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Great Lakes shippers fuming over EPA fuel proposal
Prairie Business Magazine ^ | Tuesday, October 20, 2009 | Peter Passi

Posted on 10/20/2009 5:19:11 AM PDT by Willie Green

Federal efforts to clean up laker emissions are fueling a heated debate throughout the St. Lawrence Seaway.

“It’s a threat to the economics of shipping on the Great Lakes,” Adolph Ojard, executive director of the Duluth Seaway Port Authority, said of rules recently proposed by the Environmental Protection Agency.

The EPA wants to wean older lakers off their diet of inexpensive No. 6 “bunker” fuel to reduce sulfur levels 50 percent in 2012 and help prevent tens of thousands of premature deaths. The entire fleet would convert to low-sulfur marine diesel by 2015.

But lake carriers say the effort could backfire if it drives more cargo to trucks and trains, which burn more fuel and emit more pollutants per ton of cargo than ships do. And they say the transition may well shrink the fleet of freighters serving the Twin Ports and other Great Lakes communities.

“We foresee 13 steamers potentially being retired,” said Glen Nekvasil, a spokesman for the Lake Carriers Association, a trade organization that represents companies operating freighters on the Great Lakes.

That would include such iconic Duluth visitors as the Alpena and the Edward L. Ryerson, vessels that are powered by older steam engines instead of more modern diesels.

In all, 13 U.S.-flagged steamships remain in active service — 20 percent of the U.S. laker fleet — and Nekvasil said the cost of repowering these vessels could run in the neighborhood of $22 million apiece. Even if fleet operators choose to make this hefty investment, it would require ships to be taken out of service at least temporarily.

“Marine engines like these don’t come off the shelf,” Nekvasil said.

Mark Barker, president of Interlake Steamship Co., based in Richfield, Ohio, said he would have little choice but to quit operating the two remaining steamers — the Kaye E. Barker and the Herbert C. Jackson — in his eight-vessel fleet and write them off as obsolete in 2012 if the proposed rules are adopted.

ENVIRONMENTALIST ASSAILS "DIRTY FUEL"

But change is overdue, said Jennifer Nalbone, a campaign director for Great Lakes United, an environmental advocacy group.

While she described the domestic fleet of lakers as a mixed bag, Nalbone said: “Many of them have engines that are decades old and that burn dirty bunker fuel. It’s time for them to do their part.”

The United States and Canada have been working together to establish North American “emission control areas.” Newly proposed rules would regulate the type of fuel ships can use when operating within 200 nautical miles of the coastline.

The EPA projects its proposed regulations annually would eliminate 1.2 million tons of domestic nitrogen oxide emissions and would slash the quantity of particulate matter released into the atmosphere by about 143,000 tons by 2030. Regulators say that’s beneficial not only for the environment but for the welfare of humans.

The agency predicts that if its proposed new rules are adopted, by 2030 we could annually prevent 13,000 to 33,000 premature deaths associated with exposure to particulates and 220 to 980 premature deaths related to ozone.

“To the extent that shipping companies will be required to clean up the fuel they burn, I think this will be a step in the right direction,” said Mary Marrow, a staff attorney at the Minnesota Center for Environmental Advocacy.

She said that reducing sulfur dioxide and nitrogen oxide emissions also should help in the battle against haze that has besmirched once-pristine views of Isle Royale and the Boundary Waters Canoe Wilderness Area.

“Anything that can be done to improve the airshed is greatly needed,” Marrow said. “This requires a regional effort, because air has no boundaries.”

SHIFT AWAY FROM LAKERS?

But Ojard fears the EPA has given inadequate consideration to the possible repercussions of applying the proposed fuel rules to the Great Lakes.

The new rules would hit the Great Lakes especially hard when fully implemented, because vessels operating in the 2,342-mile St. Lawrence Seaway system will be compelled to use more expensive marine diesel instead of bunker fuels.

In contrast, ocean-going vessels calling on coastal ports will only need to switch to more costly marine diesel when within 200 miles of their destination. For most of their journey they’ll be allowed to operate on cheaper bunker fuels.

If the new rules take effect, Ojard predicts salties may think twice about entering the St. Lawrence Seaway, given the higher operating costs they will face there.

Should costs rise, domestic shippers also may shift their cargo from lakers to trains or trucks, said Dave Podratz, general manager of the Murphy Oil USA refinery in Superior. Barker considers a shift of freight from the lakes to land quite likely if the EPA rules are enacted. He said vessels now burning intermediate fuels would need to switch to distillate fuels costing at least $1 per gallon more, and carriers could not absorb this added expense without adjusting rates.

“Haulage or freight contracts can be lost to shipping and railroad competitors for just pennies a ton,” he said.

Since trains provide a less fuel-efficient means of transportation than ships, Ojard said, shifting freight to rail will dump far more greenhouse gases and pollutants into the atmosphere than lakers currently do.

“It may do more harm than good,” he said. “I think it would be detrimental to both the environment and the economy.”

Rep. Jim Oberstar, D-Minn., has shared his concerns about the proposed rule changes with the EPA, said John Schadl, his communications director. Representatives of Great Lakes states met with the EPA last week, he said.

If laker rates climb, Schadl fears it could hurt demand for taconite and slow the pace of economic recovery.

“We’re finally at a point where the recession looks like it could be turning around,” he said. “We’re not going to jeopardize a recovery just because the EPA has made a rule that is ill-considered.”


TOPICS: Business/Economy; Government
KEYWORDS: energy; fuel; shipping; transportation
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1 posted on 10/20/2009 5:19:12 AM PDT by Willie Green
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To: Willie Green
“We’re not going to jeopardize a recovery just because the EPA has made a rule that is ill-considered.”

...they'll "relax" the rules if you could just find a way to promote the agenda...*nudge nudge*..it won't cost you as much..*wink wink*

2 posted on 10/20/2009 5:23:21 AM PDT by Doogle (USAF.68-73..8th TFW Ubon Thailand..never store a threat you should have eliminated))
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To: Willie Green
While she described the domestic fleet of lakers as a mixed bag, Nalbone said: “Many of them have engines that are decades old and that burn dirty bunker fuel. It’s time for them to do their part.”

Really? Now there is a logical argument. A perfectly good transportation system is to be overhauled because, basically, "I say so." That is the essence of "environmentalism".

3 posted on 10/20/2009 5:23:51 AM PDT by Former Proud Canadian (How do I change my screen name now that we have the most conservative government in the world?)
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To: Willie Green

But people in the Midwest voted for economic destruction.


4 posted on 10/20/2009 5:24:59 AM PDT by Frantzie (Do we want ACORN running America's health care?)
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To: Frantzie

So let them have it.


5 posted on 10/20/2009 5:27:57 AM PDT by DB
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To: Willie Green

Do they think the socialists in charge of Washington gives a damned?


6 posted on 10/20/2009 5:30:36 AM PDT by Blood of Tyrants (The Second Amendment. Don't MAKE me use it.)
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To: Willie Green
It’s a threat to the economics of shipping on the Great Lakes” pure Bull! If anything, it may increase costs which get passed along. Nobody is just going to pick up and leave shipping in the great lakes, because someone else would just come along and fill the demand. I'm no fan of the EPA, but I am a fan of cleaner lakes.
7 posted on 10/20/2009 5:33:31 AM PDT by z3n
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To: Willie Green
Since they have already plugged all the smoke stacks around Detroit and other auto dependent industries throughout Lower Michigan, the EPA has already achieved the air quality they were after. Now they are piling on to destroy any economies that are still alive in the Great Lakes Basin. What we really need is an Economic Protection Agency!
8 posted on 10/20/2009 5:38:52 AM PDT by Dixie Yooper (Ephesians 6:11)
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To: Willie Green

The environment be darned...Having worked with bunker fueled marine boilers I think #6 diesel should be outlawed just to save the sanity of the engineer...it is one rasty bugger.


9 posted on 10/20/2009 5:40:13 AM PDT by crazyhorse691 (Now that the libs are in power dissent is not only unpatriotic, but, it is also racist.)
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To: Frantzie
But people in the Midwest voted for economic destruction.

No they didn't.
The Republicrats never offered them economic survival as an option.
The taconite being shipped is Iron Ore.
Granted, the enviro-whacknuts have been attacking the mining/iron & steel industries for decades.
But the GOP gave up trying to defend against overregulation a long time ago, and abandoned the people in the Midwest for "globalization".

10 posted on 10/20/2009 5:40:25 AM PDT by Willie Green (Go Pat Go!!!)
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To: Willie Green

The real outrage is that EPA is putting the pinch on modern ships while letting the old coal burning SS Badger car ferry - Manitowoc WI to Ludington MI - dump all of it’s coal ash directly into the lake - many tons a week.

The ship also operates with an anything-goes Clean Air Act exemption, allowing them to shoot untreated and unscrubbed stack gas, fly ash and particulate straight up into the air.

Free ride for the dirtiest ship in the USA. Because the tech is more archaic than the rest.


11 posted on 10/20/2009 5:40:42 AM PDT by sbMKE
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To: z3n

“but I am a fan of cleaner lakes. “

A small consideration...it is the air around the lakes that is the focus....


12 posted on 10/20/2009 5:40:52 AM PDT by thinking
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To: Willie Green

For those interested in yesterdays related discussion:

http://www.freerepublic.com/focus/f-news/2365682/posts


13 posted on 10/20/2009 5:42:23 AM PDT by thackney (life is fragile, handle with prayer)
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To: Blood of Tyrants
Do they think the socialists in charge of Washington gives a damned?

The GOP doesn't give a damn either.

14 posted on 10/20/2009 5:42:41 AM PDT by Willie Green (Go Pat Go!!!)
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To: Doogle

You can see their agenda by their words.

Ecotheists follow only one “Religion” ....


15 posted on 10/20/2009 5:46:06 AM PDT by Robert A Cook PE (I can only donate monthly, but socialists' ABBCNNBCBS continue to lie every day!)
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To: Willie Green

No willie, the Unions and the big cities politics killed the midwest a longtime ago. The big three auto companies are dead because of unions and regulations. Your a troll anyway.


16 posted on 10/20/2009 5:46:49 AM PDT by scooby321
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To: Willie Green
There aren't that many lakers left. I don't see how this would make a difference even if they actually cared about the environment. This is just another green shakedown.
17 posted on 10/20/2009 5:49:47 AM PDT by GonzoGOP (There are millions of paranoid people in the world, and they are all out to get me.)
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To: z3n

“I’m no fan of the EPA, but I am a fan of cleaner lakes.”

Are you aware that “cleaner” was the reason that Ohio no longer has the major steel industry it once did?

Remember the commie/enviro whine when the Cayuga River “caught fire”? Well, not long ago, those same commie/enviro nut cases proudly proclaimed that there was a bass fishery in that river.

How precious! America lost its steel industry and gets a chance to sell a few bass boats to ‘bassholes”, to sell a few cans of worms???

Think the profits from worms and a handful of boats will pay enough in tax money for game wardens, “fishery biologists”, and other government trough feeders like EPA’s staff of commies devoted to destruction of America.

Wake up! Forget smelling the roses - read the bottom line!

ENvironmentalism was designed by commies to destroy AMerica’s economy so communism could be installed here.

How can I say this? Easy - I was once on the Sierra Club’s Florida Executive Committee, A.K.A FLEXCOM. That makes me a real, live, walking, talking ex-FLEXCOMMIE.

They ARE commies.

Been there. Listened to them. Walked away from them.


18 posted on 10/20/2009 5:53:29 AM PDT by GladesGuru (In a society predicated upon freedom, it is essential to examine principles,)
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To: GonzoGOP

25 or 26 US and Canadian steamers would be made obsolete.


19 posted on 10/20/2009 5:54:40 AM PDT by Eric in the Ozarks
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To: scooby321
Your a troll anyway.
And you're an illiterate, public school dummy.
20 posted on 10/20/2009 5:55:17 AM PDT by Willie Green (Go Pat Go!!!)
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