8b Sustainable Aviation Fuel presentation
Item No. 8b supp Meeting Date: July 24, 2018 Sustainable Aviation Fuel Strategic Plan Stephanie Meyn 1 Commission Motion (Dec 2017) Outlined SAF goals Required Strategic Plan by July 2018 Required Agreement with airlines in 2018 MOU with 16 airlines signed in Q2 2018 Requires Scope of Work approval by July 2018 The work of the MOU Committee will be integrated into the larger Port SAF Strategic Plan 2 Strategic Plan Approach This plan reflects the most effective approaches and policies that have helped build a SAF market 3 4 Key Strategies 1) Airline-Airport Cooperative Model 2) Policy Support 3) Approval for SAF Co-benefits Expenditures 4) Education & Advocacy 4 Components of a SAF 'Market Signal' 5 (1) Airline-Airport Cooperative Model A cooperative agreement among an airport, airlines, and possibly other parties to aggregate funds and/or demand Develop through the airline- airport MOU Committee Image source: SkyNRG Developing the SEA cooperative model with the 16 airlines that signed the MOU 6 (1) Airline-Airport Cooperative Model Key Milestones 2018: Explore examples of airline-airport cooperative models 2018-2019: Work with MOU Airlines to develop SEA approach/model 2020: Cooperative model operational 2021: Partner commitments finalized 2021+: Market signal leads to SAF production commitments The 2018-2019 work is part of the 1-year term of the MOU 7 Airline MOU Scope of Work 1) Project Initiation & Scheduling (Q2 2018) 2) SAF Information Workshop (Q3 2018) 3) Identify Barriers and Opportunities to Developing an Airline-Airport Cooperative Model (Q3 2018) 4) Begin Developing a SEA Cooperative Model Structure (Q4 2018) 5) Provide outline of Cooperative Model to Commission (Q2-Q3 2019) Focused work of Airline Committee for the 1-year term of the MOU | For Commission Approval 8 (2) Policy Support WA is at a competitive disadvantage The most effective policy instrument to build SAF market is ?? a Low Carbon Fuel Standard like California Policy harmony is needed to develop a SAF market outside California 9 (2) Policy Support Key Milestones: 2018: Build WA Low Carbon Fuel Standard campaign with partners 2019: Support LCFS (with SAF opt-in); Identify production barriers and recommend further state legislative actions 2020+: Continue support for carbon pricing mechanisms similar or equivalent to California 10 (3) Approval for SAF Co-benefit FAA Authorizes use of funds for Pre-Conditioned Air to reduce emissions But 10% SAF produces similar air quality benefits Use of federal funds to reduce the incremental cost of SAF could help spur market 11 (3) Approval for SAF Co-benefit Key Milestones: 2018: Identify specific particulate matter (PM) and sulfur emission reduction from SAF co-benefit values and present to FAA 2019: Work to gain FAA approval to use airport revenue or grants 2020: Sea-Tac Airport or grants contribute revenue to complement airline or other partner commitments 12 (4) Education & Advocacy Community support for production facilities is as critical as political support 13 (4) Education & Advocacy Key Milestones: 2018: Develop specific SAF 101 messaging for policy makers, business, and general public/airport community audiences 2019+: Identify key audiences, and opportunities to present SAF 101 information 14 How the Strategies Tie Together STRATEGY 2018 2019 2020 2021+ Airline-Airport Evaluate models; Develop SEA-based Model operational Send aggregate Cooperative Model issue RFP model market signal Policy Support 'opt-in' for Support CA-equivalency (LCFS) & in-state tax incentives to jet fuel in proposed contribute to market signal legislation Co-Benefits Assemble research Present to FAA & Use federal or Approval seek approval airport funds in market signal Education & Develop messaging Conduct outreach to state policy makers, federal policy makers, Advocacy for different business and community audiences 15 Scope of Work (For Commission Approval) 1) Project Initiation & Scheduling (Q2 2018) 2) SAF Information Workshop (Q3 2018) 3) Identify Barriers and Opportunities to Developing an Airline-Airport Cooperative Model (Q3 2018) 4) Develop a SEA-focused Cooperative Model Structure (Q4 2018) 5) Provide outline of Cooperative Model to Commission (Q2-Q3 2019) 16
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