APCD Board Enters into an Enforcement Agreement with Duke
In efforts to assist the State in the midst of an energy crisis, the Air Pollution
Control Board approves a motion on Wednesday (January 24) to allow the Air Pollution
Control Officer to enter into agreement with Duke Energy of Morro Bay to increase energy
production by temporarily modifying the emissions limits for the facility. Following
action taken by the APCD Hearing Board on January 11th, the APCD Board decision will
establish additional conditions on the plant to assure electric production occurs only
during times of need and that public health is continually protected. After much debate
at their January 24 APCD Board meeting, members voted 6 to 4 in support of the
Enforcement Agreement.
Duke Energy is currently operating under a 30-day Emergency Variance that will expire
on February 10, 2001. Once the emergency variance expires the Enforcement Agreement
between APCD and Duke will take effect. The APCD is now working with a subcommittee of
Board members, the California Independent System Operator (ISO), California Energy
Commission and the Air Resources Board to construct this agreement that will help to
satisfy the State’s energy needs while simultaneously preserving local air quality and
public health. The subcommittee is composed of three members of the Board [Shirley
Bianchi—Supervisor, District 2, Bill Pierce—City of Morro Bay, and Tony Ferrara—City
of Arroyo Grande] and APCD staff. Preliminary conditions identified by the APCD Board to
be included in the Enforcement Agreement include: 1) setting a temporary air pollution
cap for the plant that is directly linked to the ISO Emergency Alerts, 2) prohibiting
increased emissions on poor air quality days, 3) extending the Emission Allowance Fee,
4) daily reporting of emissions, and 5) establishing a sunset date for the agreement.
“We’re in a statewide energy emergency,” states Bob Carr, Director of APCD, “By
modifying the emissions cap for the Morro Bay Power Plant, we will help provide
electricity to the State in a time of need. This does not mean the plant will be
allowed to operate at uncontrolled levels, but rather operate as it was before the
District’s Rule 429 dealing with nitrogen oxides (NOx) emissions was tightened on
December 31, 2000.” APCD Rule 429 was originally adopted in 1993 as a mechanism to
reduce air pollution over time and comply with State law. The current phase limits
overall facility emissions to 3.5 tons/day NOx. Since the Emergency Variance from Rule
429 was issued on January 11, the plant has only exceeded the 3.5 tons/day NOx emission
levels six times.
The APCD Board will review the status of the Enforcement Agreement at their next
regularly scheduled meeting on March 28.
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