BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 471
                                                                  Page  1

          Date of Hearing:   April 29, 2003

           ASSEMBLY COMMITTEE ON ENVIRONMENTAL SAFETY AND TOXIC MATERIALS
                                  John Laird, Chair
                    AB 471 (Simitian) - As Amended:  April 3, 2003
           
          SUBJECT  :  Air emissions:  cruise ships.

           SUMMARY  :  Places several restrictions on cruise ships in order  
          to reduce air pollution.  Specifically,  this bill  :

          1)Prohibits cruise ships from conducting on-board waste  
            incineration while operating within 90 miles of the California  
            coast as of January 1, 2004.

          2)Requires cruise ships operating within 25 miles of the  
            California coast to use only California diesel fuel (also  
            known as CARB diesel) as of January 1, 2005.

          3)Prohibits cruise ships from operating its main propulsion or  
            auxiliary engines while docked, beginning 30 minutes after  
            docking time until one hour prior to scheduled departure time.

           EXISTING LAW  :

          1)Case law indicates that as long as the ship emissions are felt  
            onshore within California jurisdiction, the state has the  
            authority to impose reasonable operational requirements that  
            do not constitute design or construction specifications.

          2)Authorizes the state Air Resources Board (ARB) to regulate air  
            emissions in California Coastal Waters, which range from 27 to  
            102 miles from shore.

          3)Identifies the areas in which transported air pollutants from  
            upwind areas cause or contribute to a violation of the state  
            ambient air quality standard for ozone and the areas of origin  
            of the transported pollutants.

           FISCAL EFFECT  :  Unknown.

           COMMENTS  :

          1)According to the sponsor, Bluewater Network, a modern cruise  
            ship in a single port visit generates air pollution equivalent  








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            to 12,240 cars.  Cruise ships in California coastal waters  
            emit more than 10 tons per day of smog-forming emissions and  
            cancer-causing particulate matter.  The air pollution  
            threatens the public health of passengers, crew, and  
            dockworkers, as well as raises environmental justice concerns  
            for local communities near port areas.  The sponsor contends  
            that cruise ships generate up to five times greater power  
            needs and commensurate air pollution per vessel than other  
            large ships such as oil tankers, due to energy needs  
            associated with large volumes of passengers, including space  
            and water heating, lighting, refrigeration, cooking, and  
            recreational activities for up to 5,000 people per ship.

          2)The sponsor asserts that the impacts of these emissions are  
            significant because most of the coastal areas where cruise  
            ships travel are not in compliance with ambient air quality  
            standards.  In particular, the South Coast Air Quality  
            Management District (SCAQMD) experiences the state's worst air  
            quality and receives the majority of cruise ship port calls.   
            Throughout the state, all sources of emissions, including  
            cruise ships, need to be controlled to attain state and  
            federal ambient air quality standards.

          3)Incineration:

             a)   Cruise ships are equipped with incinerators and boilers  
               that burn a variety of wastes including: hazardous wastes,  
               oil, oily sludge, sewage, medical and bio-hazardous waste,  
               outdated pharmaceuticals, and other solid wastes such as  
               plastics, paper, metal, glass, and food.  The emissions  
               from onboard incineration include dioxins, nitrogen oxide,  
               sulfur oxide, carbon monoxide, carbon dioxide, particulate  
               matter, hydrogen chloride, hydrocarbons, and toxic metals  
               such as lead, cadmium, and mercury.

             b)   Opponents contend that barring the use of incinerators  
               within 90 miles of the California coast is not warranted  
               given the technology used by cruise ships.  Opponents refer  
               to U.S. Navy studies that show that modern,  
               state-of-the-art shipboard incinerators are equivalent to  
               or better than shoreside incinerators.  However, the  
               sponsor asserts that while regulations for shipboard  
               incinerators do exist under the International Maritime  
               Organization, they inadequately protect human health and  
               the environment primarily because the technology has not  








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               yet been subject to constraints on either air emissions or  
               the types of materials that can be incinerated.

             c)   Several questions arise in regards to enforcement of  
               this bill's incineration provision.  What agency or board  
               will be in charge of enforcement duties?  How will the  
               enforcement be funded?  How will the enforcer monitor the  
               cruise ships up to 90 miles out from the coast?  This bill  
               has yet to address these issues.

          4)CARB diesel fuel:

             a)   Most ocean-going ships run their main propulsion engines  
               (and many newer ships also run their auxiliary engines) on  
               intermediate fuel oil (IFO 180 or IFO 380).  This fuel is  
               also referred to as "bunker fuel," and requires heating to  
               reduce its viscosity to a point where it can be properly  
               atomized and combusted.  Bunker fuel typically contains  
               much higher levels of sulfur, nitrogen, ash, and other  
               compounds that increase exhaust emissions.  For example,  
               typical bunker fuel used by ships visiting the Ports of Los  
               Angeles and Long Beach averages about 2.8% sulfur (28,000  
               ppm), compared to about 120 ppm sulfur for California  
               on-road diesel.

             b)   According to the ARB, the three largest pollutants from  
               cruise ships are sulfur oxides (SOx), nitrogen oxides  
               (NOx), and particulate matter (PM).  Cruise ships emit on  
               average 5.4 tons per day (tpd) of SOx, 5.6 tpd of NOx, and  
               0.65 tpd of PM.  The ARB estimates that requiring cruise  
               ships to switch from bunker fuel to CARB on-road low-sulfur  
               diesel when operating in California coastal water within 25  
               miles offshore will reduce SOx by 99.6%, NOx by 16%, and PM  
               by 58%.

             c)   Opponents argue that CARB fuel is not readily available,  
               and that they do not have the design capacity to carry CARB  
               fuel.  According to the ARB, CARB diesel is readily  
               available at most of the larger California ports at which  
               cruise ships dock.

             d)   Opponents raise the following issue in regards to this  
               bill's fuel requirement:  If a cruise ship is not planning  
               on entering a California port, or if they are coming from  
               other nations, how are the ships expected to meet this  








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               requirement?  The sponsor states that many large vessels  
               already have separate fuel tanks in order to switch between  
               fuel types for safety and maneuvering purposes.  Also, the  
               sponsor asserts that to meet the requirements of this  
               legislation, cruise operators will have to dedicate  
               sufficient clean fuel tankage to retain an adequate  
               quantity of clean fuel supplies for operating within 25  
               miles of California's coast, and for in-port operations.

          5)Shoreside power:

             a)   When cruise ship engines run in port to generate  
               electricity for on-board operations, it is called  
               "hoteling".  According to the ARB, hoteling emissions are a  
               significant component of marine vessel emissions,  
               especially in the South Coast Air Basin.  For example, in  
               2000, cruise ships were responsible for nearly 30% of the  
               NOx emissions from commercial marine vessels within the  
               district.

             b)   Opponents contend that in order to comply with the  
               shoreside power requirement, most ships will require new  
               engineering at considerable expense and would only be used  
               a few times per year since most of the ships do not call in  
               California very often.  Opponents also state that such a  
               requirement does not take into consideration the ships that  
               have already installed turbines and advanced technology  
               engines specifically designed to reduce emissions while in  
               port.

             c)   The sponsor concedes that most California ports are not  
               yet equipped with shoreside hook-ups for cruise ships.   
               However, the sponsor points out that other vessels such as  
               tugboats, ferries, military vessels and recreational boats  
               all routinely hook-up to shoreside power while in port.    
               By shutting down the engines and hooking up to cleaner  
               shoreside electrical power, the sponsor states that cruise  
               ship engine emissions can be eliminated at the dock.

             d)   One cruise line has implemented shoreside hook-ups in  
               Alaska.  The sponsor cites that Princess Cruise Line has  
               formed a partnership with a utility in Juneau, Alaska, to  
               provide hook-ups for its vessels.  Each ship cost $500,000  
               for retrofitting.  The total project cost $4.5 million,  
               shared by the cruise line and the utility.  Questions  








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               arise, as to the funding of such a program in California  
               ports and who will be responsible for the expenses.

          6)Related legislation:

             a)   AB 2746 (Nakano) (Chapter 504, Statutes of 2000),  
               created a cruise ship environmental task force.  The role  
               of the task force was to evaluate environmental practices  
               and waste streams of large passenger vessels and to gather  
               information for a report by the California Environmental  
               Protection Agency to the Legislature in 2003.  This report  
               has been drafted and is currently going through the review  
               process.

             b)   AB 121 (Simitian), pending in this committee, prohibits  
               cruise ships from dumping sewage, sewage sludge, or oily  
               bilge water into state waters.

             c)   AB 433 (Nation), pending in this committee, revises the  
               California Ballast Water Management for Control of  
               Nonindigenous Species Act and extends the Act's sunset date  
               to January 1, 2010.  The author and sponsor of AB 433 are  
               working closely with cruise lines, members of the  
               commercial shipping industry and the California port system  
               in developing the bill.

             d)   AB 906 (Nakano), pending in this committee, prohibits  
               cruise ships from discharging graywater from kitchens,  
               laundries and showers, and hazardous materials such as dry  
               cleaning and photo processing chemicals, into state waters.

           REGISTERED SUPPORT / OPPOSITION  :

           Support
           
          Bluewater Network  (Sponsor)
          Bay Area Air Quality Management District
          CA Air Pollution Control Officers' Association
          FourWinds Travel
          Friends of the Sea Otter
          Natural Resources Defense Council
          Ocean Advocates
          Oceana
          Planning and Conservation League
          Save the Bay








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          Sierra Club, Ventana Chapter
          The Ocean Conservancy
          Individuals (4)

           Opposition
           
          International Council of Cruise Lines
           

          Analysis Prepared by  :    Joanne Wong / E.S. & T.M. / (916)  
          319-3965