2023/04/12 Council Agenda Packet

E EVERETT Project title: Transit Clean Fuel Credits City Council Agenda Item Cover Sheet Council Bill # ,rerojj,ce use Project: Transit Clean Fuel Credits Agreement Partner/Supplier: Washington State Department of Ecology, WA State Transit Association Agenda dates requested: Location: City of Everett 4/12/23 Preceding action: N/A Briefing Fund: 425/Transportation Services Proposed action Consent X Action Ordinance Public hearing Fiscal summary statement: Yes X No This agreement will have a positive fiscal impact for Everett Transit. Budget amendment: Yes X No PowerPoint presentation: Yes X No Attachments: Clean Fuel Member Services Agreement Department(s) involved: Transit Contact person: Melinda Adams Phone number: 425-257-8915 Email: madams@everettwa.gov Initialed by: rho Department head Administration Council President Everett Transit will receive one credit for each ton of CO2 reduced. This credit can then be sold on the Department of Ecology's Credit Bank Transfer System. The price of one credit varies depending on market conditions but can be priced as high as $240, per statute. Everett Transit currently has 19 electric buses in its fleet that are expected to reduce approximately 90 tons of CO2 annually each, for an estimated annual total of 1,710 tons. Everett Transit will be charged an annual fee of $982 plus 5%-8.5% of the revenue generated from the Carbon Credit Aggregation Pool depending on the total number of credits generated. Fees will be paid out of Fund 425 and no budget amendment is required. Project summary statement: The Climate Commitment Act authorized the Washington Department of Ecology to administer the Clean Fuels program. This program allows for the generation of credits for transportation activities that reduce greenhouse gases. These credits can be sold on the Department of Ecology's Credit Bank Transfer System or through a third -party broker. The Washington State Transit Association (WSTA) has engaged a third -party broker to collect and sell all participant's credits in bulk on behalf of member agencies. The attached agreement with WSTA facilitates the actions of the third -party broker. It is expected the volume of the pool will be more attractive to credit buyers than what Everett Transit could market it on its own. By running electric buses, Everett Transit is expected to save approximately 90 tons of CO2 per electric bus annually and receive one credit for each ton of CO2 reduced. Utilizing the WSTA's Carbon Credit Aggregation Pool will allow Everett Transit to fulfill the reporting requirements for these additional funds for a small fee. Recommendation (exact action requested of Council): Authorize the Mayor to sign the Washington State Transit Association Member Services Agreement and Department of Ecology Aggregator Designation form.