BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                              Senator Wieckowski, Chair
                                2015 - 2016  Regular 
           
          Bill No:           AB 1312
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          |Author:    |O'Donnell                                            |
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          |Version:   |4/15/2015              |Hearing      |7/1/2015        |
          |           |                       |Date:        |                |
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          |Urgency:   |No                     |Fiscal:      |Yes             |
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          |Consultant:|Laurie Harris                                        |
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          SUBJECT:  Ballast water management.

            ANALYSIS:
          
          Existing law:  
          
          Under the Marine Invasive Species Act (Public Resources Code  
          §71200 et seq.), which applies to all vessels carrying, or  
          capable of carrying, ballast water into California's coastal  
          waters, except as specified:

          1) Declares the purpose of the Act to eliminate the discharge of  
             nonindigenous species into the waters of the state based on  
             best available technology economically achievable and applies  
             to ballast water and associated sediments taken on a vessel,  
             including biofouling (the attachment of marine organisms to a  
             ship's hull, anchors, etc.).

          2) Requires the person in charge of a vessel carrying ballast  
             water in California waters to take steps to minimize the  
             uptake and release of nonindigenous species, including  
             maintaining a ballast water management plan for the vessel.

          3) Allows the person in charge of a vessel, while taking all  
             feasible measures to minimize the discharge of nonindigenous  
             species, to forgo a ballast water management practice if it  
             would threaten the safety and stability of the vessel or  
             safety of the crew and passengers.

          4) Requires the State Lands Commission ("Commission") to adopt  







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             regulations governing ballast water management practices for  
             vessels arriving at a California port from a port within the  
             Pacific Coast Region on or before January 1, 2005.

          5) Requires the Commission, in consultation with the United  
             States Coast Guard (USCG), to adopt regulations governing the  
             evaluation and approval of shipboard experimental ballast  
             water treatment systems, while allowing for the owner or  
             operator of a vessel to have an experimental system, approved  
             by the Commission by January 1, 2016, be deemed in compliance  
             with future treatment standards for up to 5 years from when  
             the interim standards are established.

          6) Requires that the person in charge of a vessel carrying, or  
             capable of carrying, ballast water visiting a California port  
             provide electronic or written information, as specified, upon  
             the vessel's departure from its port of call.

          7) Requires that the Commission, on or before January 1, 2008,  
             adopt regulations for interim performance standards for the  
             discharge of ballast water by 2016 or 2018, as specified by  
             vessel weights, and to meet the final performance standard of  
             zero detectable living organisms for all vessels by 2020.

          8) Requires the Commission, in coordination with the USCG, take  
             samples of ballast water and sediment from at least 25% of  
             arriving vessels to ensure compliance with ballast water  
             requirements.

          9) Allows the Commission to require vessels operating in  
             violation of this Act to depart the waters of the state and  
             exchange, treat, or otherwise manage the ballast water at a  
             location determined by the commission.

          This bill: 

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

          2) Repeals obsolete reporting and management practice provisions  
             (Public Resources Code §§71204.2, 71204.5, and 71210.5) and  
             makes technical changes for statutory consistency.

          3) Requires the Commission to adopt regulations governing  








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             ballast water management practices for vessels arriving at a  
             California port from a port outside of the Pacific Coast  
             Region, as specified, and requires the person in charge of a  
             vessel to comply with the adopted regulations.

          4) For a vessel owner or operator who applies to install an  
             experimental ballast water treatment system, changes the date  
             of application approval by the commission from January 1,  
             2016 to 2020, after which the system is deemed in compliance  
             with any interim treatment standards for up to five years, as  
             specified.

          5) Changes the reporting requirement, for the person in charge  
             of a vessel carrying, or capable of carrying, ballast water  
             that visits California, from the time of departure to at  
             least 24 hours before the vessel arrives at the California  
             port, or prior to departure if the voyage is less than 24  
             hours in total.

          6) Changes the interim ballast water discharge performance  
             standards compliance date from a phase-in schedule by weight  
             to one that applies to all new vessels on first arrival in  
             California if constructed on or after January 1, 2020, or as  
             of the first scheduled drydocking on or after January 1,  
             2020, for all other vessels.

          7) Changes the compliance date of the final performance standard  
             for the discharge of ballast water of zero detectable living  
             organisms from 2020 to January 1, 2030.

          8) As part of the sampling of 25% of vessels that the Commission  
             is required to conduct in coordination with the USCG,  
             includes collecting samples of biofouling, in addition to  
             ballast water and sediment, as well as requiring that the  
             Commission inspect the samples, in addition to collecting  
             them.

          9) Expands the Commission's authority to require vessels in  
             violation of the Act to manage biofouling, in addition to  
             ballast water, at a specified location outside of the waters  
             of the state.

            Background
          








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          1) Nonindigenous Species and Introduction Vectors.

             According to the Commission's 2015 Biennial Report on the  
             California Marine Invasive Species Program, "nonindigenous  
             species" (NIS) include those organisms that are intentionally  
             or unintentionally transported by human activities to new  
             environments, posing threats to human health, the  
             environment, and the economy.  Due to the often unsuccessful  
             and costly nature of eradication efforts, prevention is the  
             best way to address them.

             Though NIS can be transported in a variety of ways, for  
             aquatic organisms, shipping is the primary mechanism of  
             movement by people.  Shipping contributes to an estimated  
             79.5% of established NIS introductions in North America and  
             74.1% worldwide.  In 2005, an estimated 42% of threatened or  
             endangered species were listed in part due to negative  
             interactions with these nonindigenous species.  In San  
             Francisco Bay, since 2000, approximately $27.5 million has  
             been spent to control the invasive Atlantic cordgrass and  
             monitor impacts on native species.

             NIS introductions happen in two main ways. First, organisms  
             may be picked up in ballast water, which is used to maintain  
             a ship's stability at sea, at one port and released at  
             another. Second, organisms may attach to the external parts  
             of the ship, called "biofouling."

             Over 7,000 species of aquatic organisms are estimated to move  
             through ballast water across the world each day, according to  
             the Commission's 2014 Assessment of the Efficacy,  
             Availability, and Environmental Impacts of Ballast Water  
             Treatment Technologies for Use in California Waters report.   
             Furthermore, every discharge of ballast water can potentially  
             release more than 21.2 million individual free-floating  
             organisms into the environment.

          2) Public Health Impacts of Nonindigenous Species.

             According to the Commission's 2015 report, vessels and port  
             areas have been connected to the spread of epidemic human  
             cholera, as from the transport of the Vibrio cholerae  
             bacteria from Latin America to Alabama in 1991, leading to  
             the closure of nearly all the Mobile Bay oyster beds that  








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             summer and fall.

             Other microbes found in ships include human intestinal  
             parasites, such as Giardia and Cryptosporidium, the pathogens  
             causing paralytic shellfish poisoning, and bacterial  
             indicators of fecal contamination, including E. coli. 

          3) Ballast Water Management in California.

             The best way to prevent NIS spread in ballast water is  
             through retention.  However, when there are operational or  
             safety concerns, a vessel may not be able to retain ballast  
             water.  The Commission reports that in the first half of 2014  
             alone, more than 6.9 million metric tons of ballast water was  
             discharged in California, and the amount of water discharged  
             in the state continues to rise.

             In 2006, the Legislature enacted the Coastal Ecosystems  
             Protection Act to prevent the introduction and establishment  
             of aquatic species through ballast water, in part by  
             requiring the Commission to implement performance standards  
             for the discharge of ballast water and regularly review  
             ballast water treatment technologies.  If technologies are  
             not available to meet California's standards, the Commission  
             must provide an assessment to the Legislature at least 18  
             months prior to the implementation dates for the performance  
             standards.

             Currently, California's standards are much more stringent  
             than those set by the International Maritime Organization  
             (IMO) and USCG ballast water standards.  The state's  
             standards allow for smaller concentrations of organisms as  
             well as limit the discharge of total living bacteria and  
             viruses.

          4) Recent Ballast Water Treatment Technology Assessment Reports.

             In 2013, the Commission reported that there were no available  
             ballast water treatment technologies that could meet  
             California's performance standards.  This led to a delay of  
             the performance standards implementation by two years.

             In 2014, a follow-up report by the Commission was conducted  
             to review availability of treatment technologies ahead of the  








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             2016 implementation deadline for performance standards for  
             existing vessels with a ballast water capacity of 1500-5000  
             metric tons and all newly built vessels.  The report included  
             both shipboard and shore-based ballast water treatment  
             technologies.  The Commission found that no shore-based  
             treatment facilities exist in the United States currently,  
             and no ship-based treatment methods meet California's  
             standards.

             With a lack of acceptable treatment technologies, the current  
             methods for vessels to comply with California's standards  
             while in California waters include retaining all ballast  
             water onboard or discharging ballast water at an approved  
             location or facility, neither of which is ideal for the  
             approximately 15% of vessels that reportedly release ballast  
             water in California's waters each year.

          5) Difficulties in Meeting California's Standards.

             The Commission's 2014 report notes that some of the  
             difficulties in finding a shipboard testing method include:  
             current testing methods for shipboard treatment systems are  
             not performed under operational conditions; there is no one  
             system that can meet the California standards for all  
             organism sizes; and there are not widely accepted testing  
             protocols for living bacteria and virus concentrations in  
             ballast water.  

             The report further argues that, "Because of the differences  
             between the IMO/USCG standards and the California performance  
             standards and the requirement for vessels to use treatment  
             systems that are 'type approved' to the IMO/USCG standards,  
             there is no incentive for treatment technology developers to  
             assess the ability of systems to meet the California  
             standards."
            
          

            Comments
          
          1) Purpose of Bill. 

             According to the author, "The state's interim performance  
             standards must be changed to reflect the lack of available  








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             treatment technologies. AB 1312 delays implementation of  
             California's ballast water interim performance standards  
             until 2020, and final standards until 2030, 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 to conform to these regulations."

          2) Ongoing Implementation Delays and Impacts.

             Previous reports from the Commission to the Legislature have  
             been conducted in 2007, 2009, 2010, and 2013.  Findings have  
             led to the delay of implementation dates for interim and  
             final performance standards in 2008 and 2013.  From the  
             originally proposed dates to those in the current bill, these  
             represent delays of 11 years for the interim performance  
             standards and 10 years for the final performance standards.

             The Commission notes that the lack of options available for  
             the shipping industry is an obstacle to implementing the  
             current standards.  They report currently funding a study on  
             the feasibility of shore-based ballast water treatment in  
             California, managed by the Delta Stewardship Council, with a  
             final report anticipated in late 2015, as well as engagement  
             in developing sampling tools and protocols to assess  
             shipboard treatment systems.

             Without amending the current statute, some vessels will  
             become non-compliant when the interim performance standards  
             are scheduled for implementation as of January 1, 2016, and  
             there are no current technologies available to them in time  
             to reach compliance.  

             However, are repeated delays of performance standards  
             providing a disincentive for developing the technologies that  
             are needed to meet the standards that have been set?  By  
             continuing to delay the implementation of these standards and  
             not developing the testing methodologies and technologies  
             necessary to meet them, the environment, public health, and  
             economy of the state are being put at risk.

            









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          Related/Prior Legislation
          
          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 2-6 years, as  
          specified for the ship's construction date and ballast water  
          capacity.

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

          AB 248 (Lowenthal, Chapter 317, Statutes of 2009) required the  
          person in charge of a vessel to maintain and submit specified  
          information relating to the vessel's ballast water treatment  
          system to the Commission.

          SB 1781 (Committee on Environmental Quality, Chapter 696,  
          Statutes of 2008) delayed the implementation of ballast water  
          performance standards for new vessels with ballast water  
          capacity of less than 5,000 metric tons from January 1, 2009 to  
          January 1, 2010.

          SB 497 (Simitian, Chapter 292, Statutes of 2006) enacted the  
          Coastal Ecosystems Protection Act, which established interim and  
          final performance standards for detectable organisms in ballast  
          water discharge for large commercial ships with the purpose of  
          eliminating invasive species into state waters.

          AB 433 (Nation, Chapter 491, Statutes of 2003) cited the Ballast  
          Water Management for Control of Nonindigenous Species Law as the  
          Marine Invasive Species Act, consolidating and revising various  
          requirements for ballast water management practices to minimize  
          the release of nonindigenous species.
            
          SOURCE:                    California State Lands Commission  

           SUPPORT:               
          California Association of Port Authorities (CAPA)
          California Chamber of Commerce
          Cruise Lines International Association, Inc.








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          Maersk Line / Maersk Agency USA
          Pacific Merchant Shipping Association (PMSA)
           
           OPPOSITION:    
          None received  

           ARGUMENTS IN  
          SUPPORT:    According to the sponsor, "Ballast water discharge  
          and vessel biofouling of commercial ships are significant  
          vectors for the introduction of invasive species in coastal  
          environments.  Once established, invasive species can devastate  
          native aquatic life and cost hundreds of millions of dollars, if  
          not more, to control.  Attempts to eradicate species after they  
          have become established are often unsuccessful and  
          cost-prohibitive; therefore, prevention of species introductions  
          is the most effective approach to addressing invasive species.

          "In August 2014, the Commission approved a report assessing the  
          availability of treatment technologies to meet California's  
          performance standards for ballast water discharge.  The report  
          found that there are currently no viable options to meet all of  
          California's discharge standards. 

          "Approximately 15% of large vessels arriving at California ports  
          must discharge ballast water for operational or safety purposes.  
           No shore-based treatment facilities exist or are in development  
          in the United States, and shipboard treatment systems have not  
          demonstrated the ability to meet the California performance  
          standards.

          "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.  The delay also gives the Commission time to adopt  
          compliance assessment regulations that will give the shipping  
          industry guidance on how compliance will be assessed."  
           
                                      -- END --