3b

PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      3b 
STAFF BRIEFING 
Date of Meeting    December 8, 2015 
DATE:    November 30, 2015 
TO:      Ted Fick, Chief Executive Officer 
FROM:   Elizabeth Leavitt, Director Aviation Planning and Environmental Services 
Stephanie Meyn, Sr. Environmental Program Manager 
SUBJECT:  Aviation Biofuels MOU between the Port, Alaska Airlines, and Boeing 
ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer to execute a Memorandum of
Understanding between the Port, Alaska Airlines, and Boeing to conduct an Aviation Biofuels
Infrastructure Feasibility Study.
SYNOPSIS 
Aviation biofuel is the key to meeting the Port's Century Agenda goal to reduce aircraft-related
emissions at Sea-Tac Airport by 25%. Earlier this year, Commissioners directed staff to develop
a framework to advance the airport's integration and adoption of aviation biofuel. 
In response to this request, the Port of Seattle, Alaska Airlines and the Boeing Company are
developing an agreement to work collaboratively towards this effort. The three parties agree that
evaluating biofuel blending and other necessary infrastructure to deliver aviation biofuel to Sea-
Tac Airport will be a joint effort. The Port is seeking to formalize this understanding via a
memorandum of understanding (MOU). 
On December 8, Commission will be briefed on the content of the MOU. The value of the work
associated with this agreement (Aviation Biofuel Infrastructure Feasibility Study) is $250,000
and is anticipated to be completed by Q4 2016.
BACKGROUND 
The Port's Century Agenda Goal is to reduce aircraft-related carbon emissions at Seattle-Tacoma
International Airport by 25% (by ~2035). The key strategy to reduce these emissions is through
the use of aviation biofuel. In addition, the Port recognizes that recent and preliminary research
suggests that using aviation biofuels may reduce other air pollutant emissions from aircraft
including soot or fine particles. The aviation biofuels initiative is another demonstration of the
Port's commitment to protecting air quality, as shown in other Port programs including the NW
Seaport truck scrappage program, the airport's electric Ground Support Equipment (eGSE) and
our pre-conditioned air (PC Air) initiatives. 

Template revised May 30, 2013.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
November 30, 2015 
Page 2 of 5 
Historically, the Port of Seattle has been a leader in supporting research and development of
aviation biofuels, and as models of other airports and airlines using biofuel emerge (Los Angeles,
Amsterdam, Oslo), we are also developing a market-support role.
At present, aviation biofuels are not produced in Washington state and must be imported by
truck, rail, or barge. The fuel must then be blended with regular petroleum-based jet fuel (as
required by fuel standards/law) before it is considered a "drop-in" fuel that can be used in aircraft
and regular fueling infrastructure. 
For aviation biofuels to be cost-competitive, they need to be delivered to the wing of the aircraft 
in the most efficient manner. Therefore, biofuels must be integrated into the existing fuel supply
infrastructure including the pipeline, fuel tank farm and the hydrant system.
As leaders in aviation biofuels, the Port, together with Alaska Airlines and the Boeing, have
determined that the key first step to biofuel adoption and integration is to conduct an Aviation
Biofuels Infrastructure Feasibility Study to identify the best approach to deliver blended biofuel
to Seattle-Tacoma International Airport.
Biofuel infrastructure will make Sea-Tac Airport an attractive option for any airline committing
to using biofuel, and will assist in attracting biofuel producers to the region as part of a longerterm
market development strategy. 
JUSTIFICATION AND DETAILS 
This year, Commissioners directed staff to develop a framework to advance the airport's
integration and adoption of aviation biofuel. Staff examined several ways in which to accelerate
aviation biofuel adoption. Staff determined that a key first step to a broad-based biofuel program
is to ensure that biofuels can be efficiently and effectively delivered to the airport.
In light of this, staff will oversee this study in order to fully identify and evaluate costs and
infrastructure necessary to ensure that aviation biofuels can be successfully blended and
delivered to aircraft at Sea-Tac prior to pursuing a more comprehensive biofuels program.
MOU Objectives are to: 
Formalize a partnership between the Port, Alaska Airlines, and the Boeing Company 
Provide a formal platform for the partners to work collaboratively to identify and
evaluate the necessary infrastructure for delivering aviation biofuels for all airlines to 
use at Sea-Tac 
Be the first airport in North America to  systematically evaluate and develop
infrastructure to bring aviation biofuels to the airport 
Send a market signal that the Port of Seattle and its partners are preparing to be one of
the first airports in the nation to develop a commercial-scale program

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
November 30, 2015 
Page 3 of 5 
Scope of MOU 
The memorandum of understanding includes the following items: 
A statement of each partner's emission reduction goal 
A statement of the collective goal of the partners 
Roles and responsiblities 
Timeline 
Schedule 
Execute MOU                                  Dec. 2015 
Request for Proposals published for Feasibility Study               Apr. 2016 
Contract award                                      Jun. 2016 
Completion of work/study                               Nov. 2016 
Commission briefings and stakeholder engagement will occur throughout the duration of the
project.
FINANCIAL IMPLICATIONS 
The Aviation Biofuels Infrastructure Feasibility Study is expected to cost $250,000.  The costs
for these services will be accommodated in the Aviation 2016 Annual Operating Budget, and
will be recovered through the rates and charges provisions of the 2013-2017 Signatory Lease and
Operating Agreement. Alaska Airlines has invested approximately $350,000 in batch-scale
biofuel purchases to demonstrate its commitment to advancing the industry, and will be paying a
premium over and above Jet A prices for any future fuel delivered to Sea-Tac. If the Feasibility
Study outcome recommends infrastructure improvements to the airport's tank farm, it is
expected that the debt service on these improvements will be borne by the members of the fuel
consortium (SeaTac Fuel Facilities LLC) in the form of lease payments. 
STRATEGIES AND OBJECTIVES 
This MOU supports the Airport's strategic objective to lead the U.S. airport industry in
environmental innovation and reduce our environmental footprint. In addition, the aviation
biofuels initiative is imperative to achieving the Port's Century Agenda objective to reduce
aircraft-related carbon by 25% by 2037. The MOU also supports the airport's strategic objective 
to operate a world-class international airport and maintain valued community partnerships based
on mutual understanding and socially responsible practices.
The Aviation Biofuels Infrastructure Feasibility Study will support the Port's strategy to manage
our finances responsibly by using the most cost efficient means to secure services that require
specialized expertise that cannot be effectively provided by Port staff.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
November 30, 2015 
Page 4 of 5 
TRIPLE BOTTOM LINE 
Economic Development 
This agreement is an unprecedented first step toward developing the region's aviation biofuels
sector. The Feasibility Study and MOU with Alaska Airlines and Boeing will send a strong
signal that all three partners are committed to creating a market for aviation biofuels in the
Pacific Northwest. 
Environmental Responsibility 
Sea-Tac is a leader in reducing its own environmental footprint, and has worked closely with
airlines and partners to reduce emissions from petroleum fuels by investing in electric charging
stations for ground support equipment and infrastructure to reduce aircraft idling such as preconditioned
air. 
Aviation biofuels can also significantly reduce carbon emissions as their lifecycle carbon
footprint is typically 50 to 80% lower than petroleum Jet A, depending on the source of the
biofuel and the process technology used to convert it to jet fuel.  As noted above, there is also
some preliminary research suggesting that aviation biofuels reduce soot emissions, which will
benefit airport communities. This MOU will help accelerate the use of these fuels and take
advantage of those benefits sooner. 
Community Benefits 
The procurement process for the Aviation Biofuels Feasibility Study will ensure that small
businesses along with others in the region can compete for the work. The study will also help
build a foundation for a commercial-scale aviation biofuel industry. Developing such an industry
will produce significant jobs and substantially increase dollars spent in-state. While no specific
projections are available for a regional biofuel industry, one national study found that producing
475 million gallons of biofuel in 2009 resulted in 23,000 jobs across the economy, $4.1 billion in
added GDP growth, $445 million in federal tax revenues, and $383 million for state and local
governments. If we assume 50 million gallons of biofuel will be generated in-state in the future,
we can expect that to generate approximately 2,000 jobs across the economy, most of which will
be in-state. 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1) No Action  Do not support the MOU. This is not the recommended
alternative. 
Cost Estimate: $0 
Pros: 
No cost to the Port 
Cons:

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
November 30, 2015 
Page 5 of 5 
Inadequate information on infrastructure needed to deliver aviation biofuels at Sea-
Tac Airport 
Airlines will be less interested in bringing biofuels to Sea-Tac Airport 
Loss of leadership position in aviation biofuels and fall behind other airports in
integrating biofuels 
Alternative 2)  Execute MOU. This is the recommended alternative. 
Cost Estimate: $250,000, recovered through the rates and charges provisions of the 2013-
2017 Signatory Lease and Operating Agreement. 
Pros: 
Be the first airport in the nation to take such an action 
Airlines like Alaska Airlines will consider Sea-Tac Airport an attractive option for
biofuel delivery and use 
Provide an analytical, thoughtful approach to biofuel delivery, and make a more
informed and efficient infrastructure decision 
Send a positive market signal to aviation biofuel producers 
Fueling infrastructure integration will benefit all airlines. 
Cons: 
Financial cost to Port (including staff time) 
ATTACHMENTS TO THIS REQUEST 
PowerPoint Presentation 
MOU for execution 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
February 10, 2015 - Commission Briefing: "Strategy for a Sustainable Sea-Tac (S3)"

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