Environmental Compliance in the Cruise Industry
May 31, 2001
Dennis L. Bryant- New York
ABSTRACT
The deep-sea, overnight cruise industry is the fastest growing segment of the
maritime industry with annual growth rates of eight to ten percent. The
environmentally sound and legally compliant operation of its ships is a priority
of cruise ship operators. The changing legal landscape, increasing public
interest, the activities of a number of interested parties, ship operational
requirements, technical innovations, and evolving environmental sensitivity are
some of the specific aspects of the overall cruise ship environmental issue. A
discussion on these various aspects is presented in order to inform the reader
of some of the specific actions and developments to date and to provide a better
understanding of the overall issues.
INTRODUCTION
Regulatory and public interest in the potential impacts of cruise ship
operations on the environment continues to draw significant attention. As a
result of a recent petition by a group of public environmental advocates, the
U.S. Environmental Protection Agency has undertaken the task of evaluating
cruise ship operations and their potential environmental impacts. This effort is
being undertaken concurrently with similar evaluations by states such as Alaska,
Florida, and California. The cruise industry is working closely with regulatory
agencies and the public to address operational and environmental concerns.
This paper describes the complex legal regime in which the industry currently
must operate and the methods the cruise industry uses to meet these stringent
environmental requirements. Included is a discussion of current engineering and
operational practices applied by the cruise industry to minimize the
environmental impacts of their operations.
The paper concludes with an overview of technical and operational changes
that are anticipated as a result of current and future regulatory efforts and
related developments. A brief industry outlook is also presented.
THE CRUISE INDUSTRY
The U.S.-based, deep-sea, overnight cruise industry served over 6.9 million
passengers in 2000 and operated 123 ships on numerous itineraries through the
Caribbean, Alaska, and other exotic locales. The total economic impact in the
United States alone was calculated to be over $15 billion. To say that the
cruise industry is the fastest growing segment of the overall maritime industry
is an understatement. With a growth rate of between eight and ten percent over
the past several years, as of January 2001, there were fifty-three new cruise
ships on order to be delivered by 2005. At a total investment of over $18.5
billion, these new ships will add over 98,000 berths to the market (Seatrade
Cruise Review 2001). As a specific example of growth, one major cruise
operator will increase its capacity from 18,670 available berths in 1998 to
45,006 berths in 2004 – a whopping 241% expansion (International Cruise and
Ferry Review). This expansion will be even greater if options for additional
ships are exercised. With this explosive growth come great opportunities as well
as great challenges. One such challenge is the environmentally sound and legally
compliant operation of these ships.
THE LEGAL REGIME
Cruise ships operate within a pervasively regulated industry. They are
subject to control and oversight from their flag state (i.e., the nation with
which they are registered), the port states (i.e., the nations at which they
make port calls), and, in the United States, the individual states and
localities that they visit. International standards are developed by the
International Maritime Organization (IMO). Cruise ships are also inspected and
surveyed by classification societies. With respect to environmental issues, the
major international standard applicable to cruise ships is the International
Convention for the Prevention of Pollution from Ships, commonly referred to as
MARPOL. This standard addresses such things as operational discharges of oil,
disposal of garbage and plastics, and air emissions. Most flag states and port
states, including the United States, have adopted MARPOL requirements as their
domestic standard, so that compliance with this convention constitutes
compliance with national law. The International Safety Management (ISM) Code
required by Chapter IX of the International Convention for the Safety of Life at
Sea (SOLAS) is also important to environmental protection. This code requires an
extensive Safety Management System (SMS) that addresses safety and environmental
management practices and procedures.
The United States has also adopted a series of national environmental laws
that are applicable to all cruise ships operating in U.S. waters. The drafters
of some of these statutes, such as the Federal Water Pollution Control Act (FWPCA),
consciously considered maritime issues. Other statutes, though, such as the
Clean Air Act (CAA) and the Resource Conservation and Recovery Act (RCRA), were
implemented with little or no consideration of maritime application, which was
primarily recognized after the fact. The FWPCA prohibits the discharge of oil
and hazardous substances into waters of the United States. It also addresses the
operation of marine sanitation devices (MSDs). The CAA authorizes the U.S.
Environmental Protection Agency (EPA) to establish air emission standards and
impose civil penalties for emissions in excess of those standards. RCRA
authorizes the EPA to establish regulations relating to the handling and
disposal of hazardous waste. Under this statute, the EPA has developed a complex
and paperwork-intensive program that tracks hazardous waste "from cradle to
grave."
In the federal system of the United States, each state has broad residual
authority or "police power" over most issues, with the exception of
things such as national defense and coinage, and regulation of interstate or
foreign commerce. One area in which the states and local jurisdictions have and
exercise extensive authority is that of environmental protection. Thus,
balancing the states rights against federal interests, each state or community
visited by a cruise ship may adopt standards with respect to defining
permissible discharges, including graywater (from dishwashers, showers, laundry,
bath, galleys, and washbasins), blackwater (sewage and medical and dental sink
drainage), oil, ballast water, and air emissions. Florida, where the majority of
large cruise ships are based, has adopted stringent standards for hazardous
waste management, in accordance with the RCRA. California has initiated programs
affecting cruise ships by addressing such things as ballast water discharges and
air emissions.
PRIOR ENVIRONMENTAL VIOLATIONS
Over the past several years, the cruise industry has experienced several
highly visible environmental violations. They have been cited for discharges of
oily waste, hazardous substances, and plastics, as well as excessive air
emissions. In an effort to improve their stature as good environmental citizens
and reduce the risk of future environmental violations, cruise lines are
adopting compliance programs that establish formal internal regimes for meeting
or exceeding environmental standards, and for training and auditing. They are
also installing new equipment to significantly reduce discharges and emissions.
THE GAO REPORT
The United States General Accounting Office (GAO) published a Report to
Congressional Requesters in February 2000 (GAO 2000). This report, entitled
"Marine Pollution – Progress Made to Reduce Marine Pollution by Cruise
Ships, but Important Issues Remain," was developed in response to a request
by Congressman John D. Dingell (D-MI) and Congressman Henry A. Waxman (D-CA) and
addressed the general issue of cruise ship environmental performance and several
specific related issues, for the period of 1993-1998. The report concluded that
federal agencies and the cruise industry have recently taken positive steps to
improve environmental performance and compliance. While the report indicated
that only four percent of the pollution violations by commercial foreign-flagged
ships were attributable to cruise ships, and that many of these instances were a
result of accidents, such as failed hydraulic lines and spilling of "a few
drops of paint," it also recognized that a number of significant
environmental issues still require attention by all parties. These issues
include technical and scientific aspects of environmental protection, as well as
operational, legal, administrative, and policy matters.
THE BLUEWATER NETWORK PETITION
On March 17, 2000, the environmental advocacy group, Bluewater Network, and
53 other organizations sent a petition to the EPA urging various regulatory
actions to further control cruise ship discharges. The petition, and an
accompanying report entitled, "Cruising for Trouble: Stemming the Tide of
Cruise Ship Pollution," (Schmidt 2000) expressed concern over a number of
issues including, the magnitude of the discharge volumes from an increasing
number of larger cruise ships. The petition and report recognized that cruise
ships generate and discharge several waste streams and requested that the EPA
take the following actions:
Assess the volumes and characteristics of cruise ship discharges.
Identify potential water quality, aquatic environment, and human health
impacts.
Examine existing federal regulations governing cruise ship discharges.
Recommend means to control and regulate cruise ship discharges.
Outline monitoring and record-keeping options for pollutants discharged by
cruise ships in U.S. ports.
EPA INITIATIVES
Traditionally, the EPA has paid scant attention to ships. In addition to
exempting discharges from properly operating marine engines from the FWPCA
prohibitions, the agency also exempted discharges of sewage, wastes from
laundries, showers, and galley sinks, and other discharges incidental to the
normal operation of a vessel from requiring permits under the National Pollutant
Discharge Elimination System (NPDES). Sewage treatment and discharge, however,
is addressed in the law and in implementing regulations overseen by the United
States Coast Guard. In response to the Bluewater Network petition and other
concerns expressed, the EPA has undertaken a study of environmental issues
associated with crui