Station Project Fees
•
SECTION 6
FEES
A gas turbine less than or equal to 50 MW is listed as Schedule D in Rule 301
Permit Fees. An SCR/Catalyst system is Schedule C. The Emergency IC Engines are
Schedule B.
Equipment/Process
Schedule
MW Gas Turbine <— 50 MW
D
SCR NOx and CO Catalyst Control System
C
Emergency IC Engines > 500 HP
B
Aqueous Ammonia Storage Tank
C
Item
Fee,1" Equip
Fee for each
additional identical
Equipment
Total Fee
Schedule D — 2
$3,731.89
$1,865.95
$5,597.84
Schedule C — 2
$2,101.39
$1,050.70
$3,152.09
Schedule B - 5
$662.44
331.22
$1,987.32
Schedule C —1
$2,101.39
$2,101.30
RECLAIM Permit Fee
550.00
Total
$13,388.64
6-1
K:\Reports\R1379 (Vemon)\Permit\SEC6.D0C 8/1/01