Prepared Remarks of

Sean T. Connaughton

Maritime Administrator

Clean Ships: Advanced Technology for Clean Air Meeting

Coronado Island Resort Marriott

San Diego, CA

Thursday, February 8, 2007

12:00—1:30 PM

I bring greetings on behalf of President Bush and Transportation Secretary Peters. It is exciting to be here with you at the Clean Ships conference, an event that works well with the plans of the Department of Transportation and the Bush Administration.

The Maritime Administration is a co-sponsor of this important event for several reasons: we know that clean air is important for everyone, and we know that the maritime industry has some important work to do in this area. We at the Maritime Administration, and in the Department of Transportation as a whole, are taking action to make sure the transportation system not only is as efficient as possible, but also keeps the air and the water clean for all of us.

The Nation’s ports are complex hubs of commerce and transportation. They have supported the prosperity of the Nation for years. In recent times, the essential link between the economic and security interests of the United States and the health of its ports has become apparent, not just to maritime policy wonks, but to citizens throughout the country whose livelihoods depend on the unimpeded and efficient flow of goods into and out of the United States

Today I want to commend you for what you have been doing, and let you know that we are prepared to help. I also want to tell you about some of the things that we have been doing, and identify some important areas where more needs to be done.

I am impressed with actions many of you have already taken. An emissions inventory is well under way in Puget Sound, and an updated inventory is due for completion in the Ports of Los Angeles and Long Beach. One of the things they have found in updating that inventory is that voluntary measures taken by vessel operators have substantially reduced emissions: according to Bruce Anderson, the consultant on the inventory, cargo handling emissions have been reduced by 50%.

The State of California took important progressive action with its Highway Safety, Traffic Reduction, Air Quality and Port Security Bond Act in November. Not only does that Act recognize that all of these areas are linked, but it also harmonizes with the U.S. Department of Transportation’s strategy to reduce congestion across the country. The Ports of Los Angeles and Long Beach have adopted a Clean Air Action Plan setting ground rules for marine terminal and intermodal rail development. Because the Environmental Protection Agency, plus state and local environmental agencies, took part in that process, it has gained a measure of credibility with environmental groups.

That is very important. Many of you are aware of the report issued by the Natural Resources Defense Council, calling ports one of the least-regulated and highest-polluting industries in the country. While there is much to disagree with in that report, the NRDC has a point.

More than half of the population of the United States, 159 million people, live in areas with unhealthy air. Many of those areas are big cities, and most of our big cities are port cities. While the United States has stringent emission standards for new engines in most modes of transportation, ocean-going vessels are one of the few sources that have yet to make significant progress in reducing sulphur, NOx and particulates emissions. It is estimated that by the year 2030—that may sound far away, but it’s less than a quarter century from now—marine diesels will account for 20% of mobile NOx emissions. To put some perspective on this percentage, even though we rely so heavily on maritime shipping today, marine diesels currently account for only 7% of emissions.

We are facing a growing problem, and it is up to us in the maritime industry to address it, and it is up to government ensure that it is part of the solution, not part of the problem.

The government can help in two ways: one is to give technical assistance, and the other is to help manage the political process. An important part of our plan is focused in Southern California, where Deputy Maritime Administrator Julie Nelson is leading DOT’s Southern California Gateway Team. The Gateway Office works with stakeholders to develop better review processes, and increase our ability to complete high priority projects.

On the technical side, through funding provided by the DOT Center for Climate Change and Environmental Forecasting, my agency led and organized the completion of a “well-to-hull” energy emissions modeling tool known as the Total Emissions Analysis for Marine Systems. A second project, focused on studying freight transportation emissions via marine highway shipping routes is currently underway with a summer of 2007 completion date.

We also support the Pacific Ports Air Quality Collaborative (PPAQC), which, for those of you not from the area, is an initiative lead by the Port of Los Angeles to bring together major ports around the Pacific Rim, together with key private sector and government stakeholders, to address common environmental concerns. The Maritime Administration partners with the College of Marine Studies at the University of Delaware to research reducing marine-specific emissions through economic incentives.

With 14 million dollars to fund the Energy Technologies Program, we have created 30 projects, demonstrations, and studies, through collaborations with 8 federal agencies, 10 state and local agencies, 4 universities, 3 national labs, and 10 vessel operators and many private firms.

We also support the Pacific Ports Air Quality Collaborative, which brings together major ports around the Pacific Rim, together with key private sector and government stakeholders, to address common environmental concerns. Because of the acute nature of the air quality problems in California, the Marine Transportation System National Advisory Council, as one of their top five intermodal issues, is working in a public-private partnership to upgrade older vehicles to reduce local impacts to air quality

Finally, we have recently agreed to partner with the Pacific Merchant Shipping Association on an emissions testing program for all types of vessels involving main and auxiliary engines. There is a lack of real world data on actual emissions from vessels, and we hope that other federal and state agencies will join us in this effort.

Those are just some of the areas where government can take action, and where the Maritime Administration and the Department of Transportation have taken action. However, we need to keep moving forward, because we recognize that much more needs to be done.

By 2020, conservative estimates project that U.S. trade and freight volumes at American ports will double, even triple, which means that our shore side infrastructure will be that much more hampered by congestion and the pollution that this ominous inefficiency will leave behind on an already strained natural environment.

To be effective, requirements and regulations must be uniform, intermodal, and international. The maritime industry is a worldwide industry—by its very nature it has always been international. The vessels that serve our ports are from all around the globe. The truck and rail assets that carry cargo to and from the ports are from all around the country. We must be concerned that the ports, for all their contribution to the overall welfare of the Nation, are responsible stewards of the environments of the communities in which they are located. At the same time, we must appreciate that measures intended to improve the environmental quality of our major ports will not only fail, but may cause considerable collateral damage the national economy if they are viewed as purely local issues that can be solved locally.

Clean air is a worldwide concern. We all share the same atmosphere. We must ALL work together to improve our air. The Maritime Administration and the Department of Transportation worked with the maritime industry to pursue ratification of Annex VI to MARPOL, which was the first international effort to address vessel air emissions. However, I am aware that the Annex VI standards leave room for improvement. To that end, the Bush Administration will take up changes to Annex VI at the next International Maritime Organization, Bulk Liquids and Gases sub-committee meeting.

This Administration stands ready to work with those who manage our critical port infrastructure to find effective and efficient approaches to minimizing adverse environmental impacts in our ports. We will be alert to creative ideas about national approaches to improving environmental conditions around the ports, just as we will advise caution against local solutions that may unintentionally debilitate the national economy. Port environmental issues can be dealt with successfully when all levels of government and industry work together to pursue this worthy goal. This is the “win-win” scenario. But we must also recognize that uncoordinated, local-only approaches can lead to the “lose-lose” scenario in which we fail to achieve meaningful environmental gains, while undermining the economic and security interests of the country. By working closely together from the outset, I am confident that the Nation can improve the ports’ contribution to the national economy, while, at the same time, making sure that the air and water in our ports are clean and safe for all who use them.

It is the right thing to do, and it is the smart thing to do. We are prepared to make it happen.

I stand ready to work with all of you to promote international collaboration with ports and carriers to improve their individual and collective environmental performance and to encourage the development of compatible environmental management systems.

By working together, all of us can develop the safeguards today, that will keep the seaways and coastlines clean for our future mariners and for the benefit of our coming generations.

Thank you.

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