1. ENVIRONMENTAL DEFENSE Indirect Source Rules: Cleaning Air in California and Beyond

2. ENVIRONMENTAL DEFENSE Indirect Source Rule in California and Beyond California’s Failing Air Home of two of the most polluted regions in the countryHome of two of the most polluted regions in the country 90% of state’s residents exposed to unhealthful air each year90% of state’s residents exposed to unhealthful air each year Mobile sources account for two-thirds of the pollutionMobile sources account for two-thirds of the pollution Growing dependence on vehicles reduces air quality gainsGrowing dependence on vehicles reduces air quality gains Indirect Source Rule in California and Beyond ENVIRONMENTAL DEFENSE

3. Indirect Source Rule in California and Beyond A Solution to Growth-related Pollution: Indirect Source Rule Boldly recognizes what creates pollution growthBoldly recognizes what creates pollution growth Links air quality and land use decisionsLinks air quality and land use decisions Provides incentives for builders to think and act “green”Provides incentives for builders to think and act “green”

4. ENVIRONMENTAL DEFENSE Indirect Source Rule in California and Beyond ISR Beginnings EPA initiated the ideaEPA initiated the idea Developers pushed backDevelopers pushed back Limited local and state efforts evolvedLimited local and state efforts evolved –Colusa and Butte County Air Districts –Oregon and Connecticut Methodology improvesMethodology improves San Joaquin Valley begins new eraSan Joaquin Valley begins new era

5. ENVIRONMENTAL DEFENSE Indirect Source Rule in California and Beyond ISR Common Characteristics Limit indirect emissions from developments by addressing:Limit indirect emissions from developments by addressing: –The traffic linked to the new/modified development –Project type (parking lots, highways) –Energy demand from homes and businesses –The pollution from construction (including equipment) Achieved by:Achieved by: –Promoting emission-reduction measures –Allowing a fee mechanism for pollution not mitigated onsite

6. ENVIRONMENTAL DEFENSE Indirect Source Rule in California and Beyond Long-term strategy for air quality Long-term strategy for air quality Preserve open space and farm land Preserve open space and farm land Revitalize existing communities Revitalize existing communities Increase travel and housing choices Increase travel and housing choices Reduced congestion Reduced congestion Improve affordable housing Improve affordable housing opportunities opportunities Adaptable to any community Adaptable to any community ISR Benefits

7. ENVIRONMENTAL DEFENSE Indirect Source Rule in California and Beyond Case Study: The San Joaquin Valley Comprised of 8 counties Comprised of 8 counties “The Nation’s Salad Bowl”“The Nation’s Salad Bowl” Oil and gas projects Oil and gas projects Home to over 3.2 million residents Home to over 3.2 million residents Largest cities are Fresno, Bakersfield, Modesto, and Stockton Largest cities are Fresno, Bakersfield, Modesto, and Stockton Indirect Source Rule in California and Beyond ENVIRONMENTAL DEFENSE

8. The San Joaquin Valley: Primed for Pollution Environmental and geographic factorsEnvironmental and geographic factors Diverse pollution sourcesDiverse pollution sources Fast-growing region with unplanned developmentFast-growing region with unplanned development Increases in vehicle miles traveledIncreases in vehicle miles traveled Indirect Source Rule in California and Beyond ENVIRONMENTAL DEFENSE

9. Indirect Source Rule in California and Beyond The San Joaquin Valley: Air and Health EPA: Many cities and counties in the SJV are the most polluted in the U.S.EPA: Many cities and counties in the SJV are the most polluted in the U.S. 1 in 6 children in Fresno has asthma1 in 6 children in Fresno has asthma 12,000 residents hospitalized for asthma each year12,000 residents hospitalized for asthma each year 460 deaths a year460 deaths a year

10. ENVIRONMENTAL DEFENSE Indirect Source Rule in California and Beyond ENVIRONMENTAL DEFENSE

11. Indirect Source Rule in California and Beyond ENVIRONMENTAL DEFENSE

12. Indirect Source Rule in California and Beyond The San Joaquin Valley: Path to an ISR Ozone and PM State Implementation Plans (SIPs)Ozone and PM State Implementation Plans (SIPs) Legislative mandateLegislative mandate Some developers’ desireSome developers’ desire Rules 9510 and 3180, adopted December 2005Rules 9510 and 3180, adopted December 2005

13. ENVIRONMENTAL DEFENSE Indirect Source Rule in California and Beyond The San Joaquin Valley ISR: Three Elements Covered projects and pollutantsCovered projects and pollutants Measuring pollution reductionsMeasuring pollution reductions Achieving reductionsAchieving reductions

14. ENVIRONMENTAL DEFENSE Indirect Source Rule in California and Beyond The San Joaquin Valley ISR: Covered Projects and Pollutants Residential, commercial, and industrialResidential, commercial, and industrial –Based on project size and type (i.e. at least 50 residential units, 2000 sq. ft. commercial, etc.) –Does not affect small, reconstruction, or expansion projects Mitigates NOx and PM10Mitigates NOx and PM10 –Construction equipment –Operational: 33% NOx and 50% PM10 over 10 years

15. ENVIRONMENTAL DEFENSE Indirect Source Rule in California and Beyond The San Joaquin Valley ISR: Measuring Pollution Reductions Computer-generated modelsComputer-generated models –URBEMIS –http://www.valleyair.org –Project specific

16. ENVIRONMENTAL DEFENSE Indirect Source Rule in California and Beyond The San Joaquin Valley ISR: Achieving Reductions Onsite reduction measuresOnsite reduction measures Mitigation fee for offsite reductionsMitigation fee for offsite reductions

17. ENVIRONMENTAL DEFENSE Indirect Source Rule in California and Beyond The San Joaquin Valley ISR: Current Status Developers have been applyingDevelopers have been applying June 2006 lawsuitJune 2006 lawsuit Use of fees uncertainUse of fees uncertain Other districts considering ISR approachOther districts considering ISR approach

18. ENVIRONMENTAL DEFENSE Indirect Source Rule in California and Beyond The Future of Indirect Source Rules Address additional pollutantsAddress additional pollutants Strive for 100% mitigationStrive for 100% mitigation Address all developmentsAddress all developments (small, old, and new) Set realistic timelinesSet realistic timelines

19. ENVIRONMENTAL DEFENSE Indirect Source Rule in California and Beyond ENVIRONMENTAL DEFENSE

20. Indirect Source Rule in California and Beyond More Info San Joaquin Valley Air Pollution Control District:San Joaquin Valley Air Pollution Control District:http://www.valleyair.org Environmental Defense report on ISR:Environmental Defense report on ISR: http://www.environmentaldefense.org/documents/4733_I ncentivesHealthyCommunities.pdf Kathryn Phillips, Manager, Clean Air for Life Project at Environmental Defense:Kathryn Phillips, Manager, Clean Air for Life Project at Environmental Defense:kphillips@environmentaldefense.org