PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      4c 
ACTION ITEM 
Date of Meeting      May 26, 2015 
DATE:    May 18, 2015 
TO:      Ted Fick, Chief Executive Officer 
FROM:   Stephanie Jones Stebbins, Director Maritime Environmental and Planning 
Janice Gedlund, Maritime Air Quality Program Manager 
SUBJECT:  Interlocal Agreement with Puget Sound Clean Air Agency on a multi-port ScRAPS
project for the Clean Truck Program 
Amount of This Request:        $250,000   Source of Funds:  Seaport General Fund 
Est. Total Project Cost:          $7,348,000 
ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer to (1) execute an interagency
agreement with the Puget Sound Clean Air Agency, substantially as drafted and attached to this
request, to provide matching funds for a Congestion Mitigation and Air Quality (CMAQ) grant
obtained by the Agency; and (2) increase the authorized amount for the Clean Truck Program drayage
truck scrapping/replacement project by $250,000 for a revised total of $7,348,000.
SYNOPSIS 
The Puget Sound Clean Air Agency (Agency) has been offered a new grant for a multi-port project to
scrap and replace 115 or more drayage trucks serving Port of Seattle and Port of Tacoma in the 2015-
2017 timeframe. The Agency is the grant recipient, and the two ports previously agreed to provide the
matching funds. A separate interlocal agreement between the Port and the Agency, specific to this
particular grant project, is needed to formalize the Port's financial contribution and clarify roles and
responsibilities. 
With the Port's assistance, the Agency applied for and has been offered $3,200,000 of new CMAQ
grant funds from the Puget Sound Regional Council through its 2014 Funding Action for U.S. Federal
Highway Administration (FHWA) grant dollars. The grant will go directly to the Agency, and will
cover 86.5% of the cost for a $3,700,000 project to scrap and replace 115 or more drayage trucks
serving Port of Seattle and Port of Tacoma. Eligible expenses are reimbursed at a rate of 86.5%, and
will cap at $3,200,000. The Port's match of $250,000 constitutes 6.75% of the project total. The Port
of Tacoma will provide the same amount, so that the two ports' contributions will comprise the
13.5% local match requirement. 
This request adds $250,000 to the Commission's previous authorization for the Clean Truck
Program's current truck scrapping and replacement project, ScRAPS 2. This request does not include

Template revised May 30, 2013.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
May 18, 2015 
Page 2 of 9 
the total project cost for this multi-port project, because the Agency will be the grant recipient and the
balance of the project funding will not flow through the Port. The Maritime Division's 2015 budget 
includes $125,000 local match for this project. The remaining Port funds will be requested in the
2016 and 2017 Maritime non-operating budget. 
This additional funding would augment the Port's current CMAQ-funded truck scrapping and
replacement project by providing incentives for 115 additional drayage truck replacements in 2016 - 
2017. This new project would provide several options for truck owners. Incentive levels offered will
be up to 50% of truck replacement cost, capped at $20,000 for trucks with a model year 2007  2009
engine and $30,000 for trucks with a model year 2010 or newer engine, or EPA-certified emission
reduction retrofits to render an equivalent level of the emission control. This aligns with the
requirements of the current grant-funded elements of the ScRAPS 2 project. In March 2014, the Port
partnered with the Port of Tacoma and the Agency to develop the grant proposal and with the
concurrence of the Port's Chief Executive Officer, indicated that it was reasonably expected that the
Port would provide $250,000 in matching funds. 
BACKGROUND 
The Port Commission adopted the Northwest Ports Clean Air Strategy on January 22, 2008. One of
the strategy's key objectives is to reduce marine-related diesel emissions, including those from
drayage trucks serving marine terminals. The strategy established and achieved a 2010 goal of
having all trucks entering container terminals to have 1994 model-year engines or newer, because this
engine year produced substantially less pollution than older trucks.  One tool that was used
successfully to attain this goal was a financial incentive program for truck owners. In 2009, the Port
partnered with the Agency to implement the Scrappage and Retrofits for Air in Puget Sound
(ScRAPS) program. ScRAPS provided $5,000 or blue book valuewhichever was higherto the
owner in exchange for scrapping a truck. The program ran from 2009 to early 2011 and removed 280
pre-1994 trucks. The Port invested $1.6 million in the program.
Per the strategy, the next phase of the Clean Truck Program will require trucks to meet the 2007
model year engine emission standards or equivalent by January 1, 2018. Model year 2007 engines
are ten times cleaner than pre-2007 engines.
Port staff estimates that there are almost 1,000 trucks calling frequently (200 times/year) at container
terminals. About 20% of these frequently-calling trucks are equipped with model year 2007 engines
or newer. 
On June 25, 2013, the Commission authorized the Port to proceed with a $4,202,000 drayage truck
replacement project utilizing a $3,535,000 CMAQ grant, administered by Washington State
Department of Transportation with USDOT funding and $667,000 of Port funding. This amount
provides resources to offer 160 truck incentives at $20,000/truck.
On December 10, 2013, the Commission authorized an additional $525,000 for the project to provide
incentives for 20 additional trucks. Of the $525,000, $500,000 is from a State of Washington
Department of Ecology Clean Diesel Grant of $500,000, and the Port is providing $25,000.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
May 18, 2015 
Page 3 of 9 
On June 24, 2014, the Commission authorized an additional $1,608,000 for the project, utilizing
$1,200,000 in EPA DERA funds and $408,000 of Port funding. This element of the project will
provide resources to scrap and replace 40 additional trucks to those meeting 2010 emission standards,
Incentive levels were set  at 50% of the purchase price of the replacement price, capped at
$30,000/truck.
On July 22, 2014, the Commission authorized an additional $763,000 for the project, utilizing
$638,000 in CMAQ grant funds and $125,000 in Port funding. This element of the project will
provide resources to scrap and replace 19 additional trucks with those meeting 2010 emission
standards. Incentive levels will be set at 50% of the purchase price, capped at $30,000/truck. 
The Agency is currently administering the ScRAPS 2 program for the Port under a separate interlocal
agreement. As of April 27, 2015, 107 trucks have been scrapped and replaced under ScRAPS 2, and
approximately 30 more applications have been pre-approved. 
PROJECT JUSTIFICATION AND DETAILS 
Authorization of this request will leverage $250,000 in Port funding with $3,200,000 in federal grant
funds and $250,000 in Port of Tacoma funding to augment the existing ScRAPS 2 program, bringing
the total program cost to $7,348,000, mostly funded with federal and state grants. The multi-port
CMAQ grant will provide funding for an additional 115 trucks bringing the total number of trucks to
be replaced or upgraded to 354. Having newer trucks serving our terminals will reduce air emissions
and help implement our clean air strategy. 
Project Objectives 
Supplement the currently funded Clean Truck Program's truck scrapping project to add
incentives to replace 115 additional older, polluting trucks serving Port marine terminals
with trucks meeting model year 2007 or 2010 emission standards or equivalent by
December 31, 2017. This is in addition to previous funding approval to upgrade 239 trucks
to 2007 or newer engines. 
Utilize grant funding and Port funding in the most economical manner. 
Complete project in compliance with federal grant guidelines, on time and within budget. 
Scope of Work 
The scope of work approved previously by the Commission included incentivizing truck scrapping
and replacement, or installing EPA-certified emission reduction retrofits, to render trucks serving Port
of Seattle container terminals equivalent to the emission standards of a 2007 model-year truck, for at
least 180 trucks (160 trucks funded by the CMAQ grant and 20 trucks by the state grant), and to scrap
and replace at least 59 trucks (40 trucks funded by the DERA grant and 19 funded by the
supplemental CMAQ grant) with trucks meeting model-year 2010 emission standards. Truck owners
have expressed interest in the higher incentive level towards the purchase of 2010 model-year engine
trucks vs. model-year 2007 trucks, citing a greater pool of newer trucks on the market, longer lifespan
(having lower miles) and reduced maintenance requirements.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
May 18, 2015 
Page 4 of 9 
The Agency will be the recipient of the multi-port CMAQ grant. This grant-funded project will add
115 incentives of up to $30,000 each for truck replacements or upgrades to meet the model-year 2007
or 2010 emission standards. Incentive levels offered will be up to 50% of truck replacement cost,
capped at $20,000 for trucks with a model year 2007  2009 engine and $30,000 for trucks with a
model year 2010 or newer engine, or EPA-certified emission reduction retrofits to render an
equivalent level of the emission control. To accomplish this, the Port will enter into an interlocal
agreement with Puget Sound Clean Air Agency (substantially as drafted and attached to this request)
to provide matching funds so that the Agency can implement the project.
The Agency will invoice the Port for 6.75% of eligible project costs, as expenses are incurred, on a
monthly basis. 
Schedule 
Task                            Start         Finish 
Agency executes ILAs with Port of Seattle and    May 2015      June 2015 
Port of Tacoma 
Agency completes project planning activities and   July 2015       January 2016 
bills Port for 6.75% match of grant-eligible costs 
Agency carries out project and bills for Port 6.75%  February 2016    December 2017 
match of grant-eligible costs 
FINANCIAL IMPLICATIONS 
Budget/Authorization Summary           Capital      Expense      Total Project 
Previous Authorizations (Activity Numbers         $0        $7,098,000        $7,098,000 
U00079, U00134 and 105197) 
Current request for authorization                 $0         $250,000          $250,000 
Total Authorizations, including this request          $0        $7,348,000        $7,348,000 
Remaining budget to be authorized         $0          $0                $0 
Total Estimated Project Cost                   $0        $7,348,000        $7,348,000

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
May 18, 2015 
Page 5 of 9 

Project cost breakdown 
Port
Eligible     Port    Ineligible   Total Port
Grant       Project      Authorized
Grant     Match     Costs      Costs 
Amount 
Puget Sound
CMAQ 2012  Regional Clean      $4,202,000   $3,535,000    $552,000    $115,000    $667,000 
Truck Program PS-10
(160 trucks) 
Puget Sound
Ecology     Regional Clean        $525,000     $500,000        $0     $25,000      $25,000 
Clean Diesel   Truck Program (20
trucks) 
Port of Seattle
DERA     Drayage Truck      $1,608,000   $1,200,000       $0    $408,000    $408,000 
Replacement Project
(40 trucks) 
CMAQ
Puget Sound
Supple-
Regional Clean
mental                          $763,000      $638,000     $100,000      $25,000      $125,000 
Truck Program Phase
2, PS-13 (19 trucks) 
Regional Port Clean                 $0         $0 
CMAQ   Truck Program,     $250,000               $0     $250,000 
2014*       PSCAA-1*
(115 trucks) 
TOTAL PORT COSTS (excluding
CMAQ 2014 funds that will not flow   $7,348,000    $6,123,000    $652,000    $573,000    $1,725,000 
through the Port) 
* Puget Sound Clean Air Agency is the recipient of this grant. The total project costs and grant-eligible funds
will not flow through the Port. Total project authorization is $7,348,000. 
Budget Status and Source of Funds 
The project funds relating to the previously approved grant elements of this program were included in
the Port's 2014 and 2015 Operating Budgets. The 2015 budget includes $4,929,000 in non-operating
funds to support the Clean Truck component of the Northwest Ports Clean Air Initiatives, including
$125,000 for matching funds for the Agency's multi-port ScRAPS project. 
Based on a revised project schedule provided by the Agency, it is anticipated that the Port's
contribution will be approximately $20,000 in 2015, $180,000 in 2016 and $50,000 in 2017. The 
remaining Port investment will be requested in the Seaport 2016 and 2017 budgets. All costs to be
covered by the Port will be funded out of the Seaport Division's Non-Operating General Fund.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
May 18, 2015 
Page 6 of 9 
Financial Analysis and Summary 
CIP Category             N/A 
Project Type              Environmental  Non Operating Expense 
Risk adjusted discount rate     N/A 
Key risk factors              Agency is unable to successfully complete project due to
unforeseen delays, insufficient number of truck owners
applying for incentives, potential cost overruns due to project
complexity or unanticipated changes. 
Delays in project launch and uptake may impact Port non-
operating budget for years 2015, 2016 and 2017 (although
Port total contribution will remain fixed at $250,000.) 
Project cost for analysis        N/A 
Business Unit (BU)          Seaport 
Effect on business performance  N/A 
IRR/NPV             N/A 
STRATEGIES AND OBJECTIVES 
This project aligns with the following Port strategic objectives: 
The Century Agenda strategy to be the greenest and most energy-efficient port in North
America, and associated objective to reduce air pollutant emissions by 50% from 2005 levels.
Model year 2007 engines emit ten times less particulate matter than 1994-2006 engines.
Model year 2010 engines emit five times less oxides of nitrogen. 
The Century Agenda strategy to position the Puget Sound region as a premier international
logistics hub. Newer trucks will be cleaner, safer, and more reliable. 
The project supports the Port-wide strategy to manage our finances responsibly. This project
leverages Port dollars with federal and state grant monies. 
TRIPLE BOTTOM LINE 
Economic Development 
The Seaport business plan notes that environmental stewardship provides a business advantage.
Implementing another truck-scrapping program will help the Port meet the goals of the Northwest
Ports Clean Air Strategy, which is incorporated into the Seaport's Green Gateway Strategy. Newer
trucks will be cleaner, safer and more reliable. 
Environmental Responsibility 
The purpose of this project is to replace older trucks with models that produce ten times less
pollution. This aligns with the Port's Century Agenda goal to reduce air emissions. Old trucks that
are replaced will be required to be scrapped so that they cannot be used elsewhere. The scrapping
process maximizes reuse of materials.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
May 18, 2015 
Page 7 of 9 
Community Benefits 
The project helps to clean the environment and protect public health by reducing diesel exhaust
emissions from 354 older trucks and assists truck owners and operators who are Port business
partners to upgrade their trucks to newer models that will enable them to continue working when
restrictions on pre-2007 engine trucks go into effect. Many of the local trucking companies that will
benefit are small businesses. Many of the independent owners and operators are immigrants with
limited English language proficiency and lower incomes. The public health benefit of the avoided
particulate emissions from all 354 trucks is valued at approximately $5.8 million per year (based on
USEPA's Diesel Emission Quantifier Health Benefits Methodology). This aligns with the Century
Agenda commitment to steward the environment, partner with communities and promote social
responsibility.
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1)  Do not expand the project to provide matching funds so that clean truck ScRAPS 2
incentives can be offered to 115 additional trucks. Without an incentive program, it will be difficult
for some truck owners/operators to stay in business when the requirement for 2007 model-year
engines takes effect. This is not the recommended alternative. 
Alternative 2)  Offer clean truck ScRAPS 2 incentives to 115 additional trucks using only Port
funds. This would require significantly more Port dollars. This is not the recommended alternative. 
Alternative 3)  Enter into the ILA with the Agency and provide $250,00 in matching funds so that
the existing clean truck ScRAPS 2 program can provide incentives to an additional 115 trucks. By
leveraging Port funds with this grant, more trucks can be upgraded to meet the Port's business and
environmental objectives. This is the recommended alternative. 
ATTACHMENTS TO THIS REQUEST 
Draft Interlocal Agreement with Puget Sound Clean Air Agency 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
July 22, 2014  the Commission authorized executing an agreement with the Washington
State Department of Transportation to accept a supplemental Congestion Mitigation and Air
Quality grant and to proceed with the grant-funded project to provide incentives for replacing
or upgrading 119 or more drayage trucks to meet 2010 emission standards. 
June 24, 2014  the Commission authorized acceptance of a US Environmental Protection
Agency Diesel Emission Reduction Act grant for the ScRAPS 2 project and to increase the
project budget with grant and Port funds. 
December 10, 2013  the Commission authorized executing an agreement with the State of
Washington Department of Ecology to accept a Clean Diesel grant for the ScRAPS 2 project
and to increase the project budget with grant and Port funds. 
December 10, 2013  the Commission adopted the 2013 Northwest Ports Clean Air Strategy. 
December 3, 2013  the Commission was briefed on the final Northwest Ports Clean Air
Strategy 2013 Update.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
May 18, 2015 
Page 8 of 9 
June 25, 2013  the Commission was briefed on the draft 2013 Northwest Ports Clean Air
Strategy. 
June 25, 2013  the Commission authorized executing an agreement with the Washington
State Department of Transportation to accept a Congestion Mitigation and Air Quality grant
and to proceed with the grant-funded project to provide incentives for replacing or upgrading
160 or more drayage trucks to meet 2007 emission standards. 
December 4, 2012  the Commission was briefed on the results of the 2011 Puget Sound
Maritime Air Emissions Inventory and options for accelerating the NWPCAS truck goals. 
May 1, 2012  the Commission authorized to sign agreement 20090046 Amendment 5 with
the Puget Sound Clean Air Agency to transfer $1,050,000 in funds to support the
implementation of the Northwest Ports Clean Air Strategy. Amendment 5 increased the total
amount transferred from the Port to PSCAA since 2009 to $5,216,250. 
February 7, 2012  the Commission was briefed on the Northwest Ports Clean Air Strategy
and on the Port's current air quality program effort, and draft recommendations on options for
accelerating Seaport Clean Air Strategy goals. 
July 12, 2011  the Commission was briefed on the Northwest Ports Clean Air Strategy 2010
Implementation Report and interim report on Accelerating Clean Air Goals. 
February 1, 2011  the Commission authorized to sign agreement 20090046 Amendment 4
with the Puget Sound Clean Air Agency to transfer $1,160,250 in funds to support the
implementation of the Northwest Ports Clean Air Strategy, and to extend the end date from
June 30, 2011, to June 30, 2013. Amendment 4 increased the total amount transferred from
the Port to PSCAA since 2009 to $4,166,250. 
January 4, 2011  the Commission adopted the "Motion to Accelerate Seaport Clean Air
Goals to 2015." 
December 7, 2010  the Commission was briefed on the Northwest Ports Clean Air Strategy
Implementation Status. 
November 9, 2010  the Commission authorized to increase the amount of the At-Berth Clean
Fuels Vessel Incentive Program by $110,250, for a total 2010 annual program budget of
$951,750, to cover participation by the projected number of qualifying vessel visits for the
remainder of the year. 
June 8, 2010  the Commission authorized to supplement the value of the At-Berth Clean
Fuels Vessel Incentive Program by $541,500, for a total 2010 annual program budget of
$841,500. Within the $541,500, $135,000 represents funds that were originally approved in
2009, but were not used until 2010. 
January 12, 2010  the Commission was briefed on the Seaport's Air Quality Program. 
August 25, 2009  the Commission received a Clean Air Update. 
August 25, 2009  the Commission authorized a revised Customer Support Package lease
amendment with Total Terminals Inc.; and authorized the Port to purchase energy efficient
light fixtures and related equipment for T-46, for an amount not to exceed $680,000.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
May 18, 2015 
Page 9 of 9 
June 23, 2009  the Commission received a briefing on the Northwest Ports Clean Air
Strategy 2008 Implementation Report. 
April 14, 2009  the Commission authorized an agreement with Puget Sound Clean Air
Agency, to transfer $2.3 million ($1.15 million in 2009 and $1.15 million in 2010) from the
Port's operating budget to support the implementation of the Northwest Ports Clean Air
Strategy. 
April 14, 2009  the Commission authorized the execution of lease agreements with Total
Terminals Inc. for Terminal 46, SSAT (Seattle) for Terminal 25/30, SSA Terminals for
Terminal 18, and Eagle Marine for Terminal 5, to incorporate the Customer Support Package
and the Ports Clean Air Program into those leases. 
March 31, 2009  the Commission was briefed on the customer support package and the
Clean Air Program. 
February 10, 2009  the Commission held a policy roundtable discussion of the Clean Air
Program. 
December 2, 2008  the Commission authorized a transfer of $500,000 to the Puget Sound
Clean Air Agency for the At-Berth Clean Fuels Vessel Incentive Program. 
November 11, 2008  the Commission was briefed on the Port's Clean Truck Program. 
September 2, 2008  the Commission was briefed on the Port's Clean Truck Program for
drayage operations at West Coast Seaports. 
July 8, 2008  the Commission was briefed on the Port's Clean Truck Program. 
April 1, 2008  the Commission and the public were briefed on the Northwest Ports Clean Air
Strategy implementation. 
January 22, 2008  the Commission adopted the Northwest Ports Clean Air Strategy. 
December 6, 2007  the Commission was briefed on the revised draft of the Northwest Ports
Clean Air Strategy. 
August 28, 2007  the Commission adopted Resolution No. 3585, endorsing the U.S. Proposal 
to the International Maritime Organization seeking more stringent air emissions standards for
ocean going vessels. 
April 10, 2007  the Commission was briefed on the Puget Sound Maritime Air Emissions
Inventory Project. 
March 27, 2007  the Commission authorized the amendment of the existing contract for the
Air Emission Inventory in the amount of $25,000, and to receive and spend supplemental
funding for the Puget Sound Maritime Air Emissions Inventory Project. 
February 16, 2007  the Commission passed a series of environmental motions that required,
in part, that staff presented an air quality action plan for Commission approval. 
April 26, 2005  the Commission authorized joint development of the Puget Sound Maritime
Air Emissions Inventory and $500,000 for support and implementation of the project. 
February 9, 2005  the Commission adopted Resolution No. 3534, expressing its commitment
to Maritime Air Quality.