Greenhouse Gas Assessment For Projects (GAP) Rulemaking

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Greenhouse Gas Assessment for Projects(GAP) RulemakingJuly 2020 WEBINAR

Webinar AgendaIntroductionPresentation (30 minutes)GAP Rule ApplicabilityBreak and Audience Poll (5 minutes)Public Input and FeedbackInput from Groups Representing Key Interest Areas (10-15 minutes)Public input and feedback (1 ½ hours)2

Hello from Ecology!Here is who you’ll be hearing speak today and who is helping with the webinar: Brook Swensen, Co-Host and Facilitator Sadie Hinklin, Co-Host and Facilitator Diane Butorac, GAP Rule Project Manager Neil Caudill, Greenhouse Gas Expert Bill Drumheller, Climate and Energy Expert3

GAP Rule Ecology is starting rulemaking as directed by Governor’s Directive 19-18. The purpose of this rulemaking is to create a new rule:Chapter 173-445 WAC, Greenhouse Gas Assessment for Projects This rulemaking will:o Address analysis and mitigation of greenhouse gas emissions forenvironmental assessments of industrial and fossil fuel projectso Provide consistent and comprehensive assessment methods for industrialand fossil fuel projectso Provide clarity and transparency to industry, the public, and agencies4

Previous WebinarsThe presentation from this webinar is available on the GAP Rule websiteJune 25, 2020 Webinar Information on the rule purpose, process, and timeline Discussed key concepts being used for rule development5

GAP RuleApplicability6

Where the GAP Rule Would Apply The rule will apply to proposed projects with likely greenhouse gas emissions The focus of this rule will be on fossil fuel and industrial projects per theGovernor’s Directive 19-18 Proposed projects could be for:o A new facility which require environmental revieworo Changes to an existing facility which require environmental review The rule would be used by any lead agency under the State EnvironmentalPolicy Act or by project applicants7

Where the GAP Rule Would NOT Apply The rule would not apply to existing facility operations which are alreadypermitted The rule would not apply to projects currently going through an environmentalreview process The rule would not apply to projects which have completed an environmentalreview process In general, the rule would not apply to:o Programmatic reviews or plans, like a Comprehensive Plan updateo Highway, road, or passenger rail projectso Housing projects For projects that are not covered by the GAP rule, greenhouse gas emissionswill still require consideration under SEPA on a case-by-case basis8

How to Know if a Project Must do the GAPRule Environmental Assessment An initial screening process would be used to determine if the GAP ruleenvironmental assessment procedures for GHG emissions apply to a fossilfuel or industrial project If the screening process identifies a project as being applicable, then thegreenhouse gas assessment in the GAP Rule must be usedo The greenhouse gas assessment methods will be discussed during theAugust webinar9

Initial ScreeningFor the project, consider:1. Facility onsite emissions2. Feedstocks (inputs)3. Products (outputs)10

Project’s Facility GHG Emissions Estimate the project’s facility emission sources using methods described inWAC 173-441-120, Reporting of Emissions of Greenhouse Gaseso The WAC requires using the methods adopted by reference from EPA’sGHG reporting regulation, 40 CFR 98, Mandatory Greenhouse GasReportingo WAC 173-441 applies to facilities emitting at least 10,000 metric tonsCO2e of GHG per year in Washington (RCW 70.94.151(5)(a))11

Project’s Facility GHG EmissionsIn 2018, over 150 Washington facilities reported GHG emissions over 10,000 metric tons of CO2e Power plantsPetroleum refineriesPulp and paper plantsMetals (aluminum, steel)Glass plantsChemical producersElectronics manufacturersGeneral manufacturingLarge boilersFood processorsWaste facilities12

Project’s Facility GHG Emissions Estimate facility GHG emissions using a potential to emit basis.o Normally GHG reports are based on actual measurements (for example,amount of natural gas burned per year)o For screening use maximum quantity of natural gas per year that could beburned (for example, permit limit, boiler rating, etc.) Include estimating emissions from biogenic CO2 If facility emissions are equal to or greater than 10,000 metric tons of CO2eper year, the GAP Rule applies to the project and the greenhouse gasassessment described in the rule must be done13

GHG Emissions for Project Inputs and OutputsIf a project’s facility GHG emissions are less than 10,000 metric tons of CO2e, thenconsider inputs and outputs to the project Inputs are materials used by the project (feedstocks: natural gas for a chemical plant) Outputs are materials made by the project (products: gasoline from a refinery) Identify inputs or outputs using a table in the rule for:o Fossil fuelso Electricity Estimate the potential to emito Similar to 40 CFR 98 Table C-1 and Table MM-1o For unlisted hydrocarbons, estimate on a carbon content basis If a single input or output, or a combination of multiple inputs or outputs, are 10,000 metric tons of CO2e, the GAP Rule applies to the project and the greenhousegas assessment described in the rule must be done14

Initial Screening An initial screening process would be described in the GAP Rule to determinewhich projects would complete the environmental assessment in the ruleo We will discuss the environmental assessment methods for the GAP Rule at theAugust 27 webinar. If the GAP rule does not apply to a project, an evaluation of GHG emissions isstill required under the State Environmental Policy Act (SEPA) on a case-bycase basis15

GAP Rule Webinar Series June 25Video available online July 23 August 27Slides available online9:30 am - noon September 24 October 29 November 172:00 pm – 4:30 pm9:30 am – noon9:00 am – noonGAP Rule purpose, processand key conceptsRule applicabilityEnvironmental assessmentmethodsMitigationTBDDraft GAP Rule overview16

For More Information Website: lesrulemaking/Rulemaking/WAC-173-445 Join our email list (the link is also on the -ECOLOGY.exe?SUBED1 GAP-RULE&A 1 Email your input and feedback to: gap-rule@ecy.wa.gov Points of Contact:Diane Butoracdiane.butorac@ecy.wa.gov(360) 407-6573Fran Santfran.sant@ecy.wa.gov(360) 407-600417

oAddress analysis and mitigation of greenhouse gas emissions for . per year, the GAP Rule applies to the project and the greenhouse gas assessment described in the rule must be done. 14 GHG Emissions for Project Inputs and Output

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