2016-12-13T13:27:19-06:00 2016-06-30 946214841 Armanino LLP 11766 Wilshire Blvd Ninth Fl Los Angeles CA 90025 990 2015-07-01 680477330 Climate Action Reserve CLIM 2138911444 601 W 5th Street No 650 Los Angeles CA 90071 Craig Ebert President 2138911444 2016-12-13 1 Thomas Schulte P00637812 3104784148 2015 2017-02-10 21:41:12Z CRAIG EBERT 601 W 5th Street No 650 Los Angeles CA 90071 3588907 0 1 X www.climateactionreserve.org X 2001 CA To develop, promote and support innovative, credible market-based climate change solutions that benefit economies, ecosystems and society. The Climate Action Reserve was approved by the California Air Resources Board (ARB) in 2012 to serve as an Offset Project Registry in accordance with the regulations implementing the California cap-and-trade program. The Reserve has had many of the offset projects in its system recognized by the ARB for rewarding early actions to reduce greenhouse gas emissions and six Reserve offset protocols have been adopted by ARB for use in the compliance offset system under the cap-and-trade program. 15 15 24 15 0 0 385024 619894 2757258 2968439 264 421 45418 153 3187964 3588907 0 0 0 0 2284696 2009225 0 0 241314 954268 1144116 3238964 3153341 -51000 435566 7314555 9306671 5619788 7176338 1694767 2130333 X To develop, promote and support innovative, credible market-based climate change solutions that benefit economies, ecosystems and society. The Climate Action Reserve was approved by the California Air Resources Board (ARB) in 2012 to serve as an Offset Project Registry in accordance with the regulations implementing the California cap-and-trade program. The Reserve has had many of the offset projects in its system recognized by the ARB for rewarding early actions to reduce greenhouse gas emissions and six Reserve offset protocols have been adopted by ARB for use in the compliance offset system under the cap-and-trade program. 1 0 1971570 2353908 The Climate action reserve is an international carbon offsets program focused on ensuring environmental integrity of GHG emissions reductions projects to create and support financial and environmental value in the North American Voluntary Carbon Market, the California Cap-and-Trade program, and international cap-and-trade programs. It does this by establishing high-quality standards for quantifying and verifying GHG emissions reductions projects, overseeing independent third party verification bodies, and issuing carbon credits generated from such projects and tracking the credits over time in a transparent, publicly-accessible system. These standards not only ensure the environmental integrity of using offsets, but they also bring credibility and efficiencies to the carbon market by creating a trusted and valued commodity. 399793 571361 The Climate Action Reserve is also active in the development of climate change policy. As a non-partisan organization, the Climate Action Reserve works to bring together thought leaders on climate change, including policymakers, businesses, academics and a variety of NGOs to advocate for globally standardized greenhouse gas reporting and measurement standards. In 2016 the Climate Action Reserve successfully hosted the 14th annual Navigating the American Carbon World Conference in San Diego. Over 500 climate professionals gathered for information, discussion and networking to advance market-based solutions to climate change. The Climate Action Reserve also hosted several panel discussions at COP21 in Paris, France, that allowed the international climate community to gain a deeper understanding of the pioneering initiatives in California and other subnational and national governments. The Climate Action Reserve also regularly hosts workshops, presentations and seminars on a variety of climate policy topics including carbon markets. 60475 43170 In FY2016 the Reserve continued to engage in international initiatives. This work has included the development of international emissions reduction standards, collaborating with partners and serving as an expert consultant for governments and others. In FY2016 the Reserve continued to pilot forestry projects in rural Mexico to test the Mexico Forest Project Protocol, and led a delegation of Chinese officials to California and Mexico to learn about forest offset projects. The Reserve also formed a partnership with the China Beijing Environment Exchange, The Climate Registry and the Innovation Center for Energy and Transportation to design and implement carbon market training programs in China. This initiative aims to equip professionals with the experience and understanding needed to create functioning carbon markets. 2431838 1 1 0 0 0 0 0 0 0 0 1 0 0 1 1 0 1 0 0 1 1 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 11 0 1 24 1 0 0 0 0 0 1 1 0 0 0 0 X 15 15 0 0 1 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 CA X X X Gillian Calof 2135420281 601 W 5th Street No 650 Los Angeles CA 90071 Linda Adams Board Chair 1.00 X X 0 0 0 Peter Liu VICE CHAIR 1.00 X X 0 0 0 Peter M Miller SECRETARY 1.00 X X 0 0 0 Jeffrey Kightlinger TREASURER 1.00 X X 0 0 0 Jan Schori AUDIT COMMITTEE CHAIR 1.00 X 0 0 0 Steve Corneli Board Member 1.00 X 0 0 0 Cynthia Cory Board Member 1.00 X 0 0 0 RODOLFO LACY TAMAYO Board Member 1.00 X 0 0 0 JOHN LAIRD Board Member 1.00 X 0 0 0 MELISSA A LAVINSON Board Member 1.00 X 0 0 0 BETSY MOLER Board Member 1.00 X 0 0 0 HEAther O'Neill Board Member 1.00 X 0 0 0 TIM PROFETA BOARD Member 1.00 X 0 0 0 DR Stephan Schwartzman BOARD MEMber 1.00 X 0 0 0 NANcy Sutley Board Member 1.00 X 0 0 0 Gary Gero Former President 40.00 X 210389 0 39610 Craig Ebert VP Policy / President 40.00 X 51288 0 6820 Ramon Lee Controller 40.00 X 95987 0 26989 John Nickerson Director of Forestry / VP of Forestry 40.00 X 120979 0 41056 Rachel Tornek Program Director / VP Program & Policy 40.00 X 102814 0 18143 Gillian Calof Operation Director / VP of Operation 40.00 X 107511 0 18786 688968 0 151404 4 0 1 0 Blue Shield of California 120 Sansome Street San Francisco CA 94105 HEALTHCARE 209913 LHREV One Bunker Hill LP 601 W 5th Street Suite 650 Los Angeles CA 90071 OFFICE RENT 200353 Manchester Grand Hyatt Hotel 1 Market Pl San Diego CA 92101 EVENT FACILITIES 170167 0 619894 619894 Contract Income 900099 2582557 2582557 Conference Registratio 900099 261119 261119 Fee Income 900099 110242 110242 Workshop Income 611600 14521 14521 2968439 421 421 Miscellaneous Revenue 900099 153 153 153 3588907 2968439 0 574 445149 188796 231853 24500 1201440 960287 109437 131716 236427 203063 5598 27766 126209 90627 23250 12332 75 75 21500 21500 221433 181777 38088 1568 1407 1332 75 79886 66198 4048 9640 64378 47061 11529 5788 178641 128277 32910 17454 195964 195247 30 687 191136 185887 5249 14023 14023 76086 98340 -29688 7434 Equipment Rental 47297 44493 660 2144 OTHER 33875 22699 10966 210 Dues and Fees 15690 15044 646 Bad Debt Expense 2725 2635 90 3153341 2431838 480189 241314 100 100 597231 1659227 152775 54779 1044880 611369 73670 82431 189262 170542 15697 18720 5430202 6880045 7314555 9306671 162825 279604 106163 5350800 6896734 5619788 7176338 X 1603743 1964212 91024 166121 1694767 2130333 7314555 9306671 435566 0 X X 0 1 X 1 0 X 1490442 823209 552424 385024 619894 3870993 1490442 823209 552424 385024 619894 3870993 2128233 1742760 1174 640 337 264 421 2836 45418 153 45571 3919400 0.44460 0.52510 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 2686 2059 627 186576 168483 18093 18720 Security Deposits 21662 CLIMATE RESERVE TONNES ASSET 6858383 6880045 Climate Reserve Tonnes Liability 6858383 Deferred Rent 38351 6896734 X 3657308 68401 68401 3588907 0 3588907 3221742 68401 68401 3153341 0 3153341 Part X, Line 2: The Organization is a nonprofit public benefit corporation organized under the laws of California and, as such, is exempt from federal and state income taxes under Section 501(c)(3) of the Internal Revenue Code ("IRC") and corresponding state provisions under California Revenue and Taxation Code Section 23701(d). The Organization's federal income tax and informational returns for tax years ended June 30, 2012, and subsequent remain subject to examination by the Internal Revenue Service. The returns for California, the Organization's only state tax jurisdiction, remain subject to examination by the California Franchise Tax Board for tax years ended June 30, 2011, and subsequent. No open tax years are currently under examination. Part X - Other Liabilities - Line (3) - Climate Reserve Tonnes Liability See audited financial statements footnote #9. Mexico 0 1 Program Services Program Development 38475 0 1 0 0 0 1 38475 0 38475 0 0 0 0 0 0 X X X 0 0 0 0 0 0 0 0 0 Gary Gero Former President 210389 0 0 0 0 0 18000 0 21610 0 249999 0 0 0 John Nickerson Director of Forestry / VP of Forestr 120979 0 0 0 0 0 18000 0 23056 0 162035 0 0 0 Form 990, Part III, line 2 In FY2016 the Climate Action Reserve drew on its experience and knowledge in carbon accounting to expand its work into the arena of assessing the climate impact of projects financed by investments. The Reserve's new program seeks to quantify the GHG emissions reduced through these investments, which is a pioneering approach intended to compliment broader rating programs. The Reserve's climate finance assessment program will initially focus on projects financed by green bonds, which are debt investments specifically touted to have environmental benefits. Form 990, Part VI, Section A, line 4 Summary of Changes to Climate Action Reserve Bylaws Article 3: Objectives and Purpose This section has been updated to include the provision of technical expertise and support to governments and others on the design and implementation of climate policies and programs, evaluation and reporting of the greenhouse gas benefits of financial investments in projects and technologies to address climate change, and to reflect a broader range of program activities related to land and natural resource management for climate mitigation and adaptation. Article 4, Section 10: Notice of Meetings This section has been updated to allow for special meetings of the Board to occur with less than 48 hours notice to the Board if electronic consent of all Directors is obtained. It also clarifies what is included and required for electronic communications. Article 4, Section 15: Action without a Meeting This section has been amended to comport with California nonprofit code to preclude the Board from acting on any matter (other than electing new Board members) if the total number of Board members in office is less than a quorum of the total authorized to serve (which is currently set at 15). Article 4, Section 21: Loans to Directors and Officers This new section has been added to make explicit that the organization may not provide loans or other financial guarantees to Directors or officers other than advances against reasonable expenses that would otherwise be entitled to be reimbursed. Article 4, Section 22: Standard of Care This new section has been added to reflect California nonprofit code and provides liability protection for Directors in performing their duties so long as their actions are undertaken in a manner that they believe to be in the best interests of the organization and as any reasonable person would in a similar situation. It provides details on the information that Directors may rely upon in making decisions consistent with California code. Article 5, Section 1: Number of Officers and Section 9: Duties of the Vice Chair These sections have been amended to add a position of Vice Chair as directed by the Board at the December 18, 2015 meeting. Article 5, Section 10: Salaries This new section has been added to specifically authorize the Board to set the salary of the President and other officers. Article 6, Section 1: Board Committees Adds three new limits on the authority of Board committees as follows: 1) precludes committees from taking actions for which California nonprofit law requires approval of the members of the organization, 2) precludes committees from expending funds to support the nomination of a Director, and 3) precludes committees from approving a transaction if any Director has a material financial interest in the transaction. Article 6, Section 4: Audit Committee This section has been amended to specify that the Board shall comply with California Government Code and appoint an Audit Committee of two or more eligible Directors if revenues, exclusive of government sources, exceed $2 million annually. Additionally, other minor technical or clarifying amendments are included. Form 990, Part VI, Section B, line 11 Line 11a explanation - It is the policy of Climate Action Reserve that the Audit Committee and then the full Board of Directors review the Form 990 before it is filed with the IRS. A Board resolution is not required in order for the Form 990 to be filed. The means of delivery shall be via email to each Audit Committee member. Form 990, Part VI, Section B, line 12c The Climate Action Reserve has scheduled meetings to review policy and procedures and consistently monitors and enforces compliance with the policies during the review process. The Reserve has full Board of Directors meetings, Audit Committee meetings, Nominating Committee meetings and Executive Committee meetings. During the reporting period, the Executive Committee gathered four times to review policy and procedures to enforce compliance. Form 990, Part VI, Section B, line 15 At scheduled meetings, the Board of Directors reviews and makes decisions on At scheduled meetings, the Board of Directors reviews and makes decisions on compensation for the President and VP staff using compensation information gathered from the Form 990's of other organizations and local compensation surveys. The process is done in closed session and decisions are forwarded to the President via electronic mail, then reviewed by the Operations Director, and finally forwarded to the controller for processing. This deliberation process is also recorded in the corporate minutes. Form 990, Part VI, Section C, line 19 Public documents as determined by the Organization are available upon written request. Copies of the Organization's financial statements and Forms 990 are also made available by email request through a link on the Organization's website. Form 990, Part XII, Line 2c: The process has not changed from the prior year.