Carbon Footprint and the New Facilities Vocabulary Peter O’Konski PE, PMP, LEED AP Director, Facility Policy Office of Management Department of Energy June 2, 20091

Agenda 1.Secretary’s comments and the global warming challenge 2.What constitutes a green house gas 3.Introduction to carbon footprint calculation 4.Impact on facilities management & real estate 5.Conclusions June 2, 20092

1. Secretary’s comments and the global warming challenge June 2, 20093

NY Times June 2, 20094

The Secretary on Global Warming “ We're in the great ship Titanic, the Earth is, and it's going to take a half century to really turn the ship. But that doesn't mean we can't start doing it today, and we must…” Secretary Chu Newsweek 4/11/09 June 2, 20095

Continued… “…I urge everyone to do this: Google the IPCC report. The 100-year trend is unmistakable…” Secretary Chu Newsweek 4/11/09 June 2, 20096

SPM 1a Variations of the Earth’s surface temperature for the past 140 years June 2, 20097

SPM 1b Variations of the Earth’s surface temperature for the past 1,000 years June 2, 20098

Projections – This Century “Could Adapt” “Tipping Points” “No Adaption Strategy” June 2, 20099

Main climate impacts Sea levels rise Higher temperatures - especially on land Hydrological cycle more intense Changes at regional level June 2,

2. What constitutes a green house gas (GHG) June 2,

SPM 3 June 2,

Green House Gases (Counted in a Carbon Footprint) Carbon dioxide, CO 2 Methane, CH 4 Nitrous Oxide, N 2 O Hydrofluorocarbons (HFCs) and Chlorofuorocarbons (CFCs) (covers 13 chemicals) Perfluorocarbons, PFCs (covers 7 chemicals) Sulfur Hexafluoride, SF 6 ANSI/ISO/NSF Greenhouse Gases- Part 1: Specification with Guidance at the Organizational Level for Quantification and Reporting of GHG Emissions and Removals Not all GHGs contain carbon June 2,

Not All GHGs are Equal Greenhouse Gas Global Warming Potential Carbon Dioxide, CO Methane, CH 4 21 Nitrous oxide, N 2 O310 HFC 134a1,300 Sulfur hexafluoride23,900 All GHGs Converted to a CO 2 Equivalent June 2,

Example: GHG Calculation Example Calculation- Converting to CO 2 -e GHG Emissions (Metric Tons) Global Warming Potential Metric Tons CO 2 -e Carbon Dioxide 10,0001 Methane ,500 HFC 134a Sulfur hexafluoride , Totals23,234 June 2,

Combustion Emission Factors Process/Fuel Emission Factor Emission Factor Units Coal Combustion Anthracite102.58kg CO 2 /MMBtu Bituminous92.53kg CO 2 /MMBtu Sub-bituminous96.12kg CO 2 /MMBtu Lignite95.47kg CO 2 /MMBtu Natural Gas119.90lbs CO 2 /1000 cf 52.80metric tons CO 2 /Billion Btu Aviation Gasoline18.15lb CO 2 /gallon Diesel (No. 1 and No. 2)22.15lb CO 2 /gallon Gasoline19.36lb CO 2 /gallon Jet Fuel (Kerosene)20.88lb CO 2 /gallon Fuel Oil (No. 5 and 6)25.75lb CO 2 /gallon Propane12.60lb CO 2 /gallon June 2,

3. What is a “Carbon Footprint” calculation? Carbon Footprint has three aliases: “Carbon Inventory” “Green House Gas Inventory” “Climate Change Footprint” June 2,

Carbon Footprint – 3 Scopes June 2, Remember: there are three levels (scopes) to a green house gas/carbon footprint calculation.

Scope 1: Direct Emissions Relatively easy: –Combustion Sources –Site owned vehicles –On site electrical generation –CFC and HFC losses from refrigeration equipment –Sulfur hexafluoride losses from electrical equipment June 2,

Scope 2: Indirect Emissions – Purchased Energy Relatively easy: Emissions from consumption of purchased utilities: –Typically electricity –Could be steam or high temperature hot water –Could be negative (ex: electricity from landfill gas) June 2,

Scope 3: Other Indirect Emissions Can be very difficult: –Transportation of purchased material or goods –Employee business travel –Employee commuting impacts –Outsourced work –Emissions from finished products –Transportation of waste –Vegetation & Trees Scope 3 has various challenges –Boundary issues –Can be a magnitude higher than Scope 1 and 2 –Costly value chain analysis June 2,

Carbon Footprint – 3 Scopes June 2, Carbon footprint calculations must include at least Scope 1 and 2 GHG emissions.

Two Additional Terms of Art: 1. Carbon neutral The “word of the year” in the new Oxford Dictionary –Adj.: “emitting no net carbon dioxide into the atmosphere” Dictionary.com –Adj: “emitting no carbon dioxide into the atmosphere. Also, employing a technique to absorb carbon dioxide so it is not emitted.” June 2,

2. Cap and Trade A regulatory process: –Cap - limits emissions from a designated group, such as power plants, to a certain level –Capped emissions are divided up into individual permits –Trade - businesses buy and sell emission credits within the overall cap June 2,

4. Impact on Facilities Management and Real Estate June 2,

Facilities and Real Estate Recognize that fundamental change is happening –GHG, carbon neutrality, energy conservation are all part of a new facilities vocabulary –GHG and carbon management need to be part of the facilities value-chain decision making Construction and Major Renovation Operations and Maintenance and Repair Disposition June 2, June 2, 2009 The most carbon neutral building is the building you don’t have.

Facilities and Real Estate Potential new E.O. for carbon management –Measure, manage, reduce –Probably based on a scope 1 and 2 analysis I expect each site will be required to know their carbon footprint –70% of which can be a direct result of the building and OSF inventory A phase I&2 carbon footprint at the building level draws heavily from “operating cost” and “sustainability” Can FIMS capture carbon footprint at the real property asset leve l? June 2,

5. Conclusions June 2,

Get familiar with your facilities “carbon footprint” Think carbon footprint reduction as a matter of good business Think about where the source data lies for a phase 1&2 calculation Help to forward lean – we need to be a leader not a follower June 2, Conclusions

Thank you Peter O’Konski PE, PMP, LEED AP Director, Facility Policy Office of Management Department of Energy June 2,

June 2,