# Air Resources Board Mary D. Nichols, Chairman

1001 1 Street P.O. Box2815 Linda S. Adarns Sacramento, California 95812 www.arb.ca.gov Arnold Schwarzenegger

Secretaryfor Governor Environmental Protection

September 10, 2010

Mr. Jared Blumenfeld, Administrator U.S. Environmental Protection Agency Region 9 

### 75 Hawthorne Street San Francisco, California 94105 Dear Mr. Blumenfeld: Enclosed is a revisionto the State of California Implementation Plan forAchieving and Maintaining the National AmbientAir Quality Standards (SIP). Specifically, this package concerns a revision to the SIP for the South Coast Air Quality Management District (District) to implement Assembly Bill 131 8 (Stats. 2009, Ch. 285) and provide emission 

# -- offsets for the proposed CPV Sentinel Power Plantto be located in Desert Hot Springs, California. We have enclosedtwo copies containing the SIP revision in its entirety. Also enclosed is the Air Resources Board (ARB) Executive Order S-I0-004 with EnclosureA adopting the District's revisionsto the SIP. The District is authorized to adopt this SIP revision by California Healthand Safety Code (H&SC) section 40440.14. ARB is authorized by H&SC sections 39601, 39602, and 41650 through 41652 to adopt the District's SIP submittal as a revision to the SIP. E~iclosure A to Executive Order S-10-004 contains the SIP revisionthat was adopted by the District Board on July 9,2010, and that has been adopted as a revision to the SIP by ARB through Executive Order S-10-004. To meetthe U.S. Environmental Protection Agency (U.S. EPA) criteria for determining that SIP revision submittals are administratively and technically complete, we have enclosed all necessary materials to ensure consistency with 40 CFR 51. We understandthat, according to section II O(k)(l)(B) of the federal Clean Air Act, U.S. EPA will determine within 60 days of the Administrator's receipt of a SIP revision, but no later than six months afterthe date by which the State is required to submit the revision, whether the package in this revision is adequately complete to reviewfor approvability. IfARB staff receives additional supporting documentation from the District,we will, of course, forward those materialsto you.

**

The energy challenge facing California is real. Every Californian needs to take immediate action to reduce energy consumption For a list of simple ways you can reduce demand and cut your energy costs, see our website: htt~://www.arb.ca.crov. California Environmental ProtectionAgency Printed on Recycled Paper 

# -

. -....,..-- .... -.,-. .. - .. -.=,. -. .-"" ..~"

--.-, .. -..,-- -.----,.-. --- .--"--.&--Mr. Jared Blumenfeld, Administrator September 10, 2010 Page 2
If you have any questions or would liketo discuss this SIP revision, please contact Mr. pichard Corey, Chief of the Stationary Source Division at (916) 445-0650.



# I Fxecutive Officer 

# V Enclosures

cc: Dr. BarryWallerstein Executive Officer South Coast Air Quality Management District 21 865 East Copley Drive Diamond Bar, California 91 765-4182 Mr. Richard Corey, Chief Stationary Source DivisionCalifornia Environmental Protection Agency AIR RESOURCES BOARD Executive Order S-10-004 WHEREAS, Assembly Bill (AB) 1318 (Stats. 2009, Chapter 285),which provides offsets to the CPV Sentinel Energy Project in Desert Hot Springs, California, is required to be implemented by the South Coast Air Quality Management District (District) as identified in EnclosureA; WHEREAS, AB 1318 added section 40440.14to the California Health and Safety Code (section 40440.14), which authorizes the District to implement AB 1318 for the CPV Sentinel Energy Project; WHEREAS, section 40440.14 requires the Executive Officer of ,the Districtto credit to the District's internal emission credit accounts and transfer to eligible electrical generating facilities emission credits in thefull amounts needed to issue permits for eligible electrical generating facilities to meet requirements for sulfur oxides and particulate matter emissions;

,- WHEREAS, the District has found that that the proposed CPV Sentinel Energy Project is the only known eligible electrical generating facility that meets the criteria specified in section 40440.14; WHEREAS,the District has found that under its current rules (specifically District Rule 1304and ,the May 3,2002 version of Rule 1309.1),which are incorporated into California's State lmplementation Plan for Achieving and Maintaining the National Ambient Air Quality Standards (SIP), there is no provisionfor thetransfer required by AB 1318 and so a SIP revision as set forth in EnclosureA is required to allow the transfer and to insurethat the resulting transfer mechanism is federally enforceable; WHEREAS, the District has found that the implementationof AB 1318 is necessary in order to provide a federally-approved method to quantify eniissions increases from the project, quantify offsets in .theAB 1318 Tracking System, and transfer offsets from the District's internal accounts to the CPV Sentinel proposed power plant as required by AB 1318 and section 40440.14; WHEREAS, on July 9, 2010, the District held a duly noticed public hearing at South Coast Air Quality Management District Headquarters located in Diamond Bar, California, to consider the proposed SIP revision for the CPV Sentinel Energy Project, entitled "Revision to the State lmplementation Plan for the South CoastAir Quality ManagementDistrict, State of California: Sulfur Oxides and Particulate Matter Offset 

# - Requirements for the Proposed CPVSentinel Power Plant to be Located in Desert Hot Springs, California, Including AB 1318 Offset Tracking System" (see enclosure A for proposed AB 13 18 SIP revision);...k WHEREAS, the District has adopted the proposedAB 1318 SIP revision for the CPV Sentinel Energy Project and has submitted itto the Air Resources Board (ARB)for inclusion in the SIP; WHEREAS, ARB has determined that the proposedAB 131 8 SIP revision for the CPV Sentinel Energy Project is necessary to meetthe requirements of the federal CleanAir Act; WHEREAS, ARB is authorized by Health and Safety Code sections 39601, 39602, and 41650 through 41652 to adopt the proposedAB 1318 SIP revisionfor the CPV Sentinel Energy Project as a revision to the SIP. THEREFORE, IT IS ORDEREDthat ARB hereby adopts the proposed AB 1318 SIP revision for the CPV Sentinel Energy Project, as set forth in Enclosure A, as a revision to the SIP. I certify, pursuant to 40 CFR 51.I 02(f), that theAB 131 8 implementation for the CPV Sentinel Energy Project identified in Enclosure A was adopted after notice and public hearings as required by 40 CFR 51.102(a)and 51 .I 02(d). Executed in Sacramento, California, this fa day of September, 2010 

# V Executive Officer