San Pedro Bay Ports. Technology Advancement Program. Final Guidelines
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1 Technology Advancement Program Final Guidelines March 30, 2007
2 Table of Contents 1.0 Introduction Ports History of Technology Advancement Technology Advancement Program Focus Areas Specific Control Measure Requirements Green-Container Transport Systems Emerging Technology Development Emissions Testing and Emissions Inventory Improvements Advisory Committee Program Funding Types of Projects Port Generated Projects Solicited Proposals Unsolicited Proposals Project Requirements Project Criteria Project Deliverables Cost Recovery/Intellectual Property Tracking and Monitoring Adopting New Technologies...17 Tables and Figures Table 4.1: Annual Funding Level for Technology Advancement Program by Fiscal Year.10 Figure 5.1: Flow Chart for Processing Unsolicited Proposals...12 Table 6.1: Example Evaluation Criteria and Maximum Scores for RD&D projects...16 Attachments Attachment A: Port Advanced Technology Proposal Recommendation Form Attachment B: Unsolicited Proposal Format for Research, Development and Demonstration Projects
3 1.0 Introduction On November 20, 2006, during a joint meeting between the Board of Harbor Commissioners of the Ports of Long Beach (POLB) and Los Angeles (POLA), the Final 2006 San Pedro Bay Ports Clean Air Action Plan (CAAP) was adopted. A significant initiative of the CAAP is the Technology Advancement Program, which will accelerate the availability of new strategies into the suite of control measures that will ultimately result in significant reductions of diesel particulate matter (DPM), nitrogen oxides (NOx), sulfur oxides (SOx), and other pollutants. The Mission Statement for the Technology Advancement Program is to accelerate the verification or commercial availability of new, clean technologies, through evaluation and demonstration, to move towards an emissions free port. It is envisioned that the Technology Advancement Program will be the catalyst for identifying, evaluating, and demonstrating/piloting new and emerging emissions reduction technologies/strategies applicable to the port industry that could then be utilized in future updates to the CAAP as new control measures, alternatives to existing strategies, or as additional mitigation options for new projects. Below is a simplified illustration of how the process would work. New/Emerging Technology Technology Advancement Program Implementation The Technology Advancement Program is focused on new and emerging technologies, with the objectives of streamlining the process for reaching consensus on the emission reductions achieved by various technologies and facilitating development of new technologies and their adoption throughout the port industry. The Technology Advancement Program is a component of the CAAP, and therefore, may be adjusted or updated each year during the annual CAAP update process in order to ensure that the program is supporting achievement of the overall CAAP goals. 1.1 Ports History of Technology Advancement This initiative builds on the success and synergies of the San Pedro Bay Ports, CARB, SCAQMD, EPA Region 9, tenants, and other stakeholders working together to find joint solutions. Several successful projects have occurred over the years between these entities, and this program will build on those early successes. Each Port has conducted air emission reduction technology advancement projects to evaluate specific technologies and accelerate their availability in the marketplace. Nearly five years ago the Ports began actively pursuing emission reduction strategies for several source categories. Port of Long Beach evaluated 1
4 potential emission reduction technologies and fuels for terminal equipment and developed a brochure to inform its tenants about available strategies. Port of Long Beach also assisted technology providers in working with tenants and the California Air Resources Board (CARB) to achieve the first off-road verification for Diesel Oxidation Catalysts (DOCs) and final verification for emulsified fuel. In addition, using Port, CARB, and Environmental Protection Agency (EPA) funding, the Ports provided grants to terminal operators to begin using emulsified diesel and/or retrofitting their equipment with DOCs. Through this effort at POLB, over 600 pieces of equipment were retrofit with DOCs and approximately 200 pieces of equipment were fueled with emulsified diesel. In addition, POLB facilitated the introduction of ethanol blended diesel fuel to its tenants, through which one terminal converted over 100 pieces of equipment. The POLB also began using ethanol blended diesel fuel in their nearly 40 pieces of heavy-duty equipment operated by the POLB Maintenance Division. Both Ports have worked cooperatively with their tenants to implement LNG fueled yard hostler demonstration projects, to develop the prototype equipment and evaluate the performance in terminal operations. The final results of the project will include an emissions comparison with traditional diesel powered equipment, user feedback, and a business case assessment. The two ports, with grant funding support from EPA, are also partnering on a diesel hybrid development and demonstration project, which will be conducted similarly to the LNG fueled yard hostler project, comparing the performance to traditional diesel powered equipment with a final evaluation of emission reductions, operational performance, and a business case assessment. As part of the Port amended operating agreement with Pacific Harbor Line (PHL), the switcher locomotive operator in the two ports, PHL is required to perform demonstrations of diesel hybrid and LNG powered locomotives and a demonstration of post combustion treatment. PHL has voluntarily gone beyond their requirements to demonstrate a multiple engine generator set (gen set) locomotive, and has purchased two gen sets, with the assistance of Carl Moyer funding provided by SCAQMD. In addition, PHL has committed to work with the Port to demonstrate the use of diesel particulate filters (DPFs), and if effective, will retrofit their locomotives with DPFs, with funding assistance by the Ports. In addition, in a joint project to demonstrate and evaluate emission reduction technologies on vessels, the two Ports, in partnership with APL, CARB, EPA and multiple air districts up the state, have partnered to implement a fuel emulsification and slide valve demonstration project. The project is expected to be fully implemented during the first half of In addition, Metropolitan Stevedore Company, with the assistance of the Port of Long Beach, is developing a demonstration of the Alternative Maritime Emission Control System, which will 2
5 be designed to capture and treat DPM, NOx, and SOx emissions from vessels at berth. The demonstration is expected to be completed in the Spring of The Port of Los Angeles (POLA) is the first port in the world to plug containerships into clean electrical power while at dock. Since 2001, with many environment programs already in place, POLA decided to push research in Alternative Maritime Power or AMP. Since its implementation of AMP, POLA has eliminated 80 tons of pollutants from the air from the first three quarters of 2005 alone. AMP is now becoming more commonplace with containerships as evidenced by several Port customers including China shipping, NYK, Evergreen, P&O Nedlloyd and APM Terminals. POLA is in discussions with several cruise lines to expand the use of AMP. Through POLA s Air Quality Mitigation Incentive Program, implemented in 2003, more than half of the nearly $22 million allocated for improvements in marine auxiliary, marine, and off-road equipment, with at least 25 percent of the funding for Research and Demonstration projects, has been allocated. Some of the funded Research and Demonstration projects include post-combustion treatment systems on cargo handling equipment, the use of alternative fuels on cargo handling equipment, and the installation and testing of a water-in-fuel emulsification system on an ocean going vessel. Additional projects are currently being identified for funding under this program and another solicitation for projects will be available at the end of Since 2005 POLA has purchased and installed DOCs on more than 700 pieces of customer-owned on-dock equipment reducing PM emissions by at least 25%. POLA, in cooperation with US EPA and with a grant from the US Department of Transportation Maritime Administration, joined the Port of Shangai in signing reciprocal environmental agreements: a Friendship Agreement and Letter of Intent for Collaboration on Air Quality Issues. This collaborative approach will ensure that air technology and environmental efforts at the Ports will be shared, discussed, and adopted. Additional International outreach efforts are underway, as the success of ocean going vessel emissions reductions programs will be easier to implement with collaborative support. In addition, it is very important to recognize the voluntary efforts made by the terminals and operators in both Ports for advancing and adopting new technologies on their own. Not only have the terminals and operators worked cooperatively with the Ports in advancing new technologies, but in many cases they have sought out and tested new technologies on their own in order to achieve emissions reductions, fuel savings, and operational improvements. Currently, several terminals have independently moved forward with testing new 3
6 technologies for reducing emissions from terminal vehicles, rubber tired gantry cranes (RTGs), and from ocean going vessels. The Ports will continue to work cooperatively with our tenants, carriers and operators to ensure that more and better choices are available to meet the emissions reductions goals for port operations. In addition, the Ports regularly meet with technology developers in order to stay informed about new and emerging technologies that may provide some options for reducing emissions from port operations. 2.0 Technology Advancement Program Focus Areas There are four fundamental areas in which the program will focus its initial work: Specific control measure requirements Green-Container Transport Systems Emerging Technology Testing Emissions Inventory Improvements The primary focus for this program will be to reduce emissions of DPM, NOx and SOx, consistent with the Clean Air Action Plan. In addition, as stated by the two Port s Harbor Commissions during adoption of the Clean Air Action Plan, additional focus will be on the reduction of Green House Gas (GHG) emissions and ultrafine particles. 2.1 Specific Control Measure Requirements Several measures included in the San Pedro Bay Ports Clean Air Action Plan require additional technical information in order to be fully implemented and to be able to properly estimate the emissions reductions achieved in the ports emissions inventories. Specific control measure requirements identified in Clean Air Action Plan that need demonstration, additional evaluation, and testing include: SPBP-OGV1: Emissions source testing of ships participating in the VSR program to determine the magnitude of DPM, NOx, and SOx reductions associated with the measure. As part of this effort, selected ships will undergo in-use testing of the main engines to determine the effects of the VSR program. SPBP-OGV2: Demonstration and testing of AMECS with respect to atberth emissions reductions. The Port of Long Beach is leading this effort with the demonstration scheduled at one of their bulk facilities. This demonstration will be rolled into the Technology Advancement Program. SPBP-OGV3&4: Evaluation of technical, logistical, and fuel supply issues associated with use of cleaner fuels in the main engines. Update the Port 4
7 of Los Angeles Fuel Availability Study and start discussions with fuel suppliers and producers on availability at ports that are in associated strings with the San Pedro Bay Ports. SPBP-OGV5: Demonstration and emissions source testing of main and auxiliary engine emissions reduction strategies such as MAN-B&W slide valves. Slide valves are being utilized by several ships however; emissions reduction claims by the manufacturers have not been evaluated with test data. As part of this effort, the engine manufacturer will be asked to submit their testing data on slide valves and as needed in-use source testing will be conducted. In addition to slide valves, other promising emissions reduction technologies (such as exhaust gas scrubbers, selective catalytic reduction, seawater scrubbers, etc.) will be similarly evaluated as part of the program to determine the magnitude of emissions reductions and to ensure that emissions don t actually increase. SPBP-OGV5: Discuss and draft proposed clean ocean-going vessel guidelines with respect to air quality for both existing vessels and new builds. SPBP-CHE1: Develop fact sheets identifying clean technologies for cargo handling equipment. SPBP-HC1: Demonstration, emissions source testing, and evaluation of emissions reduction technologies for harbor craft. Focusing on the transfer of successful control strategies for other land-based sources that use similar engines, such as DPFs and DOCs. In addition, new technologies or approaches such as hybrid configurations that are currently being applied on rail locomotives. Beyond retrofits, demonstrate the feasibility of hybrid tugboats and determine if electric tugboats are feasible. SPBP-HC1: Discuss and draft proposed clean harbor craft guidelines with respect to air quality for both existing vessels and new builds. The draft language will be submitted to both Port s Executive Directors for approval and then to each Port s respective Boards. The approved guidelines will be used during lease negotiations with tenants that homeport harbor craft in the San Pedro Bay Ports. SPBP-RL1: Demonstration, emissions source testing, and evaluation of emissions reduction technologies for switcher locomotives including DPFs, hybrid electric, and alternative fueled LNG locomotives. SPBP-RL2: Demonstration, emissions source testing, and evaluation of emissions reduction technologies for long-haul locomotives including DOCs, DPFs, SCRs, and other emerging technologies that could be utilized by these locomotives. In addition, testing of tamper proof 15-minute idle restrictors for EMD powered locomotives may be necessary. 5
8 In addition to these specific requirements, additional demonstration, testing, and evaluation will be conducted on emerging emissions reductions strategies that could be incorporated into the Clean Air Action Plan, as further explained in Section 2.3. As these strategies are successfully demonstrated and evaluated, they will be incorporated into new or alternative control measures and become part of latest Clean Air Action Plan update. 2.2 Green-Container Transport Systems This component of the program is focused on finding the next generation of transport solutions for goods movement. The ultimate goal is a 21 st century electric powered system that will move cargo from our docks to the destinations within 200 miles that today are moved by truck. It make take 20 years to complete such a system but it will always be 20 years away unless in the next five years we build and test a demonstration prototype and perfect a detailed plan for widespread construction. It is the goal of this effort to find and demonstrate innovative technologies that can be utilized for more efficient and greener movement of cargo. This includes renewable energy technologies, hybrid technologies, and broadening the use of electrification (from green energy sources) in port-related sources. In the face of growing cargo throughput and activity, the ultimate goal is to move to pollution-free technologies and strategies. The program will not only evaluate innovative strategies, but will provide funding for pilot programs to demonstrate their feasibility. The Ports are committed to this endeavor and released a joint RFP in 2006 for advanced cargo transportation technology evaluation and comparison with regards to container transport to near dock rail facilities. Advanced technologies included for evaluation include: linear induction motor systems, electric container conveyor systems including mag-lev, freight shuttle systems, aerospace freight options, etc. As part of the scope, the Ports will develop an RFP to undertake design and construction of prototype systems. It is important to note that this is only the start to pursuing green-container transport solutions. In addition to this first RFP, the Port of Los Angeles will out reach to other Pacific Rim Ports for their ideas and collaboration on green transport solutions. The Port will do this through their Pacific Ports Air Quality Collaborative initiative developed with the Shanghai Municipal Port Administrative Center. The ports will also solicit and evaluate new technologies that can be used on OGVs that go beyond cold-ironing at berth and fuel improvements. This process will be broad in the range of technologies that will be evaluated and demonstrated, such as scrubbing technologies (like demonstration of sea-water 6
9 scrubbers on containerships which significantly reduce DPM, NOx, and SOx) that can be retrofitted into ships, renewable energy options (e.g. solar, wind, fuel cells, etc.), hull improvements, new propulsion technologies, etc. Other source categories will be evaluated, and demonstration/pilot projects will be conducted, to evaluate and ultimately integrate green-container transport into the current transport systems. 2.3 Emerging Technology Development As stated above, in addition to emission reduction technologies that target DPM, NOx, and SOx, the Emerging Technology Development Program will evaluate and demonstrate technologies that target ultra fine particles and greenhouse gases. The emphasis of this portion of the Technology Advancement Program is to facilitate testing or distribution of information on emerging technologies that can be used to reduce emissions associated with the five port-related source categories. As new technologies emerge, promising technologies will be evaluated by the Ports and regulatory agencies as to their likely successful use on port-related emissions sources. In some cases, port tenants or carriers are moving forward with technology demonstrations without financial support from the ports or the agencies. In these cases, the ports will seek to stay informed on the progress and performance of these projects, and will work with the technology developers to pursue CARB verification, where appropriate, in order to increase awareness of these technologies and to ensure that there is agency consensus on the emission reduction efficiency of the technology. The agency participation in the Advisory Committee will help to facilitate and expedite the verification process. Support through the Emerging Technology Development program can cover a range of activities including prototype development, demonstration costs, emissions testing, or technology analysis. If funding a demonstration project is deemed appropriate by recommendation of the Technology Advancement Advisory Committee and approval by the Ports, then the technology demonstration and/or emissions testing would be implemented under this part of the program. If the technology is found to be successful and able to be implemented in the port-related application, then the technology may be used as an alternative to existing technologies, incorporated into existing control measures, or be included as an additional control measure. 2.4 Emissions Testing and Emissions Inventory Improvements This portion of the Technology Advancement Program focuses on increasing the accuracy of the emissions inventory, which is the key monitoring and tracking 7
10 element for determining the ports success in reducing emissions. Under this effort the goal will be to improve the emissions inventories so that they are reflective of ever changing working conditions as well as improve the turnaround time of the inventories. These improvements include: Evaluating emissions factors and conducting source testing to improve their representation of the emissions loading from the various port-related sources. Evaluating duty-cycles/load factors and conducting data logging to improve their representation of the duty-cycles for the various port-related sources. The Ports started an initial evaluation program for duty-cycle data logging of cargo handling equipment (CHE) which will be completed in These results will be reviewed by the emissions inventory Technical Working Group and included in the emissions estimate calculations. Determining ocean going vessel (OGV) actual speeds from 20 to 40 nm from Point Fermin using the enhanced radar system proposed in CAAP Measure SPBP-OGV-1. This will significantly improve the accuracy of emissions estimates through that reach of the transit. Evaluate the incorporation of Automatic Identification System (AIS) data into the emissions estimates for OGVs. This could provide detailed speed data throughout the study area. Include ultra fines in the emissions inventories when emissions estimating methodologies are approved. Evaluate direct data uploads to emissions inventory database to facilitate the transfer of information. Health risk assessment improvements and standardization. Evaluate critical highway speed data to better improve the accuracy of HDV emissions estimates. Discussions with OGV engine manufacturers to evaluate their test data and understanding of the emissions profiles of their engines at different loads and determine if improvements can be made to better represent what the engines are producing (emissions) at various loads encountered during transit and maneuvering. Additional assumptions used in the emissions inventories and health risk assessments would be evaluated on a regular basis and if deemed appropriate for additional study/data gathering then these elements would be included into this portion of the program. Projects will be developed and implemented under each of the areas listed above. Successful demonstration projects will then be incorporated into the next 8
11 annual update of the Clean Air Action Plan as control measures or additional emissions reduction strategies. 3.0 Advisory Committee An Advisory Committee will be established consisting of agency partners that include POLB, POLA, SCAQMD, CARB, and EPA Region 9. The Advisory Committee will be established by the Ports by invitation during the first quarter of A primary contact person will be identified from each participating agency, however participation in individual projects may vary based upon the expertise required for a particular technology application. Other stakeholders may become involved as it relates to their funding or participation in specific projects. The Advisory Committee will serve in an advisory role to the Ports for screening, evaluating, and recommending projects that merit further evaluation and development. The Advisory Committee members will be able to share information regarding various funding sources from their agency that could potentially be used to help move projects forward. The Advisory Committee will also receive regular updates on the technology advancement projects being conducted in the ports. Through the Advisory Committee process, the goal is to get the agencies and the ports to agree on the emission reductions achieved by any technologies evaluated. In addition, this process will help to streamline the verification process by fast tracking promising technologies and by getting new and emerging technologies into the verification process earlier in the development stage and facilitating their progress through the application process. All recommendations from the Advisory Committee will be taken to the Ports Boards of Harbor Commissioners when they consider funding projects. 4.0 Program Funding The program will be primarily funded by both Ports, with additional support from participating agencies. The annual minimum funding levels for the Technology Advancement Program, by Port, are presented in the following table. The FY 2006/7 funding levels for SCAQMD include funding for demonstrations of an electric drayage truck, and emissions testing. Funding levels for EPA Region 9 include grant funding for demonstrations of a hybrid yard hostler and a LNG yard hostler. Additional agency or other funding beyond this level either by the ports or the regulatory agencies will be considered, however it is not determined at this time. 9
12 Table 4.1: Annual Funding Level for Technology Advancement Program by Fiscal Year FY FY FY FY FY TOTAL 2006/ / / / /2011 POLA $1,500,000 $1,500,000 $1,500,000 $1,500,000 $1,500,000 $7,500,000 POLB $1,500,000 $1,500,000 $1,500,000 $1,500,000 $1,500,000 $7,500,000 SCAQMD $271,500 TBD TBD TBD TBD $271,500 CARB TBD TBD TBD TBD TBD TBD EPA $375,000 TBD TBD TBD TBD $375,000 Other TBD TBD TBD TBD TBD TBD FY Totals $3,646,500 $3,000,000 $3,000,000 $3,000,000 $3,000,000 $15,646, Types of Projects Through this program, there are several mechanisms by which projects will be moved forward for demonstration: Port Generated Projects Solicited Proposals Unsolicited Proposals 5.1 Port Generated Projects On occasion where the Ports have specific interest in an emissions reduction technology or project, they will develop a project, seek partnerships to demonstrate the use of the technology in port applications, and manage the implementation of the project. In these instances, the Ports may seek grant funding from various sources to assist with funding the projects. 5.2 Solicited Proposals The Ports will develop joint Requests for Proposals (RFPs) for Technology Advancement projects. This formal process will most likely be used to solicit proposals for a specific technology or for technologies that are applicable to a specific source category. Through this competitive process multiple proposals can be reviewed simultaneously and the technologies that have the greatest potential to achieve the Ports goals can be selected. This process will be managed similarly to the Research and Development component of the Port of Los Angeles Air Quality Mitigation Incentive Program whereby projects are evaluated using a scoring system (see Table 6.1). 5.3 Unsolicited Proposals The Ports often receive solicitations to fund various technology advancement projects, either from agencies or tenants working with technology providers, or from technology providers directly. 10
13 The process for receiving, reviewing, and potentially funding unsolicited proposals is outlined in Figure 5.1. Information on a specific technology is received by either Port and is entered into the shared Technology Advancement Program database. The Ports staff will perform an initial screening of the proposal, based upon the following: Technology Application Is the technology applicable to the port industry? Is the application feasible? CARB Verification Is the technology developer currently seeking, or are they willing to seek, CARB verification? Matching Funds Is the project supported by in-kind or direct capital matching funds? Emission Reductions Are the emission reductions consistent with the CAAP goals? Does the technology reduce some emissions will increasing others? Ability to meet the needs of the port industry Will the technology perform effectively in the port environment? Cost Is the cost for the technology reasonable? Based upon the Port staff s preliminary screening, if a technology is not recommended for further evaluation, the information on the technology is filed. If the technology does pass the Port staff s screening, additional information and/or a formal proposal may be requested, or the proposal will be forwarded to the Advisory Committee for evaluation. The evaluation criteria identified in Section 6.0 will be used. The Advisory Committee will discuss all forwarded unsolicited proposals at their regular meetings and will provide recommendations to the Ports to either approve or disapprove the funding for the project. Another evaluation that will be performed during the preliminary staff screening is whether or not the proposal or the proposed work could be accomplished by multiple vendors, and if it is appropriate to issue a detailed Request for Proposals at a later date. 11
14 Figure 5.1: Flow Chart for Processing Unsolicited Proposals Information Received Enter Information into TAP database Port Staff Preliminary Screening Determine if it is appropriate to release a RFP to select the vendor Release RFP Receive and File Request Additional Information Evaluate Further Send Thank You letter; Add contact information to TAP database for upcoming solicitations Send letter requesting formal proposal and/or additional information Send to TAP Advisory Committee (AC) for evaluation Develop recommendation at regular TAP AC meeting Port staff to route TAP AC recommendation to management Port(s) to take recommendation to Board(s) for funding approval 12
15 6.0 Project Requirements Projects will be evaluated based upon criteria that place priority on emission reduction benefits. 6.1 Project Criteria For a project to be considered for funding or support through the Technology Advancement Program, at a minimum, the technology application must be portrelated and must target one of the main source categories for port operations, which include on-road heavy duty trucks, cargo handling equipment (e.g. yard tractors, rubber tired gantry cranes), harbor craft (e.g. tugs, work boats), rail locomotives, and ocean going vessels. If a project does not target one of these source categories in the ports, it will not be considered for funding, noted as such, and filed. In addition, projects must be consistent with the mission statement for the Technology Advancement Program, to accelerate the verification or commercial availability of new, clean technologies, through evaluation and demonstration, to move towards an emissions free port. The Technology Advancement Program Advisory Committee and the Ports will use the following evaluation criteria when reviewing projects. The subjective evaluation criteria are designed to fairly evaluate projects that are research, development and/or demonstration in nature. Potential Emission Reductions All projects will be evaluated for their potential to reduce emissions of diesel particulate matter (DPM), nitrogen oxides (NOx), and sulfur oxides (SOx). In addition emission reductions of greenhouse gases (GHGs), and/or ultrafine particles will be considered. Only emission reductions achieved within the emission inventory boundaries for the ports will be considered for this evaluation. The port s emission inventory boundaries are consistent with the South Coast Air Basin. Projects that may not provide immediate emission reduction benefits will be evaluated for their potential to provide significant emission reductions in the Port program area once successfully developed and demonstrated. For this type of project, the proposer should provide documentation for such and evaluation. Additionally, proposed fueling infrastructure projects will be evaluated based on the emission reductions from vehicles committed to utilize the proposed station, as supported by letters of commitment from fleet operators. 13
16 Emissions reductions will be calculated following the methodologies used by CARB, AQMD and MSRC. The primary calculation methodology to be used will be from the Carl Moyer Program 1. Applicants may propose alternative emissions reduction calculation approaches believed to be appropriate to their project proposal, which may be necessary for unique project types. Project Cost The requested funding level, or the cost to the ports, will be considered when prioritizing the use of Port funds, as the overall Technology Advancement Program budget is limited. In order to leverage the Ports funding, some level of matching funds will be required for all projects, either as a direct financial commitment or in-kind services. In addition to the requested funding for a project, other considerations will be made when evaluating the overall cost for a technology. The lifetime costs for applying a technology will be considered in order to gauge how well a new technology may be accepted by the industry. For example, if a technology is expected to greatly reduce maintenance when compared to the current technology, it will be evaluated more favorably. Further, since many of the projects funded through this program will be pilot projects, it is understood that there may be additional design and engineering costs associated with the initial development. Therefore, traditional cost effectiveness comparisons, such as with the Carl Moyer Program, may not apply. The estimated cost for the technology once it reaches commercial availability and the applicability or commercialization and business development potential of the technology, including how widely it can be implemented, will also be considered. Project Feasibility The feasibility of the project will be considered, which includes an evaluation of the current development status of the demonstration project, the degree of maturity for the specific technology, and the qualifications and expertise of the project proposers, as further explained below. Project Development Status The status of the proposed project, including the commitments from project partners and the level of financial support secured, will be considered. Degree of Technology Maturity A key evaluation criterion for RD&D projects is the Degree of Technology Maturity. This criterion refers to the certainty of an emissions control approach to achieve the expected emission reductions. Technologies that are certified or 1 Moyer Program Guidelines are available at 14
17 verified 2 by CARB at the time of project implementation for a different type of equipment, indicating full technology maturation, will be considered most favorably. Other proposals that involve non-certified or non-verified technologies will also be considered, but will be evaluated more favorably depending on their current status for applying for CARB certification or verification or their plans to obtain certification or verification, if applicable. Proposers should submit supporting documentation to verify the emission reduction capability of the proposed project, including either CARB Executive Orders indicating verification/certification or emission test results (including the laboratory name, address and telephone number, test protocols and methods). Projects may include funding requests for emissions testing at testing facilities agreed upon by CARB, POLB, POLA and the proposer. Qualifications/Expertise Proposals will be evaluated based on the experience and qualifications of the project applicant and/or project team (as appropriate), as documented in the proposal. Additional considerations will be given to the financial qualifications of the technology proposer, to ensure that adequate financial resources are available to support development of the project, as well as potential broaderscale technology implementation, if the demonstration proves successful. Technology Operational Performance In order for a technology to be effective and acceptable by the port industry, it must be able to meet the demands of port operations. For example, technologies that are not durable, do not have enough power, do not have sufficient towing capability, or on-road technologies that can not achieve the legal street speeds at the maximum 6.5% grade of the Gerald Desmond Bridge, will not be evaluated favorably. Technical Approach/Statement of Work/Project Schedule Proposals will be evaluated based on the technical approach, statement of work and project schedule submitted in the proposal. Unsolicited proposals will be evaluated qualitatively, based upon the above criteria. For solicited Research, Development and Demonstration projects, where several similar technologies are being considered for funding simultaneously, the following evaluation criteria are an example of the anticipated points allocated to each criterion. A maximum score of 100 points is possible. Specific point 2 Refer to for background regarding CARB s certification and verification programs relating to the sale, use, or modification of emission control systems in California. The programs are specific to the type of device as well as the market for which it is designed. 15
18 allocations may vary depending upon the prioritization of a specific technology solicitation. Table 6.1: Example Evaluation Criteria and Maximum Scores for Solicited RD&D projects Criterion Maximum Score Potential Emission Reductions 35 Project Cost 20 Project Feasibility 20 Technology Operational Performance 15 Technical Approach/Statement of Work/Project Schedule Project Deliverables The ports will be developing fact sheets on new and emerging technologies as they are demonstrated. These fact sheets will be posted on the joint Port CAAP website. To assist with this effort, upon completion of each technology demonstration project, the following deliverables must be provided to the Ports: Indication of progress toward CARB verification Documented emissions reductions achieved Total project budget/final cost Lessons learned (any challenges/limitations with application, opportunities to improve performance, etc.) Information on future roll-out and availability of the technology In addition, the Ports will also request documentation for CARB certification or verification, as appropriate, and may request an assessment of the business case for the new technology. 6.3 Cost Recovery/Intellectual Property If a significant amount of the cost associated with development of a new technology is provided by the ports, the ports may seek a cost reimbursement arrangement with the technology developer, once the technology becomes profitable. In addition, the ports may seek the opportunity to use the demonstration unit(s) for future public or industry education events. 16
19 7.0 Tracking and Monitoring Each proposer selected to receive funding from the ports must enter into a contract with one of the ports. The contract will include project monitoring and reporting requirements. 8.0 Adopting New Technologies As technologies are successfully demonstrated and evaluated, they will be incorporated into new or alternative control measures and become part of future Clean Air Action Plan updates. In addition, the ports and the agencies are evaluating mechanisms to incorporate new technologies into existing leases. 17
20 Attachment A: Port Unsolicited Advanced Technology Proposal Recommendation Form
21 Technology Name Date of Recommendation Port Unsolicited Advanced Technology Proposal Recommendation Project Title: Source Category: Company Contact: Company Info: Project Description: Name of Project HDV, CHE, HC, RL, OGV (specify if specific to a certain type of vehicle or engine) Company Name Address; Phone Contact Person Specialty Experience Application Performance Parameters Emission Reduction Potential: Project Cost: Project Status: Requested POLB/POLA Funding: TAP AC Recommendation: % reduction in DPM, NOx, SOx, GHG or ultrafine emissions Total project cost Information on interest from other parties; Other sources of secured or proposed funding Funding amount requested from each port Recommendation based upon ability of project to meet the TAP goals (evaluation criteria) and performance requirements. Port Staff Recommendation Further recommendation for the Port staff perspective, if necessary. Manager Review: Recommend Funding Do Not Recommend Funding Comments Director Review: Recommend Funding Do Not Recommend Funding Comments
22 Attachment B: Unsolicited Proposal Format for Research, Development and Demonstration Projects
23 Unsolicited Proposal Format for Research, Development and Demonstration Projects Introduction The following information is provided as guidance for submitting unsolicited proposals for co-funding consideration of technology research, development and demonstration projects in port applications for the San Pedro Bay Ports. In summary, unsolicited proposals must include a brief explanation of the technology, a description of the proposed project and expected deliverables, potential air quality benefits of the technology, time schedule for the project, qualifications of the company developing the technology/project team, commitments from port operators for participating in the project, and proposed budget (request from the ports and all other direct capital matching or in-kind funding). Technology Advancement Program Description To help meet the needs for technology to assist with attaining the emission reductions goals of the San Pedro Bay Ports, the Ports of Long Beach (POLB) and Los Angeles (POLA) adopted a Technology Advancement Program (TAP) under the San Pedro Bay Ports Clean Air Action Plan (CAAP). This program builds upon the two Ports history of successfully implementing technology demonstration projects in partnership with their tenants and operators. The Mission Statement for the TAP is to accelerate the verification or commercial availability of new, clean technologies, through evaluation and demonstration, to move towards an emissions free port. The TAP is focused on new and emerging technologies, with the objectives of streamlining the process for reaching consensus on the emission reductions achieved by various technologies and facilitating development of new technologies and their adoption throughout the port industry. The primary revenue source for the TAP is the two Ports Clean Air Action Plan budget, which identifies $1.5 million from each port, each year for the next five years. Therefore, the Technology Advancement Program will be funded with at least a $3 million annual budget for the next five years. The Ports will seek to leverage their funding with funding from public agencies, investment by private companies, and various grant funding sources. Candidate projects should be at a technology development stage that will result in real-world demonstrations of advanced, low- and zero-emission hardware. Fundamental, laboratory, or concept feasibility studies are not expected to be funded. The Ports will seek a minimum of 50% total project cost sharing from submitters and/or other participants. Cost-sharing must be contemporaneous to the proposed project and may include both direct cash and in-kind contributions. Technology Applicability The project must target one of the main source categories for port operations, which include on-road heavy duty trucks, cargo handling equipment (e.g. yard 1
24 Unsolicited Proposal Format for Research, Development and Demonstration Projects tractors, rubber tired gantry cranes), harbor craft (e.g. tugs, work boats), rail locomotives, and ocean going vessels. If a project is not port related, it will not be considered for funding. Instructions for Unsolicited Proposal Submittal Proposals may not exceed three double-sided pages in length including the cover, and shall include the following sections: 1. Cover which must reference the following: Descriptive project title Contact information including name of primary contact for the project, business and mailing addresses, telephone and fax numbers, and address. 2. Project description which must include the following: Brief description of the technology and principle of operation Description of the proposed project and expected deliverables Potential air quality benefits in the South Coast Air Basin Projected cost of technology Time schedule for the project 3. Qualifications and capabilities of project team, including commitments from port operators participating in the project 4. Proposed budget including requested funding from the Ports, total project cost, and a full breakdown of all in-kind and direct cost-sharing, secured and anticipated Proposers are discouraged from including proprietary information in proposals. All proposals become the property of the Ports. Proposers shall be notified in writing of one of the following: 1. The proposal is not being considered for funding at this time, however will be kept on file OR 2. Additional information is requested OR 3. Due to multiple submittals in the area of their proposal or the proposed work could be accomplished by multiple vendors, and a detailed Request for Proposals may be issued at a later date OR 4. The proposal will be recommended for funding to each Ports Board of Harbor Commissioners Evaluation Criteria Proposals will be evaluated on the basis of the following criteria: 1. Applicability to the port industry 2. Target pollutant emission reduction potential and port emissions inventory impact 2
25 Unsolicited Proposal Format for Research, Development and Demonstration Projects 3. Project cost 4. Project cost-sharing 5. Commercialization and business development potential 6. Project feasibility 7. Project development status, including commitments from project partners 8. Degree of technology maturity 9. Proposer s experience, capabilities, and past performance 10. Technology operational performance 11. Completeness of submittal and adherence to submittal guidelines Submittal Submit unsolicited proposals or questions to the following: Port of Long Beach Port of Los Angeles Attn: Heather Tomley Attn: Teresa Scognamillo 925 Harbor Plaza 425 S. Palos Verdes Street Long Beach, CA San Pedro, CA Ph: (562) Ph: (310) Fax: (562) Fax: (310)
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