1. November 8, 2011

2. California Environmental Quality Act California Environmental Quality Act SB 97 (Dutton) SB 97 (Dutton) Consistency Consistency Lead agencies looking to air districts for guidance Lead agencies looking to air districts for guidance

4. No Threshold No Threshold – Permitted by CEQA – Still must evaluate GHG emissions – Large number of projects requiring EIRs – More CEQA challenges

5. Zero Threshold Zero Threshold – Any net increase in GHG emissions significant – Projects may require EIRs for GHG emissions only – More CEQA challenges

6. Non-Zero Threshold Non-Zero Threshold – Above certain level = significant – Common approach for other air pollutants – Would establish that very small projects do not contribute substantially to the global GHG load – Would allow approval of small projects without need for EIRs or mitigation – Would reduce environmental analyses

7. Statute and Executive Order Approach Statute and Executive Order Approach – AB 32 & EO S-3-05 objectives – Four options Tiered Approach Tiered Approach – Layered significance cut points – Seven CAPCOA & three other options

8. Applicable exemptions GHG emissions less than one or more significance thresholds adopted by lead agency GHG emissions consistent with approved local or regional GHG plan or comparable document No Further Action Less Than Significant Impact Significant Impact No Yes

9. Tiered Approach Tiered Approach – GHG Reduction Plan – Efficiency – Bright Line Gap – Quantitative Market Capture – Best Performance Standards – Criteria Pollutant

10. GHG Reduction Plan GHG Reduction Plan – A General Plan or Area Plan consistent with AB 32 reduction goals Efficiency Efficiency – Project GHG emissions/service population (SP) Project Level 4.6 MT CO 2 e/SP Project Level 4.6 MT CO 2 e/SP Plan Level 6.6 MT CO 2 e/SP Plan Level 6.6 MT CO 2 e/SP

11. Another Option Bright Line Gap Bright Line Gap

12. Quantitative Market Capture Quantitative Market Capture – Numeric bright line threshold set to capture 90% of GHG emissions Residential 900 MT CO 2 e/yr (33% projects) Residential 900 MT CO 2 e/yr (33% projects) Commercial 1,000 MT CO 2 e/yr (46% projects) Commercial 1,000 MT CO 2 e/yr (46% projects) Best Performance Standards Best Performance Standards – Most effective means of reducing GHG emissions

13. Criteria Pollutant Criteria Pollutant – Correlated to Districts criteria pollutant threshold Residential - 207 du (3,495 MT CO 2 e/yr) Residential - 207 du (3,495 MT CO 2 e/yr) General Office - 233, 470 sq ft (3,628 MT CO 2 e/yr) General Office - 233, 470 sq ft (3,628 MT CO 2 e/yr) Shopping Center - 67,640 sq ft (2,528 MT CO 2 e/yr) Shopping Center - 67,640 sq ft (2,528 MT CO 2 e/yr)

15. Regional consistency is desirable Regional consistency is desirable Tiered approach with simple bright line thresholds is desirable Tiered approach with simple bright line thresholds is desirable Proceed with developing Interim Thresholds Proceed with developing Interim Thresholds – May revise based on South Coast AQMD thresholds

16. Yes! Yes! – Questions? – Comments?