COMMISSION 
AGENDA MEMORANDUM                        Item No.          7C 
BRIEFING ITEM                            Date of Meeting       January 8, 2019 
DATE:     November 21, 2018 
TO:        Stephen P. Metruck, Executive Director 
FROM:    David McFadden, Managing Director Economic Development Division 
SUBJECT:  Washington State Maritime Blue Plan & Port Maritime Innovation Center briefing 
EXECUTIVE SUMMARY 
The Governor's Maritime Sector lead, staff and guests will brief the Commission on Washington
State's new Maritime Blue Plan. This strategy charts a course towards a thriving sustainable
maritime industry.
Washington Maritime Blue is committed to the development of maritime business, technology
and practices that promote a sustainable future contributing to: 
Economic Growth:  We will build a thriving business climate, supporting company
competitiveness, attracting talent and investment to the industry through an efficient
regulatory structure that supports innovation and maritime infrastructure. 
Healthy Ecosystems: We are committed to restoring and sustaining the health of our
coastal and marine ecosystems. 
Engaged & Resilient Communities: We will apply a social justice lens to all our efforts to
ensure thriving and resilient communities will be continuously engaged in the
sustainable development of the maritime sector. 
The Port's proposed maritime innovation center iscited frequently in Maritime Blue as a hub
for innovation and a centerpiece for overall strategic plan implementation efforts. Port staff is
initially working to create a "virtual incubator" in partnership with education, business and
entrepreneurs.  This allows important partnerships and initial business acceleration efforts to
gel while the Port finalizes a business plan and location for the center.
STATE OF WASHINGTON MARITIME BLUE 2050 PLAN 
STRATEGIC GOAL: A Thriving, Low-Carbon Maritime Industry 
Establish a decarbonized maritime industry that continues to grow and maintain resiliency by
taking advantage of an ecosystem of innovations for cleaner air and efficient, cost-saving
operations. 

Template revised April 12, 2018.

COMMISSION AGENDA  Briefing Item No. _7C_                              Page 2 of 12 
Meeting Date: January 8, 2019 
Development Pathway: Deep Decarbonization 
Accelerate the transition of Washington's maritime industry to a low-carbon future
through pursuing technological innovations, infrastructure, and incentives to enable the
transition of local, coastal and international shipping. 
Initiative 1: Low-carbon maritime technologies on board 
Demonstration Projects 
Electrification of State & regional ferries. 
Joint Industry Project to develop Zero-Emission research vessel for NOAA
Marine Sanctuary. 
Establish case studies to demonstrate return on investment & reduction
in emissions for transition to electrification, LNG, renewable fuels, & fuel
cells. 
Initiative 2: Low-carbon shore side infrastructure 
Demonstration Projects 
Strategic infrastructure planning to support investments in low-carbon
energy and fuel infrastructure. 
Initiative 3: Strategies for emissions reductions 
Demonstration Projects 
Leverage real time emissions tracking tools to identify opportunities to
improve performance. 
Leverage existing certification and collaborations to establish regional
agreements for common emissions targets on the West Coast and
beyond. 
Policy Statements 
1.  Secure  funding  to  support  vessels  &  shore  side  infrastructure  for  electric
operations and low-carbon fuels. 
2.  Adopt policies and incentives to create market conditions that reduce carbon
(and other) emissions from maritime applications. 
3.  Ensure public funds directed towards clean energy and carbon mitigation are
available for maritime, clean technology applications. 
STRATEGIC GOAL: Global Innovation Hub 
Establish Washington State as a global maritime technology innovation hub. 
Development Pathway: Blue Innovation 
Drive the commercialization of emerging blue technologies in Washington State by
creating partnerships between public and private sectors. 

Template revised September 22, 2016.

COMMISSION AGENDA  Briefing Item No. _7C_                              Page 3 of 12 
Meeting Date: January 8, 2019 
Initiative 4: Digital Transformation 
Demonstration Projects 
Digitally assisted operations - Establish maritime innovation validation
zone for R&D, Testing & Evaluation of safety & operational performance
of digitally assisted operations & autonomous systems. 
Maritime data science - Establish shared data platform and standardized
model to enable pilot for blue-ware and blockchain applications. 
Initiative 5: Low-impact Vessel Design and Advanced Manufacturing 
Demonstration Projects 
Joint Industry Project to implement low impact vessel design for NOAA
Marine Sanctuary Program including propulsion, noise reduction, water
quality, safety, crew comfort, etc.. 
Create model for advanced manufacturing techniques and materials in
shipbuilding while increasing jobs and training programs. 
Initiative 6: Modernization of Fishing, Seafood and Ocean Innovation 
Demonstration Projects 
Increase in-state seafood processing with full utilization technology. 
Development of new gear and marketing strategies for harvest of
hatchery salmon in the lower Columbia for harvest of hatchery fish and
release of wild fish. 
Pacific Northwest National Laboratory's Macroalgal NOMAD  project,
demonstration phase. Creation of bio fuels from offshore growing
platform of kelp. 
Initiative  7:   Collaborative  Research,  Development  and  Commercialization  of
Innovation 
Demonstration Project 
Design & build a Maritime Innovation Center to house cluster
programing,  co-working  space  and  support  commercialization  of
technology. 
Policy Statements 
1.  Develop   incentives  and  finance  mechanisms  for  maritime  innovation  in
shipbuilding & manufacturing, including vessel replacement for ferries and
modernizing fishing fleet and noise reduction technology. 
2.  Designation of maritime innovation validation zone to perform R&D, testing &
evaluation  of  safety  and  operational  performance  for  digitally  assisted
operations and autonomous systems. 
3.  Fund  and  develop  incubation,  R&D  and  commercialization  platforms  for
maritime innovation facilities and research centers. 

Template revised September 22, 2016.

COMMISSION AGENDA  Briefing Item No. _7C_                              Page 4 of 12 
Meeting Date: January 8, 2019 

STRATEGIC GOAL: Competitive Gateway 
Washington will be a premier region for imports, exports and maritime industrial activity with a
reputation for safety, transparency, efficiency and sustainability. 
Development Pathway: Working Waterfronts 
Washington will lead the nation in efficient, clean and safe maritime practices across all
sectors of the industry. 
Initiative 9: Smart Ports 
Demonstration Projects 
Digitalized  processes -  Support  development  of  common  platform,
standards for data sharing across terminals & provide incentives to
encourage participation. 
Clean & efficient operations - Modernization & electrification of NWSA
terminals. 
Managing the future of maritime workforce - Host future of maritime
workforce summit to address technology innovation alongside job growth. 
Initiative 10: Infrastructure and Regulatory Reform 
Demonstration Projects 
Long-term maritime  infrastructure  & transportation  strategy  - Create
holistic long-term infrastructure and transportation strategy to plan for
future needs and technology developments. 
Regulatory predictability & land use  
o  Work with regulatory agencies to create pilot permitting process for
innovation that meets sustainable economic development criteria. 
o  Regulatory  bodies  to  leverage  agreed  upon  certifications,  best
practices and standards to create incentive-based regulatory scheme. 
Initiative 11: Blue Gateway 
Demonstration Projects 
Attracting   business   growth   through   sustainability -   Develop   an
optimization  tool  for  maritime  applications  to  gauge  sustainability
indicators like ROI, jobs & emissions impacts (for vessels, infrastructure,
operations). 
Maritime  sector  stewardship  &  CSR    Maritime,  NGO,  and  CBO
partnerships for conservation supporting Corporate Social Responsibility
(CSR) and social license. 
Increase   eco-tourism   &   recreational   boating    Build   up   shore
power/wastewater infrastructure to reduce impacts. 

Template revised September 22, 2016.

COMMISSION AGENDA  Briefing Item No. _7C_                              Page 5 of 12 
Meeting Date: January 8, 2019 
Policy Statements 
1.  Investment in critical Port and maritime infrastructure to maintain and increase
modernization and competitiveness. 
2.  Align and simplify the regulatory and permitting process to improve, speed,
efficiency and predictability in maritime infrastructure projects. 
3.  Develop Regional collaborations & partnerships that promote competitiveness
and reduce ecological impact. 
STRATEGIC GOAL: 21st Century Workforce 
A technologically adaptable and inclusive workforce with a sustained stream of high-caliber
entrants will be developed. 
Development Pathway: Workforce Development 
Next generation of an inclusive and diverse maritime workforce with technological
expertise and access to clean, healthy, living wage jobs. 
Initiative 12: Career pipeline, pathways & connection 
Demonstration Projects 
Skill demand forecasting & strategy for creating workforce pipelines - Skill
demand  forecasting  and  creation  of  a  forward-looking  strategy
framework that consolidates efforts to date. 
Mapping career pathways in & through the industry - Launch marketing
campaign for maritime careers leveraging integrated website  with
mapped pathways & forecasts. 
Career-connected learning 
Leverage existing registered apprenticeship programs to increase
training across the maritime supply chain. 
Youth Maritime Collaborative housed within Maritime Blue
Cluster & sustained with funding to expand opportunities. 
Initiative 13: Inclusivity, support & outreach 
Demonstration Projects 
Create broader opportunities for equitable & inclusive participation - 
Develop an equity framework for maritime employers &  training
providers with Community Based Organizations. 
Outreach  and  engagement -  Host  a  Maritime  Blue  Forum  between
workforce organizations, industry & ambassadors for under-represented
communities. 


Template revised September 22, 2016.

COMMISSION AGENDA  Briefing Item No. _7C_                              Page 6 of 12 
Meeting Date: January 8, 2019 
Policy Statements 
1.  Dedicate  funding  for  maritime  specific  training,  education  and  workforce
development,  including  expansion of  registered  apprenticeships in  youth
programs. 
2.  Support  initiatives  for  state  wide  workforce  development  that  encourage
alignment and efficiency of programs according to community and industry
sector based priorities. 
3.  Adopt recommendations of Career Connected Washington and regional efforts
to define and support maritime career pipeline development. 
STRATEGIC GOAL: Competitive Cluster 
An organized cluster of competitive companies and partners will continuously drive sustainable
economic development for the maritime industry 
Development Pathway: Cluster Coordination 
A formal Cluster Organization will drive implementation of the WA Maritime Blue
strategy & collaboration to ensure a strong maritime industry founded on competitive
maritime companies & an attractive business environment. 
Vision 
Washington State will lead the country in maritime clean tech innovation and best
management practices that support a strong maritime economy with living-wage jobs, a
healthy environment and resilient communities. 
Mission 
Washington Maritime Blue is a strategic alliance to develop and support maritime
business, technology and practices that promote a sustainable future contributing to
economic growth, ecological health, thriving communities the Blue Economy. The
alliance will  drive implementation of the Washington Maritime Blue Strategy and
facilitate collaboration to ensure a strong maritime cluster founded on competitive
maritime companies & an attractive business environment. 
Scope of Work 
BLUE Forum 
Networking and strengthening of the knowledge base: Host workshops &
provide market data. 
Cooperation with authorities to create a better framework to develop new
technology. 
Cross sector engagement and coordination with other clusters. 
BLUE Forward 
Platform for collaborative R&D projects, Joint Industry Projects (JIP,) teaming
for grant opportunities. 

Template revised September 22, 2016.

COMMISSION AGENDA  Briefing Item No. _7C_                              Page 7 of 12 
Meeting Date: January 8, 2019 
Incubation to drive early stage innovation to commercialization. Guidance
and mentoring for start-ups & businesses looking to grow or expand into the
blue economy. 
BLUE Finance 
Conduit for public and private funding opportunities. Attract investors and
connect the dots on the value proposition for innovators. 
Establish Maritime Innovation Fund for capital investment in innovationbased
startups with a potential for high growth and job creation. 
BLUE Force 
Cooperation to enable the workforce of the future through coordination,
funding & public forums. 
Scholarships for workforce development. Job board. Fostering internship &
apprenticeships. Mentor-mentee relationships. Hands on learning for K-12 
BLUE Focus
Implement a communications and marketing campaign plan in conjunction
with partner organizations, to raise visibility & connect with opportunities. 
Establish website to serve as a focal point for information about & for
Washington's Blue Economy. 
BLUE Facility 
The Maritime Innovation Center houses incubation, acceleration, co-working,
and public meeting space. It acts as a hub to the many spokes in rural
maritime communities across the state. 
BLUE Federation 
Partnered with the Washington Maritime Federation to ensure continued
support and coordination of industry priorities. 
PORT OF SEATTLE MARITIME INNOVATION CENTER 
BACKGROUND 
As plans for redeveloping Fishermen's
Terminal (FT) unfolded in 2016 research
completed by Madison Bay Commercial
Real Estate cited that:
The Ballard Interbay industrial
submarket, which includes
Fishermen's Terminal, has an
extraordinarily low vacancy rate of
0.60% at the end of Q3-2015,
below the Puget Sound industrial
real estate market vacancy rate of
4.91%, and far below the national
average of 6.70%. 

Template revised September 22, 2016.

COMMISSION AGENDA  Briefing Item No. _7C_                              Page 8 of 12 
Meeting Date: January 8, 2019 
The limited supply of industrial property in Seattle in general, and Ballard Interbay in
particular, is resulting in rising rents and building sale prices. The Port is in a position to
relieve some of this pressure while supporting the fleet and the maritime industrial
sector by developing additional industrial space in and around Fishermen's Terminal..
Based on Madison Bay's research, staff briefed the Port Commission in November 2016 and
recommended developing new light industrial buildings at FT to help retain maritime and
fishing supply companies within the region. A maritime incubator was also envisioned as part
of these facilities where smaller and/or earlier stage maritime companies could find affordable
space (and eventually grow into larger facilities) 
In April 2017 staff started planning for and evaluating the potential of a maritime innovation
center at Fishermen's Terminal (FT).Prior to kicking off the study, Port real estate development
staff determined that the Historic Ship Supply building at FT could potentially be redeveloped
despite being damaged during the Nisqually earthquake. As a result, the Port's maritime
innovation center feasibility study focused on the Historic Ship Supply building's potential as an
incubator.
The Maritime Alliance, a maritime cluster organization in San Diego, was chosen to complete
the maritime innovation center study. They started working on the study in August 2017 and
generated extensive stakeholder input over the following six months: 
Hosted a workshop with 25 maritime stakeholders to identify the major strengths 
weaknesses and trends of Puget Sound's maritime sector. 
Developed on online survey that solicited input from 150+ stakeholders. 
Hosted outreach meetings with partners in Anacortes and Port Hadlock. 
Interviewed 35 people (28 distinct organizations). And 
Facilitated a design charrette focused on adaptive reuse of the Port's Ship Supply
building. 
Maritime Innovation Center Study Findings 
In April 2018 the Port of Seattle completed its study on developing a maritime innovation
center (MIC) at Fishermen's Terminal. Top findings included: 
The global "Ocean Economy" is growing. It is valued on a conservative basis by the
Organization for Economic Cooperation and Development (OECD) at $1.5 trillion (2010)
and growing to $3.0 trillion by 2030; 
The Seattle region is rich in maritime resources and heritage, but this is under
recognized by the general public and policy makers being overshadowed by high-tech.
The maritime industry is also not particularly innovative; 
The Port's Historic Ship Supply building at Fishermen's Terminal could be thehub of a
larger maritime innovation district; 

Template revised September 22, 2016.

COMMISSION AGENDA  Briefing Item No. _7C_                              Page 9 of 12 
Meeting Date: January 8, 2019 
Public and private partners are interested in maritime innovation center as focal point
to help advance: 1) Electrification; 2) Ship and vessel design innovation; and 3) Marine
renewables; and 
Promoting knowledge transfer, business incubation, and workforce development are
the biggest needs in terms of addressing maritime innovation challenges  (and
opportunities). 
Initial Follow-up 
Staff met with its ad hoc advisory board in May 2018. This group helped  guide the MIC study
and is comprised of maritime research labs (ex. NOAA), higher education, private maritime
companies (both established and emerging) and public sector partners.  The advisory board
suggested the Port should move maritime innovation efforts forward by developing a virtual
maritime innovation center. Recognizing it will take 3 years to develop a facility, partners from
the Applied Physics Lab, the State of Washington, and Washington Manufacturing Services
want to work with the Port to stage events and entrepreneurial development activities right
away. The University of Washington's CoMotion Laboratories is developing a virtual incubator
in Spokane that could serve as a model for these efforts 
PORT NEXT STEPS 
1.  Develop MOU with Washington State to formalize Maritime Blue implementation
responsibilities 
2.  Develop more detailed business plan to drive future innovation center operations and
funding sustainability 
3.  Complete design work on historic ship supply building to determine feasibility of location
for innovation center 
a.  Evaluate other location options for center concurrently 
4.  Form  advisory  group  to  guide  future  efforts  tapping  into  expertise  from  education,
government and private industry 
5.  Develop  virtual  incubator  initiative  to  spur  innovation  and  entrepreneurship  within
Maritime sector during time it takes to develop permanent facility (3 years) 
Memorandum of Understanding with Washington State 
Maritime Blue is an ambitious long term plan to sustain Washington's maritime industries.
Many of the plan's goals and strategies will be driven by the Port of Seattle so it is important to
formalize a partnership with Washington State around plan implementation.
Developing a memorandum of understanding between the Port of Seattle and Washington
State can help ensure that each partner's Maritime Blue responsibilities are clear. Staff
recommends developing this MOU by Q2 2019 (which is concurrent with Washington State's
efforts to formalize partnerships with other maritime stakeholders). 


Template revised September 22, 2016.

COMMISSION AGENDA  Briefing Item No. _7C_                             Page 10 of 12 
Meeting Date: January 8, 2019 

Business Plan 
The Maritime Alliance provided an initial business plan for the MIC as part of the study. This
plan outlines: 
Operating Structures and Options 
Incubator Program Activities 
Space utilization concepts 
Operating Plans 
Revenue Segments 
Operating Expenses 
Financial Forecast 

While this plan is a good start it is already out of date and not detailed enough to support
potential Port and partner investments in the facility and operations. Staff should update the
MIC business plan so it reflects the State's Maritime Blue plan, lessons learned from other
maritime innovation centers, and new/unfolding opportunities for collaboration.
Updating this plan annually will ensure the Port highlights opportunities and partnerships
growing from its maritime innovation initiative. This will be especially important as a
permanent facility is developed and the Port operates a "virtual incubator".
Complete initial design work on for Historic Ship Supply building and test its feasibility as
location for innovation center 
Governor Inslee has put a $5 million request in the Department of Commerce proposed capital
budget to help redevelop the Port's Historic Ship Supply building. Staff estimates it will cost
$10.5 million to renovate this facility so Commerce's request represents a significant
contribution towards the maritime innovation center.
Funding to redevelop the ship supply building is currently funded in the Port's Capital
Investment Plan (CIP). Staff plans to seek Commission authorization for design funding on the
historic ship supply building next month. Completing additional design work on the building
can help pinpoint its redevelopment costs and help determine the overall feasibility of using
this building for a maritime innovation center. 
As the design work is completed on the Historic Ship Supply building, the FT Gateway building,
and new buildings at Terminal 91, the Port will be in a better position to determine its preferred
location for the maritime innovation center.
Starting to design this facility also signals we are committed to the center and could help show
we have skin in the game to help match the State's capital budget request. 

Template revised September 22, 2016.

COMMISSION AGENDA  Briefing Item No. _7C_                             Page 11 of 12 
Meeting Date: January 8, 2019 
Form advisory group to guide future efforts tapping into expertise from education,
government and private industry 
Staff received invaluable feedback from its ad hoc advisory board that helped guide the
Maritime Innovation Center study. This group is interested in staying engaged with the Port's
maritime innovation initiative and can help support center implementation efforts.
Maintaining a group of public and private advisors engaged with the Port's maritime innovation
center is key to its short and long term success.
Develop Virtual Incubator 
It will take the Port three years to develop any facility for a maritime incubator so it's vitally
important to stage and scale the Port's maritime innovation initiative. Formalizing partnerships
and organizing initial maritime innovation activities over the next couple years can help lay a
foundation for success in a permanent facility.
The Port, with the help of its advisory group, can stage pitch clinics, business plan contests,
financing workshops, and other activities that generate interest in the maritime cluster. This
virtual incubator phase can help prime the pump for maritime innovation and develop the
specific alliances needed for longer term operations. 









Port Maritime Innovation Center would become hub for modernization 


Template revised September 22, 2016.

COMMISSION AGENDA  Briefing Item No. _7C_                             Page 12 of 12 
Meeting Date: January 8, 2019 

ATTACHMENTS TO THIS BRIEFING 
(1)   Presentation slides 
(2)   Maritime Innovation Center Final Report 
(3)   Norway Netherlands Trip Report 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
None 















Template revised September 22, 2016.