Jan. 7, 2005
The Southland’s air agency today adopted changes to the region’s
pollution credit trading program to significantly reduce emissions from the
area’s largest facilities.
“Cost-effective technologies are available now that can significantly
reduce emissions from facilities in the program,” said Barry Wallerstein,
executive officer of the South Coast Air Quality Management District. “We
believe the changes meet state law requirements and maintain the integrity
of the program, while continuing to move closer to the region’s air quality
goals.”
AQMD’s Governing Board today approved changes to its REgional CLean Air
Incentives Market (RECLAIM) program that is planned to result in more than
20 percent reduction in emissions from facilities in the program.
Today’s adopted changes to the RECLAIM program include:
- Cumulative reductions of 7.7 tons per day of smog-forming oxides of
nitrogen (NOx) from all RECLAIM facilities by 2011, to be implemented in
phases (4 tons per day in 2007 and 0.925 tons per day in each of the
following four years, 2008-2011;
- Upon AQMD Board concurrence, credits in years 2008, 2009, 2010 or 2011
may be restored if the average credit price per ton in any of those years
exceeds $15,000;
- A limited exemption for qualifying facilities that have already
installed the cleanest technology available to reduce emissions. Emission
reductions foregone from exempt facilities would then be distributed
amongst other facilities in the program; and
- Modified trading restrictions for electric power producers until
2007. Restrictions were placed on power producers during California’s
energy crisis in order to stabilize the trading market. Some restrictions
remain in place until 2007 to encourage other RECLAIM facilities to add
emission controls rather than buy credits.
RECLAIM was adopted in 1993 as an innovative way to reduce emissions from
the Southland’s largest facilities. There are currently about 330
facilities in RECLAIM including power plants, oil refineries and other
manufacturing plants.
Each facility received an annual emissions limit at the start of the
program, which decreased each year through 2003. Firms that emit less than
their respective limit may sell RECLAIM Trading Credits to firms that emit
more than their limit. Since total emissions from all of the firms stay
under the aggregate limit, the region’s air becomes cleaner and businesses
gain regulatory flexibility and save money.
Since the adoption of RECLAIM in 1993, there has been a 50 percent
decrease in emissions, new technology for pollution controls, better
monitoring and reporting, and a high level of compliance in achieving
facility emissions caps.
The 7.7 tons per day reduction of NOx emissions relies on known
technologies that are currently available and cost effective. Reductions in
NOx will help the region attain ozone and PM2.5 air quality standards.
In other action today, the Board:
- Adopted AQMD Chairman William A. Burke’s “Clearing the Air” initiative
for 2005 to engage residents and opinion leaders in a dialogue on how to
speed up progress in the war on smog. The new initiative includes the
AQMD’s first-ever mobile board meetings to encourage the public to weigh
in on local air quality issues and the Children’s Clean Air Bill of
Rights;
- Adopted Rule 1157 – PM10 Emission Reductions from Aggregate and
Related Operations – to further minimize fugitive dust emissions from
facilities that produce sand, gravel, and crushed stone;
- Set a public hearing for Feb. 4 on the executive officer’s priority
goals for fiscal year 2005-06; and
- Awarded almost $1 million in funding for eight compressed natural gas
(CNG) fueling stations in the four-county region. Funding will offset
costs for installing or upgrading CNG fueling stations in Anaheim, Carson,
Gardena, Lake Elsinore, Sierra Madre, UCLA, and Whittier.
AQMD is the air pollution control agency for Orange County and major
portions of Los Angeles, San Bernardino and Riverside counties.
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