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February 8, 2012
Some thoughts on the current ballast water regulation situation…
With the end of the St. Lawrence Seaway Navigation Season, we look back on another relatively soft international flag tonnage performance for vessels transiting the Seaway into the U.S. Great Lakes. Ship calls at U. S. Great Lakes ports where our USGLSA members serve were as low or lower than in recent years. Clearly, domestic and world wide economic uncertainties have affected this performance, while other conditions such as weather, mechanical or general traffic delays in the Seaway System were favorable. It is the view here that, at least in part, ballast water management requirements being administered by individual States with distinctly varying costly and burdensome compliance standards may be a factor in the unfavorable results. In particular, coupled with still no universal standard from the Federal side on ballast water may be contributing to a materially growing shipper uncertainty and distaste for these conditions, resulting in decisions to employ alternate modes of transportation of their products to Lakes states.
In 2012, it is expected that these differing State ballast water management standards and compliance requirements, from equipment used to operating standards to paperwork demands will continue to burden the ship operators and their vessel agents in each in the Great Lakes in which they trade. It has now become generally well known that the most troublesome of these State activities are the restrictions proposed by the State of New York. There, commercial vessels transiting (not necessarily discharging) in New York waters will be required to treat and carry ballast water equal to the quality 100 times IMO standards and moving to 1000 times IMO; as some have said, purer than drinking water. Beginning implementation of these standards is targeted for 2013. Regrettably, it has been well established that for a variety of documented scientific, design, installation and other technical reasons, there are no existing feasible means of achieving these levels by 2013 or in the reasonably near future for that matter. Thus, as preposterous as it may seem, in real terms, international Seaway/Lakes trade could cease. Yet, New York presses on with this proposal perhaps in the belief that industry is simply dragging its feet and will be able to perform the “stretch” to achieve these standards when the time comes. Maybe some believe in the tooth fairy, but from here it appears to be an irresponsible, dangerous (possibly a negotiating) game of chicken which holds catastrophic prospects for international commerce in the Lakes, Seaway and by the way, the State of New York and its neighbor, New Jersey.
Of course, it is hoped that Federal government can serve to resolve these differing multiple State initiatives, which the States themselves will allow that they have no real desire to individually regulate ballast water if only the Federal Government would get its act together and produce a universal Federal standard. On this important Federal front, there is activity, but regrettably, proposed solutions are coming from two directions from separate Federal agencies which still will require the two agencies to harmonized differences before we can truly see a single, universal Federal ballast water standard. While U.S. Coast Guard is currently in the very last stages of obtaining Executive Branch approvals for its final rule on ballast water, EPA has published proposed rules for its Vessel General Permit (VGP) renewal effective in 2013, which in present form contain some conflicts with what is believed to be coming from the Coast Guard. Note the Coast Guard rules on the matter are “Final” while the EPA is in only at a “Proposed” rule stage. It was believed that if both initiatives were more similar, it would have represented a good basis for New York to reassess its position. Now, it could be months before we know how or if EPA and Coast Guard standards may be harmonized.
USGLSA is active with a number of other Great Lakes/Seaway organizations and stake holders in urging completion of approvals of the USCG Final Rule and is providing comments to the EPA in a currently open comment period. In addition, USGLSA has joined these other groups including the Great Lakes Seaway Coalition in calling upon the Governor and New York legislators to rectify the currently unsupportable positions being taken in that State on ballast water.
The USGLSA is holding its Annual Meeting of Members this year in Detroit, MI on March 15, 2012..
United States Great Lakes Shipping Association
Cleveland, Ohio
440/357-9104 (Phone)
440/357-9105 (Fax)
theismarine@roadrunner.com (e-mail)
www.usglsa.org (web)
Mr. Theis, who has served as Executive Director since April 2007, is an attorney and businessman with prior associations at Cleveland, Ohio based M. A. Hanna Company and Oglebay Norton Company. At Hanna, he held a variety of legal/operational positions including Corporate Vice President with responsibilities for Hanna’s Great Lakes/St Lawrence Seaway and Ocean Marine vessel and dock operations in the U. S. and Canada. While at Oglebay Norton, Mr. Theis served as President of the Company’s Great Lakes fleet and dock operations. Most recently, he served as an independent consultant to the Cleveland-Cuyahoga County Port Authority with oversight responsibility for a feasibility study examining the possibility of a Trans Lake Erie ferry service between Cleveland and Port Stanley, Ontario.