Ferries – Federal Legislative and Regulatory Outlook

1. Ferries – Federal Legislative and Regulatory Outlook Edmund B. Welch Passenger Vessel Association

2. 111th Congress • Public Law 111-215 -- Exemption for Discharges • H.R. 3619 – Coast Guard Authorization Act of 2010 • Oil Pollution Act amendments • H.R. 5503 – Limitation of Liability • U.S. Ferry Systems Investment Act (S. 934 Murray/H.R. 2172 Larsen)

3. Public Law 111-215 • EPA Vessel General Permit • Discharges from a Properly Functioning Marine Engine or of Wastewater Incidental to Operation of a Vessel • In 2008, Congress Exempted (for two years) a Vessel of Under 79 Feet in Length (or a Fishing Vessel) • Enacted on July 30, 2010, New Law Continues this Statutory Exemption until December 18, 2013

4. Public Law 111-215 (more) • EPA Vessel General Permit Remains in Force for a Vessel of 79 Feet in Length or Greater • Also for a Vessel of any Length that Discharges Ballast Water • PVA has Guidance Document for Members Summarizing How to Comply with EPA Vessel General Permit

5. Coast Guard Authorization Act of 2010 • H.R. 3619 approved in different versions by House and Senat • Will 111th Congress Complete Work on this Legislation?

6. Safety Management System • Section 810 of House Bill • Will Require SMS on Certain Passenger Vessels • Threshold: “Transporting More Passengers than a Number Prescribed by the Secretary” of Homeland Security

7. Safety Management System (more) • In establishing SMS regulations, Secretary must consider “characteristics, methods of operations, and nature of the service” of covered passenger vessels • For ferry vessel, Secretary must also consider the size of the ferry system in which it operates • No SMS provision in Senate bill

8. Survival Craft • Section 808 of House bill; Not in Senate bill • Secretary may not approve a “survival craft” as a safety device unless craft ensures that “no part of an individual is immersed in water” • Bill doesn’t define term “survival craft” • Existing survival craft in serviceable condition can stay in use until 2015

9. Limitation of Liability • H.R. 5503 – Conyers – Securing Protections for the Injured from Limitations of Liability Act • Approved by House on Accelerated Schedule • Liberalizes Recoveries Available Under a. Limitation of Liability Act of 1920 b. Death on the High Seas Act c. Jones Act

10. Limitation of Liability Act (more) • Existing Limitation of Liability Act allows consolidation of cases, allows shipowner to seek court order limiting all damages to specified amount • Bill would repeal LOLA • Expand recoveries under DOHSA, Jones Act to permit nonpecuniary losses (loss of care, comfort, companionship) (both) and pain and suffering (DOHSA)

11. Americans with Disabilities Act • Ferry Vessels Are Engaged in “Transporting People” • That is, Embark Passengers at Point A and Carry Them to Part B for Disembarking • Covered by Final Rule Issued by U.S. Department of Transportation on July 6, 2010 • Effective Date: November 3, 2010

12. ADA (more) • DOT Rule Addresses Service Issues • Vessel Construction Requirements Are Being Addressed Separately by U.S. Access Board • Purpose of Rule – Prohibit Discrimination Against Passengers with Disabilities and Require Adjustments in Service and Policies to Accommodate Such Passengers

13. ADA (even more) • Department of Justice Rule Applies to Service by Passenger Vessel Operated by Entity Not Primarily Engaged in Transporting People (i.e., dinner cruise, sightseeing vessel) • U.S. Access Board will conduct visits of PVA member passenger vessels in Chicago at end of September

14. Diesel Engine Reduction Grants • Pursuant to EPA’s DERA program • Likely to be another round of competition for grants in 4th Quarter • Applicant Must Demonstrate that Replacement Engines or Other Technology will Reduce Emissions • Competition is Conducted per EPA Region

15. California Harborcraft Rule • By California Air Resources Board • Already in Effect • Requires Engines on Most Ferries to Achieve Lower Emissions Standards by Certain Dates • Existing Engines Must be Made Compliant or Replaced Per a Schedule

16. No Discharge Zones • Applies to Vessel Sewage Effluent (Even if it is Treated by Marine Sanitation Device) • Established By EPA acting on a request by a State • Most Common Basis for NDZ is Showing that Adequate Pumpout Facilities Exist (for both Recreational and Commercial Vessels)

17. No Discharge Zones (more) • California Petition Currently Pending; Comment by November 1 • Would Declare All of California State Waters as No Discharge Zone • Would Apply to Large Oceangoing Ships (300 tons and more) • Proposed under another portion of Clean Water Act – no showing of Pumpout Facilities necessary

18. Security – TWIC Readers • Federal law requires a test in real-world conditions before readers can be require • Three PVA members (two ferries) are testing readers • Coast Guard would like to propose TWIC reader rule next year • PVA opposes readers for ferries

19. Security – “MTSA II Rule” • Coast Guard working on proposal to amend, supplement existing regulations implementing Maritime Transportation Security Act • May be proposed next year • Likely to include certified training requirement for Vessel and Facility Security Officers

20. Thank You! Edmund B. Welch Legislative Director Passenger Vessel Association 901 North Pitt Street, Suite 100 Alexandria, VA 22314 703-518-5005 ext 27 ewelch@passengervessel.com www.passengervessel.com