11

Forest Accounting Rules Forest Accounting Rules and Guidelines and Guidelines

West Coast Regional Carbon Sequestration West Coast Regional Carbon Sequestration PartnershipPartnership

Kick Off MeetingKick Off Meeting

September 30, 2003September 30, 2003

California Energy CommissionCalifornia Energy Commission

Sacramento, Ca.Sacramento, Ca.Presented by:Presented by:

Department StaffDepartment Staff

California Department of Forestry and Fire ProtectionCalifornia Department of Forestry and Fire Protection

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The predicted impacts of Global Warming of The predicted impacts of Global Warming of

most concern to California include:most concern to California include: larger extreme precipitation events more frequent larger extreme precipitation events more frequent

floodsfloods

rising sea levels salt water intrusionrising sea levels salt water intrusion

warmer winter temps earlier runoffwarmer winter temps earlier runoff

longer dryer summer periods more firelonger dryer summer periods more fire

Warmer temperatures will affect water demand in all sectors Warmer temperatures will affect water demand in all sectors (urban, agriculture, environmental). (urban, agriculture, environmental). A growing population will add to this demand.A growing population will add to this demand.

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The predicted impacts of Global Warming of The predicted impacts of Global Warming of most concern to California include:most concern to California include:

Reduced summer runoff of fresh water Reduced summer runoff of fresh water Increased winter rains intensify flooding Increased winter rains intensify flooding

and landslidesand landslides Reduced coastal fogReduced coastal fog Longer, hotter summers Longer, hotter summers Invasive species out compete natives for Invasive species out compete natives for

critical resourcescritical resources Climate changes increase the number of Climate changes increase the number of

endangered speciesendangered species Pest species become more prominent or Pest species become more prominent or

destructive destructive Longer dry periods will decrease forest Longer dry periods will decrease forest

fuel moisture fuel moisture Fisheries negatively impacted Fisheries negatively impacted Cycles of beach and cliff erosion from Cycles of beach and cliff erosion from

wave damagewave damage

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California Climate Action RegistryCalifornia Climate Action Registry

State was one of the early actors in State was one of the early actors in establishing a Greenhouse Gas establishing a Greenhouse Gas RegistryRegistry

The California Climate Action Registry The California Climate Action Registry first focused on entity wide GHG first focused on entity wide GHG inventories (SB 1771 in 2000, SB 527 in inventories (SB 1771 in 2000, SB 527 in 2001).2001).

Registry amended in 2001 to require Registry amended in 2001 to require industry-specific procedures and protocols industry-specific procedures and protocols for recording forestry emissions and for recording forestry emissions and emission reductions. (SB 812) emission reductions. (SB 812)

In 2002 State Air Resources Board to In 2002 State Air Resources Board to develop protocols for mobile emission develop protocols for mobile emission sources and authority to grant credits.sources and authority to grant credits. (AB (AB 1493)1493)

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California Climate Action RegistryCalifornia Climate Action Registry

Registry componentsRegistry components

Enable the voluntary recording of GHG Enable the voluntary recording of GHG Third-party organizations to certify baseline emissionsThird-party organizations to certify baseline emissionsMaintain a record of GHG baselines and emissions resultsMaintain a record of GHG baselines and emissions resultsAdopt industry-specific reporting metricsAdopt industry-specific reporting metricsEncourage voluntary actions to increase energyEncourage voluntary actions to increase energyefficiency and reduce GHG emissionsefficiency and reduce GHG emissionsRecognize, publicize, and promote participantsRecognize, publicize, and promote participantsRecruit participation from all economic sectors/regionsRecruit participation from all economic sectors/regionsReport to the Governor and Legislature on successes andReport to the Governor and Legislature on successes andchallengeschallenges

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California Climate Action RegistryCalifornia Climate Action Registry

Registry participants will voluntarily submit their GHG Registry participants will voluntarily submit their GHG emissions to the Registry each year for the following emissions to the Registry each year for the following emission source categories:emission source categories:

Direct emissions mobile source combustionDirect emissions mobile source combustion Direct emissions from stationary combustionDirect emissions from stationary combustion Direct process emissionsDirect process emissions Direct fugitive emissionsDirect fugitive emissions Indirect emissions from electricity, steam imports and Indirect emissions from electricity, steam imports and

district heating and coolingdistrict heating and cooling

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California Climate Action RegistryCalifornia Climate Action Registry

Emission Reduction CreditsEmission Reduction Credits

the establishment and trading of the establishment and trading of credits is currently a private credits is currently a private market optionmarket option

AB 1493 provides the State Air AB 1493 provides the State Air Resources Board the authority to Resources Board the authority to establish emission reduction establish emission reduction credits against their future GHG credits against their future GHG standardsstandards

Winrock International 2003

0

50

100

150

200

250

0 20 40Age

Car

bo

n (M

T/h

a)

Tree

Understory

Floor & Debris

Soil

5 Principles5 Principles RelevanceRelevance

CompletenessCompleteness

ConsistencyConsistency

TransparencyTransparency

AccuracyAccuracy

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California Climate Action RegistryCalifornia Climate Action Registry

Forest Carbon Component requirements:Forest Carbon Component requirements:

To adopt procedures and protocols for the reporting and To adopt procedures and protocols for the reporting and certification of greenhouse gas emission reductions certification of greenhouse gas emission reductions resulting from a forestry project.resulting from a forestry project.

CDF has primary responsibility for protocol development.CDF has primary responsibility for protocol development.

must include monitoring, estimating, calculating, reporting, must include monitoring, estimating, calculating, reporting, and certifying of carbon stores and emissions resulting and certifying of carbon stores and emissions resulting from conservation activities.from conservation activities.

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California Climate Action RegistryCalifornia Climate Action Registry

Baseline

CO2 baseline for year 1

Other GHGs for year four

Direct

Stationary Mobile

Process Fugitive

Indirect

Electricity District heating/cooling

Steam Cultural Practices

Thinning, Prescribed Fire, Harvest, Slash disposal, Pest Management,

Reforestation, Fertilization, Conversion

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California’s Forest Carbon RegistryCalifornia’s Forest Carbon Registry

Key conceptsKey concepts Provides for Provides for managedmanaged forests, not just preservation. forests, not just preservation. Requires Additionality: Above Business as Usual. Requires Additionality: Above Business as Usual. Natural Forest – not plantations.Natural Forest – not plantations. Permanence – Requires conservation easement. Permanence – Requires conservation easement. Third party verification.Third party verification. Entity-wide, with optional project-based reportingEntity-wide, with optional project-based reporting

1111

California’s Forest Carbon RegistryCalifornia’s Forest Carbon Registry

Next Steps:Next Steps:

The guidelines must be practical so they will be usedThe guidelines must be practical so they will be used

Develop a legitimate and professionally respected processDevelop a legitimate and professionally respected process

Work with stakeholders and take advantage of their experienceWork with stakeholders and take advantage of their experience

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California Specific EffortsCalifornia Specific Efforts Partnership to Implement SB 812Partnership to Implement SB 812

California Energy CommissionCalifornia Energy Commission California Climate Action RegistryCalifornia Climate Action Registry Ca Dept. of Forestry and Fire Prot.Ca Dept. of Forestry and Fire Prot. Winrock InternationalWinrock International Ca. Resources AgencyCa. Resources Agency

Industry Specific Protocols & GuidelinesIndustry Specific Protocols & Guidelines Climate Action Registry Climate Action Registry Task Group Established under Technical Advisory CommitteeTask Group Established under Technical Advisory Committee Gov. role is to register emissions and emission reductionsGov. role is to register emissions and emission reductions Registration will meet the five principles and the State will stand Registration will meet the five principles and the State will stand

behind the third party certified emissions or emission reductionbehind the third party certified emissions or emission reduction Trading/ Carbon Credits a function of the market.Trading/ Carbon Credits a function of the market.

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Basic Approach Basic Approach

Provide Statewide BaselineProvide Statewide Baseline Relative Values for Policy OverviewRelative Values for Policy Overview

Provide Statewide Supply CurvesProvide Statewide Supply Curves Key in on areas where gains in Sequestration are likely Key in on areas where gains in Sequestration are likely

and prioritize efforts.and prioritize efforts. Case Studies / Demonstration ProjectsCase Studies / Demonstration Projects

Forest Management – Alternate SilvicultureForest Management – Alternate Silviculture

Riparian Zones – Wider Zones/Large Old TreesRiparian Zones – Wider Zones/Large Old Trees Monitoring – Frequency/Expense/AccuracyMonitoring – Frequency/Expense/Accuracy

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California CarbonCalifornia Carbon

Establish High Value Carbon in California that Establish High Value Carbon in California that is available to marketis available to market

Increase Carbon Stocks over TimeIncrease Carbon Stocks over Time Achieve indirect environmental improvementsAchieve indirect environmental improvements Provide incentive for Landowners that Practice Provide incentive for Landowners that Practice

Good Stewardship for total resource values.Good Stewardship for total resource values. Maintain a Viable Timber Industry in Maintain a Viable Timber Industry in

California. (Industry Harvest from 5bil to 2bil California. (Industry Harvest from 5bil to 2bil annual harvest)annual harvest)

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California’s Forest Carbon RegistryCalifornia’s Forest Carbon Registry

Conclusion:Conclusion:

Encourage your efforts on the 1605 (b) Encourage your efforts on the 1605 (b) registry programregistry program

The international community will be buying The international community will be buying and selling carbonand selling carbon

CA to develop a rigorous set of reporting and CA to develop a rigorous set of reporting and registry standardsregistry standards

High quality forest sequestration credits will High quality forest sequestration credits will be a “multiple win”be a “multiple win”

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CHARISMATIC CARBON

Imagine an insert in your airline ticket that says, “Your GHG emissions are being offset by protecting forests and salmon in California”.