Cap-and-Trade Non-Compliance can be Costly

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In a recent news release, the California Air Resources Board (CARB) announced it had issued nearly $1 million in penalties against three companies for late or inaccurate reporting of their greenhouse gas emissions for 2011. This is the second time the CARB issued fines for violations of California’s Mandatory Greenhouse Gas Emissions Reporting regulation.  Reports in all three cases were each more than 200 days late. These are the largest penalties assessed for violations of the Mandatory Reporting regulation. In July 2013, the CARB penalized nine other companies’ smaller amounts for late or inaccurate reporting.

The regulation for the Mandatory Reporting of Greenhouse Gas Emissions (mandatory reporting regulation or MRR) has undergone frequent revisions, having been updated in 2010 and 2012.  The latest revisions occurred in 2013 and became effective on January 1, 2014.   The new rules for mandatory reporting are expected to be posted February 13, 2014.  All members subject to the Cap-and-Trade and those members subject to both the 25,000 and 10,000 ton emission limits reporting requirement should familiarize themselves with the changes.

Key dates for Food Processors for the Mandatory GHG Reporting Program - Update for 2014

• Mid-February - Cal e-GGRT activated for reporting 2013 data due in 2014 (February 13 anticipated date)
• April 10 - Reporting deadline for facilities and suppliers of fuels and carbon dioxide. Applies to facilities producing over 25,000 metric tons of CO2e.
• September 2 - Final verification statements due for all reports, including emissions, supplier data, and product data. (Note:  Due to the holiday, the 2014 verification due date is September 2.)

For questions concerning Mandatory Reporting, you may contact CARB:
• Mandatory Reporting Webpage and Regulation links:  
     http://www.arb.ca.gov/cc/reporting/ghg-rep/ghg-rep.htm
     http://www.arb.ca.gov/cc/reporting/ghg-rep/regulation/mrr-regulation.htm
• Sector Contacts, ghgreport@arb.ca.gov
• Dave Edwards, Manager, Climate Change Reporting Section, (916) 323-4887
• Patrick Gaffney, Climate Change Reporting Section (916) 322-7303

By John Larrea, Government Affairs Director, California League of Food Processors

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