What does Sustainability mean?

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1 Christopher Cannon, Chief Sustainability Officer June 28, 2017

2 What does Sustainability mean? The ability to meet today s global economic, environmental and social needs without compromising the opportunity for future generations to meet theirs. - Brundtland Commission, 1987

3 Green Port Building Blocks Environmental responsibility and economic growth are not always mutually exclusive Management of environment has: Enabled Port growth by allowing expansion projects to move forward Allowed cargo owners to market green logistics Helped to push science of environmental source controls further along Addressing localized community impacts important part of being environmentally responsible (indirect impacts hard to measure, but cannot be ignored)

4 Green Port Building Blocks For Air Quality, Green Port Policy has lead to: Significant reduction of Criteria Pollutant Emissions (NOx, SOx, PM, CO, VOCs) and Health Risk Fair share contribution to US EPA regional air quality attainment goals Carbon footprint reduction co-benefits to meet Climate Change targets set by local, state and federal government Clean Air Action Plan (CAAP) is primary comprehensive air quality control program Emissions Inventory is a key CAAP planning tool

5 POLA Annual Emissions Inventories Annual Activity-based 2001, (2016 nearly complete) Source categories Ships, harbor craft, cargo handling equipment, trucks, locomotives Pollutants PM PM 10 PM 2.5 DPM NO x SO x HC CO Greenhouse gases CO 2 CH 4 N 2 O CO 2 e Coordinated w/carb, SCAQMD, & EPA

6 Role of Emission Inventories will Evolve Broader participation necessary New carbon footprint focus Energy consumption & supply Efficiency tracking Short lived climate pollutants Tropospheric ozone Black carbon Methane HFCs

7 Clean Air Action Plan First Comprehensive Port-Based Plan Set consistent source-specific standards (Ships, Trucks, CHE, Trains, Harbor Craft) Set reduction Health Risk targets from Port Operations Set reduction targets fair share to reducing regional mass emissions Enable Port development & optimization Updated Health Risk Reduction Standard 85% by 2020 (compared to 2005 baseline) Emission Reductions Standard NOx 22% by 2014 and 59% by 2023 SOx 93% by 2014 (and 2023) DPM 72% by 2014 and 77% by 2023

8 Clean Air Action Plan: The Future Development of 2017 CAAP Update underway Mobile/Stationary source strategies Zero emissions/near-zero emissions Greenhouse gases Energy Supply chain efficiencies

9 CAAP: HEAVY-DUTY TRUCKS Banned older trucks 95% pollution reduction Upgrade substantially completed 2 years early

10 Clean Truck Program New Proposals under consideration Beginning in 2018, require new trucks entering Drayage Truck Registry to meet MY2014 standards or newer SMOG check pilot program with State Air Resources Board Green Truck Priority Access Program Beginning 2023, require new trucks entering Drayage Truck Registry to meet Ultra Low NOx standards or better Differentiated Rate Structure for trucks that are not low-nox (transition year target?) Differentiated Rate Structure for trucks that are not zeroemissions (2035) Technology feasibility assessment every 3 to 5 years

11 Zero Emission White Paper Living Document Agencies and Industry support and use Recommendation to provide Near- Zero and Zero Emission equipment on an annual basis is being satisfied through State funding opportunities Goal to have 200 NZE & ZE equipment in use by 2020.

12 OCEAN-GOING VESSELS Shore Power Vessel Speed Reduction Cleaner Fuels

13 Shore Power Basics Emissions Reduced All auxiliary engine pollutants reduced to zero (locally) at ship while plugged in Does not control auxiliary boiler emissions Total GHG reduction depends on grid makeup Projected Penetration CARB shorepower rule % of regulated fleets (container, reefer, & cruise)

14 Shore Power Alternatives? Barge-Based Systems are currently available AMECS - ACTI METS-1 CAEM On-dock Systems still being tested Emissions Reduced At-Berth (one to two engines) Projected Penetration Currently two systems operating Third company coming (STAX)

15 CAAP: CARGO-HANDLING EQUIPMENT Replacements ahead of regulation Set Standards in Lease Agreements

16 Cargo Handling Equipment: New Proposals under consideration Transition to up to 100% Zero Emissions by 2030 Energy Planning and Carbon Footprint Reduction Green Terminal Recognition Programs Supply Chain Efficiency

17 Cargo Handling Equipment

18 CEC Everport Advanced Cargo Handling Demonstration Project Everport - Zero Emission Pathway Concept

19 Container Terminal Support Facility Concept Chassis Pool Former LAXT Site Terminal Island Wheeled Storage Cell Phone Holding Yard / Bobtails Potential Solar Operation Gate Facility Gate Facility

20 Data Solutions Portal Concept Spring Pilot Project Partnership with GE Transportation One terminal, two steamship lines, and one string of ships Channeled, secure access to data that supply chain stakeholders need Benefits supply chain efficiency, predictability, and reliability Keeps the supply chain flowing

21 Digital Portal Concept Terminal Operator U.S. Customs and Border Protection Shipping Line Beneficial Beneficial Cargo Beneficial Cargo Beneficial Owner Beneficial Owner Cargo Cargo Beneficial Owners Cargo Beneficial Owners Cargo Beneficial Owners Cargo Beneficial Beneficial Owners Cargo Owners Cargo Owners Owners Port Information Portal Pilot Project Trucking Companies Chassis Chassis Providers Providers Chassis Providers Chassis Other Providers Data Sources Chassis Providers Railroads

22 VeRail Near-Zero Emissions Locomotive Demonstration Development and Demonstration of a Near-Zero emissions, 2,100Hp Switcher Locomotive, powered by Compressed Natural Gas Much cleaner than the current highest EPA Locomotive Standard (Tier 4): 90% reduction in PM 90% reduction of NOx 20% reduction in GHG Project Partners/Cost: VeRail - $3+ Million Combined Ports - $600,000 SCAQMD - $1,000,000 Southern California Gas Company $500,000 Pacific Harbor Lines - In-Kind Services

23 Maersk Ocean-Ocean Going Vessel Energy Efficiency Measurement Demonstration Evaluate and quantify the benefits of energy efficiency improvements for ocean-going vessels 12 Maersk 9,000 TEU containerships retrofitted $125,000,000 Maersk Radical Retrofit Cost Combined Port Contributions $1 Million Radical Retrofit Program - will retrofit existing vessels with multiple energy efficiency technologies such as redesigning the bulbous bow of each vessel, replacing existing propellers, install boss fin caps, raise bridge, and derating main engine to be more efficient at lower speeds.

24 International Collaboration Working Together to Reach Our Goals World Ports Climate Initiative (WPCI) Pacific Ports Clean Air Collaborative (PPCAC) World Association for Waterborne Transport Infrastructure (PIANC) Port Sustainability Guidance Document West Coast Ports Collaborative Sustainable Construction Guidelines Conferences and Symposiums Staff Exchanges

25 San Pedro Bay s Changing Role Transitioning from Landlord Port to Partnering Port model Deeper Collaboration is Necessary Broader Dialogue with Supply Chain Stakeholders Balancing critical environmental needs with economic imperatives

26 Thank you

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