1. PORT OF TACOMA

2. Provide updates on: Recent air quality news Air emissions inventory as a point of reference Northwest Ports Clean Air Strategy – Performance objectives – Port of Tacoma approach General Business Air Quality

3. PORT OF TACOMA The Environmental Protection Agency has announced intent to designate parts of Pierce County as “non- attainment” for fine particulates (soot). What causes soot? Why is the EPA designating this area? What happens next?  December 2008 - EPA formalizes designation  Dec 2011 – Puget Sound Clean Air Agency and Ecology submit State Implementation Plan to EPA  Dec 2013 Wapato Hills is required to achieve attainment and become an "Attainment Maintenance Area" How will this affect port projects? Air Quality Fine Particulate Matter

4. PORT OF TACOMA Air Quality Wapato Hills-Puyallup River Valley Non-Attainment Area

5. PORT OF TACOMA Last weekend, regional air quality monitors registered a violation of the national ambient air quality standards for ozone. What causes ozone? What area will be designated? What does the process look like from here?  May 2009 – Governor recommends to EPA  May 2010 – EPA formalizes non-attainment designation  May 2013 – Puget Sound Clean Air Agency and Ecology submit State Implementation Plan to EPA How will this affect port projects? Air Quality Ozone

6. PORT OF TACOMA In July 2008, the Tacoma City Council endorsed the recommendations of the Mayor’s Green Ribbon Climate Action Task Force What are the results?  Set carbon reduction goals  Identify key strategies  Develop 2-year action plan Air Quality Greenhouse Gases

7. PORT OF TACOMA Fine particulate matter Diesel particulates Greenhouse gases Carbon dioxide Methane Nitrous oxide Air Quality Puget Sound Maritime Air Emissions Inventory

8. Greenhouse Gasses Range of Effect Fine PM (PM 2.5 ) Diesel PM Local Regional Global N/A Yes N/A Regulatory Issue? Region Priority Med High

9. All Regional Maritime Sources Non-Maritime Sources 2% 98% Fine Particulate Matter, PM 2.5 Sources in Puget Sound Clean Air Agency Jurisdiction 0.2% Port of Tacoma Related Sources Other Regional Maritime Sources 1.8%

10. Diesel Particulate Matter Sources in Puget Sound Clean Air Agency Jurisdiction All Regional Maritime Sources Non-Maritime Sources 80% 20% Port of Tacoma Related Sources Other Regional Maritime Sources 2% 18%

11. All Regional Maritime Sources Non-Maritime Sources 2.4% 97.6% All Regional Maritime Sources Greenhouse Gases Sources in Puget Sound Clean Air Agency Jurisdiction Port of Tacoma Related Sources Other Regional Maritime Sources 2.1% 0.3%

12. PORT OF TACOMA Clear, measurable targets Encourage innovation and stewardship, not mandated solutions Short-term (2010) and long-term (2015) targets Focus on reducing diesel emissions Ships, cargo-handling equipment, rail, trucks Air Quality Northwest Ports Clean Air Strategy

13. PORT OF TACOMA Focused on cleaner fuels 2010 – equivalent of distillate fuels at berth 2015 – standards of IMO proposal Port of Tacoma approach Recognize customers currently meeting 2010 target - 70% of vessel calls from frequent callers Work with remaining customers Air Quality Ships

14. PORT OF TACOMA Focused on cleaner engines and fuels 2010 – Port-wide equivalent of Tier 2 or 3 engines operating with ULSD and/or biodiesel blends; new terminals use new equipment 2015 – Port-wide equivalent of 80% Tier 4 engines; retrofit remainder with best available technology Port of Tacoma approach Purchase new equipment with best available technology - Port’s new straddle carriers Retrofit non-Tier 2 equipment with Tier 3 or 4 technology Electrify yard equipment where appropriate Air Quality Cargo-handling equipment

15. PORT OF TACOMA Focused on advancing existing programs 2010 – expedite U.S. Environmental Protection Agency SmartWay Partner commitments 2015 – support proposed U.S. Environmental Protection Agency Locomotive Rule Port of Tacoma approach Promote early adoption of 2012 ULSD fuel requirement - Port’s rail switching partners use ULSD Support installation of anti-idling devices - Four installed; two planned for 2008-09 Pilot test for engine repower Air Quality Rail

16. PORT OF TACOMA Focused on cleaner engines 2010 – Equivalent emissions of 1994 EPA standards or better 2015 – 80% meet equivalent emissions of 2007 EPA standards or better; 100% by 2017 Port of Tacoma approach Encourage voluntary compliance - Two port partners participate in EPA’s SmartWay Program Inventory drayage trucks and truck age distribution Include on-dock rail in future port marine terminals Provide efficient gate operations and congestion relief Evaluate feasibility of truck gate parking Air Quality Trucks

17. PORT OF TACOMA No performance criteria; linked to diesel emission reductions Port of Tacoma approach Implement provisions of NW Port’s Clean Air Strategy Purchase fuel efficient and alternative fuel vehicles - Two electric vehicles purchased by Port Maintenance Support low-carbon emission energy sources - Participate in Tacoma Power’s Evergreen Options program at 11% level Reuse, recycle and deconstruct buildings scheduled for removal, where possible - 65% diversion goal for recent demolition projects Air Quality Greenhouse Gases

18. PORT OF TACOMA Three ports remain committed to NW Ports Clean Air Strategy Early actions by the Port and our customers demonstrate performance-based approaches are effective and provide opportunities for leadership Recommend Air Quality resolution to memorialize port air quality objectives and commitments to our neighbors, partners and customers. Conclusion Air Quality