BOARD MEETING DATE: June 4, 2010
AGENDA NO. 24
PROPOSAL:
Climate Change Committee
SYNOPSIS:
The Climate Change Committee met on Thursday, May 20, 2010. Following is a summary of that meeting.
RECOMMENDED ACTIONS:
Receive and file.
Dr. William Burke, Chair
Climate Change Committee
Attendance
The Climate Change Committee meeting was held on May 20, 2010. Committee members who participated were Committee Chair Dr. William Burke, Supervisor Josie Gonzales, and Mayor Ron Loveridge. Councilmember Judith Mitchell and Mayor Miguel Pulido were absent.
The meeting was chaired by Dr. William Burke and convened at 9:35 a.m.
Discussion / Action Items
Briefing on EPA Tailoring Rule
Barbara Baird, District Counsel, provided a briefing on a recent EPA rule that affects permitting of greenhouse gases (GHGs) for two major programs – Title V, which covers major sources, and Prevention of Significant Deterioration (PSD). The EPA rule integrates GHGs into these programs by establishing thresholds that initially apply to only very large facilities. Future rulemaking will consider lower thresholds.
By establishing thresholds, the administrative and financial burdens are significantly reduced compared to the impacts that would occur, if these programs applied at the thresholds set for criteria pollutants. Staff will propose amendments to AQMD Title V and PSD rules later this year to reflect the new federal requirements. This item was an informational item only.
A representative from the Los Angeles County Sanitation District stated that the landfill sector would be heavily impacted and that all landfills in the South Coast will likely need a PSD permit.
Dr. Burke asked what is being done to help with implementation. Ms. Baird said that EPA was developing guidance for BACT and general permits in an effort to streamline PSD and Title V. Mohsen Nazemi, Deputy Executive Officer of Engineering & Compliance, added that EPA staff briefed the National Association of Clean Air Agencies (NACAA) recently and committed to $25M in the 2011/2012 budget to assist agencies implementing this program.
Potential Contract for AQMD GHG Registry
Jill Whynot, Director of Strategic Initiatives, provided a summary of a proposed contract for an AQMD GHG Registry for certified reductions generated under Regulation XXVII – Climate Change. The effort would be done in phases, with the initial task consisting of Task (1)(A) working to ensure that AQMD reductions could be used in state and federal cap-and-trade programs; Task (1)(B) surveying users to better understand needs; and Task (1)(C) a comprehensive assessment of current registries and trading platforms. Subsequent tasks and funding amounts would be contingent on the previous work and would be subject to Board approval.
These potential future tasks could include Task (2) development of design specifications; Task (3) software, user interfaces, and operational procedures; and Task (4) outreach and marketing. Tasks 1, 2, and 4 could be done by the same contractor. Task 3 would be a separate Request for Proposals. Staff will recommend the contract be awarded to Mercury Public Affairs and MGM International for Task 1, in an amount not to exceed $200,000.
Dr. Burke inquired about why the scope was being narrowed to not include a full trading platform. Staff responded that it could be re-evaluated after the survey, and Dr. Wallerstein committed to expediting this work after Board approval.
The Committee approved this item. Supervisor Gonzales requested that the Committee be kept appraised of progress and any setbacks.
A representative from Evolution Markets asked if an existing Registry or the existing AQMD ERC system would be sufficient. Dr. Burke responded that this will be considered as staff looks at the efficiencies of these systems and if they fit our needs. Dr. Wallerstein added that there are differences in what is needed compared to the ERC listing. Supervisor Gonzales reiterated the need to look at existing resources. Dr. Burke stated that all options need to be evaluated and remain open.
Update on Federal Climate Change Bill
Ms. Whynot gave an overview of the American Power Act, released by Senators Lieberman and Kerry on May 12, 2010. She summarized the major titles of the bill and focused on the cap-and-trade portion. Ms. Baird prepared a handout regarding the key elements of the other parts of the legislation.
Ms. Whynot highlighted key provisions, noting similarities and differences to previous federal proposals by the House and Senate. Several recommendations that AQMD staff made are included in the proposed bill.
Mayor Loveridge asked about the process for this bill. Dr. Wallerstein noted that there are just a few weeks left in this legislative session, so it has been reported that action this year is not likely. He also emphasized that the bill will completely preempt a California cap-and-trade program. Ms. Baird added that this legislation would be implemented for industrial facilities through Title V permits issued by districts at
≥ 25,000 MT CO2E/yr. This is lower than the thresholds in the EPA tailoring rule.
Other Business
No other business.
Public Comment
No public comments.
Adjournment
The meeting adjourned at 10:15 a.m.
Attachment (DOC, 52k)
Attendance Roster