The US Senate has passed a long-awaited Inflation Reduction Act which includes $3 billion over five years to establish a new grant program to install electrified equipment and reduce emission at ports in the United States.
The Act is expected to be ratified by President Biden once it is passed by US Congress.
The American Association of Port Authorities (AAPA) says the inclusion of electrification in the bill is an enormous win for the American port industry and U.S. supply chains. It provides a brand-new source of funding for ports seeking to purchase electrified or alternative-fueled cargo-handling equipment, shore power systems, microgrids for energy resiliency, electric grid infrastructure, and more.
A survey of AAPA’s members found that American ports have $50 billion worth of green infrastructure projects ready to build over the next decade, but there is a gap in funding. Nevertheless, this Federal grant program will signal to equipment manufacturers and private investors that this electrification technology at ports will be ubiquitous in the coming years, says the AAPA.
The Inflation Reduction Act contains other provisions ports can utilise, including a bevy of tax credits for clean energy solutions, such as offshore wind and hydrogen energy, and a $60 million allocation to the Diesel Emissions Reduction Act grant program, which is intended specifically for goods movement. Another $1 billion is provided for the replacement of ‘class 6 or 7’ heavy-duty vehicles with zero-emission alternatives.
The legislation also aligns with the launch of the AAPA Port Opportunities with Energy, Resilience, and Sustainability (POWERS) Program. This program advocates for federal policies to support American energy prowess, pragmatic decarbonisation, technology for renewables, and environmental sustainability. The AAPA believes ports can reduce emissions and increase energy security by utilising LNG, propane, hydrogen, methanol, and ammonia in both land-side vehicles and marine vessels. Additionally, they can enhance electric infrastructure at ports, including the installation of microgrid technology, local power generation, at-berth shore power, and electric vehicles.
