January 2002 Draft Agency Report Greenhouse Gases A Report to the Commission Draft Office of Environmental Policy, Analysis and Assessment TEXAS NATURAL RESOURCE CONSERVATION COMMISSION TEXAS NATURAL RESOURCE CONSERVATION COMMISSION DECISION OF THE COMMISSION REGARDING THE PETITIONS FOR RULEMAKING FILED BY HENRY, LOWERRE, AND FREDERICK, LLP ON BEHALF OF PUBLIC CITIZEN'S TEXAS OFFICE, CLEAN WATER ACTION, LONE STAR SIERRA CLUB, SUSTAINABLE ENERGY AND ECONOMIC DEVELOPMENT COALITION, AND TEXAS .CAMPAIGN FOR THE ENVIRONMENT Docket No. 2000-0845-RUL On August 23, 2000, the Texas Natural Resource Conservation Commission (Commission) considered the petitions for rule making filed by Henry, Lowerre, and Frederick, LLP on behalf of Public Citizen's Texas Office, Clean Water Action, Lone Star Sierra Club, Sustainable Energy and Economic Development Coalition, and Texas Campaign for the Environment. The first petition, filed on July 5, 2000, requests that the Commission initiate rulemaking to amend rules in 30 TAC Section 101.10, General Air Quality Rules, Emissions Inventory Requirements, to expand the scope of the data collected in the. annual air emissions inventory to include levels of carbon dioxide and methane. The second petition also filed on July 5, 2000 requests the Commission create a new 30TAC Chapter 121, Control of Greenhouse Gases, that would encourage reductions in .greenhouse gases and establish an advisory council to study the cost/benefit of reducing emissions of greenhouse gases by seven percent below 1990 levels. IT IS THEREFORE THE DECISION OF THE COMMISSION pursuant to Administrative Procedure Act (APA), Texas Government Code, §2001.021 and Texas Water Code §5.102 to instruct the Executive Director to initiate a rulemaking proceeding and to complete the following steps by December 1,2001: In completing these actions, the Executive Director shall consider any EPA guidance available. I) The Executive Director shall compile all information on quantities of greenhouse gases currently in the Commission's and EPA's databases. For those compound-s for which the Commission has not yet gathered information, Commission staff shall estimate those emissions; 2) The Executive Director shall survey the activities of other states and the federal government to assess what actions are being taken with respect to global warming, including any plans developed by the states; 3) The Executive Director shall consult with other state agencies and universities regarding the science, potential effects)and potential solutions to global warming; 4) The Executive Director shall estimate the reduction in greenhouse gases from activities already completed by the Commission and actions being completed at this time both at the state and federal levels; 5) The Executive Director shall create a registry of these emission reductions; 6) The Executive Director shall prepare a report summarizing and analyzing the findings of items one through four. The report should include recommendations to the Commission as to actions that the findings indicate are warranted., inc1uding any recommended changes or additions to existing commission rules: This Decision constitutes the decision. of the Commission required by the APA §2001.021(c). Issued date: TEXAS NATURAL RESOURCE CONSERVATION COMMISSION A REPORT TO THE COMMISSION Concerning Greenhouse Gases in Texas Docket No. 2000-0845-RUL January 2002 _________________________________ Jeffrey Saitas, P.E. Executive Director Draft Report i TABLE OF CONTENTS Commission Decision, 2000-0845-RUL, issued Aug 25, 2000. Overview iv Executive Summary v 1) Summary of Greenhouse Gas Emissions inTexas. A. Information in the TNRCC Emissions Inventory database. 1-1 B. Emissions information in the TRI database on CFC emissions. 1-2 C. Emissions information contained in other EPA and DOE databases. 1-5 D. Estimated Texas greenhouse gas emissions calculated and compiled by ICF. 1-10 2) State global warming plans. A. Summary of state planning actions. 2-1 B. Summaries of plans developed by other states: 2-3 thru 2-33 • Alabama • Maine • California • New Jersey • Delaware • North Carolina • Hawaii • Oregon • Illinois • Tennessee • Iowa • Vermont • Kentucky • Washington • New England Governors • Wisconsin C. EPA Guidance documents for developing Global Warming Action Plans. 2-35 3) Information from State Agencies and Universities on Global Warming. A. Summary of recent reports. • Climate Change Science, National Research Council 3-3 • Intergovernmental Panel on Climate Change Report 3-9 • Royal Academy Report on Sequestration 3-23 • Union of Concerned Scientists Gulf Coast Texas Report 3-25 • Global Warming: A Guide to the Science 3-31 B. Bibliography of recent science reports on global warming. 3-36 ii C. University Inputs: • Rice University 3-38 • Southwest Texas State University 3-39 • Texas A&M University 3-40 • Texas Tech University 3-42 • University of Houston 3-43 • University of Texas, Austin 3-44 D. State agency contacts: • Texas Department of Aging 3-46 • Texas Department of Parks and Wildlife 3-47 • Texas Department of Transportation 3-48 • Texas General Land Office 3-50 • Texas Public Utilities Commission 3-51 • Texas Water Development Board 3-52 • Lower Colorado River Authority 3-52 4) Estimated greenhouse gas emission reductions A. Estimated greenhouse gas emission reductions resulting from efficiency initiatives. 4-1 B. Estimated greenhouse gas emission reductions resulting from federal programs. 4-2 C. Estimated greenhouse gas emission reductions resulting from recent state legislation. 4-7 D. Estimated greenhouse gas emission reductions resulting from cogeneration projects 4-8 from refineries, petrochemical, and energy. E. Other federal, state, or local programs and initiatives. 4-11 5) Consolidated registry of emission reductions in Texas. 5-1 6) Analysis and recommendations for existing commission rules. 6-1 Appendix: A. Table A1-1, Acid Rain Database. A B. Programs for reduction in greenhouse gases. B-1 C. Methodology for estimating Texas GHG emissions. C-1 D. ICF GHG Emissions Estimates by Sector D iii OVERVIEW On July 5, 2000, the agency received two petitions for rulemaking from the law firm of Henry, Lowerre, and Frederick on behalf of Public Citizen’s Texas Office, Clean Water Action, Lone Star Sierra Club, Sustainable Energy and Economic Development Coalition, and Texas Campaign for the Environment. The first petition requested the agency to amend the general air rules to require the collection of carbon dioxide and methane emissions as part of the annual air emissions inventory. The second petition requested the commission to create new air rules to encourage reductions in greenhouse gases, promote the efficient use of energy, offer training in methods to reduce carbon dioxide and methane, and develop a climate change action plan. On August 23, 2000, the Commission responded to the petitions by issuing a commission decision (Docket No. 2000-0845-RUL) instructing the Executive Director to complete a number of specific steps by December 1, 2001: • Compile information on quantities of greenhouse gases currently in the Commission’s and EPA’s databases. Estimate emissions for which the Commission has not yet gathered information. • Survey activities of other states and the federal government with respect to global warming, including any plans developed by the states. • Consult with other state agencies and universities about the science, potential effects and potential solutions to global warming. • Estimate reductions in greenhouse gases from activities already completed by the Commission and actions being completed at this time both at the state and federal levels. • Create a registry of these emission reductions. • Prepare a report which summarizes and analyses the items above, including recommendations for changes or additions to existing commission rules. This report is organized in sections which correspond to each of the items in the commission directive. iv Executive Summary This report was written in response to a decision of the Commission to compile specific information about greenhouse gases including emissions within Texas, other state plans, university research, and estimated reductions from ongoing activities. Although the report contains summary information from recent scientific reports on climate change and global warming, no attempt has been made to justify or question the conclusions of those reports. Section 1 of this report provides information on quantities of greenhouse gases currently in the Commission’s and EPA’s databases. Heretofore, the agency has not specifically requested information on any greenhouse gases (including carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride) and there is very little information about these compounds in the annual Emissions Inventory (EI) or any other agency database. Electric utilities have reported carbon dioxide emissions to the EPA Acid Rain data base and the federal Toxic Release Inventory (TRI) contains information on chlorofluorocarbon (CFC) emissions since about 1990. In summary, approximately one-half of Texas greenhouse gas emissions from point sources are currently reported to an existing database. Based on a report from the U.S. Department of Energy, the total U.S. emissions of Carbon Dioxide, Methane, and Nitrous Oxide in 1999 amounted to about 1,795 million metric tons of carbon equivalents (MMTCE). This total represents an average annual U.S. increase of approximately 1.1 percent since