Template revised April 12, 2018.
COMMISSION
AGENDA MEMORANDUM
Item No.
8b
ACTION ITEM
Date of Meeting
April 14, 2020
DATE: February 22, 2020
TO: Stephen P. Metruck, Executive Director
FROM: Sandra Kilroy, Director, Maritime Environment & Sustainability
Jon Sloan, Sr. Manager, Environmental Programs
SUBJECT: Interlocal Agreements to support Smith Cove Blue Carbon Monitoring Study
Amount of this request:
N/A
Total estimated project cost:
$250,000
ACTION REQUESTED
Request Commission authorization to execute Interlocal Agreements with the Washington State
Department of Ecology (Ecology) and Washington State Department of Natural Resources (DNR)
to support a three-year evaluation of carbon sequestration, water quality improvement, and
ecological productivity associated with the Smith Cove Blue Carbon Pilot Project.
EXECUTIVE SUMMARY
The design and construction of the Smith Cove Blue Carbon Pilot Project was included in the 2018
Maritime Division expense budget. The port subsequently contracted with Puget Sound
Restoration Fund and Grette Associates to implement the work. The project work was completed,
and now in ongoing monitoring and adaptive management. Subsequent to the project
authorization, staff was approved to use $250,000 in previously authorized Energy &
Sustainability Committee funding to support a long-term evaluation of project benefits. To that
end, staff proposes to engage Ecology and DNR to assist with data collection, analysis, reporting,
and public outreach. The partnership will require two separate interlocal agreements (ILAs) to
formalize the scope of work and financial relationship.
JUSTIFICATION
Kelp and eelgrass have been widely recognized as keystone habitats for a wide range of fish and
wildlife species. Researchers have also begun to recognize that they are effective “carbon sinks,”
storing as much as a third-of-a-ton of carbon per acre per year. In that light, the Smith Cove Blue
Carbon Pilot Project was undertaken to make progress on Long Range Plan Objective 15, Priority
Action 4, “Optimize PORTfolio park and habitat restoration sites to sequester greenhouse gases
(GHG’s)”; and, Objective 17, “Restore, create, and enhance 40 additional acres of habitat in the
Green/Duwamish Watershed and Elliott Bay.”
COMMISSION AGENDA – Action Item No. _8b___ Page 2 of 5
Meeting Date: April 14, 2020
Template revised September 22, 2016; format updates October 19, 2016.
The degree to which the project can be credited towards either of these two objectives, however,
is based on assumptions from the academic literature. To that end, a long-term data collection
and analysis effort has been developed. The effort will contribute to knowledge and expertise
applicable to kelp, eelgrass and shellfish restoration in urban environments, and confirm the
ability to make important water quality and habitat improvements in Elliott Bay. The Smith Cove
project will demonstrate the port’s regional leadership in achieving balanced economic and
environmental benefits, while providing a case study for other agencies and interests to
implement similar blue carbon projects.
DETAILS
The Smith Cove Blue Carbon Pilot Project has specific habitat restoration elements that will be
evaluated for carbon sequestration, water quality (specifically seawater acidification) benefits,
and habitat productivity. These elements include bull kelp, eelgrass and Olympia oyster beds
installed between 2018-2020. If approved, Port staff will work the Washington State
Departments of Ecology (Ecology) and Natural Resources (DNR) to study and evaluate project
effectiveness and benefits of the elements.
The Interlocal Agreements (ILAs) that are required to formalize this arrangement will include
the following provisions:
• ILA with DNR: The Port will provide $163,500 in funding to support 50% of a Natural
Resource Scientist II position to assist with the Smith Cove study in collaboration with
Port staff. The DNR Scientist II will collect pH data, shellfish survival rates, and other
data for three years, as part of the Acidification Nearshore Monitoring Network
(ANEMONE) program. The ANEMONE program includes nine study sites (including Smith
Cove) where pH measurements are being taken over time to measure the rate and
magnitude of seawater acidification in Puget Sound.
• ILA with Ecology: The Port will provide $36,500 in funding to Ecology to support high-
level technical oversight, analysis, and participation by Dr. Micah Horwith, Washington
State’s ocean acidification (OA) expert. Smith Cove will be integrated into his ongoing
ocean acidification monitoring program, including at least two vessel-based data
collection events.
• DNR and Ecology will create a Community-Based Science Plan to allow for participation
in the Smith Cove study by members of the Port’s neighboring communities. The DNR
Scientist II will manage the community-based science program in collaboration with Port
Community Affairs staff.
COMMISSION AGENDA – Action Item No. _8b___ Page 3 of 5
Meeting Date: April 14, 2020
Template revised September 22, 2016; format updates October 19, 2016.
• Ecology data and ANEMONE program data will be combined and analyzed by Dr.
Horwith and the DNR Scientist II, who will collaborate to present findings to the Port and
community partners on an annual basis for three years.
• At the end of the three-year study period, DNR and Ecology will produce a Final Report.
Depending on the results of this work, additional kelp, eelgrass and oyster restoration may be
promoted as a way to contribute to the Port’s greenhouse reduction goals, reduce seawater
acidification, and provide habitat for imperiled species of fish and wildlife.
Schedule
The majority of pre-project baseline data collection occurred in 2017-2018. The development of
the long-term study plan occurred in collaboration with Ecology and DNR in 2019 and will be
updated upon approval of the ILAs. The proposed study will include limited additional baseline
data collection, followed by extensive monitoring over a three-year period.
Activity
Sept. 11, 2018
March 25, 2020
2020
2020
2021
2022
2023
Cost Breakdown
This Request
Total Project
Study Plan/Design
$0
$0
Study implementation
$250,000
$250,000
Total
$250,000
$250,000
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1. Engage consultants to undertake the study rather than Ecology and DNR.
Cost: >$360,000
Pros: Utilizes existing IDIQ contracts.
Cons: Exceeds authorized budget for study.
This is not the recommended alternative
Alternative 2. Engage UW researchers and students rather than Ecology and DNR.
Cost: >$500,000
COMMISSION AGENDA – Action Item No. _8b___ Page 4 of 5
Meeting Date: April 14, 2020
Template revised September 22, 2016; format updates October 19, 2016.
Pros: Enhances port’s relationship with UW. Scientific bandwidth of UW adds
credibility.
Cons: Cost is significantly higher than Ecology/DNR and exceeds authorized budget.
Also, effort is limited by constraints associated with school year and availability
of UW staff/students.
This is not the recommended alternative
Alternative 3. Execute ILA’s with Ecology and DNR to undertake study.
Cost: <$250,000
Pros: Engages public-agency partners that are already undertaking this type of work in
the area. Aligns with community-based science initiative getting underway at
DNR.
Cons:
This is the recommended alternative
FINANCIAL IMPLICATIONS
The Smith Cove Blue Carbon Pilot Project was funded for $295,000 in the 2017-18 Maritime
Division expense budget. The Commission authorize use of an additional $250,000 in 2018 to
support the long-term study. No additional funding is being requested.
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original estimate
$0
$0
$0
AUTHORIZATION
Previous authorizations
0
$545,000
1
$545,000
Current request for authorization
0
0
0
Total authorizations, including this request
0
0
$545,000
Remaining amount to be authorized
$0
$0
$0
1
Includes $295k authorized in 2018 Maritime Division expense budget and $250k authorized in Energy &
Sustainability Committee funding ($1m)
Annual Budget Status and Source of Funds
Funds from the Energy & Sustainability Committee needed to implement the ILAs are previously
authorized and will be allocated in the 2020-23 expense budgets. No funds are being requested
as part of this authorization.
COMMISSION AGENDA – Action Item No. _8b___ Page 5 of 5
Meeting Date: April 14, 2020
Template revised September 22, 2016; format updates October 19, 2016.
Financial Analysis and Summary
Project cost for analysis
N/A
Business Unit (BU)
N/A
Effect on business performance
(NOI after depreciation)
N/A
IRR/NPV (if relevant)
N/A
CPE Impact
N/A
Future Revenues and Expenses (Total cost of ownership)
N/A
ATTACHMENTS TO THIS REQUEST
(1) Presentation slides
(2) Draft-Final Interlocal Agreements (ILAs) w/ Ecology and DNR
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
Sept. 11, 2018 – The Commission moved to approve the Smith Cove Blue Carbon Pilot Project
as a recipient of Energy & Sustainability Committee funding