DATE: December 10, 2019
SUBJECT:
Title
PRESENTATION AND RESOLUTION AUTHORIZING AGREEMENT WITH BLUE SOURCE, LLC FOR LOW CARBON FUEL STANDARD (LCFS) CONSULTANT SERVICES FOR A TERM OF UP TO FIVE YEARS
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EXECUTIVE SUMMARY:
The State of California's Low Carbon Fuel Standard expanded its optional participant definition in 2019 to include some operations by the District and its tenants. Specifically, using grid power instead of diesel fuel to energize a cruise ship when berthed can create credits that can be sold in the LCFS market. The creation, registration, optimization and sale of the credits requires the expertise of a consultant with experience in the market for environmental attributes. Contracting with a consultant will provide the District with a stream of revenue that can be used to offset the capital cost of future electrification projects.
RECOMMENDATION:
Recommendation
Approve resolution authorizing agreement with Blue Source, LLC for low carbon fuel standard consultant services for a term up to five years.
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FISCAL IMPACT:[h1]
The contract will provide revenue for the District for the years 2020 - 2024. The LCFS credits are a commodity whose price varies over time depending on supply, demand and the rules created by the Air Resources Board. The District's estimate of future value given today's prices and Port resources is $400,000 per annum. The service fee is deducted by the service provider hence there are no payments required by the District.
COMPASS STRATEGIC GOALS:[h2]
This agenda item supports the following Strategic Goal(s).
* A Port that the public understands and trusts.
* A thriving and modern maritime seaport.
* A vibrant waterfront destination where residents and visitors converge.
* A Port with a healthy and sustainable bay and its environment.
* A financially sustainable Port that drives job creation and regional economic vitality.
DISCUSSION:
California established the Low Carbon Fuel Standard (LCFS) in 2012 and pla...
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