REPORT TO COUNCIL
SUBJECT
Title
Action Authorizing the Decommissioning of the Santa Clara Cogen Facility
Report
BACKGROUND
In 1981, the City of Santa Clara’s Electric Department, Silicon Valley Power (SVP), began the operation of the City’s first cogeneration plant (Cogen), a 7-megawatt natural gas power plant located at 524 Robert Street. This plant provided both electricity to SVP customers and steam for a thermal host. Grief (formally California Paperboard), an SVP customer, permanently closed their facility; therefore, there is no longer a need for Cogen’s steam. Without a thermal host, the Cogen facility cannot efficiently operate, and on November 11, 2023, SVP removed Cogen from service.
DISCUSSION
SVP operates within the California Independent System Operator (CAISO) Balancing Authority. The Cogen facility is a registered resource within CAISO and is required to complete the Notice of Generation Unit Retirement Affidavit for generation facility decommissioning. This starts SVP’s retirement process with the CAISO. The CAISO will evaluate or study the change in their system to determine what additional steps SVP will need to undergo in the decommissioning process. In addition to the CAISO Affidavit, the City may need to execute a CAISO Relinquishing Scheduling Coordinator so that the Cogen scheduling coordinator will no longer be responsible for the resource’s participation in the CAISO market.
To decommission Cogen, CAISO, the California Energy Commission (CEC), the Bay Area Air Quality Management District (BAAQMD), and other agencies may also require SVP to execute other documents.
The proposed action does not authorize any work on the Cogen property, such as demolition as SVP staff is currently assessing other potential future generation and/or use options for this site.
ENVIRONMENTAL REVIEW
This action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to section 15378(b)(5) of Title 14 of California Code of Regulations in that it solely authorizes administrative actions which will not result in direct or indirect physical changes in the environment.
FISCAL IMPACT
There is no fiscal impact to execute the Affidavit.
COORDINATION
This report has been coordinated with the Finance Department and City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
Authorize the City Manager or designee to take any necessary administrative actions to decommission the Santa Clara Cogen facility, including, the execution of any documents as may be required by the California Independent System Operator (CAISO), the California Energy Commission (CEC), the Bay Area Air Quality Management District (BAAQMD), and other agencies approved as to form by the City Attorney.
Staff
Reviewed by: Manuel Pineda, Chief Electric Utility Officer
Approved by: Jovan D. Grogan, City Manager