October 23, 2013

Welcome & Introductions

Edward LeBlanc, USCG, Sector SENE Richard Packard, MassDEP Buzzards Bay Risk Assessment

Study Origins & Process USCG and MADEP agree to collaborate Jointly funded Scope of work developed jointly USCG managed contracting Hired contractor (SEDI/MITRE) Established timeline Study development and review Regular meetings and teleconferences (MADEP, USCG, contractor) MADEP reviewed and commented on draft Report completed January 2013

Study Objectives Evaluate the risk of an oil spill in Buzzards Bay as of January 2015 when all tank vessels will be double hulled Will the use of pilots and escort tugs reduce the risk of an oil spill in Buzzards Bay If yes, how much will the use of escorts and pilots reduce the risk Compare the cost of pilots and escort tugs with the cost of an oil spill

Study Methods Range of risk reduction options evaluated and relative risk reduction compared Uses “change” analysis to evaluate how using a pilot or escort tug effects the frequency and/or severity of an incident Uses “what if” scenarios to evaluate consequences with and w/o pilot and escort tug Scores assigned to scenarios are authors judgment

Risk of an oil spill in Buzzards Bay is greater than national average The estimated frequency of a major oil spill nationwide is 1 every 13 years. The estimated frequency of a major oil spill in Buzzards Bay is 1 every 9 years. Study Results

Ranking of actions that result in greatest reduction in risk of future oil spill 1. Require pilot (fed or state) on towing vessel for barges carrying > 5000 barrels oil or haz-mat 2. Change to use of double hull tank barge 3. Escort tug (full time or condition based) 4. Upgrade to active VMRS 5. Require Fi-Fi -1 firefighting capability 6. Require sentinel or response tug in lieu of escort tug

Cost of risk reduction measures vs. Cost of oil spill clean up Mitigation OptionROI based on B-120 SpillPayback in Years Escorts for all Fifi106%9 Escort All (non Fifi)153%14 Sentinel Tug57%21 Pilot312%28 Active VMRS Monitoring1653%148 Escorts during inclement weather (with Fifi) 623%43 Escorts during inclement weather (non Fifi) 901%62

Risk of an oil spill in Buzzards Bay is greater than the national average Requiring a pilot on the towing vessel for barges provides the greatest risk reduction benefit A full time escort tug and a condition based escort tug provide the same level of risk reduction The cost of risk reduction measures is less than the cost of a major oil spill Conclusions

MassDEP comments that the analysis does not support the conclusion that pilots provide greater risk reduction that full time escort tugs. MassDEP comments that the analysis does not support the conclusion that a conditional based escort tug program provides the same level of risk reduction as full time escorts. Issues

Peer Review of BBRA MOA between MassDEP & USCG provides for option to have risk assessment peer reviewed MassDEP contracts with National Academy of Science, Transportation Research Board TRB establishes an independent panel of experts Vetted by TRB for conflicts of interest Peer review committee established July 2013 Committee meets with project sponsors and report authors on August 5, 2013.

Committee Membership Dr. Paul Fischbeck – Carnegie Mellon University – Chair Dr. William L. Hurley, Jr. - The Glosten Associates, Inc. Dr. Thomas M. Leschine - University of Washington Mr. Milton Levenson - Independent Consultant Mr. R. Keith Michel - Webb Institute of Naval Architecture Prof. Ali Mosleh - University of Maryland, College Park Dr. Malcolm L. Spaulding - University of Rhode Island

BB Risk Study Authors Homeland Security Systems Engineering and Development Institute The MITRE Corporation MassDEP contract with authors to appear before committee and answer questions

Considerations for Peer Review Does the data, methodology and analysis support the conclusions? Areas of specific interest to MA: Inclusion of double hulls in analysis Distinction between full escorts and weather-based escorts Ranking of risk reduction measures Independent review of the BBRA’s conclusions

Results of Peer Review Peer review report due September 30, 2013 has been extended at request of NAS/TRB MassDEP and USCG will be briefed on results of Peer review on October 24, 2013 Report will be released on October 25, 2013 by NAS/TRB Report will be posted on NAS & MassDEP web pages

Buzzards Bay ANPRM

New Bedford Chronic Oil Spills

Program Implementation Activities

MOSPRA Trust Fund OIL SPILL PREVENTION FUND BALANCE 10/1/2013 YTD FY05FY06FY07FY08FY09FY10*FY11FY12FY13FY14 Totals from Inception Beginning Balance$0$1,410,369$2,838,038$4,127,537$4,819,905$5,267,536$4,325,975$3,703,964$6,893,305$9,743,387 Revenue Collected$1,492,186$1,817,058$1,789,321$1,632,832$1,639,681$1,820,054$3,775,809$3,842,442$3,644,620$571,213$22,025,215 Expenditures($81,817)($389,389)($499,822)($940,464)($1,192,050)($2,761,615)($4,397,820)($653,101)($794,537)($147,688)($11,858,303) Available Balance$1,410,369$2,838,038$4,127,537$4,819,905$5,267,536$4,325,975$3,703,964$6,893,305$9,743,387$10,166,912 *Fee increased to $.05/bbl on 4/1/2010

MOSPRA Trust Fund Oil Spill Act Project Expenditures * FY2005FY2006FY2007FY2008FY2009FY2010FY2011FY2012FY2013FY2014 (1st Q) Oil spill trailers $ 81, $ 355, $ 337, $ 416, $ 414, $ 921, $ 169, Trailer maintenance/restocking $ 18, $ 20, $ 21, $ 30, $ 50, $ 25, $ 4, Develop GRP’s (MHB) $ 17, $ 93, $ 69, $ 24, $ 67, $ 40, $ 45, $ 2, GRP testing and first responder training $ 10, $ 7, $ 34, $ 18, $ 53, $ 75, $ 12, Threat evaluation and response equipment inventory $ 16, $ 43, Marine pilots program $ 224, $ 786, $ 896, $ 33, State provided escort tug $ 60, $ 580, $2,997, $ 109, Program Support – OSAAC meetings, web page $ 22, $ 42, $ 14, $ 8, $ 13, $ 7, $ 20, $ Program salaries and support $ 34, $ 121, $ 341, $ 336, $ 331, $ 344, $ 351, $ 384, $ 84, Snare and off shore boom $ 51, $ 29, Web VTS and AIS data $ 5, Buzzards Bay Risk Assessment and Peer Review $ 67, $ 43, Total per Fiscal Year $ 81, $ 389, $ 499, $ 940, $1,192, $2,761, $4,397, $ 653, $ 794, $ 147, * as of 10/1/2013

New Business/Wrap up