Sustainable Ports and Carriers

1. Sustainable Portsand Carriers U.S. Environmental Protection Agency Office of International Affairs

2. Overview: Sustainable Ports and Carriers • Environmental Challenge: Effects of Air Pollution from Ports and Carriers • Drivers: Economic Growth and Trade Lead to Increased Maritime Traffic • Actions: Cooperation & Collaboration: Assist Partners and Implement Solutions

3. Environmental Challenge:Human Health and Air Pollution • Reducing sulfur in fuel directly reduces PM in air emissions. • Benefits of ultra-low sulfur diesel (> 15ppm) combined with advanced emission control technology: • In heavy-duty highway diesel vehicles, benefits are 16 times the costs, and prevents an estimated 8,300 premature deaths annually. • In non-road diesel vehicles, benefits are 40 times the cost. • Annual benefits expected to exceed $150 billion versus costs of approximately $7 billion.

4. Environmental Challenge:Concerns about Air Pollution U.S. Mobile Source Emissions Projected for 2030 Percentage of Total Emissions Source: EPA OTAQ Air Pollutants

5. Driver: Exponential Increase in Global Trade Since 1948 Years Source: WT0, 2006

6. Example of a Driver: Economic Growth Leads to Increases in Container Traffic Source: U.S. DOT MARAD, April 2006

7. Actions to Address the Challenges • Support International Treaty Negotiations • Implement EPA’s National Clean Diesel Campaign • Clean Air Act Requirements • Clean Ports USA • SmartWay Transport Partners • Develop and Promote Sustainable Ports and Carriers Partnership

8. Action #1: MARPOL Annex VI • MARPOL Annex VI establishes global standards applicable to air emissions from ships - entered into force in May 2005. • Negotiations are underway at the IMO to develop more stringent NOx and SOx standards and to expand coverage to PM and existing engines. • Expected completion date in 2008.

9. Action #1: Review of MARPOL Annex VI • IMO's Working Group will meet in London in April 2007 • Proposals will be introduced that may require the use of significantly cleaner fuels in the marine market. • IMO Member States need to take a dramatic step forward in addressing PM, NOx, and sulfur if the maritime industry is to see uniform standards. • Uniform standards will provide a stable and predictable regulatory landscape. • The U.S. is very active in these international negotiations.

10. Action #1: SOx Emission Control Areas • MARPOL Annex VI provides a mechanism for the creation of SOx Emission Control Areas (SECAs) where ships must use low-sulfur fuel (15,000 ppm) or alternative mechanisms such as scrubbers. • The U.S., Canada, and Mexico are collaborating to address ship source air pollution in North America. • To inform the process, EPA is conducting several key evaluations: • Emissions inventory updates • Air quality analysis • Global fuel analysis

11. Action #2: EPA’s Clean Ports USA: Learn from Port Successes • Leadership: Port of Long Beach and Port of Los Angeles • San Pedro Bay Clean Air Action Plan • Installed diesel oxidation catalysts • Piloting hydraulic hybrid yard hostlers • Using cleaner fuels • Replacing trucks • Cold-ironing vessels • Benefits: • Reduce PM emissions by 50% • Reduce NOx emissions by 12,000 tons/yr • Extend engine life and reduced maintenance costs • Reduce risks and improve community health www.epa.gov/cleandiesel/ports

12. Action #2: EPA’s SmartWay Transport Intermodal Carrier Savings Projected SmartWay Benefits www.epa.gov/smartway

13. Action #3: Sustainable Ports and Carriers Partnership • Intended to be an international collaboration to improve environmental performance of ports and carriers. • Build upon the Pacific Ports Air Quality Collaborative experience. • Longer-term goals might include: • Develop sound Environmental Management Systems for port/harbor projects • Develop common port safeguards to improve port development activities • Provide investment opportunities for the private sector • Look beyond the Pacific Rim

14. Panama Air Quality Monitoring • USEPA and USAID worked with Panama institutions to establish an air monitoring station at Canales in 2006. • The California Air Resources Board trained local technicians. • The Canal Zone Authority contracted with the University of Panama in 2006 to establish and manage a second air monitoring station. • USEPA and USAID will provide resources and technical assistance to Panama to build and manage a third air monitoring station in 2007.

15. Collaboration & Cooperation on a Range of Environmental Issues • Initiate partnerships to address port and maritime industry issues: • Improve Air Quality • Improve Water Quality • Promote Healthier Communities • Protect Resources • Reduce Environmental Risks • Implement Safe, Secure & Efficient Operations • Promote Economic & Trade Growth • Improve Development Planning & Communications

16. Partnership to Reduce Risk of Invasive Species • USEPA is working with the World Conservation Union to analyze risks associated with new introductions of invasive species at U.S. ports • Learning networks among port authorities promote best management practices for detection and prevention of threatening species • Learning networks improve early response to new introductions of harmful species

17. Model Program: Partnership forClean Fuels and Vehicles • A model for the Sustainable Ports and Carriers Partnership • Global, voluntary partnership launched at the World Summit for Sustainable Development in 2002. • To eliminate lead in gasoline and reduce sulfur in diesel and gasoline, while introducing cleaner vehicle standards. • 90+ partners from government, industry, NGOs and international organizations. • Examples of Results • Lead phased out in Africa and Indonesia. • Mexico regulation to reduce sulfur in diesel & gasoline by 2011. • Retrofit projects in China, India, Thailand, Chile and Mexico. • Action plans in place for other countries to reduce sulfur in fuel. www.unep.org/PCFV

18. Successful Partnerships Require Participation and Long-Term Commitments THANK YOU Patrick Cotter U.S. EPA OIA (202) 564-6414 Cotter.Patrick@epa.gov