Project Title: Investigation of the feasibility of greenhouse gas offset projects in Santa Barbara County

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1 Bren School Group Project Project Title: Investigation of the feasibility of greenhouse gas offset projects in Santa Barbara County Proposers: Brian Shafritz, SBC Air Pollution Control District: (805) ; Lily Brown, MESM student, The Bren School: ; Dan Hannigan, MESM student, The Bren School: ; Problem Statement Within the next couple of years, Santa Barbara County will undertake a number of projects that will significantly increase local annual greenhouse gas (GHG) emissions. One of these projects alone is projected to release approximately 90,000 metric tons of carbon dioxide annually which is approximately ten percent of existing stationary source GHG emissions in Santa Barbara County. 1,2 In order to comply with California Environmental Quality Act (CEQA) requirements, emissions need to be mitigated or offset to a level of insignificance. 3 Although it would be possible to meet offset targets by purchasing carbon emission reduction credits from a national or international exchange, both county residents and decision-makers have expressed in public forums and meetings that they would prefer generating and utilizing local GHG reductions. The main benefits of localized solutions are that they have the potential to keep jobs and other economic benefits in the county as well as supplement the county s efforts towards meeting State and Federal air quality standards. There is considerable potential to develop localized emissions offsets in Santa Barbara County. However, it will be necessary to conduct an in depth investigation into which offset methods could be successfully implemented and yield substantial GHG reductions in our unique region. This project will explore the feasibility of a number of different offset methods and help policy-makers make informed decisions regarding offset implementation in Santa Barbara County in the future. In our determination of feasibility, the following factors will be considered: 1. Financial feasibility and potential volume of offsets: We will customize the Mckinsey cost curve in order to determine the cost and potential volume of emissions offsets that will result from the implementation of different methods in Santa Barbara County. 4 The results of this analysis will help decide which offset methods we will continue to explore. 2. Obstacles: We will identify potential policy and permit obstructions to implementation of offset methods. We will also ensure that potential methods are not already in existence and will explore whether these projects might involve competition with other resource areas. 3. Scalability and longevity: We will assess whether potential offsets can persist in the long term and/or whether there is a capacity to expand on initiatives at a later time. We will also consider if approaches are in agreement with other long-term community goals. 1. Santa Barbara County Planning and Development. Final Environmental Impact Report: Santa Maria Energy Oil Drilling and Production Plan 2. Santa Barbara County Air Pollution Control District. Final 2010 Clean Air Plan: Santa Barbara County s Plan to Attain the State Ozone Standard. Santa Barbara, "CEQA Significance Thresholds for GHGs - Questions and Answers." Santa Barbara County Air Pollution Control District. N.p., May Web. 24 Jan Enkvist, Per-Anders, Tomas Nauclér, and Jerker Rosander. "A Cost Curve for Greenhouse Gas Reduction." McKinsey & Company. N.p., Feb Web. 24 Jan

2 Project Objectives The project objective is to produce a report outlining the overall feasibility and GHG reduction potential of a number of different local offset initiatives in Santa Barbara County. Project Significance This report is the critical first step to implementing local GHG offsets in Santa Barbara County. Although the relative costs and effectiveness of different offset methods have been evaluated on a larger scale (ie. state, national, and global levels), those analyses are not sufficient to inform us which offsets will be particularly well-suited to Santa Barbara County. We will perform the necessary analysis required and generate a comprehensive report that will serve as a valuable tool to guide policy decisions in the future. Additional Stakeholders Santa Barbara County Residents California Legislators Proposers of new development in Santa Barbara County Local land use agencies (cities and counties in the region) Possible Approaches and Available Data 1. An initial screening of GHG reduction approaches will be conducted, followed by a more rigorous analysis of those measures that pass the screening. The screening will involve an assessment of the cost and abatement potential of a number of different offset methods. The McKinsey cost curve, a curve that identifies cost per ton data for various GHG reduction methods, will be useful in the initial screening. It is envisioned that the curve will be a primary tool to help determine which GHG reduction approaches are most feasible at the local level. The Mckinsey curve and other methods will be reviewed and applied in the analysis as appropriate. 2. Potential offset methods will then be subjected to a thorough analysis of the potential obstacles obstructing implementation. We will look at laws, regulations, codes, and permit requirements. If none of them prove entirely prohibitive, we will compile a guide citing the steps that must be taken and guidelines that must be followed to implement the specific GHG reduction methods. 3. The longevity and scalability of the methods will be analyzed through looking at applicable local information. There are ample data sets available for use in our project. Some of the data that we plan to use include: the California census, solar efficiency data, housing retrofit information, transportation initiatives, and emission regulations. The information in these documents and data sets provide the inputs required for the Mckinsey cost curve and will aid us in the determination of GHG emissions offset potential. A comprehensive list of available data and industry contacts that we have compiled thus far are attached at the end of this document.

3 Deliverables The project should deliver written assessments and recommendations regarding the options evaluated, including findings on the points identified in the Possible Approaches and Available Data section above. Background Information Annual greenhouse gas emissions from California have increased from approximately 427 to 448 million metric tons of carbon dioxide equivalent between 1990 and California's contribution to national GHG emissions is significant totaling to 6.7% of the United States annual output in In order to address California's GHG emissions problem, two State level initiatives were passed: the California Global Warming Solutions Act of 2006 (AB 32) and the 2010 amendments to the California Environmental Quality Act (CEQA). AB 32 requires California to reduce GHG emissions to 1990 levels by The main provisions in this law requires California to monitor and report GHG emissions annually and prompted the California Air Resources Board (ARB) to draft a plan (the AB 32 Scoping Plan) outlining the most cost-effective and realistic way for California to achieve this reduction goal. 7 One of the main contributions of the AB 32 Scoping Plan was the formation of the market-based cap-and-trade system for GHG emissions. 8 The CEQA amendments of 2010 require that state and local agencies quantify GHG emissions from new projects, determine if project emissions are significant and if significant, determine ways to mitigate, reduce, and/or avoid impacts if possible. 9 Almost all physical building projects in California are subject to CEQA provisions. 9 It is critical that Santa Barbara County comply with CEQA requirements and contribute to California s goal of GHG emission reductions to 1990 levels by Budget and Justification SBCAPCD can provide consultation, office space, access to computers, faxes, and supervision as an in-kind support for this project. In addition, we will make the following monetary commitments: $ 1,000: Research and report expenses (Bren School) (photocopying, supplies, data acquisition, publication, etc.) $ 4,000: Summer Internship for one student (Santa Barbara County Air Pollution Control District 5 California Global Warming Solutions Act of 2006, 6 EPA (2013). Inventory of US Greenhouse Gas Emissions and Sinks. Environmental Protection Agency. Inventory-2013-Main-Text.pdf 7 The California Air Resources Board for the State of California. Climate Change Scoping Plan California Cap On Greenhouse Gas Emissions and Market-Based Compliance Mechanisms to Allow for the Use of Compliance Instruments Issues by Linked Jurisdictions CCR Section Frequently Asked Questions About CEQA." California Natural Resources Agency. N.p., n.d. Web. 24 Jan

4 Internship Opportunities The Santa Barbara Air Pollution Control District is prepared to fund a summer internship for one Bren School student to continue work on this project and related climate change activities. This will allow a student to work directly within our agency on current climate change issues. Client and Contact Information Brian Shafritz Manager Technology & Environmental Assessment Division Santa Barbara County Air Pollution Control District ShafritzB@sbcapcd.org (805) ofc References 1. Santa Barbara County Planning and Development. Final Environmental Impact Report: Santa Maria Energy Oil Drilling and Production Plan and Laguna County Sanitation District Phase 3 Recycled Water Pipeline. Santa Barbara, Santa Barbara County Air Pollution Control District. Final 2010 Clean Air Plan: Santa Barbara County s Plan to Attain the State Ozone Standard. Santa Barbara, "CEQA Significance Thresholds for GHGs - Questions and Answers." Santa Barbara County Air Pollution Control District. N.p., May Web. 24 Jan Enkvist, Per-Anders, Tomas Nauclér, and Jerker Rosander. "A Cost Curve for Greenhouse Gas Reduction." McKinsey & Company. N.p., Feb Web. 24 Jan California Global Warming Solutions Act of 2006, 6. EPA (2013). Inventory of US Greenhouse Gas Emissions and Sinks. Environmental Protection Agency. Text.pdf 7. The California Air Resources Board for the State of California. Climate Change Scoping Plan California Cap On Greenhouse Gas Emissions and Market-Based Compliance Mechanisms to Allow for the Use of Compliance Instruments Issues by Linked Jurisdictions CCR Section Frequently Asked Questions About CEQA." California Natural Resources Agency. N.p., n.d. Web. 24 Jan. 2014

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6 Potential Data Sources SUPPLEMENTAL Retrofit existing housing stock for energy efficiency o Census 2010 data for Santa Barbara County Housing and Population o Clean Energy Sacramento Program (PACE Program) o City of San Diego Home Energy Upgrade Loan Program Solar (small, medium, large; new development, or in the built environment) o Cuyama Solar Array Project, Staff Contact: Kathy Pfeifer, Energy Division, County of Santa Barbara, Phone: (805) , kathypm@co.santabarbara.ca.us o Calle Real Campus One Megawatt Solar Array, Staff Contact: Roy Hapeman, General Services Department, County of Santa Barbara, Phone: (805) , rhapema@co.santa-barbara.ca.us, Website: Wind offshore, onshore o Lompoc Wind Energy Project, Staff Contact: Kevin Drude, Energy Division, County of Santa Barbara, Phone (805) , Kevin@co.santabarbara.ca.us o Current Bren Group Project Evaluating Offshore Wind Energy Potential and Stakeholder Analysis on the California Central Coast Flare gas to sales line or other beneficial use o APCD permitted facility data Offshore methane seep capture o 2002 Bren Group Project Marine Hydrocarbon Seep Capture: Feasibility and Potential Impacts, Santa Barbara, California o APCD Permit to Operate for the seep containment device and the associated reports to APCD (historical quarterly reports and the current semiannual reports) on the seep gas captured Solar powered ag irrigation pumps o APCD ag engine registration data Ozone depleting substances o Refrigeration facilities in the County o ARB online registration and reporting tool Refrigerant Registration and Reporting System (R3) o Semi-conductor facilities in the County 7-8 facilities on permit with APCD with 3 years of annual reports containing fluorinated gas data

7 Renewable/alternative fuels/transportation o Public fleets in the County number of cars that could be upgraded to biofuels, electric, hydrogen fuel cell o Leslie Goodbody and Gerhard Achtelik, ARB - Hydrogen Infrastructure Planning o Catherine Dunwoody or Bill Elrick, California Fuel Cell Partnership, o Governor s Office of Planning and Research (OPR), ZEV Community Readiness Guidebook o Tyson Eckerle, Energy Independence Now, Tyson@einow.org o Joshua Cunningham, ARB - Transportation Systems Planning o ARB Staff Report: Initial Statement of Reasons Advanced Clean Cars 2012 Proposed Amendments to the California Zero Emission Vehicle Program Regulations o ARB Staff Report: Initial Statement of Reasons Advanced Clean Cars 2012 Proposed Amendments to the Clean Fuels Outlet Regulation o Center for Clean Air Policy (CCAP). Transportation Emission Guidebook TIAX Results of 2005 Literature Search Conducted by TIAX on behalf of SMAQMD Project in lieu of burning vegetative waste (forestry, ag, haz reduction, waste reduction) o Santa Barbara County Fire Department - hazard reduction or vegetation management Composting in lieu of anaerobic decomposition o Landfill emissions data from permit for Tajiguas and Santa Maria Regional? o o =Santa+Barbara&FAC=Disposal o Quantification of Greenhouse Gas Emissions from Windrow Composting of Garden Waste, Andersen, Boldrin, Samuelsson, Christensen, Scheutz, Journal of Environmental Quality, 1/12/20, pg o ing/compost%20ef.pdf o o Carbon dioxide and ammonia emissions during composting of mixed paper, yard waste and food waste. Dimitris P. Komilis, Robert K. Ham. Waste Management 26 (2006) Cogeneration o Combined Heat and Power Units located in California o Waste Water Treatment Plants (WWTPs) in the County (12)

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