Report May 9, 2012 Centre de santé et de services sociaux Domaine-du-Roy Verification report on a Greenhouse Gas Emissions (“GHG”) reduction project – Energy efficiency May 9, 2012 Mr. Jean Claude Lavoie Director of financial, informative and technical resources Centre de santé et de services sociaux Domaine-du-Roy 405 Brassard Street Roberval, Quebec G8H 1B9 Raymond Chabot Grant Thornton LLP Suite 2000 National Bank Tower 600 De La Gauchetière Street West Montréal, Québec H3B 4L8 Telephone: 514-878-2691 Fax: 514-878-2127 www.rcgt.com Dear Sir: Subject: Verification Report on a Greenhouse Gas (“GHG”) Emissions Reduction Project – Energy efficiency Enclosed herewith is our verification report on a GHG emissions reduction project performed at Hôtel-Dieu de Roberval (HDR) 405 Brassard Street, Roberval, Quebec, G8H 1B9 and at Foyer de la Paix, 1229 Sacré-Coeur Boulevard, Saint-Félicien, Québec, G8K 1A5. The quantification report that is subject to our verification is included in Appendix 1. Please do not hesitate to contact us for any additional information you may require. Yours truly, Chartered Accountants Gérald Daly, CA, CISA, CFE Advisory Partner Chartered Accountants Member of Grant Thornton International Ltd Roger Fournier, CA Lead Senior Manager Verification Notice on the Declaration of GHG Emissions Reductions Raymond Chabot Grant Thornton LLP Suite 2000 National Bank Tower 600 De La Gauchetière Street West Montréal, Québec H3B 4L8 Telephone: 514-878-2691 Fax: 514-878-2127 www.rcgt.com Mr. Jean Claude Lavoie Director of financial, informative and technical resources Centre de santé et de services sociaux Domaine-du-Roy 405 Brassard Street Roberval, Quebec G8H 1B9 Dear Sir: This verification report replaces the report previously issued on December 7, 2011. The present report provides an opinion based on the quantification report dated May 7, 2012 which replaces the quantification report dated December 6, 2011. We have verified the accompanying greenhouse gas (“GHG”) emissions reduction quantification report entitled "Greenhouse Gas Project Plan and Report - Period 2009-2010" (the “quantification report”). The project is located at Hôtel-Dieu de Roberval, 405 Brassard Street, Roberval, Quebec, G8H 1B9 and at Foyer de la Paix, 1229 Sacré-Coeur Boulevard, Saint-Félicien, Québec, G8K 1A5. This quantification report dated May 7, 2012 is included in Appendix 1. Management is responsible for the relevance, consistency, transparency, conservativeness, completeness, accuracy and method of presentation of the quantification report. This responsibility includes the design, implementation and maintenance of internal controls relevant to the preparation of a GHG emissions reduction quantification report that is free from material misstatements. Our responsibility is to express an opinion based on our verification. Before undertaking this assignment we ensured there were no conflicts of interest that could impair our ability of express an opinion. We also ensured we had the skills, competencies and appropriate training to perform this specific assignment. The work was performed by ISO 14064-3 trained professionals. Training was provided by the Canadian Standards Association. Chartered Accountants Member of Grant Thornton International Ltd 2 Centre de santé et de services sociaux Domaine-du-Roy (CSSS Domaine-du-Roy) CSSS Domaine-du-Roy is an establishment that manages and provides hospital care, health clinics, long-term care centres as well as alcohol and drug abuse assistance for the MRC Domaine-du-Roy. Institutions of note include the Hôtel-Dieu hospital and the housing and long-term care centre Foyer de la Paix. The emissions reduction project CSSS Domaine-du-Roy 's project consists in the implementation of energy efficient measures in two of its buildings. Since 2009, CSSS Domaine-du-Roy has implemented two principal energy efficiency projects reducing the overall energy consumption under its management. At the Hôtel Dieu hospital, a biomass burner has been installed to provide heat and at the housing and long-term care centre Foyer de la Paix, fuel oil was replaced with natural gas. These changes are among the main measures that CSSS Domaine-du-Roy has taken toward energy efficiency. The main GHG sources for the project are electricity, natural gas, fuel oil and biomass consumption activities. The various gases involved at CSSS Domaine-du-Roy are carbon dioxide (CO 2 ), methane (CH 4 ), and nitrous oxide (N 2 O). The quantification report The quantification report was prepared by L2I Solutions Financières, in accordance with ISO 14064-2 “Specification with guidance at the project level for quantification, monitoring and reporting of greenhouse gas emission reductions or removal enhancement (2006)”. The quantification methodology is based on the Clean Development Mechanism (CDM) methodology by the United Nation Framework Convention on Climate Change (UNFCCC) (2007), II.E.version 10 – Energy efficiency and fuel switching measures for buildings. The approach that was used for the quantification of the GHG emission reductions was to compare the emissions in the baseline scenario with those in the project. The quantifier determined the GHG emissions for every source of energy by using appropriate emission factors multiplied by the consumption of every GHG source. The emission factors chosen are based on Environment Canada - National Inventory Report 19902009. The verification work A draft of the quantification report was submitted to us on September 19, 2011. Our initial review of the documentation was undertaken on October 5, 2011 and a verification plan was prepared. We then toured CSSS Domaine-du-Roy on October 18, 2011. We subsequently received the final quantification report dated May 7, 2012. 3 The following points were revised with CSSS Domaine-du-Roy’s representatives: CSSS Domaine-du-Roy’s internal control with the purpose of assessing verification risk, comprehension of the different productions stages, emission sources and GHG involved. During the course of our verification, we obtained all the necessary cooperation and documents required from CSSS Domaine-du-Roy’s management. Our verification was conducted under ISO 14064-3 International Standard, entitled: Specification with guidance for the validation and verification of greenhouse gas assertions (2006). This standard requires that we plan and perform the verification to obtain either a reasonable assurance or a limited assurance about whether the emission reductions declaration that is contained in the attached quantification report is fairly stated, is free of material misstatements, is an appropriate representation of the data and GHG information of CSSS Domaine-du-Roy and the materiality threshold has not been reached or exceeded. It was agreed with CSSS Domaine-du-Roy’s representative that a reasonable assurance level of opinion would be issued and we planned and executed our work accordingly. Consequently, our verification included those procedures we considered necessary in the circumstances to obtain a reasonable basis for our opinion. A reasonable assurance engagement with respect to a GHG statement involves performing procedures to obtain evidence about the quantification of emissions, and about the other information disclosed as part of the statement. Our verification procedures were selected based on professional judgment, including the assessment of the risks of material misstatement in the GHG statement. In making those risk assessments, we considered internal control relevant to the entity‘s preparation of the GHG statement. Our engagement also included: Assessing the suitability in the circumstances of CSSS Domaine-du-Roy’s use of ISO 14064-2, as the basis for preparing the GHG statement; Evaluating the appropriateness of quantification methods and reporting policies used and the reasonableness of necessary estimates made by CSSS Domaine-du-Roy. Reasonable assurance opinion In our opinion: 1. The quantification report is prepared in accordance with ISO 14064-2 standard: Specification with guidance at the project level for quantification, monitoring and reporting of greenhouse gas emission reductions or removal enhancements (2006), and the principles of relevance, completeness, consistency, accuracy, transparency and conservativeness have been respected. 2. The approach and methodology used for the quantification are appropriate. 3. The baseline scenario is appropriate. 4. CSSS Domaine-du-Roy’s data controls management system is appropriate. 4 5. The GHG emission reductions presented in the quantification report entitled "Greenhouse Gas Project Plan and Report - Period 2009-2010" and dated May 7, 2012 are, in all material respect, fairly stated at 254 tCO 2 e for the year 2009 and 2,183 tCO 2 e for the year 2010 and are additional to what would have occurred in the baseline scenario. The following breakdown of those emission reductions by vintage year is fairly stated (in units of CO 2 e): Year CO 2 CH 4 N2O 2009 256 (1) (1) 2010 2,203 (7) (13) 6. The quantification report is free of material misstatements and it is an appropriate representation of the data and GHG information of CSSS Domaine-du-Roy. 7. The quantification report has a low degree of uncertainty and the materiality threshold has not been reached or exceeded. Restricted usage and confidentiality This verification report is produced to be used by the management of Centre de santé et de services sociaux Domaine-du-Roy and parties interested in the above described GHG emissions reduction project. Reliance on the conclusions of this verification report for any other usage may not be suitable. The quantification report entitled "Greenhouse Gas Project Plan and Report - Period 20092010" and dated May 7, 2012 is an integral part of this verification report and should in no circumstances be separated from it. This verification report and the supporting work files are kept confidential and will be safeguarded for 10 years after which period they will be safely destroyed. Roger Fournier, CA Lead Verifier Chartered Accountants Gérald Daly, CA, CISA, CFE Advisory Partner Montréal, May 9, 2012 Appendix 1 Quantification report Greenhouse Gas Project Plan and Report Period 2009-2010 Project proponent: Centre de santé et de services sociaux Domainedu-Roy 405, rue Brassard Roberval (Québec) G8H 1B9 Prepared by: L2I Financial Solutions 2015, Victoria Street, Suite 200 Saint-Lambert (Québec) J4S 1H1 May 7, 2012 TABLE OF CONTENT TABLE OF CONTENT .................................................................................................... ii LIST OF TABLES ........................................................................................................... iii ABBREVIATIONS .......................................................................................................... iv SOMMAIRE EXÉCUTIF ................................................................................................ 1 1. INTRODUCTION ............................................................................................ 2 2. PROJECT DESCRIPTION............................................................................. 3 2.1. Project title .......................................................................................................... 3 2.2. Objectives ........................................................................................................... 3 2.3. Type of GHG project .......................................................................................... 3 2.4. Location .............................................................................................................. 3 2.5. Project lifetime and crediting period................................................................... 3 2.6. Conditions prior to project initiation................................................................... 3 2.7. Description of how the project will achieve GHG emission reductions or removal enhancements ....................................................................................... 3 2.8. Project technologies, products, services and expected level of activity ............. 4 2.9. Aggregate GHG emission reductions and removal enhancements likely to occur from the GHG project......................................................................................... 4 2.10. Identification of risks .......................................................................................... 4 2.11. Roles and Responsibilities .................................................................................. 5 2.11.1. 2.11.2. Project proponent and representative ........................................................ 5 Quantification and reporting responsible entity ........................................ 5 2.12. Project eligibility under the GHG program ........................................................ 6 2.13. Environmental impact assessment ...................................................................... 6 2.14. Stakeholder consultations and mechanisms for on-going communication ......... 6 2.15. Detailed chronological plan ................................................................................ 6 3. SELECTION OF THE BASELINE SCENARIO AND ASSESMENT OF ADDITIONALITY ........................................................................................................... 7 4. IDENTIFICATION AND SELECTION OF GHG SOURCES, SINKS AND RESERVOIRS ......................................................................................................... 8 5. QUANTIFICATION OF GHG EMISSIONS AND REMOVALS .............. 9 5.1. Baseline GHG emissions/removals..................................................................... 9 5.2. Project GHG emissions/removals ..................................................................... 10 GHG Report ii 5.3. Emission reductions .......................................................................................... 11 6. DATA MONITORING AND CONTROL ................................................... 12 7. REPORTING AND VERIFICATION DETAILS....................................... 15 Appendix I: Calculations examples ............................................................................... 16 LIST OF TABLES Table 1: GHG emission reductions forecast over the crediting period ............................... 4 Table 2: SSR inventory ....................................................................................................... 8 Table 3: Monitored data .................................................................................................... 12 Table 4: GHG emission reductions summary ................................................................... 15 Table 5: Emissions of all three considered GHGs ............................................................ 15 Table 6: Monitored data at Hôtel-Dieu de Roberval (building "i") .................................. 16 Table 7: Heating degree-days ........................................................................................... 16 Table 8: Adjusted fuel consumptions (AQFF & PSAQFF &PSAQbm) at Hôtel-Dieu de Roberval (building "i")...................................................................................................... 17 Table 9: Emission factors.................................................................................................. 17 Table 10: GHG emissions by source for Hôtel-Dieu de Roberval ................................... 18 Table 11: Total emissions at Hôtel-Dieu de Roberval (HDR) and Résidence-de-la-Paix (RDP) ................................................................................................................................ 18 Table 12: Emission reductions .......................................................................................... 18 GHG Report iii ABBREVIATIONS BS: CDM: CH4: CO2: CO2e: CSA: CSSS: EF: EPA : HDD: HDR: GHG: ISO: IPCC: kWh : MRC: N2O: PS: SSR : t: VER : GHG Report Baseline Scenario (GHG Emission Source) Clean Development Mechanism Methane Carbon dioxide Carbon dioxide equivalent (usually expressed in metric tons) Canadian Standards Association Centre de santé et de services sociaux Emission Factor Environmental Protection Agency (USEPA) Heating degree day Hôtel-Dieu de Roberval Greenhouse gases International Organization for Standardization Intergovernmental Panel on Climate Change Kilowatt hour Municipalité régionale de comté (county) Nitrous oxide Project Scenario (GHG emission source) Source, Sink and Reservoir Ton Verified Emission Reduction iv SOMMAIRE EXÉCUTIF (Please note that the remainder of the document is in English) Le Centre de santé et de services sociaux Domaine-du-Roy a depuis quelques années mis de l’avant des politiques et des actions visant à réduire sa consommation d’énergie et à diminuer ses émissions de gaz à effet de serre (GES). Parmi les différentes mesures ayant été mises en place, deux se démarquent par l’atteinte potentielle de résultats probants. Tout d’abord, l’achat et l’installation d’une chaufferie à la biomasse à l’Hôtel-Dieu de Roberval permettra de subvenir aux besoins en chauffage de l’édifice à l’aide d’une source d’énergie renouvelable. Des résidus de bois en provenance d’une scierie locale sont utilisés en remplacement du gaz-naturel, un combustible fossile dont les émissions par combustion contribuent au réchauffement climatique. Également, au Foyer-de-la-Paix de Saint-Félicien, le remplacement d’une chaudière au mazout pour une chaudière au gaz naturel dont la combustion est moins polluante que celle du mazout contribue également au bilan positif en termes de réduction d’émissions de GES de l’organisme. Les réductions d’émission de GES pour la période 2009-2010 sont au nombre de : Réductions (t CO2e) 2009 2010 TOTAL GHG Report 254 2 183 2 437 1 1. INTRODUCTION The CSSS Domaine-du-Roy provides several services to the population of MRC Domaine-du-Roy. Hospitals, local community services and long term cares are among those services. The CSSS manages the following institutions: Hôpital Hôtel-Dieu de Roberval, Centre d'hébergement de Roberval, Foyer-de-la-Paix, Centre d'hébergement de Lac-Bouchette, CLSC de Saint-Félicien et CLSC de Roberval. Since the beginning of the last decade, the CSSS Domaine-du-Roy has shown willingness to lower their energy consumption. They implemented several measures in order to do so such as replacing the conventional incandescent light bulbs and installing better insulated windows. More important projects were decided to be implemented in the past few years allowing for substantial greenhouse gas (GHG) emission reductions. These project activities started mid-2009 and have not proven there full efficiency yet but are promising and should be even more beneficial in the future. Two main project activities are worth evaluating their GHG emission reductions potential. First, a biomass burner has been installed at Hôtel-Dieu de Roberval (HDR) to provide the required heat in the building. This will replace the natural gas boiler (that actually remains as back-up system). The second activity is the replacement of a fuel oil boiler at Foyer-de-la-Paix by a new natural gas boiler. In both cases, the combustion of the new fuel is less GHG intensive than the preceding fuel. GHG Report 2 2. PROJECT DESCRIPTION 2.1. Project title Fuel switch and biomass energy project at Centre de santé et de services sociaux Domaine-du-Roy 2.2. Objectives The objective of this project is to lower the total amount of GHG emitted by CSSS Domaine-du-Roy using less GHG intensive fuels like natural gas and wood residue. 2.3. Type of GHG project Fuel switching and biomass energy are two types of project activities involved in this grouped project as usage of oil as the main fuel at Foyer-de-la-Paix is replaced by natural gas and a biomass burner is installed at Hotel-Dieu de Roberval. 2.4. Location This grouped project is implemented at two locations in the Saguenay-Lac-Saint-Jean region in the province of Quebec: 1. Hôtel Dieu de Roberval (HDR) 450 rue Brassard Roberval, Quebec G8H 1B8 48o30’28’’ N, 72o13’11’’ W 2. Foyer de la Paix 1229 boul. Sacré-Coeur Saint-Félicien, Quebec G8K 1A5 48o39’14’’ N, 72o26’52’’ W 2.5. Project lifetime and crediting period The project start date is January 1st 2009 and the ten years crediting period will extend until December 31st 2018. 2.6. Conditions prior to project initiation Before 2009, natural gas was primarily used as fuel for the heating system at HDR and light oil was used as backup energy sources. At Foyer-de-la-Paix, light oil was the only fuel for the heating system. 2.7. Description of how the project will achieve GHG emission reductions or removal enhancements The GHG emissions reduction results from two main elements. The first one is the fuel switch from oil to natural gas for the heating system at Foyer-de-la-paix. The combustion of natural gas emits less GHG than the combustion of oil for the same energy production. GHG Report 3 The second and most important element of the project is the installation of a biomass boiler and thus the use of a biogenic source of carbon as fuel for energy production. Wood residue is used as energy source and the CO2 emissions associated with its combustion is not to be accounted for in the total emissions as they are considered biogenic and therefore already a part of the total atmospheric carbon1. Installation of new venting systems, replacement of old wooden made windows frames and the use of more energy efficient light bulbs also contribute to lower the GHG emissions from energy. 2.8. Project technologies, products, services and expected level of activity In both project activities, the expected level of heat production is the same as what was produced with previous technologies and fuel. In one case (HDR), heat will be produced firing biomass residue instead of natural gas and in the other case (Foyer-de-la-Paix), a new natural gas boiler is installed to generate the required heat instead of the oil boiler. 2.9. Aggregate GHG emission reductions and removal enhancements likely to occur from the GHG project Table 1: GHG emission reductions forecast over the crediting period Reductions (t CO2e) 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 TOTAL 250 2 000 2 850 2 850 2 850 2 850 2 850 2 850 2 850 2 850 25 050 2.10. Identification of risks Emission reductions are not only the results of technological improvements. They are also closely related to management methods. Great attention must be paid to energy use practices and management in order to achieve emissions reduction. 1 National Inventory Report 1990-2006 (May 2008), Greenhouse Gas Sources and Sinks in Canada, p.610 Internet link : http://www.ec.gc.ca/pdb/ghg/inventory_report/2006_report/2006_report_e.pdf GHG Report 4 In case of biomass burner failure, the natural gas boiler will take over therefore increasing the total GHG emissions. It is of primary importance to closely monitor the performance of the new biomass burner to make sure to minimize the risk of any failure. Finally, the project also lies on the fact that used biomass is actually wood residue coming from local sawmill. Attention must be paid to supply of these residues. In case of interruption of supply, biomass will need to be gathered from other provenance that can be in remote area increasing the transport distance and hence generating further GHG emissions. 2.11. Roles and Responsibilities 2.11.1. Project proponent and representative Centre de santé et de services sociaux Domaine-du-Roy Mr. Jean Claude Lavoie Director of financial, informative and technical resources 450, rue Brassard Roberval, (Québec) G8H 1B9 Tel: (418) 275-0110, extension 2223 2.11.2. Quantification and reporting responsible entity L2I Financial Solutions is a firm specialized in non-traditional corporate financing. An expertise has been developed in the quantification and exchange of carbon credits. In that capacity, we help companies count, quantify and accrue their carbon offsets and ensure their sale. Our expertise consists in selecting, applying and elaborating quantification methodologies to quantify the emissions reductions based on reputable international sources. Quantification and report writing Mr. David Beaudoin holds a Bachelor's Degree in Biotechnological Engineering from the University of Sherbrooke. During his career, Mr. Beaudoin has occupied several positions such as Process Engineering Consultant, Project Manager in R&D and research assistant for different engineering firms. He works at L2i Financial Solutions as Carbon Credit Advisor. He is responsible for the quantification and the project plan and report redaction. Supervision Mrs. Melina Valero is responsible for supervising the carbon credits quantification team. For many years now, the firm has been looking-out for their customers’ needs regarding the quantification of greenhouse gases. They offer services of GHG quantification, report redaction and the subsequent sale of the carbon credits on organized markets such as the Voluntary Carbon Market. Report Use and Users The target users are the potential offset VER (Verified Emission Reductions) buyers on the voluntary carbon market. The present report will serve as an indicator of the GHG GHG Report 5 emissions reductions performance of the project and will support the prospective sale of the resulting carbon credits. Verification Notification Initially quantified by L2I Financial Solutions consultant, the verification of the VERs will be conducted by the external verification entity Raymond Chabot Grant Thornton according to ISO 14064 part 3. 2.12. Project eligibility under the GHG program The project is eligible under the GHG CleanProjectTM program. It is implemented following the ISO 14064 guidelines and principles, is not attempted to be registered under another GHG program and does not create any other environmental credit. 2.13. Environmental impact assessment The nature of the project does not involve a required environmental impact assessment as the impact on the environment is limited to the GHG emissions. 2.14. Stakeholder consultations communication and mechanisms for on-going No stakeholder consultation was conducted. 2.15. Detailed chronological plan The first project activities were implemented in 2009. Data monitoring started in 2008 and will be ongoing until the end of the crediting period in 2018. GHG emission reductions are planned to be reported on a yearly basis. GHG Report 6 3. SELECTION OF THE BASELINE SCENARIO AND ASSESMENT OF ADDITIONALITY The baseline scenario is selected among alternative scenarios representing what would have happened without the project. The alternative scenario that is most likely to occur is selected as the baseline scenario. Three scenarios are identified as plausible scenarios. 1. The project scenario 2. Statu quo 3. Replacement by new natural gas heating system These three scenarios are technically feasible, allowed by applicable laws and would offer equivalent levels of activity. Scenario number 3 would not represent an economically attractive course of action as it involves unnecessary investments without significant change to the energy consumption. The project scenario (number 1) can result in economic benefits on the long term but faces significant barrier as it involves important capital costs. Statu quo is the most plausible scenario. An equipment change or retrofit is not required by law and to stick with in-place systems remains the least expensive and efforts demanding scenario. The scenario that is most likely to occur in the absence of this project is to keep using the equipment in place prior to the project activities initiation and the GHG emissions that are associated with the consumption of energy in that case. Therefore, the energy performance in the year prior to the project activities initiation is used as the baseline scenario for each building (HDR and Foyer-de-la-paix). The emission reductions achieved by the project are additional to what would have occurred in the absence of the GHG project since it is voluntary and faces significant investment barriers (capital cost and other financial details can be made available upon request). It is not a technology commonly implemented in the industry and is not enforced by any law. Its implementation is highly motivated by the GHG emission reductions potential. In this case, the project is voluntary. It aims to lower the GHG emissions associated with energy consumption. GHG Report 7 4. IDENTIFICATION AND SELECTION SOURCES, SINKS AND RESERVOIRS OF GHG The SSRs for the baseline and the project scenario are identified in the table below and it is stated whether they are included or excluded from the quantification. Source Baseline Fuel extraction, processing and transport Emissions from electricity production Project Table 2: SSR inventory Incl/Excl? Explanation Type ? Excluded This emission source is assumed to be negligible Related compared to the combustion. Included Related May be a significant source of greenhouse gases depending on the production means. Fossil fuel combustion Included An important source of greenhouse gases. Controlled Fuel extraction, processing and transport Excluded Related This emission source is assumed to be negligible compared to the combustion taken into account the proximity of the biomass source Emissions from electricity production Included Related May be a significant source of greenhouse gases depending on the production means. Fossil fuel combustion Included An important source of greenhouse gases. Controlled Biomass combustion Partly CO2 emissions are biogenic and not accounted for.. Excluded Traces of CH4 and N2O are quantified though. Controlled GHG Report 8 5. QUANTIFICATION REMOVALS OF GHG EMISSIONS AND The following methodology is used as a guiding tool for the quantification of GHG emission reductions: II.E version 10 – Energy efficiency and fuel switching measures for buildings2. The quantification method consists essentially of multiplying appropriate emission factors to the total consumption of different types of energy namely electricity, natural gas, light fuel oil and wood residue. However, the energy consumption is closely related to the heating needs and therefore to the weather conditions of a given year particularly in temperate regions like the province of Quebec. For accuracy purposes, it is therefore important to evaluate the effect of the weather conditions on the energy consumption and its related GHG emissions and emission reductions. The normalization procedure is intended to do so and is applied for this quantification. The normalization equations are outlined in the following subsections. Examples of the calculations are given in Appendix I. 5.1. Baseline GHG emissions/removals BSi, = Eelec,i,b + Eff,i,b BSi,= Baseline Scenario emissions from building “i” (t CO2e) Eelec,i,b = Emissions associated with electricity use at building “i” in baseline year (t CO2e) Eff,i,b= Emissions associated with fossil fuel combustion at building “i” in baseline year (t CO2e) Eelec,i,b = [EECO2 + (EECH4 * GWPCH4) + (EEN2O *GWPN2O)] * QEi,b Eff,i,b= [EFFCO2 + (EFFCH4 * GWPCH4) + (EFFN2O *GWPN2O)] * AQFFi,b QEi,b = Quantity of electricity consumed at building “i” in baseline year (kWh); AQFFi,b = Adjusted quantity of fossil fuel consumed at building “i” in baseline year (m3,litres, or appropriate unit); EECO2, EECH4, EEN2O = GHG emission factors for electricity (3 g CO2e / kWh)3; EFFCO2, EFFCH4, EFFN2O = GHG emission factors for fossil fuel combustion (Natural Gas: 1878 g CO2/m3, 0.037 g CH4/m3, 0.035 g N2O/m3. Light Fuel Oil: 2725 g CO2/L, 0.026 g CH4/L, 0.031 g N2O/L)4; 2 CDM, (2007). CDM methodology II.E/Version 10: Energy efficiency and fuel switching measures for buildings, p.1. Internet link:http://cdm.unfccc.int/UserManagement/FileStorage/CDMWF_AM_LAVBAV8STPGYPWVKGQJLB CNEC8APNP 3 National Inventory Report 1990-2009 (April 2011), Greenhouse Gas Sources and Sinks in Canada, Part 3, Table A13-6, Available at: http://www.ec.gc.ca/Publications/default.asp?lang=En&xml=492D914C2EAB-47AB-A045-C62B2CDACC29 4 National Inventory Report 1990-2009 (April 2010), Greenhouse Gas Source and Sinks in Canada, Part 2, Table A8-1 and A8-2, Available at: GHG Report 9 GWPCH4 = GWPN2O = Global Warning Potential of methane (21) Global Warning Potential of nitrous oxide (310) AQFFi,b = QFFi,b * [HDDr/HDDb)] QFFi,b= Quantity of fossil fuel consumed at building “i” in baseline year (m3,litres, or appropriate unit); HDDr= Heating Degree-day of a 30 years reference period5 HDDb= Heating Degree-day of the baseline year “b” The above equation for weather-adjustment is the same wherever the weather-adjusted consumption of energy is required and is taken from the VCS methodology6. In this case, degree-days data are from the Roberval weather station. 5.2. Project GHG emissions/removals PSi,y = PSElec,i,y + PSFF,i,y + PSbm,i,y PSi,y= Project Scenario emissions for building “i” in year “y” (t CO2e); PSElec,i,y = Project Scenario emissions associated with electricity use for building “i” in year “y” (t CO2e) PSFF,i,y = Project Scenario emissions associated with fossil fuel combustion for building “i” in year “y” (t CO2e) PSbm,i,y= Project Scenario CH4 and N2O emissions associated with biomass combustion for building “i” in year “y” (t CO2e) PSElec,i,y = [EECO2 + (EECH4 * GWPCH4) + (EEN2O *GWPN2O)] * PSQEi,y PSQEi,y = Quantity of electricity consumed for building “i” in year “y” (kWh); PSFF,i,y = [EFFCO2 + (EFFCH4 * GWPCH4) + (EFFN2O *GWPN2O)] * PSAQFFi,y PSAQFFi,y = Adjusted quantity of fossil fuel consumed for building “i” in year “y” (m3,litres, or appropriate unit); PSAQFFi,y = QFFi,y * [HDDr/HDDy)] QFFi,y= Quantity of fossil fuel consumed at building “i” in year “y” (m3,litres, or appropriate unit); HDDr= Heating Degree-day of a 30 years reference period7 HDDy= Heating Degree-day of the year “y” http://www.ec.gc.ca/Publications/default.asp?lang=En&xml=492D914C-2EAB-47AB-A045C62B2CDACC29 5 Heating degree-days of each region are taken from Environement Canada weather office : http://climate.weatheroffice.gc.ca/climate_normals/stnselect_f.html?pageid=1&lang=f&province=QUE&pr ovBut=Recherche 6 VM0008 Methodology for Weatherization of Single and Multi-Family Buildings, p16; Internet link: http://www.v-c-s.org/VM0008.html 7 Heating degree-days of each region are taken from Environement Canada weather office : http://climate.weatheroffice.gc.ca/climate_normals/stnselect_f.html?pageid=1&lang=f&province=QUE&pr ovBut=Recherche GHG Report 10 PSbm,i,y = [(EbmCH4 * GWPCH4) + (EbmN2O *GWPN2O)] * PSAQbmi,y PSAQbmi,y = Adjusted quantity of biomass combusted for building “i” in year “y” (kg); EbmCH4, EbmN2O = GHG emission factors for biomass combustion (0.09 g CH4/kg, 0.02 g N2O/kg)8; PSAQbmi,y = Qbmi,y * [HDDr/HDDc)] Qbmi,y= Quantity of biomass consumed at building “i” in year “y” (kg) 5.3. Emission reductions TPERy = Σ ERi,y TPERy = Total Project Emission Reductions in year “y” (t CO2e) ERi,y = Emission reductions for building “i” in year “y” (t CO2e) ERi,y = BSi, – PSi,y 8 National Inventory Report 1990-2009, Greenhouse Gas Source and Sinks in Canada, Part 2, p.204, Available at: http://www.ec.gc.ca/Publications/default.asp?lang=En&xml=492D914C-2EAB-47AB-A045C62B2CDACC29 GHG Report 11 6. DATA MONITORING AND CONTROL Table 3: Monitored data Data / Parameters Data unit : Description : Source of data to be used : Description of measurement methods and procedures to be applied : QA/QC procedures to be applied : Any comment : QE kWh Electricity consumption Power supplier invoices Collection from energy bills and input into a database Data / Parameters Data unit : Description : Source of data to be used : Description of measurement methods and procedures to be applied : QA/QC procedures to be applied : Any comment : QFFNG m3 Natural gas consumption Natural gas supplier invoices Collection from energy bills and input into a database Data / Parameters Data unit : Description : Source of data to be used : Description of measurement methods and procedures to be applied : QA/QC procedures to be applied : Any comment : QFFoil litres Fuel oil consumption Oil suppliers invoices Collection from energy bills and input into a database Data / Parameters Data unit : Description : Source of data to be used : Description of measurement methods and procedures to be applied : QA/QC procedures to be Qbm kg Biomass consumption Wood residue suppliers invoices GHG Report Supplier invoices are judged sufficiently accurate so other QA or QC procedures are not required Supplier invoices are judged sufficiently accurate so other QA or QC procedures are not required Supplier invoices are judged sufficiently accurate so other QA or QC procedures are not required Supplier invoices are judged sufficiently accurate 12 applied : Any comment : so other QA or QC procedures are not required Data / Parameters Data unit : Description : Heating Degree-days (HDD) o C Number of degrees (oC) below 18oC between this threshold of 18 and the average temperature of the day. It serves as a representation of the need for heating of a given year. Taken from the closest weather station. This information is available from Environment Canada Weather Office. Source of data to be used Description of measurement methods and procedures to be applied : QA/QC procedures to be applied : Any comment : Official data from Environment Canada are considered the most accurate available. Data / Parameters Data unit : Description : EFF CO2, CH4, N2O (Natural Gas) g/m3 of Natural gas Emission factor of CO2, CH4, N2O for the combustion of Natural gas. Most recent version of the Canada’s National Inventory Report. Value updated yearly. Source of data to be used Description of measurement methods and procedures to be applied : QA/QC procedures to be applied : Any comment : Official data from Environment Canada are considered the most accurate available. Data / Parameters Data unit : Description : EFF CO2, CH4, N2O (oil) g/L of light fuel oil Emission factor of CO2, CH4, N2O for the combustion of light fuel oil. Most recent version of the Canada’s National Inventory Report. Value updated yearly. Source of data to be used Description of measurement methods and procedures to be applied : QA/QC procedures to be applied : Any comment : Official data from Environment Canada are considered the most accurate available. Data / Parameters EECO2, CH4, N2O GHG Report 13 Data unit : Description : Source of data to be used Description of measurement methods and procedures to be applied : g/kWh Emission factor of CO2, CH4, N2O for use of electricity Most recent version of the Canada’s National Inventory Report. Value updated yearly. QA/QC procedures to be applied : Any comment : Official data from Environment Canada are considered the most accurate available. Data / Parameters Data unit : Description : Ebm CH4, N2O Kg/tonne Emission factor of CH4, N2O for the combustion of biomass Most recent version of the Canada’s National Inventory Report. Value updated yearly. Source of data to be used Description of measurement methods and procedures to be applied : QA/QC procedures to be applied : Any comment : GHG Report Official data from Environment Canada are considered the most accurate available. 14 7. REPORTING AND VERIFICATION DETAILS The project plan and report is prepared in accordance with ISO 14064-2 standard and the GHG CleanProjectTM program requirements. The methodology that is used, the choice of region specific emission factors and a rigorous monitoring plan allow for a reasonably low level of uncertainty. L2I Solutions is confident that the emission reductions are not overestimated and that the numbers of emission reductions that are reported here are real and reflect the actual impacts of the project. The GHG report is prepared in accordance with ISO 14064-2 and GHG CleanProjectsTM requirements. Emission reductions will be verified by an independent third party to a reasonable level of assurance. Raymond Chabot Grant Thornton will be the verifying firm for this reporting period. Emission reductions are reported here for the years 2009-2010 Table 4: GHG emission reductions summary Reductions (t CO2e) 2009 2010 TOTAL 254 2 183 2 437 Table 5: Emissions of all three considered GHGs GHG emissions (t CO2e) Year CO2 CH4 N2O total Baseline 5908 2 33 5 943 2009 5652 3 34 5 689 2010 3705 9 46 3 760 GHG Report 15 Appendix I: Calculations examples Table 6: Monitored data at Hôtel-Dieu de Roberval (building "i") Year (“y”) QE QFFNG QFFoil Qbm 3 (KWh) (m ) (Litre) (kg) 2008 (“b”) 6 939 785 2 951 731 7 109 0 2009 6 527 213 2 889 802 0 326 550 2010 7 253 784 1 617 592 0 3 395 763 Table 7: Heating degree-days HDD 30 years 5821,3 reference 2008 5607,2 2009 5674,2 2010 4896,0 Adjusted quantity of fossil fuel in baseline year AQFFi,b = QFFi,b * [HDDr/HDDb)] Example for adjusted natural gas consumption in baseline year 2008 at Hôtel-Dieu de Roberval AQFFi,b = 2 951 731 * [5821.3 / 5607.2] = 3 064 437 m3 Adjusted quantity of fossil fuel in project scenario in year “y” PSAQFFi,y = QFFi,y * [HDDr/HDDy)] Example for adjusted natural gas consumption in year 2010 at Hôtel-Dieu de Roberval PSAQFFi,y = 1 617 592 * [5821.3/4896.0] = 1 923 302 m3 GHG Report 16 Table 8: Adjusted fuel consumptions (AQFF & PSAQFF &PSAQbm) at Hôtel-Dieu de Roberval (building "i") Natural gas (m3) 2008 (baseline) 2009 2010 Fuel Oil (L) Biomass (kg) 3 064 437 7 380 0 2 964 718 1 923 302 0 0 335 016 4 037 532 Table 9: Emission factors Emission factors EE EFF NG,CO2, EFF NG CH4, EFF NG N2O EFF oil,CO2, EFF oil CH4, EFF oil N2O EbmCH4, EbmN2O Value 3 g CO2e/kWh 1878 g CO2/m3 0.037 g CH4/m3 0.035 g N2O/m3 2725 g CO2/L 0.026 g CH4/L, 0.031 g N2O 0.09 g CH4/kg, 0.02 g N2O/kg Emissions from fossil fuel in baseline scenario Eff,i,b= [EFFCO2 + (EFFCH4 * GWPCH4) + (EFFN2O *GWPN2O)] * AQFFi,b Example for baseline emissions from natural gas at Hôtel-Dieu de Roberval Eff,i,b= [1878 + (0.037 * 21) + (0.035 * 310)] * 3 064 437 m3 = 5.791 * 109 g CO2e Emissions from biomass in project scenario in year “y” PSbm,i,y = [(EbmCH4 * GWPCH4) + (EbmN2O *GWPN2O)] * PSAQbmi,y Example for project scenraio emissions from biomass in year 2010 at Hôtel-Dieu de Roberval PSbm,i,y = [(0.09 * 21) + (0.02 * 310)] * 4 037 532 kg = 3.266 * 107 g CO2e GHG Report 17 year Electricity Table 10: GHG emissions by source for Hôtel-Dieu de Roberval Natural Gas Fuel Oil CO2 (t) CH4 (t) N2O (t) 2008 20,82 0,00 0,00 2009 19,58 0,00 2010 21,76 0,00 CO2 (t) Biomass CH4 (t) N2O (t) CO2 (t) CH4 (t) N2O (t) CO2 (t) CH4 (t) N2O (t) 5755,01 0,11 0,11 20,11 0,00 0,00 0,00 0,00 0,00 0,00 5567,74 0,11 0,10 0,00 0,00 0,00 0,00 0,03 0,01 0,00 3611,96 0,07 0,07 0,00 0,00 0,00 0,00 0,36 0,08 Total Project scenario emissions in year “y” PSi,y = PSElec,i,y + PSFF,i,y + PSbm,i,y Example for project scenario emissions in 2010 at Hôtel-Dieu de Roberval PSi = [21.76] + [3611.96 + 21*0.07 + 310 * 0] + [0] + [21*0.36 + 310 * 0.08] = 3689 t CO2e Table 11: Total emissions at Hôtel-Dieu de Roberval (HDR) and Résidence-de-la-Paix (RDP) HDR (t CO2e) RDP (t CO2e) Total (t CO2e) 2008 5 832 111 5 943 (baseline) 2009 5 689 5 625 64 2010 3 760 3 689 71 Total project emission reductions in year “y” TPERy = Σ [BSi, – PSi,y] Example for emission reductions in year 2010 TPERy = [5832 – 3689] + [111 – 71] = 2183 Table 12: Emission reductions (t CO2e) 2009 254 2010 2 183 GHG Report 18