In this Emerging Issues Commentary, Steven Jones of the Marten Law Group discusses revised versions of two key documents issued at the end of July 2008 by the Western Climate Initiative (WCI): (1) a draft scoping paper that broadens the coverage of the WCI’s proposed regional cap and trade system to include the transportation sector, and (2) draft greenhouse gas emission reporting requirements.

“The most significant changes from the previously-released rules are: (1) the inclusion of transportation fuels, and residential and small commercial/industrial facilities in the program; (2) refinement of the role of offsets in meeting emission reduction targets; and (3) establishment of an annual reporting threshold of 25,000 tons of carbon dioxide equivalents,” Mr. Jones writes.

The WCI program covers all six greenhouse gases: carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons and sulfur hexafluoride. The updated July Draft Design recommendations clarify the emission sources that will be included in the emissions baseline.

“The most significant updates are clarifications regarding how emissions from the transportation sector and residential, commercial and industrial emitters will be incorporated into the WCI’s emission reduction program,” Mr. Jones says.  “Emissions from electricity generation, including emissions from electricity imported into WCI jurisdictions from non-WCI jurisdictions, are included. Residential, commercial, and industrial fuel combustion at facilities below the WCI thresholds will be included in a second compliance period — starting in January 2015 — as will transportation fuel combustion from gasoline and diesel. . . .

“One question that remains open from the previous draft rules is whether emission reports go directly to The Climate Registry, a North American organization that provides guidelines for entity-wide reporting across sectors and a registry service, or to Partner agencies first and then to The Climate Registry,” he says.

Subscribers to www.Lexis.com may read much more about the topic by purchasing Mr. Jones’ entire expert commentary at Marten Law Group: Western Climate Initiative Issues Updated Scoping, Reporting Rules.