Aug. 17, 2001
Way Cleared for New Generating Capacity
An agreement reached today clears the way for a refurbished electric
power plant to come online in Huntington Beach, including some units with
state-of-the-art pollution controls.
The South Coast Air Quality Management District facilitated negotiation of
the agreement between the City of Huntington Beach and AES Huntington Beach LLC,
both of which had contested the terms of an air pollution control permit for the
company’s Huntington Beach plant.
"We’ve been able to carefully balance the state’s need for a
reliable supply of electricity with the need to further control air
pollution," said Orange County Supervisor James Silva, who represents
Orange County on SCAQMD’s Governing Board. "It’s a big win for
Huntington Beach residents and we’re pleased to have facilitated the
agreement."
The agreement adds new air pollution control requirements sought by the city
and its residents and soon will allow AES to open its refurbished number three
and four generating units in Huntington Beach. Combined, the units will supply
450 megawatts of new electrical generating capacity to the grid.
In a related action, SCAQMD’s Executive Officer Barry Wallerstein issued an
executive order that relieves AES of an earlier permit condition that required
sale of at least half the electricity from the new units to the state in order
to obtain air pollution offset credits needed to begin operation. Since SCAQMD
imposed that condition in a permit issued to AES on May 30, the state is no
longer entering long-term electricity purchase contracts.
However, AES will make it a priority to offer long-term electricity contracts
to local customers and the City of Huntington Beach.
AES also agreed to operate an old turbine used to supply power when
electricity demand peaks only when the Independent System Operator has declared
a stage 3 electricity supply emergency and called on the unit to run. By Oct. 1,
2002, AES either will install a new peaking turbine, add additional pollution
controls, or permanently remove it from service.
The peaking turbine has been the source of smoke complaints by residents who
live near the plant. In a stage 3 emergency, the excess supply of electricity in
the grid falls to less than 1.5% of system capacity.
The agreement effectively settles appeals of the air pollution control permit
to SCAQMD’s Hearing Board by both AES Corp. and the City of Huntington Beach.
"We’ve been able to address the community’s air quality concerns,
while guarding against rolling blackouts," said Newport Beach City
Councilwoman Norma Glover, who represents the cities of Orange County on SCAQMD’s
Governing Board. "Blackouts would degrade air quality as hundreds of dirty
diesel backup generators come on to keep essential public services open."
Diesel backup generators commonly used at hospitals, police and fire
stations, and water pumping plants emit up to 600 times more pollution per
kilowatt hour of electricity produced than a central generating plant, such as
AES Huntington Beach.
Under the agreement, AES also will:
- Face SCAQMD enforcement of air quality-related license conditions imposed
by the California Energy Commission, as well as enforcement of SCAQMD permit
conditions;
- Perform additional tests of emissions from the refurbished boilers four
years after they begin operation;
- Install continuous emissions monitors as soon as possible;
- Certify emissions of nitrogen oxides to SCAQMD each quarter; and
- Provide annual reports on nitrogen oxide emissions to SCAQMD, along with
projections for the next twelve months.
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