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Canada / New England Cruise Symposium
          “Green Cruising – Managing Environmental Impact”
                           June 9th, 2010




North West & Canada                         John Hansen, President
 Cruise Association
                                1
John Hansen, President, North West & Canada Cruise
 Association, Moderator


Michael Crye, Executive Vice President Technical & Regulatory
 Affairs, Cruise Lines International Association


Paul Topping, Manager Environmental Protection, Transport
 Canada


Rich Pruitt, Director, Environmental and Public Health
 Programs - Royal Caribbean International / Celebrity Cruises


Tom Dow, Vice President-Public Affairs, Carnival Corporation &
 PLC

                                     2
SHIP DEVELOPMENT




Princess Patricia : Year built 1962       Carnival Dream : Year built 2009


                                      3
Fundamentals for a viable & sustainable
            cruise sector

               Quality Product /Destinations


               Market Demand


               Health, Safety and Security


               Community Relations


               Environmental Protection

                     4
CANADA NEW ENGLAND
   CRUISE SYMPOSIUM


       “HOW IS THE
SHIPPING/CRUISE INDUSTRY
      REGULATED?”




           Michael Crye, EVP
 Cruise Lines International Association
                  (CLIA)

   5
REGULATORY BODIES

Bodies of the United Nations develop international
treaties:

         UN,
         IMO
          ILO
         WHO
          ISO
TREATIES
What are those treaties?

 A.   Law of the Sea Treaty (LOS)
 B.   Safety of Life at Sea Treaty (SOLAS)
 C.   International ship and Port Facilities Code (ISPS)
 D.   International Safety Management Code (ISM)
 E.   International Convention for the Prevention of Pollution
      form Ships (MARPOL)
 F.   Standards for Training Certification and Watchkeeping
      (STCW)
 G.   Consolidated Maritime Labour Convention (MLC) (not yet
      in effect)
 H.   International Health Regulations (IHR)
 I.   Ballast Water Convention (not yet in effect)
UNITED NATIONS
How do these agencies of the United
Nations develop these treaties?

 Member states, most of the countries of the world,
  collaborate and negotiate the treaties that control shipping
  actions throughout the world’s oceans.

 The treaties become law in a particular country when the
  country ratifies the treaties and incorporate them into their
   law.
UNITED NATIONS
How are the Conventions enforced?
                Flag State Enforcement
Each ship is registered in a particular country and if that country has
 ratified the convention, then it has the responsibility to enforce the
 convention.

The flags that CLIA ships fly include, Bahamas, Netherlands, UK,
 Bermuda, Panama, Marshall Islands, Malta. All have ratified the above
 conventions so they apply to the CLIA ships wherever they operate.

Many countries including the US and Canada delegate their inspection
 functions to organizations called classification societies like American
 Bureau of Shipping, Lloyd’s Register, Det Norske Veritas.
UNITED NATIONS
How are the Conventions enforced?
           Port State Control

Each of the above treaties is also subject to what
 is called port state control which means that
 when a ship visits a particular country,
 that country can enforce the requirements of the
 Convention on those ships in its waters.
UNITED NATIONS
How are the Conventions enforced?
             Domestic Laws
 Countries like Canada and the U.S. have their
  own laws that apply to ships that operate within
  their waters. These laws can be those which
  implement the Conventions and incorporate them
  into their laws like the U.S. Act to Prevent
  Pollution from Ships or the Clean Water Act or
  Clean Air Act. In Canada the Canada Shipping
  Act, Migratory Bird Act, and Regulations for the
  Prevention of Pollution from Ships and for
  Dangerous Chemicals are some examples.
MICHAEL CRYE
        EVP
  mcrye@cruising.org



  Washington D.C. Area Office:
2111 Wilson Boulevard, 8th Floor
   Arlington, Virginia 22201
        (703) 522-8463
Regulating vessel air emissions

Canada New England Cruise Ship Symposium
             June 9, 2010
             Paul Topping




                     13
Background
North American Emission Control Area
 • The North American Emission Control Area proposed by Canada,
   United States and France was adopted on March 26, 2010

 • It is the largest such area established by Parties to Annex VI of
   the MARPOL Convention (along coasts out to the 200 nautical
   limit, south of 60°N and Hawaii)

 • Its stringent standards are expected to reduce sulphur oxides by
   96 percent and nitrogen oxides up to 80 percent as well as
   reduce other pollutants

 • This approach will protect health of North Americans on both
   sides of the border

 • The measures will come into force in August 2012.
                                 14
North American Emission Control Area
                               Adopted March
                               26, 2010.
                               ___________

                               Includes waters
                               under the
                               jurisdictions of
                               Canada, the
                               United States,
                               and France.




                  15
Drivers
• Government of Canada Commitments on Clean Air and
  regulatory alignment with international standards
  - Accession to Annex VI to the International Convention for the Prevention of
    Pollution from Ships (MARPOL)
  - Adoption of the North American Emission Control Area

• A Harmonized Environmental Agenda for an Economically
  Integrated North America
  - North American Emission Control Area resolves US court case

• Transport Canada’s Moving Forward Policy to align with
  IMO Standards for vessels carrying international trade
• Support of Canada’s domestic fleet to modernize

                                      16
Key dates and provisions
• July 1, 2010, new MARPOL Annex IV
  - Baltic and North Sea ECA 1.5% to 1% sulphur
• January 1, 2011, new ships -Tier II NOx
• January 1, 2012, global sulphur level 3.5%
• August 1, 2012, North American ECA (1% sulphur)
• January 1, 2015, all ECAs reduced to 0.1%
• January 1, 2016, new ships in ECAs – Tier III NOx
• January 1, 2018, IMO review of low sulphur fuel
• January 1, 2020, global sulphur level to 0.5%
• January 1, 2025, alternate date for 0.5% sulphur
                                   17
Nitrogen oxide standards
• Tier I
  • 17.0 g/kWh when n is less than 130 rpm;
  • 45 · n(-0.2) g/kWh when n is 130 or more but less than 2,000 rpm;
  • 9.8 g/kWh when n is 2,000 rpm or more.

• Tier II
  • 14.4 g/kWh when n is less than 130 rpm;
  • 44 · n(-0.23) g/kWh when n is 130 or more but less than 2,000 rpm;
  • 7.7 g/kWh when n is 2,000 rpm or more.

• Tier III*
  • 3.4 g/kWh when n is less than 130 rpm;
  • 9 · n(-0.2) g/kWh when n is 130 or more but less than 2,000 rpm;
  • 2.0 g/kWh when n is 2,000 rpm or more;

• * IMO to carry out review between 2012 and 2013
                             18
Technical options for compliance: sulphur
 • Sulphur levels in fuel are a performance standard

 • Compliance can be meet by
   - Low sulphur fuel
      • Distillates
      • Alternative fuels
   - Emission control systems
   - IMO Guidelines to assess emission control systems


 • Option for fuel with next lowest sulphur content if
   compliant fuel cannot be found

                                    19
Vessel Air Emissions in the Great Lakes
• US introduced increased air emissions standards for
  vessels operating in the Great Lakes in the December
  2009 rules to implement the North American ECA

• US subsequently moved to exempt certain vessels.

• Canadian regulations to implement the North American
  ECA will also address emissions in the Great Lakes

• Improved environmental standards are consistent with
  Government of Canada commitments

• Canada seeks a bi-national approach to air emission
  regulations in consultation with industry
                                20
Next steps
1) 1) Detailed Assessment of Options
  Alignment of regulatory options with Government of Canada
  policy commitments and considerations
  -   Overall SOx and NOx reductions, harmonization of approach, health
      improvements, environmental improvements, competitiveness of domestic fleet,
      fleet renewal

  Ease of industry compliance
  -   Available technologies and fuels, cost of implementation, level of complexity

  Government capacity to implement regulations

2) 2) Decision on option for the Great Lakes in November


                                         21

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Green Cruising John Hansen, Michael Crye, Paul Topping

  • 1. Canada / New England Cruise Symposium “Green Cruising – Managing Environmental Impact” June 9th, 2010 North West & Canada John Hansen, President Cruise Association 1
  • 2. John Hansen, President, North West & Canada Cruise Association, Moderator Michael Crye, Executive Vice President Technical & Regulatory Affairs, Cruise Lines International Association Paul Topping, Manager Environmental Protection, Transport Canada Rich Pruitt, Director, Environmental and Public Health Programs - Royal Caribbean International / Celebrity Cruises Tom Dow, Vice President-Public Affairs, Carnival Corporation & PLC 2
  • 3. SHIP DEVELOPMENT Princess Patricia : Year built 1962 Carnival Dream : Year built 2009 3
  • 4. Fundamentals for a viable & sustainable cruise sector Quality Product /Destinations Market Demand Health, Safety and Security Community Relations Environmental Protection 4
  • 5. CANADA NEW ENGLAND CRUISE SYMPOSIUM “HOW IS THE SHIPPING/CRUISE INDUSTRY REGULATED?” Michael Crye, EVP Cruise Lines International Association (CLIA) 5
  • 6. REGULATORY BODIES Bodies of the United Nations develop international treaties: UN, IMO  ILO WHO  ISO
  • 7. TREATIES What are those treaties? A. Law of the Sea Treaty (LOS) B. Safety of Life at Sea Treaty (SOLAS) C. International ship and Port Facilities Code (ISPS) D. International Safety Management Code (ISM) E. International Convention for the Prevention of Pollution form Ships (MARPOL) F. Standards for Training Certification and Watchkeeping (STCW) G. Consolidated Maritime Labour Convention (MLC) (not yet in effect) H. International Health Regulations (IHR) I. Ballast Water Convention (not yet in effect)
  • 8. UNITED NATIONS How do these agencies of the United Nations develop these treaties? Member states, most of the countries of the world, collaborate and negotiate the treaties that control shipping actions throughout the world’s oceans. The treaties become law in a particular country when the country ratifies the treaties and incorporate them into their law.
  • 9. UNITED NATIONS How are the Conventions enforced? Flag State Enforcement Each ship is registered in a particular country and if that country has ratified the convention, then it has the responsibility to enforce the convention. The flags that CLIA ships fly include, Bahamas, Netherlands, UK, Bermuda, Panama, Marshall Islands, Malta. All have ratified the above conventions so they apply to the CLIA ships wherever they operate. Many countries including the US and Canada delegate their inspection functions to organizations called classification societies like American Bureau of Shipping, Lloyd’s Register, Det Norske Veritas.
  • 10. UNITED NATIONS How are the Conventions enforced? Port State Control Each of the above treaties is also subject to what is called port state control which means that when a ship visits a particular country, that country can enforce the requirements of the Convention on those ships in its waters.
  • 11. UNITED NATIONS How are the Conventions enforced? Domestic Laws Countries like Canada and the U.S. have their own laws that apply to ships that operate within their waters. These laws can be those which implement the Conventions and incorporate them into their laws like the U.S. Act to Prevent Pollution from Ships or the Clean Water Act or Clean Air Act. In Canada the Canada Shipping Act, Migratory Bird Act, and Regulations for the Prevention of Pollution from Ships and for Dangerous Chemicals are some examples.
  • 12. MICHAEL CRYE EVP mcrye@cruising.org Washington D.C. Area Office: 2111 Wilson Boulevard, 8th Floor Arlington, Virginia 22201 (703) 522-8463
  • 13. Regulating vessel air emissions Canada New England Cruise Ship Symposium June 9, 2010 Paul Topping 13
  • 14. Background North American Emission Control Area • The North American Emission Control Area proposed by Canada, United States and France was adopted on March 26, 2010 • It is the largest such area established by Parties to Annex VI of the MARPOL Convention (along coasts out to the 200 nautical limit, south of 60°N and Hawaii) • Its stringent standards are expected to reduce sulphur oxides by 96 percent and nitrogen oxides up to 80 percent as well as reduce other pollutants • This approach will protect health of North Americans on both sides of the border • The measures will come into force in August 2012. 14
  • 15. North American Emission Control Area Adopted March 26, 2010. ___________ Includes waters under the jurisdictions of Canada, the United States, and France. 15
  • 16. Drivers • Government of Canada Commitments on Clean Air and regulatory alignment with international standards - Accession to Annex VI to the International Convention for the Prevention of Pollution from Ships (MARPOL) - Adoption of the North American Emission Control Area • A Harmonized Environmental Agenda for an Economically Integrated North America - North American Emission Control Area resolves US court case • Transport Canada’s Moving Forward Policy to align with IMO Standards for vessels carrying international trade • Support of Canada’s domestic fleet to modernize 16
  • 17. Key dates and provisions • July 1, 2010, new MARPOL Annex IV - Baltic and North Sea ECA 1.5% to 1% sulphur • January 1, 2011, new ships -Tier II NOx • January 1, 2012, global sulphur level 3.5% • August 1, 2012, North American ECA (1% sulphur) • January 1, 2015, all ECAs reduced to 0.1% • January 1, 2016, new ships in ECAs – Tier III NOx • January 1, 2018, IMO review of low sulphur fuel • January 1, 2020, global sulphur level to 0.5% • January 1, 2025, alternate date for 0.5% sulphur 17
  • 18. Nitrogen oxide standards • Tier I • 17.0 g/kWh when n is less than 130 rpm; • 45 · n(-0.2) g/kWh when n is 130 or more but less than 2,000 rpm; • 9.8 g/kWh when n is 2,000 rpm or more. • Tier II • 14.4 g/kWh when n is less than 130 rpm; • 44 · n(-0.23) g/kWh when n is 130 or more but less than 2,000 rpm; • 7.7 g/kWh when n is 2,000 rpm or more. • Tier III* • 3.4 g/kWh when n is less than 130 rpm; • 9 · n(-0.2) g/kWh when n is 130 or more but less than 2,000 rpm; • 2.0 g/kWh when n is 2,000 rpm or more; • * IMO to carry out review between 2012 and 2013 18
  • 19. Technical options for compliance: sulphur • Sulphur levels in fuel are a performance standard • Compliance can be meet by - Low sulphur fuel • Distillates • Alternative fuels - Emission control systems - IMO Guidelines to assess emission control systems • Option for fuel with next lowest sulphur content if compliant fuel cannot be found 19
  • 20. Vessel Air Emissions in the Great Lakes • US introduced increased air emissions standards for vessels operating in the Great Lakes in the December 2009 rules to implement the North American ECA • US subsequently moved to exempt certain vessels. • Canadian regulations to implement the North American ECA will also address emissions in the Great Lakes • Improved environmental standards are consistent with Government of Canada commitments • Canada seeks a bi-national approach to air emission regulations in consultation with industry 20
  • 21. Next steps 1) 1) Detailed Assessment of Options Alignment of regulatory options with Government of Canada policy commitments and considerations - Overall SOx and NOx reductions, harmonization of approach, health improvements, environmental improvements, competitiveness of domestic fleet, fleet renewal Ease of industry compliance - Available technologies and fuels, cost of implementation, level of complexity Government capacity to implement regulations 2) 2) Decision on option for the Great Lakes in November 21