Voluntary GHG Reporting & The Climate Registry

1. Voluntary GHG Reporting & The Climate Registry Ann McCabe NATF June 4, 2009

2. The Climate Registry MISSION: To standardize and centralize high quality GHG data into a North American GHG registry to support voluntary and mandatory reporting programs BOARD: 10Canadian Provinces, 2 Territories 41 U.S. States and D.C. 6 Mexican states 4 Native Sovereign Nations MEMBERS: over 330 Members/Reporters

3. The Registry’s Voluntary Program Philosophy: “best practices” reporting Based on international and state/provincial standards WRI/WBCSD GHG Protocol and ISO standards Reporting Requirements All GHG emissions in North America Entity-wide emissions at the facility-level All six GHGs All direct (Scope 1) and indirect GHG emissions (Scope 2); Scope 3 (e.g., travel) optional Annual 3rd Party Verification 3

4. Benefits for Members/Reporters • A cost effective means to track/manage GHG emissions • “Can’t manage what you don’t measure” • Can take 2-3 years to perfect GHG tracking and reporting • Full corporate carbon footprint • Access to software, training and technical support • Document early actions • Prepare for mandatory state/federal reporting • Identify energy efficiency opportunities, cost savings • Recognition as a global environmental leader

5. Who are the Members?

6. State-based GHG trading is expanding Many states and regions creating reporting, cap & trade programs Regional Greenhouse Gas Initiative (and observers) Western Climate Initiative (and observers) Midwest GHG Accord (and observers)

7. How to participate: Step One -- Gather data (1) • Input data by facility into web-based software • Annually, on calendar year basis • All 6 Kyoto gases (CO2, CH4, N2O, HFCs, PFCs, SF6) • Direct: stationary, mobile, process and fugitive • Indirect: electricity consumption • Biogenic emissions from stationary combustion • Estimation permitted for up to 5% of emissions • Operational control, financial control or equity share

8. How to participate: Step One -- Gather data (2) • Geographic scope: All North America • Transitional reporting: At least all CO2 for at least one state/province for first two years of participation • Historic data may be submitted • Must be third-party certified • Minimum: CO2 from all stationary sources for one state/province • Track mostly through utility bills and vehicle fuel

9. Batch Verification • Eligibility Threshold: • 1000 metric tons total CO2e or less, with no significant process/fugitive emissions • Emissions Sources: • Indirect emissions from electricity consumption • Direct emissions from stationary combustion for heating or cooling, and • Direct emissions from mobile sources

10. How to participate: Step Two -- Verify • Have your data reviewed by an approved verifier annually • Accreditation process being managed by ANSI, American National Standards Institute • Linked to ISO process • First pool of verifiers accredited in December 2008; others in 2009. List of verifiers, contacts on website.

11. How to participate: Step Three -- Publish • Publish your data publicly on the Registry’s website • Includes facility data • May request Confidential Business Information (CBI) exemption so data is aggregated to state level and CO2 equivalent • Your annual public report may include information about environmental efforts, programs and reduction targets

12. Existing voluntary climate programs GHG REGISTRIES • CA Climate Action Registry (now Climate Action Reserve) • The Climate Registry GHG REDUCTION PROGRAMS • EPA Climate Leaders • DOE 1605b/Climate Vision TRADING PROGRAMS • Chicago Climate Exchange (CCX) INVESTOR DISCLOSURE • Global Reporting Initiative • Carbon Disclosure Project

13. Comparison of Voluntary GHG Programs

14. Costs of Participation Annual Participation Fee Annual Verification Fee Staff time

15. Climate Registry Fee Structure

16. Verification Costs Costs will vary with: • Quality of data and management systems • Organization of data • Size and complexity of operations

17. Local Gov’t Operations Protocol Jointly-developed protocol (TCR, CCAR, CARB, ICLEI) Final in June

18. Leveraging EEC Block Grant Funds • As part of Stimulus package, government and tribal entities eligible for Energy Efficiency and Conservation grants • Climate Registry Webinars • Use EEBCG $$ to join Registry and build GHG inventory, for consultants to assist with GHG inventory and/or for verification expenses

19. EPA Mandatory GHG Reporting Rule • Proposed EPA federal mandatory GHG reporting rule: • Draft rule released 3/10/09; final by year-end • First reporting year 2010 due March 2011 • Emissions-based threshold of 25,000 metric tons of CO2e/yr, plus other covered sources

20. EPA GHG Reporting Rule • Requests comment on requiring fleets to report • Requests comment on 3rd party verification • Will use same verification model as Acid Rain Program – QA/QC using computer analysis to flag anomalies

21. EPA GHG Reporting Rule - Data • proposes to collect data directly • will likely share data through Consolidated Emissions Reporting Schema (CERS) or similar data exchange mechanism • requests comment on allowing states to collect data • requests comment on how best to harmonize with state programs

22. Benefits for Members/Reporters • Cost-effective means to track/manage GHG emissions • “Can’t manage what you don’t measure” • Can take 2-3 years to perfect GHG tracking and reporting • Full corporate carbon footprint • Access to software, training and technical support • Document early actions • Prepare for mandatory state/federal reporting • Identify energy efficiency opportunities, cost savings • Recognition as a global environmental leader

23. For More Information: Ann McCabe, Midwest Regional Director (773) 661-1230 ann@theclimateregistry.org Western: Tymon Lodder Eastern: Denise Sheehan www.TheClimateRegistry.org