COMMITTEE PROPOSED DECISION

	CALIFORNIA ENERGY COMMISSION	COMMITTEE PROPOSED DECISION
		MODESTO IRRIGATION DISTRICT WOODLAND 2 PROJECT APPLICATION FOR SMALL POWER PLANT EXEMPTION DOCKET NO. 01-SPPE-1

The California Energy Commission is the State agency granted exclusive authority to review and license proposals to construct and operate large electric power plants, including the authority to exempt proposals under 100 MW from our certification review. Proposals granted an exemption are subject to local permitting processes. On May 4, 2001, the Modesto Irrigation District (MID) filed a proposal to construct an 80 MW power plant project in Modesto, California. All documents available at www.energy.ca.gov/sitingcases/modesto

Project Description: Generating Equipment:	The proposed Woodland Generating Station II project is an 80 megawatt (MW) facility. It would include a natural gas-fired, cogenerator with a combustion turbine generator (CTG) and a heat-recovery steam generator (HRSG), which would supply one steam turbine generator (STG). Maximum stack height is 110 feet. The project would occupy approximately 2.5 acres and would be located adjacent to an existing MID cogeneration power plant. The existing plant and project site are located at 920 Woodland Avenue Modesto, California. The project is surrounded by other industrial uses and vacant property.
Transmission Lines:	Approximately 1.2 miles of 69 kV sub-transmission line improvements (35 new, taller poles replacing existing poles) will be required starting at the existing facility and ending to the southeast at MID's Enslen Substation. The transmission line leaves the existing facility and proceeds south down the west side of the Union Pacific railroad tracks to Tully Road, then north to Stoddard Avenue, then east to Terminal Avenue, and finally northeast to the Enslen Substation.
Gas Pipeline:	PG&E would supply the natural gas fuel for the project. Two segments of new underground gas pipeline need to be constructed near the City of Ripon to provide the capacity needed for the project. Approximately 3.25 miles of 16-inch pipeline will be constructed along West Ripon Road, between Austin Road and Jack Tone Road. Thereafter, 12-inch pipeline will be constructed along Jack Tone Road, Doak Boulevard, and South Vera Avenue. In addition, an additional 16-inch segment will parallel PG&E's Line 108 through agricultural fields west of Ripon. The new pipelines will meet the California Public Utilities Commission's standards for safety and operation.
Water Supply:	The project will use potable water from the Modesto Regional Water Treatment Plant at MID's Reservoir for cooling and process water. A new 10-inich water pipeline will be laid beneath the roadway from an existing trunk line at Kansas Avenue and 9th Street for 0.9 miles along Kansas Avenue to Graphics Avenue and into the facility. The estimated water use by the project ranges from 1/3 million gallons-per-day (winter) to 1 million gallons-per-day (summer). This represents less than 2 percent of the estimated 60 million gallons-per-day City of Modesto surface water supplies after expansion of its treatment facility in 2005. According to Modesto officials, there are ample opportunities to further develop conjunctive or recycled water uses in the future, should water supply become a limiting concern.
Air Pollution Controls:	The project would be equipped with Best Available Control Technology (BACT) in order to control pollutant emissions. Emission control would be provided by low-NOx combustors with water injection and Selective Catalytic Reduction (SCR) installed in the HRSG. The SCR system consists of the reduction catalyst and an aqueous ammonia injection system. An oxidizing catalyst will also be employed.
Miscellaneous:	The project would be equipped with Best Available Control Technology (BACT) in order to control pollutant emissions. Emission control would be provided by low-NOx combustors with water injection and Selective Catalytic Reduction (SCR) installed in the HRSG. The SCR system consists of the reduction catalyst and an aqueous ammonia injection system. An oxidizing catalyst will also be employed.
Discussion:	No areas have been identified in the Environmental Checklist portion of the Revised Initial Study as having the potential for significant environmental impacts. Highlights of the environmental analysis and mitigation follow: To mitigate potential air quality impacts, the project will utilize Best Available Control Technology and obtain emission offsets. To mitigate potential impacts to water resources, the MID will periodically review the availability of recycled water and convert to recycled water in the future when feasible. See Condition: Water-5 (Attached).
Findings:	Based upon the entirety of the uncontroverted record in this proceeding, including the Small Power Plant Exemption Application, Applicant's data responses, the Energy Commission Staff's Draft and Revised Initial Study and Negative Declaration, and comments by agencies and others, the Committee makes the following findings: With the mitigation measures and Conditions of Exemption of the Revised Initial Study, incorporated by reference, and compliance therewith verified by a reporting and monitoring program, the project will cause no unmitigated significant environmental impacts or adverse impact to energy resources. The project is eligible for the Small Power Plant Exemption under Public Resources Code section 25541 (amended 1999). The Negative Declaration and Revised Initial Study were prepared in compliance with the California Environmental Quality Act and all applicable State and Commission Guidelines.

Dated: August 14, 2001	ENERGY RESOURCES CONSERVATION ANDDEVELOPMENT COMMISSION
MICHAL C. MOORE Commissioner and Presiding Member MID SPPE Committee	ARTHUR H. ROSENFELD Commissioner and Associate Member MID SPPE Committee

Added Condition of Exemption:

Water 5: California Water Code Section 13550 states that the use of potable water for industrial uses (power plant cooling/process make up water) is considered an unreasonable use of potable water if recycled water of adequate quality is available. Potable water is to be used only when other, non-potable sources would be environmentally undesirable or economically unsound. The use of potable water shall be discontinued when recycled water is available. The general intent of this condition is to have WGS2 power plant owner find and use recycled water as soon as feasible for the operation of this power plant.

Every seven years, the project owner shall provide a written assessment of Modesto Regional Water Treatment Plant (MRWTP) water availability and the impact of the WGS2 power plant project water use on that water source. The seven year assessment will also look at recycled water availability and the feasibility of using recycled water for the WGS2 power plant project. When feasible, recycled water shall be used for the power plant.

Verification: Commencing seven years after certification, and every seven years thereafter, as long as the power plant is operating and not using recycled water, the project owner shall provide a written assessment indicating fresh water and recycled water availability/status and the feasibility of using recycled water in the power plant. The CPM will determine the adequacy of the assessment. Ninety days prior to the time the project owner plans to actually use recycled water, the project owner shall submit a report to the RWQCB (as needed) and the CPM identifying the source, quality, and volume of recycled water to be used, and the start date of recycled water use.