PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.       6a 
ACTION ITEM             Date of Meeting    June 25, 2013 

DATE:    June 17, 2013 
TO:      Tay Yoshitani, Chief Executive Officer 
FROM:   Stephanie Jones Stebbins, Director Seaport Environmental & Planning 
Janice Gedlund, Seaport Air Quality Program Manager 
SUBJECT:  Congestion Mitigation Air Quality Grant for Clean Truck Program 
Amount of This Request: $4,202,000         Source of Funds: Congestion Mitigation 
Air Quality Grant and Seaport General Fund 
Est. State and Local Taxes: N/A            Est. Jobs Created: N/A 
Est. Total Project Cost: $4,202,000 (Port share $667,000, federal share $3,535,000) 
ACTION REQUESTED: 
Request Commission authorization for the Chief Executive Officer to: (1) execute a Local
Agency Agreement with the Washington State Department of Transportation, substantially as
drafted and attached to this request, to accept a Congestion Mitigation Air Quality (CMAQ)
grant; and (2) proceed with the  CMAQfunded project that will replace or upgrade drayage
trucks to the emissions equivalent of a 2007 model-year engine.   The total project amount
requested is $4,202,000, of which the Port will contribute $667,000. 
SYNOPSIS: 
The Port competed for and won a $3,535,000 grant from the Puget Sound Regional Council 
using federal Congestion Mitigation Air Quality (CMAQ) funding for the Port's Puget Sound
Regional Clean Truck Program project. The project's purpose is to reduce diesel truck emissions,
which are the most harmful to human health, by replacing or upgrading 160 or more older
polluting drayage trucks that serve Port of Seattle marine terminals.  Older trucks would be
replaced with newer model-year trucks and/or EPA-certified emission reduction retrofits to
render the equivalent to the emission standards of a 2007 model-year truck. Trucks of this model
year are ten times cleaner than pre-2007 engines. Trucks participating in this program that are
not retrofitted will be scrapped. The project will span two years (2013 and 2014).
CMAQ funding is administered by the Washington State Department of Transportation. Eligible
expenses are reimbursed at a rate of 86.5%, and will cap at $3,535,000. The Port's contribution
of 13.5% over the two-year period will be $667,000, which includes $115,000 in costs not
eligible for grant funding. The total project cost is $4,20 2,000.  The 2013 budget includes
$325,000 to support the Clean Truck component of the Northwest Ports Clean Air Strategy. The

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
June 17, 2013 
Page 2 of 7 
balance of the Port's investment of approximately $342,000 will be requested in the 2014
Seaport non-operating budget.
BACKGROUND: 
The Northwest Ports Clean Air Strategy was adopted by the Port Commission on January 22,
2008. One of the strategy's key objectives is to reduce port-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.
The Port partnered with the Puget Sound Clean Air 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, with an interim target of 80% of trucks by
2015 and 100% by 2017. Model year 2007 engines are ten times cleaner than pre-2007 engines.
Port staff estimates that there are about 2,500 trucks calling routinely at container terminals.
About 15% of those trucks are already equipped with model year 2007 engines or newer. With
normal fleet turnover, it is expected that this percentage will increase somewhat over the next
four years. However, extensive outreach to the trucking community indicates that financial and
other assistance is necessary for some truck owners to meet the Port's environmental
requirements. 
The grant dollars available will provide funding for at least 160 trucks to be upgraded, assuming
a financial incentive level of $20,000 per truck. This incentive level is on par with that offered
by other clean truck programs around the country, which are typically designed to cover  to 
the cost of a used truck with a model year 2007 engine.  In 2011-12 the City of Tacoma
implemented a similar ScRAPS program that provided incentives of $15,000 - $20,000 per truck.
Tacoma's program was also funded by a CMAQ grant. If truck prices drop, the incentive level
may be reduced. Also, if less expensive options for upgrading trucks are identified, such as
retrofits or fuel conversion kits, a lower level of incentive could be set, which would provide for
additional trucks to be upgraded through this program. 
The original grant application described a more extensive program and requested a higher level
of funding than was ultimately offered.  It described a multi-faceted regional clean truck
program, incorporating three discrete elements proposed by multiple government agencies: (1)
the Port of Seattle's element to replace or retrofit 200 older drayage trucks with newer model-
year trucks and/or EPA-certified emission reduction retrofits to render the equivalent to the
emission standards of a 2007 model-year truck; (2) a King County element to install electric
plug-in connectors for trucks at truck parking lots in North Bend and Sumner, and  to install
auxiliary power units on 22 trucks that serve marine terminals at the Ports of Seattle and
Tacoma; and (3) a Port of Tacoma element to install Optical Character Recognition (OCR) at

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
June 17, 2013 
Page 3 of 7 
two Port of Tacoma terminals. Subsequently, the agencies involved agreed to split the grant
award, and the project description and budgets were adjusted.
Staff will return to the Commission at a later date for authorization for project-specific
contracting. We anticipate contracting with a  third-party project administrator to provide a
program resource center, process applications for truck incentives and issue incentives, with an
extimated cost exceeding the $300,000 threshold requiring Commission authorization.
PROJECT JUSTIFICATION:
Authorization of this request will leverage the Port's dollars with over $3.5 million in federal
grant funds to implement a second ScRAPS program to upgrade 160 or more trucks serving the
Port's marine container terminals. Having newer trucks serving our terminals will reduce air
emissions and help implement our clean air strategy. 
Project Objectives: 
Replace 160 or more older, polluting trucks serving Port marine terminals with trucks
meeting model year 2007 emission standards or equivalent by December 31, 2014. 
Utilize grant funding and Port funding in the most economical manner. 
Complete project in compliance with federal grant guidelines, on time and within
budget. 
PROJECT SCOPE OF WORK AND SCHEDULE: 
Scope of Work: 
The scope of this project includes incentivizing truck scrapping and replacement, and/or
installing EPA-certified emission reduction retrofits, to render trucks equivalent to the emission
standards of a 2007 model-year truck, for at least 160 trucks serving Port of Seattle marine
terminals. To accomplish this, the Port will  contract with a third-party project administrator to
provide a program resource center  for the trucking community, process applications for
participation in the truck incentive program,  and issue incentives. The Port will also contract
with a third party to audit the truck scrapping program to ensure that the CMAQ grant
obligations are met. 
Schedule: 
Start           Finish 
Program design & contracting               July 2013       December 2013 
Program  implementation  (offer  &  issue December 2013   December 2014 
incentives)
Closeout                            January 2015     January 2015 
FINANCIAL IMPLICATIONS: 
The following budget and authorization summary is for upgrading 160 trucks. This is the number
of trucks identified in the approved CMAQ project description.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
June 17, 2013 
Page 4 of 7 
Budget Authorization Summary:
Capital     Non-Ops Expense  Total Project 
Original Budget                    $0        $4,202,000       $4,202,000 
Previous Authorizations               $0        $0            $0 
Current request for authorization          $0        $0             $0 
Total Authorizations,includingthis request    $0        $0             $0 
Remaining budget to be authorized       $0        $0            $0 
Total Estimated Project Cost            $0        $4,202,000       $4,202,000 
Project Cost Breakdown: 
The following project cost breakdown covers upgrades for 160 trucks. This is the number of
trucks identified in the approved CMAQ project description. 
Project Cost Breakdown:             This Request      Total Project 
Truck Scrapping (contracted services and
$3,987,000         $3,987,000 
truck incentives) 
Project Management & other soft costs          $215,000           $215,000 
Total                                $4,202,000          $4,202,000 
Budget Status and Source of Funds: 
The 2013 budget includes $325,000 in non-operating funds to support the Clean Truck
component of the Northwest Ports Clean Air Initiatives. The balance of the Port investmentof 
approximately $342,000 will be requested in the Seaport 2014 budget. Another source of funds
may include reimbursement from truck scrapping/recycling, which is estimated to be $80,000. 
Project cost breakdown with grant funding: 
Eligible Grant  Port Match  Ineligible  Total Port
Grant      Project      Total Cost 
Funding 86.5%    13.5%     Costs     Costs 
Puget Sound
CMAQ  Regional Clean   $4,202,000  $3,535,000    $552,000   $115,000  $667,000 
Truck Program

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
June 17, 2013 
Page 5 of 7 
Financial Analysis and Summary: 
CIP Category             N/A 
Project Type              Environmental  Non Operating Expense 
Risk adjusted discount rate     N/A 
Key risk factors              insufficient number of truck owners apply  for
incentives 
potential cost overruns due to project complexity or
unidentified additional changes needed 
Project cost for analysis        N/A 
Business Unit (BU)          Seaport 
Effect on business performance  The grant proceeds will be reported as non-operating grant
revenue and the related project cost will be reported as
non-operating expense in 2013 and 2014. 
IRR/NPV             N/A 
STRATEGIC 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.
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 grant monies. 
ENVIRONMENTAL SUSTAINABILITY: 
The purpose of this project is to replace older trucks with models that produce ten times less
pollution. 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. 
BUSINESS PLAN OBJECTIVES: 
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. 
TRIPLE BOTTOM LINE SUMMARY: 
The project helps to clean the environment by reducing diesel exhaust emissions from 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

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
June 17, 2013 
Page 6 of 7 
businesses, and many of the independent owners and operators qualify as environmental justiceprotected
due to income levels and English language proficiency.
ALTERNATIVES CONSIDERED AND THEIR IMPLICATIONS: 
Alternative 1. Do not offer a clean truck ScRAPS incen tive program. 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 alternative is not
recommended. 
Alternative 2. Offer a clean truck ScRAPS incentive program using only Port funds.
This would require significantly more Port dollars. This alternative is not recommended. 
Alternative 3. Accept the grant and offer a clean truck ScRAPS incentive program. By
leveraging Port funds with the federal grant, more trucks can be upgraded to meet the
Port's business and environmental objectives. This is the recommended alternative. 
OTHER DOCUMENTS ASSOCIATED WITH THIS REQUEST: 
December 3, 2012, letter from the Puget Sound Regional Council notifying the Port of
the award of grant funding. 
Draft Washington State Department of Transportation Local Agency Agreement. 
2012 grant application. 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS: 
February 9, 2005  the Commission adopted Resolution No. 3534, expressing its
commitment to Maritime Air Quality. 
February 16, 2007  the Commission passed a series of environmental motions that
required, in part, that staff present an air quality action plan for Commission approval. 
December 6, 2007  the Commission was briefed on the revised draft of the Northwest
Ports Clean Air Strategy. 
January 22, 2008  the Commission adopted the Northwest Ports Clean Air Strategy. 
April 1, 2008  the Commission and the public were briefed on the Northwest Ports
Clean Air Strategy implementation. 
July 8, 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. 
November 11, 2008  the Commission was briefed on the Port's Clean Truck Program. 
February 10, 2009  the Commission held a policy roundtable discussion of the Clean Air
Program.
March 31, 2009  the Commission was briefed on the customer support package and the
Clean Air Program. 
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.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
June 17, 2013 
Page 7 of 7 
April 14, 2009  the Commission authorized an agreement with Puget Sound Clean Air
Agency, to transfer $2.3 million ($1.15m in 2009 & $1.15m in 2010) from the Port's
operating budget to support the implementation of the Northwest Ports Clean Air
Strategy. 
June 23, 2009  the Commission received a briefing on the Northwest Ports Clean Air
Strategy 2008 Implementation Report. 
August 25, 2009  the Commission received a Clean Air Update. 
January 12, 2010  the Commission was briefed on the Seaport's Air Quality Program. 
December 7, 2010  the Commission was briefed on the Northwest Ports Clean Air
Strategy Implementation Status. 
January 4, 2011  the Commission adopted the "Motion to Accelerate Seaport Clean Air
Goals to 2015." 
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 would increase the total amount
transferred from the Port to PSCAA since 2009 to $4,166,250. 
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 7, 2012  the Commission was briefed on the Northwest Ports Clean Air
Strategy on the Port's current air quality program effort, and draft recommendations on
options for accelerating Seaport Clean Air Strategy 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 would increase
the total amount transferred from the Port to PSCAA since 2009 to $5,216,250. 
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.