This Memorandum of Understanding is entered into this ____ day of ____, 2001 by and between the Florida Department of Environmental Protection, herein referred to as FDEP; the Florida-Caribbean Cruise Association and the International Council of Cruise Lines, as representatives of the cruise industry in Florida, hereinafter referred to as FCCA and ICCL.

Whereas, FDEP, is responsible for the protection of Florida's environment and for regulation of environmental laws in the State of Florida; and

Whereas, the FCCA and ICCL are non-profit entities organized for the purpose of representing member cruise lines which operate in Florida; whose current membership is identified in Appendix 1; and

Whereas, the FCCA and ICCL have developed and agreed to cruise industry policies with regard to waste minimization, waste reuse and recycling and waste management practices and procedures; and

Whereas, the United States Coast Guard, herein referred to as USCG, has Federal jurisdiction over environmental matters in navigable waterways in the United States; and

Whereas, the cruise industry through its trade associations----FCCA and ICCL----have been engaged with the FDEP and the USCG in an active discussion involving a number of environmental management policy goals based upon The Memorandum of Understanding executed by the parties dated March 14, 2000; and

Whereas, the FDEP recognizes that cruise vessels operate in international waters and move passengers to destinations worldwide and, consequently, that cruise vessel waste management practices must take into account environmental laws and regulations in many jurisdictions; and

Whereas, the Memorandum of Understanding dated on March 14, 2000 provided for certain environmental policy goal attainments relating to waste management practices; and

Whereas, the FCCA and ICCL have acted in "good faith" working with the FDEP and the USCG to develop waste management practices which preserve a clean and healthy environment and which demonstrate the cruise industry's commitment to be a steward of the environment and set policies that make the industry a leader in environmental performance; and

Whereas, the FDEP recognizes that when a cruise vessel seeks to dispose hazardous wastes in Florida then waste management becomes a Florida activity subject to Florida regulations; and

Whereas, the cruise industry recognizes Florida's fragile maritime environment and the cruise industry is committed to help protect this environment; now therefore, FDEP, FCCA and ICCL enter into this Memorandum of Understanding based upon mutual understandings on the following environmental policy goal attainments:

1. FDEP accepts the ICCL Industry standard E-01-01, titled Cruise Industry Waste Management Practices and Procedures (Exhibit A), as ICCL member policy in the management of solid waste, hazardous wastes and waste waters. FDEP acknowledges that FCCA and ICCL members agree to discharge waste waters outside of Florida territorial waters. FDEP also acknowledges that such waste management practices and procedures meet or exceed the standards set forth in Florida laws and applicable Florida regulations.
2. FDEP and the FCCA/ICCL understand that the USCG has Federal jurisdiction over environmental matters in navigable waterways in the United States and conducts passenger ship examinations that include review of environmental systems, Safety Management System (SMS) documentation and such MARPOL-mandated documents as the Oil Record Book and the Garbage Record Book. FDEP agrees that the USCG is the proper U.S. agency to provide reasonable assurances that the cruise vessel is following management practices and industry standards as contained in Exhibit A. Additionally, FCCA/ICCL member Cruise Vessels will integrate such industry standards into SMS which ensure compliance through statutorily required internal and third party audits.
3. USCG has developed guidelines relating to the inspection of waste management practices and procedures which have been adopted by the cruise industry. FDEP accepts the USCG Navigation and Vessel Inspection Circular and Environmental Systems Checklist (Exhibit B) which will be incorporated into USCG 840 Guidebook as the procedure to conduct waste management inspections on board cruise vessels. FDEP may request, from the USCG, and inspect all records for cruise vessels entering Florida territorial waters.
4. FDEP in consultation with FCCA/ICCL is working with the Environmental Protection Agency (EPA) to develop a national practice for the assigning of an EPA Identification Number to the generator of hazardous wastes which recognizes the multi-jurisdictional itineraries of a cruise vessel. Conceptually, the EPA has agreed that issuing a national identification number to cruise vessels operating in the U.S. is an acceptable procedure. EPA also proposes that the state where company offices are located may issue the national identification numbers provided the criteria and information submitted required for obtaining the number is standard for the United States. FDEP and FCCA/ICCL agree to a uniform application procedure (Exhibit C) for the EPA national identification number in accordance with the Resource Conservation Recovery Act (RCRA). FDEP shall have the right to inspect all such records upon written request to the cruise vessel operator.
5. FCCA and ICCL have adopted a uniform procedure (Exhibit D) for the application of RCRA to cruise vessels entering Florida. FDEP accepts this procedure as the appropriate process for vendor selection and management of hazardous wastes in Florida. FCCA/ICCL member lines agree to provide an annual report regarding the total hazardous waste offloaded in the United States by each cruise vessel.
6. FDEP and FCCA/ICCL agree that all records required by RCRA for cruise vessels entering Florida territorial waters shall be available to FDEP upon written request to the cruise vessel operator.
7. The FDEP recognizes that waste management practices are undergoing constant assessment and evaluation by cruise industry members. It is understood by the FDEP, the FCCA and the ICCL that the management of waste streams will be an on-going process which has as its stated objectives both waste minimization and pollution prevention. Consequently, all parties agree to continue to work with each other in "good faith" to achieve the stated objectives. This may require additional meetings with federal regulators to discuss specific issues applicable to the cruise industry in the U.S.
8. The FDEP agrees that the performance required by the FCCA and ICCL under the terms of this Memorandum of Understanding only shall be directed to its member cruise lines. The FCCA and ICCL acknowledge that its members operate cruise vessels engaged in cruise itineraries greater than one day duration; and further that its members do not operate one-day attraction ships or casino gambling ships.
9. Attached as Appendix II is a discussion of future environmental goals which the FDEP, USCG and FCCA/ICCL have established as part of the ongoing, good faith, discussion amongst the parties. Additional meetings to discuss environmental goals are recognized as a necessary component to the successful implementation of management practices for waste minimization and reduction.

IN RECOGNITION OF THE MUTURAL UNDERSTANDINGS DISCUSSED HEREIN; THE PARTIES HERETO AFFIX THEIR SIGNATURES ON THIS ____ DAY OF ________ 2001.

Florida Department of Environmental Protection
By its Secretary, David Struhs

Florida-Caribbean Cruise Association
By its President, Michele M. Paige, on behalf
of its members which have approved the provisions
of this Memorandum.

International Council of Cruise Lines
By its President, J. Michael Crye, on behalf
of its members which have approved the provisions
of this Memorandum.

• Exhibit A
• Exhibit B
• Exhibit C
• Exhibit D
• Appendix I
• Appendix II
• Florida Ocean Alliance Program