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PreRulemakingPublicMeetingtoDiscuss
2018LCFSPreliminaryDraftRegulatoryAmendmentText
INDUSTRIALSTRATEGIESDIVISIONTRANSPORTATIONFUELSBRANCH
NOVEMBER6,2017SACRAMENTO,CA
MeetingParticipation
PostedmaterialscanbefoundontheLCFSMeetingswebpageo https://www.arb.ca.gov/fuels/lcfs/lcfs_meetings/lcfs_meetings.htm
WatchandlistenviatheWebcast:o https://video.calepa.ca.gov/
Askquestionsorprovidefeedbackduringtheworkingmeetingo [email protected] Participateviaconferencecall
TollFree:8885665916 Toll/OutsidetheUnitedStates:17737564816 ParticipantCode:9886883
Feedbackshouldbesentto: [email protected] byDecember4,2017
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AgendaOutline
PotentialAmendmentstotheLowCarbonFuelStandard:o Protocolforcarboncaptureandsequestrationprojectso Bufferaccountsandupdatestocreditprovisionso Renewableelectricityandhydrogeno Updatestolifecycleanalysismodelingtoolsandrelatedpathwayissueso Creditingprovisionsforrefineries
Miscellaneousupdates RulemakingTimeline NextSteps OpenDiscussion
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SupportingInformationandDraftMaterials
DraftCCSProtocol DraftCAGREET3.0 DraftLookupTablePathwayDocuments UpdatedDraftSimplifiedCIcalculatorsandtheirrespectiveTier1Manuals
o CornEthanolo SugarEthanolo BiodieselandRenewableDieselo LandfillGastoRNG
NewPreliminaryDraftRegulatorylanguage,includingo CarbonIntensityBenchmarkso LookupandTemporaryFuelPathwayTablesoOthersegmentsrelatedtotodaysdiscussiontopics
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PostedmaterialscanbefoundontheLCFSMeetingswebpagehttps://www.arb.ca.gov/fuels/lcfs/lcfs_meetings/lcfs_meetings.htm
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AccountingandPermanenceProtocolforCarbonCaptureandGeologicSequestrationundertheLCFS (CCSProtocol)
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CCSDiscussionOutline
Background
ReviewPreliminaryDraftofCCSProtocol.
CCSPermanenceRequirements
CCSAccountingRequirements
OpenDiscussion
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Background
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PotentialforCCSinCalifornia
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CO2 storagepotentialinCAo 30420Gigatonne onshoreformationcapacity(California
GeologicalSurvey,2011)o Offshoresubseabedoffersadditionalcapacity
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2018LCFSAmendmentsforCCS
ExistingprovisionsforpotentialCCSgenerationofLCFScredits: Refineryinvestmentcredits Innovativecrudeproductioncredits,and Provisionsforfuelpathways
StaffisconsideringproposingtoincludeprovisionsforcreditingdirectaircaptureCCSprojects
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CCSProjectsinLCFS
Creditsgotocapturefacility Currentproposal:storagefacilitymustbecoapplicant Captureandstoragefacilitiesdonotneedtobecolocated MustcomplywithCCSprotocol NocreditsissueduntilCCSProtocolisapprovedandprojectmeetsallprotocolrequirements
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LessonsLearnedfromUndergroundNaturalGasStorageLeaks
Highqualitysiteselectionthatminimizesleakageriskisimportant Wellintegrityrequirementsneedtobestrong Rigorousmonitoringisnecessary Bestpracticesneedtobefollowed
o DOEsNationalEnergyTechnologyLabpublishedseveralbestpracticemanuals
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DraftCCSProtocolisAvailable
DraftCCSProtocolmadeavailablepublically(includingaccountingandpermanencerequirements)https://www.arb.ca.gov/fuels/lcfs/lcfs_meetings/lcfs_meetings.htm
CCSProtocolanticipatedtobeproposedtobeincorporatedintotheLCFSaspartof2018amendmentrulemaking
StaffcontinuestorefinetheCCSProtocol
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CCSPermanenceRequirements
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GeneralProcessforCCSProtocolAdoptionandImplementation
CCSprotocol(includesaccountingandpermanencerequirements)
LCFSamendment(incorporatesCCSprotocolbyreference)
ProjectapplicationpursuanttoCCSprotocolandLCFS
Projectcrediting
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ProjectProcessUnderCCSProtocol
Applicationforsite
certificationInjectionsitecertification
WellConstruction
Applicationforinjectionstartandcrediting
Injectionstartandcreditingcertification
Injectionoperationand
crediting
Injectioncompletion
Postinjectionmonitoring Siteclosure
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OverallPermanenceRequirements
Permanencecertificationo Sequestrationsitecertificationo Injectionstartandcreditingcertification
WellconstructionOperatingrequirementsMonitoringrequirements Financial,postinjection,andotherrequirements
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PermanenceCertification
Applicationforsequestrationsitecertificationo Includessitecharacterizationo Includesallnecessaryplans(e.g.wellconstruction,monitoring,financialinstruments,emergencyresponse)
oMustbereviewedbythirdparty,independent,professionalgeologist priortosubmittal
CARBcertificationofsequestrationsite Applicationforinjectionstartandcrediting
oSubmittedafterwellconstructionoMustbereviewedbythirdparty,independent,professionalpetroleumengineerpriortosubmittal
CARBcertificationforcreditingofinjectedCO2
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SiteCharacterization:FocusAreas
Minimumsiteselectioncriteria Sitebasedriskassessment Geologicandhydrogeologic evaluationoftheproposedsite Areaofreviewdelineation Correctiveactionrequirements Baselinesurfaceandnearsurfacemeasurement
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SiteCharacterization:MinimumSiteSelectionCriteria
Sequestrationreservoir: Sufficientarealextent,thickness,porosity,permeability,andinjectivity
Minimuminjectiondepth: 800m(~2,600ft)
Primaryconfininglayer: Freeoftransmissivefaultsorfracturesandofsufficientarealextent,integrity,thickness,andductility
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SiteCharacterization:MinimumSiteSelectionCriteria(continued)
Dissipationintervalsabovethestoragecomplex Atleastonepermeablestratumandasecondaryconfininglayerabovestoragecomplex
Dissipationinterval(s)belowthestoragecomplex CARBmayrequirethistolowerthepotentialforinducedseismicity
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SiteCharacterization:SitebasedRiskAssessment
Sitebasedriskassessmentdemonstratesthatthesiteisappropriateforsequestration: EvaluationofpotentialpathwaysforCO2leaksormigration Classificationofriskprobabilityandconsequence,accompaniedbyasufficientexplanation
Riskmanagementplanrequired Ifanyriskscenariosshowhighprobabilityofoccurrenceandhighmagnitudeofadverseimpacts,thenrisksmustbemitigatedpriortoCARBapproval
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SiteCharacterization:GeologicandHydrogeologic Evaluation
Protocolrequireseachsitetoundergoageologicstudytoshowthatallminimumsiteselectionrequirementsaremet
Existingsitecharacterizationdatacanbeusedtofulfillthesitecharacterizationrequirementsifsufficient
Protocolestablishesformationandwelltestingrequirements
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SiteCharacterization:AreaofReview(AOR)andCorrectiveAction
AORencompasses: TheregionoverlyingthefreephaseCO2 plume,and TheCO2 pressurefront
AORandcorrectiveactionrequirementsensure: Potentiallyimpactedareasaredelineated, Wellsreceivecorrectiveactionwhenappropriate,and TheAORisupdatedasconditionswarrant
TheprotocolsetsforththeAORandcorrectiveactionrequirements
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SiteCharacterization:RelationshipBetweenActivities
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SiteCharacterization:BaselineSurfaceandNearsurfaceMeasurement
Baselinemonitoringanddatacollection Aminimumof1yearpriortoinjection
Propertiesthataffectbaselinedatamustbeevaluated: Soiltype,soilorganiccarbon,vegetationtype/density
Repeatedmeasurementsatseveralfixedsites Captureseasonalordiurnalvariations
Samplelocationsmustrepresent Areasonablegridsizeandpotentialpointsources
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WellConstruction:GeneralRequirements
Mustpreventmovementoffluidsintoorbetweenanyunauthorizedzones
MustpermitcontinuouspressuremonitoringWellmaterialsmustbecompatiblewithinjectionandformationfluids
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WellConstruction:GeneralRequirements(continued)
Surfacecasingmust: Extendthroughbaseoflowermostfreshwateraquifer
Onelongstringcasingmustextendfromsurfacetotheinjectionzone
Allcasingmustbecementedtothesurface
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WellConstruction:PreinjectionTestingRequirements
Logs,surveys,andtestsduringdrillingandconstructionofwells
Coresamplesofsequestrationzoneandconfininglayer Representativesamplesofsequestrationzoneformationfluids
RequiredTests: Pressurefalloff,pump,andinjectivity
MustprovideCARBwiththeopportunitytowitnessallloggingandtestingactivities
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OperatingRequirements:General
Injectionpressuremustnot: Exceed90%ofthefracturepressureoftheinjectionzone Initiatefracturesintheconfininglayer
Mechanicalintegrityintheinjectionwellmustbemaintainedatalltimes
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OperatingRequirements:RequiredShutdowns
Whenlossofwellmechanicalintegrityissuspected,operatormustimmediatelyandquicklyinvestigatethecause
Ifinvestigationandmonitoringindicatethatthewelllacksmechanicalintegrity: Immediatelyceaseinjection Restoreanddemonstratemechanicalintegrity ObtainCARBapprovalpriortoresuminginjection
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MonitoringRequirements:TestingandMonitoringPlan
CARBapprovedTestingandMonitoringPlanisrequired,whichmustinclude: Continuousmonitoringofwellsduringinjection
o Pressure,injectionrate,andvolume Quarterlycorrosionmonitoring Mechanicalintegritytesting Projectmonitoringduringinjection
o Emissionso Verificationofcontainment
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MonitoringRequirements:MechanicalIntegrityTesting
Generalrequirementsonmechanicalintegritytesting: Performtestingtodemonstratemechanicalintegrityofwellsannually
Casingwallthicknessandintegritymustbeinspectedatleastonceevery24months
CARBmayrequesttheoperatordemonstratemechanicalintegrity
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MonitoringRequirements:ContainmentMonitoring
Plumetracking Pressurefront FreephaseCO2 plume
Surfaceandnearsurfacemonitoring Surfaceairmonitoringofpointandothertargetedsourcestoquantify