Naomi Reiter: Climate Change Impacts U.S. Ski Resorts

Properties Take Action to Delay Inevitable

Snowflake

U.S. ski resorts comprise a $3 billion industry that has a vested interest in fighting global warming, according to Geraldine Link, director of public policy for the National Ski Areas Association (NSAA). Chilling studies commissioned by Aspen Skiing Co. (ASC) and Park City Mountain Resort (PCMR) have predicted dwindling snow seasons, which could lead to dwindling profits. But a handful of North American ski resorts are fighting back against global warming by making significant investments to reduce the impact their operations have on the environment.

Reduce, Reuse, Re-Market as Responsible

“It’s the beginning of the wave, not the crest of the wave,” said Matthew Hamilton, manager of community and environmental responsibility at ASC, which owns and operates major Aspen ski properties including Aspen Mountain, Snowmass, Aspen Highlands and Buttermilk. From buying renewable energy and implementing recycling programs to renovating existing structures into “green” buildings, at least 63 North American ski resorts are finding ways to preserve the pristine environments that attract their guests and drive their profits. ASC, with revenue of about $13.4 million in 2007, spent at least $3 million in the last four years trying to reduce its environmental impact. That’s not including a pricey ad campaign featuring winter sports stars spreading the gospel of environmental sustainability.

Ski resorts are also currying favor with a customer base that is increasingly environmentally conscious. After finding that recycling programs and subsidized public transportation are popular with customers, some resorts are proposing grander plans such as revitalizing polluted land.

LEEDers Spend Green to Be Green

ASC was one of the original companies to help develop the guidelines for the LEED certification program for designing and constructing environmentally-friendly buildings. It invested in more than one million kilowatt-hours of renewable energy during the 2004-05 season from renewable energy wholesaler Community Energy, offsetting 100 percent of its energy consumption. “We were one of the first and one of the largest purchasers [of renewable energy],” said Hamilton. In 2006, ASC spent $23,000 to build a solar panel installation on Aspen Highlands, which produces 9.6 kilowatt-hours per day, contributing to the energy grid since its energy consumption is already offset by the renewable energy it purchased.

Another key player in the space, Vail Resorts—a conglomerate of five ski resorts in Colorado and California—is spending nearly $2 billion redeveloping a polluted nine-acre site where a gas station once stood. “Vail Resorts is redeveloping this site for its new village instead of developing on pristine land,” said Vail Resorts Corporate Communications Director Kelly Ladyga. Vail also offset 100 percent of its energy consumption with the purchase of 152,000 megawatt-hours of renewable energy credits from Boulder, Colo. renewable energy wholesaler Renewable Choice Energy.

On the East Coast, Massachusetts’s Jiminy Peak Mountain Resort (Jiminy) spent about $4 million on a 72-foot wind turbine (built by Sustainable Energy Developments Inc.), reducing Jiminy’s energy consumption by 49 percent—the equivalent of planting 83,000 trees. Small, independent Jiminy makes the majority of the snow for its 170 skiable acres, which eats up a large chunk of its electricity costs. The wind around Jiminy Peak can howl at speeds up to 55 miles per hour causing the turbine to create a surplus of electricity, which can then be contributed to the grid at times when the resort is not making snow or otherwise consuming large amounts of electricity.

According to the company's Web site, the resort’s primary incentive for building the wind turbine was to offset its retail electricity costs. Jiminy calculated that its energy consumption during a 12-month period ending Sept. 30, 2006 was more than seven million kilowatt-hours. Within its first few months in operation, the turbine produced more than two million kilowatt-hours for the resort. These savings, combined with wind credit sales, could allow the turbine to pay for its nearly $4 million price tag within seven years. Community Energy, the same renewable energy wholesaler that sells renewable energy credits to ASC, partnered with Jiminy to sell the credits.

Science of Green

Whistler Blackcomb Ski Resort’s Mountain Planning and Environmental Resource Manager Arthur DeJong looks at climate change as fiscally manageable using the latest science, which includes assessing if warmer temperatures will threaten the ski business, mitigating Whistler Blackcomb’s carbon footprint and diversifying its business model to adjust to current and future climate trends. Whistler Blackcomb uses computer software to adapt to climate change.

“It was developed in-house to predict where reliable snow pack would be,” DeJong said about the software. “A ski lift with associated trails that service it costs $10 to 12 million.” The detachable quads, including their infrastructure, last about 25 years, according to DeJong. When Whistler Blackcomb replaces its costly lifts, this software helps the resort predict where they should be placed so that they will remain relevant for another 25 years.

Whistler Blackcomb also uses a run-of-river project to partially power one of its lifts and plans to expand the operation to match annually in production what the resort consumes annually in ski operation. “We certainly see our business in the 21st century adapting and changing,” DeJong said. “We intend on being a model in showing carbon reduction is possible [so that] climate change does not have to negatively affect our business.”

Too Late for Heads in the Sand

Many ski resorts haven’t decided how—or even whether—to respond to potential climate c Ostrich hange. Some smaller resorts may fear loss of profits as a reason to avoid the issue. Ski resorts that are actively reducing their carbon footprint, however, see ignoring the issue as potentially catastrophic. “If we’re not addressing climate change today, the long-term impact on our industry is disastrous,” said Hamilton, adding that the ski industry must reconcile profits versus being honest about the environment.

“Particularly at risk are small ski areas in the east that have marginal snow today, along with ski areas in the maritime west, particularly in the Cascade Mountains of Washington and Oregon,” said Dr Mark Williams, fellow at the Institute of Arctic and Alpine Research and professor of geography at the University of Colorado, who conducted the long-term climate data and future climate modeling for the resorts. By 2100, Williams’ research indicates that there will be few ski areas left in the U.S. PCMR’s Communications Coordinator Paula Fabel pointed out that Williams’ research predicted that by 2075, the snowline will start at 9,500 feet, but that PCMR’s highest summit elevation is 10,000 feet. “This wouldn’t leave much vertical to enjoy,” she said.

Green As Good Business

Most of what’s been spent reducing both their impact on the environment and their energy costs has come from ski resorts in Aspen, Vail, Jackson Hole, Park City, Whistler and a few other properties that are not only changing the way that they do business, but are trying to educate their customers in environmental responsibility. “Our clientele is pretty influential, we think,” said ASC’s Hamilton. “We have the opportunity to educate while they enjoy the environment.” The Kottke National End of Season Survey Final Report counted a record 60.1 million U.S. skier visits—and potential environmental advocates—during the 2007-08 season.

Ladyga points to a combination of environmental responsibility and good business practices in explaining the reasoning behind several of Vail Resorts’ green programs such as offering free lift tickets to guests who purchased renewable energy for their homes. “It offered a deeper connection with our guests [because] taking care of the environment is important to our guests,” she said. “It’s the right thing to do for our business. We’ve created so much goodwill and loyalty.” DeJong agreed. “The more we promote conservation in our actions, the more attractive we will be as an international resort. The economics are there,” he said.