1. Cost-Benefits and Funding Options for Ferries Mahesh Talwar OceanAir Environmental, LLC 805-386-1882 mahesh@oceanairllc.com mahesh@oceanairllc.com www.oceanairllc.com

2. Green Ferry Boat Options  Repower with Tier II  Remanufacture with Tier II  Repower with Tier II + SCR  Shore power  Speed reduction  Alternative fuel

3. Cost-Benefit Analysis  Basis: Outside parties pay for 70% of the total installed cost, owner pays 30%, current engine is Tier I, annual fuel burn 600,000 gal, total h.p. 4,500, rebuild every 30,000 hrs, annual operating hours 4,000  Options: a.Repower with Tier II engine Total installed cost = $2.2 million, Gov. pays $1.54 million, owner pays $0.6 million, no increase in operating cost, total annualized cost = $80,000 w/ subsidy, $267,000 w/o subsidy. Annual NOx+10PM reduced = 50 tons/yr, cost effectiveness (w/o subsidy) = $5,340/ton a.Remanufacture with Tier II kit – limited to EMD and Cat engines Total installed cost = $600,000, no increase in operating cost. Total annualized cost w/ subsidy $25,000, w/o $83,000. Total NOx+10PM reduced = 50 tons/yr, cost-effectiveness (w/o subsidy) = $1,660/ton a.Add SCR to Tier II Total installed cost = $3.3 million, Gov pays $2.31 million, owner pays $0.99 million, Increase in operating cost (increased fuel + chemicals) = $350,000/yr. Total annualized cost w subsidy = $490,000, w/o $820,000. Total NOx+10PM reduced = 85 tons/yr, cost- effectiveness = $9,647/ton a.Cut throttle back to 91% of rated speed- This is stand alone option. Vessel speed decreases by 4-5 knots, Some of the fuel savings will be offset by increased crew cost due to extra operating hours for the same number of trips b.Shore power. c.Alternative fuels

4. Funding Sources  Carl Moyer  West Coast Diesel Collaborative  Stimulus funds  Ports – container fee  Emission Credits  FTA  State  EPA