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HomeMy WebLinkAboutAgenda Packet 11/10/2008 Utility Advisory Committee Special Meeting Public Works Conference Room Port Angeles, W A 98362 November 10, 2008 3:00 P.M. AGENDA I. Call To Order II. Roll Call III. Approval Of Minutes For October 14,2008 IV. Late Items V. Discussion Items A. B. C. D. E. F. G. BP A Power Sales Agreement Proposed Medic 1 Utility Rate Adjustments Draft 2008 Comprehensive Water System Plan P A WTP Computerized Maintenance Management System Energy Independence Security Act of 2007 Consideration Morse Creek License Amendment Capital Facilities Plan and Transportation Improvement Program Amendment H. Low-Income Weatherization (Oral Report) I. Energy Northwest Quarterly Report (Oral Report) VI. Next Meeting Date: December 9,2008 VI. Adjournment N:\UAC\FINAL\111008 UTILITY ADVISORY COMMITTEE GUEST SIGN UP SHEET PRINT NAME ORGANIZATION ~ R IL i../ f/) u All) f) R F UJ t:-4~- , I N: \PWKS \LIGHT\ CONS \ CATE \ SIGNUP. wpd Utility Advisory Committee Special Meeting Public Works Conference Room Port Angeles, W A 98362 October 14, 2008 1 :00 p.m. ~~.-q~/, I. Call To Order Chairman Reed called the meeting to order at 1 :00 p.m. II. Roll Call Members Present: Chairman Reed, Betsy Wharton, Karen Rogers, Orville Campbell, Don Perry, Elizabeth Butler (2:45) Members Absent: Dan Di Guilio Staff Present: Yvonne Ziomkowski (3:05), Ken Dubuc (3:05), Mike Puntenney, Larry Dunbar, Phil Lusk, Tom McCabe, Cate Rinehart Others Present: Shannon Greene - Bonneville Power Administration III. Approval of Minutes: Chairman Reed asked if there were any corrections to the minutes of September 30,2008. Councilmember Rogers moved to approve the minutes. Councilmember Wharton seconded the motion, which carried unanimously. Councilman Perry abstained due to absence. IV. Late Items None V. Discussion Items: A. Bonneville Power Administration Power Sales Agreement Shannon Greene, BP A Power Services Account Executive, distributed a handout and gave a presentation based upon that information. The discussion included the current and proposed contractual relationship between the City and BP A. Larry Dunbar, Deputy Director of Power Systems, distributed a handout and gave a presentation based upon that information. The power sales agreement and tiered rate methodology was reviewed. There was a lengthy discussion. Staff was requested to schedule a future Council presentation to discuss the proposed power sales agreement and tier rates methodology before November 18, 2008. Information only. No action taken. UTILITY ADVISORY COMMITTEE October 14, 2008 B. Medic 1 Utility Cost Of Service Study Update Yvonne Ziomkowski, Finance Director, explained that the Medic 1 program is supported through an enterprise fund using transport charges, monthly utility charges, and a General Fund contribution. A rate adjustment of 6% was proposed by staff. A discussion followed. Councilmember Rogers moved to recommend City Council proceed with a public hearing on the update to the cost of service study for the Medic 1 Utility. Councilman Perry seconded the motion, which carried unanimously. C. Solid Waste Utility Rates Larry Dunbar, Deputy Director of Power Systems, advised that FCS Group completed comprehensive rate studies for the Solid Waste Collections and Transfer Station utilities and that a public hearing had been held on October 7th. A discussion followed about the customer and councilmember input received at the public hearing. Councilmember Wharton moved to recommend City Council proceed with the proposed 10.50% rate adjustment for the Transfer Station Utilities. Councilman Perry seconded the motion, which carried unanimously. Councilman Perry moved to recommend City Council proceed with the proposed 0.56%rate adjustments for the Solid Waste Collections. Councilmember Rogers seconded the motion, which carried unanimously. D. Request For Proposals - Network Needs Assessment And Wireless Technology Plan Larry Dunbar, Deputy Director of Power Systems, explained that the Institutional Network Needs Assessment and the Public Safety Wireless Technology Plan had similar expert service needs and that they would be packaged together for the request for proposals. A timeline was furnished anticipating Utility Advisory Committee consideration of a consulting agreement next year. There was a brief discussion. Information only. No action taken. VL Next Meeting Date: November 10,2008 (3:00 p.m.) - Special Meeting Due To Holiday On Regular Meeting Date VIL Adjournment: The meeting was adjourned at 3:47 p.m. UTILITY ADVISORY COMMITTEE October 14, 2008 Chairman Reed Cate Rinehart, Admin Spec II N :\PWKS\LIGHT\CONS\CA TE\octI4meet.wpd ~ORTAN E....:..............:.L.f ,E..;...........i.',S'} ".~ WAS H I N G TON, U. S. A. Utility Advisory Committee Memo Date: November 10, 2008 To: Utility Advisory Committee From: Larry Dunbar, Deputy Director of Power Systems Subject: Bonneville Power Administration Power Sales Agreement Summary: The Bonneville Power Administration offered the City a new Power Sales Agreement. Prior to accepting the agreement, the City must review and make a determination that the Tier 1 power resources comply with the State's greenhouse gas emissions standard. Recommendation: Forward a favorable recommendation to City Council to 1) make a determination that the power resources comply with the State greenhouse gas emissions standard, 2) authorize the City Manager to make minor modifications to the agreement, if necessary, and 3) authorize the Mayor to accept the agreement. Background/Analysis: The City's Electric Utility currently has a Power Sales Agreement with the Bonneville Power Administration (BP A) that is in effect through September 2011. The BP A offered the City a new Power Sales Agreement, which must be accepted by the City no later than December 1,2008. The new Power Sales Agreement would commence on October 1,2011 and conclude on September 30, 2028. The primary change in the new Power Sales Agreement is a shift from average embedded melded rates to a Tiered Rate Methodology (TRM). In accordance with RCW 80.80.070, the City shall review and make a determination whether the power resources provided under the new Power Sales Agreement complies with the State greenhouse gas emissions standards. Based on the Tier 1 fuel mix provided by the BP A, staff calculated that the average greenhouse gas emissions are 182 pounds of carbon dioxide (C02) per megawatt-hour (see attachment), which complies with the State standard of 1,100 pounds of CO2 per megawatt-hour. Next year the City will be required to review and make a similar determination on its Tier 2 power resources. On October 14,2008, Ms. Shannon Greene, BPA Account Executive, and City staff presented an overview of the new Power Sales Agreement to the Utility Advisory Committee. A similar presentation was made on October 30,2008 to the City Council. Mr. Terry Mundorf will be attending today's meeting as an informational resource; he was instrumental in negotiation of the agreement on behalf of the City through its membership in the Western Public Agencies Group (WP AG). Attachment: BP A Expected Tier I CO2 Emission Averages N:\UAC\Final\BP A Power Sales Agreement Recommendation.doc CITY OF PORT ANGELES ELECTRIC UTILITY BPA EXPECTED TIER 1 C02 EMISSION AVERAGES WITH ADJUSTMENTS FOR MARKET PURCHASES YEAR PROJECTED MWh 711,136 710,691 712,411 714,070 717,957 717,418 719,094 725,881 727,684 729,399 731,034 732,597 734,093 735,528 736,907 738,233 739,512 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 .2022 .2023 '2024 2025 2026 2027 2028 C02 Emissions (tons) 64,722 64,682 64,838 64,989 65,343 65,294 65,446 66,064 66,228 66,384 66,533 66,675 66,812 66,942 67,068 67,188 67,305 C02 Emissions (Lb[e]/MWh) 182 182 182 182 182 182 182 182 182 182 182 182 182 182 182 182 182 SOURCE: Philip D. Lusk, Power Resources Manager CITY OF PORT ANGELES ELECTRIC UTILITY SPA TIER 1 C02 EMISSIONS AVERAGES SPA TIER 1 MIX aMW aMW% C02 Emissions (Lb[e]/aMW) Cogeneration 16 0.22% 0 Hydro 6,553 89.77% 0 Nuclear 684 9.36% 0 Wind 47 0.64% 0 Unspecified Q... 0.00% 2,600 TOTALS 7,299 100.00% SPA TIER 1 & MARKET aMW aMW% C02 Emissions PURCHASE MIX (Lb[e]/aMW) Cogeneration 16 0.22% 0 Hydro 6,042 82.77% 0 Nuclear 684 9.36% 0 Wind 47 0.64% 0 Unspecified 511 7.00% 2,600 TOTALS 7,299 100.00% SOURCE: Bonneville Power Administration COPA Tier 1 Electricity Emissions CITY OF PORT ANGELES ELECTRIC 2007 C02 UTILITY EMISSIONS TOTAL MWh MWh% C02 Emissions C02 Emissions (%) C02 Emissions FUEL MIX (tons) (Lb[e]/MWh) Biomass 686 0.10% 0 0.00% 0 Coal 18,422 2.56% 20,920 83.04% 2,271 Hydro 616,300 85.69% 0 0.00% 0 Landfill Gas 16 0.00% 10 0.04% 1,214 Natural Gas 7,717 1.07% 3,856 15.31% 999 Nuclear 75,250 10.46% 0 0.00% 0 Other 28 0.00% 19 0.07% 1,360 Petroleum 222 0.03% 351 1.39% 3,154 Waste 553 0.08% 37 0.15% 134 Wind Q 0.00% Q 0.00% Q. TOTALS 719,195 100.00% 25,193 100.00% 70 SPA MIX MWh MWh% C02 Emissions C02 Emissions (%) C02 Emissions (tons) (Lb[e]/MWh) Biomass 338 0.05% 0 0.00% 0 Coal 0 0.00% 0 0.00% #DIV/O! Hydro 600,401 88.75% 0 0.00% 0 Landfill Gas 0 0.00% 0 0.00% #DIV/O! Natural Gas 868 0.13% 592 89.85% 1,365 Nuclear 74,491 11.01 % 0 0.00% 0 Other 0 0.00% 0 0.00% #DIV/O! Petroleum 66 0.01% 67 10.15% 2,033 Waste 371 0.05% 0 0.00% 0 Wind ~ 0.00% ~ 0.00% Q. TOTALS 676,534 100.00% 659 100.00% 2 MARKET MWh MWh% C02 Emissions C02 Emissions (%) C02 Emissions PURCHASE MIX (tons) (Lb[e]/MWh) Biomass 348 0.85% 0 0.00% 0 Coal 18,422 45.10% 20,920 85.27% 2,271 Hydro 14,087 34.49% 0 0.00% 0 Landfill Gas 16 0.04% 10 0.04% 1,214 Natural Gas 6,849 16.77% 3,264 13.31% 953 Nuclear 759 1.86% 0 0.00% 0 Other 28 0.07% 19 0.08% 1,360 Petroleum 156 0.38% 284 1.16% 3,626 Waste 183 0.45% 37 0.15% 406 Wind Q 0.00% Q 0.00% #DIV/O! TOTALS 40,849 100.00% 24,534 100.00% 1,201 MORSE CREEK MWh MWh%, C02 Emissions C02 Emissions (%) C02 Emissions (tons) (Lb[e]/MWh) Hydro 1,813 100.00% 0 0.00% 0 NOTE: Because C02 emissions are calculated using fuel specific C02 emission rates and fuel consumption figures for each fuel specific plant generation record, it is possible to calculate C02 emissions for each fuel. S02, Nox and Hg are calculated using plant specific emission rates, so fuel specific amounts are not available for these substances. SOURCE: Washington State University Energy Program. COPA 2007 Eiectricity Emissions Date: To: From: Subject: ~'O"' R' T' ''Pl' N'G"E'L" E' 'S' ."1,,, ; (: ' ~ ' I ," '.'..: .' / ' i.,' I' i ' , i .....~ .,~:. . ' . i . :, ')'.':.' ! ' ,) : ; , .. \:'j:" WAS H I N G TON, U. S. A. Utility Advisory Committee Memo November 10, 2008 Utility Advisory Committee Dan McKeen, Fire Chief Proposed Medic I Utility Rate Adjustments Summary: Due to recent extraordinary increases in fuel costs and personnel costs, the City is,_, proposing a 6% cost of living adjustment to the Medic I utility rates. This adjustment reflects a $0.25 increase for monthly residential rates and a $0.25 increase for monthly commerciallbusiness rates. It is necessary to adjust rates at this time to maintain the fund in a financially prudent position. Recommendation: Forward a favorable recommendation to the City Council to proceed with the proposed rate adjustments for the Medic I Utility. Background/Analysis: The City of Port Angeles' Medic I program is structured as a utility- supported through an Enterprise Fund using transport charges, a monthly utility charge, and a General Fund contribution. The Enterprise Fund is based upon a cost of service approach, with the last cost of service study completed in 2007. As a result of the 2007 cost of service study, the monthly residential rate was adjusted in 2008 by $0.36 and the commerciallbusiness monthly rate was adjusted by $0.29. It was thought at the time , i' that these adjustments would cover both 2008 and 2009. Due to recent increases in medical supplies, pharmaceuticals, and personnel (contractual cost-of- living), the City is proposing a 6% cost of living adjustment to assist the Utility in keeping pace with these unexpected extraordinary increases in expenses. This 6% cost of living adjustment represents a $0.25 increase in monthly residential rates and $0.25 increase in monthly commerciallbusiness utility rates. On October 14, 2008, the Utility Advisory Committee recommended that City Council schedule a public hearing on November 4, 2008, and directed staff to return to the Utility Advisory Committee after receiving public comment. During the November 4 public hearing, no public comments were received. Staff recommends that the Utility Advisory Committee forward a favorable recommendation to City Council to continue the public hearing to November 18, 2008, close the public hearing, then adopt the proposed rate adjustments. The proposed rate adjustments would be effective January 1, 2009. N:\UAC\Final\Medic 1 Rate Recommendation.doc :-- t,.,~ ~.......!.'.'.'... :OY'Ri ,Ti'ft2;...................N..... (G'" iE" i1:- E; is' i I~r ;)i". / .... j frf i.: I .if il.) j i WAS H I N G TON, U. S. A. Utility Advisory Committee Memo Date: November 10, 2008 To: Utility Advisory Committee From: Kathryn Neal, PE, Engineering Manager Subject: Draft 2008 Comprehensive Water System Plan Summary: The Washington State Department of Health requires that the City update its Comprehensive Water System Plan every six years. Staff will present the highlights of the draft 2008 Comprehensive Water System Plan to the Utility Advisory Committee. Recommendation: For information only, no action requested. Background/Analysis: The City is required to update the Comprehensive Water System Plan (WSP) every six years to meet the general requirements of Washington State Department of Health (WDOH), including the current version of WAC 246-290. The most recent WSP was approved in 2002. The most important historical and future issues being addressed in this update to the WSP are summarized below: . The requirement for a Watershed Control Program. . Construction of the Port Angeles Water Treatment Plant, under the federal Elwha Dam Removal Project. . Compliance with requirements of the Stage 2 Disinfection Byproducts (DBP) Rule and the Long Term 2 (LT2) Enhanced Surface Water Treatment Rule. . Creation of a new hydraulic model developed from the City's GIS system to replace the existing hydraulic model that was developed and calibrated in 1994. . Adoption of the HB 1338, the Municipal Water Law (MWL) that established new principles related to water rights place of use, duty to serve and wateruse efficiency. Work on the WSP began in March 2008 under a consultant agreement with CH2M Hill. The draft WSP will soon be submitted to adjacent water purveyors (Dry Creek Water Association, Black Diamond Water District, and Clallam County PUD) for comment. After these comments and final City staff comments are addressed, a final draft WSP will be submitted to WDOH and Washington State Department of Ecology (WDOE). The WDOH and WDOE will likely take three months to review the final draft WSP. N:\UAC\Final\Draft 2008 Water System Plan.doc 2008 Water System Plan November 10, 2008 UAC Page 2 of2 After the City incorporates WDOH and WDOE comments, a final WSP will be published and presented to the Utility Advisory Committee with a request to recommend it for City Council adoption. Prior to adoption, staff will present the WSP to the City Council and public hearings will be held to solicit public comments, consistent with WDOH requirements. The draft WSP table of contents and highlights are attached. Attachment: Draft Water System Plan Table of Contents and Highlights DRAFT WATER SYSTEM PLAN TABLE OF CONTENTS AND HIGHLIGHTS SECTION HIGHLIGHTS 1 Description of Water The City owns and operates two municipal water systems, System one for potable water, and a second, non-potable, water system used for industrial purposes only - currently providing process water for Nippon Paper Industries. 2 Water Use City of Port Angeles historical population growth was used for developing projected growth in water use (demand) in a 6-year (2014) and 20-year (2028) planning horizon, developed consistent with the City's and Clallam County's adopted Growth Management Plans. 3 System Analysis Looks at: . distribution and source water quality, . current and forthcoming treatment regulations, . distribution system storage, . system control, . and distribution system piping for fire protection. The results of the evaluation revealed that the City will need to implement improvements to meet requirements for treatment, distribution system storage, and fire protection and minimum service pressure requirements. 4 Water Use Efficiency, Includes the City's conservation program, which conforms Water Rights, System with WDOH's 1994 Conservation Planning Requirements, Reliability, and Interties and 2007 Water Use Efficiency Rule, and a Water Shortage Response Plan. Port Angeles has rights for use of water from the Elwha River and Morse Creek, supporting the City's municipal drinking water supply needs as well industrial and hydro- electric power generation. 5 Source Water Protection Develops a Watershed Protection Plan. 6 Operations and Includes operator certification, system operation and control, Maintenance Program comprehensive monitoring plan, emergency response plan, safety procedures, cross-connection control program, response to customer complaints, recordkeeping and reporting, and improvements. 7 Design and Construction Capital improvements to the water system must be designed Standards in accordance with WDOH and City's Urban Services Standards and Guidelines. DRAFT WATER SYSTEM PLAN TABLE OF CONTENTS AND HIGHLIGHTS - CONTINUED SECTION HIGHLIGHTS 8 Capital Improvement The City's Improvement Program summarizes the Program improvements planned over the course of the 6- and 20-year planning horizon. The Improvement Program includes projects totaling over $12.8 million during the course of the next 6 years. Funding needs for the recommended improvements are consistent with the FCSGroup rate study that was recently completed, and with the rate increases for 2009 and 2010 adopted by Council in September 2008. 9 Financial Analysis The City's financial capacity to operate, maintain, and improve its water system was evaluated over the 6-year planning horizon and is sound, and includes rate increases consistent with those presented to the City Council as part of the cost of service analysis. -'\ Date: To: From: Subject: ~ORT ANGELES WAS H I N G TON, U. S. A. Utility Advisory Committee Memo November 10,2006 Utility Advisory Committee Michael Puntenney, Deputy Director of Operations P A WTP Computerized Maintenance Management System Summary: After a long and complex negotiation process with the National Park Service in October 2009, the City ultimately signed a transfer agreement for a $35 million water treatment plant as part of the Elwha River Ecosystem and Fisheries Restoration Act. One long-lead element in support of this new plant is the procurement of a Computerized Maintenance Management System. Recommendation: For information only, no action requested. Background/Analysis: After a long and complex negotiation process with the National Park Service (NPS) in October 2009, the City ultimately signed a transfer agreement for a $35 million Port Angeles Water Treatment Plant (P A WTP) as part of the Elwha River Ecosystem and Fisheries Restoration Act. In accordance with the most recent schedule provided to the City by NPS, this project is well ahead of schedule and the facility may be ready to undergo operational testing and be delivered to the City by late spring or early summer 2009. As part of the transfer agreement, funding included amounts for start-up costs for outfitting the new facility for furniture, appurtenances, software systems, tools, and the initial inventory of parts and supplies. One of the longest lead-time items to deploy in support of the P A WTP is the Computerized Maintenance Management System (CMMS). The system as envisioned, would be central to the Water Division's ability to leverage the existing ESRI GIS environment currently in use and provide the Utility with an efficient tool to manage facility and equipment infrastructure, resources, operations, maintenance work, and permit activities for the new plant. The system will be used to manage preventive maintenance, maintenance activities, maintaining the work and asset history of the plant, and interact directly with the plant's SCADA system. The CMMS will also incorporate the data from the entire potable water system including the Ranney well, reservoirs, transmission and distribution system, and other equipment so that a systems approach to managing this infrastructure can be realized. The estimated cost of this effort is $75,000 - $100,000. N:\UAC\Final\PAWTP CMMS.doc P A WTP CMMS November 10, 2008 Page 2 Due to the schedule for the construction project, and the amount of time needed to field and import all the necessary data for the equipment and systems, it is imperative that this project move forward as soon as possible. A schedule of the procurement process is included below. Staff will return to the Utility Advisory Committee in December to seek its recommendation to City Council for the contract award. PROCUREMENT SCHEDULE EVENT BY: SCHEDULE P A WTP CMMS Specification Briefing PWU Oct 29,2008 (to City Manager) \ Technical Demonstration Protocol Development Water Division Oct 26 - Nov 30 c UAC Briefing PWU Nov 10,2008 RFPs Solicited Contracts Office Nov 12,2008 Proposals Received: Contracts Office Dec 2, 2008 Evaluation of Proposals: (1 - 2 days) Tech Eval Board Dec 3 - 5, 2008 Recommendation for Tech Demo (1 - 3 vendors) Tech Eval Board Dec 5, 2008 (to Source Selection Committee) Tech Demo downloads available to vendors Contracts Office NLT Dec 5, 2008 UAC Update PWU Dec 9, 2008 Vendor Tech Demos (2 - 4 hours max each) Tech Eval Board NL T Dec 16, 2008 Evaluation Report Tech Eval Board NLT Dec 18,2008 (to Source Selection Committee - SSC) Recommendation of Award to City Council SSC Jan 6, 2009 (to Source Selection Committee) A ward of Contract Contracts Office Jan 15,2009 Contract Performance Vendor, IT, GIS, Feb - Mar 2009 Water Division Water Division upload of technical data Water Division Apr - May 2009 P A WTP Startup Testing Water Division May 2009 n,o,.....iRi /T'i' A IN. 'G/ 'EriLr E.""S' . 1::';' 'ft ,; " ,,:, ~ WAS H I N G TON, U. S. A. Utility Advisory Committee Memo Date: November 10,2008 To: Utility Advisory Committee From: Phil Lusk, Power Resources Manager Subject: Energy Independence Security Act of 2007 Consideration Summary: The City is required by the Energy Independence Security Act of 2007 to consider four new Electric Utility standards. The first step in the process is to formally commence the consideration no later than December 19,2008. Recommendation: Forward a favorable recommendation to City Council to 1) commence consideration of the standards, 2) set public hearing dates of November 17,2009 and December 15, 2009 to consider the standards, and 3) make a determination on the standards no later than December 19, 2009. Background/Analysis: In accordance with the Public Utility Regulatory Policies Act (PURPA) as amended by Section 1307 of the Energy Independence Security Act of2007 (EISA), all electric utilities in the United States of America must consider four new standards. The new standards that must be considered include: 1) an investment in a qualified "Smart Grid" system, 2) providing Smart Grid information to electric customers, 3) should the City conduct integrated resource planning, and 4) rate design modifications that promote energy efficiency. Although PURP A mandates the City must consider the standards, it allows the City Council to make a determination if it is appropriate to implement or decline each standard. PURP A requires the City to commence the consideration of the standards no later than December 19,2008. As part of the commencement of consideration, a public notice shall be provided. During the next year staff will be conducting an evaluation of each standard, including findings and recommendations. The evaluation will be presented to the Utility Advisory Committee next year at its November 10, 2009 meeting. City Council will be requested to formally consider the standards next year at its November 17,2009 meeting and make a determination on each standard at its December 15,2009 meeting. In accordance with PURP A, staff requests that the Utility Advisory Committee forward a favorable recommendation to City Council to commence consideration of the standards, set the public hearing dates, and advise City Council that a determination on each standard must be made no later than December 19,2009. Attachment A: Sections 532 and 1307 of Energy Independence Security Act of 2007 N:\UAC\Final\EISA Public Proceeding. doc ATTACHMENT A: Sections 532 and 1307 of Energy Independence Security Act of 2007 Sections 532 and 1307 of the Energy Independence Security Act of2007 establish four additional considerations (both numbered 16 and 17) for electric utilities under Section 111 (d) of the Public Utility Regulatory Policies Act of 1978. Section 532 deals with Utility Energy Efficiency Programs and Section 1307 deals with the Consideration of Smart Grid. Under these provisions, state regulatory authorities and certain nonregulated utilities 1 are to consider implementing these two new standards. Based on one source2, there is no specified consideration and determination time line for Section 532 and Section 1307 standard (16). For Section 1307 standard (17), state commissions and nonregulated utilities have up to one year after enactment (or until December 19,2008) to begin consideration of the standard and up to two years after enactment (or until December 19,2009) to make a determination. "Since these standards are closely related, and since some may argue that having no time line is not what Congress intended, states and nonregulated utilities may decide to place them on the same consideration and determination time line. This consolidates the time and effort involved in dealing with both standards and avoids a possible challenge that the state or utility failed to comply. The "failure to comply" PURP A provision was amended to include both standards labeled (16) and (17). If the state commission or nonregulated utility does not comply with the statute, then the standards must be raised for consideration in the first rate proceeding three years after enactment, or after December 19, 2010 for both of these standards. " Section 532 of the Energy Independence and Security Act of2007 amends PURPA 111(d)(16) by adding a new standard that requires consideration of "Integrated Resource Planning" for electric utilities. The new standard reads as follows: (16) INTEGRATED RESOURCE PLANNING.-Each electric utility shall- (A) integrate energy efficiency resources into utility, State, and regional plans; and (B) adopt policies establishing cost-effective energy efficiency as a priority resource. Section 532 of the Energy Independence and Security Act of2007 amends PURPA 111(d)(17) by adding a new standard that requires consideration of "Rate Design Modifications to Promote Energy Efficiency Investments." The statute states: (17) RATE DESIGN MODIFICA nONS TO PROMOTE ENERGY EFFICIENCY INVESTMENTS.- (A) IN GENERAL.- The rates allowed to be charged by any electric utility shall- I These PURP A provisions apply to electric utilities with annual retail sales in excess of 500 million kilowatt hours (kWh). As defined under PURP A, a "nonregulated electric utility" is a utility that is not regulated at the state level by a state public utility commission or other state agency, authority or body. 2 Reference Manual and Procedures for Implementation of the "PURP A Standards" in the Energv Independence and Security Act of 2007. See: http://www .naruc.org/Publications/EISAStandardsManualFINAL. pdE (i) align utility incentives with the delivery of cost-effective energy efficiency; and (ii) promote energy efficiency investments. (B) POLICY OPTIONS.-In complying with subparagraph (A), each State regulatory authority. and each nonregulated utility shall consider- (i) removing the throughput incentive and other regulatory and management disincentives to energy efficiency; (ii) providing utility incentives for the successful management of energy efficiency programs; (iii) including the impact on adoption of energy efficiency as 1 of the goals of retail rate design, recognizing that energy efficiency must be balanced with other objectives; (iv) adopting rate designs that encourage energy efficiency for each customer class; (v) allowing timely recovery of energy efficiency-related costs; and (vi) offering home energy audits, offering demand response programs, publicizing the financial and environmental benefits associated with making home energy efficiency improvements, and educating homeowners about all existing Federal and State incentives, including the availability of low-cost loans, that make energy efficiency improvements more affordable. SEC. 1307. STATE CONSIDERATION OF SMART GRID. (a) Section 111(d) of the Public Utility Regulatory Policies Act of 1978 (16 US.C. 2621(d)) is amended by adding at the end the following: "(16) CONSIDERATION OF SMART GRID INVESTMENTS.- "(A) IN GENERAL.-Each State shall consider requiring that, prior to undertaking investments in nonadvanced grid technologies, an electric utility of the State demonstrate to the State that the electric utility considered an investment in a qualified smart grid system based on appropriate factors, including- "(i) total costs; "(ii) cost-effectiveness; "(iii) improved reliability; "(iv) security; "(v) system performance; and "(vi) societal benefit. "(B) RATE RECOVERY-Each State shall consider authorizing each electric utility of the State to recover from ratepayers any capital, operating expenditure, or other costs of the electric utility relating to the deployment of a qualified smart grid system, including a reasonable rate of return on the capital expenditures of the electric utility for the deployment of the qualified smart grid system. "(C) OBSOLETE EQUIPMENT.-Each State shall consider authorizing any electric utility or other party of the State to deploy a qualified smart grid system to recover in a timely manner the remaining book-value costs of any equipment rendered obsolete by the deployment of the qualified smart grid system, based on the remaining depreciable life of the obsolete equipment. "(17) SMART GRID INFORMATION.- "(A) STANDARD.-All electricity purchasers shall be provided direct access, in written or electronic machine-readable form as appropriate, to information from their electricity provider as provided in subparagraph (B). "(B) INFORMATION.-Information provided under this section, to the extent practicable, shall include: "(i) PRICES.-Purchasers and other interested persons shall be provided with information on- "(I) time-based electricity prices in the wholesale electricity market; and "(II) time-based electricity retail prices or rates that are available to the purchasers. "(ii) USAGE.-Purchasers shall be provided with the number of electricity units, expressed in kWh, purchased by them. "(iii) INTERVALS AND PROJECTIONS.-Updates of information on prices and usage shall be offered on not less than a daily basis, shall include hourly price and use information, where available, and shall include a day-ahead projection of such price information to the extent available. "(iv) SOURCES.-Purchasers and other interested persons shall be provided annually with written information on the sources of the power provided by the utility, to the extent it can be determined, by type of generation, including greenhouse gas emissions associated with each type of generation, for intervals during which such information is available on a cost-effective basis. "(C) ACCESS.-Purchasers shall be able to access their own information at any time through the Internet and on other means of communication elected by that utility for Smart Grid applications. Other interested persons shall be able to access information not specific to any purchaser through the Internet. Information specific to any purchaser shall be provided solely to that purchaser. ' , (b) COMPLIANCE.- (1) TIME LIMITATIONS.-Section 112(b) of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622(b)) is amended by adding the following at the end thereof: "(6)(A) Not later than 1 year after the enactment of this paragraph, each State regulatory authority (with respect to each electric utility for which it has ratemaking authority) and each nonregulated utility shall commence the consideration referred to in section 111, or set a hearing date for consideration, with respect to the standards established by paragraphs (17) through (18) of section 1 11 (d)." "(B) Not later than 2 years after the date of the enactment of this paragraph, each State regulatory authority (with respect to each electric utility for which it has ratemaking authority), and each nonregulated electric utility, shall complete the consideration, and shall make the determination, referred to in section 111 with respect to each standard established by paragraphs (17) through (18) of section 111 (d).". (2) FAILURE TO COMPL Y.-Section 112( c) of the Public Utility Regulatory Policies Act of 1978 (16 U.S.c. 2622(c)) is amended by adding the following at the end: "In the case of the standards established by paragraphs (16) through (19) of section 111 (d), the reference contained in this subsection to the date of enactment of this Act shall be deemed to be a reference to the date of enactment of such paragraphs.". (3) PRIOR STATE ACTIONS.-Section 112(d) of the Public Utility Regulatory Policies Act of 1978 (16 U.S.c. 2622(d)) is amended by inserting "and paragraphs (17) through (18)" before "of section 111(d)". Date: To: From: Subject: ~ORTANGELES WAS H I N G TON, U. S. A. Utility Advisory Committee Memo November 10,2008 Utility Advisory Committee Phil Lusk, Power Resources Manager Morse Creek License Amendment Summary: The City is required to have a new Clean Water Act 401 Certification issued by the Washington State Department of Ecology as a component of its Federal Energy Regulatory Commission license amendment to use new minimum instream flows at the Morse Creek Hydroelectric Project. A draft order for the Certification was provided on October 31, 2008, which must be acted on by the Department of Ecology no later than December 23,2008. Recommendation: For information only, no action requested. Background/Analysis: The City is required to have a new Clean Water Act 401 Certification issued by the Washington State Department of Ecology (DOE) as a component of its Federal Energy Regulatory Commission license amendment to use new minimum instream flows at the Morse Creek Hydroelectric Project (Project). On October 31, 2008, the DOE provided a Notice of Draft Order for a 401 Water Quality Certification (attached) for the Project. The draft order includes the following sections: 1. Nature of Project 2. Findings 3. General Requirements 4. Flow 5. Construction Projects, Miscellaneous Discharges, and Habitat Modifications 6. Order A 30-day comment period was provided and the DOE is anticipated to make a decision to approve, condition, or deny the certification by December 23,2008. Attachment: Notice of Draft Order for a 401 Water Quality Certification N:\UAC\Final\Morse Creek License Amendment.doc STATE OF WASHINGTON DEPARTMENT OF ECOLOGY October 31, 2008 PO Box 47775 -,O/ymp;., W"h;ogtoo 9B504-7775 - (360) 407-1OJ ' Utl ~ ~;~ {, Ls V/ ,~ U" , , . b' '\Y b NOV 5 2008 w Mr. Larry Dunbar, Deputy DireCtor Of Power Resources Port Angeles City Light Department PO Box 1150 321 E 5th St Port Angeles, W A 98362-3206 City of Port AfiRe/os Pilblle Works and Utilities Depi dlglfleellllg Services Division Re: Notice of Draft Order for a 401 Water Quality Certification, Dear Mr. Dunbar: The 401 certification for the City of Port Angeles, Morse Creek hydroelectric facility is ready for review. You have expressed interest in the past in commenting on this project. Please take the time to review the enclosed information and the draft 401 certification then consult the information notice if you wish to comment. If you need more information, I can be reached at 360-407-6554 or bye-mail at esch461@ecy.wa.gov. Sincerely ~/ Eric Schlorff Southwest Regional Office Water Quality Program ES:kd Enclosures .~". o October 31, 2008 Notice for Review of Draft Water Quality Certification for State of Washington Water Quality Certification PROJECT: Morse Creek Hydroelectric Project, FERC No. 6461 LOCATION: Morse Creek Hydropower Project, which is located on Morse Creek in Clallam County, approximately two miles south east of Port Angeles; Washington APPLICANT: City of Port Angeles, City contact: Philip Lusk 360-417-4703, e-mail plusk@cityofpa.us Background: the enclosed draft order for a section 401 certification amends the original certification issued in 1985. The City of Port Angeles began operating this 465 kw facility under FERC license in . 1985. However, the City shut down hydropower operations in 1998 and began operations again in 2004. In 2000 the City began negotiations with the ElwhaKlallam Tribe, the Washington State Department of Fish and Wildlife and,the Department of Ecology to amend the certification to include additional minimum flows to protect endangered bull trout, Chinook salmon and other fish. In this draft certification, Ecology updated the flow conditions and the water quality standards applicable to this project. ' Ecology received the application for the 401 certification on December 24,2007. Ecology has one year to act on the certification and therefore must act by December 23, 2008. The City of Port Angeles published notice of the application in the Peninsula Daily News on August 17,2008 and August 24,2008 as required under federal law. . Now is your chance to comment on the draft certification' order. Ecology is providing you 30 days to comment on this draft certification. Evaluation: the decision to issue, deny or condition the Water Quality Certification (WQq will be based on the following: the proposed project must comply with the applicable provisions of the federal Clean Water Act and the State Water Quality Standards. Comment and Review Period: Ecology is soliciting comments from the public, state, and local agencies, officials and other interested parties who have expressed interest in the certification and FERC license. Any comments received wiIIbe considered in Ecology's decision whether to approve, condition, or deny a certification. Comments should be sent to: Department of Ecology Attn: Eric Schlorff PO Box 47775 Olympia, WA 98504-7775 or Faxed to 360-407-6305 All comments must be received by Ecology by 5:00 PM on December 1,2008. If you have questions about the project you may call Eric Schlnrff at 360-407-6554 or e-mail at esch46I @ecy.wa.gov. Appeals: If the water quality certification is issued, any person aggrieved may obtain review thereof by appeal. The applicant can appeal up to 30 days after receipt of the certification, and all others can appeal up to 30 days from the date of the certification approval. The appeal must be sent to the Washington Pollution Control Hearings Board, PO Box 40903, Olympia W A, 98504-0903. Concun"entIy, a copy of the appeal must also be sent to the Department of Ecology, Appeals Coordinator, PO Box 47608, Olympia WA 98504-7608. These procedures are consistent with the provisions of Chapter 43.21B RCW and the rules and regulation adopted there under. The Department of Ecology is an Equal Opportunity and Affirmative Action employer and shall not discriminate on the basis of race, creed, color, national origin, sex, marital status, sexual orientation, age, religion, or disability as defined by applicable state and/or federal regulations or statutes. If you have special accommodation needs, please contact Ecology's TDD Headquarters at 360-407-6006. . Draft-Draft-Draft STATE OF WASHINGTON DEPARTMENT OF ECOLOGY IN THE MA ITER OF GRANTING A WATER QUALITY CERTIFICATION TO City of Port Angeles for Morse Creek Hydropower Project with Chapter 90.48 RCW and the Rules and Regulations of the Department of Ecology ) I ) I ) ) ) ) ) ORDER No. 6106 To: Mr. Larry Dunbar City of Port Angeles 321 East Fifth Street PO Box 1150 Port Angeles, W A 98362-0217 This order amends the Clean Water Act 401 Certification issued to the Port Angeles Morse Creek Hydroelectric Project (FERC No. 6461) on August 8, 1985, for operation of the Morse Creek Hydroelectric Project. This order is issued under the provisions of Chapter 90.48 RCW and Chapter 173- 201A WAC. Through this order the certification is hereby amended. 1.0 Nature of Project The Port Angeles Morse Creek project is a small 0.465 MW hydroelectric facility located on Morse Creek, which drains north to the Strait of Juan de Fuca and is approximately 1.5 miles east of Port Angeles, Washington. The Federal Energy Regulatory Commission (FERC) issued a license for the project in, 1985. The project is owned by, managed and licensed to the City of Port Angeles, Washington. Major project features include: . . (a) a diversion dam (lO-foot high by 25-foot wide) located at river mile (RM) 7.2; (b) an intake structure with fixed fish screens and trash rack; (c) a 750-foot long concrete tunnel, an 11,400-foot long buried 24-inch diameter pipeline, and a 1,500-foot long high pressure penstock leading to the powerhouse at RM 4.3; and (d) a single Pelton wheel turbine with a generating capacity of 465 kilowatt (kW). A natural falls at RM 4.9 divides the watershed, posing an impassable barrier to anadromous fish. A resident population of rainbow trout occurs above the falls. The City operates the project in a run-of-river mode and it has no useable storage capacity. Consequently, the project can only operate when the natural river flow is significantly greater than the required bypass reach minimum flow. 2.0 Findings. Project background information related to the certification amendment 1. The instream flow agreement for the Morse Creek increases flows to protect habitat for Chinook Salmon and other salmonids in the lower reach and for bull troutand other resident trout above Draft-Draft-Draft and below natural obstructions. The bypass reach between the diversion dam and the powerhouse is approximately 3.0 miles long. A waterfall, considered impassable to anadromous salmon, is located at approximately river mile 5.0, resulting in a 0.7 mile anadromous reach affected by the hy.dropower diversion. To protect the resident trout populations in the bypass reach as well as anadromous fish potentially using the 0.7-mile lower section, this certification stipulates minimum flows as show in table 1 in section 4.0 below. The City of Port Angeles must meet these minimum flows. 2. These flows were proposed and agreed to by the Department of Ecology, The Washington State. Department ofFish and Wildlife, the Lower Elwha Klallam Tribe and the City of Port Angeles. 3.. The City operator determines the water level at the diversion weir using a sonic sensor. The actual flow must be interpreted by the operator from a chart based on gauged flows. The operator must adjust the turbine load to meet the minirimm flow requirement and to control ramping rates in the reach below the tailrace. 4. The project was shut down 1998 due to maintenance costs and the price of electric power revenue and restarted it} 2004. The City announced its intention to restart the project in October 2000 and notified FERC and other federal and state agencies at that time. . 5. The lower Elwha Klallam Tribe, Washington Departments of Ecology, and Fish and Wildlife conducted additional consultation and studies, prior to restarting the project, to increase flows during all months and to protect salmonid habitat. 6. The Licensee evaluated the project for both temperature and dissolved gas and the project did not appear to violate or have potential to violate the criteria for these parameters. Morse Creek flows north from the Olympic Mountain foothills and the bypass reach is well shaded which keeps the temperature low. 3.0 General Requirements 1) The project shall comply with all water quality standards approved by the Environmental Protection Agency (currently codified in ch. 173-20 IA WAC), ground water quality standards (cwrently codified in ch. 173-200 WAC), and sediment quality standards (currently codified in ch. 173-204 WAC) and other appropriate requirements of state law. 2) In the event of changes or amendments to the state water quality, ground water quality, or sediment standards, or changes in or amendments to the state Water Pollution Control Act (RCW 90.48), or changes in or amendments to the Clean Water Act, such 'provisions, standards, criteria, or requirements shall apply to this project and any attendant. agreements, orders or permits. Ecology will notifY the Licensee through an Administrative Order of any such changes or amendments applicable to its project. 3) Discharge of any solid or liquid waste to the waters of the state of Washington without prior approval from Ecology is prohibited. 4) The Licensee shall obtain Ecology review and approval before undertaking any change to the project or project operations that might violate water quality or affect compliance with any applicable water quality standard (including designated uses) or other appropriate requirement of state law. 5) This Certification-Order does not exempt the Licensee from compliance with other statutes and codes administered by federal, state, and local agencies. Draft-Draft-Draft 6) A Hydraulic Project Approval (HPA) (under 77.55 RCW) shall be acquired from the Washington State Department of Fish and Wildlife (WDFW) prior to any work in waters of the State. 7) Ecology retains the right, by further Order, to modify schedules or deadlines provided under this Order or provisions it incorporates. 8) Ecology retains the right by Administrative Order to require additional monitoring studies or measures if it detennines there is likelihood that violations of water quality standards or other appropriate requirements of state law have occurred or may occur, or insufficient information exists to make such determination. 9) Ecology reserves the right to amend this Order if it determines that the provisions hereof are no longer adequate to provide reasonable assurance of compliance with applicable water quality standards or other appropriate requirements of State law. Any such amended Order shall take effect immediately upon issuance, unless otherwise provided in the amended Certification- Order, and may be appealed to the Pollution Control Hearings Board (PCHB) under ch. 43.21B RCW. 10) Ecology reserves the right to issue orders, assess or seek penalties, and to initiate legal actions in any court or forum of competent jurisdiction for the purposes of enforcing the requirements of this Order. 11) The conditions of this Order shall not be construed to prevent or prohibit the Licensee from either voluntarily or in response to legal requirements imposed bya court, the FERC, or any other body with competent jurisdiction, taking actions which will provide a greater . level of protection, mitigation, or enhancement of water quality or of existing or designated uses. 12) Copies of this Order and associated permits, licenses, approvals and other documents shall be kept on the Project site and made readily available for reference by the Licensee, its contractors and consultants, and by Ecology. 13) The Licensee shall allow Ecology access to inspect the project and project records required by this Order for the purpose of monitoring compliance with its conditions. Access shall occur after reasonable notice, except in emergency circumstances. 14) The Licensee shall, upon request .by Ecology, fully respond to all reasonable requests for materials to assist Ecology in making detenninationsunder this Order and any resulting rulemaking or other process. . 15) Any work that is out of compliance with the provisions of this Order, or conditions that result in distressed, dying or dead fish, or any discharge of oil, fuel, or che1TIi~:lls into state waters, or onto land with .. a potential for entry into state waters, or violation of turbidity criteria is prohibited. Ifthese conditions occur, the Licensee must immediately take the following actions: a) Cease operations at the location of the violation to the extent such operations may reasonably be causing or contributing to the problem. b) Assess the cause of the water quality problem and take appropriate measures to correct the problem and/or prevent further environmental damage. c) Notify Ecology of the failure to comply. Oil or chemical spill events shall be reported immediately to Ecology's 24-Hour Spill Response Team at (800) 258-5990 within 24 hours. Other non-compliance events shall be reported to Ecology's Federal Permit Manager at (800) 424-8802. d) Submit a detailed written report to Ecology within five (5) days that describes the nature of the event, corrective action taken and/or planned, steps to be taken to prevent a recurrence, results of any samples taken, and any other pertinent information. e) Observed violations at the project shall be highlighted in the annual monitoring report. Draft-Draft-Draft 16) The project operation must meet the temperature requirements for supplemental spawning and incubation criteria listed in WAC 173-20IA-200 (Salmon and Trout Spawning) for August 1 through June 15, which is a maximum temperature of 130C. For the rest of the year the project must meet a maximum temperature of 160C, and for all other parameters throughout the year, the project must meet the conditions listed in WAC 173-201A-200 (Core Summer Salmonid Habitat). Compliance with these requirements does not relieve the Licensee from responsibility to maintain continuous compliance with the terms and conditions of this Certification-Order or the resulting liability from failure to comply. 4.0 Flow Licensee must discharge the following continuous minimum instreamflows from the Morse Creek Project diversion weir, for the protec~ion of aquatic resources,in Mor~e Creek: Table 1: Minimum Instream Flows measured at the diversion dam. Month Hydro Operational Instream Flow (cfs) January 48 February 1-14 48 February 15-29 50 March . 50 April 55 May 61 June 61 July 1-15 61 July 16-31 50 August 1-15 50 August 15-31 58 September No Generation October 1-15 69 October 16-31 60 November 48 December 48 The minimum flow may be temporarily modified if required by operating emergencies beyond the control of the Licensee, or for short periods upon mutual agreement between the Licensee and Ecology. Ecology reserves the authority to require modification of the minimum flows and ramping rates if new information or analysis shows that the flows are inadequate to protect designated uses. Draft-Draft-Draft The licensee must not exceed the following ramping rates in the anadromous portion of Morse Creek: . Day Rate Two inches per hour Night Rate . One inch per hour 5.0 Construction Projects, Miscellaneous Discharges, and Habitat Modifications The following applies to all in-water or over-water work related to the project that can impact surface- water or ground-water quality. This includes, but is not limited to, construction, operation, and maintenance of fish screens, fish collection structures,. generation, ,turbines, penstocks, the tailrace, transportation facilities, portable toilets, transmission corridors, structures, and staging areas. This also includes emergencies for all activities related to project operation. 1. If water quality excursions are predicted as being unavoidable during construction or maintenance of a project, the Licensee must apply for a short-tenn modification in writing to Ecology at least three months prior to project initiation. If any project has a long-term impact on a regulated water quality parameter, characterization monitoring must be performed for the impacted parameter(s), and a monitoring plan must be outlined in the Water Quality Protection Plan discussed below. This may require additional management practices to minimize impacts over the license period. 2. A Water Quality Protection Plan (WQPP) must be prepared, and followed, for all project-related work that is in--or near-water that has the potential to impact surface, and/or groundwater quality. The WQPP must include control measures to prevent contaminants from entering surface water and ground water, and must include, but not be limited to, the following elements: a) A Stormwater Pollution Prevention Plan (SWPPP) must specify the Best Management Practices (BMPs) and other control measures to prevent contaminants entering the project's surface water and groundwater. The SWPPP shall address the pollution control measures for the Licensee's activities that could lead to the discharge of stormwater or other contaminated water from upland areas. The SWPPP must also specify the management of chemicals, hazardous materials and petroleum (spill prevention and containment procedures), including refueling procedures, the measures to take in the event of a spilt and reporting and training requirements. : b) An In-Water-Work Protection Plan (lWWPP) must be consistent with the SWPPP and must specifically address the BMPs and other control measures for the Licensee activities that require work within surface waters. Turbidity and dissolved oxygen must be monitored upstream and downstream of the location where in-water construction occurs. Samples must be taken at least once each day during construction in or adjacent to any water bodies within the project area that may be affected by the construction. ,The IWWPP must include all water quality protection measures consistent with a Hydraulic Project Approval (HP A) for the project. c) The WQPP must include procedures for monitoring water quality, actions to implement the plan if a water quality excursion occurs, and procedures for reporting any water quality violations to Ecology. The WQPP. must include all water quality protection measures consistent with an HP A for the project. The Licensee must submit the WQPP to Ecology for review and approval at least three months prior to project i!litiation, and the on-site Draft-Draft-Draft construction manager must possess a copy of the WQPP, and have it available for review by Ecology staff, whenever construction work is under way. d) When a construction project meets the coverage requirements of the National Pollution Discharge Elimination System (NPDES) permit and State Waste Discharge General Permit for stormwater discharges associated with construction activity, the Licensee must either, at Ecology's discretion, apply for this permit and comply with the terms and conditions of the permit or apply for and comply with the terms of an individual NPDES permit. 3. . Best Management Practices a) Work in or near the diversion dam, water behind the dam, the river, or any wetlands must include all reasonable measures to minimize the impacts of construction activity on waters of the state. Water quality constituents of particular concern are turbidity, suspended sediment, settleable solids, oil and grease, and pH. These measures include the use of Best Management Practices (BMPs) to control erosion and sedimentation, proper use of chemicals, oil and chemical spill prevention and control, clean-up of surplus construction supplies, and other solid wastes. b) During construction, all necessary measures must be taken to minimize the disturbance of existing riparian, wetland or upland vegetation. c) All construction debris must be properly disposed of on land so that the debris cannot enter a waterway or cause water quality degradation to any state waters. Retention areas or swales must be used to prevent discharging of water from construction placement areas. d) The Licensee must ensure that any fill materials that are placed for proposed habitat improvement in any waters ofthe state do not contain toxic materials in toxic amounts. 5.1 Oil Spill Prevention and Control 1) The Licensee must not allow discharge of oil, fuel, or chemicals into waters of the state, or onto land with a potential for entry into waters of the state as prohibited by Ch. 90.56 RCW and Ch. 90.48 RCW. 2) The Licensee must contain and remove from the water, visible floating oils released from construction or project operation. The Licensee must take the following actions: a) In the event of a discharge of oil, fuel or chemicals into state waters, or onto land with a potential for entry into state waters, immediately begin and complete containment and clean- up efforts. Clean-up will take precedence over normal workand must include proper disposal of any spilled material and used clean-up materials. . b) Do not use emulsifiers or dispersants in waters of the state without prior approval from Ecology, Southwest Regional Office. c) WithIn three months of receiving the amended license from FERC,establish an Ecology- approved on-site spill cleanup material inventory. Maintain this on~site inventory and a complete inventory list. d) Project Operators must be familiar with and trained in the use of oil spill cleanup materials. . In the event of an oil spill, properly dispose of used/contaminated materials and oil and as soon as possible restock new supplies. Include records. of proper disposal in the oil consumption records and keep copies of disposal records of contaminated cleanup supplies on-site for inspection. Draft-Draft-Draft e) Keep SPCC Plans as required and historical spill records on-site. Provide these to Ecology immediately upon request. f) Identity and map floor drains. Post these maps at the Project in a conspicuous location for use by Operators and other personnel in the event of an oil spill. Seal floor drains that are rio longer needed. 3) Transformers a) Transformer containment area sUlfaces must be impervious. Conduct periodic inspections and re-surface areas, fill cracks, caulk metal plate footings or otherwise ensure that containment areas will contain all spill fluids. b) Obtain prior approval from Ecology before breaching containment areas for reasons other than containment area maintenance. c) Conform to industry standards for protecting water quality and preventing and containing spills when transp~rting transf~:mners and transformer oil. '. d) Conduct weekly inspections of transformer containment area including an inspection of the drains for freeze-up conditions. Remove any observed rainwater pooling in the containment areas. 4) Oil, fuel and chemical storage containers, containment areas, and conveyance systems a) Provide proper containment around each storage container (including transformers and emergency generator fuel supplies) or around a combination of storage containers as appropriate. b) Regularly check all fuel hoses, oil drums, oil or fuel transfer valves and fittings, etc, for drips and leaks. Maintain and properly store them to prevent spills into state waters. c) Do not refuel equipment within 50 feet of rivers, creeks, wetlands, or other waters of the state. d) The Licensee must implementthe BMPs for spills of oil or hazardous substances from the Department of Ecology's Stormwater Management Manual for Western Washington (SWMM) or equivalent manual. e) Contain wash water containing oils, grease, or other hazardous materials resulting from wash- down of equipment or working areas for proper disposal, and do not discharge this water into state waters. 6.0 Order Any person who fails to comply with any provision of this Order No. 4002 shall be liable under the Clean Water Act for a penalty of up to twenty (20) thousand dollars per day and under the state Water Control Act, for a penalty of up to ten (10) thousand dollars per day per violation or such other amount as may be authorized under state law as exists now or may be amended during the term of the license. This order is based on the ,currently available data and analysis for different parameters of concerns. Ecology reserves the right to make any further modifications to this document based upon any future TMDL findings. . Ecology retains continuing jurisdiction to make modifications hereto through supplemental order if it appears necessary to protect the public interest. You have the right to appeal this Order to the Pollution Control Hearings Board. }>ursuant to chapter 43.21 BRCW, your appeal must be filed with the Pollution Control Hearings Board, and served on the Department of Ecology, within thirty (30) days of the date of your receipt of this document. , . Draft-Draft-Draft To appeal this order, your notice of appeal must contain a copy of the Ecology Order you are appealing. You must file your appeal with the Pollution Control Hearings Board. Mail your appeal to: The Pollution Control Hearings Board P.O. Box 40903 Olympia W A 98504-0903 OR Deliver your appeal in person to: The Pollution Control Hearings Board 4224 6th Ave. SE Rowe Six, Bldg. 2 Lacey, W A, 98504-0903 Your appeal must also be served on The Department of Ecology Appeals Coordinator P.O. Box 47608 Olympia, WA 98504-7608 In addition, please send a copy of your appeal to: Ms. Tricia Miller Enforcement Coordinator Department of Ecology 3190 l60th Ave. SE Bellevue, W A 98008-5452 For additional information: Environmental Hearings Office Website: htto://www.eho.wa.gov Your appeal alone will not stay the effectiveness of this Order. Stay requests must be submitted in accordance with RCW 43.21B.320. These procedures are consistent with Ch. 43.21B RCW. DATED , at Olympia, Washington Garin Schrieve, P.E. Water Quality Section Manager Northwest Regional Office ~I ~o( :R: /1' ''Pl' " !.'......... N: IGf' ~E: :iL: .E: :is/ Ii !.-.-' _.y",'u. ,__. .'. ' __-', '..,ju'__!','; ",,' ,j ',./.-/ ! t" ..--........, .,....., ,_......, WAS H I N G TON, U. S. A. Utility Advisory Committee Memo Date: November 10, 2008 To: Utility Advisory Committee From: Larry Dunbar, Deputy Director of Power Systems Subject: Capital Facilities Plan and Transportation Improvement Program Amendment Summary: Staff proposes to add four (4) additional projects to the City's 2008-2014 Capital Facilities Plan and Transportation Improvement Program. The additional projects include: 1) Conservation Voltage Reduction; 2) West UGA Basin 1 Sewer Extension; 3) West UGA Basin 2 Sewer Extension, and; 4) West UGA Basin 3 Sewer Extension. Recommendation: Forward a favorable recommendation to City Council to 1) set a public hearing on December 2, 2008, and 2) pass a resolution that amends the 2008-2014 Capital Facilities Plan and Transportation Improvement Program to include four additional projects. Background/Analysis: On June 24, 2008 the City Council passed Resolution No. 6-08, a Capital Facilities Plan and Transportation Improvement Program for 2008-2014. Resolution No. 6-08 approved the 2008-2014 Capital Facilities Plan and Transportation Improvement Program. The resolution needs to be amended to include four new projects: 1) Conservation Voltage Reduction; 2) West UGA Basin 1 Sewer Extension; 3) West UGA Basin 2 Sewer Extension, and; 4) West UGA Basin 3 Sewer Extension as detailed in the attachment. Further, the proposed amended Capital Facilities Plan and Transportation Improvement Program for 2008-2014 remains consistent with the City's Comprehensive Plan. Total funds allocated to Conservation Voltage Reduction are $600,000, of which $180,000 is programmed from the conservation fund and $420,000 will be reimbursed from the Bonneville Power Administration's Conservation Rate Credit program. The sewer extension projects will be reimbursed by developers and will be addressed in greater detail during the 2009-2015 Capital Facilities Plan. Staff requests that the Utility Advisory Committee forward a favorable recommendation to City Council to pass a resolution that amends the 2008-2014 Capital Facilities Plan and Transportation Improvement Program to include four additional projects. Attachment: Capital Facilities Plan Project Worksheets N:\UAC\Final\CFP Project Additions.doc CAPITAL FACILITIES PLAN PROJECT Title: Conservation Voltage Reduction Project #: CL06-2008 Project Description Estimated Project Costs The fIrst phase of the project would include conservation voltage reduction PlanninglDesign: $ 90,000 (CVR) equipment at one or two electrical substations. The objective of CVR is Land/Right-of- Way: Construction: 510,000 to save energy and reduce demand by lowering the voltage within acceptable Other: limits. Voltage will not be lowered below allowable standards as established Total: $ 600,000 by regulatory agencies and ANSI standard C 84.1. Estimated Project Funding The results of the fIrst phase of this project will include an evaluation of the Reserves: $ 180,000 technology prior to installation of CVR in all substations. As part of the Contributions: evaluation, customers will be surveyed to determine if they detected the lower Grants: 420,000 Bonds: voltage and if it was acceptable. Loans: CVR is a possible way for the Electric Utility to signifIcantly reduce the Utilities: - impacts of tiered rates, which should be in effect after September of 20 11. General Fund Current: Unknown: Total: $ 600,000 Yearly Expense Summary - CapitallNet Operating Prior Years I 2008 I 2009 I 2010 I 2011 1 2012 I 2013 I 2014 Proiect Total $ - I $ - I $ 600,000 I $ - I $ - I $ - $ -1$ - I $ 600,000 Year Construction Comolete/Ooerational: 2009 Ooerating Cost Amount: Right of Way: No SEP A Required: No Other Permits: No City Priority: Legal Mandate: No Concurrency: No Contract: Yes Department: Public Works & Utilities Division: Light Contact: Terry Dahlquist Cost Center: Div. Priority: 1 Justification: Based on a preliminary evaluation, a 4% to 6% voltage reduction at a substation is estimated to reduce customer energy use by 2.8% to 5.4%. A comprehensive evaluation will be completed before proceeding, which will be submitted to the Bonneville Power Administration along with a project proposal. If the project proposal is approved, the City anticipates that up to 70% of the cost to install CRY would be reimbursed by the Bonneville Power Administration with the remaining 30% provided by the City's conservation fund. Impact if not executed: Under tiered rates, the City's cost of power may increase from $430K to $680K in 2011 and would continue to climb in future years based on load growth. If CVR is implemented throughout the distribution system, wholesale energy savings would range from $330K to $495K. Additional demand savings may be possible. Date Revised: 10/21/2008 Title: Conservation Voltage Reduction Project #: CL06-2008 Picture / Area Map Port Angeles Substations I ;6 N 3.400 Feet 0" I'ORT AN ,,~ <>:" ~<r ~- w.....-.. - .... "--- ~ CAPITAL FACILITIES PLAN PROJECT Title: West UGA Basin 2 Sewer Extension Project #: WW07-2008 Project Description Estimated Project Costs Construction of approximately 15,700 feet of 8" gravity sewer main, 5,100 feet Planning/Design: $ 900,000 of 8" pressure sewer main, 2,850 feet of 3" pressure main, one 700 gpm pump Land/Right-of-Way: 100,000 Construction: 6,100,000 station and one 100 gpm lift station. For one of three sewage collection basins Other: in the West Urban Growth Area. Entire project, or potions of it in phases, Total: $ 7,100,000 likely to be funded through developer's reimbursement agreement Estimated Project Funding Reserves: Contributions: 7,100,000 Grants: Bonds: Loans: Utilities: - General Fund Current: Unknown: Total: $ 7,100,000 Yearly Expense Summary - CapitallNet Operating Prior Years I 2008 I 2009 I 2010 I 2011 I 2012 I 2013 I 2014 Proi ect Total $ - I $ - I $ - I $ -1 $ 1,000,000 I $ 6,100,000 I $ -1$ - $ 7,100,000 Year Construction Comolete/Operational: 2012 Operating Cost Amount: Right of Way: Yes SEP A Reauired: Yes Other Permits: No City Priority: Legal Mandate: No Concurrency: No Contract: No Department: Public Works & Utilities Division: Wastewater Contact: Steve Sperr Cost Center: Div. Priority: Justification: The sewer facility plan was amended in 2005 and approved by Department of Ecology. To address in a planned, comprehensive manner the extension of sewer collection service into the City's WUGA. This project addresses basin 1, on of four basins established in the WUGA. Sewer service to basin 1 was completed under the project "Utility Extension to WUGA" in 2005. Impact if not executed: This project may be done in phases, and does not necessarily have to be done in any order relative to the WUGA basins 3 and 4. However, if development of sewer in basin 2 does not follow approved facility plan, plan will have to be amended and approved by Ecology. Date Revised: 11/7/2008 Title: West UGA Basin 2 Sewer Extension Project #: WW07-2008 Picture / Area Map Intentionally Left Blank Of; pORT AN "'~~ 0_~~ ~- L...... - .... '- ~ CAPITAL FACILITIES PLAN PROJECT Title: West UGA Basin 3 Sewer Extension Project #: WW09-2008 Project Description Estimated Project Costs Construction of approximately 7,400 feet of 8" gravity sewer main, 4,600 feet Planning/Design: $ 800,000 of 6" pressure sewer main, 4,000 feet of 3" pressure sewer main, one 450 gpm Land/Right -of-Way: 100,000 Construction: 5,200,000 pump station and three 100 gpm lift stations. For one of three sewage Other: collection basins in the WUGA. Entire project, or portions of it in phases, Total: $ 6,100,000 likely to be funded through developer reimbursement agreement. Estimated Project Funding Reserves: Contributions: 6,100,000 Grants: Bonds: Loans: Utilities: - General Fund Current: Unknown: Total: $ 6,100,000 Yearly Expense Summary - Capita/INet Operating Prior Years I 2008 I 2009 I 2010 I 2011 I 2012 2013 I 2014 I Proiect Total $ - I $ - I $ - I $ - I $ - I $ 900,000 I $ 5,200,000 I $ - $ 6,100,000 Year Construction Complete/Operational: 2013 Operating Cost Amount: Right of Way: Yes SEP A Required: Yes Other Permits: No City Priority: Legal Mandate: No Concurrency: No Contract: Yes Department: Public Works & Utilities Division: Wastewater Contact: Steve Sperr Cost Center: Div. Priority: Justification: The sewer facility plan was amended in 2005 and approved by Department of Ecology. To address in a planned, comprehensive manner the extension of sewer collection service into the City's WUGA. This project addresses basin 1, on of four basins established in the WUGA. Sewer service to basin 1 was completed under the project "Utility Extension to WUGA" in 2005. Impact if not executed: This project may be done in phases, and does not necessarily have to be done in any order relative to the WUGA basins 3 and 4. However, if development of sewer in basin 2 does not follow approved facility plan, plan will have to be amended and approved by Ecology. Date Revised: 111712008 Title: West UGA Basin 3 Sewer Extension Picture / Area Map Project #: WW09-2008 Intentionally Left Blank CAPITAL FACILITIES PLAN PROJECT Title: West UGA Basin 4 Sewer Extension Project #: WWll-2008 Project Description Estimated Project Costs Construction of approximately 7,400 feet of 8" gravity sewer main, 1,400 feet Planning/Design: $ 350,000 of 6" pressure sewer main, one 375 gpm pump station. For one of three sewage Land/Right -of-Way: 150,000 Construction: 2,000,000 collection basins in the West Urban Growth Area. Entire project, or potions of Other: it in phases, likely to be funded through developer's reimbursement agreement Total: $ 2,500,000 Estimated Project Funding Reserves: Contributions: 2,500,000 Grants: Bonds: Loans: Utilities: - General Fund Current: Unknown: Total: $ 2,500,000 Yearly Expense Summary - Capital/Net Operating Prior Years I 2008 I 2009 I 2010 I 2011 I 2012 I 2013 I 2014 Proiect Total $ - I $ - I $ - I $ - I $ - I $ - $ 500,000 I $ 2,000,000 I $ 2,500,000 Year Construction Complete/Operational: 2014 Operating Cost Amount: Right ofWav: Yes SEP A Required: Yes Other Permits: No City Priority: Legal Mandate: No Concurrency: No Contract: Yes Department: Public Works & Utilities Division: Wastewater Contact: Steve Soerr Cost Center: Div. Priority: Justification: The sewer facility plan was amended in 2005 and approved by Department of Ecology. To address in a planned, comprehensive manner the extension of sewer collection service into the City's WUGA. This project addresses basin 1, on of four basins established in the WUGA. Sewer service to basin 1 was completed under the project "Utility Extension to WUGA" in 2005. Impact if not executed: This project may be done in phases, and does not necessarily have to be done in any order relative to the WUGA basins 3 and 4. However, if development of sewer in basin 2 does not follow approved facility plan, plan will have to be amended and approved by Ecology. Date Revised: 11/7/2008 Title: West UGA Basin 4 Sewer Extension Picture / Area Map Project #: WWll-2008 Intentionally Left Blank