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U.S. Coast Guard INTERTANKO North American Panel Presentation. Mr. Jeff Lantz Director of Commercial Regulations and Standards April 27, 2010. Outline. Coast Guard leadership changes Port State Control Update Piracy and Executive Order TWIC Seafarer Access Regulatory Development

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u s coast guard intertanko north american panel presentation

U.S. Coast Guard INTERTANKO North American Panel Presentation

Mr. Jeff Lantz

Director of Commercial Regulations and Standards

April 27, 2010

outline

Outline

Coast Guard leadership changes

Port State Control Update

Piracy and Executive Order

TWIC

Seafarer Access

Regulatory Development

Air Emissions

Ballast Water Management

Vessel General Permit

Climate Change

Salvage

coast guard leadership changes

Commandant

ADM Robert Papp

Vice - Commandant

VADM Sally Brice-Ohara

Deputy Cmdt Operations

RADM Brian Salerno

CG-5

RADM Paul Zukunft

CG-52

Mr. Jeff Lantz

Technical standards, IMO, Regulations

CG-53

RDML Cari Thomas

Pollution response, law enforcement, SAR

CG-53

RDML Kevin Cook

Vessel inspection, PSC, maritime security

Coast Guard Leadership Changes
port state control targeted flags 2010
Port State Control Targeted Flags - 2010

* Administrations not targeted in 2009

port state update chronically detained vessel policy

Port State Update Chronically Detained Vessel Policy

Would deny a vessel entry if the vessel has been subject to three detentions in a 12 month period, if the Coast Guard determines that those detentions are related to their Safety Management System (SMS) and adequate measures were not put in place to prevent reoccurrences.

The vessel would be temporarily denied entry; giving the vessel, company, and flag State time to perform a proper assessment of the vessel’s SMS and to ensure proactive measures are taken to improve the ineffective SMS and prevent continued non-compliance.

port security conditions of entry

Port Security – Conditions of Entry

  • The Coast Guard imposes Conditions of Entry on vessels arriving from ports with inadequate security requiring those vessels to take additional security precautions. See Port Security Advisory 3-10 dated 14 April 2010
  • This year, CG has imposed additional security measures for LNG vessels arriving from high risk countries.
  • Venezuela – frequent flyer policy
piracy

Piracy

USCG Piracy-Related Policy & Guidance

Maritime Security (MARSEC) Directive 104-6 (Rev 2)

Guidance/direction for U.S. flagged vessels operating in High Risk Waters

Provides enhanced security measures

Supported by supplementary guidance in Port Security Advisories (PSAs)

PSA (2-09) – Non-SSI version of directive; for public release.

PSA (3-09) – Guidance on Self-defensive and defense of others

PSA (4-09) – Guidance on International Traffic in Arms Regs (ITAR)

PSA (5-09) – Guidelines for contracted security services

PSA (6-09) – Establishes a screening process for security personnel

PSA (8-09) – Provides info regarding the carriage and transport of self-defensive weapons into foreign ports/states

PSA (9-09) – Guidance on expected course of action following a pirate attack

PSA (11-09) – Supplementary guidance on defensive measures

MARSEC Directive 104-6 (series) is being revised and will incorporate lessons-learned and best management practices that were successful in thwarting pirate attacks.

piracy1

Piracy

Executive Order concerning Somalia

Provides authority and tools to go after the “bad guys”, i.e. those persons and entities that are destabilizing Somalia

Applies to only the 11 persons and one entity listed in the Annex

Prohibits all transactions, including remittances and other payments (ransoms), by U.S. persons or others doing business in the U.S. to the persons and entity identified in the EO

Need a US nexus – foreign flag ship, foreign company

Prosecutorial discretion based on the facts of the case

No pre-decision on legality or ransom payment

Questions: Dept of Treasury (OFAC) 202-540-6322

transportation worker identification credential

Transportation Worker Identification Credential

Since the national compliance date of April 15, 2009, all personnel requiring unescorted access to secure areas of MTSA regulated facilities and vessels, and all mariners holding Coast Guard issued credentials, are required to have a TWIC.

Individuals applying for a B-1 visa who work in the maritime domain are to obtain an annotation allowing them to be eligible for a TWIC. TSA will be putting out information on the process soon.

Risk-Based Approach to TWIC Reader Regulations (ANPRM published March 2009)

Maximum consequence

Criticality to nation

TWIC utility

Three Risk Groups

Highest: Biometric check at each entry

Middle: Biometric check once/month

Lowest: Visual identification

NPRM will be informed by the Pilot Program, currently underway to test business processes, technology, & operational impacts of readers

seafarer access

Seafarer Access

Reports to the Coast Guard:

inconsistent interpretation of regulations

exorbitant fees for escorts

limited hours of escort availability

facility denial of access without TWIC

Coast Guard efforts include:

Strong push for seafarer access using the tools currently available to the COTP

Clarification on interpretation of regulation and policy and flexibility with the COTPs to approve monitoring and escort plans

ALCOAST 529/08 and 575/09

Reviewing Facility Security Plans to include seafarer access provisions

Port security grant money eligibility for projects associated with the facilitation of seafarer access

salvage and marine firefighting

Salvage and Marine Firefighting

Rulemaking TROIKA

Salvage and Marine Firefighting

Published December 31, 2008

Vessel and Facility Response Plans for Oil;2003 Removal Equipment Requirements &Alternative Technical Revisions

Published August 31, 2009

Amended S&MFF compliance to February 22, 2011

Non-tank Vessel Response Plans

NPRM published August 31, 2009

Working to resolve comments and publish final rule

Goal is to publish Final Rule ASAP; recognize the importance of having it published by February 22, 2011

ballast water management

Ballast Water Management

BWDS Notice of Proposed Rulemaking published August 28 2009

Received over 3000 comments, currently evaluating

Proposal - Phased Approach

IMO Standard initially

1000 times more stringent than IMO after 2016

Practicability Review will determine if 1000x standard can be met.

If Practicability Review determines 1000x cannot be met, then intermediary standards established.

Type Approval Process

ballast water management2

Ballast Water Management

Given anticipated timeframe for U.S. approval process, initial systems likely to be foreign approved

Develop a process for foreign acceptance

Dependent upon transparency of administration and testing facility process and dossier

May require additional testing or refinement prior to U.S. type approval.

State preemption still exists

Both laws authorizing Coast Guard and EPA permit states to establish their own BWDS

vessel general permit

Vessel General Permit

Prohibits discharge of any pollutant from any point source into navigable waters without a permit.

EPA instituted VGP in December 2008 w/ effective date of February 2009.

VGP identified 28 different discharge streams which must be controlled.

As of 19 September 2009, vessels must submit Notice of Intent to receive coverage.

CG & EPA working together to develop joint enforcement measures

USCG/EPA reached agreement on MOU for VGP compliance – 12 May

CG examines vessels for compliance during routine exams.

Discrepancies referred to EPA for action.

Initial enforcement generally limited to outreach and education, only egregious cases will warrant penalty action

air emissions

Amended MARPOL Annex VI entered into force on 1 Jan 2010

    • Tier II NOx standards for ships built after 2011
    • Tier III NOx standards for ships built after 2016 when operating in an ECA
    • Increase SOx standards: 4.5% prior to 2012, 3.5% after 2012, 0.5% after 2020
    • SOx ECA requirements: 1.5% prior to July 2012, 1.0% after July 2010, 0.1% after 2015

Air Emissions

  • North America Emission Control Area (ECA) adopted by IMO (MEPC 60, March 2010) – enters into force 1 August 2011 – extends 200 mi from coast of US and Canada
    • 1.0 % sulfur on 1 August 2012, 0.1% sulfur after 1 January 2015
    • Tier III NOx for ships after 1 January 2016
    • EPA regulations apply ECA standards to the internal waters of the US
    • Equivalency, i.e. exhaust after treatment permitted
climate change

US position regarding GHG emissions in the maritime sector

  • IMO is the appropriate regulatory body
  • Fully support development of and application of EEDI to both new and existing ships
  • Heartened by the progress on the EEDI made at MEPC 60
  • US proposal on Market Based Measure (MBM)
    • Based on CO2 efficiency, Applies efficiency standard to both new and existing ships
    • Neither a cap or bunker levy
    • Ships have options to demonstrate compliance – technical, operational or efficiency credit trading
    • Incentivizes development of efficient ships

Climate Change

us ghg proposal

Efficiency

Effective date

Time

US GHG Proposal

Efficiency Goal

New ship

(EEDI)

Existing ship

Baselines

us ghg proposal1

A

Ship

Efficiency

Effective date

Y1

Time

US GHG Proposal

Efficiency Goal

New ship

(EEDI)

B

Existing ship

Baselines

us ghg proposal2

A

Ship

C

Efficiency

B

Effective date

Y1

Y2

Time

US GHG Proposal

Efficiency Goal

New ship

(EEDI)

Existing ship

Baselines

us ghg proposal3

A

Ship

C

Efficiency

B

Effective date

Y1

Y2

Time

US GHG Proposal

Efficiency Goal

New ship

(EEDI)

Existing ship

Baselines

us ghg proposal4
US GHG Proposal

Advantages of US proposal

  • Efficiency improvements provide significant cost savings through reduced fuel costs
  • Incentivizes building and operating of efficient ships
  • All revenues from this scheme fund projects within the international maritime sector
  • Efficiency credit trading makes the most cost-effective efficiency gains available to all in the sector
  • Does not cap absolute emissions
  • Provides certainty to the industry