Presentation to the Presentation to the

HELLENIC MEDITERRANEAN PANELHELLENIC MEDITERRANEAN PANEL(Athens, Greece - 23 October 2008)

OnOn

US DISCHARGE STANDARDSUS DISCHARGE STANDARDS

-The NPDES Program--The NPDES Program-AJAY GOURAJAY GOUR

Chemical Manager, Operations and Technical.

Assistant Regional Manager Indian Sub-Continent, Greece & Cyprus.

The CLEAN WATER ACT (CWA)

• First Passed in 1948 – “The Federal Water Pollution Control Act of 1948”

• Amendments– 1972, 1977, 1978, 1990…

• Establishes Environmental Programs (incl. the NPDES Program) to protect US waters.

• Directs the Environmental Protection Agency (EPA) to issue rules on how to implement this law.

The NPDES Program

• Under the CWA:– Unlawful to discharge any pollutant from a “point

source” into navigable waters, unless a “permit” was obtained.

– The EPA’s National Pollutant Discharge Elimination System (NPDES) permit program controls all discharges into the “waters of the US”.

The NPDES Program

• So what is an NPDES Permit?– The CWA prohibits anybody from discharging “pollutants” through

a “point source” into a “water of the US” unless they have an NPDES permit.

– The permit contains:• Limits on what you can discharge

• Monitoring and reporting requirements

• Other provisions to ensure that discharges do not hurt water quality or people’s health

• In essence, the permit:– Translates the general requirements of the CWA into specific

provisions tailored to the operations of each person/facility discharging pollutants.

The CWA, The EPA & The NPDES Program

• Since 1972 discharges “incidental to the normal operation of a vessel” were exempted from the NPDES permit program under EPA Regulations.

• In 2003 environmental groups took the EPA to court for exempting ballast water discharges.

• 30 March 2005: US District Court for the Northern District of California ruled that:– The EPA exceeded its authority under the CWA in exempting

vessel discharges incidental to normal operations.

The CWA, The EPA & The NPDES Program

• 18 Sept 2006: The District Court:– vacates EPA exemption effective September 30, 2008

• US Government (EPA) and industry coalition appeal this decision

• 23 July 2008: The Appellate Court (Ninth Circuit) agrees with District Court and upholds the vacatur date of 30 Sept 2008.

• The EPA requests, and District Court grants a delay until 19 December 2008.

The EPA ResponseThe EPA Response

EPA PROPOSED VESSEL GENERAL PERMIT (VGP)

• National in scope

• Valid for 5 years

• Covers all commercial vessels

• Subject to STATE certification!!!

• No fee• Proposed VGP can be seen at:

www.epa.gov/npdes/pubs/vessel_commercial_permit.pdf

The EPA ResponseThe EPA Response

VGP COVERAGE of vessel discharges

• Automatic coverage within the first 6 months

• Within those first six months, owner must submit a Notice of Intent (NOI) for ships 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

The EPA ResponseThe EPA Response

APPLICABILITY of the VGP system

• 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 identified discharges incidental to ship operations

NPDES PROGRAMNPDES PROGRAM

KEY PROVISIONS OF NPDES PROGRAM

• Limits/controls Discharge through– Best Management Practices for 23 of the discharges.– Specific requirements for ballast water, grey-water, bilge

water, antifouling and underwater husbandry

• Additional requirements for tankers for inert gas scrubber, deck seals, scuppers, inspections and crew training.

NPDES PROGRAMNPDES PROGRAM

KEY PROVISIONS OF NPDES PROGRAM

• Designed to have Corrective Action and to be self-policing

• Inspections and monitoring

• Reporting

• Recording keeping

Non-ComplianceNon-Compliance

FAILURE TO COMPLY CAN RESULT IN:

CIVIL PENALTIES

CRIMINAL PENALTIES

CITIZEN LAWSUITS

The Shipowner’s Dilemma!

• The EPA exemption ceases on 19 December 2008, after which all ships must comply

• The EPA will not issue the final VGP until early December 2008.

• To make matters worse, anticipate additional state specific requirements, as allowed under CWA

INTERTANKOINTERTANKO• HAS provided extensive information in:

– Weekly News Articles, 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 19 December 2008, begin development of a compliance program based upon the requirements in the EPA proposed VGP.

INTERTANKOINTERTANKO

• RECOMMENDS that you keep in mind that changes to your compliance program may need to be made after the final VGP is issued by the EPA.

• WILL provide the final VGP to all members as soon as this is issued.

• Detailed information is available from the issue manager: Mr. Joseph Angelo. (joe.angelo@intertanko.com)

Thank You!Thank You!

WWW.INTERTANKO.COMWWW.INTERTANKO.COM