Air Resources Board 

Mary D. Nichols, Chairman 

1001 1 Street P.O. Box 281 5 

Linda S. Adarns Sacramento, California 95812 www.arb.ca.gov Arnold Schwarzenegger 

Secretary for Governor 

Environmental Protection 

September 10, 2010 

Mr. Jared Blumenfeld, Administrator 

U.S. Environmental Protection Agency 

Region 9 

75 Hawthorne Street 

San Francisco, California 941 05 

Dear Mr. Blumenfeld: 

Enclosed is a revision to the State of California Implementation Plan forAchieving and 

Maintaining the National Ambient Air 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 Plant to be located in Desert Hot Springs, 

California. We have enclosed two copies containing the SIP revision in its entirety. 

Also enclosed is the Air Resources Board (ARB) Executive Order S-I 0-004 with 

Enclosure A adopting the District's revisions to the SIP. The District is authorized to 

adopt this SIP revision by California Health and 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 revision that 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 meet the 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 understand that, according to section I I 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 after the date by which the State is required to submit the 

revision, whether the package in this revision is adequately complete to review for 

approvability. If ARB staff receives additional supporting documentation from the 

District, we will, of course, forward those materials to 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 Protection Agency 

Printed on Recycled Paper 

- . -. ... ,..-- .... -.,-. .. - .. -.=,. -. .-"" ..~" --.-, .. -..,-- -.----,.-. --- .--"--.&-- 
Mr. Jared Blumenfeld, Administrator 

September 10, 2010 

Page 2 

If you have any questions or would like to 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. Barry Wallerstein 

Executive Officer 

South Coast Air Quality 

Management District 

21 865 East Copley Drive 

Diamond Bar, California 91 765-41 82 

Mr. Richard Corey, Chief 

Stationary Source Division 
California 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 Enclosure A; 

WHEREAS, AB 1318 added section 40440.14 to the California Health and Safety Code 

(section 40440.14), which authorizes the District to implement AB 131 8 for the CPV 

Sentinel Energy Project; 

WHEREAS, section 40440.14 requires the Executive Officer of ,the District to credit to 

the District's internal emission credit accounts and transfer to eligible electrical 

generating facilities emission credits in the full 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 

1304 and ,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 provision for the transfer required by 

AB 131 8 and so a SIP revision as set forth in Enclosure A is required to allow the 

transfer and to insure that the resulting transfer mechanism is federally enforceable; 

WHEREAS, the District has found that the implementation of AB 1318 is necessary in 

order to provide a federally-approved method to quantify eniissions increases from the 

project, quantify offsets in .the AB 131 8 Tracking System, and transfer offsets from the 

District's internal accounts to the CPV Sentinel proposed power plant as required by 

AB 13 18 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 Coast Air Quality 

Management District, State of California: Sulfur Oxides and Particulate Matter Offset 

- Requirements for the Proposed CPV Sentinel Power Plant to be Located in Desert Hot 

Springs, California, Including AB 13 18 Offset Tracking System" (see enclosure A for 

proposed AB 13 18 SIP revision); 
...k 

WHEREAS, the District has adopted the proposed AB 131 8 SIP revision for the CPV 

Sentinel Energy Project and has submitted it to the Air Resources Board (ARB) for 

inclusion in the SIP; 

WHEREAS, ARB has determined that the proposed AB 131 8 SIP revision for the CPV 

Sentinel Energy Project is necessary to meet the requirements of the federal Clean Air 

Act; 

WHEREAS, ARB is authorized by Health and Safety Code sections 39601, 39602, and 

41650 through 41 652 to adopt the proposed AB 131 8 SIP revision for the CPV Sentinel 

Energy Project as a revision to the SIP. 

THEREFORE, IT IS ORDERED that 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 the AB 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, 201 0 

V Executive Officer