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Westborough AFC debates adding an internal cost of carbon to capital‑planning decisions
Summary
Sustainable Westborough’s Pete Dunbeck proposed establishing a town "Westboro internal cost of carbon" (WIC) to be used as a guidance factor in life‑cycle net‑present‑value analyses for energy‑related capital projects; committee members favored a policy but debated whether to use a fixed WIC, a range, or an alternate per‑ton premium method.
Sustainable Westborough volunteer Pete Dunbeck proposed on May 12 that the Town of Westborough adopt an "internal cost of carbon" — a single dollar-per-ton metric the town would apply as a guidance factor in net-present-value analyses for energy-related capital projects.
"I'm proposing we call it the Westboro internal cost of carbon," Dunbeck said, describing a straightforward approach: multiply a project's lifetime CO2‑equivalent emissions by the WIC (dollars/ton), convert that to an annualized cost and combine it with cash NPV calculations so that decision‑makers can compare projects consistently. He emphasized the metric would be guidance, not a binding rule.
Dunbeck showed examples in a spreadsheet and cited a library chiller decision where lifecycle replacement costs and an added carbon metric tipped the balance toward a lower-capacity option. He said he tested values including $0, $200 and larger federal/state figures and recommended starting conservatively, suggesting $200 as a possible starting point.
Committee members pressed on methodology and presentation. One member recommended computing the cash NPV difference between options and dividing by the tonnage reduction to produce a tangible dollars-per-ton premium (referred to in discussion as the "Josh method"). Other members questioned whether emissions should be discounted like cash flows, how often the WIC should be revisited, and who should set the number. Dunbeck said the town manager, supported by Sustainable Westborough and the sustainability coordinator and with school representation, should set and periodically review the number.
Members expressed general support for creating a policy to standardize how carbon and cash factors are weighed, while debating whether to adopt a single fixed WIC, a range (e.g., $190–$210), or to present both cash NPV and a normalized dollars-per-ton figure to make trade-offs clearer to voters. The committee asked Dunbeck and proponent Josh to provide a short write‑up of the alternative calculation method for staff and Sustainable Westborough to consider.
Chair said the committee's majority preference and written feedback would be forwarded to Sustainable Westborough, the Select Board and the School Committee for further consideration.
