Suppliers of Natural Gas and Natural Gas Liquids Final Rule: Mandatory Reporting of Greenhouse Gases Agency Under the Mandatory Reporting of Greenhouse Gases (GHGs) rule, suppliers of natural gas and natural gas liquids (NGLs) must report the emissions that would result from the complete combustion or oxidation of the products that they place in commerce. Suppliers of natural gas and NGLs are required to collect data on their products; calculate the GHG emissions associated with these products; and follow the specified procedures for ensuring data quality, amending missing data, and meeting recordkeeping and reporting requirements. Natural gas fractionators should also note other potential source categories that are required to report emissions under the proposed rule. How Is This Source Category Defined? Suppliers of natural gas and NGLs are defined as natural gas liquids fractionators and local natural gas distribution companies (LDCs), as follows: • Natural gas liquids fractionators are installations that fractionate NGLs into their constituent liquid products (ethane, propane, normal butane, isobutene, or pentanes plus) for supply to downstream facilities. • Local distribution companies are companies that own or operate distribution pipelines that physically deliver natural gas to end users and that are regulated as separate operating companies by state public utility commissions, or that operate as independent municipally owned distribution systems. Companies that operate interstate or intrastate pipelines are not part of this source category. This supply category does not include the following facilities: • Field gathering and boosting stations. • Natural gas processing plants that separate NGLs from natural gas and produce bulk or y-grade NGLs but do not fractionate these NGLs into their constituent products. • Facilities that meet the definition of refineries and report under subpart MM (Suppliers of Petroleum Products). • Facilities that meet the definition of petrochemical plants and report under subpart X (Petrochemical Production). What GHGs Must Be Reported? Natural gas fractionators must report carbon dioxide (CO2) emissions that would result from the complete combustion or oxidation of the annual quantity of ethane, propane, normal butane, isobutane, and pentanes plus that is sold or delivered to others. Local distribution companies must report CO2 emissions that would result from the complete combustion or oxidation of the annual volumes of natural gas provided to end users on their distribution systems. United States Environmsntel Protection 40 CFR 98, subpart NN 1 EPA-430-F-09-004R September 2009 ------- How Should GHG Emissions Be Calculated? Two different methods can be used to calculate CO2 emissions that would result from the complete oxidation or combustion of the product supplied: • Calculation Methodology 1: Calculate CO2 mass emissions from a natural gas or NGL product by multiplying the volume of product by its higher heating value (HHV) and its CO2 emission factor (EF). Use either measured or default fuel HHVs and CO2 EFs. • Calculation Methodology 2: Calculate CO2 mass emissions from a natural gas or NGL product by multiplying the volume of product by its CO2 EF. Use either measured or default CO2 EFs. A checklist for data that must be monitored is available at: www.epa.gov/climatechange/emissions/downloads/checklists/suppliersnaturalgas.pdf. What Information Must Be Reported? In addition to the information required by the General Provisions at 40 CFR 98.3(c), each NGL fractionator must report the following information: • Annual CO2 emissions in metric tons associated with all NGLs supplied, excluding emissions from quantities of NGL received from other fractionators. • Annual CO2 emissions in metric tons associated the total quantities of NGL that are supplied to facilities, reported in the following product categories: o Ethane o Propane o Normal butane o Isobutene o Pentanes plus • Annual quantities in barrels (bbl) of ethane, propane, normal butane, isobutane, and pentanes plus and the specific industry standard used to measure these quantities. • Annual quantities in bbl received from other NGL fractionators of ethane, propane, normal butane, isobutane, and pentanes plus. • Annual volume in millions of standard cubic feet (Mscf) of natural gas received for processing. • Annual quantity in bbl of y-grade, bulk NGLs received from others for fractionation. • Annual quantity in bbl of propane that the NGL fractionator odorizes at the facility and delivers to others. • Developed EFs and HHVs and the industry standard(s) used to develop them, if the NGL fractionator developed site-specific EFs or HFTVs. • Number of days in the reporting year for which substitute data procedures were used to measure quantity, develop HHVs, and develop EFs. In addition to the information required by the General Provisions at 40 CFR 98.3(c), each LDC must report the following information at the corporate level: • Annual CO2 mass emissions in metric tons associated with gas delivered to each meter that receives 460,000 Mscf or more per year. • Annual CO2 mass emissions in metric tons associated with gas delivered to all meters that receive less than 460,000 Mscf per year (excluding emissions from gas delivered to other pipelines or LDCs and gas stored for future deliveries.) • Annual CO2 mass emissions in metric tons that would result from the complete combustion or oxidation of the seven reported volumes that follow. 40 CFR 98, subpart NN 2 EPA-430-F-09-004R September 2009 ------- • Annual volume in Mscf of natural gas received at its city gate stations for redelivery on its distribution system, including for use by the LDC, and the specific industry standard used to measure this volume. • Annual volume in Mscf of natural gas that is used for deliveries in the reporting year that was not otherwise accounted for in the above reported volume. This primarily includes natural gas previously stored on-system or liquefied and stored, which is removed from storage and used for deliveries to customers or other LDCs by the LDC within the reporting year. This also includes natural gas that bypassed the city gate and was delivered directly to LDC systems from producers or natural gas processing plants from local production. • Annual volume in Mscf of natural gas withdrawn from on-system storage for delivery on the distribution system. • Annual volume in Mscf of natural gas placed into storage, including gas liquefied and placed into storage. • Annual volume in Mscf of natural gas delivered directly to LDC systems from producers or natural gas processing plants from local production. • Annual volume in Mscf of natural gas delivered to downstream gas transmission pipelines and other LDCs. • Annual volume in Mscf of natural gas delivered to each meter registering supply equal to or greater than 460,000 Mcsf during the calendar year and the customer name, address, meter number, and EIA identification number (if known) of each meter reading used. • Developed EFs and HHVs and the industry standard(s) used to develop them, if the LDC developed site-specific EFs or HHVs. • Annual volume in Mscf of natural gas delivered to each of the following end-user categories: o Residential consumers. o Commercial consumers. o Industrial consumers. o Electricity-generating facilities. • Number of days in the reporting year for which substitute data procedures were used to measure quantity, develop HHVs, and develop EFs. For More Information This document is provided solely for informational purposes. It does not provide legal advice, have legally binding effect, or expressly or implicitly create, expand, or limit any legal rights, obligations, responsibilities, expectations, or benefits in regard to any person. The series of information sheets is intended to assist reporting facilities/owners in understanding key provisions of the final rule. Visit EPA's Web site (www.epa.gov/climatechange/emissions/ghgrulemaking.html') for more information, including the final preamble and rule, additional information sheets on specific industries, the schedule for training sessions, and other documents and tools. For questions that cannot be answered through the Web site, please contact us at: ghgmrr@epa.gov. 40 CFR 98, subpart NN 3 EPA-430-F-09-004R September 2009 ------- |