Office of Governor Gary Locke
FOR IMMEDIATE RELEASE - August 23, 2002
Contact:  Governor's Communications Office, 360-902-4136

Gov. Locke Approves State-of-the-Art Natural-Gas Energy Plant

OLYMPIA – Aug. 23, 2002 – Gov. Gary Locke today cleared the way for the development of a state-of-the-art natural-gas-powered electricity-generating plant in Whatcom County, citing the need for additional reliable, long-term energy sources and noting the project’s high levels of environmental controls.

“The Sumas Energy 2 Plant will benefit our state by meeting the ongoing need for stable, clean power sources in the Northwest and by providing hundreds of family-wage jobs during construction, ” Locke said. “Moreover, Sumas Energy 2 sets a new standard of excellence for environmental protection.”

The governor approved a unanimous recommendation of his Energy Facility Site Evaluation Council (EFSEC) to grant Sumas Energy 2, Inc., a Kirkland-based firm, permission to build a proposed 660-Megawatt power plant in Sumas, Wash., about one-half mile south of the Canadian border.

On July 18, Locke hosted a public meeting in Olympia to hear the perspectives of all sides. More than 100 people attended, and about 20 people spoke.

“Clearly, the decision to proceed with this project involved many complex issues, and I carefully evaluated the concerns of many passionate citizens who contacted us during the review process,” Locke said. “I thoroughly weighed the technical issues analyzed by our experts along with the perspectives I heard from people on both sides of the issue and the border.”

“After careful consideration, I believe this energy plant is safe and is in the best interests of our state and region. I’m satisfied that Sumas Energy 2 has substantially modified its application to include a number of key environmental safeguards for people in Washington and British Columbia,” Locke said.

Sumas Energy 2 first applied for the necessary state approval in January 1999, but then withdrew its application and reapplied in January 2000. In February 2001, EFSEC denied the application, but allowed the company to revise and resubmit its application.

In June 2001, the company submitted a substantially modified application, eliminating the use of back-up diesel oil generation capacity, which reduced many environmental concerns. The governor’s approval of the application requires zero net nitrogen oxide and particulate emissions and mitigation of carbon dioxide emissions as well as impacts on water supply, wetlands, flood potential and noise.

As part of the “site certification agreement” the governor approved today, Sumas Energy 2 will be able to build a 4.5 mile natural gas pipeline to convey gas from the border to the plant and a short portion of the 5.9 miles of transmission line to the B.C. Hydro Clayburn Substation near Abbotsford, B.C. The Canadian National Energy Board must still approve the transmission line within British Columbia.

An air pollution permit accompanying the site certification agreement will prevent any significant air quality deterioration by limiting emissions to levels well below those allowed by both U.S. and Canadian standards. In fact, the plant will meet Canadian standards that won’t be mandatory until 2010. Sumas Energy 2 will also pay $8 million toward projects to reduce greenhouse gas output.

Locke said, “It’s important that we take action to address greenhouse gas emissions, and I’m pleased that Sumas Energy 2 volunteered to meet the Oregon standards that were in place when its application was filed. I’m confident the plant will not adversely affect the people of Washington or Canada. Under our agreement, the state-of-the-art Sumas Energy 2 facility will be the cleanest in the region.”

Washington has no carbon dioxide regulations; however, Locke recently asked EFSEC to begin developing new carbon dioxide emissions standards. The goal is to have the new standards in place for future projects.

In the current submittal, Sumas Energy 2 has committed that at least 60 percent of the plant’s capacity will be sold to electricity providers under long-term contracts for at least five years. At least 40 percent of the output will be sold to purchasers with “integrated resource plans,” which spell out how power companies will meet future demand by generating more power, increasing efficiency and promoting conservation.

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