ITEM NO: __7a_Supp ____
DATE OF
MEETING:_January 12, 2010__

Seaport Air Quality
Program Update
Mike Burke       Sarah Flagg
Senior Manager, Container   Seaport Air Quality
Leasing and Operations     Program Manager

Briefing Overview
Northwest Ports Clean Air Strategy
Implementation
Cargo-handling equipment
Rail
Harbor vessels
ABC Fuels
Clean Truck Program
Green Gateway Initiative
2

Seaport Air Quality Program
Collaborative, voluntary approach
Pollutants of concern:
Diesel particulate matter
Greenhouse gases
Reduce impacts on public health and the
environment while maintaining a vibrant
seaport
Fact-based
Looks for both emission reductions and
goods movement efficiencies
3

Regional Port Emission
Contributions
Port contributions to regional PM emissions from
all sources:
Tacoma: 7%
Seattle: 9%
Oakland: 6%
Los Angeles: 9%
Long Beach: 9%
Houston: 3.4%
New York/New Jersey: 1%
4

Diesel Particulate Matter
Port of Seattle Seaport


Source: 2005 Puget Sound Maritime Air Emissions Inventory

5

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Cargo-Handling
Equipment
Significant grant funding from PSCAA, WA
Dept. of Ecology, and U.S. EPA
Level 1 and Level 2 exhaust retrofits
Expect all eligible CHE to be retrofitted by
end of Q1 2010
Level 1 retrofits reduce particulate matter
emissions by 25%
Level 2 retrofits reduce particulate matter
emissions by 50%
7

Rail and Harbor Vessels
Rail:
Switcher engine anti-idling at Terminal 86
U.S. EPA grant to repower 3 BNSF switcher
engines operating in the Seattle/Tacoma area
Harbor Vessels:
Supporting PSCAA grant application to
repower the Andrew Foss tug

8

ABC Fuels
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
Eligible lines must call 5 or more times/year
8 Participating Lines:
Hapag-Lloyd      COSCO
Matson         Hamburg Sud
APL          Norwegian Cruise Line
Maersk         Princess Cruises
236 calls in 2009 (30% of all vessel calls)
64 metric tons of sulfur reduced
9

Clean Truck Program
Northwest Ports Clean Air Strategy Truck Performance
Measures:
12/31/2010: All trucks must meet Federal 1994 PM emission
standard
12/31/2015: 80% of trucks must meet Federal 2007 PM emission
standard (100% by 2017)
Mandatory
Fee Free
Provides incentives
OSR Small Business Assistance
Extensive stakeholder outreach/engagement
Fleet age analysis (8/2007)
76% of trucks are MY 1994 or newer
10

Particulate Matter Emissions
from Drayage Trucks
Drayage operations to/from terminals and intermodal yards
contribute to port emission profiles:
Port of Tacoma: 1%
Port of Seattle: 3%
Port of Oakland: 7%
Port of Los Angeles: 40%
Port of Long Beach: 36%
Port of Houston: 5.6%
Port of New York/New Jersey: 12%
Why do the percentages differ?
Distance from terminals to intermodal yards
Percent of containers moved by truck vs. on-dock rail
Terminal turn times
Regional traffic congestion
11

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.
Recommendations presented to Commission and City Council in
May 2009
Terminal 25 South interim truck parking facility
3 acres
Opened July 1
No fees
Used by 75 trucks, 15 cars (typical Monday 6 AM)
SDOT continuing to study recommendations
12

Implementation Elements
MTO lease amendments
Seaport Truck Scrappage and Retrofits for Air
in Puget Sound (ScRAPS)
Drayage Truck Registry
Communications and Outreach Plan
Slow Start Plan
January 1, 2011: Begin Mandatory Clean
Truck Program at all Port of Seattle
container terminals
13

Seaport Truck
Seaport Truck Scrappage and
Scrappage and Retrofits
Retrofits for Air in Puget Sound
for Air in Puget Sound
(ScRAPS)
(ScRAPS)
Dennis McLerran
Dennis McLerranAmy Fowler
Amy Fowler
Presented to the Board of CommissionersPresented to the Board of Commissioners
of the Port of Seattleof the Port of Seattle
January 12, 2010     14
January 12, 2010

Why is this Program Being Offered?
Older trucks create 100 times more air
pollution than modern trucks
As of December 31, 2010, no pre-1994 engine
trucks will be allowed to access terminals at
the Port of Seattle
Port of Seattle, Agency, and other program
partners have created financial incentives for
up to 400 truck owners to upgrade from old,
dirty trucks to newer, cleaner, retrofitted trucks
15

Program Overview
A $5 Million program, launched in two
phases, that will:
Offer incentives to owners of container-
hauling trucks that have pre-1994 engines
to scrap them
Offer late-model replacement container-
hauling trucks that are already equipped
with pollution-reducing exhaust retrofits to
those who scrap their trucks
16

What Trucks Are Eligible for
Scrapping in Phase I?
Pre-1994 engine
Used in 2009 to haul containers to/from
Port of Seattle
Currently licensed
Currently insured

17

How Much is the Scrappage "Bounty"?
(How Much is my Old Truck Worth?)
Whichever is higher:
The "book" value of the old truck on the open
market
$5000
Owners who disagree with valuation can
get appraisal at own expense from
specified appraiser

18

What if I Still Owe Money on My
Old Truck?
Must owe less than scrappage bounty
on any existing loans at time of
scrappage
Must satisfy any existing liens before
scrapping

19

What do These Old Trucks Look Like?



20

Where is the Money Coming From?
Phase I, focused on trucks serving Port of Seattle:
Port of Seattle grant for scrappage ($1.5M) and retrofits ($200K)
Department of Ecology grant for retrofits ($350K)
Agency funds for retrofits ($148K)
Phase II, in early 2010, expands focus to trucks serving
Port of Tacoma and City of Tacoma and adds:
Federal Department of Transportation grant to City of Tacoma for
scrappage and retrofits ($2.5M)
Cascade Sierra Solutions loans for retrofit installations ($335K)

21

How Will the Program Work?
Cascade Sierra Solutions (CSS) is running program for
Agency
Owner goes to CSS's Seattle Green Truck Center to apply to scrap
truck
If not buying a replacement truck, or if buying a replacement truck
through another local dealer, get truck scrapped at Arrow Metals &
bring scrappage receipt to CSS to get check
If buying a replacement truck through CSS:
Select replacement truck from CSS's list & apply for financing; CSS has
exhaust retrofit installed on replacement truck
Arrange pick-up appointment for replacement truck
Get truck scrapped at Arrow Metals & bring scrappage receipt to CSS to
sign papers & pick up replacement truck

22

Cascade Sierra Solutions Seattle
Outreach Center
Startup funding assistance
provided by Agency in
FY09/FY10
Located near Port of Seattle on
SW Michigan Street
Offers full line of EPA SmartWay
fuel-saving retrofit technologies
Offers exhaust retrofit
technologies to reduce emissions
Grand opening held October 17th

23

Example CSS Truck Replacement
1990 truck scrappage valuation            <5000>
2005 replacement truck from CSS          $27,900
Exhaust retrofit (~ $5000 value)         
Final cost of replacement truck             $22,900
(5 years @ $475/mo)


24

If I Scrap my Old Truck, do I Have
to Buy a Replacement Truck?
No
Can take scrappage bounty payment and
leave drayage business


25

Do I Have to Buy a Replacement
Truck Through Cascade Sierra
Solutions?
No
Can go to any truck dealer to purchase truck with
1994 or newer engine
Cascade Sierra Solutions can offer financing to
buyers who might not be able to get loans
elsewhere
Other dealers will work through Cascade Sierra
Solutions to have the free exhaust retrofit installed

26

Results To Date
Program launched
November 18th
Program launched November 18th
Port of Seattle Trucker
Port of Seattle Trucker Resource FairResource Fair
CSS had already been Well attended and lots of interest
taking applications
CSS had already been taking applications
First truck scrapped
First truck scrapped November 19th!November 19th!
15 trucks scrapped in first four weeks25 trucks scrapped by
end of 2009
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Green Gateway Update
Working with DNV to verify May 2009 Herbert
Engineering study
Requested Herbert to conduct additional
analysis:
Asian ports of Ho Chi Minh, Busan, and Tokyo
N.A. destination cities of New York, Atlanta, and
Norfolk
Vessel utilization from 40% to 100%
Vessel eco-speed
Truck trips up to 300 miles inland
Develop computer-based analysis tool     29