Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
6k
ACTION ITEM
Date of Meeting
June 11, 2019
DATE: May 2, 2019
TO: Stephen P. Metruck, Executive Director
FROM: Sandra Kilroy, Director, Maritime Environment & Sustainability
Paul Meyer, Sr. Program Manager
SUBJECT: Energy and Sustainability Fund: Seattle Waterfront Clean Energy Strategic Plan
Consultant
Amount of this request:
$200,000 (Energy & Sustainability Fund)
Total estimated project cost:
$250,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to commit previously approved
Environment and Sustainability Center of Expertise funds to support the development of a
Seattle Waterfront Clean Energy Strategic Plan (SWCESP) in the amount of $200,000.
EXECUTIVE SUMMARY
This expenditure furthers the Century Agenda Strategy 4: Be the greenest, most energy efficient
Port in North America. In the 2018 budget the Commission directed the Executive Director to
“Allocate no less than $1,000,000 to the Environment and Sustainability Center of Expertise to
implement the Energy and Sustainability Committee Policy Directives as adopted in the first
quarter of 2017 by the Port of Seattle Commission.”
The Committee, in its oversight role, has reviewed the project and recommends the use of the
Energy & Sustainability Funds to provide consultant support for the SWCESP. While this
authorization is below the $300,000 threshold delegation requirement, the Committee
requested that these funds be explicitly authorized to provide visibility to the Commission and
public.
The vision for the SWCESP is to determine our smartest investment pathways to develop and
deliver a harbor-wide maritime energy distribution system and infrastructure to provide clean,
affordable, sustainable and resilient energy for port, maritime, industrial and other waterfront
uses now and thirty years in the future. Achieving the SWCESP vision will increase regional
competitiveness, create jobs, improve community health and social equity, and address climate
change.
COMMISSION AGENDA – Action Item No. _6k_ Page 2 of 6
Meeting Date: June 11, 2019
Template revised September 22, 2016; format updates October 19, 2016.
The SWCESP, led by Port of Seattle, will require dedicated technical input, strategic planning,
management and time from a broad team including Northwest Seaport Alliance (NWSA), City of
Seattle and other waterfront stakeholders, along with technical support from outside
consultants with experience in grid modernization and management, utility planning,
renewable energy substation and energy systems planning. The use of the requested funds
will provide the needed consultant technical assistance and planning facilitation for the project
manager and the internal core team.
JUSTIFICATION
The Energy and Sustainability Committee, in coordination with staff, agreed upon two
attributes to guide distribution of these funds: 1) that the project leverage matching funds and
in-kind support and 2) to increase partnership opportunities with government, non-
governmental and/or educational institutions.
The development of the SWCESP envisions a collaborative process centered around Elliott Bay,
including the container terminals managed by the NWSA, key partners including City of Seattle
(Seattle City Light, Seattle’s Office of Waterfront and Civic Projects, Office of Sustainability and
the Environment), King County, State of Washington and private maritime operators. Other
maritime transportation, business users and other public agencies may become involved with
the plan development. Extension of these commitments to financing of future improvements
will be explored, as appropriate.
The expenditure of these funds will provide the technical information enabling the Port to
create a technology policy supported by partnerships with regional entities, businesses, and
utilities. The overall planning process will also develop funding strategies with energy utilities,
other partners, and future grant opportunities.
The SWCESP requires experience and technical knowledge from experts in energy planning,
engineering and project facilitation to develop the detailed roadmap and well-balanced
strategy for the project. The funds requested will be used for an outside consultant selected to
support the project team to meet these goals. Additional engineering and financial planning
support may be needed to develop more robust project rough-order-of-magnitude costs and
life cycle analyses to produce a prioritized infrastructure plan.
DETAILS
Aboard ships and across Port operations, industry is moving away from fossil fuels and toward
clean electricity and other clean fuel sources to meet climate change mitigation goals. To
support and enable this energy transition, the Seattle’s maritime industry, must take a holistic
and systematic view of opportunities across the harbor and work with partners to determine
cost effective, strategic opportunities for clean energy deployment and energy infrastructure
management to reduce fossil fuel use. Each strategy bears the potential for energy saving and
COMMISSION AGENDA – Action Item No. _6k_ Page 3 of 6
Meeting Date: June 11, 2019
Template revised September 22, 2016; format updates October 19, 2016.
reduction of carbon dioxide, a significant greenhouse gas contributor. Only a systematic
evaluation will result in maximum emissions reductions, identifying the optimum approach to
cost efficiency, reliability and resiliency. The Seattle Waterfront Clean Energy Strategic Plan will
identify the comprehensive, collaborative and innovative strategies needed over the next thirty
years to provide sufficient clean electricity to reduce emissions, reduce costs, and provide
reliable and resilient energy.
The project team will develop a deep body of knowledge about the waterfront power grid and
will work with Seattle City Light, nearby businesses, and other agencies on load demands and
grid system management. Examples of potential solutions to explore include:
Innovative supply solutions
Smart and resilient grid systems,
Balance fluctuating supply and demand for electricity with storage, and
Development of flexible demand schedules to make transmission energy use more
efficient.
The final deliverable will be a blueprint that identifies a set of implementing projects, needed to
modernize energy delivery and management systems, which serves Port and NWSA facilities
developed in concert with businesses, City, maritime transportation, and utility energy agencies
and partners that delivers on low-emission energy in the future.
Schedule
The Plan is expected to be developed over the next year and half following the proposed
schedule listed below.
Project Step
Estimated Completion
Internal Plan Development and Consultant
Scope Definition
7/1/2019
Project planning development with external
groups
8/15/2019
Data Gathering
11/15/2019
Strategy Development
3/15/2020
Develop Final Report: Blueprint for
Modernized Grid
8/15/2020
Adopt Technology Policy
10/30/2020
Cost Breakdown
This Request
Total Project
Consultant contract and supporting work
$200,000
$200,000
COMMISSION AGENDA – Action Item No. _6k_ Page 4 of 6
Meeting Date: June 11, 2019
Template revised September 22, 2016; format updates October 19, 2016.
Total
$200,000
$200,000
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Do not support development of a Waterfront Seattle Clean Energy Strategic
Plan.
Cost Implications: $0
Pros:
(1) Cost savings. Conserves staff resources for other work.
Cons:
(1) Would be a lost opportunity to create a roadmap for future energy infrastructure
planning that will lead to the comprehensive, collaborative and innovative strategies
needed over the next thirty years to provide sufficient clean energy to reduce
emissions, reduce costs, and provide reliable and resilient energy. The Port would
continue status quo energy acquisition approaches currently in place, which involve
system impact studies and siloed energy demand planning in partnership with utilities.
(2) Does not support Commission adopted 2019 Local and Regional Government Policy
Priorities.
This is not the recommended alternative.
Alternative 2 – Develop a strategic plan to determine our smartest investment pathways for a
harbor-wide the energy system that will be affordable, sustainable and resilient now and in the future.
Cost Implications: $200,000
Pros:
(1) This alternative funds development of a roadmap that includes steps, strategies,
technologies, partnerships, processes and policies needed to provide clean energy to
Seattle’s working waterfront over the next 30 years.
(2) Will increase regional competitiveness, create jobs, improve community health and social
equity, and address climate change.
(3) Supports Commission adopted 2019 Local and Regional Government Policy Priorities.
Cons:
(1) Cost of consultant and associated work to complete planning process
(2) Significant staff effort for project that could be directed to other Port programs.
This is the recommended alternative.
FINANCIAL IMPLICATIONS
Initial stage setting with core internal team and Somersault Consulting has begun re-evaluating
the problem, developing shared values, confirming the vision, goals and establishing
COMMISSION AGENDA – Action Item No. _6k_ Page 5 of 6
Meeting Date: June 11, 2019
Template revised September 22, 2016; format updates October 19, 2016.
performance goals. This initial planning utilizes $50,000 from approved Air Quality expense
funds approved in the 2019 Maritime E & S department budget. The requested $200,000
funding for technical consultant support and plan development will utilize the Energy and
Sustainability Committee funding. Project funding support from NWSA is expected and will be
utilized to defray the requested technical support level when explicit.
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original estimate
$0
$0
$0
AUTHORIZATION
Previous authorizations for air quality
program projects
0
$50,000
1
$50,000
Current request for authorization for
consultant support
0
0
$200,000
2,3
Total authorizations, including this request
0
0
$250,000
Remaining amount to be authorized
$0
$0
$0
Remaining amount to be authorized
$0
$0
$0
1
Authorized in 2019 Maritime Environment and Sustainability department air program expense budget)
2
Included in Energy and Sustainability Committee funding authorization ($1 million)
3
Additional funds from NWSA will reduce this funding level when authorized
Annual Budget Status and Source of Funds
Commission directed that money be made available in the 2018 Environment and Sustainability
Center of Excellence expense funds to support and promote innovative projects that foster
efforts to reduce greenhouse gases, advance sustainability efforts and promote regional
collaboration. This request will use those already budgeted funds.
Financial Analysis and Summary
The development of the SWCESP will identify the comprehensive, collaborative and innovative
strategies needed over the next thirty years to provide sufficient clean energy to reduce
emissions, reduce costs, and provide reliable and resilient energy. SWCESP will demonstrate the
Port’s regional leadership in achieving balanced economic and environmental benefits while
increasing the reliability and resiliency of the ports energy delivery system. The port is providing
this effort to meet Century Agenda goals and invest in a sustainable future.
Future Revenues and Expenses (Total cost of ownership)
Following completion of report, Commission may adopt the plan as a technology policy
establish a future roadmap for infrastructure investment to update and modernize the port’s
grid system based on policy recommendations. Those investments will likely be capital costs
and be approved on a project by project basis.
COMMISSION AGENDA – Action Item No. _6k_ Page 6 of 6
Meeting Date: June 11, 2019
Template revised September 22, 2016; format updates October 19, 2016.
ATTACHMENTS TO THIS REQUEST]
(1) Presentation slides
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
February 28, 2017 – The Commission were briefed on adding Energy & Sustainability
Committee funding in the amount of $1,000,000.
January 8, 2019 – The Commission was briefed on the 2019 Local and Regional Government
Policy Priorities, which included the Seattle Waterfront Clean Energy Strategic Plan.
January 22, 2019 – The Commission adopted the 2019 Local and Regional Government
Policy Priorities, which included the Seattle Waterfront Clean Energy Strategic Plan.
April 30, 2019 – The Energy & Sustainability Committee was briefed on scope of plan and
the proposal to utilize Energy & Sustainability Committee funding in the amount of
$200,000 for plan support.
