Board Hearing

October 26, 2007

California Environmental Protection Agen

Air Resources Board

Regulation for 

Commercial Harbor Craft 
Overview

♦ Background♦ Proposed Regulation♦ Emissions and Risk Reductions♦ Costs and Cost Effectiveness♦ Summary and Recommendation 
Background
What are Commercial Harbor C

♦ Ferries and excursion vessels♦ Tugboats and towboats♦ Crew and supply vessels ♦ Commercial and charter fishing boat♦ Pilot boats♦ Work boats♦ Other vessels
Vessel and Engine Populatio

♦ 4,200 vessels♦ 8,300 diesel engines♦ 75% of vessels are commercial and 

charter fishing boats

♦ Largest engines in ferries, excursio

vessels, tugboats, and towboats
Location of Ferry, Excurs

Vessels, Tugboats, and Tow

♦ 38% in Bay Area ♦ 30% in South Coast Area♦ 17% in San Diego♦ 15% in the rest of the State
U.S. EPA Engine Standar

♦ Engines meeting Tier 1 standards be

available in 2000

♦ Tier 2 standards became effective 2

2007

♦ Tier 3 and Tier 4 standards propose

U.S. EPA in April 2007, not yet adop

♦ Tier 3 standards effective 2013 to 20

Tier 4 in 2016 to 2017
Emissions from Harbor Cra

♦ Large emission source

– 3.3 tpd diesel PM– 73 tpd NOx

♦ 80% of in-use harbor craft engines 

unregulated

♦ Vessel engines have long life
Over 75% of Vessels are 

Commercial and Charter Fis

Boats

Other

Pilot Boats Work Boats

Tow Boats

Crew and 

Supply 

Vessels

Ferries and 

Excursion 

Vessels

Charter 

Fishing 

Boats

Commerc

Fishing 

Boats

Tug Boats

Vessel Population: ~4,200

2004 Inventory
Ferries, Excursions, Tugs, and 

Generate ~50% of Total Emiss

~3.3 tpd PM

Total Other NonFish

6% Ferries and Excursion 

Vessels

28%

Tugboats

19%

Towboats

3%

Charter Fishing

19%

Commercial 

Fishing

25%

2004 Inventory
Ferries, Excursion Vessels, Tugboats

Towboats Generate Largest Share of In-

PM Emissions

0

0.10.20.30.40.50.60.7

Ferry/Excursion

Tug

Tow

Pilot

Work

Crew and Supply

Charter Fishing

Commerci

Vessel Type

Tons per Day

Harb3-24 >24 n
Health Impacts

♦ Elevated cancer risk near ports♦ Non-Cancer annual impacts:

– 90 Premature deaths – 20 Hospital admissions (respiratory)– 40 Hospital admissions (cardiovascul– 2,400 Cases of asthma-related and lo

respiratory symptoms

– 200 Cases of acute bronchitis– 16,000 Work loss days– 90,000 Minor restricted activity days
Proposed Commercial 

Harbor Craft Regulation
Key Elements of Proposa

♦ Existing ferries, excursion vessels, 

tugboats, and towboats required to rolder engines with new certified engi

♦ New vessels and replacement engin

must install new certified engines

♦ Monitoring, recordkeeping, and repo

requirements
Requirements for Ferries

Excursion Vessels, Tugboa

and Towboats
Required Replacement o

Unregulated (Tier 0) and Ti

Engines

♦ Replace existing engines with new 

certified engines

♦ Replacement schedule based on e

model year and hours of operation

♦ Accelerated replacement schedule 

South Coast
Engine Replacement Deliv

60% to 80% 

Emission Reductions Per En

70 to 80% PM40 to 50% NOx Tier 1 to Tier 3

80% PM70% NOx Tier 0 to Tier 3

Tier 0 to Tier 2 60 to 65% NOx and PM

Emission Reductions per 

Engine Tiers
Replacement Compliance 

Schedule

♦ Statewide 

– Begin replacing engines by 2009– Replace all Tier 0 engines 2009-2016– Replace all Tier 1 engines 2017-2022

♦ Accelerated schedule for South Co

– Tier 0 replacements 3 years earlier– Tier 1 replacements 2 years earlier
Alternative Methods to Deter

Compliance Model Year

♦ Pre-2004 engine rebuilt to Tier 1 prio

1/1/08

– Rebuild date can be used as complianc

year

♦ Emission control strategy applied

– Decrease PM and/or NOx by >25%

– Extends compliance date by 1 to 5 yea
Alternative Compliance Opt

♦ Demonstrate in-use engine meets t

current U.S. EPA marine engine sta

♦ Demonstrate in-use engine is opera

less than 300 annual hours
Compliance Date Extensio

♦ No suitable engine replacement♦ Manufacturer delay or installation 

difficulties

♦ Engines on multiple vessels within 

requiring compliance in one year

♦ Change in annual engine hours of 

operation
Alternative Control of Emiss

♦ Operators may comply using altern

emission control strategies

♦ Must achieve equivalent or greater 

reductions

♦ Application process includes public 

review process
Requirements 

for All Commercial 

Harbor Craft
New Harbor Craft Vessel

♦ Effective January 1, 2009♦ All new harbor craft must install eng

meet current U.S. EPA emission standards

– Engine standard in effect when vesse

purchased, Tier 2, 3, or 4

♦ New ferries

– Apply best available control technolog

(BACT) to propulsion engine or Tier 4
Replacement Engines fo

In-Use Harbor Craft Vesse

♦ Install engines meeting 

U.S. EPA marine new engine emission standards at time of engine acquisition

♦ Tier 4 engine required 

if engine being replaced was a Tier 4
Monitoring, Recordkeeping

Reporting Requirements

♦ Monitoring 

– non-resettable hour 

meters on all engines

♦ Recordkeeping♦ Reporting

– Initial– Compliance
Requirements Apply to Ves

Within Regulated California W

♦ All internal waters♦ All estuarial waters♦ All ports and terminal 

facilities

♦ All waters within 24 

nautical miles of California baseline
Exemptions 

from 

Entire Regulation

♦ Vessels traversing within 24 nautical miles o

California Coast without stopping 

♦ Temporary emergency rescue/recovery ves♦ Recreational vessels♦ Ocean-going vessels (except ocean-going t♦ Vessel engines registered with the Portable 

Registration Program prior to January 1, 20

♦ U.S. Coast Guard vessels♦ Military tactical support vessels
Exemptions 

from 

Engine Replacement Requirem

♦ Temporary replacement vessels♦ Registered historic vessels♦ Engines rated at less than 50 horsepo♦ Engines operated less than 300 hours 

year

♦ Near-retirement vessels
Projected 

Emission 

Reductions
Regulation Benefits

♦ South Coast reductions in 2013

– 0.2 tpd PM– 3.6 tpd NOx

♦ Statewide reductions in 2020

– 0.7 tpd PM– 10 tpd NOx

♦ Achieves 2015 and 2020 Goods 

Movement Goals for harbor craft
Projected Statewide 

PM Emission Reductions 

Commercial Harbor Craft Statewide PM Emissions

0

0.5

1

1.5

2

2.5

3

3.5

2004 2007 2010 2013 2016 2019 202

Calendar Year

Tons/day

Baseline Controlled with Proposed Regulation
Projected Statewide 

NOx Emission Reduction

Commercial Harbor Craft Statewide NOx Emissions

0

1020304050607080

2004 2007 2010 2013 2016 2019 202

Calendar Year

Tons/day

Baseline Contolled with Proposed Regulation
Accelerated South Coast P

Emission Reductions 

South Coast Commercial Harbor Craft PM Emissions

0

0.10.20.30.40.50.60.70.80.9

2004 2007 2010 2013 2016 2019 2022 

Calendar Year

Tons/day

BaselineControlled with accelerated schedule for SCControlled with statewide schedule

Additional reduction in 2013 due to accelerated schedule
Health Benefits Due to Prop

Regulation

♦ Significant reduction in near source cancer risk♦ Avoided non-cancer health impacts by 2025:

– 310 premature deaths – 70 hospital admissions due to respiratory causes – 120 hospital admissions due to cardiovascular cause– 8,100 cases of asthma-related and other lower respi

symptoms

– 670 cases of acute bronchitis– 53,000 work loss days– 300,000 minor restricted activity days

♦ $1.3 to $2 billion estimated non-cancer health 

benefits from proposed regulation
Overall Effect on 

Global Warming

♦ Reduction in greenhouse gas emiss

– Accelerated phase-in of newer engine

less polluting technologies 

– Reduction in black carbon 

♦ Slight increase in CO2 emissions:

– Use of exhaust treatment technologie

increase vessel power usage
Estimated Costs

♦ Total cost of regulatory compliance $140 ♦ Industry cost for new equipment of $460 ♦ Impact on Return on Owners Equity (ROE

ranges from 0.5 to 3.5% decline
Summary of Cost-Effectiven

(2009-2022)

Emissions Total Cost-Effectiveness

All Costs Assigned to PM 

PM $29/lb

Divide Costs Equally Between PM and 

NOx

PM $14.50/lb

NOx $1,800/ton

Combine PM and NOx Emissions

PM + NOx $1.70/lb
Diesel PM Cost-Effectivene

Compared to Other Regulat

Regulation or Airborne Toxic Control Measure

Diesel PM Cost-Effecti

Dollars/ Pound P

Commercial Harbor Craft $29Cargo Handling Equipment $41Solid Waste Collection Vehicle Rule $28Stationary Diesel Engine ATCM $4 - $26Transport Refrigeration Unit ATCM $10 - $20
Potential Incentive Fundin

♦ Carl Moyer Funding♦ California Goods 

Movement Bond Funds

♦ POLA Mitigation Funding ♦ Federal Transit Authority 

Grants 
Funding Opportunities

♦ California Goods Movement Bond Funds

– Tugboats, Towboats, Crew and Supply Ves

and Commercial Fishing Vessels 

– $60 million available– Eligible two years prior to compliance date 

♦ Carl Moyer Funds

– All vessel types– Funding totals varies by local Air District– Eligible three years prior to compliance date 

regulated vessel types

– No eligibility limitations for non-regulated ve

types
Proposed 15 Day Chang

♦ Regulation Compliance Plan Reporting

– Currently required at time of initial repo15 DAY CHANGE– Report compliance plan by Feb. 28 the compliance is required

♦ Compliance Model Year Determination

– Emission control strategy applied, exte

engine compliance date 1-5 years

15 DAY CHANGE– This option would not apply to vessel lo

in the South Coast AQMD
Issues

♦ Extend accelerated engine replace

schedule to entire State

♦ Extend engine replacement require

to crew and supply boats

♦ Remove emission control strategy m

year compliance extension provisiostatewide

♦ Require Tier 4 replacement when 

available
Summary and 

Recommendation 

♦ Meets Goods Movement 2015 and 2020 g♦ Early reductions for South Coast♦ Cost effective♦ Staff recommends 

the Board adopt the proposed regulation