GALLAGHER MARINE SYSTEMS LLC.
U.S.A. TANKER REQUIREMENTS
INTERTANKO NORTH AMERICAN PANEL
OCTOBER 29th, 2014
PRESENTATION: GALLAGHER MARINE SYSTEMS, LLC. KULDEEP SINGH
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INDIVIDUAL STATE - REGULATORY REQUIREMENTS
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Written Testimony to a Senate Committee June 12, 2012
The United States is a maritime and Arctic nation. We have one of the world’s longest coastlines, measuring more than 95,000 miles, and the world’s largest Exclusive Economic Zone (EEZ), responsible for over $122 billion in revenue annually. The U.S. maritime transportation system is comprised of 361 ports and thousands of miles of maritime thoroughfares that support 95% of U.S. foreign trade. Most of that trade is transported on over 7,500 vessels that make more than 60,000 visits to U.S. ports annually. The need to secure our maritime rights and interests, including ocean resources, is paramount. Excerpt from: “The Law of the Sea Convention: Perspectives from the U.S. Military”
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AIR, LAND AND WATER – ALL COVERED
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THE U.S. CHALLENGE
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FEDERAL REQUIREMENTS SAMPLE PRIOR ARRIVAL CHECKS
• NVMC REPORT – ENOA• BWM REPORT TO NBIC• ENSURE VALID VRP & COFR• ENSURE VGP NOI SUBMITTED & INSPECTION/S• CONDUCT DRILLS INCLUDING NOTIFICATION• COMPLETE COMMERCIAL OBLIGATIONS – SCAC
NUMBER • CONDUCT OPERATIONAL & NAVIGATIONAL TESTS
33CFR164.25
• COMPLETE ADDITIONAL LIGHTERING REQUIREMENTS
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FEDERAL REQUIREMENTVESSEL GENERAL PERMIT
• NPDES - CWA• ADDRESSES 27 VESSEL EFFLUENTS • FIRST PERMIT 19TH DEC 2008 (5 YEARS VALIDITY)• INTENDED AIM – HARMFUL “DISCHARGE
ELIMINATION”
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FEDERAL REQUIREMENTVESSEL GENERAL PERMIT
• PROMOTES - BEST MANAGEMENT PRACTICES• REQUIRES - SAMPLING MAINLY FOR VESSELS BUILT
AFTER 19TH DECEMBER 2013
• INDIVIDUAL STATE REQUIREMENTS - 25 STATES
REQUIREMENTS INCORPORATED IN VGP • STATE REQUIREMENTS - MAINLY
HARMONIZED WITH VGP BUT SOME STATES HAVE
ADDITIONAL REQUIREMENTS
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CALIFORNIA STATE – SEWAGE REGS
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California State - NDZ
• Largest in the USA• Location: All coastal waters out to 3 nm from the
California coastline• Applicability: all passenger ships and oceangoing
vessels larger than 300 tons with sewage holding tank capacity.
• Other States also have NDZs
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FEDERAL REQUIREMENTBALLAST WATER MANAGEMENT
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CALIFORNIASTATE – BWM
California does not provide exemption for vessel deviation. Ships arriving Cal. ports must conduct BWM, regardless if it would result in deviation or delay of the voyage. – CSLC LETTER 14 AUG 2014 MID OCEAN EXCHANGE > 200 nm; > 2000m OR PCR EXCHANGE > 50 nm; > 200 m
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NORTH AMERICAN - ECA
Effective Date Sulfur Limit %m/m (ppm)On and after 01 JULY 2010 1.5% (15,000)On and after 01 JULY 2010 1.0% (10,000)On and after 01 JAN 2015 0.1% (1,000) (93% reduction
since July 2010)
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CALIFORNIASTATE ARB REQUIREMENTS
January 1, 2014Marine gas oil (DMA) at or below 0.1% sulfur; or marine diesel oil (DMB) at or below 0.1% sulfur
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SOME INDIVIDUAL STATE REQUIREMENTS
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Guam, American Samoa and Alaska
OSRO coverage meets USCG planning standards in the continental United States and Puerto Rico but not the areas highlighted in yellow above…
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VRP Approval letters with remote area endorsements
American Samoa
Guam
Western Alaska
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WHAT IS APC & WHY REQUIRED?
• Alternative Planning Criteria (APC) Operating Procedures developed to mitigate the risk of maritime incidents - Alaska Maritime Prevention & Response Network.
• Designed to mitigate risk in remote areas where spill response resources are sparse.
• These Procedures apply to oil tankers operating in Western Alaska waters outside of Cook Inlet - Coast Guard Captain of the Port Western Alaska zone up to the seaward boundaries of the U.S. EEZ
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APC – PROCEDURES OVERVIEW
• Procedures are mainly centered around Maritime Domain Awareness & Engagement with enrolled vessels equipped with AIS
• Vessels in the region tracked in real time - 24 x 7 via AIS
• Notification requirements & procedures if there is an incident of a threat of an incident.
• Safe routing measures
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OFFSHORE RISK MITIGATION ROUTES ALEUTIAN ISLANDS
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Network Operating Procedures changes for Tankers:
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Vessels not holding a Western Alaska endorsement?
• Vessels are tracked via AIS by the NETWORK. If a vessel transits Western Alaska but does not have an endorsement for this zone,the USCG is notified.
• USCG then take further action. Email sent to vessel, operator/owner & QI:– Current USCG Approval Letter
• showing NO endorsement forWestern Alaska
– A list of “non compliant vesselsthat are transiting the area buthave NOT entered into the APC.
– Reference 33 CFR 155 regarding GeographicSpecific Appendices (i.e. endorsements)
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REQUIRE APC ENROLLMENT FOR
GUAM & AMERICAN SAMOA
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How do you obtain the endorsements?
1. Vessel must enter into contract with an approved OSRO or entity in the location they are trading or transiting (to or from a U.S. port). These OSRO/entities are as follows:
2. Vessels must follow Alternate Planning Criteria (APC) in the respective area (Guam, American Samoa, Western Alaska).–Tankers: 33 CFR 155.1065 // Nontankers: 33 CFR 155.5067
Guam American Samoa Western Alaska
NaRCO or MSRC NaRCO or MSRC NaRCO or MSRC
AND AND AND
OSROCO Solar OR Green Ops “Network”
Alaska Chadux
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SPECIAL REQUIREMENTS
• If trading to these remote locations…• YES
– If transiting these locations, going to or from a U.S. port…• YES
– If on Innocent Passage…• For Guam and American Samoa
– NO
• For Western Alaska– NO*– *However, if the vessel has an existing Western Alaska
endorsement, they are required to follow the requirements associated with that endorsement (Alternate Planning Criteria) even when transiting Western Alaskan waters on Innocent Passage.
Costs for required APC compliance:• For Tankers you must:
– Enter into a contract & remit payment to the respective contractor(s):
Please request fee structure if you need it as the above fees are not all inclusive and are subject to change.
Location Contractors Fee: Follow APC Requirements?
American Samoa(Pago Pago)
Green OPS OR
SOLAR Environmental AND
MSRC OR NARCO
Up to $3,000 OR
$500 port callAND
Per contract
YES
Guam Oil Spill Response Operations Company (OSROCO)
Up to $10,950Per port call
+ annual admin fee of$1,050/year
YES
Western Alaska Alaska Maritime Prevention and Response Network(NETWORK)
ANDAlaska Chadux
$7,500AND
$850
YES
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Trading To WA… VERSUS
Transiting …going to/from U.S. port
LOCATION: CONTRACTORSWHILE TRADING
CONTRACTORS WHILE TRANSITING(to/from a US Port)
FEE:
American Samoa As noted in previous table
As noted in previous table
As noted in previous table
Guam As noted in previous table
As noted in previous table
As noted in previous table
Western Alaska As noted in previous table
ANDAlaska Chadux
coverage
As noted in previous table
As noted in previous tableAND
Up to $9,500 (NT)$0.08/bbl capacity
(Tanker)
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California State Requirements
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California Contingency Plans • California Plan Submissions &
issuance of approval letters.
– Plan must be submitted at least five “working” days before entering California waters.
– Please consider GMS production time as well.
• If you have vessels that may go to California, please let GMS know immediately.
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CaliforniaCertificate of Financial Responsibility
• Submit at least TEN DAYS BEFORE entering California waters.– Applications received with
less than ten days will receive a penalty.
• Preliminary Contingency Plan Approval AND a valid COFR are required before entering California waters.
– COFR application “in process” is acceptable
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Cost of Compliance Versus
Cost of Noncompliance• Cost of compliance
– CA COFR– CA Contingency Plan– QI/SMT/OSRO/SMFF
• Cost of non-compliance– In this recent example,
cost is $4,000 for first time offender.
– Penalties increase with each occurrence.
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California has a very active boarding program…
• Remember that California has an active boarding program. We are seeing an increase in non-conformities such as these:
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Incorrect bolts at the manifold…
• What is the standard?– California standard is open
to interpretation.• How many threads should
protrude from a flange bolt?• We learned that the industry
standard is 1.5 threads exposed.
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Washington StateChanges in Resource Providers…
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WASHINGTON STATE• OLD:
– Vessels trading to Washington State had to enter into a contract with the Washington State Maritime Cooperative (WSMC) the only Primary Response Contractor (PRC) for this area.
• WSMC had an agreement with National Response Corporation (NARCO)
• CHANGE:– WSMC & NARCO dissolved their agreement in 2013– NARCO & WSMC are now competing PRCs
• WSMC is teamed with MSRC • NARCO has all necessary assets to provide required
services/coverage.
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ERTV Tanker Fee
• Tanker fee based upon the following:– Size– Credits
• Double Hull• Redundant Engine/Steering• ISO 14001
• LPG is listed under tankers and is not considered a NT
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Alaska
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Alaska DEC – Boarding Program
• Alaska has an active boarding program.– Alaska Department of
Environmental Conservation
• Ensure vessels have:– Proper documentation
• Organized & presentable
– Knowledge of required notification procedures
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Hawaii
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Hawaii Dispersant Coverage• Vessels trading/transiting the waters of Sector Honolulu.
– need a contract with Hawaii-basedOSRO - Clean Island Council.
– GMS can arrange this contract OR you can do so via your agent.
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HawaiiVessel General Permit Filing
Hawaii requires their own version of a VGP filing
• The application must be completed on-line then the form printed, signed, and post mailed to the State. – http://health.hawaii.gov/cwb/
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Canada
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US Great Lakes not Canada
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Canadian Contracts
• Two OSRO providers when calling to Canada & divided geographically:– Eastern Canada Response Corporation (ECRC)
• 2 business days to arrange• $750 CAD per vessel plus $17.50 wire fee• Valid one year from date of enrollment
– Western Canada Marine Response Corporation (WCMRC)• 2 business days to arrange• $790 CAD per vessel plus $10 bank surcharge• Valid one year from date of enrollment
• Final contracts are provided once payment has been received.
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THE SOLUTION
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THE SOLUTION
• INFORMATION SHARING• SHIPBOARD U.S. SPECIFIC PROCEDURES • SHIPBOARD TRAINING• SHIPBOARD PRE-ARRIVAL CHECKLISTS• SHIPBOARD ACCESS TO INTERNET BASED INFO• DISCUSSIONS DURING SEA STAFF SEMINARS• RETENTION OF U.S. EXPERIENCED SEAFARERS• ACTIVE PARTICIPATION IN NPRM PROCESS
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SAMPLE CHECKLIST
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PRE-ARRIVAL CHECKS
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THANK YOU“An ounce of prevention is worth a pound of cure”. - Benjamin Franklin