PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      4d 
ACTION ITEM 
Date of Meeting      June 24, 2014 
DATE:    June 3, 2014 
TO:      Tay Yoshitani, Chief Executive Officer 
FROM:    Janice Gedlund, Seaport Air Quality Program Manager 
SUBJECT:  US Environmental Protection Agency Diesel Emission Reduction Grant for Clean
Truck Program 
Amount of This Request:        $1,608,000   Source of Funds:    US Environmental
Protection Agency
Est. Total Project Cost:         $6,335,000 
Diesel Emission
Reduction Act Grant
and Seaport General
Fund 
ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer to increase the authorized
amount for the Clean Truck Program truck scrapping project by $1,608,000 for a revised total of
$6,335,000. Of the additional $1, 608,000, the United States Environmental Protection Agency
(USEPA) Diesel Emission Reduction Act (DERA) Grant will provide $1,200,000 and the Port
will contribute $408,000. 
SYNOPSIS 
The Port applied for and has been offered a $1,200,000 DERA grant from the USEPA to
augment the previously authorized Clean Truck Program Seaport Scrappage and Replacement
for Air in Puget Sound (ScRAPS 2) incentive project to replace or upgrade older polluting
drayage trucks that serve Port of Seattle marine terminals. This request adds $1,608,000 to the
previous authorization ($1,200,000 in USEPA funds and $408,000 in Port funds). The DERA
grant will pay 100% of the ScRAPS 2 incentives, and the Port will incur administrative expenses
to process and issue the incentives. The DERA grant will enable the Port to provide financial
incentives to at least 40 trucks, in addition to the previous estimate of 180 or more trucks planned
to be replaced or upgraded via the previously authorized grant-funded project, for a total of at
least 220 trucks. The DERA grant will provide 50% of the purchase price, up to $30,000 per
truck maximum, for at least 40 replacement trucks having a 2010 or newer engine.
The $1,608,000 total of this request does not include the third party (truck owner) contributions
toward the purchase of replacement trucks. The DERA grant considers the third party
contribution paid by individual truck owners to cover the balance of the purchase price
(estimated at $50,000 per truck for 40 trucks for total of $2,000,000) as the grant match. This
.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
June 3, 2014 
Page 2 of 9 
match does not flow through the Port and is therefore not included in the total project cost.
Project administrative costs are borne by the Port and are not considered as grant match. 
BACKGROUND 
The Port Commission adopted the Northwest Ports Clean Air Strategy on January 22, 2008. One
of the strategy's key objectives is to reduce marine-related diesel emissions, including those from
drayage trucks serving marine terminals. The strategy established and achieved a 2010 goal of
having all trucks entering container terminals to have 1994 model-year engines or newer,
because this engine year produced substantially less pollution than older trucks. One tool that
was used successfully to attain this goal was a financial incentive program for truck owners. The
Port partnered with the Puget Sound Clean Air Agency to implement the Scrappage and Retrofits
for Air in Puget Sound (ScRAPS) program. ScRAPS provided $5,000 or blue book value
whichever was higherto the owner in exchange for scrapping a truck. The program ran from
2009 to early 2011 and removed 280 pre-1994 trucks. The Port invested $1.6 million in the
program.
Per the strategy, the next phase of the Clean Truck Program will require trucks to meet the 2007
model year engine emission standards or equivalent by January 1, 2018. Model year 2007
engines are ten times cleaner than pre-2007 engines.
Port staff estimates that there are about 1,000 trucks calling frequently (200 time/year) at
container terminals. About 10% of these frequently calling trucks are already equipped with
model year 2007 engines or newer. With normal fleet turnover, it is expected that this
percentage will increase somewhat over the next four years. However, extensive outreach to the
trucking community indicates that financial and other assistance is necessary for some truck
owners to meet the Port's environmental requirements. 
On June 25, 2013 the Commission authorized the Port to proceed with a $4,202,000 drayage
truck replacement project utilizing a $3,535,000 Congestion Mitigation and Air Quality (CMAQ)
grant, administered by Washington State Department of Transportation with and USDOT
funding and $667,000 of Port funding. This amount provides resources to offer 160 truck
incentives at $20,000/truck.
On December 10, 2013 the Commission authorized an additional $525,000 for the project to
provide incentives for 20 additional trucks. Of the $525,000, $500,000 is from a State of
Washington Department of Ecology Clean Diesel Grant of $500,000, and Port match of $25,000. 
PROJECT JUSTIFICATION AND DETAILS 
Authorization of this request will leverage the Port's dollars with over $4.7 million in federal 
grant funds and $500,000 in state grant funds to augment the Port's second ScRAPS program.
Prior funding allows for financial incentives to upgrade or replace 180 or more trucks (160 to be
funded by the CMAQ grant and 20 by the state grant) serving the Port's marine container
terminals. The DERA grant will provide funding for an additional 40 trucks. Having newer
trucks serving our terminals will reduce air emissions and help implement our clean air strategy.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
June 3, 2014 
Page 3 of 9 
Project Objectives 
Supplement the currently funded Clean Truck Program's truck scrapping project to add
incentives to replace 40 additional older, polluting trucks serving Port marine terminals
with trucks meeting model year 2010 emission standards or equivalent by September
30, 2015. This is in addition to previous funding approval to upgrade 180 trucks to
2007 or newer engines. 
Utilize grant funding and Port funding in the most economical manner. 
Complete project in compliance with federal grant guidelines, on time and within
budget. 
Scope of Work 
The original scope of work approved previously by the Commission included incentivizing truck
scrapping and replacement, or installing EPA-certified emission reduction retrofits, to render
trucks equivalent to the emission standards of a 2007 model-year truck, for at least 180 trucks
(160 funded trucks by the CMAQ grant and 20 trucks by the state grant) serving Port of Seattle
marine terminals. This request adds the DERA grant that will add 40 truck incentives of up to
$30,000 each for replacement of trucks having a 2010 or newer engine. To accomplish this, the
Port will amend its interlocal agreement with Puget Sound Clean Air Agency that is staffing the
program resource center for the trucking community, to process the additional DERA grant
related applications for participation in the truck incentive program, and issue the additional
incentives. The Port will also amend its contract with a third party to audit the truck-scrapping 
program to ensure that the DERA grant obligations are met. 
Schedule 
Start          Finish 
Program design & contracting               June 2014       July 2014 
Program implementation (offer & issue incentives)  August 2014     October 2015 
Closeout                             November 2015   December 2015 
FINANCIAL IMPLICATIONS 
The following budget and authorization summary is for upgrading180 trucks (Project U00079) 
(160 trucks funded by the CMAQ grant, 20 funded by the Ecology grant), and 40 trucks (Project
U00134) funded by the DERA grant. 
Budget/Authorization Summary             Capital     Expense   Total Project 
Previous Authorizations (U00079)                $0    $4,727,000    $4,727,000 
Current request for authorization (U00134)          $0    $1,608,000    $1,608,000 
inclusive of $216,000 previously approved
by Seaport Managing Director 
Total Authorizations, including this request           $0    $6,335,000    $6,335,000 
Remaining budget to be authorized          $0          $0          $0 
Total Estimated Project Cost                    $0    $6,335,000    $6,335,000

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
June 3, 2014 
Page 4 of 9 

Project cost breakdown 
Ineligible   Total Port
Grant       Project      Total Cost    Eligible Grant   Port Match 
Costs      Costs 
Puget Sound
CMAQ   Regional Clean   $4,202,000    $3,535,000   $552,000   $115,000   $667,000 
Truck Program 
Ecology   Puget Sound
Clean    Regional Clean     $525,000      $500,000        $0    $25,000     $25,000 
Diesel     Truck Program 
DERA   Puget Sound
(this      Regional Clean    $1,608,000*      $1,200,000         $0*  $408,000*     $408,000 
request)   Truck Program 
TOTAL                $6,335,000     $5,235,000    $552,000   $548,000   $1,100,000 

*The DERA grant considers the third party contribution paid by individual truck owners to cover
the balance of the purchase price (estimated at $50,000 per truck for 40 trucks for total of
$2,000,000) as a grant match. This match does not flow through the Port and is therefore not
included in the total project cost. Project administrative costs are borne by the Port and are not
considered as grant match. 
Budget Status and Source of Funds 
The project funds relating to the CMAQ and the Ecology Clean Diesel grants were included in
the Port's 2014 Operating Budget and in the 2015 forecast used to develop the Plan of Finance.
The 2014 budget includes $3,117,000,000 in non-operating funds to support the Clean Truck
component of the Northwest Ports Clean Air Initiatives.
The DERA grant pays 100% of the truck replacement incentives, for a total of $1,200,000. The
DERA grant does not pay for administration of the incentives, such as contracted services or Port
labor so the Port will incur project administration costs. The project funds relating to the DERA
grant were not included in the 2014 Budget Operating Budget, but due to timing delays related to
the other two grants, the amounts included in the 2014 Budget are expected to cover all 2014
spending. Another source of funds may include reimbursement from truck scrapping/recycling,
which is estimated to be $80,000. 
The remaining balance of the Port investment will be requested in the Seaport 2015 budget. All
costs to be covered by the Port will be funded out of the Seaport Division's Non-Operating
General Fund.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
June 3, 2014 
Page 5 of 9 
Financial Analysis and Summary
CIP Category             N/A 
Project Type              Environmental  Non Operating Expense 
Risk adjusted discount rate     N/A 
Key risk factors              insufficient number of truck owners apply for
incentives 
potential cost overruns due to project complexity or
unidentified additional changes needed 
Project cost for analysis        N/A 
Business Unit (BU)          Seaport 
Effect on business performance  The grant proceeds are reported as non-operating grant
revenue and the related project cost are reported as nonoperating
expense in 2014 and 2015. 
IRR/NPV             N/A 
Lifecycle Cost and Savings
STRATEGIES AND OBJECTIVES 
This project aligns with the following Port strategic objectives: 
The Century Agenda strategy to be the greenest and most energy-efficient port in North
America, and associated objective to reduce air pollutant emissions by 50% from 2005
levels. Model year 2007 engines emit ten times less particulate matter than 1994-2006
engines.
The Century Agenda strategy to position the Puget Sound region as a premier
international logistics hub. Newer trucks will be cleaner, safer and more reliable. 
The project supports the Port-wide strategy to manage our finances responsibly. This
project leverages Port dollars with federal and state grant monies. 
TRIPLE BOTTOM LINE 
Economic Development 
The Seaport business plan notes that environmental stewardship provides a business advantage.
Implementing another truck scrapping program will help the Port meet the goals of the
Northwest Ports Clean Air Strategy, which is incorporated into the Seaport's Green Gateway
Strategy. Newer trucks will be cleaner, safer and more reliable. 
Environmental Responsibility 
The purpose of this project is to replace older trucks with models that produce ten times less
pollution. Old trucks that are replaced will be required to be scrapped so that they cannot be
used elsewhere. The scrapping process maximizes reuse of materials.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
June 3, 2014 
Page 6 of 9 
Community Benefits 
The project helps to clean the environment and protect public health by reducing diesel exhaust
emissions from 220 older trucks and assists truck owners and operators who are Port business
partners to upgrade their trucks to newer models that will enable them to continue working when
restrictions on pre-2007 engine trucks go into effect. Many of the local trucking companies that
will benefit are small businesses. Many of the independent owners and operators are immigrants
with limited English language proficiency and lower incomes. The public health benefit of the
avoided particulate emissions from all 220 trucks is valued at approximately $3.6 million per
year (based on USEPA's Diesel Emission Quantifier Health Benefits Methodology). 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1)  Do not expand the project to offer a clean truck ScRAPS 2 incentive program to
40 additional trucks. Without an incentive program it will be difficult for some truck
owners/operators to stay in business when the requirement for 2007 model year engines takes
effect. This is not the recommended alternative. 
Alternative 2)  Offer clean truck ScRAPS 2 incentives to 40 additional trucks using only Port
funds.  This would require significantly more Port dollars.  This is not the recommended
alternative. 
Alternative 3)  Accept the DERA grant and augment the existing clean truck ScRAPS 2
incentive to provide incentives to an additional 40 trucks. By leveraging Port funds with this
grant, more trucks can be upgraded to meet the Port's business and environmental objectives.
This is the recommended alternative. 
ATTACHMENTS TO THIS REQUEST 
USEPA notice of funding award 
Port of Seattle DERA grant application 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
December 10, 2013  the Commission authorized executing an agreement with the State
of Washington Department of Ecology to accept a Clean Diesel grant for the ScRAPS 2
project and to increase the project budget with grant and Port funds. 
December 10, 2013  the Commission adopted the 2013 Northwest Ports Clean Air
Strategy. 
December 3, 2013  the Commission was briefed on the final Northwest Ports Clean Air
Strategy 2013 Update. 
June 25, 2013  the Commission was briefed on the draft 2013 Northwest Ports Clean Air
Strategy. 
June 25, 2013  the Commission authorized executing an agreement with the Washington
State Department of Transportation to accept a Congestion Mitigation Air Quality grant

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
June 3, 2014 
Page 7 of 9 
and to proceed with the grant-funded project to provide incentives for replacing or
upgrading 160 or more drayage trucks to meet 2007 emission standards. 
December 4, 2012  the Commission was briefed on the results of the 2011 Puget Sound
Maritime Air Emissions Inventory and options for accelerating the NWPCAS truck goals. 
May 1, 2012  the Commission authorized to sign agreement 20090046 Amendment 5
with the Puget Sound Clean Air Agency to transfer $1,050,000 in funds to support the
implementation of the Northwest Ports Clean Air Strategy. Amendment 5 increased the
total amount transferred from the Port to PSCAA since 2009 to $5,216,250. 
February 7, 2012  the Commission was briefed on the Northwest Ports Clean Air
Strategy and on the Port's current air quality program effort, and draft recommendations
on options for accelerating Seaport Clean Air Strategy goals. 
July 12, 2011  the Commission was briefed on the Northwest Ports Clean Air Strategy
2010 Implementation Report and interim report on Accelerating Clean Air Goals. 
February 1, 2011  the Commission authorized to sign agreement 20090046 Amendment
4 with the Puget Sound Clean Air Agency to transfer $1,160,250 in funds to support the
implementation of the Northwest Ports Clean Air Strategy, and to extend the end date
from June 30, 2011, to June 30, 2013. Amendment 4 increased the total amount
transferred from the Port to PSCAA since 2009 to $4,166,250. 
January 4, 2011  the Commission adopted the "Motion to Accelerate Seaport Clean Air
Goals to 2015." 
December 7, 2010  the Commission was briefed on the Northwest Ports Clean Air
Strategy Implementation Status. 
November 9, 2010  the Commission authorized to increase the amount of the At-Berth
Clean Fuels Vessel Incentive Program by $110,250, for a total 2010 annual program
budget of $951,750, to cover participation by the projected number of qualifying vessel
visits for the remainder of the year. 
June 8, 2010  the Commission authorized to supplement the value of the At-Berth Clean
Fuels Vessel Incentive Program by $541,500, for a total 2010 annual program budget of
$841,500. Within the $541,500, $135,000 represents funds that were originally approved
in 2009, but were not used until 2010. 
January 12, 2010  the Commission was briefed on the Seaport's Air Quality Program. 
August 25, 2009  the Commission received a Clean Air Update. 
August 25, 2009  the Commission authorized a revised Customer Support Package lease
amendment with Total Terminals Inc.; and authorized the Port to purchase energy
efficient light fixtures and related equipment for T-46, for an amount not to exceed
$680,000. 
June 23, 2009  the Commission received a briefing on the Northwest Ports Clean Air
Strategy 2008 Implementation Report.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
June 3, 2014 
Page 8 of 9 
April 14, 2009  the Commission authorized an agreement with Puget Sound Clean Air
Agency, to transfer $2.3 million ($1.15 million in 2009 and $1.15 million in 2010) from
the Port's operating budget to support the implementation of the Northwest Ports Clean
Air Strategy. 
April 14, 2009  the Commission authorized the execution of lease agreements with Total
Terminals Inc. for Terminal 46, SSAT (Seattle) for Terminal 25/30, SSA Terminals for
Terminal 18, and Eagle Marine for Terminal 5, to incorporate the Customer Support
Package and the Ports Clean Air Program into those leases. 
March 31, 2009  the Commission was briefed on the customer support package and the
Clean Air Program. 
February 10, 2009  the Commission held a policy roundtable discussion of the Clean Air
Program. 
December 2, 2008  the Commission authorized a transfer of $500,000 to the Puget
Sound Clean Air Agency for the At-Berth Clean Fuels Vessel Incentive Program. 
November 11, 2008  the Commission was briefed on the Port's Clean Truck Program. 
September 2, 2008  the Commission was briefed on the Port's Clean Truck Program for
drayage operations at West Coast Seaports. 
July 8, 2008  the Commission was briefed on the Port's Clean Truck Program. 
April 1, 2008  the Commission and the public were briefed on the Northwest Ports
Clean Air Strategy implementation. 
January 22, 2008  the Commission adopted the Northwest Ports Clean Air Strategy. 
December 6, 2007  the Commission was briefed on the revised draft of the Northwest
Ports Clean Air Strategy. 
August 28, 2007  the Commission adopted Resolution No. 3585, endorsing the U.S.
Proposal to the International Maritime Organization seeking more stringent air emissions
standards for ocean going vessels. 
April 10, 2007  the Commission was briefed on the Puget Sound Maritime Air
Emissions Inventory Project. 
March 27, 2007  the Commission authorized the amendment of the existing contract for
the Air Emission Inventory in the amount of $25,000, and to receive and spend
supplemental funding for the Puget Sound Maritime Air Emissions Inventory Project. 
February 16, 2007  the Commission passed a series of environmental motions that
required, in part, that staff present an air quality action plan for Commission approval. 
April 26, 2005  the Commission authorized joint development of the Puget Sound
Maritime Air Emissions Inventory and $500,000 for support and implementation of the
project.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
June 3, 2014 
Page 9 of 9 
February 9, 2005  the Commission adopted Resolution No. 3534, expressing its
commitment to Maritime Air Quality.