Published on February 28, 2014
AB32 GHG Reporting in California What has changed for 2014? February 27, 2014 Tracy V. Haynes, PE firstname.lastname@example.org 619-972-3443
Agenda • Why is the MRR changing again? • What can go wrong if I don’t get it right? • Overview of MRR changes • EPA GHGRP – Recent Developments • Cap-‐and-‐Trade updates • AB32 Scoping Plan updates • Summary • QuesLons
About BlueScape • 17 years experience, full service ﬁrm specializing in air quality services • PermiUng, dispersion modeling and compliance for many industries • Project experience on GHG issues including reporLng for AB32, EPA and voluntary registries
Why is the MRR Changing Again? • Mandatory GHG reporLng supports AB32 goals • Further align with EPA GHGRP • Provide clariﬁcaLon, maintain accuracy, and demonstrate progress in reducing emissions • Support Cap-‐and-‐Trade implementaLon
What Can Go Wrong if I Don’t Get it Right? • Accurate reporLng is criLcal to your company’s boXom line • ARB is ramping up enforcement, ﬁnes are heavy • $1MM in ﬁnes issued to Chevron and Southwest Gas Corp for inadvertent reporLng mistakes (ARB Press Release #14-‐06) • Nine other companies ﬁned between $10,000 -‐ $120,000 for late and/or incomplete reporLng (ARB Press Release #13-‐39)
MRR – What are the Changes? • Include clariﬁcaLons, methodology changes and addiLonal requirements • General Applicability • Electricity GeneraLon and Cogen • Other ReporLng EnLLes • VeriﬁcaLon • CessaLon of ReporLng • Notes from ARB
General Applicability • New industry sectors added: – Lead ProducLon – LNG ProducLon faciliLes – 40 CFR Part 98 Subparts Applicable if >10,000 MT CO2e: • • • • • • • • • • • • E: Adipic Acid ProducLon F: Aluminum ProducLon G: Ammonia Manufacturing I: Electronics Manufacturing K: Ferralloy ProducLon L: Fluorinated Gas ProducLon O: HCFC-‐22 ProducLon and HCFC-‐23 DestrucLon R: Lead ProducLon T: Magnesium ProducLon U: Miscellaneous Uses of Carbonate X: Petrochemical ProducLon Z: Phosphoric Acid ProducLon Reference: §95101(a) • • • • • • • • • • • BB: Silicon Carbide ProducLon CC: Soda Ash Manufacturing EE: Titanium Dioxide ProducLon FF: Underground Coal Mines GG: Zinc ProducLon II: Industrial Wastewater Treatment LL: Suppliers of Coal-‐Based Liquid Fuels OO: Suppliers of Industrial GHG QQ: Importers and Exporters of Fluorinated GHG in Pre-‐Charged Equipment or Closed-‐Cell Foams SS: Electrical Equipment Manufacturing or Refurbishment TT: Industrial Waste Landﬁlls
General Applicability • Applicable industrial processes must noLfy ARB within 90 days of 1/1/14 or within 90 days of commencing the process (§95101(a)(1)(G)) • Recently updated ARB guidance documents available to assess applicability hXp://www.arb.ca.gov/cc/reporLng/ ghg-‐rep/guidance/guidance-‐docs.htm Reference: §95101(a)
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General Applicability • ClariﬁcaLons for calculaLng GHG relaLve to thresholds: Threshold Include 25,000 MT CO2e (§95182 Cap-‐and-‐Trade) All covered emissions of CO2, CH4 and N2O 10,000 MT CO2e (§95101(a) ReporLng) CO2, CH4, N2O from staLonary combusLon and process emissions. Exclude any vented and fugiLve emissions. 25,000 MT CO2e (§95103(a) Abbreviated ReporLng and (f) VeriﬁcaLon) All CO2, CH4 and N2O emissions within facility boundary, including vented and fugiLve • Hydrogen fuel cell unit operators must include these emissions in applicability calculaLon Reference: §95101(b)
General Applicability • Common control versus common ownership: – Basis can only be changed at the beginning of a compliance period. – Does not apply to legal change in facility ownership • GHG Monitoring Plan – Now required for all faciliLes with emissions >25,000 metric tons • CessaLon of ReporLng – 95101 (h) Clariﬁes that cessaLon only applies to faciliLes without a Cap-‐and-‐Trade obligaLon • CessaLon of VeriﬁcaLon – FaciliLes wishing to cease veriﬁcaLon must noLfy ARB – FaciliLes with a Cap-‐and-‐Trade obligaLon must obtain veriﬁcaLon References: §95101(a), (h), (i), 95015 (c)
Emissions Data ReporLng Requirements and Report Contents • For aggregated reporLng of mulLple unit types, report % of fuel aXributed to each unit type • Requirement for faciliLes with more than one cogen, boiler or steam generator to report disposiLon of generated thermal energy by unit • New requirement for Cap-‐and-‐Trade faciliLes to report if a change in facility operaLons or status results in a +/-‐5% change in emissions • Changes in facility air permit must be disclosed References: §95103(a)(2), 95104 (d), (f)
Electricity GeneraLon and Cogen • Best Available Methods (BAM) for some data elements for 2013 report • Requirements for reporLng electricity used to produce cooling energy or thermal energy • Requirement to report disposiLon of generated electricity by unit or system for end users • Subpart D reporters must report CO2 generated from sorbent injecLon • ClariﬁcaLon to requirements for missing data subsLtuLon procedures References: §95112(a), (c), (h)
Other ReporLng EnLLes • Electric Power EnLLes -‐ Warranty requirement for sellers of speciﬁed power • Supplementary data reporLng requirement for local distribuLon companies that report biomass from biomethane fuel delivered to end users • Product data requirements updated to assist with cap-‐and-‐trade allowance allocaLon, new deﬁniLons • Updated emissions esLmated methods and data reporLng requirements for faciliLes including petroleum and natural gas producers, reﬁneries, and manufacturing sectors References: §95111(a), 95122 (d), 95102 (b), 95113, 95117, 95150
VeriﬁcaLon • Full veriﬁcaLon required for change in operaLonal control • Speciﬁes restricLons for the 6-‐year veriﬁcaLon limit • Added requirements for veriﬁers to conﬁrm informaLon such as natural gas supplier account numbers and MMBtu reported • Veriﬁers are required to conﬁrm no subsLtuLon for product data References: §95130(a),(b), 95131(b)
Notes from ARB • Training webinars likely 2nd week of March • Use the previous Global Warming PotenLals • Complexity Weighted Barrel and Subpart W spreadsheets will be posted soon • Hydrogen producers product entry currently disabled • Subparts C and D, de minimis emissions reported with combusLon instead of Subpart A
EPA GHGRP Developments • Pending rule change to Subpart W – Petroleum and Natural Gas Systems – – – – CalculaLon methods Monitoring and data reporLng requirements Terms and deﬁniLons Technical and editorial errors • Final 2013 revisions eﬀecLve 1/1/14 – Amendments to Global Warming PotenLals – Minor amendments to mulLple subparts – ConﬁdenLality determinaLons • Some reporLng elements deferred for evaluaLon regarding “conﬁdenLal business informaLon” – 2013 and 2015
Cap-‐and-‐Trade Status • StaLonary combusLon and electricity generaLon in ﬁrst compliance period – 2013/2014 – 35% of GHG • Fuel distributors beginning in 2015 – 85% of GHG • Emissions in most sectors going down, HFCs going up – ARB plans to address in 2015 • Common reporLng plauorm with Quebec, eventually linked aucLons • MulLple lawsuits sLll pending
AB32 Scoping Plan Update • Proposed drav of ﬁrst scoping plan update recently released • IniLal plan focused on 2020; update sets a clear path toward long term reducLons • Integrated framework for achieving air quality and climate goals beyond 2020 • PotenLal technologically feasible and cost-‐ eﬀecLve acLons to further reduce GHG by 2020 • RecommendaLons for mid-‐term emission limit • Sector-‐speciﬁc discussions for reducing emissions
Key Dates and Deadlines • February 1, 2014 – EPE deadline to register speciﬁed sources • February 13, 2014 – Cal-‐eGGRT acLvated • April 10, 2014 – ReporLng deadline for faciliLes and fuel suppliers, except abbreviated reporters • June 2, 2014 – ReporLng deadline for EPE reports and abbreviated reports • July 15, 2015 – deadline for correcLons to RPS adjustment data required for EPE reports • September 2, 2015 – ﬁnal veriﬁcaLon statements due
RecommendaLons and Summary • Make sure reporLng is accurate and on Lme • Start veriﬁcaLon process early, change veriﬁers aver 6 years • Use ARB resources if doing your own reporLng • Contact BlueScape for assistance with reporLng and veriﬁcaLon support for your facility • Stay tuned for future updates!
Contact InformaLon Tracy Haynes BlueScape Environmental 619-‐972-‐3443 email@example.com www.bluescapeinc.com Connect with me on Linkedin! The webinar presentaAon will be posted on Slideshare (search for BlueScape)
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