Improving Air Quality at the Port of New York and New Jersey

Clean Vessel Incentive ProgramUpdate

December 16, 2015

CVI Update

In November, Board approved a amended CVI program that builds on the success of the current program

The amended CVI is funded from Jan 1, 2016 through December 31, 2018

Amended CVI continues to utilize the Environmental Ship Index (ESI), Vessel Speed Reduction (VSR), and Engine Tier incentives

Takes into account the full implementation of the Emissions Control Area (ECA)

Current CVI The ship component of the Port Authority’s Clean Air Strategy

Three year participation rates

16 Vessel companies 1,900 qualifying Vessel Calls, $3.7 million incentives paid

2013 CVI Emissions Reduction Estimates

49 tons PM 45 tons DPM 36 tons PM2.5

56 tons NOx 217 tons SOx 6,422 tons CO2

$1,093 per weighted ton reduced

2014 CVI Emissions Reduction Estimates

64 tons PM 58 tons DPM 47.8 tons PM2.5

73 tons NOx 317 tons SOx 7,174 tons CO2

$834 per weighted ton reduced

CVI Changes

Modified scoring system to increase participation & increase emission reductions

More opportunities to get incentives through expanded VSR options

Three incentive Tiers – takes into account ECA effects on sulfur content & ESI’s new scoring

Maintains incentive for Tier 2 & Tier 3 engines

New Terms & Conditions

Expanded audits

• CVI Score 35 to 44 per Call

$1,000 • CVI Score 20 to 34 per Call

Port Authority Clean Vessel Incentive Program

$1,500

ESI & VSR Based Incentive Opportunities

• CVI Score ≥45 per Call$2,500

CVI Score = ESI Score + VSR Points

Additional Engine Tier Incentive Opportunities

• Vessels with IMO Tier 3 ALL Engines per Call

• Vessels with IMO Tier 2 ALL Engines per Call

Port Authority Clean Vessel Incentive Program

$1,000

$2,000

+10 points

Additional CVI Points Opportunities - VSR

•Vessels compliant with Vessel Speed Reduction - Weighted average 10 knots or less

inbound or outbound transits in participation zone

- From 20 nm from center COLREGS line to Verrazano Bridge

- Vessels will be tracked & verified by AIS data on a per call-basis

- Points will be automatically added to ESI score for participating vessels

Cruise ships can sign up for an Alternative Compliance Plan

Port Authority Clean Vessel Incentive Program

+20 points

Additional CVI Points Opportunities - VSR

•Vessels compliant with Vessel Speed Reduction - Weighted average 10 knots or less

inbound AND outbound transits in participation zone

- From 20 nm from center COLREGS line to Verrazano Bridge

- Vessels will be tracked & verified by AIS data on a per call-basis

- Points will be automatically added to ESI score for participating vessels

Cruise ships can sign up for an Alternative Compliance Plan

Port Authority Clean Vessel Incentive Program

VSR Zone

Port Authority Clean Vessel Incentive Program

CVI Audits

Port Authority will be conducting more audits

Company representatives will facilitate access their ships

Audit reports sent to ESI Administrator

Audit findings made available to all incentive providers

Audit findings that increase scores

Audit findings that reduce scores

Existing CVI Participant Requirements

For existing shipping lines & vessels in the current CVI program:

Must sign the new Terms & Conditions

Vessels in current CVI automatically enrolled into amended CVI

New vessels need to be enrolled

New Company Enrollment Requirements

Register & enroll ships in ESI program to obtain scores

http://esi.wpci.nl/Public/Home

Complete Port Authority Operator Enrollment Package

Company Enrollment Form

Vessel Enrollment Form

Tax ID Forms

Sign Terms & Conditions

All forms can be found at the Port Authority website:

www.panynj.gov/about/clean-vessel-incentive-program.html

Reimbursement Process Port Authority collects & verifies quarterly

information (Qualified calls, ESI scores, VSR compliance, etc.)

Port Authority generates participation report & draft invoice & send to vessel operators

Vessel operators review report & mail back final invoice with remittance information on company letterhead via email/post/ground/air

Port Authority issues incentive payments quarterly

ExamplesESI score 16 Tier 0

Comply with VSR both ways, 20 pts, CVI score = 36Port Authority ESI + VSR Incentive = $1,500

ESI score 26 Tier 1Comply with VSR both ways, 20 pts, CVI score = 46Port Authority ESI + VSR Incentive = $2,500

ESI Score 33 Tier 2Comply with VSR one way, 10 pts, CVI score = 43Port Authority ESI + VSR Incentive = $1,500 Port Authority Tier Incentive = $1,000

Thank you

Any Questions?