Governor’s Clean Energy GREEN TEAM

Annual Statewide Air Quality Conference

May 10, 2001

AB 970 Summary

Created Governor’s Clean Energy Green TeamExpedited Permitting Available for Certain “Peaking” Power Plants and those Without Significant Environmental EffectsFunded Peak Electricity Demand Reduction Programs at CEC and CPUC

Green Team Agencies

State Agencies: EOB, CPUC, CEC, CalEPA, Resources, OPR, TTCA

Federal Agency Partners: US FWS, US EPA

Local & Regional Agency Partners: SDAPCD, SJVAPCD, BAAQMD

Up to 4 more Agency partners

Green Team Responsibilities

Guidance Documents for Power Plant Construction and Environmental Effects and MitigationEssential Input Guidance: water supply, emission offsets, natural gasLocal Government Permitting AssistanceRecommend Financing Programs for Renewable Energy Projects

Electricity GenerationOutlook: Summer 2001

Statewide Outlook: If hotter than normal (1:10) up to 4990 MW short without new projectsAdded twist: low hydropower year

San Diego and San Francisco have transmission constraintsToday, 14,000 MW currently out of service – no way for CA to verify reasons for most outages

Executive Orders:Expedited Processes

Expand Capacity at Existing Plants

Re-Start Old Plants

Speed Governmental and Public Review of New Facilities

New Projects State– Wide: Summer 2001

3 Major Power Plants: 1262 MW Re-starts of Natural Gas and Biomass plants: 590 MWNew Renewable Projects: 80 MW (de-rated)New Peakers: 2000 MWRe-rates: 650 MW

Power Plant Permitting

California Energy Commission Permits:Thermal (e.g., natural gas, geothermal) and50 MW and larger

Local Government PermitsNon-Thermal of any size (e.g., wind)Thermal, smaller than 50 MW (e.g., small peakers)

APCDs/AQMDsAll power plants with emissions

CEC Emergency Permit for Summer 2001

Emergency Process for New Facilities3 Week Permit Review (EO D-26-01, D-28-01)Eligible:

Thermal, 50 MW and largerUnder 50 MW, thermal projects with ISO contractsOnline by September 30, 2001No “fatal flaws”State and local agencies authorized to alter procedures to meet emergency schedule

Local Government Expedited Process

Expedited Review for New Facilities7 Day Public Review of CEQA Documents (e.g., NOP, EIR, ND, etc.) (EO D-26-01) Eligible:

Non-thermal or under 50 MWOnline by September 30, 2001Local government discretion to use shortened time periodGreen Team assistance to obtain expedited federal and state approvals – CalEPA Permit Assistance Centers

Expanded Capacityat Existing Plants

Executive Order D-22-01Expand capacity by up to 50 MW using existing installed equipmentNo CEC permission required if increased production is under 50 MW and limited to June 1, 2001 -- October 1, 2001Order expires December 31, 2001

Re-Start of Existing Plants

Executive Order D-22-01 & D-28-01CEC license procedure shortened

Local, regional and state reviewing agencies authorized to shorten procedures to meet CEC schedule

Order expires December 31, 2001

Air Permitting

APCDs and AQMDsCARB Emission Credit Reduction BankExecutive Order D-24-01, D-28-01

ERCs available through the California Air Resources BoardERCs achieved through CARB-funded reductions in emissions from existing sources

Key ERC Bank Information

Available to powerplant applicants who can be online by 9/30/01ERCs for NOx and PM10Bank ERCs expire 11/1/03; replacements are the responsibility of applicantMitigation Fee: $6,000/ton/pollutant

Emergency PeakerAir Requirements

Must Meet BACT by Summer 2002Shortage of SCR for Summer 2001

Up to 25ppm NOx for Summer 2001

Up to 2000 MW of new peaking power by Sept 2001Many projects meeting BACT immediately

Statewide AirOutlook

2163 MW -- installed SCR between10/2000 and 5/22001

1500+MW --currently installing, finishing by early June

500+ MW --installed NOx burners

⇛ Over 4100 MW with NOx Controls installed since Summer 2000

Air Challenges

Permit Operating Hour Restrictions Removed for Essential UnitsBlackouts = Backup Generators (diesel)Proposals to Use BUGs in Advance of Blackouts

ISOSDG&EInterruptible Program