[Federal Register: July 3, 2008 (Volume 73, Number 129)]
[Notices]
[Page 38261-38263]
[DOCID:fr03jy08-108]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-58038; File No. SR-ISE-2008-50]

Self-Regulatory Organizations; International Securities Exchange,
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule
Change Relating to the Exposure of Public Customer Orders to all ISE
Members

June 26, 2008.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on June 23, 2008, the International Securities Exchange, LLC
(``ISE'' or ``Exchange'') filed with the Securities and Exchange
Commission (``Commission'') the proposed rule change as described in
Items I and II below, which Items have been substantially prepared by
the ISE. The ISE has designated the proposed rule change as a ``non-
controversial'' rule change pursuant to Section 19(b)(3)(A) of the Act
\3\ and Rule 19b-4(f)(6) thereunder,\4\ which renders the proposed rule
change effective upon filing with the Commission. The Commission is
publishing this notice to solicit comments on the proposed rule change
from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The ISE proposes to amend ISE Rule 803 relating to the exposure of
public customer orders. The text of the proposed rule change is
available on ISE's Web site at http://www.ise.com, at ISE's principal
office, and at the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the ISE included statements
concerning the purpose of, and basis for, the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The ISE has prepared summaries, set forth in Sections A,
B, and C below, of the most significant aspects of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The purpose of this proposed rule change is to amend ISE Rule 803
relating to the exposure of public customer orders. Pursuant to
Commission approval, before a Primary Market Maker (``PMM'') sends a
public customer order through the intermarket linkage (``Linkage'')
when ISE is not at the national best bid or offer (``NBBO''), the
Exchange exposes these customer orders to all its market makers to give
them an opportunity to match the NBBO.\5\
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    \5\ See Securities Exchange Act Release No. 57812 (May 12,
2008), 73 FR 28846 (May 19, 2008) (Notice of Filing of Amendment No.
1 to the Proposed Rule Change and Order Granting Accelerated
Approval of Proposed Rule Change, As Modified by Amendment No. 1
Thereto, Relating to the Exposure of Public Customer Orders).
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    Specifically, before the PMM sends a Linkage Order on behalf of a
public customer, the public customer order is exposed at the NBBO price
for a period established by the Exchange not to exceed one second.
During this exposure period, Exchange market makers may enter responses
up to the size of the order being exposed in the regular trading
increment applicable to the option. If at the end of the exposure
period, the order is executable at the then-current NBBO and the ISE is
not at the then-current NBBO, the order is executed against responses
that equal or better the then-current NBBO.\6\ The exposure period will
be terminated if the exposed order becomes executable on the ISE at the
prevailing NBBO or if the Exchange receives an unrelated order that
could trade against the exposed order at the prevailing NBBO price.\7\
If, after an order is exposed, the order is not executed in full on the
Exchange at the then-current NBBO or better, and it is marketable
against the then-current NBBO, the PMM sends a Linkage Order on the
customer's behalf for the balance of the order as provided in Rule
803(c)(2)(ii) even though there may be other ISE members who would be
willing to execute the order at the better price. If the balance of the
order is not marketable against the then-

current NBBO, it is placed on the ISE book.
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    \6\ Executions will be allocated pro-rata based on size (i.e.,
the percentage of the total number of contracts available at the
same price that is represented by the size of a market maker's
response).
    \7\ The order is executed against orders and quotes on the book
and responses received during the exposure period in price priority.
At the same price, customer orders are executed first in time
priority and then all other interest (orders, quotes and responses)
are allocated pro-rata based on size.
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    The Exchange notes that when an order is sent to another exchange
through Linkage, the other exchange charges an execution fee. The cost
of sending the order through Linkage can be substantial, particularly
with respect to other options exchanges that have adopted a maker-taker
fee schedule.\8\ To retain as much order flow as possible on ISE and to
help reduce costs associated with the number of orders sent through
Linkage, ISE proposes to expose public customer orders to Electronic
Access Members in addition to all other market makers, thus permitting
all members of the Exchange to respond to these public customer orders
before the orders are sent to another exchange through Linkage. This
proposal will provide additional opportunities for public customer
orders to be executed at the NBBO at ISE, and, as noted above, will
reduce PMM costs by reducing the number of Linkage orders they must
send to other exchanges.
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    \8\ Several options exchanges have adopted a fee structure in
which firms receive a rebate for the execution of orders resting in
the limit order book, i.e., posting liquidity, and pay a fee for the
execution of orders that trade against liquidity resting on the
limit order book, i.e., taking liquidity. Taker fees currently range
up to $0.45 per contract and are charged without consideration of
the order origin category, including public customer orders. The
effective price paid by a customer purchasing an option can be
considerably higher on an exchange that charges a taker fee. Because
orders cannot be executed at prices inferior to the NBBO, ISE
members are effectively forced to pay taker fees when an exchange
with a taker fee structure is at the NBBO and the members' orders
are directly routed to such an exchange or indirectly routed to such
an exchange through Linkage (where the fees are passed through).
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2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with
the Act and the rules and regulations under the Act applicable to a
national securities exchange and, in particular, the requirements of
Section 6(b) of the Act.\9\ Specifically, the Exchange believes the
proposed rule change is consistent with Section 6(b)(5) of the Act's
\10\ requirements that the rules of a national securities exchange be
designed to promote just and equitable principles of trade, to prevent
fraudulent and manipulative acts and, in general, to protect investors
and the public interest. In particular, the proposed rule change will
give additional opportunities for public customer orders to be executed
at the NBBO at ISE and reduce costs by reducing the number of Linkage
orders sent to other exchanges.
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    \9\ 15 U.S.C. 78f(b).
    \10\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange believes that the proposed rule change does not impose
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act.

C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others

    The Exchange has not solicited, and does not intend to solicit,
comments on this proposed rule change. The Exchange has not received
any written comments from members or other interested parties.

III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action

    Because the foregoing proposed rule change: (1) Does not
significantly affect the protection of investors or the public
interest; (2) does not impose any significant burden on competition;
and (3) by its terms does not become operative for 30 days after the
date of this filing, or such shorter time as the Commission may
designate if consistent with the protection of investors and the public
interest, the proposed rule change has become effective pursuant to
Section 19(b)(3)(A) of the Act \11\ and subparagraph (f)(6) of Rule
19b-4 thereunder.\12\ As required under Rule 19b-4(f)(6)(iii),\13\ the
Exchange provided the Commission with written notice of its intent to
file the proposed rule change, along with a brief description and text
of the proposed rule change, at least five business days prior to the
date of filing of the proposed rule change.
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    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 17 CFR 240.19b-4(f)(6).
    \13\ 17 CFR 240.19b-4(f)(6)(iii).
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    A proposed rule change filed under Rule 19b-4(f)(6) \14\ normally
may not become operative prior to 30 days after the date of filing.
However, Rule 19b-4(f)(6)(iii) \15\ permits the Commission to designate
a shorter time if such action is consistent with the protection of
investors and the public interest. The ISE requests that the Commission
waive the 30-day operative delay, as specified in Rule 19b-
4(f)(6)(iii),\16\ which would make the rule change effective and
operative upon filing. The Commission believes that waiving the 30-day
operative delay is consistent with the protection of investors and the
public interest. The Commission notes that a waiver of the 30-day
operative delay will allow the Exchange to implement this proposed rule
change immediately and, thus, permit all ISE members to respond to
public customer orders that have been exposed.\17\ Further, the
Commission notes that another exchange has similar rules that would
expose in-bound orders that are executable against the NBBO on that
exchange's book for one second.\18\ Accordingly, the Commission
designates the proposed rule change operative upon filing with the
Commission.
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    \14\ 17 CFR 240.19b-4(f)(6).
    \15\ 17 CFR 240.19b-4(f)(6)(iii).
    \16\ Id.
    \17\ For purposes only of waiving the operative delay for this
proposal, the Commission has considered the proposed rule's impact
on efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
    \18\ See Chapter V, Section 16(b) of the Rules of the Boston
Options Exchange.
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    At any time within 60 days of the filing of such proposed rule
change, the Commission may summarily abrogate such rule change if it
appears to the Commission that such action is necessary or appropriate
in the public interest, for the protection of investors, or otherwise
in furtherance of the purposes of the Act.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to<EMAIL_ADDRESS>Please include
File Number SR-ISE-2008-50 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-ISE-2008-50. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/
sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written

communications relating to the proposed rule change between the
Commission and any person, other than those that may be withheld from
the public in accordance with the provisions of 5 U.S.C. 552, will be
available for inspection and copying in the Commission's Public
Reference Room, 100 F Street, NE., Washington, DC 20549, on official
business days between the hours of 10 a.m. and 3 p.m. Copies of such
filing also will be available for inspection and copying at the
principal office of the ISE. All comments received will be posted
without change; the Commission does not edit personal identifying
information from submissions. You should submit only information that
you wish to make available publicly. All submissions should refer to
File Number SR-ISE-2008-50 and should be submitted on or before July
24, 2008.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
Florence E. Harmon,
Acting Secretary.
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    \19\ 17 CFR 200.30-3(a)(12).
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[FR Doc. E8-15069 Filed 7-2-08; 8:45 am]

BILLING CODE 8010-01-P


[Federal Register Volume 82, Number 7 (Wednesday, January 11, 2017)]
[Rules and Regulations]
[Pages 3173-3185]
[FR Doc No: 2017-00153]

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ENVIRONMENTAL PROTECTION AGENCY

DEPARTMENT OF DEFENSE

40 CFR Part 1700

[EPA-HQ-OW-2013-0469; FRL-9957-85-OW]
RIN 2040-AD39

Uniform National Discharge Standards for Vessels of the Armed
Forces--Phase II Batch One

AGENCY: Environmental Protection Agency and Department of Defense.

ACTION: Final rule.

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SUMMARY: The U.S. Environmental Protection Agency (EPA) and the U.S.
Department of Defense (DoD) are promulgating discharge performance
standards for 11 discharges incidental to the normal operation of a
vessel of the Armed Forces into the navigable waters of the United
States, the territorial seas, and the contiguous zone. When
implemented, the discharge performance standards will reduce the
adverse environmental impacts associated with the vessel discharges,
stimulate the development of improved vessel pollution control devices,
and advance the development of environmentally sound vessels of the
Armed Forces. The 11 discharges addressed by the final rule are the
following: aqueous film-forming foam (AFFF), chain locker effluent,
distillation and reverse osmosis brine, elevator pit effluent, gas
turbine water wash, non-oily machinery wastewater, photographic
laboratory drains, seawater cooling overboard discharge, seawater
piping biofouling prevention, small boat engine wet exhaust, and
welldeck discharges.

DATES: This final rule is effective on February 10, 2017.

ADDRESSES: The EPA has established a docket for this action under
Docket No. EPA-HQ-OW-2013-0469. All documents in the docket are listed
on the http://regulations.gov Web site. The complete public record for
this rulemaking, including responses to comments received during the
rulemaking, can be found under Docket No. EPA-HQ-OW-2013-0469.

FOR FURTHER INFORMATION CONTACT: Katherine B. Weiler, Marine Pollution
Control Branch (4504T), U.S. EPA, 1200 Pennsylvania Avenue NW.,
Washington, DC 20460;<PHONE_NUMBER><EMAIL_ADDRESS>or Mike
Pletke, Chief of Naval Operations (N45), 2000 Navy Pentagon (Rm 2D253),
Washington, DC 20350-2000;<PHONE_NUMBER><EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:
I. General Information
    A. Legal Authority for the Final Rule
    B. Purpose of the Final Rule
    C. What vessels are regulated by the final rule?
    D. What is the geographic scope of the final rule?
    E. Rulemaking Process
    F. Summary of Public Outreach and Consultation With Federal
Agencies, States, Territories, and Tribes
    G. Supporting Documentation
II. UNDS Performance Standards Development
    A. Nature of the Discharge

    B. Environmental Effects
    C. Cost, Practicability, and Operational Impacts
    D. Applicable U.S. and International Law
    E. Definitions
III. UNDS Performance Standards
    A. Aqueous Film-Forming Foam
    B. Chain Locker Effluent
    C. Distillation and Reverse Osmosis Brine
    D. Elevator Pit Effluent
    E. Gas Turbine Water Wash
    F. Non-Oily Machinery Wastewater
    G. Photographic Laboratory Drains
    H. Seawater Cooling Overboard Discharge
    I. Seawater Piping Biofouling Prevention
    J. Small Boat Engine Wet Exhaust
    K. Welldeck Discharges
IV. Additional Information in the Final Rule
V. Key Changes and Improvements Since the Proposed Rule
    A. Public Comment
    B. Endangered Species Act (ESA) Consultation
    C. Coastal Zone Management Act (CZMA) Consistency Determination
    D. Development of Performance Standards in Batches
    E. Revisions to Definitions and Standards
VI. Related Acts of Congress and Executive Orders
    A. Executive Order 12866: Regulatory Planning and Review and
Executive Order 13563: Improving Regulation and Regulatory Review
    B. Paperwork Reduction Act
    C. Regulatory Flexibility Act (RFA)
    D. Unfunded Mandates Reform Act (UMRA)
    E. Executive Order 13132: Federalism
    F. Executive Order 13175: Consultation and Coordination With
Indian Tribal Governments
    G. Coastal Zone Management Act
    H. Executive Order 13045: Protection of Children from
Environmental Health and Safety Risks
    I. Executive Order 13211: Actions Concerning Regulations That
Significantly Affect Energy Supply, Distribution, or Use
    J. National Technology Transfer and Advancement Act
    K. Endangered Species Act
    L. Executive Order 13112: Invasive Species
    M. Executive Order 13089: Coral Reef Protection
    N. Executive Order 12898: Federal Actions To Address
Environmental Justice in Minority Populations and Low-Income
Populations
    O. Congressional Review Act

I. General Information

A. Legal Authority for the Final Rule

    The EPA and DoD promulgate this rule under the authority of Clean
Water Act (CWA) section 312 (33 U.S.C. 1322). Section 325 of the
National Defense Authorization Act of 1996 (``NDAA''), entitled
``Discharges from Vessels of the Armed Forces'' (Pub. L. 104-106, 110
Stat. 254), amended CWA section 312, to require the Administrator of
the U.S. Environmental Protection Agency (Administrator) and the
Secretary of Defense of the U.S. Department of Defense (Secretary) to
develop uniform national standards to control certain discharges
incidental to the normal operation of a vessel of the Armed Forces. The
term Uniform National Discharge Standards, or UNDS, is used in this
preamble to refer to the provisions in CWA section 312(a)(12) through
(14) and (n) (33 U.S.C. 1322(a)(12) through (14) and (n)).

B. Purpose of the Final Rule

    UNDS are intended to enhance the operational flexibility of vessels
of the Armed Forces domestically and internationally, stimulate the
development of innovative vessel pollution control technology, and
advance the development of environmentally sound ships. Section
312(n)(3)(A) of the CWA requires the EPA and DoD to promulgate uniform
national discharge standards for certain discharges incidental to the
normal operation of a vessel of the Armed Forces (CWA section
312(a)(12)), unless the Secretary finds that compliance with UNDS would
not be in the national security interests of the United States (CWA
section 312(n)(1)).
    This rule amends title 40 Code of Federal Regulations (CFR) part
1700 to establish discharge performance standards for 11 discharges
incidental to the normal operation of a vessel of the Armed Forces from
among the 25 discharges for which the EPA and DoD previously determined
(64 FR 25126, May 10, 1999) that it is reasonable and practicable to
require a marine pollution control device (MPCD). The 11 discharges
addressed by this rule are the following: Aqueous film-forming foam;
chain locker effluent; distillation and reverse osmosis brine; elevator
pit effluent; gas turbine water wash; non-oily machinery wastewater;
photographic laboratory drains; seawater cooling overboard discharge;
seawater piping biofouling prevention; small boat engine wet exhaust;
and welldeck discharges.
    These discharge performance standards do not become enforceable
until after promulgation of a final rule, as well as promulgation of
regulations by DoD under CWA section 312(n)(5)(C) to govern the design,
construction, installation, and use of a MPCD.
    UNDS do not apply to the following discharges from vessels of the
Armed Forces: Overboard discharges of rubbish, trash, garbage, or other
such materials; sewage; air emissions resulting from the operation of a
vessel propulsion system, motor-driven equipment, or incinerator; or
discharges that require permitting under the National Pollutant
Discharge Elimination System (NPDES) program, including operational
discharges and other discharges that are not incidental to the normal
operation of a vessel of the Armed Forces.

C. What vessels are regulated by the final rule?

    The final rule applies to vessels of the Armed Forces. For the
purposes of the rulemaking, the term ``vessel of the Armed Forces'' is
defined at CWA section 312(a)(14). ``Vessel of the Armed Forces'' means
any vessel owned or operated by the U.S. Department of Defense (i.e.,
U.S. Navy, Military Sealift Command, U.S. Marine Corps, U.S. Army, and
U.S. Air Force), other than a time- or voyage-chartered vessel, as well
as any U.S. Coast Guard vessel designated by the Secretary of the
Department in which the U.S. Coast Guard is operating. The preceding
list is not intended to be exhaustive, but rather provides a guide for
the reader regarding the vessels of the Armed Forces to be regulated by
the final rule. The final rule does not apply to commercial vessels;
private vessels; vessels owned or operated by state, local, or tribal
governments; vessels under the jurisdiction of the U.S. Army Corps of
Engineers; certain vessels under the jurisdiction of the U.S.
Department of Transportation; vessels preserved as memorials and
museums; vessels under construction; vessels in drydock; amphibious
vehicles; and, as noted above, time- or voyage-chartered vessels. For
answers to questions regarding the applicability of this action to a
particular vessel, consult one of the contacts listed in the FOR
FURTHER INFORMATION CONTACT section.

D. What is the geographic scope of the final rule?

    This rule is applicable to discharges from a vessel of the Armed
Forces operating in the navigable waters of the United States,
territorial seas, and the contiguous zone (CWA section 1322(n)(8)(A)).
The rule applies in both fresh and marine waters and can include bodies
of water such as rivers, lakes, and oceans. Together, the preamble
refers to these waters as ``waters subject to UNDS.''
    Sections 502(7), 502(8), and 502(9) of the CWA define the term
``navigable waters,'' ``territorial seas,'' and ``contiguous zone,''
respectively. The term ``navigable waters'' means waters of the United
States including the territorial seas, where the United States includes
the states, the District of Columbia, the Commonwealth of Puerto

Rico, the U.S. Virgin Islands, Guam, American Samoa, the Commonwealth
of the Northern Mariana Islands, and the Trust Territories of the
Pacific Islands. The term ``territorial seas'' means the belt of seas
that generally extends three miles seaward from the line of ordinary
low water along the portion of the coast in direct contact with the
open sea and the line marking the seaward limit of inland waters. The
term ``contiguous zone'' means the entire zone established or to be
established by the United States under Article 24 of the Convention of
the Territorial Sea and the Contiguous Zone. Generally, the contiguous
zone extends seaward for the next nine miles (i.e., from three to 12
miles from the U.S. coastline). The final rule is not applicable
seaward of the contiguous zone.

E. Rulemaking Process

    The UNDS rulemaking is a joint rulemaking between the EPA and DoD
and is under development in three phases. The first two phases reflect
joint rulemaking between the EPA and DoD; the third phase is a DoD-only
rule.
Phase I
    The EPA and DoD promulgated the Phase I regulations on May 10, 1999
(64 FR 25126), and these existing regulations are codified at 40 CFR
part 1700. During Phase I, the EPA and DoD identified the discharges
incidental to the normal operation of a vessel of the Armed Forces for
which it is reasonable and practicable to require control with a MPCD
to mitigate potential adverse impacts on the marine environment (CWA
section 312(n)(2)), as well as those discharges for which it is not.
Section 312(a)(13) of the CWA defines a MPCD as any equipment or
management practice, for installation or use on a vessel of the Armed
Forces, that is designed to receive, retain, treat, control, or
discharge a discharge incidental to the normal operation of a vessel;
and determined by the Administrator and the Secretary to be the most
effective equipment or management practice to reduce the environmental
impacts of the discharge consistent with the considerations set forth
by UNDS.
    During Phase I, the EPA and DoD identified the following 25
discharges as requiring control with a MPCD: Aqueous film-forming foam;
catapult water brake tank and post-launch retraction exhaust; chain
locker effluent; clean ballast; compensated fuel ballast; controllable
pitch propeller hydraulic fluid; deck runoff; dirty ballast;
distillation and reverse osmosis brine; elevator pit effluent; firemain
systems; gas turbine water wash; graywater; hull coating leachate;
motor gasoline and compensating discharge; non-oily machinery
wastewater; photographic laboratory drains; seawater cooling overboard
discharge; seawater piping biofouling prevention; small boat engine wet
exhaust; sonar dome discharge; submarine bilgewater; surface vessel
bilgewater/oil-water separator effluent; underwater ship husbandry; and
welldeck discharges (40 CFR 1700.4).
    During Phase I, the EPA and DoD identified the following 14
discharges as not requiring control with a MPCD: Boiler blowdown;
catapult wet accumulator discharge; cathodic protection; freshwater
layup; mine countermeasures equipment lubrication; portable damage
control drain pump discharge; portable damage control drain pump wet
exhaust; refrigeration/air conditioning condensate; rudder bearing
lubrication; steam condensate; stern tube seals and underwater bearing
lubrication; submarine acoustic countermeasures launcher discharge;
submarine emergency diesel engine wet exhaust; and submarine outboard
equipment grease and external hydraulics.
    As of the effective date of the Phase I rule (June 9, 1999),
neither states nor political subdivisions of states may adopt or
enforce any state or local statutes or regulations with respect to the
14 discharges that were identified as not requiring control, except to
establish no-discharge zones (CWA sections 312(n)(6)(A) and 312(n)(7)).
However, section 312(n)(5)(D) of the CWA authorizes a Governor of any
state to submit a petition to the EPA and DoD and requesting the re-
evaluation of a prior determination that a MPCD is required for a
particular discharge (40 CFR 1700.4) or that a MPCD is not required for
a particular discharge (40 CFR 1700.5), if there is significant new
information not considered previously, that could reasonably result in
a change to the determination (CWA section 312(n)(5)(D) and 40 CFR
1700.11).
Phase II
    Section 312(n)(3) of the CWA provides for Phase II and requires the
EPA and DoD to develop federal discharge performance standards for each
of the 25 discharges identified in Phase I as requiring control. In
doing so, the EPA and DoD are required to consult with the Department
in which the U.S. Coast Guard is operating, the Secretary of Commerce,
interested states, the Secretary of State, and other interested federal
agencies. In promulgating Phase II discharge performance standards, CWA
section 312(n)(2)(B) directs the EPA and DoD to consider seven factors:
The nature of the discharge; the environmental effects of the
discharge; the practicability of using the MPCD; the effect that
installation or use of the MPCD would have on the operation or the
operational capability of the vessel; applicable U.S. law; applicable
international standards; and the economic costs of installation and use
of the MPCD. Section 312(n)(3)(C) of the CWA further provides that the
EPA and DoD may establish discharge standards that (1) distinguish
among classes, types, and sizes of vessels; (2) distinguish between new
and existing vessels; and (3) provide for a waiver of applicability of
standards as necessary or appropriate to a particular class, type, age,
or size of vessel.
    The EPA and DoD developed a process to establish the Phase II
discharge performance standards in three batches (three separate
rulemakings). The first batch of discharge performance standards was
proposed on February 3, 2014 (79 FR 6117) and addressed 11 of the 25
discharges identified as requiring control (64 FR 25126). A notice of
proposed rulemaking for the second batch of discharge performance
standards was published on October 7, 2016 (81 FR 69753) and addressed
11 additional discharges identified as requiring control (64 FR 25126).
The third batch of discharge performance standards that will address
the remaining three discharges will be proposed in a separate rule.
    In developing the Phase II discharge performance standards, the EPA
and DoD reference the 2013 NPDES Vessel General Permit and the 2014
NPDES Small Vessel General Permit (hereinafter referred to collectively
as the NPDES VGPs) as the baseline for each comparable discharge
incidental to the normal operation of a vessel of the Armed Forces (78
FR 21938, April 12, 2013 and 79 FR 53702, September 10, 2014). The
NPDES VGPs provide for CWA authorization of discharges incidental to
the normal operation of non-military and non-recreational vessels
extending to the outer reach of the three-mile territorial sea as
defined in CWA section 502(8). The NPDES VGPs include effluent limits
that are based on both the technology available to treat pollutants
(i.e., technology-based effluent limitations), and limits that would be
protective of the designated uses of the receiving waters (i.e., water
quality-based effluent limits), including both non-numeric and numeric
limitations. Additional information on NPDES permitting can

be found on-line at http://www.epa.gov/npdes/.
    Using the NPDES VGPs as a baseline for developing the performance
standards for discharges incidental to the normal operation of a vessel
of the Armed Forces allowed the EPA and DoD to maximize the use of the
EPA's scientific and technical work developed to support the NPDES
VGPs. The NPDES VGPs technology-based and water quality-based effluent
limitations were then adapted, as appropriate, for the relevant
discharges from vessels of the Armed Forces.
Phase III
    Phase III of UNDS requires DoD, in consultation with the EPA and
the Secretary of the Department in which the U.S. Coast Guard is
operating, within one year of finalization of the Phase II standards,
to promulgate regulations governing the design, construction,
installation, and use of MPCDs necessary to meet the discharge
performance standards. DoD will implement the Phase III regulations
under the authority of the Secretary as a DoD publication. The Phase
III regulations will be publicly released and are expected to be made
available on the Defense Technical Information Center Web site: http://www.dtic.mil/whs/directives/. Similar to Phase II, Phase III will be
promulgated in three batches.
    Following the effective date of regulations under Phase III, it
will be unlawful for a vessel of the Armed Forces to operate within
waters subject to UNDS if the vessel is not equipped with a MPCD that
meets the Phase II standards (CWA section 312 (n)(7)). It also will be
unlawful for a vessel of the Armed Forces to discharge a regulated UNDS
discharge into an UNDS no-discharge zone (i.e., waters where a
prohibition on a discharge has been established) (CWA section
312(n)(8)). Any person in violation of this requirement shall be liable
to a civil penalty of not more than $5,000 for each violation (CWA
section 312(j)). The Secretary of the Department in which the U.S.
Coast Guard is operating shall enforce these provisions and may utilize
law enforcement officers, EPA personnel and facilities, other federal
agencies, or the states to carry out these provisions. States may also
enforce these provisions (CWA section 312(k) and (n)(9)).
    In addition, as of the effective date of the Phase III regulations,
neither a state nor political subdivision a of state may adopt or
enforce any state or local statute or regulation with respect to
discharges identified as requiring control, except to establish no-
discharge zones (CWA section 312(n)(6)). CWA section 312(n)(7) provides
for the establishment of no-discharge zones either (1) by state
prohibition after application and a determination by the EPA, or (2)
directly by EPA prohibition. The Phase I UNDS regulations established
the criteria and procedures for establishing UNDS no-discharge zones
(40 CFR 1700.9 and 40 CFR 1700.10).
    If a state determines that the protection and enhancement of the
quality of some or all of its waters require greater environmental
protection, the state may prohibit one or more discharges incidental to
the normal operation of a vessel of the Armed Forces, whether treated
or not, into those waters (40 CFR 1700.9). A state prohibition does not
apply until after the Administrator determines that (1) the protection
and enhancement of the quality of the specified waters within the state
require a prohibition of the discharge into the waters; (2) adequate
facilities for the safe and sanitary removal of the discharge
incidental to the normal operation of a vessel are reasonably available
for the waters to which the prohibition would apply; and (3) the
prohibition will not have the effect of discriminating against a vessel
of the Armed Forces by reason of the ownership or operation by the
federal government, or the military function, of the vessel (40 CFR
1700.9(b)(2)).
    Alternatively, a state may request that the EPA prohibit, by
regulation, the discharge of one or more discharges incidental to the
normal operation of a vessel of the Armed Forces, whether treated or
not, into specified waters within a state (40 CFR 1700.10). In this
case, the EPA would make a determination that the protection and
enhancement of the quality of the specified waters requires a
prohibition of the discharge. As with the application of a state
prohibition described above, the Administrator would need to determine
that (1) the protection and enhancement of the quality of the specified
waters within the state require a prohibition of the discharge into the
waters; (2) adequate facilities for the safe and sanitary removal of
the discharge incidental to the normal operation of a vessel are
reasonably available for the waters to which the prohibition would
apply; and (3) the prohibition will not have the effect of
discriminating against a vessel of the Armed Forces by reason of the
ownership or operation by the federal government, or the military
function, of the vessel (40 CFR 1700.9(b)(2)). The EPA may not,
however, disapprove a state application for this latter type of
prohibition for the sole reason that there are not adequate facilities
for the safe and sanitary removal of such discharges (CWA section
312(n)(7)(B)(ii) and 40 CFR 1700.10(b)).
    The statute also requires the EPA and DoD to review the
determinations and standards every five years and, if necessary, to
revise them based on significant new information. Specifically, CWA
section 312(n)(5)(A) and (B) contain provisions for reviewing and
modifying both of the following determinations: (1) Whether control
should be required for a particular discharge, and (2) the substantive
standard of performance for a discharge for which control is required.
A Governor also may petition the Administrator and the Secretary to
review a UNDS determination or standard if there is significant new
information, not considered previously, that could reasonably result in
a change to the determination or standard (CWA section 312(n)(5)(D) and
40 CFR 1700.11).

F. Summary of Public Outreach and Consultation With Federal Agencies,
States, Territories, and Tribes

    During the development of the rule, the EPA and DoD consulted with
other federal agencies, states, and tribes regarding the reduction of
adverse environmental impacts associated with discharges from vessels
of the Armed Forces; development of innovative vessel pollution control
technology; and advancement of environmentally sound vessels of the
Armed Forces. In addition, the EPA and DoD reviewed comments on the
NPDES VGPs.

G. Supporting Documentation

    This rule is supported by ``Technical Development Document (TDD)
Phase I Uniform National Discharge Standards (UNDS) for Vessels of the
Armed Forces,'' the UNDS Phase I rules, the ``Final 2013 Vessel General
Permit for Discharges Incidental to the Normal Operation of Vessels
(VGP),'' the ``Vessel General Permit (VGP) Fact Sheet,'' the ``Final
Small Vessel General Permit for Discharges Incidental to the Normal
Operation of Vessels Less Than 79 Feet (sVGP),'' the ``Small Vessel
General Permit (sVGP) Fact Sheet,'' the ``Economics and Benefits
Analysis of the Final 2013 Vessel General Permit (VGP),'' the
``Economics and Benefits Analysis of the Final 2013 Small Vessel
General Permit (sVGP),'' the ``February 2014 Uniform National Discharge
Standards for Vessels of the Armed Forces--Phase II,'' the ``Report to

Congress: Study of Discharges Incidental to Normal Operation of
Commercial Fishing Vessels and Other Non-Recreational Vessels Less than
79 Feet,'' the ``Environmentally Acceptable Lubricants,'' the
``Biological Evaluation for the Uniform National Discharge Standards
(UNDS) Program Phase II Batch One,'' and the ``National Consistency
Determination: Uniform National Discharge Standards (UNDS) Program for
Phase II Batch One Discharges.'' These documents are available from the
EPA Water Docket, Docket No. EPA-HQ-OW-2013-0469 (Email<EMAIL_ADDRESS>Phone Number:<PHONE_NUMBER>; Mail: Water Docket, Mail
Code: 2822-IT, 1200 Pennsylvania Avenue NW., Washington, DC 20460; or
Online: http://www.regulations.gov). The NPDES VGPs background
documents also are available online: https://www.epa.gov/npdes/vessels.

II. UNDS Performance Standards Development

    During the development of the discharge performance standards, the
EPA and DoD analyzed the information from the Phase I of UNDS,
considered the relevant language in the NPDES VGPs effluent
limitations, and took into the consideration the seven statutory
factors listed in CWA section 312(n)(2)(B). These seven statutory
factors are: The nature of the discharge; the environmental effects of
the discharge; the practicability of using the MPCD; the effect that
installation or use of the MPCD would have on the operation or
operational capability of the vessel; applicable U.S. law; applicable
international standards; and the economic costs of the installation and
use of the MPCD. The EPA and DoD determined that the NPDES VGPs
effluent limitations, which include technology-based and water quality-
based effluent limitations, provide a sound basis to serve as a
baseline for developing the discharge performance standards for the 11
discharges in this rule. The subsections below outline the EPA and
DoD's approach to considering the seven statutory factors listed in CWA
section 312(n)(2)(B).

A. Nature of the Discharge

    During Phase I, the EPA and DoD gathered information on the
discharges incidental to the normal operation of a vessel of the Armed
Forces and developed nature of the discharge reports. The nature of the
discharge reports discuss how the discharge is generated, volumes and
frequencies of the generated discharge, where the discharge occurs, and
the constituents present in the discharge. In addition, the EPA and DoD
reviewed relevant discharge information in the supporting documentation
of the NPDES VGPs. The EPA and DoD briefly describe the nature of each
of the 11 discharges below; however, the complete nature of the
discharge reports can be found in Appendix A of the Technical
Development Document--EPA 821-R-99-001.

B. Environmental Effects

    Discharges incidental to the normal operation of a vessel of the
Armed Forces have the potential to negatively impact the aquatic
environment. The discharges contain a wide variety of constituents that
have the potential to negatively impact aquatic species and habitats.
These discharges can cause thermal pollution and can contain aquatic
nuisance species (ANS), nutrients, bacteria and pathogens (e.g., E.
coli and fecal coliforms), oil and grease, metals, most conventional
pollutants (e.g., organic matter, bicarbonate, and suspended solids),
and other toxic and non-conventional pollutants with toxic effects.
While it is unlikely that these discharges would cause an acute or
chronic exceedance of the EPA recommended water quality criteria across
a large water body, these discharges have the potential to cause
adverse environmental impacts on a more localized scale due to the end-
of-pipe nature of the discharges. For each of the 11 discharges below,
the EPA and DoD discuss the constituents of concern released into the
environment and potential water quality impacts. The discharge
performance standards will reduce the discharge of constituents of
concern and mitigate the environmental risks to the receiving waters.

C. Cost, Practicability, and Operational Impacts

    The universe of vessels of the Armed Forces affected by the rule
encompasses more than 6,000 vessels distributed among the U.S. Navy,
Military Sealift Command, U.S. Coast Guard, U.S. Army, U.S. Marine
Corps, and U.S. Air Force. These vessels range in design and size from
small boats with lengths of less than 20 feet for coastal operations,
to aircraft carriers with lengths of over 1,000 feet for global
operations. Approximately 80 percent of the vessels of the Armed Forces
are less than 79 feet in length. Larger vessels (i.e., vessels with
length greater than or equal to 79 feet) comprise 20 percent of the
vessels of the Armed Forces. The EPA and DoD considered vessel class,
type, and size when developing the discharge standards, as not all
vessels of the Armed Forces have the same discharges. For more
information on the various vessel classes, characteristics, and
missions, see Appendix A.
    The EPA and DoD assessed the relative costs, practicability, and
operational impacts of the rule by comparing current operating
conditions and practices of vessels of the Armed Forces with the
anticipated operating conditions and practices that will be required to
meet the discharge performance standards. The EPA and DoD determined
that the discharge performance standards applicable to operating
conditions and practices for the 11 discharges will only result in a
marginal increase in performance costs, practicability, and operational
impacts.

D. Applicable U.S. and International Law

    The EPA and DoD reviewed U.S. laws and international standards that
would be relevant to discharges incidental to the normal operation of a
vessel of the Armed Forces. A number of U.S. environmental laws include
specific provisions for federal facilities and properties that may
result in different environmental requirements for federal and non-
federal entities. Similarly, many international treaties do not apply
to vessels of the Armed Forces either because vessels of the Armed
Forces are entitled to sovereign immunity under international law or
because any particular treaty may apply different approaches to the
adoption of appropriate environmental control measures consistent with
the objects and purposes of such treaties. The EPA and DoD incorporated
any relevant information in the development of the discharge standards
after reviewing the requirements of the following treaties and domestic
implementing legislation, as well as other relevant and potentially
applicable U.S. environmental laws: International Convention for the
Prevention of Pollution from Ships (also referred to as MARPOL);
International Convention on the Control of Harmful Anti-Fouling Systems
on Ships; Act to Prevent Pollution from Ships; CWA section 311, as
amended by the Oil Pollution Control Act of 1990; CWA section 402 and
the National Pollutant Discharge Elimination System Vessel General
Permit and small Vessel General Permit; Federal Insecticide, Fungicide,
and Rodenticide Act (FIFRA); Hazardous Materials Transportation Act;
Title X of the Coast Guard Authorization Act of 2010; National Marine
Sanctuaries Act; Antiquities Act of 1906; Resource Conservation and
Recovery Act; Toxic

Substances Control Act; and the St. Lawrence Seaway Regulations.

E. Definitions

    The EPA and DoD added UNDS definitions to 40 CFR part 1700.
Specifically, this rule defines the terms: Bioaccumulative;
biodegradable; environmentally acceptable lubricants; federally-
protected waters; hazardous material; minimally-toxic; not
bioaccumulative; person in charge; toxic materials; and waters subject
to UNDS.

III. UNDS Performance Standards

    This section describes the performance standards determined to be
reasonable and practicable to mitigate the adverse impacts to the
marine environment for the 11 discharges. In developing these
standards, the EPA and DoD considered the information from Phase I of
UNDS, the NPDES VGPs effluent limitations, and the seven statutory
factors listed in CWA section 312(n)(2)(B). For more information on
each discharge included in this rule, please see the Phase I Uniform
National Discharge Standards for Vessels of the Armed Forces: Technical
Development Document; EPA 821-R-99-001.
    The 11 discharge performance standards described in each section
below apply to vessels of the Armed Forces operating within waters
subject to UNDS, except as otherwise expressly excluded in the
``exceptions'' in 40 CFR 1700.39. In addition, if two or more regulated
discharge streams are combined prior to discharge, then the resulting
discharge would need to meet the discharge performance standards
applicable to each of the discharges that are being combined (40 CFR
1700.40). Furthermore, recordkeeping (40 CFR 1700.41) and non-
compliance reporting (40 CFR 1700.42) apply generally to each discharge
performance standard unless expressly provided in a particular
discharge performance standard.

A. Aqueous Film-Forming Foam

    The EPA and DoD prohibit the discharge of AFFF (i.e., AFFF used
during training, testing, or maintenance operations) for vessels that
sail seaward of waters subject to UNDS at least once per month. For
vessels that do not sail seaward of waters subject to UNDS at least
once per month, discharges of fluorinated AFFF are prohibited and
discharges of non-fluorinated or alternative foaming agent are
prohibited in port or in or near federally-protected waters, and must
occur as far from shore as possible.

B. Chain Locker Effluent

    The EPA and DoD require that all anchor chains from surface vessels
(submarines are not subject to this requirement) must be carefully and
thoroughly washed down (i.e., more than a cursory rinse) as they are
being hauled out of the water to remove sediment and organisms. The EPA
and DoD also require that all chain lockers must be cleaned
periodically to eliminate accumulated sediments and any potential
accompanying pollutants. The dates of all chain locker inspections must
be recorded in the ship's log or other vessel recordkeeping
documentation.
    In addition, the EPA and DoD prohibit the rinsing or pumping out of
chain lockers for vessels that sail seaward of waters subject to UNDS
at least once per month. For vessels that do not sail seaward of waters
subject to UNDS at least once per month, the rinsing or pumping out of
chain lockers must occur as far from shore as possible and, if
technically feasible, must not occur in federally-protected waters.

C. Distillation and Reverse Osmosis Brine

    The EPA and DoD prohibit the discharge of the distillation and
reverse osmosis brine and the discharge of reverse osmosis reject water
if it comes in contact with machinery or industrial equipment (other
than distillation or reverse osmosis machinery), toxic or hazardous
materials, or wastes.

D. Elevator Pit Effluent

    The EPA and DoD prohibit the direct discharge of elevator pit
effluent. Notwithstanding the prohibition of direct discharges of
elevator pit effluent, elevator pit effluent can be discharged when
commingled with another discharge for the purposes of treatment prior
to discharge; under no circumstances may oils, including oily mixtures,
be discharged from that combined discharge in quantities that cause a
film or sheen upon or discoloration of the surface of the water or
adjoining shorelines, or cause a sludge or emulsion to be deposited
beneath the surface of the water or upon adjoining shorelines, or
contain an oil content above 15 ppm as measured by EPA Method 1664a or
other appropriate method for determination of oil content as accepted
by the International Maritime Organization (IMO) (e.g., International
Organization for Standardization (ISO) Method 9377) or U.S. Coast
Guard, or are otherwise harmful to the public health or welfare of the
United States.

E. Gas Turbine Water Wash

    The EPA and DoD prohibit the direct discharge of gas turbine water
wash. To the greatest extent practicable, gas turbine water wash must
be collected separately and disposed of onshore in accordance with any
applicable solid waste and hazardous substance management and disposal
requirements. Notwithstanding the prohibition of direct discharges of
gas turbine water wash overboard, if gas turbine water wash is
commingled with any other discharge for the purposes of treatment prior
to discharge, then under no circumstances may oils, including oily
mixtures, be discharged from that combined discharge in quantities that
cause a film or sheen upon or discoloration of the surface of the water
or adjoining shorelines, or cause a sludge or emulsion to be deposited
beneath the surface of the water or upon adjoining shorelines, or
contain an oil content above 15 ppm as measured by EPA Method 1664a or
other appropriate method for determination of oil content as accepted
by the International Maritime Organization (IMO) (e.g., ISO Method
9377) or U.S. Coast Guard, or are otherwise harmful to the public
health or welfare of the United States.

F. Non-Oily Machinery Wastewater

    The EPA and DoD require that discharges of non-oily machinery
wastewater must not contain any additives that are toxic or
bioaccumulative in nature. In addition, under no circumstances may
oils, including oily mixtures be discharged in quantities that cause a
film or sheen upon or discoloration of the surface of the water or
adjoining shorelines, or cause a sludge or emulsion to be deposited
beneath the surface of the water or upon adjoining shorelines, or
contain an oil content above 15 ppm as measured by EPA Method 1664a or
other appropriate method for determination of oil content as accepted
by the International Maritime Organization (IMO) (e.g., ISO Method
9377) or U.S. Coast Guard, or otherwise are harmful to the public
health or welfare of the United States.

G. Photographic Laboratory Drains

    The EPA and DoD prohibit the discharge of photographic laboratory
drain effluent.

H. Seawater Cooling Overboard Discharge

    The EPA and DoD require that non-contact engine cooling water,
hydraulic system cooling water, refrigeration cooling water, and other
seawater cooling overboard discharges be

minimized, to the greatest extent practicable, when the vessel is in
port. In addition, the standard provides for the reduction in
production and discharge of seawater cooling overboard by urging the
use of shore power in port if: (1) Shore power is readily available;
(2) shore-based power supply systems are capable of providing the
needed electricity; and (3) the vessel is equipped to connect to shore-
based power. Specifically, the EPA and DoD require that, for vessels
that are less than 79 feet in length, fouling organisms must be removed
from seawater piping on a regular basis and the discharge of such
removed organisms is prohibited. For vessels that are greater than or
equal to 79 feet in length, maintenance of all piping and seawater
cooling systems must meet the requirements of 40 CFR 1700.32 (Seawater
Piping Biofouling Prevention) and fouling organisms removed from
seawater piping must not be discharged. Submarines have suction
clearing procedures, which must be performed for vessel safety
purposes; therefore, submarines are not required to meet these
operational removal requirements.

I. Seawater Piping Biofouling Prevention

    The EPA and DoD require a performance standard for seawater piping
biofouling prevention that minimizes, to the greatest extent
practicable, the amount of biofouling chemicals (e.g., chlorine) used
to keep fouling under control. Fouling organisms must be removed from
seawater piping on a regular basis. Fouling organisms removed during a
cleaning event are prohibited from being discharged. For all vessels,
except submarines, the discharge of fouling organisms removed during
cleanings is prohibited.
    Lastly, this performance standard requires practices consistent
with the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) (7
U.S.C. 136 et seq.) registration requirements for chemicals used to
control biofouling of seawater piping, and prohibits the discharge of
pesticides or chemicals banned for use in the United States.

J. Small Boat Engine Wet Exhaust

    The EPA and DoD require that low sulfur or alternative fuels be
used to the greatest extent practicable. In addition, the performance
standard requires that, to the greatest extent practicable, four-stroke
engines be used instead of two-stroke engines. Vessels using two-stroke
engines are required to use environmentally acceptable lubricants
(found in the definitions for this term at 40 CFR 1700.3) unless such
use would be technologically infeasible. If technologically infeasible,
the use and justification for the use of a non-environmentally
acceptable lubricant must be recorded in the vessel recordkeeping
documentation.

K. Welldeck Discharges

    The EPA and DoD prohibit welldeck discharges containing graywater
from smaller vessels. In addition, discharges containing washdown of
gas turbine engines within nautical miles of the United States is
prohibited and, to the greatest extent practicable, must be discharged
seaward of waters subject to UNDS. Welldeck discharges from equipment
and vehicle washdowns need to be free from garbage, and must not
contain oil in quantities that cause a film or sheen upon or
discoloration of the surface of the water or adjoining shorelines, or
cause a sludge or emulsion to be deposited beneath the surface of the
water or upon adjoining shorelines, or contain an oil content above 15
ppm as measured by EPA Method 1664a or other appropriate method for
determination of oil content as accepted by the International Maritime
Organization (IMO) (e.g., ISO Method 9377) or U.S. Coast Guard, or
otherwise are harmful to the public health or welfare of the United
States.

IV. Additional Information in the Final Rule

    This section provides an overview of the additional amendments for
40 CFR part 1700. These changes include an amendment to subsections
referenced Effect (section 1700.2), a provision that authorizes certain
discharges notwithstanding the performance standards in situations
where vessel safety or lives are endangered (section 1700.39), a
provision that requires combined discharge streams to meet the
requirements applicable to all discharge streams that are combined
(section 1700.40), a requirement for recordkeeping (section 1700.41),
and a requirement to report instances of non-compliance with MPCD
performance standards (section 1700.42).

1. Amendment to Subsections Referenced in Section 1700.2 Effect

    The EPA and DoD amend the reference sections noted in the Effect
Section 1700.2 (a) by amending ``Federal standards of performance for
each required Marine Pollution Control Device are listed in section
1700.14'' to ``Federal standards of performance for each required
Marine Pollution Control Device are listed in sections 1700.14 through
1700.38. Federal standards of performance apply to all vessels, whether
existing or new, and regardless of vessel class, type, or size, unless
otherwise expressly provided in sections 1700.14 through 1700.38.''

2. Reservation of Sections

    As noted previously, the EPA and DoD are proposing the Phase II
standards in three batches. For the purpose of proposing the remaining
batches, this rule reserves the following sections for those future
rulemaking actions:

Section 1700.17 Clean Ballast;
Section 1700.18 Compensated Fuel Ballast;
Section 1700.21 Dirty Ballast;

3. Section 1700.39 Exceptions

    The EPA and DoD add an ``Exceptions'' subsection at section
1700.39, which provides a place to identify certain excluded discharges
from the scope of UNDS, notwithstanding the performance standards, in
situations where vessel safety or lives are endangered. The section
also identifies requirements for maintaining records of all discharge
exceptions.
    4. Section 1700.40 Commingling of Discharges
    The EPA and DoD add a ``Commingling of Discharges'' subsection at
section 1700.40. By adding this subsection, the EPA and DoD stipulate
that if two or more regulated discharge streams are combined into one,
the resulting discharge stream must meet the requirements applicable to
all discharge streams that are combined prior to discharge unless
otherwise specified by the specific discharge standard.

5. Section 1700.41 Records

    The EPA and DoD add a ``Records'' subsection at section 1700.41. By
adding this subsection, the EPA and DoD include recordkeeping
requirements that shall document all inspections, instances of non-
compliance, and instances of an exception.

6. Section 1700.42 Non-Compliance Reports

    The EPA and DoD add a ``Non-Compliance Reports'' subsection at
section 1700.42. By adding this subsection, the EPA and DoD include
reporting requirements for any non-compliance with performance
standards prescribed for this Part.

V. Key Changes and Improvements Since the Proposed Rule

A. Public Comment

    On February 3, 2014, the EPA and DoD published proposed discharge

performance standards for the 11 discharges in Batch One. The proposed
rule established a public comment period of 60 days that closed on
April 4, 2014. The public had the option of submitting comments by
email, mail, hand delivery, or electronically via the Federal
eRulemaking Portal (www.regulations.gov). The public comments are
available for public viewing in the docket under Docket No. EPA-HQ-OW-
2013-0469.
    The EPA and DoD consider the public comment period vital to
creating a rule that is effective at meeting regulatory standards and
also is readily understandable and useful to the public. The EPA and
DoD received one comment on the proposed rule regarding some of the
terms and definitions used in the UNDS Phase II Batch One Proposed
Rule. The comment noted that the definitions used in the UNDS proposed
rule were slightly different than the definitions used in the NPDES VGP
and could potentially cause confusion in production and sales of
certain goods, such as lubricants, that are widely used on both
commercial vessels and vessels of the Armed Forces. The EPA and DoD
agreed with the comment and incorporated changes to the following
definitions in Section 1700.3 of this final rule:
     Aquatic Toxicity: The EPA and DoD define and use the term
``minimally-toxic,'' found in the final 2013 VGP, rather than the
``non-toxic'' terminology used in the UNDS Phase II Batch One proposed
rule.
     Bioaccumulation: The proposed UNDS rule defines
``bioaccumulative'' as determined by test methods; this is not
consistent with the ``not bioaccumulative'' definition used in the 2013
VGP for lubricants. The 2013 VGP does not require bioaccumulation
testing of biodegradable portions of lubricants as, by definition, they
will not persist and accumulate in the environment. This final rule
revises the term ``bioaccumulative'' to be consistent with the final
2013 VGP.
     Biodegradability: In the proposed rule, the EPA and DoD
proposed testing the biodegradability of mixtures. However, to increase
consistency with the terms and definitions found in the final 2013 VGP,
the EPA and DoD use the definition of biodegradability established in
the final 2013 VGP in place of the definition presented in the UNDS
Phase II Batch One proposed rule. The VGP does not require testing the
biodegradability of mixtures.

B. Endangered Species Act (ESA) Consultation

    Pursuant to Section 7(a)(2) of the Endangered Species Act (ESA) the
EPA and DoD consulted the U.S. Fish and Wildlife Service (FWS) and the
National Marine Fisheries Service (NMFS), collectively ``the
Services.'' The Biological Evaluation developed by the EPA and DoD
concluded that the issuance of the Batch One final rule for the Uniform
National Discharge Standards for Vessels of the Armed Forces--Phase II
is not likely to adversely affect listed or proposed species or
adversely modify designated or proposed critical habitat.

C. Coastal Zone Management Act (CZMA) Consistency Determination

    Pursuant to Section 307 of the CZMA, the EPA and DoD have
determined that the performance standards are consistent to the maximum
extent practicable with the enforceable policies of federally-approved
coastal state and territory Coastal Management Plans (CMPs) for the
coastal zones including state waters where discharges from vessels of
the Armed Forces would be regulated by UNDS. Following proposal of the
Uniform National Discharge Standards for Vessels of the Armed Forces--
Phase II issued on February 3, 2014, the EPA and DoD provided 34 states
and territories with the EPA and DoD's August 2016 ``National
Consistency Determination: Uniform National Discharge Standards (UNDS)
Program for Phase II Batch One Discharges.''

D. Development of Performance Standards in Batches

    The EPA and DoD are modifying the batch process. In the proposed
rule, the EPA and DoD indicated that Phase II--the establishment of
discharge performance standards--would be completed in two batches. The
EPA and DoD have since determined to develop the discharge performance
standards in three batches to allow for more time to collect and
incorporate additional information into the development of the
discharge performance standards.

E. Revisions to Definitions and Standards

    The EPA and DoD are modifying the definitions and standards to make
them more clear and concise, in addition to changes made due to the
public and federal comments. The non-substantive changes made to the
definitions and standards are intended to clarify, simplify, and/or
improve understanding and readability of the discharge performance
standards. There are no technical changes to the definitions or
standards.

VI. Related Acts of Congress and Executive Orders

    Additional information about these statutes and Executive Orders
can be found at https://www.epa.gov/laws-regulations/laws-and-executive-orders.

A. Executive Order 12866: Regulatory Planning and Review and Executive
Order 13563: Improving Regulation and Regulatory Review

    This action is not a significant regulatory action and was
therefore not submitted to the Office of Management and Budget (OMB)
for review.

B. Paperwork Reduction Act

    This action does not impose any new information collection burden,
as the EPA and DoD have determined that Phase II of UNDS does not
create any additional collection of information beyond that already
mandated under the Phase I of UNDS. The Office of Management and Budget
(OMB) has previously approved the information collection requirements
contained in the existing regulations (40 CFR part 1700) under the
provisions of the Paperwork Reduction Act, 44 U.S.C. 3501 et seq. and
has assigned OMB control number 2040-0187. The OMB control numbers for
the EPA's regulations in 40 CFR are listed in 40 CFR part 9.

C. Regulatory Flexibility Act (RFA)

    We certify that this action will not have a significant economic
impact on a substantial number of small entities under the RFA. This
action will not impose any requirements on small entities.

D. Unfunded Mandates Reform Act (UMRA)

    This action does not contain any unfunded mandate as described in
UMRA, 2 U.S.C. 1531-1538, and does not significantly or uniquely affect
small governments. The action implements mandates specifically and
explicitly set forth in CWA section 312 without the exercise of any
policy discretion by the EPA.

E. Executive Order 13132: Federalism

    The EPA and DoD concluded that the rule, once finalized in Phase
III, will have federalism implications. Once the discharge performance
standards are promulgated in Phase III by DoD, adoption and enforcement
of new or existing state or local regulations for the discharges will
be preempted.
    Accordingly, the EPA and DoD provide the following federalism

summary impact statement. During Phase I of UNDS, the EPA and DoD
conducted two rounds of consultation meetings (i.e., outreach
briefings) to allow states and local officials to have meaningful and
timely input into the development of the rulemaking. Twenty-two states
accepted the offer to be briefed on UNDS and discuss state concerns.
The EPA and DoD provided clarification on the technical aspects of the
UNDS process, including preliminary discharge determinations and
analytical information supporting decisions to control or not control
discharges. State representatives were provided with discharge
summaries containing the description, analysis, and preliminary
determination of each of the 39 discharges from vessels of the Armed
Forces--25 of which were determined to require control.
    During Phase II, the EPA and DoD consulted again with state
representatives early in the process of developing the regulation to
allow them to have meaningful and timely input into the development of
the discharge standards. On March 14, 2013, the EPA held a Federalism
consultation briefing in Washington, DC, which was attended by
representatives from the National Governors Association, the National
Conference of State Legislatures, the National League of Cities, the
National Association of Counties, the United States Conference of
Mayors, the County Executives of America, the Environmental Council of
States, the Association of Clean Water Administrators, two U.S. states
and one U.S. territory, in order to obtain meaningful and timely input
in the development of the proposed discharge standards. The EPA and DoD
informed the state representatives that the two agencies planned to use
the NPDES VGPs effluent limitations as a baseline for developing the
discharge performance standards for the 25 discharges identified in
Phase I as requiring control.
    Pursuant to the terms of Executive Order 13132, as well as EPA
policy for implementing it, a federalism summary impact statement is
required to summarize not only the issues and concerns raised by state
and local government commenters during the course of the rule's
development, but also to describe how and the extent to which the
agencies addressed those concerns. No formal, substantive comments were
received from state and local government entities during the course of
developing this action.
    As required by section 8(a) of Executive Order 13132, the EPA
included a certification from its Federalism Official stating that the
EPA had met the Executive Order's requirements in a meaningful and
timely manner. A copy of this certification is included in the public
version of the official record for this final action.

F. Executive Order 13175: Consultation and Coordination With Indian
Tribal Governments

    This action does not have tribal implication as specified in
Executive Order 13175. The UNDS rulemaking will not impact vessels
operated by tribes because the rule only regulates discharges from
vessels of the Armed Forces. However, tribes may be interested in this
action because vessels of the Armed Forces, including U.S. Coast Guard
vessels, may operate in or near tribal waters. The EPA hosted a
National Teleconference on March 23, 2013, in order to obtain
meaningful and timely input during the development of the discharge
standards. The EPA and DoD informed the representatives that the two
agencies planned to use the NPDES VGPs effluent limitations as a
baseline for developing the discharge performance standards for the 25
discharges identified in Phase I as requiring control. During the
Tribal consultation period, the EPA and DoD did not receive any
substantive comments from the Indian Tribal Governments.

G. Coastal Zone Management Act

    The Coastal Zone Management Act (CZMA) and its implementing
regulations (15 CFR part 930) require that any Federal agency activity
or Federally licensed or permitted activity occurring within (or
outside but affecting) the coastal zone of a state with an approved
Coastal Management Plan (CMP) be consistent with the enforceable
policies of that approved program to the maximum extent practicable.
According to the August 2016 ``National Consistency Determination:
Uniform National Discharge Standards (UNDS) Program for Phase II Batch
One Discharges,'' the EPA and DoD have determined that the performance
standards are consistent to the maximum extent practicable with the
enforceable policies of the 34 federally-approved state and territory
CMPs.

H. Executive Order 13045: Protection of Children From Environmental
Health and Safety Risks

    This action is not subject to Executive Order 13045 because it is
not economically significant as defined in Executive Order 12866, and
because the EPA and DoD do not believe the environmental health or
safety risks addressed by this action present a disproportionate risk
to children. The 11 discharge standards are designed to control
discharges incidental to the normal operation of a vessel of the Armed
Forces that could adversely affect human health and the environment.
The standards reduce the impacts to the receiving waters and any person
using the receiving waters, regardless of age.

I. Executive Order 13211: Actions That Concern Regulations That
Significantly Affect Energy Supply, Distribution, and Use

    This action is not subject to Executive Order 13211, because is not
a significant regulatory action under Executive Order 12866.

J. National Technology Transfer and Advancement Act

    This action involves technical standards. The EPA and DoD propose
to use ISO Method 9377--determination of hydrocarbon oil index. ISO
Method 9377 is a voluntary consensus standard developed by an
independent, non-governmental international organization.

K. Endangered Species Act

    Section 7(a)(2) of the Endangered Species Act (ESA) requires each
Federal agency, in consultation with and with the assistance of the
U.S. Fish and Wildlife Service (FWS) and the National Marine Fisheries
Service (NMFS), collectively ``the Services,'' to ensure that the
actions they authorize, fund, or carry out are not likely to adversely
affect the continued existence of any endangered or threatened species
(referred to as ``listed species'') or result in the destruction or
adverse modification of their designated critical habitats.
    The Services have published regulations implementing ESA section 7
at 50 CFR part 402. The regulations provide that a federal agency (such
as the EPA and DoD) must consult with FWS, NMFS, or both if the agency
determines that an activity authorized, funded, or carried out by the
agency may affect listed species or critical habitat. The kinds of
effects that trigger the consultation obligation could include, among
other things, beneficial, detrimental, direct and indirect effects. The
EPA and DoD commenced discussion with the Services in November 2014.
The consultation process included multiple steps: Briefings with the
Services on the contents of the rulemaking, discussions

of the EPA and DoD's proposed outline and methodological approach,
information exchanges and requests on current species lists, rulemaking
schedule, and ultimately the submittal of a consultation package on
October 11, 2016.

L. Executive Order 13112: Invasive Species

    Executive Order 13112, entitled ``Invasive Species'' (64 FR 6183,
February 8, 1999), requires each federal agency, whose actions may
affect the status of invasive species, to identify such actions, and,
subject to the availability of appropriations, use relevant programs
and authorities to, among other things, prevent, detect, control, and
monitor the introduction of invasive species. As defined by this
Executive Order, ``invasive species'' means an alien species whose
introduction causes, or is likely to cause, economic or environmental
harm or harm to human health.
    As part of the environmental effects analyses, the EPA and DoD
considered the control of invasive species when developing the
discharge performance standards for all 11 discharges (See Section II).

M. Executive Order 13089: Coral Reef Protection

    Executive Order 13089, entitled ``Coral Reef Protection'' (63 FR
32701, June 16, 1998), requires all federal agencies to identify
actions that may affect U.S. coral reef ecosystems; utilize their
programs and authorities to protect the conditions of such ecosystems;
and to the extent permitted by law, ensure that any actions they
authorize, fund, or carry out will not degrade the conditions of such
ecosystems. These discharge standards are designed to control or
eliminate the discharges incidental to the normal operation of vessels
of the Armed Forces, ultimately minimizing the potential for causing
adverse impacts to the marine environment including coral reefs.

N. Executive Order 12898: Federal Actions To Address Environmental
Justice in Minority Populations and Low-Income Populations

    The EPA and DoD believe that this action does not have
disproportionately high and adverse human health or environmental
effects on minority populations, low-income populations and/or
indigenous peoples, as specified in Executive Order 12898 (59 FR 7629,
February 16, 1994). The discharge performance standards only apply to
vessels of the Armed Forces and ultimately increase environmental
protection.

O. Congressional Review Act (CRA)

    This action is subject to the CRA, and the EPA will submit a rule
report to each House of the Congress and to the Comptroller General of
the United States. This action is not a ``major rule'' as defined by 5
U.S.C. 804(2).

List of Subjects in 40 CFR Part 1700

    Environmental protection, Armed Forces, Vessels, Coastal zone,
Reporting and recordkeeping requirements, Water pollution control.

    Dated: December 8, 2016.
Gina McCarthy,
Administrator, Environmental Protection Agency.
    Dated: December 22, 2016.
Steven R. Iselin,
Acting Assistant Secretary of the Navy, Energy, Installations, and
Environment.

0
For the reasons stated in the preamble, title 40, chapter VII, of the
Code of Federal Regulations is amended as follows:

PART 1700--UNIFORM NATIONAL DISCHARGE STANDARDS FOR VESSELS OF THE
ARMED FORCES

0
1. The authority citation for 40 CFR part 1700 continues to read as
follows:

    Authority:  33 U.S.C. 1322, 1361.

Subpart A--Scope

0
2. Amend Sec.  1700.2 by revising paragraph (a) to read as follows:

Sec.  1700.2  Effect.

    (a) This part identifies those discharges, other than sewage,
incidental to the normal operation of vessels of the Armed Forces that
require control within the navigable waters of the United States,
including the territorial seas and the waters of the contiguous zone,
and those discharges that do not require control. Discharges requiring
control are identified in Sec.  1700.4. Discharges not requiring
control are identified in Sec.  1700.5. Federal standards of
performance for each required Marine Pollution Control Device are
listed in Sec. Sec.  1700.14 through 1700.38. Federal standards of
performance apply to all vessels, whether existing or new, and
regardless of vessel class, type, or size, unless otherwise expressly
provided in Sec. Sec.  1700.14 through 1700.38.
* * * * *

0
3. Amend Sec.  1700.3 by adding in alphabetical order definitions for
``Bioaccumulative'', ``Biodegradable'', ``Environmentally acceptable
lubricants'', ``Federally-protected waters'', ``Hazardous material'',
``Minimally-toxic'', ``Not bioaccumulative'', ``Person in charge'',
``Toxic materials'', and ``Waters subject to UNDS'', to read as
follows:

Sec.  1700.3  Definitions.

* * * * *
    Bioaccumulative means the opposite of not bioaccumulative.
    Biodegradable means the following for purposes of the standards:
    (1) Regarding environmentally acceptable lubricants and greases,
biodegradable means lubricant formulations that contain at least 90%
(weight in weight concentration or w/w) or grease formulations that
contain at least 75% (w/w) of a constituent substance or constituent
substances (only stated substances present above 0.10% must be
assessed) that each demonstrate either the removal of at least 70% of
dissolved organic carbon, production of at least 60% of the theoretical
carbon dioxide, or consumption of at least 60% of the theoretical
oxygen demand within 28 days. Test methods include: Organization for
Economic Co-operation and Development Test Guidelines 301 A-F, 306, and
310, ASTM 5864, ASTM D-7373, OCSPP Harmonized Guideline 835.3110, and
International Organization for Standardization 14593:1999. For
lubricant formulations, the 10% (w/w) of the formulation that need not
meet the above biodegradability requirements, up to 5% (w/w) may be
non-biodegradable, but not bioaccumulative, while the remaining 5-10%
must be inherently biodegradable. For grease formulations, the 25% (w/
w) of the formulation that need not meet the above biodegradability
requirement, the constituent substances may be either inherently
biodegradable or non-biodegradable, but may not be bioaccumulative.
Test methods to demonstrate inherent biodegradability include: OECD
Test Guidelines 302C (>70% biodegradation after 28 days) or OECD Test
Guidelines 301 A-F (>20% but <60% biodegradation after 28 days).
    (2) Regarding cleaning products, biodegradable means products that
demonstrate either the removal of at least 70% of dissolved organic
carbon, production of at least 60% of the theoretical carbon dioxide,
or consumption of at least 60% of the theoretical oxygen demand within
28 days. Test methods include: Organization for Economic Cooperation
and Development Test Guidelines 301 A-F, 306, and 310, and
International

Organization for Standardization 14593:1999.
    (3) Regarding biocidal substances, biodegradable means a compound
or mixture that yields 60% of theoretical maximum carbon dioxide and
demonstrate a removal of at least 70% of dissolved organic carbon
within 28 days as described in EPA 712-C-98-075 (OPPTS 835.3100 Aerobic
Aquatic Biodegradation).
    Environmentally acceptable lubricants means lubricants that are
biodegradable, minimally-toxic, and not bioaccumulative as defined in
this subpart. The following labeling programs and organizations meet
the definition of being environmentally acceptable lubricants: Blue
Angel, European Ecolabel, Nordic Swan, the Swedish Standards SS 155434
and 155470, Safer Choice, and the Convention for the Protection of the
Marine Environment of the North-East Atlantic (OSPAR) requirements.
* * * * *
    Federally-protected waters means waters within 12 miles of the
United States that are also part of any of the following:
    (1) Marine sanctuaries designated under the National Marine
Sanctuaries Act (16 U.S.C. 1431 et seq.) or Marine National Monuments
designated under the Antiquities Act of 1906;
    (2) A unit of the National Wildlife Refuge System, including
Wetland Management Districts, Waterfowl Production Areas, National Game
Preserves, Wildlife Management Areas, and National Fish and Wildlife
Refuges;
    (3) National Wilderness Areas; and
    (4) Any component designated under the National Wild and Scenic
Rivers System.
    Hazardous material means any hazardous material as defined in 49
CFR 171.8.
* * * * *
    Minimally-toxic means a substance must pass either OECD 201, 202,
and 203 for acute toxicity testing, or OECD 210 and 211 for chronic
toxicity testing. For purposes of the standards, equivalent toxicity
data for marine species, including methods ISO/DIS 10253 for algae, ISO
TC147/SC5/W62 for crustacean, and OSPAR 2005 for fish, may be
substituted for OECD 201, 202, and 203. If a substance is evaluated for
the formulation and main constituents, the LC50 of fluids must be at
least 100 mg/L and the LC50 of greases, two-stroke oils, and all other
total loss lubricants must be at least 1000 mg/L. If a substance is
evaluated for each constituent substance, rather than the complete
formulation and main compounds, then constituents comprising less than
20% of fluids can have an LC50 between 10-100 mg/L or a no-observed-
effect concentration (NOEC) between 1-10 mg/L, constituents comprising
less than 5% of fluids can have an LC50 between 1-10 mg/L or a NOEC
between 0.1-1 mg/L, and constituents comprising less than 1% of fluids,
can have an LC50 less than 1 mg/L or a NOEC between 0-0.1 mg/L.
* * * * *
    Not bioaccumulative means any of the following: The partition
coefficient in the marine environment is log Kow <3 or >7 using test
methods OECD 117 and 107; molecular mass >800 Daltons; molecular
diameter >1.5 nanometer; bioconcentration factor (BCF) or
bioaccumulation factor (BAF) is <100 L/kg, using OECD 305, OCSPP
850.1710 or OCSPP 850.1730, or a field-measured BAF; or polymer with
molecular weight (MW) fraction below 1,000 g/mol is <1%.
    Person in charge (PIC) means the single individual named master of
the vessel or placed in charge of the vessel, by the U.S. Department of
Defense or by the Department in which the U.S. Coast Guard is
operating, as appropriate, and who is responsible for the operation,
manning, victualing, and supplying of the vessel of the Armed Forces.
Examples of a PIC include, but are not limited to:
    (1) A Commanding Officer, Officer in Charge, or senior commissioned
officer on board the vessel;
    (2) A civilian, military, or U.S. Coast Guard person assigned to a
shore command or activity that has been designated as the PIC for one
or more vessels, such as a group of boats or craft;
    (3) A Tugmaster, Craftmaster, Coxswain, or other senior enlisted
person onboard the vessel;
    (4) A licensed civilian mariner onboard a Military Sealift Command
vessel; or
    (5) A contracted commercial person at a shore installation that is
not part of the Armed Forces but as identified by the U.S. Department
of Defense or the Department in which the U.S. Coast Guard is
operating.
* * * * *
    Toxic materials means any toxic pollutant identified in 40 CFR
401.15.
* * * * *
    Waters subject to UNDS means the navigable waters of the United
States, including the territorial seas and the waters of the contiguous
zone, as these terms are defined in the Clean Water Act (33 U.S.C.
1362).

0
4. Revise subpart D to read as follows:
Subpart D--Marine Pollution Control Device (MPCD) Performance Standards
Sec.
1700.14 Aqueous film-forming foam.
1700.15 [Reserved]
1700.16 Chain locker effluent.
1700.17-1700.21 [Reserved]
1700.22 Distillation and reverse osmosis brine.
1700.23 Elevator pit effluent.
1700.24 [Reserved]
1700.25 Gas turbine water wash.
1700.26-1700.28 [Reserved]
1700.29 Non-oily machinery wastewater.
1700.30 Photographic laboratory drains.
1700.31 Seawater cooling overboard discharge.
1700.32 Seawater piping biofouling prevention.
1700.33 Small boat engine wet exhaust.
1700.34-1700.37 [Reserved]
1700.38 Welldeck discharges.
1700.39 Exceptions.
1700.40 Commingling of discharges.
1700.41 Records.
1700.42 Non-compliance reports.

Subpart D--Marine Pollution Control Device (MPCD) Performance
Standards

Sec.  1700.14  Aqueous film-forming foam.

    (a) For the purposes of this section, regulated aqueous film-
forming foam (AFFF) refers only to firefighting foam and seawater
mixture discharged during training, testing, or maintenance operations.
    (b) For all vessels that sail seaward of waters subject to UNDS at
least once per month, the discharge of AFFF is prohibited.
    (c) For all vessels that do not sail seaward of waters subject to
UNDS at least once per month:
    (1) The discharge of fluorinated AFFF is prohibited; and
    (2) The discharges of non-fluorinated or alternative foaming agent
are prohibited in port or in or near federally-protected waters, and
must occur as far from shore as possible.

Sec.  1700.15  [Reserved]

Sec.  1700.16  Chain locker effluent.

    (a) For all vessels, except submarines, the anchor chain must be
carefully and thoroughly washed down (i.e., more than a cursory rinse)
as it is being hauled out of the water to remove sediment and
organisms.
    (b) For all vessels, the chain lockers must be cleaned periodically
to eliminate accumulated sediments and any potential accompanying
pollutants. The dates of all chain locker inspections must be recorded
in the ship's log or other vessel recordkeeping documentation.
    (c) For all vessels that sail seaward of waters subject to UNDS at
least once per month, the rinsing or pumping out of chain lockers is
prohibited.

    (d) For all vessels that do not sail seaward of waters subject to
UNDS at least once per month, the rinsing or pumping out of chain
lockers must occur as far from shore as possible and, if technically
feasible, the rinsing or pumping out of chain lockers must not occur in
federally-protected waters.

Sec. Sec.  1700.17-1700.21  [Reserved]

Sec.  1700.22  Distillation and reverse osmosis brine.

    The discharge of brine from the distillation system and the
discharge of reverse osmosis reject water are prohibited if they come
in contact with machinery or industrial equipment (other than
distillation or reverse osmosis machinery), toxic or hazardous
materials, or wastes.

Sec.  1700.23  Elevator pit effluent.

    (a) The direct discharge of elevator pit effluent is prohibited.
    (b) Notwithstanding the prohibition of direct discharges of
elevator pit effluent overboard, if the elevator pit effluent is
commingled with any other discharge for the purposes of treatment prior
to discharge, then under no circumstances may oils, including oily
mixtures, be discharged from that combined discharge in quantities
that:
    (1) Cause a film or sheen upon or discoloration of the surface of
the water or adjoining shorelines; or
    (2) Cause a sludge or emulsion to be deposited beneath the surface
of the water or upon adjoining shorelines; or
    (3) Contain an oil content above 15 ppm as measured by EPA Method
1664a or other appropriate method for determination of oil content as
accepted by the International Maritime Organization (IMO) (e.g., ISO
Method 9377) or U.S. Coast Guard; or
    (4) Otherwise are harmful to the public health or welfare of the
United States.

Sec.  1700.24  [Reserved]

Sec.  1700.25  Gas turbine water wash.

    (a) The direct discharge of gas turbine water wash is prohibited.
    (b) To the greatest extent practicable, gas turbine water wash must
be collected separately and disposed of onshore in accordance with any
applicable solid waste and hazardous substance management and disposal
requirements.
    (c) Notwithstanding the prohibition of direct discharges of gas
turbine water wash overboard, if the gas turbine water wash is
commingled with any other discharge for the purposes of treatment prior
to discharge then under no circumstances may oils, including oily
mixtures be discharged from that combined discharge in quantities that:
    (1) Cause a film or sheen upon or discoloration of the surface of
the water or adjoining shorelines; or
    (2) Cause a sludge or emulsion to be deposited beneath the surface
of the water or upon adjoining shorelines; or
    (3) Contain an oil content above 15 ppm as measured by EPA Method
1664a or other appropriate method for determination of oil content as
accepted by the International Maritime Organization (IMO) (e.g., ISO
Method 9377) or U.S. Coast Guard; or
    (4) Otherwise are harmful to the public health or welfare of the
United States.

Sec. Sec.  1700.26-1700.28  [Reserved]

Sec.  1700.29  Non-oily machinery wastewater.

    The discharge of non-oily machinery wastewater must not contain any
additives that are toxic or bioaccumulative in nature, and under no
circumstances may oils, including oily mixtures, be discharged in
quantities that:
    (a) Cause a film or sheen upon or discoloration of the surface of
the water or adjoining shorelines; or
    (b) Cause a sludge or emulsion to be deposited beneath the surface
of the water or upon adjoining shorelines; or
    (c) Contain an oil content above 15 ppm as measured by EPA Method
1664a or other appropriate method for determination of oil content as
accepted by the International Maritime Organization (IMO) (e.g., ISO
Method 9377) or U.S. Coast Guard; or
    (d) Otherwise are harmful to the public health or welfare of the
United States.

Sec.  1700.30  Photographic laboratory drains.

    The discharge of photographic laboratory drains is prohibited.

Sec.  1700.31  Seawater cooling overboard discharge.

    (a) For discharges from vessels that are less than 79 feet in
length:
    (1) To the greatest extent practicable, minimize non-contact engine
cooling water, hydraulic system cooling water, refrigeration cooling
water and other seawater cooling overboard discharges when the vessel
is in port.
    (2) To reduce the production and discharge of seawater cooling
overboard discharge, the vessel should use shore based power when in
port if:
    (i) Shore power is readily available for the vessel from utilities
or port authorities; and
    (ii) Shore based power supply systems are capable of providing all
needed electricity required for vessel operations; and
    (iii) The vessel is equipped to connect to shore-based power and
such systems are compatible with the available shore power.
    (3) Fouling organisms must be removed from seawater piping on a
regular basis. The discharge of fouling organisms removed during
cleanings is prohibited.
    (b) For discharges from vessels that are greater than or equal to
79 feet in length:
    (1) To the greatest extent practicable, minimize non-contact engine
cooling water, hydraulic system cooling water, refrigeration cooling
water and other seawater cooling overboard discharges when the vessel
is in port.
    (2) To reduce the production and discharge of seawater cooling
overboard discharge, the vessel should use shore based power when in
port if:
    (i) Shore power is readily available for the vessel from utilities
or port authorities; and
    (ii) Shore based power supply systems are capable of providing all
needed electricity required for vessel operations; and
    (iii) The vessel is equipped to connect to shore-based power and
such systems are compatible with the available shore power.
    (3) Maintenance of all piping and seawater cooling systems must
meet the requirements of Sec.  1700.32 (Seawater Piping Biofouling
Prevention). For all vessels, except submarines, fouling organisms
removed during maintenance must not be discharged.

Sec.  1700.32  Seawater piping biofouling prevention.

    (a) Seawater piping biofouling chemicals subject to registration
under the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA)
(7 U.S.C. 136 et seq.) must be used in accordance with the FIFRA label.
Pesticides or chemicals banned for use in the United States must not be
discharged.
    (b) To the greatest extent practicable, only the minimum amount of
biofouling chemicals must be used to keep fouling under control.
    (c) Fouling organisms must be removed from seawater piping on a
regular basis. For all vessels, except submarines, the discharge of
fouling organisms removed during cleanings is prohibited.

Sec.  1700.33  Small boat engine wet exhaust.

    (a) For the purposes of this section small boat engine wet exhaust
discharges refers only to discharges from vessels that are less than 79
feet in length.
    (b) Vessels generating small boat engine wet exhaust must be
maintained

in good operating order, well-tuned, and functioning according to
manufacturer specifications, in order to decrease pollutant
concentrations and volumes in small boat engine wet exhaust.
    (c) To the greatest extent practicable, low sulfur or alternative
fuels must be used to reduce the concentration of pollutants in
discharges from small boat engine wet exhaust.
    (d) To the greatest extent practicable, use four-stroke engines
instead of two-stroke engines for vessels generating small boat engine
wet exhaust.
    (e) Vessels using two-stroke engines must use environmentally
acceptable lubricants unless use of such lubricants is technologically
infeasible. If technologically infeasible, the use and justification
for the use of a non-environmentally acceptable lubricant must be
recorded in the vessel recordkeeping documentation.

Sec. Sec.  1700.34-1700.37  [Reserved]

Sec.  1700.38  Welldeck discharges.

    (a) Welldeck discharges that contain graywater from smaller vessels
are prohibited.
    (b) Welldeck discharges containing washdown from gas turbine
engines are prohibited within three miles of the United States and to
the greatest extent practicable must be discharged seaward of waters
subject to UNDS.
    (c) Welldeck discharges from equipment and vehicle washdowns must
not contain garbage and must not contain oil in quantities that:
    (1) Cause a film or sheen upon or discoloration of the surface of
the water or adjoining shorelines; or
    (2) Cause a sludge or emulsion to be deposited beneath the surface
of the water or upon adjoining shorelines; or
    (3) Contain an oil content above 15 ppm as measured by EPA Method
1664a or other appropriate method for determination of oil content as
accepted by the International Maritime Organization (IMO) (e.g., ISO
Method 9377) or U.S. Coast Guard; or
    (4) Otherwise are harmful to the public health or welfare of the
United States.

Sec.  1700.39  Exceptions.

    (a) Notwithstanding each of the MPCD performance standards
established in this Part, a vessel of the Armed Forces is authorized to
discharge, into waters subject to UNDS, when the PIC or their
designated representative determines that such discharge is necessary
to prevent loss of life, personal injury, vessel endangerment, or
severe damage to the vessel.
    (b) A vessel of the Armed Forces must maintain the following
records for all discharges under paragraph (a) of this section:
    (1) Name and title of the PIC who determined the necessity of the
discharge;
    (2) Date, location, and estimated volume of the discharge;
    (3) Explanation of the reason the discharge occurred; and
    (4) Actions taken to avoid, minimize, or otherwise mitigate the
discharge.
    (c) All records prepared under paragraph (b) of this section must
be maintained in accordance with Sec.  1700.41.

Sec.  1700.40  Commingling of discharges.

    If two or more regulated discharge streams are combined into one,
the resulting discharge stream must meet the requirements applicable to
all discharge streams that are combined prior to discharge.

Sec.  1700.41  Records.

    (a) All records must be generated and maintained in the ship's logs
(main, engineering, and/or damage control) or an UNDS Record Book and
must include the following information:
    (1) Vessel owner information (e.g., U.S. Navy, U.S. Coast Guard);
    (2) Vessel name and class; and
    (3) Name of the PIC.
    (b) The PIC must maintain complete records of the following
information:
    (1) Any inspection or recordkeeping requirement as specified in
Sec. Sec.  1700.14 through 1700.38;
    (2) Any instance of an exception and the associated recordkeeping
requirements as specified in Sec.  1700.39; and
    (3) Any instance of non-compliance with any of the performance
standards as specified in Sec. Sec.  1700.14 through 1700.38. The
information recorded must include the following:
    (i) Description of any non-compliance and its cause;
    (ii) Date of non-compliance;
    (iii) Period of non-compliance (time and duration);
    (iv) Location of the vessel during non-compliance;
    (v) Corrective action taken;
    (vi) Steps taken or planned to reduce, eliminate, and prevent non-
compliance in the future; and
    (vii) If the non-compliance has not been corrected, an estimate of
the time the non-compliance is expected to continue.
    (c) All records prepared under this section must be maintained for
a period of five years from the date they are created. The information
in this paragraph will be available to the EPA, states, or the U.S.
Coast Guard upon request. Any information made available upon request
must be appropriately classified, as applicable, and handled in
accordance with applicable legal requirements regarding national
security.

Sec.  1700.42  Non-compliance reports.

    The PIC must report any non-compliance, including the information
as required under Sec.  1700.41, to the Armed Service's designated
office in writing and/or electronically within five days of the time
the PIC becomes aware of the circumstances.

[FR Doc. 2017-00153 Filed 1-10-17; 8:45 am]
 BILLING CODE 6560-50-P