5 Colo. Code Regs. § 1001-9-B-IV

Current through Register Vol. 47, No. 24, December 25, 2024

Section 5 CCR 1001-9-B-IV - (State Only) Control of Emissions from Natural Gas Transmission and Storage Segment

IV.A. Definitions

IV.A.1. "Best management practice" (BMP) means a demonstrated and commercially available or innovative emission-reducing technology or work practice.

IV.A.2. "Best management practices plan" (BMP plan) means a written plan that includes, but is not limited to, each natural gas transmission and storage segment owner or operator's planned and implemented BMPs to reduce methane emissions from its facilities within the natural gas transmission and storage segment.

IV.A.3. "Natural gas transmission and storage segment" (segment) includes onshore natural gas transmission pipelines, onshore natural gas transmission compression, underground natural gas storage, and liquefied natural gas (LNG) storage, as these terms are defined in 40 CFR Part 98, Section 98.230 (October 22, 2015), that are physically located in Colorado.

IV.A.4. "Natural gas transmission and storage segment Colorado throughput" (segment throughput) means the total volume of natural gas, as adjusted for methane, transported through transmission pipelines in Colorado as reported to the Department of Energy's (DOE) Energy Information Administration (EIA) for Form 176, excluding net volumes stored as liquefied natural gas or in underground storage facilities.

IV.A.5. "Natural gas transmission and storage segment emissions inventory protocol" (inventory protocol) means the requirements by which natural gas transmission and storage segment owners or operators will quantify and report methane, ethane, carbon monoxide (CO), carbon dioxide (CO2), nitrous oxide (N2O), nitrogen oxides (NOx), and volatile organic compound (VOC) emissions. The protocol will specify the segment facilities and types of activity data collected, emissions quantification methodologies, throughput calculation methodologies, criteria for determining whether events are beyond the control of the owner or operator, and the process for designating and protecting confidential business information (CBI), consistent with Colorado law.

IV.A.6. "Performance-based program" means a program of BMPs implemented and documented by each natural gas transmission and storage segment owner or operator to reduce methane emissions in order to achieve the system-wide emissions intensity target.

IV.A.7. "Steering committee" means five members approved by the Division to serve as a technical working group for developing program guidance documents and evaluating progress against the system-wide emissions intensity target. The committee members will include two representatives from natural gas transmission and storage segment owners or operators (or industry trade organizations representing owners or operators), two members representing the general public (including but not limited to environmental organizations, local government groups, or citizens), and one Division member.

IV.A.8. "Segment-wide emissions intensity" means the natural gas transmission and storage segment methane emissions divided by the natural gas transmission and storage segment throughput.

IV.A.9. "Segment-wide emissions intensity target" (segment-wide target) means the target established by the steering committee reflected as annual segment-wide methane emissions from Colorado's natural gas transmission and storage segment divided by the annual natural gas transmission and storage segment Colorado throughput.

IV.B. Beginning January 1, 2020, each segment owner or operator must participate in this performance based program to reduce segment-wide methane emissions.

IV.B.1. By April 1, 2020, a steering committee charter and the steering committee members will be approved by the Division.

IV.B.2. By September 30, 2020, the Division will publish the inventory protocol and any associated program guidance documents developed by the steering committee.

IV.B.3. By December 31, 2020, each segment owner or operator must develop a company-specific BMP plan. The BMP plan must contain each element from the BMP plan template chapter of the program guidance document, which will include, but is not limited to, a list of information the owner or operator must collect to demonstrate the BMPs performed. By December 31st of each year (beginning December 31st, 2021), each owner or operator must review and update, as appropriate, its company-specific BMP plan and document in the BMP plan any changes.

IV.B.4. Beginning January 1, 2021, each segment owner or operator will:

IV.B.4.a. Implement company specific BMP plans.

IV.B.4.b. Collect emissions inventory data in accordance with the inventory protocol and its company-specific BMP plan.

IV.B.5. By May 1, 2022, the segment owners or operators will select a third-party contractor from a pool of qualified applicants to receive, safeguard, and aggregate company-specific reports as described in Sections IV.D.3. and IV.D.4. The steering committee will establish criteria for the selection of the third-party contractor. The segment owners and operators will use a competitive bidding process to solicit applications from contractors who meet the criteria and will provide an opportunity for the steering committee to reject unqualified applicants.

IV.B.6. By October 1, 2023, the steering committee will determine the segment-wide emissions intensity target using the 2021 and 2022 emissions inventory data. In developing the initial or updated segment-wide emissions intensity target and evaluating the program, the steering committee may request non-company specific information from the Division (in accordance with the Colorado Opens Record Act) or the third-party contractor to assist in setting such target or such evaluation. The steering committee may ask companies to explain emission factors and methodologies used to calculate or measure emissions.

IV.C. The segment-wide emissions intensity target must first be achieved by January 1, 2025, based on the 2024 reporting year.

IV.C.1. By October 1 of each year (beginning October 1, 2025), the steering committee will submit a compliance certification to the Division that the segment achieved the segment-wide emissions intensity target for the prior calendar year.

IV.C.2. If the steering committee cannot certify compliance with the segment-wide emissions intensity target, the steering committee will develop a plan (which may include amendments to program guidance documents) and timeline for the segment to achieve compliance with the segment-wide emissions intensity target.

IV.C.3. Beginning January 1, 2026, and every three (3) years thereafter if appropriate, the steering committee will assess the segment-wide emissions intensity target for continual improvement.

IV.D. Recordkeeping and reporting

IV.D.1. The Division will provide an update on the development of this program and initial implementation efforts to the Air Quality Control Commission during a scheduled Commission meeting on or after January 2021.

IV.D.2. Segment owners or operators must maintain BMP plans and emissions inventory reports for a period of five (5) years and make records available to the Division upon request.

IV.D.3. By June 30 of each year (beginning June 30, 2022), owners or operators of the natural gas transmission and storage segment will submit company-wide reports to the third-party contractor.

IV.D.3.a. Emissions claimed to be beyond the control of the owner or operator, using the criteria and methods established by the steering committee, must be included in the company-wide report but will not be used to set or determine compliance with the segment-wide emissions intensity target.

IV.D.3.b. Emissions and emission reductions associated with any requirements of the Pipeline and Hazardous Materials Safety Administration (PHMSA), the Colorado Public Utilities Commission (CPUC), and/or the Federal Energy Regulatory Commission (FERC) must be included in the report and used for purposes of calculating compliance with the system-wide emissions intensity target, unless they qualify under Section IV.D.3.a., but this Section IV. does not supersede or alter these agencies applicable regulations or requirements.

IV.D.4. The third-party contractor must aggregate the company-wide reports into a segment-wide report and provide it to the steering committee by August 15 of each year (beginning August 15, 2022) on a form developed by the steering committee and approved by the Division. The segment-wide report must include, at a minimum

IV.D.4.a. The segment-wide emissions, apportioned by county,

IV.D.4.b. A report of the numbers and types of events subject to Section IV.D.3.a. and the segment-wide emissions resulting from each type of event.

IV.D.4.c. The BMPs implemented to mitigate or avoid emissions and a description of how the BMPs mitigate, reduce, and/or avoid emissions.

IV.D.4.d. The segment-wide segment throughput.

IV.D.4.e. The segment-wide emissions intensity. If the steering committee determines that one or more types of events reported under Section IV.D.4.b. were not beyond the control of the owner or operator, the steering committee will revise the segment-wide emissions intensity calculation to include the methane emissions from those events.

IV.D.5. Segment owners or operators must submit an annual certification to the Division by June 30 of each year (beginning June 30, 2021) that includes

IV.D.5.a. A certification that the company-specific BMP plan was developed or reviewed in accordance with Section IV.B.3.

IV.D.5.b. A certification that the company-wide report was submitted to the third-party contractor in accordance with Section IV.D.3.

IV.D.5.c. Beginning in 2022, a certification of company BMP plan compliance in accordance with Section IV.B.4., including

IV.D.5.c.(i) The company's implementation of the BMPs in the company-specific BMP plan.

IV.D.5.c.(ii) Instances of non-conformance with the company-specific BMP plan, reason(s) for non-conformance, and any modifications of the applicable element(s) of the BMP plan.

IV.D.5.c.(iii) Any use of alternative emission reduction approaches not specified in the company-specific BMP plan.

IV.D.5.d. With each submission under Sections IV.D.5.a. through IV.D.5.c., a certification by a responsible official that, based on information and belief after reasonable inquiry, the statements and information in the document are true, accurate, and complete.

IV.D.6. The Division may provide an update briefing to the Air Quality Control Commission during a scheduled Commission meeting on or after October 1 of each year (beginning October 1, 2022). The update briefing will include any assessment of the segment-wide target, as specified in Section IV.C.3.

5 CCR 1001-9-B-IV

46 CR 16, August 25, 2023, effective 9/14/2023

47 CR 02, January 25, 2024, effective 2/14/2024