# FW: CECP - NOx ERCs

Moore, Steve t

o

: Shaheerah Kelly 08/08/2008 05:07 PM

From: "Moore, Steve " <Steve.Moore@sdcounty.ca.gov>

To: Shaheerah Kelly/R9/USEPA/US@EPA



# Shaheerah,

Here is the latest submittal for the Carlsbad Energy Center Project. Thanks.

Steven Moore

Senior Air Pollution Control Engineer

San Diego County Air Pollution Control District

10124 Old Grove Road, San Diego, CA 92131

858-586-2750

Celebrating 50 years of air quality progress!

From: Tom W. A ndrews [mailto:TAndrews@sierraresearch.com]

Sent: Tuesday, July 29, 2008 1:47 PM

To: Moore, Steve

Cc: Nguyen, Camqui; Hemig, Tim; Piantka, George; Tom W. A ndrews; robert.mason@ch2m.com

Subject: CECP - NOx ERCs

Dr. Moore:

As requested, in the enclosed letter we explain the approach that will be used to obtain the NOx ERCs

required for the proposed Carlsbad Energy Center Project. The District does have a question regarding

the baseline NOx emission calculations for the existing boiler Units 1, 2, and 3, and we are in the process

of reviewing this issue. However, any associated change in the NOx ERCs required for the proposed

project due to a change in the existing boiler baseline will be met by purchasing NOx ERCs on the open

market. There are several ERC brokers selling NOx ERCs.

# ATTACHMENT 1

EMISSION REDUCTION CRE DIT CALCULATIONS

# CECP ERC Calculations

Using Average of Past 5 Years

Calculation of Emission Offset Credits (tons/yr )

(Commissioning Year)

NOx CO V OC PM10 SOx

Emissions Emissions Emissions Emissions Emissions

Emissions New Units = 75.3 339.9 22.0 34.3 4.9

Emission Reductions Units 1, 2, and 3 = 38.6 284.9 15.7 31.6 5.8

Net Emission Change = 36.7 55.0 6.3 2.7 -0.9

Major Modification Thresholds(1) = 25 100 25 15 40

Major Modification? Yes No No No No

ERC Requirement Triggered? Yes N/A No N/A N/A

Offset Ratio(2) = 1.2 N/A 1.2 N/A N/A

ERCs Required = 44.0 N/A 0 N/A N/A

ERCs Purchased(3)= 37.6 16.1 0 2.9 8.8

ERC Surplus/Shortfall = 6.4 N/A 0 N/A N/A

Using Average of Past 5 Years

Calculation of Emission Offset Credits (tons/yr )

(Non-Commissioning Year)

NOx CO V OC PM10 SOx

Emissions Emissions Emissions Emissions Emissions

Emissions New Units = 75.6 217.3 25.0 39.0 5.6

Emission Reductions Units 1, 2, and 3 = 38.6 284.9 15.7 31.6 5.8

Net Emission Change = 36.9 -67.6 9.3 7.3 -0.2

Major Modification Thresholds(1) = 25 100 25 15 40

Major Modification? Yes No No No No

ERC Requirement Triggered? Yes N/A No N/A N/A

Offset Ratio(2) = 1.2 N/A 1.2 N/A N/A

ERCs Required = 44.3 N/A 0 N/A N/A

ERCs Purchased(3)= 37.6 16.1 0 2.9 8.8

ERC Surplus/Shortfall = 6.7 N/A 0 N/A N/A

Notes:

1. Based on SDAPCD Rule 20.1.c.33.

2. Based on SDAPCD Rule 20.3.d.8.i.B.

3. Based on ERCs held for proposed project.

# ATTACHMENT 2

SDAPCD EMISSION RE DUCTION CREDIT BANKSan Diego APCD ERC Banking Registry Summarylast update: February 28, 2008"Subject to Verification"CLASS A - ACTIVE ERC'S (TPY) CumulativeTotalsCompany Name Certificate No. NOx VOC NOx VOCCabrillo Enterprises, LLC 16.9 16.9Cabrillo Power II, LLC 978938-05 35.30 35.30 16.9Childrens Hospital 984240-02 0.54 35.84 16.9City of San Diego, Metropolitan Wastewater Dept.950766-06 0.38 35.84 17.28970821-02 22.76 35.84 40.04Element Markets 070823-01 1.10 36.94 40.04070823-02 5.30 36.94 45.34070823-03 0.20 36.94 45.54General Dynamics Properties, Inc. 970809-02 1.26 38.20 45.54970809-05 0.23 38.20 45.77Gillis, Johm 070619-02 2.10 38.20 47.87Grey K. Environmental Fund, LP 983809-01 25.10 38.20 72.97060328-01 1.90 40.10 72.97060328-02 2.20 42.30 72.97060328-03 2.90 42.30 75.87060328-04 0.54 42.30 76.41060328-05 0.10 42.30 76.51060328-06 0.30 42.30 76.81060803-02 36.70 42.30 113.51070731-01 20.70 42.30 134.21Hanson Aggregates, Pacific SW Region 980772-01 0.93 43.23 134.212/28/08Page 1CLASS A - ACTIVE ERC'S (TPY) CumulativeTotalsCompany Name Certificate No. NOx VOC NOx VOC980772-03 0.26 43.23 134.47Hughes-Aircraft Co., Electro-Opti Cal Systems 940261-01 1.06 43.23 135.53940261-02 0.22 43.23 135.75Inland Gas & Electric GP LLC 080212-01 18.70 43.23 154.45Martin Furniture 980590-02 18.70 43.23 173.15Muht-Hei, Inc. 981002-01 0.18 43.23 173.33981002-02 0.18 43.23 173.51981002-03 0.18 43.23 173.69981002-04 0.18 43.23 173.87981002-05 0.57 43.23 174.44981002-06 0.19 43.23 174.63981002-07 2.23 43.23 176.86981002-08 1.28 43.23 178.14981002-09 0.18 43.23 178.32981002-10 2.07 43.23 180.39981002-11 1.28 43.23 181.67981002-12 0.57 43.23 182.24National Steel & Shipbuilding 40995-02 0.18 43.41 182.2440995-03 0.60 43.41 182.8440996-02 0.04 43.45 182.8440997-02 0.32 43.77 182.8440997-03 0.02 43.77 182.86Naval Air Station, North Island 991014-01 8.00 51.77 182.86991015-01 3.30 55.07 182.86991016-01 18.70 73.77 182.86Naval Station, San Diego 950949-01 4.83 78.60 182.86940206-01 0.67 79.27 182.862/28/08Page 2CLASS A - ACTIVE ERC'S (TPY) CumulativeTotalsCompany Name Certificate No. NOx VOC NOx VOC940206-03 0.05 79.27 182.91Navy Region Southwest 990223-01 12.02 91.29 182.91Northrop-Grumman Ryan Aeronautical Center 975000-01 1.20 91.29 184.11Olduvai Gorge LLC 070430-01 2.00 93.29 184.11070502-01 14.72 108.01 184.11070822-01 1.20 109.21 184.11070822-02 0.10 109.21 184.21070822-03 12.30 109.21 196.51071004-01 10.80 109.21 207.31071004-02 12.00 121.21 207.31Otay Mesa Generating Co., LLC 990902-01 1.21 122.42 207.31991123-01 17.05 122.42 224.36000128-01 25.00 122.42 249.36000427-01 1.30 123.72 249.36000427-02 30.10 123.72 279.46000918-01 10.30 123.72 289.76000224-01 4.40 128.12 289.76010629-01 0.32 128.44 289.76010629-02 2.39 130.83 289.76Performance Contracting Inc. 071217-01 1.00 130.83 290.76Shipyard Supplies, Inc. 06-0824-02 1.00 130.83 291.76SDG&E 983811-01 4.00 134.83 291.76060324-01 0.40 134.83 292.16060324-02 19.90 154.73 292.16Solar Turbines 970123-04 10.00 164.73 292.16950562-01 0.60 164.73 292.76Southern California Edison Company 950171-01 0.51 165.24 292.76950171-03 0.02 165.24 292.782/28/08Page 3CLASS A - ACTIVE ERC'S (TPY) CumulativeTotalsCompany Name Certificate No. NOx VOC NOx VOCSurface Technologies 990325-01 1.48 165.24 294.26United States Marine Corps 030507-01 3.00 168.24 294.26US Foam 974375-03 0.10 168.24 294.36SW Division, Naval Facilities Engineering Cmd. 954185-01 2.00 168.24 296.36960709-01 9.00 168.24 305.36970311-01 13.00 168.24 318.36980511-03 3.15 168.24 321.51980521-02 13.25 168.24 334.76980529-02 7.40 168.24 342.16Unisys Corporation 901238-01 3.66 168.24 345.82921410-01 1.25 168.24 347.07940577-01 2.95 168.24 350.02USN Communications Station 940560-01 2.40 170.64 350.02940560-04 0.05 170.64 350.07940561-01 0.12 170.76 350.07940561-03 0.00 170.76 350.07940562-01 0.12 170.88 350.07940562-03 0.00 170.88 350.07Veterans Administration Hospital 979555-01 1.90 172.78 350.07Witte, Fred 070619-03 2.10 172.78 352.17TOTALS (tons/year) =172.78 352.172/28/08Page 4San Diego APCD ERC Banking Registry Summarylast update: February 28, 2008"Subject to Verification"CLASS A - ACTIVE ERC's (TPY) CumulativeTotalsCompany Name Certificate No. PM10 CO SOx PM10 CO SOxCabrillo Power II, LLC 978938-02 15.2 0.00 15.20 0.00978938-03 2.8 2.80 15.20 0.00978938-04 8.1 2.80 15.20 8.10City of San Diego, Metropolitan Wastewater Dept. 950766-02 1.88 2.80 17.08 8.10950766-04 0.63 3.43 17.08 8.10Element Markets 070823-04 0.30 3.43 17.08 8.40070823-05 0.30 3.73 17.08 8.40070823-06 1.30 3.73 18.38 8.40General Dynamics, Convair 951022-01 64.80 3.73 83.18 8.40951022-04 0.10 3.73 83.18 8.50951022-07 1.50 5.23 83.18 8.50General Dynamics Properties, Inc. 970809-01 1.17 5.23 84.35 8.50970809-03 0.46 5.69 84.35 8.50970809-04 0.02 5.69 84.35 8.52Grey K Environmental Fund, LP 060328-10 0.70 5.69 85.05 8.52060328-08 0.20 5.89 85.05 8.52060328-09 2.00 5.89 87.05 8.52060328-07 0.40 6.29 87.05 8.52Hanson Aggregates, Pacific SW Region 980772-02 2.20 6.29 89.25 8.52980772-04 0.09 6.38 89.25 8.52H. G. Fenton Material Co. 41106-03 129.10 135.48 89.25 8.52930902-02 3.85 135.48 93.10 8.52930902-04 1.06 136.54 93.10 8.522/28/08Page 1CLASS A - ACTIVE ERC's (TPY) CumulativeTotalsCompany Name Certificate No. PM10 CO SOx PM10 CO SOx930902-05 1.00 136.54 93.10 9.52975070-01 1.10 136.54 94.20 9.52975070-03 0.10 136.64 94.20 9.52975070-04 0.10 136.64 94.20 9.62975733-01 1.60 136.64 95.80 9.62975733-03 0.20 136.84 95.80 9.62Jack Brunton 973039-02 24.20 136.84 120.00 9.62National Steel & Shipbuilding 40994-01 0.10 136.94 120.00 9.6240995-01 0.09 137.03 120.00 9.6240995-05 0.27 137.03 120.00 9.8940995-06 3.40 137.03 123.40 9.8940996-01 0.01 137.04 123.40 9.8940996-03 0.02 137.04 123.42 9.8940996-04 0.35 137.04 123.42 10.2440997-01 0.45 137.49 123.42 10.2440997-04 0.06 137.49 123.48 10.2440997-05 0.04 137.49 123.48 10.280.03 tpy of Lead (Pb) 40997-06 137.49 123.48 10.28Naval Station, San Diego 950949-02 0.75 137.49 124.23 10.28950949-03 1.09 138.58 124.23 10.28940206-02 0.04 138.62 124.23 10.28940206-04 0.12 138.62 124.35 10.28940206-05 0.04 138.62 124.35 10.32NAVERUS, Inc. 040203-01 0.60 138.62 124.95 10.32040203-02 0.10 138.72 124.95 10.32978227-01 0.90 138.72 125.85 10.32978227-03 0.10 138.82 125.85 10.322/28/08Page 2CLASS A - ACTIVE ERC's (TPY) CumulativeTotalsCompany Name Certificate No. PM10 CO SOx PM10 CO SOx981024-02 0.17 138.99 125.85 10.32981024-04 0.37 138.99 126.22 10.32981024-05 0.09 138.99 126.22 10.41981954-01 4.52 138.99 130.74 10.41981954-03 0.28 138.99 130.74 10.69981954-04 0.61 139.60 130.74 10.69Olduvai Gorge LLC 071004-03 50.30 139.60 181.04 10.69071004-04 0.85 140.45 181.04 10.69071004-05 0.10 140.45 181.04 10.79Ralston Purina 50055-01 0.50 140.95 181.04 10.7950055-02 4.60 140.95 181.04 15.3950055-05 3.40 140.95 184.44 15.39SDG&E 921291-03 55.30 140.95 239.74 15.39921291-04 2.90 143.85 239.74 15.39979298-02 13.83 143.85 253.57 15.39South Coast Materials Company 940101-01 10.80 154.65 253.57 15.39Southern California Edison Company 950171-02 0.11 154.65 253.68 15.39950171-04 0.01 154.66 253.68 15.39950171-05 0.10 154.66 253.68 15.49STMicroelectronics, Inc. 978887-01 1.50 154.66 255.18 15.49978887-04 0.10 154.76 255.18 15.49SW Division, Naval Facilities Engineering Cmd. 970312-01 2.00 156.76 255.18 15.49US Foam 974375-02 1.10 156.76 256.28 15.49974375-05 0.10 156.86 256.28 15.49USN Communications Station 940560-02 0.49156.86 256.28 15.98940560-03 0.34157.20 256.28 15.98940560-05 1.05157.20 257.33 15.982/28/08Page 3CLASS A - ACTIVE ERC's (TPY) CumulativeTotalsCompany Name Certificate No. PM10 CO SOx PM10 CO SOx940561-02 0.03157.20 257.36 15.98940561-04 0.01157.20 257.36 15.99940561-05 0.00157.20 257.36 15.99940562-02 0.03157.20 257.39 15.99940562-04 0.01157.20 257.39 16.01940562-05 0.00157.21 257.39 16.01PM10 CO SoxTOTALS (tons/year)= 157.21 257.39 16.012/28/08Page 4