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Clean Energy Accounting Project: Standard Delivery Renewable Energy

Clean Energy Accounting Project: Standard Delivery Renewable Energy

Consumers working to meet renewable energy and greenhouse gas emissions targets find many challenges when accounting for renewable energy that they do not actively procure. This webinar will present the newly defined consensus position on credible use claims for Standard Delivery Renewable Energy, explore variability across current data sources, and propose a new set of data credibility criteria and quality considerations to guide consumers. We will also explore how leadership criteria may go beyond credibility and examine a real-world case study.

SPEAKERS
• Holly Lahd, Lead Energy Program Manager, Target
• James Critchfield Director, Green Power Partnership Program, U.S. EPA
• Todd Jones, Director, Policy, Center for Resource Solutions
• Peggy Kellen, Director, Policy, Center for Resource Solutions

This webinar is part of Center for Resource Solutions’ new Clean Energy Accounting Project (CEAP), which develops standardized, stakeholder-reviewed clean energy and GHG emissions accounting guidance to address outstanding questions in voluntary and regulatory markets.

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March 16, 2021
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Transcript

  1. Accounting for Standard
    Delivery Renewable Energy
    March 16, 2021
    © 2021 Center for Resource Solutions. All rights reserved.

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  2. PAGE
    2
    Today’s Agenda
    © 2021 Center for Resource Solutions. All rights reserved.
    • Welcome
    • Project and Report Overview
    • Speakers:
    • Todd Jones, Center for Resource Solutions
    • James Critchfield, US Environmental Protection Agency
    • Holly Lahd, Target Corporation
    • Q&A

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  3. PAGE
    3
    Nongovernmental Organization (NGO)
    creating policy and market solutions to
    advance sustainable energy since 1997.
    • Education, including the Renewable Energy
    Markets annual conference
    • Green-e® certification for suppliers and users of
    renewable energy and carbon offsets in the
    voluntary market
    • Renewable energy policy and market development
    Center for
    Resource Solutions
    © 2021 Center for Resource Solutions. All rights reserved.

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  4. Develops standardized, stakeholder-reviewed clean energy
    and GHG emissions accounting guidance and best practices
    Addresses outstanding questions in voluntary and regulatory
    markets
    Focus areas include:
    • Accounting for Clean Energy Use
    • Hourly Renewable Energy Accounting
    • Renewable Energy Impact Metrics
    • Clean Energy Storage
    • Regulatory Policy
    Clean Energy Accounting Project (CEAP)
    PAGE
    4
    © 2021 Center for Resource Solutions. All rights reserved.
    To Learn More: www.resource-solutions.org/CEAP

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  5. Accounting for
    Standard Delivery
    Renewable Energy.
    PAGE
    5
    © 2021 Center for Resource Solutions. All rights reserved.

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  6. Voluntary
    PAGE
    6
    © 2021 Center for Resource Solutions. All rights reserved.
    • Active purchases of renewable energy
    • Driven by consumer preference for
    certain types of renewables
    • Allows customers to reduce impact of
    their electricity use
    • Reduces available REC supply,
    providing an indirect signal to the
    market to develop new renewable
    generation
    • Provides opportunities for consumers
    directly impact new renewable energy
    development
    • No active procurement
    • Provided on behalf of all customers
    • Delivery typically driven by
    government mandate, utility targets,
    or where renewables are a cost-
    effective resource
    • As renewable energy targets grow
    toward 100%, ability to include
    Standard Delivery Renewable Energy
    avoids over procurement
    • Can be difficult to identify credible
    data
    • Use is not directly impactful
    Standard Delivery

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  7. • Different accounting approaches creating uncertainty and
    limiting voluntary commitments
    • Lack of clarity around what is needed and available to
    support credible claims
    Problem Statement
    PAGE
    7
    © 2021 Center for Resource Solutions. All rights reserved.
    Objectives
    • Clarify when the use of Standard Delivery Renewable
    Energy may be credibly reported by customers
    • Identify existing and needed resources that may help
    companies account for Standard Delivery Renewable
    Energy and associated GHG emissions

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  8. Survey
    Workshop 1: Identify Consensus
    • Supporting Document: Recognition of
    Standard Delivery Renewable Energy
    in Different Programs and Standards
    Workshop 2: Data Focus
    • Supporting Document: Data Sources:
    Accounting for Standard Delivery
    Renewable Energy
    Final Report
    Approach
    PAGE
    8
    © 2021 Center for Resource Solutions. All rights reserved.

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  9. Stakeholders
    PAGE
    9
    • Maya Kelty, 3Degrees
    • Chris Roe, Amazon
    • Matt Panopio, Amazon
    • Devon Walton, APX
    • Charles Eley, Architecture 2030
    • Pedro Faria, CDP
    • Ed Holt, Ed Holt & Assoc.
    • Adam Cooper, Edison Electric Institute
    • James Critchfield, US Environmental Protection
    Agency
    • Travis Johnson, US Environmental Protection Agency
    • Ben Gerber, M-RETS Inc.
    • Jenny Heeter, National Renewable Energy Lab
    • Andrew Glumac, RE100
    • Priya Barua, Renewable Energy Buyers Alliance
    • Holly Lahd, Target Corporation
    • Chelsea Hasenauer, The Climate Registry
    • Michelle Zilinskas, The Climate Registry
    • Jeff Deyette, Union of Concerned Scientists
    • Lori Bird, World Resources Institute
    • Heidi Ratz, World Resources Institute
    • Norma Hutchinson, World Resources Institute
    • Dan Sobrisnki, WSP
    • Katie Eisenbrown, WSP
    • Dara Ward, Xcel Energy
    • Lauren Quillian, Xcel Energy
    • Nick Martin, Xcel Energy
    © 2021 Center for Resource Solutions. All rights reserved.

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  10. Supporters
    PAGE
    10
    © 2021 Center for Resource Solutions. All rights reserved.
    The findings outlined in this report are supported by:

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  11. About the
    report.
    PAGE
    11
    © 2021 Center for Resource Solutions. All rights reserved.

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  12. • Accounting for Consumption of Renewable Energy
    • Standard Delivery Renewable Energy Data
    • Potential Data Criteria and Considerations
    • Reporting Actively Procured and Standard Delivery
    Renewable Energy
    What’s Included?
    PAGE
    12
    © 2021 Center for Resource Solutions. All rights reserved.

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  13. Standard Delivery Renewable Energy may be credibly
    reported by a customer as consumed renewable
    energy and by a provider as delivered renewable
    energy when the attributes of the renewable energy
    are retained or retired on behalf of the customer (or a
    group including the customer), and other established
    requirements for credible renewable electricity usage
    claims are met.
    Consumers and leadership recognition programs may
    require that renewable energy consumption used to
    meet a target meet additional criteria.
    Consensus Statement:
    PAGE
    13
    © 2021 Center for Resource Solutions. All rights reserved.

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  14. Todd Jones
    Center for Resource Solutions
    Standard Delivery Renewable
    Energy Data
    PAGE
    14
    © 2021 Center for Resource Solutions. All rights reserved.

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  15. The data needed to substantiate credible claims to
    Standard Delivery Renewable Energy is inconsistent
    and often unavailable.
    PAGE
    15
    © 2021 Center for Resource Solutions. All rights reserved.

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  16. Chapter 01.
    Data Categories
    PAGE
    16
    © 2021 Center for Resource Solutions. All rights reserved.

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  17. 1. Supplier-specific data
    2. Renewable Portfolio Standard (RPS) compliance data
    3. Residual mix data
    4. Grid mix or grid average data
    For resource mix (fuel type) or GHG emissions (CO
    2
    or CO
    2
    e) or
    both.
    Data Source Categories
    PAGE
    17
    © 2021 Center for Resource Solutions. All rights reserved.

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  18. Information about GHG emissions or the resource mix
    representing the portfolio of resources used (owned or
    procured) for retail customers or sales.
    Renewable energy included in a standard offer or default
    product may be considered Standard Delivery Renewable
    Energy.
    • Databases
    • Individual utility programs
    • Power source disclosure (PSD)
    • RPS compliance (separate category)
    Supplier-specific Data
    PAGE
    18
    © 2021 Center for Resource Solutions. All rights reserved.

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  19. Information about load-serving entity (LSE) or state-wide
    compliance with state regulatory mandates that require LSEs to
    supply a percentage of retail sales with renewable resources.
    May represent a percentage of renewable energy delivered to,
    and that may be claimed by, all utility customers.
    RPS Data
    PAGE
    19
    © 2021 Center for Resource Solutions. All rights reserved.

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  20. In general, “untracked or unclaimed energy and emissions,” or
    “publicly shared electricity.”
    In practice, residual mix may be calculated as:
    • Energy production/generation data that factors out voluntary
    renewable energy purchases; or
    • The generation attributes remaining after all specified power
    and renewable energy certificate (REC) purchases are
    removed from the system (i.e. “unsettled” generation).
    Residual Mix Data
    PAGE
    20
    © 2021 Center for Resource Solutions. All rights reserved.

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  21. Production data for a certain area.
    Can account for imports and exports.
    Typically, does not represent delivered electricity.
    May include Standard Delivery Renewable Energy as well as all
    other renewable energy located in a certain area.
    Grid Mix Data
    PAGE
    21
    © 2021 Center for Resource Solutions. All rights reserved.

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  22. Chapter 02.
    Variation Between and Within
    Data Categories
    PAGE
    22
    © 2021 Center for Resource Solutions. All rights reserved.

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  23. 1. Data format and unit.
    2. Included energy resources.
    3. Delivered vs. produced electricity.
    4. Methodologies.
    5. Verification.
    6. Transparency.
    7. Scope.
    8. Frequency.
    Areas of Variability Across Data
    Categories
    PAGE
    23
    © 2021 Center for Resource Solutions. All rights reserved.
    To support a credible renewable energy
    use claim, data must represent delivered
    electricity, and reflect transactions of
    specified generation and attributes (e.g.,
    RECs).
    Consumers with operations across
    service territories or regions may need to
    rely on multiple data sources with
    different characteristics.

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  24. Variation within Data Categories
    PAGE
    24
    © 2021 Center for Resource Solutions. All rights reserved.
    Data Subcategory Areas of Inconsistency
    Supplier-specific
    Databases and Utility
    Program Data
    • Detail of the methodology
    • Verification requirements
    • Treatment of null power
    • Vintage requirements
    • Bundling requirements
    • Scope
    State-required
    Supplier-specific Data
    (e.g. PSD)
    • Electricity generated vs. delivered
    • Renewable energy definitions
    • Treatment of different types of procurement
    • Requirement for standardized methodology
    • Verification requirements

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  25. PAGE
    25
    © 2021 Center for Resource Solutions. All rights reserved.
    Variation within Data Categories
    Data Subcategory Areas of Inconsistency
    Supplier-specific RPS
    Compliance Data
    • Renewable energy definitions
    • Whether use of multipliers, deferred obligations,
    alternative compliance are included or can be broken
    out separately
    • Vintage and banking requirements
    • Treatment of distributed generation
    • Calculation of RPS obligations
    Regional Residual Mix
    Data
    • Scope/coverage
    • Remove all specified vs. voluntary renewable energy
    Regional Grid Average
    Data
    • Not delivered electricity data

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  26. Chapter 03.
    Data Credibility Criteria
    and Quality Considerations
    PAGE
    26
    © 2021 Center for Resource Solutions. All rights reserved.

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  27. 1. The data describes delivered electricity.
    2. Generation information within the data is accurate.
    3. All ownable attributes that define the generation being
    claimed are aggregated.
    4. Attributes are exclusively owned by or retired on behalf of
    the consumer (or a group including the customer) and not
    double counted.
    5. Attributes are not double claimed.
    6. Generation occurs in the same market and relative
    timeframe as consumption.
    Credibility Criteria for Data Sources
    PAGE
    27
    © 2021 Center for Resource Solutions. All rights reserved.

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  28. • Oversight.
    • Transparency of methodology.
    • Data scope and specificity.
    • Environmental quality of renewable resources included.
    • Publication frequency/age.
    • Consistency with other data sources.
    Additional Data Quality Considerations
    PAGE
    28
    © 2021 Center for Resource Solutions. All rights reserved.

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  29. Accounting for Standard
    Delivery Renewable Energy
    Center for Resource Solution’s Clean Energy Accounting Project Webinar
    James Critchfield, US EPA
    March 16, 2021

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  30. Reducing The Impact of Purchased Electricity
    • How do consumers get their electricity?
    • Self-generate
    • Purchase electricity
    • Electricity use is a significant source of emissions and air
    pollution
    • Consumers can reduce the environmental and health impacts
    associated with electricity consumption by proactively choosing
    how their power is generated
    30

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  31. Choice
    • Choice is a powerful driver for change
    • Consumers are increasingly making a choice in how their electricity
    demand is met to address a range of issues including:
    • Acheive RE targets
    • Climate concerns
    • Sustainability interests
    • Cost considerations
    • A consumer’s voluntary and proactive choice for how their power
    demand is generated has shown itself to be a significant influence in
    evolving the grid towards cleaner sources of generation
    31

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  32. Voluntary Consumer Action
    32
    0
    100
    200
    300
    400
    500
    600
    2010 2011 2012 2013 2014 2015 2016 2017 2018 (e) 2019 (e)
    Million MWh
    Year
    Voluntary Green Power Is An Important Market Driver
    34%
    10%
    35%
    20%
    Compliance New
    Compliance Existing
    Adapted from: NREL & LBNL (e): estimated Note: Does not include large hydro

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  33. Claims
    • Both electricity providers and consumers seek to make claims regarding the electricity
    products they supply or consume
    • Because physical electricity tells us little about its source or origin across a shared
    utility grid, a parallel market instrument-based system is used to track, allocate and
    substantiate generation and use of [renewable] electricity
    • The energy attribute instrument used to substantiate renewable generation and use is called a
    renewable energy certificate (REC)
    • RECs underpin generation, delivery and usage claims and are used to reduce a
    consumer’s emissions footprint under greenhouse gas accounting practices
    • The “claimable” portions of the standard delivery grid mix are those that can be
    substantiated based on market instruments and are available to the consumer
    • A provider’s generation portfolio is not the same a delivery for claims and GHG reporting purposes
    33

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  34. Standard Delivery “Mix”
    34
    Conventional Emitting Sources
    Conventional Zero-Emitting Sources
    Existing Renewables
    State Renewable Energy Mandates
    Utility Renewable Economic Investments
    Consumption of a utility’s standard default delivered electricity product may include power from a “mix” of sources

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  35. Standard Delivery RE Considerations
    • Are electricity providers conveying the energy attributes to consumers from their above
    compliance utility economic investments?
    • Does the standard delivery mix of renewable resources meet nationally accepted
    environmental standards in terms of resource quality?
    • Is the electricity provider meeting the state renewable energy portfolio standards through
    “banked” renewable energy certificates?
    • Is the electricity provider meeting the state renewable portfolio standard by way of
    alternative compliance payments, rather than delivery of generated renewable electricity?
    • Can consumers credibly claim energy attributes from existing renewables components of
    the standard delivery mix, such as utility-scale hydropower, which are not often issued
    energy attribute instruments (e.g., RECs)?
    • How should a consumer align their procurement strategy when the standard delivery mix
    includes non-renewable zero-emitting generation, such as nuclear power, when the
    consumer has both a renewable energy and GHG reduction target?
    35

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  36. Consumer Leadership
    • Voluntary consumers seek to make a difference through their
    proactive actions and preferences for specific sources of electricity
    • To credibly make a difference, voluntary consumers should:
    • Make a proactive choice for using green power
    • Substantiate use of electricity from renewable resources with RECs
    • Avoid double claims and double counting
    • Ensure consumption of renewable generation is incremental and
    surplus to what would have otherwise been available to the consumer
    (e.g., regulatory surplus)
    • Ensure the quality and content of a consumed resources meets national
    standards for resource quality and content
    36

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  37. Green Power Leadership Awards
    EPA Areas of Leadership and Impact
    • Intention and Ambition – Organization’s intention and ambition to establish and achieve a renewable energy or
    emissions reduction target using green power.
    ➢ Green Power Use – Organization’s voluntary and proactive green power use demonstrates leadership, drives demand,
    and increases market impact.
    • Communication – Organization’s communications related to green power use help raise awareness, provide social
    proof, inspire others, and support market principles and best practices.
    • Influence – Organization’s concrete actions to influence green power access and use within various communities.
    These communities could include competitors, suppliers, employees, customers, and load-serving entities; communities
    disproportionately burdened by environmental harms and risks, such as minority, low-income, and tribal communities;
    and others.
    • Transparency – Organization’s willingness to collaborate, share information, report data, and advance best practices
    and market principles.
    • Innovation, Sustainability, and Grid Improvements – Organization’s innovative actions help create a more
    sustainable and improved grid to help accelerate the transition to a clean energy future. This includes actions around
    the deployment of storage, electrification of operations, support of resilient grid infrastructure, and supporting market
    principles and best practices
    37
    https://www.epa.gov/greenpower/green-power-leadership-awards

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  38. Questions
    James Critchfield
    [email protected]
    202-343-9442
    38

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  39. EPA’s Green Power Partnership
    39
    +700 Partners
    +70 billion kWh
    used annually
    The equivalent electricity use of
    6.6 million average American homes
    Partnership accounts for
    43% of Voluntary Market
    2%
    of total US annual retail sales
    +100 Green Power Communities
    https://www.epa.gov/greenpower

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  40. CASE STUDY: RENEWABLES FROM UTILITIES IN TARGET’S 100%
    RENEWABLE ELECTRICITY GOAL
    CRS Clean Energy Accounting Project Webinar
    March 16, 2021

    View Slide

  41. 41
    41
    Target’s Clean Energy Strategy and Journey
    Energy
    efficiency,
    Demand
    response
    Rooftop
    solar
    Large-scale
    renewable
    energy
    purchases
    Renewable
    partnerships
    with utilities
    Electric
    vehicle
    charging
    Renewable
    energy in
    supply chain
    2003 -> 2016 -> 2017 ->

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  42. 42
    42
    Renewable Electricity Projects Contribute to Corporate Goals
    Behind-the-Meter
    Onsite Solar
    Utility Green Tariff
    Agreements
    Utility Generation
    Supply
    Virtual Power
    Purchase Agreements
    100% Renewable
    Electricity Goal
    Scope 2 GHG
    Emissions Reduction
    Goal
    Company Goals
    Renewable Energy Sources (w/ RECs)
    Scope 3 GHG
    Emissions Reduction
    Goal

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  43. 43
    43
    Target is served by hundreds of U.S. utilities

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  44. 44
    44
    Values of RE Accounting Guidance
    Clean
    Energy
    Standards
    Utility RE
    procurement
    Voluntary RE
    procurement
    Aligns
    Accounting and
    Public Policy
    Value of RE
    Procurement
    Complementary
    not
    Competitive
    • Begins to connect load, supply, and RE project location in accounting guidance
    • for reporters with multiple facilities across regions
    • Provides consistency among reporting companies
    • Reduces uncertainty => more goal adoption?

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  45. 45
    45
    Q & A
    Holly Lahd
    Target Corporation

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  46. PAGE
    46
    © 2021 Center for Resource Solutions. All rights reserved.

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  47. Thank You.
    Peggy Kellen
    POLICY DIRECTOR
    [email protected]
    415-568-4289
    Todd Jones
    POLICY DIRECTOR
    [email protected]
    415-561-2118
    www.resource-solutions.org
    © 2021 Center for Resource Solutions. All rights reserved.

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