Clean Vessel Incentive Program

The Port Authority of New York & New Jersey Clean Vessel Incentive (CVI) Program is a special first come, first serve program that will provide financial incentives to encourage operators of ocean-going vessels calling at certain Port Authority marine terminals to make voluntary engine, fuel and technology enhancements that reduce emissions beyond the regulatory environmental standards set by the International Maritime Organization (IMO).

As an important component of the Clean Air Strategy for the Port of New York and New Jersey, the Clean Vessel Incentive Program aims to provide incentives to vessel operators that perform better in reducing air emissions than required by the current international emissions standards.

The International Association of Ports and Harbors has developed the World Ports Climate Initiative (WPCI) to address issues related to vessels and climate change and air quality. One of the projects within WPCI is the development of an Environmental Ship Index (ESI). The ESI evaluates the amount of nitrogen oxide (NOx) and sulphur oxide (SOx) that is released by a ship and other factors to provide an ESI Score. The ESI Score is a good indication of the environmental performance of ocean going vessels and assists in identifying cleaner ships in a general way. The ESI Score is the basis for the PANYNJ CVI Program. The CVI Program adds additional scores for vessel speed reduction on approach and departure, and for engines that meet cleaner international standards.

The Clean Vessel Incentive Program operational dates are January 1, 2013 through December 31, 2015."

The shipping lines listed below are currently participating in the Clean Vessel Incentive program. The amount that appears next to each line denotes the CVI incentives each was paid for Q1 2013.

Participating Shipping Lines
APL, Ltd.
Great American Lines
Hamburg SUD
Hapag-Lloyd
Hyundai
K-Line America
Maersk
MOL (America)
MSC
NYK Line (North America)
Yang Ming
Zim
Total CVI incentives Paid
$310,000
 
  • About the CVI
  • Eligibility
  • Enroll Now

About the Clean Vessel Incentive Program

Photo of a Container Ship

The Port Authority of New York & New Jersey has implemented a Clean Vessel Incentive Program. Through the Program the PANYNJ has made available financial incentives to encourage operators of ocean-going vessels (OGVs) calling at PANYNJ marine terminals (the Port) to utilize environmentally friendly clean ship practices.

Under the Clean Vessel Incentive Program, the Port Authority would provide a financial incentive to ocean going vessels that achieve high scores on World Port Climate Initiative Environmental Ship Index (ESI). ESI is based on the sum of four (4) elements. Points are awarded on: 1) reducing nitrogen oxide emissions; 2) use of low-sulfur content fuels; 3) the existence of a vessel energy management plan; and 4) the presence of an approved onshore power system (ops) installed on board. In addition to the globally published ESI score, if the vessel also participates in Vessel Speed Reduction (VSR), the Port Authority will add additional VSR Points in a combined CVI Score. The incentive would be given to each vessel call for an enrolled vessel that has a CVI Score of 20 points or greater. Additional incentive will be provided (on a per call basis) to vessels that have all engines meeting either Tier II or Tier III standards.

Reimbursements will be on a first come first serve basis with annual funding caps of 1.6 million per year.

Eligibility

Companies must enroll themselves and participating vessels in the program before undertaking reimbursable activities.

Eligibility requirements are:

  • The vessel operating company must be an Enrolled Operator.
  • The ocean-going vessel for which incentive is sought must be an Enrolled Vessel.
  • The Enrolled Vessel must be registered in the WPCI ESI Program, data required for obtaining an ESI Score must be submitted to the ESI website, and a valid ESI Score must be maintained for the duration of participation in the Program to receive incentive for qualifying activities.
  • The activity for which incentive is sought must include a Qualifying Vessel Call, defined as an arrival into the Participation Zone to a qualifying PANYNJ Marine Terminal Facility and the associated departure out of the Participation Zone by an Enrolled Vessel.
  • The Qualifying Vessel Call must have taken place after enrollment of the vessel (with the exception of the first quarter of 2013, in which vessels must be enrolled in the program and have a valid ESI Score by April 1, 2013) and within the Program’s operational dates of January 1, 2013 to December 31, 2015.
  • Qualifying PANYNJ Marine Terminal Facility,” means one of the following facilities:
    • Howland Hook Marine Terminal
    • Port Newark/Elizabeth Port Authority Marine Terminal
    • Port Jersey Marine Terminal
      • Global Marine Terminal
      • Royal Caribbean Cruise Terminal
    • Brooklyn-Port Authority Terminal
      • Brooklyn Cruise Terminal
      • Red Hook Container Terminal

How to Enroll

The Program is open to all vessel-operating companies whose ocean-going vessels call at Qualifying PANYNJ Marine Terminal Facilities.  Each vessel operating company must enroll itself and each of the ships that it anticipates will participate in the Program, prior to undertaking reimbursable activities. To enroll in the Program, the vessel operating company must do the following:

Submit the following documents or information provided in the CVI Enrollment Package to the PANYNJ at the address below:

    • Register enrolled vessels in the WPCI Environmental Ship Index (ESI) program and provide and maintain sufficient data to the ESI database to maintain a valid ESI score for the duration of participation in the Program.
    • Duration of the program is from January 1, 2013 to December 31, 2015.  Enrollments will be accepted at any time prior to the end of the program.
    • Once the completed enrollment package has been submitted, reviewed and approved by the PANYNJ, the PANYNJ will issue a vendor identification number to the Enrolled Operator.  The Enrolled Operator will be notified when it is enrolled in the program.  The Enrolled Operator will be the entity receiving applicable incentive payments.
    • All enrollment forms and documents must be sent to PANYNJ at the following address:

Port Authority of New York & New Jersey
Ocean-Going Vessel Low Sulfur Fuel Program
Port Commerce Department
225 Park Avenue South- 11th Floor
New York, New York 10003
Attn: Ms. Sharon Heller
Email: sheller@panynj.gov

 

Contact Us

The Port Authority of New York & New Jersey Clean Vessel Incentive (CVI) Program

Port Commerce Department
225 Park Avenue South- 11th Floor
New York, New York 10003
Attn: Ms. Sharon Heller
Email: sheller@panynj.gov




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