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HomeMy WebLinkAboutRes 09-37 - Support SCAQMD Overturn Issuance of Air Quality PermitsREQUEST: CITY OF PALM DESERT COMMUNITY SERVICES DEPARTMENT STAFF REPORT CONSIDERATION OF RESOLUTION NO. 09-37 RELATIVE TO OVERTURNING THE SUPERIOR COURT RULING RELATIVE TO ISSUANCE OF AIR QUALITY PERMITS DATE: June 11, 2009 CONTENTS: Resolution No. 09-37 RECOMMENDATION: By Minute Motion, waive further reading and adopt Resolution No.09-37 BACKGROUND: Due to a recent State Court CEQA decision, the South Coast Air Quality Management District (AQMD) has been forced to stop issuing permits that rely on the District's internal offsets account. As a result, almost 100,000 permits are on hold with over 3,000 existing permits representing over 2,000 facilities in further jeopardy that will have to be revoked. Affected businesses include essential public services such as sewage treatment plants, hospitals, schools, fire and police stations, landfill, energy projects, gas stations, dry cleaners, auto body shops, printers, and food manufacturers. Without the use of AQMD's internal offset account, government and businesses could be forced to spend up to $4 billion for buying pollution credits, if they are available at all. The lack of AQMD permits means lost jobs and delays in building needed projects particularly for those that would be eligible to receive stimulus funding from the Federal government and cannot be built without these permits. SB696 will reestablish AQMD's internal offset account and allow access to its priority reserve, which will allow the issuance of required permits for the construction of fire stations, police stations, hospital powered generators, electricity generators, and other projects that are essential to public services. Individual permits would not be exempted from CEQA and the California Energy Commission would undertake an analysis on proposed power plants. AQMD, or the municipality acting as the lead agency, would continue to conduct CEQA analysis on permits as required under existing law. Therefore, staff recommends that the City Council adopt such Resolution No. 09-37as presented and direct staff to forward it to appropriate agencies. /2/ PATRICIA SCULLY, CFEE ENI'R MANAGEM :TAN SHEILA R. dIELIGAN ACM/COMMUNITY SE"VIC S M. WOHLMUTH ITY MANAGER COUNCIL A� TION APPROVED ✓✓ DENTED Rkg M OTHER /lock(' MEET GDATE II'(2 AYES: r L991, f inPrhj, Kr; f i9e1 NOES: AP ABSENT: A / PAGIBSON ABSTAIN: %j //fin DIRECTOR OF FINANCE/CITY TREASURER VERIFIED BY: 1 Original on File with City Cerk's Office RESOLUTION NO. 09-37 A RESOLUTION OF THE CITY OF PALM DESERT SUPPORTING LEGISLATIVE EFFORTS BY THE SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT (AQMD) TO OVERTURN THE STATE SUPERIOR COURT RULING RELATIVE TO ISSUANCE OF AIR QUALITY PERMITS WHEREAS, the South Coast Air Quality Management District, (AQMD), is the agency responsible for attaining State and federal clean air standards in the South Coast Air Basin; and WHEREAS, the Riverside County portion of the Salton Sea Desert Air Basin that includes the Coachella Valley is under the AQMD jurisdiction under the provisions of the Health and Safety Code Section 40413; and WHEREAS, AQMD and the City of Palm Desert, have a demonstrated history of implementing of PM10 control strategies and collaborating on other air quality efforts benefitting the residents of Eastern Riverside County and the Coachella Valley communities; and WHEREAS, the City of Palm Desert, under the guidance of AQMD, has implemented and maintained a Coachella Valley State Implementation Plan (CVSIP) addressing air quality mitigation efforts for maintenance of the federal PM10 air quality standard; and WHEREAS, due to a recent State Superior Court decision, AQMD has suspended operations of its internal bank of emission reduction credits (ERCs) also known as offset credits; and WHEREAS, operation of the internal bank is needed for AQMD to provide credits to permit applicants from the Rule 1309.1 Priority Reserve, and for AQMD to allow permit applicant exemptions from offset requirements specified in Rule 1304; and WHEREAS, this court action also impacts thousands of previously issued permits in which AQMD cannot ensure the Tong -term validity of permits issued on or after August 3, 2007, or possibly on or after September 8, 2006; and WHEREAS, without AQMD's bank credits, no essential public service projects can be permitted; no other local government and business permits can be issued including hospitals, schools, police stations, landfills, sewage treatment plants, renewable energy projects; and WHEREAS, any facilities, regardless of size, are also affected including auto body shops, service stations, printers, local governments and other medium and large businesses; and WHEREAS, without legal remedy, the only remaining option for local governments and businesses is to purchase ERCs on the Open Market, which are extremely limited, expensive and potentially unaffordable; and WHEREAS, this court action impacts businesses in the Coachella Valleys; thereby resulting in a direct severe economic impact to the Coachella Valley cities; and NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF PALM DESERT hereby declares and resolves its support and endorses any and all efforts of the South Coast Air Quality Management District to resume issuing permits and overturn the State Superior court's decision. BE IT FURTHER RESOLVED, that the City supports a legislative amendment to add sections 21080(b) (16) and 21080(b) (17) to the Public Resources code relating to air pollution to be sponsored by Senator Rod Wright representing Senate District 25 including Los Angeles, Long Beach, and Inglewood. PASSED, APPROVED, and ADOPTED by the City Council of the City of Palm Desert, California, on this 11 th day of June, 2009, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: ROBERT A. SPIEGEL, MAYOR CITY OF PALM DESERT, CALIFORNIA ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA