Air Quality Regulations Associated with Tanker Emissions

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Air Quality Regulations Associated with Tanker Emissions Board of Directors Meeting January 22-23, 2015 Anchorage, Alaska Austin Love Project Manager Terminal Operations A TALE OF TWO REGULATIONS 1. MARPOL ANNEX VI A. International Regulation B. Codified through the U.S. Act to Prevent Pollution from Ships C. Implemented by the U.S. EPA, enforced by the United State Coast Guard 2. VISIBLE EMISSIONS STANDARDS A. State Regulation B. Applicable to Marine Vessels and Stationary Sources C. Implemented and enforced by ADEC 1

DEFINITIONS IMO - International Maritime Organization MARPOL - International Convention for the Prevention of Pollution from Ships SOx - Sulfur Oxides NOx - Nitrogen Oxides ECA - Emissions Control Area MARPOL Annex VI - Prevention of Air Pollution from Ships 1.PARTICULATE MATTER A. Increased risk of lung cancer B. Associated with low birth weight, preterm birth, infant mortality C. Can double the chance of autism during third trimester of pregnancy 2.SULFUR DIOXIDE A. Apnea and shortness of breath B. Airway constriction C. Acidification of soils and water bodies 3.NITROGEN OXIDES A. Lung inflammation B. Associated with increased heart disease C. Nutrient enrichment of aquatic ecosystems 2

MARPOL Annex VI North American Emissions Control Area MARPOL Annex VI Sulfur Dioxide Control Two Ways to Comply 1. Use cleaner fuel 2. Install equivalent controls Fuel Sulfur Standard (max % by weight) ECA Sulfur Cap Global Sulfur Cap On and after Aug. 1, 2012 1.00% On and after Jan. 1, 2012 3.50% On and after Jan. 1, 2015 0.10% On and after Jan. 1, 2020 0.50% 3

Sulfur in Fuel Used by Valdez Tankers 3.5 Percent Sulfur by Weight in Fuel 3 2.5 2 1.5 1 0.5 0 Date MARPOL Annex VI Nitrogen Oxides Control Tiered Approach Achieved by Engine Modifications Fuel injection timing Combustion chamber geometry Valve timing Turbochargers Tier III 2.0 g NOx/kWh Tier II 7.7 g NOx/kWh Tier I 9.8 g NOx/kWh at 2,000 RPM Applicable Nitrogen Oxides Standards ECA Nitrogen Cap Global Nitrogen Cap Jan. 1, 2000 - Jan. 1, 2011 Tier I Jan. 1, 2000 - Jan. 1, 2011 Tier I After Jan. 1 2011 Tier II After Jan. 1 2011 Tier II After Jan. 1 2016 Tier III 4

MARPOL Annex VI Expected pollution reduction from tankers in Prince William Sound Metric Tonnes 40 35 30 25 20 15 10 5 0 Coarse Particulate Matter Fine Particulate Matter Metric Tonnes 400 350 300 250 200 150 100 50 0 Nitrogen Dioxides Sulfur Dioxide 2002 Emissions * 2020 Projected Emissions * Data Source: U.S. EPA. 2009. Regulatory Impact Analysis: Control of Emissions of Air Pollution from Category 3 Marine Diesel Engines. Assessment and Standards Division, Office of Transportation and Air Quality. MARPOL Annex VI Expected Heath and Economic Impacts in the United States Particulate Matter 2.5 Related Impacts Average 2020 Annual Health Effect Reduction in Ship Related Incidents Premature Death Adults (age 30+) 5,300 Adults (25+) 14,000 Infants (< 1 year) 20 Non-fatal Heart Attacks 8,800 Acute Bronchitis (ages 8-12) 8,500 Asthma Exacerbation 95,000 (ages 6-18) Work Loss Days 720,000 Annual Benefits of MARPOL VI Standards Description 2020 Annual Net Benefits (Millions of 2006 $) 3 percent discount rate 7 percent discount rate $45,000 to $110,000 $40,000 to $98,000 Data Source: U.S. EPA. 2009. Regulatory Impact Analysis: Control of Emissions of Air Pollution from Category 3 Marine Diesel Engines. Assessment and Standards Division, Office of Transportation and Air Quality. 5

1/20/15 VISIBLE EMISSIONS STANDARDS 1. Vessels cannot reduce visibility by more than 20% A. When at berth up to time that initial startup complete B. Exceptions: I. For 3 minutes in any one hour II. For 3 minutes during initial vessel startup 2. When visibility reduced by 15%, start observations 3. If observations show visibility reduction of 20% or more, must report deviation to ADEC SeaRiver Sierra, August 3, 2008 (Photo: Tom Kuckertz, PWS RCAC) VISIBLE EMISSIONS 2014 VIOLATION(S) - - - - July 31, 2014 - - - Ship SeaRiver Sierra Average Visibility Reduction 60% Duration 18 minutes Cause Startup/Shutdown of Engine SeaRiver Sierra, August 31, 2014 (Photo: Mark Swanson, PWS RCAC) 6

EPA METHOD 9 QUANTIFYING OPACITY WITH HUMAN OBSERVERS 7

SUPPLEMENTAL INFORMATION Fuel Type Cost ($/Metric Ton) 1 Intermediate Fuel Oil 180 300.00 Low Sulfur Fuel 180 (1.0% Sulfur) 345.00 Low Sulfur Marine Gasoil (0.10% Sulfur) 509.00 1. December 31, 2014 Rotterdam, Netherlands prices from Bunkerworld.com 8