1. US Coast Guard Implementation of MARPOL Annex IIbbbbb By Tom Felleisen

2. Disclaimer The views expressed are those of the author and do not necessarily represent the official view of the US Coast Guard

3. Changes to MARPOL Annex II Simplification Simplification

4. Changes to MARPOL Annex II Simplification Simplification Align with the Globally Harmonized System for Classification and Labeling of Chemicals An activity which resulted from UN Rio Conference (1992) – Agenda 21 Align with the Globally Harmonized System for Classification and Labeling of Chemicals An activity which resulted from UN Rio Conference (1992) – Agenda 21

5. Changes to MARPOL Annex II Simplification Simplification Align with the Globally Harmonized System for Classification and Labeling of Chemicals Align with the Globally Harmonized System for Classification and Labeling of Chemicals Lipophilic substances (Vegetable oils and Animal Fats) Lipophilic substances (Vegetable oils and Animal Fats)

6. Vegetable oils and Animal Fats Existing Annex II Not “en route” No underwater discharge Existing Annex II Not “en route” No underwater discharge

7. Vegetable oils and Animal Fats Existing Annex II Not “en route” No underwater discharge Existing Annex II Not “en route” No underwater discharge Implemented differently by US Implemented differently by US

8. Changes to MARPOL Annex II Simplification Simplification Align with the Globally Harmonized System for Classification and Labeling of Chemicals Align with the Globally Harmonized System for Classification and Labeling of Chemicals Parallel Processes – Unclear outcome

9. Changes to MARPOL Annex II Change from 4 pollution categories +unregulated to 3 pollution categories + unregulated Change from 4 pollution categories +unregulated to 3 pollution categories + unregulated Ship typing changes for chemical cargoes Based on hazards of residue discharges Based on hazards of tank breach Ship typing changes for chemical cargoes Based on hazards of residue discharges Based on hazards of tank breach

10. Ship Typing Based on entirely new pollution criteria developed from the Globally Harmonized System Based on entirely new pollution criteria developed from the Globally Harmonized System

11. Rulemaking Requirements of the Administrative Procedures Act Requirements of the Administrative Procedures Act

12. Rulemaking Requirements of the Administrative Procedures Act (APA) Requirements of the Administrative Procedures Act (APA) APA precludes private disclosure concerning rulemaking (Ex Parte Communication) APA precludes private disclosure concerning rulemaking (Ex Parte Communication)

13. Rulemaking Requirements of the Administrative Procedures Act (APA) Requirements of the Administrative Procedures Act (APA) APA precludes private disclosure concerning rulemaking (Ex Parte Communication) APA precludes private disclosure concerning rulemaking (Ex Parte Communication) Start of rulemaking in Spring ‘06 Start of rulemaking in Spring ‘06

14. Rulemaking Requirements of the Administrative Procedures Act (APA) Requirements of the Administrative Procedures Act (APA) APA precludes private disclosure concerning rulemaking (Ex Parte Communication) APA precludes private disclosure concerning rulemaking (Ex Parte Communication) Start of rulemaking in Spring ’06 Start of rulemaking in Spring ’06 After BLG 10 finalizes the list of chemicals After BLG 10 finalizes the list of chemicals

15. Rulemaking Process Advance Notice of Proposed Rulemaking (ANPRM) Requests comments from public Indicates the Agency’s intentions Advance Notice of Proposed Rulemaking (ANPRM) Requests comments from public Indicates the Agency’s intentions

16. Rulemaking Process Advance Notice of Proposed Rulemaking (ANPRM) Advance Notice of Proposed Rulemaking (ANPRM) Notice of Proposed Rulemaking (NPRM) Gives proposed regulatory language for rulemaking Requests comments on rulemaking Notice of Proposed Rulemaking (NPRM) Gives proposed regulatory language for rulemaking Requests comments on rulemaking

17. Rulemaking Process Notice of Proposed Rulemaking (NPRM) Notice of Proposed Rulemaking (NPRM) Advance Notice of Proposed Rulemaking (ANPRM) Advance Notice of Proposed Rulemaking (ANPRM) Final Rule What we – USCG and Public - need to live with Final Rule What we – USCG and Public - need to live with

18. Rulemaking Process Notice of Proposed Rulemaking (NPRM) Notice of Proposed Rulemaking (NPRM) Advance Notice of Proposed Rulemaking (ANPRM) Advance Notice of Proposed Rulemaking (ANPRM) Office of Management and Budget (White House) review Office of Management and Budget (White House) review Final Rule Final Rule

19. Rulemaking Process Total rulemaking time: many months to well over a couple of years

20. MAPOL Annex II Effective Date 01/01/2007

21. Interim Measure Navigation and Vessel Inspection Circular (NVIC)

22. Elective alternative to current MARPOL Annex II Elective alternative to current MARPOL Annex II

23. Navigation and Vessel Inspection Circular Elective alternative to current MARPOL Annex II Elective alternative to current MARPOL Annex II Permits compliance with 01/01/2007 requirements Permits compliance with 01/01/2007 requirements Allows trading to ports that will vigorously enforce the new requirements

24. Navigation and Vessel Inspection Circular Elective alternative to current MARPOL Annex II Elective alternative to current MARPOL Annex II Permits compliance with 01/01/2007 requirements Permits compliance with 01/01/2007 requirements Introduces Third-Party Surveyors Reduces burden on USCG assets Introduces Third-Party Surveyors Reduces burden on USCG assets

25. Some Current Problems Latex Largest employer in Liberia, which supported MARPOL Annex II revision Latex Largest employer in Liberia, which supported MARPOL Annex II revision

26. Some Current Problems Latex Largest employer in Liberia, which supported MARPOL Annex II revision Two “Latex tankers” thrown out of trade Latex Largest employer in Liberia, which supported MARPOL Annex II revision Two “Latex tankers” thrown out of trade Will not likely be tested for Health and Safety in time to be in the International Bulk Chemical Code

27. Some Current Problems Latex Latex Some vegetable oils Some vegetable oils

28. Some Current Problems Latex Latex Some vegetable oils No testing yet: Perilla Rice Bran Safflower etc. Some vegetable oils No testing yet: Perilla Rice Bran Safflower etc.

29. Some Current Problems Latex Latex Some vegetable oils Some vegetable oils Available tonnage of type 2 tanks on type 2 ships Interruption of trades in the absence of ships Appreciably higher freight rates for all chemicals Available tonnage of type 2 tanks on type 2 ships Interruption of trades in the absence of ships Appreciably higher freight rates for all chemicals