5a letter

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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-

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               Ms. Carrol Johnston
August 26, 2013
Page 2

funded project. There are well over 19 remaining truck owners that would benefit from Ecology
funding to provide additional truck upgrade incentives.

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

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                 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

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       COST ESTIMATE - Port of Seattle CMAQ-funded Puget Sound Regional Clean Truck Program

PROJECT BUDGET                Dollars       Percent                     Comments
grant request                              $        3,535,498            86.5%
PO S 13.5% match                        $         551,783            13.5%
Total Grant Project Cost  ~~ $        4,087,281             100%
Non-Eligible Costs    $          115,000
S$         4,202,281

PROJECT ADMINISTRATION         Dollars                                   Comments
Consultant Contract - program             $         652,281                      Program management including staffing trucker outreach center,
So      )
administrator                                                                     truck evaluations, replacement, retrofit, scrappage. 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. Assume 120 trucks @ $700/truck (some
scrapped                                                                    trucks may be retrofitted instead of scrapped.) Program
administrator to contract with scrapper.
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