As has been written in several previous Environmental News for You the new Mandatory GHG Emission Reporting Rule (40 CFR Part 98) is in effect. There has probably never been a rule in the history of the USEPA with such stringent requirements for monitoring, emission estimation, and reporting. In addition, the USEPA released a draft revision of Part 98 on March 22 covering several industrial categories not covered by the initial rule because estimating emissions from those types of facilities was considered too complex to begin by the preferred start date of Jan. 1, 2010. But those categories will have to meet even more stringent technical requirements beginning on Jan. 1, 2011.

USEPA’s New Attitude

The main reason this rule has been so complex for so many facilities so far is that the USEPA wants to evaluate GHG emission values that are “accurate”. Traditionally, air emissions inventories or requests for permit limits tend to be conservative, submitted rates slightly higher than the probable actual emission rate. It is better to err high than err low. If one is wrong low, then actual emissions may exceed its permitted or submitted emission rate, a non-compliance situation. It is better to submit an emission rate for a permit slightly higher and unlikely to be exceeded. Generally, most agencies understand this. Developing “accurate” emissions takes greater precision and effort.
The USEPA does not want to see conservative values as it compiles a national GHG emissions inventory for two reasons. First, it will use the inventory findings to shape future GHG emission reduction regulations, such as which industries to focus on and how to regulate them. Accurate emission rates are needed to properly evaluate potential reduction policies. Second, although there is debate in Congress, the USEPA is working on the assumption that there will be a future GHG cap and trade system. Affected facilities will have to meet GHG emission reduction goals (caps) from a baseline. If they do better, they can earn credits (to trade and make revenue). If emission rates being submitted now become the baseline and a company begins with a high baseline due to submittal of conservative emission rates, it can earn more credit revenues without having to do as much (its “real” emissions are already lower) compared to a company that submitted “accurate” GHG emissions data.

Therefore, Part 98 has many requirements for facilities to use monitoring, if possible, or exacting emission calculations otherwise. Even for something relatively simple like estimating GHG emissions from stationary combustion sources, Part 98 Subpart C requires a facility to use their own fuel-specific high heating values (HHVs) if they are provided by the vendor or if the facility performs its own evaluation – even though the HHV of most fuels do not differ much from lot to lot or over time. For many processes, Part 98 requires complex data collection of many sources to determine GHG emissions. For example, if one cannot monitor directly for CO2, Subpart X (petrochemical production) requires data collection to determine a carbon material balance around the petrochemical reaction to determine difference which is presumed to be GHG emissions. Flow rate and carbon content data with accurate equipment and specific laboratory protocols must be performed for every feedstock and waste stream of the production process. Many firms do not routinely measure the flow or composition of every stream; they must scramble to do so and ensure each measurement meets QA/QC criteria.

Key Additions to 2010 Revisions of Part 98

On March 22, USEPA Administrator Lisa Jackson signed new draft sections of Part 98, adding seven (7) industrial categories that were included in the original draft Part 98 rule of about a year ago, but taken out of the final rule published on Oct. 29, 2009. The industrial categories now included are:
– Petroleum & Natural Gas Systems (Subpart W) – CO2 Injection, Geologic Sequestration (Subp. RR)
– Electronics Manufacturing (Subp. I) - Fluorinated Gas Production (Subp. L)
– Imports and Exports of Equipment Pre-charged with Fluorinated GHGs or Containing Fluorinated GHGs in Closed-cell Foams (Subp. DD)
– Use of Electric Transmission and Distribution Equipment (Subp. OOa), and
– Manufacture of Electric Transmission and Distribution Equipment (Subp. SS)

These proposed subparts also have extensive data gathering requirements in order to develop an “accurate” estimate of GHG emissions. For example, in Subpart W, natural gas transmitters will be required to measure and quantify leaks at compressor stations by counting components (valves, flanges, pumps, etc.) and by measurement. Not an estimated count or assumption of leak rate, but actual measurements. The draft rule does encourage the use of an optical camera to quickly detect CH4 leaks for loss estimation rather than monitor every component. Note that the rule does not require a facility to repair leaks to reduce GHG emissions, just find them to compute emissions.

As this is issued, we are in the public comment period for these draft subparts, so feel free to review and comment. However, the USEPA is serious about finalizing these changes promptly so that such affected facilities are fully aware and can establish their systems to collect necessary data according to the complex technical requirements and be “up and running” by January 1, 2011.

In summary, the existing and proposed new subparts are very complex technically and require a comprehensive effort to fully prepare to meet all requirements now or by the beginning of next year. Read the new draft subparts and begin to prepare right away! And if you have processes already affected by the rule, double check to ensure you are developing “accurate” emission rates required.

Get more useful information in our blog: www.CCESworld.com/blog
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This Environmental News for You is not meant to be a complete discussion about Part 98 and its proposed changes. Work with professional technical and legal experts to prepare. CCES experts can assist you in preparing for GHG emission calculations and helping you comply fully with its complex requirements.