August 8, 2024
Notes on CARB At Berth Regulations (and FAQs Appendix)
Port of Richmond – Charles Gerard, Port Director
Reference Documents:
CARB Website:
• Homepage | California Air Resources Board
Ocean-Going Vessels At Berth Regulation:
• Ocean-Going Vessels At Berth | California Air Resources Board At Berth Regulation Frequently Asked Questions (FAQ)
• At Berth Regulation Frequently Asked Questions (FAQ) | California Air Resources Board Terminal and Port Plan Submissions
• Terminal and Port Plan Submissions | California Air Resources Board At Berth Final Regulation
• At Berth Final Regulation Text (ca.gov)
General Comments on CARB regulations and compliance:
• At Berth regulations for RoRo vessels were announced in 2020 and have been scheduled to commence on January 1, 2025.
• Regulated parties for compliance include vessel operators, terminal operators, ports. • Compliance obtained through either through (1) shore-power connection or (2) CARB- Approved Emissions Control System (CAECS).
• All regulated parties must submit compliance reports (Vessel, Terminal, Port, CAECS). • Ports and Terminals must each submit a plan to comply or submit a collaborative plan to comply starting in 2021.
• Regulated parties may pay a remediation fund fee (rather than penalty fee) if non- compliance reasons are provided to CARB and accepted by CARB. • Remediation fund fee requires reporting per vessel call. • The expected remediation fund fee would be $1,900 per hour per vessel. o Below is rough cost estimate that does not include administrative overhead or risk that remediation requests may not be accepted.
• Non-compliance fee (penalty fee) for each day and partial day can be up to $37,500.
Port of Richmond efforts and status on CARB Compliance:
• The Port started working on a Shore Power solution to comply with CARB in 2022. This project did not commence for a variety of reasons. At present, it has still not started because we have had one vendor submit to complete a design plan, and they are unable to comply with the City’s standard contract and clauses regarding local hires. The Port has been working to try to resolve this issue for months.
• The above project to provide a hard-wired Shore Power connection is at least two years behind the compliance schedule.
• Additionally, the Shore Power solution will cost up to $12M, and it is not yet funded. (Grant applications submitted.)
• An alternative to Shore Power compliance is for the Port to provide a CARB Approved Emissions Control Solution, or CAECS. This solution consists of placing a barge facilitated exhaust gas capture mechanism that scrubs the exhaust and reduces harmful emissions.
This is referred to as the “barge and bonnet” solution. See picture below:
• The Port has been working with STAX Engineering to deploy a CAECS (barge and bonnet solution) in Richmond.
• At other ports, STAX Engineering has been able to successfully negotiate a service agreement directly with the shipping lines. However, because the Port of Richmond is a smaller port with only 80 (or less) RoRo Ship calls per year, the cost per ship is measurably higher than at other ports that have many more ship calls per year. • STAX Engineering and the Shipping Lines have not been able to conclude a commercial agreement due cost.
• Furthermore, because the Port of Richmond is the owner of the facility and a regulated party, the Port will be responsible to pay the Remediation Fund fee (estimated at $2.5M per year) plus significant overhead in reporting responsibilities, or the Port may need to pay a significantly higher non-compliance fee if our application for Remediation payments is not accepted.
Port of Richmond Proposed Solution Options - through Funding Support:
• Option A:
o If the Port can offset the cost of the Barge and Bonnet solution by $500,000, we believe this will bridge the commercial gap between STAX Engineering and the Shipping Lines.
o This funding would be used to offset the cost of deployment for STAX Engineering, and therefore, allow them to provide a more competitive rate to the Shipping Lines calling at the Port of Richmond.
o One Time cost: $500,000
o This funding is NOT in the current budget.
• Option B:
o The Port could also provide a Wharfage/Dockage tariff reduction for the RoRo vessels for the 2025 and 2026 Calendar years.
o The current Wharfage/Dockage revenue is ~ $1,700,000 per year. A 15% reduction would be $255,000 per year.
o Cost would be an approximately $255,000 reduction in revenue for two years.
Appendix: Summary and consolidation of CARB At Berth Frequently Asked Questions (FAQs):
GENERAL QUESTIONS & APPLICABILITY
4. Who must comply with the 2020 Regulation?
Vessel operators, terminal operators, ports, and third-party CARB-Approved Emissions Control Strategy (CAECS) operators are all subject to the 2020 Regulation.
The following table identifies the primary regulated parties:
5. When do requirements for the 2020 Regulation begin?
The 2020 Regulation took effect on January 1, 2021; however, emissions controls for the 2020 Regulation will not phase in until the following dates:
Reporting for all vessel types will begin January 1, 2023, regardless of whether a vessel or terminal has emissions control requirements.
7. How are regulated entities expected to comply with the 2020 Regulation? Regulated entities can comply with the 2020 Regulation using any CAECS. This includes shore power, one of the capture and control systems currently approved for use with the 2007 Regulation, or a future CARB-approved shore- or vessel-based solution (including alternative fuels, etc.).
8. What happens if a vessel cannot connect to shore power or another CAECS? If a regulated vessel visiting a regulated California berth cannot connect to a CAECS, a Vessel or Terminal Incident Event (VIE or TIE) may be used to comply with the 2020 Regulation, or the vessel or terminal operator may apply to use the remediation fund if the lack of connection is due to a qualifying circumstance (as described in section 93130.15(b) of the 2020 Regulation).
9. Who is responsible for providing shore-side emissions control equipment and/or infrastructure?
Vessel operators, terminal operators, ports, and CAECS operators have shared obligations for reducing at berth emissions. Generally, terminals and ports will be responsible for installing shore- side emissions control equipment and/or infrastructure, while vessel operators are responsible for installing any necessary equipment onboard a vessel.
12. Can regulated entities rely on commercial arrangements with third-party CAECS operators to meet the requirements of the 2020 Regulation?
A regulated entity is free to utilize a third-party operated CAECS for compliance with the 2020 Regulation as long as the system has received CARB approval. There are regulatory obligations for CAECS operators (including third-party providers), and not fulfilling the obligations of the regulation may result in enforcement actions against the CAECS operator.
VESSEL OPERATOR REQUIREMENTS
18. What defines a “visit”?
As set forth in section 93130.2(b)(91), a visit is defined as the time period from when the vessel is “Ready to Work” to “Pilot on Board” . A vessel is considered “Ready to Work” when it is tied to the berth, the gangway has been lowered with netting down, and all government authorities with jurisdiction over the vessel visit have cleared the vessel, as set forth in section 93130.2(b)(63). And “Pilot on Board” occurs when the vessel’s pilot has boarded the vessel to assume navigational control to prepare for vessel departure, as set forth in section 93130.2(b)(58).
25. What is required of regulated vessel operators?
Any vessel visiting a terminal that receives 20 or more visits in a calendar year from container, reefer, cruise, ro-ro, and/or tanker vessels must: • Reduce emissions using a CAECS while at berth; • Control emissions within 2 hours of the vessel being “Ready to Work” and arriving at the berth; • Continue to control emissions until no sooner than one hour before the pilot boards the vessel for departure from the berth; • Follow the checklist in section 93130.7(e) of the 2020 Regulation, which includes reporting visit information for each visit for all vessel visits, including any visits without emissions reduction obligations; and • Meet opacity limits as specified in section 93130.6 of the 2020 Regulation.
26. What is the compliance checklist for vessel operators? The compliance checklist for vessel operators is a checklist of items that vessel operators need to complete to ensure compliance with the 2020 Regulation. The checklist can be found in section 93130.7(e) of the regulation.
TERMINAL OPERATOR AND PORT REQUIREMENTS
34. Do all California terminal operators have requirements under the 2020 Regulation? Yes, all terminal operators who receive ocean-going vessels at California berths are subject to regulatory requirements. Any berth located at a regulated terminal (meaning any terminal that received 20 or more visits during a calendar year from a regulated vessel type) is required to reduce emissions from vessel visits.
36. What is required of affected terminal operators under the 2020 Regulation? Operators of terminals receiving 20 or more visits from container, reefer, cruise, ro-ro, and/or tanker vessels in a calendar year must ensure that each berth has a CAECS available for use for each regulated vessel visit. Regulated terminal operators must follow the checklist in section 93130.9(d), which includes reporting visit information for each visit for all vessel visits, even those visits without emissions reduction obligations. Lastly, terminal operators were required to provide CARB with terminal plans by December 1, 2021, demonstrating how the terminal intends to comply with the 2020 Regulation. All terminal plans and CARB’s responses to each plan were posted to CARB’s website at: Terminal and Port Plan Submissions | California Air Resources Board.
37. What is the compliance checklist for terminal operators? The compliance checklist for terminal operators is a checklist of items that terminal operators need to complete to ensure compliance with the 2020 Regulation. The checklist can be found in section 93130.9(d) of the regulation.
PORT REQUIREMENTS
40. What are a port’s obligations under the 2020 Regulation? Ports with regulated terminals must ensure that each regulated terminal has the infrastructure needed to reduce emissions from each regulated vessel visiting every berth at that terminal. Ports are responsible for any equipment or necessary infrastructure that is beyond a terminal operator’s contractual ability to provide (i.e., vault installations if the port is responsible for all wharf modifications). …
If a terminal operator and/or vessel operator elects to purchase, install, and use CAECS equipment that does not need port assistance or infrastructure to operate in compliance with the 2020 Regulation, then the port has no additional responsibility for that equipment.
CARB APPROVED EMISSIONS CONTROL STRATEGY (CAECS) OPERATOR REQUIREMENTS
43. Are there any fees associated with being a CAECS operator in the At Berth Regulation? Yes, there are fees associated CAECS approval and oversite under CARB's Mobile Source Certification and Compliance Fee Regulation (Title 13, Article 7 Certification Fees for the At-Berth Regulation). These fees include test plan review, at-berth application, CEMS data review, design change, and minor amendments. For more information on the fee amounts and how to pay these fees, please visit the Mobile Source Certification and Compliance Fee Regulation program page.
45. What is required of a CAECS operator under the 2020 Regulation? Operators of a CAECS must ensure they follow all requirements laid out in section 93130.12 of the 2020 Regulation, including following the CAECS checklist, reporting vessel visit information to CARB, properly maintaining a list of all subcontractor services and agreements in place, reporting any malfunctions of a CAECS and submitting corrective action reports to CARB as needed.
EXCEPTIONS AND REMEDIATON
60. What circumstances qualify for an exception, VIE/TIE, or remediation fund use? Vessel visits that do not achieve the emissions reductions as required by the 2020 Regulation may elect to use a number of different exceptions to comply with the Regulation. Table 6 in section 93130.18 of the Regulation identifies several situations that may be eligible for each compliance pathway and who is likely to be identified as responsible parties in the event of noncompliance.
68. Who is required to use a VIE/TIE or pay remediation fees in the event a vessel cannot connect to a CAECS?
The 2020 Regulation does not dictate when a vessel or terminal must use a VIE/TIE, or which party must pay the remediation fund in a qualifying event. It is up to the vessel and terminal operators to work together to decide this matter. In the event of a dispute, CARB enforcement staff may consider the visit noncompliant and investigate all responsible.
REMEDIATION FUND
82. What is the remediation fund?
The remediation fund is an additional compliance option that may be used in specific limited circumstances (as set forth in section 93130.15 of the Regulation) where vessel operators, terminal operators, CAECS operators, and/or ports have already made efforts to comply with the 2020 Regulation, but are unable to achieve emissions reductions. See FAQ 84 for the specific limited circumstances in the Regulation. Regulated entities can pay into this fund to remediate their uncontrolled emissions and remain compliant with the 2020 Regulation, and the funds collected will go towards projects that reduce equivalent emissions in the same port communities that are impacted by the uncontrolled emissions.
83. Who can use the remediation fund?
Any vessel operator, terminal operator, CAECS operator, or port that has made an attempt to install and/or use infrastructure to comply with the 2020 Regulation, but is unable to due to a qualifying circumstance, may apply to pay into the remediation fund to remain in compliance with the 2020 Regulation. CARB does not specify which regulated entity pays the remediation fund when the required emissions reductions are not achieved; this decision is between the regulated entities (vessel operator, terminal operator, ports, and third-party CAECS operator, if applicable). CARB requires only that the emissions reductions are achieved or that the remediation fund monies are received in lieu of any excess emissions reductions (in qualifying circumstances as set forth in section 93130.15(b).
86. How is the remediation fund calculated?
The amount paid per hour for remediation is based on vessel type and engine classification and is set forth in Table 4 in section 93130.15 of the Regulation. Each partial hour of excess emissions shall be counted as a full hour for the purpose of calculating the payment.
Ref.
REPORTING REQUIREMENTS
106. Who is required to report and how often?
The 2020 Regulation’s updated reporting requirements for all vessel types will begin January 1, 2023, regardless of whether a regulated vessel or terminal has emissions control requirements.
Vessel and 39 terminal operators (and third-party CAECS operators, if applicable) are responsible for reporting visit information for each visit made by a regulated vessel to a regulated marine terminal. The 2020 Regulation requires that visit reports be submitted to CARB within 30 calendar days of each vessel’s departure. Separately, ports are responsible for providing wharfinger data on an annual basis.
107. Why do both ports and terminals have reporting requirements? CARB staff recognizes the duplicative nature of required reporting but believes it is necessary.
Because both the terminal and vessel operators have compliance obligations, reporting by each party is essential to providing accurate information in order to determine if compliance obligations are met without relying on the accuracy of a secondary entity reporting the information. Requiring each party to provide original information is intended to allow CARB staff to cross-check information and ensure that the reporting details are correct.
108. What visit information are vessel operators required to report to CARB? Beginning January 1, 20234F 5 , ALL vessel operators (or other authorized party) visiting any California port or marine terminal (including a low-use or exempt berth) must report the information set forth in section 93130.7(e)(4) to CARB within 30 calendar days of each vessel’s departure.
Please see the link to the reporting templates at: At Berth Reporting Templates | California Air Resources Board.
109. What visit information are terminal operators required to report to CARB? Beginning January 1, 20235F 6 , ALL California regulated terminal operators (or other authorized party) must report the information set forth in section 93130.9(d)(5) to CARB within 30 calendar days of each vessel’s departure.
110. How long do vessels and terminal operators have to report visit information? Vessel operators, terminal operators, and CAECS operators must submit visit reports to CARB within 30 calendar days of each vessel’s departure.
111. How do vessel and terminal operators submit visit reports to CARB? Visit reports can be submitted directly to CARB via electronic or written submission, as detailed in section 93130.19 of the 2020 Regulation. Electronic submissions may be sent to [email protected]
.
PORT AND TERMINAL PLANS
119. What is a port plan?
A port plan is a planning document that must be submitted to CARB discussing how a regulated terminal intends to comply with the requirements of the 2020 Regulation. As set forth in section 93130.14(b) of the Regulation, port plans must include a discussion of any necessary infrastructure modifications needed to ensure that each regulated terminal at that port is capable of achieving the required emissions reductions by the implementation dates established for each regulated vessel category.
120. What is a terminal plan?
Similarly, a terminal plan is a planning document that must be submitted to CARB by regulated marine terminal operators discussing how a regulated terminal intends to comply with the requirements of the 2020 Regulation. As set forth in section 93130.14(a) of the Regulation, terminal plans must include discussion of any necessary infrastructure modifications needed to ensure that each berth is capable of achieving the required emissions reductions by the implementation dates established for each regulated vessel category.
121. Who is required to submit a port and/or terminal plan? All terminals receiving 20 or more visits from a regulated vessel category must submit a terminal plan, and all ports with regulated terminals must submit a port plan. All port and terminal plans must be 42 signed by the applicable port’s and terminal’s Responsible Official under penalty of perjury and are subject to verification by CARB staff.
ENFORCEMENT
166. What should I do if I know I will be in violation of the 2020 Regulation? In these circumstances, CARB encourages regulated entities to work with CARB’s Enforcement Division in advance of any known violations. Questions regarding compliance can be directed to enforcement staff at [email protected].
168. What is the penalty for not complying with the 2020 Regulation? Pursuant to the Health and Safety Code and the 2020 Regulation, each failure to meet any requirement of the At Berth Regulation constitutes a single, separate violation. Additionally, each item on the checklist is considered a separate action. Section 43016 of the Health and Safety Code states penalties shall not exceed $37,500 for “each action” subject to this part of the code. The maximum penalty under HSC section 43016 increases by the California Consumer Price Index (CPI) each year and is listed in the Enforcement Division’s Annual Report. Also, each calendar day, or portion of, in which violations occur will be a separate daily violation, so if a visit occurred across two calendar days, it would be considered two days of violations for each action or each item violated in the checklist. All responsible parties may be held jointly and severally liable for non- compliance, depending on the findings made by CARB’s Enforcement Division.