Biden-Harris Administration: $3 Billion for Green Ports, Job Protections and Local Content

By Marek Grzybowski

President Biden announced $147 million in grants at the Port of Baltimore, which will support the retention of 2,000 “well-paying and union jobs at the port,” the White House said. The U.S. government will allocate a total of $3 billion for port development. This will be money for a package of investments financed by the Inflation Reduction Act. The Biden-Harris administration announced a set of investments for green ports under the “Investing in America” program.

This is about improving access infrastructure and electrifying port infrastructure, as well as supporting “approximately 40,000 well-paying and union jobs, reducing pollution and combating the climate crisis.” President Biden announced the decision not far from the site of the bridge destroyed by the Dali container ship.

Źródło: dredgewire.com

$3 billion for 55 projects and “local content”
“Ports are the backbone of our nation’s supply chains and employ over 100,000 union workers in the United States,” the White House emphasizes in a statement.  The promised funds were generated as part of the Environmental Protection Agency Clean Ports grant and are awarded under the terms of the Inflation Reduction Act. The funds were awarded from the federal budget to 55 selected entities in 27 states and territories. It is emphasized that one of the significant beneficiaries is the Maryland Port Administration. The port authority will receive $147 million for modernization.

The funds will be used to improve the ecology of ports. This is justified by the fact that “port and cargo equipment responsible for moving goods, including trucks, locomotives, marine vessels and transshipment equipment, contribute to significant air pollution in and around ports,” notes the US Environmental Protection Agency (EPA).

Źródło: Descartes Datamyne Annual Port Report 2024

“This pollution is particularly harmful to the health of nearby communities and contributes to climate change. The funding announced today will improve air quality at ports across the country by installing clean, zero-emission freight and ferry technologies and related infrastructure, eliminating more than 3 million tons of carbon pollution, the equivalent of using 391,220 homes in one year,” experts calculated.

The White House emphasized that “this funding will protect and create good-paying and unionized jobs and better working conditions by modernizing port operations and infrastructure with cleaner equipment, while ensuring cleaner air for port workers and surrounding communities.”
The U.S. government is also thinking about “local content” as it invests in the nation’s ports. The Clean Ports program is expected to support about 40,000 jobs across the economy, including more than 6,500 manufacturing jobs. The port investments are also expected to increase demand for U.S.-made electric cargo-handling equipment by at least six-fold over the life of the program.
It is emphasized that the funds spent on the Clean Ports Program will contribute to improving air quality in ports across the country by installing clean, zero-emission freight and ferry technologies and related infrastructure. They will also provide appropriate conditions for servicing increasingly modern ships docking in American ports. Container terminals still play a significant role in the exchange of goods in the United States. This is despite restrictions introduced on the import of goods from China and restrictions on imports.

Dollars for equipment and jobs
– Funding announced today will support the purchase of battery-powered or hydrogen-powered equipment. Projects submitted for funding indicate that the funds will be used to purchase 1,500 pieces of cargo handling equipment, 1,000 trucks, 10 locomotives and 20 ships. A significant portion of the grants will be used to launch systems to power ships with electricity from the docks. There are also plans to build infrastructure to charge and refuel electric and hydrogen-powered vehicles. Solar power systems are planned for ports. The U.S. administration emphasizes that “the Clean Ports Program promotes President Justice40’s initiative and is consistent with the Biden-Harris administration’s goal for a zero-emission freight transportation sector.” For example, the Port of Baltimore, where President Biden announced funding, employs more than 20,000 workers. Each day, the port and businesses operating at the port generate $192 million in revenue. The port generates more than $70 billion annually for the state budget, which is 13% of Maryland’s gross domestic product.
The Maryland Port Administration’s Equipment Electrification and Terminal Decarbonization project was selected as one of the significant grant projects. More than $145 million will be used to purchase zero-emission cargo handling equipment and low-emission trucks. The funds will also be used to build infrastructure to facilitate the port’s transition to a zero-CO2 system. Nearly $2 million in grants will be used to build a port transition strategy to achieve greater emission reductions in the future. This is about ensuring not only clean air in the port but also in its surroundings.
It is emphasized that the Port of Baltimore “is a major economic engine for the region, providing thousands of jobs and contributing billions of dollars to the local economy. This new investment will create more than 2,000 jobs, including more than 350 in the port-related industry.”

Strong support for Baltimore
President Biden was in Baltimore just after the tragic collapse of the Francis Scott Key Bridge. We reported on it here As a result of damage to the supporting girder and the collapse of the spans, six construction workers lost their lives. Ship traffic to and from the Port of Baltimore was blocked. After the accident, Biden said that “his administration will move heaven and earth to reopen the Port of Baltimore as soon as possible to support Maryland’s workers and economy.”

It took 78 days to remove the ship and clear the passage to the port. It is emphasized that “the Department of Labor and the Small Business Administration quickly mobilized to support workers and small businesses affected by the closure of the port, including thousands of longshoremen and truck drivers” whose activity depends on the smooth operation of the port’s transshipment terminals. After the port was blocked, the Department of Transportation and the Supply Chain Disruption Team mobilized forces to control the inconvenience associated with the disruption of supply chains that depend on the smooth operation of the port. It is emphasized that the port and the logistics chains dependent on it are already operating smoothly.

Currently, more than 100,000 tons of cargo per day are moving through the terminals and transportation connections. The White House emphasizes that “the President also committed to the reconstruction of the bridge as soon as possible.” This is to be based on close cooperation with the Maryland Department of Transportation. In July, the Federal Highway Administration issued appropriate regulations, which allowed the bridge reconstruction project to launch fast-track procedures covering the necessary scope of permits. In August, the Maryland administration selected a contractor to design and build a new bridge. Immediately after the bridge collapse, President Biden called on Congress to fully fund a replacement bridge, and his administration reiterated that request in July.

The Biden-Harris administration has taken legal action to hold the owners of the cargo ship DALI accountable for the disaster. In late October, the Department of Justice reached a settlement with the owners of DALI for over $100 million. We wrote more about it here  This money will go toward covering the federal government’s costs incurred in response to the bridge collapse.

Maryland has continued to pursue a separate lawsuit seeking compensation for the damage to the local economy, community, and families affected by the collapse. The Biden-Harris Administration said it remains committed to working with Baltimore and the state of Maryland to ensure the long-term recovery of the port and city.

Some Project Examples:

The Port Authority of New York and New Jersey (PANYNJ) will receive more than $344 million to work with five partners to implement Catalyzing Change: Zero-Emissions NY-NJ Port Projects for a Greener Future. The project includes the deployment of electric cargo handling equipment and trucks with charging infrastructure, including through the ZE Equipment for Ports (ZEEP) Voucher Incentive Program and the Green Drayage Accelerator (GDA).

PANYNJ is committed to reducing the number of polluting vehicles at the port by scrapping a portion of the existing fleet. The project also includes the installation of power infrastructure from the ships’ docks.

The Detroit/Wayne County Port Authority will receive a grant of approximately $22 million. The project includes the acquisition and deployment of electric cargo handling equipment, vessels, and railcars. The Port Authority will also use the funds to purchase charging equipment and solar panel arrays. As part of this project, the applicant plans to develop a stakeholder engagement plan to facilitate community engagement and a workforce development guide.

The Georgia Ports Authority (GPA) will receive nearly $49 million in decarbonization funding to modernize the Port of Savannah and the Port of Brunswick. The grant will build shore-based ship power systems that will allow ships to “plug in” to the electrical grid and turn off their auxiliary diesel engines while in port. The project also includes scrapping and replacing diesel terminal tractors with new electric terminal tractors. An electric charging facility will also be built.

The Philadelphia Regional Port Authority will purchase more than $77.6 million in zero-emission port equipment to service terminals at the Port of Philadelphia (PhilaPort) in Pennsylvania. Similar to other ports, this will be zero-emission (ZE) terminal equipment. Part of the project includes building the charging infrastructure. The project also includes scrapping part of the existing diesel fleet to reduce air pollution in and around the port. In addition to implementing zero-emission technology, the Philadelphia Regional Port Authority plans to conduct community engagement and workforce development as part of the project.
The Port Department of the City of Oakland will receive more than $322 million in similar investments to other ports. The grant will be used to introduce electric or hydrogen-powered equipment. As with other ports, funding has been secured for community engagement activities, training employees on the new type of zero-emission equipment and expanding job access to businesses operating in and around the port.