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A P.O. Box 1209 Port === SRR of Seattfe www.portseattis.org August 26, 2013 Ms. Carrol Johnston Clean Diesel Grant Program Coordinator Washington State Department ofEcology Air Quality Program PO Box 47600 Olympia, WA 98504-7600 Dear Ms. Johnston: RE: Clean Diesel Grant Application for Port of Seattle Clean Truck Program Please consider the enclosed application for a Washington State Clean Diesel Grant of $475,000. Summary of Proposal: The proposed project will replace 19 older (model years 1994 — 2006) privately-owned drayage trucks that serve Port ofSeattle marine terminals with trucks having a 2007 model year engine or newer, or replacement engines meeting the 2007 emission standard. This will be accomplished by providing financial incentives of up to $20,000 per truck. Administrative costs to administer this program will be approximately 20% of the total cost, or about $5,000 per truck, for a total cost of $25,000 per truck. Old trucks will be scrapped. The estimated project duration is 18 months, with expected completion by March, 2015. This project will run concurrently with a parallel, federally funded Congestion Mitigation Air Quality project to scrap/replace or retrofit 160 trucks serving the Port of Seattle. Project Need: The project will implement components of a larger effort, the Northwest Ports Clean Air Strategy to reduce port-related diesel emissions, including those from drayage trucks serving marine terminals. Currently, all trucks calling at the Port of Seattle container terminals must meet the federal emission standards for engine-year 1994. On January 1, 2018, all drayage trucks entering Port of Seattle container terminals will be required to have model-year 2007 or newer engines or equivalent. The 2007 year engines emit one-tenth the particulate matter ofpre- 2007 engines. The project will reduce diesel emissions in Seattle’s Duwamish Valley, the hub of most of the Port of Seattle marine terminals that are also in close proximity to residential areas. There are about 2,500 trucks calling routinely at container terminals. About 15% ofthose trucks are already equipped with model year 2007 engines or newer, and it is expected that normal fleet turnover will occur before the 2018 deadline, increasing the proportion of newer trucks in the fleet. In addition, 160 trucks will be replaced or retrofitted via a joint federal/Port of Seattle- @ 0 “ fein main TESSCA Redan Slmay WAREI pny7 ww emg TAY Xo niFRed Te" ise FER eget i Srl FT Eis f L fuse smiteJ sreof dE wardSEGausitnsel gedaaBde leva PsZANEpif “Hr | wol 19% GE BURY A7 shytSige o sane Ah (eal auaoa’ eel Sead Tr slid26Satnalplier 2Se fects ge 2an TOESSeore kidms[RS ssiponRe 1 YE malianBiante wal Shui Loin {- magi. 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Partnerships: The Port of Seattle is the recipient of a federal Congestion Mitigation Air Quality (CMAQ) grant per the enclosed Local Agency Agreement with the Washington Department of Transportation and Federal Highways Administration. These funds will be used to replace or retrofit 160 older polluting drayage trucks that serve Port of Seattle marine terminals with newer model year trucks and/or EPA-certified ‘emission reduction retrofits to render them equivalent to a 2007 model year truck. This will be accomplished by providing financial incentives ofup to $20,000 per truck to truck owners. Trucks that are not retrofitted will be scrapped. We are in the planning stage of this project and expect to begin accepting applications for the financial incentive in early 2014. The incentives are expected to be offered through the end of 2014, with project closeout in early 2015. A more detailed description ofwork and budget for the CMAQ- supported project are enclosed. The CMAQ-funded project description encompasses retrofits to older trucks, which could include exhaust retrofits, engine replacement with newer diesel or CNG engines, and other alternatives that may come on the market in the future. We are currently defining conditions, if any, under which we would allow reimbursement for retrofits such as Diesel Particulate Filters, due to concerns about their performance and maintenance needs in typical drayage operations. We propose to administer a single truck scrapping/replacement program to meet the requirements of both the CMAQ and Ecology Clean Diesel grant programs. This would be accomplished by: e Incorporating both federal and state requirements into contract advertising and award; e Utilizing a single truck incentive application/processing system that meets both CMAQ ~ and Ecology requirements; and e Implementing cost-tracking and invoicing systems to ensure that grant reimbursements align with both the CMAQ and Ecology requirements. One way to achieve this would be to assign grant-eligible expenses to the respective agencies based on a formula that proportions costs according to the relative contribution of each grant-funded project. Thank you for considering this application. If you have any questions or need any additional information, please contact Janice Gedlund, Seaport Air Quality Program Manager at (206) 787- 7924 or gedlund.j@portseattle.org. Sincerely, — Linda Styrk Seaport Managing Director Enclosures: 5 ) efsmizeliol Ferny’ pied rgd SSray - " Engr 9 earful Ea 4d sir arin 25% i titanate [ TE ian Tl Soe mts Mi Safin shag)i Sin SharpShall ve AsSabi elwig re Bvemn arMEtigananNwaTineAMoreyincloutSalman ba BERD YS ed! 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Ruan IES Ye RTs oy tla off 2adie seo) anomE Ey Termitespanama oie ialwn 1 neene svt gol er Fond] “Re fed¥C] an emminaS rmma Fiftahewh reese heal)pissfreeeHam,mechci SOLRMIROLE eum © obi” Mh Fu ~ © ren mnt leGRhp} ie saswhe A - resswrt Fei4 F weir pAshINS on J FOR Ecology Use Only Department of Ecology Application¥ ) ( 0 I 0 6 Y Air Quality Program P Application for Clean Diesel Grant Program (Please provide a cover letter with your application that briefly describes your project) 1). Applicant Name: Port of Seattle, Seaport Division Address: P.O.Box 1209 Federal Tax Identification Number: Seattle, WA 98111 91-6001-025 DUNS Number: 009483694 2). Number of Heavy-Duty Diesel Vehicles/Equipment Pieces in Your Fleet: 19 3). Please indicate the type of clean diesel project(s) you are interested in (Check as many as apply and describe in more detail in the cover letter) a) Exhaust retrofit b) Idle reduction c) Engine rebuild d) Engine repowerX e) Vehicle/equipment replacement_X f) Other (provide brief description below) * 4). Applicant Authorized Signatory: 5). Applicant Staff Contact: (person listed here must sign Section 9 of this application) (please complete both items 4 and 5) Name: Linda Styrk Name: Janice Gedlund Title: Managing Director, Seaport Division Title: Air Quality Program Manager Phone: (206) 787-3873 Phone: (206) 787-7924 Fax: (206) 787-3280 Fax: (206) 787-3707 Email: styrk.l@portseattle.org Email: gedlund.j@portseattle.org 6). Project Duration: 15 months 7). Diesel Vehicle/Equipment List: Use the Diesel Grant Equipment List (EXCEL spreadsheet) posted on Ecology’s Diesel Grants website to provide complete fleet information. All heavy-duty diesel vehicles/equipment owned and/or registered and operated by the applicant organization should be listed as part of your fleet. For example, one fleet might include three refuse trucks, two dump trucks and fourteen transit buses. If a vehicle has already been retrofitted, please indicate the type of emission control device installed. Previously retrofitted vehicles/equipment may be eligible for an additional emission control device. ECY 070-194 (rev. 07/11) Page 1 5 1 Vutszniaead S oo anal eiarid vq i . foregobnTaeoI Eas100 aDuinlg, . FrsmaeinenBlTedmeet,uhSly eeii palwean pe) Y ry. CC -.. c= N . Pe To = lieth ff Suenele. eit a mh REOR-1 BEEAW.ms Vip Sen =csc sin wr CE— atMg z mir. ith rla AiABen wiirea want hsHME yieSialWral TeStaA RETa ATa } = ” Tiere Metal Tu _ 7 = HEE SRE Ul ads of od lif 3 A mee etfi I A puester Ngee sw | She utpelleseTealean 4 oo oo a = oo = EL. 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This figure adiTHnIStTe does not include truck scrap incentives. Consultant Contract - program auditor $ 75,000 Provide technical program mgmt assistance including program audits, records, projection on number of trucks & assoc. emission reductions as program evolves POS staff time $ 100,000 Developing contracts, processing invoices, etc. (based on City of Tacoma's costs for similar program in 2012) total admincost $ 827,281 TRUCK INCENTIVES Dollars Comments Paid to truck owner as truck replaced S$ 3,260,000 Assume 160 trucks at $20,000/truck, this may be paid directly by POS or by Gonsultant program administrator total incentives $ 3,260,000 $ 3,269,824.80 INON-eligiblePortof Sez overhead&legal) ESET EE Seaport Environmmental overhead S$ 65,000.00 65% 2013rateeis 65 Other ineligible costs S$ 50,000.00 total non-eligible costs $ 115,000.00 TRUCK SCRAPPAGE REVENUE Dollars Comments Received from scrapping co's as trucks S$ (84,000.00) REVENUE, NOT COST. 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