HomeMy WebLinkAbout5/2/2012 - STAFF REPORTS - 4D �® Cop 1 6-5 TO CO-u N " L
C o-N fA Cj; Ln^j
RESOLUTION TO CITY COUNCILS 74
• RE: CPV SENTINEL POWER PLANT
Whereas, CPV Sentinel LLC corporation has misrepresented the negative
environmental impact that its local power plant will have on the Coachella
Valley for the neat 30 years, and
Whereas, the mitigation fees for stated impact are insufficient and were not
negotiated openly with the people who will be most deeply affected, and
Whereas, the City Councils of the Coachella Valley do have the authority to
create tax districts and assess mitigation fees, and the responsibility to protect
the health and welfare of their constituents, therefore let these measures be
adopted:
1. Prior negotiated mitigation fees from the AB 1318 Mitigations Fees
Fund shall be used as mandated "only for emission reduction
purposes."(SCAQMD Agenda# 27. June 3, 2011).
2. A citizens' oversight board shall be established with one elected
member from each city in the Coachella Valley to monitor pollutant
emissions and plant operation independently of the South Coast Air
Quality Management District, with these provisions:
a. Will produce a comprehensive environmental audit yearly.
b. Will coordinate and share findings with CVAG.
c. Will work with City Councils and staff to establish
a continuing taxing agency for CPV Sentinel LLC, with
mitigation fees based on pollutant quantities produced by
the facility.
d. Will be funded solely by yearly mitigation fees.
e. Will seek to establish a separate air quality management
district for the Coachella Valley, to include the Salton Sea Air
Basin.
3. Yearly assessed mitigation fees on the CPV Sentinel plant shall be
used to fund the following programs:
. a. Medical programs for those suffering from pulmonary
disease associated with or aggravated by air-borne pollutants.
Cc 'P1155 To CbvNCIL
Co N '-R CT: Lt-w S E W A ra-
RESOLUTION TO CITY COUNCILS
• RE: CPV SENTINEL POWER PLANT
Whereas, CPV Sentinel LLC corporation has misrepresented the negative
environmental impact that its local power plant will have on the Coachella
Valley for the next 30 years, and
Whereas, the mitigation fees for stated impact are insufficient and were not
negotiated openly with the people who will be most deeply affected, and
Whereas, the City Councils of the Coachella Valley do have the authority to
create tax districts and assess mitigation fees, and the responsibility to protect
the health and welfare of their constituents, therefore let these measures be
adopted:
1. Prior negotiated mitigation fees from the AB 13181 Mitigations Fees
Fund shall be used as mandated "only for emission reduction
purposes."(SCAQMD Agenda# 27. June 3, 2011).
2. A citizens' oversight board shall be established with one elected
member from each city in the Coachella Valley to monitor pollutant
emissions and plant operation independently of the South Coast Air
Quality Management District, with these provisions:
a. Will produce a comprehensive environmental audit yearly.
b. Will coordinate and share findings with CVAG.
c. Will work with City Councils and staff to establish
a continuing taxing agency for CPV Sentinel LLC, with
mitigation fees based on pollutant quantities produced by
the facility.
d. Will be funded solely by yearly mitigation fees.
e. Will seek to establish a separate air quality management
district for the Coachella Valley, to include the Salton Sea Air
Basin.
3. Yearly assessed mitigation fees on the CPV Sentinel plant shall be
used to fund the following programs:
a. Medical programs for those suffering from pulmonary
disease associated with or aggravated by air-borne pollutants.
df�z fzoi�
-77ZA4 A�.O
• b. Monitoring and compliance with EPA and Coachella Valley
Air Quality Management District.
c. Legal requirement that CPV Sentinel LLC install industry
standard best practice pollution-control devices as they
become available.
d. Zero-interest loans to install solar and other energy-saving
technology in Coachella Valley homes and businesses.
�2
V N
1p ALMS.*
F k
VI
441
F°"`'N City Council Staff Report
Date: May 2, 2012 UNFINISHED BUSINESS
Subject: DISCUSSION OF POTENTIAL PROJECTS FOR THE AIR QUALITY
MANAGEMENT DISTRICT (AQMD) GRANT APPLICATION FOR THE
SENTINEL POWER PLANT MITIGATION FUNDING
From: David H. Ready, City Manager
Initiated by: Public Works and Engineering Department
SUMMARY
At its meeting of April 11, 2012, the City Council requested that staff undertake basic
analysis of potential projects located within 6 miles of the Sentinel power plant, for inclusion
in the SCAQMD Sentinel Grant Application. The analysis below is provided to the Council
as a method of determine which projects to pursue for grant funding.
This AQMD program is funded by emission offset mitigation funds provided by CPV
Sentinel, LLC for the purpose of funding emission reduction projects pursuant to California
Assembly Bill 1318.
RECOMMENDATION:
Identify the final list of projects to submit to AQMD for consideration of funding as part of
AQMD's call for projects.
STAFF ANALYSIS:
In June 2011, the Governing Board of AQMD approved the establishment of the AB1318
Mitigation Fees Fund, required of the Sentinel power plant to offset its air emissions. This
special revenue fund will be used to finance emission reduction projects in the Coachella
Valley. The sum of approximately $53 million, all of which is provided by CPV Sentinel,
LLC, was placed in the AB 1318 Mitigation Fees Fund.
The City Council, at its meeting of April 11, 2012, directed staff to research the air emission
reductions for projects within a 6 mile radius of the power plant (please see map below).
The funding available for this area totals approximately$15.9 million.
ITEM NO.
City Council Staff Report
May 2, 2012 -Page 2
AQMD Grant Application Discussion
�1
l
\11
- F
I[rerun L. �
-
Land Use
Rwdnoel I , �,
The Council further directed that staff calculate emission reductions for each of the proposed
projects, so that Council could consider their benefits, and select those projects the Council
determines are most beneficial.
k
Staff has outlined a list of 12 potential projects within 6 miles of the Sentinel power plant for r
Council's further consideration. A short description of each project is provided below, including
the cost savings to the City. Following these descriptions, Table 1 provides a comparison of the
air emissions savings (both in terms of traditional air emissions and greenhouse gases, each
project is estimated to achieve). The projects currently being considered within 6 miles of the
power plant are:
1,
Solar Photo-Voltaic (PV) system for Desert Highland Community Center
This project consists of the installation of solar panels at the James O. Jessie Community Center
roof top. In 2011, the annual energy demand of the Center was 85,320 kilowatt hours (kwh), for
heating and cooling, lighting, and electronics such as computers, printers and other equipment.
The photo-voltaic (IIPW) system will include traditional roof mounted panels, which would be
designed with a capacity to substantially meet the Center's annual electric load. For budgeting
e
t
City Council Staff Report
May 2, 2012 - Page 3
AQMD Grant Application Discussion
purposes, it is estimated the total cost of this project would be $350,000. This installation would
recover 100% of the energy demand generated by the Center, representing an annual savings
of$14,419 to the City.
Solar Photo-Voltaic (PV) system for Fire Station #3
This project consists of the installation of solar panels at Fire Station # 3, which is located at 590
E. Racquet Club. In 2011, the annual energy demand of the Station was 65,998 kilowatt hours
for heating and cooling, lighting, and electronics such as computers, printers and other
equipment. The photo-voltaic ("PV") system will include traditional roof mounted panels, which
would be designed with a capacity to substantially meet the Fire Station's annual electric load.
For estimating purposes, it is assumed a PV system size of 20 kilowatts. For budgeting
purposes, it is estimated the total cost of this project would be $260,000. This installation would
recover 100% of the energy demand generated by Fire Station #3, representing an annual
savings of$10,890 to the City.
Solar Photo-Voltaic (PV) system for Palm Springs Train Station
This project consists of the installation of solar panels at the Palm Springs Train Station, which is
located at 63950 PS Station Road. In 2011, the annual energy demand of the Train Station was
39,122 kilowatt hours, generated by outdoor lighting of the parking lot and train station. The
photo-voltaic ("PV") system will include traditional roof mounted panels, which would be
designed with a capacity to substantially meet the Train Station's annual electric load. For
estimating purposes, it is assumed a PV system size of 10 kilowatts. For budgeting purposes, it
is estimated the total cost of this project would be $150,000. This installation would recover
100% of the energy demand generated by the Train Station, representing an annual savings of
$5,907 to the City.
Solar Photo-Voltaic (PV) system for the Visitor's Center
This project consists of the installation of solar panels at the Palm Springs Visitor's Center,
which is located at 2901 North Palm Canyon Drive. In 2011, the annual energy demand of the
Visitor's Center was 62,264 kilowatt hours, generated by heating and cooling, lighting, and
electronics such as computers, printers and other equipment. The photo-voltaic ("PV") system
may include traditional roof mounted panels', which would be designed with a capacity to
substantially meet the Visitors Center's annual electric load. For estimating purposes, it is
assumed a PV system size of 20 kilowatts. For budgeting purposes, it is estimated the total cost
of this project would be $240,000. This installation would recover 100% of the energy demand
generated by the Visitor's Center, representing an annual savings of$11,467 to the City.
Solar Photo-Voltaic (PV) system for Roy's Resource Center
This project consists of the installation of solar panels at Roy's Resource Center, which is
located at 19531 McLane Street. The Center has an annual energy demand of approximately
345,000 kwh, because of its 24/7 residential activities. This project has some challenges, in that,
the City does not own or operate Roy's Resource Center. The building is owned by Riverside
' Given the Visitor's Center's Class 1 historic site designation, installing roof mounted PV
panels may not be possible. Ground mounted PV panels may be required.
City Council Staff Report
May 2, 2012 - Page 4
AQMD Grant Application Discussion
County. The Coachella Valley Association of Governments ("CVAG") is the administrator of
Roy's Resource Center. According to CVAG, CVAG staff previously attempted to coordinate a
solar PV system installation for the Resource Center, but was unsuccessful. One of the primary
issues appeared to be that the structure of the building will need to be improved to support the
solar panels. Given the County's ownership of the building, the County may have certain
requirements with regard to the City's proposal of a solar PV system on their building. Staff has
not had the opportunity to discuss this project further with County staff. CVAG previously
obtained cost estimates that ranged from $400,000 for a system to generate about 34% of the
annual usage, to $970,000 for a system that would generate 90% of the Center's annual usage.
For budgeting purposes, it has been assumed that a system sufficient to cover all power
demand at this facility would run approximately $1.4 million, and result in an annual savings of
$55,793 in operating expenses.
Purchase of CNG Vans for Roy's Resource Center
It has been proposed to request funding to purchase 2 or 4 commuter vans to replace the
existing gasoline powered vans currently operating from the Center. These vans are used to
transport residents throughout the Valley, to social service agencies, on job and housing
searches, and similar activities. Each van is estimated to cost $32,500; for a total of$65,000 for
two vans, and $130,000 for four vans.
CNG and Electric Charging Station (and Visitor Information Kiosk)
As proposed, a compressed natural gas (CNG) refueling station and an electric vehicle charging
station will be developed along Interstate-10. The property owner will donate the land to the
City. The site is currently undeveloped, and has been moderately impacted by off road vehicles,
dumping, and other ground disturbance.
In addition, an unmanned kiosk onsite will provide tourists, visitors, and valley residents alike
with an informational booth containing text, graphics, and other materials explaining the history
of the Valley's renewable energy resources including wind turbines and solar energy production.
Project cost is currently unknown, and depends upon the final scope of the project. Further, as
the project will not result in a reduction in trips, and cannot be assumed to encourage the
replacement of personal gasoline vehicles for CNG or electric vehicles, it cannot be assumed
that there would be any reduction in air emissions.
Conversion of the Palm Springs Country Club Golf Course
This project consists of the conversion of the abandoned golf course located at Whitewater Club
Drive and Verona Road into a regional park site. The park would connect to the City's General
Plan trail immediately to the north, and thus facilitate non-motorized access. For purposes of
this analysis, it has been assumed that 20% the 2,000 children who currently use Demuth Park
would travel to the new park by bicycle or other non-motorized means. Approximately, 60% of
the 118 acre site is located within the 6 mile radius. This project would require the City to
acquire the property (currently estimated by the County at $1.3 Million). Development costs to
convert the site may exceed $3 Million (estimated at $25,000 per acre). The primary emission
City Council Staff Report
May 2, 2012- Page 5
AQMD Grant Application Discussion
reduction will be PM10, which is currently a significant problem because of the lack of
maintenance of the property.
Residential Solar and/or Wind Turbine Program
This program will implement a matching grant program for the installation of either solar PV or
vertical access wind turbines for City residents living within the six mile radius. The City could
match, dollar for dollar, up to a limit set by Council per household (i.e. $25,000 per household).
The estimate used by staff assumed a grant funding of $1 million for this program. The City's
Sustainability Commission could coordinate the specifics of this residential incentive program.
As estimated by the Valley-wide Green For Life Energy Efficiency Program, the City-wide energy
consumption within Palm Springs for the residential sector totaled 253,365,000 kwh in 2010, and
there were 34,795 dwelling units. Therefore, on average each dwelling unit within Palm Springs
consumed approximately 7,282 kwh in 2010. Generally, a 2.5 kW system is expected to offset
50% of the average dwelling unit's energy demand, and a 5 kW system is expected to offset
100%. For budgeting purposes, it is estimated individual PV systems to recover 50% energy use
is $25,000, and individual PV systems to recover 100% energy use is $50,000. (which includes
design, permitting and other associated costs). Depending on the system selected, the number
of households participating, and the total number of homes that can be improved, each
household could save an average of approximately $1,240 annually, and an allocation of $1
million would result in the installation of 60 to 75 systems.
Residential Cool Roof Program
This program will implement a matching grant program for the installation of "cool roofs" for City
residents living within the six mile radius. The City could match, dollar for dollar, up to a limit set
by Council per household (i.e. $10,000 per household). The estimate used by staff assumed a
grant funding of $1,000,000 for this program. Table 1 below shows a comparison for coating
composition roofs versus tile roofs. As can be seen in the Table, the coating of composition roofs
provides for many more homes assisted than the improvements to tile roofs. The City's
Sustainability Commission could coordinate the specifics of this residential incentive program.
College of the Desert Bike Lane Connection
A Class 2 bike lane along Indian Canyon Drive from Sunrise Parkway to Racquet Club Road to
facilitate pedestrian, cyclist, and non-motorized modes of transit is proposed to provide
interconnection with the future College of the Desert campus. The Palm Springs General Plan
designates Indian Canyon Drive as a four-lane divided Major Thoroughfare, with a 100 foot right
of way and 76 foot pavement width and a 10 foot median. The General Plan also designated
Indian Canyon Drive as a Class II bikeway. Indian Canyon Drive is currently a two lane divided
arterial north of Tramview Road and a 4 lane divided arterial south of Tramview Road. The
project will cost approximately $100,000.
City Council Staff Report
May 2, 2012- Page 6
AQMD Grant Application Discussion
Cross Walk/Traffic Calming Improvements
Roadway improvements such as cross walks, safety lighting and other traffic calming features
may be proposed on N. Palm Canyon Dr. between San Rafael Dr. and Vista Chino to enhance
the usability and desirability of alternative modes of transportation, particularly at night. Given
the fact that this segment of N. Palm Canyon Dr. is under the jurisdiction of Caltrans (as part of
Highway 111), installation of any new cross-walks or other traffic calming measures will require
Caltrans approval. The project is estimated to cost $50,000 for installation of painted crosswalks
and safety lighting. Installation of mid-block crosswalks with in-pavement LED lights and
flashing beacons are estimated to cost $50,000 each. These improvements would potentially
improve traffic safety, but would not result in any lowering of emissions.
Air Emission Reductions
Based on the assumptions described above, the following emission reductions would be
expected.
City Council Staff Report
May 2, 2012 - Page 7
AQMD Grant Application Discussion
Table 1 1
Emission Reduction Estimates
Reduc
tion Reduction
Program Savings' Net Cost (tons)2 (pounds per year)2
$ $ CO2e CO I VOCI NOx SOX I PM1a
Desert Highland Center $14,419 $350,000 44 51 6 81 50 36
Fire Station #3 $10,890 $260,000 34 39 4 63 39 28
Train Station $5,907 $150,000 20 23 3 37 23 17
Visitor Center $11,467 $240,000 32 37 4 59 37 27
Ro 's Resource Center' $55,793 $1,400,000 176 204 23 332 208 149
Ro 's 2 CNG Vans" ? $65,000 13 1,803 229 152 14 1
Ro 's 4 CNG Vans° ? $130,000 -30 1,182 219 139 14 0
CNG & Electric Station/Kiosk N/A ? N/A N/A N/A N/A N/A N/A
Palm Springs Country Clubs N/A $3,000,000 12 70 7 5 0 7,935
71 Residential Solars $88,162 $1,00,000 239 307 34 498 313 223
205 Residential Cool Roof 152 177 20 287 180 129
Coating7 $47,797 $1,000,000
51 Cool Roof Concrete Tile? $11,949 $1,000,000 38 44 5 72 45 32
COD Bike Lane Connection' N/A $100,000 3 15 1 1 0 0
Crosswalk/Traffic CalmingN/A $50,000 ea. lNone INone INone INone INone None
Sources: Clean Air Climate Protection Software; Green for Life Inventory; Solar Power Authority Cost Calculator,and City Data.
Assumes PV systems generate 100%of facility energy need(best case).
1. Net Savings from no monthly electric bill (does not include cost of PV system). Assumes cost savings between $0.15 and
$0.17 per kwh.
2. Reduction is CACP estimate from replacing traditional energy source with"Green"Electricity.
3.Total kwh is sum of three meters(345,205 kwh per year).
4.Assumes that 68,000 VMT from Gas Vanpool Van are replaced with 68,000 VMT from CNG Vanpool Van. Cost is for 2 CNG
Vans(Chrysler). Doubled for 4 vans,assumes that 136,000 miles replaces 68,000 miles
5. Reduction shown is for replacing 2k vmt with biking and PM10 reduction is from development of vacant land (assumes that
529 Ibs of dust are generated from each high wind days, 15 days annually). PM10 is from Urbemis during active site
disturbance of all 118 acres mitigated amount of 529 Ibs is used since soils are stabilized and/or assumed to be watered.
(Unmitigated generates 2,360 Ibs per day during active site disturbance.
6.Combined roof top PV systems generate 518,599 kwh annually, or the equivalent of the annual energy demand generated by
71 dwelling units.
7. Coating assumes cost of$1.50 per square foot with an average roof area of 3,250 sf. Concrete tiles assumes$6 per sf and
same area. Cost data is from Reducing Urban Heat Islands Cool Roofs prepared for EPA.
8. ADTs of Sunrise is 34,700 per CPSP Traffic, assumes 1% of ADT(vehicle trips)are replaced with bike for the length of the
1.25 mile roadway segment,or total of 433 VMT are avoided.
FISCAL IMPACT:
The grant request will include monies to cover staff time in implementation and administration.
Therefore, there should be no fiscal impact associated with any of these projects.
City Council Staff Report
May 2, 2012 -Page 8
AQMD Grant Application Discussion
SUBMITTED:
//-"
M�O ZVL
Marcus L. Fuller David J. Barakian
Assistant Director of Public Works Director of Public Works/City Engineer
Thomas J. Wi[Wn, Asst. City Manager David H. Ready, City ger