With 81 feet of water depth, Pacific L. A. Marine Terminal LLC’s Pier 400, Berth 408 Project will be the only marine terminal on the West Coast capable of accommodating fully laden very large crude carriers (VLCCs). Initial throughput at the start of operations is expected to be approximately 350,000 barrels per day, but throughput is expected to increase in later years to meet regional demand. Project throughput will be regulated by emission caps in the Permit to Operate issued by the South Coast Air Quality Management District (SCAQMD). The amount of crude oil that can be offloaded at the berth while remaining in compliance with the SCAQMD emission caps will depend on the number and size of the vessels that call as well as the level to which vessel emissions can be reduced through cleaner fuels and shore power or equivalent technologies. The mitigation measures imposed on the project may affect facility utilization if properly equipped vessels are not available or not cost competitive. Also, throughput in future years will depend on a number of factors including: future regulatory requirements or port tariffs, crude oil availability and price, and regional demand for transportation fuels.

We have completed the feasibility study for the project and are now in the environmental review process. We are focused on addressing environmental issues as effectively as possible. We are leading the industry with an entirely new, 21st century approach to reducing environmental impacts through state-of-the-art design, construction and ongoing operations. The proposed project will incorporate a number of features to reduce air contaminants and protect the environment. They include:

• The facility will allow larger tankers to discharge their entire cargo at one time thus eliminating the need for multiple trips of smaller tankers for the same amount of crude. In addition, the pumping time, for the equivalent amount of crude, will be significantly shortened. By eliminating small tankers total emisssions in the basin will be reduced.
• The facility will operate under a permit issued by the South Coast Air Quality Management District (SCAQMD) that includes an emissions cap.
• The use of high capacity pumps and large-diameter pipeline will assure maximum offloading rates, thus reducing the time the tanker remains in port which results in less tanker emissions.
• Alternative Marine Power (AMP)(Cold Ironing) facilities, or equivalent technology will be constructed so that properly equipped tankers can use the technology and minimize emissions while at the berth.
• All emissions from the proposed project, including the tanker emissions represented by the facility emissions cap, will be offset by the purchase of Emission Reduction Credits (ERCs).
• Electric-powered shore-side pumps will be installed to move the crude oil through the pipeline, thereby minimizing the use of the tanker pumps and reducing fuel usage and emissions from the tankers.
• Sufficient new tankage to receive the entire cargo of a large tanker without delays due to lack of receiving capacity.
• Pacific L. A. Marine Terminal LLC will require customers using the new berth to use low-sulfur fuel, marine distillate fuel, for offloading operations and hotelling.