GHG Reporting Design Options

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GHG Reporting Design Options

• Reporting Subcommittee
• Jim Norton, Chair
• January 10, 2008
• Portland, Oregon

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Key Points

• Key Principles
• Maximum consistency in quantification and
  reporting, for sources and for states/provinces
• Maximum reliance on The Climate Registry (TCR)
• WCI TCR - Form will follow function
• Key WCI decisions impacting reporting remain TBD
• Anticipate a set of WCI Reporting Specifications
• Expect to employ TCR quantification protocols and
  reporting systems and services
• A Moving Target
• From multiple registry efforts to a unified
  effort The Climate Registry
• From little federal activity to recent federal
  actions regarding GHG reporting in US and Canada

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WCI Interaction with TCR Reporting System
Components
BASIC BUILDING BLOCKS OF CAP-AND-TRADE
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Reporting Design Option Issues

• Breadth/Scope of Coverage
• Initiation of Reporting
• Coordination Among Partner Jurisdictions on
  Reporting
• Data Management and TCR Interaction
• Verification
• Administrative Costs Fees
• Mandatory Federal GHG Reporting

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1. Breadth/Scope of Coverage

• Should reporting be required only for
  sectors/sources included within the cap?
• Or should reporting be required for
  sectors/sources not included in the cap-and-trade
  program (e.g., ones that are likely to be phased
  in over time)?

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2. Initiation of Reporting

• Should mandatory reporting begin before
  cap-and-trade commences?
• Or begin only with the start of the caps first
  compliance period?

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3. Coordination Among Partner
Jurisdictions

• Should WCI develop a single WCI reporting rule
  that stipulates all reporting specifications?
• Or should individual WCI jurisdictions have
  loosely coordinated rules possessing common core
  elements? If so, what aspects should the common
  core elements cover or include?

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4. Data Management and TCR Interaction

• Should WCI require that all capped sources report
  directly to and verify through the TCR?
• Or should sources report to and verify at the
  level of the individual jurisdiction (with data
  then uploaded to the TCR or otherwise shared
  centrally)?

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5. Verification

• Should WCI require third party verification?
• Or should WCI allow multiple approaches to
  ensuring data quality (other than third party
  verification)?

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6. Administrative Costs Fees

• Should states and provinces mandate that fees go
  directly to TCR, and TCR administers the
  reporting database?
• Or should states and provinces collect fees and
  contract with TCR to administer the reporting
  database?

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7. Mandatory Federal GHG Reporting

• In December, Congress directed EPA to adopt a
  mandatory GHG reporting rule within 18 months,
  and Canadas federal government required firms in
  major industrial sectors to report 2006 GHG
  emissions by May 31, 2008.
• How should WCI states/provinces and TCR
  incorporate and interface with these developments
  in designing and implementing their GHG reporting
  program?

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Overview of Comments to Date

• Mandatory reporting before baseline establishment
• Divided opinion
• Possibly for sectors where good historical data
  not available
• Tracking of allowances and offsets
• TCR would need system for issuing certificates,
  tracking transactions, RECs, etc.
• Western Regional Energy Generator Information
  System (WREGIS) suggested for electric power
  sector, possibly expand to other sectors
• Integration of WCI reporting with TCR
• Several opposed to use of TCR
• Protocols lacking and/or undesirable for land
  use, ag, forestry (esp. managed forests)
• Some felt there was Insufficient stakeholder
  input to TCR design
• Some complaints based on assumption WCI reporting
  will follow all of TCR voluntary reporting
  protocol

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Possible Next Steps

• Receive and digest stakeholder comments on
  options questions.
• Written comments requested by Feb 1
• WCI determines key precursor elements including
  the scope by end of February 08
• Subcommittee recommends reporting options to WCI
  partners in March 08
• Input from stakeholders at meeting in May 08 or
  earlier
• Proceed to develop draft GHG Reporting program
  per WCI partners direction.
• Input from stakeholders at meeting in July 08
• Final mandatory reporting program released in
  August 08

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