The ARB has made funds available to fund projects, which will generate emission reduction credits that may be used to offset the construction of peaker power plants. The solicitation will close on April 2, 2001. This request is being submitted to the Board now due to the short time line, and is contingent upon approval by the MSRC which is scheduled to meet on March 22, 2001. William G. Kleindienst Chair, MSRC Background California is currently facing an energy crisis. To ensure an adequate supply of electricity to meet near-term energy demand, it is important to add new generation.
Small generators know as peaker plants can be brought on-line quickly.
A peaker plant is usually less than 50 megawatts. These power plants could increase NOx emissions statewide by approximately 3-10 tons per day. This order directs the California Energy Commission to expedite permitting of these facilities and directs ARB to create an ERC bank to provide, on a temporary basis, the emission offsets needed by these facilities. The ARB is initiating the NOx and PM Emissions Reduction Program to generate real, quantifiable, and enforceable ERCs for the credit bank. The ARB notice states that there is particular interest in projects within the boundaries of specific air districts.