COMMISSION 
AGENDA MEMORANDUM                Item No.       7a 
BRIEFING ITEM                   Date of Meeting     August 15, 2017 
DATE:    July 16, 2017 
TO:     Dave Soike, Interim Executive Director 
FROM:   Stephanie Meyn, Climate Protection Program Manager 
Arlyn Purcell, Director, Aviation Environment and Sustainability 
Elizabeth Leavitt, Senior Director, Environment and Sustainability 
SUBJECT:  Sustainable Aviation Fuel Program Update 
BACKGROUND 
Historically the Port of Seattle has been a leader in supporting research and development of
aviation biofuels. With the support of our regional partners, we are now shifting towards a
market development role, and exploring what the Port can do to support aviation biofuel
infrastructure development and increase demand for sustainable aviation fuel at Sea-Tac
Airport. 
To date, only one facility in the U.S. is producing sustainable aviation fuel. It's located in
Paramount, California at a retrofit shuttered petroleum refinery, now owned and operated by
AltAir Fuels. Many factors led to its success, including California's Low Carbon Fuel Standard,
airline off-take agreements (i.e. airline commitments to buy a certain volume of fuel at a certain
price), grants, availability of feedstock, and markets for co-products. The facility produces 2 to
4 million gallons of sustainable aviation jet fuel per year, which represents less than 1% of LAX's
fuel consumption. 
While many airlines have signed off-take agreements with other producers for additional fuel
production capacity, none of these have yet to be completed. Building a sustainable aviation
fuel market requires contracts for stable and reliable feedstocks (such as oilseeds or municipal
solid waste), commercialized technologies, stable and harmonized renewable fuel policies, and
reliable end markets. 
The Port continues to demonstrate its leadership in developing a market for aviation biofuel
with the release of a new report that explores innovative airport funding mechanisms to help
cover the incremental cost of the fuel or pay for related biofuel infrastructure. The information
contained in this study will help the Port of Seattle take the next step toward the goal of making
biofuel cost-effective and practical for airlines at Sea-Tac. 
The report, titled Innovative Funding for Sustainable Aviation Fuel at U.S. Airports: Explored at
Seattle-Tacoma International, was authored by Carbon War Room and SkyNRG who have

Template revised September 22, 2016.

COMMISSION AGENDA  Briefing Item No. _7a_                     Page 2 of 3 
Meeting Date: August 15, 2017 
experience developing sustainable aviation fuel purchasing agreements and airport-focused
funding mechanisms in Europe. 
The two biggest challenges facing broader adoption of sustainable aviation fuel at Sea-Tac are
the higher cost compared with petroleum jet fuel, and the constraints imposed by state and
federal regulations on use of airport funds. 

KEY FINDINGS OF INNOVATIVE FINANCING STUDY 
The report explores 14 financial mechanisms available to U.S. airports, and examines the legal
constraints and revenue potential of each mechanism specifically at Sea-Tac. 
To gauge the financial feasibility of each funding source, the report assumes a 1% supply of
aviation biofuel at Sea-Tac. In 2016, this represents approximately 5 million gallons. The
incremental cost (of  aviation biofuel compared with petroleum jet fuel) per gallon is
approximately $1.50 (after federal credits), and the total incremental cost associated with 5
million gallons is $7.5 million per year. 
The report found that no single mechanism could generate enough funding to cover the higher
cost of biofuel, and recommends combining a number of funding sources in a single fund
operated by a third party. The report also acknowledges that several of these funding
mechanisms require FAA approval and could be viewed unfavorably by airlines or airport
businesses. 
The key findings of the study are as follows: 
1.  While a U.S. airport cannot pay for aircraft fuel, it could pay directly for the "cobenefits"
of sustainable aviation fuel, although this approach requires FAA approval. 
Public dollars cannot cover a commodity used by a for-profit private firm.
However, aviation biofuel produces direct air quality benefits, reduces
greenhouse gas emissions, and supports regional economic developmentall of
which are valued by airports. 
Sea-Tac Airport has implemented other projects that reduce airline emissions
such as pre-conditioned air and electric ground support equipment, which have
been funded by airport revenue and FAA grants. 
2.  No single mechanism can generate enough funding to cover the higher cost of biofuel.
The report recommends combining a number of funding mechanisms into a central fund
operated by a third party. The most promising are: 
Corporate Supportcorporations contribute to offset their flight emissions,
generating an estimated $1.0 million to $2.5 million per year. 

Template revised September 22, 2016.

COMMISSION AGENDA  Briefing Item No. _7a_                     Page 3 of 3 
Meeting Date: August 15, 2017 
Port Taxing Levythis source of funds may be available to support air quality
benefits, though the legality of such use requires further review.  Funding
amount is variable and dependent on Port Commission priorities. 
Use of General Non-Aeronautical Revenue (requires FAA approval)the airport
could target specific non-aeronautical sources (such as parking or landside fees).
Alternatively, the airport could apportion a fixed amount or percent of total nonaeronautical
revenue to biofuel only when the airport achieves a particular
revenue threshold. This approach could generate an estimated $1.0 million to
$4.0 million per year 
Airline Agreement (requires FAA approval)implement a fund via the airline
operating agreement that is not subject to revenue sharing, or create a new fee,
generating an estimated $0.4 million to $2.3 million per year 
3.  There are a limited number of mechanisms available to the Port  to finance 
infrastructure projects directly because most are outside the legal scope under Title 53
of the Revised Code of Washington. The most promising applications of airport funds for
infrastructure are those that support storage and blending of aviation biofuel, rather
than production facilities.

ADDITIONAL BACKGROUND 
Global aviation generates approximately 2 percent of global greenhouse gas emissions
and the contribution is forecast to grow to 5 percent by 2050. 
Sustainable aviation fuel reduces carbon emissions by 50 percent to 80 percent
compared to petroleum jet fuel on a lifecycle basis. 
Published research since 2015 shows consistent and significant reductions in particulate
matter emissions from sustainable aviation fuels (https://ascent.aero/project/emissions-
data-analysis-for-cleen-access-and-other-recent-tests/). However, emission reductions
vary relative to aircraft engine conditions, biofuel production pathway, and percent
blend of biofuel. More research would be needed to develop "emission factors" for
aviation biofuels. 
ATTACHMENTS TO THIS BRIEFING 
(1)   Presentation slides 
(2)   Biofuel Finance Report 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
March 28, 2017  The Commission was briefed on the findings of the Aviation Biofuels
Infrastructure Feasibility Study results. 

Template revised September 22, 2016.