Learning Center

A: Based on a range of market price from $2 to $4 per metric ton of CO2 offset, the District’s total of 702,204 tons from 2003 through 2006 would be worth an estimated $1.5 million to $3 million.

Q:How does the District intend to use that revenue? Will it affect rates?

A: If it chooses to market its offsets, the District will use revenue to support and enhance the PUD’s ongoing environmental, conservation and system efficiency improvement programs.

Q: What other plans does the District have to create more offset credits in the future?  Does it plan to pursue credits with respect to the Rock Island and Lake Chelan Projects?

A: The District will continue to watch for opportunities to improve operational efficiencies at all its hydro projects. Modernization of generators and turbines is under way at both Rock Island Dam and Lake Chelan Dam, with upgrades in efficiency expected.

Q: Does this create another incentive for the District to avoid spill?

A: Only if the District can demonstrate that it is meeting its agreed-upon survival targets with other methods and activities under established terms of the Habitat Conservation Plans. Spill remains a preferred option under certain conditions at certain hydro projects.

Q: Why should the District be able to sell offset credits for something that it did for reasons unrelated to climate change?

A: Any PUD effort aimed at increased operational efficiency should be rewarded if it also helps reduce the carbon-loading impact on climate change.

Q: How much hydropower across the country will qualify for offset credits under this precedent?

A: There is no estimate of the total offsets that might qualify, but it makes sense to provide incentives that increase energy production without adding to the collective carbon footprint.

Q: How does this affect the District’s plans to sell renewable energy credits (RECs)?

A: We also passed a resolution on December 17, 2007, authorizing the general manager to sell renewable energy credits or RECs associated with past generation from the Nine Canyon Wind Project.  The District will be evaluating the benefits of both RECs and carbon offsets and optimizing revenues from these sources.