Magnolia Power Plant Petition to Amend & Distributed Energy Backup Assets Award

The Magnolia Power Plant (MPP) is a 323-megawatt, combined-cycle natural gas facility. The MPP was certified by the California Energy Commission (CEC) in March 2003 and began commercial operation in September 2005. On February 20, 2024, Burbank, as Operating Agent on behalf of the MPP, submitted two grant applications to CEC under the Distributed Energy Backup Assets Program (DEBA) for a proposed Advanced Gas Path Resiliency Upgrade project and a proposed Advanced Compressor Resiliency Upgrade project. The Advanced Compressor Resiliency Upgrade project is designed to enhance output and efficiency by re-engineering compressor components with new aerodynamics, materials, and designs. The Advanced Gas Path Resiliency Upgrade project is designed to enhance existing gas turbines by improving hot gas path components to increase power output, reduce fuel consumption (lower heat rate), and extend maintenance intervals. To facilitate the Projects, SCPPA submitted a Petition to Amend (PTA) the license and conditions of certification for the MPP. On November 17, 2025, the CEC approved the PTA and provided the grant funding Burbank requested. CEC approved the PTA based pursuant to the CEC’s regulatory program certified by the Secretary of the Natural Resources Agency under section Public Resources Code section 21080.5 and California Code of Regulations, title 14, section 15251(j). Approval of the PTA was based on a CEC staff assessment and certain CEC findings, including a finding that any environmental impacts of the Projects will be less than significant with the addition of new or amended conditions of certification (COC): (AQ-2b, AQ-11, AQ-22, AQ-23, AQ-25, AQ-27, the addition of new COCs AQ-2c, AQ-9, AQ-11a, AQ-25a, and the deletion of the existing COC AQ-2a). These COCs conform to a new Authority to Construct permit issued by the South Coast Air Quality Management District (SCAQMD) on October 16, 2025. Pursuant to Section 15096 of the CEQA Guidelines, SCPPA may elect to rely on the Section 1769 assessment from the CEC to support its determinations under CEQA as a Responsible Agency.