1. 1 USCG UPDATE – Fall 2014 Intertanko North American Panel Houston, TX

2. Sector Houston – Galveston Prevention Dept Organization 140 Member Staff 2 PREVENTION DEPT DOMESTIC VSL DIV MR. STEINMETZ DEPUTY CHIEF LCDR ERIC CARRERO PORT STATE CONTROL DIV LCDR DOUG TRENT FACILITIES/WWM DIV LCDR GRIFFIN INVESTIGATIONS DIV MR. DAVIES DUTY TEAM 1 DUTY TEAM 2 DUTY TEAM 3 DUTY TEAM 4 MR. WILSON MR. WALLNER DUTY TEAM 1 DUTY TEAM 2 DUTY TEAM 3 TRAINING OFFICER TOWING VSLS MR. HENIGAR 8 INVESTIGATORS 15 FACILITY INSPECTORS CGC HATCHET CGC CLAMP ANT GALVESTON ANT SABINE

3. Sector Houston - Galveston 3 In total, Sector HG covers over 50% of Texas, 25% of Louisiana, 8 commercial ports and reaches up to Oklahoma and Arkansas.

4. 4 Station Houston MSU Lake Charles Station Lake Charles MSU Port Arthur Boathouse Port Arthur Station Sabine ANT Sabine USCGC HERON MSU Texas City Sector Field Office Galveston Station Galveston ANT Galveston USCGC CLAMP USCGC HATCHET USCGC MANOWAR USCGC SKIPJACK Station Freeport USCGC MANTA Sector Houston-Galv Air Station Houston Assets 06 Cutters 50 Small Boats 03 Helicopters 11 Shore Facilities 91 Shore Force Field Teams People 963 Active Duty 200 Reserve 18 Activated Reserve 90 Civilians 571 Aux

7. USCG Sector Houston-Galveston - Entire AOR- This included exams conducted in; MSU Lake Charles MSU Port Arthur MSU Texas City Sector Houston Since 2008 Nationally – Total COC-Exams conducted are up 21 exams or 1%. Since 2008 Sector Houston- Galveston “in total” is up 136 exams or 23.9% Same Time Period Sector Houston is up 106 exams or 39.1 % 7 2014 TOTAL COC Exams SECTOR HOUSTON Oil Tanker Sector Wide % of ALL USCG Exams USCG Total COC Exams 200829423.84%20081233 200933028.21%20091170 201032526.34%20101234 201130525.29%20111206 201231226.09%20121196 201331228.84%20131082 201429730.43%2014976 Chemical/Oil Sector wide% of USCG Exams USCG Chemical/Oil 200819628.20%2008695 200917824.72%2009720 201024628.44%2010865 201125028.87%2011866 201228032.67%2012857 201324927.42%2013908 201428129.93%2014939 Gas Carriers Sector wide% of USCG Exams USCG Gas Carriers 20087745.29%2008170 20099751.05%2009190 20108846.81%2010188 201110952.15%2011209 20127746.95%2012164 201310757.84%2013185 201412562.27%2014204

8. U.S.C.G. Tank Vessel Examinations FY 2014 2119 Total Tank Vessel COC exams Conducted Nationally in Fiscal Year 2014 976 – Oil Tankers – COC’s Issued 331 Deficiencies 939 – Chemical/Product Tankers (COC’s) Issued 399 Deficiencies -40% 204 – Liquefied Gas Carriers (COC’s) Issued 129 Deficiencies -11% Sector Houston Tank Vessel Inspections 2014 377 Total Tank Vessel COC exams Conducted by Sector Houston 91 – Oil Tankers – 16 Vessels (17.6%) issued 23 Deficiencies (06.9%) 178 – Chemical Tankers – 23 Vessels (12.9 %) issued 27 Deficiencies (06.8 %) 108 – Liquefied Gas Carriers - 18 Vessels (16.7%) issued 39 Deficiencies (30.0%)

9. Current and Near Future Commercial Expansion requiring Coast Guard Oversight Expansion in regional LNG Facilities Expansion or New Construction of 13 LHG Facilities Expansion of 4 Oil/Hazmat Facilities Increase in new construction of Oil/Gas/Chem Barges –Note: Replacements still require CG oversight Barge traffic expected to increase 25%/yr Increase in Deep Draft traffic by 17% in FY15 (82 total Galveston Bay transits/day)

10. ECA Compliance and Coast Guard Verification Per the MOU: Coast Guard verifies compliance with Annex VI- this includes ECA requirements ECA compliance/verification is done during CG exams If Non-Compliance is found, it is referred to EPA for enforcement Fuel Oil Non-Availability Reports (FONARs) & Notice of Protest (NoP) FONARs should be submitted electronically to the EPA –via EPA’s Central Data Exchange : www.homeport.uscg.milCG Policy, ECA Job Aid for inspectors & Frequently Asked Questions (FAQs) available at: www.homeport.uscg.mil www.homeport.uscg.mil –click on Port State Control/General Info/MARPOL VI

11. ECA Enforcement Under the Act to Prevent Pollution from Ships (APPS) EPA has – All authorities, including subpoena authority –For enforcing Reg 18, MARPOL Annex VI (Fuel Oil Availability) All Fuel Oil Non-Availability Reports (FONARs) received by EPA are considered “referred” from USCG for enforcement EPA uses its discretion to determine appropriate enforcement –Appropriate action could be “not taking any action” http://www.epa.gov/otaq/oceanvessels.htm http://www.epa.gov/otaq/oceanvessels.htmEPA policy, guidance & FONAR reporting available on EPA’s website : http://www.epa.gov/otaq/oceanvessels.htmhttp://www.epa.gov/otaq/oceanvessels.htm

12. RECENT HOUSTON MSIBs 14-14 Ebola Hemorragic Fever 12-14 Air Draft Bridge Allisions 08-14 Severe Weather Safety Planning-Hurricane Season 05-14 Endorsement of COCs for Chemical Tank ships of or around 20,000 Deadweight Tons 11-13 MARPOL Reception facilities Inadequacies-Charges 13-02 COTP Policy on requirements for PREWASH operations Navigation Rules and Regulations Handbook – Aug 2014 12

13. 13 Sector Houston Command Sector Commander Captain Brian K. Penoyer Deputy Sector Commander Captain Michael A. Baroody Chief of Prevention Commander Gary M. Messmer 281 464 4747 Chief of Inspections Captain Penoyer Commander (sel) Eric M. Carrero 281 464 4731 Chief of Port State Control Lieutenant Commander Douglas M. Trent 281 464 4748

14. 14 Intertanko Chemical Tanker Sub-Committee USCG Update Fall 2014 Questions? CDR Gary Messmer, USCG Chief, Prevention Operations CG Sector Houston-Galveston 13411 Hillard Street Houston, TX 770034 (281) 464-4747 Gary.M.Messmer@uscg.mil