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1 Implementation of EU Directive 2005/33/EC on Marine Fuel Oils Including ECSA/ESPO Summary Table on Implementation by EU Member States As of 13 April 2010 Background Directive 2005/33/EC dated introduced amendments to Council Directive 1999/32/EC relating to the reduction in the sulphur content of certain liquid fuels. In particular, Article 4b states: Article 4b Maximum sulphur content of marine fuels used by ships at berth in Community ports 1. With effect from 1 January 2010, Member States shall take all necessary measures to ensure that the following vessels do not use marine fuels with a sulphur content exceeding 0,1 % by mass: (b) ships at berth in Community ports, allowing sufficient time for the crew to complete any necessary fuel-changeover operation as soon as possible after arrival at berth and as late as possible before departure. Member States shall require the time of any fuel-changeover operation to be recorded in ships' logbooks. 2. Paragraph 1 shall not apply: (a) whenever, according to published timetables, ships are due to be at berth for less than two hours; (c) until 1 January 2012 for the vessels listed in the Annex and operating exclusively within the territory of the Hellenic Republic; (d) to ships which switch off all engines and use shore-side electricity while at berth in ports. 3. With effect from 1 January 2010, Member States shall ensure that marine gas oils are not placed on the market in their territory if the sulphur content of those marine gas oils exceeds 0,1 % by mass. Being Directives, the requirements have to be transposed into the national law of each EU Member State, and as a consequence of the European Economic Area (EEA) Agreement, also into the national legislation of the European Free Trade Area (EFTA) member states. On 29 December 2009, the EU Commission published Recommendation 2009/1020/EU in the Official Journal of the European Union. This Recommendation is available through the following link: Although the preamble contains important information as to how the Commission regards this issue, in particular that the implementation process should not take more than 8 months (i.e. be completed by 31 August 2010) the Recommendation itself reads as follows: 1. As part of the Member States enforcement actions against ships which fail to comply with the requirement to use fuels with a maximum permitted sulphur content of 0,1 % while at berth, Member States should request those ships to provide detailed evidence of the steps they are taking to achieve compliance. This should include a contract with a manufacturer and an approved retrofit plan which should be approved by the ship s classification society or, for ships flying the flag of a Member State, by the organisation having recognition in accordance with Regulation (EC) No 391/2009 of the European Parliament and of the Council. The retrofit plan should clearly state the date of completion of the adaptation and certification process. 2. Member States may consider the existence of an approved retrofit plan when assessing the degree of penalties to be applied to non-complying ships. 3. Member States should take appropriate measures to raise awareness among owners, operators and seafarers of the safety risk related to fuel changeover in the absence of any 1

2 necessary technical adaptation to a ship s fuel system and the necessity for training to be provided. This is only a recommendation made by the Commission and it is up to each Member State to decide whether and to what extent to utilize the recommendation. In addition, the EU Directorate General Environment updated its web site on ship emissions to include a link to a Frequently Asked Questions document issued by the Commission and available through the following link: ECSA/ESPO Summary Table on Implementation by EU Member States The European Community Shipowners' (ECSA) and European Sea Ports Organization (ESPO) have been collecting, and periodically updating, information on how the individual EU States are implementing the requirements of the EU Directive and the extent to which they are following the EU Commission s Recommendation. ECSA and ESPO have graciously allowed ABS to share their Summary Table with ABS shipowners through the ABS Eagle Portal, and to provide ABS with future updates of their Summary Table as they are issued. The Summary Table is on the following pages. However, ship owners and managers are advised to seek up to date information directly from the relevant EU/EEA Port Authorities of the ports to which their ships will be calling after 1 January Owing to the nature of the information in the Summary Table and that it is subject to change at any time in each State, neither shipowners, managers, nor any other party should rely upon this information, which is provided All information is provided as is, will all faults, without any conditions or warranties. To the maximum extent permitted by law, ABS expressly disclaims all warranties, express or implied, and all representations. ABS shall not be liable for any indirect or consequential loss or damage, however arising, including negligence, nor for any direct loss of revenue, profit, business, goodwill or anticipated savings suffered as a result of a statement or omission herein. ABS assumes no liability for the accuracy, timeliness or completeness of any of the information contained herein with respect to how EU/EEA States will actually enforce the requirements of EU Directive 2005/33/EC from 1 January Any reader who chooses to use or rely on the information herein does so entirely at their own risk. 2

3 RESTRICTED Page 1/8 SULPHUR DIRECTIVE Application 0.1% S. fuel requirement at berth in community Ports as from ECSA/ESPO SUMMARY TABLE Country Sulphur Directive 2005/33/EC Implementation status BE Enforced (2007) The Belgian Maritime Administration will follow the recommendation by the EC on the safe implementation of the use of low sulphur fuel by ships at berth in Community ports for a minimum of 6 months. Application 0.1% at berth Compliant Fuel availability Port delimitations definition The grace period of six months will be evaluated and possibly prolonged to 12 months depending on the developments. Ships that did not need to make adaptations and ships that already did will be carefully watched (sampling and testing) by PSC. The Antwerp Port Authority has confirmed that the availability of 0.1% will not pose any problems. Availability problems in other Belgian ports are not expected (TBC). The 0.1% Sulphur will in the longer term (longer than 6 months) only have to be applied for ships that are moored within the port limits. BG Enforced (2007) Dir.2005/33/EC is implemented in BG through the Ordinance on the requirements for the liquid fuels, conditions and way of their control (State Gazette Nr.76/ ) The Bulgarian Maritime Administration is currently undertaking measures to implement the Commission's Recommendation by issuing appropriate instructions to PSCOs. Possible evidence that will be required from non compliant ships include: contract with manufacturer and approved plan for modernization / retrofitting, approved by the RO. The penalties applicable for cases of noncompliance (air pollution by ship) are as No fuel availability problem to be reported so far. Still under consideration by the Maritime Administration, as the Ordinance is applicable for all maritime spaces and inland waterways of BG.

4 RESTRICTED Page 2/8 per art.119 (3) of the Bulgarian Law on Maritime Spaces, Inland Waterways and Ports from 5000 to Leva (approx Euro). CY ) The Cyprus authorities will follow the Commission Recommendation. 0.1% fuel can be bunkered in Cyprus ports. The retrofit plan should clearly state the date of completion of the adaptation and certification process, which should not extend beyond 31 August Ships of foreign flags that are calling at berth within the territory of the Republic of Cyprus are required to notify in writing the relevant non compliance at least 48 hours prior arrival at berth. The requirement in Cyprus ports also applies at anchorage. Cyprus Authorities letter_ DK ) Enforced (01/01/2007) The Danish Environmental Protection Agency (DEPA) is the overall responsible for the enforcement of the rules, but has delegated the concrete control to the Danish Maritime Authority, under the port state controls. No fuel availability problem to be reported so far. This is the actual port marine area, which in Denmark is defined as all water within the access defence infrastructure, or if such ADI is not present, the specified water area under the port s authority (marked with buoys). DEPA will follow the Commission Recommendation. Port of Copenhagen Malmö: the boundaries (limit of the port) are the geographical area of the port. EE (To be completed) FI Enforced (11/08/2006) The 1 st of January 2010 came into force No fuel availability problem. In the Finnish national legislation

5 RESTRICTED Page 3/ ) the amendment of the Directive 2005/33/EC. In practice some ships have had problems to follow the Directive and the Finnish authorities follow the Recommendation from the European Commission of 21 st of December Until the 1 st of July 2010 ships which cannot follow the Directive are able to sail to port without sanctions. The authorities require detailed clarification of the reasons why the Directive is not followed. Ports do not have a duty to control or penalize ships. (1672/2009) the port area is determined. The Directive applies to ships that are moored. FR Enforced A mild application by French authorities according to the Commission s Recommendation is to be expected (TBC). There is still some uncertainty on a possible time limit period that will be applied (TBC). GE Enforced Up to now only the federal states Bremen and Schleswig Holstein have implemented national rules from Other federal states & ports like Hamburg will do this until first three months of No clear national definition related to the application of the requirement. Anchorage area within administrative jurisdiction of port could be included (TBC). No application on anchorages outside port areas. Final date given in the Directive for implementation is Reportedly, the German administration will apply a minimum 6 month time limit period. GR Enforced (01/10/2007) (To be completed) IE Enforced The Irish Department of Transport Marine Survey Office will take full account of the Commission s Gas oil is available in most ports in Ireland. Definition of the port limits for this directive is alongside the jetty.

6 RESTRICTED Page 4/8 Recommendation for both Irish vessels and for foreign vessels visiting Irish ports. Irish authorities will continue to monitor developments and should an issue relating to compliance with the Sulphur Directive onboard a vessel, this will be dealt with separately to the PSC inspection and may involve other personnel and also consultation with the flag state administration, if relating to an EU flag vessel. IT Enforced (10/2007) Italian Ministry of Environment s position awaited. Port of Venice: Venice Coast Guard is in charge of the control mechanism. LT (To be completed) MT Not enforced The Malta Maritime Authority and the Malta Resources Authority are jointly looking how to best enforce the Sulphur Directive taking into account the Recommendation by the EC on the safe implementation of the use of low sulphur fuel by ships at berth in Community ports. No fuel availability problem to be reported. Port of Venice: geographical limits under Port Authority Control are reported in the Port Planning Plan. Reportedly, Malta envisages performing control of ships at anchor within the territorial waters (12 Nm) (TBC). NL Enforced (01/01/2007) The current national position is that the EU directive is implemented, that PSCofficers in The Netherlands are informed, that for the coming months no nonconformities will be assigned to ships, that ships that have no 0,1% sulphur fuels are urgently requested to bunker the required amount of low sulphur fuel, that the developments in the first three months will be evaluated and that In all Dutch ports the availability of 0,1% sulphur fuels should normally not pose any problem. The geographical limits of the port area are within the breakwaters. In general all the waterways within the 'buitengaatslijn' are regarded as port. For Rotterdam and Amsterdam this means that as soon as entering the Nieuwe Waterweg or the Noordzeekanaal this is regarded as 'port'. (So the anchor areas just outside the coast are not regarded as

7 RESTRICTED Page 5/8 depending on the outcome a more strict regime will be implemented, including non conformities and eventually fines. From the start samples will be taken and checked for sulphur content. Bunker delivery notes will also be checked. Ships that have to modify their installations for safety reasons and are for this reason not able to comply, will be checked on written documents that proof that action has been taken to modify the (boiler)installations. This is conform to the EU Commission recommendation. port). However, the Netherlands Shipping Inspectorate recently decided that the Western Schelde is not regarded as a port, so that anchorage will not lead to the obligation of using 0,1% sulphur fuels. Entering the Dutch ports of Terneuzen and Vlissingen will of course lead to the 0,1% obligation when at berth (unless the exceptions apply). NO ) Enforced The Norwegian authorities will follow the Commission Recommendation. No sanctions/penalties is expected to be applied until 1 st August 2010, provided the ship can document by contract that the necessary modifications to the boiler will be completed prior to that date. No fuel availability problem to be reported so far. No clear national definition related to the application of the requirement. The Norwegian Maritime Directorate has published the information received from the commission on their website: v svoveldirektivet oggjennomforing i EOS omradet/ PO Enforced Polish authorities have informed that they will comply with the Commission Recommendation. Time limit is not defined. No clear definition so far. PT ) Enforced (14/04/2008) Decree Law no. 69/2008 Portuguese authorities will act according to the Commission Recommendation. The national legislation in force foresees Supply of marine fuel with a sulphur content not exceeding 0,1% by mass is available in Portugal. The definition of port limits is determined for each national port in the pertinent legislation.

8 RESTRICTED Page 6/8 penalties which can be reduced in case there is an approved refitting plan. No time limit has been defined. Remark: Low Sulphur fuel requirements are not applicable in the outermost regions of Azores and Madeira provided that (i) the relevant regional authorities ensure that air quality standards are respected and (ii) heavy fuel oils are not used if their sulphur content exceeds 3% by mass. RO Enforced Romanian Naval Authority (RNA) is responsible for the enforcement of this new regulation and ships' operators are responsible for the implementation and are obliged to comply with the provisions of the Directive. In case of failure of the Directive 2005/33's provisions the RNA inspectors should apply the penalties under the Article 22 of Government Decision no. 470/2007. The geographical limits of the port area are clearly defined by Romanian law. Also Government Decision no. 470/2007 clearly stipulates when and where the new regulation is applied. No information about application of the Commission Recommendation. SE ) Enforced (2006) The current Swedish Authorities position is not to deviate from the Directive requirement. However, since this is a safety issue and taking in to account the late recommendation from the Commission, it is assumed that the Swedish authorities to some extent must take this into consideration (TBC). No fuel availability problem to be reported so far. There is no national definition of the port area applicable for this rule in Sweden. Shipping companies are advised to check themselves with the port authorities what port area that comprises this rule. SL (To be completed)

9 RESTRICTED Page 7/8 SP ) Enforced (2006) Directive 2005/33/EC and its implementing national regulation (Royal Decree 1027/2006) are applicable in all Spanish ports, with the exception of the Canary Islands, that have a special regime (outermost regions) in these regulations. In the implementation of the Directive, the Spanish Government is taking fully into account the Recommendation from the European Commission of December 2009 to avoid safety issues. No sanctions are expected on ships with HFO boilers that can show evidence of being in the process to fulfill the Directive requirements. UK ) Not enforced yet Spanish Government has actively supported the approval of the so called equivalence method by LNG carriers that has been agreed at the COSS committee, pending formal approval in May. UK Maritime & Coastguard Agency (MCA) is the enforcing authority. Port of Felixstowe : Strictly at berth (TBC). Reference can be made to MCA Marine Guidance Note [MGN 400(M+F)] which replaces MIN376. MGN 400 includes guidance on ships arriving from outside the EU without compliant fuel (i.e. with a sulphur content greater that 0.1%) and has identified the information required to be recorded in the ships' logbook when undertaking a fuel changeover operation. The document which is not yet available

10 RESTRICTED Page 8/8 on the MCA web site is incorporated at the end of this document. BL / v_

11 MARINE GUIDANCE NOTE MGN 400 (M+F) Additional Guidance on The Merchant Shipping (Prevention of Air Pollution from Ships) Regulations 2008 as amended by the Merchant Shipping (Prevention of Air Pollution from Ships) (Amendment) Regulations 2010 Notice to all Shipowners, Masters, Chief Engineers, Local Suppliers of Fuel Oil This MGN should be read with The Merchant Shipping (Prevention of Air Pollution from Ships) Regulations 2008 (as amended) This MGN replaces MIN 376(M+F) PLEASE NOTE:- Where this document provides guidance on the law it should not be regarded as definitive. The way the law applies to any particular case can vary according to circumstances - for example, from vessel to vessel and you should consider seeking independent legal advice if you are unsure of your own legal position. Summary This MGN provides guidance for ships on the requirements of the Merchant Shipping (Prevention of Air Pollution from Ships) Regulations 2008 (as amended) ( the Regulations ). Specifically, this guidance is intended to aid interpretation of the requirements under the Regulations for ships either anchored or at berth in UK ports, with respect to sufficient time for fuel changeover, and hotelling. These requirements implement the marine elements of the Sulphur Content of Liquid Fuels Directive, 1999/32/EC, as amended by 2005/33/EC of 6 July 2005 ( the Directive ). The European Commission has issued a Commission Recommendation (2009/1020/EU) of 21 December 2009 on the safe implementation of the use of low sulphur fuel by ships at berth in Community ports. The Commission Recommendation brings to the attention of the shipping industry a potential safety issue with the use of distillate marine fuel in boilers where the boilers have not been designed to use distillate marine fuel and/or appropriate fuel changeover procedures are not in place. Additionally the MGN highlights further guidance on implementation of the Directive published by the Commission in December 2009 that may be useful when applying the Regulations. Under Regulation 3(13)(a) of the Regulations ships can be exempted where it is necessary for the purpose of securing the safety of a ship. Exemptions can be considered on application to the MCA

12 1. Introduction 1.1 Regulation 4 of Schedule 2A requires that ships at berth in United Kingdom ports and inland waterways vessels do not use marine fuel which has a sulphur content exceeding 0.10 per cent by mass. 1.2 Regulation 4(2) of Schedule 2A identifies that this requirement does not apply to ships at berth in United Kingdom ports for that period of time which is sufficient to allow the crew to complete any necessary fuel-changeover operation. These changeover operations should be completed as soon as possible after arrival at berth and as late as possible before departure from berth. 1.3 The Regulations define a ship at berth as meaning ships which are securely moored or anchored in a United Kingdom Port while it is loading, unloading or hotelling, including the time spent when not engaged in cargo operations. 1.4 In order to further clarify the applicability of Regulation 4 of Schedule 2A, and in particular expand upon the definitions provided in the Regulations, the following guidance is provided. 2. Guidance for ships anchored within a UK port 2.1 A ship anchored within the port limits of a UK port is required to comply with the provisions for "ships at berth" in Regulation 4 of Schedule 2A. 2.2 For a ship anchored outside port limits but anchored within the North Sea Sulphur Emission Control Area, the ship shall remain compliant with the sulphur content limit for fuel oil used on board the ship for the North Sea Sulphur Emission Control Area. 3. Guidance on the term sufficient time allowed for fuel changeover operations by ships at berth in UK ports 3.1 What is and what is not sufficient time to allow for fuel changeover operations may vary. However the Regulations establish that ships are not required to changeover fuel where, according to published timetables, ships are due to be at berth for less than two hours. It can be inferred from this exemption, in general, that one hour could be considered as sufficient time to complete fuel changeover operations recognising that the time may vary depending upon ship type and ship systems. 3.2 Other factors that should be considered when determining what is sufficient time for fuel changeover operations should include: all relevant safe operations; the operating circumstances of the ship, such as to minimise the interruption of power plant; a need for effective maintenance and longevity of the ship s machinery; any associated shore-based activity that might be required; machinery manufacturers guidance; company and vessel specific procedures; the power rating of the engines and the viscosity of the fuel being used. 3.3 The UK would not consider sufficient time for fuel changeover operations to include time to procure and have delivery to the ship marine fuel with a sulphur content not exceeding 0.10%. A ship is expected to have compliant fuel onboard on arrival at berth. 3.4 A ship arriving at a UK port from outside the European Union that has been unable, despite best endeavours, to source compliant marine fuel before arrival in a UK port will be - 2 -

13 expected to have made arrangements prior to arrival in the UK port to have compliant marine fuel supplied on arrival at the UK port. Where a ship arrives at a UK port without compliant marine fuel it is expected to document that efforts have been made to procure compliant marine fuel before embarking on its voyage to the UK. 4. Records in ship s logbooks 4.1 Regulations 2(4)(b), 3(5) and 4(4) of Schedule 2A require details of any fuel changeover operations to be recorded in accordance with Regulation 5 of Schedule 2A. The information required and when it is to be recorded is identified in Table 1. Table 1 Records in ship s logbooks fuel changeover operations What is required to be recorded When a record of fuel changeover operation is required Time Date Position of ship Volume in each tank with fuel oil not exceeding 1.50% S Volume in each tank with fuel oil not exceeding 0.10% S Before entry into a SECA Operation is completed X X X X Following departure from a SECA Operation commences X X X X Following arrival of ship at berth Operation commences and is completed X X X Before departure of ship from berth Operation commences and is completed X X X 5. Guidance on the term hotelling in the context of operations by ships at berth 5.1 Hotelling should be considered as when a ship is securely moored or anchored in a port and is not loading or unloading cargo, but is providing crew and any passengers with accommodation and associated services. 6. Commission Recommendation (2009/1020/EU) 6.1 The European Commission has published Commission Recommendation of 21 December 2009 on the safe implementation of the use of low sulphur fuel by ships at berth in - 3 -

14 Community ports. The Commission Recommendation relates to the operational problems and safety risks associated with the use of marine diesel and marine gas oil in ships that have not been designed to use such fuels or have not undergone the necessary technical adaptation. The Commission have concluded that the main safety risk relates to use in ships boilers which have not yet been assessed and certified for use with the required type of fuel. 6.2 The Commission Recommendation was published in the Official Journal of the European Union on 29 December 2009 (L348/73) and is available from the following site: 7. Guidance from the European Commission on implementation of the Directive 7.1 The European Commission has published guidance on implementation of the Directive. This guidance is available from the following site: 8. Exemptions from the Merchant Shipping (Prevention of Air Pollution from Ships) Regulations 2008 (as amended) 8.1 Regulation 3(13)(a) of the Regulations states that these Regulations do not apply to any emission necessary for the purpose of securing the safety of a ship. 8.2 Exemptions can be considered on a case by case basis on application to the MCA, for example, trip tests undertaken by LNG ships prior to discharge of cargo at LNG terminals may merit exemption

15 More Information Environmental Policy Maritime and Coastguard Agency Bay 2/08 Spring Place 105 Commercial Road Southampton SO15 1EG Tel : +44 (0) Fax : +44 (0) environment@mcga.gov.uk General Inquiries: infoline@mcga.gov.uk MCA Website Address: File Ref: MS 034/039/0001 Published: April 2010 Please note that all addresses and telephone numbers are correct at time of publishing Crown Copyright 2010 Safer Lives, Safer Ships, Cleaner Seas Printed on material containing minimum 75% post-consumer waste paper - 5 -

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