**Climate Leaders Greenhouse Gas Inventory Protocol Optional Module
Guidance:**

**[Using Offsets to Help Climate Leaders Achieve Their GHG Reduction
Goals]{.underline}**

***Appendix B: Climate Leaders Sample Request for Proposals for Partners
Purchasing GHG offsets***

*Climate Leaders is providing this sample Request for Proposals (RFP) to
Partners that wish to purchase credible greenhouse gas (GHG) offsets for
use towards achieving their Climate Leaders GHG reduction goal. Partners
may add information as needed.*

I.  Introduction

The purpose of this request for proposals (RFP) is to receive
quotes/offers from prospective suppliers of greenhouse gas (GHG) Offsets
(Offsets). \[Company Name\] seeks proposals to purchase GHG offsets to
offset its GHG emissions from its \[U.S./global\] operations for the
year 20\_\_. \[Company Name\] is also soliciting proposals for
procurement of offsets for future years' emissions.

\[Company Name\] has been a Partner in the U.S. Environmental Protection
Agency (EPA)'s Climate Leaders program since 20\_\_. Climate Leaders is
an EPA industry-government partnership that works with companies to
develop comprehensive climate change strategies. Partner companies
commit to reducing their impact on the global environment by setting
aggressive greenhouse gas reduction goals and annually reporting their
progress to EPA.

\[Company Name\] seeks proposals that will allow \[Company Name\] to use
and retire the offsets as a part of \[Company Name\]'s Climate Leaders
commitment to \[reduce its GHG emissions by \[XX\]% from \[base year\]
to \[goal year\] or to be "carbon neutral" from years \[20\_\_\] to
\[20\_\_\]\]. As such, \[Company Name\] requires that projects meet EPA
guidance, protocols and accounting methodologies. \[Company Name\]
requires that all projects be surplus to any federal, state, and local
regulation and that the project can demonstrate additionality, as well
as select and set a baseline, based on a performance standard approach.
Additional information on EPA guidelines is provided in Section IV of
this RFP.

There is no minimum offset tonnage requirement for proposals made in
response to this RFP. \[Company Name\]'s total purchase volume is
dependent upon responses to this RFP. Final decisions on the number of
accepted proposals and total volume of offsets purchased as a result of
this RFP are at the sole discretion of \[Company Name\].

II. General Terms and Information (to be provided by Partner)

III. Response Protocol and Requirements (to be provided by Partner)

IV. Evaluation

    a.  General offset principles

\[Company Name\] will balance the strengths of each of the proposals to
develop a portfolio that reflects the company's goals of environmental
stewardship. In particular, \[Company Name\] will consider projects that
meet four key accounting principles:

-   ***Real:*** The quantified GHG reductions must represent actual
    emission reductions that have already occurred.

-   ***Additional:*** The GHG reductions must be surplus to regulation
    and beyond what would have happened in the absence of the project or
    in a business-as-usual scenario based on a performance standard
    methodology.

-   ***Permanent:*** The GHG reductions must be permanent or have
    guarantees to ensure that any losses are replaced in the future.

-   ***Verifiable:*** The GHG reductions must result from projects whose
    performance can be readily and accurately quantified, monitored and
    verified.

    a.  Fundamentals of the Climate Leaders Performance Standard
        Approach

*\[Company Name\] expects that all project proposals conform to the
performance standard approach in order for the projects to be eligible
for use towards meeting \[Company Name\]'s Climate Leaders goal.*

There are several key considerations to take into account when including
specific offset projects in the Climate Leaders program. Project
activities must be surplus to regulation to be eligible as offsets. To
demonstrate additionality, offset projects are required to achieve a
level of performance with respect to emission reductions and/or removals
that is significantly better than business-as-usual. Business-as-usual
is determined from similar, recently undertaken or planned practices,
activities or facilities in the same geographic region. This level of
"performance" may be defined as an emissions rate, a technology standard
or a practice standard. Data used in setting the performance standard is
primarily collected from publicly available historic data (although
planned or projected activities may be used in certain cases as well).
The performance standard approach minimizes the risk of accepting a
project that is not additional or rejecting a project that is
additional. A performance standard approach also reduces the complexity,
cost, and subjectivity of constructing individual project-specific
reviews.

b.  Proposal Guidelines

*\[Company Name\] expects that each proposal conform to the following
areas in order for the reductions to be eligible for use towards meeting
\[Company Name\]'s Climate Leaders goal.*

-   ***Methodology:*** \[Company Name\] has partnered with U.S. EPA's
    Climate Leaders program and requires that the calculation of project
    performance be based on Climate Leaders Offset Project
    Methodologies, which provide detailed guidance for specific project
    types. Climate Leaders Offset Project Methodologies currently
    include landfill methane collection and combustion, manure
    management, captured methane end use, transit bus systems,
    industrial boilers, commercial boilers, and
    reforestation/afforestation projects.[^1]

-   ***Program-specific guidance:*** To ensure that GHG reductions from
    all offset projects meet the four key accounting principles outlined
    above (real, additional, permanent, and verifiable), proposals are
    required to comply with EPA guidance covering project geographic
    scope, start date, regulatory eligibility, additionality, baseline
    determination, data set, reduction quantifications, leakage
    potential, permanence, and monitoring.[^2]

-   ***Double-Counting:*** Procedures should be in place to prevent
    double-counting of emission reductions, including a clear and
    well-documented establishment of ownership. Offsets should be
    permanently retired on a comprehensive and transparent registry
    system.

-   ***Standards:*** If a publicly available standard is used in
    verifying the emissions reductions, please specify which one(s).

-   The cost of verification and certification will be borne by the
    respondent.

-   Additional benefits, including but not limited to economic
    development, cultural and gender effects, sustainability, technology
    transfer, public participation, and capacity building should be
    described.

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-   Additional value-added services available to \[Company Name\] by
    provider should be described.

V.  Selection Process

-   The primary basis for the selection decision will be made based on
    an analysis of bidder's quality of offerings, capabilities and
    pricing.

-   Bidders must provide competitive pricing that is clearly defined and
    detailed. \[Company Name\] expects bidders to identify opportunities
    to reduce the cost of purchasing offsets.

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-   Please indicate any additional discounts for volume and/or contract
    periods that are available.

-   Please specify any alternative or flexible pricing structures that
    you offer. For instance, please describe any available pricing
    options were \[Company Name\] to make a one-time up-front payment
    for Offsets to cover current and future GHG emissions.

    a.  Deadlines

> *\[To be added by Partner; note that a Partner may request that EPA
> review this information when the Partner chooses to invest in the
> project and that EPA needs at least two months to review offsets
> documentation prior to announcement of goal achievement\]*

VI. Additional Details

    a.  Table of Emissions (metric tons CO~2~e) by scope

+-----------------+-----------------+-----------------+-----------------+
| **Reporting     | **Core Direct** | **Core          | **Optional**    |
| Year**          |                 | Indirect**      |                 |
|                 | **(Scope 1)**   |                 | **(Scope 3)**   |
|                 |                 | **(Scope 2)**   |                 |
|                 |                 |                 | ***\[specify    |
|                 |                 |                 | type, e.g.      |
|                 |                 |                 | business        |
|                 |                 |                 | travel\]***     |
+-----------------+-----------------+-----------------+-----------------+
| **20\_\_**      |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
| **20\_\_**      |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+

b.  Requirements and Preferences

Please refer to
<http://epa.gov/climateleaders/resources/optional-module.html> to
download detailed accounting methodologies and program-specific
guidance.

c.  Length of Contract

*\[To be added by Partner\]*

[^1]: See <http://epa.gov/climateleaders/resources/optional-module.html>
    to download detailed accounting methodologies.

[^2]: See <http://epa.gov/climateleaders/resources/optional-module.html>
    to download offset program overview document.