[California Energy Commission Letterhead]


STATE OF CALIFORNIA

Energy Resources
Conservation and Development Commission



In the Matter of: ) Docket No. 97-AFC-2
)
Application for Certification ) NOTICE and ORDER RE:
for the Sutter Power Plant Project ) ADDITIONAL EVIDENTIARY
) HEARING REQUIRING
___________________________________ ) SUPPLEMENTAL TESTIMONY

Substitution of Emission Reduction Credits

In its filing of February 8, 1999, and at the Committee Conference of February 11, 1999, Applicant Calpine Corporation announced its plans to substitute different sources for certain emission reduction credits (ERCs) than those listed in the Presiding Member's Proposed Decision (PMPD). According to Calpine, negotiations for the substitute ERCs are currently ongoing and details are not yet available. The substitution of ERCs represents new information in this case which the Commission staff, all parties, and air quality regulatory agencies at the local, state, and federal levels must review in order to determine that project emissions will be fully mitigated. To ensure that this new information is incorporated into the record in a timely manner, and in an attempt to maintain the Committee's schedule in this case, this Order directs the parties to file testimony so that the matter can be heard at an evidentiary hearing on March 10, 1999. After taking evidence on the adequacy of the substitute ERCs, the Committee will take comments on the Revised Presiding Member's Proposed Decision, which the Committee expects to publish on March 2, 1999.

The evidentiary hearing and opportunity to comment will take place as follows:

WEDNESDAY, March 10, 1999
*Beginning at 9 a.m.
Bonanza Inn [Best Western]
Convention Center, Room A
1001 Clark Ave
Yuba City, CA 95991
[Wheelchair Accessible]

The Committee directs that no later than February 24, 1999, Calpine file at the Commission, and serve upon all parties, information which demonstrates the adequacy of the substitute ERCs to mitigate the relevant portion of project emissions, and which describes the legal and regulatory acceptability of the proposed substitute offsets. Calpine shall also submit evidence that in light of the substitute ERCs, the Feather River Air Quality Management District certifies that complete offsets have been identified and will be obtained prior to licensing. This is required by Public Resources Code section 25523(d)(2).

Commission staff analysis and any testimony from parties in response to Calpine's filing shall be filed at the Commission and served upon all parties no later than Wednesday, March 3, 1999.

If, after reviewing the evidence presented at the hearing of March 10, 1999, the Committee determines that the proposed substitution of ERCs will impose no significant environmental impact and will meet all laws, ordinances, regulations and standards, the substitution will be treated as an errata to the Revised Presiding Member's Proposed Decision. That document is presently scheduled to be considered for approval by the full Commission on Wednesday, March 17, 1999. The Committee is issuing this Order to ensure timely consideration of the new material so that the current schedule can be maintained.

Schedule

Calpine files ERC package Wednesday, February 24, 1999
Staff and parties file response Wednesday, March 3, 1999
Evidentiary/Comment Hearing Wednesday, March 10, 1999
Commission hearing on Revised PMPD Wednesday, March 17, 1999

Testimony in the Evidentiary Record from Crop Dusters

At the Committee Conference on February 11, 1999, members of the public stated that two local crop dusters provided information on the aviation hazards associated with the SPP project's proposed transmission line. It was later clarified that this information was presented at a Staff workshop. The Committee requests the assistance of parties to the proceeding in identifying, and directing the Committee to, any information presented at an evidentiary hearing, which documents the comments of the referenced crop dusters.

Comment on the Revised PMPD

On March 10, 1999, after taking evidence on the Applicant's proposal for substitute ERCs, the Committee will take comments on the Revised PMPD.

Members of the public and interested agencies are invited to attend this hearing. Time will be reserved to allow members of the public to comment. The Commission's Public Adviser, Roberta Mendonca, is available to assist interested individuals or groups and to provide information on participating at these hearings. She may be reached at (916) 654-4489 or, toll free, 1-800-822-6228 or E-mail: rmendonc@energy.state.ca.us

Technical questions concerning the project should be addressed to Paul Richins, the Commission's Project Manager, at (916) 654-4074 or E-mail: prichins@energy.state.ca.us Questions of a legal or procedural nature should be directed to Gary Fay, the Hearing Officer, at (916) 654-3965 or E-mail: gfay@energy.state.ca.us If you require special accommodations, contact Robert Sifuentes at 654-5004, five days prior to the meeting. Media inquiries should be directed to Claudia Chandler, Assistant Executive Director, at (916) 654-4989. Information about the project is available on the Energy Commission's web site at: http://www.energy.ca.gov/sitingcases/sutterpower



Dated: March 3, 1999 ENERGY RESOURCES CONSERVATION AND DEVELOPMENT COMMISSION



_____//SIGNED//_____
MICHAL C. MOORE, Commissioner
Presiding Member




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