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The California Air Resources Board (ARB) is proposing to amend the Regulation for the Mandatory Reporting of Greenhouse Gas (GHG) Emissions (MRR) to ensure reporting accuracies and support the Cap-and-Trade Regulation and U.S. EPA Clean Power Plan.  ARB is also proposing to amend the Cap-and-Trade Regulation to extend the Program beyond 2020 and broaden the Program through linkages with other jurisdictions.

Proposed amendments will be considered during a two-day public hearing that will start on September 22, 2016 at 9:00 AM PDT located at the California Environmental Protection Agency.  Comments may be submitted at the hearing or beforehand no later than 5:00 pm on September 19, 2016. Proposed amendments for the regulations include, but not limited to:

  • General - Update global warming potential (GWP) values beginning with the 2021 data reported in 2022
  • Applicability - Change the point of regulation for liquefied petroleum gas (LPG) and liquefied natural gas (LNG) from "consignee" to "importer"
  • Electricity Generators - Implement reporting, metering, and other requirements of the U.S. EPA Clean Power Plan, 40 Code of Federal Regulations Part 60, Subpart UUUU (CPP 2015)
  • Product Data - Clarifications for several sectors including milk production, tomato products, poultry, and others
  • Product Data - Clarify requirements for Complexity Weighted Barrel (CWB) and hydrogen production data reporting
  • Petroleum and Natural Gas Production - Clarify use of a default value for the fraction of gas combusted and incorporate a revised Flash Test procedure
  • Fuel Suppliers - Remove requirement for enterers and in-State producers of ethanol and biodiesel to report those fuels and revise requirements to allow biomethane to be reported by a utility that transports the fuel
  • Electric Power Entities - Clarifications for the "lesser of" analysis, CAISO sales, generation providing entities, specified source electricity reporting, REC serial numbers, and RPS adjustment; include CAISO as a reporting entity for electricity imports data related to transfers within the emission inventory module
  • Verification - Change verification deadline from September 1 to August 1
  • Cap-and-Trade - Extend the Program beyond 2020 by establishing new emissions caps; link the Program with the new cap-and-trade program in Ontario, Canada beginning January 2018 and continue Program linkage with Québec, Canada beyond 2020

More information about the hearing including regulatory documents on the Mandatory Reporting of Greenhouse Gas can be found at the ARB website here, and more information on Cap-and-Trade 2016 can be found here.  For more details on recent MRR and Cap-and-Trade amendment activities, please contact Dr. Charles Lee at (949) 567-9880.