BILL ANALYSIS
SB 450
Page 1
Date of Hearing: September 9, 2009
ASSEMBLY COMMITTEE ON NATURAL RESOURCES
Nancy Skinner, Chair
SB 450 (Lowenthal) - As Amended: September 4, 2009
SENATE VOTE : Vote not relevant
SUBJECT : South Coast Air Quality Management District: CEQA:
permits.
SUMMARY : Authorizes the South Coast Air Quality Management
District (SCAQMD), notwithstanding a superior court decision, to
issue emission reduction credits to "essential public services"
and exempt facilities or equipment, consistent with SCAQMD
rules; adds an urgency clause and sunsets the bill on May 1,
2012.
EXISTING LAW :
1)Under the federal Clean Air Act (Act):
a) Requires each major new and modified source of air
pollution to undergo "new source review" to ensure that
facilities install the best available control equipment,
obtain offsets for any new emissions, and comply with any
other requirement to ensure that the new and modified
sources do not adversely affect air quality.
b) Provides that, except as otherwise stated, the Act does
not preclude a state or any political subdivision from
adopting standards or requirements for the reduction of air
pollution.
2)Authorizes each air district to establish a permit system that
requires, except as specified, that before any person builds,
erects, alters, replaces, operates, or uses any article,
machine, equipment, or other contrivance that may cause the
issuance of air contaminants, the person obtain a permit from
the air pollution control officer of the district.
3)Authorizes air districts, among their general powers, to
establish offset systems, by which reductions in air pollution
at one source may be used to offset certain future increases
in air pollution at another source. The SCAQMD requires
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sources to obtain offsets for increased emissions of
nonattainment pollutants, including SOx and PM10, in excess of
0.5 pounds per day. The SCAQMD has adopted rules creating
internal offset accounts, including a "priority reserve"
account to provide offsets for essential public service
facilities and other priority sources (SCAQMD Rule 1309.1).
THIS BILL :
1)States legislative findings and declarations.
2)Authorizes SCAQMD to issue permits in reliance on, and in
compliance with specified district rules for "essential public
services" (SCAQMD rules define essential public service to
include sewage treatment facilities, prisons, police
facilities, fire fighting facilities, schools, hospitals,
construction and operation of a landfill gas control or
processing facility, water delivery operations, and public
transit) and exempt facilities or equipment, notwithstanding
the decision of the court in Natural Resources Defense Council
v. South Coast Air Quality Management District (Super. Ct. Los
Angeles County, 2007, No. BS 110792).
3)Provides that nothing in the bill affects the decision in the
above case concerning the adoption, readoption, or amendment,
or environmental review, of SCAQMD Rule 1315.
4)Requires SCAQMD to rely on the emission reduction credit
tracking system used prior to the adoption of Rule 1315, until
a new tracking system is approved by the United States
Environmental Protection Agency and is in effect, at which
point that new system shall be used by SCAQMD. SCAQMD must
make information concerning the credits, and the tracking of
these credits, available to the public.
5)Sunsets the bill on May 1, 2012.
6)Contains an urgency clause.
FISCAL EFFECT : Non-fiscal
COMMENTS : Emission reduction credit banking is defined as "a
system? by which reductions in emissions may be banked or
otherwise credited to offset future increases?or a calculation
method which enables internal emission reductions to be credited
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against increases" (Health and Safety Code Section 40709.5).
Once created, emission reduction credits may be banked with the
district for future use by the source that generated them, used
concurrently to offset new projects, or sold to other sources
for use as mitigation.
The most common method of creating emission reduction credits is
to control or curtail the emissions from an existing stationary
source. Control of emissions is generally from the application
of emission control technology beyond that which is required by
any regulation or rule. Curtailment could be from a change in
operating hours of a source, or through the shutdown of a
source. Credits must be generated pursuant to district rules
and regulations, and must be reviewed and certified by the
district.
The SCAQMD has adopted a variety of rules to govern the use of
offsets in the district, including Rule 1309.1, which
establishes a "priority reserve" account for essential public
service and other facilities, Rule 1304, which exempts certain
facilities and equipment, and Rule 1315, which governs the
tracking of offsets used within the district.
In 2007, SCAQMD adopted changes to these rules to permit the
transfer of offsets to power plants in exchange for mitigation
fees at prices set in the rules. A group of environmental and
environmental justice groups (NRDC, et al) sued SCAQMD, alleging
violations of CEQA, including failure to analyze or mitigate the
significant environmental effects of the rules.
In NRDC v. SCAQMD, the court sided with the plaintiffs, finding
the SCAQMD's rule changes are subject to CEQA and enjoining the
distribution of offsets from the priority reserve account until
SCAQMD prepares the appropriate CEQA documentation. Committee
staff has been advised that the court issued a further ruling
earlier today (September 9) staying enforcement of the order as
it relates to the essential public service and exempt facilities
that are the subject of this bill.
Notwithstanding this court ruling, this bill authorizes the
SCAQMD to issue permits to "essential public services," small
businesses, and other exempt facilities and equipment in
compliance with Rules 1304 and 1309.1. This bill is nearly
identical to SB 827 (Wright), also pending in this Committee.
SB 450
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REGISTERED SUPPORT / OPPOSITION :
Support
Action Now
Ameresco
California Safe Schools
Coalition for a Safe Environment
Comite Pro Uno
Del Amo Action Committee
Pacoima Beautiful
Pardres Unidos de Maywood
Physicians for Social Responsibility Los Angeles
Opposition
None on file
Analysis Prepared by : Lawrence Lingbloom / NAT. RES. / (916)
319-2092