California weighs refinery GHG rules following efficiency audit results

California Air Resources Board (CARB) officials said they will continue to evaluate the need for first-time state greenhouse gas (GHG) rules for refineries. This follows the release of a GHG and energy efficiency audit of the facilities, which could boost advocates’ calls for state GHG rules instead of an EPA rule.
However, board officials told a July 9 public meeting that they are unlikely to seek new measures targeting heavier crude oil refining in California as long as refineries are meeting existing emission limits under local air district permits.
Environmentalists have recently raised concerns about an expected increase in oil refining in the state and what that may mean for GHG emissions and local air quality.
The fight over potential future regulation of refinery GHGs by the CARB comes as the EPA is delaying its development of climate rules. Under a consent decree with some states and environmentalists, the agency is required to issue new performance standards to cut refineries’ GHG emissions, but the EPA has missed its decree deadline for a proposal and the fate of the rule is unclear.
Advocates and opponents of climate policies for the refining sector are likely to closely track developments in California as the state’s rules often serve as a model for other states and the EPA.
CARB released a refinery sector public report in June 2013 for public review, as required under the board’s “Regulation for Energy Efficiency and Co-Benefits Assessment of Large Industrial Facilities,” adopted in 2010. The rule requires the largest industrial facilities in California to conduct a one-time energy efficiency assessment of GHG sources to determine potential emission reduction opportunities, including those for pollutants and toxic air contaminants.
CARB’s report says the total GHG reductions associated with projects undertaken by refineries to date is estimated to be about 2.8 million metric tons of carbon dioxide equivalent per year.
About 78% of the estimated GHG reductions are from completed projects, with the remaining 22% of reductions to come from projects that are scheduled or are under investigation, CARB says.
At the July 9 meeting, CARB Stationary Source Division Chief Dan Donohoue said the agency will release a phase 2 report to elaborate on findings from the audit. After that, CARB will initiate phase 3 to determine what new GHG or energy efficiency measures could be required at refineries.
(July 18, 2013)