Governing Board Meeting November 14, 2013 District New Source - PowerPoint PPT Presentation

San Joaquin Valley Air Pollution Control District Governing Board Meeting November 14, 2013

• District New Source Review Rule: – Best Available Control Technology (BACT) – Offsets (Emission Reduction Credits, ERCs) – Public Notice • Overall District NSR more stringent than Federal NSR – Federal: Offsets and BACT only required of major sources of air pollution – District: Offsets and BACT required of major and minor sources

• District discounts credits for current and future rules at the time of banking • EPA preference: Discount at time of use – Stifles early or innovative reductions – Takes valuable property from those who move ahead of pollution reduction requirements – Use of un-discounted credits doesn’t affect attainment efforts when properly accounted for in attainment plans

• Innovative approach negotiated with EPA • Use the more stringent District requirements to show overall equivalency (on an annual basis) • Must make two showings: – District NSR rule requires as many offsets as federal rules, each year – Equivalent amount of surplus reductions are required, after discounting ERCs at time of use • “Hammers” fall if fail to show equivalency – Discount at time of use and/or – Make up shortfall with other credits, if available

• Annual demonstration (12-month period beginning August 20 of each year) • Annual Report due to EPA by November 20 of each year • Public hearing to present the report to the public and to the board

• 58 major projects – offsets required – Federal - 195 tons of NOx – District - 532 tons of NOx – Passed Test 1 – District required more offsets than federal NSR – District - 893 tons of surplus at time of use NOx available, more than the 195 tons required – Passed Test 2 – District ERC system exceeded federal requirements for surplus reductions • Result – Successfully shows equivalency

• Adequate ERC bank is critical to economic growth • District bank largest in state • Average five-year usage about 1000 tons/yr • Equates to about 2.5% of available credits in bank • Sufficient supply for now • Continue to look for means to extend useful life of credits, make adjustments if necessary