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Proposed Mandatory GHG Reporting Rule: Overview

Proposed Mandatory GHG Reporting Rule: Overview. EPRI CEM User Group Conference May 2009. Overview. FY08 Omnibus Appropriations, signed Dec 26, 2007:

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Proposed Mandatory GHG Reporting Rule: Overview

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  1. Proposed Mandatory GHG Reporting Rule:Overview EPRI CEM User Group Conference May 2009

  2. Overview FY08 Omnibus Appropriations, signed Dec 26, 2007: • “… not less than $3,500,000 shall be provided for activities to develop and publish a draft rule not later than 9 months after the date of enactment of this Act, and a final rule not later than 18 months after the date of enactment of this Act, to require mandatory reporting of greenhouse gas emissions above appropriate thresholds in all sectors of the economy…” • The Agency shall "use its existing authority under the Clean Air Act" to develop a mandatory GHG reporting rule. "The Agency is further directed to include in its rule reporting of emissions resulting from upstream production and downstream sources, to the extent that the Administrator deems it appropriate. The Administrator shall determine appropriate thresholds of emissions above which reporting is required, and how frequently reports shall be submitted to EPA. The Administrator shall have discretion to use existing reporting requirements for electric generating units under Section 821 of the Clean Air Act...." 2

  3. Overview • Proposed rule published in the Federal Register / Vol. 74, No. 68 / Friday, April 10, 2009 pages 16447-16731 • Mandatory Reporting Rule requirements for Direct Emitters and Suppliers of Fuels and Industrial Gases are proposed in 40 CFR part 98 • Public Hearings held in Arlington VA and Sacramento CA in April • Comment period closes June 9, 2009 • EPA will strive to finalize the rule in 2009 so that the first reporting period begins January 1, 2010 3

  4. Rulemaking Approach • Start with anthropogenic emission sources in the U.S. GHG Inventory and IPCC Guidelines • Review existing methodologies and reporting programs (e.g., CARB, Acid Rain Program/RGGI, The Climate Registry, 1605b, Climate Leaders, fuel quality and vehicle programs, etc.) • Apply screening criteria to identify source categories to be included in the rule: • Could be covered under the Clean Air Act • Ability to measure • Administrative burden • Number of reporters vs. coverage of emissions • Develop reporting methodologies for selected emission source categories • Established cross-Agency workgroup to develop rule • 8 technical groups (by source category) • Over 100 workgroup members • Nearly every office within EPA represented (OAR, OGC, OECA, OPEI, OW, OSWER, OPPTS, etc.) 4

  5. Estimated Proposal Coverage • Emissions coverage is for downstream sources only. Including upstream sources increases emissions coverage by 30-35% • Facility coverage represents both upstream and downstream sources

  6. Key Aspects of Proposal • Proposed rule covers all aspects of the economy both Upstream and Downstream • Facility level reporting • GHG emissions reporting annually on March 31st for the previous calendar year. • First report due March 31, 2011 for calendar year 2010 • Proposes EPA verification while taking comment on other options • Reports to be submitted electronically in a format specified by the Administrator

  7. Subparts of Interest for Utilities • Subpart A – General Provisions • Subpart C – General Stationary Fuel Combustion Sources • Subpart D – Electricity Generation • Subpart DD – Sulfur Hexafluoride (SF6) From Electrical Equipment • Subpart MM – Suppliers of Petroleum Products • Subpart NN – Suppliers of Natural Gas and natural Gas Liquids

  8. Proposed General Stationary Fuel Combustion Sources • Stationary fuel combustion sources include, but are not limited to, boilers, combustion turbines, engines, incinerators and process heaters • Reporting Threshold 25,000 metric tpy CO2e • Methodology for calculating emissions • CO2 calculated using tiered approach ranges from simple methodologies using fuel based emission factors and fuel use to CEMs (see §98.33(b)) • CH4 and N2O emissions calculated based on fuel use and fuel specific emission factors 8

  9. Proposed Electricity Generation Source Category • The source category comprises all facilities with one or more electricity generating units, including units subject to the Acid Rain Program • The source category would not include portable equipment or generating units designated as emergency generators in a permit issued by a State or local air pollution control agency • Electricity generating facilities that are subject to the Acid Rain Program, or that contain electric generating units that collectively emit 25,000 metric tons CO2e would be subject to the reporting rule • Units subject to the Acid Rain Program would continue to monitor and report CO2 mass emissions as required under §§75.13 and 75.64 9

  10. Proposed Electricity Generation Source Category • Owner or operator of Acid Rain Program (ARP) units would convert the cumulative annual CO2 emissions reported in the fourth quarter EDR from short tons to metric by dividing by 1.1023 • CH4 and N2O emissions from ARP units would be determined by multiplying cumulative reported annual HI by fuel specific emission factors • ARP units would continue to meet the QA/QC, missing data procedures, data reporting and verification requirements of part 75

  11. Proposed Verification Proposal: EPA as verifier • Reporter self-certifies emissions data and other specified activity data and submits to EPA who performs QA/QC of reports; EPA takes enforcement action for non-compliance • Consistent with most EPA Programs • Some OTAQ fuels programs require additional annual audit of reporting parties’ records by independent auditor 11

  12. Estimated Proposal Costs

  13. Proposal Summary • Reporter: Hybrid approach • Facility based reporting for all source categories for which there are methods • Limited exceptions for a few reporters (e.g. fuel importers, vehicle and engine manufacturers) • Threshold: Hybrid approach • A facility that meets the emissions threshold of 25,000 tons CO2e reports all source categories for which there are methods in the rule • May develop capacity thresholds where feasible (e.g., ARP) • Methodology: Hybrid approach • Direct measurement of stationary combustion source categories where data currently collected (e.g., CO2 emissions from EGUs in ARP) • Facility-specific calculation methods for other source categories at the facility • Frequency: Annual • Annual for new reporters • Facilities already reporting similar data more frequently to other mandatory programs (e.g., Acid Rain Program) continue current practice • Verification: EPA as the verifier • Reporter self-certifies emissions data and other specified activity data and submits to EPA who performs QA/QC of reports

  14. For more information • Preamble and proposed regulatory text available at: www.regulations.govin the Federal Register • Instructions for submitting written comments can be found at: www.epa.gov/climatechange/emissions/downloads/Instructionsforsubmittingcomments.pdf • Additional information: www.epa.gov/climatechange/emissions/ghgrulemaking.html Hotline: 1-877-GHG-1188 Email: GHGMRR@epa.gov

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