Thursday, October 13, 2011

Center Develops Stormwater Reduction Credit Trading Service

The Center is developing a clearinghouse service to facilitate stormwater retention.  The DC Department of the Environment (DDOE) will submit regulations early in 2012 that will require regulated sites to have a net stormwater retention requirement. DDOE is implementing a Stormwater Retention Credit (SRC) Trading Program in order to reduce rainwater runoff into city waterways during storm events.  The program is market-oriented and is similar to the carbon dioxide and sulfur dioxide cap-and-trade programs.  The Center is developing a trading house whereby participants can advertise their stormwater retention offsets for purchase and requests for stormwater offset credits. 

The Center's Stormwater Credit Exchange (SCE) is a clearinghouse service that allows participants who reduce their "stormwater runnoff footprint," the total stormwater runnoff from a property during a storm event, to market those credits. Participants who do not reduce their footprint can make offers to purchase offset credits via the SCE.

Every time a stormwater runnoff credit is purchased or sold via the SCE, the credit holder will be designated with a Stormwater Retention Credit (SRC) certifying that the holder sold or purchased the credit. One SRC = 1 gallon of retention for one year. SCE is establishing a baseline rate for one SRC that equals $1. It is for reference purposes only because the marketplace will establish the true price. SRCs can be bought and sold though the SCE at a miniumum rate of $1 per SRC.

The Stormwater Credit Exchange offsets are based on the reduction or elimination of stormwater runoff. The offsets are also based on activities by SCE participants.

Under the DDOE Stormwater Retention Credit (SRC) Trading Program, all regulated development sites would have a net retention requirement, which could be achieved through a combination of on-site practices. All regulated sites would be required to achieve a minimum amount of their 1.2" retention volume on site.

The SCE is a private sector complement to a public sector program.

No comments: