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Federal Greenhouse Gas Accounting and Reporting Guidance Council on Environmental Quality January 17, 2016

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Federal Greenhouse Gas Accounting and Reporting Guidance Council on Environmental Quality January 17, 2016 Federal Greenhouse Gas Accounting and Reporting Guidance Council on Environmental Quality January 17, 2016 i Contents 1.0 Introduction ......................................................................................................................... 1 1.1. Purpose of This Guidance ............................................................................................... 2 1.2. Greenhouse Gas Accounting and Reporting Under Executive Order 13693 ................. 2 1.2.1. Carbon Dioxide Equivalent Applied to Greenhouse Gases .......................................... 3 1.2.2. Federal Reporting Requirements .................................................................................. 4 1.2.3. Distinguishing Between GHG Reporting and Reduction ............................................. 5 1.2.4. Opportunities, Limitations, and Exemptions under Executive Order 13693 ................ 5 1.2.5. Federal Greenhouse Gas Accounting and Reporting Workgroup ................................ 6 1.2.6. Electronic Greenhouse Gas Accounting and Reporting Capability (Annual Greenhouse Gas Data Report Workbook) .................................................................................................. 6 1.2.7. Relationship of the Guidance to Other Greenhouse Gas Reporting Requirements and Protocols ................................................................................................................................. 7 1.2.8. The Public Sector Greenhouse Gas Accounting and Reporting Protocol ..................... 8 2.0 Setting Organizational and Operational Accounting Boundaries ....................................... 8 2.1. Organizational Boundaries ................................................................................................... 9 2.1.1. Real Property ............................................................................................................... 10 2.1.2. Purchased Fuel ............................................................................................................ 13 2.1.3. All Other Activities ..................................................................................................... 15 2.2. Operational Boundaries: Scopes ................................................................................... 15 2.2.1. Scope 1 ........................................................................................................................ 16 2.2.2. Scope 2 ........................................................................................................................ 17 2.2.3. Scope 3 ........................................................................................................................ 18 2.3. de minimis ..................................................................................................................... 20 3.0 Sequestration and Emissions from Land Use, Agriculture, and Biogenic Sources .......... 21 3.1. Biofuel and Biomass Combustion ................................................................................ 21 3.2. Voluntary Land Use and Agricultural Emissions Reporting Categories ...................... 22 3.3. Reporting: Net Carbon Stock Changes on Forest Land ................................................ 23 4.0 Renewable Energy and Carbon Offsets ............................................................................ 25 4.0.1. Reporting On-Site versus Off-Site Renewable Energy Use ....................................... 26 4.0.2. Retention of Renewable Energy Certificates .............................................................. 27 4.0.3. Purchase of Energy from Biomass Combustion ......................................................... 27 4.0.4. Purchase of Energy from Conversion of Landfill Gas ................................................ 28 4.0.5. Energy from Municipal Solid Waste Combustion ...................................................... 28 ii 4.1. Agency-Owned On-Site Renewable Energy ................................................................ 28 4.1.1. Consumption of Renewable Electricity Generated On Site ........................................ 28 4.1.2. On-Site Renewable Energy Systems That Don’t Generate Electricity ....................... 29 4.1.3. Agency-Owned Renewable Energy Generation Where the Agency Does Not Own Renewable Energy Certificates but Does Use Energy .......................................................... 30 4.2. Renewable Energy Purchases and Use of Renewable Energy Certificates to Meet Greenhouse Gas Reduction Targets .......................................................................................... 30 4.3. Third-Party Operated Renewable Energy Generation on Agency Land ...................... 32 4.3.1. Third-Party Operated Renewable Energy Generation Where the Agency Purchases Energy and/or Renewable Energy Certificates ..................................................................... 32 4.3.3. Third-Party Operated Renewable Energy Generation Where the Agency Does Not Own Renewable Energy Certificates but Does Use Energy .......................................................... 33 4.4. Carbon Offsets .............................................................................................................. 34 5.0 Reporting Greenhouse Gas Emissions .............................................................................. 36 5.1. Reporting Process ......................................................................................................... 36 5.1.1. Annual Date for Reporting .......................................................................................... 36 5.1.2. Electronic Greenhouse Gas Accounting and Reporting Capability (Annual Greenhouse Gas Data Report)................................................................................................................... 36 5.1.3. Reporting Approach .................................................................................................... 38 5.1.4. Other Greenhouse Gas Calculation Tools ................................................................... 39 5.2. Reporting Qualitative Content ...................................................................................... 39 5.3. Quantitative Inventory Data .......................................................................................... 42 5.4. Emission and Conversion Factors ................................................................................. 49 5.5. Base Year and Subsequent Year Inventories ................................................................ 50 5.5.1. Recalculations to Amend or Normalize Baseline ....................................................... 50 6.0 Verification and Validation of Greenhouse Gas Emissions ............................................. 53 6.1. Agency Responsibilities................................................................................................ 53 6.2. Federal Energy Management Program Responsibilities ............................................... 53 Appendix A. Calculating Scope 1 Emissions ............................................................................. A-1 Appendix B. Calculating Scope 2 Emissions .............................................................................. B-1 Appendix C. Calculating Scope 3 Emissions .............................................................................. C-1 Appendix D. Emission and Conversion Factors ......................................................................... D-1 Appendix E. Definitions .............................................................................................................. E-1 iii List of Tables Table 1: Greenhouse Gases, Common Sources, and Global Warming Potential Factors .............. 4 Table 2: Emissions from Agency Property Arrangements ........................................................... 11 Table 3: Building Exclusions Comparison ................................................................................... 13 Table 4: Location- and Market-Based Reporting for Scope 2 ...................................................... 34 Table 5: Summary of Greenhouse Gas Reporting ........................................................................ 36 Table 6: Greenhouse Gas Inventory Qualitative Reporting .......................................................... 40 Table 7: Data Needed for Reporting: Scope 1 Fugitive Emissions .............................................. 43 Table 8: Data Needed for Reporting: Scope 2 Emissions ............................................................. 45 Table 9: Data Needed for Scope 3 Emissions Reporting .............................................................. 48 Table A-1: Stationary Combustion – Electricity, Heating, and Steam Default Data Sources .... A-2 Table A-2: Renewable Fuel/Technology Choices ...................................................................... A-6 Table A-3: Stationary Combustion – Biomass and Biofuel Default Data Sources .................... A-8 Table A-4: Mobile Combustion – Fossil Fuels Default Data Sources...................................... A-10 Table A-5: Mobile Combustion – Fossil Fuels Alternative Data Sources................................ A-14 Table A-6: Mobile Fuel and Vehicle Emission Factors Available in Annual GHG Data Report Workbook ................................................................................................................................. A-15 Table A-7: Mobile Combustion –
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