Pier 66 Shore Power Project Construction Funding

Item No.: 10a_Supp

Meeting Date: January 10, 2023

• Commissioned in 1999

• Single berth facility and home port to

Norwegian and Oceania vessels

• Upgraded to accommodate newest NCL

vessels in 2018

• Recent P66 Interior Modernization

further enhanced areas jointly used by

Cruise and the International Conf. Center

• Contributes to significant jobs and

economic benefits to the region: 5,500

jobs and nearly $900M in total business

revenue each typical cruise season

Pier 66 Bell Street Cruise Terminal

Maritime Climate and Air Action Plan:

• Implement the Seattle Waterfront Clean

Energy Strategy

• Install cruise shore power at Pier 66 by

2024, 6 years ahead of the Northwest Ports

Clean Air Strategy goal

• Work with cruise lines to make 100% of

homeport calls shore power-capable

and plug in by 2030, if not before

• Incorporate sustainability best practices

into leases and agreements

Shore Power is a Key Environmental Strategy

• 93 percent of electricity in Seattle comes from low carbon,

low-cost sources, like hydroelectricity

• Ships that use Seattle’s clean electricity instead of fossil fuels

at berth reduce CO

and air pollutants

– In 2019 shore power use reduced about 2,900 metric tonnes of CO

– In 2021 shore power use reduced about 1,700 metric tonnes of CO

– In 2022 shore power use reduced about 2,200 metric tonnes of CO

• Cruise lines are demonstrating commitment to use shore

power at Terminal 91 and connection rates by equipped calls

increase year-over-year:

• At Pier 66, many ships are already shore power-equipped and

expected to connect once a connection is available

Shore Power Environmental Benefits and Successes

53%

62%

89%

97%

20%

40%

60%

80%

100%

2017 2018 2019 2020 2021

Pier 66 Shore Power Project Components

Four key segments

• Segments 1 & 2: Landside infrastructure

at Terminal 46. Cost sharing with Seattle

City Light on Segment 1.

• Segment 3: Approximately 1-mile

submersible cable in Elliott Bay

• Segment 4: Shore power equipment and

infrastructure on Pier 66. Two shore

power connection points with cable

management system to offer connection

flexibility

Project Status

• Pre-Procurements executed for Submarine Cable and Electrical Equipment

• 90% design completed to accommodate alternate feeder source

• Permit review underway, approval expected Q1 2023

• Continuing collaboration with our partners on design development:

 Northwest Seaport Alliance  Seattle City Light

 Washington State Ferries  Seattle Dept. of Construction and Inspection

 Tribal Governments  Department of Natural Resources

 Army Corps of Engineers  Washington State Fish and Wildlife

 National Marine Fisheries  US Coast Guard

Authorization Request

• Advertise and award Major Works Contract to complete construction

work, extend design contracts to cover construction support.

• Execute a Memorandum of Agreement with Seattle City Light and

associated agreements (incl. property and DNR easement) to facilitate

this work

• Execute Tribal mitigation agreements

Total amount of this request: $29,145,000

Total project budget: $38,000,000

Project Budget

• Current $38M request is total cost for the project, offset by several sources

SCL contribution for system expansion ($3.0M)

Grant and State Funding ($4.9M)

Norwegian Cruise Line contribution in negotiation

Next Steps

• Final design and permitting complete: Q1, 2023

• Memorandum of Agreement with Seattle City Light on Roles and

Responsibilities and Cost Sharing: Q1, 2023

• Advertise major works contract Q1, 2023

• Shore Power Funding Agreement and Possible Lease Amendment with

Norwegian Cruise Line Holdings: Q2, 2023 (Separate Action)

• Onsite Construction, Testing & Commissioning: Q3, 2023 – Q2, 2024

Questions?