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10.1. SR 11-02-2020it ci Elk* River Request for Action To Item Number Mayor and City Council 10.1 Agenda Section Meeting Date Prepared by Work Session November 2, 2020 Zack Carlton, Planning Manager Item Description Reviewed by Concept Review: Combustion Turbine at 17845 Chris Leeseber , Senior Planner Reviewed by Highway 10, Great River Energy Cal Portner, City Administrator Action Requested Review the proposed project and provide the applicant with informal/non-binding feedback. Background/Discussion Great River Energy (GRE) proposes to construct a combustion turbine to replace Energy Recovery Station's 49 megawatts of generating capacity. With the plant demolition and other operational changes within GRE's energy portfolio, a replacement power source by Spring of 2022 is needed to maintain existing transmission contracts. The proposed turbine will have a similar generating capacity but would occur on a much smaller footprint. GRE has a 200 MW combustion turbine on site and the proposed turbine would be located next to the existing one or within a building already constructed on site. The generator currently operates 150-500 hours per year and GRE anticipates the new generator would operate no more than 900 hours per year. The applicant would like feedback from the City Council regarding a Conditional Use Permit to construct the combustion turbine. Planning Commission Hwy 10 The Planning Commission reviewed the request on October 27, 2020, and did not have concerns with the proposal, but discussed noises generated by the existing and proposed combustion turbines, the preferred location, and sight lines from Highway 169. Figure Mission/Policy/Goal The request supports growth of the business community within Elk River Financial Impact None The Elk River Vision A n elcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity. RR CR 12 i "O 6y PR�ERER Ri [NATURE Updated. August 2020 Attachments Location Map Applicants Narrative Sketch Plans N:\Public Bodies\Agenda Packets\11-02-2020\Final\10.1 sr GRE Concept.docx 75-126 �3[Id—D1 y 1. 3 -� 75-69 :5 ° (} 1 10 �■ jo ION Ip .r +r r .1 , „ LO ' Ik r 5-61` W. ,ry IN r ..11- %1 rr. 5-7 TF s 8 r 1 �. 75-659—:1-� 1 it _• .�, Gre',at River Energy Concept Rev. i w Case No: CR 20-05 l iv r� Concept Review Project Narrative Great River Energy Proposed Combustion Turbine Addition 1. Detailed description/scope of project 1.1. What is being proposed? Great River Energy is proposing to install a combustion turbine (CT) to replace the Elk River Energy Recovery Station's (ERERS) 49 megawatts (MW) of generating capacity. This proposed project will enhance the reliability of electric power supply for the families and businesses in the Elk River area. With the shut down and demolition of the ERERS waste combustor facility, Great River Energy has until June 2022 to use the existing interconnection rights of the original ERERS facility to connect another generating source to the Midcontinent Independent System Operator, Inc. (MISO) transmission system. If we do not install and interconnect the replacement capacity by then, we will lose the existing interconnection rights. The proposed combustion turbine will have a generating capacity of 49 MW or less. We are currently evaluating two vendors for the combustion turbine. Just like the existing 200 MW (nominal) combustion turbine already located on the Elk River campus, the proposed new unit will be fueled primarily with natural gas or with distillate fuel oil for backup. At this time, we believe the existing fuel oil storage tank will be sufficient, so additional tanks will not be needed. The existing natural gas infrastructure feeding the campus is sufficient for the proposed project, but Great River Energy will need to make modifications to the gas supply system within the campus. We are considering two potential locations for the combustion turbine: 1) east of the existing 200 MW combustion turbine, or 2) within the existing Refuse -Derived Fuel (RDF) Barn. These locations are shown in Figure 1. The proposed combustion turbine has a smaller footprint and a shorter profile than the existing combustion turbine because of its lower generating capacity. Figure 2 shows an approximate footprint relative to the existing combustion turbine, and Figure 3 shows an example picture of one model being considered. The proposed combustion turbine will not operate continuously like the former ERERS. The existing 200 MW combustion turbine typically operates between 150 to 500 hours per year. We believe MISO will run the proposed combustion turbine similarly to the existing 200 MW combustion turbine and not likely more than 900 hours per year. Project Narrative Great River Energy — Proposed Combustion Turbine Addition 1.2. How is the request consistent with City of Elk River Comprehensive Plan? The proposed project supports the City of Elk River Comprehensive Plan (Adopted May 19, 2014) in several ways: Preserve and maintain the environment (pg. 7) Elk River seeks to promote clean air and water in the management, development, and delivery of municipal services. The proposed project is integral to Great River Energy's plan to increase the share of our energy supplied from renewable energy resources while ensuring reliable electric services. The project can produce electricity when renewable power production is low to ensure that the lights can stay on. Emissions from, and water use by, the proposed combustion turbine will be lower than those from the former ERERS. Development must be served by well maintained and reliable infrastructure. Great River Energy has a long track history of maintaining our facilities to ensure that when electric power demand increases, we have the power sources available. Development seeks to incorporate and blend the built and natural environments. Great River Energy's Elk River Campus has a long and prominent history in Elk River, including electricity production. The proposed project is consistent with this history and will ensure the local families and businesses have a local and reliable power supply. Reliability is a main tenant of our corporate mission. Additionally, the proposed project will not impact the pollinator - friendly habitat or other vegetated areas Great River Energy has created on the campus. As Energy City, Elk River seeks to promote sustainable and energy efficient forms of development. As noted above, one of the drivers for the proposed project is to facilitate an increase in power being provided by sustainable and renewable resources such as wind and solar while retaining the high reliability. Promote the expansion of industrial uses in those areas identified in the Land Use Plan. Ensure that the expansion complements existing uses, protects the natural environment, and respects the surrounding neighborhoods. (pg. 43) The subject parcel is currently zoned as Light Industrial and this zoning classification is maintained in the Future Land Use Map. The proposed project is consistent with this zoning classification. Great River Energy will continue to operate as a neighbor in good standing with the businesses, residences, and municipal operations that are near the campus. 2. Hours of Operation The proposed combustion turbine will be available 24 hours per day and 365 days per year for MISO to call upon to run. 3. Number of Employees Existing staff who operate and maintain the existing 200 MW combustion turbine may be sufficient to operate and maintain the proposed new combustion turbine. As discussions progress with the equipment vendors, we will explore staffing needs. If additional staff are determined to be necessary, we presently anticipate needing no more than two new staff. Currently seven full-time equivalent, permanent staff are assigned to operate and maintain the existing 200 MW combustion turbine. Approximately 130 staff are off iced within the Elk River Campus. Project Narrative Great River Energy — Proposed Combustion Turbine Addition 4. Number of parking stalls, existing and additional Designated parking spaces and undesignated space are available within the campus for the plant operators, as well as contracted construction and maintenance personnel. Given that no more than two new permanent staff might be added, Great River Energy does not intend to add additional parking spaces specifically for the new combustion turbine operation. (Independent of the proposed project, Great River Energy is considering utilizing a portion of the current paved area on the south side of the ERERS for additional/overflow parking of business -related vehicles. The size/number of stalls is yet to be determine and is planned to be addressed as part of the site restoration when demolition is complete. The conceptual parking area is shown in Figure 4.) S. Is there proposed screening of the site? If the proposed unit were to be installed east of the existing 200 MW combustion turbine, existing trees along the west side of Highway 169 provide an effective screen. The current fence along this side of the facility also has a privacy screen. If the proposed unit were to be installed within the existing RDF Barn, the building would provide effective screening. 6. Proposed building materials 6.1. How do they comply with applicable design standards? The combustion turbine is comprised of modular or semi -modular components that would be brought on site and assembled together. Great River Energy is currently exploring weatherization issues with the equipment vendor. If enclosures are necessary for either project location, materials would be compatible for Elk River's meteorological conditions and any local building codes. 7. Signage — (at time of installation, a separate permit is required for each sign) We do not anticipate any changes to existing signage for the proposed combustion turbine. 7.1. How many? Not Applicable 7.2. Proposed sizes? Not Applicable 7.3. Locations? Not Applicable 7.4. What type? Not Applicable 8. Is there outdoor storage? As noted, the existing backup fuel oil storage tank will be sufficient to supply the proposed and existing combustion turbines. Accordingly, the proposed project is not expected to involve any additional permanent outdoor storage. During construction, materials and project components may be temporarily stored in close proximity to the final project site and/or within the existing RDF building. (Within the existing campus footprint, multiple outdoor storage areas are present. Independent of the proposed project, and part of the site restoration following demolition of the ERERS, Great River Energy is intending to relocate one of these existing storage yards to the former ERERS footprint area as shown in Figure 4.) Project Narrative Great River Energy — Proposed Combustion Turbine Addition 8.1. What is being stored? Construction materials and project components. (Within the outdoor storage area proposed to be moved following demolition, the materials stored include transmission service -related components, such as spare substation or transmission line equipment, hardware, etc.) 8.2. How much? The space and amount of material to be stored is for the proposed project it yet to be determined. (Site restoration after demolition is currently planned for the second half of 2021 and specifics are yet to be determined.) 8.3. Proposed screening? As noted in item 5 above, the proposed project, including any areas used for temporary storage near the existing 200 MW combustion turbine is screened by the trees and privacy fencing on the west side of Highway 169. (Site restoration of the ERERS area will include replanting the hillside along Highway 10 with pollinator - friendly plants. Additionally, the area of the proposed storage yard will be on top of the hill and thus elevated from the view of Highway 10. The storage yard itself will likely have a six -foot -tall chain link fence and will include privacy slats or screening on the Highway 10 side.) Project Narrative Great River Energy — Proposed Combustion Turbine Addition Figure 3 — Example of One Proposed Combustion Turbine Being Considered Project Narrative Great River Energy — Proposed Combustion Turbine Addition Figure 2 — Approximate Footprint for Proposed Combustion Turbine Project Narrative Great River Energy — Proposed Combustion Turbine Addition Figure 1— Potential Location for Proposed Combustion Turbine Project Narrative Great River Energy — Proposed Combustion Turbine Addition ^I Figure 4. Proposed location of relocated storage yard and overflow parking area. RE W EW Y —GP,E -=-H . CG.FI r •400 �. k River StatiA:; �w • Elk Riveakin Storage yard to be relocated Proposed area for relocated storage yard and overflow parking Project Narrative 8 Great River Energy — Proposed Combustion Turbine Addition