Item Description:
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Authorize the Hennepin County Tree Credits project; Approve Agmt A2311694 with Green Minneapolis and Agmt A2311695 with Green Minneapolis and City Forest Credits to implement the tree credits project, total est. receivable $125,000, various periods
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Resolution:
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BE IT RESOLVED, that Hennepin County Tree Credits, a forestry carbon offsets sales project be authorized; and
BE IT FURTHER RESOLVED, that the County Administrator be authorized to negotiate Agreement A2311694 with Green Minneapolis to collaborate on the tree credits project, define roles and obligations of the two organizations, and establish the process for the deduction of fees due to City Forest Credits and Green Minneapolis from offsets sales proceeds and the acceptance and use of proceeds by Hennepin County from the carbon offsets sales based on market-price, during the period May 16, 2023 through December 31, 2050; and that the controller be authorized to accept and disburse funds as directed; and
BE IT FURTHER RESOLVED, that the County Administrator be authorized to negotiate Agreement A2311695 with Green Minneapolis and City Forest Credits to implement the Tree Credits project and to establish roles and responsibilities of the three organizations for the project, during the period May 16, 2023 through November 3, 2048; and
BE IT FURTHER RESOLVED, that upon review and approval by the County Attorney’s Office, the Chair of the Board be authorized to sign both agreements on behalf of the County; that the County Administrator be authorized to approve one 12-month extension to either or both agreements.
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Background:
In April 2021, Hennepin County adopted ambitious greenhouse gas emissions reductions goals - reduce emissions 45% from 2010 levels by 2030 and achieve net zero carbon emissions by 2050 (Resolution 21-0111S1).
Trees play an important role in fighting climate change and getting to net zero carbon emissions. Net zero carbon emissions is achieved by “balancing” a limited amount of carbon released with offsets that remove carbon from the atmosphere. Trees remove carbon dioxide from the atmosphere through photosynthesis and store carbon in their wood. The older the tree, the more climate benefits it provides.
The County’s Climate Action Plan includes strategies to cut greenhouse gas emissions and adapt to the changing climate in ways that reduce vulnerabilities and ensure a more equitable and resilient Hennepin County. The plan calls for planting, diversifying and maintaining trees and increasing the resilience of the county’s community forest, with a target metric of planting one million trees by 2030 through partnerships with cities, Three Rivers Park District and other community partners. The County has reached nearly 25% of this goal, or 244,000 trees, in just three years.
The Environment and Energy Department is creating Hennepin County Tree Credits, a forestry carbon offsets sales project to generate supplemental revenue to plant and maintain more trees and to demonstrate a new tool available to municipal governments through which they can supplement their own forestry budgets and improve their communities’ tree canopies.
The project’s tree credits are comprised of 1,000 trees already planted on County property. The estimated 2,045 metric tons of carbon offsets will be certified by City Forest Credits, a non-profit 501(c)3 carbon registry, and marketed by Green Minneapolis, a non-profit 501(c)3 conservancy organization, to companies that have made documented greenhouse gas emissions reduction commitments.
Demonstrating this new funding mechanism is important because it is increasingly difficult to improve the county’s community forest due to Emerald Ash Borer (EAB). This invasive insect is expected to kill approximately one million ash trees, roughly 15% of the county’s tree canopy, in the next few years. With EAB infestations found in most of the county’s cities, local government resources are overwhelmed and some cities are having to remove ash trees without the ability to replace the lost trees. In addition to the lack of funding and capacity constraints, local municipal forestry programs are also facing rising costs to remove trees and manage the wood waste.
The tree canopy throughout Hennepin County is threatened, but the impacts of these threats are not experienced equally. Countywide data analysis has found a direct correlation between areas with less tree canopy and areas with poorer air quality and less favorable economic and health outcomes. Residents in these canopy-deficit areas are the most vulnerable to extreme heat and associated serious health risks. Without more proactive efforts to improve the tree canopy, the loss of tress from emerald ash borer will make these disparities worse.
Current Request: This request is for Hennepin County Board authorization for the Hennepin County Tree Credits project - a forestry carbon offsets sales project.
This request also is to authorize the County Administrator to negotiate Agreement A2311694 with Green Minneapolis to collaborate on the tree credit project, define roles and obligations of the two organizations, and establish the process for the deduction of administrative fees due to City Forest Credits and Green Minneapolis from offsets sales proceeds and the acceptance and use of proceeds by Hennepin County from the carbon offsets sales, during the period of May 16, 2023 through December 31, 2050, with an estimated total receivable amount of $125,000. The County will use the proceeds only on new tree planting and maintenance.
This request is also to authorize the County Administrator to negotiate Agreement A2311695 with both Green Minneapolis and City Forest Credits to implement the tree credits project and establish the roles and responsibilities of the three organizations, during the period May 16, 2023 through November 3, 2048.
Impact/Outcomes: The creation and implementation of the Hennepin County Tree Credits project will support Hennepin County’s efforts to create a healthier, more resilient and equitable tree canopy by providing a supplemental source of funding for the County’s forestry work. The project also is an opportunity for Hennepin County to demonstrate a funding mechanism to our external partners, demonstrating how they can supplement their forestry budgets and improve the county’s tree canopy.
Approval of these agreements supports the County’s efforts to reduce disparities by providing a mechanism to generate additional revenue that can be used to plant and maintain trees within the county. Canopy-deficient areas of the county are correlated with reduced air quality, and residents in these areas are also disproportionately affected by extreme heat events and other climate impacts. Establishing and maintaining healthy canopies throughout the county helps to reduce these inequities and ensure equitable health outcomes to residents.
recommendation
Recommendation from County Administrator: Recommend Approval