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					REEFING MADNESS:
 The Navy’s Toxic Ship Dumping Program




                       A Report by Greenpeace and
                             Basel Action Network

                                        May 2006
Executive Summary
On May 17, 2006, the aircraft carrier ex-USS Oriskany, will be towed 23 miles off the coast of
Pensacola, Florida, exploded and allowed to sink to become the largest artificial reef in US waters.

At the bottom of the Gulf of Mexico, the ex-Oriskany is expected to be a magnet for sport divers and
fish, but more significantly, it represents what the US government sees as a final solution to much of its
ship disposal nightmare.

The reefing of the ex-Oriskany was the result of a long effort by the US Navy as part of its campaign to
find disposal pathways for its stockpile of aging vessels - cheaply. The Navy is currently financially
responsible for the maintenance of at least 350 obsolete and decaying vessels, called the “ghost fleet”,
spending $45 to $60 million annually to simply keep the old vessels afloat.

One might wonder why it would be difficult to dispose of ships which each on average may contain
about $3,000,000.00 worth of steel that can be recycled. The answer is that these vessels are floating
caskets, full of toxic materials such as asbestos and polychlorinated biphenyls (PCBs) integral to its
construction materials that if dealt with responsibly on land, via pre-cleaning or decontamination, would
cost the government far more than the steel is worth.

               With the EPA’s edict…a frightening precedent for disposing
               of large warships and PCB waste…via artificial reefing, has
               been created….

The ex-Oriskany then is more than a rusting hulk. If it is allowed to be dumped into the sea, it will be
accompanied by over 790 tonnes of PCB-contaminated wastes, and between 500 to 600 tonnes of
asbestos (almost a third of the amount of asbestos produced in Libby, Montana in the 1940s). It would
normally be illegal to throw these toxic wastes into any US landfill other than a specially designed
hazardous waste landfill, but with the ex-Oriskany it will simply be thrown to the bottom of the sea.

In the past, the military and the Maritime Administration (MARAD) were able to send their old obsolete
ships to India to be scrapped in the breaking yards of Alang, Gujarat and actually make significant
revenue through the sales. That was before environmentalists, and Pulitzer Prize winning journalists
discovered the horrors involved in that type of scrapping operations. Thousands of India’s most
desperate laborers toil without protections, stripping asbestos, applying cutting torches to toxic paints,
often succumbing to fires, explosions and other ghoulish accidents, turning the yards to veritable killing
zones. Meanwhile, the beaches of Alang have become a toxic waste dump; toxins such as PCBs and
asbestos within the vessels are freely released into the environment during dismantling. Since that time,
all US exports to developing countries have ceased despite the government’s interest in exports to
China.

Years later, the “ghost fleet” remains a floating time bomb in various locations around the United States,
with most carrying not only toxic substances but large quantities of old fuel waiting to spill into
sensitive waterways from decay or hurricanes. The public is fiercely agitating for safely removing the
old vessels at once before it is too late.


                                                     i
So, with limited budgets, increasing political pressure to dispose of the vessels quickly, and with
dumping on developing countries seen as indefensible, the Navy and MARAD are looking for the next
cheapest disposal pathway – artificial reefing.

But before the Navy could send PCB and asbestos laden vessels to the depths of the ocean, two
obstacles were in the Navy’s way: the high cost of environmental remediation and a US law barring
disposal of PCBs in anything except especially approved PCB disposal sites, known as the Toxics
Substances Control Act (TSCA). To get around these obstacles, the Navy spent a couple of years and
millions of dollars of taxpayer money on scientific studies to show that the dumping of tonnes of PCBs
on board the ex-Oriskany would present no unreasonable risk of injury to human health or the
environment. The EPA resisted for several years, but early this year - in what could be a very
significant precedent, EPA approved the Navy’s proposal to sink the ex-Oriskany with tonnes of
contaminants onboard, exempting the Navy from TSCA’s requirement and saving the Navy millions of
dollars in remediation costs.

With the EPA’s edict firmly in place, a frightening precedent for disposing of large warships and PCB
waste generally, via artificial reefing, has been created. This can be exploited on a large scale, not only
by the US Navy, but also by US shipping companies who need to dispose of their large vessels, and
even by other Navies around the world. In a reversal of norms of international law and practice, our
oceans can once again be seen as a convenient repository for problematic, toxic, and persistent poisons.




Cover image and all images used in this report can be found at: http://ussoriskanyonline.com.



                                                                           ii
I. Artificial Reefing
        A. A History of Ship Disposal at Sea

Artificial reefing or the sinking of material offshore is not a new phenomenon. In the United
States, the earliest recorded instance of artificial reefing occurred in 1830, when log huts
were sunk off the coast of South Carolina to improve fishing.1

Any material that was free and would sink, or “materials of opportunity”, e.g. trees, rocks,
shells, boats, etc. were often used as artificial reefs. Prior to the 1970’s, vessels used as
artificial reefs along the US coast consisted mainly of small crafts, e.g. fishing boats and tug
boats, a majority of which were less than 75 feet long.2 In 1972, the Liberty Ship Act was
passed which allowed the US Maritime Administration (MARAD) to donate vessels it
owned to states for reefing, on an as-is basis and at no cost to the federal government,. This
ushered in the era of large vessel disposal for ships typically over 300 feet long.

From 1974 to 1999, it is reported that 666 steel hulled vessels were reefed.3 Of this total
number, however, only 6% or 44 were large vessels, all coming from MARAD. Two strong
forces worked to prevent the wide scale disposal of large vessels: cost of vessel remediation
(removal of toxins) prior to sinking and environmental concerns over the effects of toxic
materials in vessels on the marine environment.

US and global concern over negative impacts from toxics is a serious ongoing debate and
has increased over time, especially as scientists learn more about the long-term impacts of
killer chemicals such as persistent organic pollutants (POPs). Based on the growing
                                                USS Oriskany – The Mighty O!

  Spanning the size of almost 3 football fields, at 911 feet long, and weighing 27,100 tons, the USS Oriskany, or the
  “Mighty O”, as she was affectionately called by her crew, was one of the symbols of American military might in the
  1950s through the 1960s.
  In August 7, 1943, as part of the war effort, US Congress commissioned the building of the “Oriskany”. However, it
  wasn’t until the Korean War was in full progress that the “Mighty O” was finally completed.
  The USS Oriskany saw action in the Korean and Vietnam wars, and gained distinction with two battle stars for her
  Korean service and five for her Vietnamese service. At one time, she served as home base to Sen. John McCain in
  Vietnam.
  Like any other American icon, calls from Hollywood were not too far behind. During a brief respite from her military
  engagements after the Korean War, the “Mighty O” became the onboard set for the movies "The Bridges of Toko Ri"
  and “The Men of the Fighting Lady”.
  In September 30, 1975, following twenty-six years of service, the Oriskany was decommissioned. She was stricken
  from the Naval Vessel Register in July 1989 and sold for scrapping on September 9, 1995. Her scrapping never
  occurred as the contractor who won the bid defaulted and she had to be repossessed by the Navy when the contract
  for scrapping terminated in 1997. The “Mighty O” remained tucked away at the naval reserve fleet yard in Beaumont,
  Texas where she remained for the most part, until March 16, 2006, when she was towed to Pensacola, Florida in
  preparation for her sinking.
  On May 17, 2006, 31 years after decommissioning, The “Mighty O” will finally meet her ignominious end as she will
  be sunk to a depth of 212 ft., 23 miles off the coast of Pensacola, Florida as the first in the Navy’s nationwide
  program to dispose of toxic obsolete vessels as artificial reefs.


                                                           1
concern, a new global treaty aimed at eliminating use and releases of this type of chemical
was signed by the United States on April 19, 2001 (see section on Stockholm Convention).4
However, as yet the US has failed to officially ratify the treaty. The Stockholm Convention
makes it illegal to dispose of PCBs in any manner other than through sophisticated
destruction technologies. Ocean dumping and landfilling would be strictly forbidden under
the terms of this treaty.

Nevertheless, on May 17, 2006, the US Navy will sink, 23 miles off the coast of Pensacola,
Florida, the largest vessel ever to be used as an artificial reef in the United States - the
aircraft carrier USS Oriskany, containing over 790 tonnes of PCB-contaminated wastes, 300
tonnes of which are above the regulatory limit of 50 parts per million (ppm) (See TSCA
section below).


       B. Dumping Toxic Wastes in the Ocean

               1. The US Navy’s Cheapest Remaining Option

Together with the US Maritime Administration (MARAD), the US Navy oversees a
stockpile of inactive war vessels and merchant ships. As of 2005, studies estimate there are
358 vessels that need to be disposed of.5

The financial burden of this stockpile is significant and telling. The US Navy,6 based on
best case estimates, spends around $45 to $60 million a year to simply keep its obsolete
stockpile afloat.7 Other disposal options, such as domestic and overseas recycling have been
considered, but these options present obstacles for the Navy.

Despite the presence of about a half-dozen ship scrapping operations in the United States,
domestic recycling is regarded by the Navy as too costly due to the high labor and
environmental regulatory costs in the United States, primarily for managing the asbestos and
PCBs. Export for overseas shipbreaking in locations such as India, China or Bangladesh, on
the other hand, is forbidden by the Toxics Substances Control Act (TSCA). This export
option is cheaper due to extremely cheap labor, almost non-existent health and
environmental standards in developing
country facilities, and a high demand
for steel. But garnering a TSCA
exemption and a finding of no
unreasonable risk of injury to human
health or the environment are far more
difficult due to the immediate impacts
on human health at the Asian breaking
yards.

It is estimated that one worker in four
will succumb to cancer from the
                                            USS Oriskany, forecastle deck.
asbestos exposure alone in these yards.



                                              2
The deaths from accidents and explosions make the job one of the most dangerous in the
world. To date, due to media publicity and human impacts, export appears to garner much
more public opposition than reefing. Following the lawsuit by the Basel Action Network
and Sierra Club to block the export of 13 ghost fleet vessels to the United Kingdom in 2004,
which succeeded so far in holding 9 from being exported, the Navy and MARAD are
perhaps a bit leery of pressing for export to developing countries, where the protests and
lawsuits would proceed with more vigor and the issue would reverberate throughout the
world.8

The recent scandal of the French aircraft
                                                   The increasing demand for vessels
carrier “Le Clemenceau” is a case in point.
                                                   from states and local governments
The French military likewise sought to
                                                   … coupled with the limited funding
ignore its own laws and send the asbestos
                                                   and increasing costs of disposal
and PCB laden vessel to India. A coalition
                                                   makes artificial reefing a very
of activists around the world were able to
                                                   attractive option for the US Navy.
create a media furor while offering up
evidence that the export was illegal under French and international law. Finally, a French
court ruled that indeed the export violated the law and President Jacques Chirac was forced
to take back the ship, which was already in India.9

Now that export has become so difficult to accomplish, artificial reefing ranks as the
cheapest feasible disposal option available to the US Navy. In a study commissioned by the
Navy, it is estimated that the cost of reefing its obsolete stockpiles is $25 million dollars
annually for a 20-year program10, which represents half of the cost of long-term storage.
Table 1 below shows the cost breakdown for each option.
                                                                                11
                                                                      Table 1
                                               Estimated Discounted Cost of Options
                                                                                Estimated Cost (million of US$)
 Option                             Worst Case             Baseline             Best Case     Baseline Average Annual Budget for
                                                                                                       All Obsolete Vessels
 Long-Term storage                      1,750                 1,170                 960      50 for 100-year program

 Domestic Recycling                     2,590                 1,370                  510           94 for 20-year program

                                         560                   370
 Reefing                                                                             240           25 for 20-year program

 Overseas Recycling                      140                   140                    0            34 for 5-year program

    Figures are based on FY00 dollar values and a discount rate of 4.1 percent was used, per Office of Management and Budget, Circular A-94, at
http://www.whitehouse.gov/OMB/circulars/a094/a094.html.

The increasing demand for artificial reefs from states and local governments, to generate
tourism revenue especially from sport diving (400 artificial reef sites in the US are presently
available), coupled with the limited funding and increasing costs of disposal makes artificial
reefing a very attractive option for the US Navy. But whether this practice is the most
environmentally sustainable is highly unlikely.




                                                                          3
                     2. Toxics in Vessels            The US EPA considers PCBs as
                                                     probable cancer-causing agents.
While dumping or reefing ships may be the            Most scientists believe that there
cheapest way out for the government now              is no safe level of exposure to
that the world has awakened to the horrors           PCBs.
of the Asian shipbreaking yards, it is hardly
the most environmentally sound option. Indeed, as we shall see, due to the toxics on board
these vessels, such dumping not only is in violation of US law, but international law as well.

All ships currently in use and used in recent years generally contain some type of hazardous
material in their structure and operational equipment. This is particularly true for vessels
built before the mid-1970s when concerns over asbestos and PCBs became well known.
Also, warships are often more laden with hazardous materials, as both PCBs and asbestos
were used as flame retardants.12

In the past several years the cloak of uncertainty over the toxic content of vessels has been
slowly lifted. The fairly recent discovery in the 1980s by the Navy of solid matrix PCBs
found in a variety of construction materials, when placed in the context of the strict
prohibitions of TSCA, has brought the matter of PCBs on warships and other ships to a
serious legal and economic debate.

The following are some of the hazardous substances of concern that can be found in vessels,
their general use in vessels, and toxicity:

            Polychlorinated biphenyls (PCBs) – are man-made chemical compounds that are
        either in liquid or solid matrixes in vessels. They are part of a dangerous class of
        chemicals known as “persistent organic pollutants” or POPs. Of special concern is
        the propensity of POPs and PCBs to bio-accumulate in fatty tissues and thereby bio-
        magnify in the food chain, so that predators at the top of the food chain such as
        marine mammals or humans can receive massive dosing of the chemical.

             Usage: “Liquid PCBs” are commonly found in capacitors, and electronic
             equipment with capacitors and transformers inside. “Solid PCBs” are commonly
                                              found in electrical cable insulation; rubber and
                                              felt gaskets; thermal insulation material
                                              including fiberglass, felt, foam, and cork;
                                              electronic equipment, switchboards, and
                                              consoles; oil used in electrical equipment and
                                              motors. At first, some wishing to avoid TSCA
                                              tried to argue that solid matrix PCBs are not as
                                              likely to cause harm in the environment.
                                              However, this viewpoint is not correct; rather it
                                              is a case of rapid contamination with liquid
                                              PCBs, as opposed to slower contamination with
                                              PCBs in solid matrixes.13
  USS Oriskany, obsolete electronic equipment.




                                                 4
       Toxicity to Humans: Exposure pathway - eating PCB-contaminated fish.
       Children and pregnant women are sensitive populations impacted by PCBs.
       Some of the documented effects of PCBs in humans are adverse developmental
       effects, hormone disruption, reproductive defects, and lowered immune system
       function.14

       The US EPA considers PCBs as probable cancer-causing agents. Most scientists
       believe that there is no safe level of exposure to PCBs. This poison is now slated
       for global elimination (see Stockholm Convention section below).

       Toxicity to Wildlife: Some of the well documented effects of PCBs on marine
       species are: impaired reproductive function, decreased testosterone, impaired
       immune function, and mass mortality due to infections.15

Asbestos – a naturally occurring fibrous mineral. In the last 25 years asbestos has been
revealed to be a serious killer as it attacks and damages lung tissue. It is a very
significant contaminant in vessels due to its quantity.

       Usage: Thermal insulation in various applications; bulkhead shield/fireproofing;
       floor tiles and deck underlay; gaskets; adhesives and adhesive-like glues (e.g.,
       mastics) and fillers; sound damping handles, clutch facings).

       Toxicity to Humans and Wildlife: Chronic human exposure to asbestos may
       increase the risk of lung cancer, mesothelioma, and nonmalignant lung and
       pleural disorders. Although there is no strong evidence as yet that asbestos
       causes harm in the marine environment, there have also been very few studies to
       confirm this belief. Concerns do exist that if asbestos in reefed vessels becomes
       loose and washes up on shore, and then dries, and becomes airborne, it can
       become a hazard to people and other susceptible fauna.16

   Mercury – a naturally occurring
   substance; occurs in three basic forms:
   elemental, inorganic and organic
   compounds. In the environment,
   elemental mercury can be transformed
   into the most deadly form – methyl
   mercury.

       Usage: Ship system components
       e.g., some gyroscopes, compasses,
       vacuum measurement gauges; some
       light switches, older radar displays,
       lab and medical equipment.
       Toxicity to Humans: Depending on
       the type of mercury, exposure can        USS Oriskany, being prepared for sinking.
       lead to the impairment of the brain,


                                          5
                kidneys and liver, and causes developmental problems, reproductive disorders,
                disturbances in sensations, impairment of speech and vision, hearing and
                walking, mental disturbances, and death.17

                Toxicity to Wildlife: Extremely toxic methyl mercury concentrates in fish tissue,
                biomagnifying and becoming increasingly potent in predatory fish and fish-
                eating mammals, and sometimes reaching toxic levels over a million times
                greater than the levels in the surrounding waters.18

Other pollutants of concern found on vessels are fuel oils and gas residues, heavy metals,
e.g. cadmium, barium, chromium, and zinc that are usually found in paints, radioactive
materials, and invasive species (e.g. mollusks, jellyfish, toxic dinoflagillates).

                       3. Toxics in the ex-Oriskany and other US Navy/MARAD Vessels

The ex-Oriskany, even after remediation or preparation for sinking will still contain large
quantities of toxic substances, particularly PCBs and asbestos. Prior to remediation, it was
estimated that the vessel contained 889 tonnes of PCB-contaminated wastes,19 and between
500 to 600 tonnes of asbestos20 (almost a third of the amount of asbestos produced in Libby,
Montana in the 1940s). The amount of these wastes gain added significance when compared
to other US Navy and MARAD vessels; see Table 2 below for a comparison with 6 other
“ghost fleet” naval vessel.:
                                                               Table 2
                                                   Comparative Table of Vessels
                                                       with their Asbestos and
                                                Materials Containing non-liquid PCBs

   Name of US Vessel                Vessel Type             Year Launched/              Lightweight             Asbestos            Non-Liquid
                                                            Commissioned                 (Tonnes)               (Tonnes)               PCBs
                                                                                                                                     (Tonnes)
 Oriskany                        Aircraft Carrier                  1950                          25,129             500-600*           794.65**
 Caloosahatchee                  Oiler                             1945                          15,184                   61               34.1
 Canisteo                        Oiler                             1945                          14,705                   61               34.1
 Donner                          Landing Ship                      1945                           5,910                   75               13.7
                                 Dock
 Protector                       Radar Station                     1957                           6,194                     85            23.8
                                 Ship
 Compass Island                  Auxiliary Ship                    1953                          15,057                    252            47.3
 Canopus                         Submarine                         1965                          12,618                    252             286
                                 Tender

 Source: Marine Environmental Risk Assessment, Sept. 2003, Det Norske Veritas.
 * Based on the estimates from US Shiprecyclers
 ** ex-Oriskany Artificial Reef Project Ecological Risk Assessment, June 2005. This amount represent materials on board prior to vessel
 preparation. After preparation, the estimated level will be 704 tonnes.




                                                                          6
 …after remediation as much as                     The reefing of the ex-Oriskany is the start of
 700 tonnes of PCB-contaminated                    a new nationwide program for the Navy, and
 wastes will still remain in the ex-               it is expected that the Navy will remove
 Oriskany!                                         some of the toxic materials on board prior to
                                                   sinking.21

However, it is estimated that after remediation as much as 700 tonnes of PCB-contaminated
wastes will still remain in the ex-Oriskany! And of this amount, approximately 300 tonnes
are above the PCB regulatory threshold of 50 parts per million concentration under TSCA.

According to the Navy, it is not cost effective to completely decontaminate the ex-Oriskany
of all of its PCBs, and any further decontamination will affect the structural integrity of the
vessel, making it unsafe. So the Navy wants an exemption which will allow them to dispose
of, for free, 300 tonnes of PCB- contaminated wastes beyond the 50 ppm regulatory limit,
asbestos, and possible other toxins in the ex-Oriskany, without any safeguards or
containment whatsoever – 300 tonnes of PCB-contaminated wastes, which if disposed on
land, would have cost many thousands of dollars and would have been designated for a
specially designed hazardous waste landfill.


               4. TSCA and the EPA Exemption

The disposal of PCB wastes is highly regulated in
the United States under the Toxics Substances and
Control Act (TSCA).22 PCB-contaminated wastes
with a concentration of greater than or equal to 50
parts per million can generally only be disposed
of in TSCA designated disposal sites.23 Even if
PCBs are below the regulatory limit, they can be
controlled; for example there is a threshold that
forbids any person from discharging water
containing PCBs to a treatment works or to
navigable waters unless the PCB concentration is
                                                         USS Oriskany, sinking preparations.
less that 3 parts per billion and permit is obtained
under the Clean Water Act.

Instead of addressing these issues by seeking ways to remove all the PCBs on board the ex-
Oriskany, the US Navy sought an exemption from TSCA from the US EPA. On April 28,
2004, the Navy filed a letter with the US EPA applying for a risk-based approval to dispose
of PCB bulk wastes into the ocean, and at the same time presented very costly taxpayer
funded scientific studies to justify the sinking as presenting no unreasonable risk of injury to
human health or the environment.

After almost three years of arguing with the Navy about this approach, on February 15, 2006
the US EPA finally issued a permit authorizing the US Navy to sink, for the purposes of
artificial reefing, the ex-Oriskany with many hundreds of tonnes of PCB-contaminated



                                               7
wastes on board.24 Based on studies performed by the Navy on underwater PCB leaching25
and submitted to the US EPA, the latter issued a finding that the disposal of the ex-Oriskany
“does not present an unreasonable risk of injury to human health or the environment.”


The favorable ruling made by the EPA has opened a Pandora’s Box, as it establishes an
onerous precedent not only for the massive number of PCB and asbestos contaminated
ships, but for all forms of large scale PCB disposal. It is likely now that a national
permitting system will soon be established for the disposal of other large vessels for
artificial reefing, which the Navy can exploit to dispose of its unwanted vessels and toxic
wastes.26

         The favorable ruling made by the EPA has opened a
         Pandora’s Box, as it establishes an onerous precedent not
         only for the massive number of PCB and asbestos
         contaminated ships but for all forms of large scale PCB
         disposal.


II.    The “Madness” in EPA’s Approval
The EPA was wrong in allowing the Navy to freely dump its PCBs in the ocean for the
following reasons:

           A. Dumping the ex-Oriskany’s PCBs into the ocean doesn’t eliminate the
              harm inherent in PCBs; it merely transfers it to our marine environment.

PCB molecules are extremely viscous and will migrate out of any matrix they are placed in
over time. The general notion that PCBs in plastics or paints are less prone to discharge
than PCBs in oils is incorrect. The PCBs in the ex-Oriskany will leach into the Gulf Coast
and both the Navy and the EPA are well aware of this fact. The US Navy submitted to the
EPA as part of its Environmental Risk
Assessment, two fate transport models
predicting that 730 days from sinking, PCBs
in the ex-Oriskany will be in a “transient
release period”, afterwards settling to a
“steady state” condition27 - which means
that PCBs will leach from the vessel at
higher rates during the first two years after
the sinking.

Persistent organic pollutants (POPs) such as
PCBs dumped and released within US                 USS Oriskany, flight deck remediation
territorial waters do not remain stagnant




                                               8
within the area of the reef. The EPA itself publicly recognizes that POPs “…circulate
globally via the atmosphere, oceans, and other pathways; POPs released in one part of the
world can travel to regions far from their source of origin”28.

           B. PCBs are carcinogens with no safe levels of exposure – the risk of cancer
              increases with increased exposure to the carcinogen.

Many scientists believe that there is no safe level of exposure to PCBs, and thus all contact
with these toxins must be minimized. Therefore a risk-based approach taken by the EPA in
this case, is inappropriate and a precautionary approach is needed. This precaution against
PCBs is also reflected and is consistent with the EPA’s drinking water Maximum
Contaminant Level Goals (MCLG) for PCBs, which is set at zero.29 This is the level of
protection considered safe by the EPA, in order not to cause any of the potential PCB health
problems.30 Yet faced with pressure from the Navy, the EPA chose to turn its back on these
strict and precautionary standards when it comes to the marine environment.

           C. The risk of dumping tonnes of PCB wastes in the ocean is a needless risk.

Unfortunately, the granting of an exemption
                                                     Risk assessment should only be
under TSCA apparently was not based on
                                                     applied when risks are necessary
whether or not the request is necessary.
                                                     and must be weighed against
Risk assessment should only be applied
                                                     other risks… the technology exists
when risks are necessary and must be
                                                     to safely remove and destroy the
weighed against other risks. However, the
                                                     PCBs and provide jobs and
technology exists to safely remove and
                                                     recycled steel in the process.
destroy the PCBs, and provide jobs and
recycled steel in the process. Disposing of
toxic waste by calling it an artificial reef is only being done to save dollars and is being done
needlessly at the expense of our environment. While the Navy claims that it must be done
or it will unduly affect the structural integrity of the vessel is nonsense, because if the ship
was remediated and recycled in a US yard then it would need no structural integrity.
Supporting this assertion is the experience with the USS Spiegel Grove, which was also sunk
as an artificial reef in 2002. Reports indicate that extensive removal of the PCB cabling,
insulation, and ventilation gaskets was conducted on the vessel by US shiprecyclers at a cost
of $1.6 million,31 prior to being reefed.

Indeed, the EPA acknowledges this fact when it replied to the comments made by the Basel
Action Network:

       “Removal of all PCB bulk product waste (see 40 CFR paragraph 761.3)
       containing regulated levels of PCBs (i.e., at concentrations of 50 parts per million
       (ppm) or greater) from a vessel proposed for reefing, as was the case for the USS
       Spiegel Grove, was always an option available to the Navy for the ex-Oriskany.
       Had the Navy selected this approach, a PCB disposal approval from EPA would
       not be necessary”.32 (Emphasis added)



                                               9
Clearly, where human health and the environment are concerned, it is unacceptable that
regulators allow waste generators to simply choose the least expensive and most convenient
disposal methods for toxins such as POPs, rather than the most environmentally sustainable
methods.

               D. The EPA sends a terrible message against waste prevention, waste
                  responsibility and due diligence.

                                                Giving the Navy a free pass with the ex-
                                                Oriskany ultimately absolves it, as the owner of
                                                the vessel (those that benefited from their
                                                existence) from taking full responsibility over
                                                its vessel’s toxic constituents in the first
                                                instance. The true cost of dealing with the
                                                environmental contaminants is passed on to the
                                                environment, impacted communities, and to
                                                future generations. The practice also foments a
                                                great disincentive for the Navy, as a ship owner,
                                                to demand non-toxic vessels that are designed
                                                with recycling in mind. Why bother with clean
                                                shipbuilding if the toxic liability can be scuttled
 USS Oriskany, flare locker door                into the sea?

               E. Artificial reefing wastes precious scrap steel.

Prices of scrap steel in past years have experienced a spectacular boom.33 In 2002, the price
of scrap steel was at $100 per ton; in early 2006 the price per ton was pegged at $300.34
Global demand for this commodity is moving towards China, and is exacerbating low US
supply of steel.35 It is estimated that if scrap steel from the stockpile of US vessels were
harnessed, approximately $45 million worth of much needed (150,000 tons) and valuable
scrap steel would be infused into dwindling US supplies.36

               F. Reefing fosters disincentives for better and environmentally sustainable
                  resource recovery and undermines US ship recycling.

The globally recognized waste management
hierarchy37 strongly suggests that dumping waste at         … if scrap steel from the
sea is not the environmentally preferable option. In        stockpile of US vessels were
this regard, the United States should be fostering a        harnessed, approximately $45
robust and state-of-the-art ship recycling                  million worth of much needed
infrastructure, helping American scrap steel and            and valuable scrap steel
shipbreaking industries, instead of looking for             (150,000 tons) will be infused
cheap disposal options that directly undermine the          into dwindling US supplies
worthwhile development of these industries. Case
in point is the US ship recycling industry.




                                                 10
Old vessels are the life blood of the ship recycling industry; they need the precious scrap
steel in vessels to sustain their operations. With the Navy and MARAD so focused on cheap
disposal options, fewer and fewer US vessels are going to domestic recyclers. US ship
recyclers are forced to either close shop or to match the lowered costs of disposal offered by
reefing and overseas recycling, by eliminating jobs, squeezing wages and benefits of
workers, or cutting corners on safety, health, environmental standards.

Lastly, the EPA’s “madness” further has the dual effect of negatively affecting job creation
in affected industries, as mentioned above, as well as failing to promote recycling over
primary mining of steel, where extraction and energy use can further be avoided.

           G. Sinking toxic ships in the ocean risks adverse consumer reaction that might
              impact US fishing industry in the Gulf.

In 1999, a dioxin scare erupted in Belgium. Dioxin, a highly carcinogenic substance, was
reported to have contaminated chicken feed that was fed to livestock sold in Belgian
groceries. Government officials immediately ordered the slaughter of millions of livestock
crippling, the local industry. Millions of dollars were lost, and it took the Belgian livestock
industry years to recover from the scare.

         The EPA is risking… consumer backlash against tainted fish or
         marine life caught in the area of the reef because of PCBs.

The EPA is risking a similar consumer backlash against tainted fish or marine life caught in
the area of the reef because of PCBs. American consumers have shown a natural affinity for
the precautionary principle; when faced with doubt, they have done without. Consumer
backlash can severely hurt fishing industries in the Gulf Coast, and as in past experiences
with mad-cow disease in beef, it has taken years for industries that have been hit to recover.

           H. The dumping violates international law and globally accepted policy on
              PCB disposal.

The practice of disposing of toxic waste by calling it an artificial reef and dumping it into
the sea, now allowed by the US EPA, flies in the face of known and internationally
established standards of dealing with PCBs and ocean dumping in general.

               London Convention

The Convention on the Prevention of Marine Pollution by Dumping of Wastes and Other
Matter,38 otherwise known as the London Convention (LC), and updated by the London
Protocol of 1996 (which has just recently entered into force), covers the deliberate disposal
at sea of wastes or other matter from vessels, aircraft, and platforms. While the protocol
completely bans all industrial waste dumping in the sea, it has not yet been ratified by the
US. The London Convention, however, has been ratified by the US and they are thus
obliged to uphold its obligations. It controls and prevents marine pollution through several




                                               11
means, one of which is by prohibiting the dumping at sea of certain hazardous materials,
including organohalogen compounds, such as PCBs.39

The US EPA, however, claims that artificial reefing is excluded from the LC’s definition of
dumping, because it is a “placement of material other than disposal”.40 The EPA’s defense
falters upon closer scrutiny as the LC also requires that any “placement” at sea must not be
made in contravention to the aims of the LC,41 one of which is the prevention of marine
pollution. The act of introducing PCBs into the Gulf of Mexico is itself the prohibited act.
Risk assessments and other fancy studies were not intended by the LC to qualify the
prohibition against dumping. For if this was the case, the LC would easily be circumvented
by those who can afford to pay scientific models that justify disposal.

Lastly, even assuming that reefing qualifies as ‘placement other than disposal’, this can only
apply to the vessel itself and not to the PCBs. It is the vessel’s steel structure that will
promote the enhancement of marine life and be the main draw that attracts the sports divers
to the reef, not the PCBs. In fact, the PCBs will do the exact opposite of what the vessel will
achieve - it will poison marine life and drive away sport divers and fishermen. There can be
no other reason under the LC that can justify the placement of the PCBs at sea, and the
Navy’s act must be seen for what it is, a straightforward disposal disguised as ‘placement’.

Thus, the EPA’s allowance of PCBs or any           Disposal at sea, especially when
other toxic substance that can be removed          this has been forbidden by other
prior to ocean disposal is insupportable           international law cannot be
under the LC to which the US is a party. By        enumerated as an environmentally
giving the ‘green light’ to sink the ex-           preferable option for dealing with
Oriskany without full decontamination, the         PCBs in accordance with
US is in clear violation of its London             Stockholm…
Convention obligations.

           Stockholm Convention

The Stockholm Convention adopted in 2002 is a global treaty to protect human health and
the environment from persistent organic pollutants (POPs). 112 nations have now ratified
this Convention, and although the United States has not ratified yet, it has signed the
Convention and thereby indicated every intention of ratifying it.

The Stockholm Convention, among other things, defines how the international community
must manage POPs wastes, particularly to take appropriate measures so that these wastes
are, disposed of in such a way that the POPs pollutant content is “destroyed or irreversibly
transformed” so that it no longer possesses the characteristics of a POP. It can also be
disposed of in an environmentally sound manner when destruction or irreversible
transformation does not represent the environmentally preferable option.42

Disposal at sea, especially when this has been forbidden by other international law cannot be
enumerated as an environmentally preferable option for dealing with PCBs in accordance




                                              12
with Stockholm.43 Thus the United States is in violation of the intent of the Stockholm
Convention, which they signed and fully supported.

           OECD

The Organization for Economic Co-operation and Development (OECD) is comprised of 30
of the wealthiest nations in the world; the US is one of the original members of the OECD.

The OECD has promulgated decisions in the areas of finance and the environment, and has
looked into the issue of PCBs. OECD Decision C(87)2/Final passed in 1987, specifically
addresses the issue of PCB disposal, and it makes two crucial statements in its chapeau:

       “Considering that the ultimate objective of international action to control PCBs is to
       eliminate entirely their release to the environment;

       Considering, therefore, the need for additional, more stringent measures to control
       new and existing uses of PCBs and the disposal of PCBs and wastes containing
       PCBs;”

The OECD Decision proceeds to, among others, recommend that member countries, as far
as practicable, ensure that disposal of PCB containing wastes is carried out in a manner that
avoids the release of PCBs into the environment.44 As a member of the OECD, the US is
failing to respect this recommendation in good faith, as it allows the disposal of the ex-
Oriskany without removing all the remaining PCBs on board.

The OECD Decision proceeds to…recommend that member countries, as far as
practicable, ensure that disposal of PCB containing wastes is carried out in a
manner that avoids the release of PCBs into the environment



III.   Conclusion
The EPA has failed the public and the environment, which it is charged to protect, by
granting the US Navy an exemption from the Toxic Substances Control Act, the law of the
land. This exemption in effect allows toxic wastes to be disposed of in a new manner – by
calling it an artificial reef and dumping it into the sea. Such a practice of uncontrolled
dumping would never be allowed on land, and if it were would be restricted to TSCA
designated disposal sites.

The approval issued by the EPA last February 2006 to the US Navy to dispose of more than
700 tonnes of PCB-contaminated wastes entombed within the ex-Oriskany is a slow death
sentence meted to a part of our marine environment and to the species and populations that
look to the seas for sustenance and enjoyment. Moreover, it sends a horrific message that
our seas are dumps and that waste responsibility and toxic-free design and production is
unnecessary. Further, it prevents the sensible and sustainable recovery of many tonnes of


                                             13
steel, forcing more extraction and energy intensive processing of raw materials. It prevents
job creation, and more importantly, the development of a responsible recycling
infrastructure in the United States where it is sorely needed. Finally, all of these negative
outcomes will be compounded by the fact that this is designed as but the first of many such
violations of our marine environment.

We urge all citizens to do everything they can to try and halt this form of environmental
injustice.

The ocean will remain silent to this injustice and harm. It is our job as stewards of our own
actions and the earth to speak out against this madness across our waters.


                                                              - END -




                           USS Oriskany leaving Pensacola, Florida.

1 Gulf States Marine Fisheries Commission, “Guidelines for Marine Artificial Reef Materials”, No. 38, January 1997.
2 Disposal Options for Ships, Ron Hess, Denis Rushworth, Michael V. Hynes, John E. Peters, Rand Corporation, 2001, p. 70.
[hereinafter, Rand Report (2001)], citing, “Atlantic States Marine Fisheries Commission, “The Role of Vessels as Artificial Reef Material
on the Atlantic and Gulf of Mexico Coasts of the United States,” Special Report 38, December 1994, pp. 4 and 6.
3 Id. at p. 69.
4 President Bush, hailed the Stockholm Convention on Persistent Organic Pollutants as “one that would safeguard the health of

Americans, particularly those most at risk, such as native Alaskans, while extending a helping hand to developing countries.” EPA Press
Release available at:
http://yosemite1.epa.gov/opa/admpress.nsf/b1ab9f485b098972852562e7004dc686/2a8911e6632ced6785256a56004f38be?OpenDocu
ment.
5 Rand Report (2001).
6 US Navy funds both Navy and MARAD inactive fleet expenses.
7 Rand Report 2001, at p. 11.
8 BAN press release: Legal Challenge Keeping Ship Scrapping Jobs in the US:

Export Plan Violates Law and Common Sense, http://www.ban.org/ban_news/2004/041015_pr_legal_challenge.html
9 French warship ordered home, Financial Times (UK), 15 February 2006,

http://www.ban.org/ban_news/2006/060215_ordered_home.html
10 Rand Report 2001
11 Id. p. xii.
12 Dealing with ordinance and flammable materials and coming under attack, warships are more prone to catch fire than ordinary

vessels.
13 US Environmental Protection Agency, “Draft National Guidance: Best Management Practices for Preparing Vessels Intended to

Create Artificial Reefs”, June 24, 2004. Found at: http://www.epa.gov/owow/oceans/habitat/artificialreefs/coverintro.pdf




                                                                  14
14 US Environmental Protection Agency, “A Guide for Shipscrappers: Tips for Regulatory Compliance,” Summer 2000, USEPA. Found
at: http://www.ban.org/Library/scrap.pdf
15 Id.
16 Marine Environmental Risk Assessment for Post-Service Remediation Partners LLC, Det Norske Veritas. September 2003.
17 Environmental Protection Agency (US). Mercury study report to Congress. Washington; EPA. Pub.No.: EPA/600/P-97/002Ab.
18 Zillious, E.J., Porcella, D.B., Benoit, J.M., "Mercury Cycling and Effects in Freshwater Wetland Ecosystems," Environmental

Toxicology and Chemistry 12 (1993), pp.2245-2264.
19 ex-Oriskany Artificial Reef Project Ecological Risk Assessment, June 2005. Found at:

http://www.epa.gov/Region4/air/lead/PCBWebPage.htm.
20 Estimates from US ship recyclers.
21 The Navy is following the Draft EPA Best Management Practices for Preparing Vessels Intended to Create Artificial Reefs, see note

13.
22 15 U.S.C. §§ 2601 (1976).
23 15 U.S.C. § 2605.
24 EPA Approval Letter is available at: http://www.epa.gov/Region4/air/lead/PCBWebPage.htm.
25 Ecological and Human Health Risk Assessment available at: http://www.epa.gov/Region4/air/lead/PCBWebPage.htm.
26 For a list of vessels being immediately considered by the Navy see: http://peoships.crane.navy.mil/reefing/inventory.htm.
27 Ecological Risk Assessment, p. 5-18, available at: http://www.epa.gov/Region4/air/lead/PCBWebPage.htm.
28 See: http://www.epa.gov/oppfead1/international/pops.htm
29 http://www.epa.gov/safewater/contaminants/dw_contamfs/pcbs.html.
30 Id.
31 See: http://www.gulfcoastgateway.com/apps/pbcs.dll/article?AID=/20051002/NEWS01/510020328/1006 and

http://www.spiegelgrove.info/.
32 EPA Response, p. 4 see at: http://www.epa.gov/Region4/air/lead/documents/oriskanyrtc.pdf.
33 Asia Times Online, “Your Steel Trash, China’s Treasure”, Jan. 21, 2006, available at:

http://www.atimes.com/atimes/China_Business/HA21Cb05.html.
34 East Bay Business Times, “Salvaging ghosts: Steel prices spike spurs move to scrap mothballed fleet”, 24 February 2006, available

at: http://eastbay.bizjournals.com/eastbay/stories/2006/02/27/focus1.html. Many ships in the nation's ghost or mothball fleet, including
most of those in Suisun Bay, weigh more than 10,000 tons each.
35 Recycling Today, “China Buyers Drive US Steel Prices”, available at: http://www.recyclingtoday.com/news/news.asp?ID=4988.
36 Rand Report 2001, p. 153.
37 Report of Ad hoc meeting of Government designated experts (Nairobi, 9-11 December 1991) UNEP/CHW/WG.2/1/3. Under the

United Nations Environment Program, government-designated experts have outlined the elements of an international strategy and an
action program for dealing with wastes, including technical guidelines for environmentally sound management of hazardous wastes:
        1.   Prevent the generation of wastes;
        2.   Reduce to a minimum the wastes generated by economic activities;
        3.   Recover, reuse and recycle the greatest possible quantity of those wastes which are still generated; and
        4.   Dispose of, in an environmentally sound manner, any remaining waste.
38 See at http://www.imo.org/Conventions/contents.asp?topic_id=258&doc_id=681#7. [hereinafter London Convention].
39 Art. 4 and Annex 1, London Convention.
40 EPA Response to Comments, available at: http://www.epa.gov/Region4/air/lead/PCBWebPage.htm.
41 Art.3 (b)(ii), London Convention.
42 Article 6 (d) of the Stockholm Convention.
43 The Basel Convention Technical Guidelines for Environmentally Sound Management of Wastes Consisting of, Containing or

Contaminated with Polychlorinated Biphenyls, Polychlorinated Terphenyls or Polybrominated Biphenyls (See at
http://www.basel.int/techmatters/popguid_may2004_wcc.pdf.) does not consider ocean disposal as either a means of destruction or
irreversible transformation of PCBs waste as required by the Stockholm Convention, nor does it consider ocean disposal as a means of
PCB disposal in the case when destruction or irreversible transformation “does not represent the environmentally preferable option”.
44 OECD Convention, Art. III (2), Decision C(87)2/Final.




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