8b Sustainable Aviation Fuel plan

Item No. 8b attach_1 
Meeting Date: July 24, 2018 
Port of Seattle 
Sustainable Aviation Fuel 
Strategic Plan 
Background 
Historically the Port of Seattle (Port) has been a leader in supporting research and development of
sustainable aviation fuels (SAF), as a founding member of Sustainable Aviation Fuels Northwest (SAFN).
With the support of regional partners, the Port shifted towards a market development role in 2015, and
began exploring what the Port could do to support SAF infrastructure development, and build demand
at Sea-Tac Airport. 
The Port demonstrated its leadership in market development with the release of two reports in 2016
and 2017. The first report was done in partnership with Alaska Airlines and Boeing, and evaluated how
best to integrate SAF into the airport's fueling infrastructure. The second report was done in
partnership with the Rocky Mountain Institute and SkyNRG, and explored innovative airport funding
mechanisms that could be used to help lower the incremental cost between SAF and conventional jet
fuel. The information contained in these studies sets the foundation to help the Port of Seattle take the
next step toward the goal of making SAF cost-effective and practical for airlines at Sea-Tac. 
In December 2017, a Motion was passed by the Port Commission that contained specific SAF goals, and
directed staff to develop a SAF Strategic Plan to meet those goals. Subsequent to the Motion, a 
Memorandum of Understanding (MOU) was executed in Q2 2018 between the Port and sixteen (16)
airlines/airlines groups operating at Sea-Tac Airport, formalizing a commitment between the parties to
work together to develop a separate MOU Committee-specific strategic plan to reach the Commission's
goal. 
The strategies outlined below identify where the Port or other partners may play a lead role in
implementation, and where the work of the MOU Committee intersects with the broader strategy of the
airport. Many of the actions and milestones within the strategies will become more detailed and
developed as research is completed and options are evaluated. 

State of the Industry 
Since 2009, ASTM has approved five alternative jet fuel production pathways.1 The five approved
alternative jet fuel types represent four different processes associated with various feedstock types:
Fischer-Tropsch Synthetic Paraffinic Kerosene (FT-SPK) which converts syngas (from biologic or

1
http://www.caafi.org/resources/faq.html

petrochemical sources) to jet fuel components; Hydroprocessed Esters and Fatty Acids (HEFA-SPK) from
plant and animal oils; Hydroprocessed Fermented Sugars to Synthetic Isoparaffins (HFS-SIP) made by
microbial conversion of sugars to hydrocarbons; FT-SPK with aromatics (FT-SPK/A) from various sources
of renewable biomass such as municipal solid waste, agricultural wastes and forest wastes, wood and
energy crops; and Alcohol-to-Jet Synthetic Paraffinic Kerosene (ATJ-SPK) derived from isobutanol from
multiple feedstocks. 
More than a dozen airlines have signed 'off-take' agreements (contractual obligation for SAF volume at a
specific price when it's produced) with producers, but only one of these agreements (United Airlines and
AltAir Fuels) has resulted in commercial-scale, regular production. 
To date (mid-2018), only one commercial SAF production facility exists in the world. This facility, owned
by AltAir Fuels in Paramount, California, is a retrofitted petroleum refinery that now makes renewable
diesel and renewable jet fuel from waste oils and animal tallow (HEFA-SPK pathway). While there have
been several SAF demonstration flights throughout the world over the past several years, the fuel for
the majority of these flights has come from 'batch' productions and not commercial-scale facilities. In
total, the present-day regular production of SAF worldwide is less than 4 million gallons per year,
compared with 20 billion gallons per year of petroleum jet fuel consumed in the U.S. alone. 
Some 'batch' scale but semi-regular production in the world comes from Total (headquartered in
France), who convert Brazilian sugarcane to jet fuel for some of Airbus' factory delivery flights from
Toulouse, France to the purchasing airline's home airport.
There are several reasons why the AltAir facility in California has reached commercial scale production,
while others have not. The presence of a shuttered refinery 16 miles from LAX helped reduce capital
costs and permitting obstacles. The policy environment for low carbon fuels (largely supported by
California's Low Carbon Fuel Standard, or LCFS) allowed the producers to capture financial benefits to
bring down the price of renewable diesel (an important co-product with HEFA-based SAF production) 
and SAF to a lesser extent, for end users. And finally, the availability of waste oils and feedstocks near a
large population center, combined with a proven fuel conversion technology, allowed the production
facility to succeed. While this is not an exhaustive list of the success factors of this facility, it highlights
the most critical elements, and those that are relevant to our challenges at SEA. 
It is the aim of this plan to describe specific strategies Sea-Tac Airport and the Port of Seattle can
implement to help create these same types of stable incentives, policies, feedstock availability,
partnerships, and research and development support to help additional commercial production scale
facilities come on-line. The strategies outlined in this SAF Strategic Plan reflect the most effective
policies and approaches found around the world (e.g. AltAir Fuels in California, Scandinavian airports)
that have helped build or support a SAF market. Specifically, these strategies are designed to work
together to support an aggregated market signal and facilitate the development of a local SAF supply
chain.

1.0 Goals 
The goals outlined by the Commission in their December 2017 Motion are as follows: 
By 2028, 10 percent of jet fuel available at Sea-Tac will be produced locally from sustainable
sources. 
By 2035, 25 percent of jet fuel available at Sea-Tac will be produced locally from sustainable
sources. 
By 2050, the maximum blend currently approved for jet fuel will be produced locally from
sustainable sources. 
Currently, Sea-Tac Airport dispenses approximately 600 million gallons of jet fuel per year, and this
amount is likely to grow to between 700 and 800 million gallons in the next decade. To put these goals
in context, the 2028 goal is equivalent to approximately 75 million gallons of 'neat' or pure biojet fuel, or
about fifteen to twenty times (15-20x) the current total world-wide production volume.
This volume would require at least two (2) new or co-located dedicated biofuel refineries to meet the
goal. Given the pace of permitting, securing feedstock, securing capital, etc., this is considered an
ambitious target, particularly if the fuel is to be produced locally. 
To achieve these goals, the Port will implement four key strategies, as described in detail below. 

2.0 Strategies 
1.   Create an airline-airport cooperative model to aggregate demand and address infrastructure
needs 
2.   Develop and/or support specific local, state and federal policies that incentivize SAF use and instate
production 
3.   Obtain FAA support (approval) to use airport funds and/or grants toward SAF co-benefits 
4.   Enhance awareness of, and support for SAF use 
These strategies are described in detail below. 

2.1 Airline-Airport Cooperative Model 
Purpose: 
The incremental cost between SAF and petroleum Jet A is the most significant barrier to market growth
and development. Estimates of SAF incremental cost do not typically include the costs to build and
integrate a local supply chain and fueling infrastructure, which can be substantial. Airports in Europe

have helped send a SAF market signal by bringing these costs down through participation in partnership
funds among airlines, governments, corporations, etc. A cooperative model is an agreement among an
airport, airlines, and possibly other parties to aggregate funds and/or demand to send a SAF market
signal. 
Context: 
While several airlines have signed "off-take" agreements (contractual obligation for SAF volume at a
specific price when it's produced) with producers, airports in the U.S. can't play a role in direct fuel
purchases or off-take agreements. Instead, airports must look for other ways to promote cost-effective
access to SAF. 
Some airports in Europe have turned to cooperative, or 'partnership' funding models. These partnership
funds typically aggregate contributions from the airport, government, airlines, and corporations. For
example, at Oslo Airport, such a collaborative fund has purchased ~ 150,000 gallons per year of neat
biofuel in batches since 2016. SkyNRG, who partnered on the innovative funding study for Sea-Tac, has
also helped create a Fly Green Fund for airports in Sweden. In this model, airlines such as SAS and KLM
pay for the administrative costs of the fund so that contributions from corporate and individual flyers 
can be allocated to the premium cost for SAF and support local production projects. 
This Strategic Plan defines 'cooperative model' broadly, to allow for stakeholder input in its
development. Sea-Tac seeks to work with airlines to develop a cooperative model or partnership fund
that meets the needs of all contributing partners (Port, airlines, corporations), provides equitable
benefits, offers transparency in its structure and governance, and provides cost-effective access to 
sustainable fuel. The Port expects to hire consultants with expertise in fund development who
understand the legal and accounting principles that would provide assurance to any fund contributors
that the funding structure meets their needs. 
This cooperative model is not intended to replace airlines' efforts to obtain SAF, but to aggregate
demand. This effort seeks to find a system that complements existing airline efforts and provides equal
access to benefits for all airlines whether they have a large or small presence at the airport. 
Like other fund models, the intention is to use the bulk of the commitments and funding for fuel, but
some percentage of funds could be allocated to local supply chain and infrastructure development.
However, it is critical to find or develop a model that works in the U.S. context, and might not be an
exact replica of European models. 
Key Milestones: 
2018: Explore airline-airport cooperative models or partnership funds from other regions
(Airline-Airport MOU Committee) 
2018-2019: Develop a "made by airlines for airlines" approach/partnership fund, and issue
Request for Proposals (RFP) for consultants to develop structure (Airline-Airport MOU
Committee) 
2020: Cooperative model operational (Port staff)

2021: Partner commitments finalized (All Partners) 
2021-23: Market signal leads to SAF production commitments 
2.2 Policy Support 
Purpose: 
The Port seeks to develop and/or support local, state, or federal policies that incentivize SAF use and instate
production facilities. Importantly, the Port seeks to find ways to create a level playing field with
California, such that policies in Washington create an economic equivalency with California's Low
Carbon Fuel Standard and Cap and Trade regulations. 
Context: 
Several regional, state, national, and international-level policies can influence SAF production and costcompetitiveness.
It is critical to the success of a Port strategy to understand all of these mechanisms and
determine which approach is likely to be most successful in: 
Developing a stable and reliable market for SAF production in WA state 
Reducing greenhouse gas emissions 
Harmonizing cost/incentive levels with those of California and/or Oregon 
Having the support of many Port-related businesses and industries 
Analysis conducted by Port staff and regional partners suggests that a Clean Fuel Standard (aka Low
Carbon Fuel Standard) similar in design to California's is the most likely to meet these criteria. Therefore
the milestones outlined for this strategy focus on harmonization with California's regulation. However,
additional incentives to attract production facilities to the region via tax incentives or other mechanisms
will also be pursued where possible. 
Key Milestones: 
2018: Build WA LCFS campaign with partners; Support tax incentives for in-state bio-
refineries/SAF facilities (Port Commission & Staff) 
2019: Support WA LCFS (with opt-in for SAF) if carbon pricing mechanism not passed in 2018;
Identify production barriers and recommend further state legislative actions (Port Commission
& Staff) 
2020: Continued support for carbon pricing mechanisms equivalent to California 
2.3 Approval for SAF Co-benefits Expenditures 
Purpose: 
Airports routinely use their revenues and are granted federal funds to support projects that reduce air
pollution.  Similarly, airports could use federal grants or airport revenue to pay for the "co-benefits" of
SAF to help reduce the incremental cost in a way that is consistent with current federal policy. This

approach has not yet been approved by FAA. Research being conducted by FAA's Aviation Sustainability
Center (ASCENT) and other research teams has demonstrated air pollutant reductions when SAF is used.
Sea-Tac Airport aims to quantify these benefits in a manner that is consistent with other air pollution
reduction investments, and obtain FAA approval to use airport revenue and/or federal grants towards
this benefit. 
Context: 
Airports cannot directly pay for aircraft fuel. Among other restrictions, public dollars cannot fund a
commodity used by a for-profit private firm. However, airports can purchase services that support
airport performance goals such as cleanliness (custodial contracts) or clean energy (renewable energy
certificates). Besides offering lower life-cycle carbon emissions, SAF usage lowers direct emissions of air
pollutants (such as sulfur and particulate matter) and supports regional economic development through
locally sited supply-chain elements. We term these environmental and social benefits as 'co-benefits.' 
An airport could theoretically purchase these co-benefits in the same way that vendors provide services
without a transfer of physical ownership. Additionally, airports are already in the business of providing
services that offer air quality benefits and cost savings to airlines in the form of pre-conditioned air at
the gate, or infrastructure to plug in electric ground support equipment. In order to qualify spending on
co-benefits, robust science quantifying these co-benefits, and agreement by FAA, who regulate airportqualified
spending, must be established. 
Key Milestones: 
2018: Identify specific particulate matter (PM) and sulfur emission reduction co-benefit values
and present to FAA (Port Staff) 
2019: Work with FAA (with support from research teams) to gain approval to use airport
revenue and/or VALE grants toward SAF co-benefits (Port Commission & Staff) 
2020: Sea-Tac Airport contributes revenue to Partnership Fund (Port Commission) 

2.4 Education & Advocacy 
Purpose: 
Public perception regarding new production facilities in WA is considered by SAF producers to be a
barrier equal in magnitude to the imbalance of carbon policies between WA and CA. There are also
many misconceptions about the volume of SAF currently in production, as well as the benefits they
provide. A robust education and advocacy approach to audiences critical to SAF acceptance is necessary
to increase local production.

Context: 
Due to the low production and use of SAF, it is assumed general awareness of the fuel, policies,
technical research, and airline adoption of SAF is relatively low. Given the complexity of developing local
production facilities, an education and advocacy campaign is needed across several audiences to gain
support for SAF facilities, partnership funds, or policies cited in this strategic plan. These campaigns will
focus on key messages to build understanding in the following categories: 
General Public: 
Basics of SAF and its benefits 
Production facility size/scale and impacts to community 
Policies needed to increase SAF use 
Politicians: 
Basics of SAF and its benefits 
Impact of air travel on climate and air quality 
Policies needed to increase SAF use and create jobs 
Businesses: 
Impact of business travel on climate and air quality 
Policies needed to increase SAF use and create jobs 
Benefits of SAF to business interests and sustainability reporting 

Key Milestones: 
2018: Develop specific messaging for policy maker, businesses, and general public/airport
community audiences and complete the "SAF 101" slide deck in partnership with Public Affairs;
For specific policy outreach, see Strategy 2.3 (Port staff) 
2019: Identify key audiences, and opportunities to present SAF 101 information (Port staff) 
2020: Continue to identify audiences and outreach opportunities (Port staff)

3.0 SAF Strategic Plan Timeline 
The timeline below shows the schedule for each strategy and related milestones identified in Section 2.0. 
2018                                                2019 
Strategy                                                                                                                               2020          2021          2022          2023 
Q1           Q2           Q3           Q4           Q1           Q2         Q3        Q4 
Airline-Airport                         Sign MOU         Evaluate other      Issue RFP to       Develop model/fund structure;       Select 3rd party operator for    Model/fund       Longer-term      Producer        Producer
cooperative        develop          Outline of model/fund structure to    model/fund                  operational.       commitment to    identifies        continues to
Cooperative Model 
models in Europe    cooperative       Commission for approval                                        Signed           develop SAF       location and      pursue funding
and assess options   model structure                                                                commitments      facility in-state     seeks capital      and location
for SEA                                                                                         send market                                       options 
signal to
producers 
State Policy           Present to House                    Monitor & support legislation that       Support LCFS approach; Industry
Transportation                       provides equivalent or better           Day in Olympia 
Support 
Committee;                         incentives for SAF than neighboring
support any                         jurisdictions (California in particular) 
carbon legislation
that provides SAF
incentives 
Federal Policy                                                                       Meet with FAA   Seek FAA                                 Receive FAA
and present      approval to use                               approval to use
Support 
white paper of    airport revenue                               airport revenue
co-benefits       toward co-                                   for SAF cobenefits
benefits 
SAF Co-benefit       Literature review    Begin development of SAF pollutant                              Review and                                                         Adjust co-benefit
reduction co-benefits white paper       finalize co-                                                                    values as new
Quantification 
benefits white                                                                 science emerges 
paper 
Education &         Develop communication tools and                    Adjust         Implement communication and outreach strategy                                           Develop
outreach strategy for politicians, local                      communication                                                                                                  outreach
Outreach 
leaders, environmental NGOs, etc                          strategy as                                                                                                     strategy for
necessary based                                                                                                 communities
on policies,                                                                                                     neighboring
producers, etc                                                                                                   production
facility

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