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) 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 complaint 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.

*NOTICE: As of July 21, 2008, each port has amended their vessel fuel incentive tariff to allow use of less than or equal to 0.2% sulfur marine diesel oil (MDO) fuel, in addition to less than or equal to 0.2% sulfur marine gas oil (MGO), for compliance with the program.

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

Port Workshop April 9 2008

• April 9 2008 Workshop Webcast
• Port Workshop Presentation on the Vessel Main Engine Fuel Incentive Program

Port Workshop May 21 2008

• May 21 2008 Workshop Webcast
• Port Workshop Presentation on the Vessel Main Engine Fuel Incentive Program
• Port Workshop Presentation on the Low Sulfur Fuel Availability Study
• MAN B&W Presentation
• Wartsila Presentation

Additional Resources

Several vessel operators have requested additional information on the use of low sulfur MGO fuel in vessel main engines. The following resources have been assembled to provide additional information.

Wartsila Information

• Low Sulfur Fuel Guidance
• July 2007 CARB Workshop Presentation
• February 2008 Faster Freight Clean Air Conference Presentation

Man B&W Information

• Low Sulfur Fuel Guidance
• July 2007 CARB Workshop Presentation

MAERSK Information

• July 2007 CARB Workshop Presentation

Fuel price information will be calculated as the quarterly average differential cost between IFO380 and MGO, reported as Los Angeles, by Bunkerworld.

• July 2008 Cost Differential Between IFO380 and MGO with Sulfur Content of 0.2% or Less 

In addition, the ports jointly completed a low sulfur marine fuel availability study in April 2008 to evaluate availability of low sulfur MGO fuel at major bunkering ports in support of implementation of the ports' related programs.