Order 2023-15 – Environmental Legacy Fund Page 1 of 3
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ORDER 2023-15 4
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AN ORDER OF THE PORT OF SEATTLE COMMISSION 6
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… to establish an Environmental Legacy Fund within the 8
Port budget and plan of finance. 9
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PROPOSED 11
NOVEMBER 14, 2023 12
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INTRODUCTION 14
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The Port of Seattle is deeply committed to its role in cleaning up historical industrial pollution 16
related to its properties. Environmental cleanups are key to the Port’s mission, vision, and 17
Century Agenda goals for a sustainable, equitable region. The Port’s cleanup efforts ensure not 18
only improved water quality, salmon and marine mammal recovery, and healthier habitats in the 19
lands, waters, and wildlife in the Puget Sound region, but also quality of life for local residents 20
through safer shorelines for people to use for recreation and fishing, and a cleaner environment 21
for future generations. 22
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The Port has demonstrated this commitment over many years of work throughout King County – 24
from Elliott Bay to Seattle-Tacoma International Airport. In fact, the Port has not only completed 25
a substantial amount of cleanup work to-date, but also gained national and international 26
recognition for its innovative and community-centered approaches. 27
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Key to the Port’s ongoing success in these efforts is fiscally responsible planning. With more than 29
one hundred millions of dollars in currently known Port environmental cleanup costs anticipated 30
in the coming decade, it is prudent for the Port to start making down payments now so that it 31
can meet its responsibilities without undue impact on the Port’s taxpayers. The creation of a 32
dedicated Environmental Legacy Fund within the Port’s budget and plan of finance will help to 33
achieve that goal. 34
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Finally, while not directly part of the Environmental Legacy Fund, the Port will continue its efforts 36
to minimize the burden on its taxpayers through a commitment to the “polluter pays” principle, 37
ensuring where possible that the parties responsible for causing contamination are accountable 38
for paying their fair share. 39
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TEXT OF THE ORDER 41
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The Port Commission hereby directs the Executive Director to create a dedicated Environmental 43
Legacy Fund, with the following properties: 44
Item No. 10c_order
Meeting Date: November 14, 2023
Order 2023-15 – Environmental Legacy Fund Page 2 of 3
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1) The Environmental Legacy Fund shall be established within the Port’s overall financial 46
structure. Funds within this account shall only be used for the purposes outlined below. 47
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2) Assets in the fund shall be used exclusively for costs related to environmental cleanup of 49
contamination from historical industrial operations on properties acquired by the Port 50
and/or prior Port or Port tenant operations. Eligible activities shall include environmental 51
investigations, testing, analysis, design, cleanup, and monitoring for active sites as well as 52
initiation of similar activities for new sites. 53
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3) The fund will only include deposits of Port property tax levy funds. Additional funds used 55
toward the Port’s environmental cleanup efforts – including but not limited to the Port’s 56
General Fund, contributions from third parties or legal settlements with those parties, 57
insurance recoveries, and Washington State Department of Ecology grants – will be 58
managed separately but in coordination with expenditures from the new Environmental 59
Legacy Fund. 60
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4) The Executive Director shall recommend a deposit of $30 million in property tax levy 62
revenues into the fund to seed the creation of this account. 63
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5) In subsequent years, the Executive Director shall make an annual recommendation 65
through the budget process about designating additional increments of property tax levy 66
dollars to be deposited into the fund. 67
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STATEMENT IN SUPPORT OF THE ORDER 69
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The Port and its neighbors are committed to a shared vision of a sustainable, equitable region. 71
The Port’s cleanup work is core to achieving that goal, leading to improved water quality, salmon 72
and marine mammal recovery, healthier habitats, safer shorelines for people to use for 73
recreation and fishing, and a cleaner environment for future generations. It is this vision and 74
values that are driving the Port to create the Environmental Legacy Fund – as a way to ensure 75
critical resources needed for remediation and cleanup are available, while staying true to its role 76
as an environmental and financial steward for its taxpayers and residents. 77
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The Port’s environmental remediation projects identify and address threats to human health and 79
the environment caused by contamination resulting from historical industrial operations on 80
properties acquired by the Port and/or prior Port or Port tenant operations. The results of these 81
efforts – as well as the attendant compliance with regulatory mandates, management of Port 82
liabilities, and support of the local community – align with the goals and objectives of the Century 83
Agenda, and Maritime, Aviation, Economic Development Division and Storm Water Utility 84
Business Plans. 85
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Order 2023-15 – Environmental Legacy Fund Page 3 of 3
The Port has identified a number of potentially contaminated sites that must be investigated and 87
remediated in compliance with federal and state environmental laws and regulations. The cost 88
to achieve these cleanups will exceed one hundred million dollars. 89
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Although the Port may not ultimately bear all or even most of the liability for the contamination, 91
it is often practically and financially beneficial for the Port to take initial responsibility to manage 92
and pay for the cleanup, and seek proportional recovery of its costs from other liable parties 93
through insurance claims, legal settlements, state grants and other sources. The Port’s goals are 94
to cost-effectively complete this environmentally responsible work. 95
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One of the key lessons from the COVID-19 global pandemic is the incredible value of having 97
strong financial reserves. The Port maintained its operations and supported its partners and 98
community during the pandemic because of this preparation, and it is prudent to bring that 99
approach to its environmental cleanup planning. 100
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Establishing the fund allows these investments to be more predictable and allows the Port to 102
build resources over time to meet these costs. Setting aside cleanup reserves also gives the Port 103
more ability to continue pursuing other important tax-levy funded projects, like maritime capital 104
improvement and economic development programs. 105
