(Washington, DC) — The Environmental Law Institute announces the release of a white paper identifying financial responsibility tools that could be used to protect the Great Lakes economy and environment from biological pollution introduced in ballast water. The white paper introduces the legal framework governing ballast water discharge, discusses liability for discharge of untreated ballast water, and illustrates how financial responsibility mechanisms can be applied to address the potential liabilities and environmental damage arising from ballast water discharge. The paper is designed to stimulate discussion of the proper role for economic incentives in the ballast water discharge regulations currently being developed by the Great Lakes states.
To date, state and federal governments have implemented financial responsibility mechanisms to address oil spill prevention, hazardous chemical releases, mine remediation, wetlands mitigation site performance evaluation, and nuclear facility safety, among others. These rules range from mandatory liability insurance to user fees to joint and several liability, providing a variety of existing models that could be used to address biological pollution.
The environmental and economic stability of the Great Lakes, the largest surface freshwater body in the world, is threatened by a proliferation of aquatic invasive species (AIS). Since the Saint Lawrence Seaway opened in 1959, 65 percent of AIS introductions in the Great Lakes have been attributed to ballast water discharges. Recent litigation in the oil spill context and increasing scientific capacity to detect and identify ships discharging biological pollution suggest that liability for damages caused by AIS will soon expand dramatically and may fall upon not only vessel owners and operators, but also ship classification societies, port authorities, exporters, and importers. Financial responsibility requirements provide a source of funding to address biological pollution, an economic incentive for vessels to treat ballast water, and a tool allowing potentially responsible parties to evaluate and minimize their liability risk.
“Regulation of ballast water discharge in the Great Lakes has changed dramatically in the last year, but enforcement of the new requirements has not been considered adequately to date,” said Read Porter, Director of the Invasive Species Program at the Institute. “Economic tools have been used to aid in enforcement of and compliance with many other state and federal environmental rules and are almost certain to play an important role in the success of ballast water discharge regulation as well.” The white paper provides a vital resource for state and federal policymakers considering how financial responsibility tools can be adapted to protect the economy and environment of the Great Lakes.