1. IMPLEMENTATION OF SENATE BILL X1 28 & UPDATE OF POWER PLANT SITING GUIDANCE Workgroup Meeting August 3, 2001 California Environmental Protection Agency Air Resources Board

2. Purpose of Today’s Meeting v Discuss ARB’s approach for Electrical Generation Retrofit Regulation and Guidance update v Solicit members for workgroup v Highlight important dates for regulation/guidance v Set workgroup meeting dates

3. Focus for Today v Statewide regulation and schedule for retrofitting electrical generating facilities v Update “Guidance for Power Plant Siting and Best Available Control Technology”

4. Presentation Overview v Retrofit Regulation: u Background u Scope of regulation v Power Plant Guidance Update: u Current Guidance BACT emission levels u Areas of possible change u Low emission measurement v Regulation/Guidance Workgroup: u Workgroup’s role u Tentative regulation & workgroup schedule

5. Statewide Retrofit Regulation: Background

6. Power Generation in California

7. Power Plant Inventory TotalCapacity (MW) Hydroelectric 38614,116.53 Geothermal 46 2,561.70 Gas/Oil 34027,733.42 Coal 15 549.50 Wind 104 1,814.68 Waste-to-Energy 104 1,087.67 Nuclear 2 4,310.00 Solar 14 412.63 Grant Total:1,011*52,586.11 * Plants of 0.1 MW and larger

8. Statewide Power Plant Data

9. Power Generation Emissions Comparison (Courtesy of SCAQMD)

10. Statewide Retrofit Regulation: Scope

11. Scope of Regulation v Applicability u 1 MW and greater u Supplies power to the grid v Includes: u Prime reciprocating engines u Peakers u Boilers u Qualifying Facilities (Q.F.’s) u Renewables u Other

12. Scope of Regulation (continued) v Pollutants: u All criteria pollutants - NOx, CO, VOC, PM10, SOx v Emission limits: u Based on class/category of source (i.e., combined-cycle turbine, natural gas-fired boiler, wood-fired boiler, landfill gas-fired ICE) u Incentives for zero emission technologies

13. Scope of Regulation (continued) v Banking criteria u TBD v Timelines for implementation of retrofits u TBD v Exemption for repowers

14. Retrofit Starting Points v ARB guidance v RACT/BARCT emission limits currently in place v BACT emission control techniques v District Rule and Regulation commitments

15. Emission Reduction Credit Bank v Two Step Process: u 1) Establish bank tracking system  2) Fund the bank from emission reductions achieved from regulation

16. Update to the Guidance for Power Plant Siting and Best Available Control Technology

17. Current BACT Guidance: Achievable Emission Levels for Simple-Cycle Configuration v 5 ppmvd NOx at 15% O 2, 3-hr rolling average v 6 ppmvd CO at 15% O 2, 3-hr rolling average v 2 ppmvd VOC at 15% O 2, 3-hr rolling average, or 0.0027 lbs/MMBtu v Case-by-case determination for industrial frame turbines

18. Current BACT Guidance: Achievable Emission Levels for Combined-Cycle and Cogeneration Configuration v 2.5 ppmvd NOx at 15% O 2, 1-hr rolling average, or 2.0 ppmvd at 15% O 2, 3-hr rolling average v 6 ppmvd CO at 15% O 2, 3-hr rolling average v 2 ppmvd VOC at 15% O 2, 1-hr rolling average, or 0.0027 lbs/MMBtu

19. Current BACT Guidance: Achievable Emission Levels for SOx and PM10 v For PM10 and SOx, emission limits corresponding to combustion of natural gas with total sulfur no more than 1 grain/100 SCF v For SOx, equivalent to no more than 0.55 ppmvd @ 15% O 2

20. Areas of Possible Change v Simple-cycle power plants: u Lower NOx levels for aeroderivative turbines u Definitive NOx BACT for industrial frame turbines v Combined-cycle power plants: u Lower NOx BACT

21. Low Emission Measurement Committee v Investigating problems with low NOx measurement in gas turbine exhaust v To develop a test method to more accurately quantify low NOx emissions from gas turbines u University test study quantifying sources of error in NOx measurement methods u South Coast AQMD low emission performance testing on SCONOx u Efforts of other organizations

22. Regulation/Guidance Workgroup

23. Tentative Regulation and Guidance Schedule v Mail draft regulation November 9, 2001 v Statewide Public Consultation Workshops u SacramentoDecember 11, 2001 u Los AngelesDecember 12, 2001 u Eureka December 14, 2001 v Board MeetingApril 25, 2002

24. Workgroup’s Role v Identify stakeholders’ perspectives v Exchange technical information v Provide forum to brainstorm draft concepts

25. Workgroup Schedule v Initial Workgroup MeetingAugust 3, 2001 v Workgroup MeetingSeptember 13, 2001 v Workgroup MeetingOctober 4, 2001

26. v http://www.arb.ca.gov/energy/retro/retro.htm (will include a List Server) v Written Comments - Mail to: Christopher Gallenstein, Air Pollution Specialist California Air Resources Board P.O. Box 2815 Sacramento, CA 95812 cgallens@arb.ca.gov v Questions - Call: Regulation: Christopher Gallenstein (916) 324-8017 Guidance Document: Stephanie Kato (916) 327-5601 More Information

27. Open Discussion