South Coast Air Quality Management District

Execute Additional Contracts to Generate Emissions Credits Under State Emissions Mitigation Program

SYNOPSIS:

At the July 20, 2001 meeting, the Board established the State Emissions Mitigation Fund to recognize up to $30,000,000 in State funds from the CARB and approved the first round of emission reduction projects amounting up to $12,447,439. This action was in response to the Governor’s statewide program to mitigate excess emissions from peaker power generation units. Funds transferred from the CARB are for implementation of local projects within the South Coast Air Basin. At the September 21, 2001 meeting, the Board approved the second round of emission reduction projects totaling up to $6,372,471. Staff recommends the expenditure of an additional $604,335 from this fund for the third round of emission reduction projects.

COMMITTEE:

None

RECOMMENDED ACTION:

Authorize the Executive Officer to execute contracts to fund projects listed in Attachment A, selected pursuant to the CARB’s requirements within the South Coast Air Basin, in an amount not exceeding $604,335 from the State Emissions Mitigation Fund.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

The Governor has recently created a statewide program to mitigate excess emissions from peaker power generation units that are needed to alleviate the power crisis in California. The CARB has solicited project proposals in this regard, and has requested that the AQMD administer these emission reduction projects qualified under the CARB guidelines that will be conducted in the South Coast Air Basin. In response to this request, the Board at its July 20, 2001 meeting, approved the establishment of the State Emissions Mitigation Fund, and approved the first round of emission reduction projects amounting up to $12,447,439 in pass through funds. At its September 21, 2001 meeting, the Board approved the second round of emission reduction projects amounting to $6,372,471 in pass through funds.

Proposal

New project proposals have been evaluated for the third round of funding according to the CARB selection procedure. The newly qualified projects under the CARB guidelines are listed in Attachment A. The list shows the cost and the expected NOx and particulate matter emissions reductions for each project. Once realized, these projects will offset emission increases from peaker power generation units that must operate to supply peak power loads. Total cost of the additional projects is $604,335. Due to the urgent need to offset emission increases from these peaker power units, AQMD staff proposes that the Board authorize the Executive Officer to execute contracts for the projects listed in Attachment A. Contracts will be executed for each selected project expeditiously so that the emission reductions can occur as soon as possible.

As additional phases of CARB project awards are announced, the AQMD staff will report back to the Board, and will seek the Board’s approval to award contracts in the same fashion as this Board action.

Benefits to AQMD

The successful implementation of this program will result in mitigation of excess NOx and particulate matter emissions produced by peaking power plants, which must operate to accommodate peak electrical loads. Some of these projects will also produce concurrent toxic compounds emissions reductions (e.g. lowered diesel exhaust particulate), which is an additional benefit. Finally, administration of this program at the local level will provide greater certainty and confidence for achieving the emission reductions since the AQMD has acquired experience and expertise in identifying emission sources and available control or prevention technologies.

Resource Impacts

Total cost of the proposed projects listed in Attachment A, shall not exceed $604,335. Sufficient funds are available from the State Emissions Mitigation Fund.

Attachment:
List of State Emission Mitigation Projects

Attachment A: List of State Emission Mitigation Projects
 

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