Please contact Karen@MauiPaddle.com for the pdf file (includes photos and graphs) which is about 6 Meg. ========================================================================= MAYOR’S CRUISE SHIPMAYOR’S CRUISE SHIP TASK FORCETASK FORCEISLAND OF MAUIISLAND OF MAUIFINAL REPORTFINAL REPORTAugust 15, 2005August 15, 2005 MAYOR’S CRUISE SHIP TASK FORCE ISLAND OF MAUI FINAL REPORT August 15, 2005 ACKNOWLEDGEMENTS In addition to the individuals who served generously as resources to this Task Force, we gratefully acknowledge many others who assisted with logistics and other preparations. The office assistants at the County's Office of Economic Development helped with meeting arrangements and materials as did the Mayor's office staff. We are also grateful to Department of Public Works staff for providing occasional assistance with document production, to corporation counsel for analyzing legal issues encountered by the Task Force and to the GIS Division for producing the map of Kahului Harbor. Thanks also to the Maui Economic Development Board for meeting assistance and advice on formatting and designing the final report; to the ILWU for use of their convenient meeting space and the Maui County Employees Federal Credit Union for making their conference room available for Task Force meetings. MAYOR’S CRUISE SHIP TASK FORCE FINAL REPORT TABLE OF CONTENTS BACKGROUND ………………………………………………………………………...….1 FINDINGS MAUI CRUISE SHIPS AND VISITORS………………………………………………5 CULTURE………………………………………………………………………………11 INFRASTRUCTURE………………………………………………………………......17 ECONOMICS…………………………………………………………………………..37 LEGISLATIVE AND POLITICAL……………………………………………………..51 ENVIRONMENT……………………………………………………………………….59 SECURITY AND SAFETY……………………………………………………………75 SOCIAL…………………………………………………………………………………83 PREFACE TO RECOMMENDATIONS…………………………………………..….85 RECOMMENDATIONS GENERAL………………………………………………………………………………87 CULTURE………………………………………………………………………………90 INFRASTRUCTURE…………………………………………………………………..92 ECONOMIC…………………………………………………………………………….95 LEGISLATIVE AND POLITICAL……………………………………………………..97 ENVIRONMENTAL……………………………………………………………………99 SECURITY AND SAFETY…………………………………………………………..102 SOCIAL………………………………………………………………………………..103 TABLE OF CONTENTS (Continued) APPENDICES APPENDIX A TASK FORCE MEMBERS…………………………………...…107 APPENDIX B TASK FORCE RESOURCES…………………..………………108 APPENDIX C MAJOR CRUISE SHIPS VISITING MAUI……..………………111 APPENDIX D PROPOSED NCL AMERICA WEEKLY SCHEDULE…………………………………………..112 APPENDIX E KAHULUI HARBOR MAP…………………………...…………..113 APPENDIX F ALLOCATION OF REVENUE IN TWO DLNR HARBORS…………………………………………….…..114 APPENDIX G SUGGESTED IMPROVEMENTS TO MALA WHARF…………………………………………...…….…115 APPENDIX H DOT HARBOR FEES…………………………..………………..116 APPENDIX I LIQUOR COMMISSION REGULATIONS……..………………117 APPENDIX J HAWAI`I MOU…...………………………………..……….…..…119 APPENDIX K ORGANIZATIONS AND REGULATIONS GOVERNING MARINE WATER QUALITY AND SAFETY…...………………125 APPENDIX L HAWAI`I MARINE AREA MAP………………………………….132 APPENDIX M REGULATIONS GOVERNING WASTE STREAMS ON SHIPS………………………………………………………...133 APPENDIX N COMPARISON OF MOUs: FLORIDA, HAWAI`I AND WASHINGTON……………………………….…139 APPENDIX O COMPARISON OF ALASKA AND CALIFORNIA LEGISLATION WITH THE HAWAI`I MOU…..………………..142 APPENDIX P WASTE MATERIALS ON CRUISE SHIPS…………...……….144 APPENDIX Q MARINE SANITATION DEVICES………..…………………….145 Mayor’s Cruise Ship Task Force LIST OF CHARTS Chart 1 Ships Making More Than Ten Visits to Maui in 2003 and 2004……………6 Chart 2 Cruise Ship and Passenger Numbers Visiting Maui in 2003 and 2004…...6 Chart 3 Scheduled Cruise Ship Arrivals and Stays in Maui Harbors………………..7 Chart 4 Cruise Passenger Arrival Figures……………..………………………………8 Chart 5 Cruise Passenger Arrivals Scheduled through 2007………………………..9 Chart 6 Cruise Passenger Versus Air Visitor Arrivals………………………………...9 Chart 7 Cruise Passenger Arrivals as a Percentage of Maui Visitor Arrivals…….10 Chart 8 Vessels That Use Pier 1 of Kahului Harbor…………………………………25 Chart 9 Revenues Generated and Spent in Lahaina Harbor……………………….31 Chart 10 Cruise Passengers and Crew Scheduled to Arrive on Maui………………33 Chart 11 Taxes, Fees and Reimbursements Paid by Cruise Ships and Hotels…...38 Chart 12 Cruise Passenger Fees in Hawai`i and Other Ports.................................39 Chart 13 Statewide Passenger and Crew Spending………………………………….40 Chart 14 Passenger and Crew Spending Breakdown………………………………..41 Chart 15 Economic Benefit of Cruise Ships to the Activities and Attractions Industry………………………………………………………43 Chart 16 Number of Cruise Stops to be Made and Days to be Spent in Maui Ports……………………………………………………..50 Chart 17 Waste Streams on Cruise Ships…….……………………………………….60 Mayor’s Cruise Ship Task Force ABBREVIATIONS ADEC Alaska Department of Environmental Conservation AWTS Advanced Wastewater Treatment System CAA Federal (US) Clean Air Act CAB Clean Air Branch (Hawai`i Department of Health, Division of Environmental Management) CFR Code of Federal Regulation CWA Federal (US) Clean Water Act DBEDT Hawai`i Department of Business Economic Development and Tourism DLNR Hawai`i Department of Land and Natural Resources DOBOR Division of Boating and Ocean Recreation (Hawai`i Department of Land and Natural Resources) DOCARE Division of Conservation and Resource Enforcement (Hawai`i Department of Land and Natural Resources) DOH Hawai`i Department of Health DOT Hawai`i Department of Transportation EEZ Exclusive Economic Zone EPA Environmental Protection Agency (Federal) EU European Union F&B Food and Beverage FSP Facilities Security Plan GET General Excise Tax HIHWNMS Hawaiian Islands Humpback Whale National Marine Sanctuary HMA Hawai`i Marine Area HP Home-ported ICCL International Council of Cruise Lines IMO International Maritime Organization IPSP International Port Security Program IT In transit MARPOL Marine Pollution MCDA Maui County Civil Defense Agency MCDLC Maui County Department of Liquor Control MOU Memorandum of Understanding MSD Marine Sanitation Device MTSA Maritime Transportation Security Act MVB Maui Visitors Bureau NANPCA Nonindigenous Aquatic Nuisance Prevention and Control Act NBIC National Ballast Information Clearinghouse NCL Norwegian Cruise Lines NCLA NCL America NDZ No Discharge Zone Mayor’s Cruise Ship Task Force NISA National Invasive Species Act NOAA National Oceanic and Atmospheric Administration NOx Nitrous Oxide Emissions NPDES National Pollution Discharge Elimination System NWCA Northwest Cruise Ship Association OEQC Hawai`i Office of Environmental Quality Control PAT Polynesian Adventure Tours RCRA Resource Recovery and Conservation Act USCG United States Coast Guard Mayor’s Cruise Ship Task Force BACKGROUND The great increase in the number of cruise ships visiting Maui between the mid-nineties when the first cruise ship arrived in Lahaina Harbor to 2003 when over 230,000 cruise visitors arrived on Maui prompted Mayor Alan Arakawa to appoint a Task Force of community members to assess the impacts and benefits of cruise ships on the island Maui.1 The Task Force included of a broad spectrum of Maui residents drawn from County and State government, large and small business, tourism, small towns and culture, environmental organizations, the visitor industry, law enforcement and economic development. Task Force members are listed in Appendix A. The only funding appropriated for the activities of the Task Force were funds paid to a consultant to assist with research, writing and Task Force coordination. The Task Force held 41 meetings between November 7, 2003 and August 4, 2005 to interview resources, discuss data, statistics and other information, and draft the report, including the findings and recommendations. It also held two community meetings to present a brief summary of its interim findings and solicit comments and input from the public. One meeting was held at Lahaina Intermediate School on November 9, 2004 and one was held at Maui Waena (in Kahului) on November 16, 2004. The work of this Task Force was not undertaken as a technical study. Rather the process was designed to be a broad informal survey and assessment from a community perspective of the cruise industry in Maui. The members of the Task Force, who are all residents of Maui, felt it was imperative to understand this new sector to Maui from multiple angles and therefore organized its approach and information gathering from several perspectives: 1 Because the cruise ships currently only visit the island of Maui in Maui County, the Task Force limited its scope to the Maui experience. Some components of the Task Force work, however, may have value in future assessments conducted by Moloka`i or Lana`i of this possible sector in their economies. Mayor’s Cruise Ship Task Force Background • Cultural • Economic • Environmental • Infrastructural • Political • Security/Safety • Social The Task Force also drew on information from representatives of the Federal, State and County government, the local business community, workers in Lahaina and Kahului harbors, the cruise industry, recreational harbor users, local residents, etc. A complete listing of the Task Force resources is presented in Appendix B. The approach taken by the Task Force reflected the core values of our community and the importance of evaluating dynamic influences or initiatives that impact the community in the context of all of these values. The core values of the community derive from a history of long-range planning and visioning processes and studies conducted in the Maui County, some of which date back to the mid-eighties and others as recent as June 2005. These include Visions of the Future, Decisions Maui, Main Street Community Workshops, Conferences and Data Collection, the Community General Plan, and Focus Maui Nui. Through these and other processes our community values, priorities and recommendations have been reassessed and reaffirmed. Norwegian Cruise Lines America (NCLA) is a new cruise line (a US subsidiary of Norwegian Cruise Lines, which is a subsidiary of a foreign corporation, Star Cruises) that has agreed to operate its business solely within the State of Hawai`i. This means all its ships are registered in the United States and must operate under US law. To do this, NCLA agreed to many conditions that other cruise lines are not subject to. NCLA ships only sail within Hawai`i waters, where as all other cruise ships may only stay within State waters a short time, and must make a foreign port of call outside the US before and after each tour in Hawai`i. NCLA is currently the largest cruise line operation in Hawai`i and by 2007 70% or more of the cruise passengers visiting Hawai`i and Maui are projected to be NCLA passengers. As a US- based business, NCLA also interacts with Federal and State government and local businesses very differently than do other cruise lines. Therefore, NCLA made a presentation to the Task Force, sent a representative to several Task Force meetings, and participated more extensively as a resource to the Task Force than did other cruise lines. The Task Force also toured and was served lunch on board the Pride of Aloha on November 5, 2004. During this visit the Task Force met with the ship’s captain, environmental officer, the “Hawaiian Ambassador,” the ship’s cultural programming staff and other members of the crew. The Northwest Cruise Ship Association (NWCA) also made a presentation to the Task Force on behalf of all the major cruise lines that regularly stop in Hawai`i and Maui. Two shipping agencies that represent cruise lines based in other countries in Hawai`i (Waldron Steamship and Transmarine Navigation Corporation) also met with the Task Force and presented information about the MOU and the operations of the cruise lines they represent. This report is offered as an informal introduction to the cruise ship industry on Maui and its broad implications for our community. As such, it is meant as a starting point for further study and discussion that will inform our decision making about the future of this industry on Maui. Mayor’s Cruise Ship Task Force Background MAUI CRUISE SHIPS AND VISITORS Cruise ships vary greatly in size and in passenger and crew capacity. The ships that made calls in Maui ports in 2003 and 2004 are listed in Appendix C. They ranged in size from approximately 5,200 gross tons to approximately 92,000 gross tons. The combined passenger and crew capacity on these ships ranged from approximately 350 persons to approximately 3,500 persons. Generally 66% of the berth space on a passenger vessel is dedicated to passengers and 33% is dedicated to crew. That is, In 2003 and there are usually twice as many passengers as crew on board a 2004 ship. approximately 27 different In 2003 and 2004 approximately 27 different cruise ships made cruise shipscalls in Maui ports (Appendix C lists 24 of these ships). Among made calls in these 27 ships, 26 are registered in foreign countries (foreign-Maui ports. flag ships) and one, NCL (Norwegian Cruise Line) America’s ship, Pride of Aloha, is a US-flag ship. It is currently the only US flag ship in the world, and will be joined by two other NCL America (NCLA) ships The Pride of America in July 2005 and The Pride of Hawai`i in July 2006. Of the 23 large ships that traveled to Maui in 2003 and 2004, 15 made fewer than five tours of Maui each year and four ships made six to ten tours to Maui per year. Four ships made more than 10 tours per year and are listed in Chart 1. Most foreign-flag ships stop in Hawai`i on “repositioning tours” when ships are switching from touring one region, such as the North Pacific in summer, to another such as Central America in winter. These vessels make fewer than five tours in Hawai`i each year. Approximately 250,000 passengers arrived on Maui via cruise ships in 2003 and 2004. The cruise ships bringing these passengers made between 60 and 85 stops each year in each Mayor’s Cruise Ship Task Force Findings Maui Cruise Ships and Visitors harbor, and spent 160 to 200 days in Maui harbors. The crew members on these ships also made approximately 110,000 visits in each of these years (Chart 2). Chart 1 Cruise ships Making More Than Ten Visits to Maui in 2003 and 2004 Number Number Cruise Line Vessel of Tours of Tours in 2003 in 2004 Norwegian Cruise Line Norwegian Star 52 19 Norwegian Cruise Line Norwegian Wind 12 21 NCL America Pride of Aloha 0 24 Royal Caribbean International Legend of the Seas 12 12 Source: Lahaina and Kahului Harbor schedules for 2003 and 2004 Chart 2 Cruise Ship and Passenger Numbers Visiting Maui in 2003 and 20042 2003 2004 230,495 240,800 Approximate # of Passenger Visits 110,000 103,000 Approximate # of Crew Visits Lahaina Kahului Maui Lahaina Kahului Maui # of Ships that Arrived in 16 5 18* 19 6 23* Approximate # of Times a 68 60 123* 85 59 131* Cruise Ship Stopped in Approximate # of Days 99 61 160 113 87 200 Cruise Ships Spent in** *Some ships stopped in both Kahului and Lahaina. **Some ships made overnight stays in a harbor. 2 Calculated using passenger and crew capacity figures from Cruise Line International Association, and Lahaina and Kahului harbor schedules. Mayor’s Cruise Ship Task Force Findings Maui Cruise Ships and Visitors By late 2006, NCLA will have three US-flag ships touring only in Hawai`i. NCLA plans to have the Pride of Aloha, the Pride of America, and the Pride of Hawai`i each making a weekly port call in Kahului Harbor and occupying Pier 1 in the harbor six days per week (Appendix D). This will increase the number of visitors arriving on Maui and the number of days harbor berths in Kahului Harbor will be occupied (Chart 3). Chart 3 Scheduled Arrivals and Stays in Maui Harbors Lahaina Kahului 2005 2006 2005 2006 2007 18 19 5 6 5 # of Ships # of Ship 86 89 89 150 175 Arrivals # Days Ships Will Spend in 96 98 166 276 332 the Harbor # of Passenger 225,979 252,981 257,682 447,504 532,449 & Crew Visits Calculated using passenger and crew capacity figures from Cruise Line International Association and Kahului and Lahaina harbor schedules published in April 2005. Figures from the Department of Business Economic Development and Tourism (DBEDT) indicate that cruise passenger arrivals to Maui represented approximately three to four percent of all visitor arrivals in Hawai`i in 2002 and 2003. However, they represented nine to ten percent of the visitor arrivals in Maui (Chart 4). A small number of the cruise ships that visit Hawai`i are only able to stop for one or two nights in the State. These are usually smaller cruise ships. Ships with this kind of limited itinerary generally choose to include Maui and the island of Hawai`i in their stops and will often skip visits to O`ahu and Kaua`i. Reflecting this fact, DBEDT reported that the number of cruise ships that arrived in DBEDT reported that the number of cruise ships that arrived in Maui and the Island of Hawai`i in 2003 and 2004 exceeded the number of cruise ships that arrived on O`ahu. Mayor’s Cruise Ship Task Force Findings Maui Cruise Ships and Visitors Based on estimates, cruise passenger arrivals in Lahaina in 2007, cruise passengers will account for almost 20% of all visitor arrivals on Maui. Maui and the Island of Hawai`i in 2003 and 2004 exceeded the number of cruise ships that arrived on O`ahu. Chart 4 Cruise Passenger Arrival Figures3 Cruise Cruise Visitors Visitors as % of as % of All All Visitors Visitors State 2002 2003 Air Visitor Arrivals 6,389,058 6,380,439 Cruise Passengers 235,027 3.5% 230,495 3.5% Maui 2002 2003 Air Visitor Arrivals 2,073,051 2,125,421 Cruise Passengers 215,200 9.4% 230,495 9.8% * Based on Kahului and Lahaina harbor schedules and maximum passenger capacity of the ships listed on those schedules. With the advent of the new US-flag cruise ship business in Hawai`i, cruise passenger arrivals increased significantly in 2004 and will continue to increase dramatically through 2007 (Chart 5).4 3 All figures except those indicated by * are from the DBEDT 2003 Annual Visitor Research Report. 4 As of April 2005 only 6 of an expected 18 or so cruise ships had scheduled arrivals in Lahaina Harbor for 2007. Mayor’s Cruise Ship Task Force Findings Maui Cruise Ships and Visitors Chart 5 Cruise Passenger Arrivals Scheduled through 2007 Ships Scheduled Passenger Arrivals as of April 2005 Scheduled Kahului Lahaina Kahului Lahaina Maui 2004 6 19 119,594 152,106 271,700 2005 5 18 183,395 162,054 345,449 2006 6 19 304,211 181,448 485,659 2007 5 6 347,830 128,466 476,296 Based on harbor schedules as of April 2005 and the maximum passenger capacity of the ships on the schedules. In 2002, 2003 and the first quarter of 2004, air visitor arrivals to Maui increased by 1.2 %, 2.5 % and 2.2 % respectively (Chart 6). Chart 6 Cruise Passenger Versus Air Visitor Arrivals Number of Visitor Arrivals by Air Increase Over Previous Year 1999 2,277,694 2000 2,245,806 -31,888 2001 2,048,175 -197,631 2002 2,073,052 24,877 2003 2,125,421 52,369 2004 (Q1)* 2,167,929 42,508 Increase Over Previous Year 1.6% -1.4% -8.8% 1.2% 2.5% 2.0% Source: DBEDT * 2004 Annual projection based on arrivals in the first quarter of 2004. Based on estimated average increases in air visitor arrivals of 1.01% for each year from 2005 through 2007,5 and an estimate of 180,000 cruise passenger arrivals in Lahaina in 2007, cruise passengers will account for almost 20% of all visitor arrivals on Maui (Chart 7). 5 Average increase in air visitor arrivals for 1999, 2000, 2002, 2003 divided by the projected number of air visitor arrivals in 2004. The figure for 2001 was not included because it is 5 standard deviations less than the average increase in air visitor arrivals for 1999, 2000, 2002, 2003. Mayor’s Cruise Ship Task Force Findings Maui Cruise Ships and Visitors Chart 7 Cruise Passenger Arrivals as a Percentage of Maui Visitor Arrivals Projected & Estimated Figures 2004 (Q1)* 2005 2006 2007** Visitor Arrivals by Air 2,167,929 2,189,896 2,212,085 2,234,499 Increase Over Previous Year 42,508 21,967 22,189 22,414 2.0% 1.0% 1.0% 1.0% Cruise Passenger Arrivals 271,700 345,499 485,659 527,830 Cruise Passengers as Percentage of Air Visitor Arrivals to Maui 12.5% 15.8% 22.0% 23.6% Cruise Passengers as Percentage of All Visitor Arrivals to Maui 11.1% 13.6% 18.0% 19.1% * Annual projections based on arrivals in the first quarter of 2004. ** Based on cruise passengers scheduled to arrive in Kahului in 2007 and a conservative estimate of 180,000 cruise passenger arrivals in Lahaina (Chart 7). CULTURE CULTURAL PROGRAMMING ON SHIPS Visitors to Maui frequently express their desire for detailed information on the culture and history of Hawai`i. Some cruise lines, such as NCL America (NCLA), whose ships make ports of call in Maui address this desire by offering information on the culture of Hawai`i and/or its history to their passengers. NCLA has three full-time staff members, or “Hawaiian Ambassadors”, dedicated to giving port lectures on Hawaiian culture and history on the Pride of Aloha. The individual who met the Task Force is of Hawaiian heritage, and is not a kupuna. The culture center on the Pride of Aloha was designed and produced by a Native Hawaiian designer with knowledge and background in Hawaiian cultural practices. There were questions among the Task Force members about the thoroughness and accuracy with which Hawaiian culture is represented. For example, there was only one photograph of the first Capital of Hawai`i (Lahaina), with no mention of its role in the history of Hawai`i. The photograph caption stated that it was a photograph of Lahaina but it appeared to be taken at Olowalu and not Lahaina. The NCLA cultural program discusses Hawaiian respect for elements of the `aina including sacred places such as Haleakala, stones, flowers, etc. In port lectures, guests are advised not to pick up rocks, pick flowers, and that they should treat sacred sites with respect. While the cultural program on board the Pride of Aloha presents Hawaiian culture to some extent, it does not adequately represent the culture of Hawai`i. There is no multicultural specialist on the staff and no formal presentation of the different groups that contributed to the evolution of present day culture in Visitors to Maui frequently express their desire for detailed information on the culture and history of Hawai`i. While the cultural program on board the Pride of Aloha presents Hawaiian culture to some extent, it does not adequately represent the culture of Hawai`i. Mayor’s Cruise Ship Task Force Findings Culture As one resident expressed it, the more visitors understand Hawai`i and experience its cultural richness, the more they appreciate and respect who we collectively are. Onboard entertainment offered on the Pride of Aloha consisted of little that was culturally Hawaiian. Pride of Aloha staff stated that they are open to suggestions for improving cultural programming. Hawai`i (Chinese, Portuguese, Japanese, Filipino, Korean, Puerto Rican, etc.). The cultural ambassador on board the Pride of Aloha said the emphasis is placed on “Hawaiian” culture and that the topic of multiculturalism comes up from time to time in talk story sessions during breakfast. Ship staff report that there is an absence of information on the blend of cultures that are integral to understanding modern day Hawai`i. As one resident expressed it, the more visitors understand Hawai`i and experience its cultural richness, the more they appreciate and respect who we collectively are.” The printed materials made available to the Task Force that described NCLA events and activities on the Pride of Aloha project more of a holiday, festival, or as some thought, a Caribbean feel instead of a deep sense of Hawai`i, Hawaiian values, its traditions and multicultural offerings. Onboard entertainment offered on the Pride of Aloha consisted of little that was culturally Hawaiian. The cultural programming staff on this ship is open to increasing the Hawaiian content and number of local acts in its entertainment program. Ship personnel stated that the most popular onshore activities on Maui are shopping, or tours and activities. Some passengers take historical tours of Lahaina. Transportation to less popular venues or activities is not easily available to passengers and diminishes opportunities for operators of those activities and venues. NCLA contracted the Native Hawaiian Hospitality Association to develop a staff cultural education program for crew on board the Pride of Aloha. Each employee that joined NCLA after this program was established received cultural training and destination orientation prior to beginning work on board. Future hires will also receive this training. Staff on the Pride of Aloha stated that they are open to suggestions for improving cultural programming. For foreign-flag ships that tour multiple regions, such as Alaska, Hawai`i and the Caribbean, offering specialized, in depth Mayor’s Cruise Ship Task Force programming that reflects the historical evolution and culture of Hawai`i may not be seen as practical. CANOE CLUBS The canoe clubs of Maui serve many important social functions in our community. They provide Hawaiian cultural education for children and adults and strong positive education and support for at-risk children. These programs are also held up as successful drug prevention programs. Following 9/11, security zones around all harbor vessels were enlarged and became more stringently regulated – particularly for vessels carrying sensitive materials (such as fuel barges) or large numbers of people. For security reasons, the State of Hawai`i Department of Transportation (DOT) maintains the enlarged security zone 24 hours per day seven days per week, rather than only during the times when a large passenger vessel or fuel ship is in port, as required by Federal law. This means the clubs no longer have access to the calmest waters in the harbor, or the “inner harbor”, which runs between Pier 1 and Pier 2 (Appendix E). Occasionally, individual canoe and kayak paddlers enter this area, paddling underneath and between the piers when no cruise ship or fuel ship is in port. This is acceptable to the USCG, but not to DOT. If necessary, DOT will call in a deputy sheriff when this occurs. The clubs monitor ship schedules and strictly prohibit their members from entering the security zone at all times. The clubs have posted maps and information about the security zone regulations and fines. They occasionally stop nonmember paddlers and inform them about the security zone boundaries. The security rules have impacted canoe club activities by reducing the size of the harbor area available for races and practices, and the times during which the clubs are able to conduct their activities. The clubs are working within the limitations as they exist now (April 2005) but it presents them with challenges due to overcrowding. Findings Culture The security rules have impacted canoe club activities by reducing the size of the harbor area available for races and practices and the times during which the clubs are able to conduct their activities. Mayor’s Cruise Ship Task Force Findings Culture The canoe clubs fear that an increase in the number of cruise ships will require harbor expansion, and may eliminate their activities in the harbor altogether. The United States Coast Guard and DOT are agreeable to discussing a more flexible approach to applying security zone rules when cruise ships and fuel barges are not in the harbor in order to accommodate the canoe clubs. The clubs are very concerned that their activities will be negatively impacted by the number of cruise ship arrivals scheduled for Kahului Harbor by 2006 (Chart 3, Appendix D). The canoe clubs fear that an increase in the number of cruise ships will require harbor expansion, and may eliminate their activities in the harbor altogether. The United States Coast Guard (USCG) and DOT are agreeable to discussing a more flexible approach to applying security zone rules when cruise ships and fuel barges are not in the harbor in order to accommodate the canoe clubs. However, ships are projected to occupy the harbor three nights and six days per week beginning in July 2006, leaving one day per week when this flexibility can be applied. NCLA and the canoe clubs have met and agreed to communicate directly with each other to address issues about harbor use, security and other matters. NCLA hosted some canoe club members on board the Pride of Aloha for tours and dinner, and has committed to sponsoring a fundraiser for the Kahului Harbor clubs. Some crew members of the Pride of Aloha have participated in a canoe race and continue to practice paddling in Kahului Harbor. The clubs appreciate these good-will gestures on the part of NCLA, but note that they do not address the most pressing issue for the clubs – limited space for their activities in Kahului Harbor. Surfers use an area in Kahului Harbor far enough from the cruise ships that they do not currently experience a negative impact from the enlarged security zones surrounding them. Other recreational users of Kahului Harbor must also comply with post-9/11 security zone regulations.6 Recreational use of Lahaina Harbor has been impacted by the increasing numbers of cruise ships. The tender boats that carry passengers from the ships to the pier impact access to the harbor, public loading dock and fuel facilities, as well as harbor 6 Fishermen were banned from fishing off Kahului Harbor piers after 9/11. Mayor’s Cruise Ship Task Force Findings Culture waters and piers for surfers, recreational boaters7 and fishermen. The Lahaina harbor master tries to schedule around community events if those dates can be set far enough in advance. However, some groups that run events such as surfing, fishing and yachting tournaments or races have difficulty scheduling far enough in advance. Local events, such as the Lahaina Jackpot Fishing Tournament have, in some years, not been able to use the harbor because of scheduling challenges. Several local events have been put on the harbor schedule for 2005, but only by scheduling a year in advance. The biannual VIC Maui (Victoria, British Columbia to Maui) yachting race sets up an area in Lahaina Harbor to hold greeting parties over a two week period when the vessels are scheduled to arrive. The loading dock can no longer be used as a staging area for this because they would have to break down and set up every time a cruise ship arrived to make way for passenger screening and security measures. The group is now using the south breakwater for this activity. It is not as convenient as the loading dock, but it is working. 7 Vessels that carry no paying passengers. Mayor’s Cruise Ship Task Force Findings Culture 16 INFRASTRUCTURE The infrastructure in Lahaina town and Lahaina Harbor is strained year-round given the current amount of activity it must accommodate. This situation is exacerbated on days when cruise ships make calls in Lahaina. The boats that use Lahaina Harbor include recreational vehicles, which do not carry paying passengers, commercial vessels such as whale watching vessels and passenger ferries, and cruise ship tenders. Approximately 40% of the vessels in the Lahaina area are commercial vessels, whale watching, dinner cruising, ferries, etc. However, during high season, commercial vessels enter and leave the harbor approximately five times per day, therefore they constitute approximately 80% of the harbor traffic. Commercial use of Lahaina Harbor has been impacted by the increasing numbers of cruise ships. The tender boats that carry passengers from the ships to the pier impact access to the harbor, public loading dock and fuel facilities, as well as harbor waters and piers for commercial boaters. Cruise ship tenders have hindered access to pier facilities, including waste water pump-out stations for smaller commercial and private boats and regular gas pumps, which are only available on the side of the pier where the tenders dock. (Diesel is available on both sides of the dock.) Cruise ships and related activities displace and/or delay charter boats. The card reader that is used to pay for gas or diesel fuel at the harbor is located in an area that is secured when a cruise ship is outside the harbor. Fuel can only be paid for at the harbor with a credit card. Anyone pumping fuel when a cruise ship is anchored off the harbor must pass through security screening to use the card reader then exit the secured area to pump the fuel. The tender boats that carry passengers from the ships to the pier impact access to the harbor, public loading dock and fuel facilities, as well as harbor waters and piers for commercial boaters. Mayor’s Cruise Ship Task Force Findings Infrastructure Fuel trucks that deliver gas or diesel to the harbor (used by recreational and commercial vessels) cannot do so when a cruise ship is anchored outside the harbor for both safety and security reasons. To get a receipt for the fuel, one must pass through security screening a second time. The card reader is attached to telecommunications equipment, and is located within the area that is secured when a cruise ship is outside the harbor. The company responsible for this equipment, Pacific West Fuels, was approached about moving the card reader to a more convenient location, but the cost of moving the card reader and the telecommunications equipment along with the building housing it would be in the tens of thousands of dollars. There are no plans to move the card reader. Fuel trucks that deliver gas or diesel to the harbor (used by recreational and commercial vessels) cannot do so when a cruise ship is anchored outside the harbor for both safety and security reasons. Therefore, if they must deliver fuel on a day when a cruise ship is in they must do it at night. Pacific West Fuels incurs overtime charges for deliveries made after working hours. The diesel fuel tanks at the harbor have a maximum capacity of 1.5 to 2 days and the harbor has run out of diesel fuel a number of times due to the inability to refuel the tanks because of cruise ships staying overnight. Pacific West Fuels reported that fuel sales in Lahaina Harbor were 16% to 18% lower in 2002, 2003 and 2004 than fuel sales in 2001, when many fewer cruise ship stops were being made in Lahaina. These figures do not fully account for the impact of post 9/11 security measures, since security measures were only implemented in October 2004. Lahaina Harbor receives “rent” from Pacific West Fuels at a rate of 5% of sales. Rent paid to the harbor was 19% less in 2003 than in 2001. With the rise in fuel prices in 2004, rent to Lahaina Harbor rose and was 11% less than in 2001, despite the fact that the number of gallons sold in 2004 was 19% less than was sold in 2001. When a cruise ship is anchored off Lahaina Harbor, the security area that must be set up for passenger screening prevents recreational and commercial harbor users and ferry commuters from accessing the public loading docks where recreational and Mayor’s Cruise Ship Task Force Findings Infrastructure commercial vessels fuel, where cargo is loaded and unloaded and where passengers embark and disembark. Parasail operators must refuel their boats several times a day. On days when a cruise ship is in the harbor, the tender boats increase traffic into and out of the harbor so these operators spend more time waiting to enter and exit the harbor and waiting to fuel on cruise ship days than on days when no cruise ship is in. This extends the time required to conduct a parasail excursion. Therefore, on cruise ship days these operators run one less excursion than on days when there is no cruise ships in Lahaina. The result is in a drop in business on cruise ship days for these operators. To maintain a 500-yard security zone around cruise ships and keep the ships from blocking the lines of approach to Lahaina Harbor, cruise ships anchor at least 1000 yards north or south of the buoy marking the entrance to the harbor channel. Cruise ship passengers arrive at the harbor dock via tender boats. These boats carry up to 150 passengers and are part of the equipment carried onboard cruise ships. The tender boat captains are members of cruise ship crews. A typical cruise ship arrives in Lahaina between 6 and 7 a.m. and departs between 5 and 11 p.m. During these hours, tender boats continuously ferry passengers back and forth between the cruise ships and the harbor pier. Commercial operators in Lahaina Harbor have expressed concern about safety regarding tender boats. They state that minor incidents in which tenders collide with the docks or other vessels in the harbor occur frequently. From 1999 through May 2005, 13 tender boat incidents were significant enough to be investigated by the US Coast Guard. Twelve of these incidents occurred in Lahaina Harbor and one in Hilo Harbor. Ten of the incidents in Lahaina occurred in 2004 and 2005. The higher frequency of accidents in Lahaina Harbor compared to other harbors in the State is attributable to several factors. Tender boat captains are not familiar with Lahaina Harbor on a day-to-day basis and are not Coast Guard-certified captains (they are certified in the country in which the cruise ship is registered). The line of approach in and out of the Lahaina To maintain a 500-yard security zone around cruise ships and keep the ships from blocking the lines of approach to Lahaina Harbor, cruise ships anchor at least 1000 yards north or south of the buoy marking the entrance to the harbor channel. From 1999 through May 2005, 13 tender boat incidents were significant enough to be investigated by the US Coast Guard. Twelve of these incidents occurred in Lahaina Harbor… Mayor’s Cruise Ship Task Force Findings Infrastructure Private security firms are hired by cruise lines to work on days when cruise ships are anchored outside Lahaina Harbor. Harbor channel requires that vessels make a sharp turn just outside the channel. The small size of the harbor, the volume of vessel traffic it receives on cruise ship days and challenging weather conditions (when they occur) also contribute to these situations. Surfers have reported they are sometimes unable to use the harbor due to boat traffic, wakes, bilge, trash in harbor waters or concern about being coated with petroleum film that is sometimes floating on the surface of the water. It is unclear whether this is due to the private or commercial vessels in the harbor, tenders, cruise ships, runoff or some combination of all of these. The numbers of ships and passengers have increased the need for additional infrastructure. The large number of passengers (not the ships per se) has also increased maintenance requirements in the harbor. The fees that ships pay the State are meant to cover maintenance of the harbors (Chart 9, Appendix F). Even in the absence of cruise ships, parking in Lahaina town is an issue. When cruise ships are anchored off the harbor, parking is an even greater challenge. Private security firms are hired by cruise lines to work on days when cruise ships are anchored outside Lahaina Harbor. Employees of these firms park in the harbor parking lot when they are on duty. Security personnel were issued temporary permits for this, but only for certain slots. Some personnel were parking in prohibited areas (marked with no parking signs), but were not being cited for it. This contributes to parking difficulties near the harbor. Since this situation was reported to the Task Force, these no parking rules are being enforced and there is less congestion for pedestrians in that area now. However, the parking challenges in the harbor have not improved much. Overall, traffic planning and management are issues for Lahaina town. These issues affect the daily life of residents and their circulation through the town. The cruise ships add to the severity of these issues. The State and the County share the planning and management responsibilities in this jurisdiction. Mayor’s Cruise Ship Task Force Findings Infrastructure The existing toilet facilities in Lahaina Harbor near the dock are in poor condition and cannot accommodate the volume of traffic at the harbor. Cruise passenger traffic worsens the situation. Federal funds have been allocated to improve infrastructure in Lahaina Harbor related to the ferries, including a separate pier for the interisland ferries. The State Legislature also generously supported interisland ferry pier improvements for Lahaina, Ma`alaea and Manele harbors. Plans for these improvements have been drawn up. They include new toilet facilities, renovations to the main pier and to the interisland ferry pier. Pier improvements must be made in order for the new toilet facilities to be installed. The work will occur in the State conservation district and in the Lahaina National Historic Landmark District. An environmental impact statement for this project is being prepared. The Cultural Resources Commission has given conditional approval to the proposed changes. In public hearings Lahaina community members expressed strong support for no more than one ship in Lahaina per day. Some merchants requested that ships be limited based on the number of passengers rather than the number of ships. Some feel that two smaller ships might be accommodated, but that no more than 2,200 passengers should arrive at any one time. Some have suggested improvements to the Mala Wharf area for cruise ship tender arrivals to relieve congestion in Lahaina town center. Others feel Mala Wharf is an important area for recreational activities and are concerned that improvements to Mala Wharf will limit those activities in this area. (Appendix G). One person, the harbor master, is responsible for scheduling in Lahaina Harbor. Availability of space determines whether a ship is put on the harbor schedule. Scheduling is done on a first- come-first-served basis. Lana`i and Moloka`i residents depend heavily on the ferries for access to and from Maui to meet a variety of needs in their daily lives Federal funds have been allocated to improve infrastructure in Lahaina Harbor related to the ferries, including a separate pier for the interisland ferries. In public hearings Lahaina community members expressed strong support for no more than one ship in Lahaina per day. Mayor’s Cruise Ship Task Force Findings Infrastructure When cruise ships are in the harbor, there is no designated loading or unloading zone near the dock where ferry passengers can leave their car while they unload provisions or drop off passengers. Trips by Lana`i residents into Maui to secure household goods, food and other provisions not available on Lana`i are daily occurrences. Residents return with boxes and other containers to transport purchases. The medical facilities and services on Lana`i are extremely limited and Lana`i residents rely heavily on the ferry for affordable access to medical care, all medical specialty services, medical emergencies and for other services not available on Lana`i. Although Moloka`i has a full service hospital, those residents come to Maui for specialty outpatient care. Moloka`i residents also rely on the ferry for affordable and timely access to these services. Round trip airfare between Maui and Lana`i currently cost $340 and often require an added flight through Oahu in order to get to and from Lana`i. Airfares, therefore, make the $40 round-trip ferry ticket a critical transportation alternative for Lana`i’s residents. When the cruise ships are in Lahaina, Lana`i and Moloka`i ferry passengers experience inconvenience, delays, and sometimes hardship. When no cruise ship is in the harbor Lana`i residents unload their goods and drop off passengers near the dock, and leave them on the pier near the Lana`i ferry booth on the upper dock of the harbor. As a courtesy to their customers, the ferry agents oversee passenger cargo as informal security while the residents return rental cars or park their vehicles. Moloka`i residents leave their cargo on the dock adjacent to the ferry berth and wait for the ferry there. Dependent family members (very young, elderly or ill) traveling with Moloka`i or Lana`i residents, can wait (usually with a second adult to oversee them) in the shade of the ticket booth on the upper dock while the resident returns or parks a vehicle (usually several blocks away). The upper dock is also preferable as a waiting area for those traveling with small children as the lower piers have no railing. When cruise ships are in the harbor, there is no designated loading or unloading zone near the dock where ferry passengers can leave their car while they unload provisions or Mayor’s Cruise Ship Task Force Findings Infrastructure drop off passengers. The upper dock is enclosed within the security zone, leaving no place for residents to store cargo or to wait safely with children, elderly or ill family members. When the cruise ships are in, the pier where Moloka`i residents usually wait is also enclosed in the security zone, leaving no access to the pier until the ferry has arrived. They generally wait for the ferry to arrive on the lawn in front of the library. These passengers all experience long delays when boarding the ferries on cruise ship days due to the added security measures. When cruise ships are in Moloka`i and Lana`i residents must either stop or park in No Parking areas or in the bus parking area because there is no designated place for them to park or unload. Maui residents working on Lana`i and Moloka`i, and Moloka`i and Lana`i residents who work on Maui depend on reliable and timely ferry access between these islands for their livelihoods. Construction workers from Moloka`i (where unemployment is always considerably higher than the rest of the County or the State8) have lost the opportunity for construction work on Maui because of delays in Lahaina Harbor when cruise ships are in. Other comments from Lana`i and Moloka`i ferry passengers about days when a cruise ship is in the harbor: • Bus coordinators and drivers have argued with residents and ejected them from the area when they are loading or unloading goods and family members. • Residents have received parking tickets when leaving the car for less than 5 minutes to get small children or elderly family members to the ferry. • The flammable fuels on the crowded dock pose a fire hazard. 8 Hawai`i Department of Labor unemployment statistics for May 2005 (not seasonally adjusted): State 2.5%; Honolulu 2.4%, Hawai`i 2.9%; Kauai 2.4%; Maui Island 2.1%, Lana`i 2.4%; Moloka`i 6.9% Maui residents working on Lana`i and Moloka`i, and Moloka`i and Lana`i residents who work on Maui depend on reliable and timely ferry access between these islands for their livelihoods. Mayor’s Cruise Ship Task Force Findings Infrastructure Pier 1 in Kahului Harbor is designed for deep draft vessels and is the only pier where the water is deep enough to accommodate large vessels with heavy loads. Demand for dock space during daylight hours at Pier 1 occasionally exceeds capacity. • Cruise lines exclude ferry passengers from areas where they usually wait, and provide tents for their passengers, which ferry passengers have no access to. • Ferries waiting outside Lahaina Harbor for 30 minutes or more for tenders to clear the dock. Kahului Harbor is the only commercial shipping harbor on Maui. As such, it is essential for life-sustaining cargo for residents of Maui County. Cargo shipping into and out of Kahului Harbor is also intricately linked to the economic life of our State and county. Pier 1 Capacity and Scheduling Pier 1 in Kahului Harbor is designed for deep draft vessels and is the only pier where the water is deep enough to accommodate large vessels with heavy loads. The vessels that dock at Pier 1 are listed in Chart 8. Pier 1 has three berths – 1A, 1B and 1C. Cruise ships usually dock at berth 1A, which is adjacent to the passenger receiving facilities and closest to land. Berth 1C lies at the end of Pier 1 farthest from land, and berth 1B lies between 1A and 1C (Appendix E). Although it has three berths, Pier 1 can only accommodate two long ships at one time. If one of the long ships is a cruise vessel, one other large cargo vessel can dock at Pier 1. Pier 1’s passenger and security facilities are designed to receive passengers from one ship at a time, therefore current harbor policy is to accommodate only a single cruise ship at one time. Demand for dock space during daylight hours at Pier 1 occasionally exceeds capacity. This causes ships that normally dock at Pier 1 to dock elsewhere. There are two deep draft vessels that must dock at berth 1A, the sugar ship and the MECO fuel barge. With cruise ships projected to be in port four Mayor’s Cruise Ship Task Force Findings Infrastructure Chart 8 Vessels That Use Pier 1 of Kahului Harbor* Type or Current Current Port Call Time in Capacity Purpose of Port Call Time in Frequency Port in Load Vessel Frequency Port in 2006 2006 2000-3000 1-2 per 2-3 days 3-4 days 6-7 days Cruise Ships passengers week per week per week per week and crew 34,000 Frequency expected to 1 per 6-8 Sugar Barge tons of 2 -2.5 days decrease in the long weeks sugar term ~17,000 2-3 per Coal Ship 4-5 days tons of coal year ~190 2-3 per 12-16 Matson Barges shipping week hours containers Frequency expected to 1,600 tons 10-12 Tin Ship 3 per year decrease in the long of tin plate hours term 3000 Pascha Roll On 1 per 2 Frequency expected to passenger 8 hours Roll Off Ship weeks increase vehicles Vessels That Dock at Pier 1 and Pier 3 Diesel & Frequency could 1 per 10 ~60,000 15 - 20 increase to 1/8 or 1/9 Bunker Fuel days on barrels hours days depending on Barge for average* demand MECO Diesel, Gasoline & Jet ~60,000 12-16 Fuel Barges for 2 per week barrels hours Tesoro & Chevron 4,300 tons 2-3 per 10 Sand Barge of sand month hours 4,500 tons Scrap Metal 1 per 3 of scrap 2-3 days Barge months metal *Excluding fishing fleet vehicles **Depends on demand for electricity; frequency increases in summer months. Mayor’s Cruise Ship Task Force Findings Infrastructure Availability of space determines whether a ship is put on the harbor schedule. Scheduling is done on a first- come-firstserved basis. to six days per week beginning in July 2006, the ships that must dock in berth 1A face increasing challenges scheduling the time required for loading or unloading at Pier 1. To meet these challenges, all harbor users and dock workers work closely with each other to minimize the impacts to operations. The arrival frequency of the barge that delivers diesel fuel to MECO varies with demand for electricity, but on average it arrives once every 10 days. It has a maximum capacity of approximately 60,000 barrels (2,520,000 gallons). When the barge docks at Pier 1, it can deliver a maximum capacity load. When berths at Pier 1 are not available for the barge bringing in fuel for MECO it must dock at Pier 3. However, the water at Pier 3 is not deep enough to accommodate this barge when it is full. When the barge bringing fuel for MECO docks at Pier 3 it can deliver a maximum of 50,000 barrels or about 15% less than maximum capacity. This increases the cost of fuel shipment. The barges that make weekly deliveries of gasoline, diesel and jet fuel to the Chevron and Tesoro terminals on Maui usually dock and unload at Pier 3. When the ocean surge is high fuel barges cannot unload at Pier 3 without risking a spill. To unload safely the barges must dock at Pier 1. In the last winter season (November 2004 to January 2005) there were three or four occasions when these conditions prevailed and Pier 1 berths were occupied. The fuel barges either waited until a berth was available or delayed the arrival of fuel. MECO has also experienced this with its fuel barge. Sugar can only be loaded onto the sugar ship from berth 1A and requires two to three days in port to take on its load. The current plan to accommodate both a sugar ship and a cruise ship is to dock cruise ships at berth 1C when a sugar ship is loading at berth 1A. This is not ideal, as passengers will disembark in a cargo area which is not designed to accommodate them and raises some safety and security concerns as well as being an inconvenience to the passengers. However, NCL America (NCLA) has agreed to this. The sugar ship loads once every six to eight weeks. NCLA has scheduled berthing space in Kahului Harbor through 2010. By July 2006 three NCLA ships are expected to dock at Mayor’s Cruise Ship Task Force Pier 1 each week for two days (one night) each. Therefore, Pier 1 will be occupied by a cruise ship six days (three nights) per week (Appendix D). Other cruise lines are also seeking this berthing space. One person, the Kahului Harbor Master, is responsible for scheduling in Kahului Harbor. Availability of space determines whether a ship is put on the harbor schedule. Scheduling is done on a first-come-first-served basis. Cargo shippers cannot schedule arrivals as precisely, or many years in advance as can cruise ships. Large cargo vessels that arrive from long distances cannot time arrivals as precisely as cruise ships due to delays encountered elsewhere. Fuel ships must time their arrivals to keep costs as low as possible and ensure adequate fuel supply. The timing of their arrivals varies somewhat according to demand for fuel. Matson ships all berth at Pier 1C. As cruise ships rarely use this berth, they have experienced no delays or scheduling difficulties in the harbor. Others report increasing challenges with scheduling. Pier 1 currently appears to be operating near maximum capacity most of the time. Users of the pier facilities and workers in the harbor are striving to make the schedule work. It seems that as long as there is no disrupting influence, scheduling in Kahului Harbor is manageable. However, anything that changes the schedule on short notice, such as weather or emergencies, creates challenges. Scheduling challenges and resulting delays in Kahului Harbor impact businesses, their sub-contractors and employees who work in the harbor. These groups experience lost revenue and/or increased costs due to need or inability to reschedule projects and the need to pay standby or overtime employee costs. Findings Infrastructure Cargo shippers cannot schedule arrivals as precisely, or many years in advance as can cruise ships. Pier 1 currently appears to be operating near maximum capacity most of the time. Scheduling challenges and resulting delays in Kahului Harbor impact businesses, their subcontractors and employees who in the harbor. Mayor’s Cruise Ship Task Force Findings Infrastructure Cargo shipping is expected to increase ... This and the anticipated increases in cruise ship port calls raise concerns about the capacity of Kahului Harbor to meet island demands for cargo. Facilities The passenger toilet facilities on Pier 1 are located outside the passenger arrival terminal. They consist of a men’s room with two stalls, one urinal and a basin; and a women’s room with multiple stalls. DOT installed a trailer with portable toilets in the parking lot adjacent to the permanent toilets. These do not operate on a septic system and must be pumped out. The toilet facilities available to workers on Pier 1 currently consist of one unisex bathroom with one toilet and two urinals. This must accommodate 20 to 30 stevedores and other workers in the area (truckers, etc). It is located at the end of the dock where cargo is unloaded. Recently DOT installed a single portable unit with a toilet and a urinal. Workers consider these facilities barely adequate for themselves and inadequate for customers arriving in this area (primarily to pick up cars). To use facilities in the passenger arrival terminal, customers must walk 100 yards from where they pick up their cars. When no cruise ship is in the harbor workers can use the toilets in the passenger arrival terminal. When a cruise ship is in the harbor, the passenger arrival terminal is locked off from the cargo loading area for security and safety reasons. Workers then have no access to those toilets. DOT plans to install a sewer line and will put in more toilets for passengers and workers when the sewer line is completed. The mix of pedestrian and cargo traffic makes the harbor and adjacent areas present challenges and risks for all concerned. The area is unsuitable for pedestrians. Cargo operations are very crowded and traffic in the harbor area is very challenging. Traffic on and near Ka`ahumanu Avenue is considerably heavier on days when cruise ships are in the harbor. The volume of traffic is expected to increase with the advent of Hawai`i Superferry. The harbor agents, shippers, stevedores, truckers and all other commercial users of the harbor cooperate and work very diligently to make harbor operations run as effectively and smoothly as possible. Mayor’s Cruise Ship Task Force Findings Infrastructure Cargo shipping is expected to increase with increases in the number of infrastructural projects on Maui, and resident and visitor population growth. This and the anticipated increases in cruise ship port calls raise concerns about the capacity of Kahului Harbor to meet island demands for cargo. It is unclear how long Kahului Harbor will have sufficient flexibility and capacity to adjust or add to the schedule to accommodate increasing cargo arrivals in a timely manner and cost-effective manner. Ground Transportation Cruise passengers use many types of ground transportation once on island. Ground transportation is usually included in the cost of shore excursions booked prior to leaving the ship. It is not available to destinations that can only handle a small number of visitors, or those that are lesser known. NCLA reports that approximately 90% of its passengers use private bus transportation on the island. Cruise passengers are transported to luaus in Makena and Ka`anapali and to other activities on busses. NCLA recently purchased Polynesian Adventure Tours augmenting its ability to transport its passengers. Some passengers use cabs and some have reported being taken on longer than necessary rides. There is no regulation governing taxis in this regard. Speedi Shuttle recently initiated a loop shuttle service that runs throughout central Maui for cruise passengers.9 There is a fee for the service. Ship passengers booking on line in advance of their travel can obtain their own transportation – mopeds or rental cars. Passengers using mopeds in Lahaina compete with local residents who use them regularly. 9 This was the result of a need identified by this Task Force. It is unclear how long Kahului Harbor will have sufficient flexibility and capacity to adjust or add to the schedule to accommodate increasing cargo arrivals in a timely manner and cost-effective manner. NCLA recently purchased Polynesian Adventure Tours augmenting its ability to transport its passengers. Mayor’s Cruise Ship Task Force Findings Infrastructure Revenue generated from cruise ship fees (that support harbor operations) differ significantly based on the country in which a ship is registered. …the DOT harbor system is not reliant on monies from the State’s General Fund. The Task Force did not obtain detailed information on traffic circulation and visitor traffic patterns. Many residents and users of both harbors that regularly drive in the vicinity of either harbor expressed concern about impacts of cruise passengers on traffic. Many harbor users in Lahaina report to the harbor master that they simply stay away on a “cruise ship day.” INFRASTRUCTURE FUNDING Cruise ships and their passengers add to the need for infrastructure. Passenger facilities were constructed in Kahului harbor for American Hawai`i Cruises and were paid for by harbor users. Pending improvements for Lahaina Harbor are supported by Federal and State funds. Revenue generated from cruise ship fees (that support harbor operations) differ significantly based on the country in which a ship is registered. In addition to paying harbor entry and occupancy fees, passenger head taxes and fuel taxes, companies sailing US-flag ships (NCLA) contribute to the State budget in the form of payroll, excise and corporate taxes to name a few. Companies sailing foreign-flag ships only pay port entry and occupancy fees, passenger head taxes and fuel taxes (Economics, pp. 33-34). Kahului Harbor Funding The Harbors Division of the Department of Transportation (DOT), which includes Kahului Harbor, is financially self- sustaining. Harbors Division imposes rates, rentals, fees and charges, or a combination of those, for the use and services of the harbors within the system. This combination of charges is set at rates necessary to pay all the expenses of the harbor system. With the exception of the recently appropriated funds for statewide harbor improvements related to the Hawai`i Superferry, the DOT harbor system is not reliant on monies from the State’s General Fund. (Specific fees and reimbursements paid by cruise ships are listed in Chart 11. Rules governing Mayor’s Cruise Ship Task Force Findings Infrastructure fees are listed in Appendix H and are available at the DOT website.10 Lahaina Harbor Funding In addition to larger recreational harbors such as Lahaina and Ma`alaea Harbors, the Department of Land and Natural Resources (DLNR) budget supports smaller harbors, boat ramps and other harbor-related expenses statewide. Revenues supporting smaller DLNR harbors, such as Hana Harbor or Manele Harbor, are generated in harbors with more extensive commercial and/or recreational activities, such as Lahaina and Ma`alaea. In FY 2003 and FY 2004 the harbors generating revenue that was spent in other areas of the State included Ala Wai (O`ahu), Lahaina (Maui), Keauhou (Hawai`i), Ma`alaea Harbor (Maui), and Kukui`ula (Kaua`i). All other small boat harbors generated less than was spent on them in these years (Chart 9 and Appendix F). Chart 9 Revenues Generated and Spent in Lahaina Harbor Lahaina FY 2003 Lahaina FY 2004 Revenue: Generated in Harbor $1,176,568 88.6% $991,904 89.4% Allocated from Administration $152,112 11.4% $118,079 10.6% Total Revenue $1,328,680 100.0% $1,109,983 100.0% Funds Spent for: Lahaina Harbor $470,463 35.4% $550,451 49.6% Statewide Administration $210,505 15.8% $280,224 25.2% Other Harbors $647,712 48.7% $279,308 25.2% Source: Attachment to DOBOR Draft Administrative Rules Chapter 234, New Proposed Base Fees 11/09/04 In FY 2004 $1,109,983 in revenue was generated in Lahaina Harbor.11 $991,904 was generated by fees paid for use of the 10 http://www.hawaii.gov/dot/harbors/adminrules/hadmin44.htm. 11 According to DLNR commercial revenues (slip fees and percentage rent) for FY 2004 was $442,161, recreational revenues (slip fees and other charges) were $118,512, and other revenues (land leases and revocable Mayor’s Cruise Ship Task Force Findings Infrastructure harbor. $118,079 of the revenue was allocated to the Lahaina Harbor from a statewide DOBOR administration fund.12 Of the total revenue in Lahaina Harbor in FY2004, 49.6% was spent on the harbor, 25.2% was spent for statewide administration and 25.2% was spent in other DOBOR harbors. Economic Impacts Through Infrastructure The large numbers of passengers and crew (Chart 10) that arrive on cruise ships contribute to the use and cost of maintaining existing infrastructure. The impact of the numbers of people, apart from the impact of the ships themselves, creates demand for more and/or new infrastructure. Those interviewed by the Task Force believe that economic impacts of cruise ship arrivals on Maui have occurred through the following: • displaced and/or delayed interisland ferries • reduced passenger access to interisland ferries • economic burdens for ferry passengers carrying cargo for sale to or from Moloka`i and Lana`i • displaced and/or delayed charter boats in Lahaina • blocked access to piers, fuel supplies and pump out stations • delayed cargo loading and unloading in Kahului Harbor • ships “bumped” to berths with shallower drafts in Kahului Harbor • increased costs for truckers and other shippers • increased costs of goods for some businesses permits and cruise ship fees) were $431,231. Cruise ship revenue for Lahaina in FY 2004 was $309,355. 12 According to DLNR this amount includes liquid fuel tax revenue, boating special fund revenue interest earned, and Federal reimbursements. In FY 2003 the Federal government reimbursed DOBOR $60,615 from the Federal Fish Restoration Act and $898, 600 from the Recreational Boating Safety Act. Mayor’s Cruise Ship Task Force Findings Infrastructure Chart 10 Cruise Passengers and Crew Scheduled to Arrive on Maui13 0 150,000 300,000 450,000 600,000 750,000 2003 2004 2005 2006 2007 Pier 2C and the Canoe Clubs In September 2004 the Draft Environmental Assessment for the Kahului Harbor portion of the 2025 Master Plan, indicated that the Department of Transportation would build a new pier in Kahului Harbor, Pier 2C. The Master Plan stated that “Pier 2C will serve inter-island ferry operations and overflow cruise ships.” Canoe club representatives believed this would eliminate their ability to continue the clubs’ activities in the harbor. As the harbor is a crucial facility for Maui, with finite capacity and increasing demands on that capacity, the Task Force felt it was important to consider the potential impacts of Pier 2C in the course of its work. It turned out that the improvements under consideration were not directly related to the cruise ships, and were in fact being planned to accommodate the proposed Superferry project. 13 The Lahaina portion of the 2007 figure is estimated to be 200,000 passenger and crew arrivals. All other numbers based on Lahaina and Kahului Harbor schedules as of April 2005 and the maximum crew and passenger capacity of those ships (Appendix I). The clubs feel that the addition of Pier 2C to Kahului Harbor would effectively eliminate their activities. Mayor’s Cruise Ship Task Force Findings Infrastructure Early in 2005 DOT announced they would not be moving forward with the construction of Pier 2C. Ten years ago, at the request of the State and with financial support from the county, the Hawaiian Canoe Club and Na Kai Ewalu moved from their original location (near Pier 2) to their present location closer to Kahului Beach Road. In March 1994, A & B Properties donated the land (Parcel 17 of TMK: 3-7-08) to the County of Maui by Warranty Deed. There is a clause in the deed stating that if this property is not used for organized Hawaiian outrigger canoeing activities for 24 consecutive months, the land automatically reverts back to the grantor. The Hawaiian Canoe Club also has a license agreement to use a portion of the adjacent park area for their volleyball court. This agreement is month to month and may be canceled with 30 days notice. In addition to moving 10 years ago, the clubs have adjusted to 9/11 security regulations. The clubs either stop practice or race activities or move out of the way for 15 minutes or so while a ship is entering or leaving port. This is done to ensure the paddlers are safe and to accommodate safe passage of vessels entering or leaving the harbor. When Pier 2C plans for Kahului Harbor were in progress the clubs were notified that the area of the harbor available to them would be restricted. Pier 2C would extend so far into the area used by the clubs as to make it inadequate for their use (Appendix E). The clubs feel that the addition of Pier 2C to Kahului Harbor would effectively eliminate their activities. There are no other waters on the north shore of Maui that would be safe for use as a canoe club site. Early in 2005, DOT announced they would not be moving forward with the construction of Pier 2C. Health Care Health care was not explored thoroughly as a topic by the Task Force. Maui’s capacity, however, to handle a sick ship or other health emergency of extensive proportion is a concern. Some passengers who need hospital care due to injury or an ailment during their voyage must leave the cruise and make Mayor’s Cruise Ship Task Force Findings Infrastructure their way back home on their own. The Maui Visitors Bureau does their best to work with the community to assist these passengers. Some crew members don’t have access to a dentist onboard. NCLA contracts with dentists for their crew members in every port. Mayor’s Cruise Ship Task Force Findings Infrastructure 36 ECONOMIC Taxes, Fees and Other Revenue There is no direct revenue that goes into the budget of the County of Maui from cruise ship activity with the exception of fees paid to the County of Maui Department of Liquor Control for liquor licenses (approximately $1,200 per ship per year). The revenue from cruise ship activity to the State of Hawai`i varies greatly depending on whether the ship is a foreign- or US-flag ship. As of April 2005, there is only one US-flag large passenger vessel in the entire world, the NCL America (NCLA) ship, Pride of Aloha. By the latter half of 2006 NCLA expects to have launched two more US-flag ships, the Pride of America to be launched July 2005 and the Pride of Hawai`i to be launched July 2006. Ships and hotels provide similar services, including sleeping accommodations, restaurants and bars, shopping and recreational activities. The taxes and fees that US-flag and foreign-flag cruise ships are subject to are listed in Chart 11. The chart also compares these taxes and fees to those paid by hotels. US-flag ships pay the same fees and taxes that foreign-flag ships pay, but the harbor fees for US-flag ships are less than those charged to foreign-flag ships (Charts 11 and 12). US-flag ships pay more in State and Federal taxes than do foreign-flag ships (Chart 11). Income generated by US-flag ships (NCLA) and their employees are subject to State taxes. The income of foreign- flag ships and their employees are not taxed by the State of Hawai`i or the US government (Chart 11). US-flag ships pay more in state and Federal taxes than do foreign-flag ships. Income generated by US-flag ships (NCLA) and their employees are subject to state taxes. Mayor’s Cruise Ship Task Force Findings Economic Chart 11 Taxes, Fees and Reimbursements Paid by Cruise Ships and Hotels Payment for Paid to Funds Support US Ships Foreign Ships Hotels Employment State of Hawai`i Department of Labor Employment and Training Fund Y N Y Unemployment Unemployment Fund Y N Y Employee Income Taxes State of Hawai`i Department of Taxation ? Y N Y General Excise Tax General Fund Y N Y Corporate Tax Y N Y Transient Accommodation Tax ? N N Y Fuel State of Hawai`i Department of Transportation Highway Special Fund Y Y N Liquor License County of Maui Department of Liquor Control Sole Support for Department of Liquor Control $25/d, $100/mo or $1200/yr* $25/d, $100/mo or $1200/yr* $1200 per year Percent of Liquor Sales Fee ~ 1% (varies annually) Property Tax County of Maui Director of Finance Police, fire, street maintenance N N Y Fees and Reimbursements in Kahului Harbor Port Entry State of Hawai`i Department of Transportation Harbor Special Fund - to support harbor maintenance and expenses $344** $344** n/a Dockage (24 h) $1725** $2875** n/a Per-passenger Wharfage $1.85 per visit $5 per visit n/a Electricity $130 to $260 $130 to $260 n/a Water $300 to $700 $300 to $700 n/a Fees in Lahaina Harbor Per-passenger Wharfage State of Hawai`i Department of Land and Natural Resources, Division of Boating and Ocean Recreation Lahaina and other small boat harbors throughout the state $1.50 $1.50 n/a Dockage (965 foot ship for 12 h) $847 $847 n/a *When in Maui County waters. **For ships 850 to 900 feet long. Mayor’s Cruise Ship Task Force Findings Economic A brief survey of passenger fees in comparable U.S. ports indicates that cruise passenger fees in Hawai`i harbors are approximately one third the prevailing rates in other U.S. ports for foreign-flag ships in transit (IT). The fees for home-ported (HP) cruise ships in Hawai`i are 3 to 11 times lower than the fees charged elsewhere (Chart 12). In 1997 the per-passenger fee charged for home-ported vessels was reduced in Hawai`i harbors from $5.00 per-passenger (including embarkation and disembarkation) to $1.85. Chart 12 Cruise Passenger Fees in Hawai`i and Other Ports14 $14.00 $6.00 $20.62 $1.85 $5.00 $5.00 $15.00 $18.06 $3.50 $0 $5 $10 $15 $20 $25 Vancouver US Virgin Islands Seattle (HP) Seattle (IT) Puerto Rico Los Angeles Hawai`i 2005 (HP) Hawai`i 1997 (HP) Hawai`i 2005 (IT) Passenger, Crew and Cruise Line Expenditures Cruise passengers on US-flag ships generate revenue to the State of Hawai`i via taxes on the expenditures they make during 14 Ports on the US Mainland and in Canada have more extensive infrastructure designed to accommodate passenger vehicles than do Hawai`i ports. In 1997 the per-passenger fee charged for home- ported vessels was reduced in Hawai`i harbors from $5.00 per- passenger … to $1.85. Cruise passengers on US-flag ships generate revenue to the State of Hawai`i via taxes on their expenditures they make during the trip, including cruise ship fare, on board and on shore expenses. Mayor’s Cruise Ship Task Force Findings Economic the trip, including cruise ship fare, on board and on shore expenses. These are all subject to General Excise Tax (GET). In 2004, these expenditures amounted to $373 per person per day.15 By comparison, only the on-shore expenses (approximately … only the on-$105 per person per day in 2004) of foreign-flag cruise shore expenses passengers generate GET revenue. (approximately $105 per person In 2004 hotel guests spent $165 per person per day generating per day in 2004) more revenue to the State of Hawai`i from taxes than the on of foreign-flag shore expenditures of foreign-flag ship passengers (Chart 13). cruise passengers generate GET Chart 13 Statewide Passenger and Crew Spending revenue. The largest portion of onshore spending by cruise passengers and crew is on Tours and Activities. The largest portion of crew spending is on Tours and Activities, including Entertainment. 2002 2003 Cruise Visitor - On shore per person per day $99 $101 Hotel Visitors - per person per day 165.6 170.3 Cruise Visitors - Total On Shore $169,100,000 $169,300,000 Crew - On shore per person per day $68 $64 Crew - Total On Shore $38,800,000 $33,500,000 Source: DBEDT Cruise passenger spending on shore amounted to approximately $169 million in 2002 and 2003.16 The largest portion of on-shore spending by cruise passengers and crew is on Tours and Activities. The largest portion of crew spending is on Tours and Activities, including Entertainment (Chart 14). Maui Visitors Bureau, the State legislature and other groups have tried and been unsuccessful in getting detailed figures 15 Source: DBEDT 16 2002 and 2003 Hawai`i Cruise Industry Impact Study, DBEDT Mayor’s Cruise Ship Task Force from the State for comparison of the amount of State revenues generated by ships and by hotels. Hotels, shops and restaurants on Maui contribute to the community or participate in ways that most ships have not. Hotels regularly engage in community activities and charities, and must undergo environmental impact studies and pay infrastructure impact mitigation fees. Foreign-flag ships do none of these. All new hotels are required to provide land-based permanent employee housing with the number of homes equivalent to at least 25% of the number of visitor units. Cruise ships provide sleeping quarters for their employees. In the last 12 months NCLA has donated approximately $750,000 to charities and the community activities throughout the State. It generally donates to organizations with statewide reach, so it is unclear how much of this has had an impact in Maui County. Chart 14 Passenger and Crew Spending Breakdown15 Findings Economic In the last 12 months NCLA has donated approximately $750,000 to charities and the community activities throughout the State. Visitors Crew Lodging 17.9% 6.2% Food & Beverage 12.8% 11.9% Entertainment 3.9% Transportation 11.2% 10.5% Shopping 17.7% 3.7% Tours and Activities (& Entertainment for Crew) 26.1% 56.4% Other 10.3% 11.2% Cruise lines make their major infrastructural investments in assets that are mobile, i.e. ships, whereas the major infrastructural investments made by hotel operations are land- based tourist accommodations and amenities, i.e. largely immobile assets. This gives cruise line businesses the Mayor’s Cruise Ship Task Force Findings Economic Businesses with increased revenue from cruise ships include retail shops, hotels, airlines, restaurants, taxi companies, activity operators, tour bus companies, car rental agencies and luaus. The Activity and Attractions Association of Hawai`i estimated that in 2003 the cruise industry increased revenue in this industry on Maui by $15,525,000. appearance of being more easily transferred to other locales than the land-based accommodation businesses. Hotels continue to generate jobs and revenue for the County and the State even if they are sold or converted for time-share or condominium uses. The Federal regulation that permitted Norwegian Cruise Lines to complete the construction of their new ships in a foreign shipyard also restricts NCLA operations within the US to the State of Hawai`i.17 NCLA could sail these ships in Europe, however they would have to sail under the US flag. This would put NCLA at a competitive disadvantage to other cruise ships, most of which are registered in countries with less restrictive regulation than the US. The cruise ship business has increased total visitor spending on Maui. Businesses with increased revenue from cruise ships include activities and attractions, retail shops, hotels, airlines, restaurants, taxi companies, tour bus companies, car rental agencies and luaus. The groups that appear to benefit most from cruise passengers are activity and tour operators, ground transportation companies and some retailers and restaurants (Chart 14). The Activity and Attractions Association of Hawai`i estimated that in 2003 the cruise industry increased revenue in this industry on Maui by $15,525,000 (Chart 15). The businesses that seem to do best are those closest to the harbors and those that are easily accessible by ground transportation. For example, Speedi Shuttle service has a kiosk at Kahului Harbor but does not sell tickets on board. Space and competition in Lahaina Harbor prevent most businesses from setting up there. In addition to spending by cruise passengers, which generates State GET revenue, cruise lines themselves also generate revenue to the State. In early 2005 the Department of Business Economic Development and Tourism (DBEDT) published a 17 In 1999 American Classic Voyages (ACV) was awarded a Federal loan guarantee (Title IX financing from the US Maritime Administration) for construction of two cruise ships in an American shipyard. In 2001, ACV defaulted on this agreement. Norwegian Cruise Lines agreed to repay the loan, was awarded the contract, and granted permission to complete construction of the ships in Bremerhaven, Germany. Mayor’s Cruise Ship Task Force Findings Economic study of the economic impact of the cruise industry in Hawai`i.16 According to this study, cruise lines paid port entry, dockage, wharfage and other fees amounting to $5,490,904 to the State of Hawai`i 2003. They also spent $2,756,538 hiring shipping agents in Hawai`i, and purchased fuel, provisions, etc. at a cost of $56,243,841 in 2003.16 Chart 15 Economic Benefit of Cruise Ships on the Activities and Attractions Industry Air Toursa $2,200,000 Attractionsb $1,500,000 Land Based Activitiesc $1,550,000 Beach and Ocean Activitiesd $275,000 Boat Tourse $2,000,000 Transportationf $8,000,000 Total $15,525,000 a) Helicopters and fixed-wing planes b) Aquariums, museums, theaters, botanical gardens c) Luaus, hiking, biking, horseback, ATV and Zipline d) Surfing, windsurfing, kiteboarding, kayaking, and SCUBA diving from shore e) Snorkeling, fishing, whale watches, dinner cruises and SCUBA diving from boats f) Buses, tours and ferries DBEDT estimated that in 2003, direct spending of passengers, crew and cruise lines totaled $210 million. With cruise passenger numbers estimated to increase to more than 500,000 passengers per year by 2007, direct spending is also expected to rise. Passenger demographics and their spending preferences and practices differ between ships. Smaller ships tend to have higher end passengers only. Some larger ships have passengers with a broader range of disposable income. Other large ships cater specifically to certain types of passengers. For example, Holland America’s Amsterdam brings a large number of seniors while Nippon Yusen Kaisha’s Crystal Harmony is part of their “six-star” (luxury) Crystal Cruises fleet. Passenger demographics and their spending preferences and practices differ between ships. Mayor’s Cruise Ship Task Force Findings Economic Many Lahaina merchants and vendors have adjusted to passenger demographic s when determining whether to market to passengers Crew spending patterns are distinctive from passenger spending patterns. Foreign crew may purchase and consume alcohol in all counties in the State except Maui. Many Lahaina merchants and vendors have adjusted to passenger demographics when determining whether to market to passengers on a given ship. For example, Whaler’s Village typically only sends shuttles to larger ships because they need large numbers of passengers to make this service worthwhile. Merchants in Lahaina town benefit from foot traffic regardless of ship size. They have learned from experience the spending histories for different ships and plan their approach to passengers based on whether a higher or lower spending ship is due to arrive. Crew spending patterns are distinctive from passenger spending patterns. Crew spend a smaller percentage (compared to passengers) on lodging and shopping. They spend mostly on tours, activities and entertainment. Crew are more likely than passengers to use laundries and dental services. They are also more likely to purchase necessities and sundries, computer and internet access and phone cards. Foreign crew passports are kept on board ship for security and ship employees are issued employee identification cards. The Maui County Department of Liquor Control (MCDLC) interprets these rules strictly and does not accept ship identification for foreign crew members for the purpose of purchasing or consuming alcohol. The rules in the City and County of Honolulu and the County of Hawai`i are similar to those in the County of Maui (Appendix I). Foreign crew may purchase and consume alcohol in all counties in the State except Maui. The director of the MCDLC has offered to have members of the department meet with crew on the ships, inspect their passports, and thereafter provide them with County photo identification cards that foreign crew could use to purchase and consume alcohol on Maui. The cruise line representatives expressed interest in working and meeting with the department, but have not yet arranged meeting times for the passports to be inspected. As most cruise ships that come to Maui spend a few days per year at most here, this may be an impractical solution for the ships and their crew members. Mayor’s Cruise Ship Task Force Findings Economic Cruise Line Commerce with Maui Businesses NCLA has explored opportunities to contract with a number of businesses in Maui. They have signed an agreement with some local growers and are exploring agreements with others to provide fresh produce to the ships.18 Some growers may have challenges consistently meeting the quality and quantity that NCLA requires, as has been the case with supplying hotels. The USDA, for example, recently implemented microbial food safety inspections for fresh produce which requires growers to adopt safe practices and be certified. NCLA stated that they prefer to set up relationships with local vendors and growers wherever possible. The Maui fishing industry cannot provide the consistency in amount and portion size required by NCLA. It purchases fresh frozen fish from the Philippines, Indonesia, Taiwan, Vietnam, Thailand, China, Japan, Chile, Ecuador, Holland, Brazil, Mexico, Argentina, and the USA (Seattle, Vancouver, Boston, Miami). Foreign-flag ships generally provision with supplies shipped from the mainland. Some ships purchase fresh seafood and/or produce in Honolulu. These ships generally do not purchase basic provisions on Maui, except in emergencies. NCLA purchases products from local vendors to sell on board including fresh pineapple, flowers, jewelry and apparel and continue to explore other similar opportunities.18 NCLA contracts with Hike Maui for a hiking tour for its passengers to Puohokamoa Waterfall in Nahiku. It also has contracted with the Sheraton Maui and the Maui Prince Hotel to conduct luaus there for NCL passengers. NCL America and other cruise lines contract through Atlantis Adventure Tours with Hike Maui for hiking tours for passengers to Puohokamoa Waterfall in Nahiku. This was an existing tour that has been adapted to the needs of cruise passengers, some of whom are unable to walk for more than 2 hours at a time. An entire tour consists only of passengers from a single ship. Each tour accommodates a minimum of 6 and a maximum of 30 passengers. 18 This was a result of opportunities identified by this Task Force. Foreign-flag ships generally provision with supplies shipped from the mainland. Mayor’s Cruise Ship Task Force Findings Economic Some have expressed concern that the number of people the hikes bring to a delicate ecosystem in a quiet, rural area will damage the ecosystem and impair the quality of life for nearby residents. Hike Maui accommodates up to 100 passengers per day and breaks these up into smaller tours of no more than 30. The volume of business varies with the season. Hike Maui states that in a typical week they accommodate 15 to 30 ship passengers per day 3 to 4 days per week. In the summer NCLA books hiking tours in blocks of 40 on each day that the ship is in port, however all of these slots may not necessarily be used. Some have expressed concern that the number of people the hikes bring to a delicate ecosystem in a quiet, rural area will damage the ecosystem and impair the quality of life for nearby residents. In addition to Hike Maui, NCLA has contracted with the following businesses that operate on Maui: AKAL Security Maui Recycling Service Aloha Glass Recycling Maui Sporting Clays Atlantis Adventures Maui Tropical Plantation Blue Hawaiian Helicopters McCabe Hamilton & Cab 66 Transportation Renney Co Ltd Elleair Maui Golf Club Pacific Biodiesel Hana Ranch Pacific Whale Foundation Hawaii Tug & Barge Sheraton Maui HST Windsurfing Maui The Dunes at Maui Lani Lahaina Divers Golf Course Kapalua Golf Courses Trilogy Makena Golf Courses `Ulalena Maui Downhill Valley Isle Transportation Maui Ocean Center Services Maui Prince Hotel Wailea Golf Club In destinations outside Hawai`i cruise lines have purchased local businesses. This relieves local business of the need for capital investment, however profits may accrue to companies located outside the County or State and, therefore, not be subject to State taxes. Foreign cruise lines are not subject to Hawai`i State taxes but any profits reported by NCLA are subject to State income taxes. Mayor’s Cruise Ship Task Force Findings Economic NCLA felt the capacity of Maui ground transportation companies did not match the needs for ground transportation of NCLA passengers. Polynesian Adventure Tours (PAT) was unable to make the investment necessary to increase capacity to make this accommodation. Therefore, in November 2004, NCLA and PAT reached an agreement for NCLA to purchase PAT. NCLA stated that it does not intend to make purchases of local businesses an ongoing business strategy. Businesses that are publicized on board to passengers have a competitive advantage over businesses that are not. Vendors can pay to have their products or services publicized and promoted on board. The on-board promotional fees can be as high as $500 and some local businesses, particularly some smaller ones, find fees prohibitive. Smaller vendors and destinations receive less traffic than better known destinations and activities. Some smaller or lesser known destinations, such as the Hawai`i Nature Center, have been publicized on a trial basis, but were eventually dropped due to insufficient traffic. Cruise lines do their own marketing to passengers. MVB does not market to prospective cruise passengers at all. Small towns have expressed a desire to attract cruise passengers, but due to infrastructure limitations currently feel comfortable accommodating groups of 20 to 30 passengers spaced sporadically throughout the day. Some local businesses have been successful marketing on line to cruise passengers. Businesses in the first port of call on an “island hopping” schedule sell more than similar businesses in later ports of call. Cruise Line Employment By law, US-flag ships must hire US citizens. At least 75% of US-flag ship staff must be US citizens. Foreign-flag ships do NCLA stated that it does not intend to make purchases of local businesses an ongoing business strategy. Businesses that are publicized on board to passengers have a competitive advantage over businesses that are not. Maui Cruise Ship Task Force Findings Economics On the Pride of Aloha about 40% of the US citizens hired as staff are Hawai`i residents. With low unemployment in Hawai`i, it will be difficult to keep the percentage of Hawai`i residents among NCLA employees at 40%. The limited capacity of Maui infrastructure (harbors, roads, walkways, ground transportation, etc.), to support large numbers of cruise passenger arrivals causes displacements and delays. not have to meet that requirement. For this purpose, residents of Guam and American Samoa qualify as US citizens. On the Pride of Aloha about 40% of the US citizens hired as staff are Hawai`i residents. NCLA will bring on two new vessels by July 2006, representing approximately 1,800 staff positions. With low unemployment in Hawai`i, it will be difficult to keep the percentage of Hawai`i residents among NCLA employees at 40%. Working conditions on board ship are very different from those on land. On a standard work schedule on board employees work split shifts from 8 am to noon and 5 to 10 pm seven days, or more than 60 hours per week. They typically work 16 to 20 weeks then receive a one month vacation. This averages to 48 to 50 hours work per week. When the NCLA ship Pride of Aloha first began sailing in July 2004, it experienced some personnel challenges. The early hires in Hawai`i were unprepared for the working and living conditions on board and many quit after working only a short time. The company implemented a three week pre-employment training program to help employees adjust. It includes safety training, job training, soft skill training, and Hawaiian cultural training. This is intended to help employees adjust to shipboard life before they begin working. Very few members of the US work force have merchant marine experience. About 10% of all shipboard jobs are managerial level and approximately 10% of those jobs (1% of the jobs on the ship overall) are held by Hawai`i residents. Positions presently filled by local residents include the relief hotel director and assistant hotel director on the Pride of Aloha, a staff captain, a first officer, an executive housekeeper, a front office manager, and a restaurant manager (F&B manager for the ship). Hawai`i residents are underrepresented in the lowest wage jobs on board. Other Economic Impacts and Benefits The limited capacity of Maui infrastructure (harbors, roads, walkways, ground transportation, etc.), to support large Mayor’s Cruise Ship Task Force Findings Economic numbers of cruise passenger arrivals causes displacements and delays. It also has economic impacts on our towns, residents and on some business in the added time and expense they incur to accommodate cruise ships. The frequency of ship arrivals and lengths of stay (Chart 15) also increases the need for more and/or new infrastructure. Maui Visitors Bureau’s (MVB) strategy targets the high end visitor, emphasizing quality visitor experiences. Large passenger influxes impact the quality of the visitor experience for the non-cruise visitor. It is unclear whether increasing numbers of cruise passengers supports or departs from the MVB strategy. However, for those who have not visited Hawai`i before, the cruise ship experience provides a sampling of Hawai`i as a destination. In 2003 58% of the cruise passengers to Hawai`i had visited before.16 Therefore, with their aggressive national and international marketing, the cruise industry and the cruise experience create a new pool of repeat visitors that stay in hotels and other land-based accommodations. Cruise lines do not tap MVB’s marketing funds to attract cruise passengers to Maui. Their self-supported efforts benefit MVB’s goal of branding Maui as a visitor destination. Cruise ships create their own electricity and can produce their own drinking water. They also treat blackwater and in some cases graywater to higher standards and recycle more extensively than on shore in Hawai`i. Maui Cruise Ship Task Force Findings Economics Chart 16 Number of Cruise Stops to be Made and Days to be Spent in Maui Ports19 0 100 200 300 400 500 2003 2004 2005 2006 2007 Stops in a Maui Port Days Spent in a Maui Port 19 Based on Kahului and Lahaina Harbor schedules as of April 2005. LEGISLATIVE AND POLITICAL Hawai`i MOU The current guidelines for cruise ship environmental practices are outlined in a Memorandum of Understanding (MOU, Appendix J). The State of Hawai`i entered into this agreement with the North West Cruise Ship Association (NWCA). The original MOU was signed by Governor Cayetano in October 2002. The first revision of the MOU is now in effect, was signed The current guidelines for by Governor Lingle, and is dated February 18, 2004. cruise ship The Hawai`i MOU (including seven appendices) is available on environmental the Department of Health (DOH) Office of Environmental practices are Planning web page.20 outlined in a Memorandum of The parties representing the State and Federal government Understanding during the negotiation of the MOU included: (MOU). • DOH Deputy Director for Environmental Health • DOH Office of Hazard Evaluation and Emergency Response • DOH Environmental Planning Office • DOH Office of Environmental Quality Control • DOH Environmental Management Division o Clean Water Branch o Clean Air Branch o Solid and Hazardous Waste Branch • Department of Land and Natural Resources • Department of Transportation • Department of Business Economic Development and Tourism (State Office of Planning) • United States Environmental Protection Agency (EPA) • United States Coast Guard (USCG) 20 http://www.hawaii.gov/health/environmental/env-planning/index.html Mayor’s Cruise Ship Task Force Findings Legislative and Political The boundary of the HMA is defined as four miles from the 100 fathom contour mark surrounding the major Hawaiian Islands. In agreeing to the terms of this MOU, NWCA member cruise lines have agreed to voluntarily follow guidelines in an area larger than can be governed by State regulation. As is the usual practice with other MOUs, agreements and contracts that the State enters into, the executive branch negotiated this MOU on behalf of the State. State legislators do not participate in these types of negotiations. There are currently nine cruise lines that are members of the NWCA and party to the Hawai`i MOU. They include: • Carnival Cruise Lines • Celebrity Cruises • Crystal Cruises • Holland America Line – Westours • Norwegian Cruise Lines • Princess Cruises • Radisson Seven Seas Cruises • Royal Caribbean International • Silversea Cruises The Hawai`i MOU specifies guidelines agreed to by the State and NWCA regarding environmental practices on cruise ships. It is based on industry standards established by the International Council of Cruise Lines (ICCL), a member organization for cruise lines. The MOU also follows international rules established by the International Maritime Organization (IMO) through the MARPOL conventions (Appendix K). The MOU describes guidelines for waste discharge practices with respect to an area defined in the MOU as the Hawai`i Marine Area (HMA). The boundary of the HMA is defined as four miles from the 100 fathom contour mark surrounding the major Hawaiian Islands. The HMA includes the area four miles beyond the 100 fathom mark surrounding each of the major Hawaiian Islands: Hawai`i, Maui, Moloka`i, Lana`i, Kaho`olawe, O`ahu and Kaua`i. It encompasses an area that includes all the interisland channels within Maui County stretching to the windward (east) coast of O`ahu (Appendix L). In agreeing to the terms of this MOU, NWCA member cruise lines have agreed to voluntarily follow guidelines in an area larger than can be governed by State regulation. Mayor’s Cruise Ship Task Force Findings Legislative and Political State jurisdiction to enforce regulations only applies within State waters. State waters include all areas within three nautical miles of the shoreline. This is smaller than the area included in the HMA. Federal law governs sewage discharge within and beyond State waters. The Hawai`i MOU also requires the treated sewage discharged by cruise ships into the HMA to meet higher standards than those generally required by Federal law. The Alaska Standards are higher than the discharge standards that apply nationally. They were created by Federal law and apply to all Alaskan waters. Thus, all Alaskan waters have either been Federally designated as no discharge zones, or the discharge in those areas must meet the Alaska Standards for treated sewage (Appendix M). According to the Hawai`i MOU cruise ships have extensive self monitoring requirements and agree to self-report violations within 10 working days of their occurrence. There is no regular State monitoring or inspection of cruise ships. Cruise ship compliance with MOU guidelines is voluntary. The Hawai`i MOU provides no penalties for noncompliance with the terms of the agreement. In the first two-and-a-half years the Hawai`i MOU was in effect (October 2002 to March 2005) approximately 360 cruise ship visits were made to Maui and 17 incidents of noncompliance with the MOU were reported. Twelve of these incidents involved discharge of graywater or treated blackwater within the HMA (4 nautical miles from the 100 fathom contour mark) but outside State waters (three miles from the shoreline). All 12 of these incidents occurred in the first six months the MOU was in effect and were due to misidentification of the HMA. Four of the remaining five occurrences involved two incidents of graywater and treated blackwater discharge while transiting Penguin Banks, and two incidents in which treated blackwater was accidentally discharged in Honolulu and Hilo Harbors. The remaining occurrence involved a ship that failed to comply with record keeping requirements for treated blackwater discharge and failed to submit a sample of those waste materials prior to discharge. State jurisdiction to enforce regulations applies within State waters. … Federal law governs sewage discharge within and beyond State waters. In the first two- and-a-half years the Hawai`i MOU was in effect (October 2002 to March 2005) approximately 360 cruise ship visits were made to Maui and 17 incidents of noncompliance with the MOU were reported. Mayor’s Cruise Ship Task Force Findings Legislative and Political There was an incident of overflow from the sewage treatment system in Kahului Harbor in January 2005 that is documented in Coast Guard records but is not listed in DOH records, indicating that this incident may not have been reported to DOH as required by the MOU. State officials may not board a foreign-flag ship without permission from the ship’s captain. No governmental action was taken in response to any of the 17 MOU violations that have been reported to date. Cruise lines responded to the misidentification of the HMA with route changes and crew education. There was an incident of overflow from the sewage treatment system in Kahului Harbor in January 2005 that is documented in Coast Guard records but is not listed in DOH records, indicating that this incident may not have been reported to DOH as required by the MOU. Federal Monitoring A number of Federal guidelines and regulations govern water quality and other activities of cruise ships related to safety practices, waste management, invasive species, etc. Federal guidelines with regard to specific waste streams and the limitations of those guidelines are described throughout the Environmental Findings section of this document. A general description of Federal guidelines that apply to water quality are presented in section B of Appendix K. State officials may not board a foreign-flag ship without permission from the ship’s captain. This is the domain of the Federal government. The US Coast Guard (USCG) monitors foreign-flag ships. Every foreign-flag ship must pass a detailed inspection (four to eight inspectors, 5 days in length) prior to entering US waters for the first time. Ships that pass the first inspection are certified for one year. Foreign-flag ships must be inspected at least four times per year and recertified every 90 days. Pollution control records are checked each time a vessel is boarded. Foreign-flag ships found to be in violation of US law are tracked, and boarded and inspected more frequently than every 90 days. Due to practical limitations, those that are regularly found to be in compliance are boarded and inspected at least twice a year. The USCG may impose fines and take corrective action including criminal prosecution when ships are not in compliance with US law. They may also hold ships in port until they are in compliance. Mayor’s Cruise Ship Task Force Findings Legislative and Political The USCG website provides a list of vessels it inspects, the dates of inspection and some cases, information about the nature and results of the inspection. Some of the cruise vessels that travel regularly in Hawai`i waters have been held in port by the USCG, however, this has not occurred in Hawai`i. Ships are required to report any oil spill or prohibited discharge to the USCG immediately after the spill is discovered. With regard to reporting waste management practices in Hawai`i, cruise ships must only report on the handling of hazardous materials, on board. This is a Federal requirement. Cruise Ship Regulatory Models Among states that are destinations on cruise ship itineraries, four operate under MOUs: Florida, Hawai`i, Washington and Maine. The features of the Florida, Hawai`i and Washington MOUs are listed in Appendix N. Florida was the first state to set up an MOU with the cruise industry. Hawai`i’s MOU was patterned after Florida’s; Washington then established an MOU that was based on the agreements of Hawai`i and Florida. The MOUs of Florida, Hawai`i and Washington are similar but have a few notable differences. • Florida has the right to inspect records for all cruise vessels entering Florida Territorial Waters. Hawai`i and Washington do not. • In Hawai`i and Washington, NWCA members agreed to comply with the Federal Marine Mammal Protection and Invasive Species Acts. • In the Washington MOU NWCA members agree to recordkeeping, monitoring and waste treatment procedures that are not in the Florida and Hawai`i MOUs. The USCG may impose fines and take corrective action including criminal prosecution when ships are not in compliance. They may also hold ships in port until they are in compliance. Ships are required to report any oil spill or prohibited discharge to the USCG immediately after the spill is discovered. Mayor’s Cruise Ship Task Force Findings Legislative and Political California recently established laws governing cruise ship waste practices due to repeated incidences of noncompliance with their MOU. Alaska law permits waste discharge from cruise ships within state waters, but extensive government regulation is involved in their approach. In September 2004, California passed laws creating a ‘no discharge zone’ prohibiting discharge of all waste except sewage within state waters … and national marine sanctuaries. Cruise ships operated in California under MOUs at one time. California recently established laws governing cruise ship waste practices due to repeated incidences of noncompliance with the MOU. Alaska had no agreements with cruise ship regarding their practices until 2000 when the state established laws monitoring and regulating discharge and imposing fines for violations. The focus of Alaska and California laws governing cruise ships differs significantly from one another. The features of each approach are listed in Appendix O. Alaska law permits waste discharge from cruise ships within state waters, but extensive government regulation is involved in their approach. Alaska law set up a reporting and monitoring system along with a compliance fund supported by fees charged to cruise ships.21 In September 2004, California passed laws creating a ‘no discharge zone’ prohibiting discharge of all waste except sewage within state waters (three nautical miles from the coastline) and national marine sanctuaries. Federal law regarding sewage discharge preempts state law, so California applied to the EPA for an exemption from Federal rules regarding sewage discharge and permission to establish sewage discharge regulations within state waters and national marine sanctuaries.22 California has prohibited discharge of air emissions exceeding specific standards. It has also prohibited discharge of graywater, oily bilge and hazardous and other solid waste in these areas. Under these rules large passenger ships must use pump out stations for all waste discharge. 21 An initiative to be on the 2006 ballot in Alaska would set up a more extensive compliance fund with a fee charged for every cruise passenger entering the State. Eight percent of these fees would pay for a state- employed independent licensed marine engineer to travel on board each cruise ship while it is in state waters and monitor ship practices and compliance. Twenty-four per cent of the fees would go to communities that are impacted by vessel and/or passenger traffic but are not ports of call. The remaining 68% would fund port and harbor improvements 22 A Federal law provides for higher water quality standards for fecal coliform counts and chlorine in Alaskan waters than elsewhere under Federal jurisdiction. This exception has been in place for several years and based on this, the California request to the EPA is expected to be granted. Mayor’s Cruise Ship Task Force Findings Legislative and Political No-discharge-rules in California apply to vessels greater than 300 gross tons carrying passengers for hire and exclude vessels without berths or overnight accommodations, warships, ships operated by state, Federal or foreign governments, noncommercial vessels and vessels operated by nonprofit entities. European Union regulations prohibit waste discharge into coastal and ocean waters of the North Sea and all member nations have installed waste reception facilities to accommodate the vessels that call on their ports. While the rules for discharge in Europe vary with waste stream and location, regulation there requires extensive notification, reporting and monitoring of compliance. The goal of these regulations is to move toward the elimination of ship pollution (Appendix K). Hawai`i Political Climate Cruise ships have generated ongoing interest in the community and the press. The press has empowered the public by providing opportunity for meaningful public input, and public discussion has raised concerns about the current MOU. Legislation aimed at providing more protection and regulatory oversight of cruise ship activity in the State has been introduced regularly in the State legislature. This legislation did not pass in the 2003 or 2004 legislative sessions. A law that essentially codifies the MOU (House Bill 422) passed in the 2005 Legislative Session and became law without the Governor’s signature on July 12, 2005 (Act 206). It imposes penalties for violations and requires ships to: • Maintain discharge and air emission records • Submit reports to DOH upon request • Submit reports required by the Federal government to DOH This legislation also provides DOH flexibility to establish alternative terms for vessels that cannot comply with established regulation. A law that essentially codifies the MOU (House Bill 422) passed in the 2005 Legislative Session and became law without the Governor’s signature on July 12, 2005 (Act 206). Mayor’s Cruise Ship Task Force Findings Legislative and Political On March 22, 2005 the Director of Health, Dr. Chiyome Fukino, testified to committees in both houses of the legislature that the current administration feels the “creation of a new regulatory regime for cruise ships is unnecessary.” It is NCL America’s position that most of the provisions of Act 206 are preempted by Federal law and these laws are not enforceable. On March 22, 2005 the Director of Health, Dr. Chiyome Fukino, testified to committees in both houses of the legislature that the current administration feels the “creation of a new regulatory regime for cruise ships is unnecessary.” ENVIRONMENTAL Approximately half of the cruise ships that visited Maui in 2003 and 2004 have capacities for passengers and crew numbering between 2,400 and 3,500 (Appendix C). These ships produce solid waste and sewage comparable to that of two to three resort hotels. Chart 17 lists the waste streams on cruise ships, the contents of those waste streams and the estimated amount generated in a one week voyage. Appendix P lists the materials on board cruise ships that contribute to on board waste streams. The Hawai`i The Hawai`i MOU20 (Appendix J) is an agreement between the Department NWCA and the State of Hawai`i outlining cruise ship operations of Health and environmental practices (Legislative and Political Findings, (DOH) pp 46-52.) Most of the MOU references environmental cannot practices. directly investigate The Hawai`i Department of Health (DOH) is the agency of the or enforce State government that oversees cruise ship activities related to MOU waste management. The DOH cannot directly investigate or violations on enforce MOU violations on foreign-flag cruise ships. To board foreign-flag any foreign-flag ship, the DOH must obtain permission from the cruise ships. ship captain and must be accompanied by the USCG when doing so. Under these circumstances the DOH cannot make unannounced inspections of waste management procedures on board foreign-flag ships and has no means of determining whether or not a given ship is complying with the MOU other than self-reporting by cruise ships. The US Coast Guard has jurisdiction over the waste practices of foreign-flag cruise ships, and can enforce US law. However, there are no US laws that specifically address sewage or air pollution on foreign-flag ships (see International Organizations and Regulations and MARPOL Annexes, Appendix K). Mayor’s Cruise Ship Task Force Findings Environmental Chart 17 Waste Streams on Cruise Ships23 Waste Stream Contents Estimated amount per week Air Emissions Ash from incinerated sludge and other waste. Emissions from on board diesel engines, power generators and desalination plants. 7 Megawatts of electrical power idling in port24 Sewage (blackwater) Toilet wastewater and solids 210,000 to 1 million gal Graywater Sink, shower, galley, laundry wastewater. Contains detergents, cleaners, oil and grease, metals, pesticides, medical and dental wastes 1 to 2 million gal Hazardous Waste Photo chemicals 110 gal Dry cleaning waste (perchloroethylene and other chlorinated solvents) 5 gal Used paint 10 gal Expired chemicals, including pharmaceuticals 5 gal Other wastes, such as print shop wastes Used fluorescent and light bulbs Used batteries Unknown Solid waste Plastic, paper, wood, cardboard, food, cans, glass International regulations prohibit discharge of plastics. 20 or more tons Oily Bilge Water Liquid collected in lowest point of ship when in a static floating position. 25,000 gal 23 Sources: Alaska Department of Environmental Conservation (ADEC), Interim Cruise Ship Sampling Data Summary, 2001. Bluewater Network, Petition to U.S. EPA, 2000, International Council of Cruise Lines, Cruise Industry Waste Management Practices and Procedures, 2001. International Council of Cruise Lines, Cruise Industry Waste Management Practices and Procedures, May 14, 2001. U.S. EPA, Cruise Ship White Paper, 2000, Code of Federal Regulations, Title 33, Volume 2, Parts 120 to 199, revised July 1, 2000, Sec. 183.11. Definitions pp. 751-72. Information in this table was verified with the Bay Area Air Quality Management District Engineering Department, the ADEC and with two environmental services firms that off-load cruise ship waste. 24Pride of Aloha Engineering Officer, during Task Force visit on board November 5, 2004. Mayor’s Cruise Ship Task Force Findings Environmental Under the current MOU, violations are identified by reports from the cruise ship that committed the violation or by third parties reporting the violation. There is no legal mechanism by which DOH can identify violations on foreign-flag ships. Cruise ships are not required to report MOU violations immediately after they occur. Foreign-flag ships only stay in State waters a few days at most, therefore, even if a foreign ship does report a possible violation immediately, the DOH has difficulty investigating in coordination with the US Coast Guard (as required by law) before such ships leave Hawai`i. The Federal Clean Water Act (CWA) prohibits discharge of pollutants from point sources into US waters unless a permit is obtained from the EPA under the National Pollutant Discharge Elimination System (Appendix K). Ships are not considered point sources pollution (because they are mobile), therefore they are exempt from the permitting requirements of the CWA. No agency in the State of Hawai`i regularly collects baseline measurements of water quality in State coastal waters. DOH is responsible for water quality but is not required to test or monitor harbors or ocean waters beyond knee-high depth. DOH has no enforcement authority with regard to violations that may occur in State marine waters. The most extensive studies conducted to date on passenger vessel waste streams and their impact on the environment have been done by the State of Alaska Department of Environmental Conservation (ADEC). For the purposes of these studies, commercial passenger vessels were divided into two groups: small ships, which carry 50 to 249 passengers and large ships, which carry 250 or more passengers. Over the course of the studies conducted by the ADEC (2000 to present) a great deal has been learned about passenger vessel waste streams,25 and with oversight waste management on large cruise ships has improved. Cruise ships are not required to report MOU violations immediately after they occur. Ships are not considered point sources of pollution, therefore they are exempt from the permitting requirements of the CWA. Treated sewage effluent from small ships, however, does not meet the standards set in Alaska… 25 http://www.dec.state.ak.us/water/cruise_ships/reports.htm Mayor’s Cruise Ship Task Force Findings Environmental Treated sewage effluent from small ships, however, does not meet the standards set in Alaska and advanced wastewater There are two sources of air emissions on cruise ships: 1) incinerator ash from incineration of sludge and other solid waste, 2) emissions from operating diesel engines, electricity power generators, and desalination plants used to create drinking water. Ships typically burn fuel with …1333 times more sulfur than the fuel burned in passenger vehicles. treatment systems (AWTS) are not yet commercially available for smaller vessels. It should be noted that the concerns about waste management practices on small cruise ships apply to any small recreational or commercial vessels with toilet facilities including ferries, diving, fishing and sailing charters, etc. In their end of season report for 2004 on passenger vessels, ADEC has stated that there are two areas of concern in Alaska arising from their studies of passenger vessels waste: the low quality of treated effluent from small commercial passenger vessels and air emissions from large passenger vessels. Air Emissions There are two sources of air emissions on cruise ships: 1) incinerator ash from incineration of sludge and other solid waste, 2) emissions from operating diesel engines, electricity power generators, and desalination plants used to create drinking water. Emissions ships produce while idle in port can be a substantial part of port emissions.26 There are no US laws or regulations governing air emissions on ocean-going vessels. It has been difficult for Federal, State and local US air quality agencies to estimate or regulate air emissions from marine vessels because these agencies do not have jurisdiction over these vessels at sea and there is no requirement for ships to report emissions while they are in port (Appendix M). Marine vessels emit large amounts of nitrogen oxide (NOx), sulfur oxide and particulate matter. In 2001, marine vessels accounted for 8 percent of the mobile source NOx emissions and 9 percent of the mobile source fine particulate emissions nationwide.26 The primary reason marine engines generate high levels of emissions nationally is that the fuels used in marine engines have a much higher sulfur content than the fuels used by land-based vehicles. 26 National Emission Inventory, U.S. EPA. http://www.aapaports.org/programs/hne/Library/WhitePaper_3_5404.pdf Mayor’s Cruise Ship Task Force Findings Environmental All passenger vehicles are required by Federal law to burn fuel with a sulfur content of 0.0015%. The Hawai`i MOU requires cruise ships to burn fuel of no more than 2.8% sulfur content. Ships typically burn fuel with approximately 2.0% sulfur content (1333 times more sulfur than the fuel burned in passenger vehicles). The DOH Environmental Management Administration Clean Air Branch (CAB) monitors stationary sources of emissions for compliance with air quality rules. CAB also evaluates reported violations, sets penalties, etc. There are 18 air quality monitoring stations in the State of Hawai`i: 10 on O`ahu, 6 on the island of Hawai`i and 1 each on Maui and Kaua`i. The Maui station is located in Ma`alaea near the MECO power plant. According to the MOU, cruise ships equip themselves with opacity monitors and continuously monitor air emissions while in Hawai`i waters. They also agree to limit visible emissions such that they do not exceed 20% opacity for more than 6 minutes in any 60 minute period except when maneuvering to or from dock or anchor, when a safety concern is a priority, or in the event of equipment failure. Residents have commented that the air emissions in Lahaina Harbor are noticeable and unpleasant. This is a combined result of emissions from ocean-going vessels, including tender boats, and buses, taxis and cars. Sewage or Blackwater Sewage or blackwater refers to toilet waste, and cruise ships generate up to 30,000 gallons or more sewage daily depending on the size of the ship and the efficiency of the toilet facilities on board. The MOU prohibits discharge of untreated sewage within 4 miles of the 100 fathom mark (the HMA). Treatment of sewage or blackwater results in fluid or effluent that may be discharged and sewage sludge which may be dried, then either offloaded or incinerated. Some vessels may offload liquid sludge, or they may discharge it beyond 12 nautical miles at sea. There are 18 air quality monitoring stations in the State of Hawai`i: 10 O`ahu, 6 on the island of Hawai`i and 1 each on Maui and Kaua`i. By Federal law, oceangoing vessels with toilet facilities may discharge untreated sewage or sewage sludge when more than 12 nautical miles from land, coral reefs or designated sensitive areas. Mayor’s Cruise Ship Task Force Findings Environmental The most commonly used sewage treatment systems on board the cruise ships traveling to Maui are USCG-certified AWTS systems. When properly used, AWTS can reduce harmful bacteria in sewage effluent. … [AWTS] also produce nutrient-rich effluent, which is known to cause algal blooms. NCLA dries sewage sludge on board. It is then either incinerated or offloaded. By Federal law, ocean-going vessels with toilet facilities may discharge untreated sewage or sewage sludge when more than 12 nautical miles from land, coral reefs or designated sensitive areas. All ocean-going vessels with installed toilet facilities are required by Federal law to install USCG-certified Marine Sanitation Devices (MSD, Appendix Q) to treat the sewage produced on board. MSDs are designed to produce effluent that meets the Federal and international standards (Appendix K). The most commonly used sewage treatment systems on board the cruise ships traveling to Maui are USCG-certified AWTS systems, (Appendix C). Federal law has set standards for areas of Alaska that are higher than those for type II MSDs. The Hawai`i MOU states that if a ship’s sewage effluent meets the Alaska Standards (Appendix M), that effluent may be released within the HMA one mile or further from the 100 fathom mark while traveling at a