View the June 20, 2018 seminar recording
Jennifer Symoun
Good afternoon or good morning to those of you to the West. Welcome to the Talking Freight Seminar Series. My name is Jennifer Symoun and I will moderate today’s seminar. Today’s topic is Advancing Clean Air Projects at Ports and Goods Movement Facilities throughout the CMAQ Program.
Before I go any further, I do want to let those of you who are calling into the teleconference for the audio know that you need to mute your computer speakers or else you will be hearing your audio over the computer as well.
Today’s seminar will last 90 minutes, with 60 minutes allocated for the speakers, and the final 30 minutes for audience Question and Answer. If during the presentations you think of a question, you can type it into the chat area. Please make sure you send your question to “Everyone” and indicate which presenter your question is for. Presenters will be unable to answer your questions during their presentations, but I will start off the question and answer session with the questions typed into the chat box. We will also take questions over the phone if time allows and I will provide instructions on how to do so once we get to that point.
The PowerPoint presentations used during the seminar are available for download from the file download box in the lower right corner of your screen. The presentations will also be available online within the next few weeks, along with a recording and a transcript. I will notify all attendees once these materials are posted online.
Talking Freight seminars are eligible for 1.5 certification maintenance credits for AICP members. In order to obtain credit for today’s seminar, you must have logged in with your first and last name or if you are attending with a group of people you must type your first and last name into the chat box.
PDH certificates are also available for Talking Freight seminars. To receive 1.5 PDH credits, you will need to fill out a form. Please see the link in the chat box. Certificates will be emailed one week after the seminar. A seminar agenda has been included in the file download box for those who need to submit an agenda to their licensing agency.
Finally, I encourage everyone to please also download the evaluation form from the file share box and submit this form to me after you have filled it out.
Today we’ll have five presentations given by:
Our first presentation will be given by Mike Moltzen, the Deputy Director of the Transportation and Climate Division in EPA’s Office of Transportation and Air Quality, where he works on national innovative place-based transportation initiatives, including the DERA Clean Diesel grant program and EPA’s Ports Initiative. Recently Mike’s work included managing development of key aspects of the settlement of Volkswagen’s violations of Clean Air Act requirements. Prior to joining EPA’s Office of Transportation and Air Quality, Mike managed the mobile source program for EPA’s Region 2 office in New York City.
Mike Moltzen
Thank you very much for that introduction Jennifer. I am really happy to kick off today's webinar, especially considering that this is a great turnout, and I'm really pleased to see that. I thought I would start off saying a few words about the importance of addressing air quality around ports and other goods movement facilities. And to let you know about the EPA’s Ports Initiative, which is a voluntary effort at the EPA, where we are collaborating with stakeholders like the ones that joined this webinar today: port and freight related industry, community groups, and the state, local, and federal agencies to improve air quality and increase economic prosperity around ports. We know that funding will be critical to this work, and CMAQ is a very important resource. So we’re very thankful to FHWA for hosting today's webinar and to today's speakers for sharing their lessons learned and insights about the program.
This slide illustrates something that I think is pretty widely known by this group. Ports are incredibly important to the United States economy, and to the businesses and American consumers who rely on the services that ports provide. One thing that is characteristic of this sector of the economy, is that diesel engines are the lifeblood of the work that occurs here. And diesel engines operate at ports in tugboats, cranes, ocean-going vessels, and trucks. However, they are also characterized by potentially significant amounts of air pollution, and that is the reason for our focus through the EPA Ports Initiative. We have determined that there are quite a large number of Americans who live near ports and work at ports, who can be exposed to levels of air pollution that can harm their health. This includes areas that are even attaining the national ambient air quality standards. We estimate that there are about 39 million people who live within five kilometers of the top 150 U.S. ports. As port traffic grows in some areas, air pollution problems could be exacerbated if we are not proactive in addressing them.
We also know that infrastructure updates and expansions are sorely needed at many ports. We see enormous opportunities to advance next generation clean infrastructure, including clean technologies and improved operational strategies that can provide for safe, efficient movement of goods and passengers, while reducing costs and harmful health impacts. Through addressing air pollution sources at ports, we believe that can be an enabler of smoother, faster project review and permitting. That is a very important aspect of the EPA Ports Initiative.
Here is a little bit of background on the Ports Initiative. The EPA has been actively supporting voluntary efforts for over a decade, including through our Smart Way Program, which some of you may be familiar with. But in recent years, we have been hearing from port stakeholders that there's need for even more EPA support in this arena. Among other things, we formed a federal advisory group to advise us on this important set of work. Since receiving recommendations from that advisory group two years ago, we've been enhancing our work in the Ports Initiative, which falls under the five areas on the slide here. The work does include developing and piloting resources to help communities and ports better collaborate, and more effectively engage in planning that can impact air quality, and also improving coordination with our federal counterparts to support clean-air projects as part of major infrastructure projects, through forums like this webinar today. I wanted to briefly mention some of our technical resources that can help applicants better identify clean air projects that may be eligible for CMAQ or other funding opportunities, and also let you know about some of these other funding opportunities before diving into more details about CMAQ. Finally, I will touch on our efforts to develop a knowledge clearinghouse to support this important work moving forward.
First, let's take a look at the funding sources that have been utilized to implement a lot of the really important successes that we have had to date. We hope and expect that this year’s national request for proposals for our Diesel Emission Reduction Act or DERA program, to promote clean diesel projects, will attract a new round of port and marine related applicants. Applicants can earn extra points for projects at ports and other goods movement facilities. About half of the selected projects last year were port related. We do anticipate DERA funding will continue into the future. DERA is, however, not the only game in town. The EPA regional and headquarter staff are also working to get the word out and help ports capitalize on other local, state and federal funding sources, such as CMAQ. Eligible mitigation activities that can be funded through Volkswagen settlement funds that states will be receiving include a number of port and other freight related clean air projects. We know now that there are a lot of really important funding opportunities, and it's perhaps difficult to keep track of them. And that's why we've created a searchable table on the EPA Ports Initiative website of those funding opportunities which includes things like the current DOT BUILD grant program request for proposals (this is the program that was formally called TIGER), which closes on July 19. And we plan to include future announcements from programs like the Marine Highway Grant program, which I believe our final speaker Fred Jones will discuss.
An important component of EPA’s Ports Initiative is the technical resources to help ports and other good’s movement operations managers identify good clean air investments and to be in a better position to make the case for those investments - whether it be private sector investments or potential government funding opportunities. Two years ago, we released a National Assessment of the potential effectiveness of a range of emission reduction strategies that are currently available to address the sources operating at ports, including zero emissions, for example: zero emission (including electric) technologies, replacing older diesel fleets, operational improvements to reduce idling, and switching to cleaner fuels. We also released a more detailed assessment of shore power last April to help port stakeholders evaluate that strategy and estimate the potential emission reduction benefits from it. And as a complement to our national level analysis, two weeks ago, we released a collaborative report with Broward County’s Port Everglades in Florida, focused at the port level showcasing lessons learned and methods that other ports can use to develop baseline and future year emission inventories for harmful pollutants that result from typical port operations both at the port and in corridors outside the port; and to evaluate potential emission reduction benefits of deploying cleaner technologies and more efficient operational strategies, such as reduced idling, and the deployment of cleaner diesel and electric technologies.
Finally, we are, as I mentioned, continually updating our website with information on best practices, technical resources, and funding opportunities, including the searchable table with information on funding sources. I do encourage all of you to sign up for our newsletter on the homepage of our website, which will keep you up-to-date on the progress of our work and heads up when events, like this one, are taking place. I'm also happy to put you in touch with people at our headquarters offices as well as with team members throughout EPA’s 10 regional offices. We do look forward to working with all of you, and we hope that today's webinar will spur new interest in using CMAQ to help achieve clean air goals at ports and goods movement facilities.
Jennifer Symoun
Thank you, Mike. If you have questions we will get to that after all the presentations. Our next presentation will be given by Karen Perritt, a senior environmental protection specialist with the Federal Highway Administration’s Office of Natural Environment where she works on administering the CMAQ program as well as addressing Clean Air Act and NEPA issues. Ms. Perritt has worked in the transportation and air quality area for about 20 years, including work with the MPO for the Baltimore region.
Karen Perritt
I'm so happy to be here today to talk to you about the Congestion, Mitigation, and Air-Quality improvement, or the CMAQ program, and specifically how CMAQ program funds can be used to finance freight and intermodal projects. For my presentation today, I'm going to cover some basics about the CMAQ program, and eligibility criteria for program funds. I'm going to address specific changes in the most recent transportation authorization act that affects project eligibility and selection. We are going look at the federal aid process overall and how that fits with project selection. And I will highlight some port related CMAQ eligible practices and finally end with some resources for additional information.
Let's start with a look at the CMAQ program. It was created in the early 90’s and has been re-authorized under every subsequent transportation authorization act. Through FY15 the program has funded over 31,000 transportation projects across the country, accounting for nearly $31 billion in transportation investments since its inception. In the most recent transportation authorization act, the FAST Act, annual funding is approximately $2.3 to $2.5 billion per year nationally in fiscal years 2016 through 2020. CMAQ funds are apportioned to states each year based on a process established in statute. States are not under any obligation to allocate CMAQ funds within their state in the same manner that they were apportioned at a federal level. State Department of Transportations are encouraged to consult with affected MPOs and air quality agencies to determine regional and local CMAQ priorities and work with them to allocate funds accordingly. Note also that CMAQ projects have a nonfederal match requirement, which in most cases is 20%.
Since its inception, the purpose of the CMAQ program has been to fund transportation projects and programs that contribute to attainment or maintenance of national ambient air quality standards for the pollutants ozone, carbon monoxide, and particular matter. National ambient air quality standards are health based standards established by EPA for the protection of human health and welfare. You will also hear to these standards referred to as NAAQS. States are responsible to ensure that they attain these standards and maintain them over time. Projects funded with CMAQ funds are intended to help reach that goal. In addition to improving air quality, the CMAQ program also supports the goal of relieving congestion. State and local governments can simultaneously reduce the costly impacts of congestion while improving air quality.
The goals of the program, that we just discussed, shed some light on the eligibility criteria for CMAQ funds. Let's start with what we consider general conditions. Each CMAQ project must meet three basic criteria:
CMAQ projects can also be located outside of these areas, but in very close proximity, if the emission reductions benefit the nonattainment or maintenance area specifically. CMAQ funds can also be used in areas that were formally nonattainment or maintenance. So, what do we mean by emission reduction? CMAQ projects must reduce emissions from transportation sources. It must reduce any direct or precursor pollutants for CO, ozone, or particulate matter. It must contribute to the area’s clean air strategy, and can be demonstrated by emission reductions analysis. Ancillary project benefits, such as mobility, safety, or congestion relief can be considered when programming CMAQ funds, but those benefits themselves do not establish eligibility.
There are a wide range of eligible projects under the CMAQ program. Generally, we think of these investment categories to include capital investments, operating assistance, and planning and project development. Capital investments include establishing new or expanded transportation projects such as capital investments in infrastructure, vehicle acquisition, diesel engine retrofits, and other capital projects. Operating assistance is eligible for CMAQ funding, but is limited to new transit, commuter and inter-city passenger rail, intermodal facility, traffic operation centers, and a few more. The intent of operating assistance is to get a program up and running, not to provide perpetual support. Operating assistance is basically limited to three years. Finally, CMAQ funds can be used for planning and project development. All phases of eligible projects, not only construction, are eligible for CMAQ funding, such as preliminary engineering studies. Studies that are outside of the specific project development pipeline, such as marketing polls or master plans are not eligible for CMAQ funds, but are eligible for other types of federal planning funds. On this slide you can see a list of specific eligible project categories. There are descriptions and much more information on each of these types in the CMAQ program guidance.
We've been talking about the CMAQ program on a national level. How does that translate to specific CMAQ funded projects? The federal aid program funds are apportioned annually to the States. State DOTS and MPOs, then make the planning, programming and project selection decisions. This process varies from state to state and MPO. Once projects are selected for CMAQ funding, the project must meet the eligibility requirement, and is subject to federal oversight. Note that there is no federal role in project selection. CMAQ is not a grant program. Funds go directly to the state. All project decisions are made at the state and local level. This is the same as other federal aid programs such as those that are used to build highways and repair bridges.
As I mentioned, the project selection process will vary from state to state and MPO as well. As with all federal projects. CMAQ projects must be included in the area’s transportation planning documents. To learn about the project selection process in your area, you can contact the local MPO if in a metropolitan area or the State D.O.T., or the state FHWA division offices. Keep in mind that every CMAQ project must meet the eligibility requirements.
I mentioned that the CMAQ program has been in existence since the early 90’s. The FAST Act added some project eligibility emphasis areas. Specifically, the diesel engine control technology for nonroad diesel vehicles and engines used in construction projects was an eligible category for CMAQ funds. The FAST Act specifically added the emphasis on port related freight operations. The FAST Act also specifically called out the use of port related landside non-road or on-road equipment for use with specific set aside funds that are available for particulate matter areas. While not specific to our discussion today, the FAST Act did also give priority consideration to electric vehicles and natural gas infrastructure within designated corridors.
Some of the CMAQ eligible practices that you might see at ports are shown on this slide. While I have included the examples related to ports, the categories themselves are more widely applicable. Diesel engine retrofits and related projects can include diesel vehicle replacement, engine repowering or rebuilding, after treatment technologies, such as particular matter traps and oxidation catalysts. Retrofit projects can be on-road motor vehicles, or non-road vehicles and equipment that are used in construction projects or in port related freight operation. Equipment used primarily in a maintenance role would not qualify such as loaders or backhoes, in yard or depot work. Typical port related eligible diesel retrofit vehicles include dray trucks and switcher locomotives. Projects to control extended idling could be eligible for CMAQ funding and could also be carried out under the CMAQ public-private partnership provision. CMAQ funds have been used to improve intermodal freight facilities and operations where air quality benefits can be shown. Primary projects reduce emissions directly, such as new diesel engine technology. Secondary projects reduce net emissions, for example, via modal shift. Freight intermodal projects can include new, well located intermodal terminals, better designed access roads, bridges and tunnels serving intermodal rail and port terminals for improved access, construction or relocation or rail routes, and treatment on tailpipe exhaust or advanced engine technologies. In New York, for example, CMAQ funds were used to purchase a container barge to ship freight containers via the Hudson River; thereby, removing truck trips from highways and decreasing transportation emissions. Program funds can be used to support alternative or renewable fuel in vehicles, standalone purchases of fuel is not an eligible CMAQ cost. General CMAQ funds can support infrastructure such as publicly owned fueling facilities, the cost difference between alternative fuel vehicles and conventional vehicles, and certain hybrid vehicles. This is really only a snapshot of these project descriptions. I highly encourage you to take a look at the CMAQ program guidance for more information.
Finally, I would like to point out a few resources. The CMAQ program website includes the program guidance that I've mentioned, as well as a wealth of other resources. There are fact sheets, CMAQ program assessments, emission estimation tools, and links to other associated information. I also wanted to point out the CMAQ public access system. This is a searchable database of CMAQ related projects. You can search by state, project type, and MPO. To see what types of projects have historically been funded in your area.
The FHWA Freight and Air Quality Handbook is an excellent resource. Chapter 4 specifically addresses funding freight related air quality projects not only with CMAQ funds but how other federal funds can also be used. I mentioned the fact sheets. There's a link on this slide which includes, one on diesel retrofit, intermodal freight transportation, public-private partnerships, and several more. Finally, if you would like a general overview of the program, or would like to share some program information, perhaps with your MPO board or your management, there is a short 22-minute video that is posted here that gives you an overview of the program. Here I have provided some FHWA contacts. Most CMAQ eligibility questions really need to be considered on a case-by-case basis. If you have questions about eligibility for a specific project in your area, a good place to start with is the CMAQ program guidance to consider if a specific project meets the necessary criteria. If there is still additional questions your local FHWA division office in the state is an excellent resource or for additional general questions about the program or anything that I've covered today, feel free to reach out to me. I've also included contact information for Mark Glaze in my office who also works on this program. That will conclude my presentation for today. And I really appreciate your attention.
Jennifer Symoun
Thank you, Karen, and thank you for those that have been posting questions. Please continue to post them, will get to them at the end. We will not be answering any project or area specific questions. Those are best directed to your FHWA division office or your MPO. We will be addressing general questions only. Our next presentation will be given by Doug Ferguson, a senior transportation planner with the Performance-Based Programming group at the Chicago Metropolitan Agency for Planning. Doug has been with CMAP and its predecessor agency, CATS, for the last 16 years. He is responsible for the development of the CMAQ program and Transportation Alternative Program (TAP) for northeastern Illinois.
Doug Ferguson
I hope to give some examples of the freight specific diesel projects that we have funded here in the Chicago area. The CMAQ program in northeastern Illinois is run by our MPO policy committee. They are given the authority by the state DOT, IDOT, to program these funds, in-turn the MPO policy committee developed a CMAQ project selection committee, which is made up of representatives from around our region, in which to evaluate applications, make selections, and then also manage the program as it goes forward. That is made up of the MPO staff, myself, along with representatives from IDOT, Illinois Department of Transportation, our Illinois EPA offices, our regional Transportation Authority, which represents transit, a representative from the counties, the City of Chicago, and also the Council of Mayors. The project selection committee is also charged with monitoring and making adjustments which accounts for cost increases, handling that kind of thing, but also making decisions on how we evaluate and select projects. The funds that we receive are processed through Illinois DOT for highway and any other type project that isn’t transit. Transit is handled through FTA. We get about 106 million per year to invest in the program. We do a call for projects every two years. So, we are programming a five-year program of projects and we’ll then backfill the program every two years. Typically, it is an 80/20 federal/nonfederal split for funding. But, if we are doing projects with the private entities we do ask for a larger percentage contribution. With the switcher locomotive project, which I will talk about in a little bit, we requested a 65/35 match to offset the potential benefits of fuel savings that they will see by implementing those projects.
There are a lot of different types of projects that we do with CMAQ funding. But today I'm going focus on what we refer to as direct emissions reduction projects. These are specifically fuel and vehicle technology projects. The majority of which are diesel in nature. Some of the different types of projects that we have done under our direct emissions project include switcher and short-haul locomotive retrofit and replacement, school bus retrofits, delivery trucks, public fleet conversions with municipal and county agencies. We also did a couple of other projects directly with the Illinois EPA, which I will discuss in a little bit.
On the switcher locomotive replacement and retrofit side, starting in 2008 was when we funded our first switcher locomotive project with CSX down in Riverdale, which is a south suburbs of Chicago. We have really expanded since that time in 2008. To date, we have funded a 100 different switcher locomotive and short-haul rehabs and replacements in the region. About 65% are online and active in yards throughout the region. This includes the four different class I railroads that are coming into the region. We have also done a lot of work with several of the short-haul locomotive companies that move freight between the different yards. Our first switcher locomotives tended to be Genset. Those have since fallen out of favor due to some of the complexity of maintenance for that type of equipment, but we've seen the technology improve on the general switcher locomotives, where they are meeting tier 3 and now tier 4 standards. It has been interesting to see how sometimes when you have initially a lot of different new technologies coming in, and whether some of them play out or not. That has been something that we have wrestled with, but also I think that we have been able to succeed. On the slide, the top photo is from Norfolk Southern yard on the south side of Chicago, those were specifically short-haul locomotives. They were moving freight between their different yard locations. But then the Indiana Harbor belt on the bottom picture, that was a Genset locomotive that is still active and they use for their specific yard operations.
We have done other projects related to freight that don't fall under the railroad or yard operations. We worked with the City of Chicago and their Drive Clean Program. They've put together a drive clean truck program, which is a rebate program for large fleets, where they are converting from diesel delivery trucks to all electric and electric hybrid. The rebate program covers the incremental costs for the delivery trucks and these are trucks that are in the class II to class VI range. To date $11 million has been spent on this program, and there are more applications then we can fund. We are in the process of getting more funds put towards this program to make it grow.
We’ve also funded a program in our south suburbs with a trash hauling company. We funded a CNG conversion of their trash haulers, which included fueling stations. The fueling stations are available for public use. I know several municipalities in that area have taken use of those facilities. We've also done an Illinois clean diesel grant program through Illinois EPA, where we focus specifically on off-road engines and off-road engine repowers and have called out port operations. But to date, I don't believe that they've received any requests for port funding. But it is available through Illinois EPA's clean diesel grant program.
So, just to go over a little bit how we select our projects specifically for the direct emissions reduction projects. Our first and main way of evaluating, is looking at the cost effectiveness of the emissions reductions. We look at the total cost of the project, we estimate the PM 2.5 emissions either using the EPA's Diesel Emissions Quantifier or the GREET AFLEET application that is available from Argonne National Laboratory. Then we present it in a dollar per kilogram of PM eliminated. This is what we mainly use. But we have also in the last several cycles added what we call a transportation impact criteria, where we try to look at different ways of adding to the cost effectiveness of the emissions. Specifically, we look at sensitive populations, annual health benefits, and whether the project improves public fleets or not. The benefits of sensitive populations, this is the one we put the most weight on, and it only applies to the direct emissions reduction projects. We have an index where we look at concentrations of PM in relationship to what we consider sensitive populations: people over the age of 65, under the age of 5, large minority, and low income populations. We have produced a map that was able to show this graphically to our proposed applicants so they can see where their project would fall in the sensitive population scoring.
Jennifer Symoun
Thank you, Doug. Our next presentation will be given by Barbara Nelson, who currently serves as the Deputy Executive Director for the Richmond Regional Transportation Planning Organization and Planning District Commission. Barbara’s 25+ year career has involved transportation policy and planning at all levels of government. Prior to returning to work with in the Richmond region in 2015, Barbara worked with the USDOT Maritime Administration on strengthening planning and engagement opportunities between ports and MPOs across the country.
Barbara Nelson
Good afternoon everyone. I am glad to be with you today, or this morning for you those of you on the West Coast. Today's remarks will focus on the Richmond Regional Transportation Planning Organization’s investments to support a barge service running between Richmond and the Port of Virginia system of terminals in Hampton Roads. This service has significant transportation, land use, environmental, and economic implications for our region as well as Virginia. We consider the service to be transit for cargo.
The remarks for my time and today’s presentation will focus in these three areas. One, providing some context on the Richmond Regional Transportation Planning Organization, I will often times refer to it simply as the RRTPO, and the Port of Virginia. Then my remarks will move into some background information on the competitive project selection process for CMAQ spending in our region, and then move into the coordination and collaboration between the RRTPO and the Port of Virginia to advance clean air goals.
The efficient movement of people and goods is a local, regional, state and national issue and opportunity. The Richmond Region is located in Central Virginia; it has a diverse and vibrant economic base. The area within the MPO has a population of approximately 1 million persons. We are one of 15 MPO's across Virginia, and in Virginia MPOs are located within regional planning district commissions. Our membership includes nine jurisdictions as well as transit, federal, and state agencies. In our region we have a history of providing intermodal transportation services using the river, trucking connections, interstate connections, the asset of the two class I rails in CSX and Norfolk Southern, short-haul rails and air freight through our Richmond International Airport. We are the midpoint of the Urban Crescent of Virginia. Between Northern Virginia and Hampton Roads there is an arc, of sorts, where nearly 75% of Virginia's population is located. Richmond is also a midway point in connecting to the Northeast corridor, or to the Southeast corridor, as it relates to future rail investments. From the asset terminals of the Port of Virginia system, there is access to over 50% of the nation’s consumers as well as manufacturing that are located within 750 miles of the port.
The process in our region for selecting projects for CMAQ occurs on an annual basis. It is an annual allocation process, it is highly competitive, as others described, like most transportation projects. In Virginia the funds are sub-allocated from the feds to the state, and then to the MPOs. From the perspective of our MPO, these are discretionary funds that are allocated to regional priorities. There are three funding sources that fall into this category. The transportation alternative, regional surface transportation program funds, as well as CMAQ. While, my remarks today will focus on how we have utilized our discretionary CMAQ funds we have also used RSTP to support port infrastructure inside the gate as well as outside the gate, and for planning studies to support the port. We are pretty much all in for supporting the port in our region with any and all available funding sources. The three projects that I will highlight in my remarks today that have received CMAQ funds include: our support for the America’s Marine Highway, M-64 Barge Service, the acquisition of a Liebherr Crane as well as the crane operator program.
There are three key reasons that the region supports the 64 Richmond Express with this discretionary funding, they include environmental impacts, transportation system performance, and economic opportunities. The TPO is committed to working to ensure the success and the viability of this service as a component of the surface transportation system. This project was first introduced as a concept to our MPO in 2007 by the Maritime Administration. The service launched in December of 2008. 14 months from concept to launch there is a 3 year CMAQ demonstration project to shift containerized cargo from the asphalt highway of the congested I-64 corridor to the Marine Highway of the James River using $4 million in CMAQ funds. In the case of this service, it’s really a tale of two ports, and about the right sizing of the transportation solution. In Hampton Roads you are 2 and half hours to the open sea you have a 50-foot channel depth and infrastructure to handle many of the largest ships in the world, with congressional authorization to dredge the channel to 55 feet, which is actively being pursued. Whereas, 100 miles upriver from Norfolk, you have the Richmond Marine Terminal with a 22-foot channel depth and a 121-acre site with activity and opportunity. The photo on this slide shows the David and Goliath relationship between the two ports. There is the barge that is loading in Hampton Roads and will be transiting up the river to the terminal in Richmond.
Our barge service launched at the deepest point of the recession but it has survived and grown due to many efforts and actions by the Port of Virginia and other partners. And perhaps most notably, the successful execution of a 40-year lease between the Port of Virginia and the city of Richmond, which will be in place through 2056. The barge has 3 weekly sailings which are scheduled for the 100 mile transit. This table shows you the year-over-year changes for the five-year period for the recent fiscal years ‘13 through ‘17. By looking at the chart you can see that the trend is moving in the direction that we would like it too. It's positive. The cargo, both in terms of exports and imports, is moving upward year over year, as well as the balance between the exports and imports, which supports the sustainability of this service.
In the Richmond area, we've had difficulty meeting the national ambient air quality standards for ground level ozone in the past. And our region is committed to working proactively to introduce strategies and programs aimed at improving the quality of the air. The mode shift of truck to barge will be part of that solution set. This mode shift targets reduction of nitrogen oxides and hydrocarbons which combine with sunlight and high temperatures to form ground-level ozone, which is our air quality trigger. In addition to reduction in greenhouse gases associated with VMT, there are measurable benefits to fuel savings associated with this service. This table shows the comparison of 2016 versus 2017 comparing the moves that would have occurred by truck but occurred by barge. For example, in 2016 there would have been 19,600 truck trips that were replaced by 138 barge trips. When we compare that to the growth in cargo moves to the port in 2017 the barge moves were up, and the amount of trucks that were displaced from the highway system were nearly 24,000 trucks. As you take a look at the chart, you can see that from the emissions, they are moving in the right direction, when we compare the benefit of barging over trucking. We think that it is a great utilization of our CMAQ funds. Due to the growth in the barge service we did purchase a new crane it was acquired with regional CMAQ funds. This investment ensures the continuation and uninterrupted performance of the service. The cost to purchase the crane was approximately $4.2 million, and that arrived in February 2016.
There is a third effort that the Richmond Regional Transportation Planning Organization supports with the Port of Virginia. It is the Green Operators Program. It's an air-quality and congestion management program that does compete annually in our regional CMAQ project selection process. It builds on a 2007 Port of Virginia initiative that was, I believe in its first year or years, supported with DERA funding. The included activities for the Green Operator Program that our TPO has agreed to support with the Port of Virginia supported clean diesel technologies such as diesel retrofits, dray replacements, cargo handling equipment and tug repowering.
By 2040, employment in Virginia, and population are both expected to have had significant increases over today’s baseline. And the demand of daily vehicle miles traveled on the highways has outpaced road construction for decades. It's just too great for us to look at solutions in terms of road construction alone. If we combine that challenge with nearly 75% of all of our projected federal transportation revenue, over the next 20 years dedicated to preservation and the maintenance of the system that is in place today, we need to make sure that we are thinking as creatively and planning as creatively as we can, and responding in ways that maybe we have not in the past. We believe that the introduction of the barge service is one of the ways that's going to help us maximize the performance of the transportation system. The barge mitigates impacts related to maintenance and operation costs. It mitigates impacts related to accidents; regulatory changes, such as ELDs; and market forces, such as e-commerce. The service is a transportation system solution that can be nimble it is scalable and it can be responsive to change.
One component of our work at the RRTPO and the Planning District Commission is to assist the region in achieving the best possible competitive position to take advantage of the emerging economic opportunities. Economic strategies seek to retain existing businesses and encourage their expansion and the projected Port of Virginia growth represents an opportunity for our region to capture a percentage of the domestic and international trade; expanding distribution, and manufacturing, and warehousing opportunities in either existing facilities or planned industrial and business parks within our region. This slide represents new port uses as well as new development that promotes access to the Richmond Marine Terminal as an opportunity.
In my concluding remarks I would like to thank you all for the opportunity to be with you today. But also say that in Virginia we’re finding shippers, beneficial cargo owners, distributers and manufacturers who want frequent cost-competitive reliable services that is also environmentally balanced in terms of the transportation choice. The Richmond regional TPO is proud to have the opportunity to support the Port of Virginia, and providing this service to the 64 Richmond Express. Thanks for the chance to be with you today.
Jennifer
Thank you, Barbara. Our final presentation will be given by Fred Jones, the Logistics Manager for the America’s Marine Highways Program within the MARAD Office of Ports and Waterways Planning. The Program’s mission is to lead in the development and expansion of Marine Highway Services and to facilitate their integration into the U.S. surface transportation system. Fred is an accomplished logistics specialist with over 30 years of service in the transportation industry. With his strong strategic and technical background coupled with his operational leadership skills he effectively manages all programs grants and cooperative agreements for the office. He began his maritime career in the U.S. Army in 1988 and has served in several transportation positions until he retired with over 24 years of active military service.
Fred Jones
Thank you Jennifer. Barbara Nelson’s presentation was a great segue to this presentation. For those who are not familiar with the America’s Marine Highway program, Congress recognized, with projected population growth, accompanied by a massive economic growth, we need to look at several different ways of moving freight. The Census Bureau estimates that by 2050 that the United States will grow by almost 80 million Americans. Those people are going to have wants and needs. We are going to actually have to satisfy that by adding more than just railroads and highways to our transportation system. So, at the America’s Marine Highway Program here's our vision. As I mentioned with growing congestion the America’s Marine Highway is just one solution for the transportation issues that we will actually encounter.
In front of you, there is actually all of our Marine Highway designated projects and grants. As you can see, most of those grants and projects are actually focused on the eastern portion of the United States and mid-America. There is very few on the West Coast at the moment, but we are working to improve that. It is currently about 29,000 nautical miles that has actually been designated as Marine Highway routes. Those routes are associated with interstate waterways. Take For example the M-95 which parallels Interstate 95. You have the M-55 which parallels the Mississippi River, the M-55.
Here is the portion that we need to talk about. The America’s Marine Highway grant program. Unlike the TIGER or the BUILD, this grant program is not heavily solicited. Currently we have 21 designated Marine highway projects. Keep in mind, those are the only projects that are authorized Marine Highway grant funds. In 2010, that was when the program first received grant funding, we received a total of $7 million. Out of that $7 million, we funded three Marine Highway projects, one of which being the James River, or the 64 Express. It was a while before we received grant funding again. We received our second round of grant funding in 2016, when we received $5 million. From that appropriations we granted six Marine Highway projects funding. In 2017, we received $5 million again, and we are in the process currently of reviewing those projects to see which ones will be funded. We received a total of 11 applications that were actually deemed qualified and eligible. And like I said, we are in the process of reviewing those to see which ones will be funded. In 2018 we received a $7 million towards the grant program. We are in the process of drafting a notice of funding opportunity, which will be released very soon. We are looking at the funding opportunity being published in the Federal Register at or around July 9. That funding opportunity will be open for 90 days, so designated projects have 90 days to submit their application to the program office. I cannot reiterate it enough, only authorized or designated Marine Highway projects are eligible for Marine Highway grants.
Some of the environmental benefits of using a barge service. As you can see, using a barge is far more lucrative than any other means of transportation. We are not looking for customers to actually put all their commodities on a barge, we would just like to provide a viable modal choice for the customers. The next slide also talks about carbon emissions sustainability benefits. The key thing here is, it's a much safer method, or modal choice. It is much safer and it does not require a heavy lift. There are no service hour restrictions. With that in mind I will go ahead and turn it back over to Jennifer.
Jennifer Symoun
Thank you, Fred. We will now move into the Q&A session with the questions posted online. Please feel free to continue to type in your questions. If you get through all those questions online, we can open up the phone lines for questions. There are quite a few questions for Karen and a few for Barbara. I’ll start with the ones for Barbara.
The first question for Barbara is do you know what the actual volume is per load, i.e. truck load vs. barge load? Is more cargo moving by barge than truck?
Barbara Nelson
I will say that I am partially qualified to answer that question. The folks of the Port of Virginia are probably going to know far more than I. But I will take a stab at it. The barge that is in service today can carry 120 boxes. My understanding is that it is running at near capacity every time it runs. There is clearly significantly more cargo than that that is running in the I-64 corridor. Based on the size of the barge and the frequency of the runs, we do have limitations on the amount of cargo. But I believe the goal and desire is, as the demands of the service increases, to acquire additional barges, extend the number days of service and try to capture more of the cargo that is transiting in the I-64 corridor. That would be an opportunity for being discharged in Richmond. The barges that are running are, I think, running fairly close to full capacity. As the one slide showed, with the balance between the imports and the exports, it is not as if the service is repositioning a lot of empties for the container yard in Richmond, it's really about moving cargo. I hope that answers that question.
Jennifer Symoun
Another question is what is the total cost of the barge project? And what is the breakdown between the CMAQ grant and the cost sharing between the Port of Virginia and the City of Richmond?
Barbara Nelson
I will talk about the start up of the service. It was a three-year CMAQ demonstration project. Our CMAQ funds were used to backfill that delta between the cost of moving the box based on the funding that could be secured during those initial years and the price per box, if the cost of the transport by truck was X and the cost of barge was Y, until we are able to get the volume up so that trucking and barging were more competitive from a pricing structure. The CMAQ funds were used to close the short-term gaps, while we were all working to grow the service. The funding in terms of cost sharing, there was not a relationship between the port and the city of Richmond it was a TPO, Port of Virginia relationship, with the agreement and the processing of funding handled by the Virginia Department of Transportation. So, from a cost sharing perspective, the City of Richmond was not involved in that.
Jennifer Symoun
Thank you. Fred there are two questions for you. Will on-terminal equipment be eligible for MARAD?
Fred Jones
Yes, the way the legislation is written with the way the notice of funding availability is written, is that infrastructure projects, planning, and vessel and vessel designs will be eligible for funding.
Jennifer Symoun
Another question for you Fred, where can we find out more about the 21 marine highway designated projects?
Fred Jones
Good question. I was just in the process of responding. You can go to our website at MARAD.DOT.GOV, and you can find out all the information that you need about the 21 projects and the designated Marine Highway routes as well. [I will go ahead and type that web address into the chat box.]
Jennifer Symoun
Karen there's quite a number of questions for you, with several regarding the Buy America requirements. Rather than asking each question individually, lets a group approach. Can you please talk more about the Buy America implications when using CMAQ funds?
Karen Perritt
Thank you I think that is great approach. First, I would like to say that I do appreciate the questions as well as some of the comments related to Buy America. Working with that provision, as it relates to CMAQ, I really understand and appreciate those comments and questions. In general, what I can tell you is the latest information we have, is there was an April 16 Federal Register notice. Which is a waiver approval of 150 vehicle and equipment projects that became effective on the 17th, and that covered waiver requests submitted in part of FY ’16 and part of FY ‘17. That is really the latest information that we have. I will have to direct you to the Buy America website for any additional information about that process. That is the latest information that we have. And again, I do appreciate the comments. Taking a look at the latest Federal Register notice and then the Buy America website is going to be the best information that we have on that at this time.
Jennifer Symoun
Thank you. Let me see. We had a few questions about what is considered eligible under CMAQ? One was are river freight tow boats or barge boat diesel engine upgrades CMAQ eligible?
Karen Perritt
Jennifer, I think I would also like to try to address, as there was a number of eligibility questions throughout, instead of going through each of them individually, like I mentioned earlier, it's very challenging to make blanket calls about different questions about project eligibility without the details about the project. That is respectful of each of the nuances of every project. I'll give an example of what that challenge is.
If you think about bike-ped projects. If I were to ask you, “are bike-ped projects eligible?”
I think everyone’s first inclination might be to say, “Yes.”
Then I would think, “Well is that project in a nonattainment or maintenance area”.
“No.” Then that project is not going to be eligible.
“Is that bike-ped facility primarily recreational?”
“Yes.” Then it is not going be eligible.
“Can you demonstrate emissions reductions from that project?”
“No.” that project is not going to be eligible.
Even seemingly more straightforward type of eligibility question can easily have a lot of nuances to it. I am hoping that through my presentation the participants feel that they have some of the tools to approach this. As I mentioned, take a look at the guidance. There's a lot of information about the categories. Go back to those general criteria for each individual project. These are the tools to look at. If you have specific ideas, or if these questions are related to maybe something that you want to do. Those are really the tools to get started to answer the question. We've only scratched the surface today of so much of the program. So I do not think it is a good idea to make any blanket statements out of respect that each individual project is going to have its own nuances to it. So take a look at the guidance, think of the criteria we talked about, you have contacts, reach out to the folks in the program, and I think that would be a good start. If you're really having trouble, absolutely send me an email, and we could get into specifics as opposed to a blanket eligibility response. Hopefully people have enough information to start to digest that and figure out for their own project the path forward for that.
Jennifer Symoun
I believe that is the best approach. You posted the link in the chat pod I don't know if it's included in there but there was a question about if there’s a list of Buy America compliant vendors in the United States?
Karen Perritt
I would not have that list. I'm not aware of that.
Jennifer Symoun
Another question, what is the opportunity number for the CMAQ notice of funding opportunity? If it's not yet released, do you know the anticipated release date?
Karen Perritt
I think that might be related to the misconception that the program is a grant related program. As I mentioned apportionment is done on a national level. Then the funds go directly to the states, to the state DOT's, and then from the state DOT’s they can go through the state to the MPO's depending on the process in each individual state. MPO’s, quite often they have a competitive selection process and that's where you would see the applications for funding. There is no national level of grant process it all is going to go through the typical federal aid process. So depending on what type of project you want to do or what location you're in, that would be your next steps in terms of figuring out, “how do I get funding for something I am interested in?” You can reach out to those particular local partners, which would be the Metropolitan Planning Organizations. There is an Association of Metropolitan Planning Organizations called AMPO, so if you are not sure of the MPO in your area you can look on AMPO’s website, and of course your state DOT should be a resource as well. And that's where you would get the process started in terms of a specific project, but you are not going to find any national level grant application process for CMAQ.
Jennifer Symoun
Thank you. Another question for you. Can you provide more information about the public-private partnership program?
Karen Perritt
Again, I would encourage you to take a look at our website, we have more information both in the guidance as well as the fact sheet. It's part of the program that allows some additional flexibility for private entities in terms of funding and working more flexibly with the CMAQ funds. So I would encourage you take a look at the additional information on that.
Jennifer Symoun
What percentage of CMAQ funds end up addressing freight and port emissions, versus general on-highway sources?
Karen Perritt
That is a great question. I think there’s a couple resources for more information on that. I did see in the chat pod that someone had actually gone ahead and done some searching in the database, which I think is terrific, and had posted some information they found immediately from that. There is also, as I mentioned, on our website, program assessments. Under MAP-21 We actually did a very extensive study that cost over $1 million, it was statutorily required. That broke down, really, in a high amount of depth, the different types of projects, there are charts on the distribution across the states, there is not only by how much of the funds that are used, but also in terms of emissions, there is some discussion of health benefits. The database is just one source that you can look at the breakdown, if you want to get a sense of how it fits in the other project categories, I would look under the program assessments, and I will try to post that link as well. I think that would answer the percentage as well as getting a little bit of into the emissions benefits as well.
Jennifer Symoun
There is a similar question about what percentage of CMAQ funds are awarded to projects in areas that were formerly in nonattainment with NAAQS? Is that information available on the web site?
Karen Perritt
No, I do not think that that's going be broken out. That relates to eligibility. If CMAQ funds can be spent in an area that was formally not attainment or maintenance, to my knowledge, we do not have that breakout on a national level. But that could be something we could consider looking at.
Jennifer Symoun
Another question. How do CMAQ and TAP programs compare and contrast for bicycle and pedestrian facilities construction?
Karen Perritt
I think that's a great question. And I would encourage that participant to send me an email. I think since that is a little outside the purview of this webinar and then I can also pull in the TAP resources to give them a thorough response. If that person could just send me an email, that would be a good format for that question.
Jennifer Symoun
Okay great. One more question. Has FHWA considered switching to the Argonne National Lab AFLEET tool for quantification?
Karen Perritt
There are two parts to that. I do want to mention that we have what we call CMAQ emission toolkit. I'm going to post that link. So far diesel retrofit tool, we did include the AFLEET component, when we developed that particular diesel retrofit tool. We did consider that, and incorporated into tool. But I also want to mention that there is no prescribed requirement for how emission reductions are calculated. We try to provide as many resources as we can for folks to easily estimate emission reduction. And the toolkit, that is a downloadable spreadsheet that has pretty straightforward inputs. We hope that that’s accessible to everyone. There is a lot of different tools available. We try to provide those, and EPA has a number as well. But there is no prescribed method for how you have to do it. If you have a reasonable and the best tool, then private sponsors are welcome to do that to estimate their emission reductions.
Jennifer Symoun
Thank you. I think I've gone through all the questions in the chat pod. If any of the presenters noticed something I've missed let me know. Let’s see if anyone has any questions they want to ask over the phone. if you want to ask a question over the phone you just need to press *5. We will give it a minute to see if anyone has any questions. Also feel free to continue to type questions in the chat box. We still have 15 minutes remaining. Again, that is *five if you want to ask a question over the phone.
I don't see any phone questions, and I'm not seen any additional questions. Will give it another minute. While we are waiting, do any of the presenters have any additional remarks?
I am going to go ahead and read some final remarks. If you think of any additional question feel free to press *five or type it into the chat pod. We still have time remaining for questions. In the meantime, I want to thank all five of our presenters for their wonderful presentations. And thank you for everyone that attended. The recording will be available in the next few weeks. I will send out an email when that is available. Registration is not yet available for the July 18 the webinar. The tentative topic for that webinar is Large-Scale Incident Event Response and Business Continuity. I will send an email to the Freight Planning LISTSERV when registration is available. I encourage you to join the LISTSERV if you have not already done so as it is the primary means of sharing information about upcoming Talking Freight webinars. That link is on the screen. You can also download the evaluation form and send that back to me. If you like to obtain PDH credit, the link for the form is shown in the chat box. If anyone has problems accessing the form, send me an email and I can fill that out for you, or if you want AICP certification maintenance credits, please visit their website to log in those credits.
There are no additional questions and we will go ahead and end for the day. Thank you to the presenters, and for everyone attending. Enjoy the rest your day.
