The Community Power Plant will use the most advanced air emissions control systems available. The design will result in a project that is one of the lowest emitting power generating facilities in California. Given its combined-cycle configuration and technology, the Community Power Plant will also be efficient at converting its fuel into electricity. This efficiency helps to reduce emissions further.

In addition, KRCD has chosen to voluntarily procure new emission reduction credits (ERCs) from the local area. This approach has been discussed with and is supported by the San Joaquin Valley Air Pollution Control District (air district). The use of newly available, local ERCs to the maximum extent possible will result in a net air quality benefit to the local area for such emissions as nitrogen oxides, fine particulate matter and sulfur dioxide.

By law and regulation, the Community Power Plant is required to offset its emissions of pollutants for which the local area is in non-attainment status of either the National Ambient Air Quality Standards (NAAQS) or the California Ambient Air Quality Standards (CAAQS). The process through which the Community Power Plant must meet this requirement is the purchase of ERCs.

The air district maintains an inventory of ERCs in the Central Valley, and this ERC bank is used as a starting point for ERC procurement. Owners of existing ERCs are contacted by potential buyers, a contract is negotiated and the ERCs are transferred into the name and account of the new project.

The ERC program allows the use of credits that may have been created and banked years before a new project acquires and applies these ERCs as offsets. Similarly, the location of the ERCs may be at one end of the air basin and the new project may be located at the other end. This flexibility is necessary to allow continued economic activity in the Valley. As compensation and in order to ensure consistent progress toward improved basin air quality, the air district generally requires that a new project offset considerably more than the new project's actual emissions. For example, for every pound of nitrogen oxides or fine particulate matter emitted by the Community Power Plant, ERCs corresponding to the removal of 1.3 to 1.5 pounds would be acquired and applied as emissions offsets.

While credits may be purchased from anywhere in the San Joaquin Valley's air basin from Tracy to Bakersfield, KRCD is committed to developing new, local emission credits rather than purchasing basin-wide, banked ones.