Title of Presentation Environmental Regulatory Update

ABS SEMINAR - SINGAPORE

A. K. Seah Director Global Performance Center Singapore 24 July 2013

Outline

NOx

Energy Efficiency Regulations

BWM Convention

NOx Tier III effective date deferred

Tier III NOx emission compliance Apply to ships KL 1 Jan 2016 when operating in ECA Reg 13.10 requires IMO to review technologies and effective date CG to MEPC 65: retain effective date; technologies available

Selective Catalytic Reduction (SCR) Exhaust Gas Recirculation (EGR) LNG as fuel

Russia submitted to MEPC 65 that further studies needed SCR ammonia slips; generates CO2; hard to maintain required temp in port under

variable load; supply of urea and catalysts; disposal of used catalysts; use in tandem with EGCS in ECA; safety concerns; cost of installation and operations

EGR only one supplier LNG methane slips; supply infrastructure; safety concerns

MEPC 65 decides to amend effective date to 1 Jan 2021 Countries reserved positions: Canada, Denmark, Finland, France,

Germany, Italy, Japan, Norway, the United Kingdom and the United States

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USA to propose that 1 Jan 2016 be retained for current ECA

Current ECA: 1) North America 2) US Caribbean

Sea Area

Other NOx matters

Interpretation of Major Conversions to engines Identical engine an engine which is of:

The same design and model Rated power and speed Use Number of cylinders Fuel injection type Same engine group/family

time of replacement or addition Contractual delivery date of engine to the ship If no contractual delivery, actual delivery date

(delivery receipt required)

Issued guidelines for replacement engine that cannot meet Tier III

Reminder Ships KL 1 Jan 1990 ~1 Jan 2000 & diesel engine 5000kW &

90 liters/cylinder Applicable engines to meet Tier I upon availability of Approved Methods

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Major Conversion: Replace existing or add new

engine Substantial modification Increase MCR by 10%

Replace (R) or add (A) new engine 1 Jan 2000 R - identical engine: same

requirement as old engine A - identical engine: comply

with prevailing requirement R or A - non-identical engine:

comply with prevailing requirement

Pre-2000 engines: Owners Action

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Is my ship keel-laid between 1 Jan 1990 and 1

Jan 2000

Is the engine 1) a S50MC, S60MC or S70MC;

Or 2) a Wartsila RTA

Contact engine vendor - Approved Method available?

No action needed

Install Approved Method by first renewal survey after

effective date

YES

YES

YES

NO

NO

Install Approved Method by first annual survey after

available date

Determine Approved Method available date

NO

Effective date = 12 months after IMO received notification from Administration of certification of Approved Method Effective dates for: B&W MAN

S50MC 12 Aug 2012 S60MC 6 Oct 2012 S70MC 6 Oct 2011; 12 Aug 2012

Wartsila RTA series 5 Feb 2012

NOx certification for dual fuel engine

Amendments to NOx Technical Code NOx compliance for gas-mode only; engine tripping to

liquid fuel mode exempted from compliance for the voyage NOx tests to include max liquid/gas fuel ratio setting to be

certified

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NTC - new para 1.3.10 Where an engine is intended to be operated normally in the gas mode, i.e. with the main gas fuel and only a small amount of liquid pilot fuel, the requirements of regulation 13 have to be met only for this operation mode. Operation on pure liquid fuel resulting from restricted gas supply in cases of failures shall be exempted for the voyage to the next appropriate port for the repair of the failure

NTC - new para 5.3.6 Gas mode operation of dual fuel engines using liquid fuel as pilot or balance fuel shall be tested using maximum liquid-to-gas fuel ratio, such maximum ratio means for the different test cycle modes the maximum liquid-to-gas setting certified.

Energy Efficiency Reduction of CO2 Emissions

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EEDI (Energy Efficiency Design Index)

Apply to new ships

Attained EEDI to be verified for 7 ship types and to meet reference EEDI

Meet minimum propulsion power

SEEMP (Ship Energy Efficiency Management Plan)

Apply to new and existing ships

Place copy on board by first intermediate or renewal survey after 1 Jan 2013

Regulations on Energy Efficiency for Ships MARPOL Annex VI Ch 4 - Enters into force 1 Jan 2013

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IEEC (International Energy Efficiency Certificate)

Definition of new ships

Phase 0 ships If there is contract:

Contracted in Ph 0 and delivered < 1 Jan 2019

Contracted before Ph 0 and delivered 1 Jul 2015 but < 1 Jan 2019

If no contract: KL 1 Jul 2013 and < 1 Jul 2015

and delivered < 1 Jan 2019 KL < 1 Jul 2013 and delivered 1

Jul 2015 but < 1 Jan 2019

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Phase 0: 1 Jan 2013 31 Dec 2014 Phase 1: 1 Jan 2015 31 Dec 2019 Phase 2: 1 Jan 2020 31 Dec 2024 Phase 3: 1 Jan 2025 +

Phase 1 ships If there is contract:

Contracted in Ph 1 and delivered < 1 Jan 2024

Contracted before Ph 1 and delivered 1 Jan 2019 but < 1 Jan 2024

If no contract: KL 1 Jul 2015 and < 1 Jul 2020

and delivered < 1 Jan 2024 KL < 1 Jul 2015 and delivered 1

Jan 2019 but < 1 Jan 2024

New ships (Phase 0) means a ship: - for which building contract is placed on or after 1 January 2013; or - in the absence of a building contract, the keel of which is laid or which is at a similar stage of construction on or after 1 July 2013; or - the delivery of which is on or after 1 July 2015.

Source: MEPC 64/23 Annex 7

MEPC 65 changes to Energy Efficiency Regulations

Draft amendments to Ch 4

Draft amendments to EEDI calculation guidelines

Adopted amendments to calculations for EEDI reference lines

Adopted interim guidelines for minimum propulsion power

Adopted guidelines for innovative technologies

Adopted amendments to survey and certification guidelines

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Extend required EEDI to include more ship types:

cruise passenger ships having non-conventional propulsion, ro-ro cargo and ro-ro passenger ships, ro-ro (vehicle carriers)

Re-categorize Gas Carriers LNG carriers and Gas carriers other

than LNG carriers

Exempt EEDI from cargo ships having ice-breaking capacity

Exempt Ch 4 from ships not propelled by mechanical means and platforms (FPSOs, MODUs, etc.) regardless of their propulsion

Draft Amendments to Chap 4 MARPOL Annex VI (subject to adoption by MEPC 66 in April 2014)

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Ref: MEPC 65/22 Annex 13

New extension to

Table 1 of Reg VI/21

EEDI Challenge: Ship speed verification

Vref Speed at design draft (70% design draft for containerships)

and at 75% MCR

Vref needs to be verified for purpose of EEDI

Speed hitherto a commercial issue, no regulatory experience

Speed trial often not conducted at design draft, Vref :

needs to be derived from speeds obtained at model test & at sea trial

requires verifications at model test and at sea trial

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Vref

Model Test verification process

Qualification of Model Test Facilities (MTF)

Before model test MTF submits test plan to verifiers Verifiers review test plan and:

Provide comments, as appropriate Confer with MTF on mutually agreeable

hold-points for verifier attendance

At model test Verify: ship model; propeller model; model accuracy Witness tests as per prior mutual agreement Examine test reports

After test MTF submits: model test report, analyses of test results, and power-speed

curves of EEDI-required draft and sea-trial draft to verifiers Verifiers should check documents for completeness and consistency particularly

methods of analyses for the two different drafts

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Source: MEPC 64/INF.22

Conduct of speed trials

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ISO 15016:2002 - 3 double runs

ISO 19019:2005 - Run length 5~10 minutes

or between 1~ 2 miles ITTC 7.5-04-01-01.1 2005

- 3 double runs, each at different engine setting

- Time for each run 10 min.

ITTC 7.5-04-01-01.2.1 2012 Time for each run 10 min. 5 double-runs at 4 different

power settings: - 2 at contract power; 1 at

75% MCR, 2 at 2 other power settings between 65% and 100% MCR

For each sister ship of a series: 3 double-runs - 1 at contract power; 1 at

75% MCR; 1 at between 65% and 100% MCR

ITTC 7.5-04-01-01.1 2012 Time for each run 10 min. 5 double-runs at 3 different

power settings: - 2 at contract power; 2 at

75% MCR; 1 at power settings between 65% and 100% MCR

For each sister ship of a series: 3 double-runs - 1 at contract power; 1 at

75% MCR; 1 at between 65% and 100% MCR

MEPC 64/INF.6 MEPC 65/INF.7

Speed trial Verification

Shipyard submits speed trial procedures for verifier review Instrument installation & calibration checks Hull and propeller survey

Verifier witnesses sea trial

Verifier reviews sea trial report & sea trial analysis

For sea trials conducted at ballast draft, verifier review derivation of full-scale speed Vref from model scale

Key references:

IMO Res MEPC 214/(63) - 2012 guidelines for EEDI survey & certification

ISO 15016:2002 Guidelines for the assessment of speed and power performance by analysis of sea trial data

ISO 19019:2005 Instructions for planning, carrying out and reporting sea trials

ITTC doc in MEPC 64/INF.6 7.5-04-01-01.2.1 Speed &

power trial Pt1 7.5-04-01-01.2 Speed &

power trial Pt2

MARIN - Recommended practice for speed trials (STA) 2006

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Derive Vref

Model test results

Sea trial results

IMO Guidelines ITTC procedure*

Vref

Model test results

Sea trial results

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Vref

Market Based Measure (MBM)

IMO is far from agreement on MBM

EU proposed new legislation on Monitoring, Reporting, Verification (MRV) of CO2 emissions: Reliable CO2 emission figures

needed; so as to define reduction targets

Will implement MRV as a first step

USA proposal on MBM to IMO has a 3-phase approach Phase 1: data collection (energy consumed + time in service) and using data to

establish attained efficiency standards Phase 2: pilot phase ships evaluated against standards, and given rating Phase 3: implementation

Sign of convergence in MBM: monitoring of CO2 emissions as 1st step

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MBM is 3rd prong of IMO 3-prong strategy to reduce CO2 emissions from shipping; proposed mechanisms:

Emission trading scheme Bunker levy (International GHG Fund) Efficiency incentive scheme

Ballast Water Management

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Status

IMO convention Ratified by 37 states, 30.32%

world GT (required 30 states, 35%)

MEPC 65 approved draft Assembly Resolution urging ratification (with revised implementation timeline)

MEPC 65 adopted resolution to require more comprehensive reporting of BWMS type approval

MEPC 65 issued guidelines for OSVs and MODUs (subject to Flag, MODUs will require certification)

USA USCG Final Rules effective 21 Jun

2012 KL 1 Dec 2013, D-2 on delivery KL < 1 Dec 2013, BW capacity >

5000m3, D-2 on 1st scheduled drydocking > 1 Jan 2016

Approved so far 13 alternative management systems (AMS)

EPA 2013 VGP effective 19 Dec 2013 BW discharge to comply with USCG

Final Rules BWMS requires discharge monitoring

(functional, sampling,

California BW discharge standard further deferred

until treatment technology is available

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Draft Assembly Resolution

Revised D-2 implementation schedule Constructed EIF date, comply on delivery

Constructed < EIF date: E.g. for ships with BW capacity > 5000m3

Constructed 2012, comply by 1st IOPPC renewal after EIF date Constructed < 2012, comply by either:

1st IOPPC renewal after anniversary date of delivery in 2016, or

1st IOPPC renewal after EIF date, whichever is later

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Regulation

Date of Ship Construction

C

Ballast Water Capacity (M3)

B

Mandatory D-2 Compliance

First IOPP Renewal Survey after the following:

B-3.1.1 C < 2009

1500 < B < 5000

Anniversary Date of Delivery in 2014, or Entry Into Force date, if that occurs later

B-3.1.2 B < 1500 or B> 5000 Anniversary Date of Delivery in 2016, or Entry Into Force date, if that occurs later B-3.4 2009 < C < 2012 B > 5000

B-3.3 2009 < C < EIF B < 5000 Entry Into Force date of the Convention

B-3.5 2012 < C < EIF B > 5000

EIF = entry into force Constructed = keel lay

BWMS type approval (Res. MEPC 228(65))

Type Approval (G8) reporting Administration name BWMS name Approval date TA certificate attachments

Appendix - all imposed limiting conditions on the operation of the BWMS (e.g. salinity, turbidity, min/max pressure, min/max TRO, etc.)

Annex - test results of each land-based and shipboard test run Test protocol used Description of active substances, if employed Identification of the specific MEPC report and paragraph number

granting Final Approval in accordance with G9

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Test Protocol to include details on: Test organisms: whether ambient,

cultured or mixture Shipboard test protocol, including

system operating parameters Energy consumption Full test report of land-based and

shipboard tests, including unsuccessful, invalid and failed tests

QA/QC of test facilities, and national accreditation, if any

Mobile offshore units (MOU)

BWM.2/Circ.46 provides interpretation for application the convention to MODUs

Certification MODU should comply with the Convention and should be

surveyed and issued with an International Ballast Water Management Certificate

Compliance method At location of operation: water taken onboard ballast tanks of

semisub and preload tanks of jackups may be discharged at the same location without treatment if not mixed with unmanaged ballast water

Transit voyage: ballast water to be treated before discharge May use internal circulation system or other acceptable method Spudcans of jackups not considered as ballast tanks

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www.eagle.org

Slide Number 1OutlineNOx Tier III effective date deferredOther NOx mattersPre-2000 engines: Owners ActionNOx certification for dual fuel engineEnergy EfficiencyReduction of CO2 EmissionsRegulations on Energy Efficiency for ShipsMARPOL Annex VI Ch 4 - Enters into force 1 Jan 2013Definition of new shipsMEPC 65 changes to Energy Efficiency RegulationsDraft Amendments to Chap 4 MARPOL Annex VI(subject to adoption by MEPC 66 in April 2014)EEDI Challenge: Ship speed verificationModel Test verification processConduct of speed trialsSpeed trial VerificationDerive Vref Market Based Measure (MBM)Ballast Water ManagementStatusDraft Assembly ResolutionBWMS type approval (Res. MEPC 228(65))Mobile offshore units (MOU)Slide Number 23