MARCH 13, 2014 CCC HEARING SOUTH BAY SUBSTATION RELOCATION PROJECT (SDG&E) CDP #E ; Th11b 2 Existing Substation Site Before Existing Substation Site After PROJECT OBJECTIVES ELECTRIC SERVICE AND RELIABILITY: Replace decades-old electric substation with upgraded, state-of-the- art transmission substation Accommodate regional energy needs subsequent to retirement of South Bay Power Plant Serve future projected transmission and distribution load growth ENVIRONMENTAL: Facilitate City/Port redevelopment goals by removing substation from Chula Vista Bayfront Master Plan boundaries Protect, restore and enhance coastal resources consistent with Chapter 3 of the Coastal Act and the City of Chula Vista LCP, even though the LCP applies only as guidance 3 PROJECT DESCRIPTION Relocation and upgrade of existing South Bay Substation, including: Construction of new, 230/69/12kV electric transmission substation and related transmission facilities on approximately industrial-zoned acres (formerly part of an LNG facility); Decommissioning and demolition of existing 138/69kV substation and transmission facilities/equipment on acres adjacent to former South Bay Power Plant; Relocation and reconfiguration of existing 230/138/69kV lines along existing transmission corridor to either loop-in to or bypass the new substation (includes undergrounding approx. 3,800 of 138kV lines and approx. 1,000 of 230kV); Restoration of approx. 10 acres of tidal wetlands within San Diego Bay National Wildlife Refuge to mitigate for 2.45 acres of impacts to low-quality wetlands that now exist in former LNG site retention basin. California Public Utilities Commission (CPUC) General Order 131-D governs construction of any new electric facilities by SDG&E. CPUC approved the Project on October 17, PROJECT SITE 5 Project activities to take place in three general locations: 1.Existing South Bay Substation and Transmission Site (to be demolished) 2.New Bay Boulevard Substation Site (to be constructed) 3.Existing Transmission Corridor CONTEXT: CHULA VISTA BAYFRONT MASTER PLAN Substation relocation will facilitate Chula Vista Bayfront Master Plan (CVBMP) approved by CCC CCC unanimously certified CVBMP (PMPA and LCPA) in August 2012 CVBMP provides for: Redevelopment of approx. 556 acres along Chula Vista Bayfront; Protection of diverse marine, biological, and scenic resources of San Diego Bay and the San Diego Bay National Wildlife Refuge; New opportunities for public access and recreation. Following existing substation demolition, the site will be redeveloped to include park and RV park uses in its place 6 CVBMP 7 Chula Vista Bayfront Master Plan Illustrative Locally-Approved Land Use Plan by City of Chula Vista and Port of San Diego *See slides 20 and 21 for existing and proposed substation locations PUBLIC ACCESS & RECREATION RESTORATION AND ENHANCEMENT 8 Creation of Lower-Cost Visitor Serving Recreational Facilities PUBLIC ACCESS & RECREATION RESTORATION AND ENHANCEMENT 9 Existing Substation to be converted to RV Park and Park SUBSTATION RELOCATION MILESTONES 10 October 2004:SDG&E and City of Chula Vista enter into MOU January June 2010: - State Lands Commission, Port of San Diego and SDG&E enter into land exchange agreements that will allow substation to be relocated - City and Port approve Chula Vista Bayfront Master Plan - SDG&E submits application to CPUC to relocate substation May 2011:SDG&E submits coastal development permit application E to CCC August 2012:CCC approves Port PMPA & LCPA for Chula Vista Bayfront Master Plan October 2013:CPUC approves relocation and certifies Environmental Impact Report March 2014:CCC Meeting June 2014:Construction Scheduled to Begin December 2015: In-Service Date for New Substation [NOTE: Original requested ISO In-service date was June 2012] TBD:Demolition of Existing Substation [NOTE: Demolition activities cannot commence until the new substation is constructed and all required outages are approved] WETLAND HABITAT RESTORATION Unavoidable Wetland Impacts The proposed substation site is the former site of an LNG operation and includes a former retention basin that now contains four small seasonal wetlands. (Staff Report at 23). Unavoidable impacts to 2.45 acres of seasonal wetlands. Project satisfies three-part Coastal Act Section test for development within wetlands. (Staff Report at 23-30). Proposed Mitigation: Restoration at D Street Fill Site SDG&E proposes to mitigate for wetland impacts at a 4:1 ratio. Creation of 10 acres of tidal wetlands at D street fill site, part of the Sweetwater Marsh Unit of the San Diego Bay National Wildlife Refuge. Site was previously identified in USFWS Comprehensive Conservation Plan as a site for intertidal wetland restoration. Staff Report Confirms No ESHA Impacts There are no Environmentally Sensitive Habitat Areas (ESHAs) on the project site or within 500 feet of the project site. (Staff Report at19). 11 WETLAND HABITAT RESTORATION 12 Restoration site selected through coordination with multiple resource agencies Portion of D Street Fill site within Sweetwater Marsh Unit of San Diego Bay National Wildlife Refuge to be restored OPPOSITION These new power poles along with the remaining above-ground wires and poles are directly in the sight line of any redevelopment project east and south [Inland Industries] whose value would in large measure be derived from its views of the bay and ocean. (Inland Industries Protest, page 7) The Relocated Substation would not facilitate the redevelopment of Inland Industries property, as well as the properties located directly south. (Inland Industries Protest, page 7) [Inland Industries] participation in this proceeding is premised on its interest as the owner of land parcels adjacent to the Proposed Project that, according to Inland Industries, are ideally suited for redevelopment and will be negatively impacted by the Proposed Project (Staff Report, page 37) SDG&E refutes each of Inland Industries claims After analyzing the evidence presented by both SDG&E and Inland Industries, the Commission agrees that additional undergrounding of the 230kV line as proposed by Inland Industries is both infeasible and unwarranted. (Staff Report, page 40) 13 VISUAL RESOURCE RESTORATION AND ENHANCEMENT One of seven existing steel lattice towers located on Bayfront to be removed 14 Bay Boulevard X STAFF RECOMMENDATION 15 Staff recommends APPROVAL subject to 23 special conditions SDG&E has worked with staff to address Special Condition 14 (additional undergrounding of existing 138kV facilities) Prior to issuance submittal of CPUC approval for the undergrounding was not feasible: SDG&E does not currently have authority to comply with Special Condition 14 (not included in CPUCs October 17 approval). CPUC previously considered and rejected this additional undergrounding. CPUC approval will take time and can easily become delayed. Further delays are not feasible. Staffs revised Condition 14 is acceptable to SDG&E 16 Proposed Substation Site Before Proposed Substation Site After