[Federal Register Volume 61, Number 250 (Friday, December 27, 1996)]
[Rules and Regulations]
[Pages 68510-68522]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-32801]
[[Page 68509]]
_______________________________________________________________________
Part X
Department of Transportation
_______________________________________________________________________
Coast Guard
_______________________________________________________________________
46 CFR Parts 8, 31, 71, 91, and 107
Vessel Inspection Alternatives; Classification Procedures; Final Rule
Federal Register / Vol. 61, No. 250 / Friday, December 27, 1996 /
Rules and Regulations
[[Page 68510]]
DEPARTMENT OF TRANSPORTATION
Coast Guard
46 CFR Parts 8, 31, 71, 91 and 107
[CGD 95-010]
RIN 2115-AF11
Alternative Compliance via Recognized Classification Society and
U.S. Supplement to Rules
AGENCY: Coast Guard, DOT.
ACTION: Interim rule with request for comments.
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SUMMARY: The Coast Guard is issuing regulations to provide 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 interim rule, the Coast Guard can issue a
certificate of inspection based upon reports by a recognized,
authorized classification society that the vessel complies with the
International Convention for the Safety of Life at Sea, the
International Convention for the Prevention of Pollution from Ships,
other applicable international conventions, classification society
rules and other specified requirements. This new procedure will reduce
the burden on vessel owners and operators by establishing an
alternative to the current Coast Guard inspection system that results
in plan reviews and inspections by the vessel's classification society
as well as by the Coast Guard.
DATES: This interim rule is effective on December 27, 1997. Section
8.440 applies to existing vessels as of July 31, 1997. Comments on this
interim rule must be received on or before March 27, 1997. The Director
of the Federal Register approves the incorporation by reference of
certain publications listed in the regulations as of December 27, 1997.
ADDRESSES: Comments may be mailed to the Executive Secretary, Marine
Safety Council (G-LRA/3406) (CGD 95-010), U.S. Coast Guard
Headquarters, 2100 Second Street SW., Washington, DC 20593-0001, or may
be delivered to room 3406 at the same address between 9:30 a.m. and 2
p.m., Monday through Friday, 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, DC 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 9:30 a.m. and 2 p.m., Monday through Friday,
except Federal holidays. A copy of the material listed in
``Incorporation by Reference'' of this preamble is available for
inspection at room 1304, U.S. Coast Guard Headquarters.
FOR FURTHER INFORMATION CONTACT:
LCDR George P. Cummings, Marine Safety and Environmental Protection (G-
MSE-1), telephone (202) 267-2997, fax (202) 267-4816.
SUPPLEMENTARY INFORMATION: In accordance with 5 U.S.C. 553(d), the
provisions of this interim rule relating to foreign classification
societies are issued without a prior notice of proposed rulemaking and
become effective immediately. The Coast Guard Authorization Act of 1996
(Pub. L. 104-324) removed a restriction that had been imposed on
foreign classification societies that were interested in participating
in the Coast Guard Alternate Compliance Program (ACP). To remove this
restriction in a timely fashion, the Coast Guard is omitting prior
notice and comment under the exception permitted by 5 U.S.C. 553(d)(1).
Request for Comments
The Coast Guard encourages interested persons to participate in
this 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
rule 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 acknowledgement of
receipt of comments should enclose stamped, self-addressed postcards or
envelopes.
The Coast Guard will consider all comments received during the
comment period. It may change this rule 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 the reasons why a hearing
would be beneficial. If it 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.
Regulatory Information
This rule is being published as an interim rule and is being made
effective on the date of publication with the exception of enrollment
of existing vessels in the ACP. The rule is effective on July 31, 1997,
for enrollment of existing vessels in the ACP. This delay is intended
to allow the time necessary for completion of the ACP pilot program and
the required training of Coast Guard personnel. Because the number of
vessel owners seeking to have vessels constructed under the ACP is
expected to be low, the rule will be effective on the date of
publication for new vessel enrollment in the ACP.
Background and Regulatory History
Alternate Compliance Pilot Program
In response to a solicitation for comments regarding regulatory
reform, members of the U.S. maritime industry noted the continuing
economic pressure on the U.S. oceangoing merchant fleet and commercial
shipbuilding industry. Comments were submitted calling for reduction of
the cost disadvantage attributed to Coast Guard inspection and
certification of U.S. merchant vessels in order to improve the
international competitiveness of the U.S. merchant fleet.
In order to address these concerns, the Coast Guard sought a means
to alleviate the cost burdens on the maritime industry that resulted
from the Coast Guard inspection program. The Coast Guard has had
authority under 46 U.S.C. 3116 to rely on reports, documents and
certificates issued by the American Bureau of Shipping (ABS) in
carrying out its responsibilities for safety of U.S. merchant vessels
and to delegate to ABS the inspection or examination of these vessels.
The Coast Guard had in fact delegated to ABS the authority to issue
certain certificates required by international conventions such as the
International Convention for the Safety of Life at Sea, as amended,
(SOLAS) Cargo Ship Safety Construction Certificate. Compliance with
these standards is required for oceangoing vessels, i.e. vessels
engaged in trading with foreign countries. Additionally, insurance
companies require that, before a vessel is insured, it be classed. This
means that a classification society must survey a vessel for compliance
with its class rules. Class rules are rules developed by the particular
classification society to
[[Page 68511]]
cover design, construction and safety of vessels. To ensure compliance
with these class rules and with international standards, classification
societies perform surveys on vessels using qualified marine surveyors.
Many of the items examined by the classification society surveyors are
the same as those examined by Coast Guard marine inspectors in their
inspections for certification.
Thus, there is duplication of effort involving safety of vessels
between the Coast Guard and the ABS that results in extra costs to U.S.
vessel owners. In light of the authority in 46 U.S.C. 3316 to delegate
to ABS, the Coast Guard, in order to address the concerns of the vessel
owners regarding these costs, examined the feasibility of an
alternative to the current situation that would avoid the duplication
involved between ABS and the Coast Guard. A joint Coast Guard/ABS task
force compared the Coast Guard requirements in the Code of Federal
Regulations (CFR) to the class requirements in ABS class rules, SOLAS,
and the International Convention for the Prevention of Pollution from
Ships, as amended, (MARPOL 73/78) concerning the design, construction
and safety systems for oceangoing merchant vessels. The purpose of this
comparison was to identify redundancies between the requirements and to
determine if the class and international requirements, which U.S.
vessels must currently comply with, could be used in place of Coast
Guard regulatory requirements. The standard used was whether compliance
with the class and international standards would achieve a level of
safety equivalent to compliance with Coast Guard regulatory
requirements.
The task force determined that many Coast Guard regulatory
requirements could be satisfied by certification of compliance with ABS
classification rules, SOLAS, MARPOL 73/78, or combination of the three.
This led to the development of a U.S. Supplement to the ABS
classification rules. This supplement addresses those areas where
current Coast Guard requirements are not embodied by either ABS
classification rules or international conventions.
The Coast Guard concluded that the design requirements and survey
provisions of ABS classification rules, applicable international
conventions and the U.S. Supplement to the ABS classification rules
provide a level of safety equivalent to corresponding Federal
regulations.
As a result of this effort, the ACP was developed to reduce
redundant regulatory efforts without jeopardizing safety. The Coast
Guard expects that, under the ACP, vessel owners and operators will
have reduced vessel down time, greater flexibility in scheduling
inspections, and greater flexibility in meeting required standards.
The Coast Guard is conducting an ACP pilot program, which 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 for the ACP. The
Coast Guard plans to conclude this pilot program and fully implement
the ACP on July 31, 1997.
Notice of Proposed Rulemaking
On June 22, 1995, the Coast Guard published a notice of proposed
rulemaking (NPRM) entitled ``Alternate compliance via Recognized
Classification Society and U.S. Supplement to Rules'' in the Federal
Register (60 FR 32478). The NPRM proposed regulatory changes to allow
owners, operators, shipbuilders, and designers of U.S. flagged tank
vessels, passenger vessels, cargo vessels, miscellaneous vessels and
mobile offshore drilling units to use the services of a recognized
classification society to conduct inspection and plan review functions
now performed by the Coast Guard.
The NPRM proposed establishment of the ACP through addition of new
sections in 46 CFR parts 31 (31.01-3), 71 (71.15-5), 91 (91.15-5), and
107 (107.205). These sections would allow the owner or operator of a
vessel to submit the vessel for inspection by a recognized
classification society. The classification society would survey the
vessel and document compliance with applicable international
requirements, class rules and its U.S. supplement. The cognizant Coast
Guard Officer-in-Charge, Marine Inspection could then issue a
certificate of inspection based upon the classification society's
reports documenting that the vessel is classed and that it complies
with all applicable requirements.
Additionally, the NPRM proposed new sections in 46 CFR parts 30
(30.01-4), 70(70.01-10) and 90 (90.01-10) to incorporate by reference
the ABS Class Rules for Building and Classing Steel Vessels, 1996, and
the ABS U.S. Supplement to Class Rules for Building and Classing Steel
Vessels, 1996. When developed, the ABW U.S. Supplement to Class Rules
for Building and Classing Mobile Offshore Drilling Units will be added
to the existing incorporation by reference provisions in 46 CFR
107.115.
Overview of Interim Rule
This rule is published as an interim rule and is effective on the
date of publication except for enrollment of existing vessels into the
ACP. The effective date for application of the ACP to existing vessels,
except for those currently involved in the pilot program, will be
delayed until July 31, 1997 in order to allow the time necessary for
completion of the ACP pilot program and the required training of Coast
Guard personnel.
This interim rule modifies the NPRM in several areas. Changes to
the NPRM are based on public comments received and recent changes to
U.S. law allowing delegation of U.S. statutory authority to inspect and
conduct plan approval to foreign classification societies. Changes to
the NPRM are explained in this preamble.
Additionally, this interim rule establishes a new Part 8 in 46 CFR.
This new part, entitled, ``Vessel Inspection Alternatives'', contains
regulations regarding the ACP, recognition of classification societies,
and future regulations regarding other vessel inspection alternatives.
Coast Guard Recognition and Authorization of a Classification Society
Until the passage of the 1996 Coast Guard Authorization Act (Pub.
L. 104-324, 110 Stat. 3901), the Coast Guard could only delegate marine
safety functions related to vessel plan review and inspection to the
ABS or a similar U.S. classification society. Section 607 of Pub. L.
104-324 amended 46 U.S.C. 3316 to allow delegation of these functions
to a classification society based in a foreign country. This new
authority increases the number of classification societies that may be
authorized to review and approve plans and to conduct vessel
inspections and examinations on behalf of the Coast Guard. This also
means that other classification societies may be utilized in a manner
similar to the ABS under the ACP. But before any classification society
can be delegated authority under this amendment to act on behalf of the
Coast Guard for any purpose, the statute requires that the
classification society be recognized by the Coast Guard. Thus, the
Coast Guard is adopting a structured process to recognize
classification societies other than the ABS for the delegation of
marine safety functions.
Ship structural design has traditionally been covered by
classification society rules. The fundamental motivation for the
creation of classification societies was to meet
[[Page 68512]]
the need of hull underwriters to determine structural fitness before
providing insurance coverage. Over time, and primarily based on service
experience, some classification societies have developed, and continued
to refine, the ``rules'' that address hull structural design.
Classification societies have expanded their services beyond ship
structural design, analysis, and inspection to include various
functions delegated to them on behalf of maritime administrations to
document compliance with international regulations pertaining to other
aspects of ship design and operations. Currently, most classification
societies provide documentation of vessel's structural and mechanical
``fitness-for-service'', a service used by owners in obtaining
insurance.
The Coast Guard will use the term ``recognized'' to indicate that a
classification society has met minimum standards which address general
characteristics and performance of a classification society. Achieving
the status of ``recognized classification society'' will not, in
itself, indicate any specific delegation of authority to the
classification society by the Coast Guard. The Coast Guard will use the
term ``authorized'' to indicate that a recognized classification
society has been delegated the authority to conduct a specific marine
safety function such as plan review, vessel inspection, or insurance of
an international convention certificate. This approach will provide the
necessary flexibility to accommodate determinations of reciprocity and
individual classification society capabilities.
The terms used in the NPRM regarding classification society status
have been modified to reflect this approach. A new section 8.100
defines these terms to clarify that a recognized classification society
must receive authorization to conduct specific delegated functions.
Reciprocity (Section 8.120)
Section 607 of the 1996 Coast Guard Authorization Act amends 46
U.S.C. Sec. 3316 by stating that delegations may be made to foreign
classification societies only to the extent that the foreign country in
which the society is headquartered delegates authority to the ABS and
provides access to ABS to inspect, certify and provide related services
to vessels flagged by that country. Thus, the Coast Guard will not
consider any request to delegate authority until the conditions of
reciprocity have been demonstrated and verified. Additionally, the
Coast Guard may not evaluate a classification society for recognition
until the conditions of reciprocity have been demonstrated and verified
for at lest one of the delegations of authority being sought by the
classification society.
There is no reciprocity clause associated with delegation of Load
Line certification under 46 U.S.C. 5107 or Tonnage certification under
46 U.S.C. 14103.
Recognition of a Classification Society (Section 8.220)
A classification society must be recognized by the Coast Guard in
order to be eligible to receive statutory authority delegated by the
Coast Guard. This includes authority delegated under the ACP.
A classification society that applies for recognition, and is found
to meet the criteria for recognition, will be notified in writing by
the Commandant.
If the Coast Guard determines that a classification society does
not meet the criteria for recognition, the reasons for this
determination will be provided. A classification society may reapply
for recognition when it complies with the criteria for recognition set
forth in the regulation.
Minimum Standards for a Recognized Classification Society (Section
8.230)
In order to become recognized, a classification society must meet
the Coast Guard's minimum standards for a recognized classification
society established in this rule. In developing these minimum
standards, the Coast Guard reviewed several international standards
which address the quality and capability of a classification society.
The standards evaluated by the Coast Guard for this purpose were:
International Maritime Organization (IMO) Resolution A.739(18),
Guidelines for the Authorization of Organizations Acting on Behalf of
the Administration; European Communities Council Directive 94/57/EC;
and the membership conditions of the International Association of
Classification Societies. The Coast Guard's options were to either
invoke the requirements of these standards through an Incorporation by
Reference citation or include selected portions in the text of this
rule. The Coast Guard decided that the existing criteria were not
completely satisfactory and chose to include selected portions, with
some modification, in the rule.
The Coast Guard has incorporated classification society
performance, as indicated by its record under the Coast Guard Port
State Control Program, as an element of the minimum standards for
classification society recognition under this rulemaking. The record of
a particular classification society regarding detention of vessels
classed or certificated by the society is one of the factors considered
in determining boarding priorities for vessels calling in the U.S. This
record represents a key measurement of the current performance of a
classification society. Evaluation of classification society
performance under the Coast Guard Port State Control Program is
deceived in a report to the U.S. Congress entitled Port State Control,
Evaluation of Classification Society Performance, dated May 13, 1996. A
copy of this report is available in the docket for inspection or
copying where indicated under ``ADDRESSES.''
It should be noted that there is a fundamental difference between
the Coast Guard's recognition of a classification society for the
delegation of authority under this rulemaking and any recognition
issued previously under the Coast Guard's Port State Control Program
indicating that the society met the requirements of IMO Resolution
A.739(18). Classification societies found to meet this standard for the
purposes of the Port State Control Program were sent letters indicating
this. The Coast Guard's recognition of a classification society as
meeting IMO Resolution A.739(18) for the purposes of the Port State
Control targeting scheme does not constitute recognition for the
purpose of delegation of Coast Guard vessel safety authorities.
Application for Recognition (Section 8.240)
A classification society must apply for recognition in writing to
the Commandant (G-MSE). Applications should indicate which specific
authority the classification society seeks to have delegated to it by
the Coast Guard. The classification society must provide documentation
with this application to establish that the conditions of reciprocity
have been met for the authority sought to be delegated. Upon
certification from the Coast Guard that the conditions of reciprocity
have been met, the requesting classification society must submit
documentation to establish that they meet the Coast Guard's minimum
standards for a recognized classification society.
Revocation of Recognition (Section 8.260)
A recognized classification society which fails to maintain the
minimum standards will be reevaluated for revocation of its recognized
status.
[[Page 68513]]
Authorization to Perform Delegated Functions
The Coast Guard may authorize a recognized classification society
to perform delegated functions after it has determined that the
classification society is fully capable of conducting that function.
This determination will include a review of applicable classification
society rules and survey procedures. The Coats Guard will review the
submitted material in order to determine whether delegation of
authority to the particular classification society will result in the
equivalent level of safety as that achieved through traditional Coast
Guard performance of that function. When the classification society
seeks ACP delegation, the classification society's class rules will be
reviewed, and a U.S. Supplement to the classification society's class
rules developed, as has been done with the ABS.
If the Coast Guard determines that the classification society's
rules or procedures are not satisfactory, the requested delegation will
not be granted. The Coast Guard will provide information to the
applicant on deficiencies identified in rules or procedures. A
classification society may reapply for the requested authorization
after correction of any deficiencies in its rules or procedures.
Classification society authorization to perform delegated functions
will be promulgated through an authorization agreement.
Existing Outlines of Cooperation between the Coast Guard and
classification societies regarding passenger ship control verification
are not affected by this rulemaking.
Authorization to Issue International Certificates (Section 8.320)
A recognized classification society will be eligible to receive
authorization to issue certain international convention certificates on
behalf of the Coast Guard. The Coast Guard may delegate the following
international convention certifications to a recognized classification
society: International Load Line Certificate; International Tonnage
Certificate; SOLAS Cargo Ship Safety Construction Certificate; SOLAS
Cargo Ship Safety Equipment Certificate; SOLAS Certificate of Fitness
for the Carriage of Dangerous Chemicals in Bulk; SOLAS Certificate of
Fitness for the Carriage of Liquefied Gasses in Bulk; SOLAS Mobile
Offshore Drilling Unit Safety Certificate; MARPOL 73/78 International
Oil Pollution Prevention Certificate; and MARPOL 73/78 International
Oil Pollution Prevention Certificate for the Carriage of Noxious Liquid
Substances in Bulk.
The Coast Guard Authorization Act of 1996 authorizes the Coast
Guard to delegate International Safety Management (ISM) Code
certification to organizations including classification societies. The
procedures for this delegation will be established in separate
rulemaking.
Authorization for Participation in the Alternate Compliance Program
(Section 8.420)
Because of the comprehensive nature of ACP delegation, the Coast
Guard must ensure that a recognized classification society has adequate
experience with exercising delegated authority on behalf of the Coast
Guard. A classification society will be eligible to participate in the
ACP only after it has performed a delegated function related to general
vessel safety assessment for a period of two years. For the purposes of
this interim rule, a delegated function related to general vessel
safety assessment is issuance of the SOLAS Cargo Ship Safety
Construction Certificate or issuance of the SOLAS Cargo Ship Safety
Equipment Certificate. The Coast Guard believes this evaluation period
is necessary to assess the capabilities and performance of a
classification society. The Coast Guard requests comments on the
requirement for this evaluation period.
If, after this evaluation period, the Coast Guard finds that the
classification society has not performed satisfactorily or lacks
adequate experience, the classification society will not be eligible to
receive ACP delegation. The Coast Guard will provide the reason for
this determination to the classification society.
U.S. Supplement to Class Rules (Section 8.430)
If the Coast Guard finds that a classification society is eligible
to receive ACP delegation, the classification society will be required
to prepare a U.S. Supplement to its rules. This supplement will address
areas in which U.S. marine safety regulations are not adequately
covered by the classification society's rules and applicable
international regulations.
Agreement conditions (Section 8.130)
The Coast Guard will enter into a written authorization agreement
with a recognized classification society that meets the standards
necessary to receive delegation of authority. The agreement will define
the scope, terms, conditions and requirements of that delegation.
Any authorization agreement between the Coast Guard and a
recognized classification society must include the agreement conditions
established in this rule. Development of these conditions included
review of Appendix 2 of IMO Resolution A.739(18), Guidelines for the
Authorization of Organizations Acting on Behalf of the Administration,
and the Model Agreement for the Authorization of Recognized
Organizations Acting on Behalf of the Administration, developed by the
IMO Flag State Implementation Subcommittee.
Termination of Authorizations (Sections 8.330 and 8.450)
Loss of recognized status for a classification society will result
in termination of any authorization agreement with the Coast Guard.
A certificate issued by a classification society that has had its
authorization agreement terminated will remain valid until the next
classification society survey associated with that certificate is
required or until the certificate expires.
An owner of any vessel enrolled in the ACP and classed by a
classification society which loses its authority to participate in the
ACP will either have to reclass the vessel with a different
classification society that is authorized to participate in the ACP, or
disenroll the vessel from the ACP.
Acceptance of Plan Review and Inspection Tasks Performed by a
Recognized Classification Society
The Coast Guard may modify Navigation and Vessel Inspection Circuit
(NVIC) 10-82, Acceptance of Plan Review and Inspection Tasks Performed
by the American Bureau of Shipping for New Construction or Major
Modification of U.S. Flag Vessels, to include other recognized
classification societies. This determination will be based on a
classification society's authorization to perform plan review and
inspection functions, delegated under this rulemaking, that are similar
to the tasks addressed in NVIC 10-82.
Acceptance of Standards and Functions Delegated Under Existing
Regulations (Section 8.250)
Existing Coast Guard regulations contain provisions for acceptance
of the standards of recognized classification societies, and for the
delegation of some marine safety functions to recognized classification
societies. Classification society rules will only be accepted as Coast
Guard standards when that classification society has received
authorization to conduct the related function. A recognized
classification society is not permitted to conduct any
[[Page 68514]]
delegated function until it receives a separate written authorization
from the Commandant to conduct that function.
Discussion of comments and changes
The Coast Guard received nine comment letters to the NPRM published
on June 22, 1995. No public hearing was requested and none was held.
The following discussion contains an analysis of comments received and
an explanation of any changes made in the rule.
Regulatory Reform
Three comments indicated the NPRM does not go far enough toward
eliminating the gap between U.S. regulatory standards and those of
other flag states. One comment stated that, in development of the U.S.
Supplement, the Coast Guard did not purge the current regulations of
unique requirements in areas in which adequate international standards
exist. One comment expressed concern that recent regulatory action and
legislation leave U.S. flag operators at a significant cost
disadvantage with respect to vessel rules.
The ACP is one of several elements of the Coast Guard's regulatory
reform initiative. The intent of this rulemaking on the ACP and
recognition of classification societies is to provide a compliance
option to owners and operators of vessels which are classed by
recognized classification societies and that have SOLAS, MARPOL 73/78,
and other applicable international certificates. The ACP will reduce
the current regulatory burden by eliminating the requirement for
duplicative plan review and inspection for certain vessels by both a
classification society and the Coast Guard.
Reducing and eventually eliminating the gap between U.S.
requirements and international standards is a primary goal of Coast
Guard regulatory reform. There are a series of ongoing and recently
completed rulemaking projects which work toward this goal. These
projects eliminate obsolete or unnecessary Coast Guard regulations and
harmonize Coast Guard regulations with international standards.
Because these regulatory reform projects focus on elimination of
many regulations which are unique to U.S. flag vessels, they will
likely reduce the areas in which gaps exist that need to be covered by
U.S. supplements to classification society class rules under the ACP.
However, the U.S. supplement to class rules also contains U.S.
interpretations of international convention regulations. This portion
of the supplement is affected by the proceedings of the IMO as well as
by the Coast Guard regulatory reform initiative. It is, therefore,
unlikely that the need for a U.S. supplement under the ACP will be
entirely eliminated.
Two comments questioned the use of U.S. standards for vessel
equipment as the basis for equivalency determinations under the ACP.
One comment stated that this could result in rejection of equipment for
vessels participating in the ACP that would otherwise be acceptable for
foreign flag vessels under SOLAS, MARPOL 73/78, and ABS class rules.
The ACP is based on a determination of vessel equivalency between the
standards that apply to a vessel enrolled in the ACP and those that
apply to other similar vessels certificated by the Coast Guard. As
discussed above, harmonization with international standards is a
principle goal of the Coast Guard regulatory reform initiative.
Completion of this initiative should eliminate the adverse consequences
raised by this comment.
One comment suggested that consideration be given to elimination of
the requirement for a Certificate of Inspection (COI). The Coast Guard
considered this during the initial development of the ACP and decided
against it. The COI serves an important purpose in addition to serving
as evidence of compliance with vessel inspection requirements because
it also establishes specific vessel manning requirements and
operational restrictions.
One comment stated this rulemaking was consistent with the goals of
the President's National Performance Review and should reduce the
inspection burden on owners and operators. The Coast Guard agrees with
this comment. Goals expressed in the President's National Performance
Review served as a basis for development of the ACP, which will reduce
the burden of compliance with Coast Guard regulations.
Authorization of Classification Societies
Four comments supported Coast Guard delegation to classification
societies other than the ABS under the ACP and, thereby, broaden the
choices of classification societies that would be available to a
participating vessel owner. One comment noted that the criteria for
classification society eligibility for this program has not been
published, and suggested stringent parameters to include criteria
covering size, rules, international network, documented quality, and
technical competence in general.
The Coast Guard Authorization Act of 1996, Pub. L. 104-324, 110
Stat. 3901, broadens Coast Guard authority to delegate by including
foreign classification societies. This allows the Coast Guard to expand
the ACP to include foreign classification societies which meet the
criteria for recognized classification societies and the requirements
for authorization of the delegations necessary to participate in the
ACP. The Coast Guard agrees with the comment that criteria for
recognition should be very stringent and agrees with the suggested
parameters. This rulemking establishes the criteria as suggested.
Conducting the Program
One comment stated that the success of the program is highly
dependent on the Coast Guard's role as auditor. The Coast Guard agrees
with this comment and recognizes that the role of the Coast Guard
auditor under the ACP is substantially different from the traditional
role of the Coast Guard marine inspector. The Coast Guard is redefining
the role of the marine inspector in order to address major changes such
as the ACP. These changes will be reflected in new Coast Guard
procedures and training for marine inspectors.
One comment stated that older U.S. flag ships, which are not
required to meet all of the provisions of SOLAS, are not addressed in
the proposed rulemaking and questioned if this meant that only recently
built ships or future new buildings will be able to enroll in the ACP.
Nonapplicability of specific SOLAS regulations based on vessel age does
not preclude vessel enrollment in the ACP. SOLAS regulations which do
not apply to a vessel due to its age will not be applied to that vessel
by virtue of the fact that it is enrolled in the ACP.
One comment stated that further information on the program should
be distributed to candidates through seminars or meetings. The Coast
Guard has disseminated information on the ACP through several major
marine industry publications, the Federal Register, and Coast Guard
publications. In addition, the Coast Guard is conducting a pilot
program for the ACP. For these reasons, the Coast Guard does not see a
need for a seminar or public meeting to publicize the ACP.
One comment stated that the Coast Guard should not totally remove
itself from vessel inspections, and that the ACP should remain an
option and not a requirement. The ACP is an optional program designed
to provide an alternative means for vessel certification. The
traditional process of
[[Page 68515]]
Coast Guard plan review and vessel inspection will remain available to
all vessel owners and operators.
Two comments addressed Coast Guard oversight of this program and of
classification society performance. An oversight program was developed
as part of the ACP and published in COMMANDANT INSTRUCTION 16711.17,
Oversight of the U.S. Coast Guard's ABS Based Alternate Compliance
Program. Coast Guard oversight ensures that the classification
societies perform their duties and responsibilities in accordance with
the terms and conditions of their authorization agreement, and provides
a means to monitor the performance of plan review and vessel inspection
conducted on behalf of the Coast Guard. The Coast Guard will continue
to board vessels participating in the ACP to conduct annual
inspections. Coast Guard boardings will cover those requirements and
activities not delegated to the classification societies. For example,
boardings will be conducted by the Coast Guard to verify crew
competency in emergency drills and to assess the vessel's condition.
Additionally, Coast Guard oversight will ensure that the vessels
participating in the ACP do not experience any degradation in the level
of safety demonstrated by comparable vessels that continue to be
inspected by the Coast Guard under vessel inspection regulations. Upon
completion of the ACP pilot program, the oversight program will be
evaluated and modified as necessary.
One comment recommended that more flexibility be given to the Coast
Guard Officer in Charge, Marine Inspection (OCMI) concerning evaluation
of the severity of inspection deficiencies that would preclude issuance
of a COI under the ACP. The Coast Guard agrees with this comment and
has modified the regulation to give greater discretion to the OCMI to
evaluate the severity of deficiencies that may allow issuance of a COI.
The revised text is in Section 8.440(d). Guidance is provided to Coast
Guard OCMIs in COMMANDANT INSTRUCTION 16711.18, Procedures for Issuing
COIs to vessels enrolled in the U.S. Coast Guard's ABS Based Alternate
Compliance Program. This guidance allows OCMIs to accept the terms and
conditions of classification society outstanding requirements leading
to issuance of a COI unless they conflict with applicable U.S. law, or
they present a direct and immediate threat to the vessel's crew, the
safety of navigation, or the marine environment.
One comment suggested the Coast Guard add the IMO Mobile Offshore
Drilling Unit (MODU) Safety Certificate to the list of the
international certificates authorized to be issued under the ACP. The
Coast Guard agrees with this comment and has included issuance of the
IMO MODU Safety Certificate on the list of functions which may be
delegated to a recognized classification society. Additionally, the ABS
is currently developing a U.S. MODU Supplement to ABS Class Rules. Upon
completion and Coast Guard acceptance of this supplement and related
survey procedures, the ABS will be authorized to conduct ACP functions
on MODUs.
One comment questioned whether the Coast Guard could maintain the
technical expertise necessary to provide adequate oversight of
classification societies under the ACP considering the reduction in
field level training and vessel inspections opportunities that will
likely result from the ACP. The Coast Guard recognizes the need to
maintain the technical expertise of those individuals who will be
charged with performing this oversight role, its marine inspectors. The
Coast Guard will maintain its capabilities to perform all of the
functions it now performs related to vessel inspection and
certification. In addition to certification of U.S. flag vessels,
marine inspectors with technical expertise are also currently required
for an effective Port State Control Program. The importance of Coast
Guard Port State Control responsibilities ensures a continuing need for
training of, and technical expertise on the part of, Coast Guard marine
inspectors.
One comment questioned the process for obtaining an equivalency
determination for foreign equipment from the ABS under the ACP. The
procedure for ABS equivalency determinations for vessels enrolled in
the ACP is discussed in NVIC 2-95, U.S. Coast Guard's ABS Based
Alternate Compliance Program.
User Fees
Two comments addressed reduction of user fees for vessels
participating in the program. One comment recommended that information
obtained from the pilot program be used to promulgate new user fees
because the anticipated reduction in Coast Guard inspection involvement
for vessels under the ACP should reduce user fees proportionately.
The Coast Guard will modify current vessel inspection user fees
based on information gathered during the ACP pilot program. Any changes
to user fee regulations for vessels enrolled in the ACP will be
promulgated in a separate rulemaking.
The Pilot Program
Two comments recommended that information obtained from the pilot
program be published and used to identify required changes to the
program. The Coast Guard agrees with these comments. The Coast Guard is
collecting data on the ACP pilot program in order to assess the impact
and effectiveness of the ACP. Results of the pilot program will be
compiled in a final report which will be published in the Federal
Register.
Economic Impact
One comment stated that if the rule were implemented and the
surveys were properly planned, the overall cost of inspections and
certification for U.S. shipowners should decrease. The Coast Guard
agrees with this comment. One of the benefits intended to be provided
through the ACP is the reduction of vessel down-time necessary to
accommodate both Coast Guard inspections for certification and
classification society surveys.
One comment stated that this program could have a positive economic
effect for those operators who choose to participate. One comment
questioned the economic benefit to the shipbuilder and ship owner
during the ship acquisition phase and contended that the increase in
ABS involvement would be at an increased cost to the shipbuilder. This
comment also stated that a benefit of the ACP would be an improvement
in the review process response time. The ACP is intended to be a
voluntary alternative compliance method available to the U.S. maritime
industry. Individual operators must evaluate their individual benefits
of participation in this program.
One comment stated that the additional cost for the classification
society surveyor to conduct inspections for the Coast Guard should be
substantially less than the $5,000 estimated in the NPRM, and requested
specific information on the projected additional effort and fees
anticipated by the classification society. The Coast Guard is not
involved with the setting of fees for ACP or any other functions
delegated to classification societies. Classification society fee
information is available from each classification society.
One comment stated that if there were no U.S. Supplement then,
theoretically, there should be no additional cost. As discussed above,
other, ongoing and recently completed regulatory reform
[[Page 68516]]
rulemaking projects work toward eliminating unique Coast Guard
regulations. These regulatory reform rulemakings that harmonize U.S.
vessel regulations with international standards will remove the need to
cover some of the areas that would currently be required to be included
in the supplements to classification society class rules under the ACP.
U.S. interpretations to international conventions, however, will
continue to be covered in classification society supplements.
Additionally, unique U.S. requirements required by U.S. statute will
also be included in classification society supplements.
Specific Provisions
One comment noted that Section 91.15-5(b) of the NPRM prohibited
vessels subject to Coast Guard intervention or enforcement action for
violations of 46 CFR, Chapter I, from participating in the ACP and that
this prohibition was not included in similar sections for other vessel
types. This comment urged removal of this restriction. The Coast Guard
agrees with this comment and has removed the restriction.
Incorporation by Reference
The Director of the Federal Register has approved the material in
Sec. 8.110: ABS Rules for Building and Classing Steel Vessels, 1996,
U.S. Supplement to ABS Rules for Steel Vessels for Vessels on
International Voyages, October 21, 1996, and ANSI/ASQC Q9001-1994,
Quality Systems--Model for Quality Assurance in Design, Development,
Production, Installation, and Servicing, 1994. Copies of the material
area available for inspection at Commandant (G-MSE-1), U.S. Coast Guard
Headquarters, 2100 Second Street SW., Washington, DC 20593-0001. Copies
of the material are available from the sources listed in Sec. 8.110.
Regulatory Evaluation
This rule is not a significant regulatory action under section 3(f)
of Executive Order 12866 and does not require an assessment of
potential costs and benefits under section 6(a)(3) of that order. It
has not been reviewed by the Office of Management and Budget under that
order. It is not significant under the regulatory policies and
procedures of the Department of Transportation (DOT) (44 FR 11040;
February 26, 1979).
The Coast Guard expects the economic impact of this rule to be so
minimal that a full Regulatory Evaluation under paragraph 10e of the
regulatory policies and procedures of DOT is unnecessary.
The Coast Guard expects this rule to 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 optional ACP. The Coast
Guard estimates that while a vessel owner may have to pay an additional
$5,000 in classification society fees for functions presently preformed
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, 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 duplication of effort, decrease
vessel ``down time'' and permit greater scheduling flexibility. Lower
construction and operating costs, greater flexibility for the vessel in
the global market and additional availability for vessel hire will
offset the costs incurred through the alternate 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 the economic impact on small entities of a
rule for which a general notice of proposed rulemaking is required.
``Small entities'' may include (1) small business and not-for-profit
organizations that are independently owned and operated and are not
dominant in their fields and (2) governmental jurisdictions with
populations of less than 50,000. This rule change provides an
alternative to complying with existing regulations. The Coast Guard
believes this rulemaking will have a positive economic impact if the
owner chooses to participate in the ACP. Because of the current
structure of the industry, it is not expected that any small businesses
will be affected by the rule. However, under Section 601 of the
Regulatory Flexibility Act, the Coast Guard has provided a flexible
approach which could benefit any small businesses which choose to enter
this industry. This rulemaking will 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 rule that contains a
collection of information requirement to determine whether the
practical value of the information is worth the burden imposed by its
collection. Collection of information requirements include reporting,
recordkeeping, notification and other similar requirements.
This rule contains collection of information requirements in the
following sections: Secs. 31.01-3, 71.15-5, 91.15-5, and 107.205. The
following particulars apply:
DOT No.: 2115-0626.
OMB Control No.: 2115-0626.
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 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 vessels this period is two
years; for passenger vessels over 100 gross tons 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
[[Page 68517]]
rulemaking. The required reports (120) are already being prepared in
the course of business between the classification society and the
vessel owner or operator. RESPONDENTS: The recognized classification
societies. (60 vessels) FORM(S): None.
Average Burden Hours Per Respondent: No additional burden is
created by this rulemaking. The required reports (2 hours per vessel)
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 the OMB for
review under section 3504(h) of the Paperwork Reduction Act (44 U.S.C.
3501 et seq.), and OMB has approved them. The OMB approval number is
OMB Control Number 2115-0626. Persons submitting comments on the
requirements should submit their comments both to OMB and the Coast
Guard where indicated under ``ADDRESSES.''
Federalism
The Coast Guard has analyzed this rule under the principles and
criteria contained in Executive Order 12612 and has determined that
this rule does not have sufficient federalism implications to warrant 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
will preempt State action addressing the same matter.
Environment
The Coast Guard considered the environmental impact of this rule
and concluded that under paragraph 2.B.2 of Commandant Instruction
M16475.1B, this rule is categorically excluded from further
environmental documentation. This rule is excluded based on its
inspection and equipment aspects. A categorical Exclusion Determination
is available in the docket for inspection or copying where indicated
under ADDRESSES.
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 rulemaking
will have no adverse environmental impact.
List of Subjects
46 CFR Part 8
Administrative practice and procedure, Organization and functions
(Government agencies), Reporting and recordkeeping requirements,
Incorporation by reference.
46 CFR Part 31
Cargo vessels, Marine safety, Reporting and recordkeeping
requirements, Incorporation by reference.
46 CFR Part 71
Marine safety, Passenger vessels, Reporting and recordkeeping
requirements, 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.
For the reasons set out in the preamble, under the authority of 46
U.S.C. 3306, the Coast Guard amends 46 CFR chapter I as follows:
PART 8--[ADDED]
1. Part 8 is added to read as follows:
PART 8--VESSEL INSPECTION ALTERNATIVES
Subpart A--General
Sec.
8.100 Definitions.
8.110 Incorporation by reference.
8.120 Reciprocity.
8.130 Agreement conditions.
Subpart B--Recognition of a Classification Society
8.200 Purpose.
8.210 Applicability.
8.220 Recognition of a classification society.
8.230 Minimum standards for a recognized classification society.
8.240 Application for recognition.
8.250 Acceptance of standards and functions delegated under
existing regulations.
8.260 Revocation of classification society recognition.
Subpart C--International Convention Certificate Issuance.
8.300 Purpose.
8.310 Applicability.
8.320 Classification society authorization to issue international
certificates.
8.330 Termination of classification society authority.
Subpart D--Alternate Compliance Program.
8.400 Purpose.
8.410 Applicability.
8.420 Classification society authorization to participate in the
Alternate Compliance Program.
8.430 U.S. Supplement to class rules.
8.440 Vessel enrollment in the Alternate Compliance Program.
8.450 Termination of classification society authority.
Authority: 46 U.S.C. 3306; 46 U.S.C. 3316, as amended by Sec. 607,
Pub. L. 104-324, 110 Stat. 3901; 46 U.S.C. 3703; 49 CFR 1.45, 1.46.
Subpart A--General
Sec. 8.100 Definitions.
Authorized Classification Society means a recognized classification
society that has been delegated the authority to conduct certain
functions and certifications on behalf of the Coast Guard.
Class Rules means the standards developed and published by a
classification society regarding the design, construction and
certification of commercial vessels.
Commandant means the Commandant of the Coast Guard.
Delegated Function means a function related to Coast Guard
commercial vessel inspection which has been delegated to a
classification society. Delegated functions may include issuance of
international convention certificates and participation in the
Alternate Compliance Program under this part.
Delegated Function Related to General Vessel Safety Assessment
means issuance of the SOLAS Cargo Ship Safety Construction Certificate
or issuance of the SOLAS Cargo Ship Safety Equipment Certificate.
Gross Tons means vessel tonnage measured in accordance with the
International Convention on Tonnage Measurement of Ships, 1969. Vessels
not measured by this convention must be measured in accordance with the
method utilized by the flag state administration of that vessel.
MARPOL 73/78 means the International Convention for the Prevention
of Pollution from Ships, 1973, as modified by the Protocol of 1978, as
amended.
Officer in Charge, Marine Inspection (OCMI) means any person from
the civilian or military branch of the Coast Guard designated as such
by the Commandant and who, under the superintendence and direction of
the Coast Guard District Commander, is in charge of an inspection zone
for the performance of duties with respect to the inspection,
enforcement, and
[[Page 68518]]
administration of title 46, Revised Statutes, and acts amendatory
thereof of supplemental thereto, and rules and regulations thereunder.
Recognized Classification Society means the American Bureau of
Shipping or other classification society recognized by the Commandant
under this part.
SOLAS means International Convention for the Safety of Life at Sea,
1974, as amended.
Sec. 8.110 Incorporated 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, Office
of Design and Engineering Standards, 2100 Second St., SW., Washington,
DC 20593-0001, and is available from the source 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, 1996--31.01-3(b),
71.15-5(b), 91.15-5(b).
U.S. Supplement to ABS Rules for Steel Vessels for Vessels on
International Voyages, 21 October 1996--31.01-3(b), 71.15-5(b), 91.15-
5(b).
American National Standards Institute (ANSI)
11 West 42nd St., New York, NY 10036.
ANSI/ASQC Q9001-1994, Quality Systems-Model for Quality Assurance
in Design, Development, Production, Installation, and Servicing, 1994--
8.230.
Sec. 8.120 Reciprocity.
(a) The Commandant may delegate authority to a classification
society that has its headquarters in a country other than the United
States only to the extent that the flag state administration of that
country delegates authority and provides access to the American Bureau
of Shipping to inspect, certify and provide related services to vessels
flagged by that country.
(b) In order to demonstrate that the conditions described in
paragraph (a) of this section are satisfied, a classification society
must provide to the Coast Guard an affidavit from the government of the
country that the classification society is headquartered in listing the
authorizes delegated by the flag state administration of that country
to the American Bureau of Shipping, and indicating any conditions
related to the delegated authority.
(c) The Commandant will not consider an application for
authorization to perform a delegated function submitted under this part
until the conditions described in paragraph (a) of this section are
satisfied.
(d) The Commandant will not evaluate a classification society for
recognition until the conditions described in paragraph (a) of this
section are satisfied for at least one of the authorized delegations
being sought.
(e) The Commandant may make a delegation regarding load lines under
46 U.S.C. 5107 or measurement of vessels under 46 U.S.C. 14103 without
regard to the conditions described in paragraph (a) of this section.
Sec. 8.130 Agreement conditions.
(a) Delegated functions performed by, and statutory certificates
issued by, an authorized classification society will be accepted as
functions performed by, or certificates issued by, the Coast Guard,
provided that the classification society maintains compliance with all
provisions of its agreement with the Commandant. Any agreement between
the Commandant and a recognized classification society authorizing the
performance of delegated functions will be written and will require the
classification society to comply with each of the following:
(1) Issue any certificates related to a delegated function in the
English language.
(2) Maintain a corporate office in the United States that has
adequate resources and staff to support all delegated functions and to
maintain required associated records.
(3) Maintain all records in the United States related to delegated
functions conducted on behalf of the Coast Guard.
(4) Make available to appropriate Coast Guard representatives
vessel status information and records, including outstanding vessel
deficiencies or classification society recommendations, in the English
language, on all vessels for which the classification society has
performed any delegated function on behalf of the coast Guard.
(5) Report to the commandant (G-MOC) the names and official numbers
of any vessels removed from class for which the classification society
has performed any delegated function on behalf of the Coast Guard and
include a description of the reason for the removal.
(6) Report to the Commandant (G-MOC) all port state detentions on
all vessels for which the classification society has performed any
delegated function on behalf of the Coast Guard.
(7) Annually provide the Commandant (G-MOC) with its register of
classed vessels.
(8) Ensure vessels meet all requirements for class of the accepting
classification society prior to accepting vessels transferred from
another classification society.
(9) Suspend class for vessels that are overdue for special renewal
or annual survey.
(10) Attend any vessel for which the classification society has
performed any delegated function on behalf of the Coast Guard at the
request of the appropriate Coast Guard officials.
(11) Honor appeal decisions made by the Commandant (G-MSE) or
Commandant (G-MOC) on issues related to delegated functions.
(12) Apply U.S. flag administration interpretations, when they
exist, to international conventions for which the classification
society has been delegated authority to certificate or perform other
functions on behalf of the Coast Guard.
(13) Obtain approval from the Commandant (G-MSE) prior to granting
exemptions from the requirements of international conventions, class
rules, and the U.S. supplement to class rules.
(14) Make available to the Coast Guard all records, in the English
language, related to equivalency determinations or approvals made in
the course of delegated functions conducted on behalf of the Coast
Guard.
(15) Report to the Coast Guard all information specified in the
agreement at the specified frequency and to the specified Coast Guard
office or official.
(16) Grant the Coast Guard access to all plans and documents,
including reports on surveys, on the basis of which certificates are
issued or endorsed by the classification society.
(17) Identify a liaison representative to the Coast Guard.
(18) Provide regulations, rules, instructions and report forms in
the English language.
(19) Allow the Commandant (G-M) to participate in the development
of class rules.
(20) Inform the Commandant (G-M) of all proposed changes to class
rules.
[[Page 68519]]
(21) Provide the Commandant (G-M) the opportunity to comment on any
proposed changes to class rules and to respond to the classification
society's disposition of the comments made by the Coast Guard.
(22) Furnish information and required access to the Coast Guard to
conduct oversight of the classification society's activities related to
delegated functions conducted on behalf of the Coast Guard.
(23) Allow the Coast Guard to accompany internal and external
quality audits and provide written results of such audits to
appropriate Coast Guard representatives.
(24) Provide the Coast Guard access necessary to audit the
authorized classification society to ensure that it continues to comply
with the minimum standards for a recognized classification society.
(25) Use only exclusive surveyors of that classification society to
accomplish all work done on behalf of, or pursuant to any delegation
from, the Coast Guard.
(26) Allow its surveyors to participate in training with the Coast
Guard regarding delegated functions.
(b) Amendments to an agreement between the Coast Guard and an
authorized classification society will become effective only after
consultation and written agreement between parties.
(c) Agreements may be terminated by one party only upon written
notice to the other party. Termination will occur sixty days after
written notice is given.
Subpart B--Recognition of a Classification Society
Sec. 8.200 Purpose.
This subpart establishes criteria and procedures for vessel
classification societies to obtain recognition from the Coast Guard.
This recognition is necessary in order for a classification society to
become authorized to perform vessel inspection and certification
functions delegated by the Coast Guard as described in this part.
Sec. 8.210 Applicability.
This subpart applies to all vessel classification societies seeking
recognition by the Coast Guard.
Sec. 8.220 Recognition of a classification society.
(a) A classification society must be recognized by the Commandant
before it may receive statutory authority delegated by the Coast Guard.
(b) In order to become recognized, a classification society must
meet the requirements of Sec. 8.230.
(c) A classification society found to meet the criteria for
recognition will be notified in writing by the Commandant.
(d) If the Coast Guard determines that a classification society
does not meet the criteria for recognition, the Coast Guard will
provide the reason for this determination.
(e) A classification society may reapply for recognition upon
correction of the deficiencies identified by the Coast Guard.
Sec. 8.230 Minimum standards for a recognized classification society.
(a) In order to receive recognition by the Coast Guard a
classification society must:
(1) Establish that it has functioned as an international
classification society for at least 30 years with its own class rules;
(2) Establish that it has a history of appropriate corrective
actions in addressing vessel casualties and cases of nonconformity with
class rules;
(3) Establish that it has a history of appropriate changes to class
rules based on their application and the overall performance of its
classed fleet;
(4) Have a total classed tonnage of at least 10 million gross tons;
(5) Have a classed fleet of at least 1,500 ocean-going vessels over
100 gross tons;
(6) Have a total classed tonnage of ocean-going vessels over 100
gross tons totaling no less than 8 million gross tons;
(7) Publish and maintain class rules in the English language for
the design, construction and certification of ships and their
associated essential engineering systems;
(8) Maintain written survey procedures in the English language;
(9) Have adequate resources, including research, technical, and
managerial staff, to ensure appropriate updating and maintaining of
class rules and procedures;
(10) Have adequate resources and geographical coverage to carry out
all plan review and vessel survey activities associated with delegated
functions as well as classification society requirements;
(11) Employ a minimum of 150 exclusive surveyors;
(12) Have adequate criteria for hiring and qualifying surveyors and
technical staff;
(13) Have an adequate program for continued training of surveyors
and technical staff;
(14) Have a corporate office in the United States that provides a
continuous management and administrative presence;
(15) Maintain an internal quality system based on ANSI/ASQC Q9001
or an equivalent quality standard;
(16) Ensure classed vessels comply with class rules;
(17) Ensure serviced vessels comply with all statutory requirements
related to delegated functions;
(18) Monitor all activities related to delegated functions for
consistency and required end-results;
(19) Maintain and ensure compliance with a Code of Ethics that
recognizes the inherent responsibility associated with delegation of
authority;
(20) Not be under the financial control of shipowners or
shipbuilders, or of others engaged commercially in the manufacture,
equipping, repair or operation of ships;
(21) Not be financially dependent on a single commercial enterprise
for its revenue;
(22) Not have any business interest in, or share of ownership of,
any vessel in its classed fleet; and
(23) Not be involved in any activities which could result in a
conflict of interest.
(b) Recognition will be granted when it is established that the
classification society has an acceptable record of vessel detentions
attributed to classification society performance under the Coast Guard
Port State Control Program.
Sec. 8.240 Application for recognition.
(a) A classification society must apply for recognition in writing
to the Commandant (G-MSE).
(b) An application must indicate which specific authority the
classification society seeks to have delegated.
(c) Upon verification from the Coast Guard that the conditions of
reciprocity have been met in accordance with Sec. 8.120, the requesting
classification society must submit documentation to establish that it
meets the requirements of Sec. 8.230.
Sec. 8.250 Acceptance of standards and functions delegated under
existing regulations.
(a) Classification society class rules will only be accepted as
equivalent to Coast Guard regulatory standards when that classification
society has received authorization to conduct a related delegated
function.
(b) A recognized classification society may not conduct any
delegated function under this title until it receives a separate
written authorization from the Commandant to conduct that specific
function.
Sec. 8.260 Revocation of classification society recognition.
A recognized classification society which fails to maintain the
minimum
[[Page 68520]]
standards established in this part will be reevaluated for possible
revocation of its recognized status.
Subpart C--International Convention Certificate Issuance
Sec. 8.300 Purpose.
This subpart establishes options for vessel owners and operators to
obtain required international convention certification through means
other than those prescribed elsewhere in this chapter.
Sec. 8.310 Applicability.
This subpart applies to:
(a) Recognized classification societies; and
(b) All U.S. flag vessels that engage in international voyages and
are classed by a recognized classification society that is authorized
by the Coast Guard to issue the applicable international certificate as
specified in this subpart.
Sec. 8.320 Classification society authorization to issue international
certificates.
(a) The Commandant may authorize a recognized classification
society to issue certain international convention certificates.
Authorization will be based on review of:
(1) Applicable class rules; and
(2) Applicable classification society procedures.
(b) The Coast Guard may delegate issuance of the following
international convention certificates to a recognized classification
society:
(1) International Load Line Certificate;
(2) International Tonnage Certificate;
(3) SOLAS Cargo Ship Safety Construction Certificate;
(4) SOLAS Cargo Ship Safety Equipment Certificate;
(5) SOLAS Certificate of Fitness for the Carriage of Dangerous
Chemicals in Bulk;
(6) SOLAS Certificate of Fitness for the Carriage of Liquefied
Gasses in Bulk;
(7) SOLAS Mobile Offshore Drilling Unit Safety Certificate;
(8) MARPOL 73/78 International Oil Pollution Prevention
Certificate; and
(9) MORPOL 73/78 International Oil Pollution Prevention Certificate
for the Carriage of Noxious Liquid Substances in Bulk.
(c) The Coast Guard will enter into a written agreement with a
recognized classification society authorized to issue international
convention certificates. This agreement will define the scope, terms,
conditions and requirements of that delegation. Conditions of these
agreements are presented in Sec. 8.130.
Sec. 8.330 Termination of classification society authority.
(a) The Coast Guard may terminate an authorization agreement with a
classification society if:
(1) The Commandant revokes the classification society's
recognition, as specified in Sec. 8.260; or
(2) The classification society fails to comply with the conditions
of the authorization agreement as specified in Sec. 8.130.
(b) Certificates issued by a classification society which has had
its authorization terminated will remain valid until the next
classification society survey associated with that certificate is
required or until the certificate expires, whichever occurs first.
Subpart D--Alternate Compliance Program
Sec. 8.400 Purpose.
This subpart establishes an alternative to subpart 2.01 of this
chapter for certification of United States vessels.
Sec. 8.410 Applicability.
This section applies to:
(a) Recognized classification societies; and
(b) All U.S. flag vessels that engage in international voyages and
are classed by a recognized classification society that is authorized
by the Coast Guard to participate in the Alternate Compliance Program
(ACP) as specified in this subpart.
Sec. 8.420 Classification society authorization to participate in the
Alternate Compliance Program.
(a) The Commandant may authorize a recognized classification
society to participate in the ACP. Authorization will be based on a
satisfactory review of:
(1) Applicable class rules; and
(2) Applicable classification society procedures.
(b) Authorization for a recognized classification society to
participate in the ACP will require development of a U.S. Supplement to
the society's class rules that meets the requirements of Sec. 8.430 of
this part, which must be accepted by the Coast Guard.
(c) A recognized classification society will be eligible to receive
authorization to participate in the ACP only after it has performed a
delegated function related to general vessel safety assessment, as
defined in Sec. 8.100, for a two-year period.
(d) If, after this two-year period, the Coast Guard finds that the
recognized classification society has not demonstrated the necessary
satisfactory performance or lacks adequate experience, the recognized
classification society will not be eligible to participate in the ACP.
The Coast Guard will provide the reason for this determination to the
recognized classification society.
(e) The Coast Guard will enter into a written agreement with a
recognized classification society authorized to participate in the ACP.
This agreement will define the scope, terms, conditions and
requirements of the necessary delegation. Conditions of this agreement
are presented in Sec. 8.130.
Sec. 8.430 U.S. Supplement to class rules.
Prior to receiving authorization to participate in the ACP, a
recognized classification society must prepare, and receive Commandant
(G-MSE) approval of, a U.S. Supplement to the recognized classification
society's class rules. This supplement must include all regulations
applicable for issuance of a Certificate of Inspection (COI) which are
not, in the opinion of the Commandant, adequately established by either
the class rules of that classification society or applicable
international regulations.
Sec. 8.440 Vessel enrollment in the Alternate Compliance Program.
(a) In place of compliance with other applicable provisions of this
title, the owner or operator of a vessel subject to plan review and
inspection under this subchapter for initial issuance or renewal of a
COI may submit the vessel for classification, plan review and
inspection by a recognized classification society authorized by the
Coast Guard to determine compliance with applicable international
treaties and agreements, the classification society's class rules, and
the U.S. Supplement prepared by the classification society and accepted
by the Coast Guard.
(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 an authorized
classification society.
(c) Based on reports from an authorized classification society that
a vessel complies with applicable international treaties and
agreements, the classification society's class rules, and the U.S.
Supplement prepared by the classification society and accepted by the
Coast Guard, 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 made by the authorized
classification society indicate that the vessel meets applicable
standards, the vessel owner or operator may appeal the
[[Page 68521]]
OCMI decision as provided in subpart 1.03 of this chapter.
(d) If reports from an authorized classification society indicate
that a vessel does not comply with applicable international treaties
and agreements, the classification society's class rules, and the U.S.
Supplement prepared by the classification society and accepted by the
Coast Guard, the cognizant OCMI may decline to issue a certificate of
inspection. If the OCMI declines to issue a certificate of inspection,
the vessel owner or operator may:
(1) Correct the reported deficiencies and make arrangements 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 authorized classification society to the Chief,
Office of Compliance, Commandant (G-MOC), U.S. Coast Guard, 2100 Second
St., SW., Washington, DC 20593-0001.
Sec. 8.450 Termination of classification society authority.
(a) The Coast Guard may terminate an authorization agreement with a
classification society if:
(1) The Commandant revokes the classification society's
recognition, as specified in Sec. 8.260; or
(2) The classification society fails to comply with the conditions
of the authorization agreement as specified in Sec. 8.130.
(b) Owners or operators of vessels enrolled in the ACP and classed
by a classification society that has its authority to participate in
the ACP terminated must either:
(1) Change the classification society for the vessel to a
classification society that is authorized to participate in the ACP; or
(2) Disenroll the vessel from the ACP.
PART 31--INSPECTION AND CERTIFICATION
2. The authority citation for part 31 is revised to read as
follows:
Authority: 33 U.S.C. 1321(j); 46 U.S.C. 3306; 46 U.S.C. 3316, as
amended by Sec. 607, Pub. L. 104-324, 110 Stat. 3901; 46 U.S.C.
3703, 5115, 8105; 49 U.S.C. App 1804; 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.
Sec. 31.01-3 [Added]
3. Section 31.01-3 is added to read as follows:
Sec. 31.01-3 Alternate compliance.
(a) In place of compliance with other applicable 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 may comply with the Alternate Compliance
Program provisions of part 8 of this chapter.
(b) For the purposes of this section, the following classification
societies are authorized by the Coast Guard, and their class rules and
supplements are accepted:
American Bureau of Shipping
Two World Trade Center, 106th Floor, New York, NY 10048.
Accepted Class Rules: Rules for Building and Classing Steel
Vessels, 1996.
Accepted U.S. Supplements: U.S. Supplement to ABS Rules for
Steel Vessels for Vessels on International Voyages, October 21,
1996.
PART 71--INSPECTION AND CERTIFICATION
4. The authority citation for part 71 is revised to read as
follows:
Authority: 33 U.S.C. 1321(j); 46 U.S.C. 2113, 3306; 46 U.S.C.
3316, as amended by Sec. 607, Pub. L. 104-324, 110 Stat. 3901; E.O.
12234, 45 FR 58801, 3 CFR, 1980 Comp., p. 277; E.O. 12777, 56 FR
54757, 3 CFR 1991 Comp., p. 351; 49 CFR 1.46.
Sec. 71.15-5 [Added]
5. Section 71.15-5 is added to read as follows:
Sec. 71.15-5 Alternate compliance.
(a) In place of compliance with other applicable 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 may comply with the Alternate Compliance
Program provisions of part 8 of this chapter.
(b) For the purposes of this section, the following classification
societies are authorized by the Coast Guard, and their class rules and
supplements are accepted:
American Bureau of Shipping
Two World Trade Center, 106th Floor, New York, NY 10048.
Accepted Class Rules: Rules for Building and Classing Steel
Vessels, 1996.
Accepted U.S. Supplements: U.S. Supplement to ABS Rules for
Steel Vessels for Vessels on International Voyages, October 21,
1996.
PART 91--INSPECTION AND CERTIFICATION
6. The authority citation for part 91 is revised to read as
follows:
Authority: 33 U.S.C. 1321(j); 46 U.S.C. 3306; 46 U.S.C. 3316, as
amended by Sec. 607, Pub. L. 104-324, 110 Stat. 3901; 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.
Sec. 91.15-5 [Added]
7. Section 91.15-5 is added to read as follows:
Sec. 91.15-5 Alternate compliance.
(a) In place of compliance with other applicable 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 may comply with the Alternate Compliance
Program provisions of part 8 of this chapter.
(b) For the purposes of this section, the following classification
societies are authorized by the Coast Guard, and their class rules and
supplements are accepted:
American Bureau of Shipping
Two World Trade Center, 106th Floor, New York, NY 10048.
Accepted Class Rules: Rules for Building and Classing Steel
Vessels, 1996.
Accepted U.S. Supplements: U.S. Supplement to ABS Rules for
Steel Vessels for Vessels on International Voyages, October 21,
1996.
PART 107--INSPECTION AND CERTIFICATION
8. The authority citation for part 107 is revised to read as
follows:
Authority: 43 U.S.C. 1333; 46 U.S.C. 3306; 46 U.S.C. 3316, as
amended by Sec. 607, Pub. L. 104-324, 110 Stat. 3901; 46 U.S.C.
5115; 49 CFR 1.45, 1.46; Sec. 107.05 also issued under authority of
44 U.S.C. 3507.
Sec. 107.205 [Added]
9. Section 107.205 is added to read as follows:
Sec. 107.205 Alternate compliance.
(a) In place of compliance with other applicable 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 may comply with the Alternate Compliance
Program provisions of part 8 of this chapter.
(b) For the purposes of this section, the following classification
societies are authorized by the Coast Guard, and their class rules and
supplements are accepted:
(No classification societies are authorized at this time)
[[Page 68522]]
Dated: December 11, 1996.
J.C. Card,
Rear Admiral, U.S. Coast Guard, Assistant Commandant for Marine Safety
and Environmental Protection.
[FR Doc. 96-32801 Filed 12-26-96; 8:45 am]
BILLING CODE 4810-14-M