Great Lakes Steamship  Repower
                     Incentive Program
                         The U.S. Environmental Protection Agency (EPA) is publishing a
                         Direct Final Rule to add a provision to our marine diesel engine
                     program to encourage owners of Great Lakes steamships to repower
                     those steamships with cleaner Tier 2 or later marine diesel engines.


                     Overview
                     The 13 U.S. steamships that operate on the Great Lakes use propulsion technology
                     that was developed before the advent of modern diesel engines. Due to safety and
                     other considerations, these steamships are exempt from the fuel sulfur requirements
                     that will begin to apply on the Great Lakes in August, 2012.1

                     Steam power plants can use 30 to 50 percent more fuel than comparable diesel engines,
                     with resulting high particulate matter (PM) and sulfur oxides (SOx) emissions.
                     However, the high cost of repower projects and the requirement to use lower sulfur
                     fuel in the replacement diesel engines can discourage owners from replacing their
                     steam engines.

                     To encourage voluntary steamship repowers, we are adding a new  incentive provision
                     to our marine diesel engine program. This provision will provide an automatic, lim-
                     ited fuel waiver for qualifying repowered Great Lakes steamships that will allow the
                     owner to use higher sulfur residual fuel in the repowered diesel engine for a specified
                     period of time.

                     Voluntary replacement of steam power plants with modern fuel-efficient marine diesel
                     engines will result in significant reductions. During the period of the waiver SOx
                     emissions from a typical steamship would be reduced by 34 percent. In the long term,
                     after the waiver expires and the ship must use low sulfur fuel, SOx and PM emissions
                     would be reduced by 97 percent and 84 percent, respectively, when compared to the
                     steam power plant. These emission reductions will provide human health and welfare
                     benefits for people who live in the Great Lakes region.
SEPA
                     1 See our final Category 3 marine diesel rule, 75 FR 22896, April 30, 2010. This document is
                     available at our website, www.epa.gov/otaq/oceanvessels.htm .
United States
Environmental Protection
Agency
Office of Transportation and Air Quality
                   EPA-420-F-12-003
                      January 2012

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The automatic Great Lakes steamship repower fuel waiver is valid through December 31, 2025;
after that date, repowered steamships will be required to use fuel that complies with the sulfur
limits that apply on the Great Lakes, or use an exhaust gas cleaning system (scrubber) or other
technology or procedure that achieves equivalent sulfur emission limits.

To qualify, the steamship must operate exclusively on the Great Lakes and must have been in
service on October 30, 2009, where "in service" means operating as a steamship, but is not liiri'
ited to actually performing that service on that day. The replacement engine must be a Tier 2 or
cleaner marine diesel engine as specified in 40 CFR 1042.104. Reporting and other requirements
to take advantage of the waiver are set out in the rulemaking package,

Public Participation Opportunities
This rule is being released as a direct final rule. However, comments can be submitted under
a parallel Notice of Proposed Rulemaking (NPRM). Comments will be accepted for 30 days
beginning when the NPRM is published in the Federal Register. All comments should be identi-
fied by Docket ID No. EPA-HQ-OAR-2011-0928 and submitted by one of the following methods:

          Internet: www.regulations.gov
          E-mail: A-and-R-docket@epa.gov
          Mail:
             Environmental Protection Agency
             Air and Radiation Docket and Information Center (6102T)
             1200 Pennsylvania Avenue NW
             Washington, DC 20460
          Hand Delivery:
             EPA West Building
             EPA Docket Center (Room 3334)
             1301 Constitution Avenue NW
             Washington, DC

For More Information
You can access the rule and related documents on EPA's Office of Transportation and Air
Quality (OTAQ) Web site at:

             www.epa.gov/otaq/oceanvessels.htm

For more information on this Direct Final Rule, please contact the Assessment and Standards
Division at:

          U.S. Environmental Protection Agency
          Assessment and Standards Division
          Office of Transportation and Air Quality
          2000 Traverwood Drive
          Ann Arbor, MI 48105
          Voice-mail: (734) 214-4636
          E-mail: asdinfo@epa.gov

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