| Sept. 8, 2006 Southland
air quality officials today adopted a measure that will help prevent excess
air pollution due to future electricity shortages by temporarily making air
pollution credits available for new power plants in the region.
“Our demand for electricity is increasing and we need energy conservation
as well as additional power sources to prevent energy shortages,” said Barry
Wallerstein, executive officer for the South Coast Air Quality Management
District. “This measure will allow the possibility of super-clean, new
power plants in our region to prevent excess use of older, dirty plants and
standby diesel emergency generators during energy shortages.”
The South Coast Air Quality Management District (AQMD) Governing Board
today amended its Rule 1309.1 – Priority Reserve – to temporarily allow new
power plant projects to purchase pollution credits from AQMD’s Priority
Reserve account when credits are not available on the open market.
Funds collected from the sale of pollution credits must be used to reduce
emissions in the area adjacent to the power plant. Such emission reduction
projects may include replacing existing diesel school buses with new
alternative-fueled school buses or re-powering or retrofitting other diesel
mobile sources with particulate traps.
Under state and federal laws all emission increases from large new and
modified facilities must provide air pollution offsets, also known as
credits, to prevent an overall deterioration of air quality. Offsets are
created by over-controlling pollution sources or permanently shutting them
down. In recent years, air pollution offsets for certain pollutants have
become increasingly scarce on the open market.
Today’s changes to Rule 1309.1 will now allow new natural gas power
projects, with the lowest polluting designs in the world, to obtain sulfur
oxide (SOx), carbon monoxide (CO) and particulate matter (PM10) pollution
credits from AQMD’s Priority Reserve account. In addition, projects planned
in adjacent downwind areas – Antelope Valley and Mojave Desert – can also
obtain volatile organic compounds (VOC) credits.
The credits will only be available to power plant projects that filed a
complete
application with the California Energy Commission during calendar years 2005 through 2008.
The price of credits purchased from AQMD’s Priority Reserve is based on a
weighted average of current market prices, and will be $50,417 per pound for
PM10; $15,083 per pound for SOx and $12,000 per pound for CO. Downwind-area
projects can purchase VOC credits at $1,410 per pound.
AQMD’s Priority Reserve is a “bank account” of emission reduction credits
which prior to 2001 was only available to essential public service
providers, such as publicly owned sewage treatment plants, as well as
innovative technology and research projects. AQMD’s Priority Reserve
receives credits when facilities permanently shut down and surrender their
offsets.
In 2001, AQMD allowed new power plants to purchase Priority Reserve
credits during a three-year window when California experienced a shortage of
electricity and rolling blackouts and the demand for offsets in the open
market exceeded the available supply.
In other action today, the Board:
- Approved funding to implement air monitoring for smog-forming and
toxic air emissions in the port areas and along Interstate 710 as part of
the AQMD’s Clean Port Initiative adopted in January, 2006;
- Awarded contracts to develop and demonstrate exhaust after-treatment
systems for three different types of locomotive engines to reduce nitrogen
oxide and particulate matter emissions. The emission control devices
will be demonstrated on two Metrolink passenger locomotives and one
Pacific Harbor Line switcher locomotive in the Southland. There are more
than 150 locomotives in the four-county region that could be retrofitted
with this technology; and
- Amended Rule 1157 – PM10 Emission Reductions from Aggregate and
Related Operations – to streamline requirements and specify additional
dust control strategies to be implemented by aggregate loading and
transporting activities to qualify for a high-wind exemption.
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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