STATE OF CALIFORNIA

Energy Resources
Conservation and Development Commission

In the Matter of:                   )      Docket No. 01-AFC-22
                                    )
Application for Certification       )      APPLICATION COMPLETE
for the SAN JOAQUIN VALLEY          )
CENTER POWER PLANT PROJECT          )         (DATA ADEQUATE)
in Fresno County                    )         JANUARY 9, 2002
(SJVEC)                             )
____________________________________)

NOTE: An Addendum has been issued for this Notice regarding teleconference participation

I. NOTICE OF EVIDENTIARY HEARINGS And HEARING ORDER

The Committee assigned to the aforementioned proceeding will conduct formal evidentiary hearings as follows:

TUESDAY, February 18, 2003
WEDNESDAY, February 19, 2003
THURSDAY, February 20, 2003
And
FRIDAY, February 21, 2003 (if necessary)

Beginning at 10:00 a.m.
Tuesday, February 18, and
Friday, February 21 (if necessary)

Beginning at 1 p.m.
Thursday, February 20

California Energy Commission
First Floor Hearing Room B
1516 9th Street
Sacramento, California 95814
[Wheelchair Accessible]

and

Beginning at 10:00 a.m.
Wednesday, February 19
GURU Assembly Hall
8696 Main St.
San Joaquin, California 93660

[Wheelchair Accessible]

At these hearings, the parties (Applicant, Staff, and Intervenors) will present evidence consisting of sworn testimony and exhibits on each topic area. Unless a party's written request for a change is granted, presentations will follow the agenda shown on APPENDIX A.

Parties at the Evidentiary Hearing will include Applicant, Staff, Intervenors Mr. and Mrs. Keith Freitas, and the Californians for Renewable Energy, Inc. (CARE)¹. In addition, the San Joaquin Valley Air Pollution Control District (SJVAPCD), will present witnesses on the topic of Air Quality and Public Health. (See Appendix A.)

II. BACKGROUND

On September 19, 2002, Applicant submitted a petition for removal of the SJVEC AFC from the expedited six-month process, and have the AFC processed under our 12-month process. (Cal. Code of Regs., tit. 20, §§ 2028; 25540.6.) On October 1, 2002, the Committee granted Applicant's request for removal, and thereafter, the AFC has proceeded under the 12-month process. (See e.g. Cal. Code of Regs., tit. 20, § 1747.)

On July 16, 2002, Staff released a Staff Assessment (SA) under the expedited process. On December 24, 2002, after the AFC was converted to the 12-month process, Staff released an Addendum to the SA (Addendum). The Addendum does not recommend certification at this time due solely to issues related to the topic of SJVEC's Air Quality operations impacts. Staff's analysis does conclude that the proposed project can comply with all LORS, with the exception of Air Quality, where Staff identified potential nonconformance with portions of the federal Clean Air Act.

Staff's Addendum, however, raised contested issues in the area of Air Quality both as to construction and operation impacts. In the area of construction, Staff concluded that the SJVEC's potential construction emissions will exceed state and federal standards for several months. Staff, therefore, recommends that the SJVEC be conditioned with air quality monitoring to ensure that short-term construction impacts are mitigated to levels that are less than significant. Applicant disagrees with Staff's conditions in the area of construction impacts.

SJVEC's Air Quality operations issues involve the validity of Applicant's proposed Emission Reduction Credits (ERCs) as mitigation of the proposed project's operational emissions of toxic pollutants such as ozone and particulate matter less than 10 microns in diameter (PM10). The US Environmental Protection Agency (USEPA) has found the ERCs invalid based upon the SJVAPCD's lack of progress towards completion of a valid recognizable State Implementation Plan or Air Quality Mitigation Plan. The SJVAPCD currently exceeds federal and state air quality standards for ozone and PM10, and its ozone attainment status has recently been downgraded from nonattainment to severe.

Staff agrees with the USEPA's finding that the ERCs are invalid and is following the federal agency's recommendation that the SJVEC project not be approved until Applicant can provide evidence that it has procured valid ERC mitigation for operational impacts. In addition, Staff has identified sulfur dioxide, to be emitted from the SJVEC's stacks as another pollutant that requires additional offsets in the form of ERCs. In both cases Applicant has rejected the Staff approach in favor of adjudication of the issues.

Regarding Noise impacts, the Addendum includes an analysis of Applicant's recent proposal to buy out several residents living near the SJVEC site, and install noise abatement measures at other nearby residences, as a means of mitigating the noise impact that would be created by the SJVEC's operation.

In the July 16, 2002 SA, Staff determined that Applicant should first install all feasible on-site noise mitigation measures towards the goal of attaining the noise levels specified in Condition of Compliance Noise-6. Staff objects that Applicant has not conducted a feasibility study that would demonstrate whether Staff's noise abatement plan is workable with respect to those recommended on-site mitigation measures. Staff views Applicant's recent offer to purchase or install noise abatement materials for homes near the SJVEC plant site as an option only to reduce impacts to levels of insignificance should on-site measures prove infeasible.

The Committee will conduct formal hearings to receive evidence on all aspects of the proposed project as set forth in APPENDIX A. This Notice provides a schedule for these hearings and a notice of witnesses for each topic area, where that information is available.

On January 27, 2003, the parties filed Prehearing Conference Statements in accordance with the Committee's Notice of Prehearing Conference and Scheduling Order. On January 29, 2003, the Committee conducted a Prehearing Conference in San Joaquin, California. There, the parties agreed to continue to discuss those remaining issues for adjudication in the interest of reaching an agreement prior to the beginning of Evidentiary Hearings. It is the Committee's expectation that the parties will file final status reports that will discuss the extent to which the parties have narrowed or attempted to narrow those issues remaining for adjudication. The Schedule for filing these reports shall be set forth at the Prehearing Conference.

Formal Evidentiary Hearing Procedures

The purpose of the evidentiary hearings is to establish the factual record necessary for the Energy Commission to reach a decision on the proposed project. The record is developed by the presentation of oral and written testimony, as well as documentary evidence submitted by the parties. Evidentiary hearings are more structured than the informal workshops and Committee Conferences that have already occurred.

The parties will present evidence in the form of sworn, oral testimony, or written declarations in all technical areas as set forth in APPENDIX A. Any witness offering oral testimony sponsored by a party shall testify under oath or affirmation and will be subject to cross-examination by other parties. Any party sponsoring a witness shall briefly establish the witness's qualifications and have the witness orally summarize the prepared testimony before requesting that the testimony be moved into evidence.

If warranted, multiple witnesses may testify as a panel, and any relevant exhibits may be offered into evidence by the sponsoring panel member(s). At the conclusion of direct testimony, the Committee will provide all other parties an opportunity for cross-examination, followed by redirect and re-cross-examination of the witnesses, as appropriate.

By stipulation of the parties, the Committee will accept written Declarations instead of oral testimony where the evidence is uncontroverted by the parties. These topics include:

1. PROJECT DESCRIPTION;
2. ALTERNATIVES;
3. COMPLIANCE & CLOSURE;
4. FACILITY DESIGN;
5. POWER PLANT EFFICIENCY;
6. POWER PLANT RELIABILITY;
7. TRANSMISSION SYSTEM ENGINEERING;
8. TRANSMISSION LINE SAFETY & NUISANCE;
9. HAZARDOUS MATERIALS;
10. WORKER SAFETY & FIRE PROTECTION;
11. CULTURAL RESOURCES;
12. GEOLOGY & PALEONTOLOGY;
13. LAND USE;
14. SOCIOECONOMICS; and
15. TRAFFIC & TRANSPORTATION.

The following topic areas are contested and have the potential for controversy at the Evidentiary Hearings.

1. AIR QUALITY;
2. PUBLIC HEALTH;
3. BIOLOGICAL RESOURCES;
4. VISUAL RESOURCES and PLUMES;
5. COMPLIANCE AND CLOSURE;
6. WASTE MANAGEMENT;
7. NOISE; and
8. SOIL AND WATER RESOURCES.

Applicant has the burden of presenting sufficient substantial evidence to support the findings and conclusions required for certification of the site and related facilities.

Public Participation

Members of the public and interested governmental agencies are invited to attend these hearings and may offer unsworn public comment upon the matters discussed. These public comments will be entered into the record of the proceeding and may be used to supplement or explain the evidence of record. Public comments by themselves, however, are not sufficient to support a finding of fact or a decision on an issue.

The Commission's Public Adviser, Roberta Mendonca, is available to provide information or to assist those interested in participating at these hearings. She may be reached at (916) 654-4489 or, toll free, at 800-822-6228; or by email at: [pao@energy.state.ca.us].

Further Information

Technical questions concerning the project should be addressed to the Commission's Project Manager Mathew Trask, at (916) 654-4067 or e-mail at: [mtrask@energy.state.ca.us]

Questions of a legal or procedural nature should be directed to Major Williams, Jr., the Hearing Officer, at (916) 654-3893 or e-mail at: [mwilliam@energy.state.ca.us]

If you require special accommodation to participate in this proceeding, please contact Loudes Quiroz at (916) 654-5146 or at [lquiroz@energy.state.ca.us], at least five days prior to the hearing. Media inquiries should be directed to Claudia Chandler, Assistant Executive Director for Media and Public Communications, at (916) 654-4989 or e-mail at: [energia@energy.ca.gov]

Information concerning the status of the project, as well as notices and other relevant documents, is also available on the Energy Commission's Internet home page at: [http://www.energy.ca.gov/sitingcases/sanjoaquin/index.html]

Dated: February 6, 2003, at Sacramento, California.

__________________________
ARTHUR H. ROSENFELD
Commissioner and Presiding Member
SJVEC AFC Committee

__________________________
JOHN L. GEESMAN
Commissioner and Associate Member
SJVEC AFC Committee

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¹ California Unions for Reliable Energy (CURE) is an Intervenor although it has been inactive in these proceedings.

 

APPENDIX A
AGENDA
TOPIC AND WITNESS SCHEDULE
Tuesday, February 18, 2003 EVIDENTIARY HEARING

TOPIC	WITNESSES (Direct Testimony)	CROSS-EXAMINATION
All Topics identified as uncontested on pages 4 and 5 above.	Where prehearing discussions do not resolve minor language changes or clarifications, the parties should be prepared for adjudication and witnesses should be available for testimony in those areas.
Compliance and Closure	Applicant: Michael Argentine Staff: Lance Shaw Intervenor: Keith Frietas	Applicant Staff Intervenor
Waste Management	Applicant: Karen Parker Staff: Alvin J. Greenberg Intervenor: Keith Frietas	Applicant Staff Intervenor
Biological Resources	Applicant: E. J. Koford Staff: Thomas Scofield Intervenor: Keith Frietas	Applicant Staff Intervenor
Soil and Water Resources	Applicant: Steven Long and E. J. Koford Staff: Joe Crea, Charlie Moore, Jim Thurber, Aurie Patterson and John Kessler Intervenor: Keith Frietas	Applicant Staff Intervenor

• TOPICS MAY BE CONTINUED FROM ONE DAY TO THE NEXT AS NECESSARY.

APPENDIX A
AGENDA
TOPIC AND WITNESS SCHEDULE
Wednesday, February 19, 2003 EVIDENTIARY HEARING

TOPIC	WITNESSES (Direct Testimony)	CROSS-EXAMINATION
Air Quality	Applicant: Gary S. Rubenstein Staff: William Walters, Lisa Blewitt SJVAPCD: Seyed Sadredin or David Warner Intervenor: Keith Frietas	Applicant Staff Intervenor
Public Comment	Governmental Officials will be given first priority at this session of Public Comment.
Public Health	Applicant: John A. Lowe Staff: Alvin J. Greenberg SJVAPCD: Seyed Sadredin or David Warner Intervenor: Keith Frietas	Applicant Staff Intervenor
Visual Resources and Plumes	Applicant: Thomas Priestly, Gary S. Rubenstein Staff: Ken Peterson, Dale Edwards, William Walters Intervenor: Keith Frietas	Applicant Staff Intervenor
Public Comment	Members of the General Public will be given first priority at this session of Public Comment.

• TOPICS MAY BE CONTINUED FROM ONE DAY TO THE NEXT AS NECESSARY.

APPENDIX A AGENDA
TOPIC AND WITNESS SCHEDULE
Thursday, February 20, 2003 EVIDENTIARY HEARING

TOPIC	WITNESSES (Direct Testimony)	CROSS-EXAMINATION
Continuation of Topics not completed on Tuesday, February 18.
Noise	Applicant: Not yet Designated Staff: Jim Buntin, Bill Thiessen, Steve Baker Intervenor: Keith Frietas	Applicant Staff Intervenor

• TOPICS MAY BE CONTINUED FROM ONE DAY TO THE NEXT AS NECESSARY.

 

AGENDA TOPIC AND WITNESS SCHEDULE
Friday, February 21, 2003 EVIDENTIARY HEARING
(If Needed)

TOPIC	WITNESSES (Direct Testimony)	CROSS-EXAMINATION
Continuation of Topics not completed on Thursday, February 20.

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