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C.51
To: Board of Supervisors
From: Catherine Kutsuris, Conservation & Development Director
Date: April  7, 2009
The Seal of Contra Costa County, CA
Contra
Costa
County
Subject: LMEC-Dow Transmission Line Agreement

APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE

Action of Board On:   04/07/2009
APPROVED AS RECOMMENDED OTHER
Clerks Notes:

VOTE OF SUPERVISORS

AYE:
John Gioia, District I Supervisor
Gayle B. Uilkema, District II Supervisor
Mary N. Piepho, District III Supervisor
Susan A. Bonilla, District IV Supervisor
Federal D. Glover, District V Supervisor
Contact: 925-299-0113
cc: Jason Crapo    
I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown.
ATTESTED:     April  7, 2009
David Twa,
 
BY: , Deputy

 

RECOMMENDATION(S):

AUTHORIZE the Department of Conservation & Development Director, or designee, to enter into an agreement with the Los Medanos Energy Center, LLC (LMEC), and The Dow Chemical Company, for the county to provide design review, plan checking and inspection services for the construction of the Los Medanos Energy Center Transmission Line Addition Project, a new four-thousand, nine-hundred and fifty (4,950) foot long (0.93 mile long) double circuit 115-volt transmission line that will extend from the LMEC Facility to the Dow Facility in Pittsburg, California, and for all costs atributed to providing such service to be fully reimbursed by The Dow Chemical Company.

FISCAL IMPACT:

This agreement will generate an estimated $219,750 in revenue to the Land Development Fund. The actual final amount will depend on the duration of the project.








BACKGROUND:

On October 14, 2008, the Board of Supervisors authorized the Department of Conservation & Development, through the Deputy Director, Building Inspection Division, to enter into an agreement with the California Energy Commission (CEC) to provide design review, plan check, and construction inspection of the Los Medanos Energy Center (LMEC) Transmission Line Addition Project.   
  
On March 17, 2008, the LMEC, LLC, filed a petition with the CEC requesting to modify the LMEC Project. This petition was approved on September 10, 2008.   
  
The 555 megawatt LMEC was certified by the CEC on September 17, 1999, and began commercial operation on July 9, 2001. The facility, formerly known as Pittsburg District Energy Facility, is located in the City of Pittsburg, in eastern Contra Costa County.  
  
The LMEC Transmission Line addition project would add a new 4,950-foot-long (0.93-mile-long) Double-circuit 115-kilovolt transmission line that would extend from LMEC to the Dow Pittsburg Facility (DOW), owned by Dow Chemical Company, located east of LMEC. This transmission line will be a dedicated line allowing Los Medanos Energy Center LLC’s parent company (Calpine Corporation) and Dow Chemical Company, to decommission an older, less efficient power plant at the DOW facility. The DOW power plant would be removed and the chemical facility’s electricity needs would be met by newer, cleaner, and more efficient power from the LMEC facility. Because of the close proximity of LMEC to DOW, there will be little transmission loss of electricity. The line will be built in partnership between LMEC and DOW. DOW will own the completed line.  
  
The agreement with the CEC also provides that the County enter into an agreement with LMEC and DOW. The purpose of this Agreement is to confirm the County’s authority as the CEC’s delegate for compliance verification and, subject to the authorities retained by the CEC in its delegation to the County in the MOU, enforcement and as the Chief Building Official (CBO) of the Project, to establish the fees to be paid by Dow to the County as the CEC’s delegate for compliance verification and enforcement and as the CBO of the Project, and to otherwise specify the rights and obligations of the parties as they pertain to the Project.  
  
The Contra Costa County Building Inspection Division, Department of Conservation & Development, has recent experience in reviewing and inspecting power plants and performed those services on the LMEC when it was constructed in 1999-2001.   
  
The department will be able to complete this project with existing staff and will not require the addition of any FTEs.  
  

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