HomeMy WebLinkAbout17 Greenhouse Gas Inventory Results AGENDA ITEM #17
Public Utility District m
MEETING DATE: September 6, 2023
TO: Board of Directors
FROM: Steven Keates, Special Projects Administrator
Michael Salmon, Chief Financial Officer
SUBJECT: Greenhouse Gas Inventory Results
APPROVED BY:
Brian C. Wright, General Manager
RECOMMENDATION:
Staff recommends that the Board receive the presentation/workshop which provides an
overview of the Greenhouse Gas Inventory recently compiled by staff.
BACKGROUND:
An initial 2008 Baseline Greenhouse Gas Emissions Re-Inventory was prepared for
TDPUD in 2012 by Sierra Business Council (SBC). This inventory was then updated in
2013 by SBC to compare 2012 re-inventoried emissions against the original 2008
baseline. No updates have been made to the GHG emissions estimated by the 2012
Inventory while the District has continued to improve its RPS with additional sources of
clean electricity and has maintained robust conservation programming for its customers
since the last inventory in 2012. The 2012 Inventory numbers no longer reflect the
District's current emissions footprint.
ANALYSIS AND BODY:
This presentation will provide information about the GHG inventory's objectives, approach, and how
the inventory fits within the broader context of TDPUD's strategic initiatives (as well as California's
broader climate and energy legislation). A detailed treatment of the information to be presented at
this workshop is provided in an attached staff report.
GOALS AND OBJECTIVES:
District Code 1.05.020 Objectives:
1. Responsibly serve the public.
2. Provide a healthy and safe work environment for all District employees.
3. Provide reliable and high quality water supply and distribution system to meet
current and future needs.
4. Provide reliable and high quality electric supply and distribution system to meet
current and future needs.
5. Manage the District in an environmentally sound manner.
6. Manage the District in an effective, efficient and fiscally responsible manner.
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District Code 1.05.030 Goals:
1. Manage for Financial Stability and Resiliency
2. Environmental Stewardship: Create a sustainable resilient environment for all our
communities.
3. Engage with our customers and communities in a welcoming and transparent way to
identify opportunities.
4. Take the best of private sector thinking to modernize the utility and add value to our
communities.
5. Developing an inclusive culture drives organizational integration and success.
FISCAL IMPACT:
There is no direct fiscal impact associated with this informational item.
ATTACHMENTS:
1. GHG_Wrkshp_Supplemental_lnformation
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AUGUST 29, 2022
TRUCKEE DONNER
Public Utility District
'eo. 4i
2022 GREENHOUSE GAS INVENTORY
WORKSHOP
SUPPLEMENTAL INFORMATION
STEVEN KEATES
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
11570 Donner Pass Road,Truckee, Ca 96161
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Table of Contents
1 Greenhouse Gas Inventory Workshop—Background and Context....................................................................1
1.1 Regulatory and Legislative Context for the GHG Inventory.......................................................................1
1.2 Objectives for Proposed Greenhouse Gas Inventory.................................................................................2
2 Approach for GHG Inventory..............................................................................................................................4
2.1 General Inventory Methodologies .............................................................................................................4
2.1.1 Defining Boundaries and Scope..........................................................................................................4
2.1.2 Defining an Organizational Boundary for the Inventory....................................................................5
2.2 GHG Emission Sources and Inventory Scoping...........................................................................................5
2.2.1 Scope 1 Emission Sources: Direct Anthropogenic..............................................................................6
2.2.2 Scope 2 Emissions Sources: Indirect Direct Anthropogenic...............................................................7
2.2.3 Scope 3: Indirect Emissions Outside of Organization Value Chain.....................................................8
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Definition of Key Terms
Carbon Emissions This term is used to broadly include each of the (6) gasses listed in AB 32
(2006). These gasses include: carbon dioxide, methane, nitrous oxide, sulfur
hexafluoride, hydrofluorocarbons and perfluorocarbons. It is typically
convenient to normalize reported GHG emissions into units of Carbon Dioxide
equivalent (COze)
Carbon Dioxide equivalent A reporting metric which normalizes emissions of different GHG gasses on the
(COze) basis of their global warming potential (GWP)to the equivalent amount of
carbon dioxide with the same GWP
Global Warming Potential The relative potency of different greenhouse gasses to trap heat within
Earth's atmosphere (known as the greenhouse effect).
Net Carbon Reduction A net reduction of carbon emissions assesses the balance between carbon
sources (e.g. any release of GHG emissions) and carbon sinks (e.g. activities
which pull carbon emissions from the atmosphere and render their
greenhouse effect inert). Equivalent reductions can therefore be garnered
through reduction of emissions at the source or activities which
create/expand a carbon sink.
Zero-Carbon Resource A term used in SB 100 to refer to a specific type of electricity generation
resource. SB 100 does not define "zero-carbon resources," and the state had
no legal definition before the bill becoming law.The joint agencies
interpreted "zero-carbon resources" to mean energy resources that either
qualify as "renewable" in the most recent RPS (Renewables Portfolio
Standard) Eligibility Guidebook or generate zero greenhouse gas emissions on
site. SB 100 workshops and documents refer to these criteria as "RPS+"
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In early 2023,TDPUD staff initiated a Greenhouse Gas Inventory to reliably quantify the District's current
emissions footprint—with specific emphasis on those emissions occurring in calendar year 2022.The data
collected through this inventory, and their analysis, are critical in supporting TDPUD's strategic initiatives.
This document is written to provide the Board, and workshop attendees, supplemental information regarding
the GHG Inventory being introduced at the workshop. While much of this material will be discussed during the
workshop,this document is intended to serve as a reference and supplement to the topics discussed.
Given the breadth of the subject matter,the workshop will focus on presenting critical background information
and context regarding the GHG inventory and present a summary of high-level results. A formal report will be
forthcoming which provides a complete treatment of the inventory's implementation and results.
1 Greenhouse Gas Inventory Workshop — Background and Context
An initial 2008 Baseline Greenhouse Gas Emissions Re-Inventory was prepared for TDPUD in 2012 by Sierra
Business Council (SBC).This inventory was then updated in 2013 by SBC to compare 2012 re-inventoried
emissions against the original 2008 baseline.The 2012 Inventory applied an operational control approach to
define the District's organizational boundary used to determine which emissions were reported/inventoried.
These initial probes into the District's greenhouse gas (GHG) emissions focused on day-to-day District
operations, electricity distributed to (and consumed by) customers, and some Scope 3 sources such as employee
commuting. The study concluded that the most significant emissions source for the District was its delivered
electricity, a Scope 2 emission over which the district has only partial control. This emissions source also saw
significant reduction relative to the 2008 baseline due to an increase of'clean' electricity generation within the
District's Renewable Portfolio Standard (RIPS).The Water Department was responsible for approximately 58%of
the District's Scope 1 operational emissions,with the remaining coming from the electric department.
No updates have been made to the GHG emissions estimated by the 2012 Inventory while the District has
continued to improve its RIPS with additional sources of clean electricity and has maintained robust conservation
programming for its customers since the last inventory in 2012.The 2012 Inventory numbers no longer reflect
the District's current emissions footprint.
1.1 Regulatory and Legislative Context for the GHG Inventory
It should be noted that, currently,there are no regulations which require TDPUD to inventory its district-wide
GHG footprint. Rather,this endeavor sits above and beyond of the underlying regulatory landscape in response
to the District's own Net Carbon Reduction strategic initiative.This initiative is a combination of the "100%clean
renewable energy" and "local clean generation" initiatives.The ultimate goal behind these initiatives is to
reduce the amount of carbon in Truckee's environment, and that being produced by Truckee's actions.
However,the former initiatives emphasized energy procurement as a means of GHG mitigation, without
considering how and when the community uses electricity.TDPUD commits to make meaningful progress
towards GHG mitigation through cost-effective energy purchase, beneficial investments into conservation, and
data-driven innovation.
While this inventory is implemented in response to TDPUD's own strategic initiatives,the State of California has
implemented a number of ambitious policies over the last two decades in efforts to mitigate anthropogenic
climate change which overlap with the objectives of this project. One particularly significant piece of legislation
was AB 32 (Global Warming Solutions Act of 2006)from which many current state programs find their genesis—
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including California's Carbon Cap &Trade Program.AB 32 specifically directs the California Air Resources Board
(CARB)to oversee that statewide GHG emissions be reduced to 1990 levels by 2020.'CARB subsequently
established its Carbon Cap &Trade program in 2008 for which it then set mandatory GHG reporting
requirements for electricity importers(among other emissions sources).
In addition to CARB's mandatory GHG reporting requirements,the District reports its generation sources (and
their carbon intensities) annually to the CEC in response to its Renewable Portfolio Standard (RPS)targets
established in SB 1078 (2002), and expanded by the more recent SB 100. SB 100 mandates that renewable and
"zero-carbon" resources supply 100%of electric retail sales to end-use customers by 2045 (with 60% being
renewable and 40% "zero-carbon"). It also establishes several interim targets along the way in 2035 (60%/30%
respectively), and 2040 (60%/35% respectively).
The California RPS and CARB mandatory GHG reporting requirements are specifically referenced here as they
specifically quantify emissions (Tons of CO2e) for TDPUD's electricity procurements in a public capacity.There
exists a fundamental difference between the objectives underlying the engineering assumptions and reporting
standards established by these two statewide programs and those applied in this GHG inventory. Namely, many
of the assumed emissions intensities for generation sources in the RPS and CARB reporting standards are driven
more-so by political discourse than engineering analysis. An example of this can be found in the difference
between carbon intensities reported for"small-hydro" and "large hydro" in the RPS reporting standard (with
small hydro assumed to have zero emissions and large hydro treated as "unspecified"). Furthermore,the
division between small and large-hydro sources is based on generator size'and not on any material difference in
how small or large-hydro generator sources operate.
In this GHG inventory, staff applied a physical first-principals focused assessment of GHG emission intensities for
each generation technology in TDPUD's portfolio. Staff approached each source objectively on the engineering
behind its electricity-production processes and plant lifecycle.This approach was selected to be consistent with
the strategic initiative's objective of achieving meaningful (e.g. tangible and empirically verifiable) progress
towards GHG mitigation. Furthermore, such and approach is necessary to meet the TDPUD's objective of
managing the District in an environmentally sound manner, and ultimately reach its goal of Environmental
Stewardship (Creating a sustainable resilient environment for all our communities).
1.2 Objectives for Proposed Greenhouse Gas Inventory
Consistent with the mission and goals established in the 2021 TDPUD strategic plan, A GHG Inventory was
implemented in 2023 to account for GHG emissions, in which TDPUD was participant, occurring in calendar year
2022.The updated GHG inventory achieves the following objectives for TDPUD:
■ It updates the District's GHG Inventory to reflect current emission levels and provides critical insight into
how TDPUD will make meaningful, cost effective, progress towards greenhouse gas reduction through
energy purchases, conservation, and day-to-day operations.
■ This study does so by generating a detailed understanding of District GHG emission sources and their
magnitudes.
■ This inventory will inform specific GHG mitigation projects,their estimated costs, and potential GHG
impacts if executed.
1 Note that This goal was achieved ahead of its targeted date(in 2016)and SB 32 was then passed which expanded the
initial emission reduction targets to 40%below 1990 levels by 2030.
'With the line of demarcation between the two being 30 MW.
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The inventory compliments other local GHG inventories such that they collectively assess regional GHG
emissions and potential mitigation strategies.
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2 Approach for GHG Inventory
The 2022 GHG Inventory followed the protocols defined under the General Reporting Protocol Version 3
(GRPv3) and incorporated the additional requirements and reporting guidance provided by the Electric Power
Sector Protocol (EPSP) and the Water Energy Nexus Registry Protocol (WENRP).
2.1 General Inventory Methodologies
In a general sense, all GHG inventories process along the following process:
■ Determine the organizational/inventory study boundary and scope—Arguably the most difficult and
most important step in performing GHG inventory as this defines both which emission sources are
considered as well as their attribution.
■ Identify emission sources and their scopes—Emission sources can be direct or indirect and are
organized into several "scopes"which define varying levels of attribution or agency for which the
organization is responsible over the emission generating activities.
■ Measure and quantify identified emissions—Once emissions are identified and scoped, data must be
collected to quantify the magnitude of GHG gasses being emitted using an appropriate level of rigor.
GHG gases are normalized into units of Carbon Dioxide Equivalent (CO2e).
■ Report findings—Findings are compiled into a final report which summarizes the overall organizational
footprint while then providing additional details consistent with the organization's objectives for the
inventory. Results are also compiled into a standard reporting format for upload into CRIS for public
reporting of GHG emissions.
In this section a general methodology is outlined for the 2022 GHG Inventory for Truckee Donner Public Utility
District.
2.1.1 Defining Boundaries and Scope
It must be recognized that anthropogenic GHG emissions rarely have a single attributable source. For example,
electricity is demanded by a community of consumers, sourced and distributed by local utility companies, and
generated by electric generators which can be located well outside of the community using it. Multiple actors
therefore have agency over the activities leading to GHG emissions resulting from the generation, distribution,
and consumption of electricity.
Inventory boundaries are used to help differentiate actors, agency, and scope for reported GHG emissions.The
inventory specifically defines an organizational boundary(delineates actors and agency ascribed to emissions
sources) and a reporting boundary(the scope of emissions within an organizational boundary considered within
the inventory).The final inventory boundary results in the intersection between the organizational and reporting
boundaries.
Within the boundaries, emissions sources are further classified into one of three scopes.These scopes create an
accounting framework which facilitates specific attribution of anthropogenic emissions and,when correctly
applied, eliminates the double-counting of emissions across multiple actors.
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2.1.2 Defining an Organizational Boundary for the Inventory
The organizational boundary defines the degree of ownership or control an organization exercises over specific
GHG emission activities and are categorized by the GRPv3 into one of three methods3: 1) Operational control, 2)
Financial Control, and 3) Equity Share.
This study defines the organizational boundary using an Equity Share Perspective for the District.This
corresponds to the GRP Option 1 defined in the EPSP.The equity share perspective provides an accounting of
activities wholly and partially owned by the district—with emissions being accounted according to the
organization's ownership share.This was chosen to report a full and transparent accounting of the District's
local (e.g. regional) operational footprint as well as the GHG emissions resulting from operations for which the
District has ownership equity but no direct operational control. Inventory components for which the District has
100%direct operational control include:
■ Operations and Maintenance (O&M)for the District's electric Transmission & Distribution (T&D) System
■ O&M for the District's water pumping,treatment, and distribution infrastructure
■ Headquarter building O&M
■ Energy resources consumed by District stationary facilities (and mobile equipment)
Each of the above activities were included in the District's original 2008 baseline and 2012 inventory studies
which took an operational control perspective when defining the organizational boundary.As previously noted,
the District expanded the boundary in the 2022 inventory so as to provide additional transparency with respect
to GHG emissions from TDPUD's interests.The expanded boundary also provides the District with additional
opportunities to identify, quantify, and mitigate GHG emissions connected to its interests.The additional GHG
emissions sources from which the District has equity interest include:
■ Energy resource consumption, O&M, and embedded product emissions from several electric generation
facilities which include: Horse Butte Wind Farm (26%Share),Veyo Heat Recovery Project (23%Share),
and Nebo Power Station (3%Share)
■ Surface water rights to Donner Lake,Truckee River, and (6) local springs
The reporting boundary for the 2022 inventory included all emissions sources within the organizational
boundary,with specific emphasis (rigor) applied to those emissions occurring within the Truckee-Tahoe
geographic region.
2.2 GHG Emission Sources and Inventory Scoping
The GRPv3 establishes a comprehensive accounting framework for categorizing direct and indirect
anthropogenic emissions. GHG emissions are classified as:
Scope 1 covers all anthropogenic GHG emissions directly emitted by an organization's
activities/operations. Such emissions include stationary combustion, mobile combustion, physical and
chemical processes, and fugitive sources. For power generation facilities this includes all combustion
emissions associated with the generation of electricity(regardless of who uses the electricity).
Scope 2 includes all anthropogenic GHG emissions indirectly associated with an organization through the
purchase of consumed energy (electricity,steam, district heating or cooling, etc.). Note that the EPSP
requires line losses across Transmission & Distribution systems within the organizations boundary
associated with the organization's electric power consumption be reported under Scope 2.
3 See pg. B-1 of the GRPv3 for full definitions of each.
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Scope 3 emissions cover remaining indirect anthropogenic emissions which fall outside of either Scopes
1 or 2. Examples include employee commutes, GHG emissions associated with purchased products,
indirect emissions from customer purchased/consumed electricity, etc.
In the following sections each scope is discussed in detail and a short list of emission sources is identified for the
District. It is important to note that emissions can only be meaningfully aggregated across separate
organizations within a particular scope.
2.2.1 Scope 1 Emission Sources: Direct Anthropogenic
Scope 1 emissions are directly generated from activities and processes within an organization's boundary.The
GRPv3 defines several different categories within which scope 1 emissions are reported.The EPSP and WENRP
then provide additional specificity for electricity providers and water management organizations.The expected
Scope 1 emission sources which will be considered in the 2022 Inventory are listed in Table 2-1 within each
GRPv3 category.These sources may be expanded during the inventory pending additional details regarding
organization processes.
It should also be noted that while TDPUD is a water utility, its operations do not include any Scope 1 or Scope 2
emissions sources called out in the WENRP—namely biogenic CO2 and CH4 from man-made reservoirs4 or
process N20 from wastewater discharge.Therefore, all of the District's Water Utility emissions are covered
under the GRPv3.
4 The WENRP specifies that"emissions associated with natural lakes converted to reservoirs without inducing significant
changes to watersurface area should not be considered"(Pg. 25 WENRP). Donner Lake is a natural lake with limited surface
area impact due to its dam.TDPUD only has rights to [980 acre-feet].
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Table 2-1 List of Emissions Sources Included under Scope 1
Combustion of fossil fuels in stationary equipment. Common examples include space heating
equipment such as boilers and furnaces, though this can include incinerators, process
equipment, stationary generators, etc.The EPSP expands this to include emissions from the
Stationary production of electricity at facilities owned or controlled by the organization.
Combustion GRPv3 Sources EPSP Sources WENRP Sources
Emissions ■ Backup & Emergency Generators ■ Nebo natural gas
■ District Headquarters Radiant Heaters combustion for power None
■ District Headquarters Boilers/Furnaces
generation
Combustion of fossil fuels occurring in non-stationary equipment such as transportation
vehicles and heavy machinery. Note that mobile/portable generators are reported here unless
the electricity is delivered to the grid in which case such emissions are reported with other
Mobile electric generation under stationary sources.
Combustion GRPv3 Sources EPSP Sources WENRP Sources
Emissions ■ Electric Utility fleet vehicles
■ Water Utility fleet vehicles
None None
■ Heavy equipment(including snow cat)
■ Pool vehicles
Intentional or unintentional emissions from production, processing,transportation, or storage
of substances not passed through a stack, chimney,vent, exhaust pipe, etc. Notable examples
include refrigerant leakage in HVAC equipment and SF6 from high voltage equipment
Fugitive GRPv3 Sources EPSP Sources WENRP Sources
Emissions ■ HVAC refrigerant leakage
■ SF6 emissions from high
■ Onsite fuel storage None
voltage equipment.
■ Power Pole Treatments (TBD)
Non fuel-combustion emissions due to a physical or chemical process. Examples include
chemical manufacturing processes, acid gas (S02) scrubbers, and gas releases in geothermal
Process facilities.
Emissions GRPv3 Sources EPSP Sources WENRP Sources
None None None
2.2.2 Scope 2 Emissions Sources: Indirect Direct Anthropogenic
Scope 2 emissions result from activities which take place within an organization's boundary, but actually occur
within the boundary of a different organization. Such emissions are reported using location-centric and market-
centric perspectives which give two understandings of an organization's GHG footprint.
The location-centric approach accounts for geographically proximate grid resources to estimate the
GHG content in regionally proximate electricity generation.This ignores power purchase contracts and
focusses on "cleanliness" of regional/local generation.This helps provide insight on the local/regional
impacts of energy conservation.
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The market-centric perspective accounts for an organization's energy purchasing decisions. It allows an
organization to understand the impact that their energy supply(e.g. financial and contracting) decisions
have on their GHG footprint.
In some cases the two approaches may be identical,while for other organizations they can be quite different.
For TDPUD,these two generate different results as all of its electricity is sourced contractually from outside of
the region and across NV Energy transmission infrastructure.Therefore,TDPUD's location-centric emissions
factor will be closely aligned with NV Energy's fuel mix while its market-centric emissions factor will reflect its
resource procurement portfolio. As previously discussed,the Equity Share Perspective was selected to define the
organizational boundary for this study. Consistent with this boundary,the inventory reports GHG Scope 2
emissions using a market-centric perspective to account for the impact of TDPUD's investments in power
purchases.'Specific Scope 2 emissions which this study quantifies are listed in Table 2-2.
Table 2-2 List of Anticipated Scope 2 Emissions Covered by Inventory
A simple example of Scope 2 emissions are those associated with an organization's electricity
consumption. Electricity consumed by an organization must be generated elsewhere, and
generally by a separate organization. While the emissions occur directly within the generating
facility's boundary,they were indirectly generated by the consumer. They are therefore
Indirect reported under Scope 2 for the consumer and Scope 1 for the generator.6
Emissions GRPv3 Sources EPSP Sources WENRP Sources
(Energy) ■ Electricity consumed by District HQ ■ T&D Losses from self-
facility consumed electricity
■ Electricity consumed by well houses ■ SF6 emissions from None
■ Electricity consumed by electric transmission outside of
infrastructure District boundary.
Similar to what was noted under Scope 1,the TDPUD Water Utility does not manage any water-specific
emissions sources which result in reportable Scope 2 emissions.
2.2.3 Scope 3: Indirect Emissions Outside of Organization Value Chain
The final category of reportable emissions captures all remaining indirect emissions outside of consumed
energy. This category is clearly broad and provides an organization the opportunity to capture/report emissions
both upstream and downstream within its value chain. Information about Scope 3 emissions is provided below,
but in recognition of the limited time available during the workshop,these emissions were intentionally left out
the current presentation.A full treatment however will be provided in the final Inventory report.
Given the broad nature of potential Scope 3 emissions sources,the extent and rigor with which they are
reported will necessarily be limited by the resources and strategic objectives of the organization performing the
inventory. Specific Scope 3 emissions which this study explores are listed in Table 2-3.
6 It was also considered that,outside of the Stampede hydro-electric generator,the closest generation facilities to Truckee
are not geographically located close enough to the town of Truckee to materially impact TDPUD's local territory with GHG
emissions beyond their contributions to global anthropogenic climate change.
6 This is slightly modified for vertically integrated utilities and any organizations which consume power that is self-produced
since such emissions are reported as direct(Scope 1).
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Table 2-3 List of Anticipated Scope 3 Emissions Covered by Inventory
GHG accounting for scope 3 must balance an emission's relevance to the organization,
comprehensive reporting within the boundary, consistency&transparency in methodology,
and finally the accuracy(or rigor)with which emissions are quantified.
Indirect GRPv3 Sources EPSP Sources WENRP Sources
Emissions
(Other) ■ Electricity delivered to
■ Fuel combustion from employee customers ■ Waste-Water
commuting ■ T&D Losses from electricity treatment
delivered to customers
As noted for Scope 2, Scope 3 emissions sources all fall outside of the District's organizational boundary.
However,they are indirectly linked to District activities due to purchasing decisions, policy decisions, or through
the use of District products (e.g. electricity and water).
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