SAIF Corporation Greenhouse Gas Inventory. Tracy Meyer 03/24/2010

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1 Tracy Meyer 03/24/2010

2 Table of Contents Executive summary... 3 Methodology... 3 summary information Scope I emissions... 7 Fleet... 7 Natural gas... 8 Fugitive refrigerants... 8 Diesel generator emissions... 9 Scope II emissions Purchased electricity Total energy consumption Scope III emissions Air travel Solid waste Employee office commute emissions Embodied emissions of purchased office goods and services..15 Conclusion

3 Executive summary SAIF s Scope I and II greenhouse gas emissions decreased by three percent over its 2008 emissions. For calendar year 2008, SAIF s Scope I and II emissions totaled 4,461 MT CO 2e, and for they totaled 4,313 MT CO 2e. As you will see below, in most areas we have increased emissions slightly. Our major decrease, which offset the increases, was fugitive refrigerants, only because in 2008 we had an atmospheric release of refrigerants due to a failed chiller and in we did not. Overall, there was little meaningful change from 2008 to emissions. It is evident that additional years of data will allow more meaningful comparisons and strategy to lower emissions. Starting in we collected monthly energy data from all locations, including leased locations where we do not pay the bill, so we can easily see rises and falls in use. Prior to we received some of this information on an annual basis with no detail to determine accuracy or compare monthly. For 2010 we need to identify specific areas and strategies to lower emissions, especially electricity. Changes made in should improve 2010 emissions-- for example the new chiller in High Street building. Other strategies are noted below. Methodology The 2007 greenhouse gas inventory was completed by Good Company, which also provided a workbook template for future inventories. The workbook was used to complete the 2008 and inventories and to compare with the base year of This report follows the same protocols and guidance as SAIF s 2007 greenhouse gas inventory. Please refer to the 2007 report for details. The inventory includes all of SAIF s office locations. The emissions by category are as follows: Scope I: Emissions from natural gas use, fleet fuel combustion, fuel used in generators, and fugitive refrigerants. These are direct sources of greenhouse gas emissions that originate from equipment and facilities owned or operated by SAIF. Scope II: Emissions from purchased electricity and indirect emissions as a result of imported electricity, heat, or steam Scope III: All other indirect sources of GHG emissions that may result from the activities of SAIF, but which occur from sources owned or controlled by another company, such as business travel by employees, outsourced activities and contracts, land-filled waste, and purchases Scope III was included in the 2007 inventory but not in 2008 and. The Climate Registry Reporting Protocol 1 requires including both Scope 1 and Scope 2 emissions data, but Scope 3 emissions are optional. This is because sources are not always 1 This inventory follows the methods described in the Climate Registry General Reporting Protocol, Version 1.1, May

4 directly controlled by SAIF, the data is not always easily found, and it may already be reported by others. We completed a Scope III analysis in 2007 as it was the base year and we wanted to include all emission sources for possible later comparison. A customized carbon calculator was developed by Good Company for SAIF and was used to calculate/estimate all emissions for this inventory. SAIF s emissions sources are shown by category in the figure below. Summary information Figure 1: SAIF s 2007 greenhouse gas (GHG) inventory results by Scope category and emissions source in metric tons of carbon dioxide equivalent (MT CO 2e ) , 2008, & estimated GHG emissions GHG emissions (MT CO 2e ) Scope I MT CO 2e Scope II MT CO 2e Scope III not completed in 2008 or Fleet Gas Refrig. Diesel Electricity Air travel Waste Commute Purchase

5 Figure 2: SAIF s greenhouse gas (GHG) inventory results by Scope category and emissions source in metric tons of carbon dioxide equivalent (MT CO 2e ) GHG emissions GHG emissions (MT CO 2e ) Scope III Purchase Employee Commute Solid Waste Air travel Electricity Diesel Generator Refrigerant Natural Gas 0 Fleet Calendar year Scope I & II Electricity 75% Fleet 14% Natural Gas 10% Refrigerant 1% Diesel Generator.03% As noted above, purchasing and employee commute were not calculated for 2008 or as they are not required as part of an emissions report. Electricity is our largest emission with 75 percent of the total Scope I & II. This isn t unusual for an insurance company, and does provide a large target for review and possible reduction. 5

6 Table 1: Summary of base-year emissions by Scope category, as well as normalized emissions per employee, per occupied building square foot, and per million dollars of revenue Calendar year Scope I Scope II Scope III Annual emissions per employee (Scope I&II) Annual emissions per occupied sq. foot (Scope I&II) Annual emissions per $1 million of revenue (Scope I&II) kg CO 2e /hund MT CO 2e /mil$ MT CO 2e MT CO 2e MT CO 2e MT CO 2e /ee sq ft ,034 3,061 5, ,321 3,140 na ,101 3,212 na Difference na vs -17% 2% -6% 9% Our emissions have, for the most part, stayed the same in 2007, 2008, and but our revenue has decreased, our number of employees has decreased, and square footage of building space has increased. Measuring emissions by revenue, number of employees, or square footage assists in putting the numbers in perspective and helps compare apples to apples. Although our number of employees decreased by four percent from 2008 to, our square footage increased by five percent. An example of the correlation between the data is our Portland office that increased in number of employees by 19 percent, square footage by 17 percent, and energy emissions by 26 percent 2. Although we have more employees and space in the new location, we hope our emissions will not rise overall as there are more energy efficient systems in the new space percent includes partial-year use of the old Portland space and new Portland space. 6

7 Scope I emissions Fleet In, the SAIF-owned fleet consisted of 120 vehicles that ranged in model year from 1993 to and in class from automobiles to light trucks. The average fuel efficiency for the owned fleet is (20.6 in 2008) miles per gallon (MPG) with a range in fuel efficiency from 8.39 to MPG 3. We have five hybrids which have MPG in the mid- 40s. The model year range and vehicle class of the employee-owned vehicles is unknown. The fuel efficiency for all employee-owned vehicles is estimated to be 23.7 MPG 4. Approximately 10 percent of the total miles driven in were from employee-owned vehicles used for business. Table 2: Annual fleet distance and fuel consumption converted to carbon dioxide equivalent (CO 2e ), and percentage of total Scope I and II emissions Total miles Total gallons Emission Percentage of total Scope I MT CO & II 2e emissions ,343,978 63, % ,398,283 66, % 1,560,581 68, % Difference 2008 vs 162,298 1, % The emissions calculation uses total number of gallons, so to reduce fleet emissions we must reduce the number of gallons used. This could be done by driving fewer miles or improving gas mileage. We will work to improve gas mileage by selecting appropriate vehicles for the job and location, including hybrids, electrics, and other appropriate lower miles-per-gallon vehicles. For the SAIF fleet we track the actual gallons used each year; for personal cars and Zipcars we track miles driven. Since emissions are calculated using gallons and not miles, we must use the average miles per gallon for personal cars and Zipcars to compute gallons from miles. To keep the calculation as accurate as possible, we should complete employer commute surveys every year or two to compute average miles per gallon on personal cars. To lower fleet miles, we may consider allowing increased use of Zipcars from employees home neighborhoods instead of driving to the office to pick up fleet vehicles. This would lower emissions when the appointments are close to the home or in the opposite direction from the office. The Service Center loss control representatives have begun to use the fleet located in Portland, and four new reps were recently hired. Since they service the entire state, we will see an increase in mileage, gallons, and emissions. Natural gas 3 This information is calculated annually by SAIF using fleet management software. 4 This information was determined by conducting an employee commute survey for the 2007 GHG inventory. 7

8 Natural gas is used to heat buildings and water (in some buildings) at seven offices (four owned, three leased). The NE Portland location is not shown below, as its energy consumption is minimal and we don t have actual data. The graph below uses MBTUs 5 instead of therms since electricity and natural gas are measured differently. Converting both to MBTUs allows easier comparisons. Figure 3: Comparison of actual natural gas consumption with an estimated benchmark based on the Commercial Buildings Energy Consumption Survey (CBECS) 6 4,000,000 3,500,000 Natural gas consumption comparision Thousands of BTU's (MBTUs) 3,000,000 2,500,000 2,000,000 1,500,000 1,000, , CBECS HSB PWB Church Portland Medford Baker Overall our natural gas usage has increased each year, but remains lower than average for comparable office buildings. Small reductions or increases in the amount of natural gas used could be caused by the weather. Many of the positive changes listed below under Electricity also affect and reduce natural gas emissions. As we plan for electricity reduction, we will also consider natural gas usage. Because natural gas is only 10 percent of total emissions, we will likely focus on electricity savings, as many changes we make to save electricity will also save natural gas. Fugitive refrigerants Refrigerants are compounds used in air conditioning and refrigeration units. They efficiently absorb heat undergoing a phase change from liquid to gas, which allows for the cooling of indoor space. Most refrigerants are in closed looped systems with no emissions. However, when new refrigerants are added or refrigerants escape, there are emissions. These emissions are hundreds to thousands of times as powerful as carbon 5 MBTU stands for one million British Thermal Units (BTU). BTUs are measures of energy consumption. 6 The Commercial Buildings Energy Consumption Survey (CBECS) is a national sample survey on commercial buildings, their energy-related characteristics, and their energy consumption. 8

9 dioxide. Therefore, a small amount of fugitive refrigerants can make a big difference in emissions. Table 3: The refrigerant types, associated emissions, and percentage of total Scope I and II emissions Emissions from: HCFC-22 Emissions from: HFC-134a Total emissions Percentage of total Scope I & II emissions % % % Difference 2008 vs % In 2008, a valve failed on chiller No. 1 at the High Street building, resulting in an atmospheric release of refrigerants. The chiller was replaced in. The air conditioning units on owned buildings are maintained quarterly and leaks are immediately repaired upon discovery. The emissions in were due to the amount of refrigerants added to our systems for operation. Emissions are generated or counted when refrigerants are added to existing equipment. 7 Diesel generator emissions Diesel fuel is purchased for back-up power generators that are used during testing and power outages. These generators are located at the Salem offices (Church Street and High Street). Table 4: Diesel consumed by back-up power generators, the associated emissions, and the percentage of total Scope I and II emissions Diesel fuel gallons Total GHG emissions MT CO 2e Percentage of total Scope I & II emissions % % % Difference 2008 vs % In extra diesel was purchased and the generators filled, which will likely result in less needing to be purchased in This purchase caused an increase in emissions, but mostly carbon dioxide, with small amounts of methane and nitrous oxide, so the large increase in gallons has little effect on total emissions. 7 Climate Registry General Reporting Protocol, Version 1.1, May 2008, page

10 Scope II emissions Purchased electricity The electricity purchased for use in its 12 office buildings and one parking structure represents the sole source of SAIF s Scope II emissions. Table 5: Total kwhs used by SAIF, the associated emissions, and percentage of total Scope I and II emissions Purchased electricity kwh Total GHG emissions MT CO 2e Percentage of total Scope I & II emissions ,948,131 3,061 75% ,023,911 3,140 70% 6,180,004 3,212 74% Difference 2008 vs 156, % SAIF purchases electricity from four Oregon utilities: Portland General Electric (PGE), Eugene Water & Electric Board (EWEB), Pacific Power, and Oregon Trail Electric. Each of these utilities has a unique generation mix, which is the type and percentage of resources used to produce electricity (hydro, coal, nuclear, natural gas, etc). This mix results in a unique utility emissions factor based on the percentage of fossil fuels in the mix and the type of fuel combusted. This is relative because some offices may use more electricity, but their emissions are lower because their mix of electricity comes from more environmentally friendly sources. Figure 4: Comparison of actual electricity consumption with an estimated benchmark based on the Commercial Buildings Energy Consumption Survey (CBECS) Electricity consumption comparison Thousands of BTU's (MBTU's) 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000, CBECS 10

11 This chart compares electricity usage in each location for 2007, 2008, and, and shows the overall average for an office of similar size in the same region. The High Street building far exceeds the average for a similar size building in the region (CBECS). However, it is more important for us to compare year-to-year on this particular building instead of against the average, because the average is for office buildings, and High Street houses our computer operations, print shop, and cafeteria. See below under total energy use for more details on each location s use. Administrative Services (ASD) has worked on the following, which should provide energy savings (electricity and natural gas) in 2010 going forward: Installed high-efficiency Liebert air conditioner in HSB computer room, with an expected energy savings of two percent of the building s total usage annually Installed high-efficiency, 250-ton air conditioner in HSB and variable frequency drives on chilled water and condenser water pumps, with an expected energy savings of 12 percent of the building s total usage annually Removed chilled water loop and remote chiller and replaced with point-of-use refrigerated water dispenser in HSB Replaced outside air and return dampers on floors three and four at the PWB for tighter control and more use of outside air for cooling. Replaced all incandescent lights at CSB with compact fluorescent light bulbs. Future plans include: We will upgrade our PGE energy load software, which gives us hour-by-hour information on electricity load in our Salem buildings. This will show when our electric loads increase or spike and we can compare and plan equipment usage to look for savings or issues. We are working to list all equipment start and stop times to correlate with our load data. ASD currently has the equipment programmed for optimal usage, so savings may be difficult to find. Each office will be reviewed for further energy savings, such as motion sensors and encouraging employees to turn equipment off at night. IS is working on applications to allow computers to be turned on remotely so employees can turn their work computers off even when they may need them remotely from home. As we purchase replacement equipment, we will continue to buy energy efficient models. Total energy consumption 11

12 Figure 6: Comparison of actual total energy consumption (natural gas and electricity) with an estimated benchmark based on the Commercial Buildings Energy Consumption survey (CBECS) Total energy consumption comparison (natural gas + electricity) Thousands of BTU's (MBTU) 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000, CBECS Table 6: Combined MBTUs of natural gas (converted from therms) and electricity (converted from kwh) MBTUs MBTU change 2008 vs Sq. ft change 2008 vs Empl# change 2008 vs CBECS (average for region) High St 13,640,088 14,408,904 14,235,494-1% 0-2% 10,951,820 Parkway 8,900,316 8,601,599 8,797,662 2% 0-13% 8,357,097 Church St 806, , ,283 4% ,763 Portland 1,663,885 1,824,171 2,292,592 26% 50% 19% 3,750,942 Eugene 474, , ,135 29% 0 15% 412,228 Bend 245, , ,708 8% 31% -6% 358,944 N. Bend 84, ,334 88,153-14% ,026 Pendleton 151, , ,914 10% ,091 Medford 428, , ,842 6% ,839 Roseburg 44, , ,225 8% 0 20% 147,503 Baker City 158, , , ,364 This is the same numerical information shown above in Figure 5. The green copy shows the lowest and most favorable amount of energy used. Four offices had their lowest usage in 2007, six had lowest usage in 2008, and none had lowest use in. Our goal is to have the lowest energy usage in the most recent year data for Roseburg cannot be verified as the space was leased and we did not pay the electric bill. The amount of energy used is very low and does not appear to be correct. 12

13 % change in energy use 120% 100% 80% 60% 40% 20% 0% 20% 40% Energy use changes from 2007 to 2008 and 2008 to HSB PWB Church Ptld Eugene Bend N. Bend Pendl Medf Rosb Baker 2007 to % 3% 2% 10% 30% 40% 21% 5% 8% 100% 2% 2008 to 1% 2% 4% 26% 29% 8% 14% 10% 6% 8% 0% It is helpful to compare data from several years when reviewing energy use. The chart above shows the change in energy use per location between 2007 and 2008, and between 2008 and. Some of the changes are easy to explain and others are not. Locations with notable energy or operations changes High Street New energy-efficient chiller was installed in the computer room in mid- that was estimated to save approximately two percent of the building s energy Future savings may be seen when equipment is modified for elimination of the mainframe. IS has also been utilizing virtual servers instead of more physical servers. Portland Moving offices resulted in an increase in square footage and employees In we utilized two office spaces for parts of the year as we were readying to move to the new space and moved employees in shifts. The new space has energy-efficient systems and equipment that may lower emissions even with the larger space. Eugene This is a leased space and prior to we had difficulty obtaining the energy use statistics. In we were given permission to get them directly from Pacific Power, so for we have the monthly amounts. Data from 2007 and 2008 is not confirmed to be correct and results in suspicious totals. The data shows a 30 percent decrease in energy use from 2007 to 2008, and 29 percent increase from 2008 to, but only a 10 percent difference from 2007 to total kwh are so low it appears the amount may not be correct. This office had a small increase in the number of employees in, but square footage stayed the same. Bend 13

14 Square footage was added in. North Bend Energy usage increased 21 percent from 2007 to 2008 and decreased 14 percent from 2008 to. There were no obvious reasons for the differences. Pendleton Pendleton continues to be SAIF s highest energy user per square foot. The building has an older furnace and a newer air conditioner instead of a heat pump, which makes it more inefficient. The building is brick and not well insulated. Roseburg Square footage increased in 2008 as a result of moving locations. Starting in 2008 we have actual monthly use amounts. Figure 6: Comparison of energy intensity of individual SAIF offices (BTUs of energy consumed per square foot of office space); values at the bottom of the bars show the building area in thousands of square feet total energy intensity by office Energy intensity (MBTU/SQFT) Climate Zone Climate Zone 3 Average = k 94k 10k 34k 7k 6k 2k 1k 7k 3k 2k Per square foot, Pendleton is still the heaviest user of electricity. Pendleton, Baker City, and all the Salem offices were above average for similarly sized buildings (average is 79 MBTUs per square foot). Scope III emissions Scope III emission sources include air travel, solid waste disposal in landfills, employee office commute, and embodied emissions within purchased office goods and services. 14

15 As stated in the introduction, Scope III measurement and recording are not required in greenhouse gas inventories as the sources are not always directly controlled by the reporting entity, the data is not always easily found, and it may already be reported by others. Scope III data was collected in 2007 to create a full baseline, but has not been collected in 2008 or. Air travel Because SAIF s business requires a relatively small amount of air travel, we do not currently track flown miles, it is not required by the Climate Registry, and we have not completed the emissions calculations. Solid Waste The solid waste calculation is based on the number of SAIF employees, the type of disposal plan in each geographical area, and a California Integrated Waste Management Board factor. Because it is not based on actual SAIF waste, it is marginally instructive, and we have not completed the emissions calculations. Employee-to-office commute emissions We conducted an all-employee commute survey for the 2007 greenhouse gas inventory but not for the 2008 or inventories. We plan to conduct a survey in 2010 or 2011 on commute information in order to facilitate comparison of 2007 data. Embodied emissions of purchased office goods and services The responsibility for embodied emissions in purchases is not equal to the responsibility for emissions produced directly by SAIF s operations and owned equipment, such as the burning of fossil fuels. We have not completed the emissions calculations for purchases because the information is not required by the climate registry. Conclusion Although overall emissions decreased slightly from 2008 to, the decrease was due primarily to one area: refrigerants. For the report, the third year of data allowed us to compare changes from 2007 to 2008 and then from 2008 to. The ability to compare more than two years showed that it was important for us to collect energy data directly from the utility company, as some of the older data may not be correct. Starting in we are collecting energy data monthly, directly from the utility company at all locations. Purchased electricity provided 74 percent of our emissions, so in 2010 we will focus on reviewing each building and its equipment. ASD is replacing equipment with energy-efficient models and has equipment programmed to run only when needed and in efficient modes. Although we will use some energy load software to look for issues in the Salem buildings, I suspect we will find that ASD is already working on solutions. A strategic plan for our fleet will be developed that will include environmental sustainability and emissions reduction. 15