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Jan 18, 2010

Puget Sound Ports See Clean Air Programs Working

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The Puget Sound ports' collaborative environmental program known as the Northwest Ports Clean Air Strategy has led to sizable reductions in Puget Sound ports-generated diesel emissions, according to a study released by the ports of Seattle, Tacoma and Vancouver BC last week.

The latest NPCAS report from the ports covers 2009 and found that NPCAS programs reduced sulfur emissions generation in the region by more than 68 tons and cargo-handling equipment retrofits reduced particulate matter emissions by 25 percent to 50 percent.

First released as a draft in 2007, the NPCAS seeks to reduce diesel and greenhouse gas emissions in the Puget Sound region by achieving early reductions in advance of, and complementary to, applicable government regulations related to cargo-handling equipment, ocean going vessels, trucks and rail vehicles. In addition, the NPCAS sets targets built the successes on current emissions reduction initiatives, and suggests a range of practical actions the ports and their industry stakeholders may choose from to achieve those targets.

Like many large ports on the West Coast, the ports of Seattle, Tacoma and Vancouver BC are all identified as major generators of diesel emissions in their communities.

Online Edition

The Puget Sound ports' collaborative environmental program known as the Northwest Ports Clean Air Strategy has led to sizable reductions in Puget Sound ports-generated diesel emissions, according to a study released by the ports of Seattle, Tacoma and Vancouver BC last week.

The latest NPCAS report from the ports covers 2009 and found that NPCAS programs reduced sulfur emissions generation in the region by more than 68 tons and cargo-handling equipment retrofits reduced particulate matter emissions by 25 percent to 50 percent.

Jun 01, 2018

SCE gets OK to jump into electrification of trucks, buses and ports, joins 2 other California utilities in race to replace diesel fuel

Online Edition

Three of the state’s largest electric utilities late Thursday breached the monopoly on transportation fuels held for decades by oil companies by investing $738 million in new electric vehicle charging stations, with an emphasis on replacing diesel-powered trucks, buses, forklifts and heavy equipment with vehicles running on cleaner electric power.

The big three: San Diego Gas & Electric, Pacific Gas & Electric and Southern California Edison received the green light from the California Public Utilities Commission, signaling a new alliance between the state and utility companies never before seen in California that proponents say is the single largest utility investment in transportation electrification ever.

“A trend is sweeping across California,” said Rachel Boyer, spokesperson for the Sierra Club in an email. “Every day we see more and more examples of our state moving away from investing in outdated fossil fuel technology. And this decision is no different.”

The California Independent Oil Marketers Association, however, called the decision: “California’s largest utility companies’ $500 million money grab from the CPUC.”

The CPUC decision comes on the heels of the California Air Resources Board vote to use the $423 million from the Volkswagen diesel case settlement to put more electric vehicles on the road and shortly after the California Energy Commission in early May voted to require all new homes to have solar power in two years.

Also in May, the South Coast Air Quality Management District board approved a plan to regulate truck diesel emissions from warehouses and railyards.

“As the network of residential, workplace, and public electric vehicle charging stations expands, more communities will be able to enjoy the pleasures of driving plug-in electric vehicles,” said CARB chairwoman Mary Nichols.

Environmental impact

By investing in electric power infrastructure, the regions with the most bad air days, namely Riverside, San Bernardino and Los Angeles counties, will begin to notice less smog, in particular oxides of nitrogen, which take the form of tiny aerosol particles that can lodge deep into the lungs and cause respiratory and heart disease, according to the SCAQMD and numerous air pollution studies.

Cleaner trucks and heavy equipment also reduce carbon dioxide emissions, which contribute to global climate change.

California has a goal of reducing greenhouse gases to 40 percent below 1990 levels by 2030 and 80 percent by 2050. Scientists say in the West, global climate changes have increased temperatures and prolonged droughts and fire seasons.

Transportation is responsible for 83 percent of the oxides of nitrogen and 95 percent of diesel emissions in the state. In Southern California, trucks produce more than 50 percent of the oxides of nitrogen and make up 2 percent of the vehicles on the road.

Targeting this source of air and climate pollution makes sense for the region, said Carlo De La Cruz, with the My Generation campaign for cleaner energy from the Sierra Club in Los Angeles.

“(Thursday’s) decision by the PUC was strategic and a smart one,” he said. “It prioritizes vehicles that have the most impact on our air quality and on our local health.”

Ports to Inland Empire

By helping trucks and cargo-moving equipment change from diesel to battery power, the investment will address air pollution from the twin ports of Los Angeles and Long Beach, where 40 percent of the goods entering the nation come through and moves to and from warehouses in the Inland Empire by truck.

However, even with the boost in incentives and more chargers installed, warehouse owners and trucking companies must be persuaded to buy electric trucks, which are more expensive.

“It is an issue when it comes to business owners, warehouse owners being willing to make that investment,” said De La Cruz.

Specifically, here’s what each utility plans to do:

• SCE will spend $343 million over five years to expand electric charging infrastructure in industrial sites, trucking companies and warehouses. The Rosemead-based investor-owned utility will install charging equipment in 870 sites by 2024.

These will support 8,500 medium- and heavy-duty trucks, buses and forklifts. Of the total budget, 25 percent will go toward vehicles operating at ports and warehouses.

Each recipient is required to buy at least two EVs, or convert two from fossil-fuel to electric.

• PG&E will spend $236 million over five years investing in infrastructure for about 6,500 medium- and heavy-duty electric vehicles at commercial and industrial sites. And $22 million will be used for building 234 fast-charging stations for passenger cars.

• San Diego Gas & Electric will spend $137 million for rebates to up to 60,000 customers who install at-home chargers.

Online Edition

Three of the state’s largest electric utilities late Thursday breached the monopoly on transportation fuels held for decades by oil companies by investing $738 million in new electric vehicle charging stations, with an emphasis on replacing diesel-powered trucks, buses, forklifts and heavy equipment with vehicles running on cleaner electric power.

May 29, 2018

EPA’s agenda gets down and dirty

Online Edition

WASHINGTON — At a time when acts of defiance against the Trump administration are routine in Sacramento, the rebuke that breezed through the California Assembly this month still came as a jolt. Even Trump loyalists in the chamber joined in.

The message to the administration was clear: Forget about your plan to unleash on freeways a class of rebuilt trucks that spew as much as 400 times the choking soot that conventional new big rigs do. Getting caught behind the wheel of one of these mega-polluters in California would carry a punishing $25,000 minimum fine under the measure that lawmakers passed 73 to 0. It had the support of 25 Republicans.

“This was a reaction,” said Chris Shimoda, vice president of government affairs for the California Trucking Assn., which sponsored the legislation. “A lot of people have made the investments to clean up their trucks. They don’t want to see an obvious loophole that allows others to be gross polluters and undercut them.”

Equally strong reactions are rippling across the country in response to the Trump administration’s push to boost a cottage industry eager to sell trucks that run on rebuilt diesel engines. The trucks look new from the outside but are equipped with repurposed motors that, according to the Environmental Protection Agency’s own experts, threaten to produce enough soot each year to cause up to 1,600 premature deaths.

President Trump’s EPA has tried to justify the move by citing a privately funded study that claimed the trucks did not cause more pollution, but even the university that conducted the research has cast doubt on the findings.

Air regulators loathe the proposal to allow thousands more of the trucks on the roads. Most of the trucking industry feels the same. Even the White House budget office and several conservative allies of the administration are balking.

“We urge you to consider the adverse impact on the economy,” said a letter that the EPA recently disclosed from the Republican senators of Indiana, West Virginia and North Carolina. They warned EPA chief Scott Pruitt that the plan was ill-advised and disruptive to industry. Ten House Republicans agreed in their own letter, which warned the proposal was a potential job killer. “We respectfully ask that you carefully consider the negative impacts,” the GOP lawmakers wrote.

Yet the EPA is undeterred. Its crusade to lift an Obama-era ban on these heavily polluting vehicles known as “gliders” perseveres, largely at the behest of a small group of activists on the right and one generous political donor, Tennessee businessman Tommy Fitzgerald. Fitzgerald, who has met privately with Pruitt and who held a campaign event in 2016 for Trump at one of his facilities, says restricting the sale of the trucks and the kits to build them threatens 22,000 jobs.

Pruitt says the restrictions on the trucks were a misuse of Clean Air Act regulations.

In announcing the rollback, Pruitt’s agency ignored its own findings about how much environmental damage the vehicles cause. Instead, it cited a new study from Tennessee Tech University that concluded, astonishingly, that the glider trucks were no more harmful to air quality than trucks with new engines. That study was bankrolled by Fitzgerald’s business.

The results of the study came as a shock to experts at the EPA, and also to the engineering faculty at Tennessee Tech.

“Tennessee Tech has skills in some areas, but air pollution is an area we have never worked in,” said David Huddleston, an engineering professor at the university. “I thought, who on campus knows enough to actually even offer an opinion on that? We have one guy who has some expertise in emissions, but he wasn’t even involved in this.”

The faculty would soon learn that the study was run by a university vice president who lacked any graduate-level engineering training, and that it was conducted at a Fitzgerald-owned facility. Tennessee Tech’s president and Rep. Diane Black (R-Tenn.) — who has accepted more than $200,000 in political donations from Fitzgerald, his companies and top employees — had lobbied Pruitt to embrace the research.

The Tennessee study quickly came under suspicion. Notes from discussions between EPA scientists and its authors revealed major flaws. The EPA scientists then updated their own tests of glider vehicles, which confirmed the trucks are substantially dirtier than newly manufactured trucks.

The head of Tennessee Tech’s engineering department dismissed the study’s key conclusion as a “far-fetched, scientifically implausible claim” by a research team that included “no qualified, credentialed engineer.” The faculty senate passed a resolution demanding the university revoke its support for the study and begin an investigation.

By late February, the university asked the EPA to stop using or referring to the study, pending its investigation. That investigation continues.

“The university takes the allegations of research misconduct seriously,” the school said in a statement to The Times. “Tennessee Tech is still in the process of following its internal procedures related to such matters.”

Despite Pruitt’s earlier acknowledgment that the study factored into his decision to revisit the glider vehicle restrictions, an EPA spokesperson said in an email last week that “it played no role” in the action the EPA is now taking.

Two former EPA chiefs are skeptical. Christine Todd Whitman, who led the agency under George W. Bush, and Carol Browner, who led it under Bill Clinton, pointed out in a March letter to Pruitt that the industry’s petition that prompted the EPA to act on glider trucks relied heavily on the now-disavowed study. They urged him to withdraw the proposal.

Fitzgerald’s company is refusing to publicly release the full study, which it owns under its arrangement with the school. But it has cast itself as the victim.

“We did not expect to receive work product that some have characterized as ‘flawed and shoddy’ or ‘far-fetched and scientifically implausible,’ and we certainly did not expect to be defamed by faculty members and administrators from the very institution that conducted the research,” a company lawyer wrote to university officials this year.

The company later demanded that four faculty members who have spoken out against the research and the company’s involvement in it turn over any emails they wrote about the matter.

“It’s a mess,” Huddleston said. “All these professors are trying to do is the right thing. And now they have had to go out and hire lawyers to protect themselves. It’s sad.”

Rep. Black recently told Nashville Public Radio that she had no regrets about using the study to try to help the glider business. She said glider manufacturers were in a noble “David and Goliath” battle with much larger trucking interests seeking to crush them.

But even some at the White House are chafing. Its budget office directed the EPA to undertake an extensive economic review that will hold things up for weeks and could reveal more legal vulnerabilities. The free-market think tank FreedomWorks has, in turn, started a campaign to pressure the White House to approve the EPA’s plan promptly, without requiring the economic analysis.

It remains to be seen whether Pruitt will prevail. But if he succeeds, glider truck drivers could find themselves entering California at their own risk. Backers of the $25,000 penalties that the Assembly approved said they would expect to see them enforced, regardless of how the EPA proceeds. The bill appears likely to pass the state Senate and be signed into law.

Asked how it would confront that challenge, the agency demurred. “EPA has not yet taken a final action,” said the email from its press office, “and will not comment on hypothetical outcomes before the process is complete.”

Online Edition

WASHINGTON — At a time when acts of defiance against the Trump administration are routine in Sacramento, the rebuke that breezed through the California Assembly this month still came as a jolt. Even Trump loyalists in the chamber joined in.

May 14, 2018

Surging US flatbed demand delays service

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Whether you are fracking in the Permian Basin or a construction company in the Midwest, overwhelming flatbed demand is forcing trucking companies to warn shippers about delays and slower service. There are a host of reasons behind the imbalance between freight levels and available trucks.

West Texas Intermediate Crude (WTIC) has been trading near $70 per barrel — oil traded up 30 cents to $71.00 per barrel Monday morning — much higher than in February 2016 when WTIC cost $30 per barrel. With those bullish prices, oil companies are fracking to capitalize on the stronger market, which has substantially increased their margins — requiring materials to be transported on trucks. Further, Florida and southeastern Texas are also rebuilding from devastating hurricanes in August and September 2017. Also, in the Midwest, winter weather eliminated more than a month off the usual construction calendar and compressed shipping schedules. Trucking companies are urging shippers to be patient and flexible on delivery requirements as a result.

"Flatbed capacity is exceedingly tight and will likely tighten further as milder weather finally arrives in northern regions. There seems to be very large imbalances regionally; creating ‘panic’ freight buying,” one anonymous shipper said in the biweekly Morgan Stanley Truckload Index.

Flatbed spot market rates moved in concert with contract rates between January and April, rising from $2.00 to $2.20 per mile, excluding fuel surcharges, based on data from Morgan Stanley and DAT Solutions. Since then, the spot market has continued to rise above $2.30 per mile while contract rates have settled down. Fleet executives told JOC.com that contract prices are about 5 percent higher than last year.

Spot market rates, including fuel surcharges, rose 7 cents to $2.72 per mile for the week ending May 5 — a record — and is higher than contract rates for the first time in a decade, according to Morgan Stanley. Flatbed spot rates rose 29.4 percent overall last month, according to DAT.

Rates per mile were up 10 percent for flatbed carrier Daseke Inc., according to its first-quarter earnings report. Universal Logistics Holdings reported revenue per mile, excluding fuel surcharges, rose 12.7 percent year-over-year.

“We have not seen a rate environment like this for a long, long time, if ever,” said Robert Ragan, chief financial officer with Melton Truck Lines.

CEO: shippers waiting 10 to 14 days for an available truck

“I’ve never seen anything like this in more than 30 years in business,” added Joyce Brenny, CEO of Brenny Transportation. “Volume was at least manageable a year ago. We were doing well and rates were good. But now it’s out of control, and we can’t keep up.”

She said new shippers are waiting 10 to 14 days to get an available truck. Last year, the wait was about three days, and during leaner times it was as little as 24 hours.

Owens Corning Chief Financial Officer Michael McMurray said that flatbed shipping costs “have driven a 15 percent increase in outbound shipping costs and are expected to persist for the balance of the year,” speaking on an earnings call.

Anixter International, a distributor of communication and security products, said rate increases “in the mid-teens” translated into a 20-basis-point increase in operating expenses in the first quarter.

Economic data shows the industries shipping freight on flatbed will continue to grow.

The Institute for Supply Chain Management’s manufacturing index was 57.3 in April and hovered around 60 between December 2017 and March 2018. A number greater than 50 indicates economic expansion and economists generally agree 60 is a marker of robust conditions.

The US Census Bureau reported building permits jumped 7.5 percent and construction spending rose 3.6 percent year-over-year in March.

“These numbers give us an early indication of what’s to come because once the permits are approved, there is usually a 90- to 180-day period before construction actually starts,” said Dan Taylor, senior vice president of sales of Melton Truck Lines. “We see permit activity as fairly strong and consistent, so we believe it’s going to be a strong summer. That correlates with what our major shippers of construction products are telling us.”

IHS Markit data shows auto production is expected to decline from 17.8 million to 17.3 million vehicles this year, but industry analysts believe the sector remains strong and figures will rebound in 2019.

“The second, third, and fourth quarters this year should be very, very strong for the open deck carriers,” said Jay Folladori, president of Bennett Motor Express. “There is a heck of a lot more freight available than there are trucks in many, many markets.”

Fracking taking flatbed capacity from other industries

Exploration in the Permian Basin is siphoning trucks from other industries. With crude oil prices now double the price from two years ago, expect more investments in the future.

Trip Rodgers, a financial analyst with energy investment firm BP Capital Fund Advisors, wrote in a recent report that an average well site requires at least 10,000 tons of frac sand, equating to about 400 truckloads.

“Assuming 10 to 15 days for the completion stage of an average well, this implies 27 to 40 sand truckloads per day to each individual well,” Rodgers wrote. “We estimate this amounts to over 2,000 trucking round trips per day in the region, a figure that is expected to grow substantially in upcoming years.”

Much of that material is moved on a tank truck, but energy producer Encana Corp. recently said it’s using more sandbox systems to place frac sand onto flatbeds. These well sites also require bits, piping, casings, tubing, blowout preventers, motors, drilling equipment, and steel coils and bars.

DAT industry analyst Mark Montague said the top two flatbed lanes in April were intra-Houston and Houston to Midland, Texas. Rates between Houston and Midland were up 30 percent last month.

“A few years ago, four pipelines were built in just one year and the latest I have heard is they are out of capacity already,” Montague said. “What we’ve done is double down in that sector. And all the tax cuts have done is accelerate the investment in these sites in the basin.”

According to a S&P Global Platts analysis, “Permian production growth could soon be the victim of its own success.”

Even flatbed carriers that are not involved in the energy sector benefit when crude oil prices are higher, and conversely, shippers in unrelated industries take a financial blow.

“When there is more freight activity in the oil markets, capacity tightens in our primary markets and drives up rates,” Ragan said.

Flatbed trucks also serving hurricane rebuilding

Much of the Houston flatbed activity is tied to the energy sector, but Montague acknowledges rebuilding efforts from Hurricane Harvey are also driving business. Home Depot leased a 300,000-square-foot warehouse in Jersey Village, Texas, and Lowe’s Companies leased on a 244,000-square foot warehouse near Bush International Airport. Both companies opened the new facilities to handle the new demand to buy building supplies in 2018.

DAT’s top 10 flatbed lanes in April also included Dallas to Houston. Montague explained that Dallas is used as a staging ground to aggregate and distribute building materials and supplies elsewhere in the region.

Freight lanes in Florida also appeared on the list, even though the Sunshine State is not usually a hotbed of flatbed activity, according to Montague. Jacksonville to Miami ended the month at No. 15, and Lakeland to Jacksonville was No. 17. Hurricane Irma caused $155 million in damages in Jacksonville and brought record-breaking flooding, according to the Federal Emergency Management Agency and the National Weather Service.

Melton’s Taylor said he is monitoring rebuilding efforts because it could exacerbate the existing supply imbalance. Flatbed drivers relocating into Florida and Texas will reduce truck supply in other states.

“If there are any major rebuilding projects in either state, it probably should be starting right about now,” Taylor said.

Dry van and refrigerated spot rates rose exponentially in Florida and Texas last autumn and nervous shippers began to pay more on contractual freight to ensure guaranteed capacity.

Winter mess in Midwest straps flatbed carriers

The snowstorms and frigid temperatures in the Midwest wreaked havoc on railroad shippers this winter, but now there is a spillover into the flatbed market.

“We had a lingering winter in places like northern Ohio and Illinois. And so we did not cancel spring, it was just being postponed for several weeks,” Montague said.

The No. 9 busiest flatbed lane last month was Cleveland to Detroit and No. 16 was Cleveland to Chicago.

In Minnesota, frost was still on the ground as of the early May. Brenny, whose company is based in St. Cloud, Minnesota, said that building season typically begins on April, requiring flatbeds to move materials to construction sites. Everything is compressed into a tighter window this year, however, because of the season beginning four to six weeks later owing to weather.

“The brick, the steel, the lumber, the building products are just starting to move because of delayed spring. We were busy in January just hauling our normal, everyday loads, now add this extra demand on top and my goodness,” Brenny told JOC.com. “We lost at least one month on construction season so people are rushing to begin their projects, but there might be some delays because we can only haul so much.”

For shippers, patience will be key to navigating this flatbed market. Although if you have been playing the spot market in recent years because the per-mile rates were cheaper than under a contract, there may not be any good answers.

“If you worked with us in the lean times and listened to our early warnings about capacity, we will work with you. The shippers who played the market and kicked trucking to the back burner, it’s a little too late. The only thing they can do now is pay the rates. Moving forward, what you should do is be a shipper of choice because the current market is going to last for a while,” Brenny said.

Online Edition

Whether you are fracking in the Permian Basin or a construction company in the Midwest, overwhelming flatbed demand is forcing trucking companies to warn shippers about delays and slower service. There are a host of reasons behind the imbalance between freight levels and available trucks.

May 24, 2018

As union asks Long Beach leaders for action on truckers’ compensation, some drivers demand a choice

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Contractors? Or employees?

The Long Beach City Council Harbor and Tidelands Committee began to tackle the issue of how the massive twin ports’ big-rig drivers should be classified at the first of two hearings Thursday afternoon.

It’s not clear what role the city can play in the debate, but officials are staging the hearings to investigate the issue.

Both Long Beach and Los Angeles ports have worked to find policy solutions to address allegations that some companies improperly employ port truck drivers as independent contractors, denying them overtime and benefits, when critics and union leaders say they should considered hourly employees. In February, leaders agreed to hold hearings on the matter.

For years, some drivers and their unions have complained about not receiving the benefits of employment. Some say they end up owing their companies money for equipment fees despite long work weeks.

The California Labor Commissioner has received hundreds of complaints regarding the issue and has awarded more than $35 million in back wages and penalties.

But as some port truck drivers told council members about extremely low or even negative paychecks, some independent owner-operator drivers said such conversations made them wary. They want such an arrangement to be a choice, they contend.

These independent drivers have it good, they said — they make a good salary, run their own businesses and take care of their own insurance, retirement and trucks. And they’re worried that the push to make companies classify all drivers as employees will actually hurt them.

“Becoming an employee has to be a choice,” George Javarra, an owner-operator, said. “I’m trying to build a business here.”

Javarra held his paycheck in the air. While he did not say exactly how much it was, he indicated it was not a small check. His thoughts were echoed by other speakers who are owner-operators — one of whom said he takes home about $160,000 annually. Drivers who are not getting paid well should simply go to a better company, he said.

But on the other side of the room sat a group of drivers from the Teamsters union clad in neon-colored vests. They said they wanted drivers to have a choice of being their own bosses or being an employee. When it isn’t a choice, it equates to theft, they said.

“Not all companies are good,” said Randall Williams, who said he was not an owner-operator.

Councilwoman Jeanine Pearce said that the issue isn’t if drivers want the choice or not, it’s that California law states that “if it looks like a duck and quacks like a duck, it’s a duck” when it comes to driver-company relations.

In other words, if a company is treating a driver like an employee, they should be given appropriate employee benefits.

The next hearing on the subject will be Thursday, May 31 at 3 p.m. at the Port of Long Beach Maintenance Building Meeting Room, 725 Harbor Plaza.

Online Edition

Contractors? Or employees?

The Long Beach City Council Harbor and Tidelands Committee began to tackle the issue of how the massive twin ports’ big-rig drivers should be classified at the first of two hearings Thursday afternoon.

It’s not clear what role the city can play in the debate, but officials are staging the hearings to investigate the issue.

May 01, 2018

Green Terminals

Print Edition

In November of 2017, the Ports of Los Angeles and Long Beach and their industry partners, approved an update of the Clean Air Action Plan (CAAP) toward further green technology efforts in the region.

"We believe this CAAP update allows us to take the next step in our ongoing efforts to reduce emissions at the ports," says Chris Cannon, Director of Environmental Management at the Port of Los Angeles. "We've now added, Greenhouse Gas Emissions (GHG) as an expressed goal for emission reduction in addition to health risk and criteria pollutants."

The CAAP program started 12 years ago, and since that time, its purpose has been to identify programs to reduce emissions from port-related operations.

The Port is committed to testing all-electric equipment in pursuit of zero emissions. A number of tests have been carried out on small equipment, and now, larger machinery tests are in the prototype phase.

By 2030, the Port is estimating it will have its terminals running at zero emissions, and by 2035, drayage trucks will also operate on zero emissions technologies. "This is something the mayor has said is a top priority here for environmental programs," says Cannon.

Cannon reports that programs to reduce surface water runoff and discharge from various sources into the Bay have been very successful. "As a result of that, and ongoing programs we have working with tenants, we rarely exceed water quality standards here in the harbor. We have a thriving biological habitat for fish and plant life and marine plant life," he adds.

Off-Grid Energy

Two innovative environmental projects are now being implemented. One includes installing solar panels on the roofs of the warehouses at the Pasha Terminal, which is a Green Omni Terminal (accepts container, cargo and bulk freight cargo). Solar power will be harvested and stored in onsite large industrial batteries that can handle up to 2 megawatts, that will enable equipment operating at the terminal to be zero emissions and run 24/7.

"They'll be able to plug into this battery storage device and it will allow the terminal to operate completely off the grid, which we believe is a model for all kinds of industrial facilities, not just at a port," says Cannon. "We believe no other terminal in the world will do that. Is under development, and over the next 18 months, we think it will be operational."

In what Cannon believes is another first, the Port will work alongside its Evergreen Terminal to test yard trucks by comparing the use of renewable natural gas versus battery-electric power.

At the same terminal testing the world's first battery-electric top handlers is also being done. "Up until now, it's been thought there's not a battery big enough to do it. We think we've found a battery solution with the help of a battery company from China," explains Cannon. "We think it's going to be one of the most advanced and forward-thinking operations here at the Port as far as testing zero emissions equipment. The micro grid will be able to operate without using any [outside] power, which could also be important in the event of a natural disaster."

BC Power

Next year, the Vancouver Fraser Port Authority will celebrate 10 years offering shore power to shore power-enabled cruise vessels, and by the end of this year, two container terminals at the Centerm Terminal at DeltaPort will also offer shore power.

The Port Authority was the first in Canada to install shore power in 2009, and usage has steadily increased over the decade. Approximately 40 percent of total calls use shore power. "There's one plug at each berth, but there's also just one ship at each berth. It works well. We try to align the vessels that are shore-power enabled with the equipment so if they're able to, they can plug in," says Carmen Ortega, Manager of Trade Development.

This year, a new-to-the-port, shore power-enabled Norwegian Jewel is also coming to call. "The ships are all configured differently where the plugs are located, so we just have to do some work on our part to make sure we can make the equipment align with their plugs," says Ortega.

While using shore power is not a Port requirement, programs like the Port's EcoAction Incentive program provide up to 50 percent reduction in harbor dues for marine carriers that participate.

The Port also offers the Blue Circle Award, which recognizes the lines that participate in the EcoAction program. Vessel operators can apply for the program at each call or provide an annual declaration for their vessels.

Since 2009, the Port Authority has seen 493 successful connections out of 624 calls that are able to connect, which equates to a total of 58,000 tons of fuel savings, more than 18,000 tons of GHG emission reductions and 524 tons of air pollutant reductions.

The Port is expecting another successful season, with eight percent growth this year. "The cruise lines in general do a good job of looking into green technologies like scrubbers," says Ortega. "It's great to be able to recognize them through our fees but also through the Blue Circle Awards that we have."

Noise reduction is also a focus in the effort to help the environment. Last year, the Port embarked on a voluntary vessel slow-down trial as part of the Enhancing Cetacean Habitat and Observation (ECHO) Program, initiated in 2014, in order to better understand the impact of shipping activities – the region's at-risk whale population. "There was around a 60 percent participation rate across all our shipping lines," says Ortega. "For a voluntary program, it was quite successful."

Cleaner Air

In late March, the Puget Sound Maritime Air Forum released its emissions inventory report showing that some air pollutants from ocean-going vessels have decreased by 97 percent between 2005 and 2016.

The Forum, which consists of seven Puget Sound ports, three industrial partners, and six government agencies, are working hard to make the region as green as possible.

In 2007, the Port of Seattle seaport, the Port of Tacoma and Port Metro Vancouver, Canada, initiated the Northwest Ports Clean Air Strategy. The goal of the Strategy is to reduce diesel and greenhouse gas emissions in advance of, and complementary to, applicable regulations.

The ports have worked with the Puget Sound Clean Air Agency, the US EPA, Environment Canada, Washington State Department of Ecology, and industry and community stakeholders to craft and implement the strategy. While the strategy outlines shared performance measures, each port has implemented emission reduction programs appropriate to its operations.

Every five years since 2005, the numbers demonstrate that much progress has been made. "With this 2016 report, we've seen reductions in sulphur and associated particular matter emissions that can cause respiratory irritation," says Sara Cederberg, Senior Manager, Air Quality and Sustainable Practices for the Northwest Seaport Alliance.

On the oceangoing vessel side, the North American Emission Control Area came into effect in 2015, mandating that within 200 miles of the US and Canadian coastlines, vessels must burn ultra-low sulphur fuel. "We've measure everything from the J-buoy out at the end of the straight of Juan de Fuca in our inventory," says Cederberg, "and we've seen a huge amount of emission reduction from transiting vessels."

On the land side, there have also been lower sulphur fuel standards put in place for diesel, for both on-road and off-road from truck emissions and also from equipment on terminals.

The Clean Truck program at the Ports of Seattle and Tacoma has shown a reduction of emissions by upgrading trucks to 2007 engine standards which are about 90 percent cleaner than older models.

"Overall, we've seen a huge reduction in particulate matter, so much so that we've met the goals of our Northwest Clean Air Strategy four years ahead of schedule," says Cederberg. "We've also seen a slight decrease in GHG emissions. But those emissions are pretty closely tied to activity levels. As our operations continue to grow, we'll be looking at different strategies to help reduce both diesel particulate matter and greenhouse gas emissions."

This year, for the first time, the inventory includes black carbon emissions, however, additional research is needed on estimating black carbon because there are few widely agreed upon emission factors for mobile sources.

The collaboration of stakeholders in this effort has resulted in partnerships that may not otherwise have come to work closely together, says Cederberg. "We've been able to accomplish a lot more through this collaboration."

Carrier Incentives

The Port of Prince Rupert and its partners work closely together to reduce carbon emissions from port-related operations. For example, the Fairview Container Terminal is shore power ready. Terminal partners are continually investing in new green technologies that increase fuel efficiency with vehicles and equipment. And the Port's Green Wave program offers shipping lines financial incentives that reward cleaner and quieter vessels.

In addition, ongoing measurements of particulate matter are carried out regularly at the Port's Westview Terminal, which draws volumes of air in and measures the concentrations of PM10 and PM2.5 in the air. There are many sources of variances in readings due to regional area influences as well as other factors, which requires long term monitoring to assess how best to reduce particulate matter as much as possible.

The Port's Invasive Species program, which began in 2012, is a partnership with the Northwest Community College, Fisheries and Oceans Canada, and the Invasive Tunicate Network's Plate Watch program. "To date, we have not seen any invasive species in the harbor," reports Jason Scherr, Manager, Environmental Sustainability. Invasive species have several modes of transport, including Tsunami drift, fishing vessels, tugs, barges and commercial vessels, he points out.

"We use the Plate Watch program to look for tunicates which are sea squirts and some of those invasive species that can impact shellfish harvest operations," he explains. "The other invasive species that we're looking for, with a small boat with traps, is the European green crab, which started down in California and has been working its way up the coast. We have not yet seen any green crab here, but we know they're down in the central coast, so we're keeping an eye out for when they may show up at a certain point."

Scherr reports that a partnership to monitor marine water quality has been in place for six years, that samples approximately 30 sites around the harbour. "We've also been working with other partners to map shorelines on the North Coast, taking high digital imagery and then classifying either physical or biological attributes," he says.

Next year, the Vancouver Fraser Port Authority will celebrate 10 years offering shore power to shore power-enabled cruise vessels. Photos courtesy of the Port of Vancouver.

The Port's Marine Mammal program was launched in 2015 with participation from members of the Port Environmental Stewardship Committee. Various partners work to gather data and educate mariners about the dangers of vessel collisions and noise impact on the regions whales, porpoises and dolphins.

In fact, last spring, in partnership with the Port of Vancouver, DFO and the Vancouver Aquarium, the Port released the Mariner's Guide to Whales, Dolphins and Porpoises of Western Canada. The guide also provides information on how to report sightings. In 2017, the Port of Prince Rupert added underwater noise criteria to its Green Wave incentive program.

"There are no regulations around underwater noise," says Scherr. "The addition of underwater noise to incentive programs is something very new. Ourselves and the Port of Vancouver are taking the first steps in terms of leading that."

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In November of 2017, the Ports of Los Angeles and Long Beach and their industry partners, approved an update of the Clean Air Action Plan (CAAP) toward further green technology efforts in the region.

"We believe this CAAP update allows us to take the next step in our ongoing efforts to reduce emissions at the ports," says Chris Cannon, Director of Environmental Management at the Port of Los Angeles. "We've now added, Greenhouse Gas Emissions (GHG) as an expressed goal for emission reduction in addition to health risk and criteria pollutants."

May 14, 2018

South Coast AQMD board votes to look into regulating diesel emissions from large trucks traveling inland

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DIAMOND BAR — Concerned Inland Valley residents and environmental activists heaved a collective sigh of relief after the South Coast Air Quality Management board voted Friday morning to look into passing rules to regulate diesel emissions from large trucks traveling to and from the region’s sea of warehouses.

Board members discussed the issue for more than two hours before casting a tight 7-6 vote.

Environmental activists and residents, however, said they are paying the price for those jobs with community members suffering the health effects of the air pollution. Among the issues, they say, are children with asthma, people of all ages with cancer and several suffering from breathing issues.

First step

While Friday’s board vote is a preliminary step and it could take at least two years for the agency to develop rules and regulations, it is still a huge step in the right direction, said Anthony Victoria, spokesman for the Riverside-based Center for Community Action and Environmental Justice.

“There is much more that needs to be done and the community is still suffering,” he said. “But, we want to make sure we are all included in the process and that the process ends with the industry being held accountable.”

Victoria said the threat of businesses and jobs leaving the area is not real.

“They are deeply embedded in the region,” he said. “These jobs are here to stay.”

But several board members, all of whom voted against regulation, strongly disagreed.

“If we kill the warehouses, the trucks aren’t going to go away,” Rutherford said, adding that families in the region depend heavily on these jobs. “They will continue to drive through our region continuing to pollute our neighborhoods. We’ll get all the pollution, but none of the benefits.”

She said the solution is to support and provide incentives for new technology that can help drastically reduce air pollution. But Rutherford’s comments were met with loud booing from activists and community members.

Board member Judith Mitchell from Rolling Hills Estates said the South Coast region should follow the example of the San Joaquin Valley, which passed a similar emissions rule about 12 years ago.

“The rule is not designed to kill (warehouses) or intrude into local land use decisions, but to develop collaborative processes between different agencies,” she said. “We have a lot of flexibility when we develop a rule. We can decide how we want it to look and what it should accomplish.”

In addition to warehouses, the board also voted to approve looking into similar rules for new developments and redevelopment projects, and rail yards. For ports and airports in the region, the agency will work with voluntary measures, but won’t push for mandatory rules.

Health and jobs

Friday’s vote gives residents hope that their air quality will improve, said Lorena Rodarte, 51, of San Bernardino. Rodarte says she suffers breathing issues so severe that she had to be hospitalized twice, and that her husband was recently diagnosed with stomach cancer.

Rodarte understands the importance of retaining these jobs in the area because her husband has worked in warehouses for the last 30 years, she said. That, she said, doesn’t mean these industries don’t need to be regulated or required to protect workers and the communities in which they operate.

“The children in my neighborhood suffer from asthma,” she said. “Kids are our future. We need jobs, but without healthy kids, there’s no healthy future for our communities.”

Online Edition

DIAMOND BAR — Concerned Inland Valley residents and environmental activists heaved a collective sigh of relief after the South Coast Air Quality Management board voted Friday morning to look into passing rules to regulate diesel emissions from large trucks traveling to and from the region’s sea of warehouses.

Board members discussed the issue for more than two hours before casting a tight 7-6 vote.

May 08, 2018

LA leaders slam Long Beach trucking company for ‘treating its employees like crap’

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he Los Angeles City Council on Tuesday overruled the civilian board that oversees the Port of Los Angeles and vetoed a special trade agreement for a warehousing and trucking company over concerns about its labor practices.

The move against California Cartage Co., LLC, is one of a series taken lately by Los Angeles city leaders as they seek to pressure trucking companies at the port to stop classifying drivers as independent contractors.

Some drivers and their unions have been arguing for years that labeling them contractors is a scheme to deny them just compensation and benefits.

The council, on an 11-0 vote, vetoed a ruling by the Board of Harbor Commissioners to extend a Foreign Trade Zone Operating Agreement at the company’s warehouse on port property in Wilmington.

“How can we incentivize a company that is treating its employees like crap? It’s not going to fly with me and it shouldn’t fly with you,” Councilman Joe Buscaino told his City Council colleagues before the vote.

Buscaino represents the Port of Los Angeles area. California Cartage officials did not immediately respond to a request for comment.

The FTZ Act of 1934 allows certain companies to reduce import duties or excise taxes by deferring payment of the duties, which makes it attractive for companies to perform some work on their products in the U.S. rather than offshore. The Harbor Department, as the grantee, is required by the FTZ Board to have an operating agreement with FTZ site operators.

According to Buscaino, California Cartage has some pending litigation against it and other legal complaints under consideration by the National Labor Relations Board, Department of Justice and in civil court. But Harbor Commission staff recommended to commissioners that the FTZ agreement be extended for Cal Cartage because it could not prove the company had broken any laws.

The issue of companies at the Port of Los Angeles and the Port of Long Beach classifying drivers as independent contractors has been a focal point of 15 strikes at the port in the last four years.

The truckers maintain they are improperly classified as independent contractors by companies at the port in a scheme that deprives them of benefit and job protections while increasing their overhead costs by forcing them to lease their trucks from the companies for which they drive.

According to a USA Today investigative report published last June, there are around 800 companies regularly operating at the L.A. ports, and almost all of them turned to some form of a lease-to-own trucking model after California banned older trucks from entering the ports in 2008.

Since the USA Today investigation, L.A. leaders have been putting more pressure on companies to change their business practices.

In January, City Attorney Mike Feuer sued three Port of Los Angeles trucking companies over their practice of classifying truck drivers as independent contractors, alleging it bilked them out of fair pay and benefits while also shifting operating costs onto their shoulders. The lawsuits were brought against CMI Transportation LLC, K&R Transportation California LLC and Cal Cartage Transportation Express LLC. All three of the companies were owned by Cal Cartage until last October, when they were sold to NFI Industries.

Mayor Eric Garcetti issued a statement in support of Feuer’s action when those lawsuits were announced.

“The Port of Los Angeles is one of America’s most powerful economic engines, and the workers who keep it running every day deserve better than to be deprived of basic employment protections,” Garcetti said then. “Denying workers fair wages and benefits to pad profit margins is unacceptable, and we will not stand for it in Los Angeles. I fully support the city attorney’s action against these unfair practices.”

The Trade, Travel and Tourism Committee, which Buscaino chairs, last year held a special hearing at the port, where truckers and warehouse workers spoke about alleged labor abuses that result from their classification as independent contractors instead of employees. The hearing led to the council’s vote in December to explore banning companies that use the practice from the port.The City Council’s vote sends the matter back to the Board of Harbor Commissioners for reconsideration.

Online Edition

he Los Angeles City Council on Tuesday overruled the civilian board that oversees the Port of Los Angeles and vetoed a special trade agreement for a warehousing and trucking company over concerns about its labor practices.

The move against California Cartage Co., LLC, is one of a series taken lately by Los Angeles city leaders as they seek to pressure trucking companies at the port to stop classifying drivers as independent contractors.

Apr 23, 2018

110 Acres Poised to Become Super-Efficient Cargo Container Staging Area

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A  portion of the proposed Harbor Performance Enhancement Center (HPEC) will begin operating as a container staging area within the next couple months, where containers will be stored for fast, easy pickup at a later time for the ports of Long Beach and Los Angeles, according to HPEC founder and CEO Jonathan Rosenthal.

“We have a pilot program [already approved by Los Angeles Board of Harbor Commissioners] and there is an exemption from CEQA [California Environmental Quality Act] for pilot programs,” Rosenthal explained. “So we will start operating in the next couple of months with about 400 spaces.”

Located on 110 acres of Terminal Island, the Harbor Performance Enhancement Center will begin operating as a container staging area in the next couple months as part of a scaled-down pilot program, according the founder and CEO Jonathan Rosenthal. The full project would consist of 3,500 spaces for container storage and is currently in the environmental impact report phase. (Rendering courtesy of HPEC)

Rosenthal’s proposal is to create a 5.5-million-square-foot container staging facility on 110 acres on Terminal Island at the Port of Los Angeles. In total, the completed facility will have 3,500 spaces for customers to store cargo containers already on chassis, wheeled frames used by truckers to haul cargo, to be transported at their leisure.

Rosenthal said there are much smaller facilities that stage cargo containers in a similar fashion but are controlled by and exclusive to specific shipping lines. HPEC on the other hand will be open to all terminal operators, trucking companies, shipping lines and beneficial cargo owners (BCOs) at both ports, he explained. Additionally, HPEC will give its customers 100% control over the movement of their inventory by remaining open 24 hours per day. Having assigned storage spaces with containers already on wheels will mean that draymen will not have to search for containers or wait for them to be loaded.

The purpose of HPEC is to increase truck velocity through port terminals, Rosenthal explained. At the San Pedro Bay ports, containers are stacked on top of each other when they are offloaded from vessels. Other ports operate as “wheeled ports,” where containers are placed on chassis to await pickup by truck drivers, a more time-efficient method than stacking.

With ever-increasing container numbers passing through the ports on a monthly basis, Rosenthal said the stacking method has become the norm. Truckers are often assigned one specific container, which means the random stacking of containers at port terminals increases the time searching for and unstacking containers.

“The stacking of containers is inherently inefficient because you have to stack them and unstack them. When a driver shows up for a container, he never wants the one on the top; he always wants the one on the bottom,” Rosenthal said. “The average container moves four times before it ever leaves the terminal.”

To reduce container moves and increase trucking velocity through the port, Rosenthal explained that “free piles,” a large grouping of containers with the same destination stacked together, could be formed at terminals through agreements with the BCOs. By doing this, trucks could line up and receive the first available container rather than searching through and rearranging stacks, a process referred to as a peel-off model. The containers would then be transported to HPEC. Currently, the average truck spends 45 to 110 minutes in a terminal, according to Rosenthal. He said studies show HPEC could increase velocity between 20% and 30%.

Increased truck velocity through terminals would have positive impacts economically and environmentally, Rosenthal explained. Economically, drivers and trucks would be utilized more efficiently because less time spent in terminals would result in shorter lines waiting to get into the terminal. This would also translate to less fuel being burned while trucks are idling at the terminal, which would reduce emissions.

“This is not for everybody. It’s not as though everyone wants to control their inventory with that sort of precision,” Rosenthal said. “Some people don’t care very much because their inventory is not that time sensitive. But we believe that there is a segment of the freight ecosystem that does want a lot more control over their inventory.”

The project is currently engaged in the CEQA process, which Rosenthal said should be completed in the next eight to 12 months. However, he said he does not expect any issues or pushback considering the project’s location is far from any urban or residential environments. The project also includes environmentally friendly features such as solar panels and amenities to facilitate the use of hydrogen, liquefied natural gas, electric and hybrid trucks onsite.

Once the CEQA process is completed, development of the project’s infrastructure, including bridge work, will be done in phases, according to Rosenthal, who added that construction would take a couple years to complete. Macquarie Capital, a division of Macquarie Group, the largest infrastructure investor in the world, has partnered with HPEC on a 50-year deal to bring the $130 million facility to fruition.

“They have opportunity to invest anywhere in the world. This is their first principal investment in the San Pedro Bay. That’s a big deal – to get on their radar screen and attract their capital,” Rosenthal said. “A company like Macquarie would not be doing this unless they saw opportunity and saw that San Pedro Bay was going to grow.”

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A  portion of the proposed Harbor Performance Enhancement Center (HPEC) will begin operating as a container staging area within the next couple months, where containers will be stored for fast, easy pickup at a later time for the ports of Long Beach and Los Angeles, according to HPEC founder and CEO Jonathan Rosenthal.

Apr 23, 2018

Bill Introduced To End ‘Rampant Exploitation’ Of Port Truck Drivers

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State Sen. Ricardo Lara introduced Senate Bill (SB) 1402 on April 11 to end “rampant exploitation” of truck drivers at California ports by calling out trucking companies with records of state labor and employment law violations, and penalizing retailers that utilize them.

If passed, SB 1402 would create a list of trucking companies with unpaid final judgments for labor violations. Retailers and other companies who later hire a listed trucking company directly or through a third party would be jointly liable for future violations by the trucking company.

“Port truckers are driving the global economy and delivering for the biggest brands, but they can barely afford to buy clothes for their families,” Lara said in a statement. “These used to be good jobs, and they can be good jobs again if retailers join us in improving labor conditions here in California and putting dignity back in the driver’s seat.”

In a press release, Lara listed examples of trucker exploitation, including companies forcing drivers to take on debt by financing their own trucks, which he said has led to situations where drivers actually owe money during some pay periods; lawsuits against companies by the California Labor Commissioner’s Office, which has won more than $45 million for more than 400 drivers; the misclassification of drivers as independent contractors rather than employees; and the fact that drivers are largely an immigrant workforce, making them more vulnerable to exploitation.

The bill is sponsored by the Teamsters Public Affairs Council and the California Labor Federation. It has also been endorsed by the mayors representing the state’s three largest ports – Long Beach Mayor Robert Garcia, Los Angeles Mayor Eric Garcetti and Oakland Mayor Libby Schaaf.

“While we have some great trucking companies working at the ports, we need to fix our system to make sure all truckers are treated fairly,” Garcia said in a press release. “We need to raise standards, and wages, in the industry while increasing efficiency to make sure our ports continue to be engines of growth.”

Groups such as the California Trucking Association (CTA) and the Harbor Trucking Association have come out in opposition of the bill. According to the CTA, the fact that companies whose workers are covered by a collective bargaining agreement are exempt from the bill’s implications proves it is a way to push out independent drivers.

“In the past, the backers of this bill tried to outright ban small-business, owner-operator truckers from working at the ports,” CTA CEO Shawn Yadon said in a statement. “Their actions were unanimously rejected by the U.S. Supreme Court. Now they’re back with SB 1402, which uses other means to accomplish the same goal.”

The country is experiencing a shortage of truck drivers, with numerous companies offering steady employment and 350,000 drivers opting to drive independently, according to the CTA. The association said many choose to become an independent driver because of the freedom and flexibility it allows, including setting their own schedules and managing their workload.

Weston LaBar, CEO of the HTA, provided the Business Journal with the following statement:

“We have serious concerns as to the intent of SB 1402. This shows yet another disconnect between an elected official and how our industry works. The majority of truckers in the port are independent contractors because they prefer to be independent contractors due to the opportunity it provides them. Yet, this bill would penalize a company if one driver feels misclassified even if hundreds of other drivers prefer their status as independent with that same company. It is time that California’s elected leaders actually attempt to learn about this industry and hear from the thousands of drivers that want to remain independent, as opposed to carrying through the political will of organized labor.”

According to Lara’s office, SB 1402 is scheduled to go before the Judiciary Committee today, April 24, and the Labor and Industrial Relations Committee on April 25.

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State Sen. Ricardo Lara introduced Senate Bill (SB) 1402 on April 11 to end “rampant exploitation” of truck drivers at California ports by calling out trucking companies with records of state labor and employment law violations, and penalizing retailers that utilize them.

If passed, SB 1402 would create a list of trucking companies with unpaid final judgments for labor violations. Retailers and other companies who later hire a listed trucking company directly or through a third party would be jointly liable for future violations by the trucking company.