No 1/2006 November 2006 1. IMO Update (i) IMO issues Circular Letter 2730 on MARPOL Annex II Revisions (ii) IMO Reviews List of Reclassified Products (iii) 12th Session of the IMO Working Group on the Evaluation of Safety and Pollution Hazards (ESPH 12) 2. Regulatory and Legislative Issues (i) USCG’s Chemical Transportation Advisory Committee (CTAC) Update (ii) The Hazardous Cargo Transportation (HCTS) Sub-committee (iii) USCG NVIC Update 3. MARPOL Annex II Update (i) INTERTANKO to publish MARPOL Annex II Booklet (ii) INTERTANKO Biofuels Update 4. Safety Updates (i) Bow Mariner report – USCG reply to INTERTANKO/ICS response 5. Coordination with other Associations (i) INTERTANKO attends NIOP 2006 (ii) API Chemical Measurement Working Group 6. INTERTANKO Chemical Committee meetings (i) Joint Chemical Tanker Committee (CTC) and Chemical Tanker Sub-committee (Americas) (CTSCA) meetings held (ii) Joint Chemical and Vetting Seminar Held 7. CDI – Inspector Appointment Revisions 8. MARPOL Annex II Reception Facilities Survey 1. IMO Update to now circulate the formal circular from the IMO outlining an overview of the revisions (see below). (i) IMO issues Circular Letter No. 2730 on MARPOL Annex II Revisions The three-page Circular Letter gives a synopsis of the adoption of the revisions by Resolutions MEPC.119 (52) and MSC.176 (79). It explains that they were accepted on 1 July 2006 and reiterates that they will enter into force on 1 January 2007. As the Circular Letter states, “The purpose of this circular letter is to explain the principal points of the revision and to ensure that all parties are aware of their obligations as from 1 January 2007”. On 3 July 2006 the International Maritime Organization (IMO) issued Circular Letter No. 2730 to all IMO Member States and all Parties to MARPOL 73/78, the United Nations (the IMO parent organisation) and its specialised agencies, all Intergovernmental Organisations and Non-Governmental Organisations with Consultative Status. The Circular also explains: The subject of the Circular Letter is the “Entry into force of the revised Annex II to MARPOL 73/78 and the amended IBC Code”. This document mirrors the information contained in many of the INTERTANKO documents forwarded over the last three years on this very important issue. We are pleased G Why the revisions were considered necessary; the purpose of the work of the Joint Group of Experts on the Scientific Aspects of Marine Environmental Protection (GESAMP) in revising its hazard evaluation procedure for chemical products carried by ships to bring it in line with the U.N.’s Globally Harmonised System of Classification and Labelling of Chemicals (GHS); G The subsequent re-evaluation of all of the products listed in the current IBC Code and in the relevant sections of the MEPC.2/Circular as well as the reevaluation of products; G The relative development of a new pollution categorisation system and criteria for assigning products to these new categories; G The revision of stripping requirements and discharge criteria and why it was necessary to make a number of amendments to the IBC Code, in particular the criteria for ship typing from an environmental point of view; G That in the process of re-evaluation of the products it was revealed that a large number of products in the IBC Code had incomplete GESAMP hazard profiles because data related to safety and/or pollution issues were missing. The subsequent efforts over the next three years by IMO and industry to provide the missing data allowed the GESAMP hazard profiles to be completed. G The fate of any of the products omitted from the amended IBC Code due to missing safety and/or pollution data: They will appear in List 1 of the MEPC.2/Circular, which will be issued on 31 December 2006. Products with missing data omitted from the amended IBC Code that have not yet been re-evaluated can be carried under a tripartite agreement but no such agreement should be established until confirmation has been received by the Administration that the required data have been submitted to the GESAMP/EHS Working Group. G That BLG.1/Circ.19 was recently issued listing those products which to date have been classified or reclassified since the adoption of the amended IBC Code in 2004 (see article in this issue). The purpose of this circular is to assist national Administrations and other stakeholders in their preparations for the entry into force of the revised MARPOL Annex II and the amended IBC Code. G Why regulation 4.1.3 of MARPOL Annex II was developed, to allow unmodified oils and fats displaying the footnote (k) in column ‘e’ in Chapter 17 of the amended IBC Code to be carried on ship Type 3 chemical tankers, on the condition that these chemical tankers meet all the requirements for ship Type 3 and are provided with double bottom and double sides meeting the specifications laid out in regulation 4.1.3. This is also a reminder that the vast majority of noxious liquid substances will now be subject to regulation; and revised stripping limits will greatly reduce the amount of residues that vessels will be allowed to discharge into the marine environment. The Circular Letter also reiterates that the 24th session of the IMO Assembly recognised the importance of this provision, and that the 54th session of the Marine Environment Protection Committee (MEPC 54) confirmed that when an Administration agrees on an exemption, regulation 4.1.3 is the only regulation for existing and new ships to be used for vegetable oils identified by footnote (k) in column 'e' in Chapter 17 of the amended IBC Code. The document also clarifies that regulations 4.1.1 and 4.1.2 were only developed to allow Administrations to submit to the Organization a relaxation of certain provisions of an amendment under restricted conditions, for a specified period and for existing ships only, and that these regulations were not permitted to be used for the vegetable oils under footnote (k). Lastly the Circular Letter reiterates that before 1 January 2007, vessels certified to carry noxious liquid substances identified in Chapter 17 of the IBC Code will have to be issued with new Certificates of Fitness and Procedures and Arrangements (P&A) Manuals reflecting the changes in categorisation of products, and this should be taken into account when preparations for entry into force are undertaken. The final paragraph of the Circular Letter contains a table indicating possible scenarios with regard to certification and the action to be taken in each case. Type of concern Action to be taken in relation to existing certificate certificate under the revised MARPOL Annex II Action to be taken in relation to Certificate valid until after 1 January 2007 N/A Issue a certificate under the revised MARPOL Annex II starting as from 1 January 2007 with an identical expiry date as the existing certificate. Renewal survey on or after 1 July 2006 Extend the validity of the existing certificate to 1 January 2007. Issue a new certificate under the revised MARPOL Annex II with an expiry date of 5 years from the survey date. Change of flag on or after 1 July 2006 Replace the coversheet of the current certificate R with an extension of the validity to 1 January 2007. survey date. Issue a new certificate under the revised MARPOL Annex II with an expiry date of 5 years from the renewal Delivery of a new vessel (e.g. 1 July 2006) Issue a short term certificate under the current MARPOL Annex II valid until 1 January 2007. Issue a full term certificate alid for 5 years after the initial survey. Click here to view the Circular Letter. (ii) IMO Reviews List of Reclassified Products As part of the agenda for MEPC 55, the Committee reviewed and accepted MEPC 55 WP 8, a working paper developed by the drafting group tasked to review the amendments to the IBC Code. MEPC WP 8 contains a listing of the products that have been classified or re-classified since the adoption of the amended IBC Code at the 52nd Session of the IMO’s Marine Environment Protection Committee (MEPC 52) and the 79th Session of the Maritime Safety Committee (MSC 79) in 2004 and the products to be included (to date) in the December 2006 issue of the MEPC.2 Circular. Although the amendments made since the 2004 adoption will not be officially entered into the Code until 2009, all the products amended or added since then will be included in MEPC.2 Circular 12 due out 31 December 2006. As INTERTANKO has previously reported, the evaluation and assignment of the carriage requirements of products have continued through the work of the GESAMP/EHS (GESAMP Working Group on the Evaluation of the Hazards of Harmful Substances Carried by Ships) and the ESPH (Working Group on the Evaluation of Safety and Pollution Hazards) respectively. The draft amendments to the complete Chapters 17 and 18 of the IBC Code were submitted to the MEPC 55 for consideration at MSC later this month and at MEPC 56 in December 2006. This document, once approved, will supersede BLG.1/Circ. published this summer as a way to aid class and flag administrations with the issuance of certificates. Members are reminded that as decided at BLG 9, when a cargo is loaded prior to the entry-into-force date and unloaded after the entry-into-force date of the revised Annex II to MARPOL 73/78, the classification of the cargo at the time of loading should remain valid until it has been unloaded. (iii) 12th Session of the IMO Working Group on the Evaluation of Safety and Pollution Hazards (ESPH 12) INTERTANKO participated in the 12th Session of the IMO Working Group on the Evaluation of Safety and Pollution Hazards (ESPH 12). INTERTANKO Chemicals Manager, Margaret Doyle, attended the meetings held at the United Kingdom Maritime and Coast Guard Agency (MCA) in Southampton, UK from 4-8 September. ESPH 12 was chaired by Mrs. Marja Tiemens-Idzinga from the Netherlands. The group included delegations from 15 countries (Belgium, the Cook Islands, Finland, France, Germany, Japan, Malaysia, Mexico, the Netherlands, Norway, Panama, Sweden, Thailand, the United Kingdom, and the United States of America) and five non-governmental organisations [European Chemical Industry Council (CEFIC), International Association of Ports and Harbors (IAPH), International Chamber of Shipping (ICS), INTERTANKO, and International Parcel Tankers Association (IPTA)]. Agenda items discussed included: Outcome of the GESAMP/EHS Working Group The 42nd and 43rd sessions of the GESAMP Working Group on the Evaluation of the Hazards of Harmful Substances Carried by Ships (EHS 42 and 43) were held at IMO Headquarters, London, in February and June respectively. Although a number of the issues stemming from the EHS 42 were discussed at BLG held in April, these outstanding issues were finished. The report of EHS 43 was also reviewed by ESPH 12. As a follow-up to these discussions the group was asked to finalise the draft MEPC.2/Circ.12 on (Provisional Classification of Liquid Substances Transported in Bulk), which will be published by the IMO in December. Evaluation of New Products 3 Of the 33 products submitted, the following 29 classifications were approved by ESPH 12: Product 4 Category Ship Type Tank Type Notes Acetonitrile (low purity grade) Y 3 2G Alcohols (C12-C13), primary, linear and essentially linear Y 2 2G >25% C12 to C13 components. Alcohols (C14-C18), primary, linear and essentially linear Y 2 2G <25% C13 and lower. Synonyms not to be listed. Alcohols (C8-C11), primary, linear and essentially linear Y 2 2G <25% C12 to C13 components. Synonyms not to be listed. Alkyl Benzene Distillation Bottoms Y 2 2G Possible Annex I Cocoa Butter Y 2(k) 2G Synonyms to be included. Coconut Oil Fatty Acid Y 2 2G Synonyms not to be listed. Fatty Acid Methyl Esters (FAME) Y 2 2G Synonyms not to be listed. The current entries for Coconut, Palm, and Rapeseed Oil Methyl Esters to be deleted. Fatty Acids, C12+ Y 3 2G Synonyms not to be listed. Fatty Acids, C16+ Fraction Y 2 2G Synonyms not to be listed. Fatty Acids, C8-C10 Fraction Y 2 2G Synonyms not to be listed. Glucitol/Glycerol blend propoxylated (containing less than 10% amine) Z 3 2G Synonyms not to be listed. Glycerol propoxylated Z 3 2G Glycerol propoxylated and ethoxylated Z 3 2G Glycerol/Sucrose Blend propoxylated and ethoxylated Z 3 2G Hydrogenated Starch Hydrolysate OS NA NA Synonyms to be included. Maltitol Syrup OS NA NA Synonyms to be included. Molybdenum Polysulfide Long Chain Alkyl Dithiocarbamide Complex Y 2 2G A lube oil additive. Non-Edible Industrial Grade Palm Oil Y 2 2G Palm Mid Fraction Y 2(k) 2G Polypropylene Glycol Z 3 2G Shea Butter Y 2(k) 2G Tall Oil Fatty Acids (resin acids less than 20%) Y 2 2G Tall Oil Pitch Y 2 2G Tall Oil, Crude Y 2 2G Tall Oil, Distilled Y 2 2G Trimethylol Propane propoxylated Z 3 2G Vegetable Acid Oils (not otherwise specified)* Y 2 2G *From vegetable oils specified in the IBC Code. Synonyms not to be listed. Vegetable Fatty Acid Distillates (not otherwise specified)* Y 2 2G *From vegetable oils specified in the IBC Code. Synonyms not to be listed. Amending IBC Code. Trade-name synonyms not to be listed. Trade-name synonyms not to be listed. Evaluation of Cleaning Additives (FAME) products. A footnote (m) on this entry will indicate that the FAME products carried are derived from vegetable oils already in the IBC Code. The individual FAME products that have already been evaluated under the new system are palm oil FAME, rapeseed oil FAME and coconut oil FAME. From 1 January 2007 FAME derived from any other vegetable oil already evaluated and classified may be carried under the generic entry. This will also mean that blends of FAME products need not be subject to a mixture calculation. Of the 44 additives presented, 27 met the MARPOL requirements for inclusion in Annex 10 of the forthcoming MEPC.2/Circ.12. Review of pending MEPC.2/circ.12 – provisional classifications, etc. For products subject to tripartite agreements, the revised Guidelines (MEPC.1/Circ.512) supersede those of MEPC/Circ.265. The next edition of MEPC.2/Circ.(12) will be published on 31 December 2006, slightly later than the usual 17 December of each year. The deadline for new entries for MEPC.2/Circ.12 Annex 1 - List 1, will be 01 December 2006. Concern still exists regarding the classification of pollutant only mixtures (information for mixtures will be listed in MEPC.2/Circ.12 Annex 2 - List 2). The deadline for submission of information on mixtures is 30 September 2006. All products currently on list 2 of the MEPC 2 Circ will expire on 31 December 2006. Normally, Chapters 17 and 18 of the IBC Code take precedence over List 1 of the annual MEPC.2/Circular; in this exceptional case the entries in MEPC.2/Circ.12 Annex 1 - List 1, which apply to all countries and have no expiry date, will supersede the entries in the IBC Code. Polypropylene glycol Although polypropylene glycol is already an entry in Chapter 17 of the adopted IBC Code, a new submission approved by ESPH will replace it. The new entry does not change in pollution category or ship type but changes to the carriage requirements include a high level alarm requirement found in Chapter 15 of the IBC Code. Fatty alcohols and fatty acids In order to facilitate the large number of fatty alcohols and fatty acids (oleochemicals) submissions, GESAMP recommended that these products be grouped according to chain length. As is the case with the FAME products discussed above, individual entries previously evaluated will remain in the adopted Code (tallow fatty acid, coconut oil fatty acid), but other products will be referred to by chain length. This will hopefully avoid double entries of products. FAME Products ESPH approved a generic entry for fatty acid methyl esters The following classifications were also finalised by ESPH Product 1,6-Hexanediol distillation overheads and Palm kernel acid oil Category Ship Type Tank Type Y 3 2G Coal Tar Pitch (molten) X 2 1G Creosote (coal tar) X 2 2G Ethylene-vinyl acetate co-polymer Y 3 2G Fluorosilicic acid (20-30%) in water Y 3 1G Polyethylene Polyamines Y 2 2G Polyethylene Polyamines (greater than 50% C5-C20 paraffin oil) Y 2 2G Vegetable protein solution (hydrolysed) Z Notes Regulations 4.1.1 & 4.1.2 of MARPOL Annex II may apply. Changed from Cat. Z to Chapter 18 OS. The re-evaluation of the following products did not translate into a change in their existing classifications: Alkyl (C12+) dimethylamine Ammonium polyphosphate solution Cashew nut shell oil (untreated) 1,6-Dichlorohezane 2,4-Dichlorophenoxy acetic acid triisopropanolamine salt solution Diethylene glycol diethyl ether Ethyl acrylate Pyridine Vinyl ethyl ether Alkyl acrylate-vinylpyridine copolymer in toluene Dimethyl disulphide Isobutyl methacrylate Long chain alkaryl polyether (C11-C20) Pine Oil 2,2,4-trimethyl-1,3-pentanediol-1-isobutyrate The following products were re-evaluated and changed ship type but some also changed pollution categorisation: Product Comment iso- & cyclo-Alkanes (C10-C11) Cat. changed from Z to Y. iso- & cyclo-Alkanes (C12+) Cat. changed from Z to Y. n-Alkanes (C10+) Cat. changed from Z to Y. Alkyl (C9+) benzenes Cat. changed from Z to Y. Alkyldithiothiadiazole (C6-C24) Cat. changed from Z to Y. Calcium long chain alkyl (C11-C40) phenate Cat. changed from Z to Y. Dodecyl/octadecyl methacrylate mixture Cat. changed from Z to Y. Epichlorohydrin Cat. changed from Z to Y. Octanoic acid (all isomers) Cat. changed from Z to Y. Octyl aldehydes Ship Type changed from 2 to 3. Sulphonated polyacrylate solution Moves to Chap. 18; Ship Type changed to N.A. Tridecyl acetate Cat. changed from Z to Y. Vegetable protein solution (hydrolysed) Cat. changed from Z to OS; Moves to Chap. 18, Ship Type changed to N.A. Lube Oil Additives The list of Lube Oil Additives, as in the past MEPC.2/Circ. Annex 11, will be deleted as these substances are all now in the IBC Code. Annex 11 will therefore be deleted from MEPC.2/Circ.12. Agenda items from the full CTAC meeting included a report from the CTAC Hazardous Cargo Transportation Security (HCTS) and the Outreach Sub-committee Work Groups. Included under the umbrella of the Outreach Sub-committee are the Vapour Control Work Group, the Barge Emissions and Placarding Work Group and the MARPOL Annex II Work Groups. Consolidation of the List of Synonyms for Vegetable Oils The Group developed an extensive list of synonyms for vegetable oils to be included in Annex 6 to the pending MEPC.2/Circ.12. It is set out as Annex 6 to the ESPH 12 draft report. The ESPH report will be made available as soon as it is submitted to MEPC for review. 2. Regulatory and Legislative Issues (i) USCG Chemical Transportation Advisory Committee (CTAC) Report The second half of 2006 has been a busy a period for the U.S. Coast Guard (USCG) Chemical Transportation Advisory Committee (CTAC).. The U.S. Coast Guard (USCG) Chemical Transportation Advisory Committee (CTAC) held its most recent meeting in August 2006 in Jeffersonville, IN. 6 (ii) The Hazardous Cargo Transportation (HCTS) Sub-committee The Hazardous Cargo Transportation (HCTS) Sub-committee reported on the issues discussed at the Sub-committee meeting also held on 22 August 2006. The report to the CTAC included a detailed review of the Certain Dangerous Cargo (CDC) requirements currently in place and recommendations made by the Sub-committee regarding CDCs. The CDC issue came to light during the Sub-committee’s review of the Federal Register notice regarding Advance Notice of Arrival (ANOA) Regulations and the problems encountered when vessels are considered to have CDC or CDC residue onboard. In the course of a number of meetings the group has been able to: G Examine and determine the practical issues related to the handling of residues, pumping materials, and realistically assessing the quantity of cargo left onboard after discharge. G Examine the hazards of CDC cargoes relative to properties such as vapour pressure, toxicity, and exposure guidelines. In doing so the group was able to determine that very few cargo residues pose a sufficient risk for the vessel to be considered as carrying a CDC. G Develop an acceptable definition of "residue". It is the recommendation of the HCTS Sub-committee that the following cargoes remain CDCs at all times, even when only residue quantities remain onboard: G Anhydrous Ammonia G Chlorine G Ethane G Ethylene Oxide G Methane (LNG) G Methyl Bromide G Sulphur Dioxide G Vinyl Chloride For all other cargoes the vessel will no longer be classified as a CDC vessel when only residue quantities remain onboard. All of these will require a change to regulations 33 CFR 160.24 and any other regulations affected by changes to the ANOA requirements. It is expected that these changes will be implemented via a Supplemental Rulemaking some time next year. Other Outreach Sub-committee Work Groups Progress reports were also given on the efforts of the Barge Emissions and Placarding and Vapour Control Work Groups. Both met on 23 August 2006. The Barge Emissions and Placarding Work Group has been working closely with industry and regulators to address barge emissions and proper placarding issues raised by the Louisiana Department of Environmental Quality (LDEQ). The Work Group is led by Amy Husted of Kirby Corporation. The Vapour Control Work Group was revived in preparation for the vapour control regulations to examine the recommendations made by the CTAC at the inception of that regulatory project. An interim progress report was presented by CTAC member Ed Shearer of Shearer & Associates. The next meeting of the USCG CTAC is tentatively scheduled for April/May 2007 possibly in the Boston area. (iii) USCG NVIC Update Although the U.S. will become party to these amendments, the U.S. regulations will not be completed in time for their entry into force date of 1 January 2007. Therefore, the USCG regulations that will be in effect on that date will be the current regulations for the transport of Annex II substances. The U.S. Coast Guard does not intend to object under the provisions of Article 16 of the MARPOL Annex II Revisions. The USCG intends to develop a Navigation and Vessel Inspection Circular (NVIC) (guidance document to industry) that will provide the industry with a method of complying with the regulations in effect. This elective method will reflect the revised Annex II. The NVIC will reflect the process that the shipowner should follow if it should choose to use the elective method. In November 2005, the Chemical Transportation Advisory Committee (CTAC) voted to approve the formation of the MARPOL Annex II Work Group, whose primary objectives will be to develop a framework for the Navigation and Vessel Inspection Circular (NVIC) that will be used to implement MARPOL Annex II. The INTERTANKO representative chairing the MARPOL Annex II Work Group apprised the Committee of the various meetings held since its inception in 2005 up to its final meeting on 22 August 2006 and presented the final report of the group. All of the hard work of the last nine months has culminated in a "draft guidance" that contains recommendations from CTAC regarding the development of the Navigation and Vessel Inspection Circular (NVIC) that will be used to implement MARPOL Annex II. The document developed by the MARPOL Annex II Work Group is in a format similar to that of an NVIC but is not intended to represent a “draft” of the document that will be ultimately published and utilised by the U.S. Coast Guard and industry. It should be noted, however, that this document - regardless of the positions taken on particular issues - represents work that is integral to the development of the skeleton that will implement MARPOL Annex II in the U.S. until the rulemaking process begins. It was also decided that this Work Group should remain intact for 2007 in order to address any MARPOL Annex II implementation issues that may arise. To view a copy of the final MARPOL Annex II Work Group report click here. The final recommendations contained in the draft guidance were submitted for approval to the full Committee and are now available on the USCG portal homeport (http://homeport.uscg.mil). To view the draft guidance click here. At the time of this document going to press the USCG NVIC is in internal clearance within the USCG and has yet to be released. It will be posted on the NVIC website as soon as it is approved for release (http://www.uscg.mil/hq/g-m/nvic/index00.htm) and will be placed on the INTERTANKO web immediately after. 3. MARPOL Annex II Update (i) INTERTANKO to Publish MARPOL Annex II Booklet Following discussions with a number of members, INTERTANKO was asked to develop a comprehensive publication, focusing solely on the MARPOL Annex II Revisions. This booklet, due for publication in early November, will contain the most up-to-date list of products found in the Amended IBC Code as well as the most current MEPC 2 Circular. The publication will also summarise the exemption for veg oils under Regulation 4.1.3 and will highlight the various INTERTANKO efforts on this. (ii) INTERTANKO Biofuels Update The term biofuel encompasses a diverse range of products such as bio-gas, biodiesel and bioethanol. Any fuel made from a renewable biological source is considered a biofuel. Biofuels include ethanol, biodiesel, and methanol. Biofuel is derived from “biomass” - recently living organisms or their metabolic byproducts, such as waste streams, (agricultural, domestic or municipal). It is a renewable energy, unlike other natural resources such as petroleum, coal and nuclear fuels. From a global warming perspective, the carbon in biofuels was recently extracted from atmospheric carbon dioxide by growing plants, so burning it does not result in a net increase of carbon dioxide in the earth’s atmosphere. Liquid biofuels are mainly developed as a vehicle fuel. The major players are biodiesel (methylester of vegetable oils) and bioethanol. Biodiesel is produced from a variety of vegetable oils, including but not limited to palm, rape, canola, soy, linseed, coconut, mustard and cotton oils. It can also be manufactured from tallow oil and yellow grease (used cooking oils). The production process is to modify the oils through esterification to give glycerine as a useable by-product. Because of the already existing infrastructure for processing soft oils such as palm oil, countries in Asia and Latin America are looking to invest in biodiesel production, resulting in significant increases in the exports of crude palm oil and fatty acid methyl esters (FAME). According to expert forecasts, there will be some 100 new biodiesel and bioethanol plants in Europe by the year 2010. Bioethanol is a readily available, clean fuel that can be utilised in combustion engines in different ways: Anhydrous (or dehydrated) ethanol is free of water and at least 99% pure. This ethanol can be blended with conventional fuel in proportions up to 85% (E85). Blends up to 20% can be used in modern engines without modification. Traditionally, MTBE (Methyl Tertiary Butyl Ether) or ethanol has been added as an oxygenate to gasoline at 6-10% blend for a cleaner burn. As the use of MTBE has been banned by a growing number of states, the U.S. ethanol market has grown from 2.3 to 4 billion gallons in the last three years. Higher blends require modified engines that run as flexible fuel vehicles (FFVs). There are currently over a million FFVs on the road in the U.S. with an increasing number added each year, and there are a small but growing number of E85 gas stations, primarily in the Midwest. Finally, bioethanol is also used to manufacture ETBE (ethyltertiary-butyl-ether), a fuel additive for conventional petrol. Because ethanol is a great solvent and pulls in water, it is typically not mixed with gasoline prior to being shipped via pipeline. In the U.S. most blends are shipped separately; the gasoline is transported via pipeline and the ethanol is sent by truck/rail/barge for blending at the distribution point. In the U.S., for example in the state of New York, which uses a 10% ethanol blend, a terminal south of Albany receives 100% ethanol by barge and mixes it with gasoline from a pipeline. The U.S. Congress has recently passed a Renewable Fuel Standard (RFS) that requires a minimum percentage of liquid fuels from renewable sources. At current gasoline prices there is an economic incentive to blend more than the required levels of ethanol. In markets where states have not yet banned MTBE, distributors are switching to ethanol blends for economic reasons. These generic terms “biofuel” and “biodiesel” involve a number of different products. Because of this, these products cannot be shipped under MARPOL Annex II using these trade names. Most of the discussion recently regarding the classification of bio-fuels has been predominantly about biodiesel. The majority of biodiesel cargoes are fatty acid methyl esters (FAME), which can have various compositions. There are only three fatty acid methyl esters approved for carriage under the current MARPOL Annex II: Palm oil fatty acid methyl ester (currently in the IBC Code) Coconut oil fatty acid methyl ester (currently in the IBC Code) Rapeseed oil fatty acid methyl ester (currently in list 1 of MEPC.2 Circ) All three of these products are Category D and Chapter 18. Tripartites are required for any fatty acid methyl ester other than those listed above. Soyabean oil fatty acid methyl ester is currently being tripartited between the United States, the U.K. and Singapore. (It to will be a Category D and Chapter 18.) Any new entity looking to transport this cargo must also be listed as a party to the agreement. ESPH 12 approved a generic entry for fatty acid methyl esters (FAME) products. A footnote (m) on this entry will indicate that the FAME products carried are derived from vegetable oils already in the IBC Code. The individual FAME products that have already been evaluated under the new system are palm oil FAME, rapeseed oil FAME and coconut oil FAME. From 1 January 2007 FAME derived from any other vegetable oil already evaluated and classified may be carried under the generic entry. This will also mean that blends of FAME products need not be subject to a mixture calculation. Regardless of the base oil, FAME products are not “unmodified” oils, and will not be considered applicable under the exemption clause in MARPOL Regulation 4.1.3. (carried in Type 3 space with Type 2 hull requirements). Right now some charterers are lobbying to consider biofuels and biodiesel as Annex I cargoes and not Annex II. There are obviously other stakeholders that wish to assess each individual product separately under Annex II, including applicable biofuels, in Chapters 17 and 18 of the IBC Code. Most bio-ethanol cargoes (and some biodiesels) containing any blend containing 85% or more of a mineral diesel oil or gasoline qualify as an Annex I product. The issue of the carriage of biofuels will become more prevalent as more of this product is shipped. Classification of these products needs to be discussed in greater detail and resolved to ensure the trade can continue after 1 January 2007. 4. Safety Updates (i) Bow Mariner report – USCG reply to INTERTANKO/ICS response We advised members of the availability of the USCG report into the loss of the Bow Mariner in our article in Weekly NEWS No. 01/2006 of 6 January 2006. Within the report it was recommended that the USCG Commandant approach INTERTANKO and the International Chamber of Shipping (ICS) with a view to "forming a study group to examine the causes of all tank vessel explosions in the last five years involving tank cleaning to search for common factors". ICS and INTERTANKO formally responded on 26 April 2006 (click here to view our joint letter). McCormick, Clipper Wonsild Tankers, Inc. and Richard Sages, Odin Marine, Inc. INTERTANKO has been invited to participate in a follow-up session focusing on post 1 January 2007 trends at the 2007 NIOP Conference tentatively scheduled for March 2007 in Palm Springs California. (ii) EI/API HM51 Chemical Measurement Work Group INTERTANKO continues to participate in the European Institute (EI)/American Petroleum Institute’s (API) working group tasked with reviewing the draft of “HM51, Procedure for Bulk Liquid Chemical Cargo Inspection By Cargo Inspectors". The purpose of HM51 is to provide systematic cargo measurement procedures for use primarily by cargo inspectors and to specify procedures directed at minimising cargo contamination. The goal of the working group is a review of the complete document with special consideration given to Chapter 9 (Procedures to Control Product Quality). The expansion of the Work Group to include tanker and barge representatives was initiated in early 2006. API will be working with EI to consolidate the changes prior to the meeting at the API Denver meeting in late 2006. 6. INTERTANKO Chemical Committee meetings (i) Joint Chemical Tanker Committee (CTC) and Chemical Tanker Sub-committee (Americas) (CTSCA) meetings held The INTERTANKO Chemical Tanker Committee (CTC) and Chemical Tanker Sub-committee (Americas) (CTSCA) held a joint meeting on 14 March 2006 at the Wyndham Greenspoint Hotel in Houston, Texas. 5. Coordination with other Associations Agenda items included an update on the deliberations of the Inter-Industry Work Group; dialogue on the revisions to MARPOL Annex II; a review of the products currently in the IBC Code still missing data (relative to the recent report of the 42nd GESAMP/EHS Working Group); a report from the USCG Chemical Transportation Advisory Committee (CTAC) MARPOL Annex II Work Group; a discussion of classification of tripartites in the U.S.; and the carriage and classification of biofuels. Lastly, both the CTC and CTSCA Secretaries gave an update on the dialogue with other associations including, the National Institute of Oilseed Products (NIOP), the Federation of Oil, Seeds and Fat (FOSFA) and the Independent Liquid Terminal Association (ILTA). (i) INTERTANKO attends NIOP 2006 Click here to view the minutes of this meeting. INTERTANKO attended the National Institute of Oilseed Products 2006 (NIOP) Annual Conference held last March in Phoenix, TX. The panel discussion entitled “International Maritime Organization 2007 - Cargo Reclassification and Impact on Shipping” was held during the “hot topics” portion of the conference. The panel was moderated by Liam Rogers, Hudson Tank Terminals; other panellists participating were Mike The next combined CTC/CTSCA meeting will be held in the autumn of 2007 in London. The recent CTSCA meeting was held in Houston, TX, on 17 October 2006.The next CTC meeting will be held in London on 8 November 2006. We have now received a response from the USCG confirming that the joint letter satisfactorily addresses the relevant recommendation in the Bow Mariner Report (click here to view the reply). The CTC meeting will be held in London on 8 November 2006. A copy of the agenda is available. Click here 9 (ii) Joint Chemical and Vetting Seminar Held 7. CDI – Inspector Appointment Revisions INTERTANKO also hosted a Joint Chemical and Vetting Seminar on 15 March 2006 at the Wyndham Greenspoint Hotel in Houston, Texas. Over 75 people attended the full-day Seminar comprising the chemical session held in the morning and the vetting session in the afternoon. The presentations during the chemical session, chaired by the Chemical Tanker Committee Chairman Lars Modin, included: The CDI’s Marine Inspection department (CDI-mid) is governed by the Statute of the Stichting Chemical Distribution Institute and is compliant with the Quality Management System in place. The function of CDI-mid is to respond to ship operators’ and charterers’ requests for ship inspections and to appoint the inspector by means of a "mechanical rotation system" (MRS). This in effect means that the owner is no longer able to select the CDI inspector to undertake the CDI inspection. Instead the request has to be sent to CDI-mid, which will appoint the inspector on a strictly rotational basis. An Overview of the MARPOL Annex II Revisions, Pre & Post 1/1/2007 (Margaret Doyle, Chemicals Manager, INTERTANKO) US Coast Guard Houston Sector Port Update and How Changes to “Sector Houston” Will Affect the Chemical Owner (CDR Joseph Paitl, Chief,Port Operations, US Coast Guard, Department of Homeland Security) Implementation of MARPOL Annex II in the USA *(CDR Bob Hennessy, Chief, Hazardous Materials Standards Branch, US Coast Guard, Department of Homeland Security) The Classification of Biofuels, Maurice Gordon, President, Maritime Systems Engineering, Inc. The afternoon vetting session, chaired by Captain Bob Bishop (Vetting Committee Chairman) agenda included: Chevron Clearing and Vetting and System, (Tom Pappas, Clearance Team Leader, Chevron Clearance and Vetting) Introduction to BP Ship Terminal Feedback Integration with Intertanko Terminal Vetting Database. (Jim Fortnum, Offshore Assurance Superintendent, BP) Port State Control in the USA, CDR Paul D. Thorne, Commandant (G-PCV-2) Chief Foreign Vessel & Offshore Activities, US Coast Guard, Department of Homeland Security) SUNOCO Vetting and Screening, Captain Bill Harkness, SUNOCO Logistics Partners A Demonstration of www.Q88.com - A Service of INTERTANKO (Peter Renehan, Q88.Com) The meeting was well received and appreciated by members and non-members alike. Most of these presentations are available in the chemical section of the INTERTANKO website. The views expressed by the invited speakers within these presentations are those of the presenter and not necessarily INTERTANKO's. Full details of the system can be accessed from the CDI web site http://www.cdi.org.uk/main.html (download section under CDIMarine Inspection Department). The information includes how the system works, CDI's obligation, inspection zones, inspection request and rejection of an appointed inspector. Note: INTERTANKO was asked by the CDI to review and comment on these changes. We appreciated this opportunity, and following a review by the INTERTANKO Vetting Committee and Chemical Tanker Committee, INTERTANKO has offered its full support to the CDI for the changes regarding CDI inspector appointment. This is viewed as an enhancement to the system 8. MARPOL Annex II Waste Reception Facilities Survey INTERTANKO members, will be aware that INTERTANKO has kept them advised of the work being undertaken on reception facilities, both within the Port Reception Facility Forum and within the IMO. We recently advised members of the discussion and our input at IMO during FSI 14 regarding reception facilities pertaining to Annex II. Following on from this, the IMO is in the process of further developing its Global Integrated Shipping Information System (GISIS) database, which can be accessed at the following link: http://gisis.imo.org/Public/. The area of interest to chemical owners is not only the Annex II reception facility information that is available within the GISIS web site, but also the manner in which the information is presented and the detail of the information - not only at the current time but especially when the revision to Annex II comes into force on 1.1.2007 and particularly the additional requirements regarding pre-wash for certain vegetable oils. INTERTANKO therefore had the opportunity in its discussions with the IMO Secretariat to supply its input and feedback on not only what information is or would be beneficial to you (the users), but also the format of the way in which the information could be presented. We undertook a survey of chemical tanker members on this issue. The replies we received to our survey have now being collated into a report and submitted to the IMO Secretariat to help and assist them with regard to the IMO GISIS database work that is being undertaken. Click here to view this report.
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