ARCHIVED REPORTS LEC APPLICATION FOR CERTIFICATION

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5.1 AIR QUALITY 5.1.7.2.1 California Clean Air Act AB 2595,the California Clean Air Act (CAA) was enacted by the California Legislature and became law in January 1989. The CAA requires the local air pollution control districts to attain and maintain both the federal and state ambient air quality standards at the"earliest practicable date." The CAA contains several milestones for local districts and the CARB. SJVAPCD was required to submit to the CARB an air quality plan,with updates as necessary, defining the program for meeting the required emission reduction milestones in the San Joaquin Valley. Air quality plans must demonstrate attainment of the state ambient air quality standards and must result in a five percent annual reduction in emissions of nonattainment pollutants (ozone,PM10,PM2.5,and associated precursors) in a given district (H&SC§40914). A local district may adopt additional stationary source control measures or transportation control measures,revise existing source-specific or new source review rules, or expand its vehicle inspection and maintenance program (H&SC§40918) as part of the plan. District air quality plans specify the development and adoption of more stringent regulations to achieve the requirements of the Act.The applicable regulations that will apply to LEC are included in the discussion of District prohibitory rules in Section 5.1.7.3. 5.1.7.2.2 Greenhouse Gas Initiatives In 2006, California enacted the California Global Warming Solutions Act of 2006 (AB 32). It requires the California Air Resources Board (CARB) to adopt standards that will reduce statewide GHG emissions to statewide GHG emissions levels in 1990,with such reductions to be achieved by 2020. To achieve this, CARB has a mandate to define the 1990 emissions level and achieve the maximum technologically feasible and cost-effective GHG emission reductions. The CARB adopted early action GHG reduction measures in October 2007 and will establish statewide emissions caps by economic"sectors" in 2008. By January 1,2009, CARB will adopt a scoping plan that will identify how emission reductions will be achieved from significant sources of GHG via regulations, market mechanisms, and other actions. CARB staff will then draft regulatory language to implement its plan and will hold additional public workshops on each measure,including market mechanisms. SB 1368, also enacted in 2006,and regulations adopted by the CEC and the Public Utilities Commission pursuant to the bill,prohibits utilities from entering into long-term commitments with any baseload facilities that exceed the Emission Performance Standard of 0.500 metric tones of CO2 per megawatt-hour (1,100 pounds CO2/MWh).Specifically,the Emission Performance Standard (EPS) applies to base load power from new power plants, new investments in existing power plants, and new or renewed contracts with terms of five years or more,including contracts with power plants located outside of California. If a project,in-state or out of state,plans to sell base load electricity to California utilities,the utilities will have to demonstrate that the project complies with the EPS. Since the project is permitted for more than 60 percent annual capacity factor,it must emit less than 0.50OMt CO2/MWh to meet the EPS. The project is expected to emit 0.376 mt 5.1-64 SAC/371322/082410013(LEC_5.1_AIR_QUALITY.DOC)