California Moves Towards Stricter Environmental Regulation of the Cruise Ship Industry
 
January 6, 2005
 

The environmental activities of large seagoing vessels have become a focal point for legislation in California and on a national level. Impending regulations in California such as those supported by the California Air Resources Board to reduce particulate matter, sulfur, and nitrogen oxide emissions from category 3 marine diesel engines are just one prominent example of the state’s continuing efforts to mitigate what it believes is a significant, and heretofore under regulated, source of environmental contamination, namely the shipping industry. Effective September 30, 2004, California added three new statutes specifically directed to the cruise ship industry in its effort to reduce the sources and risks of vessel-based air and water pollution. The three statutes, AB 2093, AB 2672 and AB 471, apply to all cruise ships operating in California’s territorial waters and address the release of graywater, sewage and smoke from vessel incineration.

The three bills define large passenger vessels as “a vessel of 300 gross registered tons or greater that is engaged in the carrying of passengers for hire,” excluding those without overnight accommodations for passengers or noncommercial vessels. The first bill, AB 2093 prohibits cruise ships from discharging graywater – water from kitchens, laundries and showers – into state waters. The bill also requires the owner or operator of such a vessel to notify the State Water Resources Control Board should such a discharge occur, and provides for civil penalties up to $25,000 per violation. Prior to enacting this bill, graywater was unregulated and could be discharged anywhere, including in port.

AB 2672 prohibits cruise ships from releasing sewage, regardless of whether it is treated or untreated, into state waters. It also provides for civil penalties for violation of the statute of not more than $25,000 for each violation. Until January 1, 2005, cruise ships are permitted to release treated sewage anywhere, including in port. Untreated sewage can be released just outside of state waters. However, the state may have to obtain EPA for approval of this bill, as any ban on sewage dumping must be approved by the EPA before it can take effect. The Water Resources Control Board may determine, though, that an application to the EPA is not necessary.

Finally, AB 471 prohibits cruise ships from burning garbage, paper, sludge, or any other materials in onboard incinerators while operating within three miles of the California coast.

Also of potential high importance, specifically to the cruise industry, is the Clean Cruise Ship Act of 2004, H.R. 4101, which was introduced to the United States Congress earlier in 2004. This act would prohibit discharge of any sewage or bilge water within 12 miles of U.S. shore and within the Great Lakes, establish uniform treatment standards for sewage discharge outside of 12 miles, and authorize the Coast Guard and EPA to develop and enforce these new standards. The bill is currently before the Subcommittee on Coast Guard and Maritime Transportation.

Not only do these bills directly target the cruise ship industry, they also demonstrate the growing shift in legislative and rule making attention to vessel-caused air and water pollution. The federal government has also turned its eye toward oceangoing vessels, with the imminent implementation of MARPOL Annex VI, which relates to air pollution from ozone depleting substances, incinerators, emissions from tanker operations and the emissions of NOx and SOx from ship engines. Additionally, the recent regulations promulgated by the EPA, called the 2003 Rule, relate to the sulfur content of fuel oil used in oceangoing ships. The trend toward regulation continues to increase as environmental standards for the shipping and cruise line industry promise to become stricter.

Attorneys at Holland & Knight anticipate that efforts to extend California’s jurisdiction over the shipping industry will continue, even beyond its territorial limit. These efforts could potentially impact smoke stacks, offshore operations, or a multitude of other sources of effluence. Although these new regulations will likely have the greatest effect on Southern California, the impact will certainly be felt across the state, or even nationwide.

For more information, e-mail Robert Bleicher at robert.bleicher@hklaw.com, respectively, or call toll free, 1-888-688-8500.