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Feb 26, 2021  
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As now conceived, the energy analysis element will analyze the potential downstream impacts of a project that: (1) increases the flow or capacity of energy supply, (2) creates a new route or line of energy supply, or (3) creates a new type or form of energy supply, if GHG emissions may be affected. The energy analysis may also be used to account for geographic leakage of GHG, i.e., if the project results in moving GHG emissions out of state. Finally, the energy analysis may also include a review of potential market effects of the project, i.e., the implications of a shift in energy supply. While the scope of the energy analysis is far from clear, it appears that Ecology is intending for the analysis to capture GHG emissions that may be associated with the creation of different forms of energy, e.g., refined petroleum, electricity, or potentially biofuels or other new types of energy supplies. The life cycle analysis evaluates the 20-year and 100-year global warming potentials for all GHG associated with the subject facility. The life cycle analysis component will rely upon a framework established by the International Organization for Standardization (ISO). A typical GHG life cycle analysis includes an accounting of the upstream and downstream emissions associated with the project, including transportation, leakage, and market and indirect emissions implicated by the project. The ISO standards proposed by Ecology will set requirements for collecting, calculating, and validating data, and will guide the selection impact categories and category indicators. The life cycle analysis will also include a review of market and geographic leakage effects, as Governor Inslee’s directive specifically requested Ecology include these components in the new rule. These upstream and downstream emissions are interrelated and complex, not usually included in a standard GHG life cycle analysis, and are typically time and resource intensive. Ecology is still considering whether to base the life cycle analysis on gross emissions (emissions associated only with the project) or net emissions (project emissions relative to alternative market scenarios). The final component of the GAP Rule is to ensure no net increases in GHG emissions attributable to a covered facility through implementation of mitigation measures. The environmental assessment process for covered facilities will define the emissions subject to mitigation, in contrast to the case-by-case method used for projects that do not meet the GAP Rule screening threshold. To offset those emissions, project applicants would develop a GHG mitigation plan, which would include the basis, criteria, and location of mitigation projects. Ecology has stated that mitigation will be allowed through direct funding of mitigation projects, as well as by purchasing carbon offsets from qualified and verified carbon markets. While the GAP Rule strives to provide greater consistency when qualifying and allocating GHGs for projects, many questions still exist as to the scope of the rule.

https://www.natlawreview.com/article/washington-department-ecology-preparing-new-rule-to-assess-greenhouse-gas-emissions

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