1 

### Stout, Alan

Subject: FW: EPA's draft regulatory amendments

From: Taricco, Peggy@ARB [mailto:peggy.tarrico@arb.ca.go v] Sent: Tuesday, September 23, 2014 2:59 PM
To: Stout, Alan
Cc: Donohoue, Dan@ARB; Milkey, Paul@ARB; Samulski, Mic hael Subject: RE: EPA's draft regulatory amendments

Hi Alan – Thank you for sharing the redraft with us . Based on our review, the changes are responsive to our comments and we are ok with the revised approach. Thank yo u for addressing our concerns. Do you need anythi ng else from us? Thanks, Peggy

From: Stout, Alan [ mailto:stout.alan@epa.gov ] Sent: Thursday, September 11, 2014 12:08 PM To: Taricco, Peggy@ARB Cc: Donohoue, Dan@ARB; Milkey, Paul@ARB; Samulski, Mic hael Subject: RE: EPA's draft regulatory amendments

Peggy, I came close to getting things lined up to send you an updated draft before I left for vacation, but t hat didn’t work out. In the meantime, we were able to get some add itional internal review to confirm a revised approa ch. The attached draft shows an updated set of changes to part 1043. The noteworthy changes involved removing all the edits from §1043.1 and 1043.55, which should address the prin cipal issues you and your colleagues raised. We ho pe that the remaining content is truly mundane. We’ll be eager to hear back to see whether you agree. It would be best if we could get some feedback next week, but do what you can.

The redline text shows what will change relative to the CFR. I can create a redline showing what has changed since the last version if that is better for you. Feel free to distribute to the other participants from the co nference, at your discretion.

Alan

From: Taricco, Peggy@ARB [ mailto:peggy.tarrico@arb.ca.gov ] Sent: Thursday, August 28, 2014 12:57 PM
To: Stout, Alan
Cc: Donohoue, Dan@ARB; Milkey, Paul@ARB Subject: RE: EPA's draft regulatory amendments

Hi Alan – During our conference call a couple weeks ago with SCAQMD, EPA, and ARB I believe the action item was for EPA to revise the draft proposal based on our discu ssion and then share with us – what is the status o n that? Thanks, Peggy

From: Stout, Alan [ mailto:stout.alan@epa.gov ] Sent: Thursday, August 07, 2014 1:39 PM To: Taricco, Peggy@ARB Cc: Donohoue, Dan@ARB; Revelt, Jean-Marie; Aranda, Amb er; Samulski, Michael; Kerns, Deborah@ARB; Milkey,2 Paul@ARB Subject: RE: EPA's draft regulatory amendments

Let’s do it – Aug. 12 @ 11:30 PDT. Should we set u p a call-in number?

From: Stout, Alan [ mailto:stout.alan@epa.gov ] Sent: Thursday, August 07, 2014 4:07 AM To: Taricco, Peggy@ARB Cc: Donohoue, Dan@ARB; Revelt, Jean-Marie; Aranda, Amb er; Samulski, Michael Subject: RE: EPA's draft regulatory amendments

Peggy, I would hope we could start with a conference call to get all the interested people together to compar e notes before you go through the effort to coordinate input that comm its ARB to a formal position. Timing looks good if we want to set something up for next Monday or Tuesday.

If/when you send input, e-mail is best. We can cer tainly allow for an exchange through next week.

Alan

From: Taricco, Peggy@ARB [ mailto:peggy.tarrico@arb.ca.gov ] Sent: Wednesday, August 06, 2014 4:19 PM
To: Stout, Alan
Cc: Donohoue, Dan@ARB Subject: RE: EPA's draft regulatory amendments

Hi Alan – We have discussed internally the proposed amendments here at ARB and we do have concerns wit h the proposal and will be providing you with comments. Would you like them via a formal letter or by email ? Also, we will try our best to get them to you by the end of the w eek but it may end up being next week – is that ok with you? Thanks, Peggy

From: Stout, Alan [ mailto:stout.alan@epa.gov ] Sent: Thursday, July 24, 2014 8:52 AM To: bvahey@vesselalliance.com ; bwoodthomas@worldshipping.org ; Joe.Angelo@intertanko.com ; nbm@bimco.org ; kmetcalf@knowships.org ; tgarrett@pmsaship.com ; weakley@lcaships.com ; tfrench@emamail.org ; TJ Tarabulski; Naomi.Katsumi@ec.gc.ca ; paul.topping@tc.gc.ca ; Taricco, Peggy@ARB Cc: Sutton, Tia; Revelt, Jean-Marie; Samulski, Michael Subject: EPA's draft regulatory amendments

Dear colleagues, The attached file includes a variety of draft amend ments to EPA’s regulations for marine diesel engine s and vessels in 40 CFR part 1043. These amendments involve several co rrections, clarifications, and minor adjustments to the regulations, most notably to reference the updated version of MA RPOL Annex VI. We do not anticipate that any of th ese changes add new requirements or involve any controversial e lements. We therefore intend to include them in a direct final rule that we hope to complete later this year. Since th is rulemaking process depends on us not receiving adverse comment s, we want to share the draft language just to make su re people have a chance to weigh in before we go ah ead with the published final rule. Feel free to share this with others as appropriate to help us make sure everyth ing is on target.

If we can get any comments on the draft text by Aug ust 8, that would keep us on a good track for finis hing the rule in an orderly timeframe.

Thanks for your help.

Alan3 _______________

Alan Stout U.S. EPA Office of Transportation and Air Quality 2000 Traverwood Dr. Ann Arbor, MI 48105 734-214-4805 734-214-4816 (fax) stout.alan@epa.gov www.epa.gov/otaq/

### PART 1043—CONTROL OF NOx, SOx, AND PM EMISSIONS FRO M MARINE

ENGINES AND VESSELS SUBJECT TO THE MARPOL PROTOCOL 1001. The authority citation for part 1043 is revised to read as follows: Authority: 33 U.S.C. 1901– 19121915

.

1002. Section 1043.5 is amended by removing and reserving paragraph (b). §1043.5 Effective dates. * * * * * (b) [Reserved]The amendments to Annex VI adopted on Oct ober 8, 2008 enter into force July 1, 2010. The requirement of APPS for marine vessels t o comply with the amended Annex VI is effective July 1, 2010, although some requirements do not become applicable until later dates. * * * * *

1003. Section 1043.10 is amended by revising paragraphs ( a)(2) introductory text, (a)(2)(iii), and (b)(2) to read as follows: §1043.10 Applicability. (a) * * * (2) Vessels that operate only domestically and conf orm to the requirements of this paragraph (a)(2) are excluded from Regulation 13 of Annex VI (including the requirement to obtain an EIAPP certificate) and the NOx-related requirements of this part (including the requirement to obtain an EIAPP certificate and to keep a Technical File and an Engine Book of Record Parameters) . For the purpose of this exclusion, the phrase “o perate only domestically” means the vessels do not enter waters subject to the jurisdic tion or control of any foreign country, except for Canadian portions of the Great Lakes. (See §§1 043.60 and 1043.70 for provisions related to fuel use by such vessels). To be excluded, the ves sel must conform to each of the following provisions: * * * * * (iii) Any engine installed in the vessel that is no t covered by an EIAPP certificate must be labeled as specified in 40 CFR 1042.135 with respec t to whether it meets the requirements of Regulation 13 of Annex VI. (b) * * * (2) For non-public vessels flagged by a country th at is not a party to Annex VI, the requirements of this part apply in the same manner as apply for Party vessels, except as otherwise provided in this part. For example, see §1043.30 (b)(3) (c)(4) for provisions related to showing compliance with this requirement without an EIAPP certificate. See §1043.60 for specific operating requirements. * * * * *

1004. Section 1043.20 is amended by revising the definiti ons for “2008 Annex VI”, “Emission control area (ECA)”, and “Public vessels” to read a s follows: § 1043.20 Definitions. * * * * * 2008 Annex VI

means Annex VI to the MARPOL Protocol, including a mendments adopted through April 2014in October 2008. The 2008 Annex VI is ( incorporated by reference in §1043.100 ) . Note that this version of Annex VI does not incl ude any amendments that may be

### adopted in the future. This 2008 version applies fo r certain provisions of this part such as those

applicable for internal waters and for non-Party ve ssels. * * * * * Emission control area (ECA) means an area designated pursuant to Annex VI as a n Emission Control Area that : (1) is in force ; and (2) includes waters of the U.S. territorial s ea and/or EEZ

. * * * * * Public vessels means warships, naval auxiliary vessels, and other vessels owned or operated by a sovereign country when engaged in noncommercial ser vice. Vessels with a national security exemption under 40 CFR 80.606 or 1042.635 are deeme d to be public vessels. * * * * *

1005. Section 1043.40 is amended as follows: a. By redesignating paragraphs (d), (e), and (f) as paragraphs (e), (f), and (g). b. By adding a new paragraph (d). c. By revising the redesignated paragraph (g). § 1043.40 EIAPP certificates. * * * * * (d) EPA may issue both an EPA certificate and an EI APP certificate for the same engine, as long as the manufacturer and the engine meet all applica ble requirements. EPA may not issue an EIAPP certificate if the engine is certified with a n FEL under 40 CFR part 1042 that is higher than the applicable NOx emission standard under Ann ex VI. ( ed ) The process for obtaining an EIAPP certificate is described in §1043.41. That section references regulations in 40 CFR part 1042, which a pply under the Clean Air Act. References in that part to certificates of conformity are deemed to mean EIAPP certificates. References in that part to the Clean Air Act as the applicable statute are deemed to mean 33 U.S.C. 1901–1915. ( fe ) For engines that undergo a major conversion or fo r engines installed on imported vessels that become subject to the requirements of this part, we may specify alternate certification provisions consistent with the intent of this part. ( gf ) This paragraph ( gf

) applies for engines that were originally excluded from this part because they were intended for domestic use and were introd uced into U.S. commerce without an EIAPP certificate. Note that such engines must be labeled as specified under 40 CFR 1042.135 to indicate that they are intended for domestic use. S uch engines may be installed on vessels not intended only for domestic operation provided the e ngine manufacturer, vessel manufacturer, or vessel owner obtains an EIAPP certificate. Similarl y, vessels originally intended only for domestic operation may be used internationally prov ided the engine manufacturer, vessel manufacturer, or vessel owner obtains an EIAPP cert ificate. The limitations for engine manufacturers described in paragraphs (a) and (d) o f this section also apply for all EIAPP certificates issued under this paragraph (g). In either case, the Technical File must specify tha t the engine was originally certified for domestic us e only, prior to being covered by an EIAPP certificate. Engine manufacturers may provide a sup plemental label to clarify that the engine is no longer limited to domestic service. An engine ma nufacturer, vessel manufacturer, or vessel owner may also ask to apply the provisions of this paragraph (g) to engines originally certified for public vessels.

1006. Section 1043.60 is amended by revising paragraphs ( a) and (b) to read as follows: §1043.60 Operating requirements for engines and ves sels subject to this part.

### (a) Except as specified otherwise in this part, NOx emission limits apply to all vessels subject to

this part as specified in the following table: Table 1 to §1043.60 Annex VI NOx Emission Standards (g/kW-hr)

Tier Area of Applicability Implementation Date a Maximum In-Use Engine Speed

Less than 130 RPM 130-2000

RPM ab Over 2000

RPM Tier 1I All U.S. navigable waters

and EEZ January 1, 2004

- December 31, 2010 17.0 45.0

· n (

- 0.20) 9.8

Tier 2II All U.S. navigable waters

and EEZ January 1, 2011

- December 31, 2015 14.4 44.0

· n (

- 0.23) 7.7

Tier 2II All U.S. navigable waters

and EEZ,exluding ECA and ECA associated areas January 1, 2016 and later 14.4 44.0

· n (

- 0.23) 7.7

Tier 3III ECA and ECA associated

areas January 1, 2016 and later c 3.4 9.0

· n (

- 0.20) 2.0

a Standards apply for engines installed on vessels w ith a build date in the specified time frame, or fo r engines that undergo a major conversion in the spec ified time frame.

ab Applicable standards are calculated from n (maximum in-use engine speed, in RPM, as specified in §1042.140). Round the standards to one decimal pla ce.

c In the case of recreational vessels of less than 5 00 gross tonnage with length at or above 24 meters, the Tier III standards start to apply January 1, 20 21.



### (b) Except as specified otherwise in this part, fu el sulfur limits apply to all vessels subject to th is part as specified in the following table:

Table 2 to §1043.60 Annex VI Fuel Sulfur Limits (wt %) a

Calendar Years Sulfur Limit in all U.S. navigable waters and EEZ Sulfur Limit in ECA and ECA associated areas 2010-2011 4.50% 1.00% 2012- 20142015 3.50% 1.00% 20152016 -2019 3.50% 0.10% 2020 and later 0.50% 0.10%

a Note that Regulation 3 and Regulation 4 of Annex V I allow for the use of noncompliant fuel in certain circumstances. 

### * * * * *

1007. Section 1043.80 is amended by revising paragraph (b )(9) to read as follows: §1043.80 Recordkeeping and reporting requirements for fuel suppliers. * * * * * (b) Except as allowed by paragraph (c) of this sect ion, the bunker delivery note must contain the following: (9) A signed statement by an authorized representat ive of the fuel supplier certifying that the fuel supplied conforms to Regulations 14 and 18 of Annex VI consistent with it s designation, intended use, and the date on which it is to be use d. For example, with respect to conformity to Regulation 14 of Annex VI, a fuel designated and intended for use in an ECA any time on or after between July 1, 2010 and January 1

, 2015 may not have a sulfur content above 0.101.00 weight percent. This statement is not required where if the vessel is not subject to fuel standards of Regulation 14 of Annex VIconforms to the requirements of §1043.55

. The statement described in this paragraph (b)(9) is dee med to be a submission to EPA.

### * * * * *

1008. Section 1043.95 is amended by revising the section heading, the introductory text, and paragraph (b)(1)(ii) to read as follows: § 1043.95 Interim Great Lakes provisions. The interim provisions of this section apply for vessels operat ing exclusively in the Great Lakes. * * * * * (b) * * * (1) * * * (ii) We may approve the use of an engine meeting le ss stringent standards if the owner can demonstrate that it took possession of the engine b efore October 30, 2009, and that engine is a new engine that has not been installed in a non-mar ine application. Such an engine must at a minimum be certified to the Annex VI NOX emission s tandard referenced in §1043.60 that applies based on its build date. * * * * *

1009. A new § 1043.97 is added to part 1043 to read as fo llows: § 1043.97 Interim provisions. (a) The fuel-related requirements under APPS for op eration in ECAs and ECA-associated areas do not apply until January 1, 2020 for steamships b uilt on or before August 1, 2011 if they are powered by propulsion boilers that were not origina lly designed for continued operation on marine distillate fuel or natural gas. (b) [Reserved]

1010. Section 1043.100 is amended by revising paragraph ( a) to read as follows: §1043.100 Reference materials. * * * * * (a) IMO material. This paragraph (a) lists materia l from the International Maritime Organization that we have incorporated by reference. Anyone may purchase copies of these materials from the International Maritime Organization, 4 Albert E mbankment, London SE1 7SR, United Kingdom, or www.imo.org, or 44-(0)20-7735-7611. (1) Revised MARPOL Annex VI, Regulations for the Pr evention of Air Pollution from Ships, 2013 Edition, and NOx Technical Code 2008 , 2009 edition

. (i) Revised MARPOL Annex VI, Regulations for the Pr evention of Pollution from Ships

, 2013 Edition (“2008 Annex VI”); IBR approved for §1043.1, 1043. 20, 1043.30(f), and 1043.60(c), and 1043.70(a). (ii) NOx Technical Code 2008 , 2013 Edition (“NOx Technical Code”); IBR approved for §§1043.20, 1043.41(b) and (h), and 1043.70(a). (iii) Annex 12, Resolution MEPC.251(66) from the Re port of the Marine Environment Protection Committee on its Sixty-Sixth Sesson, Apr il 25, 2014. This document describes new and revised provisions that are consi dered to be part of Annex VI and NOx Technical Code 2008 as referenced in paragraphs (a) (1)(i) and (ii) of this section. (2) [Reserved] * * * * *