1. Governor’s Clean Energy GREEN TEAM Annual Statewide Air Quality Conference May 10, 2001

2. AB 970 Summary Created Governor’s Clean Energy Green Team Expedited Permitting Available for Certain “Peaking” Power Plants and those Without Significant Environmental Effects Funded Peak Electricity Demand Reduction Programs at CEC and CPUC

3. Green Team Agencies State Agencies: EOB, CPUC, CEC, CalEPA, Resources, OPR, TTCA Federal Agency Partners: US FWS, US EPA Local & Regional Agency Partners: SDAPCD, SJVAPCD, BAAQMD Up to 4 more Agency partners

4. Green Team Responsibilities Guidance Documents for Power Plant Construction and Environmental Effects and Mitigation Essential Input Guidance: water supply, emission offsets, natural gas Local Government Permitting Assistance Recommend Financing Programs for Renewable Energy Projects

5. Electricity Generation Outlook: Summer 2001 Statewide Outlook: If hotter than normal (1:10)  up to 4990 MW short without new projects Added twist: low hydropower year San Diego and San Francisco have transmission constraints Today, 14,000 MW currently out of service – no way for CA to verify reasons for most outages

6. Executive Orders: Expedited Processes Expand Capacity at Existing Plants Re-Start Old Plants Speed Governmental and Public Review of New Facilities

7. New Projects State– Wide: Summer 2001 3 Major Power Plants: 1262 MW Re-starts of Natural Gas and Biomass plants: 590 MW New Renewable Projects: 80 MW (de- rated) New Peakers: 2000 MW Re-rates: 650 MW

8. Power Plant Permitting California Energy Commission Permits: Thermal (e.g., natural gas, geothermal) and 50 MW and larger Local Government Permits Non-Thermal of any size (e.g., wind) Thermal, smaller than 50 MW (e.g., small peakers) APCDs/AQMDs All power plants with emissions

9. CEC Emergency Permit for Summer 2001 Emergency Process for New Facilities 3 Week Permit Review (EO D-26-01, D-28-01) Eligible: Thermal, 50 MW and larger Under 50 MW, thermal projects with ISO contracts Online by September 30, 2001 No “fatal flaws” State and local agencies authorized to alter procedures to meet emergency schedule

10. Local Government Expedited Process Expedited Review for New Facilities 7 Day Public Review of CEQA Documents (e.g., NOP, EIR, ND, etc.) (EO D-26-01) Eligible: Non-thermal or under 50 MW Online by September 30, 2001 Local government discretion to use shortened time period Green Team assistance to obtain expedited federal and state approvals – CalEPA Permit Assistance Centers

11. Expanded Capacity at Existing Plants Executive Order D-22-01 Expand capacity by up to 50 MW using existing installed equipment No CEC permission required if increased production is under 50 MW and limited to June 1, 2001 -- October 1, 2001 Order expires December 31, 2001

12. Re-Start of Existing Plants Executive Order D-22-01 & D-28-01 CEC license procedure shortened Local, regional and state reviewing agencies authorized to shorten procedures to meet CEC schedule Order expires December 31, 2001

13. Air Permitting APCDs and AQMDs CARB Emission Credit Reduction Bank Executive Order D-24-01, D-28-01 ERCs available through the California Air Resources Board ERCs achieved through CARB-funded reductions in emissions from existing sources

14. Key ERC Bank Information Available to powerplant applicants who can be online by 9/30/01 ERCs for NOx and PM10 Bank ERCs expire 11/1/03; replacements are the responsibility of applicant Mitigation Fee: $6,000/ton/pollutant

15. Emergency Peaker Air Requirements Must Meet BACT by Summer 2002 Shortage of SCR for Summer 2001 Up to 25ppm NOx for Summer 2001 Up to 2000 MW of new peaking power by Sept 2001 Many projects meeting BACT immediately

16. Statewide Air Outlook 2163 MW -- installed SCR between 10/2000 and 5/22001 1500+MW --currently installing, finishing by early June 500+ MW --installed NOx burners ⇛ Over 4100 MW with NOx Controls installed since Summer 2000

17. Air Challenges Permit Operating Hour Restrictions Removed for Essential Units Blackouts = Backup Generators (diesel) Proposals to Use BUGs in Advance of Blackouts ISO SDG&E Interruptible Program