Shippers Paid To Burn Cleaner Fuel

By Harry Saltzgaver
Executive Editor

Shippers calling at the ports of Long Beach and Los Angeles soon will get paid to use cleaner-burning fuel, thanks to a new incentive program that the ports’ governing boards approved at a joint meeting Monday.

The one-year plan is designed to get vessel operators to use low-sulfur fuel in ships’ main engines when they are within 20 miles of port. Most cargo ships burn cheaper, but highly polluting, bunker fuel. That bunker fuel spews both sulfur oxide and particulate (soot), both health hazards.

Under the new plan, which was created in partnership with the Pacific Merchant Shipping Association, the ports would pay shipping companies for the cost difference between bunker fuel and the low-sulfur oil. Ships could switch to the cleaner fuel as far away as 40 miles from the coast and receive full reimbursement.

“Bunker fuel is a major source of port-related air pollution, and this program has the potential to dramatically cut the use of bunker fuel in a hurry,” Mario Cordero, Long Beach Harbor Commission president, said in a release. “Most shipping lines will be able to start participating immediately.”

Shippers will have to meet other conditions to qualify for the incentives. Ships must also participate in the ports’ Vessel Speed Reduction Program, limiting speeds to 12 knots near port; and agree to use low-sulfur fuel in auxiliary engines while in port.

The pilot program will last for one year, and will cost the Port of Long Beach up to $9.9 million (up to $8.6 million in cost is expected at the Port of Los Angeles).

The harbor commissions could renew the incentive next year.

That may not be necessary, though, as a pending California Air Resources Board regulation would require the use of low-sulfur fuel within 24 miles of port beginning n July 1, 2009. That regulation still is subject to legal action.

“This program is the direct result of a partnership between the ports and industry to reduce ship emissions,” John McLaurin, PMSA president, said. “The bunker fuel replacement initiative bulds upon other successful voluntary emissions reduction programs around the ports.”

Low-sulfur fuel is a large part of the ship component in the ports’ Clean Air Action Plan to reduce pollution stemming from port operations.

Use of the cleaner fuel is expected to reduce both sulfur oxide and particulates by about 10%.

Most of the attention recently has focused on a Clean Truck Program designed to ban and replace old polluting diesel trucks moving cargo to and from the ports.

Long Beach approved a plan two weeks ago that offers incentives but does not require drivers to become employees. Los Angeles still is considering its plan, but appears ready to add the employee-only provision sought by unions and some politicians as a way to improve conditions for drivers.