The Ports jointly committed up to $19 million for a one-year incentive program to encourage vessel operators to use low sulfur (0.2 percent sulfur or less) Marine Gas Oil (MGO) or Marine Diesel Oil (MDO) in their main engines during their approach or departure, out to 20 or 40 nautical miles from Point Fermin. During the one-year program, the ports provided funding to cover the cost differential between the cleaner burning low-sulfur fuel and the heavy bunker fuel typically used. To receive the incentive, vessel operators were required to be compliant with the Vessel Speed Reduction Program speed limit of 12 knots over the distance they wished to recieve the incentive (40 nm or 20 nm) and use low sulfur fuel in their auxiliary engines while at berth. 

On March 23, 2009, the Port of Long Beach Harbor Commission approved a 50 percent increase in the incentive rate for the program, above the existing incentive amount, for participants that call at the Port of Long Beach. The increased incentive was intended to help cover the vessel operator’s transitional costs when switching from the heavy bunker fuel to the low-sulfur fuel prior to entering the 20 or 40 nautical mile area. The increased incentive applied only to the final quarter (April 1, 2009 through June 30, 2009) of the program. 

The program was in place from July 1, 2008 through June 30, 2009, after which time the California Air Resources Board (CARB) main engine regulation came into effect.  A summary report of the one-year program can be viewed below: 

Low-Sulfur Vessel Main Engine Fuel Incentive Program Summary Report

Program Enrollment

All vessel operators that called at the ports of Long Beach and Los Angeles were eligible to participate in the program. In order to be eligible for the incentive, the vessel operator was required to enroll in the program, including enrolling the specific vessels that would be participating. Enrollments were accepted on an on-going basis, while the program was in effect. The following application materials were required to be completed and electronically submitted to the ports:

• Terms and Conditions, signed by a company representative with authority to authorize the Operator's participation in the program
• Operator Enrollment Form (Microsoft Excel required)
• Vessel Enrollment Form (Microsoft Excel required)
• Tax ID Forms
  • W-9 (for US entities) or W-8BEN (for non-US entities)
  • POLA Operators Only: Business Tax Registration Certificate
  • POLB Operators Only: any necessary licenses and permits required under Title 3 and Title 5 of the Long Beach Municipal Code

Program Participation Reports

Vessel Fuel Incentive Program Participation Report (July 2008 - September 2008)
Vessel Fuel Incentive Program Participation Report (October 2008 - December 2008)
Vessel Fuel Incentive Program Participation Report (January 2009 - March 2009)
Vessel Fuel Incentive Program Participation Report (April 2009 - June 2009)
Graph of Overall Vessel Participation in the Vessel Fuel Incentive Program

Additional Program Information

Fact Sheet

Frequently Asked Questions

Increased Reimbursement Information Sheet