For years, California ports have provided substantial benefits to the local, regional, and national economy. These benefits have not come without costs. The ships, trucks, trains, and other diesel-powered equipment at these ports are major sources of air pollution, including greenhouse gas emissions. To limit these emissions and the associated health risks, several multi-billion dollar plans have emerged to “clean up” the ports.

At the local level, the Ports of Los Angeles and Long Beach, which taken together move more than $260 billion a year in trade, have developed an aggressive strategy to significantly reduce air pollution from port-related sources. Pursuant to the Clean Air Action Plan, the Ports propose to eliminate “dirty” diesel trucks from their cargo terminals within five years by helping to finance a new generation of clean or retrofitted vehicles.

In addition, the Ports will require all major container cargo and cruise ship terminals to be equipped with shore-side electricity within five to ten years so that vessels at berth can shut down their diesel-powered auxiliary engines. To further reduce air pollutants, ships will be required to reduce their speeds when entering or leaving the harbor region, use low-sulfur fuels, and employ other emission-reduction measures and technologies. Other ports in California, including the Port of Oakland, have implemented, or are in the process of approving, similar emission reduction plans and/or incentive programs.

At the state level, the California Air Resources Board (CARB) is developing regulations to cut greenhouse gas emissions in California by an estimated 30% by the year 2020. As part of this process, CARB proposed a “green ports” early action measure that would require ships to use alternative sources of power - most likely shore-side electricity - while they are docked in California ports. The estimated cost of compliance is more than $1.2 billion - roughly one-third of that cost to be borne by the ports, and two-thirds to be borne by the ship operators. CARB staff expects that its board will consider a proposed regulation in the first quarter of 2008.

Additional emission reduction measures are being developed that could include diesel engine specifications, anti-idling requirements, modal shifts to less carbon intensive transportation modes, and programs to improve goods movement efficiency. These measures, among others, are being considered by CARB for inclusion in its scoping plan that will guide California’s efforts to reduce greenhouse gas emissions. The next public workshop will be held on January 16, 2008 in Oakland, California.

For further information about this topic, please contact Akin Gump.