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Barry Wallerstein, D.Env Executive Officer, South Coast AQMD CFEE Workshop August 30, 2007

The Intersection of Energy Reliability Objective and Other Environmental Policies and Programs, and the Role of Markets. Barry Wallerstein, D.Env Executive Officer, South Coast AQMD CFEE Workshop August 30, 2007. Air Quality Challenges. Localized Exposure/Environment Justice Air Toxics

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Barry Wallerstein, D.Env Executive Officer, South Coast AQMD CFEE Workshop August 30, 2007

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  1. The Intersection of Energy Reliability Objective and Other Environmental Policies and Programs,and the Role of Markets Barry Wallerstein, D.Env Executive Officer, South Coast AQMD CFEE Workshop August 30, 2007

  2. Air Quality Challenges • Localized Exposure/Environment Justice • Air Toxics • Particulate Matter (PM2.5) • Regional Pollutants • Particulate Matter (PM2.5) • Ozone (Smog) • Climate Change • GHG

  3. Federal Standard

  4. Federal Standard

  5. Federal Standard

  6. Federal Standard

  7. CO2 Emission Comparison(2002, In Million Metric Tones ) 485 332 153

  8. Comparison of Emissions from Power Generation Units

  9. Actions Taken By SCAQMDDuring 2000-2001 Energy Crisis • Issued SCAQMD Executive Orders • Implemented Governor’s Executive Orders • Modified Emergency ICE Permit Conditions • Expedited New Power Plant Permitting • Developed State Mitigation Fund for New Peakers • Approved inter-district transfer of ERCs • Amended RECLAIM Program • Developed R1309.1

  10. Electricity Generation Challenges • In-Basin Aging Power Plants • Scarcity of Emission Reduction Credits (ERC) • Transmission Line Limitations • Reliability • Facility Siting/ Env. Justice Concerns

  11. Aging Power Plants in South Coast Area (as of 2010)

  12. PM ERC Market Price * Includes January through July 2007 data

  13. Air Quality and Power Generation Intersections • Need Determination • New Capacity Needed for Growth and Replacement • Base load vs. peaking units • Technology Selection • DSM/Renewables vs. Fossil • Siting • System Stability vs. Localized/EJ Impacts

  14. SCAQMD R1309.1 Priority Reserve • Tiered requirements based on location that reflect current air quality • Mitigation fees for ERCs to invest in pollution reduction projects • $92,000/lb PM; $34,400/lb SOx • ERCs to be issued for • First 2700 MW units unless approved by the Board • After CEC approval and long-term contracts except for serving native load

  15. Proposed Projects

  16. Other Issues • Long Lead Time for Project Development • Uncertainty • Regulatory • Business

  17. Other SCAQMD Commitment • Energy Resource Planning ($1,000,000) • Initial RFP for $450,000 • Feasibility/Pilot Study • Advanced PM2.5 Control Technologies ($4,000,000)

  18. Policy Recommendation • Enhanced Energy Resource Planning • Integrate Energy and Air Quality Policies • Develop a Master Plan • Determine Conformity to Master Plan • Establish Mandatory Retirement Schedule for Aging Plants

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