1. Presentation to the HELLENIC MEDITERRANEAN PANEL HELLENIC MEDITERRANEAN PANEL (Athens, Greece - 23 October 2008)On US DISCHARGE STANDARDS -The NPDES Program- AJAY GOUR Chemical Manager, Operations and Technical. Assistant Regional Manager Indian Sub-Continent, Greece & Cyprus.

2. The CLEAN WATER ACT (CWA) First Passed in 1948 –“The Federal Water Pollution Control Act of 1948” Amendments –1972, 1977, 1978, 1990… Establishes Environmental Programs (incl. the NPDES Program) to protect US waters. Directs the Environmental Protection Agency (EPA) to issue rules on how to implement this law.

3. The NPDES Program Under the CWA: –Unlawful to discharge any pollutant from a “point source” into navigable waters, unless a “permit” was obtained. –The EPA’s National Pollutant Discharge Elimination System (NPDES) permit program controls all discharges into the “waters of the US”.

4. The NPDES Program So what is an NPDES Permit? –The CWA prohibits anybody from discharging “pollutants” through a “point source” into a “water of the US” unless they have an NPDES permit. –The permit contains: Limits on what you can discharge Monitoring and reporting requirements Other provisions to ensure that discharges do not hurt water quality or people’s health In essence, the permit: –Translates the general requirements of the CWA into specific provisions tailored to the operations of each person/facility discharging pollutants.

5. The CWA, The EPA & The NPDES Program Since 1972 discharges “incidental to the normal operation of a vessel” were exempted from the NPDES permit program under EPA Regulations. In 2003 environmental groups took the EPA to court for exempting ballast water discharges. 30 March 2005: US District Court for the Northern District of California ruled that: –The EPA exceeded its authority under the CWA in exempting vessel discharges incidental to normal operations.

6. The CWA, The EPA & The NPDES Program 18 Sept 2006: The District Court: –vacates EPA exemption effective September 30, 2008 US Government (EPA) and industry coalition appeal this decision 23 July 2008: The Appellate Court (Ninth Circuit) agrees with District Court and upholds the vacatur date of 30 Sept 2008. The EPA requests, and District Court grants a delay until 19 December 2008.

7. The EPA Response EPA PROPOSED VESSEL GENERAL PERMIT (VGP) National in scope Valid for 5 years Covers all commercial vessels Subject to STATE certification!!! No fee Proposed VGP can be seen at: www.epa.gov/npdes/pubs/vessel_commercial_permit.pdf www.epa.gov/npdes/pubs/vessel_commercial_permit.pdf

8. The EPA Response VGP COVERAGE of vessel discharges Automatic coverage within the first 6 months Within those first six months, owner must submit a Notice of Intent (NOI) for ships to be covered by the VGP EPA proposed NOI requires one for each ship INTERTANKO proposed to EPA one NOI for all ships under one owner

9. The EPA Response APPLICABILITY of the VGP system Applies to all commercial vessels 79 feet in length or greater Covers US inland waters and within 3 nautical mile territorial sea Applies to 28 identified discharges incidental to ship operations

10. NPDES PROGRAM KEY PROVISIONS OF NPDES PROGRAM Limits/controls Discharge through –Best Management Practices for 23 of the discharges. –Specific requirements for ballast water, grey-water, bilge water, antifouling and underwater husbandry Additional requirements for tankers for inert gas scrubber, deck seals, scuppers, inspections and crew training.

11. NPDES PROGRAM KEY PROVISIONS OF NPDES PROGRAM Designed to have Corrective Action and to be self-policing Inspections and monitoring Reporting Recording keeping

12. Non-Compliance FAILURE TO COMPLY CAN RESULT IN: CIVIL PENALTIES CRIMINAL PENALTIES CITIZEN LAWSUITS

13. The Shipowner’s Dilemma! The EPA exemption ceases on 19 December 2008, after which all ships must comply The EPA will not issue the final VGP until early December 2008. To make matters worse, anticipate additional state specific requirements, as allowed under CWA

14. INTERTANKO HAS provided extensive information in: –Weekly News Articles, and –Chairman’s letter to members RECOMMENDS that any of its members that intend to have any of their vessels call at US ports after 19 December 2008, begin development of a compliance program based upon the requirements in the EPA proposed VGP.

15. INTERTANKO RECOMMENDS that you keep in mind that changes to your compliance program may need to be made after the final VGP is issued by the EPA. WILL provide the final VGP to all members as soon as this is issued. Detailed information is available from the issue manager: Mr. Joseph Angelo. (joe.angelo@intertanko.com)

16. Thank You! WWW.INTERTANKO.COM