BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 471
                                                                  Page  1

          ASSEMBLY THIRD READING
          AB 471 (Simitian)
          As Amended June 2, 2003
          Majority vote 

           ENVIRONMENTAL SAFETY          5-2                    
          APPROPRIATIONS      16-6        
           
           ----------------------------------------------------------------- 
          |Ayes:|Laird, Chu, Levine,       |Ayes:|Steinberg, Berg, Kehoe,   |
          |     |Lieber, Lowenthal         |     |Corbett, Diaz, Goldberg,  |
          |     |                          |     |Leno, Nation, Chan,       |
          |     |                          |     |Nunez, Pavley,            |
          |     |                          |     |Ridley-Thomas, Simitian,  |
          |     |                          |     |Wiggins, Yee, Laird       |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Aghazarian, Maddox        |Nays:|Bates, Daucher, Haynes,   |
          |     |                          |     |Pacheco, Runner,          |
          |     |                          |     |Samuelian                 |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Places 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 (CARB  
            diesel) as of January 1, 2005.

           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  








                                                                  AB 471
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            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  : 

          1)Moderate costs, about $180,000 in fiscal year (FY) 2004-05, to  
            ARB if the board exercises its authority to adopt standards  
            and rules and regulations.  (Air Pollution Control Fund  
            (APCF.)

          2)Moderate ongoing costs, about $250,000 annually starting in FY  
            2005-06, to ARB to adequately administer and enforce cruise  
            ship air pollution reduction requirements.  (General Fund or  
            APCF.)



           COMMENTS  :

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









                                                                 AB 471
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          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; and,

             b)   Concerned parties contend that barring the use of  
               incinerators within 90 miles of the California coast is not  
               warranted given the technology used by cruise ships.  They  
               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  
               yet been subject to constraints on either air emissions or  
               the types of materials that can be incinerated.

          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; and,

             b)   According to 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.  ARB estimates that requiring cruise ships  








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               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%.

          5)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; 

             b)   AB 121 (Simitian), pending on the floor, prohibits  
               cruise ships from dumping sewage, sewage sludge, or oily  
               bilge water into state waters; and,

             c)   AB 433 (Nation), pending on the floor, 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 on the floor, 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.


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


                                                               FN: 0001519