LATIN AMERICAN PANEL October 29, 2008

1. LATIN AMERICAN PANELOctober 29, 2008 NEW USSHIP DISCHARGE STANDARDS JOSEPH ANGELO DEPUTY MANAGING DIRECTOR

2. US DISCHARGE STDS US CLEAN WATER ACT (CWA) • Since 1973 EPA exempts by Regulation discharges incidental to the normal operation of a vessel • 2003 environmental groups take EPA to court for exempting ballast water discharges • 2006 Federal District Court - rules that EPA exceeded its authority for ALL vessel discharges - vacates EPA exemption effective September 30, 2008 • US Government and industry coalition appeal decision • Appellate Court agrees with District Court • EPA requests, and District Court grants, delay until December 19

3. US DISCHARGE STDS EPA PROPOSED VESSELGENERAL PERMIT (VGP) • National in scope • Valid for 5 years • Covers all commercial vessels • Subject to STATE certification!!! • No fee • Proposed VGP can be seen atwww.epa.gov/npdes/pubs/vessel_commercial_permit.pdf

4. US DISCHARGE STDS VGP COVERAGE • Automatic coverage within the first 6 months • Within those first six months, owner must submit a Notice of Intent (NOI) for ship to be covered by the VGP • EPA proposed NOI requires one for each ship • INTERTANKO proposed to EPA one NOI for all ships under one owner

5. US DISCHARGE STDS APPLICABILITY • Applies to all commercial vessels 79 feet in length or greater • Covers US inland waters and within 3 nautical mile territorial sea • Applies to 28 discharges incidental to ship operations

6. US DISCHARGE STDS CATEGORIES OF 28 DISCHARGES • Deck runoff • Bilgewater • Ballast water • Antifouling hull coating • Aqueous film forming foam • Boiler/economizer blowdown • Cathodic protection • Chain locker effluent • Controllable pitch propeller hydraulic fluid • Distillation and reverse osmosis brine • Elevator pit effluent • Firemain system • Freshwater layup • Gas turbine wash water

7. US DISCHARGE STDS CATEGORIES OF 28 DISCHARGES • Graywater • Motor gasoline and compensating discharge • Non-oily machinery wastewater • Refrigeration and air condensate discharge • Rudder bearing lubrication discharge • Seawater cooling overboard discharge • Seawater piping biofouling prevention • Small boat engine wet exhaust • Sonar dome discharge • Sterntube oily discharge • Underwater ship husbandry • Welldeck discharges • Graywater mixed with sewage • Exhaust gas scrubber washwater

8. US DISCHARGE STDS KEY PROVISIONS OF NPDES PROGRAM • Discharge limits - Best Management Practices for 23 of the discharges - Specific requirements for ballast water, graywater, bilge water, antifouling and underwater husbandry • Additional requirements for tankers for inert gas scrubber, deck seals, scuppers, inspections and crew training

9. US DISCHARGE STDS KEY PROVISIONS OF NPDES PROGRAM • Corrective Action, self-policing • Inspections and monitoring • Reporting • Recording keeping

10. US DISCHARGE STDS FAILURE TO COMPLY CAN RESULT IN: CIVIL PENALTIES CRIMINAL PENALTIES CITIZEN LAWSUITS

11. US DISCHARGE STDS SHIPOWNER DILEMMA!!! • EPA exemption ceases on December 19, after which all ships must comply • EPA will not issue final VGP until early December • To make matters worse, anticipate additional state specific requirements, as allowed under CWA

12. US DISCHARGE STDS INTERTANKO - • HAS provided extensive information in Weekly News and Chairman’s letter to members • RECOMMENDS that any of its members that intend to have any of their vessels call at US ports after December 19, begin development of a compliance program based upon the requirements found in the EPA proposed VGP keeping in mind that changes to your compliance program may need to be made after the final VGP is issued by the EPA. • WILL provide final VGP to all members as soon as it is issued

13. MUCHAS GRACIAS!! WWW.INTERTANKO.COM