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

2. Overview: Sustainable Ports and Carriers Environmental Challenge: Environmental Challenge: Effects of Air Pollution from Ports and Carriers Drivers: Drivers: Economic Growth and Trade Lead to Increased Maritime Traffic Actions: 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. Reducing sulfur in fuel directly reduces PM in air emissions. Benefits of ultra-low sulfur diesel (> 15ppm) combined with advanced emission control technology: 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 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.In non-road diesel vehicles, benefits are 40 times the cost. Annual benefits expected to exceed $150 billion versus costs of approximately $7 billion.Annual benefits expected to exceed $150 billion versus costs of approximately $7 billion.

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

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

6. Example of a Driver: Economic Growth Leads to Increases in Container Traffic TOP CONTAINER PORTS IN THE WORLD, 2005 GLOBALRANK PACIFIC RIM PORTCOUNTRY Thousands of TEUs 1 Hong Kong China45,166 2SingaporeSingapore33,637 3BusanKorea20,208 4KaohsiungTaiwan16,414 6 LA/Long Beach USA11,538 7ShanghaiChina10,602 8 Port Klang Malaysia10,589 10YantianChina10,284 Source: U.S. DOT MARAD, April 2006

7. Actions to Address the Challenges Support International Treaty Negotiations Support International Treaty Negotiations Implement EPA’s National Clean Diesel Campaign Implement EPA’s National Clean Diesel Campaign Clean Air Act RequirementsClean Air Act Requirements Clean Ports USAClean Ports USA SmartWay Transport PartnersSmartWay Transport Partners Develop and Promote Sustainable Ports and Carriers Partnership 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. 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. 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. Expected completion date in 2008.

9. Action #1: Review of MARPOL Annex VI IMO's Working Group will meet in London in April 2007 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.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.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.Uniform standards will provide a stable and predictable regulatory landscape. The U.S. is very active in these international negotiations. 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. 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. 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: To inform the process, EPA is conducting several key evaluations: Emissions inventory updatesEmissions inventory updates Air quality analysisAir quality analysis Global fuel analysisGlobal 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 PlanSan Pedro Bay Clean Air Action Plan Installed diesel oxidation catalystsInstalled diesel oxidation catalysts Piloting hydraulic hybrid yard hostlers Piloting hydraulic hybrid yard hostlers Using cleaner fuelsUsing cleaner fuels Replacing trucksReplacing trucks Cold-ironing vesselsCold-ironing vessels  Benefits: Reduce PM emissions by 50%Reduce PM emissions by 50% Reduce NOx emissions by 12,000 tons/yrReduce NOx emissions by 12,000 tons/yr Extend engine life and reduced maintenance costsExtend engine life and reduced maintenance costs Reduce risks and improve community healthReduce risks and improve community health www.epa.gov/cleandiesel/ports

12. Action #2: EPA’s SmartWay Transport Intermodal Carrier Savings TechnologySavings Idling-control technologies 6 – 10% fuel savings Wide-based tires with aluminum wheels 4 – 10% fuel savings Improved aerodynamics 5 – 7% fuel savings Emission reduction device 10 – 50% PM 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. Intended to be an international collaboration to improve environmental performance of ports and carriers. Build upon the Pacific Ports Air Quality Collaborative experience. Build upon the Pacific Ports Air Quality Collaborative experience. Longer-term goals might include: Longer-term goals might include: Develop sound Environmental Management Systems for port/harbor projectsDevelop sound Environmental Management Systems for port/harbor projects Develop common port safeguards to improve port development activitiesDevelop common port safeguards to improve port development activities Provide investment opportunities for the private sectorProvide investment opportunities for the private sector Look beyond the Pacific RimLook 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.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 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.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.USEPA and USAID will provide resources and technical assistance to Panama to build and manage a third air monitoring station in 2007.

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

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 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 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 Learning networks improve early response to new introductions of harmful species

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