Evolving Emissions

Management
 How Will Evolving Emissions
Requirements Affect You?
Managing greenhouse gas emissions is an increasing aimed at protecting the city’s water supply and curb-
concern for both companies and governments. Regu- ing smog. Since then, attitudes and approaches to
lations and public pressure are pushing businesses to emissions regulation have changed substantially.
address their emissions through tracking, reporting Since the 1960s, the United States has passed a set
and reduction efforts. Legislation and regulations re- of regulations aimed at curbing emissions from a va-
stricting emissions are expected to continue to evolve riety of industrial processes, as have other countries
(and tighten) in the coming years. Meanwhile, cap around the world.
and trade programs, such as those in California and Modern emissions regulations emerged in the United
Quebec, have become one of the primary strategies States in the 1960s with the passage of the Clean
for encouraging companies to make improvements Air Act, which established a framework for collecting
and innovations that reduce greenhouse gas (GHG) and reporting air emissions data. In the 1970s, it was
emissions. Financial regulators are beginning to re- expanded to establish the first mandatory emissions
quire that companies disclose their carbon footprints limits for a wide range of industries. Companies
to shareholders, as well. became responsible for monitoring, inventorying and
As businesses begin addressing their environmental evenutally limiting the emission of certain chemicals
requirements, many are turning to the latest tech- into the atmosphere, water and soil.
nologies and methods to optimize the collection and In the 1990s, cap and trade regulations were intro-
mandatory (or voluntary) reporting of emissions data. duced to address sulfur and nitrogen oxide emissions,
Some of those companies are discovering that com- first by the state of California and subsequently na-
pliance reporting can improve their business. Better tionwide, overseen by the U.S. Environmental Pro-
data collection is helping them optimize their exist- tection Agency (EPA). Cap and trade regimes set a
ing assets to save both time and money while also im- limit on the total amount of a pollutant that can be
proving their corporate image as good environmental released. Governments then issue or auction off an-
stewards. For other companies, emissions reduction nual permits that allow holders to emit a portion of
has even helped them uncover new revenue streams. that total number. Each year, regulators reduce the
total volume of available permits. With fewer permits
Emissions in Context available each year, companies can either expect to
Addressing emissions from industrial processes is not pay more to purchase permits (as demand drives costs
a new challenge. From the industrial revolution to the up) or invest in operational improvements to reduce
present, companies have introduced pollution into emissions (thereby reducing the number of permits
the environment and governments at all levels have they need to purchase).
worked to limit their negative impacts on the environ- Companies have been successful at reducing NOx and
ment and human health. As the Industrial Revolution SOx emissions under cap and trade regulations. This
took hold in the 1800s, London introduced regulations success has encouraged regional and national gov-

1
 ernments worldwide to introduce similar programs, The Northeastern/Mid-Atlantic states’ Regional
and the model is now being applied to GHG emis- Greenhouse Gas Initiative (RGGI) was the first cap
sions. While other carbon pricing mechanisms, such and trade scheme initiated in the United States, in
as carbon taxes, are also being tested, cap and trade December 2005, but other initiatives are now under-
regulations have been adopted over the last decade way. In 2006, California passed the Global Warming
for addressing global GHG emissions. The European Solutions Act (AB32), which introduced a cap and
Union was among the first nations to introduce a cap trade program for the state. The program launched
and trade scheme for GHGs. In recent years, New on January 1, 2012. By 2020, it aims to reduce total
Zealand, Australia, Canada, South Korea, China and emissions from capped sectors to 80 percent of 1990
Mexico have introduced similar measures. levels. Refineries, power plants, industrial facilities

In the United States, there has been no new federal leg- and transportation fuels are the major sectors re-

islation to address carbon emissions, but the EPA re- quired to participate in the program. It will be the

cently received approval to address greenhouse gases largest mandatory emissions trading scheme in the

under the Clean Air Act. To date, the scope of those ac- United States and is expected to drive 2.9 billion

tions has been limited to only the largest emitters and metric tons of carbon emissions reductions. Quebec is

most of the regulatory rules are still being phased in. launching a similar program. California and Quebec

But it is increasingly likely that companies in all states are also collaborating on a program to allow carbon

will soon face some kind of carbon emissions rules. permit trading between the state and province.

Some U.S. states have taken action independently.

Countries and Regions Worldwide Are Putting a Price on Carbon

DENMARK

ICELAND
CANADA NORWAY EUROPEAN
EUR
E UROPE
ROPE
PEAN
U.K. UNION
UNIO
UNION
U ON
ON
IRELAND
LIECHTENSTEIN
SOUTH
SWITZERLAND
U.S.A. KOREA
TURKEY JAPAN
CHINA

MEXICO INDIA

BRAZIL

Carbon pricing method SOUTH AUSTRALIA

adopted nationally AFRICA

Carbon pricing methods

adopted by some regions
NEW ZEALAND

1 Figure based on known carbon taxes and cap and trade programs as of October 1, 2012. In the United States, regional schemes include California
and the Regional Greenhouse Gas Initiative (Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New York, Rhode Island,
and Vermont). For Canada, carbon taxes are in place in Quebec, Alberta, and British Columbia. Quebec is also introducing a cap and trade
scheme that will allow for trading within the California market. China is currently piloting a variety of carbon reduction methods, including an
2
emission trading scheme in 5 cities and 2 provinces (Shanghai, Guangzhou, Beijing, Tianjin, Chongqing, Shenzhen and Hubei).
 PI System for Emissions Streamline Measurement and Reporting
The PI System is a real-time data infrastructure that If your company is just getting started with emis-
enables any organization to capture and store accurate sions management, chances are that your biggest
emissions data and related process data, across the concern is how to gather the data you need and report
enterprise. With a robust suite of additional tools that it. The first stage of any emissions regulation usu-
support analysis, visualization and reporting, the ally requires businesses to track and inventory their
PI System can be used to: emissions to establish a baseline and then indicate if
they meet reporting and regulatory thresholds. For
• Establish a Baseline: Measure, verify and
example, the U.S. EPA’s GHG regulations only apply
report initial and ongoing emissions levels at
to those companies that produce more than 100,000
the asset or process level and roll data up to
metric tons of carbon dioxide equivalent (CO2E) emis-
report emissions for your entire corporation.
sions. However, the agency has also lowered this
• Model Future Emissions: Use real-time threshold for companies that must report emissions
and historical data to understand how your under other provisions of the Clean Air Act.
company’s plans impact your expected
Financial regulators are beginning to require emis-
emissions during the permit period.
sions reporting, as well. In the U.S., the Securities
• Identify Improvement Opportunities: Exchange Commission has noted that carbon emis-
Identify short- and long-term opportunities sions may become a material concern for publicly
for reducing emissions, including process traded companies and as such has advised companies
improvements, technology upgrades and to consider disclosing their carbon footprint. In the
efficiency increases. UK, plans are in place to mandate that all companies
listed on the Main Market of the London Stock Ex-
• Analyze Least-Cost Strategies: Use
change report their greenhouse gas emissions.
operational data to estimate costs and cost-
savings associated with permit purchases, Many companies may have more than one Continu-
process improvements and technology ous Emissions Monitoring Systems installed for a
upgrades. given location or across multiple plants; the PI Sys-
tem easily interfaces with a wide range of monitoring
• Implement and Evaluate Performance:
systems found in the market today to facilitate orga-
Collect and report performance data to
nizing a complete emissions data record into a single
ensure correct operation and regulatory
version of the truth. The versatility of the PI System
compliance.
is demonstrated by its ability to:
• Collect raw data from a variety of devices
What Are Your Goals? and systems, such as distributed control
Whatever your emissions goals are, the PI System systems, plant automation systems, CEMS
can support your needs. From monitoring emissions controllers and more.
to ensure regulatory compliance and supporting • Archive calibration gas values, maintenance
emissions reduction efforts to managing new risks status and faults to ensure the accuracy
presented by emissions trading markets and helping and consistency of emissions monitoring
uncovering new revenue opportunities, the PI System equipment.
can help. • Calculate heating values, emissions
concentrations and other important
emissions factors using PI System data.

3
 WEATHER DATA:
• WIND SPEED
CO Drive Continuous Improvement and
Emission Reductions
CO2 PLANT/FACILITY
• TEMPERATURE NOx OUTPUTS
• DEW POINT SOx
• BAROMETRIC PRESSURE OPACITY

PLANT/FACILITY
MERCURY HG
DUST PARTICULATE
Regulatory compliance is only one of several reasons
INPUTS
your company may be ready to focus on emissions
PARTICULATE MATTER

TEMPERATURES
PRESSURES
HYDROGEN
reduction. From rising resource costs to increasing
VIBRATIONS
public awareness to a growing focus on efficiency to
LEVEL

TANK LEVEL
UNIT
regulatory requirements, business has a variety of rea-
sons to reduce emissions. No matter what your reason,
CAPACITY

MVARs more efficient, cleaner processes can lead to long-term

profitability (while also enhancing your company’s
reputation with stakeholders and the public). And the
PI System can help.
SILICA
SODIUM
VOLTAGE
pH LEVEL
CURRENT/AMPs

You cannot manage

MAINTENANCE VALVE OPEN CHLORINE LEVEL
STATUS OR CLOSED TURBIDITIES LEVEL
FUEL COST DISSOLVED OXYGEN

what you do not measure.

Once emissions related data is collected, the The PI System integrates data collection, analysis,
PI System offers multiple options for how to view the visualization and reporting all into one infrastruc-
results, providing sanity checks on the raw data and ture so you can measure and manage day-to-day op-
creating reports as needed: erations with accurate, up-to-the-minute, data. The
• Real-time data offers transparent views of PI System also provides the historical data you need
ongoing operations. to detect operational trends.
• Alerts notify operators when current With the PI System in place, you can track emissions
emissions values, calculated as rolling as they occur. The PI System can collect information
interval averages, are outside of acceptable from manufacturing equipment, building manage-
ranges for regulatory compliance standards. ment systems, environmental data sensors, electri-
• Aggregated data provides high-level cal power monitoring systems and more so you know
overviews of daily, monthly and quarterly what level of emissions are being emitted throughout
emissions. your entire process.

The PI System infrastructure offers a variety of tools Data is the foundation of any good emissions reduc-

for sharing historical and current data to enhance col- tion system and the PI System provides the data you

laboration and bring new insights to your business. need. Combining emissions data with operations data

Using PI System calculation and data collection tools into a single, integrated, infrastructure makes it easy

you can standardize collection and refinement of your to see the cause-and-effect relationship between op-

company’s emissions and process related data. This erational practices and your gross emissions. You

data can then be delivered to your reporting solution can more easily identify potential areas for optimiza-

using standard PI System data sharing tools. With tion, immediately see the effect of changes you make

robust analysis and information sharing capabili- and measure the success or failure of those changes.

ties, the PI System also provides the agility needed to Also, by tracking information from diverse systems

quickly adapt as emission rules, prices, regulations side-by-side, the PI System helps you learn about the

and reporting requirements change. dependencies and process relationships that impact

4
 your emissions. By deepening your understanding of tion to quarterly or annual auctions for the current
how your operation works, you’ll reduce waste and year, many cap and trade schemes (including those in
improve performance. California, the EU and Australia) allow companies
to acquire permits in advance of the year in which the
Even bigger improvements are possible when you
carbon will be emitted.
bring the expertise of your entire staff, from the
boiler room to the boardroom, together to solve prob- The PI System provides powerful analysis tools that
lems. By providing role-based access to the data, the enable your company to make better, more accurate,
PI System empowers users throughout the company long-term predictions about your emissions. If you’re
to identify and address new ways to cut emissions, planning for growth and expansion, the PI System
using their own expertise and knowledge of the pro- can help you leverage your existing data to deter-
cess. Armed with this information, you can quickly mine what impact future plans may have on your
identify areas of inefficiency and implement optimi- emissions. That in turn can help you decide more ef-
zation strategies to make your operation cleaner and fectively how many permits to buy ahead of time and
more efficient. at what price.

As cap and trade schemes have evolved, secondary

markets have emerged that help companies acquire
IDENTIFY

MEASURE
AREAS
FOR
or re-sell carbon permits as needed. The PI System
AND
can integrate data from these markets, delivered over
OPTIMIZATION
DOCUMENT
EMISSIONS

the Internet, to help your planners and analysts find

LEVELS

opportunities to participate in emissions trading

IDENTIFY

markets. For example, PI System data can be lever-

MEASURE & UNDERSTAND
THE PROCESS
IMPACT
aged to determine when it is most cost-effective to sell
DEPENDENCIES
ON AND
EMISSIONS RELATIONSHIPS

permits and at what prices they should be sold.

As carbon markets grow and mature, the PI System

REVIEW
AND GAIN
will support your company’s participation by ensur-
ing full compliance with regulations, helping iden-
ADJUST INPUT
PLAN AND WITH
TEAM(S)
tify emissions reductions opportunities and support-
TASKS
ACCORDINGLY

ing the development of new revenue opportunities

through emissions trading markets.

Participate in Emerging Emissions Markets N2O

$
CO 2
CH 4 NOx

For companies participating in cap and trade schemes,

comprehensive emission reductions can be directly
NOx $ SOx
$
$
beneficial to your company’s bottom line. The PI System CH
4
can help you understand your emissions, identify ways
to reduce your demand for permits under emissions
CO 2 N2O $
SOx
caps (thereby eliminating costs) and help you more $
accurately predict emissions to better plan for future
permit purchases.

To participate most effectively in the permit allocation

auctions businesses will need good visibility into their
carbon liabilities, both short and long term. In addi-
5
Summary
Effective management of the environmental footprint from industrial activities will continue to be a shared priority
for business and policy makers alike. Reducing unnecessary emissions has long been a component of sustainability
and compliance initiatives, but increasingly it is also becoming a critical driver for business. As the rules governing
the treatment of different emissions continue evolving globally, businesses need an efficient way to evolve their
emissions management over time as rules and expectations change. The PI System provides organizations with
the ability to optimize their emissions management practices along each step of the process by capturing real-time
data for compliance reporting, maintaining data in its original fidelity for future analysis or audits, gaining new
insights to re-engineer processes to eliminate or reduce emissions or providing operational data to enrich forecast
models for planning future cap and trade credit purchases.

TA
DA

i l d On
to Bu
on
dati
Foun
E M :A
ME
TIIM
E
I SYST
T P
THE

6
Join the continuing discussion on how the PI System can assist with
emissions monitoring, optimization, emissions, reductions, compliance
reporting, credit trading and more at http://community.osisoft.com

About OSIsoft, LLC

OSIsoft (www.osisoft.com) delivers the PI System, the industry standard in enterprise infrastructure, for management of
real-time data and events. With installations in 110 countries spanning the globe, the PI System is used in manufacturing,
energy, utilities, life sciences, data centers, facilities and the process industries. This global installed base relies upon the
PI System to safeguard data and deliver enterprise-wide visibility into operational, manufacturing and business data. The
PI System enables users to manage assets, mitigate risks, comply with regulations, improve processes, drive innovation, make
business decisions in real-time and to identify competitive business and market opportunities. Founded in 1980, OSIsoft is
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Corporate Headquarters OSIsoft Czech Republic s.r.o.

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Naucalphan, Mexico SEEF Suburb, Bahrain

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Sao Paulo, Brazil Singapore

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London, United Kingdom Singapore

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Madrid, Spain Tokyo, Japan

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Frydek-Mistek, Czech Republic Seoul, South Korea

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