1. DOE 1605(b) Voluntary Greenhouse Gas Registry and
Recent USDA Actions on Climate Change
Thank you for your attention.
William Hohenstein
Global Change
Program Office

2. Directives to USDA
The Secretary of Energy, In consultation with the Secretary of Commerce, the Secretary of Agriculture, and the Administrator of the Environmental Protection Agency, to propose improvements to the current voluntary emissions reductions registration program under section 1605(b) of the 1992 Energy Policy Act…;
The Secretary of Energy to recommend reforms to ensure that businesses and individuals that register reductions are not penalized under future climate policy and to give transferable credits to companies that can show real reductions;
The Secretary of Agriculture, in consultation with the Environmental Protection Agency and the Department of Energy, to develop accounting rules and guidelines for crediting sequestration projects, taking into account emerging domestic and international approaches;
The Secretary of Agriculture,to develop new targeted incentives for carbon sequestration and greenhouse gas reductions.

3. Timeline for Final Review and Release of 1605b Guidelines
Fall ‘04
OMB review of proposed revised guidelines
Public review of proposed revised guidelines
--DOE public workshop
--USDA public workshop on agriculture and forestry guidelines
Release of revised 1605(b) guidelines
60 days
Winter ’04-05

4. Importance for USDA
Provides landowners with a tool to quantify and record greenhouse gas benefits of actions such as:
Using no-till agriculture
Installing a methane digester
Improving nutrient management
Managing forestland
Provides opportunities for agriculture and forestry to:
Partner with industry
Document benefits of actions for future use
Link reporting with conservation programs, e.g., CSP

5. Components of Proposed Revised 1605(b) Guidelines
General Guidelines
Initial draft submitted for public comment (12/03)
Technical Guidelines
Chapter 1: Inventory guidelines
Methods for quantifying sources and sinks of greenhouse gases
Appendices with detailed coefficients and protocols
Chapter 2: Guidelines for emission reduction reporting
Methods for quantifying and registering reductions in greenhouse gases
Forms and Instructions
Electronic and hard copies being prepared

6. Features of the Revised DOE 1605(b) Voluntary Greenhouse Gas Reporting System
Overall quality of reported information will improve
Consistent inventory methods. Inventory method rating system to determine eligibility for registration
Requirements in order to “register reductions”
Large entities (emissions over 10,000 tons CO2/yr) must report annual entity-wide inventories of GHG emissions and sinks to be eligible to register reductions
Small entities (emissions less than 10,000 tons CO2/yr) can register reductions from specific activities
Aggregators can report emissions and reductions of other entities
Pre-2003 activities: Only allow activities beginning on 1/1/02 to be registered.

7. Reductions Can be Calculated as:
Changes in emissions intensity
Changes in absolute emissions (if not resulting from declines in output)
Changes in carbon storage
“Reductions” = Carbon stock year x - Carbon stock base year
Changes in avoided emissions (resulting from energy sales)
Action-specific emissions reductions (when other methods are not appropriate/feasible)
Reductions associated with “emission-free” energy

8. USDA Contributions to the DOE 1605(b) Guidelines
Inventory methods for agriculture sources
Enteric fermentation
Animal waste
Rice cultivation
Crop residue burning
Nutrient and lime applications
Inventory methods for agricultural soil carbon sequestration
COMET model – produces default sequestration rates
Protocols for periodic sampling
Inventory methods for forest and wood products carbon stocks and fluxes
Default tables by region, species, management intensity, productivity class
Measurement and sampling protocols
Guidance on the use of models
COLE model – produces default forest carbon sequestration rates
Methods for estimating reductions from carbon sequestration

9. Issues Related to Forestry and Agriculture
How does the system ensure that reductions are maintained over time?
How to ensure that land owners can’t receive reductions by shifting practices?
Can simplified methods be developed for sustainably managed forests?
Should landowners be responsible for natural disturbances?
Can landowners receive reductions for forest preservation?
How should carbon stored in wood products be reported?

10. Next Steps Finalize guidelines! Technical Assistance and Outreach
Demonstrations
User-friendly manuals
Training sessions
Guidance to technical support providers
Utilize USDA cooperators (i.e., extension service, state conservationists, and field offices)
Continue research to improve measurement, monitoring, and verification

11. Environmental Quality Incentives Program (EQIP)
Greenhouse gases have been incorporated into USDA Conservation Programs
Environmental Quality Incentives Program (EQIP)
NRCS provided national guidance to make GHG a priority resource concern.
New practice standards for digesters announced in 2003.
Tiered payments under EQIP will reward producers who improve nutrient management
Conservation Reserve Program (CRP)
Secretary Veneman announced that USDA would target 500,000 acres (226,000 ha) of bottomland hardwoods under the CRP continuous sign-up
FSA providing points for carbon sequestration in rating CRP proposals through the Environmental Benefits Index (EBI).
Conservation Innovation Grants (CIG)

12. Greenhouse gases have been incorporated into USDA Conservation Programs
Conservation Security Program – provides incentives for energy conservation and renewable energy production
$500/farm for energy audit.
Energy savings from conservation tillage -- depends on level of reductions in soil disturbance Index, fertilizer use, and over-all energy use.
$2.50/100 kWh of energy produced by wind, solar, geothermal and methane.
$125/500 gallons (one bio-component of liquid fuel).
Renewable Energy Systems and Energy Efficiency Improvements Program
Competitive grants for 167 recipients, including 35 manure digesters.