SPEAKING WITH ONE VOICE ON THE ENVIRONMENT Industry Collaborative Efforts API Tanker Conference May 2012 Kathy Metcalf Chamber of Shipping of America

US national shipowner association US national shipowner association 35 member companies 35 member companies US and foreign flag vessels US and foreign flag vessels All vessel types All vessel types Engaged in domestic and international trade Engaged in domestic and international trade Founding member of the International Chamber of Shipping (ICS) Founding member of the International Chamber of Shipping (ICS)

US COMMISSION ON OCEAN POLICY “…THE DOMINANT PARDIGM FOR GOVERNING THE OCEANS WAS THE PRINCIPLE OF FREEDOM OF THE SEAS, BASED ON THE PREMISE THAT THE OCEANS WERE INFINITE AND MARINE RESOURCES INEXHAUSTIBLE…”

So Why the Aggressive Approach to Marine Environmental Issues? Shipping is global and so are environmental impacts Cultural shift from casualty focus to normal vessel operations As land based sources are subject to more stringent environmental regulations, shipping is a larger percentage of the remaining “problem” Shipping is still the most environmentally friendly form of transportation

Basic Assumptions Maintain level playing field for international shipping Maintain level playing field for international shipping General environmental statutes (Clean Water Act/Clean Air Act) are not a “one size fits all” especially as regards the maritime industry General environmental statutes (Clean Water Act/Clean Air Act) are not a “one size fits all” especially as regards the maritime industry Minimize impacts on existing ships with remaining useful life (grandfathering) Minimize impacts on existing ships with remaining useful life (grandfathering) Preemption of regional/state/local requirements is paramount Preemption of regional/state/local requirements is paramount

 First meeting in 1999 to address ballast water issues  Expanded to other issues in 2001  Meetings (in person/telcon) on as needed basis  Participation open to any maritime trade associations with focus on DC associations  Focus on industry positions re: US federal initiatives with some exceptions (IMO and state initiatives)

 American Waterways Operators (AWO)  Chamber of Shipping of America (CSA)  Cruise Lines International Association (CLIA)  International Association of Independent Tanker Owners (INTERTANKO)  World Shipping Council (WSC)

 American Maritime Congress (AMC)  American Maritime Officers (AMO)  American Petroleum Institute (API)  BIMCO  Canadian Shipowners Association  International Association of Masters, Mates and Pilots (MMP)

 International Chamber of Shipping (ICS)  Lake Carriers Association (LCA)  Passenger Vessel Association (PVA)  Shipping Federation of Canada  Transportation Institute (TI)

 In excess of 90% of vessels calling in US ports  Engaged in domestic and international trade  US and non-US flag  All vessel types (container, tanker, specialty, tug/barge, bulk, cruise)

 Identify key initiatives (legislation, regulation)  Individual associations conduct analysis of initiative  Coalition conducts comparative analysis (reality check and information sharing)  Outreach to association members for position development  Coalition meets to develop position on issues  Comments or testimony developed (feedback loop to association members)  Decision taken re: coalition comments versus individual association comments

 Legislation (Federal) ◦ Pre-introduction meetings with Congressional staff ◦ Influence development of legislation text prior to introduction ◦ Develop Hill strategy post-introduction (ongoing through enactment) ◦ Present testimony to committees/sub-committees with jurisdiction over subject matter ◦ Respond to additional questions posed by Members  Regulation (Federal and State) ◦ Develop and submit formal comments to dockets ◦ Respond to additional questions posed by agency promulgating regulations 12

Examples of Subject Matter Addressed by Coalition (1) Ballast Water Legislation Vessel Discharge Legislation Maritime Security Legislation IMO ratification packages (Senate) Vessel Discharge Regulations (EPA VGP) Ballast Water Regulations (USCG) Air Emissions Regulations (USCG and EPA)

Examples of Subject Matter Addressed by Coalition (2) California Ballast Water Regulations (standards and sampling/compliance monitoring) New York State Ballast Water and Graywater Regulations State 401 certifications to VGP California Biofouling Regulations California No Discharge Zone for Sewage Pending litigation and request/need for amicus filings

Case Study – BW Management (1) 1990 – US enactment of Nonindigenous Aquatic Nuisance Prevention and Control Act (NANPCA) 1991 – IMO Guidelines (MEPC Resolution 50(31)) 1993 – IMO Assembly Resolution A.774(18) urging continuous review of guidelines with view to developing legally binding requirements 1996 – National Invasive Species Act (NISA) 1997 – IMO Assembly Resolution A.868(20) regulatory implementation of the National Invasive Species Act of 1996 (voluntary program)

Case Study – BW Management (2) 2003 – CA Marine Invasive Species Act 2004 – final rule mandating use of BWE as management tool based on low compliance rates with voluntary program plus reporting and recordkeeping 2005 – legislative proposal (Inouye) 2008 – industry amicus in NW Environmental Advocates vs. EPA (9 th Circuit Court of Appeals) 2008 – CA Marine Invasive Species Act amended 2008 – EPA final VGP 1.0

Case Study – BW Management (3) 2008 to current – state 401 certifications (CA, NY, WI, PA) 2009 – legislative proposal (Oberstar) 2009 – CA Marine Invasive Species Act amended 2010 – CA Marine Invasive Species Act amended 2011 – finalized studies by NAS and EPA SAB 2011 – EPA proposed VGP /2012 – legislative proposal (LoBiondo); draft text in Senate

Case Study – BW Management (4) 2012 – USCG final rule on ballast water treatment 2012 – CA proposed rule on sampling and compliance monitoring Ongoing – technology availability studies (IMO, USCG and CA) Pending – entry into force of IMO BW Convention Pending – US ratification of IMO BW Convention Pending – US type approvals Pending – State 401 certifications to VGP 2.0

CONTACT INFORMATION Kathy Metcalf Director, Maritime Affairs Chamber of Shipping of America 1730 M Street, NW Suite 407 Washington, DC