# CPP Registry Projects Update

M APX Jul y 23, 20 15 

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## With Registries , Everyone Benefits
• Documenting

value i s feasible , practica l and affordable

• Progress

towa rd goals is real 

## M APX 

# 0 • Value is rea l ; demon strat in g comp l ia n ce isn ' t burdensom e

• Com p liance

reports are robust and require minimal oversight 

# f ADVANCED ENERGY ECONOMY 

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# __ 2Home NORTH AMER I C AN 

### Renewables Registry·

MA 61omass Reg<stry RPSJR E S Compl•ance • Resources • APX N ews About • The North American Renewables Registry Adds Fun ctiona li ty to Support C l ean Powe r Pl an Impl em e ntation May 13 , 2015 APX tnc .• l he l eadlnglntrastrucl ure provider for e nviro n mental and energy ma r xe ts . ls pleased l o announce thai t h e N o rt America n Renewables Re g istry (N ARJ wiD be addin g key features l o support s tal e Implemen t ation e 1T or1 s lo r th e US E P Clean Powe r P l an . Wrt h t h e n ew fe at ures NAR will serve as a viable proto type of what wo believe I s n ecessary for cost·elfectlve markel·base d solutions to Impleme nt t he Clean Power P l an . Last summer. the US Environmerrtal P rolecllo n Agency released lis proposed rule under the Clean Ai r Acllo reduce CO emi ssions f rom exlsllng eteclric generating resources . When the rules become final. t h e EPA will mandate thai stale agencies I mplement policies to meet C02 redudlon targets . APX announces today that h wiP expend hs North American Registry to provide a nexlble range oftun d ionaWy to suppo rt states . Including :

• Ablfily to t rack certificates from ell generation resources • Improved matching of the lrrteracllon of physi cal pcrmr and emissi on allrlbUies • Protocols and proj ed wortcnows to support tracking or EntriJY Etlicitncy Credrts • Reports and emi nion 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 Veri ficatio n of o utput of

CPP Qu al ifi ed C l ean

E n ergy Projects

Retarement Account reports for Compliance filings 4

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## CPP Registry CSG - APX - T C R - AEE pro posed Initi ati ve Front End Verification of output of

CPP Qual ified C lean

Energy Projects

Certificates retired for compliance by Compliance ent1t1es RetirementAccount
,. reports for Compliance

. filings 5



## Issue 1: Registry Administration Model



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" Big tent" collaborative approach -rapi d deployment for good value 

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## 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**~t~** Serv 1 ces Group



### Based on proven success 

### of e xisting 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

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## 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 em iss ion equivalents 

### -shows the C0 2 

### emission reduction value and conversion method and assumptions



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## 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) 

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## 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 

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## 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 

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## Issue 8: How long should Certificates be in circulation before they must be retired? • Important policy question linked to Compliance Reporting Goals

- Existing pract ice varies

- Research required to defi ne parameters that max i mize potential for collaboration

- Must be linked to compliance filing cycl e 

### • Sorting this out will be a primary task of the EE Registry Project 13



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# . Issue 9: What functionality should Registry include to support banking and multi-year reporting periods? • Important policy question linked to Compliance Reporting Goals

- Exist ing practice varies

- Research will be required to define parameters that maximize potent ial for collaboration

- Must be linked to compliance filing cycle 

### • Sorting this out will be a primary task of the EE Registry Project 1 4



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## Issue 10: Seams Issues between Existing Registries • I mport-export protocols among existing Registries provide a robust accounting foundation to address CPP comp l iance issues



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## Issue 11: Seams issues between Mass Based and Rate Based States • Foundation for accountability

- Certificates counted only ONCE • ei t he r for an RP S or EPRS in a Mass Ba sed state or as

avoided EGU generation in a Rate Based state

- Clear eligibil ity 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 o r other issues 

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## 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



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## 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 

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## 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 issu e s identified as uni q ue to CPP compliance , particularly C0 2 

### conversion protocols for interstate power sales



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Contact

• Patricia Sta nton - CSG patric i a.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



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