In addition, the amendment reduces the amount financial assurance for site restoration from approximately $11 million to approximately $2.4 million. The bond will be phased, with approximately $1.7 million due at start of construction of phase 1. The bond will increase to $2.4 million at start of construction on phase 2.

 

Amendment #4

 

The Council also approved a request by Westward Energy LLC for Amendment #4 of the site certificate for the Summit/Westward Project (Summit). The amendment extends the dates for beginning and completing construction of the facility by two years. Under the amended site certificate, the certificate holder is required to begin construction by October 3, 2006 and to finish construction by April 3, 2009.

 

 

The Council approved a request by Westward Energy, LLC ("Westward") for Amendment #1 of the site certificate for the Summit/Westward Project. The amendment allows the certificate the option to use an alternative transmission service provider and route.

 

As described in the site certificate, the Summit Project would deliver electric power to the regional grid at the Bonneville Power Administration´s Allston Substation by interconnecting with a 230-kV transmission line to be erected by Portland General Electric ("PGE") pursuant to a site certificate for the PGE Port Westward Generating Project. Current conditions in the Summit/Westward Site Certificate with respect to a transmission line apply only to the Summit/Westward on-site electrical transmission line that connects to the PGE line. The amendment adds an option of a transmission line alternative to allow for connection between the Summit Project site and a new substation (the "Bradbury Substation").

 

The Clatskanie People´s Utility District (CPUD) would construct the Bradbury Substation to provide service to new industrial loads that are being located in the Port Westward Industrial Park and to provide reinforcement for the existing CPUD electric distribution system in the Clatskanie and Delena areas. CPUD would also construct a 230 kV line to connect the Bradbury Substation to the CPUD´s existing 230 kV Wauna Substation. The Wauna Substation is interconnected to the BPA 230 kV transmission grid through the BPA Driscoll switchyard. The Bradbury Substation and transmission facilities to be constructed by CPUD would also be used to integrate power from the Summit Project.

 

 

The Council approved a request by Portland General Electric (PGE) for Amendment #1 of the site certificate for the Port Westward Generating Project. The amendment allows PGE to:

 

 

The Council approved a request by Northwest Natural ("NWN") for Amendment #9 of the site certificate for the Mist Underground Gas Storage Facility. The amendment allows NWN to develop new gas storage reservoirs and install associated gathering lines on land within their existing site. Improvements at the Miller Compression Station will bring the throughput capacity to a maximum of 515 million cubic feet per day. The amendment removed a requirement for a vibration monitoring program, because after 15 years of monitoring, the data shows no correlation between gas storage activities and seismic activity.

 

 

The Council adopted its temporary order of October 8, 2003, as a final order. The order approved a request by Northwest Natural (NWN) for Amendment #2 of the site certificate for the South Mist Pipeline Extension.

 

 

The Council approved a request by Northwest Natural (NWN) for Amendment #2 of the site certificate for the South Mist Pipeline Extension. The Council approved the amendment under its procedure for expedited amendment (OAR 345-027-0080) and has issued a temporary order. The amendment allows NWN to add a new diversion point for water withdrawal from the Willamette River. NWN uses the water for underground boring and to pressure test the pipe. The water use is subject to limitations in the limited water license issued by the Water Resources Department (WRD). The new diversion point is located at the marina near where Boone´s Ferry Road reaches the Willamette River´s south bank. No new facilities are needed because NWN would connect the withdrawal pump directly to an existing 12-inch pipe that is unrelated to the South Mist Pipeline Extension. NWN has requested amendments to a Department of Environmental Quality (DEQ) permit (WPCF permit) and the limited water license for construction of the pipeline. The amendment will allow NWN to build the southern 11.7 miles of the pipeline, between Barnards Road and Aurora Airport, during the fall of 2003.

 

 

The Council approved a request by Northwest Natural (NWN) for Amendment #1 of the site certificate for the South Mist Pipeline Extension. The site certificate authorizes a 62-mile natural gas pipeline from northern Washington County to the interstate pipeline near Molalla, Oregon. The site certificate limits the permanent easement width for the pipeline to 40 feet but allows temporary construction easements of up to 80 feet. There is also a limit on the width of private easement that NWN can acquire if the corridor is along public right-of-way. In its original application for this pipeline, NWN analyzed a 200-foot wide corridor for locating the pipeline. The proposed amendment:

 

 

The Council adopted amendments to the Council rules. The rule amendments include rules relating to carbon dioxide (CO2) offset projects. Under current Council rules, a site certificate applicant may satisfy the CO2 emissions standard by proposing to implement offset projects. Amendments in Division 21 address information requirements for a CO2 offset project. Amendments in Division 24 explain how the Council would evaluate a proposed offset project.

 

In addition, the Council adopted amendments to OAR 345-022-0000(2), which is the rule language interpreting the Council´s authority under ORS 469.501(3) to balance the overall public benefits of a proposed energy facility against the damage to resources protected by any Council standard the facility does not meet. It was the sense of the Council that the balancing rule would continue to be applied only in special circumstances that will rarely occur. The amendment language updates and clarifies the language of the rule. The changes should not be viewed as encouragement of greater use of the rule.

 

The Council adopted other rule amendments to correct minor errors in the Council´s rules, clarify rules and make a limited number of substantive rule changes based on knowledge gained from recent energy facility siting experience. The substantive rule changes include definitions in OAR 345-001-0010, procedural rules regarding expedited review of special criteria facilities (OAR 345-015-0310 and -0320), site certificate application requirements (OAR 345-021-0010(1)), amendment of a site certificate application (OAR 345-021-0090), procedural rules regarding amendment of a site certificate (OAR 345-027-0060 and -0070) and procedural rules regarding site certificate termination.

 

 

The Council approved the form and issuer of the bond required before beginning construction of the Sherwood/Molalla pipeline. The Council action was required under a condition of the site certificate for the Northwest Natural South Mist Pipeline Extension.

 

 

The Siting Council approved the request by the Umatilla Generating Company (UGC) to amend the site certificate for the Umatilla Generating Project (Amendment #2). Amendment #2 extends the deadline for beginning construction to September 14, 2005 and extends the deadline for completing construction to March 14, 2008. In addition, under Council rules, the amendment updates the CO2 standard for the monetary offset rate to $0.85 and the CO2 emissions standard to 0.675 lb. CO2/kWh for the power augmentation. These have changed since the Council approved the site certificate in September 2001.

 

 

The Siting Council approved the request by FPL Energy Vansycle, LLC, (FPL) to amend the site certificate for the Stateline Wind Project (Amendment #2). Amendment #2 authorizes expansion of the Stateline facility by construction of 279 new wind turbines in Oregon (Stateline 3). The proposed turbines would increase the generating capacity of Stateline by approximately 184 megawatts. The amendment requires FPL to begin construction of these turbines within two years after Council approval of the amendment and to complete construction before December 31, 2005.

 

In addition, Amendment #2 extends the time to complete the construction of Stateline 2. FPL has built 55 of the 60 turbines that the Council authorized under Amendment #1. Amendment #2 extends the Stateline 2 construction deadline to March 1, 2005.

 

 

The Council authorized the Department of Energy to initiate a rulemaking proceeding. Proposed amendments to the Council rules include rules relating to carbon dioxide offset projects. Other proposed rule amendments would correct minor errors that staff has discovered in the Council´s rules, clarify rules that are somewhat ambiguous and make a limited number of substantive rule changes based on knowledge gained from recent experience.

 

 

The Council approved a request to extend the duration of the notice of intent for the proposed Coburg Power Project until October 11, 2004.

 

 

The Council approved a request to amend the Ecological Monitoring Program at the Boardman Coal Plant. The amendment eliminates the requirement for chemical monitoring of soils and vegetation. Based on 20 years of data, there is no discernable relationship between concentrations of chemicals in soil and vegetation and coal ash deposition from plant operations. The Oregon Department of Fish and Wildlife and the Oregon Department of Environmental Quality concur in the modification of the monitoring program.

 

 

The Council approved a form of trust agreement for holding carbon dioxide offset credits. Carbon dioxide credits result from implementation of the carbon dioxide projects described in the site certificate for the Klamath Cogeneration Project.

 

The Council approved an application by Northwest Natural Gas (NWN) for the South Mist Pipeline Extension. Generally, the Council approved the corridor as proposed by NWN, but with certain conditions. Two of the more significant Council decisions are:

 

The Council approved an amendment of OAR 345-026-0390 regarding spent nuclear fuel storage. The amended rule addresses the decommissioning of the Trojan Nuclear Plant. The amendment allows Portland General Electric to store spent fuel in dry steel canisters designed by Holtec International.

 

 

The Council granted a site certificate to Portland General Electric Company (PGE) for the Port Westward Generating Project. The approved energy facility is a 650-megawatt, gas-fired combined-cycle generating plant to be located on land PGE currently leases from the Port of St. Helens in the proximity of the existing Beaver Generating Plant near Clatskanie, Oregon, in Columbia County.

 

 

The Council approved a transfer of the site certificate for the Coyote Springs Cogeneration Project (Unit 2) to Mirant Oregon and Avista Corporation (Amendment #8).

 

 

The Council approved an updated schedule of fees.

 

 

The Council denied a request by Grizzly Power LLC for an extension of the notice of intent (NOI). The Department of Energy issued a project order for the project on June 4, 2001. Under Council rules, the applicant must submit an application within 18 months after the issuance of the NOI. The NOI for the Grizzly project would expire December 4, 2002. Grizzly had withdrawn its application and requested a one-year extension of its NOI. Grizzly stated that market conditions hindered the company from immediately moving forward on the project. The Council found that other factors indicate the project is unlikely to proceed within a year: 1) the applicant does not plan to renew any lease options for property that would be involved in the project, 2) the applicant stated publicly that the company is not optimistic about its potential to move forward on the project in six months and 3) despite a recommendation to do so, the applicant did not send a representative to the Council´s meeting to discuss the extension request.

 

 

The Council approved a final order and site certificate for the Summit/Westward Project. The order allows Summit to construct a natural-gas fired combined-cycle combustion turbine power plant with a nominal electric generating capacity of 520 megawatts. The facility would be located at Port Westward in Columbia County.

 

 

The Council granted Cascade Grain Products, LLC, an exemption from the requirement to obtain a site certificate for a proposed 100 million gallon per year ethanol production facility. The facility would include electric generation of less than 25 MW using either a natural gas-fueled steam generator or a gas turbine generator. Thermal power production of less than 25 MW would not require a site certificate. The proposed facility would be located at Port Westward near Clatskanie, Oregon, in Columbia County. The Council granted the exemption under ORS 469.320(2)(f).

 

 

The Council approved modification of testing parameters for duct firing to verify fuel efficiency for the Hermiston Power Project. The standard 100-hour test for base-load gas plants is used to verify the level of carbon dioxide emissions for purposes of determining compliance with the Council´s carbon dioxide emissions standard. Duct firing is used at some facilities to boost output to meet peak demand for short periods. The 100-hour test is not appropriate for measuring emissions from duct firing.

 

 

The Council approved a request by FPL Energy Vansycle LLC to amend the site certificate for the Stateline Wind Project (Amendment #1). The amendment allows construction of 60 additional wind turbines and would increase the nominal generating capacity of the facility to approximately 122 megawatts.

 

 

The Council approved modification of testing parameters for duct firing to verify fuel efficiency for the Coyote Springs Cogeneration Project. The standard 100-hour test for base-load gas plants is used to verify the level of carbon dioxide emissions for purposes of determining compliance with the Council´s carbon dioxide emissions standard. Duct firing is used at some facilities to boost output to meet peak demand for short periods. The 100-hour test is not appropriate for measuring emissions from duct firing.

 

 

The Council approved amendments to the energy facility siting rules in OAR Chapter 345, Divisions 1, 15, 20, 21, 22, 24, 26 and 27.

 

 

The Council approved a request by Umatilla Generating Company to amend the site certificate for the Umatilla Generating Project (Amendment #1). The amendment allows the construction of a zero discharge system for wastewater. The option of land application of wastewater would be retained, subject to DEQ approval of a WPCF permit.

 

 

The Council issued a declaratory ruling that an acquisition of Portland General Electric (PGE) by Northwest Natural Gas would not constitute a transfer of ownership of any of PGE´s energy facilities. PGE is the certificate holder of several facilities under Council jurisdiction. PGE and Northwest Natural joined in the request for a declaratory. If the acquisition leaves PGE intact as the entity in control of the facilities, no site certificate transfers will be required.

 

 

The Council agreed that a proposed wind energy facility is exempt from the site certificate requirement. TPC Oregon Wind Power Development LLC (TPC) proposed to build a 100-megawatt wind energy facility in Umatilla County. Recent legislation raised the Council´s jurisdictional threshold for wind energy facilities to 105 megawatts (nominal generating capacity). However, the facility would be located within the Umatilla Wind Generation Area (UWGA), established under OAR 345-001-0220. Ordinarily, the Council would have to decide whether the effects of the proposed facility, combined with the effects of existing small wind generating plants in the UWGA, would have a magnitude similar to a wind energy facility under Council jurisdiction.

 

There is an existing small wind generating plant, the Vansycle Ridge Wind Project, within the UWGA. Under additional recent legislation, however, the Council must disregard the effects of the Vansycle Project until January 2, 2002.

 

Under these special circumstances, the Council agreed that TPC need not request an exemption for the proposed wind facility (under OAR 345-015-0360(6)) if TPC submits an application for local land use approval to Umatilla County before December 31, 2001, provides verification of that submission to the Council and does not subsequently withdraw the local land use application. If TPC either does not file the application or files but withdraws it later, then TPC would be required to request an exemption from the Council.

 

 

The Council approved changes to the emergency plan that is in place during the decommissioning of the Trojan Nuclear Plant. The changes reflect that the containment building no longer contains a radiation source, eliminating the need for Plant Effluent Radiation Monitor 1. The Council also approved other minor changes.

 

 

The Council approved a motion to delegate to the Council Chair approval of Amendment #8 to the site certificate for the Mist Underground Gas Storage Facility. The amendment would allow Northwest Natural to increase the throughput rate and add compression at Miller Station. The amendment would also allow for one new injection well. The amendment requires Northwest Natural to submit a financial assurance bond, and the Council delegated to the Chair the review and approval of the bond.

 

 

The Council approved a final order and site certificate for the Stateline Wind Project. The order allows FPL Energy Vansycle LLC to construct a wind energy facility in Umatilla County. The approved facility consists of 127 wind turbines with a combined nominal electric generating capacity of 83.8 MW. The facility would be located in Umatilla County, north and east of Helix, Oregon.

 

 

The Council approved a final order and site certificate for the Umatilla Generating Project. The order allows Umatilla Generating Company to construct a natural-gas fired combined-cycle combustion turbine power plant with a nominal electric generating capacity of 603 megawatts. The facility would be located in Umatilla County.

 

 

The Council approved a temporary exemption for the Columbia River Energy Combustion Turbine Generation Project. The order allows Columbia River Energy to construct a natural-gas fired simple-cycle power plant with a nominal electric generating capacity of 44 megawatts. The facility would be located in Columbia County. Under the temporary exemption authorized by ORS 469.320(2)(g), Columbia River Energy may operate the facility for two years. If the certificate holder chooses to continue operation after that time, the certificate holder must apply for a site certificate.

 

 

The Council granted an exemption to Oregon Energy LLC for the Halsey cogeneration project. The order allows Oregon Energy to construct a natural-gas fired cogeneration power plant with a nominal electric generating capacity of 93 megawatts. The exemption is for a high efficiency cogeneration facility and is authorized under ORS 469.320(2)(c)(B).

 

 

The Council approved an amendment to OAR 345-024-0580. Under the Council´s carbon dioxide standard, the monetary offset rate is used to determine the amount a power plant developer would pay under the "monetary path" to offset carbon dioxide emissions. The amendment raises the rate from $0.57 per ton to $0.85 per ton. The Council approved conforming amendments to OAR 345-024-0560, -0600 and -0630.

 

 

The Council approved a temporary amendment of OAR 345-021-0000. The amendment allows the Department of Energy to find an application for expedited review complete before an application has been submitted by a third-party for a federally-delegated permit.

 

 

The Council approved changes to the design of the cogeneration system for the West Linn Paper Company´s power plant. The facility is exempt from the site certificate requirement based on the high efficiency cogeneration exemption, ORS 469.320(2)(c)(B). The approved change will allow the West Linn to use a different model of gas turbine.

 

 

The Council approved an updated schedule of fees.

 

 

The Council approved a request by PacifiCorp Power Marketing for exemption from the site certificate requirement. The proposed Klamath Expansion Project would be a 100-megawatt facility adjacent to the existing Klamath Cogeneration Project. The proposed facility is exempt based on the temporary energy generating facility exemption, ORS 469.320(2)(g).

 

 

The Council approved an exemption to Biomass One for expansion of capacity of their facility. The exemption is authorized under ORS 469.320(2)(a). The exemption would allow an increase in generating capacity from 25 megawatts to 30 megawatts.

 

 

The Council approved Amendment #4 of the site certificate for the Hermiston Power Project. The amendment allows the use of duct burning to increase the power output of the facility. It also allows an increase in water use and a change in the route of the transmission line.

 

 

The Council approved a request by the West Linn Paper Company for exemption from the site certificate requirement for a power plant. The Council approved the request based on the high efficiency cogeneration exemption, ORS 469.320(2)(c)(B).

 

 

The Council approved a transfer of the site certificate for the Coyote Springs Cogeneration Project Unit 2 (Amendment #7). The approval allows transfer from Avista Power to Avista Corporation.

 

The Council approved an exemption request from Oregon Energy Company. The Council approved the request based on the high efficiency cogeneration exemption, ORS 469.320(2)(c)(B).

 

The Council approved an exemption request from SP Newsprint. The Council approved the request based on the high efficiency cogeneration exemption, ORS 469.320(2)(c)(B).

 

 

The Council approved Amendment #5 of the site certificate for the Hermistion Generating Project. The amendment would allow the facility to build a pipeline and discharge wastewater that comes from the cooling tower blow-down and clarifier draw-down ("reclaimed wastewater") directly to Madison Farms.