BILL ANALYSIS                                                                                                                                                                                                    



                                                                AB 471
                                                                       

                      SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                               Byron D. Sher, Chairman
                              2003-2004 Regular Session
                                           
           BILL NO:    AB 471
           AUTHOR:     Simitian
           AMENDED:    June 2, 2003
           FISCAL:     Yes               HEARING DATE:     July 7, 2003
           URGENCY:    No                CONSULTANT:       Randy Pestor
            
           SUBJECT  :    VESSEL DIESEL FUEL AND WASTE INCINERATION

            SUMMARY  :    
           
            Existing law  :

           1) Under the Large Passenger Vessels Law (Public Resources  
              Code 72300  et seq  .):

              a)    Creates the Cruise Ship Environmental Task Force to  
                 evaluate environmental practices and waste streams of  
                 large passenger vessels.  The task force must be  
                 convened by the California Environmental Protection  
                 Agency (Cal-EPA), include specified agency  
                 representatives, and gather certain information for the  
                 Law's required report.

              b)    Requires the owner or operator of a vessel operated  
                 in state marine waters to submit a quarterly report to  
                 the State Water Resources Control Board (SWRCB) on any  
                 graywater or sewage water release while the vessel was  
                 located in state marine waters.

              c)    Requires the State Air Resources Board to measure and  
                 record the opacity of visible emissions, excluding  
                 condensed water vapor, of a representative sample of  
                 large passenger vessels while at berth or at anchor in a  
                 port in the state.

              d)    Requires Cal-EPA to use information gathered by the  
                 task force and prepare and submit a report to the  
                 Legislature on or before June 1, 2003, that includes  
                 certain information (  e.g.  , environmental rules,  









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                 regulations, reports, reporting procedures for managing  
                 waste based on international, federal, and state law;  
                 review and analysis of information contained in any  
                 report submitted to state or federal entities by large  
                 passenger vessel owners and operators; identification of  
                 areas of concern; identification of mechanisms to better  
                 coordinate state and federal agency activities  
                 regulating large passenger vessels; observations  
                 regarding the potential impacts of waste releases;  
                 recommendations to address any areas where additional  
                 requirements or reporting may be appropriate).

              e)    Defines various terms, including "waste" (  i.e.  , air  
                 contaminant, graywater, sewage, solid waste (including  
                 incinerator residue and medical waste), hazardous waste,  
                 oily waste).

              f)    Sunsets July 1, 2003.

           2) Requires the State Air Resources Board to:

              a)    Adopt and implement motor vehicle emission standards  
                 and motor vehicle fuel specifications for controlling  
                 air contaminants and sources of air pollution that the  
                 ARB has found to be necessary, cost-effective, and  
                 technologically feasible, unless preempted by federal  
                 law (Health and Safety Code 43013).  The ARB must adopt  
                 standards and regulations for light-duty and heavy duty  
                 motor vehicles, and off-road or nonvehicle engine  
                 categories, including but not limited to, off-highway  
                 motorcycles, off-highway vehicles, construction  
                 equipment, farm equipment, utility engines, locomotives,  
                 and, to the extent permitted by federal law, marine  
                 vessels.  A "marine vessel" is defined as any tugboat,  
                 tanker, freighter, passenger ship, barge, or other boat,  
                 ship, or watercraft, except those used primarily for  
                 recreation (Health and Safety Code 39037.1).

              b)    Endeavor to achieve the maximum degree of emission  
                 reduction possible from vehicular and other mobile  
                 sources in order to accomplish the attainment of state  
                 standards at the earliest practicable date (Health and  










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                 Safety Code 43018).

              c)    Adopt and implement new motor vehicle emission  
                 standards for controlling emissions found to be  
                 necessary and technologically feasible.  Prior to  
                 adopting the standards, the ARB must consider the impact  
                 of the standards on the state economy, including but not  
                 limited to their effect on motor vehicle fuel efficiency  
                 (Health and Safety Code 43101).

           3) Provides that if means of incineration of, or approved  
              processing of, garbage are not available aboard any vessel  
              in the state, the master or other person in charge of the  
              vessel must provide containers or receptacles with  
              tight-fitting covers in which the garbage must be retained  
              while within the territorial waters of the state pending  
              incineration or approved treatment pursuant to regulations  
              (Food and Agriculture Code 16101).

           4) Sets various requirements relating to the incineration of  
              waste, including hazardous and medical waste.

            This bill  :

           1) Prohibits a cruise ship from conducting onboard waste  
              incineration while operating within 90 miles of the  
              California coast.

           2) Requires a cruise ship to use only diesel fuel referenced  
              in specified state regulations setting certain vehicular  
              diesel fuel limits ( i.e.  , CARB diesel), commencing January  
              1, 2005.

           3) Requires the ARB to enforce the above requirements.

           4) Defines "cruise ship" to be a commercial vessel with a 200  
              passenger capacity, except for vessels without berths or  
              overnight accommodations for passengers and noncommercial  
              vessels, warships, vessels operated by certain nonprofit  
              entities, and vessels operated by the state, United States,  
              or a federal government.











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           5) Contains related legislative intent.

            COMMENTS  :

            1) Purpose of Bill  .  According to the author, "The recent  
              expansion of the cruise line industry in California has  
              brought about an increase in toxic air contaminants and air  
              pollution in the State.  AB 471 provides greater protection  
              to California's coastal environment and air quality b  
              regulating certain cruise ship practices in port and close  
              to shore.  The bill prohibits cruise ships from using  
              pollution-rich fuels and requires use of fuels with lower  
              amounts of sulfur and nitrous oxide within twenty-five (25)  
              miles of California's coast.  AB 471 also prohibits cruise  
              ships from incinerating garbage within ninety (90) miles of  
              shore to reduce air pollution and contamination of local  
              communities."

            2) Large Passenger Vessels Law  .  AB 2746 (Nakano) Chapter 504,  
              Statutes of 2000, enacted the Large Passenger Vessels Law.   
              The measure created a Cruise Ship Environmental Task Force  
              convened by Cal-EPA, with representatives of the SWRCB,  
              Department of Fish and Game, Department of Toxic Substances  
              Control, Integrated Waste Management Board, State Lands  
              Commission, State Air Resources Board, and the U.S. Coast  
              Guard.  The task force was required to gather certain  
              information and establish a process for receiving comments  
              from the public and the cruise ship industry on matters to  
              be considered by the task force.

           AB 2746 also required quarterly reports by vessel owners or  
              operators, required the State Air Resources Board to  
              measure vessel emissions, and required Cal-EPA to prepare a  
              report by June 1, 2003, addressing various matters  
              (including rules, regulations, reports, and reporting  
              requirements for managing waste base on international,  
              federal, and state law) and to make recommendations for  
              additional requirements or reporting.

           AB 2746 sunsets July 1, 2003, and the draft report is  
              currently subject to internal review and has not been  
              publicly distributed.










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           Would it be appropriate to have the benefit of the AB 2746  
              report and recommendations in order to develop a  
              comprehensive approach for managing waste from large  
              passenger vessels?

            3) Waste incineration  .  AB 471 prohibits a cruise ship from  
              conducting onboard waste incineration when operating within  
              90 miles of the California coast.

           AB 471 does not provide a definition of "waste" so it is  
              uncertain what types of waste are covered by the bill.   
              Would an incineration ban result in problems associated  
              with storing waste onboard?  Would an incineration ban  
              result in increased dumping of waste into the ocean?

            4) New diesel fuel requirements  .  AB 471 requires a cruise  
              ship, commencing January 1, 2005, to use a specified diesel  
              fuel (also referred to as CARB diesel) while operating  
              within 25 miles of the California coast.  According to the  
              sponsor, "CARB diesel is readily available, and is required  
              for use by all on-road diesel vehicles such as trucks and  
              buses, and off-road vehicles including commercial ferries."  
               The sponsor also indicates that these ships "operate on  
              the dirtiest fuels available globally.  These are known as  
              bunker oil, or residual fuels."

           Cruise ship representatives indicate that cruise ships use  
              lighter marine diesel bunker fuel, not the heavy bunker  
              fuel commonly used by tankers.  They also note that most  
              cruise ships cannot be retrofitted to run on CARB diesel or  
              switch between CARB diesel and heavier fuels, that some  
              ships can be retrofitted to run on CARB diesel if that is  
              the only fuel the ships use -- but ships do not have access  
              to CARB diesel in other ports.

           According to an October 2000 ARB report on mobile  
              diesel-fueled engines, "Staff believes that a combination  
              of voluntary, incentive, and regulatory approaches would  
              significantly reduce diesel PM emissions from commercial  
              marine engines.  The following strategies are proposed:   
              first, a voluntary speed reduction control strategy for  










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              ocean-going ships operating in California waters; second, a  
              federal incentive program to provide funds, beyond those  
              already available through  California's funding of the Carl  
              Moyer Program, for repowering with cleaner engines and for  
              retrofitting existing engines; and third, a federal  
              regulation that applies the new commercial marine engine  
              standards to existing vessels when their engines are  
              rebuilt or repowered.  In addition to these engine  
              strategies, a mandatory reduction in fuel sulfur level  
              would also reduce emissions."

           According to the ARB, the International Maritime Organization  
              (IMO) set NOx standards and a sulfur content cap, but these  
              are not enforceable until ratified by 15 countries  
              representing 50% of the gross tonnage of the world's  
              merchant shipping.  This has not occurred, and the U.S. is  
              among the countries that have not ratified the standards.

           ARB staff also indicates that the ARB is "currently  
              formulating a strategy for reducing PM and other emissions  
              from commercial marine vessels and port dockside  
              activities.  In developing this strategy, ARB will perform  
              a comprehensive assessment of potential emission reduction  
              opportunities subject to State, local, or federal  
              jurisdiction."

           If use of CARB diesel cannot be properly used in current  
              cruise ships, should other options be explored (  e.g.  ,  
              phased sulfur caps, stack reduction emission equipment),  
              and should these procedures apply to all ships?

            5) Reporting requirements needed  .  While AB 471 prohibits  
              waste incineration, there is no reporting requirement.  To  
              ensure that that the state is aware of incineration  
              activities, owners or operators of large passenger vessels  
              should be required to provide notice containing certain  
              information (  e.g.  , date, time and location of incineration;  
              volume and source of incineration; cause of incineration;  
              remedial actions taken to prevent future incineration) to  
              the State Air Resources Board when incineration occurs.

            6) Related legislation  .  AB 121 (Simitian) prohibits owners or  










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              operators of large passenger vessels from releasing sewage,  
              oily bilgewater, or ballast water in certain waters under  
              certain conditions.  AB 433 (Nation) changes the Ballast  
              Water Management for Control of Nonindigenous Species Law  
              to the Marine Invasive Species Act, and revises various  
              requirements for ballast water management practices to  
              minimize release of nonindigenous species. AB 906 (Nakano)  
              prohibits the release of graywater and hazardous waste from  
              large passenger vessels into state marine waters and marine  
              sanctuaries. 

            SOURCE  :        Blue Water Network  

           SUPPORT  :       American Cetacean Society, Monterey Chapter
           Bay Area Air Quality Management District
                          California Air Pollution Control Officers  
                          Association
                          Carmel-by-the-Sea Councilmember Barbara  
                          Livingston
                          Coalition for Clean Air
                          Friends of the Sea Otter
                          Marine Engineers Beneficial Association
                          Natural Resources Defense Council
                          Ocean Conservancy
                          Oceana
                          Planning and Conservation League
                          San Franciscans for a Healthy Environment
                          Santa Barbara County Air Pollution Control  
                          District
                          Save Our Shores
                          Sierra Club California
                          Sierra Club Ventana Chapter
                          South Coast Air Quality Management District
                          Surfrider Foundation
                          WaterKeepers Northern California  

           OPPOSITION  :    California Association of Port Authorities
           International Council of Cruise Lines
           Pacific Merchant Shipping Association