Maritime Incentives For Chnaging Practices

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Green Flag Program Voluntary Vessel Speed Reduction

Rick Cameron Manager of Environmental Planning Port of Long Beach


Purpose of the Program • Slowing Ship Speed Reduces NOx Emissions from Vessels

POLB Port Related NOx Emissions (2002) Rail Locomotives 13% (4,533 tons)

Ocean-Going Vessel 36% (12,834 tons)

Heavy-Duty Vehicles 26% (9,264 tons)

Cargo Handling Equipment 12% (4,234 tons)

Harbor Craft 13% (4,603 tons)


Memorandum of Understanding Between: • Port of Long Beach • South Coast Air Quality Management District (AQMD) • Pacific Merchant Shipping Association • Port of Los Angeles • California Air Resources Board • Marine Exchange of Southern California


Vessel Speed Reduction Zone (12 Knots 20 Nautical Miles from Point Fermin)


Port of Long Beach Green Flag Program Incentives & Recognition • Implemented as a tariff incentive • Operators whose fleets are 90% compliant for a 12-month period receive a 15% dockage reduction for the following year • Vessels that are 100% compliant for a 12-month period qualify to fly the Port of Long Beach Green Flag for the following year


Monitoring Compliance The Marine Exchange of Southern California is responsible for measuring compliance with the Voluntary Vessel Speed Reduction Program


Tracking Compliance at the Port of Long Beach • Compliance Data is collected from Marine Exchange • Vessel data is downloaded into the Port of Long Beach tracking system • Automatic Reports can be generated by Operator, Vessel, and Terminal


Program Performance 100% 100% 90% 90% 80% 80% 70% 70% 60% 60% 50% 50%

2005 2005 2006 2006

40% 40% 30% 30% 20% 20% 10% 10% 0% 0% Vessel Vessel Compliance Compliance 100% 100% Compliant Compliant Vessels Vessels

Operator Operator Compliance Compliance


2006 Compliance Highlights • 120 operators were 90% compliant and qualified for reduced dockage fees in 2007 • 507 POLB vessels were 100% compliant and qualified to fly the 2006 Port of Long Beach Green Flag • Average Vessel Compliance for 2006 was 81% an increase of 13% from 2005. • Compliance by December 2006 was up to 85% • NOx reduction estimated to be greater than 1 ton per day


Clean Air Action Plan • VSR is addressed in measure OGV-1 • Extending from 20 nm out to 40 nm Will be implemented as a lease requirement • Tariff requirement if compliance doesn’t reach 95% by end of 2007


Thank You! Questions?


Marine Emissions: Addressing Local and Global Challenges

Tom Plenys Research and Policy Manager

Coalition for Clean Air Clean Ships Conference San Diego, CA February 8, 2006


Source: ‘Sources of Transport of Air Pollution from Ships: Current Understanding, Implications, and Trends’, Dr. James J. Corbett & Dr. Paul Fischbeck.


Source: ‘Sources of Transport of Air Pollution from Ships: Current Understanding, Implications, and Trends’, Dr. James J. Corbett & Dr. Paul Fischbeck.


Goods Movement Emissions Into Future as a % of Overall California Emissions

Source: ARB’s Draft Goods Movement Emission Reduction Plan, December 2005. Note: Chart reflects only internationally related goods movement emissions and does not include domestic related contribution from trucks and locomotives.


Contribution of Port-Related Sources to CA’s South Coast Basin Diesel PM10* 25

(tpd)

20 15 10 5

23%

29%

42%

0 2001

2010 Ports Basin

*Assuming ports recent baseline inventories and 2003 AQMP growth and control factors. Source: Courtesy of the South Coast Air Quality Management District

2020


Goods Movement Emissions in CA % of Diesel PM Emissions by Source 2001 Trains 10%

Other 3%

2020 Trucks 15%

Trains 4%

Trucks 6%

Harbor Craft 14%

Cargo Handling Equipment 5%

Ships 43%

Harbor Craft 24%

Cargo Handling Equipment 1%

Ships 75%

Source: ARB’s Draft Goods Movement Emission Reduction Plan, December 2005. Note: Based on internationally related goods movement emissions and does not include domestic related contribution from trucks and locomotives.


Goods Movement Emissions in CA % of NOx Emissions by Source 2001 Trains 19%

2020 Trains 11%

Other 1%

Trucks 31%

Harbor Craft 21%

Cargo Handling Equipment 2%

Harbor Craft 20%

Cargo Handling Equipment 5%

Ships 23%

Trucks 12%

Ships 55%

Source: ARB’s Draft Goods Movement Emission Reduction Plan, December 2005. Note: Based on internationally related goods movement emissions and does not include domestic related contribution from trucks and locomotives.


Similar Trend in Other Parts of the World • In the EU, land-based sources of emissions (e.g. power plants, on-road transport) are decreasing while ship emissions grow SO2 Emissions (Kilotonnes) 10000 8000 6000 4000 2000 0

NOx Emissions (Kilotonnes)

Land-based

15000

Land-based

Ships

10000

Ships

5000 0

2000

2010

2020

2000

2010

Source: IIASA, ‘Baseline Scenarios for the Clean Air for Europe Programme’, Final Report, February 2005.

2020


Health Effects of Diesel Particulate Matter Cancer

Asthma & other respiratory illnesses

Particulate Related Mortality Other Health Hazards

Diesel Exhaust: NOx, PM, ~40 air toxics


SCAQMD Cancer Risk Study

1,531/Million


Diesel PM Cancer Risk Ship Auxiliary Engines’ Hotelling at POLA and POLB

Source: ARB, ‘Diesel Particulate Matter Exposure Assessment Study for the Ports of Los Angeles and Long Beach’, April 2006.


Health Effects of NOx • NOx causes a wide variety of health & environmental impacts • These compounds can react to form other toxic chemicals • NOx causes respiratory problems: - So. Cal. study found exposure can lead to significant decreases in lung function growth among children - Recent Norwegian study linked NOx to elevated risk of lung cancer u

• It may also cause birth defects


Statewide PM and Ozone Health Effects due to Goods Movement • ARB estimates annually: • 2,400 premature deaths •

Ships responsible for up to 360 premature deaths/yr.

• 5,100 cases of acute bronchitis • 360,000 lost work days • 1,100,000 school absence days

$19 BILLION PER YEAR


MARINE FUEL • Bunker fuel predominant •

USEPA: International avg. 27,000 parts per million sulfur

ARB: >75% of auxiliary engines use residual oil Photo courtesy of John Barbieri

• One ship at berth can generate one ton of NOx and

almost 100 pounds of PM each day • Pollution released from ships visiting the Ports of

LA and LB in a single day is roughly the same as 1,000,000 vehicles Sources: Final Regulatory Support Document: Control of Emissions form Compression-Ignition Marine Diesel Engines at or Above 30 Liters per Cylinder, January 2003, p. 1-9; Proposed 2003 State and Federal Strategy for the California State Implementation Plan, August 25, 2003, p. II-G-2.


Stringency of Adopted NOx Rules for New Engines (Percent Reduction Based on Adopted New Engine Standards) On-Road Trucks

Off-Road Engines

Locomotives

Harbor Craft

Ships 6%

39% 58%

98%

97%

Source: Courtesy of the South Coast Air Quality Management District


Barriers & Opportunities INSUFFICIENT REGULATORY ACTION • IMO – No PM requirements; NOx limits – most engines complying since 2000 • USEPA has not exercised its authority over foreign-flag ships • USEPA needs to expedite implementation of Tier 2 emission standards for all large marine vessels • Regulatory authorities should require ships to plug-in to shore-side power while docked; pursue lower sulfur fuels in propulsion engines and emission controls


Barriers & Opportunities (cont’d) PORTS… • Ports can exercise their power to require emissions reductions through leases • As owners of property and as lease negotiators, Ports have significant power to control emissions w/o violating federal law … AND

THEIR TENANTS

• Ports, tenants and operators must invest in pollution clean-up programs as part of their ongoing budgets - historically they have not done so • Positive examples do exist (ex. China Shipping)


Mitigation Strategies DOCKSIDE POWER: • Require electrification of all new piers and incentives for cleaner power supplies • Require 70-80% of all ship visits to use shorepower Eliminates a ton of pollution per day for each ship that plugs in

EX: POLA, POLB, Juneau, Sweden, others


Mitigation Strategies (cont’d) CLEANER FUELS: • Require and synch auxiliary and main engines to run on no higher than 1,000 ppm sulfur while at berth (if not using electric power) and in coastal waters CARB’s adopted rules require 0.5% sulfur in auxiliary engines to reduce emissions, but will evaluate feasibility of 0.1% next year

• Long term harmonization with on-road diesel fuels EX: Maersk, CARB regulations, NYK Line, USS POSCO, Carnival Cruise Lines, Long Beach/OOCL, EU, MAN B&W


Mitigation Strategies (cont’d) • EMISSIONS CONTROLS: Use of selective catalytic reduction (SCR) can reduce NOx emissions by > 80%; plus other viable retrofit technologies EX: > 100 ships w/ SCR in N. Europe

• NEW BUILDS: All new ships should be built with dockside power capability; and, cleanest available engine technology and retrofits EX: New ships by Evergreen

• INCENTIVES & FINANCING: Refining initiative, preferred lease criteria and power rates, user fees, differentiated fees


CONCLUSION • Feasible emission reduction strategies exist and must be applied to existing and new sources • Ports, cities and regulators have the ability and responsibility to require that these technologies be implemented – Requirements must be mandated by regulations or required as part of the terminal lease. Voluntary measures have proven insufficient.

• Dedicated funding stream necessary to pay for and incentivize a major shift to clean practices (e.g. port investment bills)


National Clean Diesel Campaign & SmartWay Transport

Trish Koman Program Manager, Clean Ports USA Office of Transportation and Air Quality US Environmental Protection Agency


SmartWay Transport • Innovative Partnership with the freight industry • Creating business case for companies to improve the environmental performance of freight operations & supply chains


National Clean Diesel Campaign • Two components – Regulatory – Innovative • Technology-driven • Cost-effective • Helping communities achieve public health goals


Regulatory Strategy for NEW Diesel Engines and Fuels Highway

Tier 2 Lightduty (1999)

2007/2010 Heavy-duty (2001) Clean Nonroad Diesel (2004)

Common Aspects-• Systems approach– ULSD enables clean technologies • Very large environmental benefits • By 2030, PM reduced by ~250,000 tons/year, NOx by ~4 million tons/year • Annual benefits expected to exceed $175 billion versus costs of approximately $11 billion

Nonroad Locomotive/Marine and C3 Marine


US Standards Comparison Ships vs. Other Sources


NCDC and SmartWay Programs Sectors: • Marine Ports • Construction • School buses • Freight • Agriculture Objective: By 2014 reduce emissions from the over 11 million engines in use


• Public-private partnerships to encourage reductions in diesel emissions at ports – Incentives for action to improve public health and increase efficiency – Cost-effective emission reductions from all diesel equipment in and around marine ports – Leveraging business relationships to improve environmental performance – Software to allow companies to measure their environmental footprints – Creative marketing and recognition for companies willing to make improvements


Reduction Strategies • Technology Strategies – – – – –

Refuel Retrofit Repair/Rebuild Repower Replace

• Operational Strategies – – – –

Idle Reduction Improved Port Efficiency Use of On-shore Power Considering Air Quality Impacts of Security Changes – IT solutions, Chassis Pools


Clean Ports USA • EPA has funded 9 port-related projects – $1.9 million EPA funds and $2.5 million match

• Selected Projects – Puget Sound/Holland America Line Sea Scrubber Project – Port of San Francisco Cruise Ship Low Sulfur Fuel – Port of Los Angeles Pacific Ports Air Quality – Port of Long Beach Hybrid Yard Hostler Project – SmartWay Drayage Truck Project with Small Business Administration loan – Quantifier Tool, Emissions Inventory, Case Studies


Shipper/Carrier Relationship • Cargo owners looking to their transportation providers for more than just goods movement – Looking for improved environmental performance – Ocean freight, ports, drayage, etc. all part of their growing transportation footprints

• Cargo owners under increasing pressure and scrutiny to reduce emissions footprints – Primarily focused on CO2 – May look for other improvements as well

• EPA programs helping stakeholders find win/win solutions – Emissions reductions, fuel savings, recognition


Supply Chain Transportation Footprint • Cargo owners looking closely at supply chain footprint – Need to understand each mode: • Ocean vessels, ports, drayage, rail, trucks, etc.

– Need to measure and baseline activity – Need to identify opportunities to improve

• EPA committed to help industry move forward – – – –

Plans for integrated supply-chain project Tools to measure footprint, various modes Ability to quantify improvement options Incentives, recognition, marketing, etc.


Incentives and Program Support • Funding – Energy Policy Act 2005 • Diesel Emission Reduction • $1 Billion over 5 years

– Innovative finance

• Technology – Demonstrations and pilot projects – Verification of emissions reductions and technologies – Lower fuel costs from energy efficiency

• Recognition and awards – Assistance with publicity – Leveraging from SmartWay Transport Partners


Partner Recognition


SmartWay Transport Partners


Marketing


Moving Forward • Focus Federal leadership on reducing diesel emissions from sources at ports – Source categories where national and international solutions are most cost-effective

• Work with shipping lines to develop programs that reduce diesel emissions • www.epa.gov/cleandiesel • www.epa.gov/smartway


Information concerning the applied incentives to curb ship emissions from vessels calling upon Swedish ports and other incentives Clean Ships: Advanced Technology for Clean Air San Diego, California, USA 7 – 9 February 2007

Stefan Lemieszewski Swedish Maritime Administration


























SHARP ELECTRONICS CORPORATION

“GREEN” COMPANY IN SUPPLY CHAIN Mark Servidio Vice President - Logistics & Supply Chain Planning

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SHARP ELECTRONICS CORPORATION International Electronics Company - $24B in Sales Sharp’s Major Products Sold in the USA: •Aquos LCD •Microwaves •Copiers •Faxes •Monitors •Solar Panels •Air Purifiers •Air Conditioners

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SHARP ELECTRONICS CORPORATION “GREEN” COMPANY–

• It Is Sharp’s Goal To Become A “GREEN” Company. Some Examples Of Our Global Achievements: 1) All Sharp Manufacturing Site And Major Sales Acquired ISO14001 Environmental Management System Certification. 2) Sharp Products Get Many Eco Labels In Worldwide, Including Energy Star Program. 3) Sharp Products Are Designed And Manufactured To Minimize Hazardous Chemicals And Meet EU Rohs Requirement. 4) Sharp Has Intra-company Guideline For Environmental Conscious Design For Products And Device, And Applied It To Globally.

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SHARP ELECTRONICS CORPORATION “GREEN” COMPANY –

• It Is Sharp’s Goal to Become a “GREEN” Company. Some Examples of Our Global Achievements: 5) Sharp Set Up Global Environmental Philosophy And Set Up "Contribution To Conservation Of The Global Environment" In "Sharp Group Charter Of Corporate Behavior". 6) Sharp Set Up Global Environmental Strategy Called "Super Green Strategy“ Aiming To Become An Environmentally Advanced Company. 7) Sharp Big Size LCD TV (for Japanese Market) And Its LCD Panel (For Oversea Market) Is Produced In Kameyama Factory In Japan Which Is Environmentally Conscious Factory. 4


SHARP ELECTRONICS CORPORATION “GREEN” COMPANY –

• It Is Sharp’s Goal to Become a “GREEN” Company. Some Examples of Our Global Achievements – Sharp Is Promoting CSR (Corporate Social Responsibility) Activities And Promote Environmental And Social Contribution Activities Globally. 8)

9) Sharp Published "Environmental And Social Report" Annually, And Every One Can See It In Following Website. Http://Sharp-world.Com/Corporate/Eco/Csr_report/Index.Html

WE TAKE THIS SERIOUSLY! 5


SHARP ELECTRONICS CORPORATION “GREEN” COMPANY – 1. 100% Recycle Of Wastewater 2. Installment Of Cogeneration System 3. Installment Of Solar Panel 4. Introduction Of Super Conductivity System

5.Achieve Zero Landfill Disposal In The First Launched Year, 2004. 6.Production Of Environmentally Friendly Products 7.CO2 Emissions Reduction By Integrated Manufacturing

Sustainable Management Pearl Award, 3rd Japan Sustainable Management Awards (FY2004) 6 Grand Prize, 1st Nikkei Monozukuri Awards (FY2004)


SHARP ELECTRONICS CORPORATION “GREEN” COMPANY –

This Report Is Divided Into Four Chapters. 1. Special Feature, 2. Highlights, 3. Sharp And The Environment, 4. Sharp And Society, 56 Pages of Activities

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SHARP ELECTRONICS CORPORATION IN THE US Sharp Joined SmartWay In October 2004. We Were One Of The Winners Of The 2006 SmartWay Excellence Award SmartWay Transport Is A Voluntary Partnership Between Various Freight Industry Sectors And EPA That Establishes Incentives For Fuel Efficiency Improvements And Greenhouse Gas Emissions Reductions. There Are Three Primary Components Of The Program: • Creating Partnerships • Reducing All Unnecessary Engine Idling • Increasing The Efficiency And Use Of Rail And Intermodal Operations.

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SHARP ELECTRONICS CORPORATION SMARTWAY ACTION PLAN ¾ ¾ ¾ ¾ ¾ ¾ ¾ ¾ ¾ ¾ ¾ ¾

Carrier Notification On SmartWay Strict Pickup Times On LTL Shipments Implement A No Idle On Trucks When Waiting To Be Loaded Mexico/Canada C-TPAT Certification Reduce Emissions On Forklifts Reduce Light Emissions Using Motion Sensors Implement ISO14001 Implement Monthly PM Schedule On All Forklifts Increase Intermodal Shipments SmartWay Sign Placed Outside Logistics Centers Employee Training Employee Education 9


SHARP ELECTRONICS CORPORATION ACCOMPLISHMENTS • No-idle Policy Reduced ¾ CO2 - 5.8 Tons ¾ PM - 0.0006 Tons ¾ NOx - 0.12 Tons • Increased Use Of Intermodal ¾ CO2 – 606.3 Tons ¾ PM – 0.5 Tons ¾ NOx – 12.3 Tons ¾ Saved 54,670 Gallons Of Diesel Fuel

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SHARP ELECTRONICS CORPORATION NEXT STEPS • Sharp Ships about 55,000 FEU Worldwide. Electronics Companies about 600,000 FEU • It Is A Concern With This Volume of Product Moving, The Environmental Impact Ocean Vessels Have • We Are Here To Work With Our Ocean Carriers in Developing A Program Like SmartWay • We Are Interested and Will Reward (With Additional Business) Those Carriers That Contribute To Reducing Greenhouse Gases and Help Us Achieve Our “GREEN” Company Goals • We Have a Member Of Sharp Corporation’s Ocean Carriers Negotiation Team at This Meeting 11


SHARP ELECTRONICS CORPORATION OUR VISION FOR CARRIERS • Commit To Low Sulfur Bunker Fuels, And Other Fuel Improvements • Commit To Engine Improvements Such As Slide Valves, Fuel Injection, EGR And Other New Technologies • Commit To Scrubbers, Catalysts, Bonnets And Other After-treatments • Consider Other Innovations Such As Cold-ironing, Speed Reduction, Hull Coatings, Supplemental Wind And Solar Energy Sources • Commit to Long Term Solutions And More Sustainable Operations • Commit to PM, NOx, and CO2 Reductions Goals 12


SHARP ELECTRONICS CORPORATION OUR VISION FOR CARRIERS WE ARE IN THIS TOGETHER AND CAN ALL BENEFIT TOGETHER

THANK YOU

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