Clean Air PPT
Northwest Ports Clean Air Strategy Implementation Charlie Sheldon Seaport Managing Director Stephanie Jones Stebbins Senior Manager, Seaport Environmental Programs Sarah Flagg Seaport Air Quality Program Manager 1 Briefing Overview Background: The Data Northwest Ports Clean Air Strategy Strategy Implementation: Ocean-going vessels Cargo-handling equipment Rail Harbor Vessels Clean Truck Program 2 Puget Sound Region Air Toxics Risk Apportionment 3 Source: Puget Sound Clean Air Agency Puget Sound Maritime Air Emissions Inventory 2005 activity-based inventory Spans ~140 miles south-to-north; 160 miles west-to-east Close coordination with Canada First to include greenhouse gases 4 Diesel Particulate Matter Puget Sound Clean Air Agency Region Maritime Emissions = 29% 5 Source: 2005 Puget Sound Maritime Air Emissions Inventory Diesel Particulate Matter Port of Seattle Seaport 6 Source: 2005 Puget Sound Maritime Air Emissions Inventory A/r /' Port= of Seattle Northwest Ports poFlT 0A Clean Air Strategy TACOM i [W Port or Sew/e Part of Tacmm Voncwvo. 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I*l Environment Environnement7 Canada Canada Strategy Approach Focused on diesel particulate matter and greenhouse gases Clear, measurable performance measures Ocean-going vessels (OGV) Cargo handling equipment (CHE) Trucks Rail Harbor vessels Encourage ongoing innovation instead of mandated solutions Short Term (2010) and Long Term (2015) targets 8 Greenhouse Gas Reductions GHG reductions will be achieved through co-benefits associated with reducing diesel particulate matter Co-benefit actions include: Switching to electricity or alternative fuels Operational efficiency improvements Support goals established by State, Provincial, and Federal governments 9 Strategy Performance Measures 2010 2015 Ocean-Going Use distillate fuels Meet IMO standards Vessels at berth Cargo-Handling 2000 model year Best available Equipment engine or better emission control devices Rail Expedite EPA Comply with EPA's SmartWay 2007 locomotive rules standards Trucks 1994 or better 80% to meet 2007 emission standards emission standards Harbor Vessels Low-sulfur fuels, Advanced technology new technologies pilot projects 10 Implementation Commitments Develop implementation details with stakeholders Verification and reporting requirements 2008 report expected mid-2009 Identify and secure funding for incentives Port Metro Vancouver stakeholder consultation 2008; adoption to be considered in 2009 Begin implementing the Strategy, seek to accelerate performance standard schedules 11 Implementation Status Ocean-Going Vessels Shore power for Princess Cruises and Holland America Line vessels At-Berth Clean Fuels Vessel Incentive Program Pilot program with Puget Sound Clean Air Agency $1,500 incentive for use of 0.5% sulfur fuel in auxiliary engines while at a Port of Seattle berth Will reduce emissions of SO by 95% and PM by 60% 2 3 lines participating Hapag-Lloyd Matson APL Continue to support EPA proposal to IMO for a Sulfur Emission Control Area (ECA) 12 Implementation Status Cargo-Handling Equipment Cleaner Fuels All terminals use ultra-low sulfur diesel fuel 2 terminals use a 20% biodiesel blend Electrification 26 electric ship to shore cranes 2,560 plug-ins for refrigerated containers Equipment Retrofits 169 Level 1 retrofits installed (all eligible equipment) Recently received a U.S. EPA grant for advanced retrofits Equipment Replacement Terminals specifying on-road engines for new equipment 13 Implementation Status Rail BNSF SIG Yard Electrification First in North America to install wide-span, electric rail mounted gantry cranes SmartWay participation at rail yards Support U.S. EPA Locomotive and Marine Diesel Engine Rule Encourage railroads to retrofit switcher locomotives and to use ultra-low sulfur diesel 14 Implementation Status Harbor Vessels Focusing on harbor tug operations Cleaner fuels Foss Maritime and Crowley voluntarily switched to lower sulfur fuels in tug operations Cleaner engines Foss Maritime is developing a hybrid tug engine 15 Clean Truck Program 16 Clean Truck Program Other Port Clean Truck Efforts Port of Oakland Implementing California Air Resources Board Drayage Truck Rule Pulled $5 million in funding due to declining revenue Ports of Los Angeles and Long Beach Currently in litigation Significant funding issues Clean Truck fees delayed by Federal Maritime Commission Prop 1B state funding delayed due to collapse of bond market and state budget deficits California Air Resources Board Drayage Truck Rule as a backstop 17 Clean Truck Program Overview Industry Situation Drayage Facts Strategy Performance Measures Stakeholder Outreach Program Options Replacement Options Removal Options Legal Small Business Assistance Parking Next Steps 18 Clean Truck Program Industry Situation Cargo volumes are declining worldwide Port of Seattle volumes are price sensitive Increasing cost $30 per FEU would divert 30% of cargo (Leachman study, 2007) Cargo diversion would result in loss of family wage jobs 30% cargo diversion is equivalent to 2,700 jobs lost 19 POS Ten-Year TEU History 2,500,000 Diversion from SoCal due to congestion 2,000,000 1,500,000 Market downturn 9-11 Attacks 1,000,000 500,000 - 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 20 Clean Truck Program Drayage Facts Estimated fleet size: 1,800 - 2,000 trucks Average model year (2008) Port of Seattle: 1996 Statewide: 1996 PSCAA Region: 1998 20%-25% of drayage trucks are older than 1994 21 Clean Truck Program Strategy Performance Measures 2010: All trucks must EPA Particulate Matter Emission Standards be 1994 or 0.7 newer 0.6 2010 Performance Measure 0.5 2015: Emission Standard (g/bhp-hr) 0.4 2015 Performance Measure 0.3 80% of trucks 0.2 must be 2007 0.1 or newer (100% 0 1990 and older 1991 1994-2006 2007-2010 in 2017) Truck Model Year 22 Clean Truck Program Program Options Industry meets 2010 standard with no funding assistance or container fees Outside financial assistance provided to industry to meet 2010 standard through loans/grants/container fees Implement a licensing or employee model to meet 2010 standard and support costs through loans/grants/container fees Port purchases and operates 400 drayage trucks supported through direct Port investment in new trucks 23 Clean Truck Program Replacement Options Cascade Sierra Solutions Bridge to a Better Future low interest lease program Recondition and retrofit MY 2001-2004 trucks scheduled for scrap in California Monthly lease payment is $350-$450 $100 goes to a savings plan to purchase a 2007 or newer truck 15%-25% fuel savings and lower maintenance = $5k savings Up to 60% emission reductions from pre-1994 trucks Loans Investigating low-interest loan options Grants Possibility of State and/or Federal grant funding 24 Clean Truck Program Removal Options Scrap pre-1994 trucks Issues Prevent relocation of old trucks to other areas How are owners compensated for asset and at what value? Possible legal challenges Estimated cost $2-$4 million Possible Mechanisms Puget Sound Clean Air Agency develops program to scrap pre- 1994 trucks Seeking grant opportunities for a truck buy-back program Ask owners to scrap pre-1994 trucks when they purchase a newer truck Aggressively seek grant funding assistance 25 Clean Truck Program Legal Southern California ports' programs are currently involved in two separate pieces of litigation 1. Federal district court in southern California involving the American Trucking Association 2. Federal court in D.C. against the Federal Maritime Commission Port of Seattle doesn't have statutory authority to regulate truck air emissions 26 Clean Truck Program Legal Port leases its terminals to terminal operators Terminal operators are granted occupancy and control of their leasehold areas for the term of their leases Terminal operators are able to control who comes onto their leaseholds and they can turn away non-compliant drayage trucks 27 Clean Truck Program Stakeholder Outreach Advisory Group Purpose: to provide input on Clean Truck Program implementation options Members include industry, regulatory agencies, labor, community groups, and environmental organizations 3 meetings to date (11/21, 12/17, 1/20) Evening Drayage Driver Workshops Purpose: to get input from drivers and share program information Held at South Seattle Community College Georgetown campus on 1/14, 1/22, and 1/26 Ongoing discussion throughout with owner/operators, trucking companies, shippers, carriers, environmental groups, labor groups, regulatory agencies, and other ports. 28 Clean Truck Program Small Business Assistance Led by Office of Social Responsibility Identifying and coordinating small business resources and financing Established a Trucker Liaison position Organize resources and information Provide one-on-one assistance to truckers 29 Truck Parking South Harbor Truck Parking Work Group Purpose: To provide input on south harbor neighborhood parking and routing issues. Partners include City, SDOT, community, industry, labor, and environmental groups. 5 meetings to date Completed recommendations Status of Terminal 10 interim truck parking facility Selection of a temporary site at Terminal 25 South 3 acres Available August 2009 Likely free or virtually free 30 Clean Truck Program Next Steps Implement Strategy Performance Measures 2010: Assist in industry replacement of pre-1994 trucks Work with Cascade Sierra Solutions (where practical) 2015: Continue to evaluate long-term Clean Truck Program options with Advisory Group Develop and coordinate small business assistance resources Maintain stakeholder partnerships Continue to seek collaborative solutions with industry Aggressively seek grant funding assistance 31
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