AB 32 and Other Climate Change Drivers

1. AB 32 and Other Climate Change Drivers Jay R. Witherspoon jay.witherspoon@ch2m.com.au January 24, 2008

2. Climate Change Impacts on POTWs • Reduced flexibility of existing infrastructure to deliver sustainable water supplies • Increased vulnerability of existing infrastructure to extreme flooding • Reduced reliability and effectiveness of reservoir storage – as a system management tool & increased reservoir evaporation • Increased reliance on groundwater storage during droughts

3. AB 32 POTWs Impacts • Voluntary Participation • Participated in CCAR before 12/31/06 • Have GHG Reporting Program • 1st Round Mandatory GHG Emissions Reporting • POTWs as a Source Category not included • Most POTWs spared due to low combustion source GHG emissions • Some POTWs with high emitting GHG combustion sources are engaged • Estimated Mandatory Reporting starting in 2009 or 2010

4. AB 32 Impacts on POTWs • Early Actions • Mandatory Emissions Reporting • Scoping Plan and Emissions Reductions • Cap and Trade Program

5. Early Actions • Early Actions • Initial 37 reduction strategies (June 2007) • 3 discrete early actions enforceable (January 2010) • None directed specifically at POTW sector • Actions directed at other sectors (e.g., transportation) - will have some impact on POTW operations • Additional Early Actions • ARB evaluating 44 additional reduction strategies • 9 additional discrete early actions (regulatory) • Before Board beginning in 2008 • Voluntary early actions: • Above and beyond regulatory requirements • CARB to ensure “appropriate credit” • Entities must document their emissions reductions

6. Mandatory Emissions Reporting Initial Phase of Reporting to begin in 2009 • POTWs not identified as a specific sector to report in 2009 • However, POTWs may be required to report their emissions associated with the following: • Power/utility facility (≥1 MW) • Cogeneration facility (≥ 1 MW) • Large stationary combustion source (≥ 25 metric tons CO2)

7. AB 32 POTWs Impacts • POTWs Process GHG Emissions Sources • CH4 (methane gas) • anaerobic degradation, digestion • N2O • natural by-product of sewage (degradation of urea, nitrate, protein) • intermediate product of nitrification/denitrification • CO2 is Biogenic = net zero impacts

8. POTW GHG Emissions • CH4 • 6% of all California CH4 emissions (2002) • EPA Inventory, CH4 contribution by wastewater sector: Source: Patrick Griffith/LACSD & US EPA GHG Inventory

9. POTW GHG Emissions • N2O • 2.7% of all California N2O emissions (2002) • EPA Inventory, N2O contribution by wastewater sector: Source: Patrick Griffith/LACSD & US EPA GHG Inventory

10. POTW GHG Emissions • CO2 • process emissions considered biogenic • combustion • electricity purchases • Significant CO2 emissions tied to energy use! • 19% of California’s total electricity demand spent on provision of water and wastewater services

11. My Initial Conclusions • WWTP is not an identified source of CO2 emissions since CO2 emitted began as CO2 in the atmosphere fixed to food production – we are just returning it • Our anthropogenic sources of CH4 and N2O are conservatively estimated (much higher than they actually are) by both methodology and specific assumptions used (IPCC procedures). • Use maximum values • Neglect removal efficiencies (can’t operate at 100%) • Assume facultative systems operate anaerobically • For CH4 – used BOD loadings on per-capita values & can’t reproduce EPA’s numbers??? • For NO2 – used nitrogen discharges on per-capita protein consumption, plus added two factors that increase emissions by 75% - EPA’s numbers are double my calculations

12. AB 32 POTWs Impacts • POTWs will need GHG Emissions Inventories • Need Emissions Inventory Protocols • Types of Emissions to Report • Direct (Mobile, Direct, Process, Fugitive) • Indirect (Purchase Energy) • Deminimus (Insignificant)

13. Targeted WWTP Protocol Sources Blue Boxes are California POTWs Focused Sources

14. AB 32 POTWs Impacts • 2007 - Early Action Reduction Measures • 2008 – 1990 Emissions Inventory – 2020 Emission Limit • 2010 – Early Action Plan & Regulations • 2011 – Scoping Plan • 2012 – Market Based Trading Program

15. GHG Activities Beyond California

16. International and National Drivers • Kyoto Protocol • European Union, Emissions Trading Scheme • Increase in US Federal Action and Legislative proposals on climate change mitigation

17. U.S. State Action GHG Reporting and Registries GHG Emission Targets Climate Action Plans Source: www.pewclimate.org

18. Regional and State Drivers • RGGI • Regional cap and trade program for 7 Northeast states, initially focusing on emissions from power plants • Western States Initiative • CA, OR, WA, NM, and AZ plan to cut their states' GHG emissions and establish a regional carbon-trading system. • AB 32 • California legislation to reduce the state’s GHG emissions.

19. U.S. Congressional Interest in Climate Change • 1975: First hearings on global warming occurred • 1989: Dr. James Hansen of NASA testifies before Al Gore’s Senate Committee • 1997: The Byrd-Hagel Resolution passes 95-0 • 1998: “Kyoto” never sent to the Senate for ratification • 2003: First McCain-Lieberman GHG Bill defeated • 2004: The Gilchrest-Olver Climate Stewardship Act is introduced. • 2007: House Speaker Nancy Pelosi sets a June deadline for House committee legislative action and establishes a Select Committee on Energy Independence and Global Warming

20. Laws & Schedule to Reduce Emissions

21. Australian GHG Accounts and Reduction Goals • GHG Accounts & Reductions focused on: • Energy • Stationary, Transport, Fugitive • Industrial Processes • Solvent & Other Product Usage • Agriculture • Land Use, Land Use Change & Forestry • Waste • Australia’s share of world GHG emissions was 1.5% in 2005 • Concerns seen in National papers on a daily basis

22. Australian GHG Accounts and Reduction Goals • GHG Accounts & Reductions focused on: • Energy • Stationary, Transport, Fugitive • Industrial Processes • Agriculture • Land Use, Land Use Change & Forestry • Waste • Australia share of world GHG emissions was 1.5% in 2005

23. AB 32 Impacts on POTWs • GHG Emission Reductions • Voluntary and Regulatory • Where are reduction currently taking place? • Where can additional reduction come from? • Quantifying Reductions • Cap-and-Trade Program • Receiving Carbon Credits • Marketing Credits

24. GHG Emission Reduction Opportunities

25. GHG Emission Reduction Opportunities (cont.)

26. Relative Distribution in Water Treatment – 10 MGD example Source: Keith Carns/Global Energy Partners

27. Relative Distribution of Plant Power – 7.5 MGD WWTP Source: Keith Carns/Global Energy Partners

28. City of Portland , Oregon, USA First American City to Adopt a Local Strategy for Greenhouse Gas Emissions (1993)

29. Energy Use and Emissions Sources in Portland

30. City of Portland, Oregon • Transportation dominates GHG emission sources in Portland. Reasons are: • Low population density • Suburban character of the area • Abundance of commuters • Relatively minor presence of heavy industry • Relatively mild climate means transportation energy use is proportionately higher than heating/cooling energy use

31. Portland, OregonGHG Reduction in Transportation • Reduce auto travel & increase transit use through mixed land use planning • Increase availability of housing in downtown area • Construct more bikeways and bicycle parking • Give transit and carpooling incentives to City employees through Trip Reduction Incentives Program (TRIP) • It has been working...transit use has increased 30% & auto commute trips have been reduced by 20%

32. Portland, OregonEnergy Efficiency Measures • City government has reduced energy use by 15% since 1990 • Results: City’s capital investment of $4 million creates annual savings of $1.2 million and CO2 reduction of 10,000 tons/year • Customer driven programs such as “Block-by-Block Weatherization” and “Multi-family Energy Saving” created demand reduction of 80 MW (=54,000 homes) • Developed “Businesses for an Environmentally Sustainable Tomorrow (BEST)” and EPA’s “Climate Wise Program”

33. Assisted by State Policies • Statewide benchmark to hold GHG emissions at 1990 levels. • CO2 emission standard for new energy production facilities of 0.7 lbs CO2 per kWh • Business Energy Tax Credit • Residential Building Code changes to cut energy use in new homes • Transportation Planning Rule to reduce vehicle-miles- traveled by 20% per capita in metro areas in 30 years

34. Western Climate Initiative • The Western Climate Initiative is a collaboration which was launched in February 2007 to develop regional strategies to address climate change • By the Governors of Arizona, California, New Mexico, Oregon and Washington. • In the spring of 2007, the Governor of Utah and the Premiers of British Columbia and Manitoba joined the Initiative. Other states and provinces have joined as observers. • WCI is identifying, evaluating and implementing collective and cooperative ways to reduce greenhouse gases in the region. • Through WCI, the partners set an overall regional goal in August 2007 for reducing greenhouse gas emissions • The partners have developed a Workplan to guide their work and are seeking public input on the process. • By August 2008 the Partners will also complete the design of a market-based mechanism to help achieve that reduction goal. • Similar to CARB in many ways, but with more aggressive deadlines • CARB is looking to align their efforts with WCI while still meeting their own goals

35. Recommendations for POTWs • Develop a GHG Inventory Early • Use existing protocols for now • Refine with CWCCG method • Practice for mandatory reporting which will begin in 2009 • Meet any applicable discrete early action requirements • Develop and implement GHG emissions reduction strategies • Track emissions reductions to receive credit • Follow CARB rule making and communicate with CARB