PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.       7a 
Date of Meeting   February 26, 2013 

DATE:    February 19, 2013 
TO:      Tay Yoshitani, Chief Executive Officer 
FROM:   Mark Reis, Managing Director, Aviation Division 
Beth Osborne, Manager, Federal Government Relations 
SUBJECT:  Passenger Facility Charge Policy Briefing 
SYNOPSIS: 
PFCs allow governing boards of airports to impose a nominal user fee on passengers to fund
limited types of infrastructure investments that benefit passengers. Local elected governments
have the authority to determine whether to levy the PFC and to set the amount, but since 2000,
the U.S. Congress has capped the fee at $4.50, which in today's dollars is worth approximately
half of its intended amount. PFC's are an important financing tool for airports nationwide in
need infrastructure investments and financing. As Congress grapples with large fiscal
challenges, the airport industry (including Airports Council International  North America) is
advocating that PFC policy be changed to reduce the federal debt and give local airports more
authority to set their own funding structure. If the Commission deems that lifting the spending
cap on the PFC locally is appropriate, an increase could lower the cost of capital projects for the
airlines, finance projects that would otherwise not be feasible, and create jobs and opportunities
for small businesses.

BACKGROUND: 
PFC's allow local governing bodies to charge a nominal user fee for airport infrastructure
investments that benefit passengers, airlines and communities. Examples include increasing
airport capacity, funding noise and environmental mitigation measures, as well as improving
safety and security. Most large hub airports, including Sea-Tac, impose PFCs which are collected
by airlines as part of the price of passenger tickets and remitted to airports. Project costs paid by
PFCs are not included in airline rates. 
Congress has historically limited airports' ability to collect passenger user fees. In 1990, the
Federal Aviation Administration (FAA) Authorization Act authorized airport governing bodies
to impose a PFC of $3.00, which was later increased to the current limit of $4.50 in the FAA
Reauthorization bill of 2000.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
February 19, 2013 
Page 2 of 3 

Problem: 
Recently the American Society of Civil Engineers report card gave aviation infrastructure in the
United States a grade of "D". Studies show that airports need over $80 billion in infrastructure
investments by 2015, but lack sustainable, long-term funding options. In addition, federal
funding is declining for programs that support airports like the Airport Improvement Program
(AIP). PFCs are an effective financing tool for airports but, with rising construction costs and
inflation, are worth only half of what they were when Congress set the current cap in 2000. 
Port of Seattle History: 
The Port of Seattle's Commission voted to collect the maximum PFC in 2001, and has utilized
funds to build Concourse A, Runway 16R/34L, noise mitigation projects and reconstruct the
satellite transit system at Sea-Tac. On October 28, 1997, the Port Commission passed
Resolution No. 3253 in support of PFC policy. Specifically, the Resolution resolved to impose
the maximum fee of $3.00 on passengers and stated that PFC's are in the Port's best economic
interst and in the interest of airline passengers to "preserve and enhance capacity, safety,
security, reduce-mitigate noise, and enhance airline competition". 
Current Legislative Opportunity: 
Since 2005, the airport industry has advocated for lifting the cap on PFC's. While FAA
Reauthorization will not be considered by Congress until 2015, the current debate around 
spending cuts presents an immediate opportunity for a change in PFC policy. Some Members of
Congress are exploring reducing federal spending by decreasing AIP funding while providing
local airports more latitude in determing the appropriate level of PFCs at their airports. 
As a result, several large hub airports have formed coalitions, and the U.S. Policy Board of ACINA
has proposed a means of reducing federal AIP spending coupled with changes in PFC rules,
including:
Raising the PFC cap to $8.50 for all airports and reducing $1.9 billion from AIP 
Permitting larger airports to elect to raise their PFC further if they forgo AIP funds  
saving as much as $4.4 billion to the U.S. Treasury 
A number of legislative vehicles are under consideration in Congress this spring to reduce
spending, including bills related to sequestration, the budget, the debt limit, and the Continuing
Resolution for FY2013. Some decisions may be made by March 1, 2013.
If Congress approves these changes to the PFC law, local governments would have the authority 
to set the fee locally. Should that happen, Port staff would evaluate our financing needs and
make a recommendation to the Commission as to whether an increase in the local PFC is
warranted.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
February 19, 2013 
Page 3 of 3 

PROJECT JUSTIFICATION: 
Authorization of this request will enable port staff to participate in national discussions related to
PFC policy. If national advocacy is successful, the Commission will have increased authority to
determine how best to finance local airport projects that benefit passengers and help meet
Century Agenda strategic objectives such as: 
Tripling air cargo volume 
Tripling the value of outbound cargo 
Making Sea-Tac the "Gateway of Choice" for international travel 
Doubling the number of international flights and destinations 
Encouraging the cost-effective expansion of domestic and international passenger and
cargo service 
Being the greenest and most energy efficient port in North America 
OTHER DOCUMENTS ASSOCIATED WITH THIS REQUEST: 
PowerPoint presentation 
Resolution No. 3253 
Resolution No. 3464 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS: 
October 28, 1997 - Resolution No. 3253, adopted 
July 16, 1998  Resolution No. 3284 (Master PFC Resolution), as amended, adopted 
July 16, 1998  Resolution No. 3285 as amended (PFC Series Resolution), adopted 
September 25, 2001  Resolution No. 3464, to set the Passenger Facility Charge at
SeaTac International Airport to $4.50, adopted 
October 26, 2010  Resolution No. 3643 to authorize PFC revenue refunding bonds,
adopted 
February 5, 2013  Commission Briefing