Port fuel incentives will not replace new rules

A possible distillate fuel subsidy scheme in Los Angeles and Long Beach will not replace new fuel rules being considered in California.

The scheme was announced this week by the Port of Los Angeles and the Port of Long Beach but, if approved this month, would run only until June 30, 2009.
"Most shipping lines will be able to start participating immediately," said Long Beach Harbor Commission President Mario Cordero. The two port authorities expected that new fuel rules from the California Air Resources Board (ARB) would come into play on July 1, 2009. The ARB presented that start date for its main engine distillate fuel requirements at a workshop earlier this month. The agency had intended to seek board approval for the new rules in April. But a spokesperson told the workshop that there were still aspects of the rule that needed further consultation and that it would seek approval in June this year. ARB also noted that it was continuing to evaluate technical issues related to fuel switching and was doing further work on the issue of fuel availability. It estimated, however, that the rules would lead to substantial reductions in particulate matter (PM) and sulphur oxides (SOx) emissions. The two port authorities this week saw their scheme as a means to achieve even faster reductions in the use of fuel oil bunkers and lower ship emissions. The ports have estimated that the additional cost to subsidize distillate fuel could run to $18.5 million.

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