County Council approves expansion of transit carbon offset program

September 10, 2015

Summary

Program now includes the potential sale of any environmental benefit that can be monetized

Story

Earlier this year, the Metropolitan King County Council adopted legislation creating the first carbon credit program for any transit agency in the United States. The Council at its September 8 Council meeting expanded that program, unanimously adopting an ordinance expanding the Metro Transit carbon offset program to include other environmental attributes.

“King County Metro Transit has a long history of pioneering new environmental strategies, for our buses, fuels and now for our financials too,” said ordinance sponsor Larry Phillips, the chair of the County Council. “Expanding this program promises to help the environment and our bottom line.”

In February, the County Council approved an ordinance establishing the Transit Carbon Offset Program at Metro Transit, making Metro Transit carbon offsets available for purchase by individuals, governments, and private entities. The legislation called for Metro to study ways to make these offsets available.

As part of the study, Metro also examined a number of other environmental attributes which could be sold in addition to carbon offsets. Metro staff believes the County may be able to sell credits produced by Transit which meet the requirements of the Federal Renewable Fuel Standard. This process would be similar to the way that private companies or governments sell and purchase carbon offsets to help reach carbon neutrality.

Metro Transit staff are working on a contract with a third party vender to sell on appropriate commodities markets these credits, which are known as Renewable Identification Numbers or RINs.

This contract will be reviewed by the County Council along with a report that outlines a RIN sale process that maximizes financial returns, shows how the RIN sales will provide a stable revenue source and explains how the proposed transaction process would ensure both maximum price and transparency.

“This is a complex topic that the Council will need further information on before the county undertakes a RIN sales process,” Phillips said.