DOE MANAGEMENT PRINCIPLES AND APPROACH

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Data Acquisition for the Enhanced Voluntary
Reporting of Greenhouse Gases Program Cap
Train for Cap Trade Enhancing the DOEs
Voluntary Reporting of Greenhouse Gases (1605(b))
Program Presentation by Global Warming
Initiatives Jim Haven, Executive Director, (919)
515-0700 jhaven_at_gwi-nc.org www.gwi-nc.org
World Energy Engineering Congress, September 23,
2004
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Why - GWI

• Incorporate non-profit, non-government, 501(c)3.
• State Legislation advisor on Climate Change
• Provide liaison to federal and other state
  programs
• Obtain funding from many sources for
  sustainability
• GWIs North Carolina Global Warming Registry
• Provide international awareness of NC ghg
  programs

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Why - GWI

• Provides verification/certification, aggregation,
  transparency, recognition, virtual cost center.
• Cap Train for Cap Trade, plan now for
  future
• Proven international leadership in ghg
  reductions, reporting and registry. (since
  1995-Climate Wise)
• Newsletters, educational material, seminars,
  visits.

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Programs Promoted by GWI
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GWIs North Carolina Climate Change Registry

• Reporters DOE-EIA Voluntary Reporting of
  Greenhouse Gas Program. 2003 Submissions.
• DOE VRGG Submissions (8 US 25 NC) 10 Intl.
• Climate Wise/Energy Star 22 Corporate Partners
• Landfill Gas Reporters 11 Sites
• Utilities Reporting ____ 3 Corporations
• Waste Wise 40 Companies
• Climate Leaders 15 Corporations
• ICLEI(C/CCP) 3 Cities, 1 County
• Chicago Climate Exchange 1 Pending Others

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Data Acquisition

• Entity Wide
• Identify a Sr. Manager, Mgmt. Champion and Team
• Define Boundaries, Ownership, Base Year
• Obtain copies of all energy entering facilities
• Quantify process use/emissions (6 ghgs)
• Transportation vehicle miles trvled fuel
  purchased
• Quantify Sequestration involvement
• Obtain/establish action plans, goals, statements
• Identify potential trading opportunities
• Pre/Post Senior Management Review/commitment
• Action Specific Reporting (Project Level)
• Small part of VRGG, used to identify best
  practices
• Used to support Entity Wide Registry/Reporting

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2004-5 Plans

• Regional Seminars / Workshops -13 across NC
• Increased participation in E-VRGG - 5000 letters
• International Council for Local Environmental
  Initiatives (ICLEI)-Assist 3 existing, recruit
  new cities.
• Emissions Trading (Aggregator) -establishing

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2004-5 Plans

• Investigating integration of NC Air Quality and
  Global Warming programs/reporting
• Integrated Contingency Plan -2 proposals out
• Liaison with other state registries
  -i.e.California
• Evaluate state mandated Reporting/Registry
• Propose Cap Train for Cap Trade

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Enhancing the DOEs Voluntary Reporting of
Greenhouse Gases (1605(b)) Program Mark
Friedrichs mark.friedrichs_at_hq.doe.gov
202-586-0124Office of Policy and International
Affairs http//www.pi.energy.gov/enhancingGHGre
gistry/
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Presidents February 14th, 2002 Directive

• Established U.S. goal of reducing GHG
  intensity 18 by 2012.
• Directed improvements to DOEs voluntary GHG
  reporting program.
• Sought recommendations on protecting real
  reductions against future climate policy and on
  giving transferable credits
• Challenged businesses to take action (Climate
  VISION, Climate Leaders).

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Revision Process

• Established interagency working groups
• Issued a public Notice of Inquiry, May 2002.
• Held workshops met with stakeholder groups.
• Proposed General Guidelines (November 2003)
• Will re-propose General Guidelines, with Draft
  Technical Guidelines, fall 2004
• EIA developing forms and instructions, also for
  public review.
• Initiate revised program in 2005.

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Objectives for Revising 1605(b)

• Encourage entities to provide a more accurate,
  consistent, complete and transparent record of
  emissions and emission reductions
• Recognize entities that contribute to the
  President's goal of reducing the emissions
  intensity of the U.S. economy

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Objectives for Revising 1605(b)

• Create a central program for recording
  achievements associated with voluntary emission
  reduction programs, such as Climate Leaders and
  Climate VISION.
• Accommodate a broad range of different entities
  (large, small, generators, users, manufacturers,
  farms, service providers, households).
• Balance rigor with practicality and flexibility

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Key Elements of Proposed Guidelines

• Registration of post-2002 reductions
• - or just reporting
• Entity-wide reports required to register
• Emission inventories, and
• Entity-wide reduction assessments
• Small emitters exempted registering offset
  reductions possible

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Key Elements of Proposed Guidelines

• Emission inventory methods specified and rated by
  technical guidelines
• Reductions based on intensity, absolute
  emissions, avoided emissions, carbon stocks or
  specific actions, with methods specified in
  guidelines
• Entities certify accuracy of their reports
  (independent verification encouraged)

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All Reporters Require Legal Basis for Entity
Encourage Highest Level
Reporting Only Entities
Large Emitters
Small Emitters
Inventory of Emission for Selected Activities
Entity-wide Emission Inventory
Calculate Reductions at any level for any year
project facility pre-2002, etc. (Inventory
not required)
Calculate Reductions Across Entire Entity (may
include sub-entity reductions such as plants,
facilities, projects)
Calculate Reductions for Relevant Activities,
e.g. forested land
Potential Offset
Oil and Gas Production Activities
Forest Sequestration project
Avoided Emissions


Reported Reductions
Sum
Registered Emission Reductions
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• Why Companies Participate in 1605B.
• Corporate Management of GHG Emissions
• Environmental stewardship
• Demonstrate positive action to
  investors/consumers
• Establish government record of early reductions
• Anticipate and train for future government
  policy,
• Learn GHG Accounting and Trading practices,
• Create current economic value

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• Steps to Effective GHG Reporting
• and Management
• Inventory emissions (all gases, range of
  methods, completeness and quality)
• Determine how to track progress (different
  business units may require different methods
  intensity, absolute, carbon storage, avoided
  emissions or action-specific).
• Review options and take action
• Evaluate progress and take corrective action

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• Response to key Issues
• Raised by comments
• Enable reporting of non-U.S. emissions/reduc
  tions
• Permit exclusion of de minimis emissions
• Maintain balance between flexibility and rigor
• Ensure consistency with Climate Leaders and
  Climate Vision

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• Schedule
• Fall 2004, re-propose General Guidelines and
  Technical Guidelines for public comment
• Hold another public workshop (November/December)
  
• Issue final guidelines by early 2005
• Issue new forms and instructions by spring 2005
• For more information
• http//www.pi.energy.gov/enhancingGHGregistry/

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Thank you!
James R. Haven, Executive Director Global Warming
Initiatives, Inc. NC State University, Centennial
Campus 1017 Main Campus Drive-Suite 3100 Raleigh,
NC 27606 [phone]
www.gwi-nc.org