Extended to December 31, 2001

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 include natural gas-fired peaking turbines which are subject to permit limits on their hours of operation under the District’s New Source Review rules; and

WHEREAS, operation in excess of allowable hours would result in excess emissions of carbon monoxide that could adversely affect public health; and

WHEREAS, the California Independent System Operator (Cal ISO) has determined that electricity generation from these facilities is essential to avoid or limit blackouts or maintain essential reserve margins of three percent or less when the facility peaking units are operating solely at the request of Cal ISO; and

WHEREAS, in order to protect public health from the adverse effects of air pollution resulting from operation of such peaking 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 1303 for peaking turbines subject to limits on hours of operation 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 any permit conditions limiting operations of peaking turbines which were imposed to limit carbon monoxide emissions pursuant to New Source Review during the period this order is in effect, provided that:

1. The peaking turbine is operated only at the request of Cal ISO to avoid or limit blackouts or maintain essential reserve margins;
   
2. The facility operator pays to the South Coast Air Quality Management District a mitigation fee of $1.10 per pound for any emissions in excess of those otherwise authorized by the permit; such payment shall be made on a quarterly basis, and District staff shall deposit such funds in an account to be used only for purposes of mitigation of such emissions;
   
3. If the facility operates any peaking unit subject to this Order in excess of 1500 hours in any one calendar year, the facility shall install appropriate carbon monoxide controls as determined by the Executive Officer on an expeditious schedule, as determined by the Executive Officer in consultation with the Cal ISO and California Energy Commission;
   
4. The facility maintains records demonstrating compliance with the terms of this order and submits such records to the Executive Officer upon request.

This order expires on February 23, 2001, at noon, or when the State of Emergency declared by the Governor on January 17, 2001, ceases to exist, whichever is sooner.

Executed at Diamond Bar, California, on February 13, 2001.

____________________________________

Barry R. Wallerstein, D.Env.

Executive Officer

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