As we FReepers have know for a long time, generators must either shut down when they reach their "emission limits", buy "emission credits" at exorbitant prices, or pay fines of $7.50 per pound of NOx and $1.20 per pound of CO.
I think they can also buy emissions credits from other entities--cheaper than paying the fines. From what I've read, the emissions buying market is big business in CA.