Item Number: 11a supp Meeting Date: March 11, 2025 Federal Grants Update March 2025 1 Purpose • Provide background on the Port's Federal grant funding and current risks • Focus on Federal grants - Capital grants included as a funding source in the 2025-2029 Plan of Finance • Excludes NWSA grant details - Managing Members briefed on February 4, 2025 2 CIP Development and Grants • Projects are included in the CIP based on need • A funding plan is developed that may include the use of grants • Grants are only included if there is a high level of certainty - Already awarded - Entitlement grants - Based on formula or standard criteria the Port will meet • 2025-2029 CIP included federal grants - $324 million of Airport grants (current estimate is $337 million) - $33 million of Seaport (including NWSA) grants 3 Potential Risks to Federal Grants Type of Risk Description Example of Potential Risk Grant Opportunities Criteria for grants could change No DEI or sanctuary facilities Grant Availability Grant funding in recent legislation could be Repeal or reduction of BIL or DOGE rescinded or blocked or the number of blocks awards grants is reduced Grant Administration Staff reductions could slow grant awards and payment processing Administration is planning to eliminate many jobs at EPA Grant Assurances and Conditions Changes to the conditions and/or assurances for grant awards could be contrary to Port values or interpretation of conditions changes Elimination of DEI programs as a condition for a grant. Assurances and conditions often refer to compliance with executive orders. 4 Status of Airport Grants • Lower risk: Already awarded - $150 million or which $80 million remains • Medium risk: Pending or Future grants - $257 million total • Primarily for South Concourse • Also includes airfield paving and Highline School noise mitigation 5 Overall Risk Assessment Grant Type Awarded Pending & Future TOTAL Total Amount Loss Risk AIP Entitlement 8.8 Very low AIP Discretionary - Noise 27.4 Very low AIP Discretionary 3.0 Low AIG 21.7 Low ATP 19.3 Low/moderate AIP Entitlement 40.0 Low AIP Discretionary - Noise 8.6 Low/moderate AIP Entitlement 40.0 Low AIG 191.0 Moderate ATP 17.5 Moderate/high 337.3 Port has MOA with the FAA to provide noise grants for Highline School AIP - Airport Improvement Program AIG - Airport Infrastructure Grant ATP - Airport Terminal Program 6 Other Federal Grants Environmental • EPA Clean Ports Grant - 3 million - Awarded - Concerns about potential changes Seaport • Maritime has no Federal Grants at this time • NWSA - Briefing provided February 4, 2025 - Port's 2025-2029 Plan of Finance included $33 million (Port's 50% share) of federal grants - Also included $53 million of Harbor Maintenance Tax funds 7 Considerations • Any reduction in federal grant funding assumed in the Plan of Finance would require either - Reduction in spending - Use of other funding sources • Note: Port funding includes a number of State grants. These could also be impacted by changes at the federal level • Recommendation: - Continue with grant applications and collections - Prepare for administrative disruptions and for regulatory changes 8 Additional Information 9 FAA Administered Grants • Airport Improvement Program (AIP) - - Funded by ticket tax through the airport trust fund - Entitlements - formula based - Discretionary - competitive award based on need and wellestablished criteria (set-asides for noise projects) • Bipartisan Infrastructure Law (BIL) - eligibly based on PFC - Airport Infrastructure Grants (AIG) - formula based - Airport Terminal Program (ATP) - Discretionary competitive: limited to terminal access and improvements 10 Existing Airport Grants Existing FAA Grants ($ in thousands) Funding Program Year Grant Amount Grant Balance Award Claimed $ % CLOSE-OUT STATUS AIP 152 - Restroom Renovation Phase 4 AIP Ent. 2021 AIP 157 - N Sat and Cargo 2 Taxilanes AIP 158 - Cargo Apron 2 and Taxiway Joint Seal AIP Disc. AIP Ent. AIP 162 - TaxiLane Rehabilitation AIP 168 - Single Family Home Sound Insulation $ 8,667 $ 7,795 $ 872 10% 2022 2022 16,774 2,870 15,097 2,781 1,677 89 10% 3% AIP Noise Disc. 2023 1,472 AIP Noise Disc. 2023 1,200 996 476 32% 1,019 181 15% AIP 153 - NOISE Apartment Buildings AIP Noise Disc. 2021 12,500 3,277 9,223 74% AIP 160 - NOISE Apartment Buildings AIP 161 - Restroom Renovations Phase 5 AIP Noise Disc. BIL ATP 2022 2022 8,800 10,000 898 5,888 7,902 4,112 90% 41% AIP 163 - NOISE Places of Worship AIP Noise Disc. AIP 164 - Checkpoint 1 ATP BIL ATP 2023 6,313 1,091 5,222 83% 2023 13,827 5,117 8,710 AIP 165 - Airport Widen Arrivals 63% AIP Ent. 2023 7,598 6,078 1,520 20% AIP 166 - Snow Removal Equipment 2023 AIP Ent. 2023 4,020 - 4,020 100% AIP 167 - S Concourse Design (Phase 1) BIL AIG 2023 31,500 9,845 21,655 69% AIP 169 - Reconstruct Taxilane W & Adjacent Apron AIP Ent. 2024 7,930 5,602 2,327 29% AIP 171 - Widen Arrivals Phase 2 (ATP) BIL ATP 2024 10,400 3,876 6,524 63% AIP 172 - Central Mechanical Plant Study AIP Disc. 2024 900 - 900 100% AIP 173 - FAA Noise Part 150 Study AIP 174 - Airfield Environmental Mitigation PFAS AIP Noise Disc. AIP Disc. 2024 2024 4,584 450 200 - 4,384 450 96% 100% 149,804 $ 69,561 $ 80,244 54% ACTIVE PROJECTS TOTAL EXISTING GRANTS $ 11 Pending and Future Grants Pending & Future FAA Grants ($ in thousands) Year(s) Amount PENDING GRANTS AIP 175 - SCE Balance of Design (AIG) 2025 AIP 176 - SCE Construction - Phase 1 (ATP) AIP 177 - SCE Construction - Phase 1 (AIG) 2025 2025 $ 37,500 17,500 109,500 Subtotal 164,500 FUTURE GRANTS (Estimated) 2026-2030 Airfield Pavement 2026-2030 40,000 SCE Construction - Phase 2 (AIG) Highline School District Noise Abatement 2026-2029 2026-2030 44,000 8,591 Subtotal TOTAL PENDING & FUTURE GRANTS 92,591 $ 257,091 12