1 Stout, Alan

From: Stout, Alan Sent: Thursday, July 24, 2014 11:52 AM To: bvahey@vesselalliance.com; bwoodthomas@worldshippin g.org; Joe.Angelo@intertanko.com; nbm@bimco.org; kmetcalf@knowships.org; tgarrett@pms aship.com; weakley@lcaships.com; tfrench@emamail.org; TJ Tarabulski; Naomi.Katsumi@e c.gc.ca; paul.topping@tc.gc.ca; ptaricco@arb.ca.gov Cc: Tia Sutton; Jean-Marie Revelt; Samulski, Michael Subject: EPA's draft regulatory amendments Attachments: 1043 DFRM amendments 07 24 2014.docx

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 this rulemaking process depends on us not rec eiving adverse comments, 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.

Alan

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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

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1002. Section 1043.1 is revised to read as follows: §1043.1 Overview. (a) The Act to Prevent Pollution from Ships (APPS) requ ires engine manufacturers, owners and operators of vessels, and other persons to comply w ith Annex VI of the MARPOL Protocol. (b) This part 1043 describes certain provisions for implements po rtions of APPS as it relates to Regulations 13, 14 and 18 of Annex VI. These regulations clarify the application of some A nnex VI provisions; provide procedures and criteria for the issuance of EIAPP certificates; and specify requirements applicable to ships that are not regis tered by Parties to Annex VI. If any portion of this part 1043 contradicts current or future provis ions in Annex VI, the provisions of Annex VI take precedence over this part 1043.This part inclu des provisions to apply the equivalency provisions of Regulation 4 of Annex VI with respect to Regulations 14 and 18 of Annex VI. Additional regulations may also apply with respect to the Annex VI, such as those issued separately by the U.S. Coast Guard (as noted in §1043.55, in particular) . Note that references in this part 1043 to a specific subsection of an Annex VI regulation (such as Regulation 13.5.1) reflect the regulation numbering of the 2008 Annex VI (incorporated by reference in §1043.100). ( ca ) The general requirements for non-public U.S.-flag ged and other Party vessels are specified in Annex VI, as implemented by 33 U.S.C. 1901-1915. These requirements apply to engine manufacturers, owners and operators of vessels, and other persons. ( db ) The provisions of this part 1043 specify how Regulations 13, 14 and 18 of Annex VI, as implemented by APPS, will be applied to U.S.-flagge d vessels that operate only domestically. ( ec ) This part 1043 implements section 33 U.S.C. 1902(e) by specifying that non-public vessels flagged by a country that is not a party to Annex V I are subject to certain provisions under this part 1043 that are equivalent to the substantive requirements of Regulations 13, 14 and 18 of Annex VI as implemented by APPS. ( fd ) This part 1043 also describes where the requirements of Regulation 13.5.1 of Annex VI and Regulation 14.4 of Annex VI will apply. ( gd ) This part 1043 does not limit the requirements s pecified in Annex VI, as implemented by APPS, except as specified in §1043.10(a)(2) and (b) (3). ( he ) Nothing in this part 1043 limits the operating requirements and restrictions applicable for engines and vessels subject to 40 CFR part 1042 or the requirements and restrictions applicable for fuels subject to 40 CFR part 80. ( if ) The provisions of this part 1043 specify how to obtain EIAPP certificates and certif icates for Approved Methods.

1003. 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.
* * * * *1004. 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.
* * * * *

1005. 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 include 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.
* * * * *

1006. 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.

1007. Section 1043.55 is revised to read as follows: §1043.55 Exceptions, exemptions, and equivalentsApplying equ ivalent controls instead of complying with fuel requirements

. (a) Regulation 3.1 of Annex VI provides for certain exceptions from the requirements of Annex VI for the purposes of securing the safety of the s hip or saving life at sea and emissions related to vessel damage. Regulation 3.2 allows an Administra tion to approve a temporary exemption from specific provisions of Annex VI related to a t rial for engine design programs and development of ship emission reduction and control technology, subject to certain specified
conditions. (b) Regulation 4 of Annex VI allows Administrations to approve the use of fuels not meeting the requirements of Regulation 14 of the Annex, provide d the vessel applies a method that results in equivalent emission reductions. (c) APPS assigns authority and responsibility for R egulation 3 and Regulation 4 implementation to the U.S. Coast Guard. This section describes pr ovisions related to applying this allowance. (a) Any person may request approval of such equival ent methods for controlling emissions onU.S.-flagged vessels by submitting an application f or certification of an equivalent control method to the Designated Certification Officer. If we determine that your control method achieves emission levels equivalent to those achiev ed by the use of fuels meeting the requirements of Regulation 14 of Annex VI, we will issue a certificate and notify IMO that your
method has been certified. (b) The provisions of this paragraph (b) apply for vessels equipped with controls certified by the Administration of a foreign flag vessel to achieve emission levels equivalent to those achieved by the use of fuels meeting the applicable fuel sul fur limits of Regulation 14 of Annex VI. Fuels not meeting the applicable fuel sulfur limits of Re gulation 14 of Annex VI may be used on such vessels consistent with the provisions of the IAPP certificate, APPS and Annex VI. ( dc ) Compliance with the requirements of this section do es The provisions of this section do not affect the applicability of requirements or prohibi tions specified by other statutes or regulations with respect to water pollution.

1008. Section 1043.60 is amended by revising paragraphs ( a) and (b) and removing and reserving paragraph (d) to read as follows: §1043.60 Operating requirements for engines and ves sels subject to this part. (a) The NOx emission limits specified in Annex VI apply to vessels as specified in § 1043.1: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
Model Year 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,
20004 -– 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 3.4 9.0
· n (

- 0.20) 2.0

a Standards apply for engines installed on vessels with a build date in the specified time frame, or for engines that undergo a major conversion in t he specified 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 on e decimal place.

(b) Except as specified otherwise in this part, The fuel sulfur limits specified in Annex VI apply

to all vessels subject to this part as specified in § 1043.1.the following table:

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

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%
2012-2015 3.50% 1.00%2016-2019 3.50% 0.10%
2020 and later 0.50% 0.10%

* * * * * (d) [Reserved]This paragraph (d) applies for vessels th at are excluded from Regulation 13 of Annex VI and the NOX-related requirements of this p art under §1043.10(a)(2) or (b)(3) because they operate only domestically. Where the vessels o perate using only fuels meeting the specifications of 40 CFR part 80 for distillate fue l, they are deemed to be in full compliance with the fuel use requirements and prohibitions of this part and of Regulations 14 and 18 of Annex VI.
* * * * *

1009. 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 between July 1, 2010 and January 1 2015 may not hav e a sulfur content above 1.00 weight percent. This statement is not required where if the vessel is not subject to fuel standards of Regulation 14 of Annex VI as described in conforms to the requirements of §1043.55. The statement described in this paragraph (b)(9) is dee med to be a submission to EPA.
* * * * *

1010. Section 1043.95 is amended by revising the section heading and the introductory text 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.
* * * * *

1011. 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 in ECAs and ECA-associated areas do not apply until January 1, 2020 for steams hips built built on or before August 1, 2011 if they are powered by propulsion boilers that were no t originally designed for continued operation on marine distillate fuel or natural gas. (b) [Reserved]

1012. 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 (“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 an revised provisions that are consid ered to be part of 2008 Annex VI and the NOx Technical Code as referenced in paragraphs (a)(1)(i) and (ii) of this section. (2) [Reserved]
* * * * *