What is the Environmental Tracking Network of North America (ETNNA)?

ETNNA is a voluntary association of certificate tracking systems, regulators and interested market participants that are vested in promoting harmonization among certificate tracking systems in North America.  Such harmonization will encourage trade, create a common currency for renewables, prevent double counting, and support existing and emerging markets for renewables. ETNNA will provide a discussion forum and the administrative support for developing voluntary standards among tracking systems, resolving common problems, and exchanging information on renewable certificate issues as they emerge in the marketplace.

Why Create an Environmental Tracking Network of North America?

States and Provinces in North America are actively pursuing various types of renewable energy incentives and policies for which tracking/accounting systems are a particular benefit. Several national and bi-national certificate tracking/accounting systems are in development or are currently operating. Overall, these systems focus on their own intra-state/regional needs to the exclusion of inter-state, national, and international market needs. However, since renewable certificates are commonly traded between regions and countries, it is important that market participants are able to transfer certificates between tracking systems without risk of double-counting.  Right now, mechanisms for transferring certificates between regional tracking systems are badly needed to support the growing North American voluntary market for renewable certificates.

A coordinated network of accounting systems is the most effective way to avoid double counting and related consumer protection problems.  Moreover, the potential passage of a national RPS program where renewable certificates are used for compliance monitoring underscores the need for a coordinated system that is compatible with state, regional and national programs. The time to act is now, while only a few tracking systems are operating and several others are under development.

What States Have or are in the Process of Developing REC Tracking Systems?

There are six systems already tracking renewable generation: The Texas (ERCOT) RECS Program, the New England (NEPOOL) Generation Information System, the PJM Environmental Information System (Pennsylvania/New Jersey region) and the New Jersey Solar Renewable Energy Certificate Program, WREGIS (WECC - 11 western states, two Canadian Provinces and northern Mexico), and M-RETS—the Upper Midwest (includes six U.S. states and Manitoba). Several other states or regions are looking into the feasibility of developing their own systems.

When Was ETNNA Incorporated?

ETNNA has been operating as a program of CRS since April 2005, known as th North American Association of Issuing Bodies (NAAIB). ETNNA launched in February 2008 as an independent nonprofit organization.

How is ETNNA Funded?

ETNNA received seed funding from the U.S. Department of Energy and is also supported by fees from Council Members and stakeholder members.

What is the International Significance of ETNNA?

Renewable certificates were issued and traded between utilities in some European countries several years ago. It became immediately apparent to the various parties involved that unless the systems were coordinated and normalized, it would be difficult if not impossible to have cross border trading of renewable certificates. As a result, a European Association of Issuing Bodies (AIB) was developed to support normalization of the different country accounting systems.

We have recognized a similar need here in North America and decided to build upon the concept first initiated in Europe. We have been taking advantage of the many hours of deliberation that resulted in the creation of the European AIB Basic Commitment (minimum standards for tracking system operators) and are using many of their ideas in the development of a ETNNA. In the future, we anticipate ETNNA will be fundamentally compatible with the European system(s), paving the way for internationally recognized renewable certificates, as such markets develop. Japan and Australia are involved in similar coordination effort.