SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT

FINALDRAFT NEGATIVE DECLARATION FOR:

SOUTHERN CALIFORNIAEDISON PEBBLY BEACH GENERATING STATION SELECTIVE CATALYTIC REDUCTION (SCR) INSTALLATION PROJECT

SCH No. 2003031050

AprilMarch 2003

Executive Officer

Barry R. Wallerstein, D. Env.

Deputy Executive Officer

Planning, Rule Development, and Area Sources

Elaine Chang, DrPH

Assistant Deputy Executive Officer

Planning, Rule Development, and Area Sources

Laki Tisopulos, Ph.D., P.E.

Planning and Rules Manager (Acting)

CEQA

Jill Whynot

Prepared by:Southern CaliforniaEdison

Reviewed by:Steve Smith, Ph.D., Program Supervisor, CEQA

Kathy C. Stevens, Air Quality Specialist, CEQA

Frances Keeler, Senior Deputy District Counsel

SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT

GOVERNING BOARD

Chairman:WILLIAM A. BURKE, Ed.D.

Speaker of the Assembly Appointee

Vice-Chairman:S. ROY WILSON, Ed.D.

Supervisor, Fourth District

Riverside CountyRepresentative

MEMBERS:

FRED AGUIAR

Supervisor, Fourth District

San BernardinoCountyRepresentative

MICHAEL D. ANTONOVICH

Supervisor, Fifth District

Los AngelesCountyRepresentative

HAL BERNSON

Councilmember, City of Los Angeles

Cities Representative, Los AngelesCounty, Western Region

JANE W. CARNEY

Senate Rules Committee Appointee

WILLIAM CRAYCRAFT

Councilmember, City of Mission Viego

Cities Representative, OrangeCounty

BEATRICE J.S. LAPISTO-KIRTLEY

Councilmember, City of Bradbury

Cities Representative, Los AngelesCounty, Eastern Region

RONALD O. LOVERIDGE

Mayor, City of Riverside

Cities Representative, RiversideCounty

LEONARD PAULITZ

Councilmember, City of Montclair

Cities Representative, San BernardinoCounty

JAMES W. SILVA

Supervisor, Second District

Orange CountyRepresentative

CYNTHIA VERDUGO-PERALTA

Governor’s Appointee

EXECUTIVE OFFICER:

BARRY R. WALLERSTEIN, D. Env.

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PREFACE

This document constitutes the Final Negative Declaration (ND) for the Southern California Edison Pebbly Beach Generating Station Selective Catalytic Reduction (SCR) Installation Project. The Draft ND was released for a 30-day public review and comment period from March 13, 2003 to April 11, 2003. No public comments were received during the public review and comment period.

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TABLE OF CONTENTS

SECTIONPAGE

1.0INTRODUCTION

1.1Regulatory Background

1.2Agency Authority

1.3Project Location

1.4Existing Generating Station Configuration and Operation

1.5Project Description

1.5.1Selective Catalytic Reduction System

1.5.2Urea Use, Storage and transportation

1.5.3Construction

1.5.4Operation

1.5.5Project Termination and Decommissioning

2.0environmental checklist form

2.1Environmental Checklist Form......

2.2Background......

2.3Environmental Factors Potentially Affected:......

2.4Determination

3.0discussion of environmEntal checklist

3.1Aesthetics......

3.2Agriculture Resources......

3.3Air Quality......

3.4Biological Resources......

3.5Cultural Resources......

3.6Energy......

3.7Geology and Soils......

3.8Hazards and Hazardous Materials......

3.9Hydrology and Water Quality......

3.10Land Use and Planning......

3.11Mineral Resources......

3.12Noise......

3.13Population and Housing......

3.14Public Services......

3.15Recreation......

3.16Solid & Hazardous Wastes......

3.17Transportation/Traffic......

3.18Mandatory Findings of Significance......

4.0References/Literature Cited

LIST OF FIGURES

Figure 1. Project Location Map......

Figure 2. PBGS Plot Plan......

LIST OF TABLES

Table 1. Air Quality Significant Thresholds......

Table 2. Peak Daily Construction Emissions......

Table 3. Peak Daily Operational Emissions......

APPENDICES

A. Air Quality Analysis

Abbreviations and Acronyms

ADTAverage Daily Trip

AHMAcutely Hazardous Materials

bblBarrel (42 gallons)

CAAClean Air Act

CARBCalifornia Air Resources Board

UBCCaliforniaBuilding Code

CEQACalifornia Environmental Quality Act

COCarbon Monoxide

EPAU.S. Environmental Protection Agency

H2Hydrogen

HPHorsepower

HRAHealth Risk Assessment

LAFDLos AngelesCounty Fire Department

MVEIGMobile Source Emission Inventory Program

MWMegawatt

N2Nitrogen

NH3Ammonia

NH4HSO4Ammonium bisulfate

(NH4)2SO4Ammonium sulfate

NH4OHAmmonium hydroxide

NOXOxides of nitrogen

OESOffice of Emergency Services

PBGSPebbly Beach Generating Station

ppmParts per million

RECLAIMRegional Clean Air Incentives Market

RMPPRisk Management Plan

RTCsReclaim Trading Credits

SCAQMDSouth Coast Air Quality Management District

SCESouthern CaliforniaEdison

SCRSelective Catalytic Reduction

SO3Sulfur trioxide

SOXSulfur oxides

SPCCSpill Prevention Control and Countermeasure

TACsToxic Air Contaminants

UBCUniformBuilding Code

USEPAUnited States Environmental Protection Agency

VOCVolatile Organic Compounds

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1.0INTRODUCTION

1.1Regulatory Background

The South Coast Air Quality Management District (SCAQMD) Regulation XX – Regional Clean Air Incentives Market (RECLAIM), adopted in 1993, is a cap and trade program designed to reduce oxides of nitrogen (NOX) and sulfur oxides (SOX) emissions from stationary sources in the SouthCoastAirBasin (Basin). The goals of RECLAIM are to give affected facilities flexibility in meeting their emission reduction requirements, to lower the cost of compliance, and to assist the SCAQMD’s efforts to attain and maintain state and federal ambient air quality standards. RECLAIM prescribes only total facility emissions goals, and facility operators are free to choose control strategies. The emission reduction goals are established in the form of a declining annual allocation. Facilities comply with RECLAIM either by: 1) installing control equipment that limits their annual NOX or SOX emissions to levels that do not exceed their annual RECLAIM allocations, or 2) purchasing additional RECLAIM Trading Credits (RTCs) to account for emissions that exceed their annual allocations.

To supplement the RECLAIM program, the SCAQMD Governing Board adopted Rule 2009.1 in May 2001. Rule 2009.1 applies to non-power producing facilities, which are those facilities that have a generation capacity of 50 megawatts or less of electrical power and that emit 25 tons or more of NOX per year. Rule 2009.1 requires facilities emitting over 50 tons per year of NOX to select and implement methods to comply with their annual RECLAIM NOX allocations, starting in 2003.

Southern California Edison (SCE) is the major supplier of electricity to the island of Santa Catalina (commonly referred to as Catalina Island), in southern California. To meet the electrical demand of its customers, SCE operates six diesel-fueled engines at the Pebbly Beach Generating Station (PBGS). The combined generation for the six diesel-fueled engines is 9.3 megawatts. Because PBGS also emits more than 25 tons per year of NOX, PBGS is a non-power generating facility under SCAQMD Rule 2009.1. Because PBGS also emits more than 50 tons per year of NOX, PBGS is required to implement emission reduction methods to comply with its annual RECLAIM NOX allocations.

SCE is proposing to install selective catalytic reduction (SCR) systems on the six diesel-fueled engines at PBGS. SCR will be used to reduce NOX emissions as part of SCE’s plan to meet the declining facility-wide NOX emission limits required by the RECLAIM Program. Consistent with the intent of RECLAIM, the proposed project is expected to achieve an overall decrease in NOX emissions from the facility.

1.2Agency Authority

The California Environmental Quality Act (CEQA) applies to proposed “projects” that require “discretionary” approval by state and/or other public agencies. (Under the CEQA guidelines, a “project” is an activity that has the potential to have a physical impact on the environment; “discretionary” means that the agency has the authority to approve or deny the permit or approval.) The proposed installation of the SCR systems at the PBGS meets these criteria and thus is subject to CEQA.

Where a project requires approvals from more than one public agency, CEQA requires one of these agencies to serve as the “lead agency.” The lead agency is the public agency that has the principal responsibility for carrying out or approving a project. Since the proposed project requires discretionary approval from the SCAQMD, it was determined that the SCAQMD is the most appropriate public agency to act as lead agency

To fulfill the purpose and intent of CEQA, this FinalDraft Negative Declaration (ND) has been prepared to address the potential environmental impacts associated with the SCR Installation project. Under CEQA, a ND is prepared when the Initial Study (the analysis of the project’s environmental impacts contained in this document) does not identify potential significant effects.

1.3Project Location

The proposed project is located in the City of Avalon, the principal community and main ferry terminus for the 76-square-mile Catalina Island. Catalina Island, located about 22 miles off the coast of southern California near Long Beach, is the third largest of the eight Channel Islands. The island is about 21 miles long, ranges in width from about eight miles to one-half mile, and has a permanent population of about 3,500.

The proposed project will be constructed at SCE’s existing Pebbly Beach Generating Station (PBGS). The PBGS is located on Pebbly Beach Road in an industrial area in the southeast portion of Avalon, just southeast of the Catalina Island Harbor. Figure 1 shows the facility location. The PBGS occupies approximately two acres and is bounded by Pebbly Beach Road and the Pacific Ocean.

1.4Existing Generating Station Configuration and Operation

The PBGS receives diesel fuel by barge shipments from the Port of Los Angeles. The fuel is combusted in six reciprocating internal combustion engines to drive the electrical generators. With all six units in operation, the power plant has a maximum output of 9.3 megawatts. Figure 2 shows the facility plot plan: it houses the six diesel-fueled internal combustion engines, two fuel oil storage tanks, electricity power generators, a liquefied petroleum gas (LPG) tank farm, a water desalination plant, warehouse, shops and an office building.

1.5Project Description

The following pages describe the various elements of the proposed project, including its construction, operation, and eventual decommissioning.

1.5.1Selective Catalytic Reduction System

As part of the combustion process, NOX is produced and emitted to the atmosphere with the other flue gas constituents (mostly nitrogen, carbon dioxide, and water vapor). SCR is an air pollution control technology that reduces NOX in engine flue gas by combining ammonia (NH3) and oxygen (O2) with NOX in the presence of a catalyst to form nitrogen molecules (N2) and water vapor. In the SCR system proposed for this project, the source of ammonia is liquid urea. The liquid urea is diluted with air and injected into the diesel-fueled engine flue gas stream through a matrix of nozzles. In the high temperature environment of the flue gas stream, the urea breaks down to ammonia and carbon dioxide.

The proposed project involves an “in-duct” SCR retrofit for each of the six diesel-fueled engines (units 7, 8, 10, 12, 14, and 15), in which the catalyst reactor is inserted into the existing ductwork. A conventional SCR system requires installation of a booster fan to maintain the exhaust gas velocity, because the catalyst can act as a barrier and thereby impede flue gas flow. The planned in-duct installation avoids the need for a booster fan.

The SCR utilizes Vanadia/Titania catalyst modules designed for a minimum operating life of three years, after which the “spent” catalyst is shipped off-site for recycling. All project equipment will be located within the existing fence line of the PBGS. The equipment will be installed either within the existing engine duct works or near the existing engine structures (i.e., a new urea storage tank), and thus will not be visible from off-site.

1.5.2Urea Use, Storage and transportation

Aqueous urea will be produced at a manufacturing facility in northern California and will be transported by truck to the Port of Los Angeles. At the Port, the aqueous urea tanker trailer will be loaded onto a freight barge, which will deliver the urea tanker trailer to the Santa Catalina Island Company dock at Pebbly Beach. From the dock, the urea tanker trailer will be taken to the PBGS, which is located about 0.3 mile from the dock. Upon arrival at the PBGS, the urea will be stored in a new 10,000-gallon aboveground, horizontally mounted, cylindrical double-wall tank with piping connection to the engine exhaust ducts. As needed, the urea will be injected into the engine flue gas exhaust.

Based on the urea tank storage capacity and estimated usage rate, one truckload of urea will be needed approximately every 10 to 11 days. Thus, every 10 to 11 days, the project will involve one urea tanker truck trip from the supplier to the Port of Los Angeles and one barge trip to Catalina Island with the urea tanker trailer on board.

1.5.3Construction

Construction is scheduled to begin when all permits and approvals are obtained. SCE expects to complete work on one of the six units every three to four weeks, for an overall construction period of 18 to 24 weeks for all six units. Construction activities are anticipated to take place five days per week, Monday through Friday, from 6:00 a.m. to 5:00 p.m. However, night and/or weekend shifts may be required to maintain the construction schedule. The construction work force will range from five to 10 workers per day.

1.5.4Operation

Operation of the proposed project will require no additional workers at PBGS. The project will operate whenever PBGS generates electric power, up to 24 hours per day for 365 days per year.

1.5.5Project Termination and Decommissioning

The estimated life of the six SCR systems is 15 years. At the end of its useful life, the equipment may be shut down and/or decommissioned, replaced, or modified in accordance with applicable regulations and market conditions prevailing at the time of termination. Decommissioning likely will involve salvage, disposal and site restoration in accordance with applicable federal, state and local regulatory requirements.

Figure 1. Project Location Map


Figure 2. PBGS Plot Plan

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FinalDraft Negative Declaration

SCR InstallationAprilMarch 2003

2.0environmental checklist form

2.1Environmental Checklist Form

The environmental checklist provides a standard evaluation tool to identify a project’s adverse environmental impacts. This checklist identifies and evaluates potential adverse environmental impacts that may be created by the proposed project.

2.2Background

1.Project Title:Pebbly Beach Generating Station Selective Catalytic Reduction (SCR) Installation Project

2.Lead Agency Name & Address:South Coast Air Quality Management District
21865 E. Copley Drive
Diamond Bar, CA 91765

3.Contact Person & Phone Number:Kathy C. Stevens
(909) 396-3439

4.Project Location:Pebbly Beach Generating Station (PBGS)
1 Pebbly Beach Road
Avalon, California 90704

5.Project Sponsor’s Name & Address:Southern California Edison (SCE)
2244 Walnut Grove Avenue
Rosemead, California 91770

6.General Plan Designation:Industrial Area

7.Zoning: Utilities and Industrial

8.Description of Project:

SCE is proposing to install selective catalytic reduction (SCR) systems in six existing diesel-fueled internal combustion engines at the PBGS, and also to install one aboveground urea storage tank at the facility. The SCR system will be used to reduce nitrogen oxide (NOX) emissions from the PBGS as part of SCE’s plan to meet declining facility-wide NOX emission limits required by South Coast Air Quality Management District’s (SCAQMD) Regulation XX - Regional Clean Air Incentives Market (RECLAIM) Program.

9.Surrounding Land Uses and Setting: (Briefly describe the project’s surroundings.)

The PBGS is located adjacent to the Pacific Ocean in the southeast portion of the City of Avalon on Catalina Island. The project area is characterized primarily by industrial land uses.

10.Other public agencies whose approval is required (e.g., permits, financing approval, or participation agreement):

The proposed project will require Permits to Construct/Operate from the SCAQMD, building permits from the City of Avalon, and Hazard Control Permits from the Los Angeles County Fire Department, Hazardous Materials Division.

2.3Environmental Factors Potentially Affected:

The following environmental impact areas have been assessed to determine their potential to be affected by the proposed project. As indicated by the checklist on the following pages, environmental topics marked with an “X” may be adversely affected by the proposed project. An explanation relative to the determination of impacts can be found following the checklist for each environmental topic.

Aesthetics Agriculture Resources Air Quality

Biological Resources Cultural Resources Energy

Geology Soils__ Hazards & Hazardous Hydrology/Water

MaterialsQuality

Land Use and Planning Mineral Resources Noise

Population/Housing Public Services Recreation

Solid/Hazardous Transportation/Traffic__ Mandatory Findings

WasteSignificance

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FinalDraft Negative Declaration

SCR InstallationAprilMarch 2003

2.4Determination

On the basis of this initial evaluation:

I find that the proposed project COULD NOT have a significant effect on the environment, and a NEGATIVE DECLARATION will be prepared.

I find that although the proposed project could have a significant effect on the environment, there will not be a significant effect in this case because the mitigation measures described on an attached sheet have been added to the project. A NEGATIVE DECLARATION will be prepared.

I find that the proposed project MAY have a significant effect on the environment, and an ENVIRONMENTAL IMPACT REPORT is required.

I find that the proposed project MAY have a “potentially significant impact” on the environment, but at least one effect 1) has been adequately analyzed in an earlier document pursuant to applicable legal standards, and 2) has been addressed by mitigation measures based on the earlier analysis described on attached sheets. An ENVIRONMENTAL IMPACT REPORT is required, but it must analyze only the effects that remain to be addressed.

I find that although the proposed project could have a significant effect on the environment, because all potentially significant effects (a) have been analyzed adequately in an earlier EIR or NEGATIVE DECLARATION pursuant to applicable standards and (b) have been avoided or mitigated pursuant to that earlier EIR OR NEGATIVE DECLARATION, including revisions or mitigation measures that are imposed upon the proposed project, nothing further is required.

Date:_March 12, 2003______Signature______

Steve Smith, Ph.D.

Program Supervisor, CEQA