8/2/2018 Motion Authorize CEO to sign 2018 agreement with Puget - - PowerPoint PPT Presentation

PSE Green Direct Program – Phase 2 Executive Committee 8/2/2018

 Authorize CEO to sign 2018 agreement with Puget Sound Energy (PSE) to enroll additional Sound Transit PSE electricity accounts in Green Direct Program.  Authorize CEO to sign amendment that lowers the price

• f the 2017 Green Direct

agreement.

Motion

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A utility program, approved by WA Utilities and Transportation Commission that creates fixed- rate, long-term contracts to buy locally produced renewable energy directly from Puget Sound Energy (PSE).

Green Direct

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2007 – Sustainability Initiative (R2007-12) Sustainability will be integrated into all aspects of agency business 2011 & 2015 – Sustainability Plans Electricity will be carbon neutral by 2030 2016 – ST3 Plan Approved Reaffirms agency carbon neutrality commitments 2017 – PSE Green Direct Phase 1 – Board Approved Enrolled all existing light rail utility accounts 2018 – Resource Conservation Manager hired Increased focus on energy efficiency & carbon neutrality

Background

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Carbon Neutrality Goals

• City of Seattle – gov’t & community by 2050.
• King County – county operations by 2025.

GHG Reduction Goals

• K4C - 25% by 2020 and 50% by 2035
• WA State – 1990 levels by 2020; 20% below 1990 by 2035

Alignment Strong regional GHG commitments

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 Board approved in January, 2017  A 10-year power purchase agreement starting in 2019  Wind energy project – Lewis County  6 Link light rail accounts - 6.7 million kWh of electricity  In 2019, Link light rail will run on 100% clean energy  No capital cost

Overview – Green Direct Phase 1

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Motion - Amendment to Green Direct Phase 1

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Recommendation: Authorize CEO to sign amendment letter to Green Direct – Phase 1

• Participation in Phase 2 = Lower costs for Phase 1
• Reduces fixed annual inflation rate
• Projected savings expected in 2021 opposed to 2023

Recommendation: expand Sound Transit’s participation by enrolling remaining PSE electricity accounts  10-year power purchase agreement starting in 2021  32 accounts - 2.4 million kWh  Solar energy project – South Central WA  No capital cost  Lowers utility rates by 5%

Motion – Enroll in Green Direct Phase 2

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$196,000 savings over 10-year term

Annual Cost

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Projected Cost Savings – Phase 2

PSE Green Tariff Medium Rate Projection $- $50,000 $100,000 $150,000 $200,000 $250,000

2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Green Direct Rate Regional Rate Projection

• 96% reduction in

GHG emissions from electricity

• Most cost-effective

path to reaching carbon neutrality goal

10 Greenhouse Gas Emissions Reduction 2018 – 2021

Environmental Benefit

1,000 2,000 3,000 4,000 5,000 6,000 Before Green Direct Green Direct Phase 1 Green Direct Phase 2 Electricity Emissions (MTCO2e) Puget Sound Energy SnoPUD, Tacoma, LL&P 71% reduction 96% cumulative reduction

• Continued growth

requires ongoing efforts to evolve carbon neutral strategy

• Potential Green

Direct Program expansion expected in 2022/23

4,000 8,000 12,000 16,000 20,000

Before Green Direct Green Direct Phase 1 Green Direct Phase 2 ST2 Projects Complete

Electricity Emissions (MTCO2e)

Puget Sound Energy SnoPUD, Tacoma, LL&P

71% reduction 96% cumulative reduction

Greenhouse Gas Emissions after ST2 Completion 2018 - 2024

Future Challenge

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Pathways to Continued Carbon Neutrality

Conservation Power Purchase Agreements

Onsite Renewables

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Cost effective – savings Benefits the environment Aligns with agency mission Demonstrates leadership

Summary Green Direct program

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Amy.Shatzkin@Soundtransit.org Sustainability Manager Jessica.Rose@Soundtransit.org Resource Conservation Manager