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Response to the California Power Crisis

California Environmental Protection Agency. Air Resources Board Stationary Source Division. Response to the California Power Crisis. March 15, 2001 Sacramento, CA. Topics Covered. ARB Role in the Power Plant Siting Process Air-Related Actions Authorized by Governor’s Executive Orders

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Response to the California Power Crisis

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  1. California Environmental Protection Agency Air Resources Board Stationary Source Division Response to the California Power Crisis March 15, 2001 Sacramento, CA

  2. Topics Covered • ARB Role in the Power Plant Siting Process • Air-Related Actions Authorized by Governor’s Executive Orders • ARB Actions to Implement Governor’s Executive Orders • Other Related Actions • Next Steps

  3. ARB Role in CEC Siting Process • Technical Assistance to Local Air Districts and CEC • Currently Following 14 Power Plant Projects Under Review with CEC • Guidance for Power Plant Siting and BACT (September 1999) • Review and Comment on the District DOC

  4. Remove Permit Operating Hour Restrictions for Units Under DWR Contract Charge Mitigation Fees for Emissions in Excess of Permit Limits Create State Offset Bank for New Peaking Plant Projects On-Line by Summer 2001 Authorized Actions UnderGovernor’s Executive Orders

  5. State and Local Agencies Authorized to Shorten CEQA Review Time CEC 21-Day Expedited Permitting Process for New Peaking Plants On-Line by Summer 2001 Authorized Actions UnderGovernor’s Executive Orders(continued)

  6. Implementing Executive OrdersRemove Existing Permit Limits • Directs are Directed to Remove Operating Hour Restrictions • Mitigation Fee for Emissions in Excess of Previous Permit Limits

  7. Credits Available for NOx and PM10 for Natural Gas-Fired Peaking Units Credits Leased for 3 Years (Expire End of Summer 2003 Peak Season) Secure ERCs for Remaining Power Plant Life Prior to Lease Expiration ERC Bank Populated with ARB Funded Reductions from Controlling Existing Sources Implementing Executive OrdersState Emission Reduction Credit Bank

  8. PM10 ERCs in Proportion to PM10 Emissions from PUC-Quality Natural Gas Cost of NOx or PM10 Credits for 3-Year Period, $6,000/Ton per Pollutant Funds to Emission Reduction Programs in District where New Peaking Unit Located Initial Allocation 21 TPY NOx per Peaking Unit (Adjust to District Offset Ratio) Implementing Executive OrdersState Emission Reduction Credit Bank(continued)

  9. Apply by Submitting Copy of District or CEC Authority to Construct Permit (and Power Contract with DWR, if Applicable) Credits Disbursed Via Letter to Project Proponent No Deadline to Apply for ERCs, Except that New Peaking Unit to be On-Line Summer 2001 Implementing Executive OrdersState Emission Reduction Credit Bank(continued)

  10. Implementing Executive OrdersCEC Emergency Permitting Process • ARB Issue Permits Only if Concurrent District Action Not Timely • ARB Developed Application Checklist and Simple-Cycle Gas Turbine Permit Template with Input from CEC, U.S. EPA, and Districts • Forms on ARB Web Site “Energy Activities” Page: www.arb.ca.gov/energy/energy.htm

  11. Other Related ARB Activities • Tracking Control Technology Installation Schedules and Peaking Unit Operating Hour Limits • Staff Making Weekly Phone Calls to Districts and Plant Personnel • Database to Maintain Phone Logs and Permit Information • Holding Bi-Weekly Conference Calls with Districts, CEC, U.S. EPA, and ISO to Resolve On-Going and Potential Issues

  12. Next Steps • Continue Coordination with Districts, CEC, U.S. EPA, and ISO • Be Prepared to Act if Districts Fall Short of Directives in Executive Orders • Expedite Power Plant Project Reviews • Work with U.S. EPA to Resolve Any Federal Permitting Issues with Executive Orders

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