Frequently Asked Questions

ENROLLMENT/ PROCESS QUESTIONS

How do I participate?

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Simply enroll or renew as a WGES natural gas customer. We'll automatically match locally-sourced WGES CleanSteps^® Carbon Offsets to your natural gas usage —a 5% match for residential customers and a 3.5% match for small commercial customers.

Which areas and customers will receive WGES CleanSteps^® Carbon Offsets?

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Any new WGES small commercial and residential natural gas customers – in all WGES natural gas territories – will receive a natural gas supply with WGES CleanSteps^® Carbon Offsets matched to 3.5% and 5% of their usage, respectively. This new feature enhancement is included in the standard price of all natural gas supply available to new residential and small commercial customers. Current customers will receive matching WGES CleanSteps^® Carbon Offsets once their existing contracts expire and they are ready to renew.

Does my natural gas change?

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No. You'll continue to receive the same clean and efficient natural gas from WGES, and your gas billing procedure will not change. The only difference is that WGES will match 5% or 3.5% of your natural gas usage to WGES CleanSteps^® Carbon Offsets for residential and commercial customers, respectively.

Can I buy offsets matched to my electricity use?

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WGES offers renewable wind power to help offset your electricity use. WGES CleanSteps^® WindPower is clean, local and emissions-free. You can purchase WGES CleanSteps^® WindPower at 50% or 100% of your electricity usage. Click here to learn more.

Does my purchase of natural gas with matching WGES CleanSteps^® Carbon Offsets qualify as a charitable contribution for tax purposes?

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No, you are not eligible to claim a charitable contribution as a result of your purchase of natural gas with matching WGES CleanSteps^® CarbonOffsets. Please consult your tax advisor for additional information regarding tax regulations regarding charitable contributions.

Can I purchase natural gas enhanced with WGES CleanSteps^® Carbon Offsets in increments between 5% and 100%?

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At this time, the option for customers who want to make the biggest positive impact is 100%. We're considering adding other levels, such as 50%, if customer demand warrants. So, please let us know if you're interested in a 50% option by contacting us at wges_info@wges.com or 1-888-884-WGES.

WGES CleanSteps^® CARBON OFFSETS 101

What are WGES CleanSteps^® Carbon Offsets?

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WGES CleanSteps^® Carbon Offsets are part of the standard natural gas offer for WGES customers. By including this feature enhancement with our natural gas product, we give you the opportunity to support local projects that help clean the air and water in the Chesapeake Bay watershed. Your impact is local, with real, measurable benefits for our community. WGES CleanSteps^® Carbon Offsets match the following to a customer's natural gas use: (1) local carbon offsets that clean the air and (2) funding to generate future projects, developed by the Chesapeake Bay Foundation, that will clean the air and water of the Chesapeake Bay watershed. This new feature has real, measurable benefits for the people, environment and economy of this region.

Why is WGES matching WGES CleanSteps^® Carbon Offsets with our natural gas product?

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WGES is committed to improving the health of our planet, particularly as it affects our local air and water. We believe that many small steps lead to big improvements over time. That's why in 2002 we pioneered making locally-sourced WGES CleanSteps^® WindPower part of our supply for electricity customers. WGES CleanSteps^® Carbon Offsets is our new companion enhancement to our natural gas product that funds local "green" projects and creates corresponding benefits.

WGES CleanSteps^® Carbon Offsets help restore nature's balance: reducing greenhouse gases in the region, while also restoring the Chesapeake Bay and the many rivers and streams that flow into it. We want to bring back the Bay, helping fish and shellfish populations flourish once again. What we do on the ground and in the air affects the Chesapeake waters and the local air we breathe. It's all connected.

How does this product enhancement benefit me?

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When you use clean and affordable natural gas from WGES, you help promote cleaner air and water where we live, work and play – in the Chesapeake Bay watershed. Your WGES natural gas supply includes locally-sourced WGES CleanSteps^® Carbon Offsets matched to a percentage of your natural gas usage to support local projects that help reduce the emission of harmful greenhouse gases in our environment.

How do WGES CleanSteps^® Carbon Offsets benefit my region?

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WGES CleanSteps^® Carbon Offsets create an array of benefits for the people, economy and environment of the Chesapeake Bay region. Our supply of carbon offsets comes exclusively from local sources, so the benefits are also local. What goes up (in the air) comes down in greater concentrations here, onto the land, into the regional tributaries and ultimately into the Chesapeake Bay itself. Creation of these "homegrown" offsets reduces greenhouse gases in the region while also cleaning up the air we breathe and the local water supply.

When you purchase natural gas from WGES, you help support projects that reduce greenhouse gas emissions while also providing multiple benefits for the places we call home.

Environmental benefits:

• Improving local air and water quality
• Reducing local greenhouse gases linked to climate change
• Limiting nitrogen flows and nutrient pollution in the Chesapeake Bay and its tributaries
• Helping bring back fish and shellfish populations and restore aquatic habitats

Social benefits:

• Improving human health by reducing harmful air emissions
• Beautifying and restoring the Bay
• Easing traffic congestion by moving truck trailers by rail
• Reducing odors from local landfills

Economic benefits:

• Generating seed funds for new environmental projects
• Introducing local farmers to more economical, sustainable farming practices
• Providing financial incentives for existing carbon-reduction projects to continue operations
• Creating and maintaining green jobs
• Increasing local tax revenues

Why should I support clean air and water projects as a feature of my natural gas supply?

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This is an easy, simple way to make a difference. As a WGES natural gas customer, you help support projects that reduce greenhouse gas emissions while also providing multiple benefits for the places we call home.

Most of the things we do routinely, from driving our cars to cooking to warming our homes, affect the local environment. The impacts are often unavoidable. When we can modify our daily activities to reduce our impact, we make a big difference. When we can't, we can offset our environmental footprint by choosing WGES natural gas with matching WGES CleanSteps^® Carbon Offsets, the "next best" thing to improve air and water quality close to home.

Why should we save the Bay?

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Seventeen million people live in the Chesapeake Bay watershed. The land that drains into the Chesapeake Bay covers 64,000 square miles. The Bay supports 3,600 species of plant and animal life, including more than 300 fish species and 2,700 plant types. More than 500 million pounds of seafood are harvested from the Bay every year.

This map (click here) shows the Bay watershed area, along with CBF Annapolis, Maryland headquarters and other office locations.

CBF reports that compared to historic levels, the Bay has lost:

• 58 percent of the wetlands
• 88 percent of oysters
• 90 percent of underwater grasses
• 46 percent of the forested buffers lining the streams and tributaries
• 2.7 million acres of watershed land compromised by paving or building practices (loss between 1950 and 1980)

CBF works to address the issues that affect the health of the Bay and its tributaries. According to Will Baker, CBF President, "Clean water, clean air, a healthy and safe environment — it's not a luxury, it's a right. All Americans must demand it." CBF fights for this basic right—clean water—at local, state and federal levels.

Why should I join WGES in promoting cleaner air and water?

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There are several reasons why we encourage you to join us. When you participate, you know where your money is going – you know you're helping develop local projects within the Chesapeake Bay region. Further, you're investing in a sustainable program – supporting projects today while seeding projects for the future. It's an easy, simple way to offset your carbon footprint.

Do any of the partners receive a tax incentive or claim a charitable contribution for offering WGES CleanSteps^® Carbon Offsets?

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No, neither WGES nor any of the partners receive a tax incentive for offering WGES CleanSteps^® Carbon Offsets. Additionally, none of the partners involved, including WGES, will claim a charitable contribution for tax purposes.

Who are the WGES CleanSteps^® Carbon Offset partners?

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We've assembled a diverse team of partners − a competitive energy supplier, a well-known and trusted nonprofit organization dedicated to restoring the Chesapeake Bay, an innovative clean-energy pioneer and a visionary trucking and transportation giant. The four main partners are: Washington Gas Energy Services, The Chesapeake Bay Foundation, Sterling Planet and J.B. Hunt Transport Services.

The partners come with their own areas of expertise but share the common goal of improving air and water quality in the Chesapeake Bay watershed. Our partners' broad capabilities help maintain the size and strength needed to manage and grow the volumes of carbon offsets required to make a significant, measurable local impact.

Click here to learn more about the partners.

Carbon Offsets 101

What are carbon offsets?

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Carbon offsets are evidence that special actions have kept excess greenhouse gases out of the air. Offsets prove that real, quantifiable and beyond "business-as-usual" measures have in fact already reduced emissions by a specific amount. Used to counteract or "offset" the greenhouse gases that result from often unavoidable everyday activities, most carbon offsets are certified to meet high standards for environmental integrity as well as consumer protection.

How do carbon offsets make a difference?

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Each offset means that one metric ton (about 2,200 pounds) of carbon dioxide and other greenhouse gases didn't escape into the air. Instead, specific actions have prevented, avoided or stored this metric ton of emissions. The environmental benefit of just one carbon offset compares to taking the average car off the road for about two months.

How does using natural gas affect my carbon footprint?

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Natural gas is already the cleanest conventional fuel. We're automatically reducing your carbon footprint further, bundling your natural gas with locally-sourced carbon offsets that represent real improvements in air and water quality.

Isn't it better for me to reduce my consumption, rather than investing in carbon offsets?

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Quite simply, yes. The best thing you can do for the planet is to use less so that you have less to "offset." But the fact is, many of our unavoidable everyday activities, such as energy use, create emissions. No one has a "zero" carbon footprint, but everyone can invest in carbon offsets to help reduce the carbon footprint in their region. So, to make the biggest difference, you should work to reduce your environmental impact and at the same time invest in carbon offsets.

I'm skeptical about carbon offsets. How can I be confident my carbon offset project is truly making a difference?

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Some skepticism is good when it comes to carbon offsets. At WGES, we know that all carbon offsets are not created equally. Some have not been verified; some are not "additional." When choosing carbon offset projects in which to invest, ask:

• Are the offsets certified in a registry? Quality offsets are typically certified. You can check the certification requirements to see how rigorous and transparent they are. WGES carbon offsets are certified by CSA Standards (transportation projects), Climate Action Reserve (landfill gas) and the American Carbon Registry (Chesapeake Bay Foundation projects).
• Have the emissions reductions recently occurred? Be careful not to invest in "future" emissions reductions, where you're counting on the project to work as it should several years from now. WGES carbon offsets are based on emission reductions that have occurred this year or the year before.
• Would the emissions reductions have occurred anyway, due to, for example, a regulatory requirement? If the answer is "yes," avoid these offsets. WGES carbon offsets are all voluntary — above and beyond any regulatory requirements. The clean air projects would not have occurred under a "business-as-usual" scenario.
• Where does the offset project originate? Today, offsets can be sourced not only across the country but across the world as well. Choosing local means benefits stay local. WGES carbon offsets are sourced in the Chesapeake Bay watershed, so you'll help to improve the air and water quality in this region.

How much do carbon offsets usually cost?

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There is no set, standard price for a carbon offset. Prices can vary based on location (local can cost more than national), type of project (certain projects cost more to develop than others), and supply and demand. Carbon offsets today, based on these factors, can cost anywhere from under a dollar to over thirty dollars per offset.

How do carbon offsets relate to "cap and trade"?

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A cap and trade program limits the total emissions allowed by emitting facilities within a specific area. One facility can emit more and one can emit less than the average, as long as together emissions from the two facilities don't exceed the "cap," or emissions limit.

In some cap and trade schemes, carbon offsets are an acceptable way to limit emissions. In other cases, emissions reductions have to be more direct – cleaning up a power plant, for example, instead of investing in a tree planting project that produces carbon offsets as a way to "offset" power plant emissions.

WGES CleanSteps^® Carbon Offsets will never be counted as part of a mandatory cap and trade scheme. Offsets embedded in the WGES natural gas product will always go above and beyond any regulatory requirements.

Aren't carbon offsets already required by law?

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No, carbon offsets are not required by law. At times, proposals have moved through state and federal legislative bodies, but nothing has been approved yet. All the projects WGES invests in represent carbon dioxide emissions reductions beyond "business as usual." If and when carbon offsets are required by law, all WGES carbon offsets will be additional to those required.

What is carbon dioxide?

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After water vapor, carbon dioxide is Earth's most abundant heat-trapping greenhouse gas. It occurs naturally but also is the primary greenhouse gas from human activities, such as the burning of fossil fuels by driving, heating your home and land-use changes (e.g., building a garage instead of preserving shrubbery). Today, there is too much carbon dioxide in the atmosphere, both locally and globally, and this leads to climate change. WGES CleanSteps^® Carbon Offsets helps restore the natural carbon balance.

What are some other greenhouse gases?

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Any gas that warms the atmosphere – whether produced naturally or by humans – is a greenhouse gas. WGES CleanSteps^® Carbon Offsets reduce greenhouse gases like carbon dioxide, methane and nitrous oxide. Methane is 23 times more effective at trapping heat than carbon dioxide but is not nearly as abundant or long-lived. Landfills and agricultural activities are key sources of methane emissions. Nitrogen combined with oxygen, nitrous oxide, comes from transportation as well as farming practices. WGES CleanSteps^® Carbon Offsets reduce all three types of greenhouse gases, which contribute to climate change.

What is a carbon dioxide equivalent, and why is methane expressed this way?

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A "carbon dioxide equivalent" is the common measure used to compare the strength of the various greenhouse gases – the global warming potential (GWP). Carbon dioxide, with its GWP rating of "1," is the reference gas because it's the most abundant greenhouse gas that comes at least partially from human activities. Methane has a much higher GWP of 23, meaning it is 23 times more potent than carbon dioxide. Expressing methane as a carbon dioxide equivalent helps standardize – now we can reference different greenhouse gases (including, but not limited to, methane) using a common set of metrics. Some of the WGES carbon offsets are actually from reductions in methane or nitrogen oxides, but they are counted as carbon dioxide equivalents.

CARBON OFFSET SUPPLY (GENERAL)

What are the sources for WGES CleanSteps^® Carbon Offsets?

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Our initial supply of carbon offsets comes from local, independently verified carbon-reduction projects in the transportation and waste management sectors. These projects are taking special steps to reduce highway-related emissions and to keep a powerful greenhouse gas (methane) out of the air. At the same time, we're investing in new projects – such as tree planting along rivers and streams that flow into the Chesapeake Bay – that will help restore the Bay and generate their own carbon offsets to grow the program and meet future needs. Our clean energy partner, Sterling Planet, will also invest in these new, long-term projects. The projects will be managed by the Chesapeake Bay Foundation, a local nonprofit organization dedicated exclusively to cleaning up the Chesapeake Bay watershed.

What are the criteria for the carbon offsets embedded in WGES natural gas supply?

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WGES chooses and helps develop carbon offsets that meet high standards. They are certified by the American Carbon Registry, the Canadian Standard Association or the Climate Action Reserve. They come from local, credible projects that are independently verified by third parties.

There are four essential criteria for our high-quality carbon offsets:

• Real. The offset must represent actual emission reductions that have recently occurred. We don't sell carbon offsets that are based on future performance.
• Additional. The emission reductions must be the result of specific actions that go beyond what would have happened anyway or "business as usual," such as regulatory compliance. All source projects must pass a rigid, specific additionality test.
• Verifiable. The emission reductions must come from projects whose performance is readily and accurately measured, monitored and verified.
• Permanent. The emission reductions must be permanent and fully retired, not potentially sold to multiple buyers or later released into the air. WGES offsets are entered in registries that issue unique serial numbers to prevent the sale of the same offset more than once. We also take full ownership of our carbon offsets and claim all the related environmental assets so that they can be retired permanently.

How does WGES fund future projects?

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To ensure continued funding, WGES and its clean energy partner, Sterling Planet, will jointly invest some proceeds in a "Carbon Reduction Fund." Every time the partners buy carbon offsets from the initial sources (the intermodal transport and landfill-gas reduction projects) to help offset your carbon footprint, additional dollars go into the fund. For every carbon offset purchased, WGES contributes $4 to the fund. Sterling Planet contributes $2.

The Carbon Reduction Fund is central to the program's long-term benefits. The dollars WGES and Sterling Planet put into the fund, to be managed by the Chesapeake Bay Foundation, will go toward new projects that reduce greenhouse gas emissions while also cleaning up the Bay. WGES and Sterling planet will work closely with the Chesapeake Bay Foundation to ensure that projects with multiple benefits are chosen. Because these projects will produce carbon offsets, there will be a source of new revenue to fund even more clean projects and make a greater difference. The program benefits have unlimited potential.

CARBON OFFSET SUPPLY - INTERMODAL DETAIL

What is intermodal transport?

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Intermodal transport is the movement of freight using more than one mode of travel, such as rail and trucking. This combination relieves congested highways and decreases fossil fuel use by 60%, making this the most effective way to reduce transport-related greenhouse gas emissions. A major trucking and transportation company and an intermodal transport pioneer, J.B. Hunt, supplies carbon offsets from its regional operations.

What are the environmental benefits of intermodal transport?

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By taking trucks off the road and putting freight on railcars, diesel fuel use drops 60% and carbon emissions 50%. Trains are far more fuel-efficient than trucks, which is why intermodal transport is the single most effective way to reduce greenhouse gas emissions in the transportation industry.

Hasn't intermodal transport been happening for years?

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You're right that intermodal has been around for a long time. However, the age of the technology associated with the project is not a criterion WGES uses to choose the best carbon offset projects. We choose projects that create real, measurable, verifiable carbon dioxide emissions above business as usual – projects like J.B. Hunt intermodal transportation.

Doesn't intermodal make good business sense anyway, even without the offsets?

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Mile for mile, intermodal makes good business sense. Freight transported a mile by train is typically less expensive than freight transported a mile by truck. However, there are significant upfront costs associated with transitioning freight from trucks to trains. Today, only about 10% of freight that could be transported by intermodal actually uses this option. Through carbon offsets, J.B. Hunt is working to increase this percentage and revamp the trucking industry.

How does the intermodal project create carbon offsets?

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Since 2003, J.B. Hunt has been working to measure the emissions reductions made possible through the company's use of intermodal transport. The company engaged Blue Source, manager of North America's leading portfolio of carbon offsets, to measure emissions reductions and create carbon offsets for sale on public registries. J.B. Hunt has been using revenues created through the sale of these offsets to fund new emission reduction projects within the company.

How does the intermodal project help local road conditions?

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The project takes large trucks off the road and sends their contents by rail instead. A single freight train can take the load of 280 or more trucks – equivalent to 1,100 cars – off our overcrowded highways. That means less highway gridlock, easier travel for motorists and less fuel wasted during idling. Shifting freight from trucks to rail also reduces the pressure to build costly new roads and helps cut the cost of maintaining the roads we already have.

What was the "business-as-usual" scenario before this intermodal transport project began?

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Before J.B. Hunt pioneered the concept of intermodal transport, all J.B. Hunt shipments were by truck, and there were no real emission reductions. Greenhouse gas reductions achieved by intermodal transport are "additional" and voluntary, not in response to any government requirements, and so these emission reductions qualify as carbon offsets.

Who verifies these offsets?

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Ruby Canyon Engineering is the independent third party that verifies the authenticity of these carbon offsets. Ruby Canyon calculated baseline and project emissions in keeping with the International Organization for Standardization (ISO) 14064-2 methods for greenhouse gas accounting, a widely accepted methodology for quantifying greenhouse gas emissions.

CARBON OFFSET SUPPLY – LANDFILL GAS REDUCTION PROJECT DETAIL

How does a landfill create carbon offsets?

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As organic waste breaks down, landfill gas rises up. Landfill projects collect the methane from landfill gas to generate electricity or to create carbon offsets through methane capture and destruction. Our source, a landfill-gas utilization project in Worcester County, Maryland, produces both electricity and carbon offsets. Carbon offsets from the project represent the tons of methane that the project destroyed and kept from escaping into the atmosphere. Methane is 23 times worse than carbon dioxide as a heat-trapping greenhouse gas, though it is not as abundant as carbon dioxide. Each year, the Maryland landfill destroys millions of pounds of methane and creates the added benefits of county tax payments, job creation and odor control.

What is landfill gas?

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Landfill gas is the natural result of organic decay in landfills. This gas consists of about 50% carbon dioxide and 50% methane. Both are greenhouse gases. Of the two, methane gets more attention because it can trap 23 times more atmospheric heat than carbon dioxide.

What is a landfill-gas reduction project?

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A landfill-gas reduction project reduces greenhouse gases by collecting landfill gas and isolating the methane component for one of two separate environmental purposes: (1) to generate clean, renewable electricity or (2) to create carbon offsets through methane capture and destruction. The Worcester County project does both.

What is methane capture and destruction?

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As the name implies, methane capture and destruction is a process for containing and eliminating methane to prevent its release in the atmosphere. The Worcester County project burns off collected methane in an enclosed flare. Precise measurements of the quantity destroyed lead to creation of a specific quantity of carbon offsets.

Why are landfill-gas reduction projects important?

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These projects keep harmful methane from leaking into the atmosphere. In addition to being potent, methane also has a short atmospheric life of about 10 years. Because methane is both powerful and short-lived, it makes sense to reduce methane emissions from landfills to gain a near-term advantage in reduction of greenhouse gases.

What was the "business-as-usual" scenario before the LFG reduction project began?

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Before developing this project, Worcester County managed its landfill gas through regular monitoring at the surface and in the soils, and as required by permits. There were only nine vents for methane collection, compared to 80 today, and those original vents were inefficient by current standards. A new leachate system now accelerates organic decay and facilitates methane capture.

The "without project" methane capture totals – the total with nine vents - form an emission baseline. Methane captured above and beyond that baseline is "additional" and voluntary, not in response to any government requirements, and so these emission reductions qualify as carbon offsets.

Hasn't methane capture been happening for years? And isn't it required by law?

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You're right - methane capture has been happening for a long time in landfills around the country. However, it's only required by law at larger landfills. Even when required by law, some methane still escapes into the atmosphere. For the majority of U.S. landfills that aren't very large – including the Worcester County landfill – no methane regulations exist. This means that methane capture at the Worcester County facility goes above and beyond requirements – above "business as usual."

Which carbon registry tracks carbon offsets produced by the LFG project?

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The California Climate Action Registry tracks these offsets. The Registry is a program of the Climate Action Reserve and serves as a voluntary greenhouse gas registry to protect and promote actions to reduce these emissions.

CARBON OFFSET SUPPLY – PROJECTS MANAGED BY CHESAPEAKE BAY FOUNDATION

How do you choose which carbon offset projects to develop through the Fund?

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The nonprofit Chesapeake Bay Foundation, a well-known and trusted environmental advocate for the Bay, will manage the Carbon Reduction Fund, with input from WGES and Sterling Planet, the clean-energy program partner. Sterling Planet's expert environmental consultant will work closely with the Chesapeake Bay Foundation to identify carbon offset projects where the investment yields maximum benefits in terms of Bay restoration, both immediately and in the long term. These same local projects also will become the source for future carbon offsets, ensuring program viability for years to come.

What new projects will the Chesapeake Bay Foundation develop?

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Using the Carbon Reduction Fund, the Chesapeake Bay Foundation will be able to accelerate and extend its efforts to reduce nitrogen pollution in the Bay. Two main types of projects are in the works. One is tree planting along rivers and streams that flow into the Bay. The new trees will "clean" polluted water through filtration, reduce nitrogen runoff from roadways and fertilized agricultural fields, and also absorb carbon dioxide from the air. The second major area of focus is adoption of new farming practices. Area farmers will gain exposure to new planting and fertilizing practices that will lead to reduced nitrogen runoff into the Bay and its tributaries.

MEASURABLE, SUSTAINABLE RESULTS

How many carbon offsets have WGES customers purchased so far?

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From inception in September 2010 through December 2011, customers have purchased nearly 25,000 certified carbon offsets. That's the same as taking nearly 5,000 cars off the road for a full year, or removing more than 71,000 loads off of polluting trucks and transporting them instead via clean, efficient railcar.

How much money has been contributed into the Carbon Reduction Fund as a result of customers' carbon offset purchases?

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WGES contributes $4 to the Fund and Sterling Planet contributes $2 for every carbon offset purchased. As of December 2011, customer purchases have triggered contributions totaling nearly $150,000 into the Carbon Reduction Fund (CRF).

What clean air and water projects have been funded through the Carbon Reduction Fund and what else is planned?

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The Carbon Reduction Fund (CRF), managed by the Chesapeake Bay Foundation (CBF), has already supported several tree plantings along the Chesapeake Bay watershed. WGES friends and family came together for a day of volunteering to kick off planting at one of the first tree-planting sites, Holly Beach, Maryland. As of December 2011, CRF projects have supported the planting of 4,400 trees on 22 acres of land.

With the support of CRF funds, in July 2011 CBF was one of only nine organizations in the country selected to receive a U.S. Department of Agriculture (USDA) grant that will focus on reducing greenhouse gases and improving water quality through work with area farmers.