Free Exhibits - District Court of California - California

Case 3:07-cv-04936-CRB

Document 41-6

Filed 03/03/2008

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EXHIBIT H

Case 3:07-cv-04936-CRB

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Filed 03/03/2008

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PUBLIC UTILITIES COMMISSION
City and County of San Francisco RESOLUTION NO. 074188

WHEREAS, On September 27, 2006, the Public Utilities Commission authorized the General Manager of the San Francisco Publ ic Utilities Commission to request proposals for Agreement No. DB-108 (subsequ ently reissued as DB-108R), SF Electric Reliability Power Project (SFERP), Combustion Turbine Power Plants (CTs), a design build agreement to construct two natural gas-fired, combustion turbine, power plants, one in San Francisco and one at the San Francisco Airport, and authorized the General Manager of the San Francisco Public Utilities Com mission to receive proposals, and WHEREAS, No compliant bids were received and an alternate proposal for a desi built own operate transfer has been recei ved to implement the projects and ultimately transfer the assets to the San Fran cisco Public Utilities Commission at acceptable cost to the City after a term of 14 years for the in-City project and 30 years for the Airport project; and WHEREAS. The Mayor's Office and the SFP UC have developed a potentially more advantageous alternative to the plan set forth in the description of the transaction subniltted with this item; and WHEREAS, The SFPUC intends to ensure that the SFERP be utilized solely to meet reliability needs and not for market purposes ; and WHEREAS, Any arrangements regarding the deve lopment of the SFIA CT shall be done on a collaborative basis between SFPUC, the Airport and 1-Power; and WHEREAS. The SFPUC wishes to explore with the California Independent System Operator (CAISO) the possibility that 2 rather than 3 CTs in the Potrero neighborhood will meet CAISO's reliability requirem ents; and WHEREAS, the SFPUC wishes to decommission the Combustion Turbines when feasible; and WHEREAS, The SFPUC has reviewed and considered the San Francisco International Airport Combustion Turbine Proj ect ("SFIA CT") Mitigated Negative Declaration finalized by the Planning Departme nt on January 12, 2007, and contained in Planning Department File No. File No.2004.0384E; and WHEREAS, The SFIA CT project as approved herein is consistent with the project description contained in the Mitigated Nega tive Declaration and would not result any significant impacts not identified in the Miti gated Negative Declaration or cause significant effects already identified in the Mitigated Negative Declaration to be substantially more severe; and WHEREAS. The SFPUC has reviewed and cons idered the relevant environmental information contained in the October 2006 decision of the California Energy Commission with respect to the SFERP and finds that there are no changed circumstances or other

Case 3:07-cv-04936-CRB

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factors present that would trigger the need or requirement for additional environmental review for this action; and WHEREAS, The General Manager of the San Francisco Public Utilities Commission recommends to the Commission the critical nattre of the completion of licensing and construction to the City's ener gy objectives, including and most importantly, closing the Potrero Power Plant as soon as possible, improving air and water quality for southeast communities, and ensuring reliable power for the City and County of San Francisco; now, therefore, be it RESOLVED, That this Commission has revie wed and considered the SFIA CT Mitigated Negative Declaration and hereby adop ts the California Environmental Quality Act (CEQA) (Pub. Resources Code § 21000 et seq.) Findings attached hereto as Attachment C and its Exhibits, and incorporates the same herein by this reference; and, be it further RESOLVED. That this Commission has reviewed and considered the decision of the California Energy Commission approving a certificate to construct and operate the SFERP in San Francisco, and hereby adopts the CEQA Findings attached hereto as Attachment B and its Exhibits, and incorporates the same herein by this reference; and, be it further RESOLVED, That this Commission hereby auth orizes the General Manager of the San Francisco Public Utilities Commission to complete negotiations and execute: agreements related to developing the City cr Projects, supported in the adopted 2002 San Francisco Electric Resource Plan and the CAJSO's Action Plan, including negotiations and execution of an Assignment, Con struction, Operation and Reconveyance agreement, or a Fee to Develop and Operate Agre ement, that would result in the City owning and controlling the Projects with terms substantially similar to the non-binding description of the transaction submitted with this item, the leases, and any related agreements, authorizations and permits required from other City Departments or third parties pertaining to this Project, and to seek Boar d of Supervisors' approval as required; and, be it further RESOLVED, That the General Manager of the SFPUC shall seek the full participation of the City Attorney and the May or's Office in the negotiation of the final transaction documents; and, be it further RESOLVED, That any contract between SFP UC, i-Power and the California Department of Water Resources (CDWR), or other relevant parties, shall provide that the SFERP will only be operated to meet reliability needs and shall not be used for market purposes at any time when the facility is operating under the jurisdictional authority of the SFPUC; and, be it further RESOLVED, That this Commission shall requ est the Board of Supervisors to include the above stated clause in any legislation appr oving this project; and, be it further RESOLVED, That any arrangements regarding the development of the SF!). CT shall be done on a collaborative basis between SFP UC, SF]). and J-Power; and, be it

Case 3:07-cv-04936-CRB

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further RESOLVED, That the SFI'UC and the Mayor's Office will explor the possibility that 2 rather than e with CAISO 3 era in the Potrero neighb orhood will meet CAISO's reliability requirements; and, be it further RESOLVED, That the SFPUC will decommission and remove CALSO determines that they are the CTs when no longer necessary for reliab ility and the City's financial recovery is complete; and , be it further RESOLVED, That this Commission authorizes the General Manager Francisco Public Utilities Comm of the San ission, and any other appropria te officers, agents or employees of the City to take any and all steps (including, but not limited to, the execution and delivery of any and all certificates, agreements, not ices, consents, escrow instructions, closing documents and other instruments or docum ents, and the filing and pursuit of appropriate land use ent itlements, such as the purchase, rental and easement agreements for the land needed wit h the San Francisco MTA and the San Francisco Port Commission, for the SFERP CT , and San Francisco Airport Co mmiss CT), as they or any of them deems necessary or appropriate, in consul ion, for the SFLA tation with the City Attorney and the Mayor's Office, in order to consummate the tra nsactions in accordance with this resolution, or to otherwise effectuate the pwpose and intent such determination to be conclu sively evidenced by the execution of this resolution, and delivery by any such person or persons of any such documents.

I hereby certifr that the foregoing resolution was adopted by Commission at its meeting of the Public Utilities

Secretasy, Public

Commission