Climate Change Obligations By Matt Burris

As the topic of climate change becomes hotter and hotter, we at CTG are increasingly working with clients to help them understand their potential obligations under state laws such as AB 32 and the California Environmental Quality Act (CEQA) to engage in activities that are becoming commonly known as Climate Action Planning. As cities and counties update their General Plans, they are required to implement a climate change program in order to demonstrate how their communities will start transitioning to a low carbon future. What we have found is that there is a growing level of uncertainty as to what might be the appropriate scope of effort to in order to develop an appropriate emissions reduction program.

We are finding that there are generally three types of climate change programs that communities, colleges, and other organizations are developing. These types of programs are largely defined by their difference in detail of the input data, the type of verification or reductions (if any), and the nature of the implementation plan.

1. Policy Grade:
   
   Policy grade programs include GHG inventories that are comprised of a minimum level of detail and statistical data rather than measured data. They present a vision, high-level policies, and measures for the reduction of emissions, but likely do not have a detailed implementation plan. Their purpose is to provide enough information to begin a dialogue on reducing GHG emissions and to establish new policies for reducing GHG emissions.



2. Regulatory Grade:
   
   Regulatory grade programs present moderately detailed GHG inventories, specific emissions reduction measures with quantified emissions reductions potential, a clear foundation for project evaluation and approval, and clear guidance to the private sector on requirements and expectations. Their primary purpose is to assist communities with the review of development applications.



3. Registry Grade:
   
   Registry grade programs present detailed GHG inventories with quantified emissions reductions potential, an implementation framework, a process for verifying reductions in accordance with the procedures of a selected registry, and steps for reporting reductions to a registry. Their purpose is to provide a program for reporting emissions reductions to an organization such as the Climate Action Reserve.

One of the key steps a community must undertake before committing to an emissions reduction program is to determine which program approach is most appropriate. Community leaders should consider what their needs are and how their emissions reduction program will be used when it is complete. Is the program meant to be mainly inspirational and begin a community discussion on how to reduce emissions? Is the program meant to provide a framework for regulating new development? Is the program meant to measure actual fuel use and emissions for reporting to the Climate Action Reserve? Additionally, communities should consider the tiering guidance of SB 97 to ensure a seamless connection with future CEQA compliance.

Communities should also consider the resources they can commit to an emissions reduction program. Very generally speaking, the level of detail involved in developing the emissions inventory and in analyzing the emissions reduction potential of various strategies correlates to the level of effort needed to complete the program. However, this is not always the case as data availability, community involvement, and political environment can also strongly affect the program development process and require additional effort.


As more communities draft emissions reduction programs, the industry will begin to better understand the process and the merits and limitations of the various grades of emissions reduction programs. As the economy recovers and communities begin implementing their emissions reduction programs, this discipline will take a leap forward, informed with the knowledge of which data works and which emissions reductions strategies are most effective, helping to reduce the level of effort needed to prepares these programs and increasing the overall sophistication Climate Action Planning.

-Matt

Matt Burris is a Director with CTG Energetics based in CTG’s Irvine office. He manages the firm’s climate services team and is currently leading efforts to develop emissions reduction programs for communities in State of California.
ctg@ctgenergetics.com

Don’t just offset. Engage with offsets. By Chris Pyke

We’re starting to understand the rules of the road for our transformation to a low carbon future: First, reduce energy demand. Next, use energy efficiently. Seek our clean energy supplies. However, we’re also learning that these steps often leave us short of carbon neutrality. To achieve carbon neutral operations, it is often necessary, at least in the short term, to seek offsite emissions reduction, also known as carbon offsets.

Offsets can be valuable and economically important tools for achieving real emissions reductions. They help address the reality that the costs of squeezing that last 10% of carbon out of a project are often much greater than the costs of eliminating the first 10%. This means that we can stretch our emissions reduction dollars by attacking the “first 10%” from many projects. This kind of thinking leads economists to call offsets “efficient” and, in theory, allows us to reduce the cost of achieving emissions reductions.

However, this kind of thinking also turns emissions reductions into a commodity. Carbon as corn, soy beans, or pork bellies. However, a ton of carbon is not always just a ton. Reductions in greenhouse gas emissions often come attached to important co-benefits. For example, they can reduce monthly energy bills for low-income households, reduce traditional criteria air pollutants, and support broader environmental and restoration protection efforts, such as lake acidification.

Used strategically, offsets can be used to reduce emissions and achieve important social and economic objectives, such as increasing housing affordability or improving schools. This is basis for an important new sustainability strategy: engaged offsets. With engaged offsets, emissions reductions are targeted at projects or populations with the goal of reducing greenhouse gases and serving a larger purpose.

CTG recently completed a demonstration project in the Lower 9th Ward neighborhood of New Orleans. CTG designed and implemented an engaged offset program that targeted a low-income community recovering from Hurricane Katrina. CTG worked with Toyota Motor Sales, USA to characterize the carbon footprint of its tradeshow operations. CTG then arranged for a donation from the company to a small non-profit organization called Hope Has a Face. This donation provided funds for solar hot water heaters to be purchased and installed in renovated housing units and a community center. Over the life of the units, the project will offset over 1,200 metric tons of carbon emissions and save residents thousands of dollars in energy bills. This win-win situation reduces impacts on the planet and helps a community that really needs it. The engaged offsets model can be applied anywhere to link entities that desire emissions reductions with those that would benefit from measures to create them.

Learn more at Greenbuild. Listen and join the discussion on Wednesday afternoon (11/19) at session GR04 Engaged Offsets: Environmental Action Meets Social Justice. Or, contact Chris Pyke for more information cpyke@ctgenergetics.com.

Chris

Dr. Chris Pyke is CTG Energetics' Director of Climate Change Services