Carbon Offsets for Compliance Under AB32 Joel Levin Vice President of Business Development.
How will we enforce AB32?
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Transcript of How will we enforce AB32?
How will we How will we enforce enforce AB32?AB32?
How will we How will we enforce enforce AB32?AB32?
It's tough to make It's tough to make predictions, predictions,
especially about the especially about the future.future.
Yogi Berra Yogi Berra
It's tough to make It's tough to make predictions, predictions,
especially about the especially about the future.future.
Yogi Berra Yogi Berra
AB 32 TimelineAB 32 TimelineAB 32 TimelineAB 32 Timeline
20202007 2008 2009 2010 2011 2012
GHG reduction
measures enforceable
Adopt GHG reduction measures
Publish list of early actions
Adopt scoping plan
Mandatory reporting &
1990 Baseline
Adopt enforceable early action regulations
Reduce GHG emissions to 1990 levels
Identification/ implementation
of further emission reduction strategies
Early action regulations enforceable
MEASURES UNDERWAY OR TO BE MEASURES UNDERWAY OR TO BE INITIATED BY ARB IN THE 2007-2012 INITIATED BY ARB IN THE 2007-2012 PERIODPERIOD
MEASURES UNDERWAY OR TO BE MEASURES UNDERWAY OR TO BE INITIATED BY ARB IN THE 2007-2012 INITIATED BY ARB IN THE 2007-2012 PERIODPERIOD
R & D onlyR & D only
Nopredictableenforcementmodel
Nopredictableenforcementmodel
NPEMNPEM
Historical Command & ControlReporting & audit Staff Recycling
How do we enforce existing How do we enforce existing rules?rules?How do we enforce existing How do we enforce existing rules?rules?• TeamworkTeamwork
– Partnership with other ARB divisionsPartnership with other ARB divisions– Partnership with 35 local air districtsPartnership with 35 local air districts– Partnership with Attorney General and Partnership with Attorney General and
local District Attorneyslocal District Attorneys– USEPAUSEPA
• Statewide enforcement programsStatewide enforcement programs– Automotive tailpipe emissionsAutomotive tailpipe emissions– FuelsFuels– Consumer productsConsumer products– Heavy Duty DieselHeavy Duty Diesel
• TeamworkTeamwork– Partnership with other ARB divisionsPartnership with other ARB divisions– Partnership with 35 local air districtsPartnership with 35 local air districts– Partnership with Attorney General and Partnership with Attorney General and
local District Attorneyslocal District Attorneys– USEPAUSEPA
• Statewide enforcement programsStatewide enforcement programs– Automotive tailpipe emissionsAutomotive tailpipe emissions– FuelsFuels– Consumer productsConsumer products– Heavy Duty DieselHeavy Duty Diesel
Our GoalsOur GoalsOur GoalsOur Goals
•ComplianceCompliance
•A level playing fieldA level playing field
•DeterrenceDeterrence
•ComplianceCompliance
•A level playing fieldA level playing field
•DeterrenceDeterrence
Scope of the ChallengeScope of the ChallengeScope of the ChallengeScope of the Challenge
25 Million Motor Vehicles
0.5 Million diesel trucks
35 Air Districts
Source Categories of Exclusive ARB EnforcementAutomotive Tail pipesFuel specsConsumer productsRailroadsPersonal watercraft
Source Categories of Exclusive ARB EnforcementAutomotive Tail pipesFuel specsConsumer productsRailroadsPersonal watercraft
32 Million People
40,000 Stationary Sources
44 prohibitory rules in SCAQMD today
44 new rules for AB32 to be enforceable by Jan 2012. More to follow.
100,000 retail stores selling regulated consumer products
12,000 Gas stations
4000 Cargo tanks
New responsibilities under AB New responsibilities under AB 3232New responsibilities under AB New responsibilities under AB 3232
•Health & Safety Code Health & Safety Code §§3858038580
(a) The state board shall monitor (a) The state board shall monitor compliance with and enforce any compliance with and enforce any rule, regulation, order, emission rule, regulation, order, emission limitation, emissions reduction limitation, emissions reduction measure, or market-based measure, or market-based compliance mechanism adopted by compliance mechanism adopted by the board pursuant to this division.the board pursuant to this division.
•Health & Safety Code Health & Safety Code §§3858038580
(a) The state board shall monitor (a) The state board shall monitor compliance with and enforce any compliance with and enforce any rule, regulation, order, emission rule, regulation, order, emission limitation, emissions reduction limitation, emissions reduction measure, or market-based measure, or market-based compliance mechanism adopted by compliance mechanism adopted by the board pursuant to this division.the board pursuant to this division.
Discrete Early ActionDiscrete Early ActionDiscrete Early ActionDiscrete Early Action
• 38560.5 (a) the state board shall publish… 38560.5 (a) the state board shall publish… a list of discrete early action… measures a list of discrete early action… measures that can be implemented prior to the that can be implemented prior to the measures and limits adopted pursuant to measures and limits adopted pursuant to Section 38562.Section 38562.
• 38560.5 (b) On or before January 1, 2010, 38560.5 (b) On or before January 1, 2010, the state board shall adopt regulations to the state board shall adopt regulations to implement the measures identified on the implement the measures identified on the list published pursuant to subdivision (a).list published pursuant to subdivision (a).
• 38560.5 (a) the state board shall publish… 38560.5 (a) the state board shall publish… a list of discrete early action… measures a list of discrete early action… measures that can be implemented prior to the that can be implemented prior to the measures and limits adopted pursuant to measures and limits adopted pursuant to Section 38562.Section 38562.
• 38560.5 (b) On or before January 1, 2010, 38560.5 (b) On or before January 1, 2010, the state board shall adopt regulations to the state board shall adopt regulations to implement the measures identified on the implement the measures identified on the list published pursuant to subdivision (a).list published pursuant to subdivision (a).
Further MeasuresFurther MeasuresFurther MeasuresFurther Measures
• 38562. (a) On or before January 1, 2011 the 38562. (a) On or before January 1, 2011 the state board shall adopt greenhouse gas state board shall adopt greenhouse gas emission limits and reduction measures by emission limits and reduction measures by regulation to achieve the maximum regulation to achieve the maximum technologically feasible and cost-effective technologically feasible and cost-effective reductions in greenhouse gas emissions in reductions in greenhouse gas emissions in furtherance of achieving the statewide furtherance of achieving the statewide greenhouse gas emissions limit, to become greenhouse gas emissions limit, to become operative beginning on January 1, 2012.operative beginning on January 1, 2012.
• 38562. (a) On or before January 1, 2011 the 38562. (a) On or before January 1, 2011 the state board shall adopt greenhouse gas state board shall adopt greenhouse gas emission limits and reduction measures by emission limits and reduction measures by regulation to achieve the maximum regulation to achieve the maximum technologically feasible and cost-effective technologically feasible and cost-effective reductions in greenhouse gas emissions in reductions in greenhouse gas emissions in furtherance of achieving the statewide furtherance of achieving the statewide greenhouse gas emissions limit, to become greenhouse gas emissions limit, to become operative beginning on January 1, 2012.operative beginning on January 1, 2012.
Three Enforcement ModelsThree Enforcement ModelsThree Enforcement ModelsThree Enforcement Models
• Historical Command & ControlHistorical Command & Control– ARB field personnel– Local district field personnel/ARB
oversight
• Reporting & auditReporting & audit – Audits/accounting– Self monitoring & reporting
• Staff RecyclingStaff Recycling – Window of compliance
• Historical Command & ControlHistorical Command & Control– ARB field personnel– Local district field personnel/ARB
oversight
• Reporting & auditReporting & audit – Audits/accounting– Self monitoring & reporting
• Staff RecyclingStaff Recycling – Window of compliance
ARB Historical ModelARB Historical ModelARB Historical ModelARB Historical Model•ARB hears 20 regulatory items per
year.
•Once adopted an enforcement plan is developed and staff provided in the next fiscal year.– Submit budget change proposal (BCP),
hire & train state inspection staff. Train industry personnel.
– District rule development– Audits of district enforcement program
•ARB hears 20 regulatory items per year.
•Once adopted an enforcement plan is developed and staff provided in the next fiscal year.– Submit budget change proposal (BCP),
hire & train state inspection staff. Train industry personnel.
– District rule development– Audits of district enforcement program
Statewide Enforcement Statewide Enforcement ResponsibilitiesResponsibilitiesStatewide Enforcement Statewide Enforcement ResponsibilitiesResponsibilities
•Fuel Specifications
•Automotive Tailpipes
•Consumer Products
•Heavy Duty Diesel
•Motorcycles
•Railroad Agreement
•Small off road engines
•Marine vessels
•Pleasure craft
•Fuel Specifications
•Automotive Tailpipes
•Consumer Products
•Heavy Duty Diesel
•Motorcycles
•Railroad Agreement
•Small off road engines
•Marine vessels
•Pleasure craft
Reporting and Audit Reporting and Audit RequirementsRequirementsReporting and Audit Reporting and Audit RequirementsRequirements
•Compliance may be confirmed with Compliance may be confirmed with data from a third party or direct data from a third party or direct reportingreporting
•Accounting becomes the principal Accounting becomes the principal enforcement toolenforcement tool
•Field visits are essentialField visits are essential
•Compliance may be confirmed with Compliance may be confirmed with data from a third party or direct data from a third party or direct reportingreporting
•Accounting becomes the principal Accounting becomes the principal enforcement toolenforcement tool
•Field visits are essentialField visits are essential
Reporting and Audit Reporting and Audit RequirementsRequirementsReporting and Audit Reporting and Audit RequirementsRequirements
Market-based compliance mechanisms
Health & Safety Code §38570
(a) The state board may include in the regulations adopted pursuant to Section 38562 the use of
market-based compliance mechanisms to comply with the regulation
Market-based compliance mechanisms
Health & Safety Code §38570
(a) The state board may include in the regulations adopted pursuant to Section 38562 the use of
market-based compliance mechanisms to comply with the regulation
How can we expand and How can we expand and improve on the traditional improve on the traditional enforcement models?enforcement models?
How can we expand and How can we expand and improve on the traditional improve on the traditional enforcement models?enforcement models?Force multipliers such as:
•Increased use of district partnership for sources traditionally handled by the state.
•Increased use of digital monitoring and reporting.
Force multipliers such as:
•Increased use of district partnership for sources traditionally handled by the state.
•Increased use of digital monitoring and reporting.
• Self monitoring and reportingSelf monitoring and reporting
• Digital and periodic paper submittals Digital and periodic paper submittals of facility wide compliance conditionof facility wide compliance condition
• Compliance confirmation inspections Compliance confirmation inspections are conducted by specialized teamare conducted by specialized team
• Self monitoring and reportingSelf monitoring and reporting
• Digital and periodic paper submittals Digital and periodic paper submittals of facility wide compliance conditionof facility wide compliance condition
• Compliance confirmation inspections Compliance confirmation inspections are conducted by specialized teamare conducted by specialized team
Reporting and Audit Reporting and Audit RequirementsRequirements
Recycled Staff ModelRecycled Staff ModelRecycled Staff ModelRecycled Staff Model
Rule writer or Veteran enforcer
Recycled veteran
Date of rule adoption orconfirmed final compliance
Ad hocEnforcement Teams
QuestionsQuestions