2023/04/12 Council Agenda Packet

CCAP Carbon Credit Aggregation Pool. • provided by WSTA WASHINGTON STATE TRANSIT ASSOCIATION About: In February 2023, the Washington State Transit Association (WSTA) created a Clean Fuels Standard (CFS) Aggregation Program as a service to its members. The Carbon Credit Aggregation Pool (CCAP) is provided to assist WSTA Transit Agency Members, WSTA Associate Members, and potential partners who are not members such as other local governments, in managing the regulations, registration, reporting, and monetization of clean fuel credits under the Washington State Clean Fuel Standard. WSTA has retained the services of SRECTrade as its consultant to assist in the management of this program. SRECTrade has extensive experience in this industry including assisting local transit agencies and governments creating and monetizing credits under the California Low Carbon Fuel Standard, the program after which the Washington State CFS was modeled. CCAP Benefits for Participants: - Selected consultant manages all ongoing reporting, registration, credit generation, and credit monetization associated with the Clean Fuel Standard Program by the state; streamlining staff's work and cutting the burden on participating entities. - Never get a bill, only a check in the mail for the revenue of your credits. All fees are deducted from revenue generated from the sale of credits. - Lower fees to sell carbon credits on the market. The more participants in the pool aggregating credits, the lower the fees, generating more revenue for participants - Being part of an aggregating pool makes credits more marketable. - Access to experts to assist staff in assessing the benefits of environmental commodities such as clean fuel credits in developing and implementing Zero -Emission infrastructure. - Access to professional development opportunities throughout the year to understand current and future Clean Fuel Standard rules and regulations. How it works: - SRECTrade is under contract with WSTA to provide aggregating services for participants of the CCAP. - Participants will sign a Member Services Agreement (MSA) with WSTA to ensure roles, responsibilities and obligations are clear and understood by all parties. - Participants will appoint a lead and secondary lead who will work directly with WSTA and SRECTrade. - The financial relationship will be between WSTA and the participants, not with SRECTrade. - Participants will sign a Designation Form, required by the Department of Ecology, which enables SRECTrade to generate credits on behalf of each participant. - SRECTrade will onboard and provide each Participant with a user account on their online platform and reporting templates, which are used to streamline asset registration, fuel reporting, and credit transactions each quarter. Exhibits C and D to the MSA describe the platform user and privacy policies for using SRECTrade's online platform.