[Federal Register Volume 60, Number 120 (Thursday, June 22, 1995)]
[Proposed Rules]
[Pages 32477-32483]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-15231]



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[[Page 32478]]

DEPARTMENT OF TRANSPORTATION

Coast Guard

46 CFR Parts 30, 31, 70, 71, 90, 91, and 107

[CGD 95-010]
RIN 2115-AF 11


Alternate Compliance via Recognized Classification Society and 
U.S. Supplement to Rules (CGD 95-010)

AGENCY: Coast Guard, DOT.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Coast Guard proposes to amend regulations to provides 
owners of U.S. tank vessels, passenger vessels, cargo vessels, 
miscellaneous vessels and mobile offshore drilling units an alternative 
method to fulfill the requirements for vessel design, inspection and 
certification. Under this proposal, the Coast Guard would issue a 
certificate of inspection based upon a recognized classification 
society's reports that the vessel complies with the International 
Convention for the Safety of Life at Sea, as amended (SOLAS 74/83), 
other applicable international conventions, classification society 
rules, and other specified requirements. This will reduce the burden on 
vessel owners and operators by eliminating duplicative plan reviews and 
inspections by the classification society and the Coast Guard.

DATE: Comments must be received on or before September 20, 1995.

ADDRESSES: Comments may be mailed to the Executive Secretary, marine 
Safety Council (G-LFA/3406) (CGD 95-010), U.S. Coast Guard 
Headquarters, 2200 Second Street, SW., Washington, DC 20593-0001, or 
may be delivered to Room 3406 at the above address between 8 a.m. and 3 
p.m. weekdays, except Federal holidays. the telephone number is (202) 
267-1477. Comments on collection-of-information requirements must be 
mailed also to the Office of Information and Regulatory Affairs, Office 
of Management and Budget, 725 17th Street, NW., Washington, D.C. 20503, 
ATTN: Desk Officer, U.S. Coast Guard.
    The Executive Secretary maintains the public docket for this 
rulemaking. Comments will become part of this docket and will be 
available for inspection or copying at Room 3406, U.S. Coast Guard 
Headquarters, between 8 a.m. and 3 p.m., Monday through Friday, except 
Federal holidays.

FOR FURTHER INFORMATION CONTACT: Mr. Albert G. Kirchner, Jr., Office of 
Marine Safety, Security and Environmental Protection (G-MTH-4/13), Room 
1304, U.S. Coast Guard Headquarters, 2100 Second Street, SW., 
Washington, DC 20593-0001, (202) 267-0168.

SUPPLEMENTARY INFORMATION:

Request for Comments

    The Coast Guard encourages interested persons to participate in the 
rulemaking by submitting written data, views or arguments. Persons 
submitting comments should include their names and addresses, identify 
this rulemaking (CGD 95-010) and the specific section of this proposal 
to which each comment applies, and give the reason for each comment. 
Please submit two copies of all comments and attachments in an unbound 
format, no larger than 8\1/2\ by 11 inches, suitable for copying and 
electronic filing. Persons wanting acknowledgment of receipt of 
comments should enclose stamped, self-addressed postcards or envelopes.
    The Coast Guard will consider all comments received during the 
comment period and may change this proposal in view of the comments.
    The Coast Guard plans no public hearing. Persons may request a 
public hearing by writing the Marine Safety Council at the address 
under ADDRESSES. The request should include reasons why a hearing would 
be beneficial. If the council determines that the opportunity for oral 
presentations will aid this rulemaking, the Coast Guard will hold a 
public hearing at a time and place announced by a later notice in the 
Federal Register.

Drafting Information
    The principal persons involved in drafting this document are Mr. 
Albert G. Kirchner, Jr., Project Manager, Office of Marine Safety, 
Security and Environmental Protection and Commander Thomas R. Cahill, 
Project Counsel, Office of Chief Counsel.

Background and Purpose

    As part of its regulatory reform efforts, the Coast Guard invited 
the maritime industry to identify unnecessarily burdensome regulations. 
In response, the U.S. maritime industry submitted many comments noting 
the continuing pressure on the competitive position of the U.S. 
oceangoing merchant fleet and commercial shipbuilding industry. Members 
of the industry called for greater alignment of Coast Guard regulations 
with international standards to reduce the cost disadvantages incurred 
by U.S. maritime industry and thereby improve the competitiveness of 
the U.S. industry. These developments, together with a desire to focus 
more attention on human element and port state control activities, 
prompted the Coast Guard to review its approach of ensuring maritime 
safety through vessel compliance inspections.
    This proposal would be responsive to the needs expressed by the 
U.S. maritime industry to reduce the regulatory burden and alleviate 
duplication of effort between the Coast Guard and the classification 
societies. These processes are the culmination of one public meeting 
and more than 10 follow-on meetings involving all major shipbuilding 
and maritime operator interests in the nation. As a result of this 
intensive cooperative effort, the concept of alternative compliance was 
developed as a means of reducing adverse regulatory effects without 
jeopardizing safety.
    As part of this review, a joint USCG/American Bureau of Shipping 
(ABS) task force compared the requirements in the Code of Federal 
Regulations (CFR), ABS Rules, the 1974 Safety of Life at Sea 
Convention, as amended (SOLAS 74/83), and the International Convention 
for the Prevention of Pollution from Ships (MARPOL 73/78). The purpose 
of this comparison was to identify redundancies and determine if other 
regulations could be used in place of CFR requirements to achieve an 
equivalent level of safety. Over 370 separate regulatory provisions 
have been examined to date, and the task force has determined that many 
of the CFR requirements examined could be satisfied by ABS Rules, SOLAS 
74, MARPOL 73/78 or combinations of the three. This led to the 
development of an ABS U.S. Supplement (USS). The USS addresses those 
areas where current Coast Guard requirements are not embodied by either 
ABS Rules or international conventions or, in the case of international 
conventions, whose interpretations are needed by the U.S. flag 
administration. The Coast Guard has concluded that the design 
requirements and survey provisions of ABS class rules, applicable 
international conventions, and the USS provide a level of maritime 
safety equivalent to corresponding Federal regulations which govern the 
same aspects of U.S. vessels.
    Under this proposal, owners, operators, shipbuilders, and designers 
of U.S. flagged tank vessels, passenger vessels, cargo vessels, 
miscellaneous vessels, and mobile offshore drilling units subject to 
inspection under Part B of Subtitle II of 46 U.S.C. (sections 3101-
4705) would have an alternative to traditional inspection by the Coast 
Guard. They could use the services of a recognized classification 
society to perform inspection and plan review [[Page 32479]] functions 
now performed by the Coast Guard. The cognizant Coast Guard Officer-in-
Charge of Marine Inspection may issue a certificate of inspection based 
upon the classification society's reports that the vessel is classed 
and complies with applicable requirements. This alternative would free 
Coast Guard resources and allow the Coast Guard to move from assessing 
a vessel's equipment and material condition to evaluating more pressing 
concerns related to the human element. In addition, it would allow the 
Coast Guard to shift resources from inspection of U.S. vessels to port 
state enforcement efforts without degrading the safety of U.S vessels. 
The Coast Guard would maintain oversight of this Alternative Compliance 
Program (ACP) through random checks of delegated tasks, monitoring of 
the classification society's quality system via participation in system 
audits and tracking demonstrated performance in identifying and 
correcting quality deficiencies.
    Under current law, the Coast Guard may, with limited exceptions, 
only delegate inspection and examination functions to the ABS or 
similar United States classification society. Separate legislation has 
been introduced that would allow the Coast Guard to recognize 
additional classification societies. if the Coast Guard recognizes 
other classification societies, each classification society's rules 
would be examined and a separate supplement developed to be 
incorporated by reference in a future rulemaking.
    An ACP pilot program with ABS was announced by the Federal Register 
notice of February 3, 1995 (60 FR 6687). The purpose of the pilot 
program is to test and evaluate the standards and procedures that have 
been developed in cooperation with the ABS. The Coast Guard may modify 
this proposal based upon the experience and findings of the ACP pilot 
program. In addition, the Coast Guard will use the pilot program to 
determine the level of resources involved in the alternate compliance 
process, and may adjust vessel inspection user fees through a separate 
rulemaking.

Discussion of Proposed Amendments

    This proposal would establish alternate compliance procedures for 
U.S. flagged tank vessels, passenger vessels, cargo vessels, 
miscellaneous vessels, and mobile offshore drilling units. It would add 
new incorporation by reference sections in 46 CFR parts 30 (Sec. 30.01-
4), 70 (Sec. 70.01-10) and 90 (Sec. 90.01-10). Each of these sections 
would incorporate, by reference, the ABS Class Rules for Building and 
Classing Steel Vessels, 1995, and the ABS U.S. Supplement to Class 
Rules for Building and Classing Steel Vessels, 1995. When developed, 
the ABS Class Rules for Building and Classing Mobile Offshore Drilling 
Units would be added to the existing incorporation by reference 
provisions in 46 CFR 107.115. These documents are available from the 
American Bureau of Shipping at the address indicated in the applicable 
section. The Coast Guard has determined that compliance with applicable 
international requirements, the ABS Class rules, and respective ABS 
U.S. Supplement would provide a level of safety equivalent to 
compliance with existing regulations.
    The proposal would also add new sections in 46 CFR parts 31 
(Sec. 31.01-3), 71 (Sec. 71.15-5), 91 (Sec. 91.15-5), and 107 
(Sec. 107.205). These sections would allow the owner or operator of a 
vessel subject to Coast Guard inspection for initial issuance or 
renewal of a certificate of inspection to submit the vessel for 
inspection by a recognized classification society, such as ABS. The 
classification society would inspect the vessel to ensure that it 
complies with applicable international requirements, their Class rules, 
and its U.S. supplement.
    The owner or operator of an eligible vessel who desires to take 
advantage of these provisions would indicate on the Application for 
Inspection of U.S. Vessel (CG-3752) that the vessel has been enrolled 
in an accepted alternate compliance program, naming the classification 
society, and that the inspection would be conducted by that 
classification society. The cognizant Coast Guard Officer-in-Charge of 
Marine Inspection (OCMI) may issue a certificate of inspection (COI) 
based on reports from a recognized classification society, such as ABS, 
that the vessel complies with applicable international requirements, 
the classification society's rules, and its U.S. supplement.
    If the OCMI declines to issue a COI even though the recognized 
classification society's reports indicate the vessel meets the 
applicable standards, the owner may appeal the OCMI's decision under 46 
CFR 1.03-20. If the cognizant OCMI declines to issue a COI based on 
reports from the classification society that the vessel does not meet 
applicable standards, the vessel owner could choose to correct the 
deficiencies and arrange with the classification society for an 
additional inspection, request that the Coast Guard inspect the vessel 
under the other provisions of 46 CFR Ch. I, appeal the decision under 
46 CFR 1.03-35, or appeal via the recognized classification society to 
Chief, Merchant Vessel Inspection and Documentation Division, U.S. 
Coast Guard.

Regulatory Evaluation

    The Coast Guard has determined the economic impact of this proposed 
rule change would be positive and that a full Regulatory Evaluation 
under paragraph 10e of the regulatory policies and procedures of DOT is 
unnecessary. This proposal is not significant under Executive Order 
12866 and Department of Transportation (DOT) Regulatory Policies and 
Procedures (44 FR 11040, February 26, 1979). The purpose of this 
rulemaking is to provide economic relief to the U.S. maritime industry 
without jeopardizing safety.
    The Coast Guard believes this proposal, if adopted, would provide 
an economic benefit to the owners and operators of U.S. flagged 
vessels. Currently, 549 U.S. vessels may be eligible to participate in 
this proposed alternative compliance program. The Coast Guard estimates 
that while a vessel owner may have to pay an additional $5 thousand in 
classification society fees for functions presently performed by the 
Coast Guard, the savings in design, construction and operating costs 
will recover this expense many times over during the lifetime of the 
vessel. Moreover, ships built and maintained to SOLAS 74/83, MARPOL 73/
78, recognized classification society rules and accepted U.S. 
supplement are expected to experience greater competitiveness in the 
worldwide shipping market.
    Additionally, streamlining the certification process will reduce 
time frames for Coast Guard involvement in the Certificate of 
Inspection process from an average of over 50 hours to 10 hours or 
less. Because the vessel is already inspected by the classification 
society, this program will reduce the duplication, decrease vessel 
``down time'' and permit greater scheduling flexibility. Lower 
construction and operating costs, grater flexibility for the vessel in 
the global market and additional availability for vessel hire will 
offset the costs incurred through the alternative plan review and 
inspection process utilizing a recognized classification society. The 
Coast Guard specifically solicits comments on potential costs, savings 
and benefits.
Small Entities

    Under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.), the 
Coast Guard must consider whether this proposal will have significant 
impact on a substantial number of small entities. 
[[Page 32480]] ``Small entities'' include independently owned and 
operated small businesses that are not dominant in their field and that 
otherwise qualify as ``small business concerns'' under section 3 of the 
Small Business Act (15 U.S.C. 632).
    This rule change provides an alternative to complying with existing 
regulations. The Coast Guard believes that rulemaking would have a 
positive economic impact if the owner chooses to participate in the 
alternate compliance program. This rulemaking would have no impact on 
vessel owners who do not choose to participate in this program. 
Therefore, the Coast Guard certifies that under 5 U.S.C. 605(b) this 
rule will not have a significant economic impact on a substantial 
number of small entities.

Collection of Information

    Under the Paperwork Reduction Act (44 U.S.C. 3501 et seq.), the 
Office of Management and Budget (OMB) reviews each rulemaking which 
contains a collection of information requirement to determine if the 
practical value of the information is worth the burden imposed by its 
collection. Information collection requirements include reporting, 
recordkeeping, notification and other similar requirements.
    Without changing the current Application for Vessel Inspection 
process, owners and operators would have the opportunity to declare 
whether the vessel will comply with SOLAS requirements, recognized 
classification society rules and their U.S. supplement or Coast Guard 
regulations. Since the application for inspection is already a 
requirement, this will not impose any additional documentation or 
paperwork requirements on vessel owners or operators. Under the 
memorandum of agreement between Coast Guard and ABS, ABS will provide a 
copy of its reports to the Coast Guard. Future agreements with 
classification societies wishing to be recognized for this program will 
contain similar provisions. The Coast Guard expects that the reports 
compiled by the classification society will be sufficient for Coast 
Guard review purposes. Although under this proposed rule, the 
classification society would only provide copies of its report to the 
Coast Guard with virtually no additional paperwork burden imposed, this 
is subject to OMB approval under the Paperwork Reduction Act.
    This proposal contains collection-of-information requirements in 
the following sections: Sec. 31.01-3, Sec. 71.15-5, Sec. 91.15-5 and 
Sec. 107.205.
    Dot No: New.
    Administration: U.S. Coast Guard.
    Title: Alternate Compliance via Recognized Classification Society 
and U.S. Supplement to Rules.
    Need For Information: Vessel inspection reports are needed to 
document the compliance of a marine vessel with recognized 
classification society rules, the accepted U.S. supplement to rules, 
and applicable international maritime safety and marine environmental 
conventions. Classification societies recognized to participate in this 
program will submit copies of reports they routinely prepare to the 
Coast Guard.
    Proposed Use of Information: The information will be used by the 
Coast Guard to determine if the vessel is in compliance with the 
requirements necessary for issuance of a Certificate of Inspection.
    Frequency of Response: Reports are required whenever the recognized 
classification society inspects a vessel on behalf of the Coast Guard. 
This is generally for the initial issuance of the Certificate of 
Inspection (COI) and whenever the COI must be renewed. Renewal periods 
for vessel Certificates of Inspection are not being changed by this 
proposal. For tank, cargo, and miscellaneous non-nuclear vessels this 
period is two years; for passenger vessels over 100 gross tons and 
miscellaneous nuclear vessels the renewal period is one year; and for 
mobile offshore drilling units the renewal period is two years. A 
separate legislative proposal currently exists that would harmonize 
inspection intervals with international requirements.
    Burden Estimate: There is no additional burden created by this 
rulemaking. The required reported are already being prepared in the 
course of business between the classification society and the vessel 
owner or operator.
    Respondents: The recognized classification societies.
    Forms: None.
    Average Burden Hours Per Respondent: No additional burden is 
created by this rulemaking. The required reported are already being 
prepared in the course of business between the classification society 
and the vessel owner or operator.
    The Coast Guard has submitted the requirements to OMB for review 
under section 3504(h) of the Paperwork Reduction Act. Persons 
submitting comments on the requirements should submit their comments 
both to OMB and to the Coast Guard where indicated under ADDRESSES.

Federalism

    The Coast Guard has analyzed this proposed rule in accordance with 
the principles and criteria contained in Executive Order 12612 and has 
determined it does not have federalism requirements warranting a 
Federalism Assessment. the authority to regulate safety requirements of 
U.S. vessels is committed to the Coast Guard by statute. Furthermore, 
since these vessels tend to move from port to port in the national 
market place, these safety requirements need to be national in scope to 
avoid numerous, unreasonable and burdensome variances. Therefore, this 
action would preempt State action addressing the same matter.

Environment

    Coast Guard Commandant Instruction M16475.1B, Section 2.B.2 
categorically excludes inspection and equipment aspects of this 
rulemaking from further environmental documentation. A Categorical 
Exclusion Determination is available in the docket for inspection or 
copying where indicated under ADDRESSES.
    The Coast Guard also considered the design and construction aspects 
of this rulemaking for environmental impact, and concluded that 
preparation of an Environmental Impact Statement is not necessary. 
Since the combination of classification society rules, applicable 
international conventions and the U.S. supplement to the rules have 
been determined to provide a level of safety equivalent to current 
Coast Guard regulations, the Coast Guard expects that this proposal 
will have no adverse environmental impact. A draft Environmental 
Assessment and a draft Finding of No Significant Impact are available 
in the docket for inspection or copying where indicated under 
ADDRESSES.

List of Subjects

46 CFR Part 30

    Cargo vessels, Foreign relations, Hazardous materials 
transportation, Penalties, Reporting and recordkeeping requirements, 
Seamen, Incorporation by reference.

46 CFR Part 31

    Cargo vessels, Marine safety, Reporting and recordkeeping 
requirements, Incorporation by reference.

46 CFR Part 70

    Marine safety, Passenger vessels, Reporting and recordkeeping 
requirements, Incorporation by reference. [[Page 32481]] 

46 CFR Part 71

    Marine safety, Passenger vessels, Reporting and recordkeeping 
requirements, Incorporation by reference.

46 CFR Part 90

    Cargo vessels, Marine safety, Incorporation by reference.

46 CFR Part 91

    Cargo vessels, Marine safety, Reporting and recordkeeping 
requirements, Incorporation by reference.
46 CFR Part 107

    Marine safety, Oil and gas exploration, Reporting and recordkeeping 
requirements, Vessels, Incorporation by reference.

PART 30--GENERAL PROVISIONS

    1. The authority for part 30 continues to read as follows:

    Authority: 46 U.S.C. 3306, 3703, 49 U.S.C. App. 1804; 49 CFR 
1.45, 1.46; Section 30.01-2 also issued under the authority of 44 
U.S.C. 3507.

    2. Add new Sec. 30.01-4 to read as follows:


Sec. 30.01-4  Incorporation by reference.

    (a) Certain material is incorporated by reference into this 
subchapter with the approval of the Director of the Federal Register 
under 5 U.S.C. 552(a) and 1 CFR part 51. To enforce any edition other 
than that specified in paragraph (b) of this section, the Coast Guard 
must publish notice of the change in the Federal Register and the 
material must be available to the public. All material is available for 
inspection at the Office of the Federal Register, 800 North Capitol 
Street, NW., Suite 700, Washington, DC and at the U.S. Coast Guard, 
Marine Technical and Hazardous Materials Division, 2100 Second St., 
SW., Washington, DC 20593-0001, and is available from the sources 
listed in paragraph (b) of this section.
    (b) The material incorporated by reference in this subchapter and 
the sections affected are as follows:

American Bureau of Shipping (ABS)

Two World Trade Center, 106th Floor, New York, NY 10048
Rules for Building and Classing Steel Vessels, 1995: 31.01-3
U.S. Supplement to ABS rules for Steel Vessels for Vessels on 
International Voyages, 1995: 31.01-3

PART 31--INSPECTION AND CERTIFICATION

    3. The authority for part 31 continues to read as follows:

    Authority: 33 U.S.C 1321(j); 46 U.S.C. 3306, 3703, 5115, 8105; 
49 U.S.C. App. 1984; E.O. 12234, 45 FR 58801, 3 CFR, 1980 Comp., p. 
277; E.O. 11735, 38 FR 21243, 3 CFR 1971-1975 Comp., p. 793; 49 CFR 
1.46.

    4. Add new Sec. 31.01-3 to read as follows:


Sec. 31.01-1  Alternate compliance.

    (a) In lieu of compliance with other provisions of this subchapter, 
the owner or operator of a vessel subject to plan review and inspection 
under this subchapter for initial issuance or renewal of a Certificate 
of Inspection (COI) may submit the vessel for classification, plan 
review and inspection by a recognized classification society to 
determine compliance with applicable international treaties and 
agreements, the classification society's rules, and the U.S. supplement 
prepared by the classification society and accepted by the Coast Guard. 
Recognized classification societies and accepted rules and supplements 
are listed in paragraph (e) of this section.
    (b) A vessel owner or operator wishing to have a vessel inspected 
under paragraph (a) of this section shall submit an Application for 
Inspection of U.S. Vessel (CG-3752) to the cognizant OCMI, and indicate 
on the form that the inspection will be conducted by a recognized 
classification society.
    (c) Based on reports from a recognized classification society that 
a vessel complies with paragraph (a) of this section, the cognizant 
OCMI may issue a certificate of inspection to the vessel. If the OCMI 
declines to issue a certificate of inspection even though the reports 
indicate the vessel meets applicable standards, the vessel owner or 
operator may appeal as provided in subpart 1.03 of this chapter.
    (d) If reports from a reognized classification society indicate 
that a vessel does not comply with paragraph (a) of this section, the 
cognizant OCMI will not issue a certificate of inspection. The vessel 
owner or operator may:
    (1) Correct the reported deficiencies and arrange with the 
classification society for an additional inspection;
    (2) Request inspection by the Coast Guard under other provisions of 
this subchapter; or
    (3) Appeal via the recognized classification society to Chief, 
Merchant Vessel Inspection and Documentation Division, Commandant (G-
MVI), U.S. Coast Guard, 2100 Second St. SW., Washington, D.C. 20593-
0001.
    (e) For the purposes of this section, the following classification 
societies are recognized by the Coast Guard, and their rules and 
supplements are accepted:

American Bureau of Shipping

Two World Trade Center, 106th Floor, New York, NY 10048

    Accepted rules: Rules for Building and Classing Steel Vessels, 
1995.
    Accepted supplement: U.S. Supplement to ABS Rules for Steel 
Vessels for Vessels on International Voyages, 1995.

PART 70--GENERAL PROVISIONS

    5. The authority for part 70 continues to read as follows:

    Authority: 46 U.S.C. 3306, 3703; 49 U.S.C. App. 1804, E.O. 
12234, 45 FR 58801, 3 CFR, 1980 Comp., p. 277; 49 CFR 1.45, 1.46; 
Section 70.01-15 also issued under the authority of 44 U.S.C. 3507.

    6. Add new Sec. 70.01-10 to read as follows:


Sec. 70.01-10  Incorporation by reference.

    (a) Certain material is incorporated by reference into this 
subchapter with the approval of the Director of the Federal Register 
under 5 U.S.C. 552(a) and 1 CFR part 51. To enforce any edition other 
than that specified in paragraph (b) of this section, the Coast Guard 
must publish notice of the change in the Federal Register and the 
material must be available to the public. All material is available for 
inspection at the Office of the Federal Register, 800 North Capitol 
St., NW., Suite 700, Washington, DC and at the U.S. Coast Guard, Marine 
Technical and Hazardous Materials Division, 2100 Second St., SW., 
Washington, DC 20593-0001, and is available from the sources listed in 
paragraph (b) of this section.
    (b) The material incorporated by reference in this subchapter and 
the sections affected are as follows:

American Bureau of Shipping (ABS)

Two World Trade Center, 106th Floor, New York, NY 10048

Rules for Building and Classing Steel Vessels, 1995: 71.15-5
U.S. Supplement to ABS Rules for Steel Vessels for Vessels on 
International Voyages, 1995: 71.15-5

PART 71--INSPECTION AND CERTIFICATION

    8. The authority for part 71 continues to read as follows:

    Authority: 33 U.S.C. 1321(j); 46 U.S.C. 2113, 3306; E.O. 12234, 
45 FR 58801, 3 CFR, 1980 Comp., p. 277; E.O. 11735, 38 CFR 21243, 3 
CFR, 1971-1975 Comp., p. 793; 49 CFR 1.46.

    9. Add new Sec. 71.15-5 to read as follows:


Sec. 71.15-5  Alternate compliance.

    (a) In lieu of compliance with other provisions of this subchapter, 
the owner or operator of a vessel subject to plan [[Page 32482]] review 
and inspection under this subchapter for initial issuance or renewal of 
a Certificate of Inspection (COI) may submit the vessel for 
classification, plan review and inspection by a recognized 
classification society to determine compliance with applicable 
international treaties and agreements, the classification society's 
rules, and the U.S. supplement prepared by the classification society 
and accepted by the Coast Guard. Recognized classification societies 
and accepted rules and supplements are listed in paragraph (e) of this 
section.
    (b) A vessel owner or operator wishing to have a vessel inspected 
under paragraph (a) of this section shall submit an Application for 
Inspection of U.S. Vessel (CG-3752) to the cognizant OCMI, and indicate 
on the form that the inspection will be conducted by a recognized 
classification society.
    (c) Based on reports from a recognized classification society that 
a vessel complies with paragraph (a) of this section, the cognizant 
OCMI may issue a certificate of inspection to the vessel. If the OCMI 
declines to issue a certificate of inspection even though the reports 
indicate the vessel meets applicable standards, the vessel owner or 
operator may appeal as provided in subpart 1.03 of this chapter.
    (d) If reports from a recognized classification society indicate 
that a vessel does not comply with paragraph (a) of this section, the 
cognizant OCMI will not issue a certificate of inspection. The vessel 
owner or operator may:
    (1) Correct the reported deficiencies and arrange with the 
classification society for an additional inspection;
    (2) Request inspection by the Coast Guard under other provisions of 
this subchapter; or
    (3) Appeal via the recognized classification society to Chief, 
Merchant Vessel Inspection and Documentation Division, Commandant (G-
MVI), U.S. Coast Guard, 2100 Second St. SW., Washington, DC 20593-0001.
    (e) For the purposes of this section, the following classification 
societies are recognized by the Coast Guard, and their rules and 
supplements are accepted:

American Bureau of Shipping

Two World Trade Center, 106th Floor, New York, NY 10048

    Accepted rules: Rules for Building and Classing Steel Vessels, 
1995.
    Accepted supplement: U.S. Supplement to ABS Rules for Steel 
Vessels for Vessels on International Voyages, 1995.

PART 90--GENEROUS PROVISIONS

    10. The authority for part 90 continues to read as follows:

    Authority: 46 U.S.C. 3306, 3703; 49 U.S.C. App 1804; E.O. 12234, 
45 FR 58801, 3 CFR, 1980 Comp., p. 277; 49 CFR 1.46.

    11. Add new Sec. 90.01-10 to read as follows:


Sec. 90.01-10  incorporation by reference.

    (a) Certain material is incorporated by reference into this 
subchapter with the approval of the Director of the Federal Register 
under 5 U.S.C. 552(a) and 1 CFR part 51. To enforce any edition other 
than that specified in paragraph (b) of this section, the Coast Guard 
must publish notice of the change in the Federal Register and the 
material must be available to the public. All material is available for 
inspection at the Office of the Federal Register, 800 North Capitol 
St., NW., Suite 700, Washington, DC and at the U.S. Coast Guard, Marine 
Technical and Hazardous Materials Division, 2100 Second St., SW., 
Washington, DC 20593-0001, and is available from the sources listed in 
paragraph (b) of this section.
    (b) The material incorporated by reference in this subchapter and 
the sections affected are as follows:

American Bureau of Shipping (ABS)

Two World Trade Center, 106th Floor, New York, NY 10048

Rules for Building and Classing Steel Vessels, 1995: 91.15-5
U.S. Supplement to ABS Rules for Steel Vessels for Vessels on 
International Voyages, 1995: 91.15-5

PART 91--INSPECTION AND CERTIFICATION

    12. The authority for part 91 continues to read as follows:
    Authority: 33 U.S.C. 1321(j); 46 U.S.C. 3306; E.O. 12234, 45 FR 
58801, 3 CFR, 1980 Comp., p. 277; E.O. 11735, 38 FR 21243, 3 CFR, 
1971-1975 Comp., p. 793; 49 CFR 1.46.

    13. Add new Sec. 91.15-5 to read as follows:


Sec. 91.15-5  Alternate compliance.

    (a) In lieu of compliance with other provisions of this subchapter, 
the owner or operator of a vessel subject to plan review and inspection 
under this subchapter for initial issuance or renewal of a Certificate 
of Inspection (COI) may submit the vessel for classification, plan 
review and inspection by a recognized classification society to 
determine compliance with applicable international treaties and 
agreements, the classification society's rules, and the U.S. supplement 
prepared by the classification society and accepted by the Coast Guard. 
Recognized classification societies and accepted rules and supplements 
are listed in paragraph (e) of this section.
    (b) A vessel may be inspected under paragraph (a) of this section 
only if it has not been subject to Coast Guard intervention or 
enforcement action for violations of this chapter within the thirty-six 
months preceding the inspection. A vessel owner or operator wishing to 
have a vessel inspected under paragraph (a) of this section shall 
submit an Application for Inspection of U.S. Vessel (CG-3752) to the 
cognizant OCMI, and indicate on the form that the inspection will be 
conducted by a recognized classification society.
    (c) Based on reports from a recognized classification society that 
a vessel complies with paragraph (a) of this section, the cognizant 
OCMI may issue a certificate of inspection to the vessel. If the OCMI 
declines to issue a certificate of inspection even though the reports 
indicate the vessel meets applicable standards, the vessel owner or 
operator may appeal as provided in subpart 1.03 of this chapter.
    (d) If reports from a recognized classification society indicate 
that a vessel does not comply with paragraph (a) of this section, the 
cognizant OCMI will not issue a certificate of inspection. The vessel 
owner or operator may:
    (1) Correct the reported deficiencies and arrange with the 
classification society for an additional inspection;
    (2) Request inspection by the Coast Guard under other provisions of 
this subchapter;
    (3) Appeal via the recognized classification society to Chief, 
Merchant Vessel Inspection and Documentation Division, Commandant (G-
MVI), U.S. Coast Guard, 2100 Second St. SW., Washington, DC 20593-0001.
    (e) For the purposes of this section, the following classification 
societies are recognized by the Coast Guard, and their rules and 
supplements are accepted:

American Bureau of Shipping

Two World Trade Center, 106th Floor, New York, NY 10048

    Accepted rules: Rules for Building and Classing Steel Vessels, 
1995.
    Accepted supplement: U.S. Supplement to Rules for Steel Vessels 
for Vessels on International Voyages, 1995

PART 107--INSPECTION AND CERTIFICATION

    14. The authority for part 107 continues to read as follows:

    Authority: 43 U.S.C. 1333; 46 U.S.C. 3306, 5115; 49 CFR 1.45, 
146; Sec. 107.05 also issued under authority of 44 U.S.C. 3507.

    15. Add new Sec. 107.205 to read as follows: [[Page 32483]] 


Sec. 107.205  Alternate compliance.

    (a) In lieu of compliance with other provisions of this subchapter, 
the owner or operator of a vessel subject to plan review and inspection 
under this subchapter for initial issuance or renewal of a Certificate 
of Inspection (COI) may submit the vessel for classification, plan 
review and inspection by a recognized classification society to 
determine compliance with applicable international treaties and 
agreements, the classification society's rules, and the U.S. supplement 
prepared by the classification society and accepted by the Coast Guard. 
Recognized classification societies and accepted rules and supplements 
are listed in paragraph (e) of this section.
    (b) A vessel owner or operator wishing to have a vessel inspected 
under paragraph (a) of this section shall submit an Application for 
Inspection of U.S. Vessel (CG-3752) to the cognizant OCMI, and indicate 
on the form that the inspection will be conducted by a recognized 
classification society.
    (c) Based on reports from a recognized classification society that 
a vessel complies with paragraph (a) of this section, the cognizant 
OCMI may issue a certificate of inspection to the vessel. If the OCMI 
declines to issue a certificate of inspection even though the reports 
indicate the vessel meets applicable standards, the vessel owner or 
operator may appeal as provided in subpart 1.03 of this chapter.
    (d) If reports from a recognized classification society indicate 
that a vessel does not comply with paragraph (a) of this section, the 
cognizant OCMI will not issue a certificate of inspection. The vessel 
owner or operator may:
    (1) Correct the reported deficiencies and arrange with the 
classification society for an additional inspection;
    (2) Request inspection by the Coast Guard under other provisions of 
this subchapter; or
    (3) Appeal via the recognized classification society to Chief, 
Merchant Vessel Inspection and Documentation Division, Command (G-MVI), 
U.S. Coast Guard, 2100 Second St. SW., Washington, DC 20593-0001.
    (e) For the purposes of this section, the following classification 
societies are recognized by the Coast Guard, and their rules and 
supplements are accepted:
    [No classification societies are recognized at this time.]

    Dated: June 12, 1995.
J.C. Card,
Rear Admiral, U.S. Coast Guard, Chief, Office of Marine Safety, 
Security and Environmental Protection.
[FR Doc. 95-15231 Filed 6-21-95; 8:45 am]
BILLING CODE 4910-14-M