Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No. 8f
ACTION ITEM Date of Meeting April 22, 2025
DATE : March 17, 2025
TO: Stephen P. Metruck, Executive Director
FROM: Sarah Ogier, Director-Maritime Environment & Sustainability
Alex Adams, Sr. Manager Environmental Programs
David Fujimoto, Sr. Environmental Program Manager
SUBJECT: Authorization of Clean Ports Planning Grant Use of Funds
Prior request: $ 1,060,000
Amount of this request: $ 1,937,248
Total estimated project cost:
$ 2,997,248
ACTION REQUESTED
Request Commission authorization for the Executive Director to: 1) expend up to $1,937,248 in
grant funds; and 2) to execute related service agreements, not to exceed $1,471,600, to achieve
the results of the EPA Clean Ports Program Climate and Air Quality Planning Grant.
EXECUTIVE SUMMARY
The Port of Seattle applied for approximately $3 million in funding through the U.S.
Environmental Protection Agency (EPA) Clean Ports Program (CPP) Climate and Air Quality
Planning Competition to accelerate efforts to transition to low and zero emissions harbor craft
and advanced clean maritime fuels for ocean-going vessels. The Port was awarded $2,997,248
for its proposal titled, “Powering the Maritime Transition in the Pacific Northwest.”
In May 2024, the Commission authorized a competition waiver and execution of service
agreements with three non-profit partners as sub-recipients in the amount of $1,060,000. This
request seeks authorization to expend the balance of grant funds for project management and
service agreements for technical analysis, community engagement, strategy planning, and
workforce development to meet the objectives of the grant award. The Port will institute project
management, contractual, and financial management measures to reduce exposure to financial
risk. Below is a summary of the authorization requests:
COMMISSION AGENDA – Action Item No. 8f Page 2 of 5
Meeting Date: April 22, 2025
Template revised June 27, 2019 (Diversity in Contracting).
Date Amount Description
May 21, 2024 $1,060,000 Competition waiver, authorization to name
designated sub-recipients and enter into
agreements with Washington Maritime
Blue, American Bureau of Shipping (ABS),
and RMI subject to grant award
Additional Grant
Authorization
(this request)
$1,937,248 Budget authorization for the balance of
funds and authorization to execute related
service agreements
Total $2,997,248
JUSTIFICATION
The Port’s Clean Ports project addresses two key maritime sectors serving the Port and is
designed to accelerate pathways to reduce emissions and meet the goals of the Port’s Century
Agenda, the Northwest Port’s Clean Air Strategy, and the Maritime Climate and Air Action Plan.
The project provides funding for a variety of activities including: a vessel activity and fuel
inventory; harbor vessel modernization feasibility study; fuel demand and infrastructure analysis;
a fuel supply acquisition strategy; methanol bunkering desktop exercise; a fuel strategy roadmap;
community engagement to help ensure neighboring communities and interested parties are
informed and educated about future fuels (vital to long-term success as new fuels are deployed
in the region); and an assessment of workforce impacts to inform the Port’s Workforce
Development strategies. In addition, the grant provides for project management to ensure
successful execution of all grant conditions.
As a one-time funding opportunity, the EPA Clean Ports Program award is a unique opportunity
for the Port to leverage federal funds and significantly expand existing resources. This award
enables the Port to work with nationally recognized partners and develop strategies to increase
the region’s competitiveness.
Given the ongoing uncertainty of federal grant funds, staff have conferred with project partners
and has confirmed their interest in continuing to move forward with the project. The Port expects
to establish measures to manage funding risk including increased frequency of grant
reimbursement, contractual conditions specifying grant-contingent funding, increased
monitoring and reporting frequencies, and contractor risk evaluations.
Diversity in Contracting
The Maritime Environment and Sustainability Department will evaluate opportunities for women
and minority-owned business enterprise (WMBE) services for consultant contracts directly
managed by the Port under this grant pursuant to Port policies and grant requirements.
COMMISSION AGENDA – Action Item No. 8f Page 3 of 5
Meeting Date: April 22, 2025
Template revised June 27, 2019 (Diversity in Contracting).
DETAILS
This project will help catalyze the transition to next generation vessels and prepare the region,
maritime industry, communities, ports, and workforce for the transition to advanced clean fuels.
Please see Attachment 3 for a description of the Scope of Work and Schedule.
Cost Breakdown Prior Request
This Request
Total Project
Personnel -
$455,523
$455,523
Contracts -
$721,600
$721,600
Subawards $1,060,000
$750,000
$1,810,000
Other Costs (participant support:
translation, meals, etc.)
-
$10,125
$10,125
Total $1,060,000
$1,937,248
$2,997,248
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Do not authorize the expenditure of funds
Cost Implications: ($1,937,248 - $2,997,248) – loss of funds
Pros:
(1) Reduces staff time for project delivery support, potentially freeing time for other
efforts.
Cons:
(1) The Port would need to identify alternative sources of funding and/or phase project
elements over several years to complete a similar body of work.
(2) If previously authorized elements were to proceed, a failure to authorize significant
remaining portions of the grant project would require renegotiation of the grant scope,
which would likely jeopardize overall project funding.
(3) If previously authorized elements were to proceed, a failure to authorize significant
remaining portions would mean there would be no project management support for
sub-recipient projects previously approved.
(4) Port does not gain the benefit of these analyses. Without additional understanding of
these issues, the Port is not prepared for this transition to future fuels.
This is not the recommended alternative.
Alternative 2 – Delay authorization of funds.
Cost Implications: unknown
Pros:
(1) Delaying authorization of funds may provide for additional clarity regarding the
availability of funds with program changes at the federal level.
COMMISSION AGENDA – Action Item No. 8f Page 4 of 5
Meeting Date: April 22, 2025
Template revised June 27, 2019 (Diversity in Contracting).
Cons:
(1) Delaying implementation of the project could impact the Port’s ability to deliver the
project within the timeframe of the grant award and may require renegotiation of the
schedule with EPA.
(2) Delays in authorization of this request would negatively impact the previously
authorized portions of work. Project management support for sub-recipient projects
and grant administration to meet all necessary conditions would be limited.
(3) The Port already expects to implement measures to manage funding risk, including but
not limited to contractual conditions specifying contingent funding, increased
monitoring and reporting frequencies, and contractor risk evaluations.
This is not the recommended alternative.
Alternative 3 – Authorize the use of funds, including contingency funds, and execution of service
agreements needed for implementation of the grant award.
Cost Implications: $1,937,248
Pros:
(1) Allows the Port to leverage federal funding to advance Port goals.
(2) Allows the Port to follow through on current commitments to EPA.
(3) All project subrecipients have confirmed their interest and ability to proceed with the
project within the uncertain funding environment.
(4) A combination of Port instituted contract provisions, increased frequency of project
reimbursement, and contingency funds will reduce financial exposure and risk.
(5) Through successful grant project implementation, the Port intends to gain critical
market, community and technical insights to guide the agency in the fuels of the future
transition.
Cons:
(1) The Port will need to closely monitor funding availability and subrecipient expenditures
considering uncertainties in the current federal funding environment.
(2) Availability of funding through the term of the grant award is uncertain at this time and
conditions are highly unpredictable.
This is the recommended alternative.
FINANCIAL IMPLICATIONS
Cost Estimate
/Authorization Summary Capital
Expense
Total
COST ESTIMATE
Original estimate $0
$0
$0
AUTHORIZATION
Previous authorizations 0
$1,060,000
$1,060,000
COMMISSION AGENDA – Action Item No. 8f Page 5 of 5
Meeting Date: April 22, 2025
Template revised June 27, 2019 (Diversity in Contracting).
Current request for authorization 0
$1,937,248
$1,937,248
Total authorizations, including this request 0
$2,997,248
$2,997,248
Remaining amount to be authorized $0
$0
$0
Annual Budget Status and Source of Funds
This work is fully funded by the EPA Climate and Air Quality Planning Grant and the grant does
not require matching funds. This request is to authorize the expenditure of those funds.
Financial Analysis and Summary
Project cost for analysis $2,997,248
Business Unit (BU) Environmental and Sustainability Programs
Effect on business performance
(NOI after depreciation)
Up to $2,997,248 in expenditures will be offset by grant
revenues.
IRR/NPV (if relevant) n/a
CPE Impact n/a
Future Revenues and Expenses (Total cost of ownership)
n/a
ATTACHMENTS TO THIS REQUEST
(1) Grant award
(2) Scope of Work Summary
(3) Presentation slides
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
May 21, 2024 – The Commission determined a competitive process was not appropriate,
authorized the Port to specify three named non-profit partners as sub-awardees in this
grant application, and authorized the Port to execute resulting service agreements
pending funding award.
