BWM Updates William Burroughs |February 23, 2017 Houston, TX

Agenda Ballast Water Management Systems – Available, In development and approved BWM Updates – IMO BWM Updates – U.S.

BWMS – Available or In Development by Technologies Most BWMS use filtration and another technology. Filtration, where used with another technology is not indicated Some BWMS use combinations of technologies – those are counted multiple times OTHER Deoxy O3 UV CHEM EC © Sunsinger / Shutterstock.com

BWMS - Approvals Market Entry G9 Basic Final 2005 G8 2008 2016 USCG AMS LOI Application Approved 133 56 41 5 66 58 43 3 + 4 3 Tracking ~ 133 BWMS that have some level of market entry with and without any approvals Some UV-based BWMS have G9 basic and final Few IMO type approved under Resolution MEPC.125(53) 2005 G8 Most IMO type approvals under Resolution MEPC.174(58) 2008 G8 All USCG AMS are IMO type approved – but not all IMO type approved are AMS Not all AMS have USCG LOI – not all LOI’s are IMO type approved USCG applications cited include 3 UV-based applications based on MPN, 3 applications resulting in approvals, and 1 application in review EC © Sunsinger / Shutterstock.com

IMO Ballast Water Regulations IMO BWM Convention enters into force September 8, 2017 Implementation date of D-2 discharge standard not yet established; 2 proposed schemes will be considered at MEPC 71 (July 2017) Scheme 1 – September 8, 2017 New construction on/after September 8, 2017: D-2 on delivery Existing ships constructed prior to September 8, 2017: D-2 at first IOPP renewal survey on/after September 8, 2017 Scheme 2 – September 8, 2019 New construction on/after September 8, 2019: D-2 on delivery Existing ships constructed prior to September 8, 2019: D-2 at first IOPP renewal survey on/after September 8, 2019 © Sunsinger / Shutterstock.com

IMO Ballast Water Regulations Revision of G8 Guidelines for the type approval of BWMS Adopted 2016 Guidelines for Approval of Ballast Water Management Systems (G8), Resolution MEPC.279(70) 2016 G8 should be applied as soon as possible but not later than October 28, 2018 Recommends BWMS installed* on ships On or after October 28, 2020 should be type approved under MEPC.279(70); and Prior to October 28, 2020 should be type approved under either resolution MEPC.174(58) or MEPC.279(70) * “installed” means the contractual date of delivery of the BWMS to the ship or, in the absence of such a date, the actual date of delivery of the BWMS to the ship

Port State Control Guidelines for BWM Adopted Guidelines for Port State Control under the BWM Convention, Resolution MEPC.252(67) First Stage – “Initial Inspection” Documentation–international BWM Certificate, approved BWMP, and Ballast Water Record Book BWM Officer properly trained, and knows how to operate the BWMS Maintain evidence that BWM system is type approved and has been maintained and operated in accordance with BWMP if the use of a BWMS is required Second Stage – “More Detailed Inspection” Check compliance of operations in accordance with the BWMP Operation of BWMS checked against records, crew knowledge, operating status and bypass records BWMS operated in according to BWMP and self-monitoring indicators Third Stage Indicative or detailed sampling would occur Fourth Stage Detailed analysis to verify compliance with D-2 Standard

US BWM Regulations Three USCG type approved BWMS (application date and approval date) Optimarin OBS (Sept. 20, 2016; Dec. 2, 2016) PureBallast 3 (Sept. 22, 2016; Dec. 23, 2016) OceanSaver Mk II (Sept. 23, 2016; Dec. 23, 2016) USCG received 4th type approval application BalClor BWMS manufactured by SunRui (Jan. 26, 2017) © Sunsinger / Shutterstock.com

USCG Extensions of Compliance Date Extension letters will remain valid until the extended compliance date specified in the extension letter Coast Guard will continue to accept requests for extensions Application for supplemental extensions must be submitted not later than 12 months prior to expiry of the extended compliance date; consider all available USCG type approved BWMS at that time No longer accept batch applications; each application must be vessel-specific Extension request must be accompanied with an explicit statement that compliance is not possible despite all efforts and supported by documentary evidence; extension granted will be for the minimum time required Extension requests for vessels with compliance dates on or after January 1, 2019 are held in abeyance. With available USCG type approved BWMS, additional information must be submitted to justify the need for extension

OEP Services Ballast Water Air Emission Ship Recycling BWMS Technology Evaluation Service Support applications for USCG Extensions Air Emission Techno-economics Modelling as decision support tool Voluntary EU MRV Verification Service Ship Recycling Qualification of HazMat expert companies as ABS IHM external specialist IHM tool for the development of IHM for existing ships *For more information on OEP services, please contact environmentalperformance@eagle.org

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