This fee discount has been so persuasive, over 90% of vessels now take advantage of it. Even better, we have an objective way to judge compliance thanks to the Marine Exchange of Southern California. This venerable non-profit organization keeps records of the arrivals and departures of all vessels into and out of San Pedro Bay. MarEx data is used by the Port to verify the actual speed of vessels within the incentive zone.
In early December, the Harbor Commissioners voted to expand the program by increasing the size of the incentive zone to 40 nautical miles from Point Fermin, the southernmost tip of the San Pedro Peninsula. Vessel operators that sign up right away – so that they can demonstrate compliance beginning January 1, 2009, and continuing for the whole year – could earn a new 25% dockage fee discount.
The so-called “VSR” (vessel speed reduction) incentive program isn’t inexpensive. According to the Port’s press release, the 2008 tab will be about $1.6 million. This year the total cost to the Port could be up to $4 million if they get lots of takers for what they are calling the “Green Plus” discount. The standard Green Flag discount of 15% will continue to be available for those who don’t move so quickly, but still comply with the existing program’s requirements.
The emission benefits of this program have been substantial. According to figures in the Harbor Commission agenda, the 20-nm Green Flag program cut NOx emissions by nearly 700 tons, SOx by about 450, diesel particulate matter by 60, and the greenhouse gas CO2 by 26,700 tons. Depending on the pollutant, this amounts to approximately a six- to nine-percent reduction in the total emissions from ocean-going vessels. Even the overall port emissions inventory, considering all sources, has been reduced anywhere from two to six percent every year (depending on the pollutant) under the current program. (My percentage estimates are approximate, because they are based on the 2006 Port of Long Beach emissions inventory, the latest available. But they give an idea of the magnitude of the reductions.)
That’s pretty good, especially when you consider how direct, immediate, and local these benefits are, compared to trying to influence the international maritime community to change vessel fuels or engine designs (though these efforts are also underway). Moreover, vessels are one of the bigger sources of port emissions, and the reductions that come from this incentive program are happening now, instead of years from now when a particular terminal lease might come due for negotiation. Even better, some of the carriers who qualify for dockage incentives have donated their savings back to deserving causes in Long Beach.
There’s more promise in the potential additional emission cuts that could come from a continued high rate of compliance in the extended slow-speed zone. The total vessel emissions of NOx could be reduced a further 18%, of diesel particulate matter 17%, and of sulfur emissions about 12%. Again, percentage reductions of the full port emissions inventory are smaller (though not much smaller for sulfur, the vast majority of which is emitted by vessels). And the reductions realized might not amount to this much if compliance rates don’t continue around 90%. But this is a cost-effective way to reduce port emissions substantially and quickly. It’s an elegant incentive that’s easy to offer and easy to monitor – and makes the port that much easier on our lungs. I hope the port does get lots of takers for the new discount.