Presentation for: Green Pacific Conference 21 September 2010, Seattle, WA

1. Marine Vessel Environmental Performance and Rating System (MVeP) (Voluntary Best Management Practices) Presentation for: Green Pacific Conference21 September 2010, Seattle, WA 1 Presented by: Kevin Reynolds, The Glosten Associates

2. “How Green is Green?” - MVeP Holistic Approach to Marine Vessels Mission Statement: “Provide a common technical basis for assessing environmental performance, so that marine vessel designers, builders, and operators can understand relative environmental impacts of design decisions and operational practices.”

3. Objective and Approach - MVeP • Objective: Minimize Marine Vessel Environmental Impact • Approach: • Leverage Existing Best Practices • Team Industry, Environmental Groups, and Regulatory Agencies for Practical Solutions • Provide Technical Basis for Evaluation, SNAME Technical & Research Publication • Recognize Industry Leaders and Exemplary Performance • Encourage VOLUNTARY Implementation Ahead of Regulation

4. Development & Implementation – MVeP Phase I Sponsors: Society of Naval Architects and Marine Engineers, and American Bureau of Shipping. Phase I Project Team: Glosten Associates with review from SNAME T&R, Herbert Engineering Corporation, and Slater & Zeien. Phase II Sponsors: Under Development. Phase II Administration Team: SNAME T&R, Alaris, Seaworthy Systems, Wartsila, University of New Orleans, and The Glosten Associates. Phase II Technical Partners: Quickly Filling – Goal Complete by December.

5. Technical Scope & Metrics1. Energy Efficiency EE1 Energy Optimization Measures 1.1 Lighting 1.2 HVAC 1.3 Pump and Piping Systems 1.4 Mechanical Equipment Operations & Maintenance 1.5 Hull and Propeller Operations & Maintenance 1.6 Route Optimization 1.7 Vessel Speed Optimization 1.8 Waste Heat and Energy Recovery 1.9 Hull Optimization 1.10 Other EE2 Innovations 3.1 Other Fuels 3.2 Renewable Energies 3.3 Other EE3Carbon Foot Print Reduction (IMO MEPC EEDI & EEOI) 5

6. Technical Scope & Metrics2. Air Emissions AE1NOx Reductions AE2SOx AE3Particulate Matter (PM) Reductions AE4Organic Compounds AE5 Other Greenhouse Gases (GHGs) AE6 Ozone Depleting Substances AE7 Port Air Emissions Reduction 6

7. Technical Scope & Metrics3. Water Emissions WE1Oily Water WE2 Aquatic Nuisance Species WE2.1 Ballast Water WE2.2 Hull Fouling WE3 Sanitary Systems WE4 Solid Waste WE5 Incidental Discharges WE6 Structural Protection of Oil 7

8. Technical Scope & Metrics4. General Measures GM1 Materials: Reduction / Reuse / Recycle GM2 Hotel Water Use: Reduction / Reuse / Recycle GM3 Ocean Health & Aquatic Life GM3.1 Underwater Noise   GM3.2 Wake Wash and Shore Protection GM3.1 Underwater Light GM4 Hazardous Materials Control GM5 Ship Recycling 8

9. Technical Scope & Metrics • Performance Assessment Guide • Scope and Applicability • Statement of the Problem • Performance Levels • Level Justifications • Regulatory Environment • Directions for Future R&D • Design Integration • Supporting Documents 9

10. Technical Development Category Air Emissions Energy Efficiency Water Emissions General Measures … … … … 1 1 1 1 2 2 2 2 Credit Performance Levels Prerequisite Good: Prescriptive Measures Best Practice: Quantitative Assessment Zero Impact 1 2 3 4

11. Technical Development Category Air Emissions Energy Efficiency Water Emissions General Measures … … … … 1 1 1 1 2 2 2 2 Credit WE 2.1 Ballast Water Performance Levels Prerequisite – Ballast Convention 1 2 Good – Develop, execute, and document a ballast water plan to meet near land limits set by the California Marine Invasive Species Act – Interim Standard 3 Best – p = V1T1+ V2T2+V3T3+ V4T4 p = Propagule pressure numerical equivalent V = Volume of Discharge (V1: w/o treatment or exchange V2: exchanged V3: treated to IMO levels V4: treated to California levels) T = (100, 84, 48, 12) Zero Impact – No discharge within 200 nm of any coastline 4

12. Bridging Technical Development to Implementation (Phase III)

13. Questions and Comments Invited - MVeP • To Participate… Contact: Tim Leach tsleach@glosten.com, Eleanor Nick Kirtley enkirtley@glosten.com, Kevin Reynolds kjreynolds@glosten.com, 206-624-7850.

14. Marine Vessel Environmental Performance and Rating System (MVeP) (Voluntary Best Management Practices) Presentation for: Green Pacific Conference21 September 2010, Seattle, WA 14 Presented by: Kevin Reynolds, The Glosten Associates

15. MVeP Additional Slides Current Initiatives

16. MVeP Additional Slides • Phase II Execution Schedule • Develop Program Management Team – July 2010 • Category Captains Assigned – August 2010 • EE- Mike Gaffney, Matt McKeon, Pete Ryan – Alaris • AE – Don Ricciuti, Matt Winkler – Seaworthy • WE – Brian Ackerman – Wartsila • GM – Chris McKesson – UNO • Credit Group A (At least 3 Performance Assessment Guides per category) • Authors Assigned – September 2010 • Guide Drafts Complete – November 2010 • Peer Reviews Complete – January 2011 • Guide Finals – March 2011 • Credit Group B (Remainder of Guides) • Authors Assigned – December 2010 • Guide Drafts Complete – February 2011 • Peer Reviews Complete – April 2011 • Guide Finals – June 2011 • T&R Bulletin – SNAME Annual Meeting 2011

17. MVeP Additional Slides Air Emissions Energy Efficiency Water Emissions General Measures … … … … 1 1 1 1 2 2 2 2 Good Better Best Implementation (Class Societies, Other) Category Credit 1 pt. Filter bilge water discharge to 5 ppm 2 pts. Reduce volume of discharge by 50% 3 pts. Reduce volume of discharge by 100% Oily Water Metric 1 pt 2 pts 3 pts • Quantitative or prescriptive • Verifiable Certification