1. Perspective on Contingency Mitigation Options Presented by John Annicchiarico, Senior Engineer August 17, 2015

2. Presentation Outline San Diego APCD Overview Permitting Process Permitting Example

3. What We Do Protect the public from harmful effects of air pollution Achieve & maintain air quality standards Foster community involvement Cost effective programs to meet air quality mandates

4. Ozone Levels Declining National Ozone Standard = 75 parts per billion Ozone Value (parts per billion) Proposed National Standard = 65 to 70 ppb Parts per Billion

5. Toxic Emissions Declining Cancer Risk (per million)

6. State Laws Control emissions from stationary sources (HSC 40000)  Rules to control emissions Establish & administer permit system (HSC 42300)  Permit conditions  Inspections  Renewed annually

7. District Permitting Evaluate applications with respect to regulations:  Local  State  Federal, e.g., NSPS, NESHAPs Issue Authority to Construct (ATC) with conditions ensuring compliance with all District regulations Must be in compliance with all requirements on date ATC is issued

8. District Permitting Once constructed, ATC becomes temporary permit to operate until District inspects equipment Inspect and issue a Startup Authorization (SA) to allow testing in accordance with ATC Permit to Operate (PTO) issued if equipment complies with all requirements.

9. Projects Subject to CEC Jurisdiction Altered ATC process (Rule 20.5) CEC Application for Certification (AFC) is considered equivalent to application for District ATC The District publishes a Preliminary Determination of Compliance (PDOC) District provides Final Determination of Compliance (FDOC) to CEC FDOC conditions ensure compliance

10. Projects Subject to CEC Jurisdiction FDOC acquires all the “rights and privileges” of an ATC once CEC approves AFC with a certificate containing all the FDOC conditions The District considers the AFC approval date as the date the ATC is granted by the District

11. ATC Expiration Initial ATC typically allows one year for construction to be completed May grant longer period if required for construction ATC, including any extension, valid for no longer than five years Reevaluated for compliance with current regulations before any extension is granted

12. Changes in Regulatory Environment When ATC extension is requested, reevaluate:  Best Available Control Technology (BACT)  Lowest Achievable Emission Rate (LAER)  Air Quality Impact Assessment (AQIA)  Health Risk Assessment (HRA)  District/federal/state regulations

13. BACT/LAER Moving target Affected by:  Local permitting decisions  Other districts  Other states  EPA

14. AQIA New emission factors New ambient air quality standards Revised EPA modeling guidance Model (e.g. AERMOD) updates

15. HRA New emission factors Revised modeling guidance Revised health risk values

16. Regulations District prohibitory rules  Unlikely impact to new power plants District NSR  Currently being revised by District  Offsets  Demonstrated before FDOC issued  Surrendered prior to operation NSPSs / NESHAPs

17. Prevention of Significant Deterioration District PSD in Rule 20.3 Federal PSD (Implemented by EPA) District could only implement federal PSD with:  A rule approved by EPA  Delegation of Federal PSD from EPA District has neither an approved rule nor delegation

18. PSD Any project subject to PSD must receive:  A federal PSD permit from EPA  FDOC/ATC from the District The District has requested and received site specific PSD delegation for some new projects from EPA Delegation unlikely in near future

19. District PSD Required by District NSR rules Cannot be rescinded because of SB288 Consistent (mostly) with federal PSD circa 1995 Will continue to be enforced by the District Incorporated into ATC with same period of validity (i.e. no more than five years)

20. Example Carlsbad Energy Center Resembles Proposed Mitigation Options 2 or 3 Received CEC certification for six LMS100 turbines PUC only approved power purchase agreement with SDG&E for five turbines District FDOC as ATC is granted for two years for six turbines—PUC decision does not affect the number of turbines that can be constructed under ATC

21. Amended Carlsbad Energy Center If applicant only elects to build five turbines in the two year period sixth turbine could be built later However, District would likely reevaluate before granting ATC extension for sixth turbine if construction delay was only the absence of a power purchase agreement NOx offset requirements would likely be adjusted

22. Questions John.Annicchiarico@sdcounty.ca.gov John.Annicchiarico@sdcounty.ca.gov (858) 586-2733