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Palmdale Power Plant granted emission reduction credits

Allows industry investment in clean air

OW Staff Writer | 11/1/2013, midnight
Palmdale Power Plant

The Mojave Desert Air Quality Management District (MDAQMD) approved the inter-district transfer of offset Emission Reduction Credits (ERCs) to the Antelope Valley Air Quality Management District (AVAQMD) for the Palmdale Power Plant at its board meeting held on Monday in Victorville.

“As both the San Joaquin and Mojave Air Districts have said, the transfer of air credits encourages industry to make investments in clean air technology that improves air quality,” said Palmdale’s Director of Public Works Mike Mischel. “This also fosters a pro-business climate by allowing new job creating business to take place. Transferring these air credits is really a win-win for everyone.”

“In the case of the Palmdale Power Plant, ERCs are being acquired at a rate of 13 to 1, which means it will be taking more emissions off-line than it will contribute,” Mischel said. “That method ensures that our air continues to become cleaner and cleaner with each new project and technology.”

“This is all part of the process as the Palmdale Power Plant project moves forward,” said Palmdale Mayor Jim Ledford. “The power plant has been fully approved and permitted by the California Energy Commission (CEC) and the United States Environmental Protection Agency (EPA), and all that is left is the administrative procedures of transferring the Emission Reduction Credits (ERCs).”

According to the California Health and Safety Code, there is an allowance for emissions from a stationary source located within one air district that may be offset by emissions reductions credited in another air district under certain circumstances. If the two districts are located in the same air basin, then the district where the credits originate is required to determine the type and quantity of the emissions reductions credited and adopt a resolution approving the transfer, after taking into consideration the impact of the offset on air quality, public health and the regional economy.

The power plant was purchased by Summit Power Group LLC, a Seattle, Washington-based company, which develops all types of energy programs, including carbon capture projects for enhanced oil recovery, natural gas, coal, wind, solar and other energy-intensive industrial projects using proven technologies. The purchase of the project—which includes initial purchase price, development costs, development premium, 50 acres of land, transmission construction cost savings, and potentially additional acreage—will bring the city of Palmdale $27.4 million in revenue, bring in $5 million annually in products and services; generate $6 million a year in taxes for Los Angeles County; create up to 800 construction jobs and 35 permanent jobs; pave 4-6 miles of roads; and pay for a $20 million reclaimed water trunk line which will connect the Lancaster and Palmdale treatment facilities.

Summit also works with select new technology companies in related areas. Summit has led or had significant involvement in the successful development of more than 9,250 megawatts of projects either operating, constructing or in late stage development. The company has more than $3 billion in projects in early stage development. For more information on Summit, please visit www.summitpower.com.

Palmdale is poised to become an important power producer in the Antelope Valley and the State of California. Currently in Palmdale, there are more than a dozen solar power projects under construction or in the planning stages, which will produce a total of 158 megawatts of electricity.