WHEREAS, District Rule 118 authorizes the Executive Officer to suspend all or part of any District rule for emergency activities in up to 10-day increments during a state of emergency declared by the Governor; and

WHEREAS, on January 17, 2001, the Governor proclaimed a State of Emergency resulting from the imminent threat of widespread and prolonged disruption of electrical power; and

WHEREAS, the Governor’s proclamation declared that a condition of extreme peril to the safety of persons and property within the state exists by virtue of the threat of disruption of electrical power, particularly disruption of power to emergency services, law enforcement, schools, and hospitals; and

WHEREAS, continued availability of electric power from facilities in the South Coast Air Quality Management District is necessary to assure adequate power supplies to protect the safety of persons and property within the State of California; and

WHEREAS, certain power-producing facilities within the District are subject to Regulation XX, the Regional Clean Air Incentives Market (RECLAIM), which imposes quarterly and annual caps on NOx emissions; and

WHEREAS, certain RECLAIM-power producing facilities may not be able to maintain ongoing compliance with RECLAIM caps if they continue to provide power as requested by the California Independent Systems Operator or the State of California; and

WHEREAS, NOx emissions in excess of those provided for under the RECLAIM program can result in significant amounts of excess air pollution that adversely affects public health; and

WHEREAS, in order to protect public health from the adverse effects of air pollution resulting from operation of power facilities and to mitigate such emissions, it is necessary to impose reasonable conditions on such operations; and

WHEREAS, under the provisions of Rule 118(d)(1), I hereby determine and declare that strict compliance with District Rule 2004 for RECLAIM-power producing facilities with a capacity to produce 50 MW or more would delay or prevent critical actions necessary for emergency power generation;

NOW, THEREFORE, pursuant to the authority vested in me pursuant to District Rule 118 (d)(1), I hereby suspend District Rule 2004(b)(1), 2004(b)(4) and 2004(d)(1) only to the extent that emissions occurring during the period this Order is in effect shall not be counted toward quarterly or annual compliance required to be reconciled with RTCs (RECLAIM trading credits) for RECLAIM-power producing facilities having the capacity to produce 50 MW or more, provided that:

1. The facility has used all RTCs held by the facility or any entity under common ownership or control prior to January 12, 2001, and has not sold any such RTCs to any entity other than a RECLAIM-power producing facility under common ownership or control;
   
2. The facility operator pays to the South Coast Air Quality Management District a mitigation fee of $7.50 per pound of NOx emissions in excess of those emissions accounted for by RTCs referred to in condition #1; such payment to be made together with the quarterly or annual report required by Rule 2004; and, District staff shall deposit such funds in an account to be used only for purposes of mitigation of such emissions;
   
3. Any NOx emissions not accounted for by the RTCs referred to in condition #1 are deducted from the facility’s allocations for the subsequent compliance year 2003;
   
4. All facilities owned by the facility owner or persons under common control shall be operated on the basis of "environmental dispatch" pursuant to any existing agreement with the South Coast Air Quality Management District;
   
5. The facility owner or operator continues to comply with any schedule for the installation of air pollution control equipment at all its facilities contained in any existing settlement agreement or abatement order with the South Coast Air Quality Management District;
   
6. The facility operates units not equipped with best available control technology or best available retrofit control technology only upon the request of the California Independent Systems Operator or the State of California;
   
7. The facility sells power generated when it is subject to the provisions of this order only within the State of California;
   
8. The facility maintains records demonstrating compliance with the terms of this Order and submits such records to the Executive Officer upon request; and
   
9. The facility agrees to provide the District with written notification 24 hours prior to generating excess emissions subject to the application of this Order.

This Order expires on February 16, 2001, at noon, or when the State of Emergency declared by the Governor on January 17, 2001, ceases to exist, whichever is earlier.

Executed at Diamond Bar, California, on February 8, 2001.

____________________________________

Barry R. Wallerstein, D.Env.

Executive Officer

WHEREAS, I hereby determine that the conditions requiring suspension of the rules and conditions referenced in this order (Executive Order #01-03 dated February 8, 2001) continue to exist, and that the limitations upon operation imposed in this order continue to exist;

IT IS ORDERED that the prohibition of sale in condition #1 shall not apply to sale of RTCs expiring December 31, 2000.

IT IS FURTHER ORDERED that this Order is extended until March 12, 2001, or whenever the State of Emergency declared by the Governor on January 17, 2001, ceases to exist, whichever is earlier.

Executed at Diamond Bar, California, on February 23, 2001.

Barry R. Wallerstein, D.Env.

Executive Officer

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