Presentation

2022 Cruise Environmental Strategy Study Session
Stephen P. Metruck                       Stephanie Jones Stebbins
Executive Director                           Managing Director, Maritime Division

Sandy Kilroy                               Melissa Parks
Senior Director| Environment,              Policy Analyst, Government Relations
Sustainability & Engineering
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Purpose for Today




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1VISION &FOUNDATION 2ENVIRONMENTALSTRATEGY  3LEADERSHIP   OPPORTUNITIES

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1
VISION &
FOUNDATION

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GRAIN                                      BELL STREET
TERMINAL                                  CRUISE TERMINAL
Terminal 86                                                     Pier 66

SMITH COVE
CRUISE TERMINAL
Pier 91

Cruise Operations 1999-2022
2022 Estimate
1.3M Passengers
296 Ship Calls












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Maritime Revenue & Cruise
Cruise revenues have grown year over year
Seattle has been aggressive in raising Port directed fees
Supports other Maritime & Port Central Services
Actuals       Actuals       Actuals       Actuals       Actuals       Actuals       Actuals       Forecast
2014        2015        2016        2017       2018        2019        2021         2022

Cruise Revenue   $12,993,430  $14,413,620   $15,421,861   $17,595,810   $18,879,880   $22,409,725    $9,517,055    $28,573,859

Expenses Directly
Charged to Cruise    $3,388,171    $3,530,430    $4,270,256    $4,327,393    $4,787,542    $5,340,108    $4,468,451      $7,243,847
Subclasses
Net Income to
Support Maritime
$9,605,259   $10,883,190   $11,151,605   $13,268,417   $14,092,339   $17,069,616   $5,048,604     $21,330,012
& Port Central
Services

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Business Agreement Definitions
Tariff: Terminal Tariff No. 5
Port rates, charges, rules and regulations governing dockage, passenger fees and other port
directed fees.
Preferential Berthing Agreement:
Multi year agreements
Preferential berthing rights in exchange for Minimum Annual Guarantee
Ability to add other stipulations and reporting requirements.
Lease:
Can include unique terms, including upkeep of the property and equipment.
Preferential Berthing rights and a minimum Annual Guarantee.

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Business Agreements

Norwegian Cruise Line,        Holland America Line,
Royal Caribbean, Celebrity
Oceania Cruises, Regent     Princess Cruises, Carnival
Cruise Brands                                                                 Cruises, Silversea
Seven Seas            Cruise Line, Seabourn
Percent of
33% of passengers           39% of passengers       28% of revenue passengers
Passengers
Preferential Berthing
Lease
Business                                        Agreement                    Tariff
15-year; expires in 2030
Agreement Type                            Extension options through
5-year extension option
2023

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Regional Economic Benefit
CRUISE SUPPORTS
5,500 jobs       $900 million
annual business revenue
Tourism
Equity and Community
Equitable Economic Cruise Investments
Job Fairs: new in 2022
Connecting local businesses with Cruise
lines
Suppliers
Businesses around the state supply
ships
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Alaska Economic Impact
"Tourism gave us the ability to transition from a timber         2020 Financial Impacts to Alaska
economy to a sustainable tourism economy, allowing our
community to thrive while also preserving over 7,000 acres     Local Community Revenue Loss   -$98.6 million
of old growth forest."                                           Wages lost State and Local        -$305 million
Russell Dick, President & CEO of Huna Totem Corporation           Lost Revenues for Local Business   -$1.1 billion
Icy Strait Point, Alaska

The continuation of the no sail order "will mean 2  years
with no economy. Somewhere around $330 million in lost
revenue for local businesses. People are already moving
away. Population is down to around 800 from 1,100 last
summer. Businesses will fail. A lot of them. We lost
professionals in all sectors. The municipality will run out of
reserves by next August, even with the stimulus funding."
Andrew Cremata, Mayor, Skagway, Alaska

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A Legacy of Cruise Environmental Innovation and Leadership
Cruise agreements
NWPCAS Updated                          updated, require
EGCS wash water paused in
shore power use by
Puget Sound
equipped ships at
Terminal 91
Enhance d Cruise
Cruise MOU                                                        2016 PSEI showed
At-Ber th Best         NW Ports exceeded       Duwamish Valley          NWPCAS up dated, zero-
First Northwest              Manag ement         NWPCAS climate          Community               emission vis ion
Prac tices                                    Benefits                  First Maritim e Climate and
Cruise sho re power       Port's Clean Air                                     and air targets 4
Strategy (NWPCAS)                              years early              Commitment
First U.S . port to                                                                     Air Action Pl an Adopted
at Term inal 30                                                                                   Resolution Passed
achieve  Green                                                          Port GHG ta rgets accelerated
Ma rine
Certifi cation
2005            2009            2015            2018            2020                2022

2004            2008            2013            2016            2019              2021

First Puget Sound                                   North American
Puget Sound No                              EGCS was h water
Maritime Air             Shore power at                                                             Cruise Exhaust Gas
Terminal 91              Emission                                                                       study
Emissions                                                                Discharge Zone        Cleaning System
Inventory (PSEI)          (moved from T30)         Control Area In
in effect*              (EGCS) wash water
5-year updates                                    Effect*                                                                         Explore a green
At Berth Clean                                                                banned at berth
corridor
Second shore            Fuels Program                                                           Quiet Sound
power connection       Launched                                                              program launched             Seattle Waterfront
installed - First                                                                                                                                                  Clean Energy
global port with 2                                                                                                                            Strategy
connections
Bold* = Regulation    Green = Air Quality     Blue = Water Quality

Maritime Environmental Leadership in North America
Port of Seattle compared to GREEN MARINE-Certified West Coast Cruise Ports
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Score (Out of 5)                   V a    S
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N . Am     S a                                               e                            N                            N. American Average                                                        . Am
0          N                                                                                         N. American Average       San Diego
Greenhouse Gas &   Spill Prevention &   Community Impacts    Environmental    Waste Management  Underwater Noise
Air Pollutant       Stormwater Mgmt                               Leadership
Emissions
2021 Scores
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The Port's Tools for Transformation
PORT OF
SEATTLE                                Emissions
Leases,                              Direct                                Community
Incentives &                            Accounting,
Agreements,                      Investment                          Engagement
Recognition                            Reporting
Tariffs

MARITIME INDUSTRY
Innovation                 Partnerships                     Direct Investment

POLICY & REGULATIONS
International  National  State
Advocacy                     Partnerships

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Waterfront Guiding Principles
1.  Maximize the use of the Port's deep-water facilities and industrial lands to serve
maritime industrial uses.
2.  Expand economic, cultural and community benefits within Cruise Operations and
Development.
3.  Support financial sustainability of the Port of Seattle
4.  Incorporate leading edge environmental stewardship and sustainability practices
and facilities that can exceed existing regulations.
5.  Facilitate improved transportation mobility of people and goods in the region.
6.  Provide consistent excellence in customer service to strengthen Seattle's role as
the West Coast's premier cruise port.

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2
ENVIRONMENTAL
STRATEGY


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Charting the Course To Our Future State
2020                          2030                          2040                          2050

Today                    By 2030                      By 2050
Build shore power                         Install clean energy                               Operate a zero-emission
Improve vessel efficiency and            infrastructure                                      waterfront
environmental performance          Pilot novel propulsion                     Zero-emission cruise operations
Create a Seattle Waterfront              New clean maritime fuels
Clean Energy Strategy
Engage and advocate at local,
national, and international
arenas
Explore a Green Corridor

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Building Blocks for a Sustainable Cruise Industry
WASTE &
WATER                       AIR
NOISE                        CLIMATE        ENERGY
QUALITY                       QUALITY
REDUCTION
Voluntary                  Quiet Sound              Northwest                Explore a Green         Rigorous solid
agreement to          Underwater            Ports Clean Air          Corridor              waste and
prevent                 Noise                  Strategy               Seattle                recycling
wastewater             Mitigation &                                                      programs
discharge                                        Maritime               Waterfront
Management
Clean Energy
Ban on scrubber            Plan                         Climate and Air                                       Eliminating
discharge                                        Action Plan             Strategy               single-use
Construction
Ocean                       noise reduction          Community               Sustainable               plastics
Acidification               and marine               engagement              maritime and           Terminal and on-
Action Plan               mammal                Focus on                aviation fuels           ship energy
Stormwater best           monitoring                 environmental           International             efficiency
management                             justice              engagement        Efficient vessel
practices                                                                                              design
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Partnering to Preserve Water Quality in Puget Sound

Water Quality Successes:                                       Looking Ahead:
Since 2004, cruise ships have not discharged any                     Continue support for the Cruise MOU,
sewage into Puget Sound as part of the Cruise MOU               with CLIA and Ecology
2020: the Port used its tariff to ban all cruise ships from             Participate in a Puget Sound study of
discharging exhaust gas cleaning system wash water               EGCS water quality impacts
while at berth                                                    Continue cruise at-berth best
2021: Cruise lines voluntarily agreed to pause wash                   management practices, training
water discharges in Puget Sound while a 3rd party                 Continue to engage environmental
studies water quality impacts                                      stakeholders on water quality issues
Currently, Seattle's cruise ships exceed regulation and
do not discharge anything into Puget Sound
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Protecting Marine Ecosystems
Successes:
First port to join the International
Alliance for Ocean Acidification (OA)
and develop an OA Action Plan
Founding member of Quiet Sound to
reduce underwater noise impacts to
Southern Resident Killer Whales from
large vessels
Looking Ahead:
Developing an Underwater Noise
Mitigation & Management Plan

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The Northwest Ports Clean Air Strategy
Phase-out emissions from seaport-related activities by 2050, supporting cleaner air for local communities and
fulfilling our shared responsibility to help limit global temperature rise to 1.5C.
Shared airshed:                   Past Progress: 2005 to 2020:





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Charting the Course to Zero:
Port of Seattle's Maritime Climate and Air Action Plan
Strategies and actions to reduce maritime GHGs
50% by 2030:
Install shore power at all major cruise berths
Reach 100% of homeport cruise vessels equipped
with shore power
Support domestic and international efforts to phase
out emissions from ocean-going vessels
Support continual advancements in equipment
efficiency and emission reduction from vessels
Near-term projects:
Complete the Waterfront Clean Energy Strategy
Install shore power at Pier 66
Pilot green lease terms
Develop a process for ongoing engagement with
near-port communities

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Planning for Ports as Clean Energy Hubs
A collaborative effort involving NWSA, Seattle
City Light and the Maritime Industry
Investments to facilitate Port and industry
transition to zero emissions fuels and
technologies
Enabling infrastructure for zero-emissions
terminals
Work with National Labs to evaluate clean
hydrogen for vessel, vehicle, equipment and
utility applications and large volume storage


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Engaging Near-Port Communities
Established the Duwamish Valley
Community Benefits Commitment
Community feedback shaped the Port's
cruise environmental priorities
Partnering in the Duwamish Valley
Clean Air Program
Developing an ongoing engagement
process on climate and clean air issues
informed by near-port communities
Developing community engagement
playbook of best practices

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Promoting Transparency and Accountability
Complete GHG emissions inventories       Port-related Maritime GHG                Port of Seattle
Emissions in Seattle                 Maritime GHG Total:
annually                                    300,114 metric tons GHG               78,775 metric tons GHG
Conduct Puget Sound Maritime Air
Emissions Inventory every 5 years                                                        Recreational vessels
NWSA Marine Cargo
Collect cruise-specific emissions data                 Ships                                                Port
35%                                                      Administration
Port of
Work collectively with partners to                             Seattle total
Cruise Ships                        Rail
Other NWSA               26%
expand availability of cruise                                                        68%        Commerical Fishing
Operations                                                                              Vessels
13%                                                           Grain Ships
environmental data
Develop annual progress reports and                                                                Cargo-Handling
Drayage Trucks
Equipment
26%
quarterly newsletters                                                                 Cruise buses
Engage community with regular
environmental progress reports, and           17%    84% From Port of Seattle ocean-going
opportunities to inform cruise                   GHG     DPM   vessels between 2005-2016
environmental strategies
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Achieving Our Goals
What it will take to get to zero by 2050:
Zero-
Focused effort on goals                                                 Emission
Cruise Ships
Cross-sector partnerships
Supportive policy                                                                        Zero-
Community
Emission
Engagement
Ground
New funding and/or capital                              and
Trans-
Reporting
portation
Investments in infrastructure, research and                           The Greenest
development                                               Cruise Port in
North
Available, affordable technology                                        America
Industry commitment                                                             Zero-
Energy
Emission
Workforce training                                     Efficiency
Cruise
and Waste
Terminal
Reduction
Community engagement and capacity building                                      Operations
Protect
Water
Quality and
Marine
Ecosystems

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3
LEADERSHIP
OPPORTUNITIES

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Environmental Influence and Impact
High Global Impact & Low Port Influence
Global                                   IMO Engagement
Clydebank Declaration
Regional
Green Corridors
Northwest Ports Clean
Air Strategy
National
Federal Policy
Federal Agency Collaboration
Puget Sound
Cruise MOU
Emissions Inventories
Port of                                        Century Agenda
Seattle                                       Leases, Agreements, Tariffs
Maritime Climate and Air
Action Plan
Low Global Impact & High Port Influence

Engagement Opportunities
POLICY          PARTNERSHIP     COMMUNITY
Provide the ongoing           Cultivate new regional,         Lead the just and
resources and guidance       U.S. and international          equitable transition to
needed for the Port to         partnerships focused on        zero emission and
accelerate the transition        maritime decarbonization       sustainable cruise future
to a zero-emission cruise       and community benefits
industry in Seattle
LEADERSHIP        ADVOCACY
Leverage the Port's                  Lead advocacy in domestic
"Tools for Transition" to              and international forums
drive sustainable change           for Port priorities and
in the Seattle to Alaska               partner with others to
cruise market                      maximize influence
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Clydebank Declaration
SIGNATORIES
Mission: "support the establishment of          Australia                Japan
green shipping corridors  zero-emission           Belgium                 Marshall Islands
maritime routes between 2 (or more)             Canada                 Morocco
portsand at least 6 green corridors by the         Chile                    Netherlands
middle of this decade, while aiming to scale        Costa Rica                New Zealand
activity up in the following years"
Denmark               Norway
Recognizes need for an accelerated global         Fiji                         Palau
maritime response to climate change
Finland                     Singapore
Alignment with Paris Agreement
France                    Spain
Signed at COP26 in November 2021                Germany                   Sweden
Ireland                      United Kingdom
Italy                             United States of America
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Incentives and Recognition: Encouraging Environmental Leaders
Past:
At-Berth Clean Fuel incentive program (2009-2015)
encouraged early transition to low sulfur diesel fuels
ahead of regulation
Today:
Sustainable Century Awards recognize business
partners for environmental performance, education
and outreach, innovation, and equity, diversity, and
inclusion
Future:
International Association of Ports and Harbors
Program focused on rewarding cruise environmental
performance
Evaluate incentives to encourage early transition to
zero-emission fuels, technology or other
environmental benefits

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Leases, Tariffs, and Agreements: Levers to Raise Environmental
Standards
Today:
Preferential Berthing Agreement require shore power
use for equipped cruise ships where a connection is
available as well as weekly reporting
Stormwater Best Management Practices
Ban on exhaust gas cleaning system wash water
discharge at berth and voluntary moratorium in Puget
Sound pending further study
Future:
Require homeport ships to have shore power by 2030
Require transition to zero-emission equipment, vehicles
and cruise ships by 2050
Partner with cruise lines on emission reporting
Partner with cruise Lines on broad sustainability goals
and standards for workforce development, local
provisioning and other goals

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Policy Advocacy: Advancing Environmental Goals through State,
National, and International Engagement
Past:
Creation of the North American Emissions Control Area
Passage of Clean Fuel Standard in Washington & Bipartisan Infrastructure Legislation at
federal level
Today:
Influence Clean Fuel Standard rulemaking
Advocacy for $3.5B for maritime decarbonization in Build Back Better Act or smaller
reconciliation package
Ongoing federal agency conversations re: partnership and funding
Participate in development of international maritime policy via International Association
of Ports and Harbors
Engage U.S. Delegation to IMO to provide port perspectives on U.S. environmental
priorities
Influence global discourse via Getting to Zero Coalition and other channels.
Future:
Deliver an international engagement strategy
Influence international and national policy decisions that support zero-emission vision
Seek shared priorities with key environmental advocacy groups

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Upcoming Events
May 16-18: IAPH World Ports Conference
Vancouver, British Columbia
June 8  10: Green Marine's Green Tech
Montreal, Quebec
September 22-23: Global Maritime Forum
Annual Summit, New York City
October 18  20: GreenPort Cruise &
Congress at Port of Zeebrugge, Belgium
November 7-18: UN Climate Change  27th
Conference of Parties; Sharm el-Sheikh, Egypt
December 12  16: Marine Environment
Protection Committee (MEPC) 79, IMO,
London, England
Engage with U.S. delegation ahead of session

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Questions?

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