California Assembly Bill 1305
Diversified CPC International aims to serve as a responsible steward of the environment, and to meet federal and state guidelines. We recognize that the assets we operate and the products we deliver can affect people and the environment. As a global leader in the design, production, and distribution of the highest-quality specialty liquid petroleum gas products, we have the challenging task of balancing customer demand and existing technology constraints with concerns about climate change. By increasing the efficiency of our operations, leveraging our engineering expertise, and implementing emissions reduction technologies, Diversified CPC is actively working to minimize our operational Scope 1 and Scope 2 greenhouse gas emissions.
In 2023, the state of California introduced California Assembly Bill 1305. This bill requires Diversified CPC International to disclose on our business’ website information about the applicable carbon offset project and details regarding accountability measures at our Anaheim, California facility.
Accurately tracking greenhouse gas emissions with measurable data enables us to effectively communicate our performance to our stakeholders and identify opportunities to reduce operational emissions. Future requirements for monitoring greenhouse gas emissions and complying with federal and state reporting requirements, such as Assembly Bill 1305, will be evaluated, on a regular basis, through Diversified CPC’s Management of Environmental Health and Safety (MESH) assessment process.
Diversified CPC International tracks and reports Scope 1 and Scope 2 emissions data in accordance with the Greenhouse Gas Protocol. Our subject matter experts and engineering groups work directly with environmental specialists and operations personnel to use this data to develop and implement initiatives to mitigate greenhouse gas emissions. Some methods reviewed during the 2023 fiscal year included looking at solar as a reduction source for GHG emissions. The Anaheim facility lacks surface area to install enough solar panels to receive an ROI (return on investment) that would satisfy our stakeholders. In addition to reviewing solar as a GHG reduction source, Diversified CPC reviewed carbon offset credits. This appears to be a plan that can be considered more seriously for future GHG reductions. If the company pursues this voluntary option, it will consider dividing the total carbon offset credits over a five-year period thus providing a 20% annual GHG reduction year over year.
The aerosol propellants industry has faced evolving environmental regulations over the past six decades. From CFCs and ozone depletion in the 1970s and early 1980s, VOC limits on consumer products over the past three decades, and new focus on global warming potential (GWP) and phasedown of HFCs, the aerosol propellant industry has been resilient, supporting our aerosol customers with specialty blending and new liquefied gas propellant alternatives.
Over the past six years, Diversified CPC has focused investments on growth markets while contributing strong support to the aerosol market segment which continues to be key to the success of our corporation. Investments in high-purity hydrocarbon purification processes also provided Diversified CPC with expanded production capabilities to meet tighter aerosol propellant quality specifications that went into effect earlier this year.
During fiscal years 2022 and 2023, Diversified CPC tracked and reported greenhouse gas emissions data in accordance with the Greenhouse Gas Protocol. The Table below summarizes our greenhouse gas emissions for our Anaheim facility during our Corporate Sustainability Reporting for fiscal years 2022 and 2023.
