REMARKS OF GENERAL MANAGER GENE SEROKA
AT THE OCT 7, 2015, SCOPING MEETING FOR BERTHS 97-109
Background


We are here to speak to you today about an important issue facing the Port of Los
Angeles. As you are aware, the issue involves the China Shipping Container Terminal.



Let me start with a few critical points: First -- As we go forward with the CEQA
process, it is important to keep in mind that based on monitoring by the Port, emission
inventories at this terminal location are currently at or below all levels studied in the 2008
Environmental Impact Report.



Secondly, we are faced with an unfortunate issue of delayed implementation of
mitigation measures. This is a situation that was inherited by this current Port
management team. We are taking ownership. It must be addressed. The Board of
Harbor Commissioners, along with the Mayor, and I are committed to fixing the issue.
We are solution driven. And we are committed to ensuring that something like this
never happens again.



The Port of Los Angeles is the leading seaport in North America in terms of shipping
container volume and cargo value, generating more than 830,000 regional jobs and $35
billion in annual wages and tax revenues.



In the past, the trucks, ships and trains using the Port have been major sources of air
emissions, which have added to smog and other poor air quality effects in the area.
Looking to change this past pattern, the Port is committed to developing innovative
strategic and sustainable operations that benefit the economy as well as the quality of life
for the region and the nation it serves.



To do this, the Port has worked closely with the Port of Long Beach, agencies, citizens
groups, environmental organizations and other stakeholders, in a multi-year, multiproject process to upgrade its facilities, enhance environmental protections and invest in
cleaner technology. This included the 2006 Clean Air Action Plan (known as the
CAAP), a comprehensive strategy for reducing port-related air pollution emissions. The
Port has also invested hundreds of millions of dollars on clean air initiatives in the last
decade, including more than $100 million on the highly successful Clean Truck Program
and more than $180 million in Alternative Maritime Power shore-power infrastructure.
Already, as a result of these efforts, air quality at the Port has significantly improved and
continues to improve, year after year.



It is against this backdrop that we will be undertaking this scoping meeting with your
participation and input regarding ongoing planning efforts with respect to China
Shipping’s terminal.

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 China Shipping EIR


In 2008, the Port certified an Environmental Impact Report (or EIR) for China
Shipping’s terminal at Berths 97-109. China Shipping has been operating out of the Port
since 1999, and is one of the Port’s busiest and most critical customers. China Shipping
represents approximately 20% of the container volume for the Port of Los Angeles,
providing high-quality and high-paying jobs to the community.



The 2008 China Shipping EIR was an ambitious, ground-breaking effort by the Port of
Los Angeles. The EIR adopted 52 mitigation measures to reduce impacts in the areas of
such as air quality, noise and transportation. At the time of the 2008 EIR, many of these
measures had never been attempted anywhere in the world. The Port believed, at the
time, that these measures, although far-reaching, were realistic and could be
accomplished within a reasonable timeframe. And many of the mitigation measures have
been accomplished.



The Port implements its mitigation measures by including them in leases with its tenants.
The Port engaged in an extensive negotiation process with China Shipping to amend its
existing lease for the terminal to include these new mitigation measures but never
entered into an amended permit incorporating the mitigation measures. Over the course
of this lengthy negotiation process, it became apparent that there were technological,
economic and operational challenges that suggest that some of the adopted mitigation
measures are infeasible.



Based on this information, the Port is preparing a Supplemental EIR that identifies and
analyzes the potential environmental impacts of possible changes in the mitigation
measures, based on the feasibility of some of the mitigation measures, the availability of
alternative technologies, and other factors. As described in the Notice of Preparation,
these measures include the requirements for 100% of vessels to use Alternative Marine
Power; 100% compliance with 40-nm vessel speed reduction program; LPG-fueled yard
tractors; LNG-powered drayage trucks; and emissions standards for yard equipment.



While this is ongoing, the Port continues to monitor conditions at the terminal. Most of
the mitigation measures have been completed or will be completed within the time
period for implementation. Indeed, the Port has invested more than $80 million in
community mitigation measures at China Shipping’s terminal.



As I indicated before but worth mentioning again, the Port learned, through its own
analysis, that emissions for the past few years at China Shipping’s terminal have been
below what was predicted in the 2008 EIR. This is due to the reduced levels of China
Shipping’s operations compared to what was predicted in the new EIR, and the Port’s
efforts to reduce emissions port-wide. Since the ports adopted the CAAP in 2006, great
strides have been made in cutting harmful port-related emissions. Due to these
successes, emissions levels associated with marine goods movement activities are often
below levels predicted in past environmental documents.
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 

The Port is committed to ensuring that feasible mitigation measures are adopted and
implemented for China Shipping’s terminal. A top priority of the Port is achieving
balance between the Port’s critical role in ensuring California’s economic success and
competitiveness in the global economy and its commitment to minimizing
environmental impacts. Each project and terminal is a critical component in achieving
this balance and the efficient and sustainable operation of the regional goods movement
chain. Unworkable and infeasible mitigation does not further this objective and the Port
will work diligently to address these issues.

Next Steps


The Port is committed to being a strong environmental steward and we would like to do
this with your help, as members of the public and stakeholders, by providing input as we
go through the Supplemental EIR process.



The purpose of the SEIR is to inform the Board of Harbor Commissioners with the
critical information it needs to consider any proposed changes to the China Shipping
mitigation measures. The EIR is a planning document that describes the environmental
impacts of a project. It is a problem-solving document. The EIR discloses the impacts
(such as traffic, air quality or noise, among others) and determines which ones are
significant. The EIR also describes feasible mitigation measures to reduce impacts to an
acceptable level.



Tonight’s meeting is the first step in this process. The Port will take your comments and
input here tonight into account in preparing a Supplemental EIR that fully analyzes the
potential changes to the mitigation measures and the environmental impacts of such
changes. This is the proper process under CEQA for addressing the need to revisit
mitigation measures and will allow the Port to thoroughly and carefully analyze all issues
and adopt mitigation measures that can be successfully implemented. There will be other
opportunities to participate and comment on the merits of the proposed changes and the
supplemental EIR itself before the Board makes any decision on the mitigation
measures.



I will now turn it over to Chris Cannon, Director of Environmental Management, to
explain how the rest of this meeting will work and what will be covered.

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