DISCLAIMER

 

06-0073R


RESOLUTION AUTHORIZING JOHNSON CONTROLS, INC., TO APPLY TO THE CLIMATE TRUST FOR A CARBON DIOXIDE OFFSET PROJECT GRANT AND AUTHORIZING A STANDSTILL AGREEMENT WITH CLIMATE TRUST.

BY COUNCILOR STOVER:

     RESOLVED, that the Duluth City Council does hereby authorize Johnson Controls, Inc., to submit a proposal on behalf of the city to the Climate Trust for a carbon offset project grant for Steam District No. 1 for the purpose of making improvements to the district facilities which will result in generation of carbon dioxide offset credits.

     FURTHER RESOLVED, that the proper city officials are hereby authorized to enter into a standstill agreement with the Climate Trust substantially in the form of that on file in the office of the city clerk as Public Document No. __________ committing the city not to sell or transfer any carbon dioxide offset credits generated as a result of such grant to any third party during the pendency of negotiations for said grant.


STATEMENT OF PURPOSE:  The purpose of this resolution is to authorize Johnson Controls, Inc., to submit a proposal to the Climate Trust for a grant to make improvements to the Downtown steam plant which will result in the creation of carbon dioxide offset credits and to commit to the Climate Trust that the city will not sell any such credits to anyone else during the pendency of the grant process.


The Climate Trust is a non-profit Oregon corporation created to promote and fund projects which will result in the creation of greenhouse gas emissions offset credits including carbon dioxide offset credits. It is funded by Portland General Electric, a utility that requires credits to offset emissions project from their new power generating facility at Port Westward, Oregon. The Trust has created a grant program to fund improvements which will result in the creation of such credits which it can use to meet their emissions requirements. The Trust has created a short list of companies that it has authorized to submit proposals, of which Johnson Controls is one.


Johnson Controls is very familiar with the steam generation facilities at the Steam District No. 1 steam plant. It has formulated a preliminary opinion that improvements can be made to the facility which will result in the generation of carbon dioxide credits and approached the Steam Co-op’s management, requesting authorization to submit a preliminary proposal to the Trust and to develop a final proposal which they could submit in the final competition for funding. All costs of developing and submitting the proposal, including payments to the Trust to cover its costs of analysis of the proposal, would be born by Johnson Controls and neither the city nor the district would have any responsibility for them. The recovery of their costs and their profit would hopefully come from the design and installation of the new equipment and systems which would produce the credits if the city’s proposal were chosen by the Trust for an implementation grant.


The Trust is requesting, in return for considering the proposal, that the city and district agree not to sell any credits which result from the grant-funded improvements to a third party during the pendency of the grant negotiations; the proposed standstill agreement would accomplish this.