Air Quality Bureau
Guide to 20.2.300 NMAC - Reporting of Greenhouse Gas Emissions
Rule: Download complete rule text
Schedule: Emissions for 2011, the first year this rule is in effect, must be submitted by March 31, 2012 (the same deadline as for reporting under 40 CFR 98).
Threshold: 10,000 metric tons carbon dioxide equivalent (CO2e) per year
Reporting under 20.2.300 NMAC is required if total emissions of covered Greenhouse Gases (GHGs) from covered source categories equals or exceeds 10,000 metric tons carbon dioxide equivalent (CO2e) in the reporting year.
Carbon dioxide equivalent (CO2e): Some GHGs have a more potent heat-trapping effect than others. GHG emissions are converted to a common basis by multiplying mass emissions of each GHG by its Global Warming Potential. 20.2.300 NMAC uses the same Global Warming Potential values as the federal rule: CO2 = 1, CH4 = 21, N2O = 310.
Reporting Entity: Facility
For applicability, emissions of covered gases and sources are summed over the facility. The rule uses a definition of "facility" similar to that used in air quality permitting and other air quality programs:
Facility means any physical property, plant, building, structure, source, or stationary equipment located on one or more contiguous or adjacent properties in actual physical contact or separated solely by a public roadway or other public right-of-way and under common ownership or common control, that emits or may emit any greenhouse gas. Operators of military installations may classify such installations as more than a single facility based on distinct and independent functional groupings within contiguous military properties.
This definition is unmodified from Subpart A of the federal rule (40 CFR 98). Although other Subparts of the federal rule include source-category specific definitions of "facility" that aggregate non-contiguous or non-adjacent equipment (such as wellheads), those Subparts are not incorporated into 20.2.300 NMAC. Emissions from vehicles and portable equipment are not covered by 20.2.300 NMAC.
Source Categories: Download list and definitions of covered source categories. It is impossible to list everything that is not covered, but some significant source categories that are not included are: methane from oil and natural gas facilities (Subpart W of the EPA rule), and non-direct (end-user) emissions accounted for by fuel and GHG suppliers.
GHGs to Report: Download list by source category and process or unit type.
With one exception, the only GHGs required to be reported are carbon dioxide (CO2), methane (CH4), and nitrous oxide (N2O). The downloadable list specifies which of these three gases are required to be reported for each source category, or type of unit or process. The one case where an additional GHG is required to be reported is hydrofluorocarbons (HFCs) emitted from cooling units at electricity generating facilities.
Abbreviated Reporting for Small Sources: Download details
Facilities emitting more than 10,000 but less than 25,000 metric tons CO2e per year, and with stationary combustion as their only covered source category, may choose any method in the federal rule [40 CFR 98.33(a)] to quantify emissions and are required to report only a limited amount of information. The simplest method for most sources involves quantifying fuel use by fuel type according to company records, which can include billing records from the fuel supplier.
Fuel Usage for Emissions of 10,000 or 25,000 metric tons CO2e per year: For emissions of 10,000 metric tons CO2e, your facility would have to burn almost one million gallons of diesel fuel. Download Tables - Fuel Combustion Resulting in Emissions of 10,000 or 25,000 metric tons CO2e per year for annual and monthly usage of natural gas, diesel, gasoline, and LPG (commercial "propane").
Modifications from 40 CFR 98: In 20.2.300 NMAC, modifications are specified for some of the 40 CFR 98 Subparts that are incorporated by reference (download summary table). Underline/strikeout versions of the 40 CFR 98 Subparts show the changes made by 20.2.300 NMAC. The 40 CFR 98 Subparts were incorporated into 20.2.300 NMAC as amended in the Federal Register through October 28, 2010.
| 40 CFR 98 Subpart | Underline/Strikeout of Modified Subparts | Unmodified Subparts |
|---|---|---|
| Subpart A - General Provisions | ||
| Subpart C - General Stationary Fuel Combustion Sources | ||
| Subpart D - Electricity Generation | ||
| Subpart H - Cement Production | ||
| Subpart P - Hydrogen Production | ||
| Subpart R - Lead Production | ||
| Subpart S - Lime Manufacturing | ||
| Subpart V - Nitric Acid Production | ||
| Subpart X - Petrochemical Production | ||
| Subpart Y - Petroleum Refineries | ||
| Subpart GG - Zinc Production |
Requirements for CO2 emissions from acid gas removal units are specified in the rule text (20.2.300.107 NMAC).
Calculating CO2 Emissions from Stationary Combustion:
Facilities must calculate CO2 emissions using one of four methodological tiers, subject to certain restrictions based on unit size and fuel burned:
- Tier 1 uses an emission factor that is multiplied by annual fuel use and a default heating value for that fuel.
- Tier 2 uses an emission factor that is multiplied by annual fuel use and a measured heating value of that fuel. Units that combust municipal solid waste (MSW) or other solid fuels and generate steam must use steam production (in place of fuel use) and an emission factor.
- Tier 3 uses a calculation based on annual fuel use and measured carbon content of that fuel.
- Tier 4 requires a continuous emission monitoring system (CEMS).
- Download 40 CFR 98 flowchart on use of combustion tiers
- Download 20.2.300 NMAC flowchart on use of combustion tiers
20.2.300 NMAC modifies the 40 CFR 98 Subpart C restrictions on the use of these methodological tiers. In some cases, 20.2.300 NMAC requires a higher tier than under the EPA rule; however, 20.2.300 NMAC does not mandate the use of continuous emissions monitoring systems beyond federal requirements. Restrictions on the use of combustion methodology tiers are shown in these flowcharts:
De Minimis Combustion Sources: 20.2.300 NMAC follows the federal rule in excluding portable equipment, emergency generators and other emergency equipment.
Verification: Facilities emitting 25,000 metric tons CO2e or more per year are required to obtain third-party verification of the emissions report under 20.2.301 NMAC. Certain emissions streams, designated as "reporting-only" in 20.2.300.7.L NMAC, do not count towards the verification threshold and are not subject to verification.
For more information, contact Brad Musick by email or at 505-476-4321.