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IMPLEMENTATION AND ENFORCEMENT OF THE

NORTH AMERICAN EMISSION CONTROL AREA

November 17, 2011Joseph FreedmanMarcia S. Ginley

Jeanmarie Nicholson

Limitations/Contact Information▪ This presentation is intended as background information only and

does not represent the official position of any of the agencies involved in implementation or enforcement of the Annex VI, the Clean Air Act or regulations, the North American ECA or any other pertinent law or policy.

▪ Questions can be forwarded to the presenters in written form by email so that the involved agencies can develop an appropriate answer to the questions:

--Jeanmarie Nicholson (USCG): jeanmarie.nicholson@uscg.mil

--Joseph Freedman (EPA/OGC): freedman.joseph@epa.gov

--Marcia Ginley (EPA/OECA): ginley.marcia@epa.gov

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Overview

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• Summary• MARPOL• Annex VI• North American ECA• Enforcement Overview• USCG Certification and On Board Oversight Program• Memorandum of Understanding Between USCG and EPA

Summary▪ PROBLEM: Marine engines emit significant amounts of

nitrogen oxides (NOx), particulate matter (PM), and sulfur oxides (SOx) which contribute to air pollution and public health problems.

▪ SOLUTION: The United States is addressing these issues through a coordinated strategy of implementing MARPOL Annex VI and Clean Air Act (CAA) provisions/regulations.

▪ LAWS/REGS: Annex VI and Clean Air Act provisions phase in more stringent engine emission limits and fuel content requirements for U.S. and foreign flagged vessels. The most stringent requirements are in Emission Control Areas (ECAs).

▪ ENFORCEMENT: USCG and EPA have entered into a MOU to jointly enforce MARPOL Annex VI. EPA enforces CAA provisions.

Significance of Ship Source Air Pollution

▪ Ships are significant contributors to the U.S. and Canadian mobile-source emission inventories.

▪ Air pollution from ships is expected to grow over the next two decades.

▪ Without regulation, by 2030, NOx emissions from ships is projected to more than double to 2.1 million tons a year, PM2.5 emissions are expected to almost triple to 170,000 tons.

▪ See U.S./Canada submission to IMO, Doc. 59/6/5 (2 April 2009)

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Air Quality:U.S. Ports and Nonattainment Areas

• More than 40 major ports are located in PM2.5 or ozone nonattainment areas• In the U.S., about 88 million people live in 39 areas that do not meet the PM2.5

NAAQS or that contribute to violations in other counties

Source of inventory estimates: C3 Marine NPRM (2009)

Ship Contribution to U.S. PM2.5 Inventory

2009 Mobile Source PM2.5 Inventory

Highway24%

OGV Marine17%

Locomotive6%

Aircraft4%

Other NR14%

Diesel NR28%

Diesel Marine <30 l/cyl7%

2030 Mobile Source PM2.5 Inventory

OGV Marine48%

Aircraft7%

Diesel NR5%

Other NR15%

Highway20%

Diesel Marine <30 l/cyl3%

Locomotive0%

Source of inventory estimates: C3 Marine NPRM (2009)

Ship Contribution to U.S. NOx Inventory

2009 Mobile Source NOx Inventory

Highway50%

Diesel NR15%

Other NR5%

OGV Marine10%Locomotive

10%

Aircraft1%

Diesel Marine <30 l/cyl

9%

2030 Mobile Source NOx InventoryC3 Marine

40%

Aircraft3%

Diesel NR8%

Other NR5%

Highway29%

Diesel Marine <30 l/cyl7%

Locomotive0%

Source of inventory estimates: C3 Marine NPRM (2009)

Ship Contribution to U.S. SOx Inventory

2009 Mobile Source SOx Inventory

Highway5%

Diesel NR4%

Other NR2%

C3 Marine80%

Locomotive2%

Aircraft1%

Diesel Marine <30 l/cyl

6%

2030 Mobile Source SOx Inventory

C3 Marine95%

Aircraft1%

Diesel NR0%

Other NR1%

Highway3%

Diesel Marine <30 l/cyl

0%

Locomotive0%

International Regulations MARPOL

▪ MARPOL: International Convention for the Prevention of Pollution from Ships (1973) as modified by the 1978 Protocol thereto

▪ MARPOL Annex VI, “Regulations for the Prevention of Air Pollution from Ships”– Appended to the “Protocol of 1997”– Entered into force, 19 May 2005– Amendments, including revised ECA

provisions, October 2008– Ratified by the United States, October 2008

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Summary of Annex VI

▪ Ozone-depleting substances

▪ NOx▪ SOx▪ Volatile Organic

Compounds▪ Shipboard

Incineration

▪ Reception facilities▪ Fuel oil quality▪ Platforms and drilling

rigs▪ Survey, certification

requirements (NOx technical code)

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2008 Amendments to Annex VI

▪ reduced emission limitations for NOx▪ reduced global limitation on sulfur in fuel▪ Revised criteria for establishment of Emission

Control Areas (ECAs), with more stringent limitations on NOx and sulfur in fuel

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Annex VI Original Fuel Sulfur Requirements

▪ “Global standard” 4.5%▪ SOx Emission Control Area standard 1.5%

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Sulfur standard, 2008 Annex VI Amendments*

▪ “Global standard”** (Regulation 14.1)– 4.5% < 2012– 3.5% (2012-19)– 0.5% 1 Jan. 2020

▪ Emission Control Area (ECA) standard (Reg. 14.4)– 1.5% <Jul. 2010– 1.0% to 1/7/2010– 0.1% 1 Jan. 2015

*All dates are subject to 12 month grace period. Reg. 14.7.

** The 2020 Global Standard is subject to feasibility review in

2018; may be delayed to 2025.

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Annex VI NOx Requirements (Regulation 13)

Tier Year of ship construction

Maximum in-use engine speed (where n= rated engine speed (crankshaft revs/second)

<130 RPM 130-2000 RPM Over 2000 RPM

Tier 0*(repowered engines)

1990-2000* 17.0 g/kwH 45.0 * n-0.2 g/kwH 9.8 g/kwH

Tier I 2001-10 17.0 g/kwH 45.0 * n-0.2 g/kwH 9.8 g/kwH

Tier II 2011 and later

14.4 g/kWh 44.0 * n-23g/kwH 7.7 g/kwH

Tier III** 2016 +in ECA

3.4 g/kWh 9.0 * n-20g/kwH 2.0 g/kwH

North American ECA -- History

▪ Proposal for North American ECA was introduced by the U.S. and Canada.

▪ July 2009: France joined as a co-proposer on behalf of it island territories of Saint-Pierre and Miquelon.

▪ On March 26, 2010, MARPOL Annex VI was amended to include designation of the North American ECA.

▪ The amendment entered into force on July 1, 2011.– ECA sulfur requirements effective July 1, 2012.

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North American ECA

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North American ECA -- Area

▪ The North American ECA includes extends 200 nautical miles from the coasts of the United States, Canada and the French territories, except that it does not extend into the territorial sea or EEZ of other States. – The ECA includes waters off the southeast

coast of Alaska, but not the west or north coasts

– The ECA also includes waters off the coast of the main Hawaiian islands

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North American ECA -- Benefits

▪ The ECA ensures that emissions from ships that operate in our waters and ports will be reduced significantly, with substantial benefits to large segments of our populations as well as to marine and terrestrial ecosystems.

▪ Compliance with ECA standards is expected to result in annual reductions in 2020 and after, of 320,000 tons of NOx, 90,000 tons of PM2.5, and 920,000 tons of SOx (23%, 74% and 86% respectively) of predicted levels absent the ECA.

▪ ECA benefits include preventing as many as 14,000 premature deaths and relieving respiratory symptoms for nearly 5 million annually.

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• Results do not include benefits of Canadian ECA designation on US Air Quality.

• These results are presented on the same scale as the preceding slide.• Significant A/Q benefits into the middle of the country

Potential Benefits of Coordinated StrategyAmbient PM2.5 Reductions in 2020

Potential Benefits of Coordinated StrategyOzone Reductions in 2020

• Results do not include benefits of Canadian ECA designation on US Air Quality.

Potential Benefits of Coordinated StrategyPercent Change in Sulfur Deposition

Benefits and Costs of EPA Coordinated Strategy (MARPOL + CAA)

▪ By 2030, the emission reductions associated with the coordinated strategy in the U.S.A. will annually prevent:– Between 13,000 and 32,000 PM-related premature deaths– Between 220 and 980 ozone-related premature deaths– About 1,500,000 work days lost– About 10,000,000 minor restricted-activity days

▪ The estimated monetized benefits for 2030 are between $110 and $280 billion

▪ The estimated costs for 2030 are much smaller: $3.1 billion

Puerto Rico/Virgin Islands ECA

▪ The Parties to Annex VI have adopted a U.S. proposal to designate Caribbean waters adjacent to Puerto Rico and the Virgin Islands as an ECA

▪ The ECA is based on prevailing winds, and extends roughly 50 nm.

▪ Under the MARPOL amendment rules, this ECA is expected to enter into force on January 1, 2013.– fuel sulfur requirements applicable 1/1/2014

▪ Steamships will be exempt from the ECA requirements in this and the N. American ECA until 2020.

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U.S. Domestic Implementation APPS: The Act to Prevent Pollution from Ships, 33 U.S.C. §§ 1901 et seq.,

(APPS) implements MARPOL in the United States, and was amended in 2008 to provide for implementation of Annex VI

▪ applies to U.S. ships wherever located, including U.S. navigable waters▪ applies to ships of any country operating in the U.S. navigable waters,

territorial sea or EEZ, when bound for or departing from U.S. ports▪ same requirement for Annex VI Party ships, except they don’t have to be

bound for or departing from U.S. ports.▪ prohibits violations of Annex VI▪ authorizes EPA and Coast Guard to issue “necessary and appropriate”

regulations.

EPA Regulations: Codified at 40 CFR Part 1043 for the Control of NOx, SOx, and PM Emissions from Marine Engines and Vessels Subject to MARPOL Annex VI. 75 Fed. Reg. 22895 (Apr. 30, 2010). These regulations were promulgated as part of EPA's coordinated strategy for Category 3 marine engines and their fuels. – CAA standards for C1 and C2 are more stringent than the IMO

standards and have a PM emission standard.

EPA 40 CFR Part 1043 Regulations

▪ Codify MARPOL Annex VI requirements▪ apply Annex VI requirements to U.S. internal waters,

or “ECA-associated areas”– exemption for Great Lakes steamships

(1043.95(a))– “hardship waiver” available for other Great Lakes

ships (1043.95(b))▪ apply Annex VI requirements to non-Party vessels▪ describe procedures, requirements for Engine

International Air Pollution Prevention Certificates

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ENFORCEMENT OVERVIEW

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MARPOL Engine Requirements Cover:

Main propulsion engines

Auxiliary engines

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MARPOL Fuels Provisions Cover:

-- On board use of fuels

-- Shoreside fueling facilities

North American ECA – Laws Being Enforced

Fuel Sulfur Limits:

-- MARPOL Annex VI, Regulation 14

-- 40 C.F.R. Part 1043 and Part 80, Subpart I

Provision of Complying Fuels:

-- MARPOL Annex VI, Regulation 18

-- 40 C.F.R. Part 1043 and Part 80, Subpart I

NOx Emissions Standards:

--MARPOL Annex VI, Regulation 13 and the Technical

Code on Control of Emission of Nitrogen Oxides from

Marine Diesel Engines (2008) (NOx Technical Code)

-- 40 C.F.R. Part 1042 (U.S. Flagged)

-- 40 C.F.R. Part 1043 ( all vessels operating in U.S. waters)

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North American ECA – Liable Parties

Liability includes:▪ Engine/ship manufacturer – engines meet standards and

have EIAPP and IAPP certificates▪ Ship owner/operator – engine is operated in compliance

with standards; fuel used meets standards; Technical File and Record Book of Engine Parameters are maintained; fuel samples are kept; and periodic surveys/inspections are performed

▪ Refiners, distributors and others in fuel chain of distribution – fuel meets standards, marker and label requirements are met, record keeping and reporting requirements are met

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North American ECA – Enforcement

▪ On Board Oversight

▪ Oversight of Shoreside Fueling Facilities

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North American ECA -- On Board Oversight, In General

On Board oversight includes:▪ Ship/engines have required certificates▪ Operation of ship complies with Annex VI/ECA

requirements▪ Proper fuel is used▪ Technical File, Record Book of Engine

Parameters and other records are properly maintained

▪ Vessel and engine otherwise comply with Annex VI requirements

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North American ECA – Oversight of Shoreside Fuel Supply

The ECA provisions are part of EPA’s overall

strategy to ensure compliance with standards and

requirements of fuels used in the United States.

Oversight of ECA fuels includes ensuring that:▪ Fuels meet sulfur requirements▪ Records are maintained/reports submitted▪ Marker and labeling requirements are met▪ Other requirements of Annex VI and the CAA are

met

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North American ECA – Self Disclosure

Noncompliance (actual or anticipated) with Annex

VI, CAA or other applicable requirements can be

reported by a liable party to EPA or USCG.

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North American ECA – Remedies for Violations

Remedies for violations include:▪ USCG specific remedies▪ Civil Penalties▪ Injunctive Relief▪ Criminal Liability (not discussing)

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North American ECA – Remedy Provisions

▪ Annex VI: Regulation 11▪ APPS: 33 U.S.C. §§ 1903, 1907(f) and 1908▪ CAA: Sections 211(d), 203, 204 and 205 of the

Clean Air Act, 42 U.S.C. §§ 7545(d), 7522, 7523, and 7524

▪ Regulations Under CAA:

-- Engine: 40 CFR Part 1068

-- Fuels: Section 211(d) is incorporated into

regulations

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USCG CERTIFICATION AND ONBOARD OVERSIGHT PROGRAM

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Enforcement

▪ Goal of enforcement activities = COMPLIANCE

▪ Spectrum of enforcement tools:▪ Education Criminal prosecution

▪ Safety considerations e.g. fuel switching: equipment, manning, training

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Certification Requirements for IAPP

▪ USCG sole authority to issue, modify, revoke an International Air Pollution Prevention (IAPP) certificate to any applicable ship. 33 U.S.C. § 1904(a) (2010).

▪ An IAPP certificate is required for inspected vessels greater than 400 gross tons engaged in international routes.

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Certification Requirements for IAPP (cont’d)

▪ Other vessels may require COI (Inspected vessels less than 400 tons traveling domestically) or an IAPP endorsement on their EIAPP certificate (Inspected vessels less than 400 tons traveling internationally)

▪ Vessels not subject to USCG inspection may still request an IAPP certificate.

▪ USCG or Authorized Class Society (ACS) must conduct an initial survey

▪ Initial certificate valid for no more than 5 years.

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Inspection

▪ Policy Letter, February 4, 2009, USCG Office CG-543 : Guidelines for Ensuring Compliance with Annex VI to the International Convention for the Prevention of Pollution from Ships (MARPOL) 73/78; Prevention of Air Pollution from Ships.

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Items Inspected for IAPP Certificate

▪ Items are inspected during an initial survey and must be satisfied before an IAPP certificate is issued

▪ EPA Engine Emissions - presence of permanent emission control information labels on engines.

▪ NOx– EIAPP certificate.

– Technical File– Record Book of Engine Parameters– NOx Verification

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Items Inspected for IAPP Certificate, cont’d

▪ SOx– Bunker Delivery Notes– Bunker Samples

▪ Ozone Depleting Substances (ODS)– New installations of ODS are prohibited after

May 19, 2005 (with the exception of HCFCs, which are permitted until January 1, 2020).

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Items Inspected for IAPP Certificate cont’d

▪ Shipboard Incineration– Incinerators installed after March 26, 1998, require

Coast Guard approval. – Review of garbage record book– Incinerator - good working order– Appropriate safety alarms and functional.– Incinerators installed after January 1, 2000, have

additional inspection requirements (verification of crew competency, current manual present, and proper operational temperature).

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Items Inspected for IAPP Certificate cont’d

– Volatile Organic Compounds• If a vessel is equipped with a vapor recovery

system, the system must be in compliance with 46 CFR Part 39.

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International Safety Management Code

– International Safety Management Code• Annex VI compliance elements should be included

in the vessel’s safety management system.• Further guidance will be promulgated via a Coast

Guard published Navigation and Vessel Inspection Circular (NVIC)

• Safety Management System items related to Annex VI may include NOx requirements, SOx requirements, fuel oil quality requirements, incinerations requirements, ODS requirements, and Sulfur Emission Control Area requirements.

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USCG Inspection Program

▪ USCG ship inspections, examinations, and investigations. 33 U.S.C. § 1907(f) (2010).

▪ Annex VI compliance exams, U.S. flag vessels:• Initial Survey• Renewal Survey• Annual Surveys• Intermediate Survey• Additional Surveys

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USCG Inspection Program, cont’d

▪ Foreign Flag Vessels– Foreign vessels over 400 gross tons must

hold a valid IAPP certificate issued by the flag administration (not required for foreign vessels under 400 gross tons)

– Port state control examination (Elements)– Exam may be expanded where clear grounds

exist (e.g., IAPP certificate missing or invalid). – Substandard vessels may be detained by

captain of the port.▪  

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MEMORANDUM OF UNDERSTANDING BETWEEN USCG AND EPA TO ENFORCE

ANNEX VI

▪ USCG and EPA entered into a Memorandum of Understanding to enforce the provisions of Annex VI.

▪ http://www.epa.gov/compliance/resources/agreements/caa/annexvi-mou062711.pdf

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Annex VI Memorandum of Understanding Between USCG and EPA (MOU) – Overview/Purpose

▪ Joint effort by EPA and USCG to enforce U.S. and international air pollution requirements for vessels operating in U.S. waters.

▪ Title: Memorandum of Understanding Between United States Coast Guard and United States Environmental Protection Agency Regarding Enforcement of Annex VI as Implemented by the Act to Prevent Pollution from Ships

▪ Date of Execution: June 27, 2011.

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MOU – Significant Provisions▪ USCG and EPA agree to mutually cooperate in implementing Annex

VI▪ USCG and EPA agree to jointly develop protocols for carrying out

enforcement activities on board ships, in ports and at facilities▪ Roles are based primarily on each agencies areas of expertise▪ USCG has primary authority to conduct ship inspections,

examinations and investigations. EPA may request to or USCG may request that EPA attend or assist in on board activities.

▪ EPA has primary authority to verify compliance with fuel oil availability and quality requirements (shoreside fuel requirements)

▪ Both USCG and EPA have authority to take enforcement actions. Actions may be referred from one agency to the other.

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