GHG Emissions Management
As GHG management and climate change issues continue to evolve,
it is increasingly important for industry to remain informed of the rapid developments taking place in this sector. Below you'll find relevant updates, resources, and links concerning the most recent developments in GHG and climate change issues.
California Passes Landmark Legislation to Reduce GHG Emissions
10/11/2006
On September 27, 2006, Governor Schwarzenegger signed the California Global Warming Solutions Act of 2006, or Assembly Bill 32 (AB 32), California’s landmark legislation that establishes mandatory greenhouse gas (GHG) reduction targets to be achieved through regulatory and market mechanisms.
AB 32 requires the California Air Resources Board (CARB) to develop regulations and market mechanisms that will ultimately reduce California’s GHG emissions to 1990 levels by 2020 (a 25 percent decrease), and to 80 percent below 1990 levels by 2050. Mandatory caps will begin in 2012 for certain significant emission sources and will continue to ratchet down to meet the 2020 goals.
In the meantime, CARB will begin to inventory GHG emissions throughout the state to determine which industries will be subject to the mandatory reductions.
Specifically, AB 32 requires CARB to:
- Establish a statewide GHG emissions cap for 2020 based on 1990 emissions by January 1, 2008
- Adopt mandatory reporting rules for significant sources of GHGs by January 1, 2009
- Adopt a plan by January 1, 2009 indicating how emission reductions will be achieved from significant GHG sources via regulations, market mechanisms, and other actions
- Adopt regulations by January 1, 2011 to achieve the maximum technologically feasible and cost-effective reductions in GHGs, including provisions for using both market mechanisms and alternative compliance mechanisms
- Convene an Environmental Justice Advisory Committee and an Economic and Technology Advancement Committee to advise CARB
- Ensure public notice and opportunity for comment for all CARB actions
In addition, prior to imposing any mandates or authorizing market mechanisms, CARB must evaluate several factors, including but not limited to impacts on California’s economy, the environment, and public health; equity between regulated entities; electricity reliability; and conformance with other environmental laws. It must also ensure that the rules do not disproportionately impact low-income communities. Furthermore, the bill allows the Governor to invoke a safety valve and suspend the emissions caps for up to one year in the case of an emergency or significant economic harm.
The implementation of a mandatory GHG cap and trade program in California is a significant development in terms of U.S. GHG actions and, like the Regional Greenhouse Gas Initiative (RGGI), the program’s design and its ultimate success or failure will serve as a building block for future national legislation. According to the San Diego Union-Tribune, business interests are currently assembling a list of concessions they believe are vital to the economic health of California. Among their requests, industry plans to propose that the governor and lawmakers exempt investments in fuel-saving equipment from sales tax.
For more information regarding California’s AB 32, please contact Trinity Consultants at ghg@trinityconsultants.com
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Supreme Court to Hear Global Warming Case
7/14/2006
On June 26, 2006, the U.S. Supreme Court agreed to consider a lawsuit aimed at requiring the U.S. EPA to regulate carbon dioxide emissions from motor vehicles in order to combat the effects of global climate change. The lawsuit intends to challenge the legality of EPA’s 2003 decision to not consider carbon dioxide as a regulated pollutant under the Clean Air Act. After being rejected several times by the lower courts, this landmark decision to hear the case means the court will ultimately address whether the administration’s decision to solely rely on voluntary measures to combat climate change is legal under Clean Air Act laws. The lawsuit is being brought by twelve states (Connecticut, Vermont, Illinois, Maine, Massachusetts, New Jersey, New York, Rhode Island, California, Oregon, Washington, and New Mexico) led by Massachusetts’ Attorney General, Tom Reilly (D), along with the cities of New York, Baltimore, Washington D.C., and several environmental groups. The case has been added to the Supreme Court’s full term schedule that begins in October.
Other climate change cases pending in the courts include a challenge in the D.C. Circuit Court to EPA’s plan to not regulate carbon dioxide emissions from new coal-fired power plants and industrial boilers, a lawsuit associated with the National Environmental Policy Act (NEPA) and financing of energy-intensive projects, and California’s ongoing pursuit to limit carbon dioxide from cars, trucks, and SUVs.
For more information, please contact Trinity Consultants at ghg@trinityconsultants.com. You may also register on our Web site and receive Managing Environmental Performance (MEP), our quarterly e-newsletter devoted to strategic environmental management issues.
Recent Issuance of ISO 14064 Standards for Greenhouse Gas (GHG) Emissions Management
6/16/2006
The accumulation of greenhouse gases (GHGs) in the Earth’s atmosphere, created primarily through fossil fuel combustion, has resulted in global climate change, or global warming. With the entry into force of the Kyoto Protocol and the development of regional GHG emissions trading schemes and voluntary registry programs in the United States, multi-national companies will potentially operate under a number of complex and dissimilar programs.
While a national regulatory framework for reducing GHG emissions in the U.S. is still developing, progressive companies are inventorying organizational GHG emissions to set a baseline, implementing data management systems to track GHG emissions data, and developing strategies to offset or reduce GHG emissions in the future.
Trinity helps companies develop climate change policies and manage their GHG emissions by:
- Educating company decision-makers about the importance of a proactive approach to GHG emissions management
- Creating strategy planning documents and internal GHG protocols for companies
- Preparing baseline GHG emissions inventories
- Advising clients on voluntary program and registry participation and preparing submissions for programs such as 1605(b) and the California Climate Action Registry
- Educating and advising clients on GHG and renewables trading markets
- Selecting and implementing enterprise data management systems or custom software solutions for managing GHG emissions data