Approaches to Address Emissions Associated with Freight. South Coast Air Quality Management District October 2018

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1 Approaches to Address Emissions Associated with Freight South Coast Air Quality Management District October

2 Our Challenge The Los Angeles area has historically suffered from some of the worst air quality in the country Los Angeles c We ve made significant progress, but still suffer from poor air quality Worst ozone in the country Second-worse fine particulate matter (PM 2.5 ) Los Angeles 2017

3 Reducing NOx Emissions is the Key to Attaining Air Quality Standards Causes ozone; contributes to PM 2.5 Over 80% of the basin s NOx emissions from mobile sources Limited authority to regulate mobile sources NOx emissions (tons/day) Top 5 Emitter Categories for NOx, 2012 and Heavy -duty Diesel Trucks Off-road Equipment Ships & Commercial Boats Passenger Cars Light-duty Trucks

4 Projected Sources of NOx Emissions in 2023 and 2031 Heavy-Duty Diesel Trucks Off-Road Mobile Equipment RECLAIM Ocean Going Vessels Locomotives Cars/Light-Duty Trucks/SUVs Aircraft Manufacturing and Industrial Residential Fuel Combustion Heavy-Duty Gas Trucks Commercial Harbor Craft Service and Commercial Buses Medium-Duty Trucks Recreational Boats Other Needed by 2023 Needed by 2031 Source: 2016 AQMP Summer Planning Emissions Inventory December

5 Addressing Mobile Source Emissions Limited authority to directly regulate Can regulate indirect sources Emissions from mobile sources associated with a facility Voluntary measures can also provide a path for emission reductions Incentive programs Replace/repower/retrofit Technology demonstration and commercialization

6 Facility-Based Mobile Source Measures 5 Facility-Based Mobile Source Measures included in 2016 AQMP Airports Ports New/Redevelopment Warehouses Rail Yards Primary goal is to reduce NOx emissions Can include regulatory and voluntary components

7 Summary of May 2018 Board Direction Sector Airports Ports New/Redevelopment Warehouses Rail yards Direction Pursue MOUs to implement airport clean air action plans Pursue MOUs to implement specific CAAP measures; pursue introduction of cleaner vessels Continue to work with stakeholders to develop rule concepts and preliminary costs/benefits Develop rule concept; conduct economic impacts study to inform rule concept Pursue rulemaking; explore potential for new agreements/mous beyond the 1998 and 2005 agreements 7

8 AIRPORTS Initiated discussions with the airports All airports have so far expressed their commitment to developing own clean air plans and MOU approach Draft MOU framework prepared by AQMD staff submitted to the airports Received initial verbal comments/concerns on the draft MOU framework Staff has offered assistance to airports in developing their clean air plans Inventory Baseline/Forecast Evaluation of control strategies Follow-up meetings with airports being planned for October on the airports plan development and MOU framework

9 PORTS Initiated discussions with the Ports and provided potential draft MOU framework Prospective SIP creditable CAAP measures meeting EPA s Integrity Elements Ports to commit to performance targets for CAAP measures that are: Reasonable and achievable Technically feasible and cost-effective Maintain ability to use incentive funding Public process for MOU development AQMD to commit to backstop any potential emission reduction shortfall Recordkeeping/Reporting for tracking progress

10 NEW DEVELOPMENT & REDEVELOPMENT Our Board stated concerns about the following: Scope of proposed emission reduction strategies Type of projects affected (e.g. affordable housing projects) Effects on real-estate prices Job and economic impacts The Board directed staff to continue to work with the Working Group on developing emission reduction strategies Pursuing a study to address the concerns Job and economic impacts Scope of proposed strategies Board Concerns Effects on real-estate prices Type of projects affected 10

11 WAREHOUSE DISTRIBUTION CENTERS Begin Indirect Source rulemaking activities Interim Analyses Anticipated Emission Reductions Cost of Compliance Economic Impact Study + 3 rd party review Industrial Real Estate Market Impact Technological Availability Continue exploring non-regulatory options New CEQA Air Quality Mitigation Fund Warehouse Guidance Document (with CARB) Green Delivery (e.g., opt-in fee to fund cleaner fleet) 11

12 RAIL YARDS Begin Indirect Source Rulemaking Any ISR approved by the Board would require harmonization with federal regulatory requirements before the rule is enforceable Continue to explore possible additional agreements beyond the existing 1998 and 2005 MOUs Some initial concepts for warehouses may be applicable for railyards Voluntary fleet certification to facilitate reducing emissions from trucks at railyards 12

13 Ocean-Going Vessels are the Greatest Source of NOx and DPM at the Ports (2016) 23% 6% 22% 10% 51% 47% 4% 6% 10% NOx 38.3 tons/day 21% DPM 0.6 tons/day Ocean Going Vessels Cargo Handling Equipment Heavy Duty Vehicles

14 Challenges of Controlling Ship NOx Emissions Ships represent a significant source of NOx emissions Substantial NOx reductions needed beyond existing regulations and programs Near-term deployment of Tier 3 vessels at local ports not expected Substantial ship orders made prior to 1/1/2016 keel laid date Future regulations will not provide short-term benefits Existing Programs are not adequate to address our air quality needs New and Innovative Incentive Programs Are Needed for Reducing Ship Emissions

15 Prince Rupert Tianjin Dalian Sample route CMA CGM between China and U.S. Pacific Coast Oakland Qingdao Shanghai Long Beach Concept Partner with Asian ports on shared routes to incentivize cleaner vessels on these routes

16 Concept: Partner with Chinese Ports & Other Entities to Leverage Incentives Identify top ports in China that are on the same routes as Ports of LA/LB Collaborate with regional authorities/ports/shipping lines to develop a program where each participating port provides an incentive for a call by a cleaner vessel Each port s individual incentive is then leveraged to encourage changes in shipping behavior Re-routing of existing Tier 3 vessels Encourage construction of Tier 3 vessels on pre-2016 keels Encourage retrofits of existing vessels cleaner than Tier 2

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