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Home My WebLink About03.a. Update on Net Zero EvaluationPage 1 of 23 Item 3.a. F--1-448�411C-S0 July 19, 2023 TO: REAL ESTATE, ENVIRONMENTAL AND PLANNING COMMITTEE FROM: MELODY LABELLA, RESOURCE RECOVERY PROGRAM MANAGER REVIEWED BY: EDGAR J. LOPEZ, PROVISIONAL DIRECTOR OF ENGINEERING & TECHNICAL SERVICES GREG NORBY, DEPUTY GENERAL MANAGER ROGER S. BAILEY, GENERAL MANAGER SUBJECT: RECEIVE UPDATE ON NET ZERO EVALUATION In response to a request by the Board of Directors to bring back information for consideration of a potential policy on Net Zero greenhouse gas emissions, staff has issued a task order to GHD to complete an initial evaluation. Staff along with representatives from GHD will review the attached presentation, which provides background, an estimate of Central San's overall greenhouse gas emissions, where possible, and some preliminary ideas on areas for potential reduction or next steps. Strategic Plan Tie -In GOAL TWO: Environmental Stewardship Strategy 4 - Identify and advance sustainability initiatives, including reducing energy usage and emissions ATTACHMENTS: 1. Presentation July 19, 2023 REEP Committee Meeting Agenda Packet - Page 3 of 33 Page 2 of 23 July 19, 2023 REEP Committee Meeting Agenda Packet - Page 4 of 33 Page 3 of 23 DISCUSSION ON NET ZERO Melody LaBella, P.E. - Resource Recovery Program Manager Board Meeting April 21, 2022 3 PRESENTATION OVERVIEW • What is Net Zero? • Greenhouse Gas (GHG) Emissions Across the Value Chain • How to Implement • Challenges and Opportunities Possible Approaches Recommended Next Steps 4 41 July 19, 2023 REEP Committee Meeting Agenda Packet - Page 5 of 33 2 Page 4 of 23 WHAT IS NET ZERO? Net zero refers to a state in which the GHG emissions going into the atmosphere are balanced by removal out of the atmosphere. Generally, emissions are bounded by a `scoped' approach: Scope 1 — direct entity -owned or controlled GHG emissions occurring at the source; Scope 2 — GHG emissions associated with the production of energy consumed by an entity; and Scope 3 — indirect GHG emissions associated with an entity's activities from sources not owned or controlled by the entity. 5 GHG EMISSIONS ACROSS THE VALUE CHAIN 000000 Scope 2 Scope 1 INDIRECT DIRECT 7A Scope 3 Scope 3 INDIRECT INDIRECT p.r<a aue Upstream activities Reporting Company D.—stre.. activities o<>a, +��wkVGon v.eo.. wm ` t ul Source: Corporate Value Chain (Scope 3) Accounting and Reporting Standard by World Resources Institute and the World Business Council for Sustainable Development I July 19, 2023 REEP Committee Meeting Agenda Packet - Page 6 of 33 3 Page 5 of 23 EXPERT RECOMMENDATIONS ON HOW TO IMPLEMENT • There is strong international agreement across the climate community that net zero targets should: Include actions in all three scopes Reach net zero by 2050 Set interim targets Act immediately Process for net zero GHG emissions Initial GHG emissions footprint measurement (baseline) Strategic GHG emissions reduction initiatives Implementation of renewable energy solutions Carbon offsetting CHALLENGES AND OPPORTUNITIES Renewable Energy ranerto Gas Challenges Pmffle 7,313 WJR. 4 Feweretl Waae Heat 4,64a MMR. Feasibility Wa, y 30 M.3-q. Cost p97V B06% To[al MCE nen bele 38,235MME 4W MMAvailability 76% q. 0-61% Opportunities Central San has already taken some actions. Moving away from our natural gas cogeneration system would result in a dramatic reduction in Central San's Scope 1 emissions. 0 July 19, 2023 REEP Committee Meeting Agenda Packet - Page 7 of 33 4 Page 6 of 23 POSSIBLE APPROACHES Incorporate net zero into our Phase II solids handling evaluation by Brown & Caldwell (currently in process) Develop a Climate Action Plan, as cities have done to comply with Assembly Bill (AB) 32 requirements Commit Central San to net zero by 205C and develop a roadmap accordingly 0 RECOMMENDED NEXT STEPS Consultant evaluation Board workshop Draft a Board Policy 10 July 19, 2023 REEP Committee Meeting Agenda Packet - Page 8 of 33 5 Page 7 of 23 QUESTIONS/DISCUSSION 11 Actions Since April 2022 Pivoted to focus on Fleet Electrification in 2022 due to upcoming regulations Used an existing Board -approved contract with GHD for GHG evaluations and executed a-$100,000 task order for an initial Net Zero Evaluation for Central San on January 19, 2023 4 Participated in a kick-off meeting on January 30, 2023 Completed a major data gathering effort for Scope 1, 2 and 3 GHG emissions through May 30, 2023 _ 12 July 19, 2023 REEP Committee Meeting Agenda Packet - Page 9 of 33 6 Page 8 of 23 GHD's Scope of Work Develop a GHG Baseline Inventory and Visualization 1 Establish Boundary Collect and Quantify Data Organize Data and Develop Visualization Conduct a Scope 3 Emissions Screening' 7 Net Zero Evaluation Industry Benchmarking Evaluate Envision for Capital Decision -making Identify Reduction Opportunities and Planning -level Cost Considerations Provide Recommendations 13 14 July 19, 2023 REEP Committee Meeting Agenda Packet - Page 10 of 33 7 Page 9 of 23 15 16 July 19, 2023 REEP Committee Meeting Agenda Packet - Page 11 of 33 Page 10 of 23 TYPICAL PATHWAY TO CLIMATE LEADERSHIP — Inception meeting(s) — Clarity the vision, document expectations, identify key stakeholders and agree on a project plan — Review existing documents to understand current state 17 in 5-.a9PE-4q0�'PP—* — Evaluate current inventory, — Establish current and climate change mitigation future risks being faced and adaptation actions, related to your business strategies, policies and and the climate programs — Identify potential — Identify data gaps and mitigation and prioritize data collection adaptation responses — Conduct benchmarking of — Understand risks and industry best practice and realize co -benefits peers and regulatory to establish climate context — Translate risks to — Define the appropriate enterprise management metrics for your operations Process and systems and other applicable KPIs W — Establish net zero pathways — Plan for prioritization and for existing emission focused implementation of sources and quantify projects impacts of decarbonization — Develop net zero roadmap — Conduct workshops and desktop analysis to source — Develop communication optimal reduction plans (internal f extemal) approaches. Conduct detailed assessments for more tactical planning. — Track progress and success and communicate results — Set targets — Evaluate opportunities to — Wign with stakeholder expand scope to achieve expectations for disclosure long-term results Central San Net Zero Evaluation Update I July 2023 July 19, 2023 REEP Committee Meeting Agenda Packet - Page 12 of 33 9 Page 11 of 23 METHODOLOGY — Identified by Central San as a typical pre -pandemic year — Prior to site improvements to enable progress measurement. — All Scope 1 & 2 sources within Central San's operational control. — Expands beyond mandatory reporting requirements to include additional Scope 1 sources and Scope 2. — Preliminary screening and partial estimate of Scope 3. 19 19 BOUNDARY Central San Operational Boundary Scope 1 Direct Emissions — Energy consumption data was provided by Central San. — Default emission factors were sourced from the CARB. — Limited data (e.g., used spent data) for Scope 3 — The GHG Protocol: A Corporate Accounting and Reporting Standard. (Scope 1, 2) — WEAO tool (Process Emissions) — The GHG Protocol: Scope 3 Standard and Technical Guidance (Scope 3) — Aligned quantification methods with CARB mandatory reporting procedures for consistency. Emissions from Vehicle Process Biogenic From Purchased Combustion Omissions Emissions Emissions Electricity COi, CHa & N20 from CO2 from diesel NiQ CHq from CO2 from LFG & CO2 from imported NG combustion and gasoline aerobic treatment sludge combustion electricity from the + CHq & N20 combustion + fugitive NiQ grid emissions from LFG CHq from effluent & sludge combustion discharge 7 Typical includ Central San Net Zero Evaluation Update I July 2023 Outside Central San's Direct Control Scope 3 Indirect Emissions Indirect emissions associated with upstream & downstream activities (15 categories) Legend: Mandatory Vehicle Emissions Process Biogenic Electricity Up/Downstream 20 (Scope 1) (Scope 1) (Scope 1) (Scope 1) (Scope 2) (Scope 3) Central San Net Zero Evaluation Update I July 2023 20 July 19, 2023 REEP Committee Meeting Agenda Packet - Page 13 of 33 10 Page 12 of 23 CARB MANDATORY REPORTING 5019 Imhoff P1, Mattinez Treatment Plant (General) IIIIIIIZZIIIIIII MHZIIIIIII Cogen Auxiliary Auxiliary 18,031 IIIIIII Boiler 1 Boiler 2 Warehouse Admin HHWCF Mandatory 21 (Scope 1) 21 metric tCo2e/yr CARB Mandatory Reporting: • Boundary is the site boundary (5019 Imhoff PI, Martinez) • Reporting Direct CO2e from Combustion only • Currently not Reporting: o Indirect GHG emissions from imported electricity o Process emissions Central San Net Zero Evaluation Update i July 2023 EXPANDED BOUNDARY & SCOPE 2 metric tCo2e/yr 5019 Imhoff PI, Martinez ® ® Expanded Boundary & Scope 2: Treatment Plant (General) • Expanding the boundary to 1,138 883 757 Central San's operational boundary, i.e., collections HQ in Auxiliary Auxiliary Walnut Creek, vehicles and BoilerIIIIIIIZZIIIIIII pumping stations 18,031 Adding Scope 2 emissions, i.e., 2,169 1,188 indirect GHG emissions from imported electricity ® Does not include emissions from customers driving to/from the 8 24 2 3 4 HHWCF or Reuse Room. 528 Mandatory Vehicle Emissions 22 (Scope 1) (Scopel) 22 1,084 60 Electricity (Scope 2) Central San Net Zero Evaluation Update i July 2023 July 19, 2023 REEP Committee Meeting Agenda Packet - Page 14 of 33 11 Page 13 of 23 23 BASELINE EMISSIONS SUMMARY SCOPE 1 & 2 ANTHROPOGENIC EMISSIONS Excluding Process Breakdown by Scope Breakdown by Maior Sources Pumpingmations Tmnspwtation 1,084 SPH 4%_ 2% Tmatme,rt Plan=�� Scope 2 1,138 2,312 sx 9% 23 Unit: metric tCo2e/yr PROCESS EMISSIONS 0• Imhoff P1, Martinez Treatment Plant (General) IIIIIIIZZIIIIIII MHZIIIIIII 1,138 I IIIIIIIZZIIIIIII18,031 Auxiliary Auxiliary Boiler 1 Boiler 2 IIIIIII Warehouse Admin HHWZIIIIII 528 1,084 60 Mandatory Vehicle Emissions Process Electricity 24 (Scope 1) (Scope 1) (Scope 1) (Scope 2) 24 Breakdown by Energy Source Unleafied Diesel .1 — Central San Net Zero Evaluation Update i July 2023 metric tCo2e/yr Process Emissions: • Process N20 and CH4 from aerobic treatment, • Fugitive N20 and CH4 from effluent discharge. Central San Net Zero Evaluation Update i July 2023 July 19, 2023 REEP Committee Meeting Agenda Packet - Page 15 of 33 12 Page 14 of 23 PROCESS EMISSIONS Current Industry Approach Central San Process Emissions Estimate (20,625 tCO2e/yr) • The wastewater industry has become aware that process GHG emissions of N20 and CH4 are significant. Process N20 from Aerobic Treatment • A growing number of utilities are tracking process emissions, 15,629 including EBMUD, Toronto Water, MCES (MN), Metro Vancouver... • Globally, the UK, Europe, Australia and New Zealand all require Process process emissions to be included in water utility inventories. Several have country -specific emission factors or calculation approaches. 1,105 • In the US, methodologies & EF are available and improved upon with latest research (e.g., OWWA/ WEAO, WEF, WRF). They currently include: Fugitive N20 from Effluent Discharge ✓ process N20 and CH4 from aerobic treatment, 3,247 ✓ fugitive CH4 from AD, ✓ fugitive N20 and CH4 from effluent discharge. • There is no simple method yet to estimate CH4 from the sewer Fugitive CH4 from Effluent Discharge collection system. 644 • Process emissions are very site -specific. Next step would be to measure the real emissions (e.g., dissolved N20 probe). Unit: metric tCO2e/yr 25 Central San Net Zero Evaluation Update I July 2023 25 BIOGENIC EMISSIONS 5019Imhoff PI, Martinez Treatment Plant (General) 1111111=Z1111111 1111111=Z1111111 1,138 20,625 883 31,755 757 17,422 IIIIIIIZZIIIIIII Auxiliary Auxiliary 18,031 Boiler 1 Boiler 2 2,169 47 1,188 56 8 24 2 3 4 528 1,084 60 Mandatory Vehicle Emissions Process Biogenic Electricity 20 (Scope 1) (Scope 1) (Scope 1) (Scope 1) (Scope 2) 26 metric tCoze/yr Biogenic Emissions: • CO2 emissions from combustion of LFG and Sludge in the MHFs and Auxiliary Boilers Central San Net Zero Evaluation Update i July 2023 July 19, 2023 REEP Committee Meeting Agenda Packet - Page 16 of 33 13 Page 15 of 23 SCOPE 1, 2 & 3 EMISSIONS Scope 1: Direct Emissions • Facility emissions (MHFs, Cogen, Boilers...) Scope Scope INDIRECT DIRECT • Central San vehicles emissions Scope 2: Indirect Emissions • Purchased electricity (treatment plant, pumping stations...) Scope 3: Indirect Emissions • 15 categories associated with upstream & downstream activities 27 27 Scope 3 IM IM INDIRECT _Y= omm Scope 3 INDIRECT 1213 Fau��ies Source: https://ghgprotocol.omlsites/default/files/standards/Corporate-Value-Chain-Accountinq-Reporinq- Standard 041613 2.pdf SCOPE 3 SCREENING Central San Net Zero Evaluation Update I July 2023 Category tCO2e/yr Comment 1. Purchased Goods & Services 12,720 Based on 2022 spend data. 2. Capital Goods ?? Relevant, not calculated. Data not available for 2022. 3. Fuel- and energy- related activities 5,876 Upstream emissions for natural gas, electricity, gasoline & diesel not included in Scope 1 & 2 using 2019 baseline information 4. Upstream transportation and distribution 15 Transportation emissions from ash, sludge, grit and spoils removal. Based on spend data. 5. Waste generated in operations 586 Grit screenings and hazardous waste disposal. Does not include Central San MSW. 6. Business travel ?? Relevant, not calculated. Data not available for 2022 7. Employee commuting 570 Assume passenger cars and no commuting for teleworking staff. Teleworking emissions are not included in calculation. —20 % commuting emissions reduction with alternative schedule & telework. 8. Upstream leased assets n/a Not Relevant 9. Downstream transportation and distribution n/a Not Relevant 10. Processing of sold products ?? Relevant, not calculated. Data not available for 2022 11. Use of sold products n/a Not Relevant 12. End -of -life treatment of sold products n/a Not Relevant 13. Downstream leased assets ?? Relevant, not calculated. Data not available for 2022 14. Franchises n/a Not Relevant 15. Investments n/a Not Relevant 28 July 19, 2023 REEP Committee Meeting Agenda Packet - Page 17 of 33 14 Page 16 of 23 LIMITED SCOPE 3 EMISSIONS 5019 Imhoff PI, Martinez Treatment Plant (General) 1111111�21111111 �ZIIIIIII 1,138 20,625 883 31,755 757 17,422 1111111321111111 Auxiliary Auxiliary 18,031 Boller 1 Boller 2 2,169 47 1,188 56 8 24 2 3 4 528 1,084 60 Mandatory Vehicle Emissions Process Biogenic Electricity Up/Downstream 29 (Scope 1) (Scope 1) (Scope 1) (Scope 1) (Scope 2) (Scope 3) 29 30 m metric tcole/yr Purchased goods(#1) I Upstream emissions of NG, electricity, gasoline, diesel (0) Transportation emissions of ash, sludge, grit removal (#4) Grit Disposal (#5) Employee Commute (#7) July 19, 2023 REEP Committee Meeting Agenda Packet - Page 18 of 33 15 Page 17 of 23 CALIFORNIA NET ZERO TARGETS Eao Carbon Neutrality by 2045 zoa EXECUTIVE ORDER AB 1279 (2022) CARB B-55-18 THE CALIFORNIA 2022 SCOPING PLAN TO ACHIEVE CARBON CLIMATE CRISIS ACT FOR ACHIEVING NEUTRALITY CARBON NEUTRALITY 31 31 ` - Methane 100% clean Zero -emission electricity truck and bus fleet 40% below by 2045 by 2045 2013 levels by 2030 CARB SB100(2018) Advanced Clean Fleets SB1383(2016) F(4e� April ,23 ENVISION CONTRA COSTA I - 4 community -wide emissions tlown fo 79,854 MT COie WATER UTILITIES CLIMATE GOALS Central San Net Zero Evaluation Update I July 2023 Example benchmarkin0: V Reduce GHG emissions by 50 • Carbon neutral by 2045 DENVER from 2015 baseline THE METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA WAT E R WATER ORVi Net -zero emissions by 2050 Plan to publish targets in 2025 o arenwt•rChlea6o with intermediary targets v, PQ SE Y��C� WASTEWATER WATER �3 Water system: Carbon neutral by 2030 • Wastewater system: Zero indirect GHG emissions by 2040 and reduce direct EBMUD GHG emissions by 50 % over 2000 levels • Report on process emissions WATER WASTEWATER (79 % of total emissions) 32 32 • Reduce emissions by 80 % in 2050 (aligned with NYC commitment) Environmental Protection WATER WASTEWATER Central San Net Zero Evaluation Update i July 2023 July 19, 2023 REEP Committee Meeting Agenda Packet - Page 19 of 33 16 Page 18 of 23 CENTRAL SAN IS REDUCING ITS EMISSIONS Opportunity Status Potential Benefit to Reduce Central San's GHG emissions Installation of electric aeration Ongoing Reduce Scope 1 emissions due to reduced blowers to provide full redundancy steam demand and reduced natural gas firing to for steam driven aeration blowers produce steam. Flexibility to operate electric blower and potentially install steam turbine generator to convert steam to electricity. Optimize aeration by installing fine Ongoing Reduce Scope 1 emissions by optimizing bubble diffusers and enhanced DO aeration and reduce energy required to meet control aeration demand More efficient UV system Ongoing Reduce Scope 2 emissions 1.75 MW Solar PV project Ongoing Generate renewable energy and reduce Scope 2 emissions related to purchased grid electricity More efficient centrifuges Ongoing Reduce Scope 2 emissions by reducing electricity demand for dewatering operations. Potential for polymer savings (Scope 3). Lower power demands could also reduce cogen natural gas demands (Scope 1). Fleet electrification Ongoing Reduce Scope 1 emissions by reducing dependence on transportation fuel More efficient cogen To be Reduce Scope 1 emissions by reducing natural planned gas consumption 33 I a 1111:11:111111111:1 W91 9 :41 a WA 111M0i -------------------------- Source: Central San Preliminary Draft Fleet Electrification Report Central San Net Zero Evaluation Update I July 2023 MITIGATION OF PROCESS EMISSIONS 34 34 •from 1. Measure the real emissions with a dissolved N20 probe. Ac Treatment 2. AI/ML-based aeration control strategy (maintaining the right DO) might get 15,629 5% to 50% reduction (site specific). 3. SRT control to ensure denitrification is complete with enough carbon, and managing ammonia loadings if possible (less of an issue at Central San, more of an issue at plants with AD and intermittent ammonia sidestreams). . - 1. Measure the real emissions (e.g., from OCUs) • 2. Emissions could be from headworks buildings and aerated grit where dissolved 11105 sewer -generated methane is being stripped, primaries especially splashing launders which can be exacerbated if carrying a septic sludge blanket, the front end of aeration where dissolved methane is stripped, and sludge handling (storage tanks and hoppers). • . 1. Reduce the discharge of BOD and total nitrogen (TN) 2. E.g., a BNR system removing TN will have lower effluent N20 because of the lower 3,247 + 644 effluent TN. (However, process N20 is currently calculated based on influent N, and would not change, even though in theory the process may emit less N20.) Central San Net Zero Evaluation Update I July 2023 July 19, 2023 REEP Committee Meeting Agenda Packet - Page 20 of 33 17 Page 19 of 23 OTHER POTENTIAL NET ZERO ADVANCEMENT OPPORTUNITIES Scope 1 and Scope 2 emissions reduction opportunities ✓ Continue to expand renewable energy program (e.g., solar, wind) ✓ Consider additional energy efficient power generation equipment (e.g., gas turbine, lean burn IC engines, fuel cells) ✓ Optimize pumping systems and increase pumping efficiency— Pilot with Aquasight at influent pump station ✓ Screenings to incineration ✓ Consider FOG as supplemental fuel for incineration Scope 3 emissions reduction opportunities ✓ Optimize chemicals consumption e.g., eliminate/reduce lime for dewatering ✓ Explore other opportunities (e.g., sustainable procurement, leased assets) 35 35 OPTIMIZE PUMP ENERGY CONSUMPTION (and reduce maintenance costs) Low impeller We Dischar Low bearing 9a and low seal . O Orecn rculah- life cavc nation • O v High temperawre rise suc€jan m recirculation = Low bearing -� and low seal life Best Efficiency Point cavnarion Flow Source: GHD Central San Net Zero Evaluation Update I July 2023 OFFSETTING REMAINING EMISSIONS cot — Purchase of alternative energy sources and/or carbon offset credits is a viable approach to bridging the gap between emissions that can be reduced through capital or operational improvements to achieve a goal or target such as net zero 36 36 Primary approaches available to Central San include: • Increasing renewable natural gas (RNG) usage (to replace their natural gas consumption) • Acquiring low carbon or zero carbon power (renewable energy or "green" power) • Purchasing carbon credits or offsets Needs to be rooted in a strong business case given the short- and long-term cost • Represents an annual cost that must accounted • Cost vary depending on approach and source • Annual cost could range from $1 to $10M per year Central San Net Zero Evaluation Update I July 2023 July 19, 2023 REEP Committee Meeting Agenda Packet - Page 21 of 33 18 Page 20 of 23 BACKGROUND ON CARBON OFFSETS COZ Compliance Markets — Robust market structure with well defined supply & demand — Participants must reduce their annual emissions — Stable offset values in -line with market pricing (i.e., $/tCO2e) — Typically less offset project protocols and eligible activities than a voluntary market — May be subject to market volatility based on policy and government Voluntary Markets — Less market structure than a compliance market in terms of supply and demand — Anyone can participate — Higher variation in offset value (i.e., $/tCO2e) — Typically more offset project protocols and activities available 37 37 OFFSETS OPTIONS V R Low Carbon Power — PG&E 100% Solar Choice currently halted by CPUC. Potential new enrollments in 2025. — Options available from MCE to purchase 61 % ($0.26/kWh) or 100% ($0.27/kWh) renewable power — $1.8M (61 % renewable) to $1.9M (100% renewable)/yr 38 38 Most Relevant Offset Opportunities — Forestry • Reforestation/Afforestation • Urban forest management • Improved Forest Management (IFM) — Wetland restoration (Pocosin, California Deltaic and Coastal) — Carbon capture and storage — Plugging abandoned and orphaned oil and gas wells (methodology in development with ACR) r V} Renewable Natural Gas — Important to balance carbon intensity of RNG with cost (e.g., LFG vs Dairy RNG) — $5M (replacing all NG by LFG) to $9M (20% blend with -250 Cl RNG 4 net zero on NG) Estimated RNG Selling Prices: • Landfill (CI 50): 20-35 $/MMBTU • WWTP:25-40/MMBTU • Food waste : $25-45/MMBTU • Agri -waste (Cl -250) : $50-120/MMBTU Cl: Carbon intensity in kgCo2e/MMBTU 2 • •� Carbon Offsets — Voluntary market to offset Scope 1 & 2 emissions - $0.25M to $1.1 M /yr — Compliance/Regulated Market Scope 1 & 2 emissions - $0.93M to $1.9M /yr Central San Net Zero Evaluation Update I July 2023 July 19, 2023 REEP Committee Meeting Agenda Packet - Page 22 of 33 19 Page 21 of 23 39 POTENTIAL NEXT STEPS DISCUSSION 1. Estimate anticipated emissions reductions from capital projects since 2019 baseline 2. Further evaluate potential actions/projects with associated 'iigh-level cost estimates for planned and potential actions for Central San to reduce GHG emissions 3. Measure actual process emissions 4. Collect data to more accurately estimate Scope " GHG emissions ao 40 Central San Net Zero Evaluation Update I July 2023 July 19, 2023 REEP Committee Meeting Agenda Packet - Page 23 of 33 20 Page 22 of 23 My Observations GHD needs to know our goals in order to properly guide us. Scope 1 and 2 emissions will slowly reduce over time with improvements in efficiency, "greening" our energy sources and transitioning to zero emissions fleet vehicles. Scope 3 emissions are the abyss. Beyond the reductions we'll make over time, the only way to get to Net Zero is buying offsets for the remainder. ~ 41 Potential Path Forward Focus on Scope 1 and 2 emissions only and create a road map of reductions Central San will achieve over time Could brand this as a Climate Action Plan (SRF Benefit) ! �" Set a greenhouse gas reduction target based on planned projects and actions . Could add in certain Scope 3 emissions within Central San's control Could consider going beyond our existing plans/ commitments 42 July 19, 2023 REEP Committee Meeting Agenda Packet - Page 24 of 33 21 Page 23 of 23 43 July 19, 2023 REEP Committee Meeting Agenda Packet - Page 25 of 33 22