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
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Puget Sound Region Air Toxics
Risk Apportionment



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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%







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Source: 2005 Puget Sound Maritime Air Emissions Inventory

Diesel Particulate Matter
Port of Seattle Seaport



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Source: 2005 Puget Sound Maritime Air Emissions Inventory

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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
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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
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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
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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)
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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
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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
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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

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Clean Truck Program


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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
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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
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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
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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
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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
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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

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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
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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
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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
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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
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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
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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.
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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

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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
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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
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