Understanding Different Electricity Emissions Totals for State Policy and Corporate Reporting

Reviewing concepts in the recently released "Guide to Electricity Sector Greenhouse Gas Emissions Totals" (https://resource-solutions.org/document/110322/) this webinar will examine different ways to account for the greenhouse gas emissions associated with electricity production and consumption and how different accounting approaches get applied in different policies and accounting frameworks. Understanding different accounting approaches and emissions totals and using the right approach for a particular objective enables accurate accounting, better decision making, and effective program design. CRS will be joined by the Clean Energy Buyers Institute (CEBI), Singularity Energy, and the Washington State Department of Commerce to provide perspectives on corporate reporting and procurement, electricity and emissions data improvements, and state regulatory program design considerations and regional program interaction and accounting challenges.

SPEAKERS
• Glenn Blackmon, Manager, Energy Policy Office, Washington State Department of Commerce
• Todd Jones, Director, Policy, Center for Resource Solutions
• Doug Miller, Deputy Director, Market & Policy Innovation, Clean Energy Buyers Association (CEBA)
• Greg Miller, Research and Policy Lead, Singularity Energy

Transcript

1. UNDERSTANDING DIFFERENT ELECTRICITY EMISSIONS TOTALS: FOR STATE POLICY AND CORPORATE REPORTING December 7, 2022
2. 2 © 2022 CENTER FOR RESOURCE SOLUTIONS. ALL RIGHTS RESERVED. Speakers Todd Jones Director, Policy Center for Resource Solutions Doug Miller Deputy Director, Market & Policy Innovation, Clean Energy Buyers Institute Greg Miller Research and Policy Lead, Singularity Energy Glenn Blackmon Manager, Energy Policy Office Washington State Department of Commerce
3. 3 © 2022 CENTER FOR RESOURCE SOLUTIONS. ALL RIGHTS RESERVED.
4. 4 © 2022 CENTER FOR RESOURCE SOLUTIONS. ALL RIGHTS RESERVED.
5. 5 © 2022 CENTER FOR RESOURCE SOLUTIONS. ALL RIGHTS RESERVED. Source-based (Production) Load-based (Consumption) Attributional (Emissions) Source-based Attributional: Direct emissions from generation in a place Load-based Attributional: Direct emissions from purchased/sold generation Consequential (Avoided Emissions) Source-based Consequential: Avoided emissions from generation in a place Load-based Consequential: Avoided emissions from purchased/sold generation Four Types of GHG Accounting for Electricity
6. 6 © 2022 CENTER FOR RESOURCE SOLUTIONS. ALL RIGHTS RESERVED. Electric Sector GHG Emissions Totals
7. 7 © 2022 CENTER FOR RESOURCE SOLUTIONS. ALL RIGHTS RESERVED. Emissions Total Details Tables 1. Description 2. Consumer claim 3. What it is not 4. How it is calculated 5. Generation data 6. Market data required? 7. RECs required? 8. How it is reported/regulated 9. Reporting entity 10. Reporting timeframe 11. Uses/importance 12. Limitations 13. How to manage it
8. 8 © 2022 CENTER FOR RESOURCE SOLUTIONS. ALL RIGHTS RESERVED. 5 source-based attributional totals
9. 9 © 2022 CENTER FOR RESOURCE SOLUTIONS. ALL RIGHTS RESERVED. 3 load-based attributional totals
10. 10 © 2022 CENTER FOR RESOURCE SOLUTIONS. ALL RIGHTS RESERVED. 3 consequential totals
11. 11 © 2022 CENTER FOR RESOURCE SOLUTIONS. ALL RIGHTS RESERVED. Electric Sector GHG Emissions Totals
12. 12 © 2022 CENTER FOR RESOURCE SOLUTIONS. ALL RIGHTS RESERVED. Electric Sector GHG Emissions Totals for Different Users
13. 13 © 2022 CENTER FOR RESOURCE SOLUTIONS. ALL RIGHTS RESERVED. Examples and Important Distinctions Total 2. Source-based Attributional: LSE Emissions from Electricity Generation Total 7. Load-based Attributional: LSE Emissions from Electricity Sold to Retail Customers Source-based v. Load-based Accounting
14. 14 © 2022 CENTER FOR RESOURCE SOLUTIONS. ALL RIGHTS RESERVED. Load-based Accounting • Allocating emissions to load/customers • Requires use of a tracking instrument or method • Reflects contractual and legal systems for transacting specified power in the U.S. and other markets • Requires “market data,” including REC data
15. 15 © 2022 CENTER FOR RESOURCE SOLUTIONS. ALL RIGHTS RESERVED. Examples and Important Distinctions Total 8. Load-based Attributional: Market-based Scope 2 Emissions Total 9. Load-based Consequential Emissions Total 4. Source-based Attributional: Grid Average Location-based Scope 2 Emissions Total 5. Source-based Attributional: Grid Modeling Location- based Emissions Total 11. Global/Sectoral Emissions Reductions Market-based Scope 2 Accounting
16. 16 © 2022 CENTER FOR RESOURCE SOLUTIONS. ALL RIGHTS RESERVED. Market-based Scope 2 Accounting • Consumer’s indirect emissions associated with purchased electricity • Fundamentally load-based and attributional • “Market-based” where transactions of specified power occur • Company-level emissions inventory or “footprint” total—can change without affecting emissions sources or emissions in the sector • Measuring the generation that consumers are buying, demand for emissions • Measuring choice and demand-side action separately from sectoral emissions has value.
17. 17 © 2022 CENTER FOR RESOURCE SOLUTIONS. ALL RIGHTS RESERVED. Examples and Important Distinctions Total 4. Source-based Attributional: Grid Average Location-based Scope 2 Emissions Total 5. Source-based Attributional: Grid Modeling Location- based Emissions Location-based Accounting
18. 18 © 2022 CENTER FOR RESOURCE SOLUTIONS. ALL RIGHTS RESERVED. Examples and Important Distinctions Total 9. Load-based Consequential Emissions Total 11. Global/Sectoral Emissions Reductions Total 10. Source-based Consequential Emissions Impact
19. 19 © 2022 CENTER FOR RESOURCE SOLUTIONS. ALL RIGHTS RESERVED. Key Takeaways States • Be clear about what you’re regulating and measuring • Don’t double count. Market data and REC retirement may be needed. • Measure like your neighbors, if possible. Corporate reporters • Be clear about what you’re measuring and claiming. • Don’t just focus on Scope 2. • Scope 2 is load-based, and market-based where markets exist • Consequential does not measure what’s used. But it’s helpful. • Avoided grid emissions ≠ global emissions reductions. NGOs • Use the right totals to evaluate/recognize. • Difference between sectoral/global emissions reductions and reductions to other totals
20. Contact Todd Jones Director, Policy todd.jones@resource-solutions.org 415.561.2118 www.resource-solutions.org 20 © 2022 CENTER FOR RESOURCE SOLUTIONS. ALL RIGHTS RESERVED.