MEMBER ALERT Shipowners Claims Bureau, Inc., Manager One Battery Park Plaza 31 st Fl., New York, NY 10004 USA Tel: +1 212 847 4500 Fax: +1 212 847 4599 www.american-club.com American Club Member Alert – January 23, 2017 1 JANUARY 23, 2017 NORTH AMERICAN AND US CARIBBEAN SEA ECA – UNDERSTANDING COMPLIANCE ISSUES Reference is made to Circular No. 39/14 of December 30, 2014, North American ECA and New Fuel Sulfur Content Requirements. The United States Environmental Protection Agency (EPA) has released a Frequently Asked Questions Guidance in response to a range of questions concerning requirements of the American and US Caribbean Sea Emissions Control Area, (ECA), as attached. The document specifically addresses exhaust gas cleaning systems (EGCS), low sulfur fuel requirements for diesel fuel engines, NOx Tier III for dual-fuel engines, and provides a reference for additional information about the EPA and Annex VI requirements. Members with vessels transiting the North American ECA are encouraged to follow the foregoing guidance. Office of Transportation and Air Quality EPA-420-F-16-055 December 2016 North American and U.S. Caribbean Sea ECA – Understanding Compliance Issues T his document addresses Annex VI compliance issues for a range of circumstances. Please note that this discussion is not meant to address every possible circumstance for the topics covered. Vessel operators are encouraged to contact EPA or U.S. Coast Guard before applying these responses for a particular set of circumstances. Exhaust Gas Cleaning Systems (EGCS) Keeping in mind application of the International Maritime Organization’s (IMO) Resolution MEPC.259(68) 2015 Guidelines for Exhaust Gas Cleaning Systems (EGCS), what are U.S. EPA requirements for the disposal of sludge from an EGCS? Sludge or residues generated in treating exhaust gas scrubber washwater discharge must not be discharged in waters subject to the VGP (i.e., including waters of the territorial sea up to a distance of three miles) and should be delivered ashore to adequate reception facilities. VGP 2.2.26. The United States further expects MARPOL Annex VI Regulation 4 equivalency approvals to be conditioned upon compliance with IMO guidelines, including IMO’s 2015 Guidelines for Exhaust Gas Cleaning Systems. See Regulation 4.3. The 2015 Guidelines at 10.4 explain that EGCS residues should not be discharged to the sea, and Annex VI prohibits incineration on board. For open loop EGCS, will EPA consider the effluent pH value based on a calculation (i.e., computational fluid dynamics) as described in IMO Resolution MEPC.259(68) 2015 Guidelines for Exhaust Gas Cleaning Systems? EPA clarified in the response to comments for the 2013 VGP that a computational calculation is not an approved method for demonstrating compliance with Vessel General Permit (VGP) pH requirements. (RTC, p.981). Frequently Asked Questions 2 Frequently Asked Questions For discharges of scrubber wash water effluent from open loop EGCS outside three miles but within an ECA, has EPA developed any additional requirements for scrubber wash water effluent pH outside the area where the VGP applies? EPA has not established requirements that apply to scrubber washwater effluent beyond the requirements implemented through the VGP. However, as noted above, the United States expects Regulation 4 equivalency approvals to be conditioned upon compliance with IMO guidelines, including IMO’s 2015 Guidelines for Exhaust Gas Cleaning Systems. See Regu