FW: CECP - NOx ERCs

Moore, Steve 

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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. Andrews [mailto:TAndrews@sierraresearch.com] 

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

To: Moore, Steve 

Cc: Nguyen, Camqui; Hemig, Tim; Piantka, George; Tom W. Andrews; 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 CREDIT CALCULATIONS 
CECP ERC Calculations

Using Average of Past 5 Years 

Calculation of Emission Offset Credits (tons/yr)

(Commissioning Year)

NOx CO VOC 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 VOC 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 REDUCTION CREDIT BANK 
San Diego APCD ERC Banking Registry Summ

last update: February 28, 2008

"Subject to Verification"

CLASS A - ACTIVE ERC'S (TPY) Cumula

Tota

Company Name Certificate No. NOx VOC NOx 

Cabrillo Enterprises, LLC 16.9 Cabrillo Power II, LLC 978938-05 35.30 35.30 Childrens Hospital 984240-02 0.54 35.84 City of San Diego, Metropolitan Wastewater Dept. 950766-06 0.38 35.84 

970821-02 22.76 35.84 

Element Markets 070823-01 1.10 36.94 

070823-02 5.30 36.94 070823-03 0.20 36.94 

General Dynamics Properties, Inc. 970809-02 1.26 38.20 

970809-05 0.23 38.20 

Gillis, Johm 070619-02 2.10 38.20 Grey K. Environmental Fund, LP 983809-01 25.10 38.20 

060328-01 1.90 40.10 060328-02 2.20 42.30 060328-03 2.90 42.30 060328-04 0.54 42.30 060328-05 0.10 42.30 060328-06 0.30 42.30 060803-02 36.70 42.30 070731-01 20.70 42.30 

Hanson Aggregates, Pacific SW Region 980772-01 0.93 43.23 

2/28/08 Page 1
CLASS A - ACTIVE ERC'S (TPY) Cumula

Tota

Company Name Certificate No. NOx VOC NOx 

980772-03 0.26 43.23 

Hughes-Aircraft Co., Electro-Opti Cal Systems 940261-01 1.06 43.23 

940261-02 0.22 43.23 

Inland Gas & Electric GP LLC 080212-01 18.70 43.23 Martin Furniture 980590-02 18.70 43.23 Muht-Hei, Inc. 981002-01 0.18 43.23 

981002-02 0.18 43.23 981002-03 0.18 43.23 981002-04 0.18 43.23 981002-05 0.57 43.23 981002-06 0.19 43.23 981002-07 2.23 43.23 981002-08 1.28 43.23 981002-09 0.18 43.23 981002-10 2.07 43.23 981002-11 1.28 43.23 981002-12 0.57 43.23 

National Steel & Shipbuilding 40995-02 0.18 43.41 

40995-03 0.60 43.41 40996-02 0.04 43.45 40997-02 0.32 43.77 40997-03 0.02 43.77 

Naval Air Station, North Island 991014-01 8.00 51.77 

991015-01 3.30 55.07 991016-01 18.70 73.77 

Naval Station, San Diego 950949-01 4.83 78.60 

940206-01 0.67 79.27 

2/28/08 Page 2
CLASS A - ACTIVE ERC'S (TPY) Cumula

Tota

Company Name Certificate No. NOx VOC NOx 

940206-03 0.05 79.27 

Navy Region Southwest 990223-01 12.02 91.29 Northrop-Grumman Ryan Aeronautical Center 975000-01 1.20 91.29 Olduvai Gorge LLC 070430-01 2.00 93.29 

070502-01 14.72 108.01 070822-01 1.20 109.21 070822-02 0.10 109.21 070822-03 12.30 109.21 071004-01 10.80 109.21 071004-02 12.00 121.21 

Otay Mesa Generating Co., LLC 990902-01 1.21 122.42 

991123-01 17.05 122.42 000128-01 25.00 122.42 000427-01 1.30 123.72 000427-02 30.10 123.72 000918-01 10.30 123.72 

 000224-01 4.40 128.12 

010629-01 0.32 128.44 010629-02 2.39 130.83 

Performance Contracting Inc. 071217-01 1.00 130.83 Shipyard Supplies, Inc. 06-0824-02 1.00 130.83 SDG&E 983811-01 4.00 134.83 

060324-01 0.40 134.83 060324-02 19.90 154.73 

Solar Turbines 970123-04 10.00 164.73 

950562-01 0.60 164.73 

Southern California Edison Company 950171-01 0.51 165.24 

950171-03 0.02 165.24 

2/28/08 Page 3
CLASS A - ACTIVE ERC'S (TPY) Cumula

Tota

Company Name Certificate No. NOx VOC NOx 

Surface Technologies 990325-01 1.48 165.24 United States Marine Corps 030507-01 3.00 168.24 US Foam 974375-03 0.10 168.24 SW Division, Naval Facilities Engineering Cmd. 954185-01 2.00 168.24 

960709-01 9.00 168.24 970311-01 13.00 168.24 980511-03 3.15 168.24 980521-02 13.25 168.24 980529-02 7.40 168.24 

Unisys Corporation 901238-01 3.66 168.24 

921410-01 1.25 168.24 940577-01 2.95 168.24 

USN Communications Station 940560-01 2.40 170.64 

940560-04 0.05 170.64 940561-01 0.12 170.76 940561-03 0.00 170.76 940562-01 0.12 170.88 940562-03 0.00 170.88 

Veterans Administration Hospital 979555-01 1.90 172.78 Witte, Fred 070619-03 2.10 172.78 

TOTALS (tons/year) = 172.78 

2/28/08 Page 4
 San Diego APCD ERC Banking Registry Summary

last update: February 28, 2008

"Subject to Verification"

CLASS A - ACTIVE ERC's (TPY) Cum

T

Company Name Certificate No. PM10 CO SOx PM10 

Cabrillo Power II, LLC 978938-02 15.2 0.00 

978938-03 2.8 2.80 978938-04 8.1 2.80 

City of San Diego, Metropolitan Wastewater Dept. 950766-02 1.88 2.80 

950766-04 0.63 3.43 

Element Markets 070823-04 0.30 3.43 

070823-05 0.30 3.73 070823-06 1.30 3.73 

General Dynamics, Convair 951022-01 64.80 3.73 

951022-04 0.10 3.73 951022-07 1.50 5.23 

General Dynamics Properties, Inc. 970809-01 1.17 5.23 

970809-03 0.46 5.69 970809-04 0.02 5.69 

Grey K Environmental Fund, LP 060328-10 0.70 5.69 

060328-08 0.20 5.89 060328-09 2.00 5.89 060328-07 0.40 6.29 

Hanson Aggregates, Pacific SW Region 980772-02 2.20 6.29 

980772-04 0.09 6.38 

H. G. Fenton Material Co. 41106-03 129.10 135.48 

930902-02 3.85 135.48 930902-04 1.06 136.54 

2/28/08 Page 1
CLASS A - ACTIVE ERC's (TPY) Cum

T

Company Name Certificate No. PM10 CO SOx PM10 

930902-05 1.00 136.54 975070-01 1.10 136.54 975070-03 0.10 136.64 975070-04 0.10 136.64 975733-01 1.60 136.64 975733-03 0.20 136.84 

Jack Brunton 973039-02 24.20 136.84 National Steel & Shipbuilding 40994-01 0.10 136.94 

40995-01 0.09 137.03 40995-05 0.27 137.03 40995-06 3.40 137.03 40996-01 0.01 137.04 40996-03 0.02 137.04 40996-04 0.35 137.04 40997-01 0.45 137.49 40997-04 0.06 137.49 40997-05 0.04 137.49 

0.03 tpy of Lead (Pb) 40997-06 137.49 

Naval Station, San Diego 950949-02 0.75 137.49 

950949-03 1.09 138.58 940206-02 0.04 138.62 940206-04 0.12 138.62 940206-05 0.04 138.62 

NAVERUS, Inc. 040203-01 0.60 138.62 

040203-02 0.10 138.72 978227-01 0.90 138.72 978227-03 0.10 138.82 

2/28/08 Page 2
CLASS A - ACTIVE ERC's (TPY) Cum

T

Company Name Certificate No. PM10 CO SOx PM10 

981024-02 0.17 138.99 981024-04 0.37 138.99 981024-05 0.09 138.99 981954-01 4.52 138.99 981954-03 0.28 138.99 981954-04 0.61 139.60 

Olduvai Gorge LLC 071004-03 50.30 139.60 

071004-04 0.85 140.45 071004-05 0.10 140.45 

Ralston Purina 50055-01 0.50 140.95 

50055-02 4.60 140.95 50055-05 3.40 140.95 

SDG&E 921291-03 55.30 140.95 

921291-04 2.90 143.85 979298-02 13.83 143.85 

South Coast Materials Company 940101-01 10.80 154.65 Southern California Edison Company 950171-02 0.11 154.65 

950171-04 0.01 154.66 950171-05 0.10 154.66 

STMicroelectronics, Inc. 978887-01 1.50 154.66 

978887-04 0.10 154.76 

SW Division, Naval Facilities Engineering Cmd. 970312-01 2.00 156.76 US Foam 974375-02 1.10 156.76 

974375-05 0.10 156.86 

USN Communications Station 940560-02 0.49 156.86 

940560-03 0.34 157.20 940560-05 1.05 157.20 

2/28/08 Page 3
CLASS A - ACTIVE ERC's (TPY) Cum

T

Company Name Certificate No. PM10 CO SOx PM10 

940561-02 0.03 157.20 940561-04 0.01 157.20 940561-05 0.00 157.20 940562-02 0.03 157.20 940562-04 0.01 157.20 940562-05 0.00 157.21 

PM10 

TOTALS (tons/year)= 157.21 

2/28/08 Page 4