HomeMy WebLinkAbout2010-18 NCPA Lodi Energy ProjectRESOLUTION No. 2010- 18
WHEREAS, Ukiah has elected to participate in the 280 MW Lodi Energy Center (LEC) Project being
developed by NCPA, and;
WHEREAS, Ukiah's Generation Entitlement Share in the Project is 1.7857% or approximately 5.00
MW, and;
WHEREAS, the California Energy Commission (CEC) has approved the project Application for
Certification (AFC) on April 21, 2010 and such approval by the CEC includes various environmental
analysis, findings and mitigation measures under the terms of the Warren-Alquist Act (Public Resources
Code section 25500 et seq.). The GEC's analysis, findings, and mitigation measures, constitute the
equivalent of an environmental impact report for purposes of the California Environmental Quality Act
(CEQA, Public Resources Code section 21000 et seq.) as a "certified regulatory program" pursuant to
CEQA Guidelines section 152510). The CEC has acted as the "lead agency" for this Project for purposes of
environmental analysis. As a consequence, rather than conducting its own independent environmental
analysis under CEQA, Ukiah is acting as a "responsible agency" under CEQA and is thus responsible for
considering the analysis, findings and mitigation measures of the CEC and reaching Ukiah's independent
conclusions on whether and how to approve the LEC Project. (CEQA Guidelines section 15096.), and
WHEREAS, Ukiah acting as a responsible agency has independently considered the analysis,
findings, and mitigation measures prepared by CEC as reflected in Exhibit A attached to this Resolution,
and
WHEREAS, NCPA has prepared a Power Sales Agreement (PSA) which upon execution by all the
LEC Project Participants and NCPA will permit financing, construction and operation of the Project, and;
WHEREAS, the Ukiah City Council understands that if one or more other Project Participants reduce
or want to increase their Generation Entitlement Share (GES), Ukiah may adjust its GES downward to a
minimum of 1.4285% in order to effectuate Project financing and construction, and;
WHEREAS, the City of Ukiah is desirous of NCPA managing and operating the LEC Project on its
behalf, and on behalf of other Project participants, and NCPA has prepared a Project Management and
Operation Agreement (PMOA) which upon execution by LEC Project Participants and NCPA provides for
Project management and operation by NCPA, and;
WHEREAS, the City of Ukiah acknowledges that the PSA forms a Project Participant Committee
(PPC) which will provide Project governance and to establish, and from time to time revise, directives
related to Project capital expenditures, budgets, operations and maintenance, among other items, and that
the Ukiah City Manager is to designate a Ukiah's representative and alternate representative on the PPC,
NOW, THEREFORE BE IT RESOLVED, by the Ukiah Council as follows:
1. That acting in its capacity as a responsible agency for purposes of the California Environmental
Quality Act (CEQA), Ukiah hereby makes the findings as provided in Exhibit A of this resolution. The Ukiah
City Manager or her designee is hereby directed to record a Notice of Determination in the County of
Mendocino and in the County of San Joaquin reflecting these findings.
2. That it hereby approves the Power Sales Agreement and the Project Management and Operation
Agreement, and authorizes its City Manager to execute these two agreements on behalf of Ukiah. It
additionally authorizes the City Manager to reduce Ukiah's Generation Entitlement Share as reflected in the
PSA and PMOA downward to a minimum of 1.4285% in the event one or more Project Participants desire to
increase their GES; and
3. That it designates the Ukiah City Manager as Ukiah's official responsible for appointing and from
time to time replacing, Ukiah's representative and alternate representative on the PPC, and designating
such representatives to NCPA.
PASSED AND ADOPTED by the Ukiah City Council on May 5, 2010, by the following roll call vote:
AYES: Councilmembers Landis, Crane, Rodin, Baldwin, and Mayor Thomas
NOES: None
ABSTAIN: None
ABSENT: None
Benj Th mas, Mayor
ATTEST:
c
49Anne Currie, City Clerk
Page 2 of 4
EXHIBIT A
ENVIRONMENTAL FINDINGS
The City of Ukiah makes the following findings pursuant to the California Environmental Quality Act
("CEQA"), Public Resources Code section 21000 et seq., and the Guidelines implementing CEQA ("CEQA
Guidelines") Code of Regulations, title 14, section 15000 et seq.
1. The California Energy Commission ("CEC") is the lead agency for this Project under CEQA.
2. The CEC is a certified regulatory agency pursuant to CEQA section 21080.5 and CEQA Guidelines
sections 15250 -15253.
3. As a certified regulatory agency, rather than an Environmental Impact Report ("EIR"), the CEC
prepares an "EIR substitute" as the CEQA documentation for the Project.
4. The CEC's EIR substitute for this Project is the Presiding Member's Proposed Decision ("PMPD")
released on March 10, 2010 and approved by the CEC Final Commission Decision on April 21, 2010.
5. The City of Ukiah is a responsible agency for the Project under CEQA.
6. The Ukiah City Council finds that the April 21, 2010 CEC Final Commission Decision and the
CEC's process meet all of the conditions of CEQA Guidelines section 15253 that would allow Ukiah
to use and rely upon the CEC Final Commission Decision as the appropriate CEQA documentation
for Ukiah's approvals. Specifically, Ukiah finds that:
a. The CEC is the first to grant a discretionary approval for the Project.
b. The CEC provided the City of Ukiah the opportunity to consult with the CEC and to
comment during the CEC process and on the CEC Final Commission Decision.
c. The CEC Final Commission Decision considers both the significant environmental impacts of
the Project that are within the jurisdiction of the City of Ukiah, if any, and considers
alternatives to the Project.
d. The CEC exercised its powers as lead agency by considering all of the environmental impacts
of the Project and made the appropriate findings pursuant to CEQA Guidelines section 15091
for each significant impact of the Project.
7. The City of Ukiah has considered the CEC Final Commision Decsion and the environmental impacts
of the Project described in the CEC Final Commission Dcsion, pursuant to CEQA Guidelines 15096
subdivision (f).
The CEC Final Commission Decision concludes that, as conditioned, the Project will not have any
significant adverse effects on the environment. Thus, pursuant to CEQA Guidelines 15096
subdivision (g), Ukiah finds that there are no alternatives or mitigation measures within the powers of
the City of Ukiah to adopt that would substantially reduce or avoid any significant environmental
impact of the Project.
Page 3 of 4
9. Pursuant to CEQA Guidelines 15096 subdivision (h), Ukiah is required to make findings pursuant to
CEQA Guidelines section 15091 for each significant impact of the Project. Ukiah has considered the
CEC Final Commission Decision, the description of the Project's environmental impacts contained
therein, the findings of fact and conclusions of law contained therein, and the conditions of
certification contained therein, and, exercising its independent judgment, the Ukiah City Council
finds the following:
a. For all environmental impacts of the Project, changes or alterations have been required in, or
incorporated into, the Project which will avoid or substantially lessen the significant
environmental effects as identified in the CEC Final Commission Decsion.
b. These findings are supported by substantial evidence in the record.
c. The conditions of certification imposed on the Project by the CEC are within the authority of
the CEC and will be monitored and enforced by the CEC.
10. That approval of both the Power Sales Agreement and Project Management and Operation
Agreement, providing for the financing, construction and operation of the Project has no impacts on
the environment not addressed within the prior CEC analysis.
Page 4 of 4