This webinar by Tracy Haynes, PE at BlueScape describes changes for 2014 to report 2013 greenhouse gas or GHG emissions under the AB32 Mandatory Reporting Regulation in California. The webinar discusses changes that affect applicability, emission calculation methods, reporting and verification requirements. An update on AB32 cap-and-trade regulations and the scoping plant for beyond 2020 is also provided. Ms. Haynes can be reached at 619-972-3443 for more information. For a video presentation go to BlueScape's Youtube channel at www.youtube.com/watch?v=QuDHIPc0niw. Also see www.bluescapeinc.com.

1. AB32 GHG
Reporting in
California
What has changed for 2014?
February 27, 2014
Tracy V. Haynes, PE
thaynes@bluescapeinc.com
619-972-3443

2. 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

3. 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

4. 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

5. 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)

6. 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

7. 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

8. 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)

9. Title
• Insert
text

10. 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)

11. 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)

12. 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)

13. 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)

14. 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

15. 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)

16. 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

17. 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

18. 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

19. 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

20. 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

21. 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!

22. QuesLons?

23. Contact
InformaLon
Tracy
Haynes
BlueScape
Environmental
619-­‐972-­‐3443
thaynes@bluescapeinc.com
www.bluescapeinc.com
Connect
with
me
on
Linkedin!
The
webinar
presentaAon
will
be
posted
on
Slideshare
(search
for
BlueScape)