• ..\..\..\..\..\Projects\Asset Mng BalanceSheet\Documents andSpreadsheets\Presentations\Golden Jan2009\Final Flash\FlashSWF\BarksdaleAS3_mc.exe
Decision Making Support ToolProvides Full Accounting of AllBuilt and Natural ResourcesForecasts Impact ofResource Leveraging Efforts
3 Big Energy Issues1. Large Integrated Long Term Objectives requireLarge Integrated Long Term Solutions2. Cultural/conservation wins are early andobvious but limited and mask the long termproblems3. Many operational, capital and technical solutionsets can deliver the objectives.4. New tools are required to deliver easy tounderstand normalized financial facts fordecision making.
Sustainable Asset Accounting SystemEnables Decision Makers To:• Inventory all Revenues, Expenses, Assets, and Liabilities• Quantify TBL equity using one common unit of measure• Baseline volume and condition of resources• Forecast impacts through ROI and ROA analysis• Track equity changes over time• Visualize output in GIS to support communication
Selected Examples of Inventory,Quantification, and Visualization
Chart of AccountsRevenuesExpensesAssetsLiabilities
RevenuesDefinitionRevenues are defined as income from activitiesthat are ordinary for a particular corporation,company, partnership, or sole-proprietorship.The Pseudo-Revenue Value Account includesmonetized value streams from MissionServices, as well as Ecosystem Services,allowing the valuation and tracking of servicesfor which cash currency is not received.
Revenues• Mission services• Energy sources• Ecosystem services• Transportation• Lease/rent• Social• Other
Ecosystem Services• Ecosystem services are benefits to peopleresulting from ecosystem functions
Technical Approach to the Valuation ofEcosystems Services1. Identify and Categorize Service• Categorized as accepted and promoted by the MillenniumEcosystem Assessment, World Bank, and United Nations• Provisioning services• Regulating & supporting services• Cultural services2. Classify Economic Value• Various approaches – Barbier’s Use and Nonuse3. Valuate• Can apply monetary or non-monetary based valuationmethodologies
Greenhouse Gas SequestrationDeNitrification-DeComposition Model• Computer simulation model of C and N biogeochemistry inagro-ecosystems• Best method of quantifying GHG flux from large, complexsites• Only practical, site-specific method accepted by ClimateExchanges• Superior method of modeling wetlands, distinct land coverclass on Barksdale• Modeling results of GHG flux quantification per land cover,management and climatic conditions (Range over 3 imagedates)
Remote Sensing Land Cover AnalysisTurf & GrassGrasslandNon-forested WetlandCornfield
Full GHG Accounting
Selected Ecosystem Service Revenue StreamsEcosystem ServiceCategorization/Classification Methodology ValueFood ProvisioningProvisioning/DirectUse - ConsumptiveMarket PriceMethodBase provides 30-40 acres on base for gardens for20-25 households.$50- $180/month.Water PurificationCarbon SequestrationRecreational ResourcesRegulating/IndirectUse -NonConsumptiveRegulating/IndirectUse -NonConsumptiveCultural/Direct Use -NonConsumptiveReplacement CostMethodMarket PriceMethodCost range for the engineered treatment of runoff toexisting wetlands.$16.5 to $20/gallon/dayTons sequestered/year x market value on ChicagoClimate Exchange.Market PriceMethod & Benefit Base collects approximately $35K/yr. NRLAMTransfer Method willingness to pay survey up to $2,800,000/yr.Preservation ofArchaeologicalResourcesCultural/NonuseSubstitute CostMethod &Damage CostAvoided MethodSubstitute cost of local museum utility expenses.Damage cost avoided for moving site.
ExpensesDefinitionExpenses are defined as an event in which anasset is used up or a liability is incurred.
Expenses• Energy/fuel costs• Water management costs• Waste management costs• Permit fees and fines• Carbon costs• Land• Environmental insurancecosts• Installation operations• Natural resourceconsumption• Social costs• Other costs• Potential savings
Cost in Dollars and Carbon - EmissionCalculation IPCC1. Generate inventory of energy/fuel sources– Natural Gas, Gasoline, Diesel, etc.2. Use EFs to convert fuel quantities to GHGsemitted– Gallons diesel converted to kg CO 2 , CH 4 , N 2 O, etc.3. Use GWP factors to convert GHG emissions toCO 2 e, then sum4. Evaluate summed CO 2 e against offsets, tradingvalues
Probabilistic Evaluation• Very amenable to probabilistictechniques/CB to account forvariability– $/DNDC model variables– Emission factor/efficiency ranges– Fuel economy (mpg)– Market volatility (carbontrading/currency fluctuations)
Sequestration Potential• East reservation (17,600 acres)sequesters 46,128 MT CO 2 e/yr• CCX ($1.55/MT CO 2 e) = $71,500/yr• ECX ($25/MT CO 2 e) = $1.15M/yrTotal GHG Emissions = 408,337 MTCO2eqCO 2 MT Emission Distribution20.2%0.3%Aviation SortiesVehicle Traffic79.5%Utility Consumption
AssetsAssets are defined as everything of value that isowned by a person or organization.• Current• Fixed• Other
LiabilitiesLiabilities are defined as an obligation of an entity arising frompast transactions or events, the settlement of which may resultin the transfer or use of assets, provision of services or otheryielding of economic benefits in the future.• Current• Long Term
Traditional Cost Benefit AnalysisFocuses on Life Cycle EconomicsAlternative 1 Alternative 2 Alternative 3Economic $$$ $ $$Low Cost Wins WithoutMonetization ofEnvironmental and SocialImpacts
SAAS TBL Analysis Considers MonetizedEconomic, Environmental, and Social ImpactAlternative 1 Alternative 2 Alternative 3Economic $$$ $ $$Low Cost Still Wins WITHMonetization ofEnvironmental and SocialImpactsEnvironmental $ $$$ $$Social $$$ $$ $Total $$$$$$$ $$$$$$ $$$$$
Sustainable Asset Accounting SystemsComprehensive Decision Support Tool• SAAS supports concerted asset management with TripleBottom Line analysis• SAAS incorporates carbon budget impacts into decisionmakingaccurately accounting for the change in revenueand expense streams which will result from effectivelydesigned projects• SAAS provides a common platform, comparative analysistool for individual facilities and portfolios through whichthe ROA and ROI can be quantified and compared acrossinstallations, regions, and major commands