BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1312


                                                                    Page  1





          Date of Hearing:  April 14, 2015


           ASSEMBLY COMMITTEE ON ENVIRONMENTAL SAFETY AND TOXIC MATERIALS


                                  Luis Alejo, Chair


          AB 1312  
          (O'Donnell) - As Amended April 6, 2015


          SUBJECT:  Ballast water management


          SUMMARY:  Delays the implementation of interim and final  
          performance standards for eliminating living organisms in ships'  
          discharged ballast water.   Specifically, this bill:  


          1)Defines "port" as any port or place in which a vessel was, is,  
            or will be anchored or moored, or where a vessel will transfer  
            cargo.

          2)Deletes provisions which, until the State Lands Commission  
            (SLC) adopted regulations governing ballast water management  
            practices for vessels arriving to California from within the  
            Pacific Coast Region, required the person in charge of a  
            vessel to employ at least one of the specified ballast water  
            management practices.

          3)Requires the SLC to adopt regulations governing ballast water  
            management practices for vessels arriving at a California port  
            from a port outside of the Pacific Coast Region, as specified.

          4)Requires the person in charge of a vessel arriving at a  
            California port from a port outside of the Pacific Coast  
            Region to comply with these regulations.








                                                                    AB 1312


                                                                    Page  2






          5)Changes the date, from 2016 to 2020, by which the SLC is  
            required to deem an approved experimental ballast water  
            treatment device to be in compliance with any future treatment  
            standard adopted, for a period of 5 years.  

          6)Changes the timing, from upon the vessel's departure for  
            California to at least 24 hours before the vessel arrives in  
            California, by which the person in charge of a vessel capable  
            of carrying ballast water, that visits a California port, must  
            submit ballast water reporting forms.  

          7)Requires the person in charge of any vessel that has a ballast  
            water treatment system to submit a ballast water treatment  
            technology reporting form.  Deletes current law which requires  
            only vessels that discharge treated ballast in California to  
            submit the form.

          8)Delays, from a scheduled phase-in that starts in 2016, to 2020  
            for all vessels, the implementation of interim performance  
            standards for the discharge of ballast water. 

          9)Delays, from 2020 to 2026, the implementation of the final  
            performance standard for the discharge of ballast water of  
            zero detectable for all organism size classes.

          10)Deletes ballast water and sediment from the specified samples  
            that the SLC, to ensure compliance with ballast water  
            requirements, is required to make on 25 percent of arriving  
            vessels.   

          11)Requires the SLC, in coordination with the United States  
            Coast Guard and to ensure compliance with ballast water  
            requirements, to inspect at least 25 percent of arriving  
            vessels.

          12)Expands the records that the person in charge of a vessel  
            subject to ballast water requirements must make available to  
            the SLC.








                                                                    AB 1312


                                                                    Page  3






          13)Adds the management of biofouling on vessels to the  
            enforcement authority conferred upon the SLC. 

          14)Makes other technical and conforming changes 

          EXISTING LAW:  Under the Marine Invasive Species Act,


          1)Requires the master, owner, operator, or person in charge of a  
            vessel carrying, or capable of carrying, ballast water, that  
            operates in the waters of the state to take specified actions  
            to minimize the uptake and release of nonindigenous species.   
            (Public Resources Code (PRC) § 71203, et seq.) 

          2)Requires the SLC, if an owner or operator of a vessel applies  
            to install an experimental ballast water treatment system, and  
            the SLC approves that application on or before January 1,  
            2016, to deem the system to be in compliance with any future  
            treatment standard adopted, for a period not to exceed 5 years  
            from the date that the specified interim performance standards  
            would apply to that vessel.  (PRC § 71204.7)

          3)Requires the SLC to adopt regulations, on or before January 1,  
            2008, that require an owner or operator of a vessel with  
            ballast water capacity that operates in the waters of the  
            state to implement an interim performance standard, beginning  
            in 2016, for the maximum allowable thresholds for living  
            organisms discharged in ballast water based on the size of the  
            organism, capacity of the ship's ballast water retention, and  
            the date of the ship's construction.  (PRC § 71205.3(a)(2))

          4)Requires the SLC to adopt regulations that require an owner or  
            operator of a vessel with ballast water capacity that operates  
            in the waters of the state to meet the final performance  
            standard for the discharge of ballast water of zero detectable  
            for all organism size classes by 2020.  (PRC § 71205.3(a)(3))

          FISCAL EFFECT:  Unknown.








                                                                    AB 1312


                                                                    Page  4







          COMMENTS:  


          Need for the bill:  According to the author's office, "The  
          state's interim performance standards must be changed to reflect  
          the lack of available treatment technologies.  AB 1312 delays  
          implementation of California's ballast water performance  
          standards until 2020 to enable further research and development  
          of treatment technologies that can meet California's standards.   
          This delay also provides the California State Lands Commission  
          with time to adopt compliance assessment regulations that will  
          give the shipping industry guidance on how conform to these  
          regulations."


          Nonindigenous species:  Nonindigenous aquatic plant and animal  
          species can be transported to new ecosystems and regions through  
          human activities.  According to the SLC, shipping is the most  
          significant vector for the transport and introduction of aquatic  
          nonindigenous species, contributing to 79.5% of established  
          aquatic nonindigenous species to North America and 74.1% across  
          the globe.  Once they are established, nonindigenous species can  
          cause ecological, economic and human health problems in the  
          receiving environment.  


          Commercial ships transport organisms through two primary  
          vectors: vessel biofouling and ballast water.  Vessel biofouling  
          occurs when organisms attach to the hard surfaces of the vessel,  
          then are transported to new environments that the vessel enters.  
           Ballast water is sea water taken on, redistributed on, and  
          discharged from large seagoing vessels for functions related to  
          stability, maneuverability, and propulsion.  More than 7000  
          species are estimated to be moved around the world on a daily  
          basis in ships' ballast water and each ballast water discharge  
          has the potential to release over 21.2 million individual  
          free-floating organisms.  








                                                                    AB 1312


                                                                    Page  5







          The prevention of species introductions through the management  
          of human activities, such as requirements related to biofouling  
          and ballast water management, is considered the most protective  
          and cost-effective way to address the nonindigenous species  
          issue.


          California's ballast water program:  To prevent the introduction  
          of aquatic species through ballast water discharges, the  
          legislature enacted the Coastal Ecosystems Protection Act (Act)  
          (Simitian, Chapter 292, Statutes of 2006).  Among its  
          provisions, the Act requires the SLC, on or before January 1,  
          2008, to adopt regulations that require an owner or operator of  
          a vessel carrying, or capable of carrying, ballast water that  
          operates in the waters of the state to implement interim and  
          final performance standards for eradicating organisms in ballast  
          water before it is discharged.  The interim performance  
          standards, which originally applied starting in 2009, but  
          through subsequent statutory changes now apply in either 2016 or  
          2018, depending on the size of the organism; the capacity of the  
          ship's ballast water retention; and, the date of the ship's  
          construction, phase in the maximum allowable thresholds for  
          living organisms in discharged ballast water.  The SLC adopted  
          the interim performance standards in 2007.  The Act sets a final  
          performance standard for the discharge of ballast water of zero  
          detectable living organisms for all organism size classes by  
          2020.


          Compliance with California's standards:  According to the SLC,  
          vessels can comply with the California performance standards  
          through methods including retention of all ballast water onboard  
          the vessel (the most protective management strategy available);  
          discharge of ballast water to an approved reception facility;  
          or, use of a shipboard ballast water treatment system.  While  
          retention is the most protective ballast water management  
          strategy, not all vessels can retain ballast water due to  








                                                                    AB 1312


                                                                    Page  6





          operational needs or safety concerns.  The SLC reports that it  
          conducted assessments of both shipboard and shore-based ballast  
          water treatment technologies in 2007, 2009, 2010 and 2013 (per a  
          requirement of the Act), and found that no ballast water  
          treatment technologies were available at the time to meet the  
          California performance standards.  


          Previous delays of the interim performance standards:  Because  
          of the SLC's previous findings on the availability of treatment  
          technologies, the legislature has already twice delayed the  
          implementation dates for ballast water interim performance  
          standards.  In 2008, the legislature delayed implementation for  
          new vessels with ballast water capacity of less than 5000 metric  
          tons from January 1, 2009, to January 1, 2010.  In 2013 it  
          further delayed implementation for all vessels by an additional  
          two to six years (phasing in in 2016 and 2018), depending on  
          when the vessel was constructed and the vessel's ballast water  
          capacity.  This bill proposes to delay the implementation of the  
          interim performance standard to 2020, an eleven year delay from  
          the earliest original implementation date, and to delay the  
          final performance standard to 2026, a six year delay from the  
          original implementation date.  


          Current status of ballast water treatment systems:  Again in  
          2014, the SLC assessed and reported on the availability of  
          ballast water treatment technologies that can meet the  
          California ballast water discharge performance standards.  The  
          report reviewed both shore-based and shipboard methods of  
          treatment and found that shore-based treatment facilities able  
          to kill or remove organisms in ballast water currently still do  
          not exist in the United States.  The report also stated that  
          shipboard ballast water treatment systems have not demonstrated  
          the ability to meet the California performance standards.  The  
          SLC argues that the lack of options available to the shipping  
          industry with which to comply with California's performance  
          standards at this time is an obstacle to implementation of the  
          standards.








                                                                    AB 1312


                                                                    Page  7







          Why are treatment technologies unavailable?  The SLC found that  
          shipboard ballast water treatment systems are available for  
          purchase from vendors.  However, they report that no systems are  
          available that have demonstrated the ability to meet the  
          California performance because no system has demonstrated  
          efficacy for all of the standards; there are no suitable methods  
          to analyze ballast water samples; and, there is a lack of  
          sampling and compliance protocols for determining which systems  
          can meet the standards.  The SLC states that they are  
          promulgating compliance assessment protocols, slated to be  
          adopted by January 1, 2017, which are intended to resolve the  
          questions about accurate testing procedures.  By promulgating  
          compliance assessment protocols in advance of the implementation  
          dates of the performance standards, industry will have years to  
          ensure systems under consideration will meet the standards.  


          For shore-based ballast water reception and treatment  
          facilities, none specifically designed to receive and remove or  
          kill nonindigenous species in ballast water are currently  
          available in California or the U.S.  This is largely because  
          collaborative efforts among international, federal, and state  
          (including California) regulators and the shipping industry have  
          focused on the use of shipboard ballast water treatment systems  
          as the preferred method to enable compliance with state, federal  
          and international discharge standards.


          While the SLC and the author introduced this bill in order to  
          enable further development of treatment technologies, previous  
          delays of the standards have not resulted in the development of  
          these technologies.  Does continuing to delay performance  
          standards remove the incentive for treatment technology  
          development?


          Related legislation:








                                                                    AB 1312


                                                                    Page  8







          1)AB 433 (Nation), Chapter 491, Statutes of 2003.  Consolidated  
            law related to the management of ballast water into the Marine  
            Invasive Species Act, and revised various requirements for  
            ballast water management practices to minimize the release of  
            nonindigenous species.

          2)SB 497 (Simitian), Chapter 292, Statutes of 2006.  Enacted the  
            Coastal Ecosystems Protection Act, which established interim  
            and final performance standards for the discharge of ballast  
            water from large commercial ships.  Required interim  
            standards, which identified a range of thresholds for living  
            organisms by class size, to begin to take effect January 1,  
            2009.  Required the final standards, a "zero detectable living  
            organisms" standard for all organism size classes, to take  
            effect January 1, 2020.

          3)SB 1781(Committee on Environmental Quality), Chapter 696,  
            Statutes of 2008.  Delayed implementation of ballast water  
            performance standards for new vessels with ballast water  
            capacity less than 5000 metric tons from January 1, 2009, to  
            January 1, 2010.

          4)AB 248 (Lowenthal), Chapter 248, Statutes of 2009.  Required  
            the person in charge of a vessel to maintain and submit to the  
            California State Lands Commission specified information  
            relating to the vessel's ballast water treatment system.  

          5)SB 935 (Committee on Environmental Quality), Chapter 550,  
            Statutes of 2012.  Delayed the date for which the State Lands  
            Commission must approve a vessel operator's application to  
            install an experimental ballast water treatment from January  
            2008 to January 2016.

          6)SB 814 (Committee on Natural Resources and Water), Chapter  
            472, Statutes of 2013.  Delayed implementation of ballast  
            water performance standards for vessels that carry, or are  
            capable of carrying, ballast water into the state by two to  








                                                                    AB 1312


                                                                    Page  9





            six years, depending on when the ship was constructed and the  
            vessel's ballast water capacity.  

          Double referral:  This bill was double referred to the Assembly  
          Committee on Transportation.  
          


          REGISTERED SUPPORT / OPPOSITION:




          Support


          State Lands Commission (sponsor)


          California Association of Port Authorities


          Maersk, Inc.


          Pacific Merchant Shipping Association 




          Opposition


          None received.




          Analysis Prepared by:Shannon McKinney / E.S. & T.M. / (916)  








                                                                    AB 1312


                                                                    Page  10





          319-3965