session 1[1].1 - tonkonogy presentation
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SETTING THE STANDARD IN GREENHOUSE GAS MANAGEMENTCLIMATE LEADERS
Greenhouse Gas Workshop:
Developing a GHG Management Strategy
Federal Environmental Symposium East
June 2, 2008
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Federal Leadership on climate and
energy
Energy Star
175 Federal buildings with Energy Star label
Portfolio Manager (Veterans Administration has linkedenergy tracking system to provide current ratings)
New feature in PM to calculate emissions from buildingdata
Green Power Partnership- U.S. Air Force, VA, andEPA among top purchasers
Federal Energy Management Program
Collecting energy data, promoting best practices,emissions calculations
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Main Street Significant public interest,
green shoppers, educatedconsumers
Employee satisfaction Staff want to feel employeris good corporate citizen
E.O. 13423 Annual energy efficiency and renewable energy goals
Goal to reduce greenhouse gas emissionsLegislation coming? Draft House bill H.R. 3221 (2007) included requirement
for agencies to inventory GHG emissions as part ofCarbon Neutral Government Act (did not pass)
Next Frontier:
Agency-wide greenhouse gas management
http://www.time.com/time/magazine/0,9263,7601070409,00.htmlhttp://www.time.com/time/magazine/0,9263,7601060403,00.html -
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Benefits of Developing a Strategy
Reduce impact on the global environment Better manage greenhouse gas emissions and
associated risks across emissions sources (buildings,fleets, plants, etc)
Realize cost savings through energy efficiency Integrate climate change strategies with State,
Regional, and International GHG accounting schemes
National Renewable Energy Laboratory and
U.S. Forest Service
are Partners in Climate Leaders
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Climate Leaders works with organizations to developa long-term comprehensive GHG management
strategy
Road-tested with nearly 200 partners from every major
sector across the country, representing 8% U.S.emissions and 10% U.S. GDP
3 critical components to credible strategy Complete Agency-Wide GHG Inventory Develop Inventory Management Plan (IMP)
Set Aggressive Agency-Wide GHG Reduction Goal Annual reporting to EPA creates lasting record of
accomplishments and identifies agency asenvironmental leader
EPA recognizes and publicizes progress in the program
Credible Climate Strategy
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Program Participation Steps
Partner Joins Program
EPA assists Partner in developing inventory and inventorymanagement plan (generally within 1 year)
Partner reports annual inventory data to EPA anddocuments progress toward goal
Partner may participate in meetings, public outreach,press events, etc.
Partner sets agency wide 5-10 year GHG reduction goal
Partner Achieves Goal
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Climate Leaders Partnersreceive high-level recognition via:
Press events Recognition events with EPA Page on CL web site Use of program logo Articles in local, national, and
trade magazines Partner conferences, newsletters,
speaking opportunities Public Service Announcements
(PSAs) in mainstream press.2007-8 PSA seen by over 10million people
National Public Recognition
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ReportingReportingFirst and SecondFirst and Second
ComponentsComponents
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EPA Inventory Guidance
Based on
International WRI/WBCSD GHG Protocol:
The most widely used international accounting tool for
government and business leaders to understand,quantify, and manage energy use and greenhouse gasemissions.
Convened in 1998 by the World Resources Institute(WRI) and the World Business Council for SustainableDevelopment (WBCSD)
Multi-stakeholder development process included severalhundred individuals from corporations, NGOs, andgovernments throughout the world.
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GHG Protocol- Global Adoption
Voluntary Climate Initiatives
U.S. EPA Climate Leaders Program
China, India, Mexico, Brazil, and
Philippines GHG Management Programs
Korea National GHG Registry
South Africa NBI/BUSA-DEAT Initiative
WWF Climate Savers Program
GHG Registries
The Climate Registry
US DOE 1605b Registry WEF Global Registry
Multilateral Non-government Initiatives
International Standards Organization (ISO)
Industry Initiatives WBCSD CSI Protocol
International Forum of Forest
and Paper Associations
International Aluminium Institute
Market Initiatives
AP 6 Initiative Cement Sector
Protocol
Carbon Disclosure Project
Chicago Climate Exchange
EU Emissions Trading Scheme
(informed by GHG Protocol
calculation tools)
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Required Agency-wide
6 major Greenhouse Gases (CO2, CH4, N2O, PFC, HFC,SF6)
Direct emissions Indirect emissions from electricity, heat, and steam
Optional
Offset projects Employee travel and commuting
Product transport
Contractor operations/sites
First Component:
Develop a Customized Inventory
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Step 1
Identify Organizational Boundaries
Which facilities should you include?ORGANIZATIONAL
BOUNDARY
APPROACH
EQUITY SHARE(by % ownership)
CONTROL
FINANCIAL CONTROL
(by economic interest)
OPERATIONAL
CONTROL
(by operating policies)
Approach matters most for treatment of partially owned or
operated facilities (e.g. government owned contractor operated)and for lease agreements
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Step 2
Identify Operational Boundaries
Which sources of emissions should you include?
Stationary Combustion of fossil fuel
Process emissions Mobile Sources
Refrigeration/AC
Purchased electricity or steam
Other Sources: backup generators, fuel forheating, aircraft, anaerobic wastewater treatment
Optional Sources (e.g., business travel)
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Emissions Scopes
Source: WRI/WBCSD GHG Protocol
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Step 3
Choose a Base Year
Typically the most recent year for which quality dataare available
For federal agencies may be defined by E.O. 13423guidelines
Rules for adjusting your base year data for: Acquisitions/divestitures: adjust your base year data
when these occur
Organic growth/decline: do not adjust your base yeardata
Question to ask: Are these new emissions to the
atmosphere, or did they exist previously?
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Second Component
Create an Inventory Management Plan
Institutionalizes process
Develop and implement an IMP or a similar collection ofStandard Operating Procedures and document process
EPA provides checklist ofcomponents for good IMP touse as guideline whenpreparing documentation
EPA offers technicalassistance to helporganizations complete IMP
documentation
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IMP Components
Partner Information Boundary Conditions
Facilities and sources included
Emissions quantifications
Methods and factors Data management Activity data, data management process, QA/QC
Base Year Adjustment thresholds
Management tools Roles & responsibilities, training, document retention
policies Auditing & verification
Internal & external
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IMP Requirement Example
A list of emission factors and other constants andreference for factors and constants (i.e. GlobalWarming Potentials and conversion factors) for eachemission category
Descriptions of the process for how external references
are kept current Where multiple factors are used, specify which facility /
source uses the respective factor
Agency should provide specific information on theemission factors and other constants used to developGHG inventory
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Inventory Management Plan
Internal Benefits
Institutionalizes inventory process
Leads to comprehensive & credible data management
Increases efficiency/lowers costs by centralizingprocesses
Increases accuracy and transparency
Facilitates long-term emissions/goal tracking May facilitate documentation of capital savings
Allows for continual improvement
IMP provides assurance that Partners develop a high-quality inventory that is consistently maintained andupdated over time
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Resources Available
p://www.epa.gov/climateleaders/resources/index.html
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GOALSGOALS
Third ComponentThird Component
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Third Component
Set an aggressive, long-term GHG goal
Absolute 3M pledges to reduce total U.S. GHG emissions by 30
percent from 2002 to 2007
Normalized
Holcim (US) Inc. pledges to reduce U.S. GHG emissionsby 12 percent per ton of cement from 2000 to 2008
Index Ball Corporation pledges to reduce total U.S. GHG
emissions by 16 percent per production index from 2002
to 2012 Net Zero (Carbon Neutral)
Melaver, Inc. pledges to achieve net zero U.S. GHGemissions by 2006 and maintain that level through 2009
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Ensuring leadership goals
Criteria: Agency-Wide
Based on the most recent base year for which data areavailable
Achieved over 5 to 10 years Expressed as an absolute GHG reduction or as a
decrease in GHG intensity
Aggressive compared to the projected GHGperformance for the sector
EPA individually negotiates each
Climate Leaders goal
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Benefits of Setting a Goal
Focus high-level attention on existing and potentialreduction activities
Institutionalize management and tracking of progressfor energy and GHG reduction activities
Encourage innovation
Identify new reduction opportunities
Employee morale, recruiting, and retention
Positive media attention
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How to set a goal
Assemble a broad-based team Engineers, environmental, energy, communications,
procurement, policy
Analyze GHG data
Relative contribution of scope 1 vs 2 vs 3 Compare similar facilities
absolute energy level
intensity (e.g. energy use per square foot of building space)
Evaluate historic data and trends if possible Identify any existing company goals in energy and/or
environment
E.g. EO 13423
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Analyze Future Scenarios
Identify planned construction, moves, facilityclosures, etc and likely effects on emissions
Analyze low and high ranges of growth
projections Facility- office, data centers, labs
FTEs
Analyze energy price forecasts
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Identifying Reduction Opportunities
Identify best practices in marketplace Energy management systems
automated tracking
corporate energy manager and team
Innovative technologies
Identify projects Already in pipeline
Energy efficiency
Renewable energy
Capital projects that might improve efficiency Future possibilities/ wish list
Conduct financial analysis of projects
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Working with a 3rd Party
Working with a 3rd party to set a goal can addcredibility to your effort
EPA process:
1) Partner presents an initial goal proposal to EPA(based on inventory and internal analysis)
2) EPA completes performance benchmarkanalysis- evaluates sector business-as-usualenergy/carbon intensity performance
3) Partner and EPA negotiate a mutually agreeablegoal- aggressive yet achievable
4) EPA publicly announces a goal and providesrecognition for companys efforts
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EPA Analysis
Creating a Performance Benchmark
DOEs National Energy Modeling System (NEMS)
forecasts fuel-specific consumption for heavy industry forecasts commercial building energy demand
Bureau of Labor Statistics (BLS) Forecastinput/output tables for the US economy estimates fuel quantities purchased/$output
ICFs Integrated Planning Model (IPM) For electric generators
Three models to determine Business-As-Usual sectorimprovement rates & current average intensity ratesbased on companys sector
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Sample Goal Setting Analysis
California Portland Cement Company
Goal Proposal: 9% per production index from 2003-2012
Sectors forecasted benchmark improvement rate
(NEMS model): Reduce CO2 emissions by 4.12% per ton of cement
output by 2012
Cal Portland exceeds forecasted BAU improvementrate by 118%
Additional Factors: Energy Star Partner (Partner of theYear 2005), current intensity better than sector average
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Tracking your Progress
Always track your absolute emissions
If you choose a normalized goal:
Determine an appropriate production metric that makessense for your agency
Should correlate closely to GHG emissions to measureaccurately improvements in efficiency
Examples: square footage of building space (energytracks more closely to this than to, e.g. # employees)
If you divest a facility, make sure to adjust forproduction metric as well as emissions
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Using RECs and Offsets
Renewable Energy Certificates (RECs) and offsetsare considered an adjustment to emissions and canbe used towards meeting goals
RECs - credible way to reduce emissions from
electricity use, should follow green power marketdefinitions for eligibility
Offsets - project-based reductions, apply towardsScopes 1 and 3 Climate Leaders methodologies for landfill gas,
anaerobic digesters, commercial & industrial boilers,transit bus projects, reforestation/afforestation
Based on performance standard approach
Questions on whether federal government authorized tomake these purchases
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Going carbon neutral
1. Develop a robust GHG inventory and inventorymanagement plan
Include at least one significant optional source
2. Achieve Internal GHG Reductions
Commit to implementing internal GHG reductionmeasures. This commitment should be expressed asan internal GHG reduction goal that is aggressive as astand-alone goal
3. Purchase Green Power, Renewable Energy Certificates
(RECs), and/or Offsets Green Power/RECs to reduce emissions associatedwith electricity use
Project-based reductions to offset the remainingemissions from direct, other indirect, and optional
emissions sources
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Results
Leadership in the Defense Industry
2004: UTC pledges to reduce global GHG emissions by 16
percent per dollar revenue from 2001-2006.
2006: Lockheed Martin pledges to reduce U.S. GHG
emissions by 30 percent per dollar revenue from 2001-2010.
Raytheon Company pledges to reduce U.S. GHGemissions by 33 percent per dollar revenue from 2002-2009.
2007: UTC reduced global GHG emissions by 46 percent per
dollar revenue from 2001-2006. UTC pledged to reducetotal global GHG emissions by 12 percent from 2006-2010.
??2008??
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Low Hanging Fruit Lighting Projects (sensors, CFL and high efficiency lights) Upgrade Cooling (high efficiency units, system balance) Reduce Plug Load (high efficiency equipment) Variable Speed Systems for Air Handling and Product
Distribution Mobile Sources (employee travel/commuting and product
transport)
Higher Hanging Fruit Combined Heat and Power (CHP) Landfill Gas Recovery
Install Green Power (solar panels, micro turbines)Innovative Projects
New Heating/Cooling Systems (ice, under floor distribution,solar and wind building exposure)
Green Roofs
General GHG Reduction Methods
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Thank you
Manuel J Oliva, PE
(202) 343-9094
oliva.manuel@epa.gov
Bella Tonkonogy
(202) 343-9183
tonkonogy.bella@epa.gov
www.epa.gov/climateleaders
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