Presentation: 2007-06-26 Presentation for Commercial ...€¦ · Fishing Commercial Fishing Charter...

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1 Port of Los Angeles June 27, 2007 California Environmental Protection Agency Air Resources Board Commercial Harbor Craft Proposed Regulation Workshop 2 Overview Background Proposed Regulation Regulation Timeline State Repower Capacity Regulation Emission Reductions Other Issues

Transcript of Presentation: 2007-06-26 Presentation for Commercial ...€¦ · Fishing Commercial Fishing Charter...

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Port of Los AngelesJune 27, 2007

California Environmental Protection Agency

Air Resources Board

Commercial Harbor Craft Proposed Regulation Workshop

2

Overview

♦ Background♦ Proposed Regulation ♦ Regulation Timeline ♦ State Repower Capacity♦ Regulation Emission Reductions♦ Other Issues

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Commercial Harbor Craft Emissions Significant

Contributor to Port Emissions

65%15%

16%

1%

3%

55%

19%

17%

3% 6%

55%

OGVCommercial Harbor CraftCargo Handling EquipmentRail In-PortHDDV In-Port

Diesel PM NOx

From LA/LB Exposure Study

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Health Risk Assessment

♦ Port POLA / POLB Health Risk Assessment– Commercial Harbor Craft third largest contributor to

risk behind ocean going vessel hotelling and cargo handling equipment

♦ POLA / POLB CHC Emissions Cancer Risk– >200 cases per million risk 5,000 residents– >10 cases per million risk 1.5 million residents– Also, significant source of PM mortality

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PM Emissions and Proximity to Shore

0

50

100

150

200

250

300

350

400

450

500

Ferry / Excursion Tug Tow All Others, Non-Fishing

CommercialFishing

Charter Fishing

Vessel Type

Em

issi

on

s (t

py)

Harbor0 - 25

>25

6

Commercial Harbor Craft Emission Sources

(Original Ferry/Excursion Load Factor)

Ferries / Excursion

Tug Boats

Tow Boats

All Fishing

Total Other Non-Fish

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Ferry / Excursion Engine Load Factor

♦ Reviewed load factors for all vessel types

♦ No changes advised except for ferries and excursion vessels.

♦ Load factor to be reduced by about 40%.

Ferries / Excursions

Tug Boats

Tow Boats

All Fishing

Total Other Non-Fish

Estimated Load Factor Change Impact

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Proposed Commercial Harbor Craft

Regulation

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Require All CHC Vessels Statewide to Use CARB Diesel Fuel

♦ Require all commercial harbor craft to use CARB diesel for alternative diesel fuel

♦ Nov. 2004 Board adopted regulation requiring sale of CARB diesel to commercial harbor craft and intrastate locomotives – Jan. 1, 2006 SCAQMD– Jan. 1, 2007 Statewide

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Summary of Regulation Areas of Responsibility

vvvvvvvExcursion

vvvvvvPilot

vvvvvvvTow

vvvvvvvTug

vvvvvvvFerry

vvvvvvOther

vvvvvvCrew

vvvvvvWork

vvvvvvFishing

Compliance Action

PurchaseOf

Vessel

Purchaseof

Engine

New Engine

New Vessel

Initial Report

Hour Meter

"In-use" Requirements

"New”Requirements

Reporting And

Recordkeeping

Vessel Use

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Exemptions♦ Ocean-going vessels♦ Recreation vessels♦ Temporary replacement vessels♦ Temporary emergency rescue and recovery

vessels. ♦ Registered historic vessels♦ Military tactical support vessels♦ Vessel engines registered with the Portable

Engine Registration Program

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Reporting and Recordkeeping Requirements for

All Vessels♦ Install non-resettable hour meter♦ Reporting

– Initial Reporting – New Engine and New Vessel Reporting– Compliance Reporting

• (Ferry, Excursion, Tug and Tow Only)

♦ Recordkeeping– Initial Reporting Record– Yearly Engine Hours, General Use, % time from

shore

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Reporting and Recordkeeping Forms

♦ ARB Reporting Form♦ Electronic Forms Preferred

– Data Base– On Board computer

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All New Harbor Craft Vessels

♦ Require most current EPA engine– Sell through provisions– Most current engine available when vessel is

designed.

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Additional Requirements for All New Ferries

♦ Applies to passenger vessels with capacity of 75 or more passengers

♦ Require Tier II or Tier III EPA engine + combined PM and NOx reduction of 85%

♦ Or Tier IV engine

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Acquisition of In-Use Vessels and Engines

♦ Vessels – Sale and purchase of vessels currently being

used in CA unrestricted– If not currently being used in CA, engines

must meet current EPA engine standards

♦ Engines acquired for in-use vessels must meet most current EPA engine standards

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Proposed Requirements Specifically For In-Use

Ferries, Excursion, Tugs, and Tow Vessels

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Basic Approach

♦ Replace older engines with new certified engines.

♦ Accelerate engine retirement♦ Phase in schedule oldest and high use

engines first♦ Aftertreatment Option

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Why This Approach ?

♦ Long life engines♦ Expensive ♦ Retrofits challenging

– Consequences of retrofits– One size fits one– Relatively small numbers– Economics highly variable– Multi-agency approvals

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Current U.S. EPA Marine Engine Standard Effective

Dates♦ Tier 0 Engines are unregulated (<2004)♦ U.S. EPA has established Tiered Standards

– Tier I (2004)– Tier II (2004-2007)

Not Yet Finalized♦ Tier III (2009 small engines) ♦ Tier III (2012-2014)

Category 1* and 2 engines over 800 hp♦ Tier IV (2016-2017)

* Modified Category 1 and 2 break point

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Average Emission Reductions for Engine Repowers

33%46%Tier ITier 0

63%61%Tier IITier 0

92%82%Tier IVTier 1

94%91%Tier IVTier 0

Category 1

78%69%Tier IIITier 0

60 %40 %Tier IITier I

Category 2

75%65%Tier IIITier 0

65 %60 %Tier IITier 0

25 %40 %Tier ITier 0

PM ReductionsNOx ReductionsU.S. EPA Marine Tier

U.S. EPA Marine Tier

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Statewide Ferries, Excursion, Tugs, and TowProposed Compliance Schedule

20182003 (>300 hours)

20192004 (>300 hours)

20202005 (>300 hours)

20212006 (>300 hours)

20222007 (>300 hours)

20141986-1995 (>300 - <1500 hours)

20131986-1995 (>1500 hours)

20121976-1985 (>300 - <1500 hours)

20111976-1985 (>1500 hours)

20161996-2000 (>300 - <1500 hours)

20151996-2000 (>1500 hours)

20172001-2002 (>300 hours)

2010<1975 (>300 - <1500 hours)

2009< 1975 (>1500 hours)

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South Coast Ferries, Excursion, Tugs, and TowProposed Compliance Schedule

20202007

20182005

20192006

20172004

20152002

20162003

20131996 - 2000

20142001

20111986 - 1990

20121991 - 1995

2009Pre - 1979

20101980 - 1985

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Ferry, Excursion, Tug, and Tow Vessel Compliance Options

♦ Replace existing engines with most current U.S. EPA Marine engine.

♦ Demonstrate existing engine meets most current U.S. EPA Marine engine standard.

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Ferry, Excursion, Tug, and Tow Vessel Compliance Options

(Cont.) ♦ Demonstrate pre-2004 engine has been rebuilt

to a Tier I standard prior to 2008. – Rebuild date to be used as MY for determining

compliance date.

♦ Install emission control strategy reducing PM or NOx by 25% or greater. – Extend compliance 1-5 years.– Not an option for MY 2005 and newer.

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Regulatory Extensions with ARB Approval

♦ Vessel near retirement♦ Changes in Hours of Operation, Sales, and

Change of Ownership♦ No Suitable Engine Replacement♦ Equipment Manufacturer Delays or

Installation Difficulties♦ Multiple Vessel – Same Year Compliance♦ Considering variance per CA H&S Code

42350 - 42364

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Alternative Compliance Plan

♦ Operators may comply using alternative emission control strategies.

♦ Must achieve equivalent or greater reductions

♦ Applications include a public review process

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Estimated Number of Propulsion Engines Replaced Per Year

Statewide (not including SCQAMD)

0

2 0

4 0

6 0

8 0

100

120

140

160

2 0 0 9 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2 0 2 1 2 0 2 2

Proposed Compl iance Schedule

Tow

Tug

Ferry

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Estimated Number of Propulsion Engines Replaced Per Year

SCAQMD Only

0

10

2 0

3 0

4 0

5 0

6 0

7 0

8 0

9 0

100

2 0 0 9 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2 0 2 0

Proposed Compl iance Schedule

Tow

Tug

Ferry

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Statewide Engine Repower Capacity

♦ Contacted 50+ marine vessel boat yards, vessels builders, or vessel repair facilities statewide

217 - 271Total Capacity Statewide

48 - 60San Diego Area

93 - 110Los Angeles Area

76 - 101Northern California

Numbers of EnginesRegion of the State

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Estimated Emission Reductions

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Estimated Statewide Emission PM Reductions

0

1

2

3

4

5

2004 2007 2010 2013 2016 2019 2022 2025

Calendar Year

Tons

/day

Statewide Baseline InventoryControlled, Statewide ScheduleControlled, SCAQMD Schedule

Includes SCAQMD Compliance Schedule

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Estimated Statewide Emission NOx Reductions

0

10

20

30

40

50

60

70

80

90

100

2004 2007 2010 2013 2016 2019 2022 2025Calendar Year

Tons

/day

Statewide Baseline InventoryControlled, Statewide ScheduleControlled, SCAQMD Schedule

Includes SCAQMD Compliance Schedule

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Estimated South Coast PM Emission Reductions

0.0

0.2

0.4

0.6

0.8

1.0

1.2

2004 2007 2010 2013 2016 2019 2022 2025

Calendar Year

Ton

s/da

y

Statewide Baseline InventoryControlled, Statewide ScheduleControlled, SCAQMD Schedule

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Estimated South Coast NOx Emission Reductions

0

5

10

15

20

25

30

2004 2007 2010 2013 2016 2019 2022 2025Calendar Year

Ton

s/da

y

Statewide Baseline InventoryControlled, Statewide ScheduleControlled, SCAQMD Schedule

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Regulation Timeline

♦ Early August 2007 - Release Initial Statement of Reasons– Start 45 day comment period

♦ September 2007 - Present to Board for consideration

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Outstanding Issues

♦ Ferry / Excursion Load Factors

♦ Ocean-Going Tugs♦ Vessels visiting CA

Commercial Harbor Craft Proposed Regulation Workshop

Sacramento June 27, 2007

California Environmental Protection Agency

Air Resources Board

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Commercial Harbor Craft Cost Estimates

tCosts for Ferries, Excursion, Tugs, and TowstEstimate Costs for New Engine Replacement tEstimate Costs for Regulation. tIncludes Residual Engine Value, Major and

Top End Rebuilds, and Time Value of Money for Accelerated Turn-Over

tReporting Costs for All Harbor Craft

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Residual Value

0

25

50

75

100

0 10 20 30 40 50Total Life (Years)

% o

f In

itial

Co

st

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Marine Engine Life Expectancy

5025AuxTow

6030PropTow

4522.5AuxTug

4221PropTug

4020AuxFerry /Excursion

4020PropFerry /Excursion

TotalLife

UsefulLife

EngineType

VesselType

Estimated EngineLife Expectancy

(Years)

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Harbor Craft Engine Costs

Replace Engines with Tier II or Tier III EnginestCarl Moyer and POLA AIR Quality Mitigation

Program 2005-6 for Propulsion Engines ~ $245/hptPOLA AIR Quality Mitigation Program 2005-6

for Auxiliary Engines ~ $233/hp WTA consistent with this data

t Tier III Engines estimate 20% increase in cost.

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Marine Propulsion EngineReplacement Costs

Propulsion Engine, Gears, and Installation Costs

WTA

y = 244.59xR2 = 0.9249

$-

$200,000

$400,000

$600,000

$800,000

0 500 1000 1500 2000 2500 3000

Rated Power (hp)

Cos

t ($)

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Marine Auxiliary Engine Replacement Costs

Auxiliary Engine and Installation Costs

WTA

y = 233.29xR2 = 0.9513

$-

$20,000

$40,000

$60,000

$80,000

$100,000

0 100 200 300 400 500

Rated Power (hp)

Co

st ($

)

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Marine Engine Rebuild Frequency

tMajority of Engines:tMajor Rebuild every 10 years t Top End or Minor Rebuild every 5 years

In Between Major Rebuilds

t EMD Engines:t Major Rebuild every 14 years t Minor Rebuild every 7 years

t Two Caterpillar Models (D397, D398): t Major Rebuild every 8 years t Minor Rebuild every 4 years

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Major Rebuild Cost Equation

y = 53.932x + 13641R2 = 0.878

$-

$50,000

$100,000

$150,000

$200,000

$250,000

0 1000 2000 3000 4000Rated Power (HP)

Cos

t ($

)

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Top End Rebuild Cost Equation

y = 16.521x + 12456R2 = 0.8927

$-

$20,000

$40,000

$60,000

$80,000

0 1000 2000 3000 4000Rated Power (HP)

Cos

t ($

)

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California Costs

Regulation Costs to Owners/Operators

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

2008 2013 2018 2023Calendar Year

Cos

t (2

006

$)

Auxiliary

Main

Total

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California Costs

New Engine Costs to Owners/Operators

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

2008 2013 2018 2023

Calendar Year

Co

st (2

006

$)

Auxiliary

Main

Total

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California Costs

Regulated Engine Replacement

0

50

100

150

200

250

2008 2013 2018 2023Calendar Year

Num

ber

of

En

gin

es

Auxiliary

Main

Total

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California Costs

$889,076All Vessels

$228,000$128,600,000 $68,900,000 Sum

$139,000 $122,300,000 $65,000,000 Prop

$89,000 $6,300,000 $3,900,000 Aux

Total F, E ,T, & T

$15,000$8,600,000 $5,100,000 Sum

$10,000 $8,100,000 $4,700,000 Prop

$5,000 $500,000 $400,000 Aux

Tow

$59,000$63,400,000 $32,600,000 Sum

$33,000 $60,500,000 $30,900,000 Prop

$26,000 $2,900,000 $1,700,000 Aux

Tug

$154,000$56,600,000 $31,200,000 Sum

$96,000 $53,700,000 $29,400,000 Prop

$58,000 $2,900,000 $1,800,000 AuxFerry / Excursion

Reporting CostNew Engine Cost

Early Replacement

Cost (Option 1)EngineVessel

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California Emissions Reduced

PM Emission Reduction

0

200,000

400,000

600,000

800,000

1,000,000

2008 2013 2018 2023

Calendar Year

Po

un

ds/

Yea

r Auxiliary

Main

Total

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California Emissions Reduced

NOx Emission Reduction

0

2,000

4,000

6,000

8,000

2008 2013 2018 2023

Calendar Year

To

ns/

year

Auxiliary

Main

Total

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Cost Effectiveness

$620$600 $2,300

TotalMainAux

Engine Remaining Life, Major, and Top End Cost Effectiveness (1/2 2006 $/NOx ton)

$5$5$15

TotalMainAux

Engine Remaining Life, Major, and Top End Cost Effectiveness (1/2 2006 $/PM lb)

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Commercial Harbor Craft TeamContact List

♦ Todd Sterling (Team Lead)e-mail: [email protected]: 916.445.1034

♦ Kirk Rosenkranze-mail: [email protected]: 916.327.7843

♦ Bonnie Sorianoe-mail: [email protected]: 916.327.6888

♦ Chengfeng Wange-mail: [email protected]: 916.322.1719

♦ John Leee-mail: [email protected]: 916.327.5975

♦ Cherie Rainforth, Managere-mail: [email protected]: 916.327.7213

♦ Dan Donohoue, Chief Emissions Assessment Branche-mail: [email protected]: 916.322.6023

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Questions