PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA                      Item No.         5a 
ACTION ITEM                   Date of Meeting   December 10, 2013 

DATE:     November 22, 2013 
TO:        Tay Yoshitani, Chief Executive Officer 
FROM:    Stephanie Jones Stebbins, Director Seaport Environmental & Planning 
Janice Gedlund, Seaport Air Quality Program Manager 
SUBJECT:  State of Washington Department of Ecology Clean Diesel Grant for Clean Truck
Program 
Amount of This Request: $525,000             Source of Funds: State of Washington
Department of Ecology Clean Diesel Grant and
Seaport General Fund 
Est. State and Local Taxes: N/A                 Est. Jobs Created: N/A 
Est. Total Project Cost: $4,727,000 (Port share $692,000; State share $500,000; federal share
$3,535,000) 
ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer to increase the authorized
amount for the Clean Truck Program truck scrapping project by $525,000, for a revised total of
$4,727,000. Of the additional $525,000, the State Department of Ecology Clean Diesel Grant will
provide $500,000 and the Port will contribute $25,000. 
SYNOPSIS 
The Port applied for and has been offered a $500,000 Clean Diesel grant from the State of
Washington Department of  Ecology to augment the previously authorized Clean Truck Program
incentive project to replace or upgrade older polluting drayage trucks that serve Port of Seattle
marine terminals. This request adds $525,000 to the previous authorization ($500,000 in state grant
funds and $25,000 in grant-ineligible Port costs).  The state Clean Diesel grant will pay 100% of
eligible costs, and the Port will incur $25,000 in non-eligible expenses, for a total of $525,000. The
Ecology grant will enable the Port to provide financial incentives for at least 20 trucks, in addition to
the original estimate of 160 or more trucks planned to be replaced or upgraded via the previously
authorized CMAQ grant-funded project, for a total of 180 trucks.
On June 25, 2013, the Commission authorized a $4,202,000 project to reduce diesel truck emissions
by replacing or upgrading 160 or more older polluting drayage trucks that serve Port of Seattle
marine terminals.  Older trucks will be replaced with newer model-year trucks or EPA-certified
emission reduction retrofits to render the equivalent to the emission standards of a 2007 model-year
truck.  Trucks of this model year are ten times cleaner than pre-2007 engines.  Trucks participating
in this program that are not retrofitted will be scrapped.  The project will span two years (mid-2013
to mid-2015).

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
November 22, 2013 
Page 2 of 8 
The original $4,202,000 project will be funded substantially by a federal CMAQ grant of
$3,535,000. Under the CMAQ grant, eligible expenses are reimbursed at a rate of 86.5%, and will
cap at $3,535,000. The Port's contribution of 13.5% over the two-year period will be $667,000,
which includes $115,000 in costs not eligible for grant funding.  The total project cost for the
CMAQ project is $4,202,000. 
BACKGROUND 
The Northwest Ports Clean Air Strategy was adopted by the Port Commission 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 valuewhichever 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. Model year 2007 engines are ten times cleaner
than pre-2007 engines.
Port staff estimates that there are about 2,500 trucks calling routinely at container terminals.  About
15% of those 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. 
PROJECT JUSTIFICATION AND DETAILS
Authorization of this request will leverage the Port's dollars with over $3.5 million in federal grant
funds and $500,000 in state grant funds to implement a second ScRAPS program 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.  Having newer trucks serving our terminals will reduce air
emissions and help implement our clean air strategy. 
The project will provide funding for at least 180 trucks to be upgraded, assuming a financial
incentive level of $20,000 per truck.  This incentive level is on par with that offered by other clean
truck programs around the country, which are typically designed to cover  to  the cost of a used
truck with a model year 2007 engine. For example, in 2011-12 the City of Tacoma implemented a
similar ScRAPS program that provided incentives of $15,000 - $20,000 per truck. Tacoma's
program was also funded by a CMAQ grant.  If truck prices drop, the incentive level may be
reduced. Also, if less expensive options for upgrading trucks are identified, such as retrofits or fuel
conversion kits, a lower level of incentive could be set, which would provide for additional trucks to
be upgraded through this program.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
November 22, 2013 
Page 3 of 8 
Project Objectives 
Replace 180 or more older, polluting trucks serving Port marine terminals with trucks
meeting model year 2007 emission standards or equivalent by June 30, 2015. 
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 scope of this project includes 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. To accomplish this, the Port will enter into an
interlocal agreement with Puget Sound Clean Air Agency to provide a program resource center for
the trucking community, process applications for participation in the truck incentive program, and
issue incentives.  The Port will also contract with a third party to audit the truck scrapping program
to ensure that the CMAQ grant obligations are met. 
Schedule 
Start               Finish 
Program design & contracting                      July 2013          April 2014 
Program implementation (offer & issue incentives)  May 2014          May 2015 
Closeout                                           June 2015         June 2015 
FINANCIAL IMPLICATIONS 
The following budget and authorization summary is for upgrading 180 trucks (160 trucks funded by
the CMAQ grant and 20 funded by the state grant). 
Budget Authorization Summary
Capital       Non-Ops Expense   Total Project 
Original Budget                              $0                  $4,202,000     $4,202,000 
Previous Authorizations                      $0                   $4,202,000     $4,202,000 
Current request for authorization               $0                     $525,000     $4,727,000 
Total Authorizations, including this request    $0                   $4,727,000     $4,727,000 
Remaining budget to be authorized           $0                          $0             $0 
Total Estimated Project Cost                  $0                   $4,727,000     $4,727,000 
Project Cost Breakdown 
The following project cost breakdown covers upgrades for 180 trucks. This is the number of trucks
identified in the approved CMAQ project description. 
Project Cost Breakdown:                    This Request         Total Project 
Truck Scrapping (contracted services and
$474,000               $4,406,000 
truck incentives) 
Project Management & other soft costs                    $51,000                  $321,000 
Total                                                       $525,000                 $4,727,000

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
November 22, 2013 
Page 4 of 8 

Budget Status and Source of Funds 
The project funds have been 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
remaining balance of the Port investment will be requested in the Seaport 2015 budget.
The CMAQ grant pays 86.5% of eligible costs, and requires a Port match of 13.5%. The state grant
will pay 100% of eligible project costs.  The Port will incur some non-eligible costs, such as
overhead, for both the CMAQ and state grant. Another source of funds may include reimbursement
from truck scrapping/recycling, which is estimated to be $80,000.  All costs to be covered by the
Port will be funded out of the Seaport Division's General Fund. 
Project cost breakdown with grant funding 
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 
TOTAL                 $4,727,000     $4,035,000    $552,000   $140,000    $692,000 
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 will be reported as non-operating grant
revenue and the related project cost will be reported as
non-operating expense in 2013, 2014 and 2015. 
IRR/NPV                    N/A

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
November 22, 2013 
Page 5 of 8 
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. 
Community Benefits 
The project helps to clean the environment and protect public health by reducing diesel exhaust
emissions from 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.
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1. Do not expand the project to offer a clean truck ScRAPS incentive program
to 20 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 alternative is not recommended. 
Alternative 2. Offer clean truck ScRAPS incentives to additional 20 trucks using only Port
funds.   This  would  require  significantly  more  Port  dollars.   This  alternative  is  not
recommended. 
Alternative 3.  Accept the grant and augment the existing clean truck ScRAPS incentive
program to provide incentives to an additional 20 trucks.  By leveraging Port funds with the
federal grant, more trucks can be upgraded to meet the Port's business and environmental
objectives. This is the recommended alternative.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
November 22, 2013 
Page 6 of 8 
ATTACHMENTS TO THIS REQUEST 
Draft Clean Diesel Grant Agreement between Washington State Department of Ecology and
Port of Seattle for Grant No. G1400386 
September 11, 2013, Notice of Funding Award from the Washington State Department of
Ecology 
August 30, 2013, grant application 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
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 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

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
November 22, 2013 
Page 7 of 8 
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. 
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.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
November 22, 2013 
Page 8 of 8 
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. 
February 9, 2005   the Commission adopted Resolution No. 3534,  expressing its
commitment to Maritime Air Quality.