Tripartite Agreements and Bio Fuels

1. Tripartite AgreementsandBio Fuels Maurice Gordon, P.E. Maritime Systems Engineering, Inc.

2. Introduction • MARPOL Annex II and IBC Code Revisions • Effective 1 January 2007 • Re-classification for all chemicals • IBC Code Chapters 17 & 18 • MEPC.2 Circular • Insufficient time to reclassify all products Maritime Systems Engineering, Inc.

3. GESAMP • Global Experts on the Scientific Aspects of Marine Pollution • Technical committee sponsored by 8 UN agencies including IMO • Prepares Hazard Profile (GHP) for product Maritime Systems Engineering, Inc.

4. ESPH • Evaluation of Safety and Pollution Hazards Working Group • Part of IMO Subcommittee on Bulk Liquids and Gasses (BLG) • Pollution Category • Ship Type • Conditions of Carriage Maritime Systems Engineering, Inc.

5. Current Approval Status • 120 products not approved due to missing data • Mixtures and trade name products from MSC.2 Circular not approved Maritime Systems Engineering, Inc.

6. Parties to Tripartite • Source State – Shipping or producing country • Destination State – Country receiving the product • Flag State – Ship’s country of registry Maritime Systems Engineering, Inc.

7. Product Evaluation • Initiated by Source State • Required before initiating Tripartite Agreement Maritime Systems Engineering, Inc.

8. What is the Product? Is Vapor Pressure >.28MPa @37.8ºC? Liquefied Gas (Gas Carrier Code) Yes No Is Product An Oil? MARPOL ANNEX I MARPOL Annex II IBC Code Yes No Maritime Systems Engineering, Inc.

9. Existing Approvals • Review IBC Code • Chapter 17 – Substances governed by IBC Code • Chapter 18 – Substances not governed by IBC • Chapter 19 – Index of Products Carried In Bulk • Includes cross-reference of synonyms • Review MEPC.2 Circular • Recent Approvals • Products with Tripartite Agreements Maritime Systems Engineering, Inc.

10. MEPC.2 Circular Lists • List 1 – Pure products • Fully evaluated and approved for next IBC Code • Products with Tripartite Agreements • List 2 – Pollutant-only mixtures • Many listed by trade name • List 3 – Trade name products with safety hazards • List 4 – Pollutant-only mixtures with >1% unassessed components Maritime Systems Engineering, Inc.

11. Is There a Hazard Profile? Listed in IBC Code? Listed in MEPC.2 Circular? Initiate Provisional Assessment No No Yes Yes Does Entry Have Expiration? Apply IBC or MEPC.2 Amendment Review Assessment; Join Agreement No Yes Pure Product or Aqueous Solution Maritime Systems Engineering, Inc.

12. Provisional Assessment New GESAMP Profile? Derive Pollution Category and Ship Type Assign Carriage Requirements Initiate Tripartite Agreement Yes Yes No Sufficient For Provisional Hazard Profile? Evaluate Available Data Classify by Analogy No Pure Product or Aqueous Solution Maritime Systems Engineering, Inc.

13. Mixtures ≥99% Listed Products Safety Hazards? Product ≥99% IMO Listed Components Assign Carriage Requirements Yes No Calculate Pollution Category and Ship Type Assign (n.o.s.) Code Entry Initiate Tripartite Agreement Notify Destination State & Flag State Mixtures Maritime Systems Engineering, Inc.

14. Mixtures <99% Listed Products Assess Mixture As A Whole? Product <99% IMO Listed Components Use Process for Pure Products Yes No Calculate Pollution Category and Ship Type Assess Each Component Initiate Tripartite Agreement Assign Carriage Requirements Mixtures Maritime Systems Engineering, Inc.

15. Tripartite Process Response within 14 Days? Initiate Tripartite Agreement Yes Positive Response? Proposal Deemed Accepted No Yes No Provisional Assessment By Tripartite Agreement Assign Most Severe Conditions Maritime Systems Engineering, Inc.

16. Tripartite Follow-up • Flag State – Amend Vessel Certificates • Source State – Advise IMO within 30 days • IMO – Updates MEPC.2 Circular Maritime Systems Engineering, Inc.

17. Assessment Completion • Provisional Assessment valid for 3 years • Manufacturer submits data to GESAMP • GESAMP issues Hazard Profile • Manufacturer (via Source State) submits proposal for IBC Entry to IMO Maritime Systems Engineering, Inc.

18. What is Biodiesel? • Fatty Acid Methyl Ester (FAME) of Vegetable Oil or Animal Fat • Variations in feedstock source • Commodity Exchanges govern feedstock Maritime Systems Engineering, Inc.

19. IMO Assessment • Biodiesel assessed individually by source • Current Approvals • Palm Oil FAME (IBC Chapter 18) • Coconut Oil FAME (IBC Chapter 18) • Rapeseed (Canola) Oil FAME (MEPC.2/Circ. List 1) • None Approved under new IBC Code Maritime Systems Engineering, Inc.

20. US Coast Guard Action • Tripartite Agreement for Biodiesel: Soy, rapeseed or tallow methyl esters • Between U.S. ports in U.S. flag vessel • Assessment under old IBC by analogy • Valid through 31 December 2006 • Currently working on Tripartite for international carriage Maritime Systems Engineering, Inc.

21. Biodiesel Classification • Generic approach • Pollutant only product • Suggested listing Biodiesel, animal or vegetable Fatty acid methyl ester (n.o.s.) Maritime Systems Engineering, Inc.

22. Biodiesel Uses • Pure Biodiesel (B100) as fuel additive • Blended Biodiesel – 15%-20% in petroleum diesel fuel (B15 or B20) • B100 for use as unblended fuel Maritime Systems Engineering, Inc.

23. Biodiesel Volumes • B100 fuel additive: low volume increasing as market matures • B15 or B20 blend or B100 fuel: Volume comparable to current diesel oil requirements • Volumes likely to exceed chemical tanker capacity Maritime Systems Engineering, Inc.

24. U.K. & Sweden Guidance • Interim Guidance pending MEPC consideration • Applies to bio-fuels, bio-alcohol and various FAMEs Maritime Systems Engineering, Inc.

25. U.K. & Sweden Guidance • Bio-fuels in pure state – Annex II • Bio-fuels blended with petroleum up to 15% – Annex I • Construction materials compatible with cargo • Bio-fuel concentrations over 15% require Administration review Maritime Systems Engineering, Inc.

26. Annex I Treatment • Biodiesel can be used in any concentration • Demand likely to grow • Volume will become more consistent with product tanker capacity Maritime Systems Engineering, Inc.

27. Annex I Treatment • Limit to double hull tankers meeting Annex I Regulation 13F • Overboard discharge limited as oil • Decanted water only • ODMEs may require re-certification Maritime Systems Engineering, Inc.