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
   

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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
   

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3. 3
   © 2022 CENTER FOR RESOURCE SOLUTIONS. ALL RIGHTS RESERVED.
   

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4. 4
   © 2022 CENTER FOR RESOURCE SOLUTIONS. ALL RIGHTS RESERVED.
   

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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
   

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6. 6
   © 2022 CENTER FOR RESOURCE SOLUTIONS. ALL RIGHTS RESERVED.
   Electric Sector
   GHG Emissions
   Totals
   

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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
   

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8. 8
   © 2022 CENTER FOR RESOURCE SOLUTIONS. ALL RIGHTS RESERVED.
   5 source-based
   attributional totals
   

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9. 9
   © 2022 CENTER FOR RESOURCE SOLUTIONS. ALL RIGHTS RESERVED.
   3 load-based
   attributional totals
   

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10. 10
    © 2022 CENTER FOR RESOURCE SOLUTIONS. ALL RIGHTS RESERVED.
    3 consequential totals
    

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11. 11
    © 2022 CENTER FOR RESOURCE SOLUTIONS. ALL RIGHTS RESERVED.
    Electric Sector
    GHG Emissions
    Totals
    

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12. 12
    © 2022 CENTER FOR RESOURCE SOLUTIONS. ALL RIGHTS RESERVED.
    Electric
    Sector GHG
    Emissions
    Totals for
    Different
    Users
    

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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
    

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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
    

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15. 15
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    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
    

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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.
    

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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
    

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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
    

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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
    

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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.
    

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