[California Energy Commission Letterhead]


BEFORE THE ENERGY RESOURCES
CONSERVATION AND DEVELOPMENT COMMISSION
OF THE STATE OF CALIFORNIA



                                      )     
 APPLICATION FOR CERTIFICATION        )
 OF DUKE ENERGY FOR THE               )    DOCKET NO. 00-AFC-12
 MORRO BAY POWER PLANT PROJECT        )    
                                      )      
______________________________________)       
       

COMMISSION ADOPTION ORDER

This Commission Order adopts the Commission Decision on the Application for Certification of the Duke Energy Morro Bay Power Plant Project. It incorporates the Third Revised Presiding Member's Proposed Decision (3RPMPD) in the above-captioned matter, the Committee Amendments issued July 13, 2004 and the Chairman's Errata offered at the August 2, 2004 hearing. The Commission Decision is based upon the evidentiary record of these proceedings (Docket No. 00-AFC-12) and considers the comments received at the August 2, 2004, business meeting. The text of the attached Commission Decision contains a summary of the proceedings, the evidence presented, and the rationale for the findings reached and Conditions imposed.

This ORDER adopts by reference the text, Conditions of Certification, Compliance Verifications, and Appendices contained in the Commission Decision. It also adopts specific requirements contained in the Commission Decision which ensure that the proposed facility will be designed, sited, and operated in a manner to protect environmental quality, to assure public health and safety, and to operate in a safe and reliable manner.

FINDINGS

The Commission hereby adopts the following findings in addition to those contained in the accompanying text:

  1. The Morro Bay Power Plant Project, sponsored by Duke Energy Morro Bay LLC, will provide local economic benefits and electricity reliability to the San Luis Obispo County area.


  2. The Conditions of Certification contained in the accompanying text, if implemented by the project owner, ensure that the project will be designed, sited, and operated in conformity with applicable local, regional, state, and federal laws, ordinances, regulations, and standards, including applicable public health and safety standards, and air and water quality standards.


  3. Implementation of the Conditions of Certification contained in the accompanying text will ensure protection of environmental quality and assure reasonably safe and reliable operation of the facility. The Conditions of Certification also assure that the project will neither result in, nor contribute substantially to, any significant direct, indirect, or cumulative adverse environmental impacts.


  4. Existing governmental land use restrictions are sufficient to adequately control population density in the area surrounding the facility and may be reasonably expected to ensure public health and safety.


  5. The evidence of record establishes that no feasible alternatives to the project, as described during these proceedings, exist which would reduce or eliminate any significant environmental impacts of the mitigated project.


  6. The evidence of record establishes that an environmental justice screening analysis was conducted and that the project, as mitigated, will not have a disproportionate impact on low-income or minority populations.


  7. The evidence of record does not establish the existence of any environmentally superior alternative site.


  8. The Decision contains a discussion of the public benefits of the project as required by Public Resources Code section 25523(h).


  9. The Decision contains measures to ensure that the planned, temporary, or unexpected closure of the project will occur in conformance with applicable laws, ordinances, regulations, and standards.


  10. The proceedings leading to this Decision have been conducted in conformity with the applicable provisions of Commission regulations governing the consideration of an Application for Certification and thereby meet the requirements of Public Resources Code sections 21000 et seq. and 25500 et seq.


ORDER

Therefore, the Commission ORDERS the following:

  1. The Application for Certification of the Morro Bay Power Plant Project as described in this Decision is hereby approved and a certificate to construct and operate the project is granted upon filing of the Decision with the Commission's Docket Unit.


  2. The approval of the Application for Certification is subject to the timely performance of the Conditions of Certification and Compliance Verifications enumerated in the accompanying text and Appendices. The Conditions and Compliance Verifications are integrated with this Decision and are not severable therefrom. While the project owner may delegate the performance of a Condition or Verification, the duty to ensure adequate performance of a Condition or Verification may not be delegated.


  3. The Commission's analysis of and findings regarding the effects of the Morro Bay Power Plant Project on the environment are final on August 2, 2004.


  4. For all other purposes this Decision is adopted, issued, effective, and final on the date it is filed with the Commission's Docket Unit.


  5. The Commission directs the hearing officer to file this Decision with the Commission's Docket Unit fifteen days (or the next business day) after the Project is granted a National Pollution Discharge Elimination System (NPDES) permit by the Central Coastal Regional Water Quality Control Board.


  6. Reconsideration of this Decision is governed by Public Resources Code, section 25530.


  7. Judicial review of this Decision is governed by Public Resources Code, section 25531.


  8. The Commission hereby adopts the Conditions of Certification, Compliance Verifications, and associated dispute resolution procedures as part of this Decision in order to implement the compliance monitoring program required by Public Resources Code section 25532. Upon the docketing of this Decision pursuant to paragraphs 4 and 5 above, all conditions in this Decision take effect immediately and apply to all construction and site preparation activities including, but not limited to, ground disturbance, site preparation, and permanent structure construction.


  9. Immediately after docketing of this Decision, the Executive Director of the Commission shall transmit a copy of this Decision and appropriate accompanying documents as provided by Public Resources Code section 25537 and California Code of Regulations, title 20, section 1768.


  10. Dated: August 2, 2004, at Sacramento, California.





    WILLIAM J. KEESE
    Chairman


    JAMES D. BOYD
    Commissioner


    ARTHUR H. ROSENFELD
    Commissioner


    JOHN L. GEESMAN
    Commissioner


    JACKLYNE PFANNENSTIEL
    Commissioner









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