Opportunities for Carbon Offsets from Composting and Digesting ...

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Opportunities for Carbon Offsets from Composting and Digesting ...

The Main Thing to Remember FromThis Presentation……If you are composting or digestingfood waste anywhere in the U.S.,you may be able to make moneyfrom carbon offsets in California’scap and trade program2


Objectives of the Reserve• Encourage actions to reduce greenhouse gas emissions• Show that carbon offsets can be a useful tool inaddressing climate change• Model an offset program that has environmental integritybut is not burdensome to use• Create value for the North American carbon market• Link the voluntary carbon markets with emergingcompliance markets (CA, WCI, …)• Provide technical resources on offset standards andpolicy6


What makes the Reserve different?Transparency• Unparalleled transparency makes the Reserve unique• Public reports include:– All protocols and associated documents– List of all account-holders– List of all projects and all project documents– List of all issued CRTs for every project– All retired CRTs8


What makes the Reserve different?Performance Standard• Why a performance standard is different– The hard work is upfront– Assess industry practice as a whole, rather than individualproject activities• Less subjective determination to qualify• More certainty in amount of credits• Lower risk for developers and investors• Faster project processing9


What makes the Reserve different?Separation of Roles• Is not affiliated with the State of California• Reserve does not fund or develop projects• Does not take ownership of offsets• Is not an exchange• Is a 501(c)3 not-for-profit organization• Independent third-party verification– Consistent with international standards– Accreditation done by ANSI– Assiduous oversight of verifiers10


Reserve statsCRTs registeredAccount holders 365Projects submitted 400Exchanges12.3 millionCRT futures are traded on:•Chicago Climate Futures Exchange (CCFE)•Green ExchangeRecent prices$7-8 per CRT (from Point Carbon) for CARBapprovedprotocols12


Eligibility Rules1. Location U.S. and its territories2. Project Start Date No more than 6 months prior to project submission*3. Additionality Exceed legal requirementsMeet performance standard4. Regulatory Compliance Compliance with all applicable lawsCrediting Period10 years, renewable one time1313


Landfill Methane Avoidance• The general concept with both protocols is that you areavoiding methane that would have been released from alandfill.• CRTs are intended to reward developer for preventingmethane emissions that would have happened under a―business as usual‖ scenario.– Actions should go beyond regulatory requirements and beyondstandard business practices14


Organic Waste DigestionProjects• Definition: Digestion of one or more eligible organic waste and/oragro-industrial wastewater streams in an operational biogas controlsystem (BCS) that captures and destroys methane gas that wouldotherwise have been emitted to the atmosphere in the absence ofthe project.• Regulatory test is applied separately to each waste stream• Start Date: Date when you begin digesting an eligible feedstock• Performance standard– At least one eligible organic waste stream is digested in the project’sbiogas control system (BCS)15


OWD: Eligible Waste Streams• MSW Food Waste: Non-industrial food waste consisting of uneatenfood, food scraps, spoiled food and food preparation wastes fromhomes, restaurants, kitchens, grocery stores, campuses, cafeterias,or similar institutions• Agro-industrial Wastewater: Organic loaded wastewater fromindustrial or agricultural processing operations that, prior to theproject, was treated in an uncontrolled anaerobic lagoon, pond, ortank at a privately owned treatment facility. Excluded from eligibilityare wastewaters produced at breweries, ethanol plants,pharmaceutical production facilities, and pulp and paper plants.16


OWD: Legal Requirement Test• If there is a legal mandate that the eligible feedstock bediverted from landfill disposal then it is not an eligiblefeedstock– Examples: laws, statutes, regulations, court orders, environmentalmitigation agreements, permitting conditions, or other legally bindingmandates• The mandate could be federal, state, or local17


Composting Projects• Definition: The diversion of one or more eligible wastestreams to an aerobic composting facility where thewaste is composted in a system that complies with BestManagement Practices (BMPs).• Regulatory test is applied separately to each wastestream• Performance standard– Project diverts and composts at least one eligible feedstock18


Composting Projects:Best Management Practices• Time, temperature and turning frequency:– Windrow – at least 55°C for 15 days, at least 5 turnings– ASP - at least 55°C for 3 days• Must mix food waste into active system within 24 hours ofdelivery or cover it with a layer of carbonaceous material(finished compost) and incorporate within 72 hours• Place in a negative aeration building with a biofilter within 24hours19


Composting Projects:Eligible Waste Streams• MSW food waste and non-recyclable food soiled paperwaste are eligible.– Why? Because very little of these waste streams are currentlycomposted.• Exception: Grocery stores– Grocery store waste streams are eligible only if you candocument that they were previously going to a landfill.– Waste from newly opened stores is also eligible.20


Composting Projects:Legal Requirement Test• If there is a legal mandate that the eligible feedstock bediverted from landfill disposal then it is not an eligiblefeedstock– Examples: laws, statutes, regulations, court orders, environmentalmitigation agreements, permitting conditions, or other legally bindingmandates• The mandate could be federal, state, or local• Exception for local mandates– If a local mandate is passed, the project may still be eligible if itstarted no more than six months before or after passage of thelocal mandate.21


Composting Projects:Start Date Rules• Project developer can determine the start date of acomposting project• It can be any time after:– Project is operating– Data is being gathered to document compliance with BMPs• So what does this mean?– If you are currently composting an eligible waste stream, yourproject should be eligible to generate CRTs now.– If you submit your project by June 30, 2011, start date could beas early as June 30, 2008, if you have been gathering thenecessary data.22


Contact Informationinfo@climateactionreserve.org(213) 891-1444www.climateactionreserve.org23

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