Am I eligible to become a participant of the Westport Carbon Project (WCP)?
In order to be eligible to join the Westport Carbon Project, participants must:
- have five (5) or more vehicles operating on a Westport or Cummins Westport (CWI) natural gas engine in the same geographic location,
- have purchased the natural gas vehicles after January 1, 2010,
- have signed the Carbon Emissions Reduction Transfer Agreement for the participating natural gas vehicles (NGV),
- complete an annual report of fuel consumption and mileage data for each NGV in the project, and
- complete an annual report to provide baseline diesel vehicle data.
Why do I need to submit operating data for diesel vehicles in my fleet?
The
Voluntary Carbon Standard (VCS) requires the determination of a diesel baseline standard to compare to the participating natural gas vehicles. Participants are required to enter the same operating data (mileage, fuel consumption, usage category etc.) for the diesel vehicles in their fleet.
If my fleet owns the carbon credits, why should I transfer them to Westport?
The Westport Carbon Project (WCP) has satisfied the extensive validation and verification processes as outlined by the
Voluntary Carbon Standard (VCS). Westport invested in this project to save individual fleets the significant costs associated with developing, registering, validating and verifying the emission reductions associated with operating natural gas fuelled vehicles.
Given the project costs and the volatile price of carbon on the voluntary market, it is unlikely that even the largest fleets would be able to generate enough carbon revenue to offset this investment. By joining the WCP, customers can realize an additional financial carbon benefit from operating natural gas fuelled vehicles without the costs of initiating their own carbon reduction projects.
What are the implications of signing over all credits to Westport?
By signing the Carbon Emissions Transfer Agreement (CERTA), participants surrender all rights to credits and benefits associated with the carbon emission reductions for natural gas fuelled vehicles. The customer also agrees not to sell, negotiate or authorize anyone else to make use of their greenhouse gas emissions reductions for the specific vehicle. This eliminates any double counting of credits.
How much is my fleet eligible for?
Westport will issue rebate cheques to all participants who have submitted annual reporting data. It is estimated that a natural gas heavy-duty truck reduces 40 tonnes of greenhouse gas each year and an average of 20 tonnes per year for natural gas buses in comparison to diesel baselines. The amount that your fleet is eligible for depends entirely on:
- operational data submitted for each vehicle specific to fuel consumption and mileage and
- the fair market value of over-the-counter carbon offsets on the voluntary carbon market.
How does the program work?
To join the Westport Carbon Project (WCP) purchasers of the Westport HD and CWI ISLG engines must sign the Carbon Emissions Transfer Agreement (CERTA) for the participating natural gas vehicles in their fleet. This agreement transfers ownership of any carbon emission reductions and associated credits to Westport.
The participant is required to complete the WCP Annual Reporting Form. This form can be completed online by logging on to the Westport Carbon website or downloaded and faxed, mailed or emailed to carbon@westport.com. The completed form will provide the necessary data to report the amount of greenhouse gas reduced for each vehicle in each year. The form requires reporting of specific fuel consumption for CNG, LNG, renewable natural gas (RNG) and/or diesel and the annual distance driven. In your fleet’s first year of participation, reporting requirements also include providing data on equivalent diesel vehicles in order to develop an emissions baseline.
Once the carbon emissions reductions have been calculated, they are verified by a third party. The verifier may contact a random sample of project participants to confirm their reporting figures. Once verified, Westport will receive credits and may sell them to a company needing to offset their emissions via the APX Registry (www.vcsregistry.com). Westport will provide customers with an annual rebate cheque reimbursing participants for each credit accrued from your natural gas vehicles.
I have a natural gas vehicle with an ISL G engine. Who is Westport Innovations?
Westport Innovations Inc. and Cummins Engine Company are the parent companies of the joint venture selling Cummins Westport natural gas engines such as the ISLG.
What if the country my vehicles operate in regulates carbon emissions?
The Westport Carbon Project (WCP) operates within the voluntary carbon market. If the country in which the vehicles operate regulates carbon emissions through a cap and trade regime or other mechanism, this may invalidate your participation in the WCP as the emissions may now be used for compliance purposes.
What if I sell my natural gas vehicle?
As per the Certified Emissions Reduction Transfer Agreement (CERTA), the participant agrees to tell the purchaser about the Westport Carbon Project and direct them to the
Westport Carbon website.
What if my vehicle is in an accident and taken out of service?
As per the Certified Emissions Reduction Transfer Agreement (CERTA), the participant agrees to notify Westport via the
Westport Carbon website if the vehicle is in an accident and taken out of service.
What will Westport do with the submitted operational data?
Westport will use the operational data provided in the WCP Annual Reporting Form solely for the purpose of calculating the emission reductions generated and registering the associated carbon credits.
What are the administrative costs?
The administration fee shall be the greater of 10% of the transfer payment amount OR an annual fee of US $100. For example, if your fleet generated 600 tonnes of emission reductions in a calendar year, the administration fee would be $300. (600 tonnes x $5 per tonne = $3,000 10% of $3,000 = $300).
If the transfer payment amount is less than US $100 then Westport will have no obligation to make any payment and the participant is under no obligation to pay any administration fee.
What if I don’t want to participate in the Westport Carbon Project (WCP)?
Participation in this program is entirely voluntary. Westport is unable to send carbon rebate cheques to customers who do not complete the required Carbon Emissions Reduction Transfer Agreement (CERTA) documentation and/or submit the required fleet data.
Where can I get more information?
