Ocean-Going Vessel Low-Sulfur Fuel Program

The Port Authority of NY & NJ Ocean-Going Vessel Low-Sulfur Fuel Program (OGV) 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 utilize low-sulfur fuel in their main (propulsion) and auxiliary engines instead of the Intermediate Fuel Oil 380.

As an important component of the Clean Air Strategy for the Port of New York & New Jersey the OGV low-sulfur fuel program aims to provide incentives to vessels operators to switch from highly polluting bunker fuel. This heavy fuel generates the majority of sulfur oxide emissions and makes these vessels the single largest source of air pollution, accounting for roughly half of the port-relation pollution. Switching to low-sulfur fuels reduces emissions of fine particles, including black carbon, as well as carbon dioxide, nitrogen oxides and nitrous oxide. Perhaps the most significant benefit from participation in this program is the contribution to improving public health.

  • About the OGV
  • Eligibility
  • Enroll Now

About the OGV Low-Sulfur Program

Photo of a Container Ship

The Port Authority of New York & New Jersey has implemented an Ocean-Going Vessel Low-Sulfur Fuel Program. Through this program, the Port Authority has made available financial incentives on a first come, first serve basis.

The Program will reimburse vessel operators for 50% of the cost difference between using Low Sulfur Marine Fuel (=0.2% Marine Gas Oil (MGO) or =0.2% Marine Diesel Oil (MDO)) and Intermediate Fuel Oil 380 (IFO 380) in their main engines while operating within 20 nautical miles of the Port of NY & NJ. The Program will also reimburse vessel operators for 50% of the cost difference between using Low Sulfur Marine Fuel and IFO 380 in their auxiliary engines while at a Port Authority marine terminal facility berth. The cost differential for reimbursement will be based on the published fuel cost quarterly averages between the two fuels (Low Sulfur Marine Fuel and IFO 380) as listed on Bunkerworld.

To be eligible for reimbursement, vessels must be compliant with the program's vessel speed reduction requirement of an average weighted speed of 10 knots or less for arrivals and departures from the boundary of the seaward edge of the Participation Zone to the Verrazano Bridge. Reimbursements will be on a first come, first serve basis with annual funding caps of: $1,300,000 for 2010; $2,800,000 for 2011; and $1,700,000 for 2012.

Reimbursements

The reimbursements will have annual caps for 2010, 2011 and 2012.

Year Annual Cap Awarded Balance Remaining
2010 $400,000 $10,448 $389,552
2011 $800,000 $111,654.04 $688,345.96
2012 $3,200,000 $ $

Current Fuel Rates for Reimbursement

Price ($/tonnes) Q2 2011 Q3 2011
Intermediate Fuel Oil - IFO 380 663.33 657.33
Marine Gas Oil - MGO 1018.5 1014.33
Marine Diesel Oil - MDO - -
Reimbursement Rate ($/tonnes) Q3 2010 Q4 2010
Marine Gas Oil - MGO 355.17 357.0
Marine Diesel Oil – MDO - -

Eligibility

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

Enrollment requirements for vessels are:

  • Enrolled OGV must call at a qualifying PANYNJ Marine Terminal Facility.
  • Enrolled OGV must use Low Sulfur Marine Fuel in their main or propulsion engines within the Participation Zone.
  • Enrolled OGV must use Low Sulfur Marine Fuel in their auxiliary engines while berthed at a Qualifying PANYNJ Marine Terminal Facility.
    • If during a call, the OGV shifts to a non-qualifying PANYNJ Marine Terminal Facility, then use of Low Sulfur Marine Fuel in the auxiliary engine(s) at those facilities is not required and will not be reimbursed.
  • The arrival and/or departure must be compliant with the vessel speed reduction requirement of 10 knots from the boundary of the Participation Zone to the Verrazano Bridge for arrivals and the reverse for departures.
  • Enrolled OGV must maintain fuel use records and average auxiliary engine load while at berth, which will include the date, time and location of the use of Low Sulfur Marine Fuel in main and auxiliary engines.

How to Enroll

Participants must first enroll in the program prior to undertaking reimbursable activities by submitting the following information provided in the enrollment package to the PANYNJ.

Step 1 Signed Terms and Conditions
The terms and conditions document provides the details for participation in the program and program resources, including definitions, enrollment requirements, eligibility requirements, calculation of cost differential between heavy and low sulfur marine fuel and fuel reimbursement, vessel speed reduction requirements, recordkeeping, and the reimbursement process.

Step 2 Operating Company Enrollment Form
This form requires the legal company name, business mailing address, contact information, and business tax ID information.

Step 3 Vessel Enrollment Form, with information on each vessel to be enrolled
This form requires information on each vessel enrolled including vessel operator, owner, name, IMO number, auxiliary engine information and anticipated level of participation.

Step 4 Requested Tax ID Forms
These forms are required for reimbursement purposes. The W-9 is for US entities and the W-8BEN is for non-US entities

The Operating Company will be the entity to which the incentive payment will be sent, at the mailing address provided on the Operating Company Enrollment Form. Information on the Operating Company Enrollment Form must be consistent with the Tax ID Form.

Once the completed enrollment package has been submitted and reviewed, the operating company will be issued a vendor identification number. The operating company must obtain this vendor identification number prior to submitting invoices for payment. Vessel Operating Companies will be notified when they are enrolled in the program.

A Signed Terms and Conditions Form, the Operating Company Enrollment Form and the requested Tax Identification Forms must be submitted to the Port Authority at the following address:

The 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: lowsulfurincentive@panynj.gov

Contact Us

The 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: lowsulfurincentive@panynj.gov




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