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December 19, 2008

EPA Issues Vessel General Permit



By Brien J. Flanagan


C. Kent Roberts


David F. Bartz, Jr.

Yesterday the EPA issued its final Vessel General Permit (VGP), establishing a new regulatory regime for commercial vessels. This morning the federal district court in California granted a two-month extension, until February 6, 2009, for vessels to comply. All commercial vessels over 79 feet in length will need the permit because of a court order which will revise the Clean Water Act by removing EPA's long-standing exclusion of vessels and boats from the Act's permit requirements. Failure to have a permit and to comply with its terms subjects the vessel to penalties of up to $32,500 per day per violation, as well as additional agency enforcement and criminal penalties.

Vessel owners and operators are advised to review the final permit terms and institute protocols to ensure compliance (a copy of the Final Permit can be obtained at http://www.epa.gov/npdes/vessels). EPA and the Coast Guard have indicated that for the next few months they will be assisting vessel owners and operators with compliance. Nevertheless, we strongly recommend owners and operators immediately take a diligent approach to compliance because of the threat of citizen suits. Provided below is a brief overview of the scope of the permit and some additional concerns of which vessel owners and operators should be aware. If you have questions or need more information, please contact Kent Roberts, Dave Bartz or Brien Flanagan.

Who is impacted?
• All owners or operators of commercial vessels over 79 feet in length.

What types of discharge are covered?
• The permit covers a wide variety of common effluent discharges from vessels including, for example:

• Deck Runoff
• Bilgewater/Oily Water Separator Effluent
Boiler/Economizer Blowdown
• Chain Locker Effluent
• Gas Turbine Wash Water
• Ballast Water
• Aqueous Film Forming Foam (AFFF)
• Graywater
• Rudder Bearing Lubrication Discharge

What is an owner or operator required to do?
• EPA has issued a general permit that includes a host of general requirements applicable to all commercial vessels subject to the permit. In addition, the permit includes vessel class-specific requirements (e.g., additional requirements for barges, oil tankers, medium cruise ships). Owners and operators of vessels must institute management practices to ensure compliance with applicable permit requirements.

• The permit includes monitoring, recordkeeping and reporting requirements, including a one-time permit report that must be submitted between 30 and 36 months after obtaining permit coverage.

What does an owner or operator do in the event of noncompliance?
• In the event that a permittee violates the permits terms, the owner or operator must take corrective action, including following the requirements for a corrective action assessment and instituting measures to come into compliance. A vessel owner or operator must submit a report of all instances of noncompliance annually.

How does a vessel obtain coverage under the permit?
• Initially, all commercial vessels over 79 feet will be covered under the permit automatically. Vessels greater or equal to 300 gross registered tons or with the capacity to hold or discharge 8 cubic meters (2,113 gallons) of ballast water must submit a Notice of Intent (NOI) with EPA between June 19, 2009 and September 19, 2009.

NOI Submission Deadlines/Discharge Authorization Dates

Category

NOI
Deadline

Discharge
Authorization Date

Vessels delivered to owner or operator on or before June 30, 2009 No later than 9 months after permit effective date Date EPA receives NOI
New owner/operator of vessel – transfer of ownership and/or operation of a vessel whose discharge is previously authorized under this permit By date of transfer of ownership and/or operation Date of transfer or date EPA receives NOI, whichever is later
Vessels delivered to owner or operator after June 30, 2009 30 days prior to discharge 30 days after complete NOI received by EPA

Do I need a State Permit?
• No. The Clean Water Act empowers states to review the EPA permit to ensure that it meets state water quality standards. A state may certify the permit as is, certify the permit with additional conditions applicable in state waters, or deny the permit. Failure of the state to certify or deny the permit within a reasonable time results in a waiver of the state's right to certify the permit.

The Pacific states have taken different approaches to the certification process. The result is that the permit is effective without conditions in Washington, Oregon, and Alaska. California has included additional conditions for compliance (California's certification can be found at http://www.epa.gov/npdes/pubs/401_california.pdf).

How do I get more information?
EPA website: http://www.epa.gov/npdes/vessels

Contact Schwabe attorneys:

C. Kent Roberts
503-796-2888
ckroberts@schwabe.com

David F. Bartz, Jr.
503-796-2907
dbartz@schwabe.com

Brien Flanagan
503-796-2915
bflanagan@schwabe


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