Item No. 6d supp
Date of Meeting November 11, 2008

Briefing on Truck ProgramBriefing on Truck Program
DevelopmentDevelopment

Briefing OverviewBriefing Overview
Background: The Data Background: The Data
Northwest Ports Clean Air Strategy Northwest Ports Clean Air Strategy
Stakeholder Outreach Stakeholder Outreach
Staff Program Analysis Staff Program Analysis
Next Steps and Schedule Next Steps and Schedule

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Puget Sound Region Air Toxics
Risk Apportionment



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Source: Puget Sound Clean Air Agency

Puget Sound Maritime Air
Emissions Inventory
2005 activity based
inventory
Spans ~140 miles
south-to-north; 160
miles west-to-east
Close coordination
Canada
First to include
greenhouse gases
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Diesel Particulate Matter
Puget Sound Clean Air Agency Region



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Source: 2005 Puget Sound Maritime Air Emissions Inventory

Diesel Particulate Matter
Port of Seattle



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Source: 2005 Puget Sound Maritime Air Emissions Inventory

Comparison of 2005 Puget Sound Clean
Air Agency Region Heavy-Duty
Vehicle Emissions, %
In the Puget Sound,
drayage operations
represent:
3% of all DPM
emissions from
heavy-duty trucking
3% of all heavy-duty
vehicle miles
traveled

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Source: 2005 Puget Sound Maritime Air Emissions Inventory

Drayage Fleet Age AnalysisDrayage Fleet Age Analysis
Updated in 2008Updated in 2008
Estimated drayage fleet size: 1,800 - 2,000Estimated drayage fleet size: 1,800 - 2,000
truckstrucks
Average model yearAverage model year
Port of Seattle drayage trucks: 1996 Port of Seattle drayage trucks: 1996
Statewide Class 8 heavy-duty vehicles: 1996 Statewide Class 8 heavy-duty vehicles: 1996
PSCAA region Class 8 heavy-duty vehicles: 1998 PSCAA region Class 8 heavy-duty vehicles: 1998
24% of known fleet are older than 199424% of known fleet are older than 1994
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Northwest Ports Clean AirNorthwest Ports Clean Air
StrategyStrategy
2010 performance measure for trucks: 2010 performance measure for trucks:
"Reach the equivalent PM emissions level of"Reach the equivalent PM emissions level of
1994 or newer heavy-duty truck engine model1994 or newer heavy-duty truck engine model
year"year"
2015 performance measure for trucks: 2015 performance measure for trucks:
"80% of trucks reach the equivalent PM"80% of trucks reach the equivalent PM
emissions level of 2007 or newer heavy-dutyemissions level of 2007 or newer heavy-duty
truck engine model year; 100% meet 2007 bytruck engine model year; 100% meet 2007 by
2017"2017"
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Current Staff FocusCurrent Staff Focus
Implement mandatory program beginning Implement mandatory program beginning
12/31/201012/31/2010
Financial assistance and incentives to Financial assistance and incentives to
encourage early adoptionencourage early adoption
Verification Verification

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Stakeholder OutreachStakeholder Outreach
South Harbor Truck Parking Work Group South Harbor Truck Parking Work Group
NW Ports Clean Air Strategy Truck Work NW Ports Clean Air Strategy Truck Work
GroupGroup
Clean Air Prosperity Partnership (CAPP) Clean Air Prosperity Partnership (CAPP)
Supply chain work group to support cleaner Supply chain work group to support cleaner
trucks and increased efficiencies in the entiretrucks and increased efficiencies in the entire
container drayage systemcontainer drayage system
Seaport Air Quality Program Advisory Seaport Air Quality Program Advisory
Group newGroup new
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Seaport Air Quality ProgramSeaport Air Quality Program
Advisory GroupAdvisory Group
Purpose: Purpose:
To provide input on truck program To provide input on truck program
implementation optionsimplementation options
2-3 representatives from: 2-3 representatives from:
Trucking Trucking          Regulatory Agencies Regulatory Agencies
Terminal Operators Terminal Operators   Community Community
Shippers Shippers          OrganizationsOrganizations
Shipping Lines Shipping Lines      Environmental Groups Environmental Groups
Labor Labor
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Data AnalysisData Analysis
Puget Sound Air Toxics Risk Puget Sound Air Toxics Risk
ApportionmentApportionment
Puget Sound Maritime Air Emissions Puget Sound Maritime Air Emissions
InventoryInventory
Drayage truck fleet age analysis Drayage truck fleet age analysis

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Staff Program AnalysisStaff Program Analysis
To DateTo Date
Internal and external stakeholder work Internal and external stakeholder work
groupsgroups
Evaluated a range of options for: Evaluated a range of options for:
Funding Funding
Financial Assistance Financial Assistance
Legal and Legislative Legal and Legislative

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Staff Identified PrioritiesStaff Identified Priorities
Focus on NW Ports Clean Air Strategy 2010Focus on NW Ports Clean Air Strategy 2010
performance measure for trucksperformance measure for trucks
Create a mandatory programCreate a mandatory program
Deliver cleaner air nowDeliver cleaner air now
Keep the plan simpleKeep the plan simple
Fee freeFee free
Advance business & environmental needsAdvance business & environmental needs
Work within the legal authorities of WA State and localWork within the legal authorities of WA State and local
governmentgovernment
Factor in the NW ports' market conditionsFactor in the NW ports' market conditions
Give the industry time to adjustGive the industry time to adjust
Incentives for early adoptionIncentives for early adoption                 15

Staff ProgramStaff Program
Analysis CriteriaAnalysis Criteria
Definition      Importance
Meets Strategy
10
Goals
(i.e. emission reductions)
No Cargo Diversion          9
Social Equity               6
Affordability (Port)            5
Minimizes Legal
4
Risk
Administrative              1
Simplicity
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Program AnalysisProgram Analysis
Funding OptionsFunding Options
State bonds with Port funding match State bonds with Port funding match
Use tax levy Use tax levy
Container fee Container fee
To be paid by beneficial cargo owner To be paid by beneficial cargo owner
Fee paid by terminal operators/carrier Fee paid by terminal operators/carrier
"Pay to pollute" "Pay to pollute"
Fee for non-compliant trucks Fee for non-compliant trucks
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Pros and ConsPros and Cons
Fees Paid by Industry                        State Bonds with Port
Use Tax Levy                         "Pay to Pollute"
(Container/Other)                          Funding Match
Pros     Increases ability to get       Costs and administrative      Fees paid for by offenders     Supports meeting Strategy
State/Federal grants            burden borne by industry       Good way to handle non-        goals
Immediate and direct        Reduces impacts to the        frequent callers            No cargo diversion, may
Simple to administer          Port's budget             Consistent with CARB        actually attract cargo
Reduces social justice                              Drayage Truck Rule         Wouldn't increase cost of
issues                                                                       doing business
No cargo diversion, may
actually attract cargo
Wouldn't increase cost of
doing business
Cons    Gift of public funds issue    Fee doesn't hit beneficial    Gift of public funds issue    Gift of public funds issue
Not consistent with          cargo owners or           Not really a financing        Administratively complex
Commission direction to        consumers, who are           mechanism
reduce tax levy              recipients of low cost          Administratively complex
Limits the Port's ability to      transportation             Doesn't support Port's
invest in other projects         Legal issues                 goal of being clean and
Container diversion          green
impact on revenue/jobs        Legal issues
Port does not have          Port does not have
authority to implement         authority to implement
Strains relationships with      Lease implications as a
those the Port has direct         result of cargo diversion
business agreements with       Potential social justice
issues
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Program AnalysisProgram Analysis
Financial Assistance OptionsFinancial Assistance Options
State bonds with Port funding match State bonds with Port funding match
Provide funding via restricted vouchers Provide funding via restricted vouchers
In partnership with PSCAA In partnership with PSCAA
Purchase brand new trucks Purchase brand new trucks
$0 in Port funding $0 in Port funding

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Pros and ConsPros and Cons
Provide Funding via   Purchase Brand New  State Bonds with Port
$0 in Port Funding
Restricted Vouchers       Trucks         Funding Match
Pros   Avoids gift of public    Supports meeting or     Guarantees meeting the    Supports meeting
funds issue            exceeding Strategy goals    2015 Strategy            Strategy goals
No financial benefits     Minimizes business       performance measure      Likely wouldn't increase
given to some drivers      interruption                                 cost of doing business and
over others            Guarantees that funds                           create cargo diversion
More legally defensible    will be spent for intended                      Minimizes impact to
purposes                                 drivers
Minimizes impact to                        Ability to address social
drivers                                      justice issues in a way
Ability to address social                         that works for our
justice issues in a way                            business model
that works for our
business model
Cons   May have social justice  Gift of public funds issue   Gift of public funds issue   Gift of public funds issue
implications          Difficult to track that      Very expensive          Administratively
Unlikely to meet       funds invested stay here    Not cost effective        complex
Strategy goals         Administratively         Supply of new trucks will
Would increase cost of    complex              not meet demand
doing business         Potential tax impacts for    One time answer
Likely diversion of      drivers               Administratively
cargo                                 complex
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Program AnalysisProgram Analysis
Legal & LegislativeLegal & Legislative
Overarching legal issues: Overarching legal issues:
Any state legislation still leaves certain federal Any state legislation still leaves certain federal
issues unaddressedissues unaddressed
Some of these issues are the subject of Some of these issues are the subject of
litigation involving the Ports of L.A. and Longlitigation involving the Ports of L.A. and Long
Beach in their truck programBeach in their truck program
The Port needs to proceed very carefully and The Port needs to proceed very carefully and
be prepared to modify the plan to comply withbe prepared to modify the plan to comply with
legal requirementslegal requirements
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Program AnalysisProgram Analysis
Legal & Legislative OptionsLegal & Legislative Options
Pursue State-wide heavy-duty vehicle rulePursue State-wide heavy-duty vehicle rule
PSCAA regulates trucksPSCAA regulates trucks
Pursue State authority for Ports to regulatePursue State authority for Ports to regulate
"Pay to Pollute" with eventual ban"Pay to Pollute" with eventual ban
Adopt Truck Licensing SystemAdopt Truck Licensing System
City of Seattle regulates trucksCity of Seattle regulates trucks
Ban non-compliant trucks at terminal gatesBan non-compliant trucks at terminal gates
Adopt employer-based modelAdopt employer-based model
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Pros and ConsPros and Cons
Pursue State Authority for
City of Seattle Regulates                                           Pursue State-Wide Heavy-
PSCAA Regulates Trucks      Port to Regulate
Trucks                                           Duty Vehicle Rule
Trucks
Pros     City is an inherent         PSCAA has authority to      Clarifies Port authority to      Greater benefit to air
regulator                   regulate general air quality       regulate                    quality and public health
City has more clear           in King, Kitsap, Pierce and     Creates an opportunity to      Creates a level playing
authority over matters          Snohomish Counties           develop a solution that fits        field
affecting public health and       Would address truck           our program                 Fewer equity issues
safety                     operations at Port of           Lessens risk of challenge
Tacoma               based on authority
Port's strong collaborative
relationship with PSCAA
Cons    City of Seattle regulation    PSCAA does not have      Could lose control of      Difficult to achieve
wouldn't address truck          authority to regulate           process and end up with         quickly
operations at Port of            mobile sources                something we don't want        Expect a lot of opposition
Tacoma              PSCAA would need to get     Creates regulatory inequity     Chance of passing is slim
City may have to go to         Legislative authority          between port drayage vs.       Potential conflict - Federal
Legislature for authority        Unintended consequences        non-port heavy duty trucks       vs. State
City would probably look       - Port may lose control of      Risk of social inequity for      Overarching legal issues
to Port for financial             outcome                     port drivers
assistance                  PSCAA would look to Port       Overarching legal issues
Unintended consequences       to provide financial
- Port may lose control of        assistance
outcome               Overarching legal issues
Overarching legal issues

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Pros and ConsPros and Cons
Ban Trucks at       "Pay to Pollute" with    Adopt Truck Licensing    Adopt Employer-Based
Terminal Gates         Eventual Ban           System              Model
Pros     Fewer players - Port and      Fees paid for by offenders     Ability to address social      Ability to address social
terminal operators            Good way to handle non-        justice issues                justice issues
Less administrative           frequent callers            Could allow              Greater long term
complexity               Consistent with CARB         grandfathering of            sustainability
Could move more quickly       Drayage Truck Rule          independent              Avoids gift of public funds
owner/operators             issue
Greater long term           Easier to achieve Strategy
sustainability                 goals
Easier to achieve Strategy      Ability to limit number of
goals                     concessions issued and
Ability to limit number         manage fleet size
issued to manage fleet size
Cons    Likely to cause delays in     Gift of public funds issue    Very administratively      Possible interference with
sending/receiving            Would increase cost of         complex                   National Labor Relations
containers                  doing business, but not         Port would need              Act
Unhappy customers and        likely to divert cargo          Legislative authority         Very administratively
truckers                   Doesn't meet the Port's         Overarching legal issues         complex
Potential anti-trust           goal of being clean and                             Port would need
considerations               green                                             Legislative authority
Could be seen as Port        Administratively complex                            Overarching legal issues
exceeding authority           Port would need
Terminals want "hold         Legislative authority
harmless" from Port         Overarching legal issues
Overarching legal issues
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Next Steps and ScheduleNext Steps and Schedule
November 2008November 2008
First meeting of Advisory Group First meeting of Advisory Group
December 2008December 2008
Second meeting of Advisory Group Second meeting of Advisory Group
January 2009January 2009
Third meeting of Advisory Group (if needed) Third meeting of Advisory Group (if needed)
1-2 briefings to Commission (as needed) 1-2 briefings to Commission (as needed)
Public comment period starts Public comment period starts
February/March 2009February/March 2009
Staff presents final recommendations to Commission Staff presents final recommendations to Commission
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