US EPA and MARPOL Annex VI Air Pollution Updates

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US EPA and MARPOL Annex VI Air Pollution Updates Presentation for AAPA Cruise Seminar Environmental Issues Impacting the Cruise Industry Roxanne Johnson, US EPA, Pacific Southwest Region February 6, 2008 Page 1

Overview Background Air Quality Need and Emission Inventory US EPA and MARPOL Annex VI Air Pollution Updates Future Activities - EPA's Sustainable Ports Strategy National Clean Diesel Campaign - DERA (Clean Diesel Funding) - West Coast Collaborative Marine and Port Sector Efforts Page 2

Background EPA addresses 3 types of marine diesel engines Category 1: >37 kw, up to 5 liters per cylinder» Similar in size to land-based nonroad engines Category 2: 5 to 30 liters per cylinder» Similar in size to locomotive engines Category 3: at or above 30 liters per cylinder» Very large engines for propulsion on ocean-going vessels Page 3

Background EPA has adopted emission standards for C1, C2, and C3 engines on U.S. vessels C1 & C2: Engines below 2.5 liters per cylinder are subject to EPA Tier 2 standards beginning 2004 Engines at or above 2.5 liters per cylinder are subject to the MARPOL NOx limits beginning 2004 and more stringent Tier 2 standards beginning 2007 The standards cover NOx, PM, HC, and CO emissions Page 4

Background Category 3: EPA adopted emission standards for C3 US flagged vessels in January 2003 In-cylinder controls to meet IMO NOx limits We made a commitment to issue a second tier no later than April 2007 we did not achieve that deadline» Additional use and optimization of in-cylinder controls» More advanced technologies (i.e., SCR and water injection) Page 5

Background We projected expected inventory reductions from combined Annex VI and Tier 2 standards in 2030 compared to uncontrolled: NOx: 26% PM: 12% Page 6

Air Quality Need and Emission Inventory Air Quality is a National Priority 75% of the nation s risk from PM2.5 is in CA - 50% is in the LA area alone Category 1, 2, and 3 marine diesel engines are significant contributors to our national mobile source emission inventory Page 7

Inventory Overview for NOx Marine diesel engines contribute significantly to air pollution mobile sources in the United States 2001 Mobile Source NOx Inventory (12,960,000 tons) CI NR 11% CI Marine 7% C3 Marine 6% 2030 Mobile Source NOx Inventory (6,010,000 tons) Highw ay 26% CI NR 7% CI Marine 12% Highw ay 62% Locomotive 9% Aircraft 1% Other Nonroad 4% Other Nonroad 5% Aircraft 2% Locomotive 14% C3 Marine 34% Source of inventory estimates: C3 Marine ANPRM, 72 FR 69522 (Dec 7, 2007) Page 8

Inventory Overview for PM2.5 The marine diesel contribution is expected to grow as emissions from other sources decrease 2001 Mobile Source PM2.5 Inventory (500,400 tons) Highw ay 32% 2030 Mobile Source PM2.5 Inventory (366,300 tons) Highw ay CI NR 18% 5% CI Marine 7% CI NR 33% Other Nonroad 16% Other Nonroad 11% Aircraft 1% Locomotive 6% CI Marine 6% C3 Marine 11% Aircraft 2% Locomotive 7% C3 Marine 45% Page 9

Inventory Overview for SOx SOx emissions are high due to the sulfur content of residual fuel used in C3 engines 2001 Mobile Source SO2 Inventory (1,080,000 tons) Highw ay 25% CI NR 16% Other Nonroad 1% Aircraft 1% 2030 Mobile Source SO2 Inventory (1,480,000 tons) Highw ay 3% CI NR 0% CI Marine 0% CI Marine 8% Locomotive 0% Other Nonroad 1% Aircraft 1% Locomotive 7% C3 Marine 42% C3 Marine 95% Page 10

Ocean-Going Vessels Valdez, AK Seattle, WA Tacoma, WA San Francisco, CA Oakland, CA LA/Long Beach, CA Beaumont, TX Galveston, TX Houston, TX New Orleans, LA South Louisiana, LA Miami, FL Port Everglades, FL Jacksonville, FL Savannah, GA Charleston, SC Wilmington, NC Baltimore, MD New York/New Jersey Boston, MA C3 a Contribution to Selected Ports Port Area NOx 4% 10% 20% 1% 8% 5% 6% 5% 3% 14% 12% 13% 9% 5% 24% 22% 7% 12% 4% 4% PM 2.5 10% 20% 38% 1% 14% 10% 20% 12% 10% 24% 24% 25% 20% 11% 39% 33% 16% 27% 9% 5% a This category includes emissions from Category 3 (C3) propulsion engines and C2/3 auxiliary engines used on ocean-going vessels. SOx 43% 56% 74% 31% 80% 71% 55% 47% 41% 59% 58% 66% 56% 52% 80% 87% 73% 69% 39% 30% Emissions from OGVs can be important in specific ports (2002; source: 2007 ANPRM) Page 11

Cruise Ships Engines on cruise ships are a subset of all marine diesel engines Cruise ships have all three types of engines» C3 for propulsion power» C1 and C2 for auxiliary power Virtually all cruise ships that use U.S. waters and ports are flagged outside the U.S. Page 12

US EPA Update Soon to release tighter standards for Locomotive and Marine C1 and C2 final rulemaking Released Final rule in November 2007 to extend the regulatory deadline for C3 marine engines from April 27, 2007 to December 17, 2009 Advanced Notice of Proposed Rulemaking for C3 marine engines released in November 2007 Comments due March 6, 2008 Page 13

What our Rules Cover-- Marine Diesels Category 1 (<5 liter/cylinder) Commercial workboats police boats fishing vessels Category 2 (5 to 30 liter/cyl) gen sets sailboats cruisers Recreational tugboats ferries auxiliary power for ocean-going vessels Category 3 (>30 liter/cyl) yachts Great Lakes freighters ocean-going ships (separate rule) Page 14

US EPA Updates Locomotive and Marine C1 and C2 rulemaking - Final rule soon to be released - March 2007 we proposed more stringent PM and NOx exhaust emission standards for locomotives and marine diesel engines. - We proposed a three-part program: - (1) tightening emission standards for existing locomotives when they are remanufactured, - (2) setting near-term engine-out emission standards (Tier 3), for newly-built locomotives and marine diesel engines; and - (3) setting longer-term standards (Tier 4), for newly-built locomotives and marine diesel engines that reflect the application of high-efficiency aftertreatment technology. Page 15

US EPA Update C3 ANPRM - Comments due March 6, 2008 - Significant contributors to our national mobile-source emission inventory - Largely based on a proposal submitted by the United States government to the 11th meeting of the Subcommittee on Bulk Liquids and Gases at the International Maritime Organization, held in April 2007. The standards under consideration consist of two tiers of NOx emission standards and performance-based SOx and PM standards, could began as early as 2011 C3 Final Rulemaking - New deadline has been established for a final rule: December 2009 Page 16

IMO Annex VI Update MARPOL International Convention for the Prevention of Pollution from Ships, 1973, as Modified by the Protocol of 1978 Relating Thereto (MARPOL 73/78) Annex VI Regulations for the Prevention of Air Pollution from Ships (1997 Protocol) Page 17

Annex VI Update MARPOL Annex VI entered into force as of May 19, 2005. Senate gave advice and consent on April 6, 2006. House passed H.R. 802, an Act To amend the Act to Prevent Pollution from Ships to implement MARPOL Annex VI on March 26, 2007. H.R. 802 is presently before to the Senate Commerce, Science, and Transportation Committee for consideration. Page 18

Annex VI SOx Limits The Annex also contains fuel sulfur content limits 45,000 ppm generally 15,000 ppm for SOx Emission Control Areas (SECAs)» Two areas so far: Baltic Sea and North Sea Current global average is about 27,000 ppm A SECA is a mechanism available under Annex V1 EPA, in cooperation with a number of stakeholders, including CARB and Environment Canada, is perfromin the technical background work necessary for the US to make a decision regarding applying to IMO in the future for a SECA designation Page 19

Annex VI - Enforcement We are engaged in the IMO Annex VI negotiation process The standards can be enforced against any ship that visits a port of a country that is a party to the convention after that port state ratifies the Annex, whether or not the flag state of the ship has ratified Page 20

US Standards Comparison - Ships vs. Other Sources Page 21

Climate Change IMO has a separate agenda item for climate change within the Marine Environment Protection Committee The U.S. government is involved in these discussions Page 22

Strategy for Sustainable Ports EPA has developed a Strategy for Sustainable Ports to help guide the agency as it continues to engage public port authorities and other stakeholders in voluntary efforts to reduce the environmental impacts associated with moving goods through the marine transportation system. The Strategy supports existing and new EPA programs and projects that will produce measurable results in 2008 and beyond. EPA headquarters and regional offices have made commitments to work with others to implement specific actions in the Strategy based on their priorities. Page 23

National Clean Diesel Campaign Two components Regulatory Innovative Technology-driven Cost-effective Helping communities achieve public health goals Page 24

West Coast Collaborative Innovations in Clean Diesel» Approximately $500K for projects that reduce diesel emissions within the jurisdiction of Region 9 (California, Nevada, Arizona, Hawaii, and the U.S Pacific Islands)» All projects must demonstrate applications, technologies, methods or approaches that are new, innovative or experimental.» EPA anticipates awarding approximately 2-3 assistance agreements under this announcement» Proposals are due February 15, 2008 Marcus Peacock (EPA Deputy Administrator) and Wayne Nastri (EPA R9 Administrator) present $300,000 award to Port of Long Beach for Hybrid Yard Hostler Project.» For more information, visit: http://www.epa.gov/region09/funding/cleandiesel.html Page 25

Diesel Emission Reduction Act Program Overview FY08 National Clean Diesel Program $50 Million for FY08 National Program 70% of total funding State Program 30% of total funding Clean Diesel Grants Program Clean Diesel Finance Programs State Clean Diesel Grants Program Clean Diesel Emerging Technologies Grants Page 26

Clean Diesel Funding: Energy Policy Act of 2005 Authorization Diesel Emissions Reduction Program (also known as The Clean Diesel Programs) Sub-title G, Sections 791-797 $200M per year for five years Separate authorization, not CAA 103 or 105 Allows for implementation rather than demonstration Page 27

Additional Information More information about EPA s marine diesel engine emission control programs can be found on our website: www.epa.gov/otaq/marine.htm www.epa.gov/otaq/oceanvessels.htm Contacts: Bryan Wood-Thomas at 202-564-1682 Jean-Marie Revelt at 734-214-4822 Roxanne Johnson at 415-947-4150 Page 28