PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA 
Item No.         6e 
Date of Meeting      June 8, 2010 
DATE:    May 17, 2010 
TO:      Tay Yoshitani, Chief Executive Officer 
FROM:    Phil Lutes, Deputy Seaport Director 
Stephanie Jones Stebbins, Senior Manager, Seaport Environmental Programs 
Ellen Watson, Environmental Management Specialist II 
SUBJECT:  Request for the Port of Seattle Commission to authorize $541,500 in additional funding
for budget year 2010 for the At-Berth Clean Fuels Vessel Incentive Program (ABC
Fuels). 
AMOUNT OF THIS REQUEST: $541,500          SOURCE of FUNDS: General Fund 
ACTION REQUESTED: 
Request the Port Commission to supplement the value of the At-Berth Clean (Fuels Vessel Incentive
Program (ABC Fuels) by $541,500 for a total 2010 annual Program budget of $841,500. Within the
$541,500, $135,500 represents funds that were originally approved in 2009, but were not used until 2010. 
BACKGROUND: 
The At-Berth Clean Fuels Vessel Incentive Program (ABC Fuels) was initiated in January 2009 in
collaboration with the Puget Sound Clean Air Agency (PSCAA), as an effort to reduce sulfur emissions
as part of the Port's participation in the Northwest Ports Clean Air Strategy. The ABC Fuels Program is
an incentive for carriers to use ultra low sulfur diesel with a maximum of 0.5% sulfur in their auxiliary
engines while at berth. With the establishment of the North American Emission Control Area (ECA)
under the International Maritime Organization MARPOL Annex VI, ABC Fuels will serve as a bridge to
the ECA requirements that will begin in 2012. The intent is for the incentive to pay 50% of the cost
differential to use the cleaner, more expensive 0.5% (or less) sulfur fuels.
In April 2009, the Commission approved transfer of $2.3 million in Port funding over the 2009 and 2010
budget years to the PSCAA in support of maritime emission reduction projects. The PSCAA earmarked
$500,000 of these funds for implementation of the At-Berth Clean Fuels Program, and accordingly, 
provide the incentive payouts to the participating carriers. 
In 2009, the ABC Fuels Program incentive was $1,500 payout per qualifying vessel (approximately 50%
cost share). In order to participate, a carrier had to be a "frequent caller" with five or more visits to the
Port in a calendar year. In 2009, participants included six container lines and two cruise lines: APL,
COSCO, Hamburg Sud, Hapag-Lloyd, Maersk, Matson, Norwegian Cruise Line and Princess Cruises.
In the first year, the Port had 238 qualifying visits and $357,000 was paid out as incentives. The

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
May 17, 2010 
Page 2 of 3 

estimated total sulfur reduction from 2009 ABC Program participation was 68 metric tons. In addition,
we had an estimated 3.4 MT reduction in particulate matter due to the switch in fuels at berth. 
Due to changes in vessel operations resulting from the economic downturn, primarily increased time at
berth, as well as higher fuel costs, during the annual program review, it was recommended that the
incentive be increased. Beginning in 2010, the incentive was increased to $2,250 per call. This higher
incentive has led to a significant increase in participation. Currently, seven container lines and two
cruise lines are participating in the program: APL, COSCO, Evergreen, Hamburg Sud, Hapag -Lloyd,
Maersk, Matson, Norwegian and Princess. In f irst quarter 2010, 82 qualifying visits were made, a threefold
increase year to date, resulting in $184,500 in incentives and a reduction of 22 metric tons of sulfur.
Based on current participation, staff estimates that ABC Fuels will reduce 100 metric tons of sulfur
emissions in 2010. 
FINANCIAL IMPLICATIONS 
ABC Fuels Program Actual/Estimated Cost Since Inception 
Incentives and Admin Costs Paid Out in 2009 ($500,000 included in          $364,500 
2009 Budget) 
Incentives Paid Out Q1 2010                                  $184,500 
Estimated 2010 Annual Admin and Audit Costs                       54,000 
Incentives  Estimated Payouts Q2-Q4 2010                        $603,000 
Total Estimated Cost 2009-2010                              $1,206,000 
2010 Budget/Authorization Summary 
Amount authorized as part of the 2010 Budget                       $300,000 
Current request for authorization *                                $541,500 
Total 2010 Authorizations, including this request                       $841,500 
Note:* Of current request amount of $541,500, $135,500 represents funds that were originally approved in
2009, but were not used until 2010. 
Source of Funds 
The 2010 Seaport Operating Budget included $300,000 as a Non-Operating Public Expense for the
2010 ABC Fuels Program. The additional $541,500 requested to fund the Program for the remainder
of the 2010 will create an unfavorable variance in Non-Operating Expenses of $541,500. Because this
expenditure is a Non-Operating item, it will not impact reported Net Operating Income, but it does
represent a cash outflow of $541,500 more than what was budgeted in 2010.
The ABC Fuels Program is currently being funded from the general fund.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
May 17, 2010 
Page 3 of 3 

PREVIOUS COMMISSION REVIEW: 
On December 2, 2008, the Commission was briefed on the At-Berth Clean Fuels Vessel Incentive
Program. 
On April 14, 2009, the Commission approved transfer of $2.3 million in Port funding over the 2009 and
2010 budget years to Puget Sound Clean Air Agency in support of maritime emission reduction projects. 
On June 23, 2009, the Commission was briefed on the 2008 Implementation Report for the Northwest
Ports Clean Air Strategy, which included an overview of the ABC Fuels program. 
On January 12, 2010 the Commission was briefed on the overall Seaport Air Quality Program, which
included 2009 ABC Fuels program metrics.