83 FR 31753 - Notice of Intent To Hold a Workshop for a Study on the Impacts of Compliance With the ECA Fuel Sulfur Limits on U.S. Coastal Shipping

ENVIRONMENTAL PROTECTION AGENCY

Federal Register Volume 83, Issue 131 (July 9, 2018)

Page Range		31753-31754
FR Document		2018-14681

The Environmental Protection Agency (EPA) is announcing a stakeholder workshop to be held in Washington, DC, on July 30, 2018. This workshop will engage individuals and companies involved in U.S. coastal shipping as transportation providers or users, as well as states, local communities, and interested citizens, in the development of a study of the impacts on that sector of the North American Emission Control Area (ECA) fuel sulfur limits for ships. The Agency will provide background on the study, describe the proposed analytic methodology, and solicit stakeholder input regarding the selection of transportation routes to be studied and data inputs.

Federal Register, Volume 83 Issue 131 (Monday, July 9, 2018)

[Federal Register Volume 83, Number 131 (Monday, July 9, 2018)]
[Notices]
[Pages 31753-31754]
From the Federal Register Online [www.thefederalregister.org]
[FR Doc No: 2018-14681]

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ENVIRONMENTAL PROTECTION AGENCY

[EPA-HQ-OAR-2018-0396; FRL-9980-46-OAR]

Notice of Intent To Hold a Workshop for a Study on the Impacts of
Compliance With the ECA Fuel Sulfur Limits on U.S. Coastal Shipping

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice of workshop.

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SUMMARY: The Environmental Protection Agency (EPA) is announcing a
stakeholder workshop to be held in Washington, DC, on July 30, 2018.
This workshop will engage individuals and companies involved in U.S.
coastal shipping as transportation providers or users, as well as
states, local communities, and interested citizens, in the development
of a study of the impacts on that sector of the North American Emission
Control Area (ECA) fuel sulfur limits for ships. The Agency will
provide background on the study, describe the proposed analytic
methodology, and solicit stakeholder input regarding the selection of
transportation routes to be studied and data inputs.

DATES: The workshop will be held on July 30, 2018 at the location noted
below under ADDRESSES. The workshop will begin at 10:00 a.m. EST and
end at 3:00 p.m. EST. Parties wishing to attend the workshop should
notify the contact person listed under FOR FURTHER INFORMATION CONTACT
by July 23, 2018. Additional information regarding the workshop appears
below under SUPPLEMENTARY INFORMATION.

ADDRESSES: The workshop will be held at the following location: Room
1153, William Jefferson Clinton East, 1200 Pennsylvania Avenue NW,
Washington, DC 20460. Additional information related to the workshop
will be posted on the EPA website at: https://www.epa.gov/regulations-emissions-vehicles-and-engines/designation-north-american-emission-control-area-marine. Interested parties should check the website for
any updated information.

[[Page 31754]]

FOR FURTHER INFORMATION CONTACT: Julia MacAllister, Office of
Transportation and Air Quality, Assessment and Standards Division,
Environmental Protection Agency, 2000 Traverwood Drive, Ann Arbor, MI
48105; telephone number: 734-214-4131; email address:
macallister.julia@epa.gov.

SUPPLEMENTARY INFORMATION:

I. How can I get copies of this document and other related information?

A. Docket

EPA has established a docket for this action under Docket ID No.
EPA-HQ-OAR-2018-0396. Publicly available docket materials are available
either electronically through www.regulations.gov or in hard copy at
the EPA Docket Center, (EPA/DC) EPA West, Room 3334, 1301 Constitution
Ave. NW, Washington, DC. The EPA Docket Center Public Reading Room is
open from 8:30 a.m. to 4:30 p.m., Monday through Friday, excluding
legal holidays. The telephone number for the Public Reading Room is
(202) 566-1744.

B. Electronic Access

You may access this Federal Register document electronically from
the Government Printing Office under the ``Federal Register'' listings
at FDSys (http://www.thefederalregister.org/fdsys/browse/collection.action?collectionCode=FR).

II. Overview

The North American Emission Control Area (ECA) was designated in
2010 by amendment to Annex VI to the International Convention for the
Prevention of Pollution from Ships (MARPOL).\1\ Beginning January 1,
2015, the sulfur content of fuel used by ships operating in the ECA may
not exceed 1,000 ppm. By the year 2030, this program is expected to
reduce annual emissions of NOX, SOX, and
PM2.5 by 1.2 million, 1.3 million, and 143,000 tons,
respectively. The magnitude of these reductions would continue well
beyond 2030, and are estimated to annually prevent between 12,000 and
30,000 PM-related premature deaths; between 210 and 920 ozone-related
premature deaths; 1,400,000 work days lost; and 9,600,000 minor
restricted-activity days. The estimated annual monetized health
benefits of the North American Emission Control Area in 2030 would be
between $110 and $270 billion, assuming a 3 percent discount rate (or
between $99 and $240 billion assuming a 7 percent discount rate). The
annual cost of the overall program in 2030 would be significantly less,
at approximately $3.1 billion. This cost includes $2.5 billion in fuel
costs, $0.6 billion in NOX control operating costs (e.g.,
urea consumption), and $0.05 billion in variable costs.\2\
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\1\ See: https://www.epa.gov/regulations-emissions-vehicles-and-engines/designation-north-american-emission-control-area-marine.
\2\ For analysis of the 2030 benefits and costs of the North
American ECA, see Final Rule, Control of Emissions From New Marine
Compression-Ignition Engines at or Above 30 Liters per Cylinder;
this rule is available at https://www.thefederalregister.org/fdsys/pkg/FR-2010-04-30/pdf/2010-2534.pdf.
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In Senate Report 114-281 (June 16, 2016),\3\ Members of the Senate
Committee on Appropriations indicated that while they support efforts
to reduce pollution from marine vessels, ``the Committee is concerned
the mandate for fuel with a sulfur content of 0.1% in the North
American Emission Control Area is having a disproportionately negative
impact on vessels which have engines that generate less than 32,000
horsepower [and] this impact may cause some shippers to shift from
marine based transport to less efficient, higher emitting modes.'' As a
result, ``to avoid negative environmental consequences and modal
shifting, the Committee directs the Agency to consider exempting
vessels with engines that generate less than 32,000 horsepower and
operate more than 50 miles from the coastline.'' \4\ In response to the
Committee's concerns, EPA intends to perform a study of the economic
impacts of compliance with the North American ECA fuel sulfur limits on
coastal shipping.\5\ The study will be based on the approach the Agency
used for a similar study carried out in 2012 examining the impacts of
the application of the ECA fuel sulfur limits on the Great Lakes
shipping industry.\6\ That study used a combination of geospatial
transportation route modeling and cost modeling to examine the impacts
of the ECA fuel sulfur requirements for a specific set of
transportation routes identified by stakeholders as being at risk for
transportation mode shift.
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\3\ Committee Report [To accompany S. 3068]; this report is
available at https://www.congress.gov/114/crpt/srpt281/CRPT-114srpt281.pdf. The Joint Explanatory Statement accompanying the
Consolidated Appropriations Act, 2017 (Pub. L. 115-31), refers to
Senate Report 114-281 as carrying the same emphasis in regard to the
administration of programs.
\4\ Ships that generate less than 32,000 horsepower represent
about 85 percent of all ships that visit U.S. ports.
\5\ Coastal shipping, also called coastwise or short sea
shipping, generally means marine transportation along a coast
without crossing an ocean. For the purpose of this study, coastal
shipping means the transportation of goods or materials by ship from
an originating port located in North America, Mexico, or Central
America to a United States destination port located on the Pacific,
Atlantic, or Gulf coasts, or vice versa, but excludes shipping
between Great Lakes ports.
\6\ See https://www.regulations.gov/document?D=EPA-HQ-OAR-2007-0121-0586 and https://nepis.epa.gov/Exe/ZyPDF.cgi/P100E7EW.PDF?Dockey=P100E7EW.PDF.
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Input from coastal transportation industry stakeholders and other
industries involved in alternative transportation modes will be
essential to identify the transportation routes to be studied: Those
routes that may be at risk of transportation mode shift as a result of
increased operating costs due to the use of ECA fuel. Stakeholder input
also will be important for essential data, including ship
characteristics.
To facilitate stakeholder participation, EPA will conduct a
workshop on July 30, 2018, at the location noted above under ADDRESSES.
At this meeting, the Agency will explain the purpose of this economic
impact study, describe the methodology that was used for a similar
study of the impacts of ECA compliance on the Great Lakes, and explain
the methodology that will be applied to this study of the economic
impacts of the ECA fuel sulfur requirements on the U.S. coastal marine
transportation. EPA will also describe the data needs of the study, how
interested stakeholders can help EPA obtain that data, and EPA's
procedures to ensure the protection of confidential business
information.
EPA invites and encourages participation by all manner of coastal
shipping stakeholders: Shipping companies, both those with ships that
are capable of operating on heavy fuel oil and those with ships that
are designed to operate solely on distillate diesel fuel; companies
that provide alternative land-based transportation (rail and highway
truck); companies that utilize coastal marine transportation; state and
local governments; environmental and community groups; and others who
are interested in or who have information that may be useful for this
study.
A draft agenda for the workshop can be found at: https://www.epa.gov/regulations-emissions-vehicles-and-engines/designation-north-american-emission-control-area-marine. EPA also plans to place
relevant materials in that docket as they become available.

Dated: June 27, 2018.
Christopher Grundler,
Director, Office of Transportation and Air Quality.
[FR Doc. 2018-14681 Filed 7-6-18; 8:45 am]
BILLING CODE 6560-50-P

31754 Federal Register / Vol. 83, No. 131 / Monday, July 9, 2018 / Notices

FOR FURTHER INFORMATION CONTACT: Julia 2030 would be significantly less, at requirements for a specific set of
MacAllister, Office of Transportation approximately $3.1 billion. This cost transportation routes identified by
and Air Quality, Assessment and includes $2.5 billion in fuel costs, $0.6 stakeholders as being at risk for
Standards Division, Environmental billion in NOX control operating costs transportation mode shift.
Protection Agency, 2000 Traverwood (e.g., urea consumption), and $0.05
Input from coastal transportation
Drive, Ann Arbor, MI 48105; telephone billion in variable costs.2
In Senate Report 114–281 (June 16, industry stakeholders and other
number: 734–214–4131; email address:
macallister.julia@epa.gov. 2016),3 Members of the Senate industries involved in alternative
Committee on Appropriations indicated transportation modes will be essential to
SUPPLEMENTARY INFORMATION:
that while they support efforts to reduce identify the transportation routes to be
I. How can I get copies of this document pollution from marine vessels, ‘‘the studied: Those routes that may be at risk
and other related information? Committee is concerned the mandate for of transportation mode shift as a result
A. Docket fuel with a sulfur content of 0.1% in the of increased operating costs due to the
North American Emission Control Area use of ECA fuel. Stakeholder input also
EPA has established a docket for this
is having a disproportionately negative will be important for essential data,
action under Docket ID No. EPA–HQ–
impact on vessels which have engines including ship characteristics.
OAR–2018–0396. Publicly available
docket materials are available either that generate less than 32,000 To facilitate stakeholder participation,
electronically through horsepower [and] this impact may cause EPA will conduct a workshop on July
www.regulations.gov or in hard copy at some shippers to shift from marine 30, 2018, at the location noted above
the EPA Docket Center, (EPA/DC) EPA based transport to less efficient, higher under ADDRESSES. At this meeting, the
West, Room 3334, 1301 Constitution emitting modes.’’ As a result, ‘‘to avoid
Agency will explain the purpose of this
Ave. NW, Washington, DC. The EPA negative environmental consequences
economic impact study, describe the
Docket Center Public Reading Room is and modal shifting, the Committee
directs the Agency to consider methodology that was used for a similar
open from 8:30 a.m. to 4:30 p.m., study of the impacts of ECA compliance
Monday through Friday, excluding legal exempting vessels with engines that
generate less than 32,000 horsepower on the Great Lakes, and explain the
holidays. The telephone number for the methodology that will be applied to this
Public Reading Room is (202) 566–1744. and operate more than 50 miles from the
coastline.’’ 4 In response to the study of the economic impacts of the
B. Electronic Access Committee’s concerns, EPA intends to ECA fuel sulfur requirements on the
You may access this Federal Register perform a study of the economic U.S. coastal marine transportation. EPA
document electronically from the impacts of compliance with the North will also describe the data needs of the
Government Printing Office under the American ECA fuel sulfur limits on study, how interested stakeholders can
‘‘Federal Register’’ listings at FDSys coastal shipping.5 The study will be help EPA obtain that data, and EPA’s
(http://www.gpo.gov/fdsys/browse/ based on the approach the Agency used procedures to ensure the protection of
collection.action?collectionCode=FR). for a similar study carried out in 2012 confidential business information.
examining the impacts of the EPA invites and encourages
II. Overview application of the ECA fuel sulfur limits participation by all manner of coastal
The North American Emission on the Great Lakes shipping industry.6 shipping stakeholders: Shipping
Control Area (ECA) was designated in That study used a combination of
2010 by amendment to Annex VI to the companies, both those with ships that
geospatial transportation route modeling
International Convention for the are capable of operating on heavy fuel
and cost modeling to examine the
Prevention of Pollution from Ships oil and those with ships that are
impacts of the ECA fuel sulfur
(MARPOL).1 Beginning January 1, 2015, designed to operate solely on distillate
the sulfur content of fuel used by ships 2 For analysis of the 2030 benefits and costs of the diesel fuel; companies that provide
operating in the ECA may not exceed North American ECA, see Final Rule, Control of alternative land-based transportation
1,000 ppm. By the year 2030, this Emissions From New Marine Compression-Ignition (rail and highway truck); companies that
Engines at or Above 30 Liters per Cylinder; this rule
program is expected to reduce annual is available at https://www.gpo.gov/fdsys/pkg/FR-
utilize coastal marine transportation;
emissions of NOX, SOX, and PM2.5 by 2010-04-30/pdf/2010-2534.pdf. state and local governments;
1.2 million, 1.3 million, and 143,000 3 Committee Report [To accompany S. 3068]; this environmental and community groups;
tons, respectively. The magnitude of report is available at https://www.congress.gov/114/ and others who are interested in or who
crpt/srpt281/CRPT-114srpt281.pdf. The Joint
these reductions would continue well Explanatory Statement accompanying the
have information that may be useful for
beyond 2030, and are estimated to Consolidated Appropriations Act, 2017 (Pub. L. this study.
annually prevent between 12,000 and 115–31), refers to Senate Report 114–281 as
A draft agenda for the workshop can
30,000 PM-related premature deaths; carrying the same emphasis in regard to the
administration of programs. be found at: https://www.epa.gov/
between 210 and 920 ozone-related 4 Ships that generate less than 32,000 horsepower regulations-emissions-vehicles-and-
premature deaths; 1,400,000 work days represent about 85 percent of all ships that visit
lost; and 9,600,000 minor restricted- engines/designation-north-american-
U.S. ports.
activity days. The estimated annual 5 Coastal shipping, also called coastwise or short
emission-control-area-marine. EPA also
monetized health benefits of the North sea shipping, generally means marine plans to place relevant materials in that
American Emission Control Area in transportation along a coast without crossing an docket as they become available.
ocean. For the purpose of this study, coastal
2030 would be between $110 and $270 shipping means the transportation of goods or Dated: June 27, 2018.
sradovich on DSK3GMQ082PROD with NOTICES

billion, assuming a 3 percent discount materials by ship from an originating port located Christopher Grundler,
rate (or between $99 and $240 billion in North America, Mexico, or Central America to a
United States destination port located on the Director, Office of Transportation and Air
assuming a 7 percent discount rate). The Pacific, Atlantic, or Gulf coasts, or vice versa, but Quality.
annual cost of the overall program in excludes shipping between Great Lakes ports. [FR Doc. 2018–14681 Filed 7–6–18; 8:45 am]
6 See https://www.regulations.gov/
1 See: https://www.epa.gov/regulations-emissions- BILLING CODE 6560–50–P
document?D=EPA-HQ-OAR-2007-0121-0586 and
vehicles-and-engines/designation-north-american- https://nepis.epa.gov/Exe/ZyPDF.cgi/
emission-control-area-marine. P100E7EW.PDF?Dockey=P100E7EW.PDF.

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Document Created: 2018-07-07 00:42:54
Document Modified: 2018-07-07 00:42:54

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
Action		Notice of workshop.
Dates		The workshop will be held on July 30, 2018 at the location noted
Contact		Julia MacAllister, Office of Transportation and Air Quality, Assessment and Standards Division, Environmental Protection Agency, 2000 Traverwood Drive, Ann Arbor, MI
FR Citation		83 FR 31753