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Removal of Morro Bay / Dynegy Oil Tanksby Jack McCurdy
Dynegy, the owner of the Morro Bay Power Plant, says it hopes in the coming weeks to begin removing from the plant site the six 32-feet tall storage tanks that contained the oil to fuel the plant since it opened in 1955 through the mid-1990s. The oil had been something of a plague on Morro Bay until Dynegy switched to natural gas in 1995. Dynegy had planned to start removing the tanks on July 12, but has run into an apparent delay in obtaining approval from the California Energy Commission, which has higher priorities for its staff time. Dynegy said in a letter to the Commission that "any delay in starting this project will have impacts to resources . . . of Dynegy, its demolition contractor, the city of Morro Bay, the state Department of Toxic Substances Control, and PG&E." (PG&E developed and operated the plant until 1998 and may still have some obligations to remediate the land once the tanks are removed.) Delays in starting the project could be costly, which then might affect the availability of financial resources of Dynegy and others to complete it within an acceptable time frame. Concerned citizens can support Dynegy's and the city's call for prompt authorization for the tanks removal by emailing Chris Marxen of the Siting, Transmission, and Environmental Protection division. The big tanks have been a prominent part of the plant in the eyes of residents due to the syrupy residue from burned oil that was deposited on cars and other outdoor surfaces throughout the community for many years. The residue was considered to be very unhealthy and, as a Dynegy press release said recently, the oil burning was stopped 15 years ago in order to "meet increasingly stringent air quality requirements." However, it was later discovered through air quality research and Energy Commission staff reports that the burning of natural gas by power plants and other industrial facilities also generates what is called particulate matter that the U.S. Environmental Protection Agency has found also endangers public health. But with the oil tanks out of use and the power plant now operating on natural gas for only about six per cent of the time, those health risks have been minimized. Plans for a large new gas-fired plant have been shelved, although Dynegy has said it may consider installing several smaller "peaker" gas-burning generators on the site, if the existing plant is shut down in 2015. That is what Dynegy has said it is planning to do under a new state policy restricting use of estuary, bay, and ocean water for plant cooling. The plant has been drawing water from the Morro Bay National Estuary for cooling purposes for 55 years. Since 1995, the "tank farm" was essentially abandoned until 2003 when Dynegy "initiated industrial cleaning services, insulation removal and piping removal activities, leaving the tanks isolated and oil free," the press release said. It is required to restore natural habitat on the site, a Dynegy spokesman said. Removal of the tank materials will involve about two to three dump trucks a day traveling through Morro Bay, the spokesperson said. They will transport the material from the torn-down tanks on a route from the plant entrance south along the Embarcadero, east on Beach Street and north on Main Street to Highway 1 and then eastward. The trucks may be in operation from 7 a.m. to 5 p.m. Monday through Friday. The whole job is expected to take between 30 and 45 days, the spokesman said. Silverado Contractors, Inc., will dismantle and transport the tank’s scrap metal to a licensed and approved recycling facility for beneficial re-use, Dynegy said. It would not reveal the cost of the removal operation. The Commission will provide oversight for compliance with conditions of the removal permit, which covers noise levels, truck traffic, biological and cultural requirements, the release said. The release added that if residents have questions or concerns about the dismantling and removal of the tanks, they can call the plant at 595-9702. Steve Goschke is the plant manager. Removal of the tanks is required under two authorities. One is a permit for this purpose approved by the California Energy Commission, which grew out of the Duke Energy application to build a new power plant in Morro Bay. The application was conditionally approved by the Commission in 2004 but was never implemented by the plant owner. However, a separate permit requiring the tank demolition was issued at the time and remains in force. But the Commission's technical staff has not been given authority to process documents or information submitted by Dynegy to go forward with the demotion due to other current priorities the Commission has, according to city staff. The main priority for the Energy Commission and its staff is solar power: to respond to applications for certification of proposed solar facilities eligible for federal American Recovery and Reinvestment Act funding. Under the Act, in order to receive funding, a solar facility must obtain certification by September in order to begin substantial construction by the end of the year, which is required if funded. Both Dynegy and the city have informed the Commission of their desire to complete the demotion of the tanks this year. City staff says it has been submitting comments on the pending demolition permit. The plant owner is also obligated to remove the tanks under an agreement to lease ocean-front public land by the city to Dynegy. The public land between the plant and the beach contains the outfall channel, which carries water used for plant cooling from the plant for discharge into Estero Bay adjacent to Morro Rock. The lease required Dynegy to begin the removal process last September.
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