Leveraging Carbon Offsets for Water Quality in the Deschutes Basin, Oregon

1. Leveraging Carbon Offsets for Water Quality in the Deschutes Basin, Oregon Scott McCaulou, Deschutes Resources Conservancy Michael Ashford, The Climate Trust

2. DRC Mission “To restore streamflow and improve water quality in the Deschutes Basin utilizing incentives and market mechanisms”

3. Deschutes Basin2nd Largest Watershed in Oregon10,700 square miles170 miles North to South125 miles East to WestBasin Population 171,482Crook County 18,150Deschutes County 109,600Jefferson County 18,600Wasco County 23,346Sherman County 1,786Population Growth Ratefrom 1990 to 2010Crook - 42%Deschutes County - 99%Jefferson County - 76% Deschutes Basin

4. Deschutes Basin 303(d) Violations Total Reaches in Violation = 150 Parameter # of Reaches % of Total Temperature 86 57% Habitat Mod. 29 19% Sediment 12 8% Totals 127 84%

5. Deschutes Riparian Restoration Project

6. Deschutes Riparian Restoration Project Objectives: • Provide landowners with technical assistance and incentives to improve riparian areas in the Deschutes Basin • Offset carbon dioxide emissions by restoring riparian areas using native vegetation

7. The Climate Trust: Promote climate change solutions by facilitating greenhouse gas offset projects and advancing sound offset policy.

8. Carbon Offsets and Oregon House Bill 3283 HB 3283 requires new energy facilities built in Oregon to avoid, sequester, or displace a portion of their previously unregulated carbon dioxide emissions

9. Any new gas-fired power plant must meet a net emissions rate of 0.675 pounds of CO2 per kilowatt-hour • This is 17% less polluting (in CO2) than the least-polluting such plant operating in the United States

10. A power plant developer may choose to meet part or all of its reduction target by paying mitigation funds to a "qualified nonprofit" such as the Climate Trust (formed in 1997) • The funds are then used to carry out projects that avoid, sequester, or displace the carbon dioxide the plant will emit in excess of the required standard. $ offsets

11. Project Financing • DRC: $780,000 for organizational capacity and program management • The Climate Trust: $780,000 for market penetration, permanence, sequestration M&V, et al. • Total project budget: $1,560,000. • $780,000/233,333 metric tons C02= $3.34/metric ton selling price to The Climate Trust

12. CONTRACT: • Deliver offsets totaling 233,333 metric tons of CO2. • Provide long term (52-years) project site protection through site management plan, landowner agreement, and conservation easement with each landowner.

13. CONTRACT (cont): • Provide monitoring and verification of offsets for the duration of the project. • Restore an estimated 1900 acres of riparian habitat

14. DRRP Partners ERT Mt. Jefferson Farms ERT

15. Foley Creek Riparian Restoration; Trout Creek Headwaters • 303(d) limited for: • Habitat Modification • Temperature • Sediment • ESA listed Steelhead run

16. DRRP Foley Site History

17. Foley Creek Riparian Restoration Objective: Restore approximately 7 miles of Foley and Martin Creeks Strategy: Install 10 miles of riparian fence, plant 72,000 native plants, and install two offsite watering facilities

18. Project Components • Project Scoping • Site Restoration Plan Development • Contract/Easement Negotiation • CT Site Review and Approval • Baseline Measurement • Planting/Implementation • Monitoring ERT

19. Monitoring and Verification • ERT to prepare and execute carbon offset Monitoring and Verification Plan including: • Evaluation of baseline conditions • Developing methodology to collect and analyze data • Determining tons of CO2 sequestered per site

20. Planting

21. Deschutes Resources Conservancy www.deschutesrc.org