Honorable Mayor and Members of the Hermosa Beach City Council
Regular Meeting of April 12, 2022
Title
APPROVAL OF LETTER SUPPORTING
ASSEMBLY BILL 2140 (MURATSUCHI, AL):
ONCE-THROUGH COOLING POLICY: POWERPLANTS
(Environmental Programs Manager Douglas Krauss)
Body
Recommended Action:
Recommendation
Staff recommends City Council:
1. Authorize the Mayor to sign a letter of support (Attachment 1) on behalf of the City regarding Assembly Bill 2140 (AB 2140), which would ensure that the State Water Resources Control Board does not grant the operator of a power plant any further extension to comply with the once-through cooling (OTC) policy if the city the power plant is located in formally adopts a resolution objecting to any further extension; and
2. Submit the letter to key legislators and local stakeholders.
Body
Executive Summary:
Assembly Bill 2140 (AB2140) proposes to ensure that the State Water Resources Control Board (Water Board) does not grant an operator of a power plant any further extension to comply with the once-through cooling (OTC) policy if the city the power plant is located in formally adopts a resolution objecting to any further extension. Staff recommends City Council approve a letter supporting the proposed legislation. If enacted, AB2140 would further reinforce the City’s efforts to help Redondo Beach to expedite closure of the AES plant.
Background:
The 50-acre AES Redondo Beach property, just south of the Hermosa Beach border in the City of Redondo Beach, has been used for electricity generating purposes for over a century. Originally developed by Henry Huntington under the Pacific Light and Power Company, the property was acquired by Southern California Edison in 1917, redeveloped in the 1940s, and sold to the AES Corporation in 1997.
Between 2015 and 2016, the City of Hermosa Beach engaged as an intervenor in proceedings related to the AES site, providing support to Redondo Beach based on the cities’ shared concerns about the impacts of a potential new power plant. During that time, Hermosa Beach staff participated in California Energy Commission (CEC) meetings related to the project including telephone participation at status conferences, monitoring the CEC’s project docket, attending community workshops, and participating in joint conference calls with state agencies.
In response to Water Board regulations affecting coastal power plants that use ocean water for cooling, AES proposed to retire the power generating units by 2020. Any change in the use of the site, other than for park and open space, would require a zoning amendment and General Plan amendment. Each amendment would be subject to approval by the voters of Redondo Beach, as well as require California Coastal Commission approval. The site was the subject of two public votes on development concepts with neither receiving a majority vote.
In May 2019, Redondo Beach City Council approved the formation of an Enhanced Infrastructure Financing District to help fund public improvements on the site, in anticipation of the plant’s closure and anticipated future development. Redondo Beach was also recently successful in securing a grant of $4.8 million from the California Natural Resources Agency to help fund purchase of a portion of the site for public park space.
At its April 14,2020 meeting, City Council approved a letter to the Water Board opposing the proposed extension of the plant’s operations through 2023. The Water Board instead approved the extension, continuing operations through December 2023.
Analysis:
Existing law establishes the State Water Resources Control Board within the California Environmental Protection Agency with specified duties relating to, among other things, administering water rights, the Porter-Cologne Water Quality Control Act, and the California Safe Drinking Water Act. The state board has adopted a statewide policy on the use of the coastal and estuarine waters for powerplant cooling, referred to as the once-through cooling policy.
On February 15, 2022, Assembly Member Muratsuchi introduced Assembly Bill 2140, which proposes to:
• Prohibit the state board from granting an operator of a powerplant any extension of time to comply with the once-through cooling policy if the city or county that has jurisdiction over the site of the powerplant formally adopts a resolution objecting to the extension; and
• Require the Public Utilities Commission, the State Energy Resources Conservation and Development Commission, and the Independent System Operator to work together to identify alternatives to offset and ultimately replace the powerplants that cease operations as a result of the enforcement of the once-through cooling policy.
The legislation was referred to the Committee on Natural Resources on March 28, 2022. Staff will continue to communicate with and support the City of Redondo Beach on this matter and, should AB1240 be approved, support their efforts to adopt the corresponding resolution.
General Plan Consistency:
This report and associated recommendations have been evaluated for their consistency with the City’s General Plan. Relevant Policies are listed below:
Governance Element
Goal 4. A leader and partner in the region.
Policy:
• 4.3 Collaboration with adjacent jurisdictions. Maintain strong collaborative relationships with adjacent jurisdictions and work together on projects of mutual interest and concern
Land Use Element
Goal 13. Land use patterns that improve the health of residents.
Policy:
• 13.1 Restrict health-harming uses. Prohibit new land uses that harm the physical health and well-being of the community.
Sustainability and Conservation Element
Goal 3. Improved air quality and reduced air pollution emissions.
Policy:
• 3.7 Regional air quality. When possible, collaborate with other agencies within the region to improve air quality and meet or exceed State and Federal air quality standards through regional efforts to reduce air pollution from mobile sources, including trucks and passenger vehicles and other large polluters
Fiscal Impact:
There is no fiscal impact associated with the recommended action.
Attachments:
1. Draft Support Letter for Assembly Bill 2140
2. Link to April 24, 2018 Staff Report
3. Link to April 14, 2020 Staff Report
Respectfully Submitted by: Douglas Krauss, Environmental Program Manager
Noted for Fiscal Impact: Viki Copeland, Finance Director
Approved: Suja Lowenthal, City Manager