Recitals:

Resolution 30357 established contingent authority in the department currently known as the Seattle Department of Construction and Inspections for budget and positions to allow prompt response to unanticipated changes in demand for permitting, plan review, and inspection.

Resolution 31627 established contingent authority in the Seattle Department of Transportation to meet demand for services in excess of the level planned in the biennial budget for the Street Use Division.

Chapter 70A.535 RCW establishes a Clean Fuels Program and RCW 70A.535.080 authorizes electric utilities to generate and sell credits based on electricity supplied for transportation.

Washington Administrative Code 173-424-220 provides a mechanism for a utility to generate revenue from sale of these credits.

Chapter 70A.535 RCW and RCW 70A.535.080 require net proceeds from such credit sales conducted by a utility be used to support transportation electrification activities within its service territory.

RCW 70A.535.080 mandates directing at least 30 percent of expenditures to federally designated nonattainment zones or Department of Health-identified disproportionately impacted communities.

The Transportation Electrification Strategic Investment Plan, adopted by the City Council in Resolution 32160, embeds equity as a guiding principle for spending revenue from Clean Fuel Standard credits.

RCW 35.92.450 and Seattle Municipal Code 21.53.015 authorize the City Light Department as a municipal utility to adopt and implement transportation electrification plans and associated incentives, programs, policies, and other mechanisms that accelerate installation of transportation electrification infrastructure to reduce greenhouse gas emissions from the transportation sector.

The value and timing of Clean Fuel Standard (CFS) credit revenues vary based on market conditions, resulting in revenue that cannot be accurately projected during the budget process.

Establishing contingent budget authority tied to actual receipt of CFS revenue will enable the City Light Department to advance transportation electrification in a timely manner while ensuring expenditures remain aligned with statutory requirements and available resources. Therefore,

Be it resolved by the City Council of The City of Seattle, the Mayor concurring:

Section 1. The City Light Department (City Light) shall include in its budget a schedule of contingent expenditure authority that may be activated upon receipt of Clean Fuel Standard (CFS) revenues. Such contingent authority shall correspond to increments of revenue received and shall not replace or limit the use of the supplemental budget process for CFS or other operational or programmatic needs.

Section 2. City Light shall monitor and report on CFS credit generation, market activity, and revenue receipts prior to requesting access to the contingent budget authority. Contingent budget authority may be activated upon verified receipt of net CFS revenues after written approval by the City Budget Office (CBO).

Section 3. Upon CBO approval, City Light shall use contingent budget authority only for transportation electrification activities eligible under RCW 70A.535.080.

Section 4. To support continuity of eligible transportation electrification investments, City Light shall provide an estimate of unutilized year-end appropriation to CBO and request that unutilized contingent budget authority be accessible for the subsequent fiscal year. CBO shall review the revenue information and shall approve the request if revenues are substantiated.

Section 5. City Light shall report annually to the City Council and the City Budget Office on:

A. CFS credits generated and revenues received in the prior year;

B. Expenditures made that are funded with CFS credits; and

C. Progress toward transportation electrification outcomes supported by these revenues.

Adopted by the City Council and signed in open session in authentication of its adoption on .

President of the City Council

Signed in concurrence on .

Katie B. Wilson, Mayor

Attested on .

Lenné Dedman, City Clerk

Seal