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35th Annual Airport Law Workshop
SUSTAINABILITY & RENEWABLE ENERGY
Elizabeth Leavitt
Port of Seattle
Sarah Keane
Kaplan Kirsch & Rockwell
Session #20
35TH ANNUAL AIRPORT LAW WORKSHOP
AIRPORT ENERGY AND SUSTAINABILITYMEETS THE LAW
2
Potential legal hurdles and opportunities: AIP funding for comprehensive planning
VALE grants for specific projects
ALP and Master Plan conformity
Lease or license arrangements
NEPA and other environmental compliance
Airspace, glint and glare review (solar, wind)
Power purchasing arrangements
35TH ANNUAL AIRPORT LAW WORKSHOP
OH MR. SUN, SUN, MR. GOLDEN SUN, PLEASE SHINE DOWN ON ME…
3
Drivers:
Local or state energy / climate goals
Long-term cost savings
Lots of open land and rooftops
Potential legal hurdles:
ALP and Master Plan conformity
Lease or license arrangements
NEPA and other environmental compliance
Airspace, glint and glare review
Power purchasing arrangements
35TH ANNUAL AIRPORT LAW WORKSHOP
START WITH THE MAP
4
Update the ALP if:
Changing use of airport property
Ground-mounted or change building max height
Require new footprint or change the footprint of existing structures
35TH ANNUAL AIRPORT LAW WORKSHOP
LEASE ? RELEASE?
5
• Consult with FAA & show prudent financial benefit
• Consider limited-scope license insteadLeasing?
• Get “written consent” from FAA• Formal release usually not required Deed restricted?
• May need release from grant assurances • Cumbersome process
Federally funded land?
35TH ANNUAL AIRPORT LAW WORKSHOP
LIONS AND TIGERS AND BEARS, OH MY!AKA….ENVIRONMENTAL REVIEW
6
NEPA triggered if:
FAA takes a formal action
Categorical Exclusion available if:
Max 3 acres (all equipment)
Not going to hurt birds or bats
Contracts include requirements to control dust, sedimentation, storm water and spills
Plus state and local requirements Image source: Audubon
35TH ANNUAL AIRPORT LAW WORKSHOP
BLINDED BY THE LIGHT?
7
Part 77 notice and review
Glint and glare review Solar glare
Hazard analysis tool
Image source: ForgeSolar
35TH ANNUAL AIRPORT LAW WORKSHOP
FEEL THE POWER!
Power purchase agreements Private party develops and owns project
Airport sponsor purchases power
Net metering arrangements Airport sponsor owns the project
“Behind-the-meter” directly offset purchases from the utility
8
35TH ANNUAL AIRPORT LAW WORKSHOP 9
HOW FAR CAN YOU GO?
Image source: Chattanooga Times Free Press
Sustainability and Renewable Energy
Elizabeth Leavitt
Senior Director
Engineering, Environment, and Sustainability
10
35TH ANNUAL AIRPORT LAW WORKSHOP
1. Meet all increased energy needs through conservation and renewable sources
2. Meet or exceed agency requirements for stormwater leaving Port-owned or -operated facilities
3. Reduce air pollutants and carbon emissions…
11
CENTURY AGENDA OBJECTIVES
GHG Type 2020 Goal 2030 Goal 2050 Goal
Scope 1 and 2 15% lower* 50% lower* CO2 Neutral
Scope 3 -- 50% lower** 80% lower**
* Compared to 2005 levels; ** Compared to 2007 levels
Century Agenda sets clear and ambitious targets
35TH ANNUAL AIRPORT LAW WORKSHOP
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
2010 2015 2020 2025 2030 2035
Liquid Fuels
Projected Load Growth
2011 Baseline
Electricity
Natural Gas
PORT-WIDE ENERGY FORECAST
12
MM
BT
U
Maritime electricity
35TH ANNUAL AIRPORT LAW WORKSHOP
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
2010 2015 2020 2025 2030 2035
PORT-WIDE GHG EMISSIONS FORECAST
13
Liquid Fuels
2011 Baseline
Electricity
Century Agenda Goal
Projected Emissions
To
nn
es
CO
2
Natural Gas
35TH ANNUAL AIRPORT LAW WORKSHOP
Energy efficiency Stage 3 Mechanical
Lighting upgrades
Renewable natural gas Boilers and bus fleet
Renewable diesel
Green Fleet
PSE’s Green Direct (wind power)
14
CARBON REDUCTION STRATEGIES
Port is pursuing multiple carbon reduction strategies
35TH ANNUAL AIRPORT LAW WORKSHOP
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
2010 2015 2020 2025 2030 2035
IMPACT OF SUSTAINABILITY STRATEGIES
15
Liquid Fuels
2005 Baseline
Electricity
Natural Gas
Century Agenda Goal
Conservation
To
nn
es
CO
2
Projected Emissions
35TH ANNUAL AIRPORT LAW WORKSHOP
RENEWABLE NATURAL GAS (RNG)
Replace CNG in boilers and buses
3 main sources
Landfills, wastewater treatment plants, and dairy farms
Currently in negotiations and expect to use fuel in 2020
Will meet carbon goals ten years early
When used in buses, receive federal credits (RINS) that reduce price
16
RNG market has evolved considerably in the last 5 years
35TH ANNUAL AIRPORT LAW WORKSHOP
CARBON REDUCTIONS IN SEA-TAC BUS FLEET RELATIVE TO CNG
17
RNG Electric
Emissions reduced relative to CNG (tons CO2/year) 1,220 1,200
$/ton of CO2 reduced relative to CNG $0 $925
RNG and electricity reduce similar amounts of carbon but at different price
35TH ANNUAL AIRPORT LAW WORKSHOP
COMPARING COSTS AMONG STRATEGIES
18
Strategy Approximate Cost/MT Carbon
% Carbon reduced/year
AV Solar: Main parking garage $10,000 0.3
Renewable natural gas (boilers) $400 70
Convert buses to electric $900 10
Stage 3 Mechanical Conservation $300 4
Renewable Diesel (fleet) $125 2
Green Direct – Wind $61 5
RNG Buses $0 5
Solar projects result in relatively high cost per ton of carbon reduced
35TH ANNUAL AIRPORT LAW WORKSHOP
Greater opportunities for strategic partnerships
Projects cost-effective due to:
Economies of scale
~25% “more sun” in eastern WA
Power purchase agreements (PPAs) in collaboration with other Ports
19
SOLAR AND WIND PROJECTS IN EASTERN WA
Off-site projects likely meet Port goals at lower cost
35TH ANNUAL AIRPORT LAW WORKSHOP
SUSTAINABLE AVIATION FUELS (SAF) PROGRAM
Goal: bring sustainable aviation fuels (SAF) to Sea-Tac International Airport
Key strategies Develop an Airline-Airport Cooperative
Model to work together on carbon reduction
Pursue legislative policies to bring down the high cost of SAF
Pursue FAA approval of the co-benefits of SAF (e.g., reduction of ultra-fine particles)
Education and advocacy
20
Program focuses on four strategies aimed at reducing the incremental cost of SAF
35TH ANNUAL AIRPORT LAW WORKSHOP
SAF CO-BENEFIT
21
FAA authorizes grant funds for Pre-Conditioned Air to reduce emissions
10% SAF also reduces particles, sulfur, and UFP, but small amounts
Federal funds could reduce the incremental cost of SAF and help spur market
35TH ANNUAL AIRPORT LAW WORKSHOP
LOW CARBON FUEL STANDARD (LCFS)
WA is at a competitive disadvantage for renewable fuels
The most effective policy instrument to build SAF market is a Low Carbon Fuel Standard like California
22
??
Policy harmony is needed to develop a SAF market outside California
35TH ANNUAL AIRPORT LAW WORKSHOP
Sustainable Project Initiative Incorporating sustainability into Port decision-making in capital
development projects
Analyze alternatives to reduce energy and greenhouse gases for larger capital projects
Transportation Management Association (TMA) Bring airport tenants together to provide more options for
carpooling
Create stronger advocacy for improved transit
23
EMERGING SUSTAINABILITY INITIATIVES
Transparency at Commission an underlying factor
35TH ANNUAL AIRPORT LAW WORKSHOP
ATTORNEY ADVERTISEMENT. The contents of this presentation, current at the date of publication, are for reference purposes only and do not constitute legal advice.The contents do not reflect the official opinion of Kaplan Kirsch & Rockwell LLP. Responsibility for the information and views expressed within this document lies entirely with the author(s).© 2019 Kaplan Kirsch & Rockwell LLP
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