“Green” Credits – Considerations to Incentivize Green Technology and Prevent Financial Challenges

During recent years, there has been a growing commitment by to stimulate green building and technologies. However, municipal wastewater and stormwater agencies face competing interests for scarce resources. While political and financial decisions do not always align, green incentives or credits can make financial sense. As housing and commercial development begin to rebound, agencies should evaluate the financial benefits and challenges of “green” incentives, and proactively develop a policy framework for its program.This paper addresses the advantages and disadvantages of establishing “green” credits, with particular attention to applications for wastewater and stormwater utilities. The paper delineates where green credits may be properly used to incentivize green technology, as well as discuss how awarding green credits can impose challenges on municipalities. Further, the paper discusses the financial considerations that must be explored when establishing green credits, including the methods for setting such credits based on actual cost of service reductions.