CPP Registry Projects Update 

M APX 

July 23, 2015 

0 f ADVANCED 

\ 7 ENERGY 

""-' ___ ECONOMY , ____ Cons Setv•

~~ ces Group 

With Registries, Everyone Benefits 

• Documenting 

value is 

feasible, practical and 

affordable 

• Progress 

toward goals 

is real 

M APX 0 

• Value is real; 

demonstrating 

compliance isn't 

burdensome 

• Compliance 

reports are robust 

and require 

minimal oversight 

f ADVANCED 

ENERGY ___ ECONOMY ., __ 

2 
Home 

NORTH AMERIC AN 

Renewables 

Registry· 

MA 61omass Reg<stry RPSJRES Compl•ance • Resources • APX News About • 

The North American Renewables Registry Adds Functionality to 

Support Clean Power Plan Implementation 

May 13, 2015 

APX tnc .• lhe leadlnglntrastruclure provider for environmental and energy marxets. ls pleased lo announce thai the Nort 

American Renewables Registry (NARJ wiD be adding key features lo support stale Implementation e1Tor1s lor the US EP 

Clean Power Plan. Wrth the new features NAR will serve as a viable prototype of what wo believe Is necessary for 

cost·elfectlve markel·based solutions to Implement the Clean Power Plan. 

Last summer. the US Environmerrtal Prolecllon Agency released lis proposed rule under the Clean Air Acllo reduce CO 

emissions from exlsllng eteclric generating resources . When the rules become final. the EPA will mandate thai stale 

agencies Implement policies to meet C02 redudlon targets. APX announces today that h wiP expend hs North American 

Registry to provide a nexlble range of tund ionaWy to support states. Including: 

• Ablfily to track certificates from ell generation resources 

• Improved matching of the lrrteracllon of physical pcrmr and emission allrlbUies 

• Protocols and projed wortcnows to support tracking or EntriJY Etlicitncy Credrts 

• Reports and eminion fadors to support both Mass and Rate based Implementation approaches 

tan du t te 

EE Registry 

TCR- NASEO - CSG - APX Initiative 

w/ TN, GA, PA, Ml, MN, OR 

Front End 

Verification of output of 

CPP Qualified Clean 

Energy Projects 

Retarement Account 

reports for Compliance 

filings 

4 

2 
CPP Registry 

CSG - APX - TCR - AEE proposed Initiative 

Front End 

Verification of output of 

CPP Qualified Clean 

Energy Projects 

Certificates retired for 

compliance by 

Compliance ent1t1es 

Retirement Account 

,. reports for Compliance 

. filings 

5 

Issue 1: Registry Administration Model 

·-

··-

"Big tent" collaborative approach-rapid deployment for good value 

,i,APX 0 f ADVANCED 

ENERGY 

ECONOMY 

------

6 

Cons S....V>Ce.G<oup ~ 

3 
Issue 2: Authority to Qualify Projects 

• States retain authority to define which types of 

Projects/Generators are qualified to produce 

avoided MWh that will be accepted in compliance 

demonstration 

• If state partners or EPA requests, a TCR 

standards process could be used to establish a 

"TCR qualified" rating that could adopt by 

reference by states or F I P 

. APX 0 0 AOVANCEO 

ENERGY 

ECONOMY 

Issue 3: Verification of MWh Values 

7 

Cons Serv1~t~ ces Group 

Based on proven success of existing REG registries 

• All MWh values will be verified by an independent 

third party such as: 

-Government agency 

-Third Party Verification Vendor certified by a 

state and/or TCR 

-Third Party Verification Partner (such as LBNL) 

• TCR standards process could establish minimum 

acceptable verification protocols & standards 

8 

. APX 0 AOVANCEO 

ENERGY 

ECONOMY Cons Setv1ces ~~ Group 

4 
Issue 4: Credit Denomination & Units 

• Each Certificate: 

-could represent 1 MWh of avoided EGU 

generation 

-line losses accounted for in same manner as 

for power purchases 

• certificates from low emission sources will be 

adjusted to zero emission equivalents 

-shows the C02 emission reduction value and 

conversion method and assumptions 

. APX 0 ADVANCED 

ENERGY 

ECONOMY 

Issue 5: Timing of Certificate Creation 

9 

Based on proven success of existing REG registries 

• While projected MWh can be "logged" into a 

registry when EM& V is complete, existing 

registries only mint Certificates in the year of 

Avoided Generation 

• Futures contracts can be based on "logged" 

information - buyer and seller sort out who 

assumes risk (that value changes before year of 

avoided generation) 

IIAPX 0 f' ADVANCED 

( F I ENERGY ...;.,_/ ECONOMY 

10 

Cons Serv1<es ~t~ Group 

5 
Issue 6: How frequently should 

Certificates be minted? 

• Existing practice varies, monthly to quarterly; 

arguably for CPP Compliance Certificates, annual 

could be sufficient 

• To facilitate collaboration with existing registries, 

time period selected for the CPP Registry should 

be no shorter than the shortest existing time 

period 

• Sorting this out will be a primary task of the EE 

Registry Project 11 

MAPX 0 (l) AOVANCEO 

ENERGY 

.,.._ ...... ECONOMY .,. __ _ Cons Serv•cc-s ~~ Group 

Issue 7: What is the appropriate data 

verification period? 

• Important policy question linked to Compliance 

Reporting Goals 

- Existing practice varies, monthly to quarterly 

- Research required to define parameters that maximize 

potential for collaboration 

- Must be linked to compliance filing cycle 

- Must be adequate to assure data is highly reliable 

• Sorting this out will be a primary task of the EE 

Registry Project 

12 

.APX 0 {j) ADVANCED 

ENERGY .,. __ ECONOMY _. __ Cons serv.ces ~~ Croup 

6 
Issue 8: How long should Certificates be 

in circulation before they must be retired? 

• Important policy question linked to Compliance 

Reporting Goals 

- Existing practice varies 

- Research required to define parameters that maximize 

potential for collaboration 

- Must be linked to compliance filing cycle 

• Sorting this out will be a primary task of the EE 

Registry Project 

13 

. APX 0 0 ADVANCED 

ENERGY 

_ _ ..._ECONOMY p _ _ _.., Cons serv•<es ~~ Group 

. 

Issue 9: What functionality should 

Registry include to support banking and 

multi-year reporting periods? 

• Important policy question linked to Compliance 

Reporting Goals 

- Existing practice varies 

- Research will be required to define parameters that 

maximize potential for collaboration 

- Must be linked to compliance filing cycle 

• Sorting this out will be a primary task of the EE 

Registry Project 14 

. APX 0 ADVANCED 

ENERGY 

ECONOMY Cons 5.ef'v1(es ~~ Croup 

7 
Issue 10: Seams Issues between Existing 

Registries 

• Import-export protocols among existing 

Registries provide a robust accounting 

foundation to address CPP compliance issues 

MAPX 0 f ADVANCED 

,. J ENERGY __.../ _ ECONOMY .. ___ ......, 

·:· .. ; !r: " ' .~·· ;;: • 

Issue 11: Seams issues between Mass 

Based and Rate Based States 

• Foundation for accountability 

- Certificates counted only ONCE 

• either for an RPS or EPRS in a Mass Based state or as 

avoided EGU generation in a Rate Based state 

- Clear eligibility rules set by each state 

- Full Disclosure & Transparency 

15 

• If state partners or EPA request, TCR standards 

process could be used to develop guidance for 

addressing preexisting interstate contracts or 

other issues 

MAPX 0 f ADVANCED 

ENERGY ___ ECONOMY ., __ 

16 

8 
Issue 12: Transparency of EE EM&V 

• EE Project registration may require standard 

disclosure of proposed EM&V methods as 

required by the qualifying state(s) or EPA 

• If state partners or EPA request, TCR standards 

process could be used to establish ''TCR 

recognized" EM& V methods disclosure tools that 

any state or EPA could adopt by reference 

. APX 0 (l) ADVANCED 

ENERGY 

... _ ECONOMY ...... ., ____ __ 

17 

Cons $erv1Ces ~~ Group 

·: .. 

Issue 13: Mitigating Risk of Two Entities 

Reporting the Same Savings 

• Large ESCo projects have reporting capability to 

separate privately funded from ratepayer subsidized; 

team will work with LBNL to verify numbers 

• If state partners or EPA request, TCR standards 

process could be used to establish "TCR recognized 

EM& V methods for privately funded projects to 

demonstrate unique ownership and independence 

from utility ratepayer funded programs 

IIAPX 0 (l) ADVANCED 

ENERGY 

ECONOMY 

18 

Cons Serv1u~s ~~ Group 

9 
Issue 14: Matching RECs to Interstate 

Power Transactions by Tagging 

• Import-export protocols among some existing 

Renewables Registries provide this functionality 

to assure RECs only flow with power sales 

• If state partners or EPA request, TCR standards 

process could be used to establish additional 

protocols to address issues identified as unique 

to CPP compliance, particularly C02 conversion 

protocols for interstate power sales 

. APX 0 0 ADVANCED 

ENERGY ___ ECONOMY 

, ____ 

Contact 

• Patricia Stanton - CSG patricia.stanton@csgm.com 

• Matt Stanberry - Advanced Energy Economy mstanberry@aee.net 

• Lars Kvale- APX lkvale@apx.com 

• David Rosenheim - The Climate Registry 

drosenheim@theclimateregistrv.org 

. APX 0 ADVANCED 

ENERGY ____ ECONOMY "" __ _ 

19 

Cons Serv1~~ ces Group 

20 

Cons S<!rvo<esCroup ~~ 

10