Our proposed project will be the first, new crude oil offloading facility to be built in Southern California since 1980. Since 1978, seven crude oil off-loading facilities have been closed in the Port (see www.portofla.org). Currently only the ExxonMobil terminal at Berth 238 is in operation. There are three crude oil offloading facilities in the Port of Long Beach. The California Energy Commission (www.energy.ca.gov) has identified the lack of adequate storage and receiving capacity for crude oil in the Southern California area as a major concern. Our goal is to supply waterborne crude oil to local refineries so they can manufacture products necessary to meet the growing demand for gasoline and other refined petroleum products.

As current supplies of crude oil in Alaska and California decline, projections indicate an increase in waterborne imports. As more and more crude oil is imported over larger distances, economy of scale influences the size of tanker used to import crude oil. Therefore, larger tankers are used to import crude oil over longer distances. Economy of scale reduces emissions of air pollutants per barrel.

The proposed project will develop Berth 408 on Pier 400 to accept large tankers up to 325,000 DWT. Such tankers can carry up to 2,500,000 barrels of crude oil and the typical offloading time will range from 28 to 30 hours per tanker. The number of ship calls per month is expected to be up to 18, depending on the tanker size. Presently, the water depth for the proposed berth can accommodate large tankers with a draft of up to 74 feet; therefore, the proposed project will not require any dredging.

The facility will be designed to allow fast cargo offloading to reduce the time a tanker remain in port, thereby minimizing tanker emissions. The project will also construct storage facilities to accommodate up to 4,000,000 barrels of crude oil. The combination of new tanks and a large diameter pipeline will allow tanker pumps to operate at maximum efficiency. Once offloading is completed, the tanker will leave the berth. During offloading, crude oil will be transported to a new storage facility within the Port via a new, 42 inch underground pipeline. The project will require the construction of an additional underground pipeline to connect the new storage tank facilities to the Valero Refinery and the existing pipeline distribution system. New pipelines will be constructed underground, wherever possible.

All crude oil offloaded at the facility will be transported via pipeline. No crude oil will be transported by truck. The only vehicle traffic associated once the terminal is operational will be employee commuting, visitors and occasional deliveries of supplies.

The proposed project will include the construction of several new, aboveground storage tanks for the storage of crude oil, and partially refined crude oil with a total capacity of up to 4 million barrels. No refined petroleum products will be stored in the new tanks. The new tanks will be constructed on adjacent parcels on Terminal Island and on Pier 400. All new storage tanks will be equipped with Best Available Control Technology (BACT) to reduce emissions to the maximum extent possible and will comply with the rules and regulations of the South Coast Air Quality Management District (SCAQMD) - www.aqmd.gov. Storage tank areas will be surrounded by fencing to restrict access and will be landscaped.

The proposed project will incorporate a number of features to reduce emissions of air contaminants and protect the environment. These include:

• The facility will enable larger tankers to discharge their entire cargo at one time, thereby eliminating the need for multiple trips of smaller tankers that would normally be necessary to deliver the same amount of crude oil. In addition, the pumping time, for the equivalent amount of crude oil, will be significantly shortened.
• The facility will operate under a permit issued by the South Coast Air Quality Management District (SCAQMD) that will include an emissions cap. The emissions cap will limit emissions from the facility.
• The use of high capacity pumps and a large-diameter pipeline will assure maximum offloading rates and will reduce the time a tanker will remain in port, whereby reducing tanker emissions.
• Alternative Marine Power (AMP) (Cold Ironing) facilities, or equivalent technology will be constructed so that properly equipped tankers will be able to use shore-side electricity, thereby reducing ship hoteling 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 will be constructed to receive the entire cargo of a large tanker, thereby eliminating the need for the tanker to remain at the berth due to lack of receiving capacity.
• Pacific L.A. Marine Terminal LLC will require customers using the new berth to use low-sulfur, marine distillate fuel, for off loading operations and hoteling.