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RESOLUTION NO. 2009-23 <br />RESOLUTION OF THE SOUTHERN CALIFORNIA <br />PUBLIC POWER AUTHORITY MAKING CERTAIN <br />FINDINGS WITH RESPECT TO COMPLIANCE WITH <br />GREENHOUSE GASES EMISSION PERFORMANCE <br />STANDARDS (SAN JUAN UNIT 3 PROJECT) <br />WHEREAS, the California Energy Commission has adopted <br />regulations under Docket 06-OIR-1, pursuant to Senate Bill 1368 (Stats. 2006, Ch. <br />598) (Regulations), implementing a greenhouse gases emission performance <br />standard for local publicly owned electric utilities; and <br />WHEREAS, SCPPA, on behalf of its Members wishes to <br />demonstrate compliance with the greenhouse gases emission performance <br />standard as it may be applicable to the San Juan Unit 3 Project; and <br />WHEREAS, the San Juan Unit 3 Project is SCPPA's 41.8% <br />ownership interest in San Juan Unit 3, a coal fired steam electric generating unit <br />located in Waterflow, New Mexico, and acquired from the Century Power <br />Company in 1993; and <br />WHEREAS, the San Juan Project's expected annual average carbon <br />dioxide emission rate is about 2,100 pounds of carbon dioxide per megawatt hour <br />of electricity produced, and the emission performance stand define in Section <br />2902 of the Regulations for baseload generation is 1,100 pounds of carbon dioxide <br />per megawatt hour of electricity produced, which classifies the San Juan Project <br />as an existing non -deemed compliant powerplant; and <br />WHEREAS, "Covered Procurements' as defined in Section 2901(d) <br />of the Regulations include new investments in existing non -deemed compliant <br />powerplants, but exclude "routine maintenance" pursuant to Section 2901 Q) of the <br />Regulations; and <br />WHEREAS, the California Energy Commission Electricity <br />Committee's "Explanation of Changes to Regulations Establishing and <br />Implementing a Greenhouse Gases Emission Performance Standard for Local <br />Publicly Owned Utilities in Response to the Office of Administrative Law's <br />Disapproval Decision" notes "routine maintenance may include replacing parts <br />when they wear out. New Parts are sometime made better than previous <br />iterations and improvements in some parts (e.g., turbine blades) can lead to an <br />increase in efficiency and capacity," and "the Energy Commission determined that <br />it is necessary to ensure that [Publicly Owned Utilities] are not prohibited from <br />maintaining the operation of their power plants simply because there might be an <br />incidental increase in capacity resulting from such maintenance;" and <br />