BOARD MEETING DATE: February 6, 2009
AGENDA NO. 35

PROPOSAL:

Adopt Proposed Rule 2702 – Greenhouse Gas Reduction Program

SYNOPSIS:

The proposed rule will create a voluntary Greenhouse Gas Reduction Program administered by AQMD. The AQMD can accept funds to generate GHG reductions and Requests for Proposals would be issued. Projects selected by the AQMD would follow pre-approved protocols to generate GHG emission reductions in the AQMD.

COMMITTEE:

Climate Change, September 19, 2008 and October 29, 2008

RECOMMENDED ACTIONS:

Adopt the attached resolution:

1. Certifying the Final Program Environmental Assessment for Proposed Rule 2702 – Greenhouse Gas Reduction Program; and
2. Adopting Proposed Rule 2702 – Greenhouse Gas Reduction Program.

 

Barry R. Wallerstein, D.Env.
Executive Officer

Background

At the February 2008 Governing Board meeting, the Board approved development of the SoCal Climate Solutions Exchange, one of AQMD Governing Board Chairman Burke’s initiatives for 2008. The Board requested a two-step process. The first step was development of a White Paper and discussion of initial recommendations at the June 2008 Governing Board meeting. The Board then directed staff to proceed with rule development, which was the second step of the process. In December, Rule 2700 – General and Rule 2701 – SoCal Climate Solutions Exchange were adopted.

Proposed Rule 2702 – Greenhouse Gas Reduction Program would establish an air quality investment program where the AQMD could collect funds and implement greenhouse gas reduction projects through Requests for Proposals.

Proposed Rule

Proposed Rule 2702 – Greenhouse Gas Reduction Program would set up a voluntary program where parties could pay the AQMD, who would pool funds and issue contracts for greenhouse gas emission reductions. Priority will be given to projects that result in co-benefit emission reductions of criteria and toxic air pollutants within environmental justice areas. These projects would follow pre-approved CARB and AQMD protocols. Currently, three protocols approved by CARB are included in Proposed Rule 2702. These protocols are briefly summarized below:

• Manure Management Reporting Protocol (also known as the Livestock Project Reporting Protocol): Provides guidance for GHG reductions from the installation of a manure biogas control system for controlling methane emissions from livestock operations. Staff is recommending additional local restrictions to address issues raised by community and environmental groups at the December Governing Board meeting. Staff is proposing that AQMD would only fund or purchase GHG reductions from a project located within an environmental justice community if any stationary source equipment emitting any air contaminant would be located greater than a quarter mile (1,320ft, 400m) of a sensitive receptor. This distance would conservatively provide protection for local residents and other sensitive receptors, and is based on land use guidance criteria for new school sites.
• Forest Project Protocol:  Provides guidance to quantify GHG reductions for forest projects such as conservation and reforestation.
• Urban Forest Project Reporting Protocol: The protocol provides guidelines for GHG reductions associated with tree planting in urban environments.

Public Process

The Governing Board established a Climate Change Committee, which has met six times. Proposed Rule 2702 was discussed at most of these meetings. In addition, climate change issues were discussed as an agenda item at the Governing Board’s April 17, 2008 retreat.

Staff has been working with a Technical Advisory Group comprised of representatives from CARB, CCAR, environmental and community groups, industry, academic institutions, and local government. The working group participants helped brainstorm initial concepts and provided valuable insight and perspectives on key design elements. This group met four times before the White Paper was presented to the Board (March 19, 2008, April 2, 2008, April 23, 2008 and May 22, 2008). The Technical Advisory Group also met on October 2, 2008. The meetings were open to the public, and other attendees also provided beneficial input. A public workshop was held on September 4, 2008 as well.

On January 28, 2009, staff will host a meeting in the Inland Empire with environmental and community groups to discuss Proposed Rule 2702 and the local requirements drafted to address issues raised at the December Board meeting when the manure management protocol was discussed for inclusion in Rule 2701 – SoCal Climate Solutions Exchange.

Staff has also been working with CAPCOA and CARB regarding protocol development. There is a commitment to work cooperatively to prioritize protocol development and to have many air districts work on additional protocols. This will take advantage of resources and expertise, and result in more protocols available for use in multiple programs.

CEQA

Pursuant to the requirements of the California Environmental Quality Act (CEQA), a Program Environmental Assessment (PEA) was prepared for Proposed Rule 2702 – Greenhouse Gas Reduction Program, and circulated for a 30-day public review and comment period from November 4, 2008 to December 3, 2008. The potential environmental impacts from the proposed project were determined to be not significant, so no mitigation measures were required. Three comment letters were received on the Draft PEA and included in the Final PEA, along with responses to the comment letters. Changes to the proposed project were made since the release of the Draft PEA based on public input. These changes have been evaluated by SCAQMD staff and it has been concluded that they would not change any conclusions made in the Draft PEA or substantially worsen environmental impacts analyzed in the Draft PEA. Therefore, pursuant to CEQA Guidelines §15073.5, recirculation is not necessary since the information provided does not result in new avoidable significant effects.

Socioeconomic Analysis

Proposed Rule 2702 represents a voluntary program. Businesses and individuals will not participate in the proposed program if there is no perceived benefit. As such, no negative socioeconomic impacts are expected. Since the rules do not significantly affect air quality or emissions limitations, the law does not require a socioeconomic assessment.

AQMP and Legal Mandates

There are no AQMP or legal mandates that require adoption of this rule; however staff anticipates that many of the greenhouse gas emission reduction projects will have concurrent air pollution benefits.

Resource Impacts

Existing resources should be sufficient to implement Proposed Rule 2702. Fees will be charged to support implementation of the program.

Attachments (DOC, 5.3m)

1. Summary of Proposal
2. Rule Development Process
3. Key Contacts List
4. Key Issues and Responses
5. Resolution
6. Proposed Rule Language
7. Staff Report
8. Final Program Environmental Assessment
9. Livestock Project Reporting Protocol (Manure Management)
10. Forest Project Protocol
11. Urban Forest Project Reporting Protocol