PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      4e 
ACTION ITEM 
Date of Meeting      June 24, 2014 
DATE:    May 29, 2014 
TO:      Tay Yoshitani, Chief Executive Officer 
FROM:    Janice Gedlund, Seaport Air Quality Program Manager 
SUBJECT:  Interlocal Agreement No. 2015007-0 between Port of Seattle and the Puget Sound
Clean Air Agency relating to the Northwest Ports Clean Air Strategy 

Amount of This Request:    $269,000 
Source of Funds:    Seaport General Fund 
Est. Total Project Cost:     $269,000 
ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer to (1) enter into an agreement
with Puget Sound Clean Air Agency ("Agency") to complete the "Feasibility Analysis for
Upgrading Drayage Truck Engines" ("Feasibility Analysis") and (2) to expend $269,000 to
complete the Feasibility Analysis.
SYNOPSIS 
The Port of Seattle and the Agency have a long history of collaborative partnerships to quantify,
understand, and reduce air emissions from Port-related operations.  Examples of these
partnerships include the 2005 and 2011 Puget Sound Maritime Air Emissions Inventories, the
Northwest Ports Clean Air Strategy, the At-Berth Clean Fuels Vessel Incentive Program,
numerous projects to retrofit and replace cargo-handling equipment at the port's container
terminals, and the first and second Scrappage and Replacement for Air in Puget Sound
(ScRAPS) drayage truck upgrade programs. 
Several of these air quality projects were implemented via an interlocal agreement with the
Agency (Agreement No. 20090046-8) which was executed in 2009 and expires June 30, 2014. 
Under the current agreement, the Agency has expended approximately $4,467,000 of the total
authorized amount of $5,216,250 from 2009 to date. The only remaining work that the Agency
is performing on the Port's behalf is to complete the Feasibility Analysis, including a pilot
project, to convert diesel-powered drayage trucks to run on compressed natural gas.  The
proposed interlocal agreement will replace the 5 year-old Interlocal Agreement No. 20090046-8
with the Agency that expires on June 30, 2014. The new interlocal agreement would allow the
Agency to complete the on-going Feasibility Analysis no later than June 31, 2015.This work 
started in 2012 and is expected to be completed in early 2015. The original estimated costs to
complete the work was $357,000 under the original interlocal agreement, and $87,000 have been

Template revised May 30, 2013.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
May 29, 2015 
Page 2 of 7 
expended under that agreement, leaving an estimated balance of $269,000 as the not-to-exceed
value of the proposed new interlocal agreement. No new funding is associated with this request. 
BACKGROUND 
In January 2008, the Port of Seattle Commission adopted the Northwest Ports Clean Air Strategy
("Strategy"), a voluntary and collaborative effort of the Ports of Seattle, Tacoma and Vancouver
(B.C.) to reduce maritime and Port-related emissions that affect air quality and climate change in
the Pacific Northwest.  Developed in close collaboration with the Puget Sound Clean Air
Agency, Washington Department of Ecology, US Environmental Protection Agency, and
Environment Canada with input from stakeholders, customers and citizens, the Strategy has
resulted in emission reductions to improve air quality throughout the region. On December 10,
2013, the Port of Seattle Commission adopted an update to the Strategy. The updated Strategy
established additional reduction goals for diesel particulate matter and greenhouse gases; revised
2015 performance targets; and established 2020 performance targets for ocean-going vessels,
cargo-handling equipment, trucks, locomotives, harbor vessels and port administration. The
updated Strategy also included a commitment to conduct pilot and demonstration projects to
advance emission-reduction technologies and practices.
PROJECT JUSTIFICATION AND DETAILS 
A new interlocal agreement is necessary to complete work that is underway, since the current
agreement was executed in 2009 and can no longer be extended. This request will not require
any additional funding.  Additionally, authorization will help the Port implement the truck
targets and pilot testing commitments of the Northwest Ports Clean Air Strategy.
Project Objectives 
Complete the feasibility analysis for upgrading drayage truck engines that is already
underway. 
Support the Port's Clean Truck Program, by analyzing a new technology that may
ultimately offer a cost-effective alternative to replacing older diesel-powered trucks
with newer diesel-powered trucks. 
Fulfill the Port's annual commitment to participate in pilot projects per the Northwest
Ports Clean Air Strategy. 
Scope of Work 
Execute new interlocal agreement with Agency. 
Agency to complete feasibility analysis for upgrading drayage truck engines; including
overseeing contractor completion of compressed natural gas conversion kit, emission
testing of kit, pilot testing of converted engines in 4 drayage trucks operating at the Port
for 4-6 months, providing quarterly status reports and preparation of a final report.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
May 29, 2015 
Page 3 of 7 
Schedule 
Under prior agreement with the Port, the Agency solicited proposals from qualified vendors to
pilot alternatively fueled retrofits to diesel-powered drayage trucks. The Agency entered into
contract with Omnitek Engineering Inc. on September 30, 2013.  Completion of a compressed
natural gas conversion kit and emission testing is scheduled for July 2014. Demonstration of
trucks is scheduled for August 2014  January 2015. A final report is expected in February
2015. 
FINANCIAL IMPLICATIONS 

Budget/Authorization Summary              Capital     Expense   Total Project 
Original Budget                            $0     $269,000     $269,000 
Previous Authorizations                       $0          $0          $0 
Current request for authorization                  $0      $269,000      $269,000 
Total Authorizations, including this request           $0      $269,000      $269,000 
Remaining budget to be authorized               $0          $0          $0 
Total Estimated Project Cost                    $0     $269,000     $269,000 
Budget Status and Source of Funds 
Funds to implement the proposed interlocal agreement with Puget Sound Clean Air Agency were
included in the Port's 2014 Non-Operating Budget. The specific project referenced was included
in the budget in the amount of $275,000 for 2014. 
The ILA and related projects will be funded by the Seaport 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             Project schedule could be delayed due project complexity 
Project cost for analysis        N/A 
Business Unit (BU)          Containers 
Effect on business performance  The ILA related project cost will be reported as nonoperating
expense in 2014 and 2015. 
IRR/NPV             N/A

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
May 29, 2015 
Page 4 of 7 
Lifecycle Cost and Savings 
Authorizing the new  interlocal agreement will allow the pilot project to be completed.
Completion of the project does not obligate the Port to expend any additional funds or incur any
additional expenses. . 
STRATEGIES AND OBJECTIVES 
Authorization of the new interlocal agreement 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 and greenhouse
gases. 
The Century Agenda strategy to position the Puget Sound region as a premier
international logistics hub. Implementation may lead to a greener supply chain for goods
movement. 
TRIPLE BOTTOM LINE 
Economic Development 
By executing the new interlocal agreement, a pilot project with the potential to reduce air
emissions will be completed.  The project may have a positive net economic benefit by
promoting cleaner technologies, "green" job opportunities, and energy efficiency. If the project
is successful it may result in a lower-cost alternative for drayage truck drivers to meet the
Strategy target for cleaner trucks, and may provide a more profitable business for drayage truck
owners. 
Environmental Responsibility 
The primary purpose of executing the new interlocal agreement is to complete a pilot project that 
helps implement the Northwest Ports Clean Air Strategy, which will ultimately protect public
health and the environment. 
Community Benefits 
By executing the new interlocal agreement, the pilot project will demonstrate the feasibility of
alternatively fueled vehicles that would reduce diesel emissions that pose a health risk to the
community.
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1)  No action  do not enter into a new interlocal agreement with the Agency. In
this case, the pilot project would not be completed; the Port would not fulfill previously made
commitments to the Agency or to the community regarding implementing the Northwest Ports
Clean Air Strategy. This is not the recommended alternative.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
May 29, 2015 
Page 5 of 7 
Alternative 2)  Authorize the new interlocal agreement per staff recommendation.  No
additional funds are needed to complete the pilot project as originally envisioned and approved
by the Port.  This is the recommended alternative. 
ATTACHMENTS TO THIS REQUEST 
Draft Interlocal Agreement No. 2015007-0 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
December 10, 2013  the Commission adopted the Northwest Ports Clean Air Strategy
2013 Update. 
December 3, 2013  the Commission was briefed on the Northwest Ports Clean Air
Strategy 2013 Update. 
June 25, 2013  the Commission was briefed on the draft 2013 update to the Northwest
Ports Clean Air Strategy. 
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
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.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
May 29, 2015 
Page 6 of 7 
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 the implementation 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. 
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.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
May 29, 2015 
Page 7 of 7 
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.