"For example,
credits for a tortilla fryer and oven would cost $1.6 million, according to
AQMD. Credits for a hospital boiler would cost an estimated $2
million."
SENATE BILL WOULD RELEASE AQMD AIR PERMITS STALLED BY COURT RULING
Josh Dulaney, San Bernardino Sun,
7/9/09
Local agencies are backing a state senate bill that would
release South Coast Air Quality Management District permits for businesses and
public services now on hold because of a 2008 court ruling.
In November,
Los Angeles Superior Court Judge Ann I. Jones struck down two AQMD policies, one
allowing the issuance of credits to power plants and another regarding its
credit-tracking system.
Jones found that AQMD did not conduct an adequate
environmental analysis of the policies as required under law.
The ruling
means that more than 1,200 permits are on hold, with more than 140 in AQMD's San
Bernardino County jurisdiction, including 10 at Ameron Steel Fabrication in
Fontana, one at the Running Springs Water District wastewater treatment plant
and at least two at Crafton Hills College in Yucaipa.
SB696 - authored by
Senator Rod Wright (D-Los Angeles) - would allow AQMD to issue permits to small
businesses and essential public services if safeguards are in place. Also, the
bill allows power plants to have limited access to AQMD credits if approved by
the California Energy Commission.
Wright's office said Wednesday the
ruling could stop about $4 billion in economic activity throughout the state,
and it could impact between 40,000 and 60,000 jobs.
"We have a major
economic problem in the state," said Stan Diorio, legislative director for
Wright's office. "We have stopped the ability to do any growth. It's
frustrating."
On behalf of the 29 local elected officials who serve on
the county's transportation commission - known as San Bernardino Associated
Governments - Jennifer Franco, director of intergovernmental and legislative
affairs for the commission, wrote in a June letter of support to Wright that
AQMD's inability to issue permits for projects eligible for credits could delay
projects and stall economic recovery for the region.
Before a
pollution-generating facility can open in Southern California, or before a
company replaces or installs pollution-generating equipment, emission credits
are needed to offset the anticipated pollution, said Sam Atwood, spokesman for
AQMD.
The credits are created when older, less green-friendly facilities
shut down or when existing facilities reduce emissions, Atwood said.
The
AQMD also has credits from its internal bank that it made available free to
public agencies and small businesses.
Otherwise, the credits would need
to be purchased on the open market, which can be expensive.
For example,
credits for a tortilla fryer and oven would cost $1.6 million, according to
AQMD. Credits for a hospital boiler would cost an estimated $2
million.
The AQMD issued credits for free for facilities that produced
less than four tons per year of pollutants.
Later, the AQMD made the
credits available to power plants.
"Several environmental groups sued
AQMD," Atwood said. "They didn't like an amendment that would have allowed the
power plants to obtain the credits at $92,000 a pound."
The Natural
Resources Defense Council, Communities for a Better Environment and Coalition
for a Safe Environment said the credits were going to go to polluters at too low
a cost.
Atwood said Jones' ruling not only made it impossible for power
plants to get the credits, but for AQMD to provide them for all public
facilities and businesses.
The ruling is under appeal, which puts a stay
on cancelling thousands of previously issued permits.
Affected businesses
include sewage treatment plants, hospitals, schools, fire and police stations,
gas stations, dry cleaners, auto body shops, printers and food
manufacturers.
Still, many businesses and public services are now just
getting word of the ruling.
Ernest Marquez, senior civil engineer of
public utilities in Banning, said Wednesday he hadn't heard of the ruling, which
may affect plans to go forward with an expansion of the city's wastewater
treatment facility.
"I'm not aware of it," Marquez said.
The
expansion's design is about 90 percent complete and is scheduled to start
construction in about a year, he said.
While AQMD will not readopt its
rule to issue credits to power plants, it will readopt its rule on the tracking
system, which would allow the credits to be issued to low-polluter
facilities.
But that could take months.
In the meantime, no offset
credits will be issued from AQMD's internal bank. AQMD will issue permits only
to sources that have provided their own offsets in the form of Emission
Reduction Credit certificates purchased on the open market.
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