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Oil & Gas / Petroleum Refining Sector Oil & Gas / Petroleum Refining Sector AB 32 Scoping Plan Development AB 32 Scoping Plan Development Public Workshop Public Workshop California Air Resources Board Sacramento, CA April 11, 2008 1


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AB 32 Scoping Plan Development Public Workshop AB 32 Scoping Plan Development Public Workshop

California Air Resources Board Sacramento, CA April 11, 2008

Oil & Gas / Petroleum Refining Sector Oil & Gas / Petroleum Refining Sector

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Purpose of Workshop Purpose of Workshop

  • Present background information on the

sector

  • Propose potential options to reduce

GHG emissions

  • Solicit public comments
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Agenda Agenda

10:00-12:00am Oil & Gas Systems: Extraction, Processing, Transmission & Storage 12:00-1.00pm Lunch Break 1:00-3:00pm Petroleum Refining

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AB 32: The California Global Warming Solutions Act of 2006 AB 32: The California Global AB 32: The California Global Warming Solutions Act of 2006 Warming Solutions Act of 2006 Overview Overview & & Implementation Status Implementation Status

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What Is AB 32? What Is AB 32? What Is AB 32?

  • Assembly Bill 32 sets in statute 2020 GHG

emissions target to roll back to 1990 levels

  • ARB to monitor/regulate GHG sources

– GHG come from: 89% CO2 , 6% CH4 , 5% other

  • Air Resources Board lead, but:

– Cal/EPA and Climate Action Team continue coordinating statewide climate policy – Other agency authorities preserved

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Sectors Sectors Sectors

  • Agriculture
  • Forests
  • Business/Industry

– Cement – Semiconductor Manufacturing – Oil and Gas/Refining – General Combustion

  • Energy

(Electricity/Natural Gas)

  • Water
  • Transportation

– Land Use/VMT – Vehicles – Fuels

  • High GWP Gases
  • Recycling and

Waste Management

  • State Government

– Green buildings – State fleet

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ARB, “California 1990 Greenhouse Gas Emissions Level and 2020 Emissions Limit” (2007), www.arb.ca.gov/cc/ccei/inventory/1990_level.htm

California GHG Emissions California GHG Emissions

2004 GHG Emissions (480 MMTCO 2E )

Electricity Generation (Imports) 13% Electricity Generation (In State) 12% Residential 6% Commercial 3% Agriculture 6% Transportation 38% Industrial 20%

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Business and Industry Breakdown of GHGs Business and Industry Business and Industry Breakdown of GHGs Breakdown of GHGs

2004 Inventory by Subsector (Total = 125 MMTCO 2E)

High-GWP 11% Semiconductor 1% Cement, 8% Oil & Gas Systems, 12% Other, 32% Waste, 8% Refineries 28%

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Magnitude of the Challenge Magnitude of the Challenge Magnitude of the Challenge

ARB Emissions Inventory 100 200 300 400 500 600 700 1990 2000 2004 2020 2050

Year Million Metric Tons (CO2 Equivalent)

1990 Emission Baseline ~173 MMT CO2 e Reduction 80% Reduction ~341 MMT CO2 e

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ARB 2020 Emission Reductions Needed ARB 2020 Emission ARB 2020 Emission Reductions Needed Reductions Needed

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30 16 26

Adopted Strategies (AB 1493, Anti-Idling) Discrete Early Action Measures Other Early Actions Remaining Reductions (scoping plan, CAT) (AT LEAST 72 of 173 MMTCO2 E)

MMTCO2 E

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What Is the Scoping Plan? What Is the Scoping Plan? What Is the Scoping Plan?

  • Tell how CA meets GHG level by 2020
  • Provide vision for low carbon future 2050+

– Reduction goal of 80% below 1990 levels

  • Establish CA leadership on addressing

climate change

  • Maximize benefits to CA

– Criteria and toxic air pollutant co-benefits – Economic development (green technologies)

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How Will the Scoping Plan Be Developed? How Will the Scoping Plan Be Developed? How Will the Scoping Plan Be Developed?

  • Identify maximum technologically

feasible and cost-effective measures

  • Assess possible mechanisms to achieve

reductions

– Market-based, direct regs, incentives, etc.

  • Evaluate scenarios to meet 2020 limit
  • ARB is responsible for Scoping Plan

– ARB working closely with Cal/EPA & Climate Action Team Subgroups & workshops

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Tentative Scoping Plan Development Schedule Tentative Scoping Plan Tentative Scoping Plan Development Schedule Development Schedule

May 5, ‘08 Scoping Plan Scenarios Workshop (Sac) June 26, ‘08 Draft Scoping Plan released July ‘08 Workshops on draft plan (Statewide) Oct ‘08 Final Staff Proposal Released Nov 20-21, ’08 Board Hearing – Scoping Plan

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Contacts Contacts Contacts

  • Bill Blackburn (916) 322-7154

bblackbu@arb.ca.gov

  • Bruce Tuter (916) 324-5932

btuter@arb.ca.gov

  • Climate Change website

www.arb.ca.gov/cc/cc.htm

  • Program Design workshop

www.arb.ca.gov/cc/scopingplan/pgmdesign- sp/meetings/2008_Meeting_Schedule.pdf

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Oil & Gas Systems Oil & Gas Systems Extraction, Processing, Transmission, and Storage

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Outline Outline

  • Background
  • Potential Options to Reduce GHG

Emissions

  • Recent & Future Activities
  • Questions & Comments
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Oil and Gas Systems in California Oil and Gas Systems in California

  • 50,000 oil and 1,500 gas wells, including off-shore

platforms

  • Most oil wells located in the south, while most gas

fields located in the north

  • 250 million barrels of crude oil and 325 billion

cubic feet of natural gas in 2005

  • Over 3,000 miles of pipelines used for crude oil

and 12,000 miles for natural gas

  • Provides more than 20,000 direct and about

75,000 indirect jobs (CIPA and WSPA)

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GHG Emission Sources GHG Emission Sources

  • Combustion Emissions (mainly CO2

):

– Boilers – ICEs (pumps, compressors) – Steam generators – Dehydrators – Flaring

  • Fugitive Emissions (mainly CH4

):

– Leaks (valves, flanges, seals) – Venting (dehydrators, compressors)

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Current Requirements Current Requirements

  • District Rules

– Vary by district – Combustion and fugitive emissions – Criteria pollutants and toxics – Permit requirements

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Two Proposed Measures Two Proposed Measures

  • ‘Reduced Venting/Leaks from Oil and Gas

Systems’

– Approved by the Board October 25, 2007 – Early action measure – Transmission and storage activities – Adopt by December 2010

  • Propose second measure

– AB 32 Scoping Plan development – Extraction and processing activities – Adopt in 2011

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Potential Options to Reduce GHG Emissions Potential Options to Reduce GHG Emissions

  • Fugitive Emissions

– U.S. EPA Natural Gas STAR Program

Deploy cost-effective technologies

(e.g., replace high-bleed pneumatics with low-bleed pneumatics, replace glycol dehydrators with desiccant dehydrators)

Implement best management practices

(e.g., practice enhanced directed inspection and maintenance at various facilities)

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Potential Options to Reduce GHG Emissions Potential Options to Reduce GHG Emissions

  • Combustion Emissions

– Repair

Perform routine maintenance

– Retrofit

Add components to existing equipment

– Repower

Substitute parts without replacing the entire equipment

– Replace

Install new equipment or use new fuels

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1990-2020 GHG Emissions Transmission and Storage Activities 1990-2020 GHG Emissions Transmission and Storage Activities

Emissions Source 1990 2004 2020 2020 Reduction Combustion* 0.8 0.8 0.6 0.1 Fugitive 1.5 1.4 1.7 0.9 T o t a l 2.3 2.2 2.3 1.0

(in MMTCO2 E)

*Revised values (February 28, 2008)

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1990-2020 GHG Emissions Extraction and Processing Activities 1990-2020 GHG Emissions Extraction and Processing Activities

Emissions Source 1990 2004 2020 2020 Reduction Combustion 13.7 14.0 13.3 1.9 Fugitive 0.7 0.3 0.3 0.1 T o t a l 14.4 14.3 13.6 2.0

(in MMTCO2 E)

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Recent Activities Recent Activities

  • Literature study

– API, U.S. EPA, DOE, IPCC, etc.

  • Emissions inventory research
  • Discussions with CEC, CPUC, DOGGR,

and Air Districts

  • Begin site visits
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Future Activities Future Activities

  • More site visits
  • Form a working group
  • Conduct a survey

– A snapshot of Oil & Gas Systems in California – Activity factors (equipment types & counts, fuel use)

  • Improve emissions inventory
  • Possible workshop: Fall 2008
  • Develop regulations
  • Board hearings

– Transmission & Storage: December 2010 – Extraction & Processing: 2011

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For Further Information For Further Information

  • Oil &Gas/Refining Scoping Plan Development Website:

http://www.arb.ca.gov/cc/scopingplan/oil-gas-sp/oil-gas-sp.htm

  • Oil & Gas Systems Website:

http://www.arb.ca.gov/cc/venting-leaks/venting-leaks.htm

  • Subscribe to ARB List Serves:

http://www.arb.ca.gov/listserv/listserv.php

(Choose: “oil-gas-sp” and/or “venting-leaks”)

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ARB Points of Contact ARB Points of Contact

Barbara Fry, Chief Measures Assessment Branch bfry@arb.ca.gov (916)324-8023 Jim Nyarady, Manager Strategy Evaluation Section jnyarady@arb.ca.gov (916)322-8273 Win Setiawan, Lead wsetiawa@arb.ca.gov (916)324-0337

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Questions & Comments Questions & Comments

Please send your question or comment to: auditorium@calepa.ca.gov