COMMISSION 
AGENDA MEMORANDUM                        Item No.          10e 
ACTION ITEM                            Date of Meeting     December 14, 2021 

DATE:     November 15, 2021 
TO:        Stephen P. Metruck, Executive Director 
FROM:    Stephanie Jones Stebbins, Managing Director Maritime Division
Marie Ellingson, Cruise Operations and Business Development Manager 
Fred Chou, Capital Program Leader, Waterfront Project Management 
SUBJECT:  Pier 66 Shore Power Project Long Lead Items and Seattle City Light Service
Agreement 
Amount of this request:               $7,600,000 
Total estimated project cost:         $17,000,000 
ACTION REQUESTED 
Request Commission authorization for the Executive Director to (1) advertise, award and execute
a procurement contract for the purchase of a submarine cable and associated cable termination
devices; (2) enter into a contract for the procurement of a proprietary shore power system; and
(3) execute a service agreement with Seattle City Light to supply cruise shore power at Pier 66, 
for a combined amount not to exceed $7,600,000 for a new total authorized amount of
$8,855,000 out of a total estimated project cost of $17,000,000. 
EXECUTIVE SUMMARY 
The Port is an industry and regional leader in economic development and sustainability. As
Seattle's cruise industry continues to grow, the Port recognizes its responsibility and the
importance of concerted efforts to balance economic growth with sustainability. The Seattle
Waterfront Clean Energy Strategic Plan and the recently adopted Maritime Climate and Air Action
Plan provide a port investment strategy to protect the environment and improve community
health. Through this approach the Port seeks to achieve its vision of being the greenest, most
energy efficient port in North America and transition to zero-emission operations by 2050.
The provision of shore power for cruise ships, is the port's greatest opportunity to reduce
greenhouse gas (GHG) emissions and improve local air quality. Currently, the port's Smith Cove
Cruise Terminal at Terminal 91, which began operations in 2009, provides shore power at its two
cruise vessel berths. The single berth facility at Pier 66's Bell Street Pier Cruise Terminal, which
opened in 1999, does not have shore power for cruise vessels.

Template revised January 10, 2019.

COMMISSION AGENDA  Action Item No. 10e                                 Page 2 of 7 
Meeting Date: December 14, 2021 
To enable future shore power connections by shore power capable cruise ships that call on Pier
66, the Port has been working closely with Seattle City Light (City Light), Northwest Seaport
Alliance, City of Seattle and other partners to plan and provide shore power to the Bell Street
Pier Cruise Terminal. Shore  power at Pier 66 will be accomplished through an innovative
approach: installing a submarine cable from Terminal 46 to Pier 66 in lieu of bringing power
through the congested City right-of-way. This approach significantly reduces project costs and
avoids construction-related impacts to the waterfront.
The Port Commission authorized staff to proceed with the design and permitting phase of the
project in December 2019. In Fall 2020, City Light informed the Port that the planned power
supply connection to a feeder located in the S. King Street area adjacent to Terminal 46 was no
longer available. Working closely with City Light and City of Seattle, the stakeholders explored
and evaluated alternatives both on Port property and City right-of-way, which led to an
agreement to connect power from the S. Atlantic Street area and route infrastructure through 
Terminal 46. Staff has since completed State Environmental Policy Act (SEPA) reviews this past
summer, advanced the design, and submitted application packages for various environmental
permits while engaging other important stakeholders such as the Tribal Governments, City of
Seattle's Department of Construction and Inspection, Washington State Ferries, the Army Corps
of Engineers, Department of Natural Resources, US and Washington State Fish and Wildlife,
NOAA Fisheries, US Coast Guard, and the Puget Sound Pilots in the design development. 
A submarine cable and shore power equipment are two key components to the very specialized 
shore power system and they require long lead time to procure and deliver. We received a
competition waiver for the proprietary shore power equipment/system, same manufacturer at
Terminal 91, to be located on Pier 66's apron structure. The submarine cable would be procured
competitively. Approval of funding for these two long-lead items now will help ensure the cable
and shore power system can be manufactured, delivered and ready for installation in time to
meet the 2023 cruise season's shore power needs. This authorization will also allow the Port to
enter into a service agreement with City Light to provide the necessary power to serve Pier 66's
cruise berth. 
JUSTIFICATION 
The Bell Street Pier Cruise Terminal at Pier 66 is a single berth cruise facility in the heart of
downtown Seattle's waterfront. Pier 66 is the Port's first cruise terminalopened in 1999and
is homeport to Norwegian Cruise Line and its subsidiary Oceania Cruises. This terminal, along
with the Smith Cove Cruise Terminal at T91 contributes significantly to the region's economy on
an annual basis, generating more than 5,500 jobs and nearly $900 million in total business
revenue each cruise season.
In addition to its economic development mission, the Port is also an industry regional leader in
sustainability and is committed to addressing global climate change and improving local air
quality. In 2017 the Port's Commission adopted GHG reduction targets in alignment with the Paris
Climate Agreement and has been planning and implementing projects and programs to achieve

Template revised June 27, 2019 (Diversity in Contracting).

COMMISSION AGENDA  Action Item No. 10e                                 Page 3 of 7 
Meeting Date: December 14, 2021 
these critical air emission reductions. In October of this year, the Port updated its GHG reduction
targets to be even more ambitious in recognition the climate crisis. In November of this year, the
Port Commission adopted the Maritime Climate and Air Action Plan which identifies strategies
and actions the Port can take over the next 10 years to achieve the Port's Century Agenda GHG
target to reduce emission 50% by 2030 and to position the Port to phase out emissions entirely
by mid-century. By installing shore power at the Port's Bell Street Cruise Terminal at Pier 66 by
2023, the Port will meet the Northwest Ports Clean Air Strategy objective to provide shore power
at all major cruise berths by 2030 seven years early. The electricity needed to power ships
berthed at Pier 66 is available from City Light without extensive infrastructure upgrades or
transmission changes. This project does require the Port to invest in the new connection from
the south, but the unique solution of utilizing a submarine cable for power delivery, instead of 
trenching in the right of way, significantly reduces the overall cost. 
The Port's two shore power connected cruise berths at T91 are already resulting in significant
emission reductions. In 2019, 89 percent of shore power capable ships at T91 successfully
connected and avoided an estimated 4,300 metric tons (tons) of CO2. In 2021, 97 percent of shore
power capable ships at T91 successfully connected and avoided an estimated 1,700 tons of CO2 
during the limited cruise season due to the pandemic. 
On a cost per ton basis, assuming a 27-year infrastructure life (2023-2050) and $17 million cost,
staff estimates the cost in 2021 dollars of the cumulative carbon reduction by 2050 to be
approximately $280 per tonne if 50% of all calls to Pier 66 connected and approximately $140
per tonne if 100% of all calls to Pier 66 connected. If every single one of the shore power capable
calls at Pier 66 in 2019 connected each year through 2050, the cost of emissions avoided would
be an estimated $192 per tonne. As a measure of comparison, the estimated cost per tonne of
CO2 reduced from the Port's purchase of Green Direct wind power from Puget Sound Energy was
$11 per tonne and the cost per tonne of conservation achieved through the Airport's Stage 3
Mechanical Upgrades was $300 per ton. 
To-date Port has been awarded three grants: EPA's Diesel Emission Reduction Act (DERA) grant; 
VW Settlement grant through Washington State Department of Ecology; and Centralia Coal
Transition (TransAlta) grants, totaling $2,930,000 and the $1,000,000 TransAlta grant has already
been received. Staff will continue to explore and seek additional state, federal, and private
funding opportunities. Cost sharing strategies and discussions with the Port's leasehold partner,
Norwegian Cruise Line Holdings, are continuing and will be further developed. Staff anticipates
presenting the funding strategy to the Commission at the construction funding authorization
request. 
The Port is also working with Seattle City Light to draft a memorandum of agreement that would
provide an overarching approach for costs and responsibilities in delivering the Pier 66 Shore
Power Project, and for long-term operations and maintenance. The agreement also includes City
Light's system extension within Terminal 46, which would further support the Port's waterfront

Template revised June 27, 2019 (Diversity in Contracting).

COMMISSION AGENDA  Action Item No. 10e                                 Page 4 of 7 
Meeting Date: December 14, 2021 
electrification efforts and the Maritime Climate and Air Action Plan. Staff is aiming to present
the memorandum of agreement to the Commission in Q1, 2022. 
Staff will continue to explore cost savings opportunities during the remaining design efforts and
coordinate with upcoming projects at both Pier 66 and Terminal 46. 
Diversity in Contracting 
The proprietary shore power equipment is to be supplied by Cochran, Inc., a certified Women's 
Business Enterprise.  Companies that manufacture the specialized submersible shore power
cable are located abroad, where diversity-related certification programs do not exist, and
therefore a diversity in contracting aspiration goal is not set for the cable procurement.
DETAILS 
Scope of Work 
The major components of the P66 shore power project's work scope include the following: 
(1)   Pier 66 onsite shore power infrastructure/equipment/system inclusive of shore power
cable management device and system monitoring 
(2)   Approximately one mile of submarine cable and associated armoring 
(3)   Environmental impact mitigations as required by the agencies and Tribal Governments 
(4)   Terminal 46 onsite shore power infrastructure/switch gears 
(5)   Offsite shore power related infrastructure and feeders by City Light 
(6)   Design development/permitting and environmental review for project 
(7)   Develop agreement, shared funding and implementation strategies with lease holder
and partner agencies 
Schedule 
Design and Permitting                            January 2020  Q3,
2022 
Long lead item and City Light Service               December, 2021 
Agreement commission funding authorization 
(this authorization) 
Memorandum of Agreement with Seattle City         Q1, 2022 
Light 
Construction funding authorization(s)                  Q2, 2022 
Construction start                                       Q4, 2022 
In-use date                                        2023 Cruise Season 



Template revised June 27, 2019 (Diversity in Contracting).

COMMISSION AGENDA  Action Item No. 10e                                 Page 5 of 7 
Meeting Date: December 14, 2021 
Cost Breakdown                                     This Request           Total Project 
Design Authorization                                               0             $1,255,000 
Long Lead Items and City Light Service                    $7,600,000             $7,600,000 
Agreement 
Construction                                                      0             $8,145,000 
Total                                                         $7,600,000             $17,000,000 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1  Procure submarine cable that has shorter service life which would be more readily
available and does not require the longer lead time.
Cost Implications: Initial cable cost is approximately 70% of the currently specified submarine
cable 
Pros: 
(1)   Cable would be available in the US and require less lead time 
(2)   Cable would cost less 
Cons: 
(1)   The service lives for the cables available in the US is expected to be less than half of the 
more durable submarine cable available outside the US.  Cost of permitting and
installation a second time to achieve the same service life would be very significant from
a life cycle perspective 
This is not the recommended alternative. 
Alternative 2  Defer procurement the submarine cable and shore power equipment once the
pandemic settles down 
Cost Implications: Unknown but may be some savings 
Pros: 
(1)   Cost of materials/equipment may be more stable and be less once the pandemic settles down 
Cons: 
(1)   Cost implications are unknown and the project completion would be delayed 
This is not the recommended alternative. 
Alternative 3  Procure long lead items per plan and execute service agreement with Seattle City
Light 
Cost Implications: $7,600,000 
Pros: 
(1)   Allow project to stay on schedule 

Template revised June 27, 2019 (Diversity in Contracting).

COMMISSION AGENDA  Action Item No. 10e                                 Page 6 of 7 
Meeting Date: December 14, 2021 

Cons: 
(1)   Requires capital investment 
This is the recommended alternative. 
FINANCIAL IMPLICATIONS 
Cost Estimate/Authorization Summary              Capital        Expense           Total 
COST ESTIMATE 
Original estimate                                $17,000,000               $0     $17,000,000 
AUTHORIZATION 
Previous authorizations                          $1,255,000                0      $1,255,000 
Current request for authorization                $7,600,000                0      $7,600,000 
Total authorizations, including this request       $8,855,000                0      $8,855,000 
Remaining amount to be authorized            $8,145,000             $0     $8,145,000 
Annual Budget Status and Source of Funds 
This project has been included in the approved 2022 Plan of Finance under C800120 P66 Shore
Power with a total project cost of $17M.
The Port's cost share of the project is being funded by the Tax Levy. Approximately $3M of the 
project is funded with grants from U.S. EPA, WA Dept of Ecology, and TransAlta. 
Ongoing discussions with the Port's leasehold partner, Norwegian Cruise Line Holdings, may
result in additional non-Port funding for the project. Updated funding information will be
presented to Commission at the time of construction funding authorization. 
Financial Analysis and Summary 
Project cost for analysis              $17M Total, $14M in Port funds 
Business Unit (BU)                  Cruise Operations 
Effect on business performance         No incremental revenue or cost-savings is directly
(NOI after depreciation)                    associated with this project 
On-going maintenance expenses, if any, and cost-
share are not yet known. 
Estimated useful life of shore power
infrastructure is 28 years, resulting in a
depreciation expense of approximately $630,000
annually. NOI after depreciation will reduce by
that respective amount. 

Template revised June 27, 2019 (Diversity in Contracting).

COMMISSION AGENDA  Action Item No. 10e                                 Page 7 of 7 
Meeting Date: December 14, 2021 
IRR/NPV (if relevant)                N/A 
CPE Impact                       N/A 
Future Revenues and Expenses (Total cost of ownership) 
Potential opportunities for additional grant revenue and cruise line project investment will 
continue to be explored to offset the Port's cost-share of the project. Cost-share of any ongoing
maintenance costs and possible support from relevant partners will also be explored. 
ATTACHMENTS TO THIS REQUEST 
(1)   Presentation 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
December 4, 2019  The Commission authorized funding for the design and permitting phase
of the Pier 66 Shore Power Project in the amount of $960,000 for a total authorization of
$1,255,000.












Template revised June 27, 2019 (Diversity in Contracting).