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                                      )     
  APPLICATION FOR SMALL POWER PLANT   )	  DOCKET NO. 07-SPPE-2
  EXEMPTION  FOR THE ORANGE GROVE     )   	
  PROJECT                             )     
  ____________________________________)

NOTICE OF PUBLIC INFORMATIONAL HEARING AND SITE VISIT

The California Energy Commission, a state agency, has exclusive jurisdiction to license new power plants that generate 50 megawatts (MW) or more. Under state law, power plants that generate up to 100 MW may be exempted from the Energy Commission's licensing process if the Energy Commission determines a project proposal qualifies for such an exemption. The Small Power Plant Exemption (SPPE) review process provides the public forum for the Energy Commission's evaluation of the project's eligibility for an exemption under Public Resources Code section 25541.

On July 18, 2007, Orange Grove Energy, L.P., (Applicant) submitted an Application for an SPPE to the California Energy Commission in connection with its proposal to construct and operate the Orange Grove Project. The project involves a 96 MW simple-cycle electric generating plant and ancillary facilities in rural north San Diego County, approximately five miles east of the city of Fallbrook and approximately two miles west of the community of Pala. Construction is planned to begin in January of 2008 and commercial operation is planned to begin in June of 2008.

PLEASE TAKE NOTICE that the Energy Commission has designated a Committee of two Commissioners to conduct proceedings on the SPPE. The Committee has scheduled a public Informational Hearing and Site Visit to discuss the proposed project with the local community on the following date:

September 24, 2007
Site Visit begins at 4:30 p.m.
Public Informational Hearing begins at 6:00 p.m.
Fallbrook High School
Community Room
2400 South Stagecoach Lane
Fallbrook, California 92028

[Wheelchair Accessible]
(Map to Location)

Prior to the Informational Hearing, members of the public are invited to join the Committee on a tour of the proposed site during daylight hours. For further details, please contact the Energy Commission's Public Adviser's Office at 916-654-4489 or 800-822-6228 or email: pao@energy.state.ca.us. In order to assure adequate transportation is available, anyone desiring to take part in the Site Visit shall contact, and so inform, the Public Adviser's Office no later than September 20, 2007.

BACKGROUND

On July 18, 2007, the Energy Commission began a review of the application for exemption for the Orange Grove Project under the provisions of Public Resources Code section 25541. During the review period, the Energy Commission will determine whether construction or operation of the proposed project will create a substantial adverse impact upon the environment or energy resources. The Informational Hearing scheduled by this Notice is sponsored by the Energy Commission to inform the public about the project and to invite public participation in the review process.

PROJECT DESCRIPTION

The proposed project is designated as a peaking facility and would consist of a 96 MW simple-cycle electric generating plant in rural north San Diego County. The site is owned by San Diego Gas and Electric (SDG&E) which has executed a lease agreement with Orange Grove Energy, L.P., to occupy the land. The property is zoned general agricultural (A72) in the County general plan which would accommodate the construction of a power plant. An inactive citrus grove currently occupies the site. Under an agreement with SDG&E, Orange Grove Energy, L.P., would be responsible for construction of the plant and the electric transmission line interconnection between the power plant and SDG&E's 69-kV bus at the Pala Substation located on a contiguous parcel to the south. Orange Grove Energy, L.P., will operate the plant and generate power for SDG&E pursuant to an agreement.

The proposed project site would occupy approximately 8.5 acres within a 202-acre property owned by SDG&E. The site is located off of Pala Del Norte Road, a private road accessed from SR-76 approximately sixteen miles east of the city of Fallbrook and approximately two miles west of the community of Pala in an unincorporated area of San Diego County. The power plant site is located approximately 3.5 miles northeast of Interstate15 on SR-76.

The proposed project would include two GE LM6000 PC SPRINT combustion turbine generators (CTG) fueled by natural gas delivered to the site via a new two-mile extension of an existing SDG&E gas line that runs parallel to Pala Road. The CTGs will be equipped with GE's Spray-Intercooled (SPRINT) power boost technology to increase output from the plant during very warm conditions. Demineralized water is injected into the compressor section of the engines, which reduces the heat of compression, resulting in increased power output. The system is coupled with an air inlet system enhanced with chilled water to cool the inlet air to the combustion turbines and maintain the desired output during hot weather conditions. Water needs for the project would be supplied by the Rainbow Municipal Water District via 1.5 miles of new underground pipelines. The proposed maximum water usage is estimated to be 117 acre feet per year.

Air emissions from the proposed facility would be controlled using Best Available Control Technology (BACT) applied to each engine's exhaust. Water injection will be used to achieve low oxides of nitrogen (NOx) levels. In addition, each CTG would be equipped with a carbon monoxide oxidation catalyst as well as an aqueous ammonia selective catalytic reduction (SCR) system that would further reduce emissions.

The engineering and environmental details of the proposed project are contained in the application for exemption. Copies of the application were provided to local public agencies that are involved in the review process. Copies of the application are also available at the following libraries: California State Library Government Publication Section; San Francisco Public Library Government Information Center; UCLA University Research Library Public Affairs Office; San Diego Public Library; Riverside Library Temecula Center Library; San Diego County Library Fallbrook Branch; San Diego County Library Valley Center Branch; San Diego County Library Branch; San Diego County Library San Marcos Branch; and the San Diego County Library Vista Branch.

PURPOSE OF THE INFORMATIONAL HEARING

The small power plant exemption process, which incorporates requirements equivalent to the Initial Study process under the California Environmental Quality Act, will examine whether the proposed project will create a substantial adverse impact upon the environment or energy resources. The review process provides a public forum allowing the Applicant, Commission staff, governmental agencies, adjacent landowners, and members of the general public to consider whether the proposal qualifies for an exemption from the Energy Commission's licensing process.

The Informational Hearing scheduled by this Notice is the first in a series of Energy Commission events where members of the community and governmental agencies will have an opportunity to obtain information and offer comments on the proposal. The Applicant will explain plans for developing the proposed site and related facilities. Energy Commission staff will explain the exemption process and its role in reviewing the application for exemption. Applicant and Staff will also discuss the schedule and possible issues that may be significant during this proceeding. The Commission's Public Adviser will provide information on how the public can participate in the review process.

PROPOSED SCHEDULES AND ISSUE IDENTIFICATION REPORT

To assist participants in understanding the project, Applicant and Staff shall each file a proposed schedule for conducting the exemption process, and Staff shall file an Issue Identification Report ("Report") summarizing any potential issues. The proposed schedules and Staff's Report shall be filed no later than 3 p.m., September 17, 2007. At the Informational Hearing, the parties shall indicate whether anticipated data responses would resolve issues of concern which may be raised in Staff's Report. Copies of these documents will be posted on the Commission's Internet web page: www.energy.ca.gov/sitingcases/orangegrove.

PUBLIC ADVISER AND PUBLIC PARTICIPATION

Members of the public may participate in all aspects of the review process in a variety of ways. The Commission's Public Adviser's Office is available to assist the public in participating in the exemption process. This office may be reached at 916-654-4489 or 800-822-6228 or email: pao@energy.state.ca.us.

INFORMATION

Technical questions concerning the project should be addressed to Felicia Miller, Staff Project Manager, at (916) 654-4489, or e-mail: fmiller@energy.state.ca.us.

Questions of a legal or procedural nature should be directed to Kenneth Celli, the Hearing Officer, at (916) 651-8893 or e-mail: kcelli@energy.state.ca.us.

Media inquiries should be directed to Claudia Chandler, Assistant Executive Director for Media and Public Communications at (916) 654-4989 or e-mail : mediaoffice@energy.state.ca.us.

If you have a disability and need assistance in order to participate at this hearing, please contact Lou Quiroz at (916) 654-5146 or e-mail at: lquiroz@energy.state.ca.us at least 5 days in advance of the hearing.

Information concerning the status of the project, as well as notices and other relevant documents, may be viewed on the Energy Commission's Internet web page at: www.energy.ca.gov/sitingcases/orangegrove<.





Date Posted: August 21, 2007, at Sacramento, California ENERGY RESOURCES CONSERVATION AND
DEVELOPMENT COMMISSION

________/signed/_______
JAMES D. BOYD
Commissioner and Presiding Member
Orange Grove SPPE Committee

________/signed/_______
ARTHUR H. ROSENFELD
Commissioner and Associate Member
Orange Grove SPPE Committee

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