November 19, 2024
Economic Development
PORT
DATE: November 19, 2024
TO: Mayor Martinez and Members of the City Council
FROM: Charles Gerard, Port Director
Lizeht Zepeda, Sr. Business Assistance Officer
Subject:
Port Contract with STAX Engineering for CARB-Approved
Emissions Control Solution
FINANCIAL IMPACT: The proposed expenditure was approved by Council through a Port Fund appropriation within Fiscal Year (FY) 2024-2025 Port Budget ($500,000 Account String:
40161080 400201).
PREVIOUS COUNCIL
ACTION:
October 1, 2024
STATEMENT OF THE
ISSUE:
The Port seeks approval of a contract agreement with
STAX Engineering to provide a CARB-Approved
Emissions Control System to comply with CARB At-Berth
regulations that become effective January 1, 2025.
RECOMMENDED ACTION: APPROVE an agreement with STAX Engineering, LLC in the amount of $500,000 to be paid over a two-year period to offset deployment and operations costs of deploying a California Air Resources Board (CARB)-Approved
Emissions Control Solution at the Port of Richmond for a term ending December 31, 2026 – Economic
Development Department (Charles Gerard 510-829-
2253/Lizeht Zepeda 510-620-6653).
AGENDA
REPORT
November 19, 2024
DISCUSSION:
The Port of Richmond is selecting an emissions control system to comply with the California Air Resources Board (CARB) regulations for ocean-going vessels. After evaluating various proposals, the Port of Richmond has chosen STAX Engineering’s CARB-approved Emissions Control System over G4 California Advanced Emissions Control System (CAECS). This decision was based on a comprehensive assessment of regulatory compliance, operational readiness, cost-effectiveness, and environmental impact.
The 2020 CARB At-Berth Regulations require that ocean-going vessels at berth in California ports reduce emissions of diesel particulate matter (PM) and oxides of nitrogen (NOx). This regulation applies to vessels visiting the Point Potrero Marine Terminal (PPMT) that handles roll-on/roll-off (RO-RO) cargo.
To ensure compliance by the January 1, 2025, deadline, the Port issued a Request for Proposals (RFP) for a CARB-Approved Emission Control System (CAECS) (Attachment 2). Two organizations submitted responsive proposals: STAX Engineering’s CAECS and G4 CAECS (Attachments 3 and 4). City Staff reviewed both proposals and STAX Engineering scored highest (Attachment 5).
STAX Engineering's system is already CARB-approved for container and auto carrier vessels and is expected to receive additional approvals for tanker vessels by the end of 2024. This ensures that the Port of Richmond can meet its regulatory obligations immediately upon the system's deployment. G4 CAECS, while demonstrating technological promise, had not yet completed CARB approval for the full range of vessel types required under the At-Berth Regulations.
STAX Engineering’s system boasts operational advantages, including a patented self- mooring spud-equipped barge and an exhaust capture system with the industry’s longest positioning boom reach. This flexibility allows the system to adapt to different vessel configurations without requiring significant infrastructure changes. The G4 CAECS system, while effective, did not provide the same level of adaptability to the unique operational environment at the Port of Richmond.
The STAX system provides lower long-term operational costs due to its modular design and efficiency in handling multiple vessel types. Additionally, STAX has secured contracts with major shipping companies such as NYK Line and Hyundai GLOVIS, which would ensure direct billing and offset costs for the Port. G4 CAECS proposed a more generalized cost model that would have resulted in higher expenses for the Port.
STAX Engineering has a proven track record of reducing harmful emissions at ports in Los Angeles, Long Beach, and Oakland. This aligns with the Port of Richmond's commitment to improving air quality for nearby communities, which are significantly
November 19, 2024
impacted by port emissions. STAX's system demonstrated faster implementation timelines and greater emissions reductions compared to G4 CAECS.
STAX Engineering is fully prepared to deploy its system as soon as possible. The company has three barges under construction and is strategically expanding its fleet to meet future demand. G4 CAECS, while technologically innovative, did not provide the same level of operational readiness for immediate deployment.
The Port of Richmond will contribute $500,000 towards offsetting the capital costs of deploying the STAX system, spreading this cost over a 24-month period, reducing the financial burden on the Port. The Port of Richmond's decision to choose STAX Engineering's CARB-approved emissions control system over G4 CAECS was influenced by a variety of factors, including regulatory compliance, cost, technological flexibility, and future-proofing. By selecting STAX Engineering, the Port demonstrates its commitment to meeting California's rigorous environmental standards while addressing the immediate air quality concerns of local residents.
POLICY SYNERGIES:
The contract supports the City overall efforts to reduce greenhouse gas emissions and increase health equity by improving the health of the environment. Specifically, the contract supports:
Climate Action Plan - Strategy GB1 Reduce Industrial Carbon Emissions Climate Action Plan - Strategy GB5 Reduce Emissions from Goods Movement
DOCUMENTS ATTACHED:
Attachment 1 – STAX Standard City Contract
Attachment 2 – 2024.09 CARB PPMT RFP Final
Attachment 3 – STAX RICHMOND Proposal
Attachment 4 – G4 Management Inc. City of Richmond Bid RFP Attachment 5 – CARB-Approved ECS Assessment Ranking