August 6, 2004
Volume 61, No. 16
Download Newsletter
(
PDF)
Agency Actions
- AWO Urges U. S. Coast Guard to Suspend Ballast Water Reporting
Rule
- Coast Guard Requires Ballast Water Management Plans
- Coast Guard Cautions Massachusetts Governor About Preemption
Concerns
- CTAC Accepting Applicants
Legislative
News
- Coast Guard Authorization Bill Awaits President's Signature
Association
News
- Midwest/Ohio Valley Joint Regional Meeting Set for Aug. 18-19
- Did You Know?
- Important Dates and Reminders
In
the News
- "River Shutdown for Lock Repairs Will Back Up Barges"
- Minnesota's Governor, Senator Call for New Locks
Responsible
Carrier News
Regional
Reports
- Lock 27 and McAlpine Lock Shut Down for Repairs
- AWO Submits Comments on Draft UMR-IWW Navigation Study Report
- Illinois Legislature Finishes Budget; Repeal of Motor Fuel
Tax Exemption for Towing Industry Rejected
Agency
Actions
AWO Urges U. S. Coast Guard to Suspend Ballast
Water Reporting Rule
With members facing a burdensome requirement to file
hundreds of thousands of ballast water reports of dubious scientific
value, AWO met with RADM Tom Gilmour, U.S. Coast Guard Assistant
Commandant for Marine Safety, Security, and Environmental Protection,
on August 3 to request a suspension of the August 13 implementation
date for the ballast water reporting requirements for vessels operating
exclusively within U.S. waters. The Coast Guard advised that while
the August 13 implementation date will stand, the agency is committed
to working with AWO over the next several days to develop policy
and enforcement guidance that will alleviate the reporting burdens
for towing vessel and barge operators.
At the outset of the meeting with RADM Gilmour, Jennifer
Carpenter, AWO Senior Vice President-Government Affairs and Policy
Analysis, described the very real and significant burden the reporting
requirements place on the barge and towing industry. While expressing
AWO's commitment to safety and environmental protection, AWO noted
that under the broad definitions and limited exemption provisions
provided in the rule, ballast water reporting requirements could
be applied to nearly 4,000 towing vessels and 25,000 dry and liquid
cargo barges accounting for hundreds of thousands of "voyages" annually
- including vessels that have no ballast water on board, take on
ballast water only very infrequently under limited circumstances,
operate on a single river system, and/or do not carry ballast water
from one location to another.
During the meeting, the Coast Guard articulated several
policy interpretations that would reduce the reporting burden on
towing vessel and barge operators:
- The Coast Guard advised that the definition of "ballast tank"
means any tank or hold on a vessel that is used for carrying ballast
water. Vessels equipped with tanks or voids that could be, but
never are, used as ballast tanks (for example, coated void spaces
in double hull tank barges) will not be subject to the reporting
requirements.
- The Coast Guard clarified that ballast water is water used
to affect the stability and trim of a vessel. Thus, river or rain
water that leaks into or collects in the wing tanks of a dry cargo
barge would not be considered ballast water and would not trigger
the reporting requirements.
- The Coast Guard suggested that vessels with ballast tanks that
carry water for stability, but that only exchange that water infrequently
(when the vessel is in drydock for repair or inspection, for example)
should not be required to file reports.
- The Coast Guard suggested that barges equipped with ballast
tanks be required to submit reports only when the barge anchors
or moors in another Captain of the Port (COTP) Zone for the purpose
of conducting cargo operations there. A report would not be required
when a barge is moved to another COTP Zone for fleeting and does
not conduct cargo operations. In addition, a towing vessel equipped
with ballast water tanks would be required to file before arriving
at its final destination, not in every COTP Zone in which it stops
on its way to its final destination. (For example, a towing vessel
transiting from St. Paul to New Orleans would only need to file
a report before arrival in New Orleans, even if it stops in several
COTP Zones along the way.)
- Finally, the Coast Guard clarified that reporting requirements
are not triggered if a vessel operates exclusively within one
COTP Zone, even if the vessel conducts ballast water operations
within that COTP Zone.
AWO will meet with the Coast Guard on Friday, August
6, to discuss the specifics of the forthcoming policy guidance,
including any additional scenarios for which reporting requirements
could be eliminated or alleviated, alternatives to the ballast water
reporting form that are appropriate for towing vessel and barge
operations, and appropriate recordkeeping methods for unmanned barges.
The Coast Guard will publish a policy letter delineating these items
by the August 13 effective date. As part of the policy guidance,
the Coast Guard has also indicated that it will develop revised
enforcement guidance for vessels operating exclusively within the
EEZ.
In comments on the notice of proposed rulemaking,
AWO had requested that the Coast Guard phase in enforcement for
domestic vessel operators, and not move immediately to impose fines
and criminal penalties for non-reporting, as the final rule provides.
AWO will advise members via email as soon as the details of the
forthcoming policy guidance are finalized. AWO members with questions
about the ballast water reporting rule should contact Jennifer Carpenter
or Amy Brandt at 703-841-9300.
Coast Guard Requires Ballast Water Management
Plans
In a final rule published in the July 28 Federal Register,
the Coast Guard announced that vessels with ballast tanks bound
for ports or places in U.S. waters (including inland waters) will
be required to develop vessel-specific ballast water management
plans. Such plans must demonstrate that the vessel has a ballast
water management strategy/policy, and allow the master or other
officer serving on the vessel to understand and follow the plan.
The rule takes effect September 27.
During an August 3 meeting with the Coast Guard (see
related story, page 1), AWO and the Coast Guard discussed the need
to work collaboratively to develop a ballast water management plan
template that could be used by AWO members. RADM Tom Gilmour, Assistant
Commandant for Marine Safety, Security and Environmental Protection,
committed his staff to work with AWO to develop a simple, Coast
Guard-approved template in advance of the rule's effective date.
AWO members interested in participating in the development of such
a template should contact Jennifer Carpenter or Amy Brandt at 703-841-9300.
The July 28 rule also requires that vessels that
have operated outside of the 200-mile Exclusive Economic Zone (EEZ)
employ at least one of the following ballast water management practices:
- Prior to discharging ballast water in U.S. waters, perform complete
ballast water exchange in areas no less than 200 nautical miles
from shore;
- Retain ballast water onboard the vessel; or,
- Prior to entering U.S. waters, use an environmentally sound
method of ballast water management that has been approved by the
Coast Guard.
Although the Coast Guard has technically provided
three options, ballast water exchange is likely to be the most used
because the agency has yet to approve any environmentally sound
alternatives and most vessels cannot retain their ballast onboard.
Failure to employ one of these methods after operating beyond the
EEZ will result in a penalty, unless the vessel is exempt due to
safety or voyage constraints.
For a copy of this rule, contact Amy
Brandt.
Coast Guard Cautions Massachusetts Governor About
Preemption Concerns
The Coast Guard continues to emphasize the need for
Massachusetts decisionmakers to cautiously approach the regulation
of measures affecting oil spill prevention to avoid preemption issues
in the aftermath of last year's oil spill in Buzzards Bay. On July
29, First Coast Guard District Commander RADM David Pekoske sent
a letter to Massachusetts Governor Mitt Romney (R) urging "appropriate,
cooperative Federal/State solutions to protect the Massachusetts
marine environment" as the Commonwealth moves toward enactment of
legislation. The letter was sent on the eve of the transmission
of the legislation from the Massachusetts Legislature to the governor's
office.
This most recent Coast Guard letter signals the agency's
continuing effort to assert its jurisdiction with respect to this
legislation. In June, then-First District Commander VADM Vivien
Crea (now Commander-Atlantic Area) expressed similar concerns about
the legislation to its sponsor, Representative William Greene. (See
June 11 AWO Letter.) Like VADM Crea, RADM Pekoske urged the state
to take a cooperative approach to identifying federal solutions
that meet the spirit and intent of the state legislation, "while
avoiding the issues that would inevitably arise through enactment
of preempted law."
AWO and INTERTANKO have previously testified that
portions of the legislation are invalid incursions into areas exclusively
reserved to the federal government. Given the recent change of command
in the First District, AWO and INTERTANKO reached out to the new
District Commander to discuss the Coast Guard's plans for working
with Massachusetts officials and the marine transportation industry
to resolve any preemption concerns. On July 29, Jennifer Carpenter,
AWO Senior Vice President-Government Affairs & Policy Analysis;
Ned Moran, Moran Towing Corporation and AWO Chairman of the Board;
and Dragos Rauta, INTERTANKO Technical Director and Regional Manager
for North America, met with RADM Pekoske and his senior staff to
discuss the situation. For more information on the Massachusetts
oil spill prevention and response legislation, please contact Jennifer
Carpenter at (703) 841-9300.
This press
release was issued jointly by AWO and INTERTANKO as industry's
response to the signing into law of oil spill prevention legislation
in Massachusetts. The press release is posted on AWO's Web site
under "Public Information."
CTAC Accepting Applicants
The Coast Guard is seeking applications for membership
on the Chemical Transportation Advisory Committee (CTAC). CTAC advises
the Coast Guard on matters relating to the safe transportation and
handling of hazardous materials in bulk on U.S.-flag vessels in
U.S. ports and waterways.
CTAC has eight positions that will become available
in December. Applicants should have experience in chemical manufacturing,
vessel design and construction, marine transportation of chemicals,
occupational safety and health, or marine environmental protection
issues associated with chemical transportation. CTAC members serve
three-year terms and may serve consecutive terms. The committee
typically meets twice a year at Coast Guard headquarters in Washington,
D.C.
Prospective applicants can access the application
form online at www.uscg.mil/hq/g-m/advisory/ctac/ctac.htm.
Back
to Top
Legislative
News
Coast Guard Authorization Bill Awaits President's
Signature
The Fiscal Year 2005 Coast Guard Authorization bill
recently approved by the House and Senate was formally presented
to President Bush on July 28. The President has 15 days from that
date to sign the measure into law. As reported in the July 23 AWO
Letter, the Coast Guard Authorization measure includes important
provisions for maritime safety and Jones Act integrity. The following
list summarizes provisions in the final bill that will impact the
barge and towing industry:
- Inspection of Towing Vessels - The measure contains language
to bring towing vessels under Coast Guard inspection and states
that the Secretary of Homeland Security may establish by regulation
a safety management system appropriate for the characteristics,
methods of operation, and nature of service of towing vessels.
- Requirements for Coastwise Endorsement (Lease Financing) - The
bill permanently closes the lease financing loophole which has
undermined the U.S.-ownership requirements of the Jones Act, threatened
the multi-billion dollar investment that AWO members have made
in Jones Act vessels, and called into question U.S. control of
the domestic vessel fleet. Foreign interests will no longer be
able to manipulate the lease financing law to enter and compete
in the U.S. domestic trade.
- Tank Level/Pressure Monitoring (TLPM) Devices - The legislation
includes language supported by AWO that makes regulations on TLPM
devices for tank vessels discretionary. This provision provides
clear legal authority for the Coast Guard to rescind the TLPM
requirements established in the agency's September 2002 final
rule.
- Hours of Service on Towing Vessels - The measure grants the
Secretary of Homeland Security the authority to prescribe maximum
hours of service for individuals engaged on a towing vessel. Before
prescribing any regulations, the Secretary is required to conduct
and report to Congress on the results of a demonstration project
involving the implementation of Crew Endurance Management Systems
on towing vessels. The Secretary must carefully evaluate the results
of the demonstration project prior to determining the need to
establish maximum hours of service regulations. Prior to promulgating
any such regulations, Congress also expects that the Secretary
will evaluate the costs and benefits of establishing maximum hours
of service requirements on towing vessels. This evaluation will
include a review of Coast Guard casualty data to determine whether
there is statistical evidence to support the need for new hours
of service regulations.
- Electronic Charts - The bill requires certain vessels, including
towing vessels of more than 26 feet in length and 600 horsepower,
to be equipped with and be able to operate electronic charts.
However, the Secretary of Homeland Security has the authority
to waive the requirement if the Secretary finds that an electronic
chart and related display is not necessary for the safe operation
of a vessel or class of vessels on the waters on which those vessels
operate. The Secretary is directed to promulgate regulations before
January 1, 2007.
- Vessel Response Plans for Non-Tank Vessels Over 400 Gross Tons
- The legislation states that the President shall issue regulations
that require an owner or operator of a non-tank vessel to prepare
and submit a plan for responding, to the maximum extent practicable,
to a worst case discharge, and to a substantial threat of such
a discharge, of oil. A non-tank vessel is defined as any self-propelled
vessel over 400 gross tons that carries oil of any kind as fuel
for main propulsion. The implementation date for this provision
is no later than one year after enactment of the bill.
The complete text of the FY 2005 Coast Guard Authorization
bill (also entitled The Coast Guard and Maritime Transportation
Authorization Act of 2004) is available on the AWO Web site at www.americanwaterways.com.
If you have any questions, please contact Boyd
Hollingsworth at (703) 841-9300.
Back to Top
Responsible Carrier News
Accreditation Board Meets; Recommends Additions
to Responsible Carrier Program
The Responsible Carrier Program (RCP) Accreditation
Board met on July 27-28. Members of the Board are Chairman Michael
Sutton, Foss Maritime Company (Harbor Services); Paul Book, American
Commercial Barge Line (Inland Liquid); Philip Chase, Boston Towing
& Transportation (Coastal); Deane Orr, CONSOL, Inc. (Inland Dry);
Steve Zeringue, SeaRiver Maritime, Inc. (Liquid Shipper); and Cathy
Shantz-Hammond, Inland Marine Service (Immediate Past Chair). Currently,
the Dry Shipper seat is vacant.
In its major action item, the Accreditation Board
recommended to the AWO Executive Committee that two additions be
made to the RCP. Both recommendations are inclusions to the Management/Administration
section. The first is to add a bridge transit procedure to Section
A., Vessel Operating Policies/Procedures. The second is to add an
operator incapacitation procedure to Section E., Emergency Response
Procedures. If the Executive Committee endorses the recommendations,
the AWO Board of Directors will vote on these additions at the Fall
Convention in San Diego in October.
In other major deliberations, the Accreditation Board
considered the future of the RCP. The Board agreed that the RCP
should remain the premier safety and environmental management system
for the tugboat, towboat and barge industry, and should contain
standards higher than those required by government regulation. To
achieve this goal, the Accreditation Board will submit to the Executive
Committee a long-term plan to upgrade the RCP.
The Accreditation Board also reviewed the RCP auditor
training program and auditor applications. The next meeting of the
Accreditation Board will be held this fall. If you would like further
information or are interested in participating in the work of the
Accreditation Board, please contact Bob Clinton or Kathy Rehak at
(703) 841-9300.
Back
to Top
In
the News
"River Shutdown for Lock Repairs Will Back Up
Barges"
This Associated Press story appeared in the July
27 Cincinnati Enquirer. A shorter version appeared in the Lexington
(KY) Herald-Leader. It is reprinted here in its entirety.
LOUISVILLE - Barges could stack up along stretches
of the Ohio River next month when they're idled by repair work on
a river lock, officials said Monday.
Work on McAlpine lock will shut down river traffic
for two weeks beginning Aug. 9, so workers can fix its cracked steel
gates. The U.S. Army Corps of Engineers plans to reopen the lock
Aug. 22, allowing barges to again traverse the length of the river
from Pittsburgh to Cairo, Ill.
The closure could stall as many as 100 tows pushing
long strings of barges, said W.N. Whitlock, president and chief
operating officer of American Commercial Lines of Jeffersonville,
Ind.
Col. Robert A. Rowlette Jr., commander and district
engineer of the corps' Louisville district, said the stalled tows
could be spread out along nearly 190 miles of the river - from between
Louisville and Cincinnati to near Tell City, Ind.
Many of the vessels are expected to sit out the closure
at mooring facilities along river, Whitlock said at a news conference
at McAlpine lock.
Whitlock said the shutdown would be costly for the
barge industry but didn't offer an estimate. He said that every
hourly delay for a tow costs the operator $300 to $400.
Locks along the Ohio River serve as stairways that
allow boats and barges to navigate the 981-mile-long waterway's
changing elevation.
The Corps of Engineers notified barge operators in
May of the shutdown for the $1 million repair project. Still, it
could put a strain on industries unable to stockpile materials,
Whitlock said.
"Most people are operating on a just-in-time inventory
system, so when you have a disruption in that logistics flow, it
creates problems all the way through the logistics chain," he said.
About 140,000 tons of goods pass through McAlpine
lock daily, according to the corps.
To continue the flow of materials, some companies
will have supplies transported by truck, Whitlock said.
Once the repair work is finished, it will take at
least a week to end the logjam of tows waiting to get through the
lock, he said.
Rowlette said the closure for maintenance couldn't
be avoided.
The cracks were found during a routine inspection
by divers in May. The biggest crack is 15 to 18 inches long. Without
the repair work, the crack will grow and could jeopardize that gate,
Rowlette said.
"The gate has the potential, if it cracks severely
enough, to literally fall off the hinges," he said. In past years,
barge traffic along the Ohio River has been shut down for extended
periods by floods and ice.
Workers will drain tens of millions of gallons from
the 1,200-foot-long, and 110-foot-wide lock, a process that will
take two or three days, Rowlette said. Inspectors then will check
the gates.
Workers will weld together the cracks and insert metal
plates to reinforce corners of the lock's doors, Rowlette said.
Coast Guard Cmdr. John Bingaman said the stalled barges
should not impede recreational boaters. The Coast Guard will monitor
the situation to make sure the tows pull up in appropriate spots,
he said.
Traffic has picked up at McAlpine in recent weeks
as barge operators hurry to meet customers' demands before the shutdown.
Generally, about 14 tows pass through McAlpine daily,
but in recent weeks, about 20 have come through each day, Rowlette
said.
Minnesota's Governor, Senator Call for New Locks
Recently, Minnesota Governor Tim Pawlenty (R) and
Senator Norm Coleman (R) called for modernizing the UMR/IWW locks
and dams. This is an excerpt from an article entitled "Ag Leaders
Call for Help in Shielding Food Supply" that was authored by Joy
Powell and appeared in the July 27 Minneapolis/St. Paul Star Tribune.
OWATONNA, MINN.-- Minnesota's agricultural leaders
on Monday called for better protection for livestock and crops from
potentially devastating new diseases and for greater access to world
markets.
To get grain to world markets, Gov. Tim Pawlenty joined
U.S. senators and many farm leaders Monday in calling for modernization
of the nation's 1930s-era lock-and-dam system. That's imperative,
they say, to move grain economically to seaports, with less pollution
than by train or rail.
The U.S. Army Corps of Engineers prefers a plan that
would provide $5.3 billion in ecological restoration and $2.4 billion
in capital improvements, half of which would be paid with towboat
fuel fees, which farmers pay indirectly as part of their shipping
costs.
Pawlenty said he hopes the Corps' plan will be favorably
considered by Congress, where the House and Senate are considering
legislation that parallels the Corps' alternative plan to build
or expand 12 bigger locks on the Upper Mississippi River and Illinois
Waterway. "It would make a big difference in the Upper Midwest,"
Pawlenty said. Opponents say that the economics don't support plans
for bigger locks and that exports have decreased in the past five
years. Critics who say the volume of exports won't grow are simply
wrong, U.S. Sen. Norm Coleman said. "We're going to continue to
grow our markets and have export opportunities," he said. "So we
need to move forward with lock-and-dam modernization."
Back
to Top
Association
News
Midwest/Ohio Valley Joint Regional Meeting Set
for Aug. 18-19
The Midwest and Ohio Valley Joint Summer Regional
Meeting will begin Wednesday, August 18 with a reception at the
Palmer House Hilton in Chicago, Illinois from 6:00 p.m.-7:30 p.m.
The meeting will be held on Thursday, August 19, from 7:30 a.m.
till noon. Updates on ballast water regulations, 4.3-cent fuel tax
repeal, security implementation, and the proposed electronic fish
barrier on the Chicago Sanitary and Ship Canal will be included.
There are a few rooms still available at the Palmer
House Hilton at the rate of $139.00. Please contact the hotel directly
at (877) 865-5321. A meeting registration form is available on the
AWO Web site at www.americanwaterways.com For more information on
the meeting or the hotel, contact Marilyn Clark at (703) 841-9300.
All AWO members doing business on the Western Rivers
or the Great Lakes are strongly encouraged to attend. AWO members
are also encouraged to invite potential members.
Did You Know?
Tonnage on Internal U.S. Waterways Is Rebounding
From January through June 2004, 279 million tons of
goods were carried on the internal waterways of the United States.
As the chart shows, this is an upswing from a three-year decline.
Tonnage on U.S. Internal Waterways
January through June, 2001-2004 (in millions)
The data were taken from the Web site of the Navigation
Data Center, U.S. Army Corps of Engineers: http://www.iwr.usace.army.mil/ndc/wcsc/wcmthind.htm.
For more information, contact Doug
Scheffler, AWO's Manager - Research & Data Analysis at (703)
841-9300.
Important Dates and Reminders
- August 18-19: Midwest/Ohio Valley Joint Regional Meeting,
Palmer House Hilton, Chicago, IL. For information, contact Marilyn
Clark.
- October 6-8: AWO Fall Convention, San Diego, CA. For
information, contact Marilyn Clark.
Back
to Top
Regional
Reports
Lock 27 and McAlpine Lock Shut Down for Repairs
The 1,200-foot lock chamber at Lock 27 (Chain of
Rocks Lock) on the Mississippi River, Mile 185, was closed on July
26 for repairs. Due to unexpected problems, the closure has been
extended from August 9 to as late as August 23. In the meantime,
all traffic is moving through the adjacent 600-foot lock. Lock 27
is the last lock location on the Mississippi River. As of August
3, over 40 tows were in queue for lockage, with a waiting period
of well over two days. Congressional leaders, including Chairman
David Hobson (R-OH) of the House Energy & Water Development Appropriations
Subcommittee, are scheduled to tour the location on August 10.
McAlpine Lock at Ohio River, Mile 606.8, will also
be closed from August 9 to August 22 for emergency repairs. Since
there is no alternate lock, all traffic will halt. This lock location
typically sees 14 tows per day. The River Industry Executive Task
Force (RIETF), the U.S. Army Corps of Engineers - Louisville District,
and U.S. Coast Guard MSO Louisville have agreed to a queuing process
once the lock is reopened. A Regulated Navigation Area (RNA) will
be imposed on the area until traffic returns to normal. For more
information, contact Lynn Muench at (314) 621-2929.
AWO Submits Comments on Draft UMR-IWW Navigation
Study Report
AWO voiced its strong support for infrastructure rehabilitation
and modernization in recent comments submitted to the U.S. Army
Corps of Engineers on the Draft Integrated Feasibility Report and
Programmatic Environmental Impact Statement for the Upper Mississippi
River-Illinois Waterway (UMR-IWW) System Navigation Feasibility
Study. Following are direct excerpts from AWO's comments:
"Given the diverse and widely shared benefits of
a sound waterways infrastructure, the need is clear for the U.S.
to continue to invest in a modern, well-maintained system of locks
and dams. To that end, AWO fully supports the long-term recommendation
in the Draft Report on the UMR-IWW System Navigation Feasibility
Study to provide twelve 1200-foot lock capacity chambers on the
Upper Mississippi and Illinois Rivers."
"AWO and its 400 member companies are deeply committed
to modernization of the inland waterways system. The barge and towing
industry pays more than $100 million a year in fuel taxes, deposited
into the federal Inland Waterways Trust Fund, to support the construction
and rehabilitation of the locks and dams that make safe and efficient
barge transportation possible. Through the Trust Fund, the industry
stands ready to invest in the construction of critically-needed
new locks on the UMR-IWW system."
"America's economy, environment and quality of life
are dependent upon our joint commitment to building and maintaining
a world-class waterways system. We look forward to working with
the Corps of Engineers, the Administration and the Congress as this
imperative project moves forward."
Illinois Legislature Finishes Budget; Repeal of
Motor Fuel Tax Exemption for Towing Industry Rejected
On July 24, the Illinois legislature finished its
work on the budget. Although a bill that would have repealed the
motor fuel tax exemption for the towing industry and certain other
industries was voted out of committee, it was never called up for
a floor vote, which effectively killed the measure. Springfield
insiders do not believe this issue will be put on the table next
year. For more information, contact Lynn Muench at (314) 621-2929.
Back
to Top
This edition of the AWO Letter is sponsored
by:
For further information, contact:
Anne Davis
Burns
Vice President - Public Affairs
801 North Quincy Street
Suite 200
Arlington, VA 22203
PH: (703) 841-9300
FAX: (703) 841-0389
|
