6e supp
Item No. 6e_supp Date of Meeting __June 8, 2010 At-Berth Clean Fuels (ABC) Vessel Incentive Program Phil Lutes, Deputy Managing Director, Seaport Ellen Watson, Environmental Management Specialist II, Seaport Environmental Programs Overview Program History Program Overview 2 2009 Results 2010 1st Quarter Results Projected 2010 Results Program Highlights Program Budget/Costs 2 Diesel Particulate Matter Port of Seattle 3 Source: 2005 Puget Sound Maritime Air Emissions Inventory Program Overview Incentive program in partnership with Puget Sound Clean Air Agency Covers ~50% of cost differential for using low sulfur fuel (<0.5% sulfur)while at berth 2009 per call incentive: $1,500 2010 incentive: $2250 Targeted at frequent callers (> 5 port visits annually) 4 Program Overview Audit program established to verify ABC Fuels Program reporting Third-party audit of two vessels per carrier per year Audit involves review of fuel logs and bunker delivery notes as well as visual inspection of fuel tanks 5 ABC Program Results 2009 6 container lines: APL, COSCO, Hamburg Sud, Hapag-Lloyd, Maersk, & Matson 2 Cruise lines: Norwegian & Princess 235 Qualifying Visits (33% of frequent callers) $352,500 paid in incentives @ $1500/visit Total sulfur reduction: ~68 Metric Tons Total annual cost: ~$380,000 6 2009 Emission Reductions 7 ABC Program Results 1Q 2010 7 container lines 2 Cruise lines 82 Qualifying Visits $184,500 payout @ $2250/visit Sulfur reduction: 22 Metric Tons 8 2009 vs 2010 YTD Visits 9 Projected 2010 Results Qualifying Vessel Visits: 350 Metric Tons of Sulfur Reduced: 100 MT Participating Carriers 8 container carriers, 2 cruise lines Incentives to be paid: $787,500 10 Program Budget 2010 2010 Budget Authorized $300,000 Current Request for $541,500 Authorization*: Total 2010 Authorizations $841,500 * $135,500 of $541,500 was approved in 2009 but not used until 2010 11 2010 Program Expenses 1st Quarter Incentive Payouts $184,500 Estimated Payouts $603,000 Q2 Q4 2010 Admin & Audit Costs $54,000 12
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