Ballast-water regulation calls for balance and industry input

By Andrew Lisak

Executive Director, The Development Association, Inc.; Superior

A potential squall is brewing down in Madison, Wisc., that could turn into a "perfect storm" over the issue of invasive species and ballast water. Two "storm systems" are developing: one coming from Governor Doyle and the other from Republicans in the Legislature. If these systems gain strength and collide, the resulting storm could be devastating to Duluth-Superior's grain shipping industry.

The nub of the problem is how to deal with invasive species (zebra mussel, round goby, etc.), some of which hitch rides on the hulls of foreign ships ("salties," in local lingo) or travel in the ballast water (water used to stabilize a vessel in rough seas or when loading) of these vessels. Although the residents of Superior and Douglas County are concerned about the spread of invasive species (in fact we have lobbied for the control of invasive species) they are equally concerned that the "medicine" being concocted in Madison does not become worse than the disease.

Governor Doyle, in his Conserve Wisconsin agenda, which was released in August, called for "strict new legislation" to regulate the discharge of ballast water. According to the Milwaukee Journal-Sentinel, he has asked the Wisconsin Department of Natural Resources to review measures recently passed by the states of New York and Michigan dealing with ballast water to see if similar regulations should be enacted by Wisconsin.

In the Legislature, Republican Senator Neal Kedzie of Elkhorn and Republican Representative Scott Gunderson of Waterford, both of whom chair their respective bodies' Natural Resources Committee, have announced that they will be introducing legislation to prohibit the discharge of ballast water by oceangoing vessels unless those vessels have "the proper permit from the Wisconsin Department of Natural Resources." The press release that announced this legislative action also cited Michigan's legislation as a model that should be followed by Wisconsin.

Michigan's law, which would go into effect in 2007, requires oceangoing vessels that wish to use Michigan ports to prove that they will not discharge ballast water or are equipped to treat the water. Vessels will be required to obtain permits from the Michigan Department of Environmental Quality (DEQ), which is the same department that is charged with promulgating the rules regulating the discharge of ballast water. Vessels that do not comply with the regulations will be subject to fines of up to $25,000 per day.

Although the intentions of Governor Doyle, Senator Kedzie and Representative Gunderson are admirable, there are a number of problems with the approach they propose, and with the Michigan model itself. First, their approach makes the assumption that if all the Great Lakes states impose the same regulation vis-à-vis

ballast water, "Wisconsin's ports and shipping industry will not be at a competitive disadvantage."

What the governor and legislators do not understand is that Superior's grain industry's real competition is not with Toledo, Chicago, Detroit or other Great Lakes ports, but with ports along the Mississippi River, along the Gulf Coast and in Washington State — ports in states that, as of today, have not and are not likely to impose ballast water regulations. Salties visiting Superior will have added regulation and costs while vessels visiting the competition will not. Vessel operators and shippers will ultimately decide to use ports where regulations and costs are lowest.

The second assumption is that Michigan's and subsequently Wisconsin's regulation will solve the problem of invasive species in such a way that is not overly burdensome for vessel operators. According to a Mackinac Center for Public Policy article written by former Michigan DEQ Director Russ Harding, the Michigan approach "delegates too much unchecked authority to regulators, freeing them from a thorough consideration of scientific and regulatory alternatives."

Harding went on to say that given past performance, the administrative rules that will be promulgated by the DEQ "will make the regulatory system ineffective, expensive and unnecessarily complex."

The third problematic assumption is that the Wisconsin Legislature and the Wisconsin DNR can draft effective ballast water rules and regulations without input from members of the shipping industry who will be affected by the rules and regulations. Harding noted the failure of the Michigan legislature to consult shipping industry representatives during the drafting of the legislation. It appears that Wisconsin could be following the same hazardous course.

The potential impact on Duluth-Superior's shipping industry is too great to let the legislature and DNR develop ballast water regulations without industry input. Of the 1,089 vessels that visited the Twin Ports last year, 111 were salties. According to the Duluth Seaway Port Authority, more 2,000 jobs are dependent on Port activities. Oceangoing vessels visiting the Twin Ports mean employment for stevedores, longshoremen, vessel agents, grain testers, grain millers, tug boat operators and marine suppliers. These vessels also attract tourists who travel to, shop and stay in our community.

The Development Association along with Superior City Planning and Port Director Jason Serck have contacted several members of the Twin Ports' shipping community to notify them of the squall developing in Madison. The Development Association has contacted Senator Bob Jauch and Representative Frank Boyle to share with them the concerns of industry. In addition, Development Association staff members took the opportunity to meet with DNR Secretary Scott Hassett in Ashland during the Governor's recent Northern Wisconsin Tour.

The residents of the Twin Ports are concerned about invasive species. Governor Doyle's and the Wisconsin Legis-lature's willingness to address this issue are much appreciated.

However, it is imperative that both the DNR and Legislature consult shipping industry representatives to ensure that any legislation that is drafted is reasonable and effective. By confronting this storm head on and by taking the lead to organize the shipping industry's input in the legislative and regulatory process, the Development Association hopes to prevent a "perfect storm" of draconian regulations that would cripple Superior's shipping industry.