2 3 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 39 40 41 42 43 44 EXHIBIT A: SUSTAINABLE EVALUATION FRAMEWORK POLICY DIRECTIVE SECTION 1. Purpose. The primary purpose of this policy is to require the application of the Sustainable Evaluation Framework to all capital project decisions and selected key operational decisions to advance the Port's sustainability goals and objectives. The policy will advance the Port's Century Agenda strategy to be the greenest, and most energy efficient port in North America and the corresponding objectives including reducing greenhouse gas emissions by conserving energy and/or using renewable energy. The Port finds that to advance these goals and objectives, it is necessary to establish a Portwide process that reduces the environmental and societal impacts associated with capital projects and key operational decisions in a manner that is efficient and effective, uses Port resources wisely, and provides transparency for the Commission, the public and Port staff. SECTION 2. Definitions. When used in this policy directive, the following words and phrases shall have the meanings given below unless the context in which they are included clearly indicates otherwise: "Sustainable Evaluation Framework" refers to a set of criteria recommended and adopted by the Commission (Motion 2017-14, adopted December 19, 2017) to assist the Port in achieving its sustainability goals. The criteria are in addition to other project evaluation criteria such as return on investment or total cost of ownership. The Framework criteria are: • Reduce GHG emissions • Protect health and the environment • Increase resilience • Support local economic development • Advance innovation • Leverage and develop partnerships • Advance equity "Embodied carbon" is the carbon footprint of a material. It considers how much greenhouse gas (GHGs) is released throughout the supply chain and is often measured from cradle to (factory) gate, or cradle to site (of use). "Scope 1, 2, and 3 Greenhouse gas (GHG) emissions" refers to the GHG Protocol Corporate Standard that classifies a company's GHG emissions into three 'scopes.' Scope 1 emissions are direct emissions from owned or controlled sources. Scope 2 emissions are indirect emissions from the generation of purchased energy. Scope 3 emissions are all indirect emissions (not 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 included in Scope 2) that occur in the value chain of the reporting company, including both upstream and downstream emissions. "Sustainable Design Approach" is the recommended categories and sustainability concepts, approaches, and ideas that staff expect to explore and evaluate for a given capital project. The Approach is developed by the Sustainable Project Assessment and Review Collaboration (SPARC, described below) during the planning phases of a given project and will be used by the respective project design teams to inform their assessments and analyses to focus on those areas that may provide significant sustainability benefits for that project. "Sustainable Design Strategy" is the recommended course of action that a project team is expected to implement in constructing its proposed project. The Sustainable Design Strategy includes the results of the analyses conducted during the design phase of the project and recommended suite of actions that are expected to advance the Port's sustainability goals as appropriate for that project. "Sustainable Project Assessment and Review Collaboration" (SPARC) refers to a group of internal and external experts as appropriate, determined by the Port as having professional expertise related to the sustainability opportunities relevant to a given Port capital project or key operational decision. "Key operational decisions" are decisions about aviation and non-aviation operations that are identified by the Executive Director, Senior Director of the Environment and Sustainability Center of Expertise and/or the Director of the effected business unit as in need of review, because the decisions have energy use implications, GHG reduction opportunities, or other potential sustainability or societal impacts. "Port-wide Sustainability Goals" are identified in Exhibit A. SECTION 3. Scope and Applicability. This policy directive establishes guidance on integrating sustainability into all capital projects and key operational decisions across the Port, in an efficient and effective manner. For capital projects and key operational decisions that meet the threshold for Commission action identified in the Delegation of Responsibility and Authority, all capital project teams and operational staff shall integrate sustainable approaches into planning, design, construction, procurement, and other operations consistent with this policy. Leasing shall be considered part of the scope of this policy per the outcomes of Section 6. G. This policy directive ensures that the Port will implement an efficient and effective process for developing and implementing sustainable designs for capital projects; creates a responsibility to identify key operational decisions that would benefit from a sustainability review; and creates a process for reviewing and tracking sustainability outcomes from projects for the Commission and public. Port of Seattle Sustainable Evaluation Framework Policy Directive Page 3 of 7 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 SECTION 4. Responsibilities. The Port's Executive Director or a delegate shall ensure the policy is implemented and adequately funded, and that the Sustainable Evaluation Framework is integrated into capital projects and key operational decisions across the Port. The Executive Director shall also ensure that decisions associated with the application of the Sustainable Evaluation Framework are transparently documented and publicly exhibited so that the Port of Seattle Commission can review, in public, alternatives and trade-offs that describe how a project can meet its GHG and sustainability and other societal goals. The Executive Director shall also ensure that the program evaluation meets the purpose and timeliness identified in Section 6 of this policy. SECTION 5. Policy. To integrate the Framework into capital development design and construction processes and key operational decisions, the Port shall: A. Develop and implement a tiered approach that focuses Port resources on capital projects that have the greatest opportunities to meet the Commission's directive in the Framework: (1) Tier 1: Smaller, less complex, projects that would follow Port standards and specifications. (2) Tier 2: Medium-sized, or more complex, projects that have opportunities for sustainability benefit would be subject to targeted sustainability analyses and strategies. Tier 2 projects may receive a cost per ton of carbon calculation. (3) Tier 3: Large, or the most complex, projects with significant opportunities that may require a sustainability certification along with other targeted sustainability analyses and strategies, as applicable. Tier 3 projects will receive a cost per ton of carbon reduction analysis. B. Establish a team of project-specific experts (referred to as the Sustainable Project Assessment and Review Collaboration or SPARC) to leverage Port expertise and knowledge of existing and emerging sustainability practices for capital projects and key operational decisions to: (1) Identify, review, brainstorm, and recommend sustainability concepts and ideas for project and operational teams to consider and evaluate during the development and design stage of Port projects. (2) Encourage project and operational teams to evaluate and consider innovative strategies to reduce emissions and energy use beyond traditional approaches. (3) Select and apply the relevant Sustainable Evaluation Framework criteria to highlight tradeoffs and benefits during development of the Sustainable Design Approach and review of key operational decisions. Port of Seattle Sustainable Evaluation Framework Policy Directive Page 4 of 7 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 C. SPARC recommendations shall be documented in a Sustainable Design Approach for each capital project and presented to Commission along with the request for authorization for design funds. (1) The Sustainable Design Approach shall include a recommendation as to whether a project should pursue an applicable third-party sustainability certification. (2) Capital project teams shall evaluate and quantify the sustainability costs and benefits of the Sustainable Design Approaches as part of the design process. D. Capital project teams shall work with the SPARC to develop and recommend a Sustainable Design Strategy that shall be included in the final construction authorization for each project. E. The Senior Director, Engineering, Environment, and Sustainability shall be consulted regarding any changes to the Sustainable Design Strategy that occur after Commission authorization. The Senior Director shall brief the Energy and Sustainability Committee on those changes. F. Recognize project teams that meet or surpass their project-specific goals to encourage innovation and environmental sustainability achievements. SECTION 6. Program Evaluation. A. Port staff shall prepare and deliver to the Commission an Annual Sustainable Evaluation Framework Progress Report by June 30th of each year that includes progress and recommendations to achieve the policy outlined in Section 5. The Progress Report shall include: (1) The Sustainability Scorecard to provide context for progress on reaching GHG reduction goals. (2) A summary of sustainability elements that have been identified in the Sustainable Design Strategies for each project. (3) Description of the implementation of the framework as part of each capital project and key operational decisions, including those strategies that were considered but ultimately not included in the project. (4) The estimated GHG emission reductions related to each project and the cost per metric ton of GHG reduced for those projects, where such a calculation was used. (5) Other sustainability benefits associated with projects as appropriate. B. By March 31, 2020, present a Sustainable Evaluation Framework Guidance Document to the Commission that includes implementation guidelines for the policies listed in SECTION 5 of this policy. C. By June 30, 2021, present findings and recommendations to the Energy and Sustainability Committee that outlines how key operational decisions were identified Port of Seattle Sustainable Evaluation Framework Policy Directive Page 5 of 7 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 and how the decisions were delivered to Commission and the public. Incorporate these findings into the final Sustainable Evaluation Framework Guidance Document. D. By June 30, 2021, present to the Commission recommendations for incorporating equity and resiliency considerations into the Sustainable Evaluation Framework or the final Sustainable Evaluation Framework Guidance Document. E. By December 30, 2021, present to the Commission recommendations for updating and revising Port construction specifications and standards to reflect advancements in sustainable materials, energy efficiency, and sustainable design approaches. Recommendations will include consideration of total cost of ownership and sustainability costs and benefits. F. Within 90 days of implementation of this policy, Port staff shall deliver a timeline and scope of work for the development and pilot of incentives to reduce embodied carbon in construction materials through a partnership with external partners. G. By December 30, 2021, present to the Commission recommendations for incorporating the development of long-term lease agreements into the Sustainable Evaluation Framework and/or the final Sustainable Evaluation Framework Guidance Document. EXHIBIT A Century Agenda and Current Port Policies Summary A summary of Port of Seattle sustainability goals and objectives as described in the Port's Century Agenda, Environmental Scorecard, and Ground Transportation Principles and Goals Policy Directive, and a Commission briefing is provided for reference below: Carbon (GHG) Reduction1 Energy2 Airport Ground Transportation Policy Directive3 Reduce Scope 1 & 2 emissions: ▪ 15% below 2005 levels by 2020 ▪ 50% below 2005 levels by 2030 ▪ Carbon neutral by 2050 or carbon negative by 2050 Scope 3 emissions: ▪ 50% below 2007 levels by 2030 ▪ 80% below 2007 levels by 2050 Meet all increased energy needs with conservation and/or renewables. Reduce curbside private vehicle pickup/drop off from 41 percent to 30 percent of mode share by 2030. 1 Port of Seattle Century Agenda Strategic Objectives. Downloaded October 2019. https://www.portseattle.org/page/century-agenda-strategic-objectives. 2 Port of Seattle Century Agenda Objectives, 2019. Port of Seattle Sustainable Evaluation Framework Policy Directive Page 6 of 7 Reduce Scope 3 GHG emissions from passenger vehicles to 50 percent of 2007 levels by 2030. Air Pollution 4 Water Quality 5 Waste Reduction 6 Habitat/Land Restoration7 Water Conservation8 Northwest Ports Clean Air Strategy 205 206 207 Maintain a maximum 15-minute travel time from the airport clock tower to terminal curb or parking garage. Reduce particulate matter pollution by 50% from 2005 levels. Meet or exceed agency requirements for stormwater leaving Portowned or operated facilities. Solid waste: 60% diverted from landfills Construction waste: 90% diverted from landfills Restore, create, and enhance 40 additional acres of habitat in the Green/Duwamish watershed and Elliott Bay. Reduce projected future water consumption by 12% by 2030 Guides clean air goals for Northwest Ports. Revision History 3 Port of Seattle Commission Resolution No.3759, July 9, 2019. Port of Seattle Century Agenda Strategic Objectives, 2019. 5 Port of Seattle Century Agenda Strategic Objectives, 2019. 6 Port of Seattle Environmental Scorecard, 2018. 7 Port of Seattle Century Agenda Strategic Objectives, 2019. 8 Strategy for a Sustainable Sea-Tac. Commission Briefing, 2/10/2015. 4 Port of Seattle Sustainable Evaluation Framework Policy Directive Page 7 of 7