California s Emission Reduction Plan for Ports and International Goods Movement

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California s Emission Reduction Plan for Ports and International Goods Movement Alternative Maritime Power Conference Los Angeles Harbor Hotel April 24, 2006 California Environmental Protection Agency Air Resources Board

Emission Reduction Plan Development December 2005 draft plan Ports and international goods movement March 2006 proposed plan Expanded to include all goods movement Regional analyses added Plan approved by Board on April 20, 2006 2

Emission Reduction Plan Goals Meet federal air quality standards Reduce community exposure to toxic air contaminants Mitigate anticipated growth in trade and associated emissions Identify funding needs 3

Emission Reduction Plan Features By 2010, reduce emissions to 2001 levels By 2020, cut diesel PM risk 85% Reduce NOx in South Coast 30% in 2015, 50% in 2020 Apply strategies statewide to aid in attainment 4

Goods Movement Contribution to Statewide Emissions in 2005 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Diesel PM SOx NOx ROG 5

Key Emission Sources from Goods Movement Heavy diesel trucks Locomotives Ships Harbor craft Cargo handling equipment 6

Diesel PM from Goods Movement by Emission Source 2005 2020 Ships Trucks Trucks Locomotives Harbor Craft Ships Cargo Equipment 53 tons/day 36 tons/day 7

Basic Approach of Plan Cleaner engines and fuels Fleet modernization (retrofit or replace) Speed reduction and idling limits Shore-based power Potential mechanisms include rules, fees/incentives, market concepts, enforceable agreements 8

Ships New Strategies Cleaner new engines and fuels Add-on emission controls Operational changes Shore-based electrical power in port (also called cold ironing) 9

Ships at Sea Cleaner propulsion engine fuel Retrofit controls for existing engines Cleaner new ships in California service 30% Lower Emissions Best Available Controls Ship Visits by Year 2010 2015 2020 20% 50% 40% -- 25% 25% 50% 10

Ships In/Near Port ARB rule for cleaner auxiliary engine fuel (Adopted December 2005) Strategy to ramp up use of shore power Ship Visits by Year 2010 2015 2020 Shore Power 20% 60% 80% Alternate Measures 20% 40% 20% 11

Auxiliary Engine Fuel Regulation for Ocean-Going Vessels Within 24 nautical miles of coastline Requires use of marine gas oil or 0.5% sulfur distillate fuel by January 1, 2007 Requires use of 0.1% sulfur distillate fuel by January 1, 2010 Fuel supply review in 2008 12

Auxiliary Engine Fuel Regulation (cont.) Allows for an Alternative Compliance Plan Encourages use of shore power Includes Noncompliance Fee Provision 13

ARB s Cold-Ironing Evaluation Report (March 2006) Most cost-effective for container, passenger, and refrigerated cargo ships Prime candidate ports: LA, Long Beach, Oakland, San Diego, SF, and Hueneme 2/3 of capital costs & benefits at LA/Long Beach Not cost-effective for ships with irregular or infrequent visits to California Will require significant infrastructure investments 14

Details of Cost- Effectiveness Analysis Estimated ship cost: $500,000 to $1.5 million Estimated shore cost: $3.5 million per terminal plus $1.5 million per berth Analyzed 0.5% and 0.1% sulfur distillate fuel Analyzed all pollutants reduced (NOx, SOx, and PM), NOx-only, PM-only Analyzed three scenarios: All ships visiting a port Ships visiting 3 or more times per year Ships visiting 6 or more times per year 15

Emission Benefits from Cold-Ironing NOx Reductions From Cold-Ironing 60 50 TPD 40 30 Hotelling w/o Cold-Ironing Total Reductions are 100,000 tons 20 10 Hotelling with Cold-Ironing 0 2008 2010 2015 2020 * Based on 20%, 60%, and 80% shore power targets 16

Harbor Craft New Strategies ARB fleet rule for existing engines Shore-based electrical power in port Tighter U.S. EPA emission standards for new engines (or ARB adoption) 17

Cargo Equipment New Strategies ARB rule for new and existing equipment (Adopted December 2005) 85% PM control on all engines if additional retrofits verified 18

Cargo Handling Equipment Regulation (Yard Trucks) New equipment must meet performance standards by January 1, 2007 Repower/replace in-use equipment or retrofit with verified controls starting Dec. 31, 2007 Most pre-2003 yard trucks replaced by end of 2010 19

Other Yard Equipment (Cranes, Top Handlers, Dozers) New equipment must meet performance standards by January 1, 2007 Repower/replace in-use equipment or retrofit with verified controls starting Dec. 31, 2007 Oldest engines (pre-1998) must comply first Longer compliance schedule than for yard trucks due to diversity of equipment 20

Trucks New Strategies Proposed port truck modernization program Developing rule for privately-owned truck fleets Enhanced enforcement of truck idling limits in communities ARB rule for international trucks (Adopted January 2006) 21

ARB s Port Truck Modernization Report (April 2006) Basic elements in plan Incentives to replace oldest trucks and retrofit controls on the rest ARB rule to push owners to take advantage of incentives Terminals key participants 22

Port Truck Modernization Report (cont.) Plan would significantly reduce emissions in communities Funding and enforcement mechanisms needed 23

Rail Yard Locomotives New Strategies Upgrade switcher/local yard locomotives Multiple off-road engines (gen( gen-sets) Diesel-electric electric engines (Green Goats) Alternative fuels 24

Long-Haul Locomotives New Strategies National Tier 3 locomotive standards Should include 90%+ PM/NOx control, rebuild standards, OBD, anti-idling idling devices Tier 3 locomotives use greatly accelerated in California service 25

Other Strategies Operational efficiency Land use decisions Project and community specific mitigation Port programs 26

Benefits of Plan to Public Health Avoid 820 annual premature deaths by 2020, reduce other health impacts Reduce risk by 85% in impacted communities Provide reductions that are necessary to attain air quality standards 27

Implementation Strategies New Regulations Pursue Incentives/Funding Opportunities Explore other mechanisms to meet plan goals 28