PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      7a 
STAFF BRIEFING 
Date of Meeting    December 8, 2015 

DATE:    November 25, 2015 
TO:     Ted Fick, Chief Executive Officer 
FROM:    Beth Osborne, Manager, Federal Government Relations 
Clare Gallagher, Manager, State Government Relations 
Lindsay Wolpa, Manager, Regional Government Relations 
Geri Poor, Manager, Regional Transportation 
SUBJECT:  Annual Government Relations Briefing 
SYNOPSIS 
The Port of Seattle is a public agency that creates jobs by advancing trade and commerce,
promoting industrial growth, and stimulating economic development. Public policy
advocated by Port representatives reflects this mission and the goals of the Century
Agenda to: 
Position the Puget Sound region as a premier international logistics hub 
Advance the region as a leading tourism destination and business gateway 
Promote small business growth and workforce development 
Be the greenest and most energy efficient port in North America 
The Government Relations Team has an opportunity to annually update the Port
Commission on potentially significant public policy legislation in the coming year.
Below are federal, state, regional and transportation policy issues for the Commission's
consideration.
This information will complement the information shared at the December 1, 2015
Northwest Seaport Alliance legislative meeting, when this team presented on policy
issues pertinent to the Puget Sound Gateway's competiveness for marine cargo. 
BACKGROUND 
FEDERAL RELATIONS 
2015 FEDERAL OVERVIEW 
At the time of this writing, negotiations are underway on several issues of importance to
the port; therefore, more information is yet to come on several issues. Issues that may be

Template revised May 30, 2013.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
November 25, 2015 
Page 2 of 10 
resolved before the end of 2015 include the passage of a long-term surface transportation
bill (the first in over a decade) with robust freight provisions, a year-long omnibus
spending bill that may include funding for port infrastructure and existing fishing vessel
financing programs, and the reauthorization of the Ex-Im bank (which may be attached to
the transportation bill). The following represents progress on priorities as of November
25, 2015: 
I.    Surface transportation reauthorization conference report includes robust freight
funding provisions 
II.    Created a group of aviation stakeholders pushing for airport infrastructure tools 
III.    Engaged leaders in Sustainable Airport Master Plan and growth at Sea-Tac
International Airport as related to passenger facility charge policies 
IV.   Export-Import bank reauthorization is included in must-pass transportation
legislation 
V.   Joined a coalition in DC to advocate for fishing fleet modernization policies 
VI.   Made progress on Northwest Seaport Alliance priorities with funding for rebates
and deepening study 
VII.   Negotiated and signed TIGER grant agreement with the Maritime Administration 
LOOK AHEAD FOR 2016 
Presidential election politics will influence Congressional actions throughout the year.
Locally, along with each Washington U.S. House member, Senator Murray is up for
reelection in 2016, and there is a possibility that the Senate will change hands later in the
year, which would bring elevated roles for both Senator Patty Murray and Senator Maria
Cantwell who now serve in the minority.
ONGOING FEDERAL PORT PRIORITIES FOR 2016 
I.       Federal Aviation Administration (FAA) Reauthorization  
a.  After a short-term extension, authorization for the "Federal Aviation
Administration (FAA) Modernization and Reform Act of 2012" (H.R.
658) expires in March 2016. While committees in both Chambers have
begun writing legislation, significant issues between the House and Senate
approach on whether to privatize Air Traffic Control seems to be the
major hold up to progress.
b.  Whether Congress modernizes the $4.50 federal cap on Passenger Facility
Charges (PFCs) in the FAA Reauthorization bill will have a direct impact

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
November 25, 2015 
Page 3 of 10 
on the Port of Seattle's ability to cost-effectively execute the airport's
capital plan. PFCs are passenger user fees set by airports locally and used
for targeted infrastructure investments that benefit passengers such as
airport capacity, safety, security, and improving the environment. 
c.  While the decision to levy a PFC  and at what level  is local and, for
Sea-Tac, would require Commission approval, Congress has not adjusted
the PFC cap since 2000, meaning the $4.50 cap imposed in 2000 has lost
half of its spending power. In 2001, under the PFC framework, the Port
Commission voted to collect the maximum amount of the PFC, which has
helped build Concourse A, undertake noise mitigation projects, reconstruct
the satellite transit system and pay the debt service on the third runway
project.
d.  The port's current capital projects include the International Arrivals
Facility, NorthStar, Baggage Optimization and other projects commit
existing PFCs through 2045. Modernizing the PFC would provide the Port
with significantly greater cash flow for capital projects required to meet
the needs of our region's growth and travelling public that the port is
studying in the Sustainable Airport Master Plan, thus reducing the amount
of debt issuance, and rates and charges increases for all airlines. 
e.  Other major issues that may surface are conversations surrounding Next
Gen, air traffic control privatization and drones. 
II.       Fishing Fleet Modernization 
a.  The Port has joined with industry and the State of Washington to advocate
for several policies that will help rebuild the fishing fleet and realize the
economic opportunity in this region.
b.  One policy priority to remove an existing prohibition on loans for
construction and reconstruction of fishing vessels hit a significant obstacle
when U.S. Trade Representative (USTR) objected to a National Marine
Fisheries Service proposed rule to allow the loan program to be used for
construction and reconstruction. USTR has raised WTO concerns that this
program could represent a subsidy, which many disagree with; regardless,
USTR is a significant barrier to progress. Until that issue is resolved, it
will not be possible to reauthorize a federal loan guarantee program for
construction and reconstruction of fishing vessels. 
c.  The Coast Guard bill is held up, but is a vehicle to remove the language
that prohibits federal loans and loan guarantees for construction and
reconstruction of fishing vessels over 165 feet. 
III.      Federal Funding for Ballard Locks 
a.  The Army Corps of Engineers operates and maintains the Hiram M.
Chittenden Locks on the Lake Washington Ship Canal, activities which
are 100% federally funded. In the past, maritime stakeholders have been
able to depend on sufficient annual funding to ensure continued operation

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
November 25, 2015 
Page 4 of 10 
of the locks. Yet the locks are nearly 100 years old and the list of
maintenance issues is growing. Continuing to rely on the status quo might
not be sufficient. The locks are only one of many facilities around the
country requiring increased investment. It is far from certain federal
spending will grow to meet all these needs. 
b.  Because the economic importance of the locks is not always well
understood by some of the policymakers involved in federal spending
decisions, the port is leading the formation of a stakeholder coalition that
will work together to build the case for continued federal investments in
this critical facility. 

STATE GOVERNMENT RELATIONS 
2015 STATE OVERVIEW 
This year saw the successful passage of legislation enabling the creation of the Northwest
Seaport Alliance and a transportation funding package for billions of dollars of
investment in state transportation infrastructure, including completion of SR 509.
The implementation of the port development authority caps several years of increased
attention by legislators to the importance of freight mobility and trade to our state's
economy. The formation of the Seaport Alliance improves the focus and consistency of
the message, and the importance of Washington State's competitiveness in attracting and
keeping international trade volumes moving through the state. 
The Port was a sponsor for the annual National Conference of State Legislatures meeting
here in Seattle and worked with our partners at BNSF Railway and SSA Marine to host
harbor tours and support panel presentations on freight and trade. 
We have engaged key legislative and policy audiences on the Sustainable Airport Master
Plan, including committee presentations and briefings; the modernization of the fishing
fleet here in Washington state; and regulatory engagement on overwater structures within
port management plans and agency permitting of port tenants and other marine operators. 
Transportation Package and Regional Transportation Funding 
With the passage of the transportation package, the Puget Sound Gateway (construction
and completion of SR167 and SR509) is now an active project within Washington State
Department of Transportation (WSDOT) and initial planning is underway. The agency
has re-established the SR509 Executive Committee, with Commissioner Creighton
representing the port, and the Steering Committee. Since SR 509 has both seaport and
airport benefits to the Port of Seattle, staff representation on the steering committee will
include both airport staff and NWSA staff. The first engagement is later this week, and
then a meeting and workshop December 16.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
November 25, 2015 
Page 5 of 10 

2016 LOOK AHEAD 
Overview of the Coming Legislative Session 
With the win of the Republican candidate in the 30th District, the House is split 50-48,
Democrat to Republican, the closest margin since 2002. This close margin for the 2016
session minimizes the chance of seeing controversial legislation advancing during the
short session and supplemental budget year. 
The upcoming session will have significant tax issues in front of it; most notably
additional funding for K-12 education as directed by the Supreme Court in the McCleary
case, but legislative leadership will find it difficult to craft a solution within a short
session, election year and narrow vote margins. 
In addition, Initiative 1366, which passed statewide despite failing in King County, has
now been challenged in court. The initiative requires lawmakers to send voters a
constitutional amendment mandating a 2/3 supermajority for tax increases or cut the state
sales tax rate from 6.5 percent to 5.5 percent. The state's Office of Financial
Management estimates that should the initiative take effect, by 2021, it would remove
approximately $8 billion from the state's budget. For comparison, the upcoming
biennium budget for 2017-19 is around $42 billion; the budget approved in June was $38
billion. 
In a supplemental budget year, it's likely to see minimal budget activity. The latest
revenue forecast shows a downturn for the next budget cycle, which will lend increased
caution to legislative initiative. The next forecast will come in February. 
On the regulatory side, Governor Inslee has instituted rule-making for cap and trade
carbon emissions, and is also pursuing new rule-making for water quality standards. 
ONGOING STATE PORT PRIORITIES FOR 2016 
Identifying and supporting restored funding for remedial action grants, which was
passed in the 2015 budget, but then deferred due to Department of Ecology
budget constraints. Grant monies had been identified for reimbursement of
ongoing clean-up work at Lora Lake Apartments in Burien; Terminal 115N and
Terminal 91, both in Seattle. 
Supporting efforts to provide tax incentives or other supporting legislation related
to the modernization of the state's fishing fleet. 
Supporting clarifications to workforce development as part of port districts'
economic development authority. 
Supporting industry-funded statewide tourism legislation, in support of our
ongoing financial support and engagement of the Washington Tourism Alliance

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
November 25, 2015 
Page 6 of 10 
Supporting budget requests, if introduced, for the state Department of Licensing
for increased issuance of enhanced drivers licenses as federally-compliant
documents for air travel from Washington state 
Monitoring rule-making in water quality, carbon emissions, habitat conservation
plans and other areas as identified. 
Working with the NWSA on legislative and regulatory issues related to marine
cargo and freight mobility (as noted in the December 1 NWSA presentation) 

REGIONAL GOVERNMENT RELATIONS 
2015 REGIONAL OVERVIEW 
The Seattle City Council unanimously adopted legislation to create a Heavy Haul
Network of a limited number of city streets to allow for the efficient drayage of
sealed, ocean-going containers between harbor terminals and nearby intermodal
facilities. The new maximum allowable tandem drive axle weight of 43 thousand
pounds and maximum of gross vehicle weight of 98 thousand pounds will be
administered and enforced under a new permitting system.
As part of the legislation, the Port and City of Seattle entered into a Memorandum
of Understanding (MOU), detailing the Port's commitment to the program. As
part of that commitment, the Port will pay up to $250,000 to support the
implementation and operation of the Heavy Haul program through at least the end
of 2017. The amount is the estimated gap between anticipated permit revenues
and the anticipated cost to start up, operate, and enforce the program through
2017. The expectation is that in the spring of 2017, with two cycles of permit and
program information in hand, the City and Port can determine whether
refinements to the fee or permit program elements would be appropriate. 
As a second component of the MOU, the Port has agreed to contribute up to $20
million over the next 20 years to pavement rehabilitation and restoration projects
on heavy haul network roadways. Project-specific Port funding would be directly
tied to the estimated cost of accelerated deterioration of pavement due to heavy
vehicles on the roadway, in addition to the estimated additional layer of paving
needed to support more frequent use by heavy vehicles. In 2016, the Port and
City will together commission a study to more accurately determine the estimated
costs of those efforts. 
Additional details on 2015 regional transportation successes can be found in the
next section. 
In reviewing the basis on which the Port relationship had been operating with
respect to the Suquamish and Muckleshoot Indian Tribes, it became clear that

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
November 25, 2015 
Page 7 of 10 
there was a need to refresh the relationship on a government-to-government basis.
Both tribes agreed and discussions began this year to chart the path forward. 
The Port successfully argued to reverse the City of Seattle's Interpretation on the
Terminal 5 interim lease to prevent a problematic precedent in too narrowly
defining what activities constitute cargo terminal uses.
The Port participated in an advance delegation in Anchorage to plan for a spring
Alaska and Puget Sound leadership summit. The participants examined the
dynamic economic connection between Puget Sound and Alaska and identify key
issues shaping the future of the unique and important relationship. 

2016 LOOK AHEAD 
Next year brings the first full year of operations for the Northwest Seaport Alliance 
(NWSA). As many issues at the regional level will directly impact operations of the new
joint venture, close coordination with the Port of Tacoma Managing Members will be
important. More specifically, we will seek opportunities for bringing a larger regional
ports' perspective to bear on local economic development, transportation issues and landuse
policies. 
City of Seattle 
The implementation of the Seattle City Council district positions will undoubtedly impact 
Council operations and dynamics. Two councilmembers will continue to be elected on an
at-large basis (for two year terms) and the other seven will be elected by district to fouryear
terms. Following the 2015 elections for all nine positions, five incumbent
councilmembers will return and four of the seats will be filled with new elected officials. 
Several issues of significant interest to the Port are expected within the first couple of
months of the year, including consideration of Mayor Ed Murray's recommendation to
vacate Occidental Avenue to accommodate the development of Investor Chris Hansen's
proposed arena, the Seattle 2035 Comprehensive Plan and amendments to the
Environmentally Critical Areas Code. We expect to be heavily engaged on these items
both on behalf of the Port of Seattle and NWSA. 
Much of regional work in 2016 will be focused on refreshing the Port's relationship with
the City of Seattle and integrating NWSA strategic priorities into our ongoing work. The
tangible elements of this work are already underway at the staff level. 
The City is expected to review key permits relating to redevelopment projects at Pier 66
and Terminal 5. As their permitting department will undergo a significant reorganization
on January 1, it will be important to be vigilant about the progress of these permits to
ensure that they are not negatively impacted by the bureaucratic shuffle.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
November 25, 2015 
Page 8 of 10 
Suburban Mayor Outreach 
In support of the Port's priority of economic development opportunities and the expanded
view of how the region is defined, we will complete initial meetings with the 39 suburban
mayors and develop those learnings into comprehensive and strategic goals moving
forward. 
The meetings completed in 2015 proved the differing needs among various King County
municipalities  it will be important to translate those contrasts appropriately into our
regional work. This will be particularly critical in city outreach related to the Sustainable
Airport Master Plan. Understandably, the priorities of immediate surrounding airport
cities will differ from those elsewhere in the county. 

ONGOING REGIONAL GOVERNMENT PRIORITIES FOR 2016 
Heavy Haul Network: With the passage of the Heavy Haul Network legislation
in 2015, the successful implementation of the network will be an important
priority. Establishing the permitting process and coordinating the set-up of the
study will be key first steps. For other ongoing transportation priorities, please see
the next section. 
SoDo Arena Proposal: As the City of Seattle continues to move through the
process towards developing an arena in SoDo, we will continue our efforts in
coordination with other stakeholders to educate elected officials and others as to
the negative impacts on the maritime and industrial sectors. Should the SoDo
Arena proposal gain additional approvals, we will focus on the best means to
minimize any impacts to Port operations. Following Mayor Murray's late
November recommendation to vacate Occidental Avenue, we will focus our
efforts around that matter specifically for the remaining weeks of the year and
early into next. 
Tribal Relations: We hope to reach agreement with both tribes on establishing an
updated framework in conducting our government-to-government relationship. In
addition, we intend on implementing regular meetings among tribal and port
leadership. 
Alaska-Puget Sound Relations: After a successful advance delegation trip to
Anchorage this fall, we will work with our partners to plan a productive Alaska-
Puget Sound leadership summit next spring. Issues will span all levels of
government, thus we will coordinate accordingly.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
November 25, 2015 
Page 9 of 10 
REGIONAL TRANSPORTATION 
2015 TRANSPORTATION OVERVIEW 
Government Relations staff worked closely with our partners to implement our 2015
transportation agenda. Successes within the City of Seattle included City Council
adoption of the Heavy Haul Network, restart of the Lander Street Overpass project,
development of the Freight Access Project and embarking on the City's first Freight
Master Plan. Meanwhile, the Port also commented in a number of city forums and
processes against the proposed SoDo Arena and the inherent vacation of Occidental
Avenue. Related to the Arena MOU among the city, county and arena proponents, staff
participated on advisory committees for industrial land regulations and stadium area
vitality. We partnered where appropriate with the Seattle Chamber, the Manufacturing
Industrial Council and others. 
The Port also made a first payment to the Alaskan Way Viaduct Replacement Program
(AWVRP) of $120 million. The State's contractor started the year with the tunnel boring 
process, and when progress stalled and the machine repair was necessary, the Port
continued working with the State and City of Seattle on related parts of the program,
including Mercer Corridor, and the north and south portals. Related to AWVRP, the City
continued work with Port engagement and advocacy for freight interests regarding
Seawall construction and the design and environmental review of the Waterfront Seattle
project.
At a regional level, the Puget Sound Regional Council (PSRC) completed an Industrial
Lands study for central Puget Sound. Sound Transit and Metro Transit both continued
their long range plans, for which the Port advocated for access to our facilities and
regional transportation, especially in support of freight mobility. The Transportation
Futures Task Force met during the year to develop a recommendation for regional
funding for transportation investments. 
The Commission authorized a phase 2 contribution to continue the Great Northern
Corridor Coalition to identify improvements and projects on the rail route to the U. S. 
Midwest. The Port also completed construction of the North Argo Access roadway. The
Sustainable Airport Master Plan includes an interagency Transportation Review
Committee addressing long-term airport access strategies and improvements. 
Further descriptions of federal and state legislative funding successes are detailed in the
sections above, especially including work toward the Highway Trust Fund
reauthorization and the new Connecting Washington new state transportation package.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
November 25, 2015 
Page 10 of 10 
ONGOING REGIONAL TRANSPORTATION PRIORITIES FOR 2016 
Many of the past year's projects with continue into 2016. Our highest priorities will
include the following. 
Ensure the City completes the Freight Master Plan and Seattle 2035
comprehensive plan updates to enhance Port operations. 
Support implementation of the Levy to Move Seattle which seeded several pots of
funding for a number of freight improvements. However additional funding must
be generated as well to complete the funding packages: 
o  Freight spot improvement program  (funds to address individual trouble
spots, provides match for FMSIB grant also) 
o  East Marginal Way corridor 
o  S. Lander St Overpass 
o  Other Duwamish projects, such a 1st and 4th Avenue South bridges over Argo
Yard 
Support the completion of boring of the SR99 tunnel under Seattle, and move into
tunnel road construction in 2017. 
Advocate Port interests in completing the Central Seawall and designing
Waterfront Seattle surface road and other improvements. 
Support fair implementation of new regional funding concepts. 
Engage with Sound Transit to develop a beneficial "Sound Transit 3" package for
port facility access and enhanced regional and freight mobility. 
Update the SR509 project environmental and design efforts under State
leadership. 
Advance partnerships for the Great Northern Corridor Coalition and the FAST
Corridor (specifically the South 228th Street overpass in Kent). 
ATTACHMENTS TO THIS BRIEFING 
None 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
December 9, 2014  Item 7a 
January 7, 2014  Item 7a