Air Board Adopts AB 32 GHG Reduction Goal

The California Air Resources Board December 6 adopted a 29 percent greenhouse gas reduction goal for 2020, and mandatory global warming gas reporting requirements covering hundreds of California businesses, from power plants and utilities to petroleum refineries. Both actions are considered cornerstones of the effort to carry out California’s climate protection law, AB 32. In other action, the Air Board adopted a $1.8 billion rule to require ports to electrify their docks so ships can plug into power from the grid while they are docked rather than running their engines to make onboard electricity. Just before the panel approved the annual reporting requirements covering 800 state businesses, Air Board chair Mary Nichols said, “This is the first actual regulation this board will be adopting under AB 32.” The agency estimated it would cost businesses between $21 million and $30 million a year to comply with the reporting requirements, said Rajinder Sahota, Air Board staff member. Under the rules, businesses will have to report their 2008 emissions in 2009. The following year businesses must have their reports verified by third party organizations that have been certified by the Air Board. Verifiers are expected to include both private companies and California’s network of local air pollution control districts. For the power industry, the rules require overlapping reports, though Air Board executive officer James Goldstene said the requirements are likely to be modified annually for the next few years as the agency decides on a regulatory strategy for reducing emissions. A key issue for the power industry revolves around which entities the Air Board ultimately will choose to hold accountable for emission reductions: generators, power wholesalers, or utilities. Under the new reporting rules, all those entities must report greenhouse gas emissions attributable to the electricity they make and sell. The Air Board also approved an official 1990 emissions “inventory” under AB 32. The data establishes the emissions reduction target for 2020. The law requires the Air Board to adopt regulations sufficient to cut greenhouse gas emissions to 1990 levels by that year. The inventory specifies that greenhouse gas emissions in 1990 were 427 million metric tons of carbon dioxide “equivalent”--that equates all greenhouse gases to carbon dioxide. It projected that without further controls, those emissions would rise to 600 million metric tons by 2020. Effectively, this means that the state’s goal under the law is to cut greenhouse gas emissions by 173 million metric tons over the next 12 years. The Air Board inventory showed that power plants accounted for 25 percent of total emissions in 1990. Imported power accounted for 14 percent and in-state generation represented 11 percent. Power industry representatives told the Air Board that the 1990 inventory underestimated emissions attributable to power imports and should be adjusted upward. “We believe there has been an understatement of the emissions from imported electricity,” said Norman Pedersen, Southern California Public Power Authority attorney. He said actual emissions on imports could amount to as much as 20 million tons more than estimated in the inventory. On account of the possible discrepancy, industry representatives urged the Air Board to regularly update the inventory. However, in approving the inventory, Nichols directed the Air Board staff not to change the 1990 emissions estimate unless “new science” shows that it is off dramatically. She suggested that a minimum error of 10 percent be used as a criterion for considering whether to change it. Environmentalists said it is time for the Air Board to shift its focus from determining the emissions goal under AB 32 to developing rules to reduce carbon pollution. In a final action, the Air Board approved a rule to require ports and shipping lines to work together to enable ships to plug into onshore power from the grid while docked in California’s major ports. The $1.8 billion measure, which is to be phased in over the next decade, is expected by 2020 to cut statewide ship emissions of smog-forming nitrogen oxides by 28 tons per day and carbon dioxide by up to 240,000 metric tons a year. The measure also will cut emissions of particulate matter. State money is available to pay part of the costs related to the rule, according to the Air Board. It will apply to container ships, cruise ships, and refrigerator ships. The Air Board staff said some of the ships can use up to 15 MW of power while docked. “The power is available,” said Mike Scheible, Air Board deputy executive officer. However, he noted that utilities have to run new power lines into the ports to supply the ships. This, he said, is likely to take time. The rule is one of a series of measures the Air Board is pursuing to clean up emissions from the ports, which are growing as pollution from other sources decline under clean air rules. Editors’ note: For more details on the Air Board’s actions, please see our sister publication E=MC2, Energy Meets Climate Challenge, www.energymeetsclimate.com

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Air Board Adopts AB 32 GHG Reduction Goal

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