The American Waterways Operators
801 North Quincy Street, Suite 200
Arlington, VA 22203
T: 703.841.9300
F: 703.841.0389

AWO Letter

June 24, 2005
Volume 62, No. 13

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Agency Actions

AWO, Coalition Seek to Intervene in Ballast Water Discharge Case
Mariner Credentialing: First, Repair the Harm," AWO Tells Coast Guard

Legislative News

2005 WRDA Bill Voted Out of House Committee
Record Funding for Corps Projects in FY06 Bill
Senate Hears Testimony on Ballast Water Proposal

In the News

"Barge Plan Floats Closer to Reality"
"Senate Vote Doubles Ethanol Requirement"
Environmentalists, Federal Agency Fight Over Dredging Snake River"

Association News

Did You Know?
AWO Seeking Photos, Sponsors for Safety Calendar
Important Dates and Reminders

Responsible Carrier News

CEMS Training Opportunities
Eleven Member Companies Recertify RCP Audit Compliance

Regional Reports

Senator Murray Proposes Funding for Ballard Locks
Don't Forget to Register for the Pacific Region Meeting!
California Lands Commission Votes Unanimously for Ballast Water Exchange Rule
Fish Barrier Update: RNA to be Extended
Midwest/Ohio Valley Meeting to Focus on Regional Advocacy
Mississippi River Commission Public Hearings Announced
Inland Harbor Service Group Meets
Southern Region Holds Summer Meeting
AWO Members Recognized at Jones F. Devlin Awards, Ship Safety Achievement Awards
Louisiana Department of Environmental Quality to Monitor Barges

Agency Actions

AWO, Coalition Seek to Intervene in Ballast Water Discharge Case

AWO and other maritime trade associations are seeking permission to intervene in a U.S. District Court case (Northwest Environmental Advocates v. EPA) in which a judge recently ruled that the Environmental Protection Agency unlawfully exempted vessels from pollution discharge permit requirements for ballast water and other vessel discharges under the Clean Water Act. In April, a District Court judge ruled that discharges of pollutants, including ballast water and other discharges incidental to normal vessel operations, can only occur under a National Pollution Discharge Elimination System (NPDES) permit. The judge does not plan to issue an order in the case until at least June 24 and has solicited input from the parties regarding the scope of the order and an appropriate remedy. Given the significant, negative impact that this decision could have on vessel owners throughout the country, AWO and a coalition of maritime trade associations is seeking to intervene as an affected party in the litigation. The Motion to Intervene was filed on June 13.

AWO is joined in the action by the Chamber of Shipping of America (CSA), INTERTANKO, International Council of Cruise Lines (ICCL), Lake Carriers' Association (LCA), and World Shipping Council (WSC). The coalition is also seeking support from other affected associations. The associations prepared a legal filing that demonstrates the potential impact of the ruling on their respective segments of the industry. As background for the filing, AWO provided information on ballast water discharges from tugboat, towboat, and barge operations, as well as information on the necessity of these discharges to vessel operations. Under the existing EPA regulations that the judge found to be improper, discharges incidental to the normal operation of a vessel are exempted from the NPDES permitting requirements.

AWO President & CEO Tom Allegretti and representatives from CSA, LCA, and WSC met with EPA General Counsel Ann Klee on May 31 to discuss EPA's response to the court decision. EPA indicated that it intends to appeal the decision and encouraged the maritime industry to seek standing as an intervener in the case because the District Court judge has solicited input from affected parties.

AWO will work with the other maritime associations to pursue a legal strategy that does not adversely affect vessel operators. AWO is also exploring the opportunity to preempt the decision in this case as part of the ballast water legislation currently under consideration by Congress. AWO members who want more information about AWO's work on ballast water should contact Jennifer Carpenter or Amy Brandt at (703) 841-9300.

Mariner Credentialing: First, Repair the Harm," AWO Tells Coast Guard

The first priority of the Coast Guard's mariner licensing and documentation program should be to clear the bottlenecks and eliminate the delays that prevent mariners from obtaining and renewing their credentials in a timely manner, AWO told the Coast Guard at a June 17 public meeting. The agency held the meeting to obtain feedback from the public on a legislative change proposal intended to reorganize, clarify, and modernize the mariner credentialing statutes and incorporate security as a factor in the issuance of merchant mariner credentials. (See May 27 AWO Letter.)

While expressing support for the agency's objectives in modernizing the credentialing statutes, AWO Senior Vice President-Government Affairs and Policy Analysis Jennifer Carpenter called the legislative change proposal a "nice to do." From the perspective of the tugboat, towboat, and barge industry and the tens of thousands of men and women who crew the industry's vessels, the "must do" is fixing a license and document delivery system that has resulted in mariners losing work because they are unable to renew their credentials in a timely way, Ms. Carpenter said. She noted that one major inland towing company now routinely advises vessel personnel to submit their applications for license renewal one year in advance. This is evidence of a "broken" system that does not serve mariners or companies well, she said.

The Coast Guard's second priority should be to work with the Department of Homeland Security and the Transportation Security Administration to implement the statutory mandate for a Transportation Worker Identification Credential (TWIC) in a way that does not exacerbate the existing failures in the license and document delivery system and does not impede prompt processing of new personnel, Ms. Carpenter said.

Finally, Ms. Carpenter noted that AWO members are working hard to develop a true security culture alongside the safety culture that has taken root in the industry. Tugboat, towboat, and barge crews are the "eyes and ears" of the waterways and the Coast Guard should consider the industry a partner in its efforts to promote maritime domain awareness as well as to improve the licensing and document delivery system. AWO stands ready to work with the Coast Guard to address these priority issues, and to consider appropriate changes to the mariner credentialing statutes, in a way that truly "honors the mariner," she concluded.

Representatives of the American Pilots Association and the International Organization of Masters, Mates, and Pilots also made remarks at the meeting. The Coast Guard will accept written comments until June 29.

Legislative News

2005 WRDA Bill Voted Out of House Committee

On June 13, Congressman Don Young (R-AK) introduced the Water Resources Development Act of 2005. The bill includes the authorization for 30 projects including the Upper Mississippi River-Illinois Waterway Navigation Improvement and Ecosystem Restoration Project. Overall, WRDA 2005 continues to move in the right direction by authorizing or modifying 97 projects and studies relating to navigation improvements.

Chairman Jimmy Duncan (R-TN) of the House Transportation and Infrastructure Subcommittee on Water Resources and Environment as well as the other members of the Subcommittee favorably reported the legislation to the full Transportation and Infrastructure Committee on June 15. The bill was marked up by the full Committee on June 22 and sent to the House of Representatives for consideration.

If you would like more information, please contact Boyd Hollingsworth or Angela Madden at (703) 841-9300.

Record Funding for Corps Projects in FY06 Bill

On June 16, the Senate Appropriations Committee unanimously approved the fiscal year 2006 U.S. Army Corps of Engineers Civil Works Program funding level. The $5.3 billion for the Corps Civil Works Program includes $378 million to complete critical Inland Waterway Trust Fund financed lock and dam improvement projects on the inland waterways system.

The Administration's proposed budget for the Corps Civil Works Program in FY 06 was the highest ever from any Administration. The House of Representatives added more than $20 million in passing the Energy and Water Development Appropriations a few weeks ago, and now the Senate has acted in committee to further increase the Corps budget in its version of the legislation. The next step is for the full Senate to consider the legislation.

If you would like more information, please contact Boyd Hollingsworth or Angela Madden at (703) 841-9300.

Senate Hears Testimony on Ballast Water Proposal

The National Ocean Policy Study, a subcommittee of the Senate Commerce, Science and Transportation Committee met on June 15 to discuss ballast water invasive species management and threats to coral reefs. The hearing examined the introduction of non-native species through the discharge of ballast water from ships and the current threats to coral reefs. No specific legislative proposal was on the agenda, but most of the focus was on Senate Bill 363 (SB 363), the Ballast Water Management Act of 2005 sponsored by full Committee Co-Chairman Daniel Inouye (D-HI).

During the hearing, statements were heard from many individuals, including Ms. Kathy Metcalf, Director of Maritime Affairs, Chamber of Shipping of America, who testified on behalf of the Shipping Industry Ballast Water Coalition, of which AWO is a member. Ms. Metcalf stressed the need for a tug and barge exemption in any ballast water legislation and the importance of federal preemption and exclusivity.

Overall, the tone of the hearing was very informative. AWO will be submitting comments for the record in the next couple of weeks and will be expanding upon Ms. Metcalf's testimony about the unique nature of tug and barge operations.

In the News

"Barge Plan Floats Closer to Reality"
This story, written by AP Staff Writer Mark Ginocchio, ran in the June 20 issues of the Hartford Courant, Boston Globe, and Long Island Newsday. It is reprinted here in its entirety.

The state may be months away from starting a service that would move commercial goods by water and eliminate thousands of trucks from Interstate 95 in lower Fairfield County, Bridgeport Port Authority officials say.

The Bridgeport barge service could start this fall now that an operator has been selected, said Joseph Riccio, executive director of the Bridgeport Port Authority. A tug-boat operator that would move the barges through Long Island Sound could be chosen in the next few weeks, he said.

From there, the authority, which plans to update the Transportation Strategy Board at its monthly meeting tomorrow at the Capitol, will continue working with the Port Authority of New York and New Jersey and the Connecticut trucking industry so the service could begin, Riccio said.

"It's been very tough to get this started because we haven't typically transported goods this way before," he said. "It's a new idea."

The project is months behind the original startup date of spring 2005. Once it gets going, it could remove about 35,000 truck trips on Interstate 95 between New York, New Jersey and lower Fairfield County, Riccio said.

Containers that usually are trucked out of ports in New York and New Jersey will be carried by barge up through the Sound. Once they arrive in Bridgeport, containers can be moved by truck.

Bridgeport is one of five potential ports that would create the Port Authority of New York and New Jersey's Port Inland Distribution Network. The network calls for barge operations in Delaware, New Jersey, northeastern New York, Rhode Island and Connecticut.

The only port established so far is in Albany, N.Y., where about 400 containers move on one barge a week, Port Authority spokesman Steve Coleman said. A second barge was added two weeks ago and should increase the amount of cargo carried, he said.

A port in Bridgeport likely will have much more barge traffic than Albany, Riccio said.

"This could be one of more successful routes," he said, since I-95 "is arguably one of the worst stretches in the country."

The Bridgeport service received $1.5 million in state money last year to build a facility at the Bridgeport Regional Maritime Complex and will continue to receive funding for at least another year, Riccio said. The service should partly pay for itself, he said.

But its success hinges on how much the trucking industry uses it. A barge service reduces the need for truck drivers, who have been difficult to find industrywide, Riccio said.

The service could help consumers. Rising diesel fuel prices have increased the cost of goods because truckers have been passing on the expenses, Riccio said, and a barge service would reduce that.

Michael Riley, president of the Connecticut Motor Transport Association, said he supports the barge service but doubts it'll make a huge impact.

"With 15,000 trucks a day passing through the state, this is not going to be the ultimate solution," Riley said. "I don't think anyone is going to see a major difference or much more space on the highways, but I think this is going to be a good thing."

Supporters say a barge service in Bridgeport is the first step in getting trucks off the highways. Karen Burnaska, co-chairwoman of the Coastal Corridor Transportation Investment Area, an advisory group to the Transportation Strategy Board, said New London and New Haven could be added to the barge network

."This is a way to start," Burnaska said. "It's not going to take all trucks off the road . . . but we feel it's definitely worth at least a pilot project."

"Senate Vote Doubles Ethanol Requirement"
Provision in energy bill requires 8 billion gallons of fuel be added by 2012

This article, written by Richard Simon and Warren Vieth, appeared in the June 16 Issue of the Los Angeles Times. It is reprinted here in its entirety.

For years, Congress has showered tax breaks on ethanol, portraying the fuel that is derived mostly from corn as a home-grown alternative to oil imports.

But even the Corn Belt might not have imagined how good times could get, as the Senate yesterday voted to double the amount of ethanol, to 8 billion gallons, that must be added to the United States' gasoline supply by 2012.

"The Senate is poised to make ethanol a cornerstone of America's energy policy," said Sen. John Thune, a Republican from ethanol-producing South Dakota.

The provision, added to the energy bill by a strong bipartisan vote of 70-26, is widely regarded as critical to motivating Congress to complete the first overhaul of energy policy in a decade, a top priority of President Bush.

Opponents of the provision, including East and West Coast senators and the oil industry's trade association, the American Petroleum Institute, contend that the cost of transporting ethanol from the Midwest could increase gasoline prices.

Sen. Charles E. Schumer, a New York Democrat, called the mandate "nothing less than an ethanol gas tax" levied on every motorist in the country.

"There is no sound public policy reason for mandating the use of ethanol, other than the political might of the ethanol lobby," Schumer said.

The 8 billion-gallon-mandate is higher than any amount that has come before Congress and would give the industry its biggest boost since Congress approved a tax break for the fuel in 1978.

Bush applauded efforts to boost the ethanol requirement, saying it was an important element of a broader strategy to reduce the nation's dependence on foreign oil.

Bush said it was important for Congress to approve a renewable-fuel standard requiring a minimum amount of ethanol and biodiesel, which can come from soybeans as well as from recycled waste products such as cooking grease.

The president prodded the Senate to set aside partisan politics and pass an energy bill quickly, saying the public's patience, not to mention his own, was wearing thin.

The energy bill passed by the House in April would require 5 billion gallons of fuel from renewable sources to be added to gasoline by 2012, virtually ensuring that an ethanol mandate of some amount will be in the final bill.

The National Corn Growers Association urged its members to send gas receipts to senators with messages written on the back asserting that increased ethanol use would help prevent spikes in gas prices.

But the effect increased ethanol use would have on gas prices is disputed. Some have suggested that increased ethanol use would lower gas prices, mainly because ethanol is so plentiful that its price is cheaper than that of gas.

But Ed Murphy of the American Petroleum Institute said, "If there was an opportunity for people to increase their market share right now by adding ethanol to gasoline and undercutting your competition by a fraction of a cent a gallon, people would be banging at the door to do it."

Opponents of ethanol use contend that it would raise gas prices because ethanol cannot be transported through pipelines and much of it must be shipped by barge or train from the Midwest to the coasts.

"Environmentalists, Federal Agency Fight Over Dredging Snake River"
This Associated Press story ran in the Seattle Post-Intelligencer on June 18. It appears here in its entirety.

LEWISTON, Idaho -- The U.S. Army Corps of Engineers is taking public testimony on a plan to dredge the lower Snake River this coming winter, a proposal criticized by environmentalists but praised by regional industry as key to keeping the waterway open to commerce.

The river has not been dredged since the winter of 1998-1999 and is becoming increasingly shallow -- at least two barges got stuck in port areas this year.

The comment period ends in mid-July.

The corps plans to remove 450,000 cubic yards of silt and sand from the river bottom next winter when fewer salmon and steelhead move through the system. Agency officials say the work is needed to make sure barges loaded with regional products such as wheat can continue to reach ports downstream.

Port officials say the dredging is being opposed by activists who ultimately want to breach dams -- and are trying to bolster their arguments that river shipping is becoming obsolete by allowing the Snake and Clearwater rivers -- which meet at Lewiston and nearby Clarkston, Wash. -- to become choked with silt that washes downriver.

"What they are trying to do is stop the dredging so it will stop the use of the river and the river will fill up with silt and we will not be able to get our products in and out of here," said Rick Davis, manager of the Port of Clarkston.

On Wednesday, in a similar battle, a federal judge in Seattle rejected arguments from environmentalists opposed to dredging of a 103-mile stretch of the Columbia River -- an Army Corps of Engineers project scheduled to begin within days.

Still, environmentalists fighting dredging on the Snake maintain the Army Corps hasn't done enough to explore alternatives to dredging as a means of keeping the river deep enough for boats.

Other methods could include limiting the amount of sediment that reaches the river or using drawdowns to flush sediment away.

Jan Hasselman, of the National Wildlife Federation in Seattle, said Friday the agency still hasn't seriously considered these alternatives.

"They have been promising for 20 years to take a hard look at other ways of maintaining the system and they still haven't done it," Hasselman said.

The dredging battle is set against the backdrop of a larger court fight over salmon.

U.S. District Judge James Redden of Portland, Ore., has rejected a Bush administration plan to restore salmon runs, and earlier this month ordered federal officials to spill more water through the four Snake River dams and McNary Dam on the Columbia River to help keep juvenile salmon from dying in the dams' turbines.

On the Snake River, the silting effect is most pronounced in Lower Granite Reservoir, the first slack water pool on the lower Snake River, with some areas as shallow as 8.5 feet. The federal agency that oversees the river is charged with maintaining a shipping channel depth of 14 feet.

"We are very fortunate we didn't have a high water year because that would have brought down more sediment," said Nola Leyde, a spokeswoman for the Corps' Walla Walla, Wash., district.

The Corps' plan calls for the dredge spoils -- the material taken from the bottom of the river -- to be used to create shallow water habitat for juvenile chinook salmon.

"This will provide a resting area for them," said Leyde. "They need areas where they can keep away from predators."

The plan is very similar to one the corps has approved in the past, but has been stopped by lawsuits from salmon groups. A judge stopped the previous plan, ruling the agency didn't consider other alternatives, such as using drawdowns.

In its latest study, the Corps did consider that and seven alternatives - but ultimately dismissed all but dredging, saying the others wouldn't solve the immediate problem faced by ports and barge companies.

Association News

Did You Know?
Corps of Engineers Data Shows Importance of Inland Waterway System

Recently released data from the U.S. Army Corps of Engineers shows that tributary tonnage accounts for 62% of all shipments on the inland waterways systems from 1999-2003. Tributary tonnage is defined as waterborne commerce that is shipped or received on inland waterways other than the Mississippi River, Ohio River, Illinois River, Tennessee River, or the Gulf Intracoastal Waterway. The table below displays the total and a breakout by major commodity group.

These data show the importance of treating the inland waterways as a complete transportation system. Funding decisions for operations and maintenance, new construction, and rehabilitation will not only affect local economies, but will also have national economic impacts.

The data were taken from the U.S. Army Corps of Engineers Navigation Data Center Web site at www.iwr.usace.army.mil/ndc/wcsc/wcmthind.htm.

For more information, contact Doug Scheffler, AWO's Manager - Research & Data Analysis, by phone at (703) 841-9300 or via email at dscheffler@vesselalliance.com.

AWO Seeking Photos, Sponsors for Safety Calendar

Fifth Annual Photo Contest

AWO is now accepting photos for its fifth annual "Safety Calendar Photo Contest." We are looking for both "vessel" and "people" photos to feature in next year's calendar. All prints must be in color, at least 5 x 7 inches in size, and have the company's name, the name of the person submitting the photo, and a contact phone number on the back of the photo.

Electronic photos may be entered, but must be in a "TIFF" or "JPG" format, at least 300 dpi, and emailed to Traci Fischer at tfischer@vesselalliance.com.

Photos must be received by Friday, August 19 for consideration. All photos received become the property of AWO, and AWO reserves the right to use them in other association materials to promote the industry. If you have any questions about the contest, please contact Anne Burns at (703) 841-9300.

Safety Calendar Sponsorship Program

Last year, AWO sold its entire stock of 2005 Safety Calendars in a matter of months. Who purchased these calendars? Thousands of people who have an interest in safety and a stake in the tugboat, towboat and barge industry, that's who! If our industry is your target market or if you would like to help AWO promote safety, then we have a great opportunity for you!

AWO is now accepting sponsors for its 2006 Safety Calendar. The calendar is printed in full color and features safety tips and photos of member company vessels -- all winners of AWO's Annual Photo contest. There are twelve high-profile sponsorship blocks available, one featured each month, allowing sponsoring companies to spread the word about their products and services. To secure a sponsorship, please complete the attached form and fax to "AWO Safety Calendar Sponsorship" at (703) 841-0389. For additional information, please call Anne Burns at (703) 841-9300.

Important Dates and Reminders

July 13-14: AWO Interregion Safety Committee meeting, Louisville, KY. Please contact Kathy Rehak for more information.
August 17-18: Midwest and Ohio Valley Joint Summer Meeting, St. Louis, MO. Registration is due July 18, 2005. For more information, contact Marilyn Clark.

Welcome, New Carrier Member!

Lawson & Lawson Towing Company, Inc.
P.O. Box 1234
Wynne, AR 72396
Rep.: Mr. Robert Vance Lawson President

Responsible Carrier News

Eleven Member Companies Recertify RCP Audit Compliance

Since April, 11 additional member companies have notified AWO that they have successfully completed recertification audits of their Responsible Carrier Programs. AWO congratulates these companies! As all AWO members know, the Responsible Carrier Program (RCP) is the award-winning safety management program of the tugboat, towboat and barge industry. Audited compliance with the Responsible Carrier Program is a condition of membership for all AWO carrier members. Members are required to undergo a recertification audit by an AWO-certified third-party auditor every three years to verify their continued compliance with the Responsible Carrier Program.

The following companies have recently achieved audited recertification:

Bren Transportation Corp., Brooklyn, NY
Cheryl K., Inc., Sugar Land, TX
E.N. Bisso & Son, Inc., Metairie, LA
Equipment Chartering Co., Inc., Bay St. Louis, MS
Luhr Bros., Inc., Columbia, IL
McKinney Towing, Inc., Baton Rouge, LA
Megafleet Towing Co., Inc., Pasadena, TX
MEMCO Barge Line, Chesterfield, MO
Naknek Barge Lines, LLC, Seattle, WA
Parker Towing Company, Inc., Tuscaloosa, AL
Western Kentucky Navigation, Paducah, KY

Several of these companies recertified their compliance with the RCP in advance of their "anniversary dates" for doing so. By scheduling their audits early, they ensured the availability of their auditor ahead of schedule, thereby preventing any unnecessary delays in completing their audits. AWO members are reminded that the AWO-certified RCP auditor pool has diminished significantly since the beginning of the program, and a majority of AWO member company audits will come due in 2005. Due to these two facts, AWO anticipates that auditors' schedules for 2005 will fill up soon. Any AWO member company whose RCP is due to be recertified in compliance in 2005 should verify the availability of an auditor now to ensure that its audit is conducted by its anniversary date.

Over 150 companies are due to recertify their RCP compliance this year and AWO fully expects that all of them will be successful. By maintaining a viable Responsible Carrier Program, revised to include all new Board-approved policies and procedures and containing up-to-date equipment maintenance and personnel training records, the tugboat, towboat and barge industry will remain a leader in marine safety and environmental protection, as it has come to be viewed by its all of its audiences in government, the media and the general public.

CEMS Training Opportunities

The Crew Endurance Management System (CEMS) is a system for managing risk factors in maritime work environments that can lead to human error and performance slumps. The Coast Guard and AWO have been working together to help companies implement the principles of CEMS.

In this space, AWO will publish details of CEMS training opportunities around the country. For further information on CEMS training opportunities, please contact LT Samson Stevens, U.S. Coast Guard, (202) 267-0173.

Regional Reports

Senator Murray Proposes Funding for Ballard Locks

Senator Patty Murray (D-WA) announced that she has added $2.1 million to the Senate Water and Energy bill to keep the Ballard Locks open. The Senator has stated that "Keeping the Ballard Locks running safely and efficiently is critical to our economic security in the Puget Sound and around the country." AWO, its members and a host of other businesses have been advocating the continuous operation of the Locks since it was first discovered that the Locks may have its hours greatly reduced. Working with the Washington Congressional Delegation in a bi-partisan manner has proven to be effective in battling the Locks' restrictions. However, there is still a lot of work that needs to be done in order to ensure the Locks will remain open 24 hours a day, 7 days a week.

The Seattle District, U.S. Army Corps of Engineers Operations Division Chief, Diane Parks, has stated that there will need to a be a risk-based analysis performed in order to determine if the Ballard Locks can remain open until the appropriations are passed. This means that Locks' hour restrictions are still a real possibility according to the Corps. AWO has been advocating how vital the Locks are to the businesses that utilize them, the economy of the region, and the entire northwest. AWO will continue to work the issue and maintain communications with the Corps of Engineers to ensure the Locks remain open on a continuous basis. For more information, please contact Jason Lewis at (206) 262-7308 or via email at jlewis@vesselalliance.com.

Don't Forget to Register for the Pacific Region Meeting!

Who: All AWO Pacific Region Members

What: 2005 Pacific Region Summer Meeting

When: Thursday, August 11: 7:30 a.m. - Continental breakfast, 8:00 a.m. - Meeting

Where: Salty's on Alki Restaurant, Duwamish Room, 1936 Harbor Avenue, N.W., Seattle, Washington

Details: The cost is $35.00 per attendee to offset catering and meeting charges -- email invoices will be sent upon receipt of registration form.

California Lands Commission Votes Unanimously for Ballast Water Exchange Rule

The California Lands Commission held a public meeting June 20th to discuss the adoption of a proposed rule regulating the discharge of ballast water in California. The hearing was attended by Jeff Browning of Sause Bros. and Jason Lewis, AWO Vice President - Pacific Region. During the hearing the Lands Commission staff presented its case as to why the proposed rule was necessary to reduce invasive species.

Led by Lieutenant Governor Cruz Bustamante, the Lands Commission asked questions ranging from who supported the proposed rule, to how businesses would be able to adhere to the rule. After hearing testimony from the industry, the Commission elected to adopt the rule unanimously. It was pointed out during the hearing that the rule would place the tug and barge industry in a difficult position because of the safety concerns involved with performing ballast water exchanges offshore. The safety of the crew is paramount to our industry and any regulation that could potentially endanger a crew member's life would meet strong opposition.

The Commission expressed concern with providing consistency on ballast water exchanges with the other West Coast states. Lands Commission staff stressed that the proposed rule would provide consistency with Washington and Oregon. However, it was pointed out in testimony that, in fact, the now adopted rule is not consistent with the other West Coast states primarily because California does not define vessels as being self-propelled, unlike Washington and Oregon.

After hearing the concerns from the industry, the Lands Commission decided to reach a compromise of sorts by stating their willingness to write a letter exempting certain tug companies from the ballast water exchange requirements. The exemption letter will be a policy instead of a regulation, and the companies would have to apply for a letter to be written.

No formal application process is defined to receive a letter of exemption; rather, a company would have to write a letter to the Lands Commission stating why they cannot perform exchanges on their barges. The Commission also noted that there was no need to write a specific exemption for the tug and barge industry because of the safety exemption already written in the rule. The rule states that "The master, operator, or person in charge of a vessel is not required by this provision to conduct a ballast water management practice, including exchange, if the master determines that the practice would threaten the safety of the vessel, its crew, or its passengers because of adverse weather, vessel design limitations, equipment failure, or any other extraordinary conditions." According to the Lands Commission in a statement made at a public hearing, if the captain of a vessel elected not to perform a ballast water exchange because of safety concerns, the Lands Commission staff would have no recourse other than asking the Lands Commissioners to pursue litigation.

AWO will be working with the Lands Commission on implementing a uniform process for obtaining an exemption letter. Please contact Jason Lewis at (206) 262-7308 or jlewis@vesselalliance.com for more information.

Fish Barrier Update: RNA to be Extended

The U.S. Coast Guard has announced the Fish Barrier Regulated Navigation Area (RNA) will be extended six months from the June 30, 2005 expiration date until December 31, 2005. The RNA will stand as written, including the requirement for Type I personal flotation devices from Mile Markers 296.1 and 296.7 near Romeoville, Illinois in the Chicago Sanitary and Ship Canal.

The U.S. Army Corps of Engineers (Corps) - Chicago District has finished some of its initial testing on the barrier and has forwarded raw data to the Coast Guard. The Coast Guard may ask United Laboratories (UL) to evaluate the danger mariners will face in the barrier vicinity. After the evaluation is completed, the RNA may be modified.

The Corps is working to modify the range of the second barrier to allow fleeting to continue at Midwest Power Corp. The Illinois Department of Natural Resources has again committed to allow the activation of the second barrier only after the Coast Guard verifies safety.

For more information, contact Lynn Muench at (314) 446-6474 or at awo-midcontinent@sbcglobal.net.

Midwest/Ohio Valley Meeting to Focus on Regional Advocacy

The Midwest and Ohio Valley Joint Regional Summer Meeting will be held on Thursday, August 18, 2005 from 7:00 to 11:00 a.m. in St. Louis, Missouri. The guest speakers will include Chuck Shea, U.S. Army Corps of Engineers' Chicago District, on the Fish Barrier; COL Duane Gapinski, Corps' Rock Island District Commander, on the UMR-IWW Navigation Study and Competitive Sourcing; and CAPT Tim Close, Coast Guard Eighth District Inland Waterways Coordinator, on the Waterways Action Plan and the change to Coast Guard sectors. Also invited are representatives from the Coast Guard's Ninth District and an expert on the new licensing regulations. The group will also hear an update on progress on the Towing Vessel Inspection program, along with a national and regional report.

The meeting will be followed by a congressional workshop barge tour that will include lunch, a short program, and ample opportunity to communicate with congressional staffers. Further information on this event can be found on the Midwest/Ohio Valley Meeting registration form as well as in the attached Agri-Business Club letter.

On Wednesday, August 17, the events will begin with a reception from 6:00-7:30 p.m. A fundraiser for Congressman Kenny Hulshof (R-MO) will take place from 7:00-9:00 p.m. Congressman Hulshof is a long-time supporter of waterway issues and was instrumental in ensuring the repeal of the onerous 4.3-cent fuel tax.

The host hotel is the newly renovated Hilton Downtown. Rooms are being held until July 18 at an AWO rate of $139. Contact the hotel directly at (314) 436-0002. The attached registration form is due by July 18, 2005. You can also register electronically at www.americanwaterways.com. For more information, contact Marilyn Clark at (703) 841-9300.

Mississippi River Commission Public Hearings Announced

The Mississippi River Commission will hold four public meetings on board the m/v Mississippi at 9:00 a.m. on the following dates and locations:

Cairo, IL (City Front) - August 22
Memphis, TN (Mud Island) - August 23
Greenville, MS (City Front) - August 24
Morgan City, LA (Port Commission Dock) - August 26

The meetings will include a summary report by the President of the Commission on national and regional issues affecting Corps' programs and projects on the Mississippi River and its tributaries, a District Commander's overview of current projects, and presentations by the public on programs or projects of the Commission and the Corps. For more information, contact Lynn Muench at (314) 446-6474 or awo-midcontinent@sbcglobal.net.

Inland Harbor Service Group Meets

In conjunction with the Southern Region's summer meeting, the Inland Harbor Service Group met in Biloxi, MS. The group's second meeting included updates on members' work as part of the Towing Safety Steering Group (George Foster, JB Marine Services, Inc.) and the Crew Endurance Management Work Group (Mike Khouri, Economy Boat Store). An update on some volatile Louisiana issues that have the potential to cause a domino effect on taxation, including an onerous "Water Bottom Tax," was given by the group's vice chairman Karl Gonzales, Gulf South Marine Transportation, Inc.

The group then turned its attention to an hour-plus presentation on the new licensing regulations by AWO members Roy Murphy, Kirby Corporation; Tom Smith, Canal Barge Co., Inc.; and Taylor DuChaine, Cenac Towing Company, Inc. along with Richard Wells, U.S. Coast Guard - New Orleans Regional Exam Center. The group outlined the differences between the old and new regulations, potential pitfalls for mariners as they apply for a new license, and the change in timelines.

Chairman George Foster asked that all harbor service companies that would like to engage in working groups and/or as part of the committee contact him directly at (314) 894-3805. The next meeting will be held in conjunction with the Midwest/Ohio Valley annual meeting on February 2, 2006 in Louisville, KY. For more information, contact Lynn Muench at (314) 446-6474 or at awo-midcontinent@sbcglobal.net.

Southern Region Holds Summer Meeting

The Southern Region held its Summer Meeting on June 17 in Biloxi, MS. Southern Region Chairman Chuck King opened his remarks by thanking the immediate past Chairman Dave Hanby for his leadership and record of accomplishment. Mr. King also took the opportunity to identify the Southern Region priorities that will serve as the focus of his tenure. They include: institutionalize the grassroots program, increase Southern Region contributions to the PAC, and strengthen the Coast Guard - AWO Safety Partnership at the district and MSO/sector level. Mr. King also invited the Southern Region membership to join him in meeting the challenge of positioning the Southern Region as the gold standard of effective advocacy.

AWO Southern Region Vice President Matt Holzhalb delivered the Southern Region report. Mr. Holzhalb outlined the Southern Region's 2005 Plan for Effective Advocacy, including the efforts Southern Region staff and members have taken over the last several months to accomplish the 2005 Priorities. Mr. Holzhalb also updated the membership on the following issues: licensing, shortage of wheelhouse personnel, communication with commercial fishermen, and the Louisiana Department of Environmental Quality's effort to monitor barges as a source of emissions/pollutants.

Mr. Holzhalb informed the membership that all updates of these issues will be provided in future issues of the AWO Letter.

In addition to the Southern Region report, Mr. Holzhalb provided the membership with an update of the effort to consolidate the various waterways action plans for the Western Rivers and also introduced AWO's grassroots program.

Boyd Hollingsworth, AWO Vice President - Legislative Affairs, delivered the Washington report. Of particular importance, Mr. Hollingsworth provided an update on the progress of the Water Resources Development Act, the status of appropriations bills moving through Congress, and AWO's participation in the litigation against the Commonwealth of Massachusetts.

Mr. Bob Fry, Megafleet Towing, Inc., delivered the towing vessel inspection program update and Mr. Merritt Lane, Canal Barge Company, Inc., and AWO PAC Chairman, provided the membership with the PAC report and challenged the membership to increase its participation in the PAC.

AWO was honored to have LCDR Jim Stewart, Chief of the Administration, Investigations, and Licensing Branch at the Eighth Coast Guard District in New Orleans, provide his perspective and insight regarding drug usage aboard vessels and creative ways employees use to circumvent testing and collection procedures.

On June 16, preceding Friday's general membership meeting, the Inland Harbor Service Work Group, chaired by George Foster of JB Marine Service, Inc., held a meeting to discuss crew endurance management, towing vessel inspection, and local issues. The group opened its invitation to all sectors of the industry to participate in a special presentation on licensing. Roy Murphy, Kirby Corporation; Tom Smith, Canal Barge Company, Inc.; Taylor DuChaine, Cenac Towing Company, Inc.; and Richard Wells of the Coast Guard's New Orleans Regional Exam Center provided answers to some of the more confusing elements of the current licensing regulations.

The Inland Harbor Service Group meeting was followed by a reception generously sponsored by Elmwood Marine Services and Florida Marine Transporters, Inc. The continental breakfast and the meeting's beverage service were generously sponsored by Magnolia Marine Transport Company and Trinity Marine Products, Inc.

For additional information, please contact Matt Holzhalb, AWO Southern Region Vice President, at (504) 799-2239 or via email at mholzhalb@vesselalliance.com.

AWO Members Recognized at Jones F. Devlin Awards, Ship Safety Achievement Awards

On June 9th, 2005 the Chamber of Shipping of America held its Annual Jones F. Devlin Awards Luncheon in New Orleans to recognize the safety and achievement efforts of vessels and crews in marine transportation. Among the Devlin Award recipients were AWO member companies who set the standard for safety for 411 vessels marking 2,231 years of safety. That record of safety nets AWO members' vessels an average of 5.42 years per vessel without a crewmember losing a full turn at watch because of an occupational injury. A listing of the AWO recipients of the Jones F. Devlin Award is below.

American Commercial Barge Line, LLC
American Electric Power (River Division and River Operations)
Canal Barge Company, Inc.
Crescent Towing Company, Inc.
Crosby Tugs, Inc.
Ingram Barge Company
Kirby Inland Marine, LP (Canal, River and Offshore Group)
Marathon Ashland Petroleum, LLC
Maritrans Operating Company, LP
Moran Towing Corporation
Petroleum Service Corporation
Reinauer Transportation Companies, LLC
SeaRiver Maritime, Inc.
Southern Towing Company
TECO Barge Line and TECO Ocean Shipping
United Tugs, Inc.
Weeks Marine, Inc.
Westar Marine Services

Louisiana Department of Environmental Quality to Monitor Barges
State Agency Will Monitor and Survey Potential Sources of Emissions from Fleets and during Transfer Operations

Baton Rouge is classified by the Environmental Protection Agency as a "Non-Attainment area," an area in which the air pollution levels persistently exceed the national ambient air quality standards. The Louisiana Department of Environmental Quality (DEQ) is required to monitor and identify the sources of emissions that contribute to increased levels of pollution.

The DEQ currently has several land-based monitoring and surveillance devices in and around the Baton Rouge area. The Department suspects that these land-based monitoring devices do not capture and identify all sources of potential emissions. To better meet its objective, the DEQ has purchased a boat that will be equipped with monitoring devices. Agency officials expect the boat to be delivered in July and confirm that the DEQ has received navigation and communication training from Houston Marine. Related to this initiative is the agency's purchase of a camera capable of detecting emissions and producing infrared-like images on its screen. The camera is portable enough to be mounted on any vehicle, including on a boat or helicopter.

The DEQ manager heading up this initiative envisions a vessel capable of detecting emissions that are not currently being detected, particularly at possible sources like barge fleets and/or during barge loadings and discharges. The initiative is in its infancy stage and its full scope is yet to be determined. Towing and barge industry representatives Brian Rafferty of Custom Fuel Services and AWO Southern Region Vice President Matt Holzhalb met June 13 with the Department's Assistant Secretary, the Regional manager of the Surveillance Division, and the Environmental manager within the Surveillance Division to formally introduce the industry, to get a sense for the agency's direction and scope, and to offer industry's help in developing the initiative.

The towing and barge industry is in the process of forming an advisory team to assist the DEQ with developing the scope of this initiative. For additional information, please contact Matt Holzhalb at (504) 799-2239 or via email at mholzhalb@vesselalliance.com.

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