The Ports jointly have 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. The ports will provide 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 must also be compliant with the Vessel Speed Reduction Program speed limit of 12 knots over the distance they wish to recieve the incentive (40 nm or 20 nm) and must use the low sulfur fuel in their auxiliary engines while at berth. The program will be in place from July 1, 2008 through June 30, 2009, after which time the California Air Resources Board (CARB) main engine regulation is expected to come into effect.

Vessel Fuel Incentive Program Participation Report (July - September 2008)
Vessel Fuel Incentive Program Participation Report (October - December 2008)
Graph of Overall Vessel Participation in the Vessel Fuel Incentive Program

Program Update

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 will help to 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 will apply only to the final quarter (April 1, 2009 through June 30, 2009) of the program. For more details on the increased reimbursement, please refer to the information sheet below.

Increased Reimbursement Information Sheet

Program Enrollment

All vessel operators that call at the ports of Long Beach and Los Angeles can participate in the program. In order to be eligible for the incentive, the vessel operator must first enroll in the program, including enrolling the specific vessels that will be participating. Enrollments will be accepted at any time, while the program is in effect. The following application materials must 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

All forms should be submitted to the Ports electronically, at shipfuel@cleanairactionplan.org. Vessel Operators will be notified when they have been enrolled in the Program.

Additional Program Information

Fact Sheet

Frequently Asked Questions