DEPARTMENT OF ECOLOGY

The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.

(1) Definitions specific to this chapter:

(a) "Biomass" means nonfossilized and biodegradable organic material originating from plants, animals, or microorganisms, including products, by-products, residues and waste from agriculture, forestry, and related industries as well as the nonfossilized and biodegradable organic fractions of industrial and municipal wastes, including gases and liquids recovered from the decomposition of nonfossilized and biodegradable organic material.

(b) "Carbon dioxide equivalent" or "CO2e" means a metric measure used to compare the emissions from various greenhouse gases based upon their global warming potential.

(c) "Department of licensing" or "DOL" means the Washington state department of licensing.

(d) "Director" means the director of the department of ecology.

(e) "Ecology" means the Washington state department of ecology.

(f) "Facility" unless otherwise specified in any subpart of 40 C.F.R. Part 98 as adopted by ((January 1)) December 15, 2015, 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.

(g) "Greenhouse gas," "greenhouse gases," "GHG," and "GHGs" includes carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride. Beginning on January 1, 2012, "greenhouse gas" also includes any other gas or gases designated by ecology by rule in Table A-1 in WAC 173-441-040.

(h) "Person" includes:

(i) An owner or operator, as those terms are defined by the United States Environmental Protection Agency in its mandatory greenhouse gas reporting regulation in 40 C.F.R. Part 98, as adopted by ((January 1)) December 15, 2015; and

(ii) A supplier.

(i) "Product data" means data related to a facilty's production that is part of the annual GHG report.

(j) "Supplier" means any person who is:

(i) A motor vehicle fuel or special fuel supplier or ((a motor vehicle fuel)) importer, as those terms are defined in RCW ((82.36.010;)) 82.38.020; or

(ii) ((A special fuel supplier or a special fuel importer, as those terms are defined in RCW 82.38.020; or

(iii))) A distributor of aircraft fuel, as the term is defined in RCW 82.42.010.

(2) Definitions specific to suppliers. Suppliers must use the definitions found in the following ((regulations)) statutes unless the definition is in conflict with a definition found in subsection (1) of this section. These definitions do not apply to facilities.

(a) ((WAC 308-72-800;

(c) WAC 308-78-010)) Chapter 82.38 RCW; and

(b) Chapter 82.42 RCW.

(3) Definitions from 40 C.F.R. Part 98. For those terms not listed in subsection (1) or (2) of this section, the definitions found in 40 C.F.R. § 98.6 or a subpart as adopted in WAC 173-441-120, as adopted by ((January 1)) December 15, 2015, are adopted by reference as modified in WAC 173-441-120(2).

(4) Definitions from chapter 173-400 WAC. If no definition is provided in subsections (1) through (3) in this section, use the definition found in chapter 173-400 WAC.

Persons subject to the requirements of this chapter must submit GHG reports to ecology, as specified in this section.

(1) General. Follow the procedures for emission calculation, monitoring, quality assurance, missing data, recordkeeping, and reporting that are specified in each relevant section of this chapter.

(2) Schedule. The annual GHG report must be submitted as follows:

(a) Report submission due date:

(i) A person required to report GHG emissions to the United States Environmental Protection Agency under 40 C.F.R. Part 98 must submit the report required under this chapter to ecology no later than March 31st of each calendar year for GHG emissions in the previous calendar year.

(ii) A person not required to report GHG emissions to the United States Environmental Protection Agency under 40 C.F.R. Part 98 must submit the report required under this chapter to ecology no later than October 31st of each calendar year for GHG emissions in the previous calendar year.

(iii) Unless otherwise stated, if the final day of any time period falls on a weekend or a state holiday, the time period shall be extended to the next business day.

(b) Reporting requirements begin:

(i) For an existing facility or supplier that began operation before January 1, 2012, report emissions for calendar year 2012 and each subsequent calendar year.

(ii) For a new facility or supplier that begins operation on or after January 1, 2012, and becomes subject to the rule in the year that it becomes operational, report emissions beginning with the first operating month and ending on December 31st of that year. Each subsequent annual report must cover emissions for the calendar year, beginning on January 1st and ending on December 31st.

(iii) For any facility or supplier that becomes subject to this rule because of a physical or operational change that is made after January 1, 2012, report emissions for the first calendar year in which the change occurs.

(A) Facilities begin reporting with the first month of the change and ending on December 31st of that year. For a facility that becomes subject to this rule solely because of an increase in hours of operation or level of production, the first month of the change is the month in which the increased hours of operation or level of production, if maintained for the remainder of the year, would cause the facility or supplier to exceed the applicable threshold.

(B) Suppliers begin reporting January 1st and ending on December 31st the year of the change.

(C) For both facilities and suppliers, each subsequent annual report must cover emissions for the calendar year, beginning on January 1st and ending on December 31st.

(3) Content of the annual report. Each annual GHG report must contain the following information:

(a) Facility name or supplier name (as appropriate), facility or supplier ID number, and physical street address of the facility or supplier, including the city, state, and zip code. If the facility does not have a physical street address, then the facility must provide the latitude and longitude representing the geographic centroid or center point of facility operations in decimal degree format. This must be provided in a comma-delimited "latitude, longitude" coordinate pair reported in decimal degrees to at least four digits to the right of the decimal point.

(b) Year and months covered by the report.

(c) Date of submittal.

(d) For facilities, report annual emissions of each GHG (as defined in WAC 173-441-020) and each fluorinated heat transfer fluid, as follows:

(i) Annual emissions (including biogenic CO2) aggregated for all GHGs from all applicable source categories in WAC 173-441-120 and expressed in metric tons of CO2e calculated using Equation A-1 of WAC 173-441-030 (1)(b)(iii).

(ii) Annual emissions of biogenic CO2 aggregated for all applicable source categories in WAC 173-441-120, expressed in metric tons.

(iii) Annual emissions from each applicable source category in WAC 173-441-120, expressed in metric tons of each applicable GHG listed in subsections (3)(d)(iii)(A) through (F) of this section.

(A) Biogenic CO2.

(B) CO2 (including biogenic CO2).

(C) CH4.

(D) N2O.

(E) Each fluorinated GHG.

(F) For electronics manufacturing each fluorinated heat transfer fluid that is not also a fluorinated GHG as specified under WAC 173-441-040.

(iv) Emissions and other data for individual units, processes, activities, and operations as specified in the "data reporting requirements" section of each applicable source category referenced in WAC 173-441-120.

(v) Indicate (yes or no) whether reported emissions include emissions from a cogeneration unit located at the facility.

(vi) When applying subsection (3)(d)(i) of this section to fluorinated GHGs and fluorinated heat transfer fluids, calculate and report CO2e for only those fluorinated GHGs and fluorinated heat transfer fluids listed in WAC 173-441-040.

(vii) For reporting year 2014 and thereafter, you must enter into verification software specified by the director the data specified in the verification software records provision in each applicable recordkeeping section. For each data element entered into the verification software, if the software produces a warning message for the data value and you elect not to revise the data value, you may provide an explanation in the verification software of why the data value is not being revised. Whenever the use of verification software is required or voluntarily used, the file generated by the verification software must be submitted with the facility's annual GHG report.

(e) For suppliers, report the following information:

(i) Annual emissions of CO2, expressed in metric tons of CO2, as required in subsections (3)(e)(i)(A) and (B) of this section that would be emitted from the complete combustion or oxidation of the fuels reported to DOL as sold in Washington state during the calendar year.

(A) Aggregate biogenic CO2.

(B) Aggregate CO2 (including nonbiogenic and biogenic CO2).

(ii) All contact information reported to DOL not included in (a) of this subsection.

(f) A written explanation, as required under subsection (4) of this section, if you change emission calculation methodologies during the reporting period.

(g) Each data element for which a missing data procedure was used according to the procedures of an applicable subpart referenced in WAC 173-441-120 and the total number of hours in the year that a missing data procedure was used for each data element.

(h) A signed and dated certification statement provided by the designated representative of the owner or operator, according to the requirements of WAC 173-441-060 (5)(a).

(i) NAICS code(s) that apply to the facility or supplier.

(i) Primary NAICS code. Report the NAICS code that most accurately describes the facility or supplier's primary product/activity/service. The primary product/activity/service is the principal source of revenue for the facility or supplier. A facility or supplier that has two distinct products/activities/services providing comparable revenue may report a second primary NAICS code.

(ii) Additional NAICS code(s). Report all additional NAICS codes that describe all product(s)/activity(s)/service(s) at the facility or supplier that are not related to the principal source of revenue.

(j) Legal name(s) and physical address(es) of the highest-level United States parent company(s) of the owners (or operators) of the facility or supplier and the percentage of ownership interest for each listed parent company as of December 31st of the year for which data are being reported according to the following instructions:

(i) If the facility or supplier is entirely owned by a single United States company that is not owned by another company, provide that company's legal name and physical address as the United States parent company and report one hundred percent ownership.

(ii) If the facility or supplier is entirely owned by a single United States company that is, itself, owned by another company (e.g., it is a division or subsidiary of a higher-level company), provide the legal name and physical address of the highest-level company in the ownership hierarchy as the United States parent company and report one hundred percent ownership.

(iii) If the facility or supplier is owned by more than one United States company (e.g., company A owns forty percent, company B owns thirty-five percent, and company C owns twenty-five percent), provide the legal names and physical addresses of all the highest-level companies with an ownership interest as the United States parent companies and report the percent ownership of each company.

(iv) If the facility or supplier is owned by a joint venture or a cooperative, the joint venture or cooperative is its own United States parent company. Provide the legal name and physical address of the joint venture or cooperative as the United States parent company, and report one hundred percent ownership by the joint venture or cooperative.

(v) If the facility or supplier is entirely owned by a foreign company, provide the legal name and physical address of the foreign company's highest-level company based in the United States as the United States parent company, and report one hundred percent ownership.

(vi) If the facility or supplier is partially owned by a foreign company and partially owned by one or more United States companies, provide the legal name and physical address of the foreign company's highest-level company based in the United States, along with the legal names and physical addresses of the other United States parent companies, and report the percent ownership of each of these companies.

(vii) If the facility or supplier is a federally owned facility, report "U.S. Government" and do not report physical address or percent ownership.

(k) An indication of whether the facility includes one or more plant sites that have been assigned a "plant code" by either the Department of Energy's Energy Information Administration or by the Environmental Protection Agency's (EPA) Clean Air Markets Division.

(4) Emission calculations. In preparing the GHG report, you must use the calculation methodologies specified in the relevant sections of this chapter. For each source category, you must use the same calculation methodology throughout a reporting period unless you provide a written explanation of why a change in methodology was required.

(5) Verification. To verify the completeness and accuracy of reported GHG emissions, ecology may review the certification statements described in subsection (3)(h) of this section and any other credible evidence, in conjunction with a comprehensive review of the GHG reports and periodic audits of selected reporting facilities. Nothing in this section prohibits ecology from using additional information to verify the completeness and accuracy of the reports.

(6) Recordkeeping. A person that is required to report GHGs under this chapter must keep records as specified in this subsection. Retain all required records for at least three years from the date of submission of the annual GHG report for the reporting year in which the record was generated. Upon request by ecology, the records required under this section must be made available to ecology. Records may be retained off-site if the records are readily available for expeditious inspection and review. For records that are electronically generated or maintained, the equipment or software necessary to read the records must be made available, or, if requested by ecology, electronic records must be converted to paper documents. You must retain the following records, in addition to those records prescribed in each applicable section of this chapter:

(a) A list of all units, operations, processes, and activities for which GHG emissions were calculated.

(b) The data used to calculate the GHG emissions for each unit, operation, process, and activity, categorized by fuel or material type. These data include, but are not limited to, the following information:

(i) The GHG emissions calculations and methods used.

(ii) Analytical results for the development of site-specific emissions factors.

(iii) The results of all required analyses for high heat value, carbon content, and other required fuel or feedstock parameters.

(iv) Any facility operating data or process information used for the GHG emission calculations.

(c) The annual GHG reports.

(d) Missing data computations. For each missing data event, also retain a record of the cause of the event and the corrective actions taken to restore malfunctioning monitoring equipment.

(e) Owners or operators required to report under WAC 173-441-030(1) must keep a written GHG monitoring plan (monitoring plan, plan).

(i) At a minimum, the GHG monitoring plan must include the following elements:

(A) Identification of positions of responsibility (i.e., job titles) for collection of the emissions data.

(B) Explanation of the processes and methods used to collect the necessary data for the GHG calculations.

(C) Description of the procedures and methods that are used for quality assurance, maintenance, and repair of all continuous monitoring systems, flow meters, and other instrumentation used to provide data for the GHGs reported under this chapter.

(ii) The GHG monitoring plan may rely on references to existing corporate documents (e.g., standard operating procedures, quality assurance programs under appendix F to 40 C.F.R. Part 60 or appendix B to 40 C.F.R. Part 75, and other documents) provided that the elements required by (e)(i) of this subsection are easily recognizable.

(iii) The owner or operator must revise the GHG monitoring plan as needed to reflect changes in production processes, monitoring instrumentation, and quality assurance procedures; or to improve procedures for the maintenance and repair of monitoring systems to reduce the frequency of monitoring equipment downtime.

(iv) Upon request by ecology, the owner or operator must make all information that is collected in conformance with the GHG monitoring plan available for review during an audit. Electronic storage of the information in the plan is permissible, provided that the information can be made available in hard copy upon request during an audit.

(f) The results of all required certification and quality assurance tests of continuous monitoring systems, fuel flow meters, and other instrumentation used to provide data for the GHGs reported under this chapter.

(g) Maintenance records for all continuous monitoring systems, flow meters, and other instrumentation used to provide data for the GHGs reported under this chapter.

(h) Suppliers must retain any other data specified in WAC 173-441-130(5).

(7) Annual GHG report revisions.

(a) A person must submit a revised annual GHG report within forty-five days of discovering that an annual GHG report that the person previously submitted contains one or more substantive errors. The revised report must correct all substantive errors.

(b) Ecology may notify the person in writing that an annual GHG report previously submitted by the person contains one or more substantive errors. Such notification will identify each such substantive error. The person must, within forty-five days of receipt of the notification, either resubmit the report that, for each identified substantive error, corrects the identified substantive error (in accordance with the applicable requirements of this chapter) or provide information demonstrating that the previously submitted report does not contain the identified substantive error or that the identified error is not a substantive error.

(c) A substantive error is an error that impacts the quantity of GHG emissions reported or otherwise prevents the reported data from being validated or verified.

(d) Notwithstanding (a) and (b) of this subsection, upon request by a person, ecology may provide reasonable extensions of the forty-five day period for submission of the revised report or information under (a) and (b) of this subsection. If ecology receives a request for extension of the forty-five day period, by e-mail to ghgreporting@ecy.wa.gov, at least two business days prior to the expiration of the forty-five day period, and ecology does not respond to the request by the end of such period, the extension request is deemed to be automatically granted for thirty more days. During the automatic thirty-day extension, ecology will determine what extension, if any, beyond the automatic extension is reasonable and will provide any such additional extension.

(e) The owner or operator must retain documentation for three years to support any revision made to an annual GHG report.

(8) Calibration and accuracy requirements. The owner or operator of a facility that is subject to the requirements of this chapter must meet the applicable flow meter calibration and accuracy requirements of this subsection. The accuracy specifications in this subsection do not apply where either the use of company records (as defined in WAC 173-441-020(3)) or the use of "best available information" is specified in an applicable subsection of this chapter to quantify fuel usage and/or other parameters. Further, the provisions of this subsection do not apply to stationary fuel combustion units that use the methodologies in 40 C.F.R. Part 75 to calculate CO2 mass emissions. Suppliers subject to the requirements of this chapter must meet the calibration accuracy requirements in chapters 308-72, 308-77, and 308-78 WAC.

(a) Except as otherwise provided in (d) through (f) of this subsection, flow meters that measure liquid and gaseous fuel feed rates, process stream flow rates, or feedstock flow rates and provide data for the GHG emissions calculations, must be calibrated prior to January 1, 2012, using the procedures specified in this subsection when such calibration is specified in a relevant section of this chapter. Each of these flow meters must meet the applicable accuracy specification in (b) or (c) of this subsection. All other measurement devices (e.g., weighing devices) that are required by a relevant subsection of this chapter, and that are used to provide data for the GHG emissions calculations, must also be calibrated prior to January 1, 2012; however, the accuracy specifications in (b) and (c) of this subsection do not apply to these devices. Rather, each of these measurement devices must be calibrated to meet the accuracy requirement specified for the device in the applicable subsection of this chapter, or, in the absence of such accuracy requirement, the device must be calibrated to an accuracy within the appropriate error range for the specific measurement technology, based on an applicable operating standard including, but not limited to, manufacturer's specifications and industry standards. The procedures and methods used to quality-assure the data from each measurement device must be documented in the written monitoring plan, pursuant to subsection (6)(e)(i)(C) of this section.

(i) All flow meters and other measurement devices that are subject to the provisions of this subsection must be calibrated according to one of the following: You may use the manufacturer's recommended procedures; an appropriate industry consensus standard method; or a method specified in a relevant section of this chapter. The calibration method(s) used must be documented in the monitoring plan required under subsection (6)(e) of this section.

(ii) For facilities and suppliers that become subject to this chapter after January 1, 2012, all flow meters and other measurement devices (if any) that are required by the relevant subsection(s) of this chapter to provide data for the GHG emissions calculations must be installed no later than the date on which data collection is required to begin using the measurement device, and the initial calibration(s) required by this subsection (if any) must be performed no later than that date.

(iii) Except as otherwise provided in (d) through (f) of this subsection, subsequent recalibrations of the flow meters and other measurement devices subject to the requirements of this subsection must be performed at one of the following frequencies:

(A) You may use the frequency specified in each applicable subsection of this chapter.

(B) You may use the frequency recommended by the manufacturer or by an industry consensus standard practice, if no recalibration frequency is specified in an applicable subsection.

(b) Perform all flow meter calibration at measurement points that are representative of the normal operating range of the meter. Except for the orifice, nozzle, and venturi flow meters described in (c) of this subsection, calculate the calibration error at each measurement point using Equation A–2 of this subsection. The terms "R" and "A" in Equation A–2 must be expressed in consistent units of measure (e.g., gallons/minute, ft3/min). The calibration error at each measurement point must not exceed 5.0 percent of the reference value.

Where:

(c) For orifice, nozzle, and venturi flow meters, the initial quality assurance consists of in situ calibration of the differential pressure (delta-P), total pressure, and temperature transmitters.

(i) Calibrate each transmitter at a zero point and at least one upscale point. Fixed reference points, such as the freezing point of water, may be used for temperature transmitter calibrations. Calculate the calibration error of each transmitter at each measurement point, using Equation A–3 of this subsection. The terms "R," "A," and "FS" in Equation A–3 of this subsection must be in consistent units of measure (e.g., milliamperes, inches of water, psi, degrees). For each transmitter, the CE value at each measurement point must not exceed 2.0 percent of full-scale. Alternatively, the results are acceptable if the sum of the calculated CE values for the three transmitters at each calibration level (i.e., at the zero level and at each upscale level) does not exceed 6.0 percent.

Where:

(ii) In cases where there are only two transmitters (i.e., differential pressure and either temperature or total pressure) in the immediate vicinity of the flow meter's primary element (e.g., the orifice plate), or when there is only a differential pressure transmitter in close proximity to the primary element, calibration of these existing transmitters to a CE of 2.0 percent or less at each measurement point is still required, in accordance with (c)(i) of this subsection; alternatively, when two transmitters are calibrated, the results are acceptable if the sum of the CE values for the two transmitters at each calibration level does not exceed 4.0 percent. However, note that installation and calibration of an additional transmitter (or transmitters) at the flow monitor location to measure temperature or total pressure or both is not required in these cases. Instead, you may use assumed values for temperature and/or total pressure, based on measurements of these parameters at a remote location (or locations), provided that the following conditions are met:

(A) You must demonstrate that measurements at the remote location(s) can, when appropriate correction factors are applied, reliably and accurately represent the actual temperature or total pressure at the flow meter under all expected ambient conditions.

(B) You must make all temperature and/or total pressure measurements in the demonstration described in (c)(ii)(A) of this subsection with calibrated gauges, sensors, transmitters, or other appropriate measurement devices. At a minimum, calibrate each of these devices to an accuracy within the appropriate error range for the specific measurement technology, according to one of the following: You may calibrate using a manufacturer's specification or an industry consensus standard.

(C) You must document the methods used for the demonstration described in (c)(ii)(A) of this subsection in the written GHG monitoring plan under subsection (6)(e)(i)(C) of this section. You must also include the data from the demonstration, the mathematical correlation(s) between the remote readings and actual flow meter conditions derived from the data, and any supporting engineering calculations in the GHG monitoring plan. You must maintain all of this information in a format suitable for auditing and inspection.

(D) You must use the mathematical correlation(s) derived from the demonstration described in (c)(ii)(A) of this subsection to convert the remote temperature or the total pressure readings, or both, to the actual temperature or total pressure at the flow meter, or both, on a daily basis. You must then use the actual temperature and total pressure values to correct the measured flow rates to standard conditions.

(E) You must periodically check the correlation(s) between the remote and actual readings (at least once a year), and make any necessary adjustments to the mathematical relationship(s).

(d) Fuel billing meters are exempted from the calibration requirements of this section and from the GHG monitoring plan and recordkeeping provisions of subsections (6)(e)(i)(C) and (g) of this section, provided that the fuel supplier and any unit combusting the fuel do not have any common owners and are not owned by subsidiaries or affiliates of the same company. Meters used exclusively to measure the flow rates of fuels that are used for unit startup are also exempted from the calibration requirements of this section.

(e) For a flow meter that has been previously calibrated in accordance with (a) of this subsection, an additional calibration is not required by the date specified in (a) of this subsection if, as of that date, the previous calibration is still active (i.e., the device is not yet due for recalibration because the time interval between successive calibrations has not elapsed). In this case, the deadline for the successive calibrations of the flow meter must be set according to one of the following: You may use either the manufacturer's recommended calibration schedule or you may use the industry consensus calibration schedule.

(f) For units and processes that operate continuously with infrequent outages, it may not be possible to meet the deadline established in (a) of this subsection for the initial calibration of a flow meter or other measurement device without disrupting normal process operation. In such cases, the owner or operator may postpone the initial calibration until the next scheduled maintenance outage. The best available information from company records may be used in the interim. The subsequent required recalibrations of the flow meters may be similarly postponed. Such postponements must be documented in the monitoring plan that is required under subsection (6)(e) of this section.

(g) If the results of an initial calibration or a recalibration fail to meet the required accuracy specification, data from the flow meter must be considered invalid, beginning with the hour of the failed calibration and continuing until a successful calibration is completed. You must follow the missing data provisions provided in the relevant missing data sections during the period of data invalidation.

(9) Measurement device installation. 40 C.F.R. § 98.3(j) and 40 C.F.R. § 98.3(d) as adopted by ((January 1)) December 15, 2015, are adopted by reference as modified in WAC 173-441-120(2).

(1) The materials incorporated by reference by EPA in 40 C.F.R. § 98.7, as adopted by ((January 1)) December 15, 2015, are incorporated by reference in this chapter for use in the sections of this chapter that correspond to the sections of 40 C.F.R. Part 98 referenced here.

(2) Table A–2 of this section provides a conversion table for some of the common units of measure used in this chapter.

The owner or operator of a facility required to make a compliance progress determination under WAC 173-442-090 or voluntarily participating under WAC 173-442-060(4) must have the facility's annual GHG reports verified by a third party as specified in this section.

(1) Annual GHG reports must be third-party verified each emissions year that:

(a) The facility is required to make a compliance progress determination under WAC 173-442-090;

(b) The facility is voluntarily participating under WAC 173-442-060(4);

(c) Is part of a baseline calculation for a new entrant under WAC 173-442-070(2); or

(d) For the first year after no longer meeting the requirements of (a) through (c) of this subsection unless the operations of the facility are changed such that all applicable GHG emitting processes and operations listed in WAC 173-441-120 permanently cease to operate.

(2) Emissions subject to third-party verification. All applicable GHG emissions under WAC 173-442-030 through 173-442-050 are subject to the requirements of this section.

(3) Verification standards. The third-party verifier must certify that annual GHG reports meet the following conditions:

(a) Annual GHG reports must be consistent with the relevant requirements and methods in this chapter.

(b) The absolute value of any discrepancy, omission, or misreporting, or aggregation of the three, must be less than five percent of total reported covered emissions (metric tons of CO2e) or the verification will result in an adverse verification statement. This standard also separately applies to any covered product data in the annual GHG report.

(i) "Discrepancies" means any differences between the reported covered emissions or covered product data and the third-party verifier's review of covered emissions or covered product data for a data source or product data subject to this section.

(ii) "Omissions" means any covered emissions or covered product data the third-party verifier concludes must be part of the annual GHG report, but were not included by the reporting entity in the annual GHG report.

(iii) "Misreporting" means duplicate, incomplete or other covered emissions the third-party verifier concludes should, or should not, be part of the annual GHG report or duplicate or other product data the verifier concludes should not be part of the annual GHG report.

(iv) "Total reported covered emissions or covered product data" means the total annual reporting entity covered emissions or total reported covered product data for which the third-party verifier is conducting an assessment.

(4) Verification services.

(a) Full verification is required at least once every three reporting years. The first year of third-party verification for a facility must be full verification. An owner or operator may choose to obtain less intensive verification services for the remaining two years in the three-year period as long as:

(i) No year in the three-year period has an adverse verification statement;

(ii) The third-party verifier can provide findings with a reasonable level of assurance;

(iii) There has not been a change in the third-party verifier;

(iv) There has not been a change in operational control of the facility; and

(v) There has not been a significant change in sources or emissions. A difference in emissions of greater than twenty-five percent relative to the preceding year's emissions is considered significant unless that change can be directly shown to result from a verifiable change in product data.

(b) Full verification. A full verification report must be in a format specified by ecology and contain:

(i) Documentation identifying the facility reporting emissions and the scope of emissions verified in the report.

(ii) Documentation identifying the third-party verifier, including all relevant information about the third-party verifier in subsection (7)(a) of this section and the names, roles, and sector specific qualifications (if any) of all individuals working on the verification report.

(iii) Documentation demonstrating and certifying that the requirements of subsection (7)(b) and (c) of this section have been met.

(iv) A verification plan that details the data and methodologies used to verify the annual GHG report and schedule describing when the verification services occurred. This must include a sampling plan that describes how the third-party verifier prioritized which emissions to verify and a summary of the data checks used to determine the reliability of the annual GHG report. Full verification requires a more complete sampling of data and additional data checks than less intensive verification.

(v) Documentation of the third-party verifier's review of facility operations to identify applicable GHG emissions sources and product data. Any applicable GHG emissions sources or product data not included in the annual GHG report must be identified. The third-party verifier must also ensure that the reported current NAICS code(s) accurately represents the activities on-site.

(vi) Documentation of any corrections made to the annual GHG report.

(vii) Documentation supporting the third-party verifiers' findings evaluating if the annual GHG report is compliant with the requirements in subsection (3) of this section. This must include a log of any issues (if any) identified in the course of verification, their potential impact on the quality of the annual GHG report, and their resolution.

(viii) The individuals conducting the third-party verification must certify that the verification report is true, accurate, and complete to the best of their knowledge and belief.

(ix) Information about the required on-site visit, including date(s) and a description of the verification services conducted on-site. At least one accredited verifier in the verification team, including the sector specific verifier, if applicable, must at a minimum make one site visit, during each year full verification is required. The third-party verifier must visit the headquarters or other location of central data management when the facility is a supplier of petroleum products or supplier of natural gas and natural gas liquids. During the site visit, the third-party verifier must:

(A) Confirm that all applicable emissions are included in the annual GHG report.

(B) Check that all sources specified in the annual GHG report are identified appropriately.

(C) Review and understand the data management systems used by the owners or operators to track, quantify, and report GHG emissions and, when applicable, product data and fuel transactions. The third-party verifier must evaluate the uncertainty and effectiveness of these systems.

(D) Interview key personnel.

(E) Make direct observations of equipment for data sources and equipment supplying data for sources determined to be high risk.

(F) Assess conformance with measurement accuracy, data capture, and missing data substitution requirements.

(G) Review financial transactions to confirm fuel, feedstock, and product data, and confirming the complete and accurate reporting of required data such as facility fuel suppliers, fuel quantities delivered, and if fuel was received directly from an interstate pipeline.

(c) Less intensive verification. A less intensive verification report must be in a format specified by ecology and meet the requirements of subsection (4)(b)(i) through (viii) of this section. Less intensive verification of an annual GHG report allows for less detailed data checks and document reviews of the annual GHG report based on the analysis and risk assessment in the most current sampling plan developed as part of the most current full verification.

(5) Annual GHG report corrections. Owners or operators subject to this section must correct errors in their annual GHG report.

(a) Corrections are required if errors are identified by:

(i) The third-party verifier;

(ii) The owner or operator;

(iii) Ecology; or

(iv) EPA.

(b) The owner or operator must fix all correctable errors that affect covered emissions, noncovered emissions, or covered product data in the submitted emissions data report, and submit a revised emissions data report to ecology. Failure to do so will result in an adverse verification statement.

(c) Failure to fix correctable errors that do not affect covered emissions, noncovered emissions, or covered product data represents a nonconformance with this chapter but does not, absent other errors, result in an adverse verification statement.

(d) The owner or operator must maintain documentation to support any revisions made to the initial emissions data report. Documentation for all emissions data report submittals must be retained by the reporting entity for ten years.

(6) Timing. The third-party verifier must submit a complete verification report to ecology for each year as required under subsection (1) of this section no later than one hundred fifty days after the report submission due date for the facility, specified in WAC 173-441-050(2) for GHG emissions occurring in the previous calendar year. Any corrections to the annual GHG report or verification report must be submitted to ecology no later than forty-five days after discovery of the error. Records must be retained following the requirements of WAC 173-441-050(6).

(7) Eligible third-party verifiers.

(a) Owners or operators subject to this section must have their annual GHG report verified by a third-party verifier certified by ecology. Certification requires:

(i) Registering as a third-party verifier with ecology. Registration is required for both the verification organization and all individuals performing verification services for the verification organization.

(ii) Demonstrating to ecology's satisfaction that the third-party verifier has sufficient knowledge of the relevant methods and protocols in this chapter. Certification may be limited to certain types or sources of emissions.

(iii) Active accreditation or recognition as a third-party verifier under at least one of the following GHG programs:

(A) California ARB's Mandatory Reporting of Greenhouse Gas Emissions program;

(B) California Climate Action Registry;

(C) The Climate Registry;

(D) Climate Action Reserve;

(E) American National Standards Institute (ANSI); or

(F) Other GHG verification standard approved by ecology.

(b) An owner or operator must not use the same third-party verifier (either organization or individuals) for a period of more than six consecutive years. The owner or operator must wait at least three years before using the previous third-party verifier to verify their annual GHG reports.

(c) An owner or operator and third-party verifier must certify that there is not a conflict of interest in verifying the annual GHG report. The potential for a conflict of interest must be deemed to be high where:

(i) The third-party verifier and facility share any management staff or board of directors membership, or any of the senior management staff of the facility have been employed by the third-party verifier, or vice versa, within the previous five years; or

(ii) Any employee of the third-party verifier, or any employee of a related entity, or a subcontractor who is a member of the verification team has provided to the facility any services within the previous five years.

(iii) Any staff member of the third-party verifier provides any type of nonmonetary incentive to a facility to secure a verification services contract.

(8) Ecology verification. Ecology retains full authority in determining if an annual GHG report contains a discrepancy, omission, or misreporting, or any aggregation of the three, that impacts the verification status of the annual GHG report. Ecology may issue an adverse verification statement for an annual GHG report even if the annual GHG report has received a positive verification statement from the third-party verifier. Ecology may also issue an adverse verification statement for:

(a) Failure to submit a complete annual GHG report in a timely manner;

(b) Failure to complete third-party verification if required by this subsection; or

(c) Other forms of noncompliance with this chapter.

(1) Ecology may assign an emissions level to any annual GHG report that:

(a) Failed to submit a complete annual GHG report by the report submission due date, specified in WAC 173-441-050(2);

(b) Failed to meet the third-party verification requirements in WAC 173-441-085;

(c) Has an adverse verification statement; or

(d) Ecology determines the absolute value of any discrepancy, omission, or misreporting, or aggregation of the three, is at least five percent of total reported covered emissions (metric tons of CO2e). This standard also separately applies to any covered product data in the annual GHG report.

(i) "Discrepancies" means any differences between the reported covered emissions or covered product data and ecology's review of covered emissions or covered product data for a data source or product data.

(ii) "Omissions" means any covered emissions or covered product data ecology concludes must be part of the annual GHG report, but were not included by the reporting entity in the annual GHG report.

(iii) "Misreporting" means duplicate, incomplete or other covered emissions ecology concludes should, or should not, be part of the annual GHG report or duplicate or other product data ecology concludes should not be part of the annual GHG report.

(iv) "Total reported covered emissions or covered product data" means the total annual reporting entity covered emissions or total reported covered product data for which ecology is conducting an assessment.

(2) The assigned emissions level must be used when determining compliance with chapter 173-442 WAC.

(3) Ecology must use conservative assumptions when setting the assigned emissions level to avoid underestimating emissions in a compliance year or overestimating emissions in a baseline year.

(a) Within five working days of a written request by ecology, the third-party verifier (if applicable) must provide any available verification services information or correspondence related to the emissions data.

(b) Within five working days of a written request by ecology, the owner or operator of a facility must provide the data that is required to calculate GHG emissions for the facility according to the requirements of this chapter, the preliminary or final detailed verification report prepared by the third-party verifier (if applicable), and other information requested by ecology, including the operating days and hours of the facility during the data year. The owner or operator must also make available personnel who can assist ecology's determination of an assigned emissions level for the data year.

(4) Ecology may adjust the assigned emissions level if the owner or operator is able to obtain a positive verification statement for the annual GHG report at a later date.

(1) Violations. Any violation of any requirement of this chapter must be a violation of chapter 70.94 RCW and subject to enforcement as provided in that chapter. A violation includes, but is not limited to, failure to report GHG emissions by the reporting deadline, failure to report accurately, failure to collect data needed to calculate GHG emissions, failure to continuously monitor and test as required, failure to retain records needed to verify the amount of GHG emissions, failure to calculate GHG emissions following the methodologies specified in this chapter, failure to have the annual GHG report third-party verified, and failure to pay the required reporting fee. Each day and each metric ton CO2e of emissions of a violation constitutes a separate violation.

(2) Enforcement responsibility. Ecology must enforce the requirements of this chapter unless ecology approves a local air authority's request to enforce the requirements for persons operating within the authority's jurisdiction.

(1) Fee determination. All persons required to report or voluntarily reporting under WAC 173-441-030 must pay a reporting fee for each year they submit a report to ecology. Ecology must establish reporting fees based on workload using the process outlined below. The fees must be sufficient to cover ecology's costs to administer the GHG emissions reporting program.

(2) Fee eligible activities. All costs of activities associated with administering this reporting program, as described in RCW 70.94.151(2), are fee eligible.

(3) Workload analysis and budget development. Each biennium, ecology must conduct a workload analysis and develop a budget based on the process outlined below:

(a) Ecology must conduct a workload analysis projecting resource requirements for administering the reporting program, organized by categories of fee eligible activities, for the purpose of preparing the budget. Ecology must prepare the workload analysis for the two-year period corresponding to each biennium. The workload analysis must identify the fee eligible administrative activities related to the reporting program that it will perform during the biennium and must estimate the resources required to perform these activities.

(b) Ecology must prepare a budget for administering the reporting program for the two-year period corresponding to each biennium. Ecology must base the budget on the resource requirements identified in the workload analysis for the biennium and must take into account the reporting program account balance at the start of the biennium.

(4) Allocation methodology. Ecology must allocate the reporting program budget among the persons required to report or voluntarily reporting under WAC 173-441-030 according to the following components:

(a) The reporting fee for an owner or operator of a facility required to report or voluntarily reporting under WAC 173-441-030 is calculated by the equal division of ((seventy-five)) ninety percent of the budget amount by the total number of facilities reporting GHG emissions under this chapter in a given calendar year. A person required to report or voluntarily reporting multiple facilities under WAC 173-441-030 must pay a fee for each facility reported.

(b) The reporting fee for a supplier required to report or voluntarily reporting under WAC 173-441-030 is calculated by the equal division of ((twenty-five)) ten percent of the budget amount by the total number of suppliers reporting GHG emissions under this chapter in a given calendar year.

(c) A person required to report or voluntarily reporting under WAC 173-441-030 both as an owner or operator of a facility or facilities and as a supplier must pay a fee for each facility reported and a fee for reporting as a supplier.

(5) Fee schedule. Ecology must issue annually a fee schedule reflecting the reporting fee to be paid per facility or supplier. Ecology must base the fee schedule on the budget and workload analysis described above and conducted each biennium. Ecology must publish the fee schedule for the following year on or before October 31st of each year.

(6) Fee payments. Fees specified in this section must be paid within sixty days of receipt of ecology's billing statement. All fees collected under this chapter must be made payable to the Washington department of ecology. A late fee surcharge of fifty dollars or ten percent of the fee, whichever is more, may be assessed for any fee received after ninety days past the due date for fee payment.

(7) Dedicated account. Ecology must deposit all reporting fees they collect in the air pollution control account.

Owners and operators of facilities that are subject to this chapter must follow the requirements of this chapter and all subparts of 40 C.F.R. Part 98 listed in Table 120-1 of this section. If a conflict exists between a provision in WAC 173-441-050(3) through 173-441-080 and any applicable provision of this section, the requirements of this section must take precedence.

(1) Source categories and calculation methods for facilities. An owner or operator of a facility subject to the requirements of this chapter must report GHG emissions, including GHG emissions from biomass, from all applicable source categories in Washington state listed in Table 120-1 of this section using the methods incorporated by reference in Table 120-1. Table 120-1 and subsection (2) of this section list modifications and exceptions to calculation methods adopted by reference in this section. CO2 collected and transferred off-site must be included in the emissions calculation as required under WAC 173-441-030 (1)(b)(iv) using the methods established in 40 C.F.R. Part 98 Subpart PP as adopted by ((January 1)) December 15, 2015. Owners or operators are not required to comply with requirements in Subpart PP that do not address CO2 collected and transferred off-site.

(2) Modifications and exceptions to calculation methods adopted by reference. Except as otherwise specifically provided:

(a) Wherever the term "administrator" is used in the rules incorporated by reference in this chapter, the term "director" must be substituted.

(b) Wherever the term "EPA" is used in the rules incorporated by reference in this chapter, the term "ecology" must be substituted.

(c) Wherever the term "United States" is used in the rules incorporated by reference in this chapter, the term "Washington state" must be substituted.

(d) Wherever a calculation method adopted by reference in Table 120-1 of this section or a definition adopted by reference from 40 C.F.R. Part 98.6 refers to another subpart or paragraph of 40 C.F.R. Part 98:

(i) If Table 120-2 of this section lists the reference, then replace the reference with the corresponding reference to this chapter as specified in Table 120-2.

(ii) If the reference is to a subpart or subsection of a reference listed in Table 120-2 of this section, then replace the reference with the appropriate subsection of the corresponding reference to this chapter as specified in Table 120-2.

(iii) If the reference is to a subpart or paragraph of 40 C.F.R. Part 98 Subparts C through UU incorporated by reference in Table 120-1, then use the existing reference except as modified by this chapter.

(e) For manure management, use the following subsections instead of the corresponding subsections in 40 C.F.R. § 98.360 as adopted by ((January 1)) December 15, 2015.

(i) 40 C.F.R. § 98.360(a): This source category consists of livestock facilities with manure management systems.

(A) § 98.360 (a)(1) is not adopted by reference.

(B) § 98.360 (a)(2) is not adopted by reference.

(ii) 40 C.F.R. § 98.360(b): A manure management system (MMS) is a system that stabilizes and/or stores livestock manure, litter, or manure wastewater in one or more of the following system components: Uncovered anaerobic lagoons, liquid/slurry systems with and without crust covers (including, but not limited to, ponds and tanks), storage pits, digesters, solid manure storage, dry lots (including feedlots), high-rise houses for poultry production (poultry without litter), poultry production with litter, deep bedding systems for cattle and swine, manure composting, and aerobic treatment.

(iii) 40 C.F.R. § 98.360(c): This source category does not include system components at a livestock facility that are unrelated to the stabilization and/or storage of manure such as daily spread or pasture/range/paddock systems or land application activities or any method of manure utilization that is not listed in § 98.360(b) as modified in WAC 173-441-120 (2)(e)(ii).

(iv) 40 C.F.R. § 98.360(d): This source category does not include manure management activities located off-site from a livestock facility or off-site manure composting operations.

(v) 40 C.F.R. § 98.361: Livestock facilities must report GHG emissions under this subpart if the facility contains a manure management system as defined in 98.360(b) as modified in WAC 173-441-120 (2)(e)(ii), and meets the requirements of WAC 173-441-030(1).

(vi) 40 C.F.R. § 98.362 (b) and (c) are not adopted by reference.

(vii) 40 C.F.R. § 98.362(a), 40 C.F.R. § 98.363 through 40 C.F.R. § 98.368, Equations JJ-2 through JJ-15, and Tables JJ-2 through JJ-7 as adopted by ((January 1)) December 15, 2015, remain unchanged unless otherwise modified in this chapter.

(viii) CO2 from combustion of gas from manure management must also be included in calculating emissions for reporting and determining if the reporting threshold is met.

(f) For electrical transmission and distribution equipment use facilities where the electrical power system crosses Washington state boundaries, limit the GHG report to emissions that occur in Washington state using one of the following methods:

(i) Direct, state specific measurements;

(ii) Prorate the total emissions of the electric power system based upon either nameplate capacity or transmission line miles in the respective service areas by state using company records. Update the nameplate capacity or transmission line miles factor each reporting year and include the data used to establish the nameplate capacity or transmission line miles factor with your annual GHG report((.));

(iii) Prorate the total emissions of the electric power system based upon population in the respective service areas by state using the most recent U.S. Census data. Update the population factor each reporting year and include the data used to establish the population factor with your annual GHG report.

(g) Use the following method to obtain specific version or date references for any reference in 40 C.F.R. Part 98 that refers to any document not contained in 40 C.F.R. Part 98:

(i) If the reference in 40 C.F.R. Part 98 includes a specific version or date reference, then use the version or date as specified in 40 C.F.R. Part 98.

(ii) If the reference in 40 C.F.R. Part 98 does not include a specific version or date reference, then use the version of the referenced document as available on the date of adoption of this chapter.

(3) Calculation methods for voluntary reporting. GHG emissions reported voluntarily under WAC 173-441-030(4) must be calculated using the following methods:

(a) If the GHG emissions have calculation methods specified in Table 120-1 of this section, use the methods specified in Table 120-1.

(b) If the GHG emissions have calculation methods specified in WAC 173-441-130, use the methods specified in WAC 173-441-130.

(c) For all GHG emissions from facilities not covered in Table 120-1 of this section or persons supplying any product other than those listed in WAC 173-441-130, contact ecology for an appropriate calculation method no later than one hundred eighty days prior to the emissions report deadline established in WAC 173-441-050(2) or submit a petition for alternative calculation methods according to the requirements of WAC 173-441-140.

(4) Alternative calculation methods approved by petition. An owner or operator may petition ecology to use calculation methods other than those specified in Table 120-1 of this section to calculate its facility GHG emissions. Such alternative calculation methods must be approved by ecology prior to reporting and must meet the requirements of WAC 173-441-140.

Suppliers of ((liquid)) motor vehicle fuel, special fuel, or aircraft fuel subject to the requirements of this chapter must calculate the CO2 emissions that would result from the complete combustion or oxidation of each fuel that is reported to DOL as sold in Washington state using the methods in this section.

(1) Applicable fuels. Suppliers are responsible for calculating CO2 emissions from the following applicable fossil fuels and biomass derived fuels:

(a) All taxed ((liquid)) motor vehicle fuel that the supplier is required to report to DOL as part of the supplier's filed periodic tax reports of motor vehicle fuel sales under chapter ((308-72 WAC)) 82.38 RCW.

(b) All taxed special fuel that the supplier is required to report to DOL as part of the supplier's filed periodic tax reports of special fuel sales under chapter ((308-77 WAC)) 82.38 RCW.

(c) All taxed and untaxed aircraft fuel supplied to end users that the supplier is required to report to DOL as part of the supplier's filed periodic tax reports of aircraft fuel under chapter ((308-78 WAC)) 82.42 RCW.

(2) Calculating CO2 emissions separately for each fuel type. CO2 emissions must be calculated separately for each applicable fuel type using Equation 130-1 of this section. Use Equation 130-2 of this section to separate each blended fuel into pure fuel types prior to calculating emissions using Equation 130-1.

Where:

Where:

(3) Calculating total CO2 emissions. A supplier must calculate total annual CO2 emissions from all fuels using Equation 130-3 of this section.

Where:

(4) Monitoring and QA/QC requirements. Comply with all monitoring and QA/QC requirements under chapters 308-72, 308-77, and 308-78 WAC.

(5) Data recordkeeping requirements. In addition to the annual GHG report required by WAC 173-441-050 (6)(c), the following records must be retained by the supplier in accordance with the requirements established in WAC 173-441-050(6):

(a) For each fuel type listed in Table 130-1 of this section, the annual quantity of applicable fuel in gallons of pure fuel supplied in Washington state.

(b) The CO2 emissions in metric tons that would result from the complete combustion or oxidation of each fuel type for which subsection (5)(a) of this section requires records to be retained, calculated according to subsection (2) of this section.

(c) The sum of biogenic CO2 emissions that would result from the complete combustion oxidation of all supplied fuels, calculated according to subsection (3) of this section.

(d) The sum of nonbiogenic and biogenic CO2 emissions that would result from the complete combustion oxidation of all supplied fuels, calculated according to subsection (3) of this section.

(e) All records required under chapters 308-72, 308-77, and 308-78 WAC in the format required by DOL.

This rule establishes greenhouse gas (GHG) emissions reduction standards for certain stationary sources, petroleum fuel producers or importers, and natural gas distributors operating in Washington state. Covered parties with a compliance obligation under this chapter are required to reduce their covered GHG emissions to meet their GHG emissions reduction pathway or obtain emission reductions from other covered parties, GHG emissions reduction projects, or external emissions market programs.

The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.

(1) Definitions specific to this chapter:

(a) "Council" has the meaning in RCW 80.70.010.

(b) "Covered GHG emissions" means all covered stationary source GHG emissions, covered petroleum fuel producer or importer GHG emissions, and covered natural gas distributor GHG emissions as established in WAC 173-442-030 through 173-442-050.

(c) "Covered party" means the owner or operator of (i) a stationary source located in Washington, (ii) a petroleum fuel producer or importer of fuels in Washington, (iii) a natural gas distributor in Washington, and (iv) any voluntary participant in the program.

(d) "Emission reduction unit" means an accounting mechanism that represents a quantity of emission reductions that can occur or be counted through any of the means recognized in WAC 173-442-120.

(e) "Energy intense and trade exposed facility" or "EITE facility" means a facility with a primary North American Industry Classification System (NAICS) code included in the following list:

(i) 311411: Frozen fruit, juice, and vegetable manufacturing;

(ii) 311423: Dried and dehydrated food manufacturing;

(iii) 311611: Animal (except poultry) slaughtering;

(iv) 322110: Pulp mills;

(v) 322121: Paper (except newsprint) mills;

(vi) 322122: Newsprint mills;

(vii) 322130: Paperboard mills;

(viii) 325188: All other basic inorganic chemical manufacturing;

(ix) 325199: All other basic organic chemical manufacturing;

(x) 325311: Nitrogenous fertilizer manufacturing;

(xi) 327211: Flat glass manufacturing;

(xii) 327213: Glass container manufacturing;

(xiii) 327310: Cement manufacturing;

(xiv) 327410: Lime manufacturing;

(xv) 327420: Gypsum product manufacturing;

(xvi) 331111: Iron and steel mills;

(xvii) 331312: Primary aluminum production;

(xviii) 331315: Aluminum sheet, plate, and foil manufacturing;

(xix) 311611: Animal (except poultry) slaughtering;

(xx) 334413: Semiconductor and related device manufacturing;

(xxi) 336411: Aircraft manufacturing;

(xxii) 336413: Other aircraft parts and auxiliary equipment manufacturing.

(f) "Independent qualified organization" has the meaning in WAC 173-407-020.

(g) "Instrument" means a greenhouse gas emission reduction encapsulated as a credit, allowance, or other similar regulatory accounting currency derived from an existing greenhouse gas emission credit program, registry, or exchange operated or run by a governmental authority other than the state of Washington.

(h) "Vintage year" means the calendar year in which the emission reduction unit is first recorded.

(2) Definitions from chapter 173-441 WAC. If no definition is provided in subsection (1) of this section, the definition found in chapter 173-441 WAC applies.

(3) Definitions from chapter 173-400 WAC. If no definition is provided in subsections (1)(a) through (h) and (2) of this section, the definition found in chapter 173-400 WAC applies.

The following types of GHG emissions are covered GHG emissions from stationary sources under this chapter.

(1) Covered stationary source GHG emissions. Covered stationary source GHG emissions under this chapter are GHG emissions from all source categories listed in WAC 173-441-120, except for GHG emissions listed in subsection (2) of this section, at any facility located in Washington state that are reported to ecology under chapter 173-441 WAC. This includes emissions voluntarily reported under chapter 173-441 WAC. This also includes emissions of all GHGs that are listed in Table A-1 of WAC 173-441-040.

(2) Emissions not part of covered stationary source GHG emissions.

(a) Emissions from the following source categories are not covered stationary source GHG emissions under this chapter.

(i) Suppliers of Petroleum Products: 40 C.F.R. Part 98 Subpart MM.

(ii) Suppliers of Natural Gas and Natural Gas Liquids: 40 C.F.R. Part 98 Subpart NN.

(iii) Manure Management: 40 C.F.R. Part 98 Subpart JJ.

(b) Emissions of carbon dioxide from industrial combustion of biomass in the form of fuel wood, wood waste, wood by-products, and wood residuals, as provided in RCW 70.235.020(3).

(c) Coal based emissions from a coal-fired baseload electric generation facility in Washington that emitted more than one million tons of greenhouse gases in any calendar year prior to 2008 as provided in RCW 80.80.040 (3)(c).

The following types of GHG emissions are covered GHG emissions from petroleum fuel producers or importers under this chapter.

(1) Covered petroleum fuel producer or importer GHG emissions. Covered petroleum fuel producer or importer GHG emissions under this chapter are carbon dioxide emissions that would result from the complete combustion or oxidation of fuels covered under the Suppliers of Petroleum Products, 40 C.F.R. Part 98 Subpart MM, source category listed in WAC 173-441-120, except for carbon dioxide emissions listed in subsection (2) of this section, from any producer or importer of fuels in Washington state that are reported to ecology under chapter 173-441 WAC. This includes emissions voluntarily reported under chapter 173-441 WAC.

(2) Emissions not part of covered petroleum fuel producer or importer GHG emissions.

(a) Carbon dioxide emissions that would result from the complete combustion or oxidation of fuels made for aviation or maritime use such as:

(i) Aviation Gasoline;

(ii) Kerosene-Type Jet Fuel;

(iii) Residual Fuel Oil No. 5 (Navy Special); and

(iv) Residual Fuel Oil No. 6 (a.k.a. Bunker C).

(b) Carbon dioxide emissions that would result from the complete combustion or oxidation of fuels exported from Washington state and where the final distribution of the product occurs outside of Washington state.

The following types of GHG emissions are covered GHG emissions from natural gas distributors under this chapter.

(1) Covered natural gas distributor GHG emissions. Covered natural gas distributor GHG emissions under this chapter are carbon dioxide emissions that would result from the complete combustion or oxidation of fuels covered under the Suppliers of Natural Gas and Natural Gas Liquids, 40 C.F.R. Part 98 Subpart NN, source category listed in WAC 173-441-120, except for carbon dioxide emissions listed in subsection (2) of this section, from any distributor of fuels in Washington state that are reported to ecology under chapter 173-441 WAC. This includes emissions voluntarily reported under chapter 173-441 WAC.

(2) Emissions not part of covered natural gas distributor GHG emissions. Natural gas distributors are not responsible for carbon dioxide emissions that would result from the complete combustion or oxidation of fuels supplied to another covered party with a requirement to make a compliance progress determination as established in WAC 173-442-090 for those carbon dioxide emissions under this chapter.

This section establishes who must make a compliance progress determination as established in WAC 173-442-090.

(1) Threshold. Any covered party with total covered GHG emissions that exceed the compliance threshold defined in this subsection must make a compliance progress determination as established in WAC 173-442-090.

(a) Compliance threshold for covered parties with baseline GHG emissions of one hundred thousand metric tons CO2e or more. Any stationary source, petroleum fuel producer or importer, or natural gas distributor with baseline GHG emissions as calculated under WAC 173-442-070(1) of one hundred thousand metric tons CO2e or more has exceeded the compliance threshold. Covered parties must make a compliance progress determination as established in WAC 173-442-090 beginning with emissions year 2017, except covered parties that are energy intense and trade exposed facilities, as defined by this chapter, whose requirement to make a compliance progress determination begins with emissions year 2020.

(b) Covered parties not meeting the threshold in subsection (1)(a) of this section must use the following compliance thresholds. Covered parties must make a compliance progress determination as established in WAC 173-442-090 beginning with the first emissions year that exceeds the thresholds below. All compliance thresholds are for total covered GHG emissions as calculated in (c) of this subsection.

(i) The compliance threshold for emissions years 2017 through 2019 is one hundred thousand metric tons CO2e or more.

(ii) The compliance threshold for emissions years 2020 through 2022 is ninety-five thousand metric tons CO2e or more.

(iii) The compliance threshold for emissions years 2023 through 2025 is ninety thousand metric tons CO2e or more.

(iv) The compliance threshold for emissions years 2026 through 2028 is eighty-five thousand metric tons CO2e or more.

(v) The compliance threshold for emissions years 2029 through 2031 is eighty thousand metric tons CO2e or more.

(vi) The compliance threshold for emissions years 2032 through 2034 is seventy-five thousand metric tons CO2e or more.

(vii) The compliance threshold for emissions years 2035 and later is seventy thousand metric tons CO2e or more.

(c) Calculating covered GHG emissions for comparison to the threshold. To calculate covered GHG emissions for comparison to the reporting threshold in (b) of this subsection, the covered party must:

(i) Calculate the total annual covered GHG emissions of each GHG in metric tons from all covered GHG emissions that are listed and defined in WAC 173-442-030 through 173-442-050.

(ii) Sum the emissions estimates for each GHG and calculate metric tons of CO2e using Equation A-1 of WAC 173-441-030.

(iii) Include in the emissions calculation any CO2 that is captured for transfer off-site.

(iv) The GHG emissions must be calculated using the calculation methodologies specified in WAC 173-441-120 as reported to ecology under chapter 173-441 WAC or the assigned emissions level under WAC 173-441-086.

(v) Compare the three year annual rolling average, beginning with emissions year 2012, of the total covered emissions in units of metric tons of CO2e to the compliance threshold for the last emissions year in the three year annual rolling average.

(2) Applicability over time. A party that does not meet the applicability requirements of subsection (1)(a) or (b) of this section does not have a requirement to make a compliance progress determination as established in WAC 173-442-090. Such a party must make a compliance progress determination as established in WAC 173-442-090 if they exceed the applicability requirements of subsection (1)(b) of this section at a later time. Thus, parties must reevaluate whether this chapter applies to them (including revised emissions calculations or other calculations) whenever there is any change that could cause the party to meet the applicability requirements of subsection (1)(b) of this section. Such changes include, but are not limited to, process modifications, increases in operating hours, increases in production, changes in fuel or raw material use, addition of equipment, source expansion, changes in the compliance threshold, and changes to this chapter.

(3) Requirements when covered GHG emissions fall below the compliance threshold. Except as provided in this subsection, once a covered party is subject to the requirements of this chapter, the covered party must continue for each year thereafter to comply with all requirements of this chapter, even if the covered party does not meet the applicability requirements in subsection (1)(a) or (b) of this section in a future year.

(a) If covered GHG emissions are less than seventy thousand metric tons CO2e per year for three consecutive years, then the covered party may discontinue making a compliance progress determination as established in WAC 173-442-090 provided that the covered party submits a notification to ecology that announces their intention to leave the program and explains the reasons for the reduction in emissions. The notification must be submitted no later than the report submission due date, specified in WAC 173-441-050(2), of the year immediately following the third consecutive year of emissions less than seventy thousand metric tons CO2e per year. The covered party must resume making a compliance progress determination as established in WAC 173-442-090 if total annual covered GHG emissions in any future calendar year exceeds the thresholds in subsection (1)(b) of this section.

(b) If the operations of a covered party are changed such that all covered GHG emitting processes and operations listed in WAC 173-441-030 through 173-441-050 cease to operate, then the covered party is exempt from making a compliance progress determination as established in WAC 173-442-090 in the years following the year in which cessation of such operations occurs, provided that the covered party submits a notification to ecology that announces their intention to leave the program and certifies to the closure of all GHG emitting processes and operations no later than the report submission due date, specified in WAC 173-441-050(2), of the year following such changes. This provision does not apply to seasonal or other temporary cessation of operations. This provision does not apply to covered parties with municipal solid waste landfills, industrial waste landfills, or to underground coal mines. The covered party must resume making a compliance progress determination as established in WAC 173-442-090 for any future calendar year during which any of the GHG-emitting processes or operations resume operation.

(4) Voluntary participation. A party that does not exceed the thresholds in subsection (1)(a) or (b) of this section may choose to voluntarily make a compliance progress determination as established in WAC 173-442-090. Parties voluntarily making a compliance progress determination as established in WAC 173-442-090 must comply with all provisions of this chapter as if they exceeded the thresholds in subsection (1)(a) or (b) of this section. A voluntary participant may stop complying with the requirements of this chapter if they meet the standards in subsection (3)(a) or (b) of this section.

Ecology must assign a baseline GHG emissions value to all covered parties in Washington state that are specified in this section. The baseline GHG emissions value is assigned to the covered party as it exists during the baseline calculation period and remains constant even if there is a subsequent change in processes, production, or GHG emissions at the covered party or a change in owners or operators of the covered party.

(1) Baseline GHG emissions for covered parties with covered GHG emissions for at least three years between emissions years 2012 and 2016. Ecology must use the following method to assign a baseline GHG emissions value to any covered party operating in Washington state with covered GHG emissions above seventy thousand metric tons CO2e per year under chapter 173-441 WAC for at least three consecutive emissions years beginning with 2012 and ending with 2016.

(a) Ecology must use the following sources of data to assign baseline GHG emissions values.

(i) If a covered party reported GHG emissions to ecology under chapter 173-441 WAC, including data voluntarily reported to ecology, in a timely manner between emissions years 2012 and 2016, use the data from the covered party's annual GHG reports or use the assigned emissions level under WAC 173-441-086.

(ii) If a covered party was required to report GHG emissions to ecology under chapter 173-441 WAC between emissions years 2012 and 2016 but failed to report their GHG emissions in a timely manner, use the data from the covered party's annual GHG reports once they become available to ecology or use the assigned emissions level under WAC 173-441-086.

(iii) Petroleum fuel producers and natural gas distributors that were not required to submit annual GHG reports for their Subpart MM or NN GHG emissions prior to emissions year 2016, but were required to submit annual GHG reports to EPA for those emissions, must submit complete annual GHG reports including those carbon dioxide emissions for emissions years 2012 through 2016 to ecology by the specified report submission due date for emissions year 2016, specified in WAC 173-441-050(2). These reports must include all data elements required to be submitted to EPA or supporting data retained on-site as specified by 40 C.F.R. Part 98 at the date of original report submission to EPA.

(b) Calculate the total annual covered GHG emissions of each GHG in metric tons from all covered GHG emissions that are listed and defined in WAC 173-442-030 through 173-442-050.

(c) Sum the emissions estimates for each GHG and calculate metric tons of CO2e using Equation A-1 of WAC 173-441-030.

(d) Include in the emissions calculation any CO2 that is captured for transfer off-site.

(e) The GHG emissions must be calculated using the calculation methodologies specified in WAC 173-441-120 as reported to ecology under chapter 173-441 WAC or the assigned emissions level under WAC 173-441-086. Ecology may use existing reported GHG data to adjust covered GHG emissions if there has been a change in covered GHG emissions calculation methodologies since the GHG emissions were reported to ecology.

(f) Average the total annual covered GHG emissions in units of metric tons of CO2e for all emissions years beginning with 2012 and ending with 2016 with covered GHG emissions under chapter 173-441 WAC. Ecology may omit emissions years from the average that meet at least one of the following criteria:

(i) Have a significant GHG emissions calculation methodology difference from the average. The significant GHG emissions calculation methodology difference must:

(A) Be at least fifteen percent different from the 2012 through 2016 average of emissions years using the current methodology;

(B) Be primarily caused by a change in a relevant GHG emissions calculation methodology that is not correctable by adjusting existing reported GHG data as specified in (e) of this subsection; and

(C) Not be the result of a change in process or production regardless of how large, unusual, or outside the control of the covered party.

(ii) Occur during a period of temporary or permanent shutdown or curtailment. This is defined as any emissions year between 2012 and 2016 where covered GHG emissions and the facility's production are at least eighty percent below the 2012 through 2016 average of emissions years under normal operation.

(2) Baseline GHG emissions for covered parties not covered by subsection (1) of this section. Ecology must use one of the following two methods to assign a baseline GHG emissions value to any covered party operating in Washington state that is covered by WAC 173-441-060 (1)(b) or (4) but either was not in operation between emissions years 2012 and 2016 or did not emit enough covered GHG emissions between 2012 and 2016 to have a baseline emissions value established under subsection (1) of this section. Ecology will select the method most appropriate for the given covered party when assigning the baseline GHG emissions value.

(a) Setting baseline GHG emissions values based on historic emissions. Use the following procedure to assign a baseline GHG emissions value.

(i) Calculate the total annual covered GHG emissions of each GHG in metric tons from all covered GHG emissions that are listed and defined in WAC 173-442-030 through 173-442-050.

(ii) Sum the emissions estimates for each GHG and calculate metric tons of CO2e using Equation A-1 of WAC 173-441-030.

(iii) Include in the emissions calculation any CO2 that is captured for transfer off-site.

(iv) The GHG emissions must be calculated using the calculation methodologies specified in WAC 173-441-120 as reported to ecology under chapter 173-441 WAC or the assigned emissions level under WAC 173-441-086. Ecology may use existing reported GHG data to adjust covered GHG emissions if there has been a change in covered GHG emissions calculation methodologies since the GHG emissions were reported to ecology.

(v) Average the total annual covered emissions in units of metric tons of CO2e for the first three emissions years with average covered GHG emissions above ten thousand metric tons CO2e.

(b) Setting baseline GHG emissions values based on a benchmarking process.

(i) Within sixty working days of a written request by ecology, the covered party must provide the data that is required to calculate actual or projected GHG emissions for the covered party according to the requirements of WAC 173-441-120, information about the GHG emitting processes that are part of the covered party, actual or projected production data for the covered party, and other information requested by ecology, including the actual or projected operating days and hours of the covered party during the data year. The covered party must also make available personnel who can assist ecology in assigning a baseline GHG emissions value for the covered party. If the covered party fails to provide information in a timely manner, ecology must use best available information to conservatively estimate any missing data and assign a baseline GHG emissions value.

(ii) Ecology must assign the covered party a baseline GHG emissions value by comparing the covered party to other existing parties making or supplying similar products using similar processes as the covered party getting an assigned baseline GHG emissions value. Whenever possible, ecology must set the baseline emissions value at a value equal to the most efficient ten percent of similar existing parties, adjusted for the projected production at the covered party being assigned a baseline GHG emissions value. Ecology may use the actual or projected data from (b)(i) of this subsection to inform this process.

(A) Ecology must attempt to find existing parties, either local or otherwise, that meet these criteria.

(B) Ecology may prorate emissions or production data to scale data from existing similar parties to the covered party getting an assigned baseline GHG emissions value.

(C) When possible, ecology should use average 2012 to 2016 emissions year data from the existing similar parties.

(D) Ecology must use best available engineering methods to estimate covered GHG emissions if similar existing parties do not exist.

(E) Ecology must do the following when assigning a baseline GHG emissions value for a covered party:

(I) Calculate the total annual covered GHG emissions of each GHG in metric tons from all covered GHG emissions that are listed and defined in WAC 173-442-030 through 173-442-050.

(II) Sum the emissions estimates for each GHG and calculate metric tons of CO2e using Equation A-1 of WAC 173-441-030.

(III) Include in the emissions calculation any CO2 that is captured for transfer off-site.

(IV) The GHG emissions must be calculated using the calculation methodologies specified in WAC 173-441-120.

Ecology must assign a GHG emissions reduction pathway to all covered parties in Washington state that meets the applicability standards in WAC 173-442-060 (1)(a) or (b). The GHG emissions reduction pathway is assigned to the covered party based on their baseline GHG emissions value and does not change even if there is a subsequent change in processes, production, or GHG emissions at the covered party or a change in owners or operators of the covered party.

(1) GHG emissions reduction pathway for the first year in the program. The GHG emissions reduction pathway for the first emissions year a covered party meets the applicability standards in WAC 173-442-060 (1)(a) or (b) is the baseline GHG emissions value for that covered party.

(2) GHG emissions reduction pathway annual decrease. Each emissions year beginning after the initial GHG emissions reduction pathway established under subsection (1) of this section, the GHG emissions reduction pathway decreases by an additional one and two-thirds percent of the covered party's baseline GHG emissions value relative to the GHG emissions reduction pathway for the previous emissions year.

(3) GHG emissions reduction pathway for covered parties voluntarily participating in the program. The GHG emissions reduction pathway for each emissions year a covered party voluntarily participates in the program as specified in WAC 173-442-060(4) is the baseline GHG emissions value for the covered party. If the covered party voluntarily participating in the program meets the applicability standards in WAC 173-442-060 (1)(a) or (b) at a later date, ecology must assign a new GHG emissions reduction pathway to the covered party that is consistent with the requirements of subsections (1) and (2) of this section beginning with the first emissions year the covered party meets the applicability standards in WAC 173-442-060 (1)(a) or (b).

Covered parties must make a compliance progress determination for each emissions year that they meet the applicability standards in WAC 173-442-060 unless they have an approved petition as specified under WAC 173-442-220 for that emissions year.

(1) Computation of compliance progress determination. The compliance progress determination is equal to the difference between the GHG emissions reduction pathway assigned in WAC 173-442-080 and the covered greenhouse gas emissions reported as per WAC 173-441-120 for that emissions year.

(2) No compliance progress determination. Covered parties are not required to reduce their greenhouse gas emissions for any emissions year that they fall below the threshold established in WAC 173-442-060. In such a year there is no compliance progress determination required.

Each covered party must demonstrate that they have met their compliance obligation at the end of the applicable three-year compliance period.

(1) Compliance periods. Compliance periods are as follows: 2017-2019; 2020-2022; 2023-2025; 2026-2028; 2029-2031; 2032-2034, and continue from that time forward in intervals of three years.

(2) Compliance obligation. The compliance progress determinations required in WAC 173-442-090 must be summed for each applicable emission year of the relevant compliance period for a covered party. If after this summation the total is negative, the covered party has a compliance obligation for that compliance period.

(3) Computation of compliance obligation. The compliance obligation is equal to the absolute value of the sum of the compliance progress determinations for the emission years that comprise the applicable compliance period.

(4) Compliance demonstration. All covered parties must demonstrate compliance with the requirements of this chapter for the applicable compliance period.

(a) Covered parties with a compliance obligation must demonstrate they have met their compliance obligation for the compliance period by any combination of the following methods:

(i) By submitting greenhouse gas reporting data, in accordance with chapter 173-441 WAC, that provides evidence that, as a result of the reported greenhouse gas emissions levels for the emission years within the compliance period, the total greenhouse gas emissions reductions necessary to meet the compliance obligation have been achieved.

(ii) By providing evidence that the covered party has obtained emission reductions through other means, in accordance with WAC 173-442-120, that, in combination with (a)(i) of this subsection, achieves an aggregate emissions level that meets the compliance obligation for the compliance period.

(b) Covered parties that do not have a compliance obligation must confirm that the greenhouse gas reporting data, reported in accordance with chapter 173-441 WAC, demonstrate that there is no compliance obligation.

(5) Documenting compliance. The compliance demonstration must be completed as per the requirements and schedule in WAC 173-442-200.

A covered party may use emission reduction units to meet some or all of its compliance obligation.

(1) Value. An emission reduction unit represents one metric ton of greenhouse gases in units of carbon dioxide equivalent.

(2) Composition of emission reduction units. An emission reduction unit may be composed of any of the greenhouse gases listed in WAC 173-441-040 or, for the purposes of utilizing WAC 173-442-180(5), chlorofluorocarbons or hydrochlorofluorocarbons that are destroyed. Regardless of their composition emission reduction units will be expressed in units of carbon dioxide equivalent.

(3) Location of emission reductions. Emission reduction units must originate from greenhouse gas emission reductions occurring within the state of Washington unless otherwise authorized in WAC 173-442-180 or 173-442-190.

(4) Retirement of emission reduction units. An emission reduction unit must be retired once it is used to demonstrate partial or full achievement of a compliance obligation. An emission reduction unit must not be used, sold, traded, reallocated, or otherwise transferred again in any way. The use of an emission reduction unit, as recorded in a compliance report required by WAC 173-442-200, permanently and irrevocably disqualifies any further use of the unit.

Emission reduction units may be generated in the following manner:

(1) Emission level below GHG emissions reduction pathway. Upon providing GHG reporting data for an emission year, if the reported covered GHG emissions level is lower than the GHG emissions reduction pathway level established in WAC 173-442-080, the covered party may generate emission reduction units in an amount equal to the difference between the reported covered GHG emission level and the higher GHG emissions reduction pathway level.

(2) Voluntary participants. Reporters of greenhouse gas emissions who voluntarily elect to be covered parties as per WAC 173-442-060(4), and whose reported covered GHG emission levels are lower than the GHG emissions reduction pathway level established in WAC 173-442-080(3), may generate emission reduction units in an amount equal to the difference between the reported covered GHG emission level and the higher baseline GHG emissions level.

(3) Alternative emission reductions. Project types, activities, or programs recognized by ecology that can meet the criteria identified in WAC 173-442-160 may generate emission reduction units consistent with WAC 173-442-180.

(4) External emission markets. Greenhouse gas emission credit programs, registries, or exchanges not operated or managed by the state of Washington that provide instruments may be used to generate emission reduction units consistent with WAC 173-442-190.

Emission reduction units exist solely as an accounting mechanism reported by covered parties and are not property rights.

(1) Each covered party must keep a record of any emission reduction units generated or obtained.

(2) This record must be reported as part of the compliance report submitted to ecology in the manner prescribed by WAC 173-442-200.

Any emission reduction units not used, sold, or otherwise released by a covered party in a year may be banked for future use or dispensation by the covered party.

(1) First in, first out provision. When an emission reduction unit is withdrawn from a pool of banked emission reduction units the emission reduction unit with the oldest vintage year must be withdrawn first. Within the same vintage year the covered party has the option to select what emission reduction units to withdraw.

(2) Documentation of banked emission reduction units. Any emission reduction units that are banked for future use must be documented in the compliance report submitted by the covered party consistent with WAC 173-442-200. To be eligible for banking, emission reduction units must be documented in the vintage year in which they were generated.

(3) Time limit for banking. The value of any emission reduction unit banked for future use will expire ten years after the date of the first compliance report in which they are reported as held over for future use or dispensation.

Emission reduction units may be exchanged, bartered, sold, or otherwise transferred between covered parties if the transfer of the emission reduction units produces sufficient documentation of the exchange.

(1) Required documentation. This documentation may consist of contractual arrangements, memorandums of understanding, or other similar records with sufficient detail to document the exchange and to demonstrate a clear and unambiguous transfer of the emission reduction unit from one covered party to another.

(2) Tracking of emission reduction units. Any release or acquisition of an emission reduction unit by a covered party must be documented in the compliance report submitted by the covered party as per WAC 173-442-200.

(3) Role of third parties. Emission reduction units may only be reported as being released or obtained by covered parties. While third parties may facilitate, broker, or otherwise assist in the trading, transfer, or other exchange of emission reduction units between covered parties at no time may third parties report that they themselves are retaining emission reduction units.

Covered parties may generate emission reduction units from emission reductions derived from project types, activities, or programs that are not otherwise included in the emission calculations used to derive the covered emissions for any reporting party reporting as per chapter 173-441 WAC.

(1) Criteria for emission reductions. Emission reductions must meet the following criteria:

(a) Emission reductions must be real. A specific, identifiable, and quantifiable reduction of greenhouse gas emissions must be demonstrable.

(b) Emission reductions must be permanent. The emission reductions must not be reversible or, where reversal is a possibility, mechanisms and protocols must be in place to account for and ensure against reversals in a manner approved by the department.

(c) Emission reductions must be enforceable. Emission reductions must derive from activities, infrastructure, equipment, actions, or other origins that are under the control of parties or persons who are subsequently under the authority of the state of Washington. In the case of emission reductions represented by instruments from external emission crediting systems, emission reductions must derive from instruments over which ecology can assert control or limitations over the usability of the instruments for the purposes of this program.

(d) Emission reductions must be verifiable, and verified in the manner prescribed by WAC 173-442-210.

(e) Emission reductions must be additional to existing law or regulation. Emission reductions used for this program must not otherwise be required by statute, regulation, or other legal requirements except under those conditions listed in WAC 173-442-170.

(2) Additional criteria for emission reductions. Additional criteria for emission reductions may apply for different types of projects, programs, or activities as detailed in the applicable protocols, methodologies or procedures provided in WAC 173-442-180.

(3) Emissions from wood products. Carbon dioxide emission reductions that serve as alternative emission reductions and that are derived from the industrial combustion of biomass in the form of fuel wood, wood waste, wood by-products, and wood residuals are considered to have zero emissions as provided by WAC 173-442-030.

Emission reductions under the economy or sector-wide greenhouse gas policies described in this section can count toward meeting the compliance obligation of a covered party:

(1) The EPA Clean Power Plan (40 C.F.R. Part 60 Subpart UUUU).

(2) Washington's greenhouse gas emission performance standard (chapter 194-20 WAC).

Project types, activities, and programs eligible to generate emission reduction units must comply with WAC 173-442-160 and this section. Eligible project types, activities, and programs include the following:

(1) Transportation measures. Transportation measures that address travel demand or expand mobility options, or transportation technology projects that use less energy or different forms of energy to reduce greenhouse gas emissions.

(a) As documented using the following methods:

(i) By exceeding workplace goals established by the commute trip reduction program, as reported by the Washington department of transportation.

(ii) Through the use of the improved efficiency of vehicle fleets protocol from the American Carbon Registry, using the most recent version of the protocol as of January 1, 2016.

(iii) Through the use of the truck stop electrification protocol from the American Carbon Registry using the most recent version of the protocol as of January 1, 2016.

(b) Emission reductions in this category derived from an independent qualified organization recognized by the council per RCW 80.70.050.

(c) Through a methodology that meets the GHG protocol for project accounting from the World Resources Institute as determined by ecology using the most recent version of the protocol as of January 1, 2016.

(2) Energy measures. Energy efficiency measures and demand side management of electricity consumption in Washington, and alternative energy generation technologies that serve retail electricity customers of Washington.

(a) As documented using the following methods:

(i) Through the acquisition of conservation above the targets required by the Energy Independence Act and that is reported to commerce or the UTC, as reported by the department of commerce or the utilities and transportation commission.

(ii) Through the acquisition and subsequent retirement of RECs that are not retired for purposes of complying with the Energy Independence Act, as reported by the Washington department of commerce.

(b) Emission reductions in this category derived from an independent qualified organization recognized by the council per RCW 80.70.050.

(c) Through a methodology that meets the GHG protocol for project accounting from the World Resources Institute as determined by ecology using the most recent version of the protocol as of January 1, 2016.

(3) Livestock and agricultural measures. Methane management measures addressing agricultural and livestock activities.

(a) Through the use of the U.S. Livestock protocol from the Climate Action Reserve using the most recent version of the protocol as of January 1, 2016.

(b) Emission reductions in this category derived from an independent qualified organization recognized by the council per RCW 80.70.050.

(c) Through a methodology that meets the GHG protocol for project accounting from the World Resources Institute as determined by ecology using the most recent version of the protocol as of January 1, 2016.

(4) Waste and wastewater measures. Greenhouse gas management measures addressing waste and wastewater infrastructure and activities.

(a) As documented using the following methods:

(i) Through the use of the U.S. Landfill protocol from the Climate Action Reserve using the most recent version of the protocol as of January 1, 2016.

(ii) Through the use of the organic waste composting protocol from the Climate Action Reserve using the most recent version of the protocol as of January 1, 2016.

(iii) Through the use of the organic waste digestion protocol from the Climate Action Reserve using the most recent version of the protocol as of January 1, 2016.

(b) Emission reductions in this category derived from an independent qualified organization recognized by the council per RCW 80.70.050.

(c) Through a methodology that meets the GHG protocol for project accounting from the World Resources Institute as determined by ecology using the most recent version of the protocol as of January 1, 2016.

(5) Industrial sector measures. Greenhouse gas process and equipment management, operations, and changes affecting industry and manufacturing.

(a) As documented using the following methods:

(i) Through the use of the replacement of SF6 with alternate cover gas in the magnesium industry protocol from the American Carbon Registry using the most recent version of the protocol as of January 1, 2016.

(ii) Through the use of the use of certified reclaimed HFC refrigerants and advanced refrigeration systems protocol from the American Carbon Registry using the most recent version of the protocol as of January 1, 2016.

(iii) Through the use of the conversion of high-bleed pneumatic controllers in oil and natural gas systems protocol from the American Carbon Registry using the most recent version of the protocol as of January 1, 2016.

(iv) Through the use of the conversion of foam blowing agents from high-GWP to low-GWP materials protocol from the American Carbon Registry using the most recent version of the protocol as of January 1, 2016.

(b) Combined heat and power, as documented through a methodology submitted to and approved by ecology.

(c) Emission reductions in this category derived from an independent qualified organization recognized by the council per RCW 80.70.050.

(d) Through a methodology that meets the GHG protocol for project accounting from the World Resources Institute as determined by ecology using the most recent version of the protocol as of January 1, 2016.

Instruments provided by emission credit programs, registries, or exchanges as described in this section are eligible to provide emission reduction units for use by covered parties.

(1) Location of emissions. The emission credit programs, registries, or exchanges providing these instruments must be located in the United States or Canada.

(2) Eligible instruments. Eligible emission credit programs, registries, or exchange include the following:

(a) Emission allowances from the Regional Greenhouse Gas Initiative (RGGI);

(b) Emission allowances issued by California's cap and trade program;

(c) Emission allowances from Quebec's cap and trade program;

(d) Offset credits from livestock projects from the California cap and trade program;

(e) Offset credits from mine methane capture projects from the California cap and trade program;

(f) Offset credits from ozone depleting substance (ODS) projects from the California cap and trade program.

(3) Retirement of instruments in original market. Use of an instrument in this program must include documentation that the instrument has been invalidated, retired, or otherwise disqualified from future use in its originating market.

Each regulated party must submit a compliance report in accordance with this section.

(1) The compliance report must be submitted electronically in a format prescribed by ecology.

(2) The compliance report must be submitted no later than one hundred twenty days after the report submission due date for the covered party specified in WAC 173-441-085(6) for the emission year in which the applicable compliance period specified in WAC 173-442-100(1) ends.

(3) The compliance report must contain the following sections and detail:

(a) Record of emission reduction units generated. The record of emission reduction units must include for each distinct emission reduction unit or block of emission reduction units from an identical source or other method of credit generation:

(i) The source of the emission reduction unit or units.

(ii) The source of the emissions data or computational method used to generate the emission reduction unit.

(iii) The vintage year that the emission reduction unit is created.

(b) Record of emission reduction units banked. The compliance report must document all emission reduction units being banked for this compliance period by including the following information:

(i) Vintage year of the emission reduction unit.

(ii) Origin of the emission reduction unit.

(c) Record of emission reduction unit transactions. This documentation must consist of:

(i) The origin of any emission reduction units acquired.

(ii) The destination of any emission reduction units transferred.

(iii) The names and contact information of any third parties who facilitated, brokered, or provided liaison services between the parties making the exchange.

(iv) The value of the emission reduction units at the time of the exchange.

(v) The vintage year of the emission reduction units.

(d) Documentation of emissions verification. The compliance report must contain documentation that all emission reductions have been verified by a third party consistent with WAC 173-442-210 and 173-441-085. This documentation must consist of:

(i) For emission reductions generating emission reduction units in the manner described by WAC 173-442-120 (1) and (2) documentation by reference to the applicable annual GHG emissions reports.

(ii) For emission reductions generating emission reductions units in the manner described by WAC 173-442-120(3) the appropriate documentation of verification for each applicable case attached as an appendix or appendices.

(iii) For emission reductions generating emission reduction units in the manner described by WAC 173-442-120(4) the inclusion of documentation consistent with WAC 173-442-190(3), in conjunction with the requirements of this section.

(4) The compliance report must be signed by the covered party's designated representative or alternate designated representative as specified in WAC 173-441-060 and include the certification statement specified in WAC 173-441-060 (5)(a).

(1) Emission reductions subject to third-party verification. All emission reductions for which emission reduction units are generated under WAC 173-442-180 are:

(a) Subject to the verification procedure requirements of this section.

(b) Subject to any verification criteria, procedures, or methods that are part of the protocols, processes, or methodologies applicable for the type of emission reduction detailed in WAC 173-442-180.

(c) Verified by a certified verifier using processes and procedures consistent with the International Organization for Standardization 14064-3:2006 protocol which is most current as of January 1, 2016.

(2) Compliance reports subject to third-party verification. A covered party that must make a compliance progress determination as established in WAC 173-442-090 or voluntarily participating under WAC 173-442-060(4) must have the covered party's compliance reports verified by a third party as specified in this section. Compliance reports must be third-party verified each year that:

(a) The covered party must make a compliance progress determination as established in WAC 173-442-090; or

(b) The covered party is voluntarily participating under WAC 173-442-060(4) and has a compliance obligation.

(3) Verification standards. The third-party verifier must certify that compliance reports are consistent with the relevant requirements and methods in this chapter

(4) Verification services. A verification report must be in a format specified by ecology and contain:

(a) Documentation identifying the covered party's reporting compliance.

(b) Documentation identifying the third-party verifier, including all relevant information about the third-party verifier in subsection (7)(a) of this section and the names, roles, and sector specific qualifications (if any) of all individuals working on the verification report.

(c) Documentation demonstrating and certifying that the requirements of subsection (7)(b) and (c) of this section have been met.

(d) A verification plan that details methodologies used to verify the compliance report and schedule describing when the verification services occurred.

(e) Documentation of the third-party verifier's review of the covered party's accounting of emissions, emissions reductions, emission reduction units, and all information relevant to demonstrating compliance with the applicable emission standards.

(f) Documentation of any corrections made to the annual compliance report.

(g) Documentation supporting the third-party verifiers' findings evaluating if the annual compliance report is compliant with the requirements in subsection (3) of this section. This must include a log of any issues (if any) identified in the course of verification, their potential impact on the quality of the compliance report, and their resolution.

(h) The individuals conducting the third-party verification must certify that the verification report is true, accurate, and complete to the best of their knowledge and belief.

(i) Information about the required on-site visit, including date(s) and a description of the verification services conducted on-site. At least one accredited verifier in the verification team, including the sector specific verifier, if applicable, must at a minimum make one site visit, during each compliance year. The third-party verifier must visit the headquarters or other location of central data management when the covered party is a supplier of petroleum products or supplier of natural gas and natural gas liquids. During the site visit, the third-party verifier must:

(i) Confirm that all relevant emissions, emission reductions, and accounting for emission reduction units are included in the compliance report.

(ii) Check that all sources specified in the compliance report are identified appropriately.

(iii) Review and understand the data management systems used by the covered party to track, quantify, and report GHG emissions and, when applicable, product data and fuel transactions. The third-party verifier must evaluate the uncertainty and effectiveness of these systems.

(iv) Interview key personnel.

(v) Make direct observations of equipment for data sources and equipment supplying data for sources determined to be high risk.

(vi) Assess conformance with measurement accuracy, data capture, and missing data substitution requirements.

(5) Compliance report corrections. Covered parties subject to this section must correct errors in their compliance report.

(a) Corrections are required if errors are identified by:

(i) The third-party verifier;

(ii) The covered party; or

(iii) Ecology.

(b) The covered party must maintain documentation to support any revisions made to the initial compliance report.

(c) Documentation for all compliance report submittals must be retained by the covered party for ten years.

(6) Timing. The third-party verifier must submit a complete verification report to ecology for each year as required under subsection (1) of this section no later than one hundred twenty days after the report submission due date for the covered party specified in WAC 173-441-085(6) for the emission year in which the applicable compliance period specified in WAC 173-442-100(1) ends. Any corrections to the compliance or verification report must be submitted to ecology no later than forty-five days after discovery of the error. Records must be retained following the requirements of WAC 173-441-050(6).

(7) Eligible third-party verifiers.

(a) Covered parties subject to this section must have their compliance report verified by a third-party verifier certified by ecology. Certification requires:

(i) Registering as a third-party verifier with ecology. Registration is required for both the verification organization and all individuals performing verification services for the verification organization.

(ii) Demonstrating to ecology's satisfaction that the third-party verifier has sufficient knowledge of the relevant methods and protocols in this chapter. Certification may be limited to certain types or sources of emissions.

(iii) Active accreditation or recognition as a third-party verifier under at least one of the following GHG programs:

(A) California ARB's mandatory reporting of greenhouse gas emissions program;

(B) California Climate Action Registry;

(C) The Climate Registry;

(D) Climate Action Reserve;

(E) American National Standards Institute (ANSI); or

(F) Other GHG verification standard approved by ecology.

(b) A covered party must not use the same third-party verifier (either organization or individuals) for a period of more than six consecutive years. The covered party must wait at least three years before using the previous third-party verifier to verify their compliance reports.

(c) A covered party and third-party verifier must certify that there is not a conflict of interest in verifying the compliance report. The potential for a conflict of interest must be deemed to be high where:

(i) The third-party verifier and covered party share any management staff or board of directors membership, or any of the senior management staff of the covered party have been employed by the third-party verifier, or vice versa, within the previous five years; or

(ii) Any employee of the third-party verifier, or any employee of a related entity, or a subcontractor who is a member of the verification team has provided to the covered party any services within the previous five years.

(iii) Any staff member of the third-party verifier provides any type of nonmonetary incentive to a covered party to secure a verification services contract.

(8) Ecology verification. Ecology retains full authority in determining if the compliance report contains a discrepancy, omission, or misreporting, or any aggregation of the three that impacts the verification status of the compliance report. Ecology may issue an adverse verification statement for a compliance report even if the compliance report has received a positive verification statement from the third-party verifier. Ecology may also issue an adverse verification statement for:

(a) Failure to submit a complete compliance report in a timely manner;

(b) Failure to complete third-party verification if required by this subsection; or

(c) Other forms of noncompliance with this chapter.

Any covered party that is an energy intense and trade exposed facility, as defined by this chapter, can petition ecology to modify or exempt them from their compliance progress determination as established in WAC 173-442-090 for a specific emissions year or years if they are experiencing unusual economic hardship. Unless a subsequent petition is approved, the covered party's normal compliance progress determination resumes upon the expiration of any approved petition beginning with the first year after the expiration of the approved petition and would be equal to their GHG emissions reduction pathway for that emissions year.

(1) Unusual economic hardship. A covered party may demonstrate that it is experiencing unusual economic hardship using either of the following standards:

(a) The covered party's earnings before taxes, including accounting for cost of compliance with this chapter, are less than or equal to zero dollars per year. This analysis is conducted at the facility level.

(b) The economic status of the covered party, including the cost of compliance with the requirements of this chapter, would result in the temporary or permanent closure of the covered party.

(2) Petition submittal. A covered party must submit a petition that meets the following conditions before ecology may review the petition and issue a determination.

(a) A covered party must submit a complete petition no later than one hundred eighty days prior to the compliance report deadline established in WAC 173-442-200 for the specified emissions year(s). Such petition must include sufficient information, as described in (b) of this subsection, for ecology to make a determination. Ecology will notify the covered party within thirty days of receipt of a petition of any additional information ecology needs to make the determination of whether the petition meets the criteria in subsection (1) of this section.

(b) A covered party with an expiring approved petition may petition for a subsequent petition, but the subsequent petition must meet all the standards of an original petition as outlined in this section and receive ecology approval independent of the original petition.

(c) The petition must include, at a minimum, the following information:

(i) Identifying information of the designated representative submitting a petition;

(ii) Identifying information of the covered party;

(iii) Documentation demonstrating the covered party's unusual economic hardship;

(iv) Documentation demonstrating any relationship between the unusual economic hardship and the requirements of this chapter;

(v) The emissions year(s) that the covered party requests a modification or exemption of their compliance progress determination as established in WAC 173-442-090;

(vi) The amount of the modification or exemption requested by the covered party;

(vii) Any other supporting data or information as requested by ecology as described in (a) of this subsection; and

(viii) The designated representative must sign and date the petition.

(3) Ecology review of the petition. Ecology must approve the petition before any modification or exemption of the covered party's compliance progress determination as established in WAC 173-442-090 takes effect. Ecology will issue a determination within sixty days of receiving a complete petition.

(a) Ecology must only approve modifications or exemptions to compliance progress determinations as established in WAC 173-442-090 for covered parties that ecology determines are experiencing an unusual economic hardship as defined in subsection (1) of this section.

(b) Only covered parties that are energy intense and trade exposed facilities, as defined by this chapter, are eligible for modifications or exemptions to their compliance progress determination as established in WAC 173-442-090.

(c) If ecology approves a petition, the approval will specify:

(i) The covered party;

(ii) The emissions year or years for which the modification or exemption to the compliance progress determination as established in WAC 173-442-090 is valid, which must be for no more than one compliance period; and

(iii) The amount of the modification or exemption to the compliance progress determination as established in WAC 173-442-090 for each emissions year specified in (c)(iii) of this subsection.

(4) Appeal of determination. An approval or denial issued by ecology in response to a written petition filed under this section is a determination appealable to the pollution control hearings board per RCW 43.21B.110 (1)(h).

Ecology will periodically review the program established by this chapter. If another program requiring GHG reductions from the same covered parties included in the chapter is established, ecology will compare the programs. Ecology may suspend, alter, or repeal some or all of the requirements contained in this chapter if ecology determines the new program requires similar or greater GHG reductions from the covered parties included in the chapter.

(1) Violations. A violation of any requirement of this chapter subjects the violator to enforcement as provided in chapter 70.94 RCW. Each metric ton of covered GHG emissions that a covered party emits that exceeds the covered party's compliance obligation, and is not covered by an emission reduction unit is a separate violation, and each day that the covered party does not meet the compliance obligation is a separate violation.

(2) Enforcement responsibility. Ecology is solely responsible for enforcing the requirements of this chapter. Nothing in this chapter otherwise alters a local air authority's ability to regulate covered parties in their jurisdiction.

(1) Emissions data. Emissions data submitted to ecology under this chapter are public information and must not be designated as confidential.

(2) Emission reduction unit data. Any data pertaining to emission reduction units is considered public information unless a request is made in accordance with subsection (3) of this section.

(3) Confidentiality requests. Any covered party submitting information to ecology under this chapter may request that ecology keep information that is not emissions data confidential as proprietary information under RCW 70.94.205 or because it is otherwise exempt from public disclosure under the Washington Public Records Act (chapter 42.56 RCW). All such requests for confidentiality must meet the requirements of RCW 70.94.205.

(4) Verification status. Ecology's determinations of the verification status of each report are public information. All confidential data used in the verification process will remain confidential.

All requests, notifications, and communications to ecology pursuant to this chapter, must be submitted in a format as specified by ecology to either of the following:

(1) For U.S. mail: Clean Air Rule, Air Quality Program, Department of Ecology, P.O. Box 47600, Olympia, WA 98504-7600.

(2) For e-mail: AQComments@ecy.wa.gov.

If any provision of the regulation or its application to any covered party, person, or circumstance is held invalid, the remainder of the regulation or application of the provision to other covered parties, persons, or circumstances is not affected.