Clean Air Rule

Sarah ReesSpecial Assistant, Climate Policy

January 13, 2016

Clean Air Rule Concept

Ecology’s Clean Air Rule will set limits on carbon pollution in Washington.

The rule concept looks like this:

Threshold for Coverage

60,000

65,000

70,000

75,000

80,000

85,000

90,000

95,000

100,000

105,000

2017 2020 2023 2026 2029 2032 2035 2038

Met

ric

Ton

s C

O2e

3

23 facilities

70 potential participants

Organizations Affected

Emissions would be capped for:

Stationary Sources

Petroleum fuel producers

and importers

Natural Gas Distributors

Not Included

TransAlta Coal Power Plant

Agricultural Practices

Emissions Associated with

Imported Electricity

Industrial Combustion of

Woody Biomass

Examples of Stationary Sources

Large Industrial

PlantsPower Plants

Large Landfills

Petroleum Fuel Producers

WA Refineries

• British

Petroleum

• Phillips 66

• Shell

• Tesoro

• U.S. Oil

Fuels Made

for Aviation or

Maritime Use

Fuels

Exported

Outside of

Washington

Petroleum Fuels Produced and Used in WA:

(gasoline, diesel, fuel oil, propane, etc.)

Imported Petroleum Fuels

Natural Gas Distributors

Transmission &

Distribution

Residential Commercial

Stationary

Sources

Covered by

Program

Small

Industrial

Sources

Not in

Program

Natural Gas Local Distribution Companies:

• Avista

• Cascade Natural Gas

• Puget Sound Energy

• NW Natural

Coverage by Source Category

Stationary

Sources 17%

Petroleum Fuel

Producers 35%

34%

About 2/3 of state

GHG emissions are

covered

Natural gas distributors 7%

Petroleum fuel importers 6%

Setting a Cap

Establish a multi-year baseline or

starting point

Set the cap beginning in

a future year

Each company or organization would have

a cap

Reduction Curve

60

65

70

75

80

85

90

95

2015 2020 2035

MM

T C

O2e

CAR Potential Emission Reductions Based on 2008 Reduction Limits

BAU statewide emissions

Statewide emissions with CAR

2008 statutory limits

Compliance Options

Reducing emissions

below cap

Reporters voluntarily

participating in program

Projects, programs, or

emission reduction activities

Instruments from external

carbon markets

(e.g., allowances)

Establishing Credits

Methane management (e.g., dairy digesters, landfills)

Transportation projects (e.g., commute trip reduction, fleet efficiency)

Energy (e.g., efficiency or renewable energy)

Projects in other sectors or involving other types of sources (e.g., cogeneration, refrigerants)

Credits or allowances verified through existing, established carbon markets.

Potential examples include:

Timeline

Begin

Rulemaking

In–person

stakeholder &

public meetings

in Eastern &

Western WA (4)

Educational

Webinars (3)

Release

proposed rule

and draft

economic

analysis

SEPT 21, 2015

SEPT/OCT 2015

OCT 2015 WINTER-SPRING 2016

SUMMER 2016

Finalize

and Adopt

Rule

JAN 2016

Public

hearings and

comment

period

NOV 2015

Webinar Additional

stakeholder

meetings

WINTER-SPRING 2016

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