Managing members of the
Northwest Seaport Alliance (NWSA) - a marine cargo operating partnership of the Port of Seattle and Port of Tacoma, and the fourth-largest container gateway in North America - are to discuss a project to build a liquefied natural gas (LNG) bunkering facility during an upcoming meeting on Tuesday 2nd August.
Commissioners will hear a joint presentation about The Northwest Seaport Alliance's clean air strategy, the state of Puget Sound's air quality and current federal emission control regulations, as well as discuss the use of alternative fuels, including LNG, and the proposed LNG bunkering facility in the South Harbor of Tacoma.
Presenters include Puget Sound Clean Air Agency, U.S. Environmental Protection Agency, Washington State Utilities and Transportation Commission and Puget Sound Energy (PSE).
The presentation will be followed by requests to fund the third air emissions inventory, which is completed every five years to track progress toward maritime-related clean air goals, and approve easement agreements to support the PSE LNG project in Tacoma.
The meeting begins at 11:30 a.m. in Room 104 of the Fabulich Center, 3600 Port of Tacoma Road in Tacoma. The meeting will also be streamed live on the alliance's website.
Tacoma LNG bunkering project
Action Requested
Authorization for the Chief Executive Officer or his designee to enter into the following agreements:
1. Bunkering Easement Agreement
2. Pipeline and Control Measures Easement Agreement
Synopsis
Puget Sound Energy, Inc. (PSE), a Port of Tacoma tenant, has a current lease to construct an LNG facility on port property. At the request of Totem Maritime Alaska, Inc. (TOTE), PSE is requesting an easement to construct a pipeline and loading platform on the current TOTE leased terminal. The pipeline and loading platform will be used to fuel TOTE vessels and may also be used to load barges to serve other marine customers in the future.
Background
- On September 14, 2014, the Port of Tacoma executed a lease with PSE to build and operate an LNG facility.
- The LNG from this facility will provide TOTE and potentially other marine customers a cleaner-burning fuel option. The facility will also regasify LNG for reinjection into the PSE natural gas distribution for peak shaving purposes during high demand periods.
- After the environmental review of the proposed development, a final EIS was published in November 2015. Permission to construct and operate the facility requires the approval of more than 15 federal, state and local regulatory agencies. PSE has obtained many of the required permits with several others pending.
- The PSE Lease provides access to the Hylebos Waterway to construct and operate a barge loading facility. However, on January 28, 2016, PSE filed a formal stipulation with the Shorelines Hearings Board and notified the City of Tacoma that it will not pursue its planned in-water development in the Hylebos Waterway approved under the Shoreline Substantial Development Permit. The PSE Stipulation provides that PSE will not engage in "any in-water or over-water construction, dredging or fuel bunkering in the Hylebos Waterway authorized by SSDP No. SHR 2015-40000246123 other than (a) work to improve three existing storm water outfalls to meet new, more stringent storm water requirements and (b) removal of 4,973 square feet (approximately 37%) of overwater decking from the existing pier (pilings to remain in place)."
- PSE has entered into a long-term Fuel Supply Agreement to supply LNG fuel to TOTE. Totem Ocean Trailer Express (TOTE) is planning to meet its ECA requirements by fuelling its vessels with LNG produced at PSE's future Tacoma facility.
- PSE requested a Bunkering Easement and a Pipeline and Control Measures Easement to construct a pipeline from PSE's LNG facility to the TOTE Terminal and to construct a loading platform on the Blair Waterway to fuel TOTE vessels and, should it obtain permits to do so, potentially load barges that serve other marine customers.
- The NWSA Managing Members approved both Easement requests during the 10-6-15 public meeting.
- PSE requested a Bunkering Easement and a Pipeline and Control Measures Easement to construct a pipeline from PSE's LNG facility to the TOTE Terminal and to construct a loading platform on the Blair Waterway to fuel TOTE vessels and, should it obtain permits to do so, potentially load barges that serve other marine customers.
- The NWSA Managing Members approved both Easement requests during the 10-6-15 public meeting.
Project details
The Bunkering Easement Agreement is an exclusive use easement.
- Easement Fee will replace lost rent from TOTE for the same area.
- Provides for the construction and exclusive operation of a loading platform on the Blair Waterway to fuel TOTE vessels and, and if permitted, load barges.
- Easement area includes approximately 0.51 acres.
- PSE is responsible for all construction, operation and maintenance costs.
- Insurance requirements: $50 M General Liability, $10 M Pollution.
- Easement termination unless otherwise agreed occurs at 1) termination of TOTE Lease, 2) termination of PSE LNG Facility Lease, or 3) unresolved impairment to use of waterways or uplands in the port area.
- Subject to NW Seaport Alliance Tariff dockage fees.
The Pipeline and Controls Measures Easement Agreement is a non-exclusive use easement.
- Pipeline is underground within TOTE Lease Premises, thus no additional fee charged.
- The easement area is 25' wide and 11-16' deep from the terminal surface.
- Pipeline is directionally bored and will have minimal impact on terminal use/activities.
- PSE is responsible for all construction, operation and maintenance costs.
- Insurance requirements: $50 M General Liability, $10 M Pollution.
- Easement termination unless otherwise agreed occurs at 1) termination of TOTE Lease, 2) termination of PSE LNG Facility Lease, or 3) unresolved impairment to use of waterways or uplands in the port area.
- Provides PSE control over area as required by LNG regulations.
- New permanent structures in the Easement Area and Control Area must comply with LNG codes and regulations.
Project Objectives
- Advance the NWSA's clean air strategy.
- Support ECA compliance and TOTE's commitment to convert vessels to cleaner-burning LNG fuel.
- Provide an easement area for the construction of a pipeline to transport LNG to the Blair Waterway.
- Provide an easement area for the construction of a LNG loading platform.
- Support the future growth of LNG as cleaner burning alternative marine fuel.
Schedule
Completion date estimated on or before fourth quarter 2018.
Alternative options
The alternative location on the Blair Waterway provides an alternative to developing a barge loading facility on the Hylebos Waterway. The Puyallup Tribe Shoreline Hearings Board appeal opposed a loading platform on the Hylebos Waterway. Any development action involving the use of the alternative location on the Blair Waterway is subject to a separate environmental review.
