7a memo

PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      7a 
STAFF BRIEFING 
Date of Meeting     January 7, 2014 
DATE:    December 31, 2013 
TO:     Tay Yoshitani, Chief Executive Officer 
FROM:    Patricia Akiyama, Director, Public Affairs 
Beth Osborne, Federal Government Relations Manager 
Clare Gallagher, State Government Relations Manager 
Mike Merritt, Manager, Government Relations-Puget Sound/Washington 
SUBJECT:  2014 Government Relations Briefing 
SYNOPSIS 
In advance of Congress and the State Legislature reconvening in January, and a new
mayoral administration in the City of Seattle, Port staff will review the current status of
issues, and assess conditions going forward for 2014. 
BACKGROUND 
2014 FEDERAL LOOK AHEAD
With mid-term Congressional elections on the horizon in November and a divided House
and Senate, gridlock continues to be a consistent theme. However, the Port succeeded in
advancing some important priorities over the past year. Examples include the President's
Fiscal Year (FY) 2014 budget including a port priority to ensure we are "big ship ready,"
the introduction of comprehensive Harbor Maintenance Tax Reform legislation in the
Senate, and a provision in the budget deal requiring the Transportation Security
Administration (TSA) to staff exit lanes at airports. 
As in years past, many federal Port priorities are ongoing and will be carried forward into
2014 and beyond. The Port's federal representatives in Congress hold key positions in
Senate leadership and Appropriations, Senate Finance, House Ways and Means, and
Transportation and Aviation Subcommittees. 
Looking ahead, the passage of the budget compromise struck between Washington's
Senate Budget Chair Senator Patty Murray and House Budget Chair Representative Paul
Ryan sets the stage for some compromises. The Murray-Ryan agreement paves the way
for Congress to replace the ongoing Continuing Resolution with FY2014-specific
appropriations bills. This would give renewed hope to advancing the U.S. Army Corps
study in the President's budget to update the depths authorized in the federal channels
serving the Port's container terminals. 

Template revised May 30, 2013.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
December 31, 2013 
Page 2 of 6 
Additionally, the House and Senate are in conference negotiations on the Water
Resources Development Act (WRDA), which might include some aspirational Harbor
Maintenance Tax reforms and a long-advocated provision called Section 214, which 
gives permanent authority to the U.S. Army Corps to receive funds from ports to process
permits. 
There are upcoming opportunities to advance port priorities. Preliminary discussions are
underway on MAP-21 Reauthorization, and conversations are set to begin on Federal
Aviation Administration (FAA) Reauthorization and potentially even tax reform; but with
a full schedule, it is likely that these discussions will serve only as a basis for legislation
voted on in the next Congress or beyond. Additionally, legislation on the horizon
includes Coast Guard Reauthorization, and Railroad Reauthorization.
Ongoing federal priorities and ongoing areas of port interest 
Comprehensive reforms to the Harbor Maintenance Tax (HMT) that, among
several principles, include a level playing field for U.S. container ports. 
Sustainable security and infrastructure funding for airports that improves
economic development and passenger safety. 
U.S. Army Corps of Engineers deepening studies to ensure the port can meet
demands of larger container ships. 
Partnership with the Lower Duwamish Waterway Group to advocate for an
Environmental Protection Agency (EPA) cleanup plan. 
Water Resources Development Act reauthorization legislation, including
previously identified priorities, and provisions to improve the competitiveness of
the seaport. 
MAP-21 (federal surface transportation legislation) implementation and
reauthorization, including provisions to improve freight mobility. 
Trade legislation that increases international commerce and includes 21st century
environmental and labor standards. 
Efficient and secure passenger and cargo screening, including adequate Customs
and Border Patrol staffing. 
Efforts to improve the visa waiver process or to facilitate the process of obtaining
visas for business and tourist travel to the U.S. 
Federal funding opportunities including TIGER, and joint planning and land-use 
redevelopment of airport property. 
Possible legislation with potential to include port-related policies 
Conference report for the Water Resources Development Act Reauthorization 
FY2014 or FY2015 Appropriations and Budget legislation

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
December 31, 2013 
Page 3 of 6 
2014 Coast Guard Reauthorization 
2014 Railroad Reauthorization 
2015 MAP-21 Reauthorization 
2015 Federal Aviation Administration Reauthorization 
2015 Tax Reform Legislation 
Trade agreements 

STATE GOVERNMENT LOOK-AHEAD 
It will be a short session convening on January 13, meeting for 60 days and requiring
only supplemental budget activity. Revenues for the state continue to meet or slightly
exceed forecasted levels, minimizing the need for budget adjustments from what was 
adopted in 2013. 
Leadership in state government remains divided between the longtime Democratic
majority in the House and the Majority Coalition in the Senate. The Coalition reinforced
its majority by adding a new Republican member to an open seat, and looks to continue 
the same structure for the upcoming session. 
Some of the biggest issues facing the state are the statewide transportation package,
regulations around water quality standards, and the outcome of the Boeing 777X
manufacturing site selection. Each of these impacts the Port to varying degrees, and the
overall health of the state's economy. The policy activity related to each is ongoing. 
Transportation 
After a year's worth of work developing an ambitious package of transportation
improvements and funding sources, transportation advocatesled by Rep. Judy
Clibbornwere unable to secure a vote by both chambers on a new statewide package of
transportation investments. The House passed a 10.5 cent gas tax proposal in June that
contains important improvements for freight mobility across the state, but the Senate has
not yet voted on any proposal. Negotiators from the House and Senate met through the
year, making substantial progress, but did not get to a successful compromise package. 
The unresolved issues remain around proposed new funding sources for transportation 
projects;  support for transit and non-motorized projects;  and reforms in project
management and other areas to assure efficiency and high performance for these
substantial new capital programs. 
The dialog will continue in the 2014 session, likely moving from the current negotiations 
to new proposals developed through the legislative committee process.  Throughout
2013, the Port consistently and visibly supported adoption of a package, and added a
crucial trade and freight mobility perspective to the broader King County message of
support. The Port will continue that role in the coming year, emphasizing the importance
of the movement of trade and trade-related jobs in this state.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
December 31, 2013 
Page 4 of 6 

Water Quality 
In addition to working directly with the Department of Ecology on stormwater runoff 
from marine terminals, the Port is following state and federal activity to define new water
quality standards. Governor Inslee has engaged a roundtable of affected interests, in part
to discuss how to balance human health criteria for citizens with standards that can be
achieved by permittees, without significantly harming economic growth in the state.
Ports, as permit holders and with marine terminal tenants, are one of several directlyaffected
parties in the state, along with cities and counties with municipal wastewater
treatment facilities. The Washington Public Ports Association is the lead for statewide
port interests on this work, and has participated in a broader delegates' table organized by
Ecology. 
Manufacturing, Trade and Job Growth 
The impact of the expansion by the Boeing Company of the 777X model line brings
together a number of policy issues around the state'sbusiness climate. The state is a
leader in innovation and manufacturing, but faces increasing competition. Advances in
aerospace, high-tech, bio-tech,  and marine construction, and keeping that work in
Washington state into the future, overlap with key areas of growth for the Port, including
seaport and airport cargo business, international air service, maritime manufacturing, 
industrial growth and trade. 
The Port's continued focus will be to enhance the state and region's competitive position
in these economic sectors, both in legislative and regulatory activity. Specific to this is
investment in transportation, job growth, tax incentives related to trade, land use and
other regulatory protections for industrial areas. 
Ongoing state priorities and areas of port interest 
Transportation infrastructure investment, including supporting equitable benefit
for freight mobility projects, and opposing funding for projects which
disproportionately tax freight conveyors and impact the gateway's
competitiveness. 
Environmental policy and funding, including supporting the dedication of MTCA
funds first and foremost to clean-ups of contaminated lands, supporting
achievable water quality standards. 
Tax policy and regulation, including opposition to tax policy proposals that
adversely affect port competitiveness in maintaining and increasing trade through
the Puget Sound gateway. 
Economic growth, including supporting economic development through tourism
and business growth, and monitoring business growth and workforce issues that
directly affect port facilities.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
December 31, 2013 
Page 5 of 6 
Possible state legislation involving port-related priorities 
Transportation infrastructure funding and project selection 
Washington tourism funding and industry engagement 
Derelict vessel management and disposal 

LOCAL GOVERNMENT 
A new Seattle mayor takes office this month promising a far closer relationship with the
maritime, manufacturing and industrial communities than we saw over the past four
years. The Seattle City Council will welcome just one new member, and approval of the
initiative to elect the council by district has the potential to reshape the dynamics of the 
Port's relationship with the city. 
The Port's local-government and regional transportation agenda remains focused on
fostering job-generating economic development opportunities for the Port's lines of
business, promoting improvements in the transportation system to move cargo and
passengers, and supporting environmental clean-up efforts in partnerships with other
agencies. 
To achieve the Port's goals, it works in partnership with stakeholders in the maritime,
fishing, and manufacturing sectors throughout the region. 
In support of Commission initiatives, the Port is working with the Seattle City Council
and Mayor Murray to develop a focused economic-development strategy to create jobs
and support a strong middle class. Elements of this strategy will include addressing
potential for incentives to spur new investment in the maritime, industrial, manufacturing
and fishing sectors. The Port will look closely at zoning, utility and other regulatory
obstacles to job expansion.
The Port will continue to focus significant attention on the City of Seattle's review of
development permits and other entitlements for the proposed sports and entertainment
arena in south Seattle. Moving in tandem with the arena project is a proposed vacation of
a segment of Occidental Street, an important route for freight and general-purpose traffic. 
The City Council may also consider staff recommendations for land-use changes for the
Stadium Transition Overlay District that would permit residential development on a site
just east of Terminal 46. Residential development would be incompatible. 
The Port endorses another set of staff recommendations that would strengthen protection
of industrial lands outside the stadium area, however.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
December 31, 2013 
Page 6 of 6 
The Port will continue its close involvement with the City and State on construction of
the SR 99 bored tunnel, the Alaskan Way surface street, the new waterfront public spaces
and the Elliott Bay seawall construction. 
On-going port priorities: 
Freight planning 
Heavy Haul corridor 
SR 99, I-90, and regional tolling 
Great Northern corridor planning 
Stormwater utility rates 
Street vacations 
PSRC transportation grants 
City, King County and regional economic development 

ATTACHMENTS TO THIS BRIEFING 
None 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
February 5, 2013  Staff Briefing: Potentially significant legislative issues 
February 14, 2013  Policy Roundtable: Warehouse and Distribution Centers 
February 14, 2013  Commission motion: Oppose State House Bill 1719

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