PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA                      Item No.         4c 
ACTION ITEM 
Date of Meeting        July 22, 2014 
DATE:     July 14, 2014 
TO:        Tay Yoshitani, Chief Executive Officer 
FROM:    Janice Gedlund, Seaport Air Quality Program Manager 
SUBJECT:  Supplemental Congestion Mitigation and Air Quality Grant for Clean Truck
Program 
Amount of This Request:             $763,000    Source of Funds:            Congestion
Mitigation and Air
Est. Total Project Cost:              $7,098,000 
Quality Grant and
Seaport General Fund 
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 supplemental Congestion Mitigation and Air
Quality (CMAQ) grant; and (2) increase the authorized amount for the Clean Truck Program
truck scrapping project by $763,000 for a revised total of $7,098,000. Of the additional
$763,000, the supplemental CMAQ grant will provide $638,000 and the Port will contribute
$125,000. 
SYNOPSIS 
The Port applied for and has been offered an additional $638,000 of CMAQ grant funds from the
Puget Sound Regional Council through its 2014 Supplement Funding Action for U.S. Federal
Highway  Administration  (FHWA)  grant  dollars.  This  request  adds  $763,000  to  the
Commission's previous authorization ($638,000 in CMAQ funds and $125,000 in Port funds). 
CMAQ funds come from the FHWA and are administered by the Washington State Department
of Transportation (WSDOT). Eligible expenses are reimbursed at a rate of 86.5%, and will cap
at $638,000. The Port's match of 13.5% will be $100,000, and the Port will contribute an
additional $25,000 in costs not eligible for grant reimbursement. Port funds will be requested in
the 2015 Seaport non-operating budget. 
This additional funding would be used for a second phase of the Port's current CMAQ-funded
truck scrapping and replacement project, by providing incentives for 19 additional drayage truck
replacements in 2015. This new project would require replacement trucks to have a 2010 or
newer engine or EPA-certified emission reduction retrofits to render the equivalent of the
emission standards of a 2010 model-year truck, and would provide incentives of up to 50% of

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
July 14, 2014 
Page 2 of 9 
the replacement cost, capped at $30,000/truck. This aligns with the requirements of the recently
awarded EPA Diesel Emission Reduction Grant. The CMAQ supplemental grant will raise the
total number of trucks able to be replaced or retrofitted under the program to 239.
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 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 by January 1, 2018.  Model year 2007
engines are ten times cleaner than pre-2007 engines.
Port staff estimates that there are about 1,000 trucks calling frequently (200 times/year) at
container terminals. About 10% of these frequently calling 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. 
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 a Port match of
$25,000. 
On May 15, 2014, a port trucker meeting was held to launch the ScRAPS 2 program, and the
ScRAPS 2 Office at Terminal 5 opened to applicants on May 27, 2014. The ScRAPS 2 office is
staffed by the Puget Sound Clean Air Agency under an interlocal agreement with the Port. As of
mid-June, almost 180 applications had been received (the amount of slots available at that time)
and a waiting list had been created.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
July 14, 2014 
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 DERA
project will provide resources to scrap and replace 40 additional trucks to those meeting 2010
emission standards, Incentive levels will be set at 50% of the purchase price of the replacement
price, capped at $30,000/truck.
PROJECT JUSTIFICATION AND DETAILS 
Authorization of this request will leverage $125,000 in Port funding with $638,000 in federal
grant funds to augment the existing ScRAPS 2 program, bringing the total program cost to
$7,098,000, mostly funded with federal and state grants.  The supplemental CMAQ grant will
provide funding for an additional 19 trucks bringing the total number of trucks to be replaced or
upgraded to 239. 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 19 additional older, polluting trucks serving Port marine terminals
with trucks meeting model year 2010 emission standards or equivalent by December
31, 2015. This is in addition to previous funding approval to upgrade 220 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 equivalent to the emission standards of a 2007 model-year truck, for at least 180 trucks
(160 funded trucks by the CMAQ grant and 20 trucks by the state grant) serving Port of Seattle
marine terminals, and to scrap and replace at least 40 trucks (funded by the DERA 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 life-span (having lower
miles) and reduced maintenance requirements. 
The CMAQ supplemental grant will add 19 incentives of up to $30,000 each for truck
replacements or upgrades to meet the model-year 2010 emission standards. To accomplish this,
the Port will amend its interlocal agreement with Puget Sound Clean Air Agency that is staffing 
the ScRAPS 2 resource center for the trucking community, to process the additional CMAQ-
related applications for participation in the truck incentive program, and issue the additional
incentives.  If needed, the Port will also amend its contract with a third party to audit the truckscrapping
program to ensure that the DERA grant obligations are met.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
July 14, 2014 
Page 4 of 9 
Schedule 
Start               Finish 
Execute Local Agency Agreement with WSDOT    July 2014         August 2014 
Program design & contracting                      August 2014       October 2014 
Obtain Buy America waiver from FHWA          September 2014   March 2015 
Program implementation (offer & issue incentives)  March 2015        October 2015 
Closeout                                           November 2015    December 2015 
FINANCIAL IMPLICATIONS 
Budget/Authorization Summary                   Capital        Expense    Total Project 
Previous Authorizations (U00079 and U00134)                $0       $6,335,000       $6,335,000 
Current request for authorization                                $0          $763,000          $763,000 
Total Authorizations, including this request                      $0        $7,098,000        $7,098,000 
Remaining budget to be authorized                    $0               $0               $0 
Total Estimated Project Cost                                   $0       $7,098,000       $7,098,000 
Project cost breakdown 
Ineligible    Total Port
Grant        Project       Total Cost   Eligible Grant  Port Match 
Costs        Costs 
Puget Sound
Regional Clean
CMAQ                 $4,202,000     $3,535,000    $552,000   $115,000    $667,000 
Truck Program
(160 trucks) 
Puget Sound
Ecology
Regional Clean
Clean                          $525,000        $500,000           $0     $25,000       $25,000 
Truck Program 
Diesel 
(20 trucks) 
Port of Seattle
Drayage Truck
DERA    Replacement       $1,608,000      $1,200,000          $0   $408,000     $408,000 
Project (40
trucks) 
Puget Sound
CMAQ   Regional Clean
Supple-    Truck Program        $763,000         $638,000      $100,000     $25,000      $125,000 
mental     Phase 2 (19
trucks) 
TOTAL                 $7,098,000     $5,873,000    $652,000   $573,000   $1,225,000

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
July 14, 2014 
Page 5 of 9 
Budget Status and Source of Funds 
The project funds relating to the CMAQ and the Ecology Clean Diesel grants were included in
the Port's 2014 Operating Budget and in the 2015 forecast used to develop the Plan of Finance.
The 2014 budget includes $3,117,000 in non-operating funds to support the Clean Truck
component of the Northwest Ports Clean Air Initiatives.
The project funds relating to the supplemental CMAQ grant were not included in the 2014
budget, but due to timing delays related to the other two grants, the amounts included in the 2014
budget are expected to cover all 2014 spending. Most of the costs will be incurred in 2015. 
The remaining balance of the Port investment will be requested in the Seaport 2015 budget. All
costs to be covered by the Port will be funded out of the Seaport Division's Non-Operating
General Fund. 
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 are reported as non-operating grant
revenue and the related project costs are reported as nonoperating
expense in 2014 and 2015. 
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. M odel 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.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
July 14, 2014 
Page 6 of 9 
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'sGreen 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.  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. 
Community Benefits 
The project helps to clean the environment and protect public health by reducing diesel exhaust
emissions from 239 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 239 trucks is valued at approximately $3.9 million per
year (based on USEPA's Diesel Emission Quantifier Health Benefits Methodology). 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1)  Do not expand the project to offer a clean truck ScRAPS 2 incentive program to
19  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 19 additional trucks using only Port
funds.  This would require significantly more Port dollars.  This is not the recommended
alternative. 
Alternative 3)  Accept the supplemental CMAQ grant and augment the existing clean truck
ScRAPS 2 incentive to provide incentives to an additional 19 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 
Project description approved by Puget Sound Regional Council 
Draft Washington State Department of Transportation Local Agency Agreement

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
July 14, 2014 
Page 7 of 9 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
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. 
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 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

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
July 14, 2014 
Page 8 of 9 
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. 
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 theimplementation 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.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
July 14, 2014 
Page 9 of 9 
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 present 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.