BC TRANSIT AND TRANSLINK LOW CARBON AND ELECTRIC VEHICLE OFFSET PROJECT

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1 BC TRANSIT AND TRANSLINK LOW CARBON AND ELECTRIC VEHICLE OFFSET PROJECT GHG PROJECT PLAN, V2.0 PREPARED ACCORDING TO THE REQUIREMENTS OF THE BC EMISSION OFFSETS REGULATION PREPARED ON BEHALF OF: BC TRANSIT AND TRANSLINK PREPARED BY: MVISION PLANNING Revised: November 14, 2012

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3 Executive Summary The BC Transit and TransLink Low Carbon and Electric Vehicle Offset Project was undertaken to reduce greenhouse gas (GHG) emissions from transit fleets in British Columbia (BC). The project start date, defined as the date of commercial operation, began on February 1, 2009, and presently operates throughout the Resort Municipality of Whistler and Metro Vancouver. The Project utilizes the Public Transit Offset Protocol: Fuel Switching and Efficiency Improvement in Fleets, written by Habitat Carbon Assets and CPS Carbon Project Solutions Inc., to quantify project emission reductions. The Project is estimated to result in emission reductions of 96,579 tonnes of CO₂e over 12 years. The BC Transit and TransLink Low Carbon and Electric Vehicle Offset Project is a fuel efficiency and fuel switch project in the public transit sector. By purchasing new vehicles that are either more fuel efficient (e.g. diesel hybrid) than the baseline vehicle type (e.g. conventional diesel) or that use less GHG intensive fuels (e.g. electricity or hydrogen), the project proponents reduce GHG emissions below a business-as-usual scenario. Although public transit systems are an efficient mode of travel compared to single occupant vehicles, there is an opportunity to further reduce GHGs released into the atmosphere below a business as usual scenario. The Public Transit Offset Protocol and the Project Plan provide a route to quantifying, standardizing, and certifying emission reductions enabled through fuel efficiency and fuel switch activities by public transit agencies. The resulting offsets may be sold as a commodity to create revenue for the public transit bodies, incentivizing them to make decisions toward lower GHG emitting routes, where business-as-usual would maintain a higheremissions status quo. Emissions reductions were calculated by determining the difference in emissions between operating baseline diesel buses and operating the vehicles with project technologies. The Project Plan sets out how this Project meets the requirements of the Protocol, BC Greenhouse Gas Reductions Target Act, Emissions Offset Regulation, and ISO BC Transit and TransLink Low Carbon and Electric Vehicle Offset Project

4 TABLE OF CONTENTS 1.0 TABLE OF CONTENTS 2.0 General Requirements Project Eligibility Criteria Relevant Protocols Project Description Project Title Purposes and Objectives Type of GHG Project Project Location Conditions Prior to Project Initiation GHG Emissions Reduction Strategy Detailed Project Description Estimated GHG Emission Reductions and Removal Enhancements Risk Assessment Contact Information Relevant Policies, Schemes and/or Legislation Environmental Impacts Stakeholder Consultations Project Activities and Timelines Identification of Relevent GHG Sources, Sinks and Reservoirs Identification of Project SSRs Description of the Project SSRs Explanation of SSR Categorization Determining the Baseline Scenario Identification of Baseline Alternatives Evaluation of Baseline Alternatives and Selection of Baseline Scenario Temporal Applicability of Selected Baseline Project Additionality Identification of Baseline SSRs Description of the Baseline SSRs Explanation of SSR Categorization Comparison of Project & Baseline SSRs and Selection of Relevant SSRs for Monitoring or Estimation Quantification of Project and Baseline Emissions Quantification Methodologies Summary of Equations Monitoring Plan BC Transit and TransLink Low Carbon and Electric Vehicle Offset Project i

5 5.1 Purpose of Monitoring Monitoring Roles and Responsibilities GHG Information Management System (IMS) Data Monitoring Primary Procedures Data Monitoring Contingency Procedures Data Quality Management Plan Data Quality Management Plan Objective Responsible Personnel, Qualifications and Training Quality Assurance and Quality Control Procedures Data Controls Data Chain of Custody and Security Record Back-up and Archiving Periodic Quality Assurance Review Detailed Results and Uncertainty Assessment Summary of GHG Assertions Baseline Results in Conservative GHG Estimate Project Additionality Project Start Date Accurate and Conservative Estimate of GHGs Ownership Conformance with Emission Offsets Regulation Conformance with ISO References and Supporting Documents BC Transit and TransLink Low Carbon and Electric Vehicle Offset Project ii

6 List of Tables Table 1: Ownership, Type and Location of Project Vehicles... 5 Table 2: Estimated Emissions Reductions over Project Lifetime... 9 Table 3: Project Risks Table 4: Project Activities and Timelines Table 5: Project Sources, Sinks and Reservoirs Descriptions.. 19 Table 6: Potential Baseline Scenarios Table 7: Comparative Assessment of Barriers Table 8: Additionality by Project Vehicle Purchase Table 9: Baseline Sources, Sinks and Reservoirs Descriptions Table 10: Identification of relevant SSRs Table 11: Monitoring Roles and Responsibilities. 52 Table 12: Data Monitoring Primary Procedures Table 13: Data Monitoring Contingency Procedures.. 59 Table 14: Baseline Emissions (Diesel). 68 Table 15: Project Emissions Table 16: Proponents Conservative Estimates of Emissions Reductions List of Figures Figure 1: Location Map TransLink Operations in Metro Vancouver... 3 Figure 2: Location Map - BC Transit Operations in Whistler... 4 Figure 3: Location Map Detail of Whistler Area. 5 Figure 4: Process Flow for the Project Figure 5: Project SSR Diagram BC Transit and TransLink Low Carbon and Electric Vehicle Offset Project iii

7 Figure 6: Additionality Assessment Path Figure 7: Process Flow for the Baseline Figure 8: Baseline SSR Diagram Figure 9: SMARTTool Flowchart List of Appendices and Attachments Appendix 1: TransLink 2009 Sustainability Report Appendix 2: BC Transit PCT Background Request for Information Rev 8 Jun 05 Appendix 3: BC Transit PCT Background Whistler RSVP List Appendix 4: TransLink 2009 Bus Procurement Matrix Appendix 5: BC Transit Hydrogen Contract Announcement Appendix 6: TransLink 2007 Board Report Appendix 7: BC Transit Self-Certification of PSO Emissions April Final Appendix 8: Transit Project Plan Offset Calculations Appendix 9: Ownership_BC Transit_1565_001 Appendix 10: Ownership_Translink_ Nova Hybrid Appendix 11: Ownership_Translink_APV9T_2574 Appendix 12: Ownership_Translink_APV9T_9409 Appendix 13: Ownership_Translink_Contract Award Invoice Project 0822 Appendix 14: Ownership_Translink_NOA_2574 Appendix 15: Ownership_Translink_NOA_8121 Appendix 16: Ownership_Translink_NOA_9402 BC Transit and TransLink Low Carbon and Electric Vehicle Offset Project iv

8 2.0 GENERAL REQUIREMENTS Please note that in order to facilitate validation/verification reference to clauses in the BC Emission Offsets Regulation and ISO are made throughout this GHG project plan. This has been done to indicate where specific requirements of the Regulation/ISO are met. 2.1 PROJECT ELIGIBILITY CRITERIA (BC-Reg: Section 3, subsection 2 k & o) The following two general eligibility requirements under the BC Emission Offsets Regulation are satisfied by the project: Location: Metro Vancouver and the Resort Municipality of Whistler in British Columbia, Canada Start date: The date the Project began active operation was February 1, RELEVANT PROTOCOLS (BC-Reg: Section 3, subsection 2 h) Protocol Utilized: Public Transit Offset Protocol: Fuel Switching and Efficiency Improvement in Fleets Eligibility Criteria: 1. Project may utilize more fuel-efficient technologies in transit vehicles. The Project includes the use of diesel hybrid buses, a more fuel-efficient bus technology. 2. Project may employ technologies that utilize a switch of fuels in transit vehicles. The Project includes the use of electric trolley buses and hydrogen fuel cell buses, representing a switch of fuels in transit vehicles. 3. Project may use more than one type of technology to achieve GHG reductions. The Project uses one fuel efficiency technology (hybrid diesel) and two fuel switch technologies (diesel to electricity and diesel to hydrogen) to achieve GHG reductions. 4. Project vehicles may be new or retrofitted. All of the project vehicles are new. 5. Project may add further groupings of project vehicles after project plan Validation, so long as representative conditions present at validation continue to apply. Eligibility of added project vehicles is subject to approval by verification body. BC Transit and TransLink Low Carbon and Electric Vehicle Offset Project 1

9 The project currently contemplates addition of articulated hybrid diesel buses to the fleet, pending TransLink decisions in Further vehicle additions may be added throughout project lifespan, so long as they meet the project-specific criteria in this validated project plan. 6. Meets the requirements for offset eligibility as specified in the BC Emission Offsets Regulation. Of particular note, emission reductions must: 1. Result from actions taken on or after November 29, The PCT Guidance Document v1.1 defines project start as being at the start of commercial operation. The project began commercial operation upon the inclusion of fuel efficient/low carbon buses in the fleet of the project proponents. This process, and hence the project, began February 1, Have clearly established ownership South Coast British Columbia Transportation Authority (TransLink) and British Columbia Transit Authority (BC Transit) own the project, its baseline, and resulting emission reductions. 3. Be achieved from controlled SSRs, taking into consideration increases in emissions from related SSRs. Yes. 4. Have occurred in British Columbia. The project takes place in British Columbia. 3.0 PROJECT DESCRIPTION 3.1 PROJECT TITLE (ISO : clause 5.2 a, BC-Reg: Section 3, subsection 2 a) BC Transit & TransLink Low Carbon and Electric Vehicle Offset Project 3.2 PURPOSES AND OBJECTIVES (ISO : clause 5.2 a, BC-Reg: Section 3, subsection 2 a) Public transit systems are a common, important public good in British Columbia and around the world. They provide an efficient mode of transportation for major segments of the populace to travel, commute and access destinations, enriching the economic and cultural life of regions. By reducing private automobile use and improving efficiency of available travel infrastructure, public transit systems are critical to urban design and a region s livability. BC Transit and TransLink Low Carbon and Electric Vehicle Offset Project 2

10 Although public transit systems already constitute an efficient mode of travel compared to single occupant vehicles, there is also an opportunity to further reduce the emissions of transit operations to reduce GHGs released into the atmosphere. The Public Transit Offset Protocol and the Project Plan provide a route to quantifying, standardizing and certifying emissions reductions enabled through fuel efficiency and fuel switching activities by public transit bodies. The resulting offsets may be sold as a commodity to create revenue for the public transit bodies, allowing them to make the decision to undertake a lower GHG emitting route, where businessas-usual would have maintained a higher-emissions status quo. In Whistler, BC Transit saw the opportunity to deploy hydrogen fuel cell buses for use during the 2010 Winter Olympics, gaining profile for this innovative program and maximizing public policy goals of GHG reduction. In Metro Vancouver, TransLink saw an opportunity to implement fuel efficient and cleaner fuel technologies, overcoming financial and technological barriers to provide transit service more cleanly and efficiently. By implementing this emissions reduction project, these adoptions of new bus technology generate revenue from sales of carbon offsets, while helping meet British Columbia s GHG emissions targets. 3.3 TYPE OF GHG PROJECT (ISO : clause 5.2 b & f) The BC Transit and TransLink Low Carbon and Electric Vehicle Offset Project is a fuel efficiency and fuel switch project in the public transit sector. By purchasing new buses that are either more fuel efficient (e.g. diesel hybrid) than the baseline bus type (e.g. conventional diesel) or that use less GHG intensive fuels (e.g. electricity or hydrogen), the project proponents reduce GHG emissions below a business-as-usual scenario. Note: Please see section 3.7 for further project details. 3.4 PROJECT LOCATION (ISO : clause 5.2 c, BC-Reg: Section 3, subsection 2f) Figure 1: Location Map - TransLink Operations in Metro Vancouver. BC Transit and TransLink Low Carbon and Electric Vehicle Offset Project 3

11 Figure 2: Location Map - BC Transit Operations in Resort Municipality of Whistler, 123 kilometres north of Vancouver. BC Transit and TransLink Low Carbon and Electric Vehicle Offset Project 4

12 Figure 3: Location Map Detail of Whistler Area. Table 1: Ownership, Type and Location of Project Vehicles. Owner and Operator Vehicle Types / Projects Project Site: Transit Centre of Vehicle Operations Location of Vehicle Operations TransLink (operator: Coast Mountain Bus Company) dieselelectric hybrid buses articulated diesel-electric hybrid buses articulated electric trolley buses Vancouver Transit Centre (9149 Hudson Street, Vancouver BC V6P 4N5) and Burnaby Transit Centre (3855 Kitchener Street, Burnaby BC V5C 3L8) Burnaby Transit Centre (3855 Kitchener Street, Burnaby BC V5C 3L8) Vancouver Transit Centre (9149 Hudson Street, Vancouver BC V6P 4N5) Vehicles operating in City of Vancouver, University Endowment Lands, Burnaby, New Westminster, and the North Shore Vehicles operating in City of Vancouver, University Endowment Lands, Burnaby, New Westminster, and the North Shore Operating in City of Vancouver BC Transit and TransLink Low Carbon and Electric Vehicle Offset Project 5

13 BC Transit (operator: Whistler Transit) articulated diesel-electric hybrid buses (approval in principle received February 2011; specific project approval received April 2011). Likely to be in-service late hydrogen fuel cell buses Vancouver Transit Centre (9149 Hudson Street, Vancouver BC V6P 4N5) and Burnaby Transit Centre (3855 Kitchener Street, Burnaby BC V5C 3L8) Whistler Transit Centre (8011 Highway 99, Resort Municipality of Whistler BC V0N 1B8) Routes within Metro Vancouver. Exact locations to be determined. Operating in the Resort Municipality of Whistler 3.5 CONDITIONS PRIOR TO PROJECT INITIATION (ISO : clause 5.2 d, BC-Reg: Section 3, subsection 2 j (i) & (ii)) TransLink Diesel buses are the mainstay of the transit industry and are the most common bus used in the TransLink fleet. Diesel buses are a relatively low-cost, low-risk technology with operating characteristics and maintenance that are well understood. TransLink has a fleet of 1,556 conventional bus and community shuttles, including approximately 248 electric trolley buses, 1,009 conventional diesel buses, 56 compressed natural gas (CNG) buses, and a variety of other vehicles (including community shuttles). The emissions associated with new diesel buses are shown in Section relative to other bus technologies. In 2009, TransLink s diesel buses produced approximately 109,541 tonnes of CO₂e emissions out of a total of approximately 147,857 tonnes of CO₂e emissions, representing nearly three-quarters of TransLink s revenue fleet greenhouse gas emissions. See TransLink s 2009 Sustainability Report for further information. Note that TransLink s 2012 Sustainability Report will be published in early fall Appendix 1: TransLink 2009 Sustainability Report. Before 2007, there were no articulated trolley buses or articulated hybrid buses in service in the TransLink fleet. For routes that required articulated buses, diesel articulated buses provided the service. BC Transit BC Transit and TransLink Low Carbon and Electric Vehicle Offset Project 6

14 Prior to the deployment of the hydrogen fleet in Whistler, BC Transit operated conventional diesel powered buses for transit service within the Resort Municipality. In 2009, the fleet consumed 812,278 litres of diesel fuel in the provision of transit service within the Resort Municipality, emitting approximately 2,100 tonnes of greenhouse gases. Current Policy Environment BC Transit As a public sector organization, BC Transit is responsible for complying with the requirements of the Greenhouse Gas Reduction Targets Act and the Carbon Neutral Government Regulation to measure, report and offset regulated greenhouse gas emissions. The Province of British Columbia also provides an annual Shareholder s Letter of Expectations to BC Transit. The Letter of Expectations for 2010/11 required BC Transit to ensure that the Corporation s priorities reflect the government s goals of climate action initiatives and directs BC Transit to provide advice and support to the shareholder on transit services and technologies that support government s environmental and climate change objectives ; however there are no regulations applicable to BC Transit governing these requirements. On-Road Vehicle and Engine Emission Regulations ( ) from the Canadian Environmental Protection Act. The On-Road Vehicle and Engine Emission Regulations contain regulations for particulate matter, nitrogen oxides, hydrocarbons and carbon monoxide (nitrogen oxides and methane being the two greatest GHG emissions). Carbon dioxide is not regulated for transit buses and is therefore not a primary consideration for bus and engine manufacturers in vehicle design. TransLink South Coast British Columbia Transportation Authority Act The purpose of TransLink includes providing a regional transportation system that supports the regional growth strategy and provincial and regional environmental objectives, including air quality and greenhouse gas emission reduction objectives. TransLink is also subject to the On- Road Vehicle and Engine Emission Regulations for the appropriate vehicles in its fleet. Beyond that, there are no specific requirements to reduce GHGs. 3.6 GHG EMISSIONS REDUCTION STRATEGY (ISO : clause 5.2 e, BC-Reg: Section 3, subsection 2 e) The project is expected to reduce emissions by replacing diesel buses in service on public transit routes with buses that are either more fuel efficient (e.g. diesel hybrid) or that use lower GHG emitting fuels (e.g. electricity or hydrogen). By running these lower GHG emitting buses, there is a reduction of GHG emissions released into the atmosphere. BC Transit and TransLink Low Carbon and Electric Vehicle Offset Project 7

15 3.7 DETAILED PROJECT DESCRIPTION (ISO : clause 5.2 f, BC-Reg: Section 3, subsection 2 e.) Diesel-Electric Hybrid Buses Diesel-electric parallel hybrid technology provides for the conversion of kinetic energy from a transit bus during braking to electrical energy that can be stored in a battery and subsequently drawn upon to assist the propulsion engine during acceleration. Since the electric motor is available to provide initial acceleration to the bus, the diesel engine used in a hybrid can be of a smaller displacement and power output than an engine required to power the bus on its own. Also, the ability to use the electric motor s high torque at low revolutions per minute (rpm) reduces the load imposed on the diesel engine and allows it to be operated in a more steady state manner, thereby enhancing its efficiency. In addition, the hybrid-electric drive train configuration reduces overall fuel usage. Finally, there is no engine idle when a diesel-electric hybrid is stopped. The result is significant efficiency gains given that conventional diesel buses idle throughout stop and go traffic that is typical of urban environments. The combined effect of regenerative braking, smaller diesel engine, and optimized engine operation reduces fuel consumption by up to 30% (alongside a reduction in GHGs) compared to a regular, non-hybrid diesel transit coaches of equivalent type. Articulated Trolleys For trolleys, the energy to power the vehicles is provided by overhead electric wires, which is generated primarily from clean hydro-electric facilities in BC. Electricity consumption data indicate that GHG emissions are reduced by more than 96% relative to a new diesel bus of equivalent type, even when taking into account emissions associated with the production of hydro-electricity. BC Hydro Annual Reports state the share of electricity that is derived through clean sources every year. In 2011, this was 95 per cent (BC Hydro Annual Report, 2011). The trolleys included in this Project are for expansion and not replacement. These 34 articulated trolleys displace trips that otherwise would have been taken by diesel buses. Electric motors operate at a much higher efficiency rate than diesel engines. Electric motors are typically more than 90% efficient while diesel engines are typically 35-40% efficient. Since the production of electrical energy from hydro-electricity does not involve fossil fuels, there are few if any GHGs produced in association with generating this energy source. Only about five per cent (2011) of the electrical energy consumed in BC is derived from coal-fired or natural gas-fired thermal generating facilities (BC Hydro Annual Report, 2011). As a result, there is a low GHG intensity for trolleys compared to operating comparable diesel-powered articulated buses under the same operating conditions. Hydrogen Fuel Cell Hybrid Buses Used in a fuel cell, hydrogen combines with oxygen in the air to produce electricity to power the vehicle. At the point of consumption, there are no GHG or criteria air contaminant emissions produced; water is the only emission. The hydrogen supply for the hybrid bus fleet is produced from clean technologies. For the hybrid portion of the technology, it uses similar technology to BC Transit and TransLink Low Carbon and Electric Vehicle Offset Project 8

16 the diesel-electric hybrids, including efficiency with advanced energy storage devices and brake energy recovery which result in reduced fuel consumption. 3.8 ESTIMATED GHG EMISSION REDUCTIONS AND REMOVAL ENHANCEMENTS (ISO : clause 5.2 g, BC-Reg: Section 3, subsection 2 p) The project is expected to result in average annual emission reductions of 8, tonnes of CO₂e, or 96,579 tonnes of CO₂e over the 12-year crediting period. A further articulated diesel-electric hybrids may be added to this project in 2011 or (Approval in principle received February 2011; Specific Project Approval received April 2011). These buses are expressly included in this Project, under this Project Plan. If and when the buses are purchased and deployed, they will be added to the fleet and monitored in accordance with the rest of the project. Their potential emissions reductions have not been added to this estimation or project calculations to date. Table 2: Estimated Emissions Reductions over Project Lifetime Year Nova 40 Hybrids (tonnes CO₂e) New Flyer 60 Hybrids (tonnes CO₂e) New Flyer 60 Electric Trolleys (tonnes CO₂e) Hydrogen Fuel Cell Buses (tonnes CO₂e) Total Emissions Reductions (tonnes CO₂e) , ,109 1,170 3,197 1,071 8, ,190 1,173 3,204 1,071 8, ,190 1,173 3,204 1,071 8, ,190 1,173 3,204 1,071 8, ,190 1,173 3,204 1,071 8, ,190 1,173 3,204 1,071 8,638 BC Transit and TransLink Low Carbon and Electric Vehicle Offset Project 9

17 2016 3,190 1,173 3,204 1,071 8, ,190 1,173 3,204 1,071 8, ,190 1,173 3,204 1,071 8, ,190 1,173 3,204 1,071 8, ,190 1,173 3,204 1,071 8,638 Total 35,380 13,441 35,978 11,781 96, RISK ASSESSMENT (ISO : clause 5.2 h) Technical, financial, and other risks that may cause the project to not perform as planned and/or that may substantially affect the GHG emission reductions or removal enhancements achieved by the Project were considered and are documented in Table 3 below. Table 3: Project Risks Risk Identification Level of Risk Mitigation / Management Strategy Technical Risks Emissions reductions per vehicle km travelled from buses will be less than expected. Hydrogen fuel cell buses will underperform. Low Low/medium Ensure buses are running efficiently and up to specifications. If buses can be kept more efficient by accelerated maintenance regimes this will be considered (for both project vehicles and other vehicles in the fleet as well). Maintain strong liaison with bus manufacturer, fuel cell manufacturer and system integrator, as well as international hydrogen networks to gain benefit of wide experience as this technology progresses through its lifespan. Financial Risks BC Transit and TransLink Low Carbon and Electric Vehicle Offset Project 10

18 Risk Identification Level of Risk Mitigation / Management Strategy Hydrogen fuel cell buses will cost more than anticipated to run and maintain. Electricity costs will rise sharply. Project buses will be used less frequently than anticipated, leading to lower emissions reductions. Low Low Low Explore and enforce any applicable warranties on hydrogen components of the Project. BC Transit has a six year contract for the supply of hydrogen, providing price certainty for fuel. TransLink should consider any buying discounts or hedging opportunities presented as BC electricity costs are likely to go up over the mid-term. This risk is not expected to have major impact on project finances. Other Risks Ensure that buses are being used at the same level of activity as original baseline buses to meet the level projected in this Project Plan CONTACT INFORMATION (ISO : clause 5.2 i, BC-Reg: Section 3, subsection 2 b, c, d) Project Stakeholders South Coast British Columbia Transportation Authority (TransLink) Contact Name and Title: Company: Roles and Responsibilities: Address: Christine Dacre, Vice President, Financial Services South Coast British Columbia Transportation Authority (TransLink) Lead project contact for TransLink portion of project Kingsway, Burnaby, BC, V5H 4N2 Telephone: BC Transit and TransLink Low Carbon and Electric Vehicle Offset Project 11

19 BC Transit Contact Name and Title: Company: Roles and Responsibilities: Stephen James Brydon, Manager, Climate Action British Columbia Transit Authority (BC Transit) Lead project contact for BC Transit portion of project. Address: BC Transit 520 Gorge Road East, PO Box 610, Victoria BC V8W 2P3 Telephone: MVision Planning Contact Name and Title: Company: Roles and Responsibilities: Address: Matthew McDonagh, Principal, MVision Planning MVision Planning Development of revised Project Plan, development of quarterly Progress Reports, and annual Project Reports. TH4 9 East Cordova Street, Vancouver BC V6A 1K3 Telephone: mvisionplanning@gmail.com 3.11 RELEVANT POLICIES, SCHEMES AND/OR LEGISLATION (ISO : clause 5.2 j, BC-Reg: Section 3, subsection 2 b & d) Legal Requirements BC Transit and TransLink Low Carbon and Electric Vehicle Offset Project 12

20 BC Energy Plan Renewable Fuel Standard for Diesel All diesel sold in BC requires a share of biodiesel in provincial diesel supplies as of Since the project scenario is expected to consume less fuel than the baseline scenario, it is both appropriate and conservative to make assumptions regarding a lower GHG emission factor from fuel combustion. As a result, it will be assumed all fuel that would be consumed in a fuel switch/fuel efficiency project contains a 5 per cent renewable content. Note that any variances from the 5 per cent renewable content figure in the project will be noted and substantiated by way of documentation in annual project reports and will be subject to third party verification. Furthermore, instead of including a lifecycle analysis of renewable fuel production, which may or may not occur within BC, it will be conservatively estimated that emissions from renewable fuel production and combustion are zero. The Renewable and Low Carbon Fuel Requirements Regulation (RLCFRR) will reduce British Columbia's reliance on non-renewable fuels, help reduce the environmental impact of transportation fuels and contribute to a new, low-carbon economy. The RLCFRR provides a regulatory framework that enables the Province of BC to set benchmarks for the amount of renewable fuel in B.C. s transportation fuel blends, reduce the carbon intensity of transportation fuels and meet its commitment to adopt a low-carbon fuel standard. This legislation further supports British Columbia s goal to lower provincial greenhouse gas (GHG) emissions by 33 per cent by Renewable Fuel Requirement Gasoline Diesel 5 per cent renewable content in gasoline beginning in per cent renewable content in per cent renewable content in 2011 and onward The phased-in renewable fuel content figures for diesel fuel above are derived from the current Renewable and Low Carbon Fuel Requirements Regulation at the time of this revised document (November 14, 2012). Please note that the renewable fuel content for diesel was expected to increase to 5 per cent renewable content in 2012 and onward at the time the first version of this Project Plan was created. As a result of a policy change on February 20, 2012, the renewable fuel content for diesel will be 4 per cent renewable content in 2011 and onward with no mention of future increases. The proponents will monitor legal requirements and make note of any deviations in annual project reports to be verified by an independent third party. Greenhouse Gas Reduction (Cap and Trade) Act In the future, regulated caps may be imposed under this Act on transportation emissions covered in this protocol, which may cause fuel switch/fuel efficiency transport projects to be ineligible for offset creation at that time. Climate Change Incentives BC Transit and TransLink Low Carbon and Electric Vehicle Offset Project 13

21 BC Carbon Tax Though not a climate-change incentive, the BC Carbon Tax will act as an incentive to use less GHG intensive modes of transport. Because less fuel is used in the project, the tax creates an incentive for switching fuels or increasing efficiency. The proponents must consider this incentive when determining the impact of financial barriers to the project during baseline selection. The On-Road Vehicle and Engine Emission Regulations The On-Road Vehicle and Engine Emission Regulations, as part of the Canadian Environmental Protection Act, regulate levels of criteria air contaminants. There are regulations for particulate matter, nitrogen oxides, hydrocarbons and carbon monoxide. Only greenhouse gases of nitrogen oxides and methane are subject to regulation. Carbon dioxide is not regulated for transit buses and is therefore not a primary consideration for bus and engine manufacturers in vehicle design. Carbon dioxide emissions from vehicles are not currently regulated. Provided that transit vehicles (e.g. conventional diesel buses) meet the regulation s requirements for criteria air contaminants (and other requirements unrelated to greenhouse gas emissions), then the transit provider is able to choose vehicles for their fleet at their discretion. While the South Coast British Columbia Transportation Authority (TransLink) has as part of its mandate to provide a regional transportation system that supports provincial and regional environmental objectives, including air quality and greenhouse gas emission reduction objectives, there are no regulations specifying by how much or by which means. As a crown corporation, BC Transit is responsible for complying with the requirements of the Greenhouse Gas Reduction Targets Act and the Carbon Neutral Government Regulation to measure, report and offset regulated greenhouse gas emissions. The Province of British Columbia also provides an annual Shareholder s Letter of Expectations to BC Transit. The Letter of Expectations for 2010/11 required BC Transit to ensure that the Corporation s priorities reflect the government s goals of climate action initiatives and directs BC Transit to provide advice and support to the shareholder(s) on transit services and technologies that support government s environmental and climate change objectives ; however there are no specific regulations or targets applicable to BC Transit as part of these requirements ENVIRONMENTAL IMPACTS (ISO : clause 5.2 k, BC-Reg: Section 3, subsection 2 u) The project has no major environmental impacts beyond a reduction in GHG emissions. Minor positive environmental impacts include: Reduction in criteria air contaminants from diesel combustion; and BC Transit and TransLink Low Carbon and Electric Vehicle Offset Project 14

22 Testing and demonstration of cleaner public transit technologies leading to more widespread uptake worldwide. Minor negative environmental impacts include: Potential for hybrid battery disposal issues; and Potential for hydrogen fuel cell disposal issues STAKEHOLDER CONSULTATIONS (ISO : clause 5.2 l, BC-Reg: Section 3, subsection 2 v) Extensive stakeholder consultations were performed by BC Transit as far back as 2005 on switching the BC Transit fleet from conventional diesel buses to hydrogen fuel cell buses. Consultations were held with the community and a variety of industry stakeholders. Appendix 2: BC Transit PCT Background Request for Information Rev 8 Jun 05 Appendix 3: BC Transit PCT Background Whistler RSVP List The purpose of these consultations included that of soliciting valuable input to the feasibility study for the proposed Hybrid Fuel Cell Bus Purchase that will indicate how to meet the public policy, economic, technical and administrative challenges in a timely and logical manner PROJECT ACTIVITIES AND TIMELINES (ISO : clause 5.2 m, BC-Reg: Section 3, subsection 2 g) Table 4: Project Activities and Timelines Date Activity Significance June 2005 Early stakeholder consultations in the Resort Municipality of Whistler with communities and industry leaders (BC Transit). Stakeholder Engagement August 2007 BC Transit and BC Provincial Government announce that the contract for the 20 hydrogen fuel cell bus purchase has been awarded (BC Transit and BC Provincial Government). Contract Awarded BC Transit and TransLink Low Carbon and Electric Vehicle Offset Project 15

23 August 2007 Approval of Project # (2008 Conventional Bus Fleet Expansion) and Project # (2008 Conventional Bus Fleet Replacements) (TransLink). Project Approval. Board Reports provide Evidence of Additionality. September 2007 B.C. Premier Gordon Campbell announces the province will create a carbon trust (BC Provincial Government). Legislative framework for PCT is announced/created by the BC provincial government January 2008 Lifecycle assessment of diesel and hydrogen buses completed (BC Transit) Feasibility Assessment July pre-production fuel cell bus received for testing (BC Transit) Technology Testing October 2008 Approval of Project # (2009 Articulated Trolley Bus Fleet Expansion) and Project # (2009 Bus Fleet Expansion) (TransLink) Project Approval. Board Reports provide Evidence of Additionality. November 2008 Notice sent to manufacturer (New Flyer) to proceed with the production of 20 hydrogen fuel cell buses (BC Transit) Fleet Order/Procurement Feb 2009 First 60 New Flyer articulated electric trolley begins operations (TransLink) Commercial Start of Project 1 of 4 Technologies Operational May 2009 First New Flyer 60 articulated hybrid begins operations (TransLink) 2 of 4 Technologies Operational October 2009 News release about the arrival of the first hydrogen fuel cell bus in Whistler (BC Transit) Stakeholder Communication October 2009 First Nova 40 hybrid begins operations (TransLink) 3 of 4 Technologies Operational BC Transit and TransLink Low Carbon and Electric Vehicle Offset Project 16

24 January 2010 First hydrogen fuel cell bus begins operations (BC Transit) 4 of 4 Technologies Operational 4.0 IDENTIFICATION OF RELEVENT GHG SOURCES, SINKS AND RESERVOIRS 4.1 IDENTIFICATION OF PROJECT SSRS (ISO : Clause 5.3; BC_Reg: Section 3, subsection 2 m) Project SSRs were identified using the Protocol, which is the most relevant and current good practice guidance for this Project. To assist with confirming potential SSRs for the project, a project-specific activity and materials & energy flow diagram was prepared and is provided. Flow Figure 4: Process for the Project BC Transit and TransLink Low Carbon and Electric Vehicle Offset Project 17

25 Based on the above diagram, it was determined that the list of potentially relevant SSRs identified in the Protocol was an appropriate starting point for determining project-specific relevant SSRs, and did not exclude any potentially relevant SSRs. Potentially relevant project SSRs are summarized in Figure 5 and described in Table 5, taken directly from the Protocol. A final list of relevant SSRs is available in Section 4.4. Figure 5: Project SSR Diagram BC Transit and TransLink Low Carbon and Electric Vehicle Offset Project 18

26 4.1.1 DESCRIPTION OF THE PROJECT SSRS Description of projects SSRs is provided in the following table, taken directly from the Protocol. Table 5: Project Sources, Sinks and Reservoirs Descriptions Number Source, Sink or Reservoir (SSR) Description Controlled, Related or Affected Upstream SSRs P1 Facility and Equipment Construction All activities associated with the construction of facilities and equipment that would be required in order to facilitate a switch to hybrid, electric and hydrogen buses due to the project. Related P2 Transport Infrastructure Construction All activities associated with building new roads, trolley lines, and related infrastructure necessary for each type of bus transportation. Related P3 Extraction and Production of Diesel Fuel All activities associated with the extraction and production of diesel fuel from crude oil or other feedstocks (such as biomass in the case of biodiesel blends). This diesel fuel would be used as fuel for hybrid bus transportation. Related P4 Transportation of Diesel Fuel Transport of diesel fuel from the production facility to the end use location. Transportation may include shipments by truck, pipeline, rail or other mode, with associated GHG emissions. Related P5 Extraction and Production of Hydrogen Fuel All activities associated with the extraction and production of hydrogen fuel. This hydrogen fuel would be used as fuel for hydrogen bus transportation. Related P6 Transportation of Hydrogen Fuel Transport of hydrogen fuel from the production facility to the end use location. Transportation may include shipments by truck, pipeline, rail or other mode, with associated GHG Related BC Transit and TransLink Low Carbon and Electric Vehicle Offset Project 19

27 emissions. P7 Extraction and Production of Other Fuels All activities associated with the extraction and processing of fuels other than diesel and hydrogen. Related P8 Transportation of Other Fuels Transport of fuel from the production facility to the end use location. Transportation typically conducted by various means, including truck (e.g. propane) and pipeline (e.g. natural gas). Related P9 Extraction, Production and Transportation of Resource Fuel for Electricity Generation All activities associated with the extraction, processing, and transportation of various resource fuels for use in grid electricity generation. Fuel sources could include coal, refined petroleum, natural gas, uranium, etc., depending on the source of grid electricity. Related P10 Generation of Grid Electricity Generation of electricity from resource fuel. Generated electricity would be used as an energy source for public transit facilities and electric vehicles, where applicable. Related Onsite SSRs P11 Transport Infrastructure Maintenance All activities associated with maintenance of infrastructure necessary for each type of bus transportation. This would also include periodic replacement of key infrastructure components (e.g. bridges, etc.) as required. Controlled P12 Building and Facility Maintenance All activities associated with the maintenance of buildings and facilities involved in the project Controlled P13 Hybrid Bus Operation All activities associated with operation of hybrid buses. Controlled P14 Hybrid Bus Maintenance All activities associated with maintaining hybrid buses in operational condition including: Controlled BC Transit and TransLink Low Carbon and Electric Vehicle Offset Project 20

28 Minor repairs Major repairs / overhauls Fluid, filter and minor component replacement Battery maintenance and repair. P15 Electric Bus Operation All activities associated with operation of electric buses. Controlled P16 Electric Bus Maintenance All activities associated with maintaining electric buses in operational condition including: Controlled Minor repairs Major repairs / overhauls Fluid, filter, track carbons and minor component replacement. P17 Hydrogen Bus Operation All activities associated with operation of hydrogen buses. Controlled P18 Hydrogen Bus Maintenance All activities associated with maintaining hydrogen buses in operational condition including: Controlled Minor repairs Major repairs / overhauls Fluid, filter, and minor component replacement. Downstream SSRs P19 Facility and Equipment Decommissioning All activities associated with the end-oflife decommissioning, recycling and disposal of facilities and equipment that would be required in order to facilitate GHG reductions through adoption of fuel switch/fuel efficiency bus technology due to the project. Related BC Transit and TransLink Low Carbon and Electric Vehicle Offset Project 21

29 4.1.2 EXPLANATION OF SSR CATEGORIZATION All SSRs are categorized as either controlled, related or affected (C/R/A) based on their relation to the Proponent(s). The Proponent(s) is/are assumed to control all on-site SSRs, whereas upstream and downstream SSRs are assumed to be controlled by others, and thus are related to the project. 4.2 DETERMINING THE BASELINE SCENARIO (ISO : Clause 5.4, BC_Reg: Section 3, subsection 2 i) In order to calculate the amount of GHG emission reductions that have resulted from a particular project undertaking, it is necessary to first estimate the quantity of GHG emissions that would have occurred had the project not been implemented (i.e. business as usual ). This baseline takes into consideration the economic, political, and technological conditions within which the implementing entity would have operated into the future. This Project utilizes a historic benchmark approach to determining baseline fuel efficiency data. The use of historic benchmark data for determining a baseline is appropriate for public transit fuel efficiency/fuel switch projects because transit authorities possess quality historical data. Historic benchmark baseline approaches are questionable when the pattern of use for a new fuel efficiency/fuel switch project takes place in a manner that was materially different from the historical benchmark. In this Project, however, the Proponents shall be using the new buses at the equivalent level of activity as existing buses IDENTIFICATION OF BASELINE ALTERNATIVES (ISO : Clause 5.4, BC_Reg: Section 3, subsection 2 i (i)) Potential baselines for fleet composition and operations of BC Transit and TransLink were generated through examination of procedures at the start of the project, literature review and good practice guidance review by the project documentation team. Baseline scenario components for each of the two project proponents (BC Transit and TransLink) have been examined separately as the outcome of one does do not materially affect the other. BC Transit potential baselines for the Project include the following: 1. Conventional diesel bus technology used for all existing, replacement and expansion buses in BC Transit fleet. Diesel bus technology makes up the bulk of public transit fleets in British Columbia and throughout North America. This baseline scenario represents a continuation of status quo at time of project start. 2. All fleets switch existing diesel buses over to 100 per cent biodiesel (B100) or other biodiesel blends. 3. Diesel hybrid technology selected to replace BC Transit fleet in Whistler. 4. Project Case: BC Transit replaces entire fleet with hydrogen buses. BC Transit and TransLink Low Carbon and Electric Vehicle Offset Project 22

30 TransLink potential baselines for the Project include the following: 1. Conventional diesel bus technology used for all existing and expansion buses in TransLink fleet. Diesel bus technology makes up the bulk of public transit fleets in British Columbia and throughout North America. This baseline scenario represents a continuation of status quo at time of project start. 2. TransLink will use conventional diesel buses on routes without overhead wires, and expand the fleet of electric trolley buses for use on routes with existing overhead wire infrastructure. 3. All fleets switch existing diesel buses to use 100 per cent biodiesel (B100) or other biodiesel blends. 4. Project Case: TransLink purchases a mix of hybrid and electric trolley buses for use across Metro Vancouver EVALUATION OF BASELINE ALTERNATIVES AND SELECTION OF BASELINE SCENARIO (ISO : Clause 5.4, BC_Reg: Section 3, subsection 2 i (ii)) The potential baseline candidates were used to select the most appropriate baseline scenario for the project. Note that all potential baseline scenarios deliver equivalent levels of service. Table 6: Potential Baseline Scenarios Baseline Approach Discussion of Suitability BC Transit BCT1. Conventional diesel bus technology used for all existing, replacement and expansion buses in BC Transit fleet. This baseline scenario represents a continuation of status quo at time of project start date. This baseline represents a continuation of historical practice at the time of project initiation. Diesel bus technology makes up the bulk of public transit fleets in British Columbia and throughout North America. Diesel buses are the most inexpensive option available, with strong reliability records. Infrastructure required to run a fleet of conventional diesel buses already existed in the Resort Municipality of Whistler prior to project initiation. BCT2. All fleets switch existing diesel buses over to 100 per cent biodiesel (B100) or other biodiesel blends. This baseline is unlikely due to cost, technical uncertainty and fuel availability and reliability issues. B100 biodiesel is more expensive than petroleum diesel, and does not currently have a robust supply chain in British Columbia. The Vancouver Biodiesel Co-op and Recycling Alternative run a B100 pump for members ( but this service relies BC Transit and TransLink Low Carbon and Electric Vehicle Offset Project 23

31 Baseline Approach Discussion of Suitability on small batches of high grade biodiesel, and has occasionally had supply issues since inception. Also, using a high share of biodiesel such as B100 will void the manufacturer s warranty. B100 also coagulates or gels at temperatures often found in British Columbia during winter months, making it infeasible for use. Lower per centage biodiesel mixes could be used to avoid gelling, but environmental benefits from use of biodiesel would be reduced. BCT3. Diesel hybrid technology selected to replace BC Transit fleet in Whistler. Retrofitting the BC Transit fleet in Whistler with diesel hybrid technology would yield a lower GHG-emitting baseline than continuing operations with conventional diesels. The infrastructure required for this type of bus technology existed at project start. While expenses for diesel fuel would be lower, the purchase cost of hybrid buses greatly exceeds that of conventional diesel buses. BCT4. Project Case: BC Transit replaces entire Whistler fleet with hydrogen buses. This baseline case is unsuitable due to the barriers preventing the uptake of project technologies in the absence of incentives provided by the Project. New infrastructure investments such as hydrogen refuelling stations are required to accommodate a hydrogen bus fleet. Consequently, there are technological and financial barriers associated with this baseline. Further discussion of additionality is found in Section TransLink TL1. Conventional diesel bus technology used for all existing, replacement and expansion buses in TransLink fleet. This baseline scenario represents a continuation of status quo at the time of project start date. This baseline represents a continuation of historical practice at the time of project initiation. Diesel bus technology makes up the bulk of public transit fleets in British Columbia and throughout North America. Diesel buses are the most inexpensive option available, with strong reliability records. Infrastructure required to run a fleet of conventional diesel buses already existed in Metro Vancouver prior to project initiation. TL2. TransLink will use Electric trolley buses are significantly more expensive to BC Transit and TransLink Low Carbon and Electric Vehicle Offset Project 24

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