America (cross state/provincial borders) National fleet

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Building an Inventory for TCR Reporting

• We are waiting for everyone to join and will
  start shortly.
• To join the call please dial
• [phone]
• Enter Access Code 370-311-108

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Welcome!

• We are delighted to work with you as part of the
  most robust voluntary greenhouse gas reporting
  program in North America!

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Climate Change is more than just a hot topic

• By joining The Climate Registry you are actively
  demonstrating your environmental leadership and
  initiative.
• This vital stepping stone provides you with
  accurate emissions data that will allow your
  organization to mitigate the effects of climate
  change.

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Throughout this webinar you will need

• A highlighter
• A copy of your General Reporting
• Protocol (GRP)
• A writing utensil

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Who we areChapter 1, page 1

• TCRs MISSION The Climate Registry sets
  consistent and transparent standards for the
  measurement, verification, and public
  reporting of greenhouse gas emissions
  throughout North America in a single unified
  registry.
• MEMBERS 39 U.S. States
• 9 Canadian Provinces
• 3 Native Sovereign Nations
• 6 Mexican states
• REPORTERS 242 Founding Reporters
• 257 Reporters and growing

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Program Overview

• Report all 6 Kyoto protocol greenhouse gases for
  all of North America at the facility level in
  CRIS
• By June 30th of each submitting year
• Report according to the standards outlined in the
  GRP
• Have emissions report third party verified
• By Dec 15th of each submitting year

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The Reporting Process

• Build a verifiable inventory
• Gather data according to your organizational
  boundaries
• Report it to the Registry using the Climate
  Registry Information System (CRIS)
• Verify CO2 emissions
• Separate contract with 3rd party verifier
• Release data to public through CRIS
• Reduce emissions
• Form a practical reduction plan

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Starting out - Look Before You Leap

• Identify key personnel, considering
• Background
• Representation across your organization
• Availability
• Permanence
• Read the General Reporting Protocol
• Read the General Verification Protocol

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Part 1 Building an Inventory for TCR Reporting

• Focuses on step 1-
• Building a verifiable inventory

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What is an Inventory?

• A greenhouse gas inventory is
• An accounting and management system for GHG
  emissions data
• The methods for collecting emissions data
  (utility bills, etc.) used to calculate tons of
  CO2 produced
• Its similar to counting dollars
• or beans, but instead its
• tons of CO2!

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What is Verifiable?

• Verifiers verify greenhouse gas emissions by
  performing a
• Risk-based analysis of reported emissions
• Check for accuracy of all reported data
• Verifiers sign off with a certain level of
  confidence that the report is accurate and
  reflects all emitted emissions

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Principles of Verification GRP pg. 137 GVP pg. 8

• Independence The verification process must be
  free from bias and conflicts of interest
• Ethical Conduct Verification Bodies must
  demonstrate ethical conduct through trust,
  integrity, confidentiality, and discretion
• Fair Presentation Truthful and accurate
  reflection of the results of verification
  activities
• Due Professional Care Professional care and
  judgment by Verification Bodies
• Compliance Emissions must comply with the GHG
  reporting principles as defined in the Registrys
  GRP

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What is reported in an inventory? Pg. 35
There are 6 greenhouse gases internationally
recognized by the Kyoto Protocol
Scopes provide a framework for managing
greenhouse gases are summed independently of
each other.
Required
Optional
CO2, CH4, N2O
CO2, CH4, N2O
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Its as Easy as A-B-C

• A Identify emission sources
• B Integrate data collection
• This may evolve over time as an organization
  learns by doing
• C Report sources and data
• According to the guidelines present in the
  General reporting Protocol (GRP)

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A Identify emission sources

• What emission types does your organization have?
• Stationary, mobile, process, indirect
  electricity, etc.
• What sources does your organization have?
• Fleets, buildings, generators, etc.
• Your inventory will be built around this basic
  framework

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A verifiable inventory will be complete, well
organized and include Pg. 171-175

• All six Kyoto GHGs - CO2, CH4, N2O, HFCs, PFCs,
  SF6
• Indirect electricity emissions CO2, CH4, N2O
• Fuel combustion - CO2, CH4, N2O
• Process emissions CO2, CH4, N2O, SF6, HFCs and
  PFCs
• Fugitive emissions CO2, CH4, N2O, SF6, HFCs and
  PFCs
• Any biogenic emission sources Reported outside
  of the scopes
• CRIS will calculate many of these for you!

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B Integrate data collection High quality,
transparent documentation is particularly
important to credibility
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What gets measured gets managed

• Its all about how and where you collect data
• Creating a verifiable inventory is an annual
  process
• Data collection should be built into an
  organizations existing systems such as
• Databases over the company intranet or internet
• Spreadsheet templates filled out and e-mailed to
  a corporate or division office
• Annual roll-up statements online from utilities
• From
• Accounting
• Fleet management
• Facility management
• Property management
• Etc.

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Common management systems

• The ideal system depends on size and
  sophistication of data management.
• Different strategies may be more appropriate
• Excel spreadsheets
• Automated data base printouts
• Look into what data is not already accounted for
• Vehicle mileage, make and model
• Refrigerant
• Processes

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Tip 1 - Have an Inventory Management Plan

• This communicates the data management system and
  quantification methodologies to the verifier-
• All relevant contacts, emails, phone calls, etc.
• All emission sources, spreadsheets, data base
  printouts, etc.
• Organizational and geographical boundaries
• Expect that the verifier will request records
• Ideally maintain copies of all records that
  support the activity data in the inventory
• At a minimum know
• Who can provide records- the process and time
  frame for them

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Inventory Electricity Example
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Tip 2 - Establish a Clear Audit Trail
Graphic courtesy of First Environment
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A new type of accounting Pg. 9

• Building a verifiable GHG inventory may represent
  a new type of accounting and allows for
• Innovation and flexibility
• Interdepartmental cooperation
• Unique opportunity to look at an organizations
  operations

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C Report sources and data

• An organizations boundaries are a key piece in
  determining what emission sources to report.
• Two categories
• A) Geographic Boundaries
• GRP Chapter 2, page 11
• B) Organizational Boundaries
• GRP Chapter 4, page 13

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A) Geographic Boundaries pg. 11

• Required Geographic Boundaries
• Report emissions sources in all
• Canadian provinces and territories
• Mexican states
• US States and dependent areas
• Optional Reporting
• Worldwide emissions
• May choose to report worldwide emissions at any
  time
• Must be verified

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Flexibility in Reporting

• Transitional Years 1-2
• At a minimum report
• CO2 in at least one state/province for
• stationary combustion

• Report Completely
• All emissions sources
• All facilities
• - North America wide

Historical Data - May be transferred if verified
First Year of reporting to the Registry
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B) Organizational Boundaries pg. 13

• Report at the highest organizational level
  possible (such as the parent company level)
• Equity Share approach
• Report all emissions sources that are wholly
  owned according to your entitys equity share in
  each.
• Control Approach
• Report 100 of the emissions from sources that
  are under your control, including both wholly
  owned and partially owned sources.

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Pg.16
Recommended
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Reporting Options Example

• KP Co.

100
100
Leases corporate office space
Wholly owns two factories
0
100
Contracts out landscaping
Wholly owns a vehicle fleet
50
Equity Share
Jointly owned and operates storage warehouse
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Reporting Options Example

• KP Co.

100
100
Leases corporate office space
Wholly owns two factories
0
100
Contracts out landscaping
Wholly owns a vehicle fleet
50
Operational Control
Jointly owned and operates storage warehouse
30
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Reporting Options Example

• KP Co.

0
100
Leases corporate office space
Wholly owns two factories
0
100
Contracts out landscaping
Wholly owns a vehicle fleet
50
Financial Control
Jointly owned and operates storage warehouse
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Inventory must be reported at the facility level
pg. 38

• Report emissions separately for each facility
• Defining facility boundaries
• A stationary facility is defined as a
• single physical premises
• Mobile fleets may also be designated
• as facilities
• Some special cases, such as pipelines and
• electricity transmission and distribution systems

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Easing data entry

• For large organizations two options may help out
  in the reporting process, minimizing data entry
  and saving time
• Aggregation of facility data
• Simplified estimation methods

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2. Simplified Estimation Methods pg. 58

• To ease the reporting burden, reporters may
  estimate any quantity of greenhouse gas emissions
  from any combination of sources and/or gases,
  which, when summed equal less than 5 of your
  organizations total emissions.
• 5 or less Rest of emissions Total emissions
• Estimated emissions and Calculation Methods must
  be verified AND reported to the Registry.

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Example of simplified estimation
KP Co. has 10 vehicles used for regional
travel. Two are 2004 Toyota Camrys and eight
are 2000 Toyota Tundras. No reliable data was
available for vehicle mileage or fuel
consumption. The destinations of each car trip
were found based on accounting records and
interviews with upper level management. KP Inc.
did a conservative, upper bounds estimate using
the Toyota Tundra that was driven the most to
estimate annual miles. This figure was then used
to estimate annual gallons consumed. CO2, CH4
and N2O were calculated and multiplied by 10 to
receive a GHG emissions total for the regional
travel fleet and methods were described and
disclosed in the CRIS report.
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Reporting your data to CRIS

• The General Reporting Protocol (GRP) includes
  guidance on calculating the following emissions
• Chapter 12 Stationary combustion
• Chapter 13 Mobile combustion
• Chapter 14 Electricity use
• Chapter 15 Use of imported steam, district
  heating, cooling, and electricity from combined
  heat and power (CHP)
• Chapter 16 Use of refrigeration and air
  conditioning equipment.

CRIS can do many of these calculations for you!
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Calculation Tiers pg. 82

• Each Chapter includes a set of data calculation
  tiers.
• All are acceptable and meet The Climate
  Registrys rigorous reporting strategies

• Tier A - preferred, most accurate approach

• Tier B - alternative second-best approach

• Tier C - least accurate, but still acceptable
  approach

• Note that in some cases there may be multiple,
  equally accurate, approaches within the same
  tiered ranking (such as A1 and A2)

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Additional Process Emission Guidelines- Appendix
E pg. 176

• Adipic acid production
• Aluminum production
• Ammonia production
• Cement production
• Electricity transmission and distribution
• HCFC-22 production
• Iron and steel production
• Lime production
• Nitric acid production
• Pulp and paper production
• Refrigeration and air condition equipment
  manufacturing
• Semiconductor manufacturing
• If the Registry has not endorsed guidelines for
  quantifying emissions from a particular emissions
  source, you should use existing industry best
  practice methods.

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Reporting to CRIS

• Ready for use in July
• Will have Import/Export Microsoft Excel Function
  (2009)

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Reporting Timeline
May-June Enter data into CRIS June 30th
deadline
October-December Complete verification
activities December 15th deadline
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec

• July-September
• Begin verification activities

• June
• Hire a verifier

• January-May
• Collect data

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Reporting Tips

• For additional resources and information please
  check out our Reporting Tips page under
  Tools/Reference at
• http//www.theclimateregistry.org/reference.html
• Future on-line trainings will be available on
• CRIS
• Verification
• Forming an emissions reduction plan
• Check our websites calendar for dates and
  registration
• Other protocols and resources
• GHG Accounting and Protocols
• http//www.ghgprotocol.org/
• EPA Climate Leaders
• http//www.epa.gov/stateply/resources/index.html
• Corporate Verification Guideline prepared by
  Climate Trust
• www.ert.net/pubs/ERTCGVG.pdf

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Thank You for participating!

• Please take the time to complete the quick five
  question survey when you exit the webinar to help
  us improve our trainings and resources!
• Kati Price
• [phone]x 125
• kprice_at_theclimateregistry.org
• www.TheClimateRegistry.org
• This presentation is available on our website in
  the Reporting Tips section, click on tools, and
  reference

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Verification

• Verification is a 3rd party review of your data
• It ensures quality and uniformity of data
• Verification occurs annually between June and
  October
• 5 year cycle
• Year 1 Identify Facilities Emission Sources,
  Review Management Systems, Verify Emission
  Calculations
• Year 2 Verify Emission Calculations
• Year 3 Verify Emission Calculations
• Year 4 Verify Emission Calculations
• Year 5 Verify Emission Calculations

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Accreditation

• General Verification Protocol (GVP) and Guide to
  Accreditation are available on the website
• The American National Standards Institute (ANSI)
  is developing the accreditation process in
  accordance with ISO 14065
• ANSI is conduction a pilot program
• Information is available on ANSIs website at
  www.ansi.org/ghg
• Deadline to apply for the pilot is May 15, 2008
• After pilot program is completed ANSI will take
  applications on a rolling basis

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Example KP Company

• First year of reporting to the Registry
• KP CO reports all stationary CO2 from Kansas
  state facilities.
• Some mobile fleets from Quebec
• Second year of reporting
• Reports consistently with the first year of
  reporting
• Decides to report stationary emissions for
  facilities in Mexico as well.
• Third year of reporting is complete
• Reports all 6 gases for all facilities within
  North America.

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Historical Reporting

• Historical data
• Data prior to 2008
• or
• Date prior to an organizations first reporting
  year
• Minimum requirements
• Must include all CO2 emissions from stationary
  combustion sources in at least one state/province
• Third party verified (Does not require additional
  Registry verification if it was previously
  verified)
• Report consecutively (no gaps in years)

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Base Year Determination Adjustments

• The Base Year is defined as the first year a
  complete report is submitted to The Registry
• Base Year Adjustments
• A structural change in organizational boundaries
  triggers a 5 cumulative change in an entitys
  base year emissions (non-organic growth)
• A change in calculation methodologies or
  emissions factors triggers a 5 cumulative
  change in an entitys base year emissions
• An error or series of error triggers are found to
  be significant (5 cumulative change)
• Base line and Base Year are not the same
• Many Reporters see base line as a regulatory
  term
• Reporters are welcome to set their own internal
  goals (base lines) and note them in CRIS as
  additional information

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Optional Reporting to The Climate Registry

• The following may be reported to The Climate
  Registry if an organization chooses
• Scope 3 emissions
• Unit level data
• Worldwide emissions
• Additional relevant information

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