Source: http://lawfilesext.leg.wa.gov/law/wsr/2016/19/16-19-047.htm
Timestamp: 2019-04-25 06:29:28+00:00

Document:
Purpose: The purpose of this rule making is to establish greenhouse gas (GHG) emission standards for certain large emitters and reduce GHG emissions to protect human health and the environment.
Ecology is adopting a new rule, chapter 173-442 WAC, Clean air rule and amending chapter 173-441 WAC, Reporting of emissions of greenhouse gases.
Chapter 173-442 WAC establishes emission standards for GHG emissions from certain stationary sources located in Washington state, petroleum product producers and importers, and natural gas distributors. Parties covered under this program will reduce their GHG emissions over time. The rule provides a variety of options to reduce emissions.
Chapter 173-441 WAC changes the emissions covered by the reporting program, modifies reporting requirements, and updates administrative procedures to align with chapter 173-442 WAC, Clean air rule.
Citation of Existing Rules Affected by this Order: Amending chapter 173-441 WAC, Reporting of emissions of greenhouse gases.
Statutory Authority for Adoption: Chapters 70.94, 70.235 RCW.
Adopted under notice filed as WSR 16-12-098 on May 31, 2016.
Changes Other than Editing from Proposed to Adopted Version: RCW 34.05.325 (6)(a)(ii) requires ecology to describe the differences between the text of the proposed rule as published in the Washington State Register and the text of the rule as adopted, other than editing changes. We must also state the reasons for the differences between the proposal and the adopted rule.
The extent to which a reasonable person affected by the adopted rule would have understood that the published proposed rule would affect his or her interests.
The extent to which the subject of the adopted rule or the issues determined in it are substantially different from the subject or issues involved in the published proposed rule.
The extent to which the effects of the adopted rule differ from the effects of the published proposed rule.
Ecology did not make any revisions to the proposed rule that change who is covered or otherwise affected by the rule. We believe a reasonable person affected by the proposed rule would also be affected by the adopted rule. A reasonable person not affected by the proposed rule would not be affected by the adopted rule. Ecology believes this supports our conclusion that we did not make any substantive changes to the proposed rule.
Ecology believes this supports our conclusion that we did not make any substantive changes to the proposed rule.
Instead of requiring all EITEs to use the production-based efficiency metric, the adopted rule now allows EITEs to choose to be treated as non-EITEs. We made this change at the request of multiple commenters. As this provision merely provides an option, we do not think it rises to the level of a "substantial" change to the rule. See WAC 173-442-020 (1)(m)(ii).
The adopted rule adds an exemption for natural gas distributors selling product that is used as a feedstock to produce another product, such as methanol. We made this change at the request of a commenter and believe it is consistent with the other exemptions listed in the proposed rule. We do not think this change rises to the level of a "substantial" change to the rule. See WAC 173-442-040 (3)(a).
The adopted rule adds clarifying instructions on how to adjust a natural gas distributor's baseline when other covered parties enter or exit the program. We made this change in response to comments. It clarifies our original intent and does not change requirements. We do not think this change rises to the level of a "substantial" change to the rule. See WAC 173-442-050 (3)(c).
The adopted rule added bounds on the required emission reductions for EITEs. These bounds were not included in the proposed rule. The most stringent reduction requirement for the least efficient EITE facilities will be no more than 2.7 percent per year. The least stringent reduction requirement for the most efficient EITE facilities will be no less than 0.7 percent per year. We made this change at the request of multiple commenters. We believe this clarifies ecology's original intent and does not rise to the level of a "substantial" change to the rule. See WAC 173-442-070 (3)(b)(i) and (ii).
The adopted rule added two new protocols that will be accepted for generation of emission reduction units (ERU). These protocols were not listed in the proposed rule. These new protocols are "Landfill Methane Collection and Combustion" and "Nitric Acid Production Project Protocol." These provisions were added at the request of commenters. As these provisions merely provide additional options, we do not think they rise to the level of a "substantial" change to the rule. See WAC 173-442-160 (7)(d) and (8)(e).
The adopted rule added another type of accreditation for third party verifiers. This accreditation was not listed in the proposed rule but was requested by a commenter. As this provision merely provides an option, we do not think it rises to the level of a "substantial" change to the rule. See WAC 173-442-220 (6)(a)(iii)(E) and 173-441-085 (7)(a)(iii)(E).
The following describes the exact changes made to the final adopted rule and explains ecology's reasons for making them. Where a change was made solely for typographical or editing purposes (including subsequent renumbering), we did not include it in this section. We did include clarifications made in response to comments.
Adds new definition for "allowance."
Stakeholders expressed confusion about the meaning and requested the definition be added.
Adds new option for EITEs to choose to not be treated as EITEs.
EITE stakeholders requested the ability to opt out of EITE provisions.
Clarifies definition of "ERU" is an emission reduction for accounting purposes.
Rewords "aggregate emission reduction limit" as "aggregate emission cap."
Rewords "external program" as "GHG emission reduction program."
Clarifies applicability is triggered by three-year rolling average.
Clarifies to indicate emission reduction requirements apply when the average emissions exceed the compliance thresholds listed in Table 1.
Stakeholders asked for clarification about when the requirements applied to covered parties.
Adds notation clarifying 2017–2019 compliance year applies for three-year rolling average starting in 2012.
Changed wording from final "distribution" to "destination."
Commenters asked for clarification to address concerns about meaning.
Adds exclusion for natural gas used to make a product and clarifies that natural gas supplied to voluntary parties is treated the same as other covered parties.
Commenters requested additional exclusion applicable to natural gas feedstocks and clarification that voluntary parties are treated the same as other covered parties.
Clarifies the referenced "implementation plan" is for the federal Clean Power Plan.
Adds clarifying language allowing for baseline adjustments for natural gas distributors due to entrance or exit of covered parties.
Commenters requested change to prevent double counting emissions.
Adds language clarifying when "annual decrease" becomes applicable.
Clarifies the contents of a regulatory order.
Clarifies that EITEs must only report their own production data, not production data from other companies in their industry sector.
Commenters were confused about whether they were required to produce data for other companies - new wording clarifies original intent.
Removes applicability section, now clarified in WAC 173-442-030(3).
Commenters found original wording confusing - removes wording to clarify original intent.
Removed 173-442-070(2) as noted above.
Changes terminology from "efficiency reduction rate" to "efficiency improvement rate."
Commenters found the original wording counterintuitive - new wording clarifies original intent.
Clarifies that GHG emissions data must be comparable to that reported under chapter 173-441 WAC or WAC 173-442-070(1).
Clarifies that production data submitted by the facility can be used to calculate the efficiency intensity distribution.
Clarifies wording regarding "greater," places upper bound on required emissions reductions of 2.7 percent for least efficient facilities, and corrects regulatory reference.
Commenters found the original wording confusing or counterintuitive - new wording clarifies original intent and responds to commenter requests to add upper limit.
Clarifies wording regarding "less," places lower bound on required emissions reductions of 0.7 percent for most efficient facilities, and corrects regulatory reference.
Commenters found the original wording confusing or counterintuitive - new wording clarifies original intent and responds to commenter requests to add lower limit.
Adds clarifying wording and corrects regulatory reference.
New wording clarifies original intent.
Commenters found the original wording confusing or counterintuitive - new wording clarifies original intent and responds to commenter request to add upper limit.
Clarifies wording and corrects regulatory reference.
Commenters found the original wording confusing or counterintuitive - new wording clarifies original intent.
Clarifies terminology in Equation 1.
Clarifies that an "activity" may generate ERUs, just like a "project" or "program."
Rewords description of external markets.
Rewords nature of ERU possession.
Clarifies that ERUs must be in addition to existing reduction requirements and must also meet additionality requirements of applicable protocol.
Clarifies original intent that ERUs from projects must meet requirement of listed protocols where applicable.
Adds language referring to carbon dioxide mitigation standards from an energy facility site evaluation council (EFSEC) site certificate.
Clarifies original intent to account for both ways EFSEC standard has been applied.
Clarifies that emission reduction projects at a stationary source must not be used to generate ERUs that are already counted.
Clarifies original intent to avoid double counting emission reductions for on-site projects.
Clarifies that all protocols must use a version approved no later than September 1, 2016.
Clarifies to avoid confusion about which protocols are acceptable.
Rephrase terms for commute trip reduction.
Commenters requested removal of provision requiring use of megawatt hours.
Clarifies applicability to electrical conservation projects.
Adds natural gas efficiency units may remain in therms.
Commenters requested use of therms instead of megawatt hours.
Adds "Landfill Methane Collection and Combustion" protocol to acceptable list.
Commenters requested adding this protocol - consistent with original intent.
Adds "Nitric Acid Production Project Protocol" to acceptable list.
Clarifies use of allowances to generate ERUs.
Commenters found the original wording confusing - new wording clarifies original intent.
Clarifies use of allowances cannot exceed limits on percentages in Table 3.
Changes title to add clarity.
Clarifies use of allowances by vintage year cannot exceed the percentage limits in Table 4.
Clarifies requirement to invalidate allowances.
Clarifies requirement is for each MT CO2e.
Adds missing cross reference for EITEs.
Removes reference to WAC 173-442-150(2).
Commenters asked for expanded accreditation to include omitted program - extends original intent.
Changes terminology in Equation 2.
Clarifies terminology regarding aggregate emissions cap.
Clarifies retirement options for ERUs.
Broadened to offer flexibility to meet original intent.
Removes requirement that purchases apply only to Washington customers.
Adds "activities" to "projects" and "programs."
Clarifies ERU awards from committee are subject to ecology approval.
Adds provision for whether permit is required.
Stakeholders requested clarification to avoid unintended consequence and meet original intent.
Deletes provision that violation is for each day.
Removed unnecessary reference to daily violations - covered by statutory provisions.
Updates 40 C.F.R. Part 98 adoption by reference dates to September 1, 2016, throughout.
Provides consistency with statutory requirement.
Clarifies distinction between "facility" and "supplier."
Clarifies original intent in response to comments.
Clarifies all applicable MT CO2e must be included in the report.
Adds clarifying language about facility definition.
Clarifies in response to comments.
Changes wording from final "distribution" to "destination."
A final cost-benefit analysis is available by contacting Kasia Patora, P.O. Box 47600, Olympia, WA 98504-7600, phone (360) 407-6184, fax (360) 407-6989, e-mail kpat461@ecy.wa.gov.
Number of Sections Adopted on the Agency's Own Initiative: New 29, Amended 7, Repealed 0.
Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 2, Amended 7, Repealed 0.
Date Adopted: September 15, 2016.
(a) "Biomass" means nonfossilized and biodegradable organic material originating from plants, animals, or microorganisms, including products, by-products, residues and waste from agriculture, forestry, and related industries as well as the nonfossilized and biodegradable organic fractions of industrial and municipal wastes, including gases and liquids recovered from the decomposition of nonfossilized and biodegradable organic material.
(b) "Carbon dioxide equivalent" or "CO2e" means a metric measure used to compare the emissions from various greenhouse gases based upon their global warming potential.
(c) "Department of licensing" or "DOL" means the Washington state department of licensing.
(d) "Director" means the director of the department of ecology.
(e) "Ecology" means the Washington state department of ecology.
(f) "Facility" unless otherwise specified in any subpart of 40 C.F.R. Part 98 as adopted by ((January 1, 2015)) September 1, 2016, means any physical property, plant, building, structure, source, or stationary equipment located on one or more contiguous or adjacent properties in actual physical contact or separated solely by a public roadway or other public right of way and under common ownership or common control, that emits or may emit any greenhouse gas. Operators of military installations may classify such installations as more than a single facility based on distinct and independent functional groupings within contiguous military properties. All source categories in WAC 173-441-120 are considered facilities even if the source category name includes the word "supplier."
(g) "Greenhouse gas," "greenhouse gases," "GHG," and "GHGs" includes carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride. Beginning on January 1, 2012, "greenhouse gas" also includes any other gas or gases designated by ecology by rule in Table A-1 in WAC 173-441-040.
(i) "Product data" means data related to a facility's production that is part of the annual GHG report.
(B) A distributor of aircraft fuel, as the term is defined in RCW 82.42.010.
(ii) Any use of the term "supplier" in a source category in WAC 173-441-120 or incorporated from 40 C.F.R. Part 98, as adopted by September 1, 2016, is not a "supplier" under this definition. Those uses are instead types of "facilities."
(2) Definitions specific to suppliers. Suppliers must use the definitions found in the following ((regulations)) statutes unless the definition is in conflict with a definition found in subsection (1) of this section. These definitions do not apply to facilities.
(3) Definitions from 40 C.F.R. Part 98. For those terms not listed in subsection (1) or (2) of this section, the definitions found in 40 C.F.R. § 98.6 or a subpart as adopted in WAC 173-441-120, as adopted by ((January 1, 2015)) September 1, 2016, are adopted by reference as modified in WAC 173-441-120(2).
(4) Definitions from chapter 173-400 WAC. If no definition is provided in subsections (1) through (3) in this section, use the definition found in chapter 173-400 WAC.
WAC 173-441-050 General monitoring, reporting, recordkeeping and verification requirements.
Persons subject to the requirements of this chapter must submit GHG reports to ecology, as specified in this section. Every metric ton of CO2e emitted by a facility or supplier required to report under this chapter and covered under any applicable source category listed in WAC 173-441-120 or 173-441-130 must be included in the report.
(1) General. Follow the procedures for emission calculation, monitoring, quality assurance, missing data, recordkeeping, and reporting that are specified in each relevant section of this chapter.
(i) A person required to report GHG emissions to the United States Environmental Protection Agency under 40 C.F.R. Part 98 must submit the report required under this chapter to ecology no later than March 31st of each calendar year for GHG emissions in the previous calendar year.
(ii) A person not required to report GHG emissions to the United States Environmental Protection Agency under 40 C.F.R. Part 98 must submit the report required under this chapter to ecology no later than October 31st of each calendar year for GHG emissions in the previous calendar year.
(iii) Unless otherwise stated, if the final day of any time period falls on a weekend or a state holiday, the time period shall be extended to the next business day.
(i) For an existing facility or supplier that began operation before January 1, 2012, report emissions for calendar year 2012 and each subsequent calendar year.
(ii) For a new facility or supplier that begins operation on or after January 1, 2012, and becomes subject to the rule in the year that it becomes operational, report emissions beginning with the first operating month and ending on December 31st of that year. Each subsequent annual report must cover emissions for the calendar year, beginning on January 1st and ending on December 31st.
(iii) For any facility or supplier that becomes subject to this rule because of a physical or operational change that is made after January 1, 2012, report emissions for the first calendar year in which the change occurs.
(A) Facilities begin reporting with the first month of the change and ending on December 31st of that year. For a facility that becomes subject to this rule solely because of an increase in hours of operation or level of production, the first month of the change is the month in which the increased hours of operation or level of production, if maintained for the remainder of the year, would cause the facility or supplier to exceed the applicable threshold.
(B) Suppliers begin reporting January 1st and ending on December 31st the year of the change.
(C) For both facilities and suppliers, each subsequent annual report must cover emissions for the calendar year, beginning on January 1st and ending on December 31st.
(a) Facility name or supplier name (as appropriate), facility or supplier ID number, and physical street address of the facility or supplier, including the city, state, and zip code. If the facility does not have a physical street address, then the facility must provide the latitude and longitude representing the geographic centroid or center point of facility operations in decimal degree format. This must be provided in a comma-delimited "latitude, longitude" coordinate pair reported in decimal degrees to at least four digits to the right of the decimal point.
(b) Year and months covered by the report.
(i) Annual emissions (including biogenic CO2) aggregated for all GHGs from all applicable source categories in WAC 173-441-120 and expressed in metric tons of CO2e calculated using Equation A-1 of WAC 173-441-030 (1)(b)(iii).
(ii) Annual emissions of biogenic CO2 aggregated for all applicable source categories in WAC 173-441-120, expressed in metric tons.
(iii) Annual emissions from each applicable source category in WAC 173-441-120, expressed in metric tons of each applicable GHG listed in subsections (3)(d)(iii)(A) through (F) of this section.
(B) CO2 (including biogenic CO2).
(F) For electronics manufacturing each fluorinated heat transfer fluid that is not also a fluorinated GHG as specified under WAC 173-441-040.
(iv) Emissions and other data for individual units, processes, activities, and operations as specified in the "data reporting requirements" section of each applicable source category referenced in WAC 173-441-120.
(vi) When applying subsection (3)(d)(i) of this section to fluorinated GHGs and fluorinated heat transfer fluids, calculate and report CO2e for only those fluorinated GHGs and fluorinated heat transfer fluids listed in WAC 173-441-040.
(vii) For reporting year 2014 and thereafter, you must enter into verification software specified by the director the data specified in the verification software records provision in each applicable recordkeeping section. For each data element entered into the verification software, if the software produces a warning message for the data value and you elect not to revise the data value, you may provide an explanation in the verification software of why the data value is not being revised. Whenever the use of verification software is required or voluntarily used, the file generated by the verification software must be submitted with the facility's annual GHG report.
(i) Annual emissions of CO2, expressed in metric tons of CO2, as required in subsections (3)(e)(i)(A) and (B) of this section that would be emitted from the complete combustion or oxidation of the fuels reported to DOL as sold in Washington state during the calendar year.
(B) Aggregate CO2 (including nonbiogenic and biogenic CO2).
(ii) All contact information reported to DOL not included in (a) of this subsection.
(f) A written explanation, as required under subsection (4) of this section, if you change emission calculation methodologies during the reporting period.
(g) Each data element for which a missing data procedure was used according to the procedures of an applicable subpart referenced in WAC 173-441-120 and the total number of hours in the year that a missing data procedure was used for each data element.
(h) A signed and dated certification statement provided by the designated representative of the owner or operator, according to the requirements of WAC 173-441-060 (5)(a).
(i) NAICS code(s) that apply to the facility or supplier.
(i) Primary NAICS code. Report the NAICS code that most accurately describes the facility or supplier's primary product/activity/service. The primary product/activity/service is the principal source of revenue for the facility or supplier. A facility or supplier that has two distinct products/activities/services providing comparable revenue may report a second primary NAICS code.
(ii) Additional NAICS code(s). Report all additional NAICS codes that describe all product(s)/activity(s)/service(s) at the facility or supplier that are not related to the principal source of revenue.
(i) If the facility or supplier is entirely owned by a single United States company that is not owned by another company, provide that company's legal name and physical address as the United States parent company and report one hundred percent ownership.
(ii) If the facility or supplier is entirely owned by a single United States company that is, itself, owned by another company (e.g., it is a division or subsidiary of a higher-level company), provide the legal name and physical address of the highest-level company in the ownership hierarchy as the United States parent company and report one hundred percent ownership.
(iii) If the facility or supplier is owned by more than one United States company (e.g., company A owns forty percent, company B owns thirty-five percent, and company C owns twenty-five percent), provide the legal names and physical addresses of all the highest-level companies with an ownership interest as the United States parent companies and report the percent ownership of each company.
(iv) If the facility or supplier is owned by a joint venture or a cooperative, the joint venture or cooperative is its own United States parent company. Provide the legal name and physical address of the joint venture or cooperative as the United States parent company, and report one hundred percent ownership by the joint venture or cooperative.
(v) If the facility or supplier is entirely owned by a foreign company, provide the legal name and physical address of the foreign company's highest-level company based in the United States as the United States parent company, and report one hundred percent ownership.
(vi) If the facility or supplier is partially owned by a foreign company and partially owned by one or more United States companies, provide the legal name and physical address of the foreign company's highest-level company based in the United States, along with the legal names and physical addresses of the other United States parent companies, and report the percent ownership of each of these companies.
(vii) If the facility or supplier is a federally owned facility, report "U.S. Government" and do not report physical address or percent ownership.
(k) An indication of whether the facility includes one or more plant sites that have been assigned a "plant code" by either the Department of Energy's Energy Information Administration or by the Environmental Protection Agency's (EPA) Clean Air Markets Division.
(4) Emission calculations. In preparing the GHG report, you must use the calculation methodologies specified in the relevant sections of this chapter. For each source category, you must use the same calculation methodology throughout a reporting period unless you provide a written explanation of why a change in methodology was required.
(5) Verification. To verify the completeness and accuracy of reported GHG emissions, ecology may review the certification statements described in subsection (3)(h) of this section and any other credible evidence, in conjunction with a comprehensive review of the GHG reports and periodic audits of selected reporting facilities. Nothing in this section prohibits ecology from using additional information to verify the completeness and accuracy of the reports.
(a) A list of all units, operations, processes, and activities for which GHG emissions were calculated.
(i) The GHG emissions calculations and methods used.
(c) The annual GHG reports.
(d) Missing data computations. For each missing data event, also retain a record of the cause of the event and the corrective actions taken to restore malfunctioning monitoring equipment.
(e) Owners or operators required to report under WAC 173-441-030(1) must keep a written GHG monitoring plan (monitoring plan, plan).
(C) Description of the procedures and methods that are used for quality assurance, maintenance, and repair of all continuous monitoring systems, flow meters, and other instrumentation used to provide data for the GHGs reported under this chapter.
(ii) The GHG monitoring plan may rely on references to existing corporate documents (e.g., standard operating procedures, quality assurance programs under appendix F to 40 C.F.R. Part 60 or appendix B to 40 C.F.R. Part 75, and other documents) provided that the elements required by (e)(i) of this subsection are easily recognizable.
(iii) The owner or operator must revise the GHG monitoring plan as needed to reflect changes in production processes, monitoring instrumentation, and quality assurance procedures; or to improve procedures for the maintenance and repair of monitoring systems to reduce the frequency of monitoring equipment downtime.
(iv) Upon request by ecology, the owner or operator must make all information that is collected in conformance with the GHG monitoring plan available for review during an audit. Electronic storage of the information in the plan is permissible, provided that the information can be made available in hard copy upon request during an audit.
(f) The results of all required certification and quality assurance tests of continuous monitoring systems, fuel flow meters, and other instrumentation used to provide data for the GHGs reported under this chapter.
(g) Maintenance records for all continuous monitoring systems, flow meters, and other instrumentation used to provide data for the GHGs reported under this chapter.
(h) Suppliers must retain any other data specified in WAC 173-441-130(5).
(7) Annual GHG report revisions.
(a) A person must submit a revised annual GHG report within forty-five days of discovering that an annual GHG report that the person previously submitted contains one or more substantive errors. The revised report must correct all substantive errors.
(b) Ecology may notify the person in writing that an annual GHG report previously submitted by the person contains one or more substantive errors. Such notification will identify each such substantive error. The person must, within forty-five days of receipt of the notification, either resubmit the report that, for each identified substantive error, corrects the identified substantive error (in accordance with the applicable requirements of this chapter) or provide information demonstrating that the previously submitted report does not contain the identified substantive error or that the identified error is not a substantive error.
(c) A substantive error is an error that impacts the quantity of GHG emissions reported or otherwise prevents the reported data from being validated or verified.
(d) Notwithstanding (a) and (b) of this subsection, upon request by a person, ecology may provide reasonable extensions of the forty-five day period for submission of the revised report or information under (a) and (b) of this subsection. If ecology receives a request for extension of the forty-five day period, by e-mail to ghgreporting@ecy.wa.gov, at least two business days prior to the expiration of the forty-five day period, and ecology does not respond to the request by the end of such period, the extension request is deemed to be automatically granted for thirty more days. During the automatic thirty-day extension, ecology will determine what extension, if any, beyond the automatic extension is reasonable and will provide any such additional extension.
(e) The owner or operator must retain documentation for three years to support any revision made to an annual GHG report.
(8) Calibration and accuracy requirements. The owner or operator of a facility that is subject to the requirements of this chapter must meet the applicable flow meter calibration and accuracy requirements of this subsection. The accuracy specifications in this subsection do not apply where either the use of company records (as defined in WAC 173-441-020(3)) or the use of "best available information" is specified in an applicable subsection of this chapter to quantify fuel usage and/or other parameters. Further, the provisions of this subsection do not apply to stationary fuel combustion units that use the methodologies in 40 C.F.R. Part 75 to calculate CO2 mass emissions. Suppliers subject to the requirements of this chapter must meet the calibration accuracy requirements in chapters 308-72, 308-77, and 308-78 WAC.
(a) Except as otherwise provided in (d) through (f) of this subsection, flow meters that measure liquid and gaseous fuel feed rates, process stream flow rates, or feedstock flow rates and provide data for the GHG emissions calculations, must be calibrated prior to January 1, 2012, using the procedures specified in this subsection when such calibration is specified in a relevant section of this chapter. Each of these flow meters must meet the applicable accuracy specification in (b) or (c) of this subsection. All other measurement devices (e.g., weighing devices) that are required by a relevant subsection of this chapter, and that are used to provide data for the GHG emissions calculations, must also be calibrated prior to January 1, 2012; however, the accuracy specifications in (b) and (c) of this subsection do not apply to these devices. Rather, each of these measurement devices must be calibrated to meet the accuracy requirement specified for the device in the applicable subsection of this chapter, or, in the absence of such accuracy requirement, the device must be calibrated to an accuracy within the appropriate error range for the specific measurement technology, based on an applicable operating standard including, but not limited to, manufacturer's specifications and industry standards. The procedures and methods used to quality-assure the data from each measurement device must be documented in the written monitoring plan, pursuant to subsection (6)(e)(i)(C) of this section.
(i) All flow meters and other measurement devices that are subject to the provisions of this subsection must be calibrated according to one of the following: You may use the manufacturer's recommended procedures; an appropriate industry consensus standard method; or a method specified in a relevant section of this chapter. The calibration method(s) used must be documented in the monitoring plan required under subsection (6)(e) of this section.
(ii) For facilities and suppliers that become subject to this chapter after January 1, 2012, all flow meters and other measurement devices (if any) that are required by the relevant subsection(s) of this chapter to provide data for the GHG emissions calculations must be installed no later than the date on which data collection is required to begin using the measurement device, and the initial calibration(s) required by this subsection (if any) must be performed no later than that date.
(A) You may use the frequency specified in each applicable subsection of this chapter.
(B) You may use the frequency recommended by the manufacturer or by an industry consensus standard practice, if no recalibration frequency is specified in an applicable subsection.
(b) Perform all flow meter calibration at measurement points that are representative of the normal operating range of the meter. Except for the orifice, nozzle, and venturi flow meters described in (c) of this subsection, calculate the calibration error at each measurement point using Equation A–2 of this subsection. The terms "R" and "A" in Equation A–2 must be expressed in consistent units of measure (e.g., gallons/minute, ft3/min). The calibration error at each measurement point must not exceed 5.0 percent of the reference value.
(c) For orifice, nozzle, and venturi flow meters, the initial quality assurance consists of in situ calibration of the differential pressure (delta-P), total pressure, and temperature transmitters.
(i) Calibrate each transmitter at a zero point and at least one upscale point. Fixed reference points, such as the freezing point of water, may be used for temperature transmitter calibrations. Calculate the calibration error of each transmitter at each measurement point, using Equation A–3 of this subsection. The terms "R," "A," and "FS" in Equation A–3 of this subsection must be in consistent units of measure (e.g., milliamperes, inches of water, psi, degrees). For each transmitter, the CE value at each measurement point must not exceed 2.0 percent of full-scale. Alternatively, the results are acceptable if the sum of the calculated CE values for the three transmitters at each calibration level (i.e., at the zero level and at each upscale level) does not exceed 6.0 percent.
(A) You must demonstrate that measurements at the remote location(s) can, when appropriate correction factors are applied, reliably and accurately represent the actual temperature or total pressure at the flow meter under all expected ambient conditions.
(B) You must make all temperature and/or total pressure measurements in the demonstration described in (c)(ii)(A) of this subsection with calibrated gauges, sensors, transmitters, or other appropriate measurement devices. At a minimum, calibrate each of these devices to an accuracy within the appropriate error range for the specific measurement technology, according to one of the following: You may calibrate using a manufacturer's specification or an industry consensus standard.
(C) You must document the methods used for the demonstration described in (c)(ii)(A) of this subsection in the written GHG monitoring plan under subsection (6)(e)(i)(C) of this section. You must also include the data from the demonstration, the mathematical correlation(s) between the remote readings and actual flow meter conditions derived from the data, and any supporting engineering calculations in the GHG monitoring plan. You must maintain all of this information in a format suitable for auditing and inspection.
(D) You must use the mathematical correlation(s) derived from the demonstration described in (c)(ii)(A) of this subsection to convert the remote temperature or the total pressure readings, or both, to the actual temperature or total pressure at the flow meter, or both, on a daily basis. You must then use the actual temperature and total pressure values to correct the measured flow rates to standard conditions.
(E) You must periodically check the correlation(s) between the remote and actual readings (at least once a year), and make any necessary adjustments to the mathematical relationship(s).
(d) Fuel billing meters are exempted from the calibration requirements of this section and from the GHG monitoring plan and recordkeeping provisions of subsections (6)(e)(i)(C) and (g) of this section, provided that the fuel supplier and any unit combusting the fuel do not have any common owners and are not owned by subsidiaries or affiliates of the same company. Meters used exclusively to measure the flow rates of fuels that are used for unit startup are also exempted from the calibration requirements of this section.
(e) For a flow meter that has been previously calibrated in accordance with (a) of this subsection, an additional calibration is not required by the date specified in (a) of this subsection if, as of that date, the previous calibration is still active (i.e., the device is not yet due for recalibration because the time interval between successive calibrations has not elapsed). In this case, the deadline for the successive calibrations of the flow meter must be set according to one of the following: You may use either the manufacturer's recommended calibration schedule or you may use the industry consensus calibration schedule.
(f) For units and processes that operate continuously with infrequent outages, it may not be possible to meet the deadline established in (a) of this subsection for the initial calibration of a flow meter or other measurement device without disrupting normal process operation. In such cases, the owner or operator may postpone the initial calibration until the next scheduled maintenance outage. The best available information from company records may be used in the interim. The subsequent required recalibrations of the flow meters may be similarly postponed. Such postponements must be documented in the monitoring plan that is required under subsection (6)(e) of this section.
(g) If the results of an initial calibration or a recalibration fail to meet the required accuracy specification, data from the flow meter must be considered invalid, beginning with the hour of the failed calibration and continuing until a successful calibration is completed. You must follow the missing data provisions provided in the relevant missing data sections during the period of data invalidation.
(9) Measurement device installation. 40 C.F.R. § 98.3(j) and 40 C.F.R. § 98.3(d) as adopted by ((January 1, 2015)) September 1, 2016, are adopted by reference as modified in WAC 173-441-120(2).
WAC 173-441-080 Standardized methods and conversion factors incorporated by reference.
(1) The materials incorporated by reference by EPA in 40 C.F.R. § 98.7, as adopted by ((January 1, 2015)) September 1, 2016, are incorporated by reference in this chapter for use in the sections of this chapter that correspond to the sections of 40 C.F.R. Part 98 referenced here.
(2) Table A–2 of this section provides a conversion table for some of the common units of measure used in this chapter.
The owner or operator of a facility that exceeds the compliance threshold under WAC 173-442-030 or voluntarily participating under WAC 173-442-030(6) must have the facility's annual GHG reports verified by a third party as specified in this section.
(d) For the first year after no longer meeting the requirements of (a) through (c) of this subsection unless the operations of the facility are changed such that all applicable GHG emitting processes and operations listed in WAC 173-441-120 permanently cease to operate.
(2) Emissions subject to third-party verification. All covered GHG emissions under chapter 173-442 WAC are subject to the requirements of this section.
(a) Annual GHG reports must be consistent with the relevant requirements and methods in this chapter.
(b) The absolute value of any discrepancy, omission, or misreporting, or aggregation of the three, must be less than five percent of total reported covered emissions (metric tons of CO2e) or the verification will result in an adverse verification statement. This standard also separately applies to any covered product data in the annual GHG report.
(i) "Discrepancies" means any differences between the reported covered emissions or covered product data and the third-party verifier's review of covered emissions or covered product data for a data source or product data subject to this section.
(ii) "Omissions" means any covered emissions or covered product data the third-party verifier concludes must be part of the annual GHG report, but were not included by the reporting entity in the annual GHG report.
(iii) "Misreporting" means duplicate, incomplete or other covered emissions the third-party verifier concludes should, or should not, be part of the annual GHG report or duplicate or other product data the verifier concludes should not be part of the annual GHG report.
(iv) "Total reported covered emissions or covered product data" means the total annual reporting entity covered emissions or total reported covered product data for which the third-party verifier is conducting an assessment.
(v) There has not been a significant change in sources or emissions. A difference in emissions of greater than twenty-five percent relative to the preceding year's emissions is considered significant unless that change can be directly shown to result from a verifiable change in product data.
(i) Documentation identifying the facility reporting emissions and the scope of emissions verified in the report.
(ii) Documentation identifying the third-party verifier, including all relevant information about the third-party verifier in subsection (7)(a) of this section and the names, roles, and sector specific qualifications (if any) of all individuals working on the verification report.
(iii) Documentation demonstrating and certifying that the requirements of subsection (7)(b) and (c) of this section have been met.
(iv) A verification plan that details the data and methodologies used to verify the annual GHG report and schedule describing when the verification services occurred. This must include a sampling plan that describes how the third-party verifier prioritized which emissions to verify and a summary of the data checks used to determine the reliability of the annual GHG report. Full verification requires a more complete sampling of data and additional data checks than less intensive verification.
(v) Documentation of the third-party verifier's review of facility operations to identify applicable GHG emissions sources and product data. Any applicable GHG emissions sources or product data not included in the annual GHG report must be identified. The third-party verifier must also ensure that the reported current NAICS code(s) accurately represents the activities on-site.
(vi) Documentation of any corrections made to the annual GHG report.
(vii) Documentation supporting the third-party verifiers' findings evaluating if the annual GHG report is compliant with the requirements in subsection (3) of this section. This must include a log of any issues (if any) identified in the course of verification, their potential impact on the quality of the annual GHG report, and their resolution.
(viii) The individuals conducting the third-party verification must certify that the verification report is true, accurate, and complete to the best of their knowledge and belief.
(A) Confirm that all applicable emissions are included in the annual GHG report.
(B) Check that all sources specified in the annual GHG report are identified appropriately.
(C) Review and understand the data management systems used by the owners or operators to track, quantify, and report GHG emissions and, when applicable, product data and fuel transactions. The third-party verifier must evaluate the uncertainty and effectiveness of these systems.
(E) Make direct observations of equipment for data sources and equipment supplying data for sources determined to be high risk.
(F) Assess conformance with measurement accuracy, data capture, and missing data substitution requirements.
(G) Review financial transactions to confirm fuel, feedstock, and product data, and confirming the complete and accurate reporting of required data such as facility fuel suppliers, fuel quantities delivered, and if fuel was received directly from an interstate pipeline.
(c) Less intensive verification. A less intensive verification report must be in a format specified by ecology and meet the requirements of subsection (4)(b)(i) through (viii) of this section. Less intensive verification of an annual GHG report allows for less detailed data checks and document reviews of the annual GHG report based on the analysis and risk assessment in the most current sampling plan developed as part of the most current full verification.
(5) Annual GHG report corrections. Owners or operators subject to this section must correct errors in their annual GHG report.
(b) The owner or operator must fix all correctable errors that affect covered emissions, noncovered emissions, or covered product data in the submitted emissions data report, and submit a revised emissions data report to ecology. Failure to do so will result in an adverse verification statement.
(c) Failure to fix correctable errors that do not affect covered emissions, noncovered emissions, or covered product data represents a nonconformance with this chapter but does not, absent other errors, result in an adverse verification statement.
(d) The owner or operator must maintain documentation to support any revisions made to the initial emissions data report. Documentation for all emissions data report submittals must be retained by the reporting entity for ten years.
(6) Timing. The third-party verifier must submit a complete verification report to ecology for each year as required under subsection (1) of this section no later than one hundred fifty days after the report submission due date for the facility, specified in WAC 173-441-050(2) for GHG emissions occurring in the previous calendar year. Any corrections to the annual GHG report or verification report must be submitted to ecology no later than forty-five days after discovery of the error. Records must be retained following the requirements of WAC 173-441-050(6).
(i) Registering as a third-party verifier with ecology. Registration is required for both the verification organization and all individuals performing verification services for the verification organization.
(ii) Demonstrating to ecology's satisfaction that the third-party verifier has sufficient knowledge of the relevant methods and protocols in this chapter. Certification may be limited to certain types or sources of emissions.
(F) Other GHG verification standard approved by ecology.
(b) An owner or operator must not use the same third-party verifier (either organization or individuals) for a period of more than six consecutive years. The owner or operator must wait at least three years before using the previous third-party verifier to verify their annual GHG reports.
(ii) Any employee of the third-party verifier, or any employee of a related entity, or a subcontractor who is a member of the verification team has provided to the facility any services within the previous five years.
(iii) Any staff member of the third-party verifier provides any type of incentive to a facility to secure a verification services contract.
(c) Other forms of noncompliance with this chapter.
WAC 173-441-086 Assigned emissions level.
(d) Ecology determines the absolute value of any discrepancy, omission, or misreporting, or aggregation of the three, is at least five percent of total reported covered emissions (metric tons of CO2e). This standard also separately applies to any covered product data in the annual GHG report.
(i) "Discrepancies" means any differences between the reported covered emissions or covered product data and ecology's review of covered emissions or covered product data for a data source or product data.
(ii) "Omissions" means any covered emissions or covered product data ecology concludes must be part of the annual GHG report, but were not included by the reporting entity in the annual GHG report.
(iii) "Misreporting" means duplicate, incomplete or other covered emissions ecology concludes should, or should not, be part of the annual GHG report or duplicate or other product data ecology concludes should not be part of the annual GHG report.
(iv) "Total reported covered emissions or covered product data" means the total annual reporting entity covered emissions or total reported covered product data for which ecology is conducting an assessment.
(2) The assigned emissions level must be used when determining compliance with chapter 173-442 WAC.
(3) Ecology must use conservative assumptions when setting the assigned emissions level to avoid underestimating emissions in a compliance year or overestimating emissions in a baseline year.
(a) Within five working days of a written request by ecology, the third-party verifier (if applicable) must provide any available verification services information or correspondence related to the emissions data.
(b) Within five working days of a written request by ecology, the owner or operator of a facility must provide the data that is required to calculate GHG emissions for the facility according to the requirements of this chapter, the preliminary or final detailed verification report prepared by the third-party verifier (if applicable), and other information requested by ecology, including the operating days and hours of the facility during the data year. The owner or operator must also make available personnel who can assist ecology's determination of an assigned emissions level for the data year.
(4) Ecology may adjust the assigned emissions level if the owner or operator is able to obtain a positive verification statement for the annual GHG report at a later date.
WAC 173-441-090 Compliance and enforcement.
(1) Violations. Any violation of any requirement of this chapter must be a violation of chapter 70.94 RCW and subject to enforcement as provided in that chapter. A violation includes, but is not limited to, failure to report GHG emissions by the reporting deadline, failure to report accurately, failure to collect data needed to calculate GHG emissions, failure to continuously monitor and test as required, failure to retain records needed to verify the amount of GHG emissions, failure to calculate GHG emissions following the methodologies specified in this chapter, failure to have the annual GHG report third-party verified, and failure to pay the required reporting fee. Each day and each metric ton CO2e of emissions of a violation constitutes a separate violation.
(2) Enforcement responsibility. Ecology must enforce the requirements of this chapter unless ecology approves a local air authority's request to enforce the requirements for persons operating within the authority's jurisdiction.
(1) Fee determination. All persons required to report ((or voluntarily reporting)) under WAC 173-441-030(1) must pay a reporting fee for each year they submit a report to ecology. Ecology must establish reporting fees based on workload using the process outlined below. The fees must be sufficient to cover ecology's costs to administer the GHG emissions reporting program.
(2) Fee eligible activities. All costs of activities associated with administering this reporting program, as described in RCW 70.94.151(2), are fee eligible.
(a) Ecology must conduct a workload analysis projecting resource requirements for administering the reporting program, organized by categories of fee eligible activities, for the purpose of preparing the budget. Ecology must prepare the workload analysis for the two-year period corresponding to each biennium. The workload analysis must identify the fee eligible administrative activities related to the reporting program that it will perform during the biennium and must estimate the resources required to perform these activities.
(b) Ecology must prepare a budget for administering the reporting program for the two-year period corresponding to each biennium. Ecology must base the budget on the resource requirements identified in the workload analysis for the biennium and must take into account the reporting program account balance at the start of the biennium.
(a))) The reporting fee for an owner or operator of a facility required to report ((or voluntarily reporting)) under WAC 173-441-030(1) is calculated by the equal division of ((seventy-five percent of)) the budget amount by the total number of facilities ((reporting)) required to report GHG emissions under this chapter in a given calendar year. A person required to report ((or voluntarily reporting)) multiple facilities under WAC 173-441-030(1) must pay a fee for each facility reported.
(((b) The reporting fee for a supplier required to report or voluntarily reporting under WAC 173-441-030 is calculated by the equal division of twenty-five percent of the budget amount by the total number of suppliers reporting GHG emissions under this chapter in a given calendar year.
(5) Fee schedule. Ecology must issue annually a fee schedule reflecting the reporting fee to be paid per facility or supplier. Ecology must base the fee schedule on the budget and workload analysis described above and conducted each biennium. Ecology must publish the fee schedule for the following year on or before October 31st of each year.
(6) Fee payments. Fees specified in this section must be paid within sixty days of receipt of ecology's billing statement. All fees collected under this chapter must be made payable to the Washington department of ecology. A late fee surcharge of fifty dollars or ten percent of the fee, whichever is more, may be assessed for any fee received after ninety days past the due date for fee payment.
(7) Dedicated account. Ecology must deposit all reporting fees they collect in the air pollution control account.
WAC 173-441-120 Calculation methods incorporated by reference from 40 C.F.R. Part 98 for facilities.
Owners and operators of facilities that are subject to this chapter must follow the requirements of this chapter and all subparts of 40 C.F.R. Part 98 listed in Table 120-1 of this section. If a conflict exists between a provision in WAC 173-441-050(3) through 173-441-080 and any applicable provision of this section, the requirements of this section must take precedence.
All source categories in Table 120-1 are considered facilities even if the source category name includes the word "supplier."
In § 98.91, replace "To calculate total annual GHG emissions for comparison to the 25,000 metric ton CO2e per year emission threshold in paragraph § 98.2 (a)(2), follow the requirements of § 98.2(b), with one exception" with "To calculate GHG emissions for comparison to the emission threshold in WAC 173-441-030(1), follow the requirements of WAC 173-441-030 (1)(b), with one exception."
In § 98.121, replace "To calculate GHG emissions for comparison to the 25,000 metric ton CO2e per year emission threshold in § 98.2 (a)(2)" with "To calculate GHG emissions for comparison to the emission threshold in WAC 173-441-030(1)."
§ 98.231(a) should read: "You must report GHG emissions under this subpart if your facility contains petroleum and natural gas systems and the facility meets the requirements of WAC 173-441-030(1)."
§ 98.301 should read: "You must report GHG emissions under this subpart if your facility contains any electrical transmission and distribution equipment use process and the facility meets the requirements of WAC 173-441-030(1)." See subsection (2)(f) of this section.
CO2 from combustion of landfill gas must also be included in calculating emissions for reporting and determining if the reporting threshold is met.
CO2 from combustion of wastewater biogas must also be included in calculating emissions for reporting and determining if the reporting threshold is met.
See subsection (2)(e) of this section.
§ 98.380(b) should read: "An importer or exporter shall have the same meaning given in WAC 173-441-120 (2)(h)." § 98.381 should include: "Reporting of exports is voluntary."
§ 98.391 should read: "Any refiner or importer that meets the requirements of WAC 173-441-030(1) must report GHG emissions. Any exporter of petroleum products and natural gas liquids may report GHG emissions associated with exported petroleum products using the methods established in this subpart." See subsection (2)(h) of this section.
§ 98.401 should read: "Any supplier of natural gas and natural gas liquids that meets the requirements of WAC 173-441-030(1) must report GHG emissions."
§ 98.411 should include: "Reporting of exports is voluntary."
((Owners or operators are only required to calculate and report emissions specified in WAC 173-441-030 (1)(b)(iv).)) § 98.421 should read: "Any supplier of CO2 who meets the requirements of WAC 173-441-030(1) must report the mass of CO2 captured, extracted, or imported. The mass of CO2 exported may be reported using the methods established in this subpart."
§ 98.431 should read: "Any importer of fluorinated GHGs contained in pre-charged equipment or closed-cell foams who meets the requirements of WAC 173-441-030(1) must report each fluorinated GHG contained in the imported pre-charged equipment or closed-cell foams. Any exporter of fluorinated GHGs contained in pre-charged equipment or closed-cell foams may report GHG emissions associated with exported products using the methods established in this subpart."
§ 98.441(a) should read: "You must report GHG emissions under this subpart if any well or group of wells within your facility injects any amount of CO2 for long-term containment in subsurface geologic formations and the facility meets the requirements of WAC 173-441-030(1)."
§ 98.451 should read: "You must report GHG emissions under this subpart if your facility contains an electrical equipment manufacturing or refurbishing process and the facility meets the requirements of WAC 173-441-030(1)."
§ 98.471 should read: "(a) You must report GHG emissions under this subpart if your facility contains an injection of carbon dioxide process and the facility meets the requirements of WAC 173-441-030(1). For purposes of this subpart, any reference to CO2 emissions in WAC 173-441-030 means CO2 received."
Unless otherwise noted, all calculation methods are from 40 C.F.R. Part 98, as adopted by ((January 1, 2015)) September 1, 2016.
Modifications and exceptions in subsection (2) of this section and WAC 173-441-010 through 173-441-050(2) also apply.
Whenever the use of verification software is required or voluntarily used, the file generated by the verification software must be submitted with the facility's annual GHG report.
(a) Wherever the term "administrator" is used in the rules incorporated by reference in this chapter, the term "director" must be substituted.
(b) Wherever the term "EPA" is used in the rules incorporated by reference in this chapter, the term "ecology" must be substituted.
(c) Wherever the term "United States" is used in the rules incorporated by reference in this chapter, the term "Washington state" must be substituted.
(i) If Table 120-2 of this section lists the reference, then replace the reference with the corresponding reference to this chapter as specified in Table 120-2.
(ii) If the reference is to a subpart or subsection of a reference listed in Table 120-2 of this section, then replace the reference with the appropriate subsection of the corresponding reference to this chapter as specified in Table 120-2.
(iii) If the reference is to a subpart or paragraph of 40 C.F.R. Part 98 Subparts C through UU incorporated by reference in Table 120-1, then use the existing reference except as modified by this chapter.
(e) For manure management, use the following subsections instead of the corresponding subsections in 40 C.F.R. § 98.360 as adopted by ((January 1, 2015)) September 1, 2016.
(i) 40 C.F.R. § 98.360(a): This source category consists of livestock facilities with manure management systems.
(A) § 98.360 (a)(1) is not adopted by reference.
(B) § 98.360 (a)(2) is not adopted by reference.
(ii) 40 C.F.R. § 98.360(b): A manure management system (MMS) is a system that stabilizes and/or stores livestock manure, litter, or manure wastewater in one or more of the following system components: Uncovered anaerobic lagoons, liquid/slurry systems with and without crust covers (including, but not limited to, ponds and tanks), storage pits, digesters, solid manure storage, dry lots (including feedlots), high-rise houses for poultry production (poultry without litter), poultry production with litter, deep bedding systems for cattle and swine, manure composting, and aerobic treatment.
(iii) 40 C.F.R. § 98.360(c): This source category does not include system components at a livestock facility that are unrelated to the stabilization and/or storage of manure such as daily spread or pasture/range/paddock systems or land application activities or any method of manure utilization that is not listed in § 98.360(b) as modified in WAC 173-441-120 (2)(e)(ii).
(iv) 40 C.F.R. § 98.360(d): This source category does not include manure management activities located off-site from a livestock facility or off-site manure composting operations.
(v) 40 C.F.R. § 98.361: Livestock facilities must report GHG emissions under this subpart if the facility contains a manure management system as defined in 98.360(b) as modified in WAC 173-441-120 (2)(e)(ii), and meets the requirements of WAC 173-441-030(1).
(vi) 40 C.F.R. § 98.362 (b) and (c) are not adopted by reference.
(vii) 40 C.F.R. § 98.362(a), 40 C.F.R. § 98.363 through 40 C.F.R. § 98.368, Equations JJ-2 through JJ-15, and Tables JJ-2 through JJ-7 as adopted by ((January 1, 2015)) September 1, 2016, remain unchanged unless otherwise modified in this chapter.
(viii) CO2 from combustion of gas from manure management must also be included in calculating emissions for reporting and determining if the reporting threshold is met.
(iii) Prorate the total emissions of the electric power system based upon population in the respective service areas by state using the most recent U.S. Census data. Update the population factor each reporting year and include the data used to establish the population factor with your annual GHG report.
(i) If the reference in 40 C.F.R. Part 98 includes a specific version or date reference, then use the version or date as specified in 40 C.F.R. Part 98.
(ii) If the reference in 40 C.F.R. Part 98 does not include a specific version or date reference, then use the version of the referenced document as available on the date of adoption of this chapter.
(h) For suppliers of petroleum products or coal-based liquid fuels, use the following subsections instead of the corresponding subsections in 40 C.F.R. § 98.390 as adopted by September 1, 2016.
(i) 40 C.F.R. § 98.390: Definition of the source category.
This source category consists of petroleum refineries and importers and exporters of petroleum products and natural gas liquids as listed in Table MM-1 of this subpart.
(A) A petroleum refinery for the purpose of this subpart is any facility engaged in producing petroleum products through the distillation of crude oil.
(B) A refiner is the owner or operator of a petroleum refinery.
(C) Importer has the same meaning given in subsection (2)(h)(ii) of this section and includes any entity that imports petroleum products, natural gas liquids, or coal-based liquid fuels as listed in Table MM-1 of this subpart. Any blender or refiner of refined or semi-refined petroleum products shall be considered an importer if it otherwise satisfies the aforementioned definition.
(D) Exporter has the same meaning given in subsection (2)(h)(ii) of this section and includes any entity that exports petroleum products, natural gas liquids, or coal-based liquid fuels as listed in Table MM-1 of this subpart. Any blender or refiner of refined or semi-refined petroleum products shall be considered an exporter if it otherwise satisfies the aforementioned definition.
(A) Export means to transport a product from inside Washington state to persons outside Washington state, excluding any such transport on behalf of the United States military including foreign military sales under the Arms Export Control Act. The final destination of the product must occur outside of Washington state.
(B) Exporter means any person, company or organization of record that transfers for sale or for other benefit, products from Washington state to another state, country, or to an affiliate in another country, excluding any such transfers on behalf of the United States military or military purposes including foreign military sales under the Arms Export Control Act. The final destination of the product must occur outside of Washington state. An exporter is not the entity merely transporting the domestic products, rather an exporter is the entity deriving the principal benefit from the transaction.
(C) Import means, to land on, bring into, or introduce into, any place subject to the jurisdiction of Washington state.
(II) The importer of record.
(IV) The transferee, if the right to draw merchandise in a bonded warehouse has been transferred.
(iii) Each importer shall report all information at the state level.
(v) Exporters choosing to report emissions associated with exported products to ecology under these subparts and refineries and importers must report information for each product where emissions were calculated.
40 C.F.R. Part 98 or "part"
What are the general monitoring, reporting, recordkeeping and verification requirements of this part?
How is the report submitted?
What standardized methods are incorporated by reference into this part?
What are the compliance and enforcement provisions of this part?
(a) If the GHG emissions have calculation methods specified in Table 120-1 of this section, use the methods specified in Table 120-1.
(b) If the GHG emissions have calculation methods specified in WAC 173-441-130, use the methods specified in WAC 173-441-130.
(c) For all GHG emissions from facilities not covered in Table 120-1 of this section or persons supplying any product other than those listed in WAC 173-441-130, contact ecology for an appropriate calculation method no later than one hundred eighty days prior to the emissions report deadline established in WAC 173-441-050(2) or submit a petition for alternative calculation methods according to the requirements of WAC 173-441-140.
(4) Alternative calculation methods approved by petition. An owner or operator may petition ecology to use calculation methods other than those specified in Table 120-1 of this section to calculate its facility GHG emissions. Such alternative calculation methods must be approved by ecology prior to reporting and must meet the requirements of WAC 173-441-140.
WAC 173-441-130 Calculation methods for suppliers.
Suppliers of ((liquid)) motor vehicle fuel, special fuel, or aircraft fuel subject to the requirements of this chapter must calculate the CO2 emissions that would result from the complete combustion or oxidation of each fuel that is reported to DOL as sold in Washington state using the methods in this section.
(a) All taxed ((liquid)) motor vehicle fuel that the supplier is required to report to DOL as part of the supplier's filed periodic tax reports of motor vehicle fuel sales under chapter ((308-72 WAC)) 82.38 RCW.
(b) All taxed special fuel that the supplier is required to report to DOL as part of the supplier's filed periodic tax reports of special fuel sales under chapter ((308-77 WAC)) 82.38 RCW.
(c) All taxed and untaxed aircraft fuel supplied to end users that the supplier is required to report to DOL as part of the supplier's filed periodic tax reports of aircraft fuel under chapter ((308-78 WAC)) 82.42 RCW.
(2) Calculating CO2 emissions separately for each fuel type. CO2 emissions must be calculated separately for each applicable fuel type using Equation 130-1 of this section. Use Equation 130-2 of this section to separate each blended fuel into pure fuel types prior to calculating emissions using Equation 130-1.
Annual volume of fuel type "i" supplied by the supplier (gallons).
Fuel type-specific CO2 emission factor (metric tons CO2 per gallon) found in Table 130-1 of this section.
Annual volume of blended fuel "i" supplied by the supplier (gallons).
Percent volume of product "i" that is fuel typei.
(3) Calculating total CO2 emissions. A supplier must calculate total annual CO2 emissions from all fuels using Equation 130-3 of this section.
Annual CO2 emissions that would result from the complete combustion or oxidation of all fuels (metric tons).
Annual CO2 emissions that would result from the complete combustion or oxidation of each fuel type "i" (gallons).
(4) Monitoring and QA/QC requirements. Comply with all monitoring and QA/QC requirements under chapters 308-72, 308-77, and 308-78 WAC.
(a) For each fuel type listed in Table 130-1 of this section, the annual quantity of applicable fuel in gallons of pure fuel supplied in Washington state.
(b) The CO2 emissions in metric tons that would result from the complete combustion or oxidation of each fuel type for which subsection (5)(a) of this section requires records to be retained, calculated according to subsection (2) of this section.
(c) The sum of biogenic CO2 emissions that would result from the complete combustion oxidation of all supplied fuels, calculated according to subsection (3) of this section.
(d) The sum of nonbiogenic and biogenic CO2 emissions that would result from the complete combustion oxidation of all supplied fuels, calculated according to subsection (3) of this section.
(e) All records required under chapters 308-72, 308-77, and 308-78 WAC in the format required by DOL.
Contact ecology to obtain an emission factor for any applicable fuel type not listed in this table.
*In units of metric tons CO2 per scf. When using Equation 130-1 of this section, enter fuel in units of scf.
• Petroleum product producers and importers.
(a) "Actual emissions" means GHG emissions reported under chapter 173-441 WAC except for emissions exempted under WAC 173-442-040.
(b) "Allowance" means a limited tradable authorization to emit up to one metric ton of carbon dioxide equivalent that is issued or otherwise distributed by a GHG emission reduction program established by a jurisdiction other than the state of Washington. Offset credits from the same program are not considered allowances.
(c) "Baseline GHG emissions value" means a value defined by WAC 173-442-050.
(d) "Calendar year" means January 1 through December 31.
(e) "Carbon dioxide equivalent" or "CO2 equivalent" or "CO2e" means a metric measure used to compare the emissions from various GHGs based upon their global warming potential. Ecology uses the global warming potential values listed in WAC 173-441-040 to determine the CO2 equivalent of emissions.
(f) "Compliance obligation" means the value calculated using WAC 173-442-200(3).
(g) "Compliance period" means a consecutive three-year period beginning in 2017 (2017 through 2019), and continuing forward (2020 through 2022; 2023 through 2025; etc.).
(h) "Compliance report" means the report required by WAC 173-442-210.
(i) "Compliance threshold" means the emission levels in WAC 173-442-030(3).
(i) "Covered stationary source GHG emissions" means GHG emissions from source categories listed in WAC 173-441-120. This includes emissions voluntarily reported under chapter 173-441 WAC using methods established in WAC 173-441-120.
(ii) "Covered petroleum product producer or importer GHG emissions" means CO2 emissions that result from the complete combustion or oxidation of products covered under the Suppliers of Petroleum Products, 40 C.F.R. Part 98, Subpart MM, source category listed in WAC 173-441-120. This includes emissions voluntarily reported under chapter 173-441 WAC using methods established in WAC 173-441-120.
(B) Emissions voluntarily reported under chapter 173-441 WAC.
(iv) Exemptions are listed in WAC 173-442-040.
(iii) Natural gas distributor in Washington.
(D) Perform facility life extension projects.
(ii) Electric generating units are ineligible for this provision.
(W) 336413: Other aircraft parts and auxiliary equipment manufacturing.
(A) A covered party with covered GHG emissions averaging greater than or equal to 70,000 MT CO2e per year during calendar years 2012 through 2016 must notify ecology by January 1, 2017.
(B) All other covered parties must notify ecology by January 1 of the first year in their baseline period as established under WAC 173-442-050(4).
(n) "Emission reduction unit" or "ERU" is an accounting unit representing the emission reduction of one metric ton of CO2e. An emission reduction unit is composed of any GHG listed in WAC 173-441-040, or, for the purposes of using WAC 173-442-160 (6)(b), destroyed chlorofluorocarbons or hydrochlorofluorocarbons.
(o) "Emission reduction pathway" means the annual reduction requirement established in WAC 173-442-060 and 173-442-070.
(p) "Emission reduction requirement" means a covered party's limit in MT CO2e for a compliance period based on the sum of the GHG emission reduction pathways for that period.
(q) "Independent qualified organization" means an organization identified by the energy facility site evaluation council as meeting the requirements of RCW 80.70.050.
(r) "Renewable energy credit" means a tradable certificate of proof of an eligible renewable resource that is verified by the renewable energy credit tracking system identified in WAC 194-37-210(1) and which includes all of the nonpower attributes associated with that electricity as identified in RCW 19.285.030.
(s) "Reserve" means an account established by ecology to ensure consistency with an aggregate emission cap for the program and for purposes consistent with this chapter.
(t) "Vintage year" means the calendar year in which an ERU is first recorded, or, in the case of an allowance, the year designated as the vintage year for that allowance by the GHG emission reduction program supplying the allowance.
(2) Definitions from chapter 173-441 WAC. If subsection (1) of this section provides no definition, the definition found in chapter 173-441 WAC applies.
(3) Definitions from chapter 173-400 WAC. If subsections (1) and (2) of this section provide no definition, the definition found in chapter 173-400 WAC applies.
CO2e means carbon dioxide equivalent.
EITE means energy intensive and trade exposed.
ERU means an emission reduction unit.
MT CO2e means metric ton of carbon dioxide equivalent.
REC means Renewable Energy Credit.
(1) Emission reduction requirements apply to a covered party when their three calendar year rolling average, beginning with calendar year 2012, covered GHG emissions are greater than or equal to the compliance threshold in the corresponding compliance period in Table 1 of this section.
(2) Exception. Applicability to this chapter begins no earlier than 2020 for EITE covered parties and petroleum product importers.
(3) Compliance threshold. A covered party with covered GHG emissions that have a three calendar year rolling average, beginning with calendar year 2012, greater than or equal to the compliance threshold in Table 1 must comply with their compliance obligation under WAC 173-442-200.
The 100,000 MT CO2e/Year threshold is used for the three calendar year rolling average applicability determination beginning in 2012.
(i) Changes to this chapter.
(b) Compliance with the requirements in WAC 173-442-210(7).
(a) An entity with covered GHG emissions below the compliance threshold during a compliance period can choose to participate voluntarily in this chapter. A voluntary participant must comply with the requirements for a covered party except that a voluntary participant does not have a GHG emission reduction requirement.
(i) A voluntary party who elected to become a covered party by voluntarily participating in this chapter may decide later to return to exempt status.
(ii) For a voluntary party to opt-out of this chapter and for it to be effective, the voluntary party must complete all actions specified below.
(A) The actions must be completed and documentation submitted in a format specified by ecology.
(B) A voluntary covered party that wishes to opt-out of this program must apply to ecology by September 1 of the last year of a compliance period.
(B) Submit a final compliance report.
(iv) Importers and Exporters of Fluorinated Greenhouse Gases Contained in Pre-Charged Equipment or Closed-Cell Foams: Subpart QQ.
(d) Emissions from a coal-fired baseload electric generation facility in Washington that emitted more than one million tons of GHGs in any calendar year prior to 2008, as provided in RCW 80.80.040(3).
(viii) Asphalt and road oil.
(iii) The GHG emissions associated with exported petroleum products are voluntarily reported in compliance with chapter 173-441 WAC.
(b) Units or processes exempted in subsection (4) of this section.
(c) When a unit within a covered party's facility is subject to the Clean Power Plan, then only the GHG emissions from that unit(s) are covered under this subsection.
WAC 173-442-050 Baseline GHG emissions value for non-EITE covered parties.
(iv) Is a petroleum product importer. This only applies to covered GHG emissions associated with imported petroleum products.
(i) Reported GHG emissions data when the calculation methodology approved under chapter 173-441 WAC changes.
(ii) Updated annual GHG reports or an assigned emissions level under WAC 173-441-086.
(2) Data sources for setting a Category 1 baseline GHG emissions value. Ecology must use the following sources of data to set a Category 1 baseline GHG emissions value.
(b) An assigned emissions level established under WAC 173-441-086.
(c) Petroleum product producers and natural gas distributors must submit to ecology all emissions data submitted to EPA, or required to be retained by EPA, under 40 C.F.R. Part 98, Subparts MM and NN for calendar years 2012 through 2016. This submission to ecology must be complete by March 31, 2017, and consistent with the methods established in chapter 173-441 WAC.
(B) Ecology's estimate of the petroleum product producer's GHG emissions data associated with exported petroleum products during calendar years 2012 through 2016.
(3) Process to calculate a Category 1 baseline GHG emissions value.
(ii) At least three years of covered GHG emissions subject to (b) of this subsection.
(ii) The calendar year contains a period of curtailment.
(c) Ecology may adjust the baseline GHG emissions value of a natural gas distributor to account for increases or decreases in the natural gas distributor's covered GHG emissions due to changes related to other covered parties' covered GHG emissions as specified in WAC 173-442-040(3). Any adjustment to the baseline GHG emissions value should be designed to maintain a consistent aggregate GHG emission reduction pathway for both the natural gas distributor and the other covered party.
(4) Setting a Category 2 baseline GHG emissions value. Ecology must assign a baseline GHG emissions value based on the first three consecutive calendar years after 2012 with average covered GHG emissions during normal operations greater than or equal to 70,000 MT CO2e, or when requested by a voluntary participant. Ecology must use one of the following methods to set a Category 2 baseline GHG emissions value consistent with subsection (3)(a) of this section.
(ii) Ecology may adjust covered GHG emissions using existing reported GHG emissions data when the calculation methodology approved under chapter 173-441 WAC changes.
(ii) New or modified emissions unit: Use method 3.
(ii) The benchmarking process in subsection (5) of this section.
(a) Responsibilities for covered parties subject to subsection (4)(c) of this section.
(i) The covered party must provide requested emissions information to ecology within sixty working days of a request.
(iii) Application materials submitted to ecology for a permit action need only reference dates of the submittal and the office that received the information.
(iv) The covered party must provide access to personnel or hired consultants who can assist ecology in assigning the baseline GHG emissions value.
(i) Ecology must set the baseline GHG emissions value at an emissions rate equal to the ninety percent most efficient facility in all surveyed stationary sources using the benchmarking process in (b)(ii) of this subsection.
(A) Use data from similar or identical existing parties and sources.
(B) Determine the appropriate production or product measure for the benchmark.
(C) Use operating and emissions data from existing sources from calendar years 2012 through 2016. Beginning in January 1, 2017, use emissions data for the most recent three years of data.
(D) Calculate covered GHG emissions using methodologies in WAC 173-441-120.
(E) Estimate covered GHG emissions using best available information when a covered party fails to provide emissions data within sixty working days of a request.
(i) Information about the GHG emitting processes included in a notice of construction, prevention of significant deterioration, or nonattainment area new source review permit application.
(ii) Materials submitted to a nonecology permitting authority related to a permit application.
(iii) Other information necessary to calculate actual or projected emissions.
WAC 173-442-060 GHG emission reduction pathway.
Ecology must assign a GHG emission reduction pathway to all covered parties with baseline GHG emissions values greater than or equal to 70,000 MT CO2e, or when requested by a voluntary participant.
(1) For non-EITE covered parties, ecology assigns the GHG emission reduction pathway to the covered party based on their baseline GHG emissions value.
(a) The GHG emission reduction pathway for the first calendar year a covered party meets or exceeds the compliance threshold in WAC 173-442-030(3) is the baseline GHG emissions value for that covered party.
(b) Annual decrease subsequent to the first calendar year a covered party meets or exceeds the compliance threshold in WAC 173-442-030(3).
(i) The GHG emission reduction pathway decreases annually by an additional one and seven tenths of a percent (1.7%) of the covered party's baseline GHG emissions value.
(ii) The additional one and seven tenths of a percent (1.7%) adjustment to a GHG emission reduction pathway does not apply to any calendar year that includes curtailment recognized by ecology.
(iii) Beginning in calendar year 2036, the emission reduction pathway remains constant at the value calculated for calendar year 2035.
(b) The total reduction pathway for each compliance period.
(3) For EITE covered parties the GHG emission reduction pathway is determined per WAC 173-442-070.
WAC 173-442-070 GHG emission reduction pathway and emission reduction requirement for EITE covered parties.
Ecology must establish the GHG emission reduction pathway for each EITE covered party using the procedures in this section. A mass-based GHG emission reduction pathway under WAC 173-442-060(1) does not apply to EITE covered parties.
(1) Production data reporting requirements. Each EITE covered party must its report annual production data, as specified by ecology, concurrent with their annual GHG report under chapter 173-441 WAC. Production data must be reported for each calendar year in the baseline period and each calendar year with an emission reduction requirement.
(2) Determine the output-based baseline. Ecology must calculate the output-based baseline for each EITE covered party. The output-based baseline is calculated once for each EITE covered party and remains constant for all calendar years.
(a) Determine average GHG emissions and production data for the output-based baseline period.
(B) At least three full calendar years of covered GHG emissions reported under chapter 173-441 WAC during that period.
(ii) For all other EITE covered parties, use the EITE covered party's average emissions and average production data during the first three consecutive calendar years after 2012 of covered GHG emissions under normal operations greater than or equal to 70,000 MT CO2e per year reported under chapter 173-441 WAC.
(iii) The data used for (a)(i) and (ii) of this subsection will not include data for years that would meet the criteria in WAC 173-442-050 (3)(b).
(b) Divide average emissions by average production to get the output-based baseline.
(3) Determine the efficiency improvement rate. Ecology must calculate the efficiency improvement rate for each EITE covered party. The efficiency improvement rate is calculated once for each EITE covered party concurrently with the output-based baseline and remains constant for all calendar years.
(a) Ecology must calculate an efficiency intensity distribution for each sector with an EITE covered party that meets the requirements in WAC 173-442-030.
(II) Detailed enough to determine the efficiency intensity distribution.
(D) Ecology must use data from the same time period as the output-based baseline period whenever possible.
(ii) Ecology calculates the efficiency intensity distribution for a sector by using paired GHG emissions and production data to create a ranking of efficiencies for sample facilities in that sector. Alternately, existing benchmarking information is used as described in (a)(i)(C) of this subsection.
(b) Ecology must compare the output-based baseline for each EITE covered party to the efficiency intensity distribution for that EITE covered party's sector to determine the EITE covered party's efficiency improvement rate.
(i) If the EITE covered party's output-based baseline is less efficient than or equal to the twenty-fifth percentile value of the sector's efficiency intensity distribution, then ecology must set the EITE covered party's efficiency improvement rate at a level that would reduce emissions at a rate faster than required to meet the GHG emission reduction pathway that would have been required by WAC 173-442-060 (1)(b)(i). The efficiency improvement rate must not be more than one percent per year of the EITE covered party's baseline GHG emissions value faster than would have been required by WAC 173-442-060 (1)(b)(i).
(ii) If the EITE covered party's output-based baseline is more efficient than or equal to the seventy-fifth percentile value of the sector's efficiency intensity distribution, then ecology must set the EITE covered party's efficiency improvement rate at a level that would reduce emissions at a rate slower than required to meet the GHG emission reduction pathway that would have been required by WAC 173-442-060 (1)(b)(i). The efficiency improvement rate must not be less than one percent per year of the EITE covered party's baseline GHG emissions value slower than would have been required by WAC 173-442-060 (1)(b)(i).
(iii) If the EITE covered party's output-based baseline is between the twenty-fifth and seventy-fifth percentile values of the sector's efficiency intensity distribution, then ecology must set the EITE covered party's efficiency improvement rate at a level that would reduce emissions at a rate consistent with meeting the GHG emission reduction pathway that would have been required by WAC 173-442-060 (1)(b)(i).
(iv) If ecology determines an EITE covered party has not supplied sufficient information to complete this assessment, then the EITE covered party's efficiency improvement rate must be set at a level that would reduce emissions at a rate faster than required to meet the GHG emission reduction pathway that would have been required by WAC 173-442-060 (1)(b)(i). The efficiency improvement rate must not be more than one percent per year of the EITE covered party's baseline GHG emissions value faster than would have been required by WAC 173-442-060 (1)(b)(i).
(v) If ecology determines that there is not enough information to establish an efficiency intensity distribution for a sector, then EITE covered parties in that sector will be assigned an efficiency improvement rate at a level that would reduce emissions at a rate consistent with meeting the GHG emission reduction pathway that would have been required by WAC 173-442-060 (1)(b)(i).
(i) For the 2020 through 2022 compliance period: Use average production data from calendar years 2017 through 2019.
(ii) For EITE covered parties with a first compliance obligation after the 2020 through 2022 compliance period: Use average production data from the three calendar year period prior to their first compliance period with a compliance obligation.
(iii) For all other compliance periods, use average production data from the previous compliance period.
(b) The EITE covered party's GHG emission reduction pathway is calculated using Equation 1.
Yx = The number of calendar years the EITE covered party has been subject to WAC 173-442-030. The first calendar year is designated as calendar year number one.
(c) Any calendar year containing curtailment recognized by ecology does not count toward the total years in Yx.
(d) Beginning in calendar year 2036, Yx remains constant at the number of years determined for calendar year 2035.
WAC 173-442-100 Emission reduction units.
(1) A covered party may use ERUs to meet the compliance obligation in WAC 173-442-200.
(2) ERUs must originate from GHG emission reductions occurring within Washington unless derived from allowances under WAC 173-442-170.
(3) Mandatory retirement of ERUs for compliance.
(a) Ecology must retire an ERU applied to meet a compliance obligation.
(b) The use of an ERU for compliance, as recorded in a compliance report required by WAC 173-442-200 or the registry established in WAC 173-442-230, permanently and irrevocably disqualifies any further use of the unit.
WAC 173-442-110 Generating emission reduction units.
(1) Actual emissions below GHG emission reduction requirement. Covered parties (including voluntary parties) may generate an ERU when actual covered GHG emissions, as reported per the requirements of chapter 173-441 WAC for a compliance period, are below the emission reduction requirements for that compliance period. The covered party may generate ERUs in an amount equal to the difference between the reported covered GHG emissions and the higher GHG emission reduction requirement.
(2) Emission reduction projects, programs, or activities. A project, program, or activity allowed under WAC 173-442-160 may generate ERUs consistent with WAC 173-442-150.
(3) GHG emission markets external to the state of Washington. A covered party may generate ERUs consistent with WAC 173-442-170.
WAC 173-442-120 Recording emission reduction units.
(1) ERUs exist solely as an accounting mechanism and are not property rights.
(2) Each covered party must keep a record for ten years in a manner prescribed by ecology of any ERUs generated or obtained.
(3) Any ERU generated must be recorded with its vintage year in the registry established in WAC 173-442-230 and the compliance report of the covered party.
(4) A covered party must report ERUs through the compliance report and accounts maintained in the registry established in WAC 173-442-230.
WAC 173-442-130 Banking emission reduction units.
(1) A covered party may bank an ERU for ten years.
(2) Banked ERUs are recorded in the registry established in WAC 173-442-230.
(3) First in, first out provision.
(a) The covered party must withdraw an ERU with the oldest vintage year first.
(b) Within the same vintage year the covered party has the option to select which ERUs to withdraw.
WAC 173-442-140 Exchanging emission reduction units.
Covered parties may transfer ERUs under the conditions in this section.
(2) Tracking emission reduction units. The covered party must document each transfer of an ERU in the compliance report in a format specified by ecology and in the registry established in WAC 173-442-230.
(b) Only covered parties, ecology, and voluntary participants may hold ERUs.
WAC 173-442-150 Criteria for activities and programs generating emission reduction units.
(e) Additional to existing law or rule, and any supplementary requirements necessary to meet the conditions of WAC 173-442-160 (2)(a).
(i) If an emission reduction is required by another statute, rule, or other legal requirement, the emission reduction cannot be used in this program.
(A) The EPA Clean Power Plan (40 C.F.R. Part 60, Subpart UUUU) consistent with WAC 173-442-040(4).
(D) Commute trip reduction programs as established through RCW 70.94.527 per WAC 173-442-160(3).
(2) RCW 70.235.030(3) establishes that CO2 emissions from the industrial combustion of biomass in the form of fuel wood, wood waste, wood by-products, and wood residuals are carbon neutral and result in zero CO2 emissions.
WAC 173-442-160 Activities and programs recognized as generating emission reduction units.
• Ecology approved emission reductions.
(a) If a protocol is listed from an external registry program, then the emission reduction must be registered on that registry along with the information necessary to establish eligibility to meet the criteria of this chapter.
(b) Where a process is listed instead of a registry-specific protocol, all steps of the process must be followed in a manner approved by ecology and any other departments referenced in the applicable process.
(c) Emission reduction projects implemented consistent with this section and that are physically located at a stationary source facility must not be project types included in the methodologies used in the emission calculations that generate the covered GHG emissions for the covered party with the facility reporting as per chapter 173-441 WAC.
(d) Third-party verification must occur as per WAC 173-442-220.
(ii) Methodology for GHG Emission Reductions through Truck Stop Electrification from the American Carbon Registry (using a version approved by that program no later than September 1, 2016).
(i) Organizations that participate in commute trip reduction programs may generate ERUs if they provide data and surveys consistent with the requirements of their applicable program and those of the department of transportation.
(ii) Generation of ERUs will be derived from reductions in the drive-alone trip rate at workplaces participating in commute trip reduction programs, as tracked and reported by the department of transportation.
(iii) The drive-alone trip rate will be measured relative to a baseline maintained by the department of transportation consisting of the average of the 2013/2014 and 2015/2016 commute trip reduction program survey years. An imputed baseline will be used for organizations that enter commute trip reduction programs in years after 2016.
(iv) GHG emission reductions associated with reductions in the drive-alone trip rate will be calculated by the department of transportation.
(v) Ecology will assign the appropriate quantity of ERUs.
(4) Combined heat and power activities. Combined heat and power projects demonstrating GHG emission reductions through a methodology submitted to and approved by ecology.
(5) Energy measures. Energy efficiency measures and demand side management of electricity and natural gas consumption in Washington, and alternative energy generation technologies located in Washington may generate ERUs.
(a) The acquisition of conservation and energy efficiency in excess of the targets required by the Energy Independence Act per RCW 19.285.040 and any additional acquisition targets established by the utilities and transportation commission by rule or order may generate ERUs.
(i) Eligible conservation and energy efficiency must be reported to the department of commerce or the utilities and transportation commission in accordance with its rules or orders, and consistent with RCW 19.285.070.
(ii) Utilities that are not qualifying utilities, as defined in RCW 19.285.030, may voluntarily submit data on their conservation and energy efficiency acquisitions to the department of commerce in accordance with its rules and in a manner consistent with RCW 19.285.070 to generate ERUs under this section.
(iii) Only conservation and energy efficiency that exceeds the targets established through RCW 19.285.040, targets for natural gas conservation put in place through order, and any additional targets established by the utilities and transportation commission by rule or order is eligible to generate ERUs.
(b) The acquisition and subsequent retirement of renewable energy credits that are not retired for purposes of complying with the Energy Independence Act or other regulatory or voluntary programs may generate ERUs.
(i) Renewable resources eligible for generating ERUs include eligible renewable resources as defined by RCW 19.285.030(12) except that only those eligible renewable resources physically located in Washington may generate ERUs.
(A) Each renewable energy credit retired must have the appropriate notation within the tracking system that the renewable resource is eligible for Washington compliance for the Energy Independence Act or this rule.
(B) Renewable energy credits must be retired consistent with the operating rules of the renewable energy credit tracking system and in the proper retirement account within the tracking system as designated by the Washington renewable energy credit tracking system administrator.
(C) Any renewable energy credit used for the purposes of generating ERUs must not have been retired or otherwise used for any other program or requirements.
(D) The renewable energy credit tracking system account holder must establish the department of commerce as a state program administrator with access to the account holder's compliance reports.
(A) The marginal resource for which an electrical conservation project or the renewable energy generation is avoiding is a new combined-cycle natural gas thermal electric generation turbine sited in Washington.
(B) The average rate of GHG emissions for such a turbine is nine hundred seventy pounds per megawatt-hour, as per the determination made in WAC 194-26-020.
(C) That under these assumptions one ERU may be generated by retiring two and one-quarter renewable energy credits or for exceeding a conservation target by two and one-quarter megawatt-hours.
(ii) For natural gas energy efficiency and conservation the applicable GHG emissions are to be derived from the appropriate conversion process from therms (100,000 British Thermal Units) to CO2e as directed in WAC 173-441-120.
(d) Ecology will allocate the appropriate quantity of ERUs as determined in this subsection.
(a) Methodology for Quantifying Nitrous Oxide (N2O) Emissions Reductions from Reduced Use of Nitrogen Fertilizer on Agricultural Crops from the American Carbon Registry (using a version approved by that program no later than September 1, 2016).
(b) The enteric methane, manure methane, and nitrous oxide from fertilizer use modules from the Grazing Land and Livestock Management methodology from the American Carbon Registry (using a version approved by that program no later than September 1, 2016). The biotic sequestration and fossil fuel modules of this protocol may not generate ERUs.
(c) The U.S. Livestock Project protocol from the Climate Action Reserve (using a version approved by that program no later than September 1, 2016).
(c) Organic Waste Digestion Project protocol from the Climate Action Reserve (using a version approved by that program no later than September 1, 2016).
(d) Landfill Methane Collection and Combustion methodology from the American Carbon Registry (using a version approved by that pro-gram no later than September 1, 2016).
(d) Emission Reduction Measurement and Monitoring Methodology for the Transition to Advanced Formulation Blowing Agents in Foam Manufacturing and Use from the American Carbon Registry (using a version approved by that program no later than September 1, 2016).
(e) Nitric Acid Production Project Protocol from the Climate Action Reserve (using a version approved by that program no later than September 1, 2016).
(9) Emission reductions derived from one of the activity categories in subsections (3) through (8) of this section and that are from an independent qualified organization recognized by the energy facility site evaluation council under RCW 80.70.050.
(10) Emission reductions derived from one of the activity categories in subsections (3) through (8) of this section through a methodology approved by ecology.
WAC 173-442-170 Limitations on the use of allowances.
(c) The allowances are derived from methodologies congruent with chapter 173-441 WAC.
(2) A covered party may demonstrate compliance through the acquisition and use of allowances to generate ERUs based on the limitations in this subsection.
(b) A quantity of allowances intended for use consistent with (a) of this subsection must be divided so that the proportion of those allowances from a single vintage year does not exceed the percentages in Table 4. The originating GHG emission reduction program assigns the vintage year for each allowance.
(3) The covered party must document that an allowance used to generate an ERU has been invalidated from use or placed into a permanent holding account in its originating GHG emission reduction program.
(1) A covered party must demonstrate compliance with their compliance obligation at the end of each applicable compliance period.
(2) The compliance period is the three-year period specified in WAC 173-442-020 and 173-442-030(3) (Table 1).
(3) Calculation of the compliance obligation and ERU balance.
If difference ˃ 1, then must acquire ERUs for each metric ton of CO2e that exceeds the compliance obligation.
If difference < 0, then have excess ERUs for each metric ton of CO2e below the compliance obligation.
(c) A combination of (a) and (b) of this subsection that achieves a level meeting the compliance obligation.
(5) A covered party must document compliance consistent with the requirements in WAC 173-442-210.
(a) By January 30 of the second year of a covered party's first compliance period, ecology will issue a regulatory order establishing emission reduction requirements for each covered party consistent with their emission reduction pathway.
(b) The emission reduction requirement established for the compliance period ending in 2035 must continue to be met for all following compliance periods.
(c) Ecology must assign GHG emission reduction requirements to each covered party with a baseline GHG emissions value greater than or equal to 70,000 MT CO2e per year, or when requested by a voluntary party.
(ii) Emission reduction requirements for each compliance period consistent with WAC 173-442-060 or 173-442-070; and this section.
(c) By the deadline in WAC 173-442-250.
(2) The covered party is solely responsible for ensuring that ecology receives its compliance report by the deadlines.
(a) Record of ERUs generated.
(A) The source of each ERU(s).
(B) The source of the emissions data or computational method used to generate each ERU.
(C) The vintage year of each ERU.
(ii) The record may cover a distinct ERU or a block of ERUs from an identical source.
(i) Vintage year of the ERU.
(ii) Origin of the ERU.
(i) The origin of any ERUs acquired.
(ii) The destination of any ERUs transferred.
(iii) The names and contact information of any entities who facilitated, brokered, or provided liaison services between the covered parties making the transfer.
(iv) The vintage year of the ERUs.
(d) Documentation that a third party verified the compliance report.
(e) Signature of the chapter 173-441 WAC covered party's designated representative or alternate designated representative.
(f) Statement attesting to the report's accuracy and validity.
(4) A covered party must retain records for ten years.
(a) Covered parties must correct errors in their compliance report no later than forty-five days after discovery of an error.
(c) A covered party may request to have a submitted compliance report for the most recent compliance period reopened for corrective edits and resubmittal.
(d) The covered party must provide justification to ecology for the report correction(s) and indicate the specific corrections they will make to the report.
(e) Each submitted request is subject to ecology review and approval. Permissions to correct a report does not preclude enforcement based on misreporting.
(6) Ecology denial of compliance report.
(a) Ecology will determine if the compliance report contains errors that impact the verification status of the compliance report.
(iii) Other forms of noncompliance with this chapter.
(7) Requirements when covered GHG emissions fall below the compliance threshold.
(ii) The covered party notified ecology of its intent to discontinue the report by the compliance report deadline in WAC 173-442-250.
(iii) Covered parties must continue to submit annual GHG reports required by chapter 173-441 WAC.
(C) Notify ecology of its intent to discontinue the compliance report by the compliance report deadline in WAC 173-442-250.
(iii) The covered party must resume submitting a compliance report for any future calendar year when GHG-emitting processes or operations resume operation.
(c) A covered party must resume submitting a compliance report when total covered GHG emissions exceed 50,000 MT CO2e/year.
(a) Ecology is not responsible for failure of electronically submitted reports.
(b) Ecology must deem a report submitted electronically to be validly signed when accompanied by a digital signature that meets the requirements designated by ecology.
(c) Subject to verification by a certified verifier using processes and procedures consistent with the International Organization for Standardization 14064-3:2006 protocol (as of May 1, 2016).
(2) The third-party verifier must certify that compliance reports are consistent with the requirements in this chapter.
(iv) Certify that the verification report is true, accurate, and complete to the best of their knowledge.
(c) A verification plan that details methodologies used to verify the compliance report and schedule describing when the verification occurred.
(d) The third-party verifier's review of the covered party's accounting of emissions, emissions reductions, ERUs, and all information relevant to demonstrating compliance with the applicable emission standards.
(e) Corrections made to the compliance report.
(f) The third-party verifier's evaluation of the compliance report. This must include a log of issues identified in the course of verification, their potential impact on the quality of the compliance report, and their resolution.
(g) Documentation of required on-site visit. Information about the required on-site visit, including date(s) and a description of the verification services conducted on-site.
(A) Check that all sources specified in the compliance report are identified appropriately.
(B) Confirm that all relevant emissions, emission reductions, and accounting for ERUs are included in the compliance report.
(C) Review the data management systems used by the covered party to track, quantify, and report GHG emissions and, when applicable, product data and fuel transactions. The third-party verifier must evaluate the uncertainty and effectiveness of these systems.
(II) Complete and accurate reporting of required data, such as facility fuel suppliers, fuel quantities delivered, and if fuel was received directly from an interstate pipeline.
(ii) The verifier must document the findings from the visit and the dates of the visit.
(h) For petroleum product producers or importers, or natural gas distributors, the third-party verifier must visit the headquarters or other location of central data management.
(4) Verification deadline. The third-party verifier must submit a complete verification report to ecology by the compliance report deadline in WAC 173-442-250.
(5) Corrections. The covered party must submit corrections to the verification report to ecology no later than forty-five days after discovery of the error.
(i) Demonstrating to ecology's satisfaction that the third-party verifier has sufficient knowledge of the relevant methods and protocols in this chapter. Ecology may limit certification to certain types or sources of emissions.
(F) Other GHG verification program approved by ecology.
(b) A covered party must not use the same third-party verifier (either organization or individuals) for a period of more than six consecutive years. The covered party must wait at least three years before using the previous third-party verifier to verify their compliance reports.
(ii) Any employee of the third-party verifier, or any employee of a related entity, or a subcontractor who is a member of the verification team has provided to the covered party any services within the previous five years.
(iii) Any staff member of the third-party verifier provides any type of incentive to a covered party to secure a verification services contract.
(1) Ecology will develop an electronic data base to ensure a secure and reliable method to track ERUs.
(c) Interface with other carbon registries or tracking systems, as possible.
Ecology will establish an account of reserve ERUs for the purposes described in this section.
(1) Contributions to the reserve.
(A) If the EITE covered party's RAx is greater than zero, then the difference in MT CO2e of GHG emissions results in ERUs allocated to the reserve.
(B) If the EITE covered party's RAx is less than zero, then the difference in MT CO2e of GHG emissions results in ERUs retired from the reserve.
(C) Calculate MT CO2e of GHG emissions of ERUs allocated to or retired from the reserve using Equation 2.
(iii) Any calendar year containing curtailment recognized by Ecology does not count toward the total years in Yx.
(iv) Beginning in calendar year 2036, Yx remains constant at the number of years determined for calendar year 2035.
(v) ERUs generated as a result of facility curtailment.
(b) Ecology must transfer into the reserve the ERUs specified in (a)(v) of this subsection within one hundred twenty days after each applicable compliance period (WAC 173-442-200).
(c) Ecology will not accept into the reserve retired or expired ERUs.
(a) For covered GHG emissions from covered parties that do not have a GHG baseline emissions value established through WAC 173-442-050 (1)(a), or existing stationary sources that expand, or physically modify their operations.
(b) To address conditions that may arise when ERUs result from reduced GHG emissions from programs or activities that occur in sectors contributing to covered GHG emissions.
(c) To promote the viability of voluntary renewable energy programs in Washington.
(i) Ecology, in conjunction with the departments of commerce and the utilities and transportation commission, will engage stakeholders and renewable energy market experts to estimate demand for voluntary renewable energy programs affecting Washington customers and renewable energy producers.
(ii) Ecology may allocate a portion of the reserve ERUs for retirement as voluntary renewable energy purchases consistent with the estimate in (c)(i) of this subsection, after taking into account the availability of reserve ERUs.
(iii) Ecology will determine the number of reserve ERUs retired for each representative unit of renewable energy purchased on the voluntary market.
(a) A curtailed stationary source that restarts operations will be assigned fifty percent of the ERUs that were allocated to the reserve during the calendar year prior to restart as per subsection (1)(a)(ii) of this section.
(b) The Environmental Justice Advisory Committee.
(i) Ecology will convene an Environmental Justice Advisory Committee comprised of persons who are well-informed on the principles of environmental justice and who represent communities of color, low-income communities, and environmental justice interests from geographically diverse areas of the state.
(ii) Ecology will determine the amount of reserve ERUs available to the committee at the end of each applicable compliance period.
(iii) The purpose of the committee is to award reserve ERUs to covered parties that implement, fund, or otherwise facilitate emission reduction projects, programs or activities consistent with the priorities and environmental justice criteria determined by the committee.
(iv) Subject to approval by ecology, the committee may award reserve ERUs on a one-for-one or a two-for-one matching basis with ERUs from emission reduction projects, programs or activities that are consistent with WAC 173-442-160.
(v) The committee does not have to allocate its entire allotment of reserve ERUs.
(vi) Unallocated reserve ERUs return to the reserve.
(a) Startup of curtailed facilities consistent with subsection (3)(a) of this section.
(b) Covered parties entering the program that do not have a GHG baseline emissions value established through WAC 173-442-050 (1)(a), or existing stationary sources that expand, or physically modify their operations consistent with subsection (2)(a) of this section.
(c) Changes in production consistent with subsection (1)(a)(i)(B)(III) of this section.
(d) Harmonizing ERU generation with reduced GHG emissions consistent with subsection (2)(b) of this section.
(e) Projects or programs with positive environmental justice impacts consistent with subsection (3)(b) of this section.
(f) Supporting voluntary green power renewable programs consistent with subsection (2)(c) of this section.
WAC 173-442-250 Compliance report and verification due date.
(1) Covered parties required to report GHG emissions to EPA to comply with 40 C.F.R. Part 98 must submit their compliance report and verification by the dates in the "Report to EPA" column in Table 5.
(2) All other covered parties must submit their compliance report and verification by the dates in the "Report to Ecology" column in Table 5.
(1) Ecology will periodically review the program established by this chapter.
(2) If another program establishes GHG reduction requirements from covered parties, ecology will compare the programs. As a result of this comparison, ecology may suspend, alter, or repeal some or all of the requirements if ecology determines the new program requires similar or greater GHG reductions from the covered parties.
WAC 173-442-330 Air operating permit.
(1) The regulatory order issued under WAC 173-442-200(6) is an applicable requirement that must be included in an air operating permit, if this permit is required by chapter 173-401 WAC.
(2) In an air operating permit, the clean air rule regulatory order must be listed as a "state only" requirement.
(3) The regulatory order is a stand-alone appendix to an air operating permit.
(4) Only ecology implements and enforces the terms of the regulatory order.
(1) A violation of any requirement of this chapter subjects the covered party to enforcement in chapter 70.94 RCW.
(2) Each metric ton of covered GHG emissions that a covered party emits that exceeds the covered party's compliance obligation, and is not covered by an ERU is a separate violation.
(3) Ecology is solely responsible for enforcing the requirements of this chapter. Nothing in this chapter otherwise alters a local air authority's ability to regulate covered parties in their jurisdiction.
(4) Penalties may be appealed to the pollution control hearings board per chapter 43.21B RCW.
(1) Emissions data. Emissions data submitted to ecology is public information and is not confidential.
(2) ERU data. Data about an ERU is considered public information unless ecology approves a request under subsection (3) of this section.
(b) Is exempt from public disclosure under the Washington Public Records Act (chapter 42.56 RCW).
(4) Verification status. Ecology's determination of the verification status of each report is public information. All confidential data used in the verification process will remain confidential.
(1) For U.S. mail: Clean Air Rule, Air Quality Program, Department of Ecology, P.O. Box 47600, Olympia, WA 98504-7600.
If any provision of the rule or its application to any covered party, person, or circumstance is held invalid, the remainder of the rule or application of the provision to other covered parties, persons, or circumstances is not affected.

References: § 98
 § 98
 § 98
 § 98
 § 98
 § 98
 § 98
 § 98
 § 98

§ 98

§ 98

§ 98
 § 98

§ 98

§ 98

§ 98
 § 98

§ 98

§ 98

§ 98

§ 98
 § 98
 § 98
 § 98
 § 98
 § 98
 § 98
 § 98
 § 98
 § 98
 § 98
 § 98
 § 98
 § 98
 § 98
 § 98