1. EPA’s Response to the 2000/2001 Energy Crisis
Keeping the Lights on
Protecting Air Quality

2. The Issues New (ultraclean) Baseload Powerplants New Clean Peakers
Old Powerplants with Restrictions
RECLAIM
(very dirty) BackUp Generators
Other non-California Examples

3. The Context California has worst Air Quality in U.S.
California fifth largest economy in world
Domino Effect
Peak Power demand = Peak Ozone levels
CA Diesel Risk Reduction Plan

4. Baseload Powerplants Many in permitting queue in 2000 Issues Offsets
Difficult to find quality offsets in CA/AZ nonattainment areas
BACT
Small issues, eg 2.0 vs. 2.5 ppm NOx
Modeling
Very clean plants rarely isssue
Community Concerns
Most difficult

5. New Peakers
Davis Executive Order
Permitting Issues

6. Gov. Davis Executive Orders
Lift restrictions on power plants
Ie fuel use, operating hours
21 day permit for peakers

7. Peakers Permit Template Timing/Public Notice
Joint EPA/CAPCOA/CARB/CEC/ISO effort
BACT
Offsets
Permit Conditions
Timing/Public Notice
EPA Offer: AOCs
Several Issued

8. Older Powerplants with Restrictions
Not Many
Mostly old peakers with hours of operation limits
EPA offered AOCs
A few issued
NOT Considered: Relaxation of BACT, other emission limits

9. RECLAIM What is RECLAIM? Cap and Trade System for NOx and PM
Declining cap
For portion of stationary sources in SCAQMD

10. RECLAIM II The Crisis Solution
Many sources had delayed installing controls
Utilities!
IPPs inherited problem
Increased production, declining cap, delayed controls=market crisis
Solution
Temporarily isolate power producers from rest of RECLAIM sources
Require controls on schedule
Forward fund reductions, ensure environmental

11. BUGs Thousands in State Very Dirty Source of Electricity EPA letter 1
Context: Title V
Abuses
ISO encourages sources to run BUGS
NOT in emergency situation

12. Other Examples Hawaii Arizona Load Demand in chunks
Outer Islands, Resort Driven
Careful management of pre-construction activities
Arizona
SCR for generator lost in Atlantic
Local AOC, no Federal Action requested
Substation fire
APCO allows use of BUGs
Analysis of AQ impact?

13. Lessons Learned Clean Air Act has mechanisms to accommodate a crisis
Planning is still essential
Public Health protection paramount
Environmental and Energy Regulators need better mutual understanding