IID anticipates cap and trade revenue
(August 21, 2012,EL CENTRO) – Californiaâ€™s will soon open their carbon emissions market, known by the name cap and trade. Energy companies, consumers, and producers of energy are scrambling to find out what this means to their businesses and to their public entities, but as for the Imperial Irrigation District, cap and trade could mean a financial windfall of millions.
The IID Board of Directors will meet at 1 p.m. today and on the agenda is a discussion of just what that projected multi-million dollar revenue source could entail if they receive more emission credits from the state than it will actually use.
The stateâ€™s goal is to reduce greenhouse gas emissions back to levels reported in 1990 and to accomplish this by 2020.
The California Air Resources Board will hold quarterly auctions where businesses can buy and sell emissions credits. The first auction is set for Nov. 14, with initial allocations going to businesses for free.
For 2013, IID has been allocated credits for close to 1.7 million tons of carbon dioxide, but staff is projecting it will only need credits for about 1.43 million tons.
The district could be able to sell the credits for an estimated surplus of 265,561 tons for prices estimated at $10 to $30 per ton, the report said. The resulting revenues could range from from $2.6 million to $7.9 million.
The board meeting will be held at the IID offices at 1285 Broadway Ave., El Centro.