BOARD MEETING DATE: January 8, 2010
AGENDA NO. 30

PROPOSAL:

Repeal of Rule 1315 and Rule 1309.1 as Amended on August 3, 2007, Decertification of CEQA Document and Set Aside of Transfer of Interdistrict Credits to Inland Energy, City of Palmdale and City of Victorville Projects

SYNOPSIS:

This action is to comply with an order of the Superior Court requiring AQMD to set aside its approvals of Rule 1315 and the August 3, 2007 amendments of Rule 1309.1 and the associated Program Environmental Assessment, and to set aside the approval of a transfer of interdistrict credits to Inland Energy, City of Palmdale and City of Victorville Projects.

COMMITTEE:

Not Applicable

RECOMMENDED ACTIONS:

1. Repeal the August 3, 2007 adoption of Rule 1315;
   
2. Repeal the August 3, 2007 amendments to Rule 1309.1;
   
3. Set aside certification of the Program Environmental Assessment adopted in connection with the above rule actions occurring on August 3, 2007; and
   
4. Set aside approval of a transfer of interdistrict credits to Inland Energy, City of Palmdale and City of Victorville, approved August 3, 2007.
    

Barry R. Wallerstein, D.Env.
Executive Officer

Rule 1315 – Federal New Source Review Tracking System, codifying in rule form operating procedures for the District’s Internal Bank, was adopted on September 8, 2006 and re-adopted on August 3, 2007. Amendments to Rule 1309.1 – Priority Reserve, allowing certain electrical generating facilities to access offset credits in the District’s Internal Bank, were adopted on September 8, 2006 and replaced by Board action on August 3, 2007. An environmental analysis was certified in connection with the August 3, 2007 rulemaking action. Following these rulemaking actions, certain environmental organizations sued to set these aside. On November 3, 2008, the Superior Court entered an order requiring the AQMD to set aside Rule 1315, the August 3, 2007 amendments to Rule 1309.1, the certification of the associated CEQA document, and the approval of the transfer of interdistrict credits to Inland Energy, City of Palmdale and City of Victorville Projects. (The credits were never actually transferred.) The District’s appeal of the lawsuit stayed this aspect of the court’s order. With the recent dismissal of the appeal, however, these actions are now required.

Following this action, the version of Rule 1309.1 in place prior to September 8, 2006 will be in effect (i.e., the May 3, 2002 version).