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California Environmental Protection Agency

Air Resources Board

November 21, 2013Coast Guard Island Alameda, CA

Deep Draft IndustryOcean-Going Vessel Clean Fuel Regulation

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What is the Air Resources Board?

The state agency charged with:

• Coordinating efforts to attain and maintain ambient air quality standards

• Conducting research into the causes of, and solution to, air pollution

• Monitoring and regulating the sources, and reducing the emissions of gases, that cause climate change

(Adapted in part from Section 39003 of the Health and Safety Code. )

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What is the Air Resources Board? (cont.)The Mission:

To promote and protect public health and ecological resources through the reduction of air pollutants while recognizing and considering the effects on the economy of the state.

The Goals :

• Provide Safe, Clean Air to All Californians

• Protect the Public from Exposure to Toxic Air Contaminants

• Reduce California's Emission of Greenhouse Gases

• Base Decisions on Best Possible Scientific and Economic Information

• Provide Quality Customer Service to All ARB Clients

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Railroad and Marine Enforcement Section (RMES)

RMES Regulatory Enforcement:

• Commercial Harbor Craft

• Cargo Handling Equipment

• Ocean-Going Vessels

• Transportation Refrigeration Units

• Railroad Memorandum of Understanding

• Marina Fuels

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Commercial Harbor Craft (CHC)

Vessel Types Inspected:

• Tug • Tow • Work • Crew• Supply• Commercial Fishing• Barge• Dredge• Excursion

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Cargo Handling Equipment (CHE)

Equipment Inspected:

• Top Pick Lifts

• Side Pick Lifts

• Forklifts

• Yard Trucks

• Rubber-Tired Gantry

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Ocean Going Vessels (OGV)

Equipment Inspected:

• Boilers

• Main Engines

• Generators

• Shore Power

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Transportation Refrigeration Units (TRU)

Equipment Inspected:

• TRU Gen-sets

• Located at ports and rail yards

• Verifying compliant labeling and engine MY

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Railroad Memorandum of Understanding (MOU)

Equipment Inspected:• Locomotives

Focused on:• Idle Reduction Devices (IRD)• Visible Emissions • Excessive Idling • Fuel Sulfur content

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Marina Fuels Program

Staff collect diesel fuel samples at California fuel docks

Samples are analyzed for sulfur and aromatics

All known diesel fuel docks are inspected annually

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The Ports of California

RMES inspects state-wide

• San Diego• Los Angeles• Long Beach• Hueneme• San Francisco• Oakland

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OverviewOcean-Going Vessel Regulation

Background and Status

Implementation Activities

2012Amendments

Contacts

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Background and Status

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• 8 years in development• Consultative process • Adopted by ARB in July 2008• Implementation began July 2009• Provided immediate and significant

emissions reductions• Diesel PM: 83% reduction• SOx: 96% reduction• NOx: 6% reduction

• Established a “bridge” to ECA in 2015

California’s Ocean-Going Vessel Clean Fuel Regulation

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Clean Fuel Requirements¨ Require the use of cleaner

fuels within a 24 nautical mile zone of the California coastline

¨ July 1, 2009– Marine gas oil (1.5%), – Marine diesel oil (0.5%)

¨ August 1, 2012– Marine gas oil (1.0%)– Marine diesel oil (0.5%)

¨ January 1, 2014– Marine gas oil (0.1%)– Marine diesel oil (0.1%)

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Regulation Provides a Safety Exemption

¨ Safety exemption applies if– The Master determines that compliance would endanger the

safety of the vessel, crew, cargo, or passengers – Due to severe weather conditions, equipment failure, fuel

contamination, or other extraordinary reasons beyond the Master’s reasonable control

¨ Safety exemption applies only as long and to the extent necessary to secure safety– Master takes all reasonable precautions after the incident to

avoid or minimize repeated claims of exemption

– Master notifies ARB of a safety exemption claim within 24 hours and submits documentation to establish conditions within four working days after incident ends

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Regulation Provides an Essential Modifications Exemption

¨ This provision is granted when vessel operators/owners demonstrate that they cannot meet the fuel requirements without “essential modifications” to the vessel– Regulation provides a definition of an “Essential

Modification”– Exemption is granted by ARB based on a

demonstration of need– Vessels must meet operational requirements of

exemption

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Regulation Provides Noncompliance Fee Provision

Option to Pay Noncompliance Fee¨ Reasons beyond vessel Master’s control

– unexpected redirection to a California port– inability to purchase complying fuel– fuel found to be noncompliant en route to

California¨ Extension needed for vessel modifications¨ Vessel modifications needed on infrequent

visitor

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Implementation Activities

Add picture

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¨ ~21,000 vessel calls since regulation began in July 2009

¨ ARB inspectors board vessels at dockside– fuel samples collected for testing and analysis– records and fuel switching procedures reviewed– review incineration records– review cold ironing records (2014)

¨ Over 550 inspections since July 1, 2009*– ~95% compliance

¨ Most notices of violation involve fuel switching within regulated zone

*Summary from July 1, 2009 to October 31, 2013

Enforcement and Compliance Status

21*Summary from July 1, 2009 to October 31, 2013

Use of Provisions in Regulation Facilitates Implementation

¨ Safety exemption used 88 times¨ Noncompliance fees paid 5 times¨ Essential Modifications Exemptions

– majority of applications are for auxiliary boilers

– 438 exemptions provided for vessels that demonstrated the need for essential modifications

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Outreach Efforts to Support Implementation

¨ Six advisories issued– Five in 2011– One in 2012– Advisories are used to update and clarify regulatory language and changes thereof– Many also include forms and maps– Info can be found at arb.ca.gov/marine

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2012Amendments

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2012 Amendments

¨ Extension of “Regulated California Waters” in Southern California

¨ Advantages of the revised implementation date of 0.1% sulfur fuel to January 1, 2014

¨ Changes to the Noncompliance Fee Provision

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Extended Clean Fuel Zone

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¨ Facilitates continued high compliance rate and a successful transition to 0.1% fuels– Provided industry with additional lead time between

implementation of ECA Phase 1 (1% to ~200 nm) and ARB’s Phase 2 (0.1%)

– Lessened any near term, port specific availability issues with 0.1% fuel

– Provided shippers more flexibility in purchasing higher viscosity compliant distillate

– Provides additional time for fuels meeting the new ISO 8217 fuel specification to penetrate the market

Advantages of Delaying Phase 2

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♦ Fee halved when a vessel purchases and uses compliant fuel during noncompliant California port

visit

♦ Fee for second noncompliant port visit reduced from $91,000 to $45,500 (same as for first port visit)

♦ Anchorage conducted in conjunction with a port visit not counted as a second port visit

Changes to Noncompliance Fee Provision

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RMES 2014 Activities

♦ Begin Shore Power (Cold Ironing) inspections

♦ Enforce the 0.1% sulfur limit

♦ Inspecting Commercial Harbor Craft for 2014 engine requirements

Continue with the following inspections: Cargo Handling Transportation Refrigeration Unit Rail Road MOU Marina Fuels

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Tim Gergen(Staff)(916) 445-0292tgergen@arb.ca.gov

Robert Hamamoto(Staff)(916) 324-6972rhamamot@arb.ca.gov

Richard Smith(Manager)(916) 445-1295 rcsmith@arb.ca.gov

Mark Stover (Branch Chief)(916) 322-2056mstover@arb.ca.gov

http://www.arb.ca.gov/marine

Contact Information