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Statement of Need: The unintentional introductions of nonindigenous species into U.S. waters via the discharge of vessels' ballast water has had significant impacts to the nation's aquatic resources, biological diversity, and coastal infrastructures. This rulemaking would amend the ballast water management requirements (33 CFR part 151 subpart D) and establish a standard that specifies the level of biological treatment that must be achieved by a ballast water treatment system before ballast water can be discharged into U.S. waters. This would increase the Coast Guard's ability to protect U.S. waters against the introduction of nonindigenous species via ballast water discharges.

Summary of the Legal Basis: Congress has directed the Coast Guard to develop ballast water regulations to prevent the introduction of nonindigenous species into U.S. waters under the Nonindigenous Aquatic Nuisance Prevention and Control Act of 1990 and reauthorized and amended it with the National Invasive Species Act of 1996. This is not a statutory rulemaking.

Alternatives: We would use the standard rulemaking process to develop regulations for a ballast water discharge standard. Nonregulatory alternatives such as navigation and vessel inspection circulars and the Marine Safety Manual have been considered and may be used for the development of policy and directives to provide the maritime industry and our field offices guidelines for implementation of the regulations. Nonregulatory alternatives cannot be substituted for the standard we would develop with this rule.

Anticipated Costs and Benefits: We estimate the first-year (initial) cost of this rulemaking to be $241 million based on a seven percent discount rate and $250 million based on a three percent discount rate. Over the 10-year period of analysis (2012-2021), the total cost for the U.S. vessels is approximately $1.37 billion using the 3 percent discount rate and $1.19 billion using the 7 percent discount rate. Our cost assessment includes existing and new vessels. We anticipate damages avoided from nonindigenous invasive species are the benefits of this rulemaking. Based on preliminary analysis, our primary annualized estimate of damages avoided range from $165 million to $282 million at a seven percent interest rate or $194 million to $330 million at a three percent discount rate. Estimated mid-point total benefits over a ten-year period of analysis, adjusted for the phase-in schedule, range from $1,161 million to $2,813 million depending on effective factors and discount rates.

Risks: The rate at which nonindigenous species are unintentionally introduced into U. S. waters via ballast water continues to increase, and is estimated to cost the United States $7.98 billion annually (source: 2005 Pimental et al). It is estimated that for areas such as the Great Lakes, San Francisco Bay, and Chesapeake Bay, one nonindigenous species becomes established per year. At this time, it is difficult to estimate the reduction of risk that would be accomplished by promulgating this rulemaking; however, it is expected a major reduction will occur.