Item no. 4a. Motion Meeting Date: Dec. 19, 2017 1 2 REVISED ENERGY AND SUSTAINABILITY MOTION 3 OF THE 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 PORT OF SEATTLE COMMISSION PROPOSED DECEMBER 19, 2017 PREAMBLE This motion furthers the recommendation of the Port's Energy and Sustainability Committee, unanimously chartered by motion on January 26, 2016. First, staff is instructed to develop an evaluation framework, the Sustainability Evaluation Framework, (Framework) which will inform Commission decisionmaking to advance the Port's energy and sustainability initiatives by transparently documenting environmental and societal considerations associated with Commission actions. Second, staff will select up to four pilot projects for approval by the Commission, to be used to validate the key environmental and societal components that will constitute the Framework. Third, staff is instructed to explore a method of valuing and internalizing the external costs of carbon. Fourth, Scope 2 carbon reduction goals are added to the Century Agenda, supplementing the previous addition of Scope 1 and Scope 3 goals, passed unanimously on April 11, 2017. Fifth, to implement the above mentioned actions and more broadly advance the Port's energy and sustainability goals, the Interim Executive Director will include adequate resources in the 2018 budget to to expand the Maritime program's focus from primarily regulatory compliance to include environmental sustainability and to and to support Aviation Facilities and Infrastructure to meet the new Century Agenda goals. Sixth, Port staff will coordinate with the Northwest Seaport Alliance, as COMMISSION AGENDA - Briefing Item No. 7e Meeting Date: October 24, 2017 39 40 41 42 43 44 45 46 Page 2 of 6 appropriate. TEXT OF THE MOTION Moved, that the Port of Seattle shall take the following actions: 1. Develop a Port Sustainability Evaluation Framework to assist the Port in meeting its greenhouse gas reduction and sustainability goals. 47 48 49 50 51 52 53 54 55 56 57 58 59 2. Select up to four pilot projects, divided between the airport and maritime, beginning with a solar project on Pier 69, to test and validate the Framework and determine how to incorporate the following environmental and societal components into the Framework to be used to more fully inform the Commission of project proposals including: a. Reduce greenhouse gas emissions b. Increase energy resilience c. Protect public health and the environment d. Support local economic development e. Advance racial and social equity f. Leverage partnerships g. Advance innovation 60 61 62 3. Evaluate and recommend methods for valuing and internalizing the external costs of carbon port-wide. 63 64 65 66 67 68 69 70 71 4. Adequately resource sustainability efforts to meet the recently amended Century Agenda greenhouse gas emission goals and to implement the Energy and Sustainability Committee recommendations. 5. Amend the Century Agenda to add Scope 2 goals. With the amendment, the greenhouse gas emission reduction goals will be as follows (new section in red): COMMISSION AGENDA - Briefing Item No. 7e Meeting Date: October 24, 2017 72 73 74 75 76 77 78 79 80 Page 3 of 6 a. Scope 1 emissions, which are direct greenhouse gas emissions from Port owned or controlled sources, shall be: i. 15 percent below 2005 levels by 2020. This advances the initial Century Agenda goal by 17 years. ii. 50 percent below 2005 levels by 2030. This advances the initial Century Agenda goal by 7 years. iii. Carbon Neutral by 2050 OR Carbon Negative by 2050. This creates a new long-term stretch goal. 81 82 83 84 85 86 87 b. Scope 2 emissions, which are indirect greenhouse gas emissions from consumption of purchased electricity, heat or steam. The new Portwide goals for Scope 2 shall be: i. 15 percent below 2005 levels by 2020. ii. 50 percent below 2005 levels by 2030. iii. Carbon Neutral by 2050 OR Carbon Negative by 2050. 88 89 90 91 92 93 c. Scope 3 emissions, which are greenhouse emissions the Port has influence over, not direct control. The new Port-wide goals for Scope 3 shall be: i. 50 percent below 2007 levels by 2030 ii. 80 percent below 2007 levels by 2050 94 95 96 97 6. Work with the Northwest Seaport Alliance through the Port of Seattle's Environment and Sustainability Center of Expertise (COE) to advance mutually shared goals, whenever practicable. 98 99 100 101 102 103 104 7. The COE is directed to present the four proposed pilot projects to the Commission within 90 days of passage of the 2018 Budget, to include a proposed timeline for completion of the pilot projects. 8. The COE will meet with key stakeholders across the Port including Project Management Group (PMG), Engineering, Facilities and Infrastructure, lease COMMISSION AGENDA - Briefing Item No. 7e Meeting Date: October 24, 2017 105 106 107 108 109 110 111 Page 4 of 6 teams and other teams as necessary to implement and review the pilot projects. The pilot project results will be presented to Commission, with a recommended Policy Directive. 9. The COE will report progress twice yearly on the Century Agenda greenhouse gas emission reduction goals and will maintain a public facing environmental scorecard reflecting that progress. 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 STATEMENT IN SUPPORT OF THE MOTION The Port of Seattle Commission unanimously chartered the Energy and Sustainability Committee by motion on January 26, 2016. The charter tasked the Committee to develop and propose Policy Directives to help guide the development of policies to support the Port of Seattle's greenhouse gas emissions reductions effort, with a focus on energy efficiency and alternative energy generation. Commissioners Felleman and Gregoire were named as Co-Chairs of the Committee. This motion is a culmination of those efforts. The Committee established four subcommittees comprised of a broad range stakeholders to assist in developing the recommendations included in this Motion, and embedded in the descriptions of the new FTE's in attachment B. The first recommendation of the Committee was unanimously passed by the Commission in a motion on April 11, 2017, amending the Century Agenda to reflect the Commissions increased commitment to reducing greenhouse gas emissions. The 2017 budget also created a one-million dollar fund to support the recommendations of the Committee, including further greenhouse gas reductions, leveraging matching funds and collaborating with neighboring jurisdictions. Sustainability Evaluation Framework The Committee has reviewed and recommends a pilot program based on Attachment A - the Port Sustainability Evaluation Framework, to assist the Port of Seattle in achieving two primary goals. The goal of the Framework is to advance energy and sustainability initiatives that will reduce greenhouse gas emissions and increase the resilience of its energy systems. The Framework will include any COMMISSION AGENDA - Briefing Item No. 7e Meeting Date: October 24, 2017 141 142 143 144 145 146 147 148 149 150 151 152 153 154 Page 5 of 6 current evaluation criteria, for example, return on investment or total cost of ownership. A clear Sustainability Evaluation Framework will increase transparency of the Commission decision-making process. The Committee also recognizes that the Port's existing decision-making processes include consideration of environmental and social criteria, but the framework is intended to increase transparency both within Port decision-making processes and with the community. In the past, the factors considered and the final decision to pursue or reject a potential project may not always be elevated to the Port Commission. With this motion, these factors will be evaluated and presented to Commission. Valuing and internalizing the external costs of carbon 158 This item instructs staff to explore a method of creating internal financial incentives for carbon reduction, such as determining or calculating an internal cost of carbon, for Port programs and departments. This could be a tool to reduce Port scope 1 and 2 carbon emissions. 159 Port-wide Sustainability Effort 155 156 157 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 Currently, the Port has a skilled environmental team focused on compliance with some dedicated sustainability expertise at the airport. The Interim Executive Director has included resources in the 2018 budget to support the sustainability activities developed by the Committee and staff per the April 11, 2017 "Motion Amending the Port of Seattle Century Agenda Greenhouse Gas Reduction Goals," that was unanimously supported by the Commission. That Motion instructed the Environment and Sustainability Center of Expertise (COE) to "to prepare an assessment of the actions, resources, and timelines necessary to develop and implement Policy Directives for review by the Commission, informed by the Committee work groups." In response, the COE delivered the "Energy and Sustainability Policy Directive Resource Assessment" to the Commission on July 11, 2017, see Attachment B. In coordination with the Committee, the Executive Director reviewed the Resource Assessment and will embed the recommended sustainability activities as described in Attachment C - Sustainability Resource Allocation Reccomendation. COMMISSION AGENDA - Briefing Item No. 7e Meeting Date: October 24, 2017 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 Page 6 of 6 Scope 2 Goals The addition of Scope 2 emissions was recommended by advisors to the Energy and Sustainability Committee and is a category of emissions that the Port has been working hard to reduce, including through green power purchases from Puget Sound Energy's Green Direct. Consistent with the Scope 1 and 3 goals added on April 11th, the Scope 2 goal is defined by the Greenhouse Gas Protocols as developed by the World Resources Institute and the World Business Council on Sustainable Development: Scope 1 are also referred to as Direct greenhouse gas emissions, and are defined as 'emissions from sources that are owned or controlled by the organization', Scope 2 are also referred to as Energy Indirect greenhouse gas emissions, and are defined as 'emissions from the consumption of purchased electricity, steam, or other sources of energy (e.g. chilled water) generated upstream from the organization'. Scope 3 are also referred to as Other Indirect greenhouse gas emissions, and are defined as 'emissions that are a consequence of the operations of an organization, but are not directly owned or controlled by the organization'.