Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
6g
ACTION ITEM
Date of Meeting
September 22, 2020
DATE: August 17, 2020
TO: Stephen P. Metruck, Executive Director
FROM: Sandra Kilroy, Director, Environment & Sustainability
Michael McLaughlin, Director of Cruise Operations
Ryann Child, Sr. Environmental Management Specialist
Fred Chou, Capital Program Leader
SUBJECT: Delegation of Authority for Executive Director to Accept Grant Award for Pier 66
Shore Power Project
Amount of this request:
Not applicable
Total estimated project cost:
Not applicable
ACTION REQUESTED
Request Commission authorization to delegate authority to the Executive Director to apply for
and accept a $1,000,000 privately-funded grant award from the Energy Technology Fund of
TransAlta’s Centralia Coal Transition Grants for the Pier 66 Shore Power Project.
EXECUTIVE SUMMARY
The Pier 66 Shore Power Project will install shore power at the Bell Street Pier Cruise Terminal at
Pier 66. The shore power connection will enable cruise ship calls equipped with shore power
technology —71% of all vessel calls at Pier 66 in 2019 —to plug into cleaner, landside electrical
power while at berth, eliminating harmful diesel emissions and reducing greenhouse gas
emissions for the duration of the connection. At the December 10, 2019 Commission meeting,
the Commission approved funding for design, construction document development, and
permitting for the project and directed Port staff to pursue grant funding to offset the estimated
project cost of $17,050,000. At the direction of the commission, staff successfully applied and
received notice of award for over $2.9 million in grant funding toward the Pier 66 Shore Power
Project from three separate funding opportunities including federal public funding, state public
funding, and $1,000,000 in private grant funding from the TransAlta USA Centralia Coal Transition
Grant Program’s Energy Technology Fund.
In accordance with the General Delegation of Authority to the Executive Director, Resolution
3605 as amended, the Executive Director has authority to accept federal, state, and local grants,
but not the authority to accept private grant funds. The Centralia Coal Transition Grants are
private and funded by TransAlta USA, a coal company, and the Energy Technology Fund supports
COMMISSION AGENDA – Action Item No. 6g Page 2 of 4
Meeting Date: September 22, 2020
Template revised June 27, 2019 (Diversity in Contracting).
projects in Washington State that improve energy efficiency, enhance worker retraining and
economic development, and seed energy technology projects that improve our environment.
This grant program is funded by TransAlta USA to help the community as it transitions away from
coal-fired electric power generation. It is the result of a historic agreement to phase out
TransAlta’s coal-fired plant in Centralia, Washington.
This request for Commission action to delegate authority to the Executive Director to apply for
and accept the $1,000,000 grant award will enable Port staff to carry out Commission's direction
to offset the costs of the Pier 66 shore power system with grant funding and work through
TransAlta’s process to officially accept the $1,000,000 award.
JUSTIFICATION
Delegating authority to allow the Executive Director to apply for and accept the grant award from
TransAlta USA is consistent with Commission direction for Port staff to seek grant funding to
offset the cost of the Pier 66 Shore Power Project. The grant award reduces Port of Seattle’s cost-
share to complete the project by $1,000,000, which supports the Port’s Century Agenda strategy
to “be a highly effective public agency.” Leveraging all available grant funding leaves more
resources available for other projects critical to the Port’s mission.
In addition, TransAlta USA has provided funding to other shore power projects in Washington
through the Central Coal Transition Grant Energy Technology Fund. In 2019, the Northwest
Seaport Alliance accepted a $1,000,000 Energy Technology Fund grant award to install shore
power at Husky Terminal.
Accepting the TransAlta USA grant award will contribute to funding and enabling the completion
of the Pier 66 Shore Power Project. A shore power connection at Pier 66 will allow equipped ships
to plug in to clean electricity while at berth rather than running diesel engines, reducing air
pollution and greenhouse gas emissions. Also, the project contributes to the Port’s Century
Agenda goal to be the greenest port in North America and meeting the target to reduce
greenhouse gas emissions from Scope 3 sources by 80% by 2050 (from 2007). Shore power at
Pier 66 is estimated to achieve the following reductions in emissions each year
1
:
NO
x
SO
x
DPM
PM
2.5
CO
2
Annual Emission Reductions (metric
tons/year)
54
0.4
1.0
0.9
2,716
Shore power at Pier 66 also offers the following benefits beyond reducing greenhouse gas
emissions:
• Reduces exposure to air pollutants in the Seattle Waterfront neighborhood, a densely
populated area of King County.
• Reduces visible emissions from Pier 66, an area highly visible to the downtown Seattle
community and a major tourist destination.
1
The annual emission reduction estimates are based on pre-COVID assumptions for cruise ship calls anticipated at
Pier 66 once the shore power system is complete.
COMMISSION AGENDA – Action Item No. 6g Page 3 of 4
Meeting Date: September 22, 2020
Template revised June 27, 2019 (Diversity in Contracting).
• Sends a strong market signal to the cruise industry to continue to invest in shore power-
capable ships for Seattle-Alaska cruises. As more vessels become shore power-capable,
annual emission reductions will increase over time.
• Accelerates progress toward implementing the Northwest Ports Clean Air Strategy.
• Adds an additional amenity for cruise ships that makes Seattle a more appealing and
sustainable homeport and provides the opportunity for advancement of shared Port and
industry environmental objectives.
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Decline the grant award from TransAlta USA.
Cost Implications: Reduce grant funding received to offset the costs of the Pier 66 shore power
project by $1,000,000.
Pros:
(1) Reduce staff time for grant administration.
Cons:
(1) Declining the award will reduce the total grant funding received by $1,000,000 and Port
of Seattle will need to pay for a higher portion toward the estimated total project cost
of $17,050,000.
This is not the recommended alternative.
Alternative 2 – The Commission approves the Delegation of Authority and the Executive Director
accepts the grant award from TransAlta USA.
Cost Implications: Provides additional $1,000,000 in grant funding received to offset the cost of
the Pier 66 Shore Power Project.
Pros:
(1) Accepting the grant award provides $1,000,000 in funding to offset the overall cost of
the Pier 66 Shore Power project, bringing the total grant funding received to $2,923,773
toward the estimated $17,050,000 total project cost.
(2) Approach consistent with Commission direction to seek external funding sources from
the December 10, 2019 design funding authorization.
(3) Approach follows Port’s policy guidance.
Cons:
(1) The Port will be responsible for grant administration requirements per an agreement
with TransAlta USA, which will require staff time.
This is the recommended alternative.
COMMISSION AGENDA – Action Item No. 6g Page 4 of 4
Meeting Date: September 22, 2020
Template revised June 27, 2019 (Diversity in Contracting).
ATTACHMENTS TO THIS REQUEST
None.
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
December 10, 2019 – The Commission authorized funding for design and permitting phase of
the project (Item 8c.)
