[Federal Register Volume 67, Number 82 (Monday, April 29, 2002)]
[Rules and Regulations]
[Pages 21062-21087]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-9832]



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Part II





Department of Transportation





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46 CFR Parts 71, et al.



Alternate Hull Examination Program for Certain Passenger Vessels, and 
Underwater Surveys for Nautical School, Offshore Supply, Passenger and 
Sailing School Vessels Coast Guard; Interim Final Rule

  Federal Register / Vol. 67 , No. 82 / Monday, April 29, 2002 / Rules 
and Regulations  

[[Page 21062]]


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DEPARTMENT OF TRANSPORTATION

46 CFR Parts 71, 114, 115, 125, 126, 167, 169, 175 and 176

[USCG-2000-6858]
RIN 2115-AF95


Alternate Hull Examination Program for Certain Passenger Vessels, 
and Underwater Surveys for Nautical School, Offshore Supply, Passenger 
and Sailing School Vessels Coast Guard

AGENCY: Coast Guard, DOT.

ACTION: Interim Rule with request for comments.

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SUMMARY: The Coast Guard is establishing an alternative hull 
examination program for certain passenger vessels. This rule 
establishes the option of alternating drydock examinations with 
underwater surveys for nautical school, offshore supply, passenger and 
sailing school vessels. This rule also establishes an examination 
process that gives industry additional latitude in scheduling 
inspections and will create parity between passenger vessels and all 
other Coast Guard-inspected vessels. We expect this rule to result in a 
reduction of time and paperwork associated with Coast Guard vessel 
inspections and examinations.

DATES: This interim rule will be effective on June 28, 2002. Comments 
and related material must reach the Docket Management Facility on or 
before July 29, 2002. Comments sent to the Office of Management and 
Budget (OMB) on collection of information must reach OMB on or before 
June 28, 2002.

ADDRESSES: To make sure your comments and related material are not 
entered more than once in the docket, please submit them by only one of 
the following means:
    (1) By mail to the Docket Management Facility (USCG-2000-6858), 
U.S. Department of Transportation, room PL-401, 400 Seventh Street SW., 
Washington, DC 20590-0001.
    (2) By hand delivery to room PL-401 on the Plaza level of the 
Nassif Building, 400 Seventh Street SW., Washington, DC, between 9 a.m. 
and 5 p.m., Monday through Friday, except Federal holidays. The 
telephone number is 202-366-9329.
    (3) By fax to the Docket Management Facility at 202-493-2251.
    (4) Electronically through the Web Site for the Docket Management 
System at http://dms.dot.gov.
    You must also mail comments on collection of information 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 Docket Management Facility maintains the public docket for this 
rulemaking. Comments and material received from the public, as well as 
documents mentioned in this preamble as being available in the docket, 
will become part of this docket and will be available for inspection or 
copying at room PL-401 on the Plaza level of the Nassif Building, 400 
Seventh Street SW., Washington, DC, between 9 a.m. and 5 p.m., Monday 
through Friday, except Federal holidays. You may also find this docket 
on the Internet at 
http://dms.dot.gov.

FOR FURTHER INFORMATION CONTACT: For questions on this interim rule, 
call Don Darcy, Office of Standards Evaluation and Development (G-MSR), 
Coast Guard, at 202-267-1200. For questions on viewing or submitting 
material to the docket, call Dorothy Beard, Chief, Dockets, Department 
of Transportation, at 202-366-9329.

SUPPLEMENTARY INFORMATION:

Request for Comments

    We encourage you to participate in this rulemaking by submitting 
written comments and related material. The comment period for this 
rulemaking is 90 days. If you choose to submit your comments, please 
include your name and address, identify the docket number for this 
rulemaking (USCG-2000-6858), indicate the specific section of this 
document to which each comment applies, and give the reason for each 
comment. You may submit your comments and material by mail, hand 
delivery, fax, or electronic means to the Docket Management Facility at 
the address under ADDRESSES; but please submit your comments and 
material by only one means. If you submit them by mail or hand 
delivery, submit them in an unbound format, no larger than 8\1/2\ by 11 
inches, suitable for copying and electronic filing. If you submit them 
by mail and would like to know they reached the Facility, please 
enclose a stamped, self-addressed postcard or envelope. We will 
consider all comments and material received during the comment period. 
We may change the final rule in view of them.

Public Meeting

    We do not now plan to hold a public meeting. But you may submit a 
request for one to the Docket Management Facility at the address under 
ADDRESSES explaining why one would be beneficial. If we determine that 
one would aid this rulemaking, we will hold one at a time and place 
announced by a later notice in the Federal Register.

Background and Purpose

Alternate Hull Examination (AHE) Program

    In February 1997, the Riverboat Gaming Maritime Association (RGMA) 
of East Peoria, Illinois, wrote to the Coast Guard, asking if its 
member vessels may undergo hull examinations while afloat as an 
alternative to the examination at drydock that currently is required by 
our regulations. Many of RGMA's member vessels operate locally, are 
landlocked, and do not have drydock facilities of adequate size within 
a reasonable distance. They also operate in the low risk environments 
of fresh water rivers, protected lakes, near shore, or in shallow 
water. While reviewing RGMA's request, the Coast Guard considered the 
low risk environments in which these vessels operate and the advances 
in underwater survey technology. We concluded that an underwater hull 
examination, coupled with a thorough internal examination, could 
adequately evaluate the condition of a vessel's hull.
    In March 1997, the owners of a vessel that operates in a low-risk 
environment requested a 1-year extension for completing their vessel's 
required drydock examination. This vessel operates approximately eight 
times a day on the Des Plaines River in Joliet, IL, in a restricted 
area (between two locks on the river). This vessel was due for its 
first 5-year drydock examination on May 31, 1997. The vessel's owners 
requested a 1-year drydock extension as an interim measure, pending the 
Coast Guard review of the proposed hull examination alternative.
    In May 1997, along with a routine drydock extension survey, we 
observed a demonstration of the underwater survey methods currently 
used as industry practice. We determined that the survey results alone 
were sufficient to grant this vessel a 1-year drydock extension to May 
1998, in accordance with 46 CFR 71.50-3. Under 46 CFR 71.50-3, the 
Commandant may allow extensions of the examination intervals between 
drydock examinations and internal structural examinations. The 
underwater survey procedures observed in the demonstration will be 
established by this rulemaking under the AHE Program.
    Based on the results of the underwater survey demonstration, the 
Coast Guard created a pilot program that allows

[[Page 21063]]

owners or operators of qualified vessels to undergo an alternative hull 
examination process. This examination process includes an underwater 
survey and an internal structural examination along with annual 
condition assessments and scheduled preventative maintenance. Under 
this pilot program, the Coast Guard considers a drydock extension of up 
to 30 months for vessels that operate in low-risk environments.
    To establish criteria for this pilot program, the Coast Guard 
Office of Compliance (G-MOC) published a Policy Letter 3-98 on March 5, 
1998, entitled ``Drydock Extensions for Certain Passenger Vessels.'' 
This policy letter provides specific eligibility criteria, outlines 
application requirements, and establishes the survey criteria for these 
special drydock extensions. On March 5, 1998, the Coast Guard published 
a notice in the Federal Register (63 FR 10777) announcing that the G-
MOC Policy Letter would be incorporated into regulations.
    In April 1998, the first vessel in the pilot program underwent a 
second drydock extension survey using the guidelines in the G-MOC 
Policy Letter. Based on the results of the survey, the Coast Guard 
granted the vessel owner a 30-month drydock extension. After the Coast 
Guard set this precedent, several other gaming vessel owners or 
operators also completed successful surveys and were granted 30-month 
drydock extensions.
    This rulemaking formalizes this pilot program and titles it: the 
Alternate Hull Examination (AHE) Program. The AHE Program allows owners 
or operators of qualifying vessels to receive a credit hull exam of up 
to 60 months, depending on the chosen method of hull examination. Once 
a vessel enters the program, it may continue to participate as long as 
certain requirements are maintained; however, the Officer in Charge of 
Marine Inspections (OCMI) may require it to be dry-docked if the AHE 
Program is deemed inadequate for evaluating its hull or if out-of-water 
repairs are required. The affected industry will save time and money, 
and still meet Coast Guard safety standards by using the advanced 
survey techniques under the AHE Program.

Underwater Survey in Lieu of Drydocking (UWILD)

    Inspected United States passenger vessels, nautical school ships 
(public and civilian), off-shore supply vessels (OSV's) under 46 CFR 
chapter I, subchapter L, and sailing school vessels currently lack the 
regulatory option of alternating drydock examinations with underwater 
surveys. Current regulations grant this option to tank vessels, cargo 
and miscellaneous vessels, oceanographic research vessels, and mobile 
offshore drilling units (MODUs). Recognizing significant advances in 
underwater survey technology over the past decade, the Coast Guard has 
determined that it is safe and appropriate to include passenger 
vessels, nautical school ships, OSV's and sailing school vessels in the 
list of qualifying vessels.
    Current regulations require U.S. passenger vessels operating on 
international voyages to drydock annually; however, their foreign 
counterparts generally drydock every 2 years. International 
regulations, as prescribed by the International Convention for Safety 
of Life at Sea (SOLAS) Chapter I, Regulation 7, require passenger ships 
to undergo annual surveys that include inspection of the outside of the 
ship's bottom. To satisfy this requirement, most classification 
societies, acting on behalf of foreign-flag administrations, accept 
drydock examinations every 2 years with an underwater hull examination 
at the mid-period. United States passenger vessels operating on 
international voyages will gain parity with their foreign counterparts 
by having such an option.
    Navigation and Vessel Inspection Circular (NVIC) 1-89, entitled 
``Underwater Survey Guidance,'' dated March 15, 1989, provides guidance 
for conducting underwater surveys to vessel owners or operators, 
underwater survey diving contractors, and other interested persons. The 
NVIC addresses the application process, the advanced planning 
necessary, and the procedure to be followed during an underwater 
survey.
    This rule will incorporate the guidance from NVIC 1-89 into Coast 
Guard regulations, and allow owners or operators of U.S. passenger 
vessels, nautical school ships, OSV's and sailing school vessels with 
steel or aluminum hulls the option of alternating underwater hull 
surveys with drydock examinations. This voluntary option will result in 
a decrease in the overall costs for vessel owners or operators that 
choose this option. A discussion of the costs and benefits associated 
with this rule is included in the REGULATORY EVALUATION section of this 
publication.

Regulatory History

    This interim rule was originally part of an NPRM published on 
November 15, 1999, that included regulations on Frequency of Inspection 
(64 FR 62018). In order to meet the International Convention for the 
Safety of Life at Sea, 1974, and the International Convention on Load 
Line compliance date of February 3, 2000, and to allow us to analyze 
the large number of comments on the Alternative Hull Examination and 
Underwater Survey portions of the NPRM, the Final Rule published on 
February 9, 2000, (65 FR 6494) dealt only with the Frequency of 
Inspection regulations.

Discussion of Comments

    We received 50 letters of comment to our NPRM. Most of them 
included multiple comments. The comments generally supported the 
rulemaking and highlighted areas where commenters felt we needed 
additional consideration or clarification.
    We have grouped the comments by topic, in order to facilitate our 
response.

General Comments

    We received ten general comments. Three comments requested a public 
meeting. In lieu of a public meeting we are, in effect, extending the 
comment period by publishing this interim rule, rather than a final 
rule. This gives the public an opportunity for further comment.
    We do not plan on holding a public meeting at this time. If you 
feel that a public meeting is still necessary, please send in a comment 
explaining why. Any public meeting would be announced by publication in 
the Federal Register at least thirty days in advance.
    One comment requested a complete regulatory impact analysis and an 
extension of the comment period before a final rule. We have included a 
``Regulatory Evaluation'' in this publication, which addresses the 
expected costs and benefits of the rule. This program is voluntary and, 
for those who choose to implement it, our regulatory evaluation shows 
that it will not result in a significant impact. Therefore, further 
regulatory impact analysis is not necessary.
    One comment stated that not all gaming vessels are members of RGMA, 
and that as a result they are out of the loop and were not able to 
respond to the NPRM as fully as they would like. This interim rule 
gives the public an opportunity for further comment.
    One comment stated that the AHE and underwater survey programs 
would benefit industry without compromising safety. The Coast Guard 
agrees with this comment. We have developed these programs as 
alternatives to drydock examinations for this reason.
    One comment asked how many ROVs have been accepted by the Coast 
Guard. We have accepted one underwater ROV

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for use in the AHE pilot program. This particular ROV incorporates the 
modern hull examination technologies described in this rule.
    One comment stated that these rules would free up Coast Guard 
resources to perform other marine safety tasks. We agree with this 
comment, however, the purpose of this rulemaking is to provide vessel 
owners with a voluntary alternative to traditional dry docking 
requirements.
    One comment expressed concern that the AHE rulemaking process and 
its results are driven by concerns with international treaties. The 
comment stated that this rule would result in economic disaster for at 
least one vessel operating on Lake Tahoe. The comment requested an 
extension of the comment period as well as a public meeting prior to 
final rule.
    The AHE program was driven by concerns of a particular segment of 
the inland passenger vessel industry, not by international treaties. 
The Frequency of Inspection (FOI) portion of the proposed rulemaking 
was intended to align the vessel inspection intervals of U.S. 
regulations with the intervals prescribed in international treaties. 
Although included in the same notice of proposed rulemaking, the AHE 
and underwater survey portions of the proposed rule are not in any way 
associated with the FOI rules and have no connection to international 
treaties. To help address this confusion, we separated the AHE and 
underwater survey portions of the proposed rule from the original 
rulemaking.
    Current regulations under 46 CFR Chapter I, Subchapters H, K, R, 
and T require all passenger vessels and nautical school ships to 
undergo hull examinations at periodic intervals. These examinations 
require that the vessel is hauled out of the water or placed in a 
drydock or slipway.
    We recognize that the drydocking requirement may be particularly 
arduous for certain segments of the passenger vessel industry, and 
therefore the Coast Guard proposed the AHE and UWILD programs. These 
programs offer the owners or operators of qualifying vessels an 
alternative to out-of-water drydock examinations. Because they are 
alternatives, not requirements, the AHE and UWILD programs do not place 
any additional burden on the vessel owners or operators who do not wish 
to participate in these programs. The traditional drydock examination 
is still available. Also, for passenger vessels inspected under 46 CFR 
Chapter I, Subchapters T or K, and sailing school vessels under 46 CFR 
Chapter I, Subchapter R, the Officer-in-Charge, Marine Inspection may 
already give special consideration to authorize departure from the 
drydock examination requirements when warranted by unusual 
circumstances or arrangements.
    One comment disputed the need for a public meeting. The comment 
stated that because all comments and the Coast Guard's responses will 
be part of the public record, there is no justification for the added 
expense of a public hearing. The Coast Guard agrees, in part. We 
recognize that not all interested parties learned of the NPRM until 
late in its comment period. In lieu of a public hearing we are, in 
essence, reopening the comment period for further public comment by 
publishing this interim rule, which is largely the same as what was 
proposed in the NPRM.

Comments on ROV Technology

    We received fourteen comments on ROV technology. One comment stated 
that the ROV must be used in conjunction with divers, not as a stand-
alone inspection tool. The comment recommended changing the wording to 
include ``if an underwater ROV and divers are used''. The comment 
suggested changes throughout parts 71, 115, and 176 that clarify when 
divers are used exclusively and when divers and ROV's are used. We 
agree that an underwater ROV is not a stand-alone inspection tool. 
Coast Guard acceptance of an underwater ROV will be based not only on 
the capabilities of the equipment, but also the qualifications of the 
operating team, the quality assurance and quality control methods 
employed, and the understanding that divers must be used to augment the 
examination process. We have revised the regulations to clarify this.
    One comment strongly agrees with the rule's acknowledgement of the 
ROV's superior technology. We trust that this technology will continue 
to develop, offering convenience and value to industry while relieving 
some of the burden from our inspectors.
    One comment stated that acoustical tracking systems are available 
to divers and offer the same quality of examination. The comment stated 
that this technology should be included as an alternative to the ROV in 
the regulations. Although we have not evaluated the use of acoustical 
tracking systems by divers, the regulations as written do not prevent 
the use of such systems if accepted by the OCMI.
    One comment stated that the rule places too much emphasis on 
electronic data and not enough emphasis on the human element. Much of 
the ROV's work is done with a camera, not the other sensors. We agree 
that the human element plays a vital role in the hull inspection 
process, which is why a Coast Guard-accepted underwater ROV process 
must have a quality assurance program in place (including a training 
and qualification program for the ROV operating team). Secondly, in 
addition to a complete suite of NDT sensors for evaluating hull plating 
thickness, cathodic potential, coating thickness, and fracture 
detection, the ROV must have integrated video equipment to give a 
continuous visual indication of the vessel hull along its path of 
operation.
    One comment stated that the rule should require the calibration of 
ROV instrumentation in accordance with the manufacturer prior to the 
survey. We agree that ROV instrumentation should be calibrated prior to 
the survey and periodically throughout the examination process. The 
quality assurance and quality control methods used by the underwater 
ROV company and operator will be critical to Coast Guard acceptance.
    One comment stated that the ROV technology is unproven and these 
regulations would give one company a monopoly. We anticipate that 
several companies will develop this technology to pursue Coast Guard 
acceptance. We are incorporating the underwater ROV in this rulemaking 
to modernize the regulations and to keep pace with technology that has 
been demonstrated effective on numerous occasions. Along with the Coast 
Guard, the U.S. Navy and the American Bureau of Shipping have accepted 
the underwater ROV use as an alternative method to examine a vessel's 
hull.
    One comment stated that the Coast Guard needs to provide criteria 
for the acceptance of ROV systems and that these criteria should be 
available for comment from the public and marine inspectors. We agree 
that an ROV should meet certain criteria. Based on current observation, 
the ROV process covers approximately 80 percent of the underwater hull. 
With the augmentation of divers, overall hull coverage is increased to 
approximately 90 percent. Therefore, we expect an ROV system will be 
able to assess at least 80 percent of the underwater hull.
    One comment stated that this rule supports the use of cost-
effective technology that is an improvement to marine safety and 
environmental protection. This technology includes a quality program 
with personnel certification, documented procedures, inspection plans, 
traceable calibration of equipment, and test material standards. We 
agree, which is why we are

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incorporating this technology into regulation.
    Two comments stated that this examination method is better than 
drydocking because the process is more comprehensive, accurate, 
repeatable, higher quality, and more cost effective. The ROV gathers 
data in the natural environment without stress or interference. We 
acknowledge that modern underwater ROV technology, when included as 
part of a comprehensive hull examination, can provide a level of safety 
and effectiveness that is equivalent to traditional drydock examination 
methods.
    One comment stated that this technology should be extended to all 
vessels under the jurisdiction of the Marine Safety inspection program. 
Expanding the AHE program to vessels other than subchapter H, K, and T 
is beyond the scope of this rulemaking but could be considered for a 
future rulemaking.
    One comment stated that the regulations should be clarified by 
using the phrase: ``ROV used to the maximum extent possible with the 
remainder of the inspection conducted by divers.'' When a Coast Guard-
accepted underwater ROV is used for examination of the vessel's hull 
plating, we expect that the ROV will be used to the maximum extent 
possible. Divers must be used only for those areas of the hull and 
appurtenances that the ROV cannot access or is otherwise unable to 
evaluate. To clarify this, we are modifying the regulations. They will 
state that using an accepted underwater ROV process to examine the hull 
plating must be ``the predominant means'' and must be used to the 
fullest extent possible.
    One comment disagreed with the statement that using an ROV is 
superior to other examination methods. Numerous gaugings are not that 
important when vessels without epoxy coating and sacrificial anodes can 
operate for 50-60 years. All recent vessels are equipped with epoxy and 
anode protection. An ROV's camera is almost useless at discovering hull 
damage even in clear water because it is difficult to get a three-
dimensional sense on a two-dimensional screen. An internal structural 
exam coupled with divers is just as, if not more, effective than an 
ROV.
    We disagree with this comment. The underwater ROV hull examination 
process has shown to be at least as effective as out-of-water drydock 
examinations. The Coast Guard has observed occasions where the ROV 
process detected hull deficiencies that might have gone undetected 
using traditional drydock and internal hull examination methods.
    One comment responded to another comment we received in the docket 
by stating that an ROV produces an accurate and repeatable record of 
the exam. This comment also suggested that there is a low probability 
that conventional examination methods will detect the need for steel 
plate replacement. We agree with this comment to the extent that there 
are certain instances when plate replacement may be indicated using an 
ROV that may be overlooked by traditional methods, that overall an 
equivalent level of examination is achieved through either method.

Comments on the Definition of Fresh Water

    The Coast Guard received two comments on the definition of fresh 
water. One comment stated that this rule relies on the benign nature of 
freshwater. However, fresh water under certain conditions--downstream 
from industrial out fall or during saltwater incursion--can be 
corrosive also. The commenter recommended that the Coast Guard set a 
standard for the acidity and conductivity of fresh water.
    We recognize that certain conditions can cause accelerated 
corrosion in fresh water. These conditions are accounted for in the 
regulations that prescribe the drydocking intervals for Coast Guard-
inspected commercial vessels and also for examination intervals under 
the AHE and underwater survey programs. It is left to the local OCMI to 
determine whether a vessel's area of operation is in fresh or salt 
water. The OCMI is given the same discretion for the AHE program.
    The second comment stated that vessels using improperly designed, 
installed, and maintained shore ties may be destroying the vessel's 
immersed metal surfaces even though the vessel is in a benign 
environment. Regulations should require an initial and follow up survey 
of shore ties and prohibit electrical potentials and stray electrical 
currents for the vessel to be in the AHE program.
    Stray current corrosion is not unique to vessels in the AHE 
program. The destruction caused by this type of corrosion may be rapid. 
The owner must be vigilant and ensure the integrity of any shore tie 
frequently.

Comments on Piping

    One comment stated that piping outboard of skin valves could not be 
adequately examined using underwater techniques (UT). Regulations 
should require thorough UT gauging of piping and connections of vessels 
in the AHE and UWILD programs. We disagree with this comment. The 
piping outboard of skin valves can be adequately examined when the 
through-hull piping is mechanically plugged and sea valves are removed. 
If the condition of the piping is questionable, the marine inspector 
has the authority to require non-destructive testing, as appropriate.

Comments on Sec. 71.50-5

    One comment believed that there is a typo in this section: instead 
of drydock, internal, or underwater survey; it says drydock and 
underwater survey. Because of this typo, there is a question of whether 
an internal structural examination (ISE) is required. The commenter is 
mistakenly referring to the wrong section. Therefore no change is 
needed.

Comments on Secs. 71.50-15, 115.620, 176.620 and Secs. 71.50-29, 
115.655, and 176. 655

    The Coast Guard received five comments on these sections. One 
comment stated that the same length of drydock extension should be 
given to vessels whether divers or an ROV is used. Another comment 
stated that since there is an annual examination component for 
participation in AHE, a 5-year credit should be granted whether ROV or 
divers are used. Both methods require internal exams where most 
problems will be noted anyway. The customer should be able to determine 
the value of the ROV versus divers.
    During the development of the AHE pilot program, as given by G-MOC 
Policy Letter 3-98, the Coast Guard decided that drydock extensions 
should be limited to 30 months when divers are used for the examination 
of hull plating. At that time, the Coast Guard had not yet evaluated 
the new underwater ROV hull examination technology, so the extension 
period when using an ROV had not been considered. Since setting the 30-
month period for extensions some limitations of the AHE process using 
divers have been identified. The most significant limitation identified 
was the inability to cover the entire hull. When divers are used 
exclusively for the examination, it was estimated that only 30 percent 
of the underwater hull plating would be covered, on average. However, 
when an accepted underwater ROV was used, this figure generally climbs 
to over 80 percent. By augmenting the ROV process with divers, overall 
coverage will likely exceed 90 percent. Given the differences in 
coverage, we are keeping the differentiated periods. However, we

[[Page 21066]]

have defined the equivalencies of both types of underwater exams to a 
traditional drydock inspection. Based on this, we will not be issuing 
an extension, but rather granting a credit hull exam with the 
examination interval dependant upon the method used. In addition, we 
request comments on the following specific questions, and are accepting 
further comments during the interim phase of this rulemaking: (1) 
Should both methods receive the same level of credit? (2) If so, should 
additional requirements be invoked (such as required gaugings, 
examinations, etc.)? (3) Should the intervals remain the same with the 
option of requesting a waiver for the mid-period survey requirements on 
vessels meeting certain criteria?
    One comment stated that the Coast Guard should add to these 
sections periodic independent review and evaluation of the program and 
vessels to ensure uniform application and results. We disagree with 
this comment. The program guidelines are well defined in the 
regulations and will be administered as consistently as other 
inspection programs. The procedures found in 46 CFR 1.03 may be used if 
the results of an inspection appear to be inconsistent with the 
regulations.
    One comment questioned why the ROV approach, without a third party 
examiner, would receive a 60-month credit, while the certified third 
party examiner approach is only granted a 30-month credit when divers 
are still needed for 25 percent or more of vessel inspections.
    The differences in the credit intervals granted are based on the 
methods employed to conduct the examination as well as the types of 
data obtained during the examination. The ROV team graphically tracks 
the progress of the examination and the data being obtained--both 
visual and NDT. The ROV has the ability to use the data collected to 
provide the inspector with a composite picture of the underway body of 
the vessel, as well as provides a quantified report of the examined 
areas. Examinations conducted with a third party examiner do provide a 
similar capability. The third party examiner is essential to ensure 
that the diver captures an adequate video record of the examination. 
During the examination, the third party examiner directs the diver to 
areas where he has detected an anomaly, whereas the ROV, by virtue of 
its data gathering capabilities, would record any such anomaly through 
its normal collection processes. It is true that a percentage of the 
hull may not be examined by an ROV (i.e.: rudders, propeller shafts, 
etc.). In the areas where a diver must be employed, a third party 
examiner may be required to ensure consistent results, particularly if 
a data collected by the diver can not be interfaced with the data 
collected by using the ROV.
    One comment stated that the AHE process that uses divers 
exclusively requires re-surveys at 30-month intervals, which is a 
burden on owners or operators. The comment stated that this should be 
amended to 36 months to evenly space-time.
    In response to concerns that an annual hull condition survey must 
be conducted at the 2-year anniversary, with only 6-months before 
expiration of a 30-month drydock credit, we have revised the drydock 
credit period for the AHE program when divers are used exclusively. The 
revision allows the AHE process to be conducted twice in a 5-year 
period with not more than 3 years between each AHE. The requirement for 
annual condition assessments remains the same; however, the revised 
drydock credit interval will allow all hull surveys and examinations 
under the AHE program to be conducted on an annual schedule. To clarify 
this, we revised Secs. 71.50-15 and 71.50-29(c).

Comments on AHE Eligibility Criteria: Secs. 71.50-17(a)(4), 
115.625(a)(4), and 176.625(a)(4)

    We received many comments on these sections. A number of comments 
stated that the focus of eligibility criteria should not be location or 
exposure of the waterway, but exposure of the vessel on its route. 
Vessels that operate in shallow waters, 0.5 miles from shore, like some 
vessels on the Great Lakes, should be allowed to participate in AHE. 
These comments recommend changing the wording of Secs. 71.50-17(a)(4); 
115.625(a)(4) and 176.625(a)(4) to ``operates in a reduced risk 
environment such as a river or along the shores of a lake''. Another 
comment stated that this section should include passenger vessels on 
restricted routes in semi-protected waters, like gaming vessels in the 
southern end of Lake Michigan. The Coast Guard agrees that a vessel 
operating on the Great Lakes should be allowed to participate if its 
operating route is limited to protected locations on the lake. The 
regulations have been changed to ``operates in a reduced-risk 
environment such as a river or the protected waters of a lake'' to 
clarify this intent.
    Two comments requested that the 
0.5-mile distance be extended to 1.0 mile from shore. One called the 
half of a mile measurement arbitrary and merely a carry over from the 
MOC policy letter 3-98. The Coast Guard disagrees. The reason for 
limiting program eligibility to vessels that operate exclusively in 
shallow water or within 0.5 nautical miles from shore was to provide an 
additional measure of safety in case of vessel flooding. There are many 
large passenger vessels operating in shallow inland rivers where, in 
the unlikely event that the vessel were to sink, it would come to rest 
on the river bottom and all passenger spaces would remain above water. 
Of course, not all vessels are operated in such shallow waters. For 
vessels operating in deeper waters, the 0.5 miles constraint provides a 
reasonable assuredness that the vessel can be safely grounded in the 
event of flooding.
    One comment stated that the Coast Guard should eliminate the 
operating limitation of 0.5 miles from shore and shallow water from 
Secs. 115.62 and 176.62. This requirement would eliminate several 
viable vessel operations in Lake Tahoe, Lake Meade, and Table Rock 
Lake. Vessels there already have a history of inspections while afloat. 
Another comment stated that it is impossible for a Lake Tahoe day/
dinner cruise vessel to operate 0.5 miles from shore. The lake reaches 
1200-foot depths. Conditions of the lake, ability of in-water repairs, 
etc. should allow boats on Lake Tahoe to continue to use underwater 
inspections (indefinitely) until it is necessary to remove the vessel 
from the water. A third comment stated that the 0.5-mile limitation 
threatens small businesses with extinction.
    For small passenger vessels inspected under 46 CFR Chapter I, 
Subchapters T or K, the OCMI already has the authority to give special 
consideration to authorize departures from specific regulatory 
requirements where unusual circumstances or arrangements warrant such 
departures. Under this provision, the OCMI will have the authority to 
continue any special hull examination arrangements made at the local 
level, which preceded the AHE program, thus allowing certain vessels on 
the inland lakes to undergo underwater surveys in lieu of meeting 
drydocking or AHE program requirements. Thus, no change to the rule is 
necessary.
    One comment stated that the definition and discussion of what a 
hull protection system is does not appear in the regulations. The 
regulations should provide the OCMI with some guidance. Some vessels do 
not use cathodic protection in fresh water. Coating is not as critical 
in fresh water. An explanation of ``adequate hull protection system'' 
was given in the proposed rule, and is still incorporated

[[Page 21067]]

in this rule. ``Adequate hull protection system'' means a method of 
protecting the vessel's hull from corrosion. Frequently, this is 
accomplished by the application of a combination of hull coatings and 
cathodic protection (usually zincs). For entry into the AHE program, 
the OCMI must be satisfied with the vessel's hull protection system.

Comments on the Preliminary Examination: Secs. 71.50-21, 115.635, and 
176.635

    We received five comments to these sections. Three comments asked 
why a preliminary examination is only necessary when divers are used 
and not with an ROV. A preliminary examination is required when divers 
are used for the examination of the vessel's hull plating because it is 
critical that any areas of concern with regard to the vessel's hull be 
identified in advance of the pre-survey meeting. This allows the OCMI 
an opportunity to assess the areas of concern and to determine the 
necessary scope and focus of the hull plating examination during the 
AHE. A preliminary examination is not necessary when an underwater ROV 
is used for the examination of hull plating because the ROV survey 
process is quite comprehensive. As previously mentioned, the ROV 
process will cover approximately 80 percent of the underwater hull. 
With the augmentation of divers, overall hull coverage is increased to 
approximately 90 percent. Implicit in the ROV process is hull cleaning 
by a diver, which will support suitability.
    Two comments stated that the preliminary exam should only be 
necessary when a vessel is entering or reentering the program with 
divers. The exam should not be necessary before each survey while the 
vessel is in the program. We agree with this recommendation. Since 
annual examinations are required for vessels examined by divers, the 
OCMI should already be familiar with the condition of the vessel and be 
aware of any suspect areas of the hull that require specific attention. 
This should eliminate the need for additional preliminary examinations. 
Therefore, as long as the vessel remains enrolled in the AHE program, 
the preliminary examination will be required only for program entry. We 
have clarified this in the regulatory text.

Comments on the Pre-survey Meeting: Secs. 71.50-23, 115.640, and 
176.640

    A number of comments stated that the requirement in paragraph (a) 
that the ROV operator must attend the pre-survey meeting is overly 
restrictive. One comment pointed out that there might be more than one 
operator. The regulations should indicate that the meeting must be 
attended by a ``representative of the ROV operating company who is 
qualified to discuss the ROV capabilities and limitations.'' The Coast 
Guard agrees. The regulations have been modified to reflect these 
recommended changes.
    A number of comments stated that in paragraph (b), the requirement 
for the vessel owner or operator to request the meeting in writing is 
overly restrictive. One comment pointed out that often someone other 
than a company official knows most about the vessel. The comment 
recommends using: ``owner, operator or designated agent.'' The Coast 
Guard agrees. The regulations have been modified to reflect these 
recommended changes.
    One comment stated that this meeting is not necessary before each 
annual hull condition assessment and suggested adding: ``This meeting 
is required before the actual 36-month (divers) and 60 month (ROV) AHE 
survey.'' The Coast Guard intended that the pre-survey meeting only be 
required prior to each AHE survey. We clarified the regulations to 
reflect this.
    One comment recommended that we make sure that the second sentence 
states that the third party examiner is present when divers are used 
exclusively. The Coast Guard agrees. The regulations have been modified 
to reflect these recommended changes.
    One comment recommended a requirement to have the pre-survey 
meeting prior to the start of the survey, stating that meetings on the 
day of the exam result in unnecessary stress. While we agree with this 
comment we want to allow flexibility for the parties involved. We 
encourage but do not require that the two events be held on separate 
days.

Comments on the OCMI's Authority: Secs. 71.50-25(c), 115.645(c), and 
176.645(c)

    A number of comments stated that they do not question the OCMI's 
authority, but believe that the explanation provided for requiring a 
vessel to be taken out of service is overly restrictive. As written, it 
could imply that permanent repairs and a full evaluation could not be 
conducted while in the water. They recommend allowing the OCMI to take 
out of service or drydock a vessel that has ``problems that cannot be 
repaired to the satisfaction of the OCMI while waterborne.''
    We have revised this section to clarify the intent as follows: ``If 
the AHE reveals deterioration or damage to the vessel's hull plating or 
structural members, the OCMI may require the vessel be drydocked or 
otherwise taken out of service to further assess the extent of damage 
or to effect permanent repairs if the assessment or repairs cannot be 
completed to the satisfaction of the OCMI while the vessel is 
waterborne.''

Comments on Hull Thickness Readings: Secs. 71.50-27(a), 115.650(a) and 
176.650(a)

    A number of comments stated that these sections are unclear 
regarding the number and spacing of transverse belts. One comment 
recommended requiring hull thickness readings at a minimum of bow, 
stem, and amidships and a longitudinal belt along the wind and water 
strake.
    We have revised the affected paragraphs, to clarify our intent, to 
read as follows: ``Take hull plating thickness gaugings along 
transverse belts at the bow, stern, and midships, as a minimum. Plating 
thickness gaugings shall also be taken along a longitudinal belt at the 
wind and water strake. Individual gaugings along the transverse and 
longitudinal belts shall be spaced no more than 3 feet apart.''
    One comment indicated that the statement we made in the proposed 
rule: ``the entire underwater survey is recorded on video when divers 
are used'' is incorrect. The diving companies use tactile examination 
methods and ultra-sonic testing of the shell plate and videotape of 
critical welds and other areas to determine the condition of the hull. 
Paragraph (a)(6) in each cite should not require audio and videotape of 
the examination.
    As mentioned in the preamble to the NPRM, the AHE program was 
originally promulgated as a pilot program under MOC Policy Letter 3-98, 
entitled ``Drydock Extensions for Certain Passenger Vessels.'' As 
announced in the March 5, 1998, Federal Register publication (63 FR 
10777) the intent of this rulemaking is to incorporate the policy 
letter into Coast Guard regulations. The policy letter clearly states 
that ``a complete underwater survey . . . shall be recorded on 
videotape.'' It is necessary to record the entire underwater survey by 
audio and video recording in order to document the areas covered by the 
underwater survey and to provide a complete account for the AHE. Even 
if the diver is doing a tactile examination of the hull, this process 
needs to be recorded in order to capture the diver's remarks and to 
verify the diver's location with respect to the hull.

[[Page 21068]]

Comments on Program Options: Secs. 71.50-27, 115.650, and 176.650

    Two comments stated that the third party examiner should be present 
during the examination no matter what method is used for the hull exam, 
because ROV operators do not have the knowledge of vessel construction. 
The comments also asked what the Coast Guard qualifications for the ROV 
operator are. Another comment stated that the third party examiner is 
an integral part of the examination process. Because divers are still 
needed to examine sea chests, bearings, rudders, wheels, thruster and 
other appendages, the third party examiner provides the objectivity 
needed to ensure the vessel's seaworthiness.
    When a Coast Guard accepted underwater ROV is used as the 
predominant means for the examination of hull plating, the ROV 
operating team will take the place of the third party examiner. In 
order to be accepted by the Coast Guard, the underwater ROV process 
will include a quality control/assurance program, including an 
appropriate training program for the ROV operating team. As a minimum, 
the ROV operating team will consist of an ROV operator, a non-
destructive testing (NDT) inspector, and an ROV tender/mechanic. The 
requirement has been added to the rulemaking.
    The ROV operator will have at least 80 hours of documented field 
experience in navigating the particular ROV and will possess a thorough 
working knowledge of the ROV and its support equipment. Additionally, 
the operator will possess a strong understanding of structural plans 
and a familiarity with underwater ship structure and respective 
nomenclature.
    The NDT inspector will have, as a minimum, Level II NDT 
certification in accordance with the guidelines of the American Society 
for Nondestructive Testing or that of an equivalent certification 
program.
    With these acceptance criteria in place, the Coast Guard considers 
it unnecessary to have a third party examiner on site. For those 
portions of the vessel hull that the ROV is unable to evaluate and 
divers must be used, a third party examiner may be required to evaluate 
the results of the exam, especially if it can not be integrated into 
the results obtained by the ROV.

Comments on the Annual Hull Condition Assessment: Secs. 71.50-19, 
115.630, and 176.630

    We received three comments on these sections. One comment stated 
that paragraph (h) seems vague and will result in differing 
interpretations and different OCMI expectations. The comment requested 
that the scope of the annual hull condition examination be more closely 
defined.
    The second comment stated that there is no guidance on whether a 
third party examiner is needed for this annual inspection if the AHE 
survey was done with divers only.
    A third comment stated that the annual hull condition assessment 
requirement is redundant. The annual hull condition assessment should 
be conducted at the midpoint between AHE's or 30 months from the 
original. If conducting an AHE using divers only, a hull condition 
assessment should be conducted at no less than one year, and no greater 
than 18 months from the original AHE. The scope of annual hull 
condition assessments should be defined as a visual exam of the 
vessel's underwater hull with emphasis on sea chests, thruster tunnels, 
running gear and the cathodic protection system; and ultrasonic tests 
of areas of known damage, corrosion, or otherwise suspect areas.
    We agree that some of the regulations covering the annual hull 
condition assessment require further clarification. In response to the 
concern that the annual condition assessment is redundant or 
unnecessary, we disagree. An annual condition assessment of the 
vessel's hull helps to maintain a level of safety equivalent to that 
achieved by drydock examination. This helps by mitigating the concern 
that minor or latent hull damage may be overlooked during the AHE and 
provides a mechanism for examining those areas of the hull that require 
periodic reevaluation. However, because some vessels may be found to be 
in excellent condition upon completion of the AHE, the OCMI should have 
the authority to relax the scope of the annual hull condition 
assessment to accommodate this. In that regard, the regulations have 
been revised to give the OCMI the discretion to determine the necessary 
scope of the annual hull condition assessment.
    On vessels where the AHE reveals few or no areas of concern 
relating to the vessel's hull condition, and where the outer hull is 
largely accessible from interior spaces, the OCMI may decide that an 
internal examination, coupled with random hull gaugings, is all that is 
necessary to complete the annual hull condition assessment. In 
contrast, for those vessels on which the AHE reveals significant damage 
or corrosion, after temporary repairs have been made, or after other 
critical areas of concern have been identified or are otherwise 
suspected, the OCMI may require both an internal exam and an underwater 
hull examination.
    At the OCMI's discretion, the underwater examination may focus 
solely on known or suspect areas or may be more comprehensive in 
nature. If the OCMI determines that a comprehensive hull condition 
assessment is necessary and an underwater ROV was used for the AHE, it 
should not be necessary to employ an ROV for the annual condition 
assessment. Using divers should suffice for this purpose. Therefore, 
the OCMI has the discretion to determine whether it is necessary to 
have a third party examiner present during the annual hull condition 
assessment. If the condition assessment will involve little more than 
an internal examination and random hull gaugings, it should not be 
necessary to involve a third party examiner. Instead, if the assessment 
can be completed within a one-day period, a marine inspector should 
complete the assessment. As a result, the regulations have been revised 
to give the OCMI the authority to determine whether a third party 
examiner must be present during the annual hull condition assessment.
    The scope of the annual hull condition assessment should be agreed 
upon well in advance, preferably upon completion of the AHE or the 
preceding hull condition assessment. The OCMI should advise the vessel 
representative, in writing, of the required scope of the annual hull 
condition assessment. Since this determination is best made upon 
completion of the AHE, it should not be necessary for the vessel owner 
or operator to provide this information when applying to the AHE 
program. In that regard, the regulations have been revised to remove 
from the application requirements the plan for conducting the annual 
hull condition assessment.
    Prior to the scheduled annual hull condition assessment, the owner 
may submit to the OCMI a request for a waiver of the requirement. The 
OCMI may reduce the scope or extend the interval of the annual hull 
condition assessment if the operational, casualty, and deficiency 
history of the vessel, along with a recommendation of the vessel's 
master, indicates that it is warranted.
    One comment stated that in paragraph (d), the statement to be 
signed by marine officers should provide the time period for which the 
officer would have knowledge of damage or suspected damage. The time 
period for which the officer would have knowledge of hull damage is 
irrelevant. By having a vested interest in the safety of the vessel, 
the master or chief engineer should be

[[Page 21069]]

adequately familiar with the vessel's hull condition and be aware of 
any known or suspect damage, regardless of the amount of time served on 
board the vessel.

Comments on the Third Party Examiner

    We received seven comments on the third party examiner. One comment 
stated that companies with approved quality assurance programs do not 
need third party examiners. Companies with these programs should be 
able to train and certify their own people to manage the inspection.
    Another comment suggested that the diving companies hire the third 
party examiner. This provides the greatest separation from the owner 
and avoids conflict of interest.
    The regulations in this rule give the OCMI a wide degree of 
latitude to determine the acceptability of the third party examiner. 
Nothing in these regulations prevents the dive company from providing 
the third party examiner. We do not see a need for reviewing a 
company's quality assurance program since a significant part of the 
third party examiner's role will be quality assurance.
    One comment agreed that the OCMI should determine whether or not 
the third party examiner is qualified, but noted that the Coast Guard 
should provide uniform guidance to OCMI's. We agree with this comment. 
The regulations have been changed to include a description of skills 
that a third party examiner should possess as guidelines to assist the 
OCMI in determining their acceptability.
    One comment stated that the rule does not specify who will hire the 
third party examiners. Because the vessel owner may influence the 
objectivity of the third party examiner, the Coast Guard should put 
into policy that the diving company hires the third party examiner. The 
OCMI must consider whether any involved party could influence the 
objectivity of the third party examiner or whether a conflict of 
interest could exist. Where such conditions exist, the regulations give 
the OCMI the authority to deny use of the third party examiner.
    One comment suggested that we remove the requirement for a third 
party examiner in Secs. 115.635, 115.640, 115.650, 176.635, 176.640, 
and 176.650. Instead of removing field inspectors, the comment stated 
that the Coast Guard should retain third party examiners as an option 
for when the vessel owner and the Coast Guard deem it necessary. We 
agree on the importance of retaining Coast Guard inspectors, to build 
experience and to increase exposure to the marine industry. However, 
there is little to gain from having a marine inspector on site for 
several days on end while an underwater survey is conducted. The Coast 
Guard's needs are better served by placing the marine inspector in an 
oversight role where only the more critical portions of the AHE process 
need be observed. This enables the Coast Guard field offices to direct 
their limited inspection resources to higher risk activities.
    One comment recommended the presence of a third party examiner 
during the entire inspection (including the inspection of hull plating) 
to increase the integrity of the ROV option. Another comment stated 
that the rule should address the qualifications of the third party 
examiner. A third comment stated that ROV operators are not trained to 
evaluate data in terms of proposing repairs, modifications, or 
recommending areas for further inspection. A third party examiner can 
do these things. Without a third party examiner, the Coast Guard 
inspector will become the de facto quality control person, which is 
undesirable. The third party examiner is the check and balance between 
the vessel owner and the diving contractor.
    When a Coast Guard accepted underwater ROV is used as the 
predominant means for the examination of hull plating, the ROV 
operating team will take the place of the third party examiner. In 
order to be accepted by the Coast Guard, the underwater ROV process 
will include a quality control/assurance program, including an 
appropriate training program for the ROV operating team. As a minimum, 
the ROV operating team will consist of an ROV operator, a non-
destructive testing (NDT) inspector, and an ROV tender/mechanic. The 
ROV operator will have at least 80 hours of documented field experience 
in navigating the particular ROV and will possess a thorough working 
knowledge of the ROV and its support equipment. Additionally, the 
operator will possess a strong understanding of structural plans and a 
familiarity with underwater ship structure and respective nomenclature. 
The NDT inspector will have, as a minimum, Level II NDT certification 
in accordance with the guidelines of the American Society for 
Nondestructive Testing or that of an equivalent certification program. 
With these acceptance criteria in place, we consider it unnecessary to 
have a third party examiner on site. For those portions of the vessel 
hull that the ROV is unable to evaluate and divers must be used, a 
third party examiner may be necessary if the diver obtained data can 
not be integrated into the data obtained by the ROV. The OCMI will 
determine whether a third party examiner is needed normally during the 
pre-survey meeting.
    Additionally, it is not necessary that the ROV operating team be 
qualified to propose repairs or modifications or to recommend areas for 
further inspection. The job of the ROV operating team is to produce 
quantifiable data relating to the condition of the vessel hull. It will 
be the job of the Coast Guard marine inspector and OCMI to determine 
the suitability of repair or modification proposals. If assistance is 
needed in developing repair proposals, the vessel owner/operator always 
has the option to hire an independent marine consultant for this task. 
As far as recommending areas for further inspection, the marine 
inspector will retain this responsibility.

Comments on G-MOC/USCG Headquarters: Secs. 115.655, 176.630, and 
176.655

    One comment stated that we should remove the role of the Coast 
Guard Headquarters' Office of Compliance (G-MOC) regarding the 
acceptance of specific entities and of inspection results. The comment 
argued that these are not Coast Guard Headquarters level activities. We 
agree with this comment, especially in view of the changes made to the 
regulations to put the AHE on parity with a traditional drydock 
inspection. To this end we have modified the regulations to allow the 
OCMI to grant a credit hull exam when warranted vice an extension. 
Normal extension requests and appeals will still be reviewed by G-MOC.

Comments on the AHE Procedure: Secs. 71.50-25(a)(3), 115.645(a)(3), and 
176.645(a)(3)

    We received five comments on this section. One comment stated that 
the only inspection activity that the Coast Guard is required to 
observe is the removal of sea valves. The comment recommended that the 
wording ``in the presence of a marine inspector'' be removed from these 
sections to avoid delays.
    Another comment stated that the third party inspector should be an 
alternative to the marine inspector observing the sea valve inspection 
in order to prevent delays.
    A third comment suggested the presence of a third party inspector 
or adequate video coverage would be sufficient. We disagree with this 
comment. The removal of sea valves is one of the few evolutions of AHE 
procedures that involve a degree of risk to the vessel and to persons 
on board. It is in our best interest to require the

[[Page 21070]]

presence of a marine inspector during this evolution.
    One comment suggested that the inspection of sea valves at every 
AHE is onerous. It recommended that the sea valves be inspected every 
other AHE if divers are used and every AHE if the ROV is used. 
Inspecting the sea valves is an integral part of the drydock or 
underwater hull examination. The Coast Guard requires that valves be 
inspected at 5-year intervals in accordance with 46 CFR 61.20-5(b).
    One comment stated that in paragraph (a)(5) of these sections, non-
fuel internal tanks should only be made available for internal exam if 
an external exam reveals a problem, or if the tanks are required to be 
examined in other regulations. These tanks should only be required to 
be internally examined once every 5 years. We agree with this comment. 
We have revised the regulation accordingly and added that sewage tanks 
need not be examined internally if examined externally and gauging is 
completed during the AHE.

Comments on NVIC 1-89

    One comment stated that paragraph L (2) of NVIC 1-89 contains good 
information on the value of the contribution of an experienced diver. 
This should be included into the preamble of the rule. We do refer to 
NVIC 1-89 in the preamble, and have placed a copy of NVIC 1-89 in the 
docket for this rulemaking.

Comments on the Underwater Survey Program

    Several comments requested that the Coast Guard extend the 
authority to conduct underwater survey in lieu of drydocking (UWILD) 
examinations to Offshore Supply Vessels (OSV) inspected under Title 46 
Code of Federal Regulation (CFR), chapter I, subchapter L.
    OSV's inspected under 46 CFR chapter I, subchapter I currently are 
authorized to participate in the UWILD program. The Coast Guard 
believes the UWILD program should be available to OSV's inspected under 
either subchapter, therefore the Coast Guard is authorizing those 
vessels inspected under subchapter L to participate in the UWILD 
program. Entry into this program will be authorized when this Interim 
Final Rule comes into effect.
    One comment stated that the rule does not give incentive for a 
vessel to use the ROV technology for Underwater Surveys but should do 
so. The comment suggested, as an incentive, that the Coast Guard waive 
the initial drydock if the ROV is used. However, the comment also 
stated that the Coast Guard should not waive the initial drydock for 
vessels less than 15 years of age using only divers. We believe the 
regulation provides adequate incentive. Vessels enrolled in the AHE 
program that use ROV technology do not have to conduct the preliminary 
hull exam, as well as receiving a greater interval between inspections. 
Vessels that do not use ROV technology must conduct the preliminary 
hull examination.
    One comment suggested that we revise the definition of drydock to 
remove references to ``drydock or slipway'' and include ``examination 
of all accessible parts of the vessel's underwater body and all 
through-hull fittings, and appurtenances.'' This comment is beyond the 
scope of this rulemaking. The scope of this rulemaking was limited to 
allowing the following passenger vessels to enter the underwater survey 
program: those under 46 CFR, chapter I, Subchapters T, K, and H, and 
nautical school ships and sailing school vessels under 46 CFR chapter 
I, Subchapter R. We are unable to make modifications to these 
regulations without making a wholesale change to the drydock 
examination regulations for all other commercial vessels.
    One comment suggested that during alternate years, using the ROV 
should be considered equivalent to the traditional drydock for vessels 
that have completed the pre-survey drydock and underwater survey. This 
comment is beyond the scope of this rulemaking.
    One comment suggested that vessels over 15 years of age should use 
ROV technology instead of drydock to gauge and determine if there is 
any appreciable deterioration. This comment is beyond the scope of this 
rulemaking.
    One comment suggested that we develop a need-based system that uses 
ROV technology to determine whether a drydock is necessary. This 
comment is beyond the scope of this rulemaking. We are considering 
making this a part of future rule making, using risked based decision 
criteria to determine the need to perform traditional drydockings.
    One comment suggested that the Coast Guard should create incentives 
for using ROV's. The comment recommended allowing owners or operators 
to avoid entry drydocking if ROV inspections are used. The comment also 
recommended granting consecutive drydock extensions for vessels using 
the ROV technology. This comment is beyond the scope of this 
rulemaking.
    One comment stated that casualty and deficiency data to support 
this rulemaking was not provided in the NPRM. The comment stated that 
the Coast Guard should address this in all rulemakings. Casualty and 
deficiency data is not necessary in this instance. The changes to the 
regulations we are making in this rulemaking are designed to provide 
relief and flexibility rather than increase the burden on vessel owners 
or the Coast Guard.
    One comment stated that under the Regulatory Flexibility Act, this 
rule would have a significant impact on many diving companies and other 
small businesses. There is no evidence that ROV inspections cost less 
than the use of divers. These regulations present the vessel owner/
operator with hull examination alternatives. Prior to this rulemaking, 
drydocking was the only alternative available to passenger vessels. 
This rulemaking provides the vessel owner/operator with two distinct 
programs, offering additional hull examination alternatives. That is, 
the AHE program and the underwater survey program. The Coast Guard has 
designed these programs so that an equivalent level of safety is 
provided, regardless of the method chosen. These regulations give the 
vessel owners or operators the opportunity to weigh the economic impact 
of each alternative and to choose accordingly.

Discussion of Interim Rule

Alternate Hull Examination (AHE) Program

(a) General
    This rule contains organizational and editorial changes to the 
regulations for the AHE Program.
Sections 71.50-5, 114.400, and 175.400
    We are redesignating Secs. 71.50-5, 115.600, and 176.612 as 
Secs. 71.50-35, 115.605, and 176.665, respectively. Also, we are 
redesignating Secs. 115.612, 115.630, 115.675, 176.612, 176.630, and 
176.670 as Secs. 115.665, 115.670, 115.675, 176.665, 176.670, and 
176.675 respectively. The rule will add several new sections for the 
AHE Program and the Underwater Survey Program. These organizational 
changes will keep similar requirements together.
Sections 71.50-35, 115.665, and 176.665
    We are adding the words ``underwater survey'' in the newly 
redesignated Secs. 71.50-35, 115.665, and 176.665. This change will 
ensure that each vessel will have a plan on board that shows the 
vessel's scantlings whenever the vessel undergoes an examination, 
survey, or repairs. Vessel scantlings are dimensions of structural 
parts such as frames, girders, and plating used in shipbuilding. We are 
adding the option

[[Page 21071]]

of an underwater survey as part of the AHE Program for subchapters H, 
K, and T.
(b) Definitions
Sections 71.50-1, 114.400, and 175.400
    We are amending the definitions for ``drydock examination'' and 
``internal structural examination,'' and adding definitions for 
``underwater survey,'' ``shallow water,'' ``third party examiner,'' 
``ROV operating team,'' and ``alternate hull examination'' in 
Sec. 71.50-1. We are adding the definitions for ``drydock 
examination,'' ``internal structural examination,'' ``underwater 
survey,'' ``shallow water,'' ``third party examiner,'' ``ROV operating 
team,'' and ``alternate hull examination'' in Secs. 114.400, and 
175.400. These definitions will apply to subchapters H, K, and T. We 
are adding the term ``appurtenances'' that was missing from the 
definition of ``drydock examination.'' The following are examples of 
appurtenances: sea chests, propellers, rudders, and tailshafts. We are 
removing the paragraph designations from all definitions within all 
three sections. We are adding the definition of ``underwater survey'' 
to introduce and clarify this examination process in our regulations. 
Lastly, we are adding a definition for ``effective hull protection 
system'' in all three sections in this heading.
(c) AHE Program Description
Sections 71.50-15, 115.620, and 176.620
    We are adding Secs. 71.50-15, 115.620, and 176.620 to explain the 
AHE Program for certain passenger vessels and list the steps of the 
program: the application process, the preliminary examination (not 
required for ROV exams), the pre-survey meeting, and the hull 
examination. The hull examination includes an underwater survey that 
may be conducted with divers or an underwater remotely operated vehicle 
(ROV). If divers are exclusively used for the underwater survey portion 
of the AHE examination process, you may receive a credit hull exam of 
up to 36 months (3 years). If a Coast Guard-accepted underwater ROV is 
used, you may receive a credit hull exam of up to 60 months (5 years).
(d) Eligibility Requirements
Sections 71.50-17, 115.625, and 176.625
    We are adding Secs. 71.50-17, 115.625, and 176.625, which contain 
eligibility requirements for the AHE Program and include construction, 
operation, and vessel condition requirements. To qualify for enrollment 
in the AHE Program, vessels must--
     Be constructed of steel or aluminum;
     Have an adequate hull protection system;
     Have operated exclusively in fresh water since the last 
drydock examination;
     Operate in rivers or protected lakes; and
     Operate within 0.5 nautical miles from shore, or operate 
in water shallow enough so the vessel itself can provide adequate safe 
refuge for all persons on board in the event of a hull breech. To 
determine whether your vessel can provide adequate safe refuge you must 
consider its stability and physical space.
    In addition, the OCMI must accept the vessel's overall condition, 
history of hull casualties and deficiencies, and the AHE Program 
application.
    Vessels that meet these criteria face much lower risks compared to 
vessels that operate in unrestricted salt-water environments.
    To clarify paragraph (a)(2) in each of these sections, we have 
added a definition for ``effective hull protection system'' to the 
definitions section of each part.
(e) Application requirements
Sections 71.50-19, 115.630, and 176.630
    We are adding Secs. 71.50-19, 115.630, and 176.630, which contain 
the AHE Program application requirements for vessels that meet the 
eligibility criteria for this program. These sections establish when 
and to whom the vessel owner or operator must submit an application, 
and what information the application must contain. The application must 
be in the form of a letter and must include--
     The time and place for conducting the hull examination;
     The names of the diving contractors or the underwater ROV 
company;
     Plans and drawings of the vessel;
     Information on the condition of the vessel;
     Plans for conducting the hull examination;
     Plans for conducting preventative hull maintenance; and
     The name and qualifications of third party examiners (if 
applicable).
    The annual hull condition assessment is required to ensure periodic 
evaluation of the vessel's hull condition. It should include an 
abbreviated survey (spot check) of the vessel's underwater hull, 
including its protection system and through-hull fittings and 
appurtenances, any repairs that have been made, and any suspect areas 
of the hull. This will also provide an opportunity to complete any 
necessary preventative maintenance such as replacement of zincs and 
repair of hull coatings.
    The AHE Program is recognized to be time and resource intensive for 
the Coast Guard when compared to the traditional drydock examination 
process, particularly when divers are used exclusively for the 
underwater hull survey. We introduce the ``third party examiner'' in 
this rulemaking (as allowed in 46 U.S.C. 3103) to enable the Coast 
Guard to use its resources more effectively. The third party examiner 
is an individual who has been hired by the vessel owner or operator, 
and accepted by the OCMI, to oversee the entire examination process 
under the AHE Program. This person must be familiar with the inspection 
procedures and his or her responsibilities under this program.
(f) Preliminary Examination Requirements
Sections 71.50-21, 115.635, and 176.635
    We are adding Secs. 71.50-21, 115.635, and 176.635, which contain 
requirements regarding the preliminary examination (if required) and 
the presence of the third party examiner. During this exam, divers must 
assess the overall condition of the vessel's hull and identify specific 
concerns to be addressed during the underwater hull examination. The 
preliminary examination is not required when an underwater ROV is used.
(g) Pre-survey Meeting
Sections 71.50-23, 115.640, and 176.640
    We are adding Secs. 71.50-23, 115.640, and 176.640, which contain 
requirements for the pre-survey meeting in which the details of the 
examination process of the AHE Program are discussed with the OCMI. A 
vessel owner or operator must request this meeting in writing at least 
30 days in advance of the proposed examination date. The pre-survey 
meeting must take place 2 weeks before the examination.
(h) AHE procedure
Sections 71.50-25, 115.645, and 176.645
    We are adding Secs. 71.50-25, 115.645, and 176.645, which contain 
requirements for conducting the underwater survey. To complete the 
underwater survey you must--
     Perform a general examination of the underwater hull 
plating and a detailed examination of all hull welds, propellers, 
tailshafts, rudders, and other hull appurtenances;
     Measure rudder and tailshaft bearing clearances and 
examine all sea chests, if required by 46 CFR part 61;

[[Page 21072]]

     Remove and inspect all sea valves in the presence of a 
marine inspector;
     Remove all passengers from the vessel when the sea valves 
are being examined, if required by the Officer in Charge, Marine 
Inspection;
     Allow access to all internal areas of the hull for 
examination; and
     Meet the procedural requirements for divers or underwater 
ROV's in Secs. 71.50-27, 115.650, and 176.650.
    In paragraph (a)(4) of Secs. 71.50-25, 115.645, and 176.645, the 
OCMI may require removal of all passengers from the vessel during the 
examination of sea valves. Removal of passengers is likely to occur if 
there is a risk to the watertight integrity of the hull or an inability 
to keep the essential machinery in operation. The marine inspector may 
examine any areas of the vessel the OCMI deems necessary to ensure the 
safety of passengers and crew. In the event that damage or potential 
problems are found, the OCMI may require the vessel to be taken out of 
service or dry-docked. For example, if the vessel had a grounding, an 
allision, or a collision, or if structural damage was suspected for any 
reason, the OCMI may require the vessel to be dry-docked to examine 
and, if necessary, repair the damage.
(i) AHE Program Options: Divers or Underwater ROV
Sections 71.50-27, 115.650, and 176.650
    We are adding Secs. 71.50-27, 115.650, and 176.650, which include 
the requirements of the two options, divers or an underwater ROV, to 
conduct the underwater survey.
    This rule requires the use of a third party examiner when divers 
are used exclusively for the underwater examination of hull plating. 
This rule also requires appropriate underwater audio and video 
equipment to record the examination when divers are used. We recommend 
a maximum water velocity of 1 knot for safe dive operations unless 
divers are line-tended as provided for in 46 CFR 197.430.
    If divers are used exclusively for the underwater survey portion of 
the AHE Program, a third party examiner must observe the entire 
examination process. By requiring the use of a third party examiner, 
Coast Guard marine inspectors must be present only during critical 
portions of the examination process such as--
     Examination of critical welds, propeller, rudder, other 
hull appurtenances, sea chests, and sea valves;
     Plugging of sea chests and the removal of sea valves;
     Gauging of rudder and tailshaft bearings, if required by 
46 CFR part 61; and
     Any other portions deemed necessary by the OCMI.
    Since the entire underwater survey is recorded on video, the OCMI 
may review, as necessary, any details that were not observed at the 
time of survey in order to support his or her decision to grant a 
credit hull exam.
    If an underwater ROV is used for the examination of hull plating, 
the presence of a third party examiner is not required because the ROV 
operator will take the place of a third party examiner during the 
underwater survey, which is the most time-intensive portion of the AHE 
examination process. We recognize that divers will be used for the 
portions of the underwater survey that the underwater ROV is incapable 
of covering. Depending on the vessel's hull configuration, the 
underwater ROV may not be able to access as much as 10 to 20 percent of 
the vessel's hull plating. In addition, divers will be used to examine 
sea valves, sea chests, hull appurtenances, and rudders. A third party 
examiner will be present at the time when a diver is used during the 
examination if the data collected can not be integrated into the data 
collected with the ROV.
    Current ROV technology available to the marine industry includes 
underwater inspection vehicles with integrated non-destructive testing 
(NDT) sensors, high-resolution video systems, acoustic navigation and 
positioning systems, and data management systems with digital 
recording. Such systems are capable of capturing detailed, quantifiable 
data on hull plating thickness, coating thickness, coating condition, 
cathodic protection field, plating discontinuities (crack detection), 
and hull form analysis. With the use of acoustic navigation and 
positioning systems, all survey data can be correlated to an exact 
position (within a few inches) on the vessel's hull, which provide 
permanent, repeatable results for long-term trend analysis. Along with 
video imaging of the survey, inspection reports generated by digital 
data analysis can include color visualizations (maps) of the vessel's 
hull that indicate plating thickness (or wastage), coating thickness, 
and cathodic protection.
    If you choose to use an underwater ROV, the design, equipment 
specifications, results-reporting capabilities, operator 
qualifications, and quality assurance methods must be accepted by the 
OCMI. Additionally, the underwater ROV must undergo at least one 
operational test before acceptance.
    Because modern underwater ROV technology offers a hull examination 
process far superior to traditional underwater survey methods, and at 
least equivalent to hull examinations conducted in drydock, we are 
establishing a 60-month (5-year) hull examination interval when an 
Underwater ROV is used in the AHE process. A 5-year interval is in line 
with the current drydock examination interval required by regulations 
for passenger vessels operating in fresh water.
(j) Reports
Sections 71.50-29, 115.655, and 176.655
    We are adding Secs. 71.50-29, 115.655, and 176.655, which provide 
requirements for the hull examination report. The OCMI will evaluate 
the hull examination report and use it as an element in assessing the 
overall condition of the vessel.
    If divers are used exclusively to examine the underwater hull 
plating, you must provide a written report to the OCMI. This report 
must include thickness-gauging results, bearing clearances if required, 
a copy of the audio and video recordings, and any other information 
that will help the OCMI evaluate your vessel for a credit hull exam. 
The third party examiner must sign the report and confirm the validity 
of its contents. By signing the report, the third party examiner 
confirms that the results of the report are true and accurate. If you 
used divers exclusively to examine the hull plating and the report is 
approved, you could receive credit up to 36 months (3 years). 
Underwater surveys are required to be conducted twice every 60 months 
(5 years). If your report is not approved, the OCMI may require your 
vessel to be dry-docked to ensure passenger safety.
    When an underwater ROV is used to examine the hull plating, you 
must provide a report to the OCMI in an acceptable format. If the 
underwater ROV report is approved, you will receive a credit up to 60 
months (5 years). If your report is not approved the OCMI may require 
your vessel to be drydocked to ensure passenger safety.
(k) Continued Participation
Sections 71.50-31, 115.660, and 176.660
    We are adding Secs. 71.50-31, 115.660, and 176.660, which establish 
the requirements for continued participation in the AHE Program. To 
continue to participate in the AHE Program, the rule will require you 
to--
    (1) Conduct an annual hull condition assessment that evaluates your 
vessel's hull, through-hull fittings and

[[Page 21073]]

appurtenances and provides ultrasonic test results of high risk areas 
of the vessel's hull if the AHE was performed exclusively by divers or 
if deemed necessary by the OCMI;
    (2) Conduct preventive maintenance which must include--
     Inspection and replacement (as needed) of zinc anodes;
     Inspection and cleaning (as needed) of the underwater 
hull;
     Inspection and maintenance of the rudder and shaft seals;
     Inspection and operational testing of sea valves; and
     Flushing of sea chests and sea strainers; and
    (3) Submit the results of your preventive maintenance plan and hull 
condition assessment report to the Officer in Charge, Marine 
Inspection, annually. These reports must conform to the plans submitted 
in the application and may be in the form of reports or checklists, 
whichever format is more effective.
    Participating in the AHE Program is entirely voluntary. Once a 
vessel enters the program, it may receive credit for a hull exam; 
however, the OCMI may require it to be dry-docked if the examination 
process of the AHE Program is deemed inadequate for evaluating its hull 
condition or if out-of-water repairs are necessary.

Underwater Survey Program

(a) General
    This rule contains organizational and editorial changes to the 
regulations for the Underwater Survey Program.
Sections 167.15-35 and 169.230
    We are adding the term ``underwater survey'' to Secs. 167.15-35 and 
169.230. This change will require each vessel and barge to have a plan 
on board showing the vessel's scantlings during each underwater survey.
(b) Definitions
Sections 125.160, 167.15-27 and 169.231
    We are adding the definition of ``underwater survey'' in 
Secs. 125.160, 167.15-27 and 169.231. We are adding the definition of 
``underwater survey'' to introduce and clarify this examination process 
in subchapters L and R.
(c) Examination Intervals
Sections 71.50-3, 115.605, 126.140, 167.15-30, 169.229, and 176.605
    In these sections, we are revising the requirements for the 
drydocking and internal structural examination intervals to allow the 
option to participate in an underwater survey for qualifying passenger 
vessels, nautical school ships, OSVs and sailing school vessels. The 
revisions to Secs. 71.50-3, 115.605, and 176.605 provide the underwater 
survey option for passenger vessels on international voyages and 
passenger vessels not operated on international voyages. In 
Secs. 126.140 and 167.15-30, the revisions will allow nautical school 
ships operating in fresh or salt water and OSVs operating in salt water 
the option to have an underwater survey every other interval instead of 
drydocking (UWILD). In Sec. 169.229, the revisions will allow sailing 
school vessels operating in fresh or salt water the option to have an 
underwater survey instead of drydocking.
(d) Vessel Qualifications and Application
Sections 71.50-5, 115.615, 167.15-33, 169.230, and 176.615
    We are adding these sections to establish requirements for vessels 
to qualify for an underwater survey instead of alternate drydock 
examination. The OCMI may approve an underwater survey for a vessel if 
it is less than 15 years of age, and if it meets the structural and 
operational requirements of these sections. A vessel over 15 years of 
age may also qualify for an underwater survey if the results of hull 
gaugings taken at the drydock examination preceding the underwater 
survey find no appreciable deterioration and the OCMI provides a 
recommendation to the District Commander. The OCMI will notify the 
vessel owner or operator of approval. These sections also outline the 
application contents and submission requirements for an underwater 
survey.

Difference Between the NPRM and This Interim Rule

    The most significant difference between the NPRM and this interim 
rule is changing the AHE program from one of continuous extensions to 
establishing an equivalency between a satisfactory AHE exam and a 
traditional drydock exam allowing an OCMI to give credit for a hull. 
Another significant difference is the addition of offshore supply 
vessels to the UWILD program. Other changes are incidental and are 
described in the comments section.

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. The 
Office of Management and Budget has not reviewed it 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). A final Regulatory Evaluation under paragraph 10e of the 
regulatory policies and procedures of DOT follows:

Alternate Hull Examination (AHE) Program

     Certain passenger vessels, operating on restricted inland 
waterways, experience higher drydocking costs compared to vessels with 
convenient access to drydock facilities. These costs are related to the 
hull inspection process and include, as examples, lost revenue during 
transit to and from drydock facilities and time out of water. However, 
some of these vessels are at a lower risk for hull-stress due to their 
limited operating environments. To alleviate this cost burden, we are 
offering the AHE Program as an option to drydock examinations. These 
alternatives may, in some cases, be less costly for owners or operators 
than drydocking. Because the alternatives are voluntary, no costs are 
associated with this component of the rulemaking. Each vessel owner is 
given the option to choose the most cost-effective hull examination 
process. We estimate that about 51 passenger vessels will take 
advantage of the increased flexibility of this rule.

Underwater Survey In Lieu of Drydocking (UWILD) Program

    The UWILD Program will provide increased flexibility for hull 
inspections of U.S. passenger vessel, nautical school ship, sailing 
school vessel, and offshore supply vessel owners or operators. This 
program allows a vessel to undergo an underwater survey instead of a 
drydock examination every other interval and is currently available to 
most other classes of inspected vessels.
    Due to the success of the UWILD Program with these other vessel 
types, and the advanced underwater survey technology now available, the 
Coast Guard will allow passenger vessel and other specific vessel 
owners or operators the option to alternate between underwater surveys 
and drydock examinations. There are no additional costs to the vessel 
owners or operators with this component of the rulemaking because the 
use of underwater survey is completely voluntary. We estimate that 
6,224 vessels could take advantage of the increased flexibility of this 
rule.

Small Entities

    Under the Regulatory Flexibility Act (5 U.S.C. 601-612), we 
considered whether this rule will have a significant economic impact on 
a substantial

[[Page 21074]]

number of small entities. The term ``small entities'' comprises small 
businesses, not-for-profit organizations that are independently owned 
and operated and are not dominant in their fields, and governmental 
jurisdictions with populations of less than 50,000.
    We received one comment stating that under the Regulatory 
Flexibility Act, this rule would have a significant impact on many 
diving companies and other small businesses. These regulations present 
the vessel owner/operator with hull examination alternatives. Prior to 
this rulemaking, drydocking was the only alternative available to 
passenger vessels. This rulemaking provides the vessel owner/operator 
with two distinct programs, offering additional hull examination 
alternatives. This rule does not impose mandatory costs on any entity, 
and it will not increase costs to small entities. Instead, it will 
reduce the burden placed on them by allowing alternative means for 
conducting a drydock examination. One of those options is the use of 
divers for underwater surveys.
    The anticipated benefits of this rulemaking to small entities are 
as follows:

AHE Program

    These regulatory options reduce the inspection burden for vessels 
that must travel a great distance to drydock while providing an 
equivalent level of safety as drydock hull examinations. In cases where 
it is cost efficient for the vessel owner, these options will greatly 
decrease the amount of time and resources associated with a traditional 
drydock inspection and will therefore be beneficial to small entities. 
Because each vessel owner or operator experiences varying transit 
distances and financial impact, each owner should assess these factors 
on an individual basis.

UWILD Program

    This voluntary option aligns certain U.S. vessel regulations with 
international standards. This alignment will help the owners or 
operators of these U.S. vessels by granting them the same flexibility 
given to other vessel classes for conducting drydock examinations. By 
preventing significant delays and revenue loss, this option is expected 
to be more cost-effective than traditional drydock examinations for 
small entities that wish to participate in this voluntary option.
    Therefore, the Coast Guard certifies under 5 U.S.C. 605(b) that 
this rule will not have a significant economic impact on a substantial 
number of small entities. No data is available at this time to 
determine how many of the vessels affected by this rule are small 
entities. If you think that your business, organization, or 
governmental jurisdiction qualifies as a small entity and that this 
rule will have a significant economic impact on it, please submit a 
comment to the Docket Management Facility at the address under 
ADDRESSES. In your comment, explain why you think it qualifies and how 
and to what degree this rule will economically affect it.

Assistance for Small Entities

    Under section 213(a) of the Small Business Regulatory Enforcement 
Fairness Act of 1996 (Public Law 104-121), we want to assist small 
entities in understanding this rule so that they can better evaluate 
its effects on them and participate in the rulemaking. If the rule 
affects your small business, organization, or governmental jurisdiction 
and you have questions concerning its provisions or options for 
compliance, please contact Don Darcy, Office of Standards Evaluation 
and Development (G-MSR), 202-267-1200.
    Small entities may send comments on the actions of Federal 
employees who enforce, or otherwise determine compliance with, Federal 
regulations to the Small Business and Agriculture Regulatory 
Enforcement Ombudsman and the Regional Small Business Regulatory 
Fairness Boards. The Ombudsman evaluates these actions annually and 
rates each agency's responsiveness to small business. If you wish to 
comment on actions by employees of the Coast Guard, call 1-888-REG-FAIR 
(1-888-734-3247).

Collection of Information

    This rule calls for a collection of information under the Paperwork 
Reduction Act of 1995 (44 U.S.C. 3501-3520). As defined in 5 CFR 
1320.3(c), ``collection of information'' comprises reporting, 
recordkeeping, monitoring, posting, labeling, and other, similar 
actions. The titles and descriptions of the collection of information, 
descriptions of those who must collect the information, and estimates 
of the total annual burden, follow. Estimates cover the time for 
reviewing instructions, searching existing sources of data, gathering 
and maintaining the data needed, and completing the reviewing 
collection.
    The information collection requirements of this rule are addressed 
in the previously approved OMB collection 2115-0133.
    Title: Vessel Inspection Related Forms and Posting Requirements 
Under Title 46 U.S. Code.
    Summary of the Collection of Information: This rule requires vessel 
owners or operators to send applications, hull exam reports, hull 
condition assessments, and preventive maintenance plans to the Coast 
Guard in order to participate in the Alternative Hull Exam and UWILD 
Programs. Participation in the programs is completely voluntary. The 
previously approved OMB Collection 2115-0133 is revised and amended by 
the following sections:
    AHE Program. 46 CFR 71.50-19, 29, 31; 115.630, 655, 660 and; 
176.630, 655, 660.
    UWILD Program. 46 CFR 71.50-5, 115.615, 126.140, 167.15-33, 169.230 
and 176.615.

Need for Information

    AHE Program. The collection provides the Officer in Charge, Marine 
Inspection (OCMI) with information necessary to determine the hull 
condition of a vessel and if it is eligible for the AHE Program. The 
application includes a preventative maintenance plan and a hull 
condition assessment plan.
    UWILD Program. Depending on the age of the vessel, owners must 
apply to the OCMI or District Commander for approval of underwater 
surveys instead of drydock examinations for each vessel. This is a 
voluntary collection of information, which is intended to allow greater 
flexibility for owners of vessels.

Proposed Use of Information

    AHE Program. The application for an underwater hull inspection 
provides the OCMI with information necessary to determine if a vessel 
is eligible for the AHE Program.
    UWILD Program. The underwater survey application provides the OCMI 
information to determine if an underwater survey is sufficient to 
replace a drydock hull inspection.

Description of the Respondents

    AHE Program. The affected respondents are qualifying passenger 
vessels that operate exclusively on restricted, low-risk environments.
    UWILD Program. The affected respondents for this voluntary 
inspection process are all U.S. vessels that have steel or aluminum 
hulls and are covered under subchapters H, K, L, R, and T.

Number of Respondents

    AHE Program. We anticipate that 51 respondents will take advantage 
of this program.

[[Page 21075]]

    UWILD Program. We anticipate that 85 respondents will take 
advantage of this program.

Frequency of Response

    AHE Program. The Coast Guard expects the owners of 20 vessels to 
apply for participation in the AHE Program annually.
    UWILD Program. The Coast Guard expects the owners of 47 vessels to 
apply for underwater surveys annually.

Burden of Response

    AHE Program. We expect 20 AHE applications per year. Each 
application is expected to place a burden of two hours including 
research and legal review. Therefore, on average there will be an 
annual burden of 40 hours (20 applications per year  x  2 hours per 
application).
    UWILD Program. We expect 47 applications for underwater surveys per 
year. Each application will place a burden of two hours including 
research and legal review. Therefore, on average there will be an 
annual burden of 94 hours (47 applications per year  x  2 hours per 
application).

Estimate of Totel Annual Burden

    There are 134 annual burden hours attributed to this rule with a 
cost of $7,638 (at the industry wage rate of $57 per hour). Because the 
actual OMB Collection 2115-0133 entails many other collection 
requirements not affected by this rule and to maintain accuracy with 
the Coast Guard's collection burden budget, we are publishing the total 
hour burden for collection 2115-0133. The new total of burden hours for 
OMB 2115-0133 is 1,578 hours.

Public Comments on Collection of Information

    As required by the Paperwork Reduction Act of 1995 (44 U.S.C. 
3507(d)), we have submitted a copy of this rule to the Office of 
Management and Budget (OMB) for its review of the collection of 
information.
    We ask for public comment on the collection of information to help 
us determine how useful the information is; whether it can help us 
perform our functions better; whether it is readily available 
elsewhere; how accurate our estimate of the burden of collection is; 
how valid our methods for determining burden are; how we can improve 
the quality, usefulness, and clarity of the information; and how we can 
minimize the burden of collection.
    If you submit comments on the collection of information, submit 
them both to OMB and to the Docket Management Facility where indicated 
under ADDRESSES, by the date under DATES.
    You need not respond to a collection of information unless it 
displays a currently valid control number from OMB. Before the 
requirements for this collection of information become effective, we 
will publish notice in the Federal Register of OMB's decision to 
approve, modify, or disapprove the collection.

Federalism

    A rule has implications for federalism under Executive Order 13132, 
Federalism, if it has a substantial direct effect on State or local 
governments and would either preempt State law or impose a substantial 
direct cost of compliance on them.
    It is well settled that States may not regulate in categories 
reserved for regulation by the Coast Guard. It is also well settled, 
now, that all of the categories covered in 46 U.S.C. 3306, 3703, 7101, 
and 8101 (design, construction, alteration, repair, maintenance, 
operation, equipping, personnel qualification, and manning of vessels), 
as well as the reporting of casualties and any other category in which 
Congress intended the Coast Guard to be the sole source of a vessel's 
obligations, are within the field foreclosed from regulation by the 
States. (See the decision of the Supreme Court in the consolidated 
cases of United States v. Locke and Intertanko v. Locke, 529 U.S. 89, 
120 S.Ct. 1135 (March 6, 2000).)
    This rule falls into the category of maintenance of vessels. 
Because the States may not regulate within this category, preemption 
under Executive Order 13132 is not an issue.

Unfunded Mandates Reform Act

    The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538) 
requires Federal agencies to assess the effects of their regulatory 
actions not specifically required by law. In particular, the Act 
addresses actions that may result in the expenditure by a State, local, 
or tribal government, in the aggregate, or by the private sector of 
$100,000,000 or more in any one year. Though this rule will not result 
in such an expenditure, the effects of this rule are discussed 
elsewhere in this preamble.

Taking of Private Property

    This rule will not effect a taking of private property or otherwise 
have taking implications under Executive Order 12630, Governmental 
Actions and Interference with Constitutionally Protected Property 
Rights.

Civil Justice Reform

    This rule meets applicable standards in sections 3(a) and 3(b)(2) 
of Executive Order 12988, Civil Justice Reform, to minimize litigation, 
eliminate ambiguity, and reduce burden.

Protection of Children

    We have analyzed this rule under Executive Order 13045, Protection 
of Children from Environmental Health Risks and Safety Risks. This rule 
is not an economically significant rule and does not concern an 
environmental risk to health or risk to safety that may 
disproportionately affect children.

Consultation and Coordination With Indian Tribal Governments

    This proposed rule will not have tribal implications; will not 
impose substantial direct compliance costs on Indian tribal 
governments; and will not preempt tribal law. Therefore, it is exempt 
from the consultation requirements of Executive Order 13175. If tribal 
implications are identified during the comment period we will undertake 
appropriate consultations with the affected Indian tribal officials.

Energy Effects

    We have analyzed this rule under Executive Order 13211, Actions 
Concerning Regulations That Significantly Affect Energy Supply, 
Distribution, or Use. We have determined that it is not a ``significant 
energy action'' under that order because it is not a ``significant 
regulatory action'' under Executive Order 12866 and is not likely to 
have a significant adverse effect on the supply, distribution, or use 
of energy. It has not been designated by the Administrator of the 
Office of Information and Regulatory Affairs as a significant energy 
action. Therefore, it does not require a Statement of Energy Effects 
under Executive Order 13211.

Environment

    This rule deals exclusively with changing inspection intervals and 
providing voluntary dry-docking alternatives for certain passenger 
vessels. We considered the environmental impact of this rule and 
concluded that under figure 2-1, paragraph (34)(d), of Commandant 
Instruction M16475.1C, this rule is categorically excluded from further 
environmental documentation. A ``Categorical Exclusion Determination'' 
is available in the docket where indicated under ADDRESSES.

[[Page 21076]]

List of Subjects

46 CFR Part 71

    Marine safety, Passenger vessels, Reporting and recordkeeping 
requirements.

46 CFR Part 114

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

46 CFR Part 115

    Fire prevention, Marine safety, Passenger vessels, Reporting and 
recordkeeping requirements.

46 CFR Part 125

    Administrative practice and procedure, Cargo vessels, Hazardous 
materials transportation, Marine safety, Seamen.

46 CFR Part 126

    Authority delegation, Hazardous materials transportation, Marine 
safety, Offshore supply vessels, Oil and gas exploration, Reporting and 
recordkeeping requirements, Vessels.

46 CFR Part 167

    Fire prevention, Marine safety, Reporting and recordkeeping 
requirements, Schools, Seamen, Vessels.

46 CFR Part 169

    Fire prevention, Marine safety, Reporting and recordkeeping 
requirements, Schools, Vessels.

46 CFR Part 175

    Marine safety, Passenger vessels, Reporting and recordkeeping 
requirements.

46 CFR Part 176

    Fire prevention, Marine safety, Passenger vessels, Reporting and 
recordkeeping requirements.


    For the reasons discussed in the preamble, the Coast Guard is 
amending 46 CFR parts 71, 114, 115, 125, 126, 167, 169, 175 and 176 as 
follows:

PART 71--INSPECTION AND CERTIFICATION

    1. The authority citation for Part 71 continues to read as follows:

    Authority: 33 U.S.C. 1321(j); 46 U.S.C. 2113, 3205, 3306, 3307; 
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.


    2. Revise Sec. 71.50-1 to read as follows:


Sec. 71.50-1  Definitions relating to hull examinations.

    As used in this part--
    Adequate hull protection system means a method of protecting the 
vessel's hull from corrosion. It includes, as a minimum, either hull 
coatings and a cathodic protection (CP) system consisting of zinc 
anodes, or an impressed current CP system.
    Alternative Hull Examination (AHE) Program means a program in which 
an eligible vessel may receive an initial and subsequent credit hull 
examination through a combination of underwater surveys, internal 
examinations, and annual hull condition assessment.
    Drydock examination means hauling out a vessel or placing a vessel 
in a drydock or slipway for an examination of all accessible parts of 
the vessel's underwater body and all through-hull fittings and 
appurtenances.
    Internal structural examination means an examination of the vessel 
while afloat or in drydock and consists of a complete examination of 
the vessel's main strength members, including the major internal 
framing, the hull plating, voids, and ballast tanks, but not including 
cargo, sewage, or fuel oil tanks.
    Remotely operated vehicle (ROV) team, at a minimum, consist of an 
ROV operator, a non-destructive testing inspector, an ROV tender or 
mechanic, and a team supervisor who is considered by the Officer in 
Charge, Marine Inspection (OCMI), to have the appropriate training and 
experience to perform the survey and to safely operate the ROV in an 
effective manor. The team must also have a hull-positioning technician 
present. This position may be assigned to a team member already 
responsible for another team duty.
    Shallow water is an ascertained water depth at which the uppermost 
deck(s) of a sunken vessel remain above the water's surface. The 
determination of the water's depth is made by the Officer in Charge, 
Marine Inspection (OCMI) who considers the vessel's stability 
(passenger heeling moment), the contour of the hull, the composition of 
the river bottom, and any other factors that would tend to prevent a 
vessel from resting an even keel.
    Third party examiner means an entity:
    (1) With a thorough knowledge of diving operations, including 
diving limitations as related to diver safety and diver supervision;
    (2) Having a familiarity with, but not limited to, the following--
    (i) The camera used during the AHE; and
    (ii) The NDT equipment used during the AHE, including the effect of 
water clarity, and marine growth in relation to the quality of the 
readings obtained;
    (3) Having a familiarity with the communications equipment used 
during the AHE;
    (4) Possessing the knowledge of vessel structures, design features, 
nomenclature, and the applicable AHE regulations; and
    (5) Able to present the Officer in Charge, Marine Inspection, with 
evidence of formal training, demonstrated ability, past acceptance, or 
a combination of these.
    Underwater Survey in Lieu of Drydocking (UWILD) means a program in 
which an eligible vessel may alternate between an underwater survey and 
the required drydock examinations.
    3. In Sec. 71.50-3 revise the section heading, paragraph (a), the 
introductory text of paragraph (b), redesignate paragraph (f) as 
paragraph (g), and add new paragraph (f) to read as follows:


Sec. 71.50-3  Drydock examination, internal structural examination, 
underwater survey, and alternate hull exam intervals.

    (a) If your vessel is operated on international voyages, it must 
undergo a drydock and internal structural examination once every 12 
months unless it has been approved to undergo an underwater survey per 
Sec. 71.50-5 of this part.
    (b) If your vessel is operated on other than international voyages 
and does not meet the conditions in paragraphs (c) through (f) of this 
section, it must undergo a drydock and internal structural examination 
as follows unless it has been approved to undergo an underwater survey 
per Sec. 71.50-5 of this part:
* * * * *
    (f) For a vessel that is eligible per Sec. 71.50-17 and the owner 
opts for an alternate hull examination with the underwater survey 
portion conducted exclusively by divers, the vessel must undergo two 
alternate hull exams and two internal structural exams within any five-
year period. If a vessel completes a satisfactory alternate hull exam, 
with the underwater survey portion conducted predominantly by an 
approved underwater ROV, the vessel must undergo one alternate hull and 
one internal structural exam, within any five-year period. The vessel 
may undergo a drydock exam to satisfy any of the required alternate 
hull exams.


Sec. 71.50-5  [Redesignated as Sec. 71.50-35 and amended]

    4. Redesignate Sec. 71.50-5 as Sec. 71.50-35; in paragraph (b), 
remove the words ``a drydock examination or internal structural 
examination'' and add, in their place, the words ``a drydock 
examination, internal structural

[[Page 21077]]

examination, or underwater survey,''; in paragraph (c), remove the 
words ``a drydock examination or internal structural examination'' and 
add, in their place, the words ``a drydock examination, internal 
structural examination, or underwater survey''.

    5. Add new Sec. 71.50-5 to read as follows:


Sec. 71.50-5  Underwater Survey in Lieu of Drydocking (UWILD).

    (a) The Officer in Charge, Marine Inspection (OCMI), may approve an 
underwater survey instead of a drydock examination at alternating 
intervals if your vessel is--
    (1) Less than 15 years of age;
    (2) A steel or aluminum hulled vessel;
    (3) Fitted with an effective hull protection system; and
    (4) Described in Sec. 71.50-3(a) or (b).
    (b) For vessels less than 15 years of age, you must submit an 
application for an underwater survey to the OCMI at least 90 days 
before your vessel's next required drydock examination. The application 
must include--
    (1) The procedure for carrying out the underwater survey;
    (2) The time and place of the underwater survey;
    (3) The method used to accurately determine the diver's or remotely 
operated vehicle's (ROV) location relative to the hull;
    (4) The means for examining all through-hull fittings and 
appurtenances;
    (5) The means for taking shaft bearing clearances;
    (6) The condition of the vessel, including the anticipated draft of 
the vessel at the time of survey;
    (7) A description of the hull protection system; and
    (8) The name and qualifications of any third party examiner.
    (c) If your vessel is 15 years old or older, the cognizant District 
Commander for the area in which the exam is being completed, may 
approve an underwater survey instead of a drydock examination at 
alternating intervals. You must submit an application for an underwater 
survey to the OCMI at least 90 days before your vessel's next required 
drydock examination. You may be allowed this option if--
    (1) The vessel is qualified under paragraphs (a)(2) through (4) of 
this section;
    (2) Your application includes the information in paragraphs (b)(1) 
through (b)(8) of this section; and
    (3) During the vessel's drydock examination that precedes the 
underwater survey, a complete set of hull gaugings was taken and they 
indicated that the vessel was free from appreciable hull deterioration.
    (d) After this drydock examination required in paragraph (c)(3) of 
this section, the OCMI submits a recommendation for future underwater 
surveys, the results of the hull gauging, and the results of the Coast 
Guards' drydock examination results to the cognizant District Commander 
for review.

    6. Add Sec. 71.50-15 to read as follows:


Sec. 71.50-15  Description of the Alternate Hull Examination (AHE) 
Program for certain passenger vessels.

    The Alternative Hull Examination (AHE) Program provides you with an 
alternative to drydock examination by allowing your vessel's hull to be 
examined while it remains afloat. If completed using only divers, this 
program has four steps: the application process, the preliminary 
examination, the pre-survey meeting, and the hull examination. If a 
remotely operated vehicle (ROV) is used during the program the 
preliminary exam step may be omitted. Once you complete these steps, 
the Officer in Charge, Marine Inspection (OCMI), will evaluate the 
results and accept the examination as a credit hull exam if the vessel 
is in satisfactory condition. If divers are exclusively used for the 
underwater survey portion of the examination process, you may receive 
credit for a period of time such that subsequent AHEs would be 
conducted at intervals of twice in every five years, with no more than 
three years between any two AHEs. If an underwater ROV is used as the 
predominant method to examine the vessel's underwater hull plating, you 
may receive credit up to five years. At the end of this period, you may 
apply for further participation under the AHE Program.

    Note to Sec. 71.50-15: The expected hull coverage when using an 
ROV must be at least 80 percent.


    7. Add Sec. 71.50-17 to read as follows:


Sec. 71.50-17  Eligibility requirements for the Alternative Hull 
Examination (AHE) Program for certain passenger vessels.

    (a) Your vessel may be eligible for the AHE Program if--
    (1) It is constructed of steel or aluminum;
    (2) It has an effective hull protection system;
    (3) It has operated exclusively in fresh water since its last 
drydock examination;
    (4) It operates in a reduced risk environment such as a river or 
the protected waters of a lake; and
    (5) It operates exclusively in shallow water or within 0.5 nautical 
miles from shore.
    (b) In addition to the requirements in paragraph (a), the Officer 
in Charge, Marine Inspection (OCMI), will evaluate the following 
information when determining your vessel's eligibility for the AHE 
Program:
    (1) The overall condition of the vessel, based on its inspection 
history;
    (2) The vessel's history of hull casualties and hull-related 
deficiencies; and
    (3) The AHE Program application, as described in Sec. 71.50-19 of 
this part.
    (c) When reviewing a vessel's eligibility for the AHE program, the 
OCMI may modify the standards given by paragraph (a)(5) of this section 
where it is considered safe and reasonable to do so. In making this 
determination, the OCMI will consider the vessel's overall condition, 
its history of safe operation, and any other factors that serve to 
mitigate overall safety risks.

    8. Add Sec. 71.50-19 to read as follows:


Sec. 71.50-19  The Alternative Hull Examination (AHE) Program 
application.

    If your vessel meets the eligibility criteria in Sec. 71.50-17 of 
this part, you may apply to the AHE Program. You must submit an 
application at least 90 days before the requested hull examination date 
to the Officer in Charge, Marine Inspection (OCMI), who will oversee 
the hull examination. The application must include--
    (a) The proposed time and place for conducting the hull 
examination;
    (b) The name of the participating diving contractor and underwater 
remotely operated vehicle (ROV) company accepted by the OCMI under 
Sec. 71.50-27 of this part;
    (c) The name and qualifications of the third party examiner. This 
person must be familiar with the inspection procedures and his or her 
responsibilities under this program. The OCMI has the discretionary 
authority to accept or deny use of any third party examiner using the 
criteria established in Sec. 71.50-1 of this part;
    (d) A signed statement from your vessel's master, chief engineer, 
or the person in charge stating the vessel meets the eligibility 
criteria of Sec. 71.50-17 of this part and a description of the 
vessel's overall condition, level of maintenance, known or suspected 
damage, underwater body cleanliness, and the anticipated draft of the 
vessel at the time of the examination;
    (e) Plans or drawings that illustrate the external details of the 
hull below the sheer strake;
    (f) A detailed plan for conducting the hull examination in 
accordance with Secs. 71.50-25 and 71.50-27 of this part, which must 
address all safety concerns

[[Page 21078]]

related to the removal of sea valves during the inspection; and
    (g) A preventative maintenance plan for your vessel's hull, its 
related systems and equipment.

    9. Add Sec. 71.50-21 to read as follows:


Sec. 71.50-21  Preliminary examination requirements.

    (a) If you exclusively use divers to examine the underwater hull 
plating, you must arrange to have a preliminary examination conducted 
by a third party examiner, with the assistance of qualified divers. The 
purpose of the preliminary examination is to assess the overall 
condition of the vessel's hull and identify any specific concerns to be 
addressed during the underwater hull examination.
    (b) The preliminary examination is required only upon the vessel's 
entry or reentry into the AHE program.
    (c) If you use an underwater ROV as the predominant means to 
examine your vessel's hull plating, a preliminary examination and the 
participation of a third party examiner will not be necessary.

    10. Add Sec. 71.50-23 to read as follows:


Sec. 71.50-23  Pre-Survey meeting.

    (a) In advance of each AHE, you must conduct a pre-survey meeting 
to discuss the details of the AHE procedure with the Officer in Charge, 
Marine Inspection (OCMI). If you exclusively use divers to examine the 
underwater hull plating, the third party examiner must attend the 
meeting and you must present the results of the preliminary 
examination. If you use an underwater remotely operated vehicle (ROV) 
as the predominant means to examine the vessel's hull plating, then the 
pre-survey meeting must be attended by a representative of the ROV 
operating company who is qualified to discuss the ROV's capabilities 
and limitations of your vessel's hull design and configuration.
    (b) A vessel owner, operator, or designated agent must request this 
meeting in writing at least 30 days in advance of the examination date.

    11. Add Sec. 71.50-25 to read as follows:


Sec. 71.50-25  Alternative Hull Examination (AHE) procedure.

    (a) To complete the underwater survey you must--
    (1) Perform a general examination of the underwater hull plating 
and a detailed examination of all hull welds, propellers, tailshafts, 
rudders, and other hull appurtenances;
    (2) Examine all sea chests;
    (3) Remove and inspect all sea valves in the presence of a marine 
inspector;
    (4) Remove all passengers from the vessel when the sea valves are 
being examined, if required by the Officer in Charge, Marine Inspection 
(OCMI);
    (5) Allow access to all internal areas of the hull for examination, 
except internal tanks that carry fuel, sewage, or potable water. 
Internal tanks that carry fuel must be examined in accordance with 
Sec. 71.53-1 of this part. Internal sewage and potable water tanks may 
be examined visually or by non-destructive testing to the satisfaction 
of the attending marine inspector; and
    (6) Meet the requirements in Sec. 71.50-27 of this part.
    (b) A marine inspector may examine any other areas deemed necessary 
by the OCMI.
    (c) If the AHE reveals significant deterioration or damage to the 
vessel's hull plating or structural members, the OCMI must be 
immediately notified. The OCMI may require the vessel be drydocked or 
otherwise taken out of service to further assess the extent of damage 
or to effect permanent repairs if the assessment or repairs cannot be 
completed to the satisfaction of the OCMI while the vessel is 
waterborne.

    12. Add Sec. 71.50-27 to read as follows:


Sec. 71.50-27  Alternative Hull Examination (AHE) Program options: 
Divers or underwater remotely operated vehicle (ROV).

    To conduct the underwater survey portion of the AHE, you may use 
divers or an underwater ROV.
    (a) If you use divers to conduct the underwater survey, you must:
    (1) Locate the vessel so the divers can work safely under the 
vessel's keel and around both sides. The water velocity must be safe 
for dive operations;
    (2) Provide permanent hull markings or a temporary underwater grid 
system to identify the diver's location with respect to the hull, 
within one foot of accuracy;
    (3) Take ultrasonic thickness gaugings at a minimum of 5 points on 
each plate, evenly spaced;
    (4) Take hull plating thickness gaugings along transverse belts at 
the bow, stern, and midships, as a minimum. Plating thickness gaugings 
must also be taken along a longitudinal belt at the wind and water 
strake. Individual gaugings along the transverse and longitudinal belts 
must be spaced no more than 3 feet apart;
    (5) Ensure the third party examiner observes the entire underwater 
examination process;
    (6) Record the entire underwater survey with audio and video 
recording equipment and ensure that communications between divers and 
the third party examiner are recorded; and
    (7) Use appropriate equipment, such as a clear box, if underwater 
visibility is poor, to provide the camera with a clear view of the 
hull.
    (b) You may use an underwater ROV to conduct the underwater survey. 
The underwater ROV operating team, survey process and equipment, 
quality assurance methods, and the content and format of the survey 
report must be accepted by the Officer in Charge, Marine Inspection 
(OCMI) prior to the survey. If you choose this option, you must--
    (1) Locate the vessel to ensure that the underwater ROV can operate 
effectively under the vessel's keel and around all sides;
    (2) Employ divers to examine any sections of the hull and 
appurtenances that the underwater ROV cannot access or is otherwise 
unable to evaluate; and
    (3) If the OCMI determines that the data obtained by the ROV, 
including non-destructive testing results, readability of the results, 
and positioning standards, will not integrate into the data obtained by 
the divers, then a third party examiner must be present during the 
divers portion of the examination.

    13. Add Sec. 71.50-29 to read as follows:


Sec. 71.50-29  Hull examination reports.

    (a) If you exclusively use divers for the underwater survey portion 
of the Alternate Hull Examination (AHE), you must provide the Officer 
in Charge, Marine Inspection (OCMI), with a written hull examination 
report. This report must include thickness gauging results, bearing 
clearances, a copy of the audio and video recordings and any other 
information that will help the OCMI evaluate your vessel for a drydock 
extension. The third party examiner must sign the report and confirm 
the validity of its contents.
    (b) If you use an underwater ROV as the predominant means to 
examine the vessel's underwater hull plating, you must provide the OCMI 
with a report in the format that is accepted by the OCMI, per 
Sec. 71.50-27(b) of this part.
    (c) The OCMI will evaluate the hull examination report and grant a 
credit hull exam if satisfied with the condition of the vessel. If 
approved and you exclusively use divers to examine the hull plating, 
you may receive a credit hull exam up to 36 months. (Underwater 
examinations are required twice every 5 years). If approved and you use 
an underwater ROV as the predominant means to examine the underwater 
hull plating, you may receive a credit hull exam up to 60 months (5 
years).

    14. Add Sec. 71.50-31 to read as follows:

[[Page 21079]]

Sec. 71.50-31  Continued participation in the Alternative Hull 
Examination (AHE) Program.

    (a) If you conducted the AHE Program using divers only and want to 
continue to participate in the program, you must conduct an annual hull 
condition assessment. At a minimum, the hull condition assessment must 
include an internal examination and random hull gaugings taken 
internally. If the annual hull condition assessment reveals significant 
damage or corrosion, where temporary repairs have been made, or where 
other critical areas of concern have been identified, the Officer in 
Charge, Marine Inspection (OCMI) may require an expanded examination to 
include an underwater hull examination using divers. If an underwater 
examination is required, the examination must focus on areas at higher 
risk of damage or corrosion and must include a representative sampling 
of hull gaugings.
    (b) If an underwater survey is required for the annual hull 
condition assessment, the OCMI may require the presence of a third 
party examiner and a written hull examination report must be submitted 
to the OCMI. This report must include thickness gauging results, a copy 
of the audio and video recordings and any other information that will 
help the OCMI evaluate your vessel for continued participation in the 
AHE program. The third party examiner must sign the report and confirm 
the validity of its contents.
    (c) You must submit your preventive maintenance reports or 
checklists on an annual basis to the OCMI. These reports or checklists 
must conform to the plans you submitted in your application under 
Sec. 71.50-19 of this part, which the OCMI approved.
    (d) Prior to each scheduled annual hull condition assessment--
    (1) The owner may submit to the OCMI a request for a waiver of this 
requirement no fewer than 30 days before the scheduled assessment; and
    (2) The OCMI may reduce the scope or extend the interval of the 
assessment if the operational, casualty, and deficiency history of the 
vessel, along with a recommendation of the vessel's master, indicates 
that it is warranted.

PART 114--GENERAL PROVISIONS

    15. The authority citation for Part 114 continues to read as 
follows:

    Authority: 46 U.S.C. 2103, 3306, 3307, 3703; 49 U.S.C. App. 
1804; 49 CFR 1.45, 1.46. Section 114.900 also issued under 44 U.S.C. 
3507.

    16. Add the following definitions to Sec. 114.400(b) in 
alphabetical order:


Sec. 114.400  Definitions of terms used in this subchapter.

* * * * *
    (b) * * *
    Alternative Hull Examination (AHE) Program means a program in which 
an eligible vessel may receive an initial and subsequent credit hull 
examination through a combination of underwater surveys, internal 
examinations, and annual hull condition assessments.
    Adequate hull protection system means a method of protecting the 
vessel's hull from corrosion. It includes, as a minimum, either hull 
coatings and a cathodic protection (CP) system consisting of zinc 
anodes, or an impressed current CP system.
* * * * *
    Drydock examination means hauling out a vessel or placing a vessel 
in a drydock or slipway for an examination of all accessible parts of 
the vessel's underwater body and all through-hull fittings and 
appurtenances.
* * * * *
    Internal structural examination means an examination of the vessel 
while afloat or in drydock and consists of a complete examination of 
the vessel's main strength members, including the major internal 
framing, the hull plating, voids, and ballast tanks, but not including 
cargo, sewage, or fuel oil tanks.
* * * * *
    Remotely operated vehicle (ROV) team, at a minimum, consist of an 
ROV operator, a non-destructive testing inspector, an ROV tender or 
mechanic, and a team supervisor who is considered by the Officer in 
Charge, Marine Inspection (OCMI), have the appropriate training and 
experience to perform the survey and to safely operate the ROV in an 
effective manor. The team must also have a hull-positioning technician 
present. This position may be assigned to a team member already 
responsible for another team duty.
* * * * *
    Shallow water is an ascertained water depth at which the uppermost 
deck(s) of a sunken vessel remain above the water's surface. The 
determination of the water's depth is made by the Officer in Charge, 
Marine Inspection (OCMI) who considers the vessel's stability 
(passenger heeling moment), the contour of the hull, the composition of 
the river bottom, and any other factors that would tend to prevent a 
vessel from resting an even keel.
* * * * *
    Third party examiner means an entity:
    (1) With a thorough knowledge of diving operations, including 
diving limitations as related to diver safety and diver supervision;
    (2) Having a familiarity with, but not limited to, the following--
    (i) The camera used during the AHE; and
    (ii) The NDT equipment used during the AHE, including the effect of 
water clarity, and marine growth in relation to the quality of the 
readings obtained;
    (3) Having a familiarity with the communications equipment used 
during the AHE;
    (4) Possessing the knowledge of vessel structures, design features, 
nomenclature, and the applicable AHE regulations; and
    (5) Able to present the Officer in Charge, Marine Inspection, with 
evidence of formal training, demonstrated ability, past acceptance, or 
a combination of these.
* * * * *
    Underwater Survey in Lieu of Drydocking (UWILD) means a program in 
which an eligible vessel may alternate between an underwater survey and 
the required drydock examinations.
* * * * *

PART 115--INSPECTION AND CERTIFICATION

    17. The authority citation for Part 115 continues to read as 
follows:

    Authority: 33 U.S.C. 1321(j); 46 U.S.C. 2103, 3205, 3306, 3307; 
49 U.S.C. App. 1804; E.O. 11735, 38 FR 21243, 3 CFR, 1971-1975 
Comp., p. 743; E.O. 12234, 45 FR 58801, 3 CFR, 1980 Comp., p. 277; 
49 CFR 1.46.


    18. In Sec. 115.600--
    a. Revise the section heading;
    b. Revise paragraph (a);
    c. Revise the first sentence of paragraph (b);
    d. Revise the introductory text of paragraph (c); and
    e. Add paragraph (e) to read as follows:


Sec. 115.600  Drydock examination, internal structural examination, and 
underwater survey intervals.

    (a) The owner or managing operator shall make a vessel available 
for drydock examinations, internal structural examinations, and 
underwater surveys required by this section.
    (b) If your vessel is operated on international voyages subject to 
SOLAS requirements, it must undergo a drydock examination once every 12 
months unless it has been approved to undergo an underwater survey 
(UWILD) per Sec. 115.615 of this part. * * *
    (c) If your vessel is operated on other than international voyages 
and does not meet the conditions in paragraph (d) of

[[Page 21080]]

this section, it must undergo a drydock and internal structural 
examination as follows unless it has been approved to undergo an 
underwater survey (UWILD) per Sec. 115.615 of this part:
* * * * *
    (e) For a vessel that is eligible per Sec. 115.625 of this part and 
the owner opts for an alternate hull examination with the underwater 
survey portion conducted exclusively by divers, the vessel must undergo 
two alternate hull exams and two internal structural exams within any 
five-year period. If a vessel completes a satisfactory alternate hull 
exam, with the underwater survey portion conducted predominantly by an 
approved underwater remotely operated vehicle (ROV), the vessel must 
undergo one alternate hull and one internal structural exam, within any 
five-year period. The vessel may undergo a drydock exam to satisfy any 
of the required alternate hull exams.


Secs. 115.612, 115.630, and 115.670  [Redesignated as Secs. 115.665, 
115.670, and 115.675]

    19. Redesignate Secs. 115.612, 115.630, and 115.670 as 
Secs. 115.665, 115.670, and 115.675, respectively.
    20. Add Sec. 115.615 to read as follows:


Sec. 115.615  Underwater Survey in Lieu of Drydocking (UWILD).

    (a) The Officer in Charge, Marine Inspection (OCMI), may approve an 
underwater survey instead of a drydock examination at alternating 
intervals if your vessel is--
    (1) Less than 15 years of age;
    (2) A steel or aluminum hulled vessel;
    (3) Fitted with an effective hull protection system; and
    (4) Described in Sec. 115.600(b) or (c) of this part.
    (b) For vessels less than 15 years of age, you must submit an 
application for an underwater survey to the OCMI at least 90 days 
before your vessel's next required drydock examination. The application 
must include--
    (1) The procedure for carrying out the underwater survey;
    (2) The time and place of the underwater survey;
    (3) The method used to accurately determine the diver's or remotely 
operated vehicle's (ROV) location relative to the hull;
    (4) The means for examining all through-hull fittings and 
appurtenances;
    (5) The condition of the vessel, including the anticipated draft of 
the vessel at the time of survey;
    (6) A description of the hull protection system; and
    (7) The name and qualifications of any third party examiner.
    (c) If your vessel is 15 years old or older, the cognizant District 
Commander, may approve an underwater survey instead of a drydock 
examination at alternating intervals. You must submit an application 
for an underwater survey to the OCMI at least 90 days before your 
vessel's next required drydock examination. You may be allowed this 
option if--
    (1) The vessel is qualified under paragraphs (a)(2) through (4) of 
this section;
    (2) Your application includes the information in paragraphs (b)(1) 
through (b)(7) of this section; and
    (3) During the vessel's drydock examination, preceding the 
underwater survey, a complete set of hull gaugings was taken and they 
indicated that the vessel was free from appreciable hull deterioration.
    (d) After this drydock examination required by paragraph (c)(3) of 
this section, the OCMI submits a recommendation for future underwater 
surveys, the results of the hull gauging, and the results of the Coast 
Guards' drydock examination results to the District Commander for 
cognizant review.

    21. Add Sec. 115.620 to read as follows:


Sec. 115.620  Description of the Alternate Hull Examination (AHE) 
Program for certain passenger vessels.

    The Alternate Hull Examination (AHE) Program provides you with an 
alternative to drydock examination by allowing your vessel's hull to be 
examined while it remains afloat. If completed using only divers, this 
program has four steps: the application process, the preliminary 
examination, the pre-survey meeting, and the hull examination. If a 
remotely operated vehicle (ROV) is used during the program the 
preliminary exam step may be omitted. Once you complete these steps, 
the Officer in Charge, Marine Inspection (OCMI) will evaluate the 
results and accept the examination as a credit hull exam if the vessel 
is in satisfactory condition. If divers are exclusively used for the 
underwater survey portion of the examination process, you may receive 
credit for a period of time such that subsequent AHEs would be 
conducted at intervals of twice in every five years, with no more than 
three years between any two AHEs. If an underwater ROV is used as the 
predominant method to examine the vessel's underwater hull plating, you 
may receive credit up to five years. At the end of this period, you may 
apply for further participation under the AHE Program.

    22. Add Sec. 115.625 to read as follows:


Sec. 115.625  Eligibility requirements for the Alternative Hull 
Examination (AHE) Program for certain passenger vessels.

    (a) Your vessel may be eligible for the AHE Program if--
    (1) It is constructed of steel or aluminum;
    (2) It has an effective hull protection system;
    (3) It has operated exclusively in fresh water since its last 
drydock examination;
    (4) It operates in rivers or protected lakes; and
    (5) It operates exclusively in shallow water or within 0.5 nautical 
miles from shore.
    (b) In addition to the requirements in paragraph (a) of this 
section, the Officer in Charge, Marine Inspection (OCMI) will evaluate 
the following information when determining your vessel's eligibility 
for the AHE Program:
    (1) The overall condition of the vessel, based on its inspection 
history;
    (2) The vessel's history of hull casualties and hull-related 
deficiencies; and
    (3) The AHE Program application, as described in Sec. 115.630 of 
this part.
    (c) When reviewing a vessel's eligibility for the AHE program, the 
OCMI may modify the standards given by paragraph (a)(5) of this section 
where it is considered safe and reasonable to do so. In making this 
determination, the OCMI will consider the vessel's overall condition, 
its history of safe operation, and any other factors that serve to 
mitigate overall safety risks.
    23. Add Sec. 115.630 to read as follows:


Sec. 115.630  The Alternative Hull Examination (AHE) Program 
application.

    If your vessel meets the eligibility criteria in Sec. 115.625 of 
this part, you may apply to the AHE Program. You must submit an 
application at least 90 days before the requested hull examination date 
to the Officer in Charge, Marine Inspection (OCMI) who will oversee the 
survey. The application must include--
    (a) The proposed time and place for conducting the hull 
examination;
    (b) The name of the participating diving contractor and underwater 
remotely operated vehicle (ROV) company which must be accepted by the 
OCMI under Sec. 115.650;
    (c) The name and qualifications of the third party examiner. This 
person must be familiar with the inspection procedures and his or her 
responsibilities under this program. The OCMI has the discretionary 
authority to accept or deny use of a particular third party examiner 
using the criteria established in 46 CFR 114.400;

[[Page 21081]]

    (d) A signed statement from your vessel's master, chief engineer, 
or the person in charge describing the vessel's overall condition, 
level of maintenance, known or suspected damage, underwater body 
cleanliness, and the anticipated draft of the vessel at the time of the 
examination;
    (e) Plans or drawings that illustrate the external details of the 
hull below the sheer strake;
    (f) A detailed plan for conducting the hull examination in 
accordance with Secs. 115.645 and 115.650 of this part, which must 
address all safety concerns related to the removal of sea valves during 
the inspection; and
    (g) A preventative maintenance plan for your vessel's hull, its 
related systems and equipment.

    24. Add Sec. 115.635 to read as follows:


Sec. 115.635  Preliminary examination requirements.

    (a) If you exclusively use divers to examine the underwater hull 
plating, you must arrange to have a preliminary examination conducted 
by a third party examiner, with the assistance of qualified divers. The 
purpose of the preliminary examination is to assess the overall 
condition of the vessel's hull and identify any specific concerns to be 
addressed during the underwater hull examination.
    (b) If you use an underwater ROV as the predominate means to 
examine your vessel's hull plating, a preliminary examination and the 
participation of a third party examiner will not be necessary.
    (c) The preliminary examination is required only upon the vessel's 
entry or review into the AHE program.

    25. Add Sec. 115.640 to read as follows:


Sec. 115.640  Pre-Survey meeting.

    (a) You must conduct a pre-survey meeting to discuss the details of 
the AHE procedure with the Officer in Charge, Marine Inspection (OCMI). 
If you exclusively use divers to examine the underwater hull plating, 
the third party examiner must attend the meeting and you must present 
the results of the preliminary examination. If you use an underwater 
remotely operated vehicle (ROV) as the predominate means to examine the 
vessel's hull plating, then a representative of the ROV operating 
company must attend the pre-survey meeting and address the underwater 
ROV's capabilities and limitations related to your vessel's hull design 
and configuration.
    (b) A vessel owner, operator, or designated agent must request this 
meeting in writing at least 30 days in advance of the examination date.

    26. Add Sec. 115.645 to read as follows:


Sec. 115.645  Alternative Hull Examination (AHE) Procedure.

    (a) To complete the underwater survey you must--
    (1) Perform a general examination of the underwater hull plating 
and a detailed examination of all hull welds, propellers, tailshafts, 
rudders, and other hull appurtenances;
    (2) Examine all sea chests;
    (3) Remove and inspect all sea valves in the presence of a marine 
inspector;
    (4) Remove all passengers from the vessel when the sea valves are 
being examined, if required by the Officer in Charge, Marine Inspection 
(OCMI);
    (5) Allow access to all internal areas of the hull for examination, 
except internal tanks that carry fuel (unless damage or deterioration 
is discovered or suspect), sewage, or potable water. Internal sewage 
and potable water tanks may be examined visually or by non-destructive 
testing to the satisfaction of the attending marine inspector; and
    (6) Meet the requirements in Sec. 115.650 of this part.
    (b) A marine inspector may examine any other areas deemed necessary 
by the OCMI.
    (c) If the AHE reveals significant deterioration or damage to the 
vessel's hull plating or structural members, the OCMI must be 
immediately notified. The OCMI may require the vessel be drydocked or 
otherwise taken out of service to further assess the extent of damage 
or to effect permanent repairs if the assessment or repairs cannot be 
completed to the satisfaction of the OCMI while the vessel is 
waterborne.

    27. Add Sec. 115.650 to read as follows:


Sec. 115.650  Alternative Hull Examination (AHE) Program options: 
Divers or underwater ROV.

    To complete your underwater survey, you may use divers or an 
underwater remotely operated vehicle (ROV).
    (a) If you use divers to conduct the underwater survey, you must--
    (1) Locate the vessel so the divers can work safely under the 
vessel's keel and around both sides. The water velocity must be safe 
for dive operations;
    (2) Provide permanent hull markings or a temporary underwater grid 
system to identify the diver's location with respect to the hull, 
within one foot of accuracy;
    (3) Take ultrasonic thickness gaugings at a minimum of 5 points on 
each plate, evenly spaced;
    (4) Take hull plating thickness gaugings along transverse belts at 
the bow, stern, and midships, as a minimum. Plating thickness gaugings 
must also be taken along a longitudinal belt at the wind and water 
strake. Individual gaugings along the transverse and longitudinal belts 
must be spaced no more than 3 feet apart;
    (5) Ensure the third party examiner observes the entire underwater 
examination process;
    (6) Record the entire underwater survey with audio and video 
recording equipment and ensure that communications between divers and 
the third party examiner are recorded; and
    (7) Use appropriate equipment, such as a clear box, if underwater 
visibility is poor, to provide the camera with a clear view of the 
hull.
    (b) You may use an underwater ROV to conduct the underwater survey. 
The underwater ROV operating team, survey process and equipment, 
quality assurance methods, and the content and format of the survey 
report must be accepted by the Officer in Charge, Marine Inspection 
(OCMI) prior to conducting the survey. If you choose this option, you 
must--
    (1) Locate the vessel to ensure that the underwater ROV can operate 
effectively under the vessel's keel and around both sides;
    (2) Employ divers to examine any sections of the hull and 
appurtenances that the underwater ROV cannot access or is otherwise 
unable to evaluate; and
    (3) If the OCMI determines that the data obtained by the ROV, 
including non-destructive testing results, readability of the results, 
and positioning standards, will not integrate into the data obtained by 
the divers, then a third party examiner must be present during the 
divers portion of the examination.

    28. Add Sec. 115.655 to read as follows:


Sec. 115.655  Hull examination reports.

    (a) If you exclusively use divers for the underwater survey portion 
of the AHE, you must provide the Officer in Charge, Marine Inspection 
(OCMI) with a written hull examination report. This report must include 
thickness gauging results, bearing clearances, a copy of the audio and 
video recordings and any other information that will help the OCMI 
evaluate your vessel for a drydock extension. The third party examiner 
must sign the report and confirm the validity of its contents.
    (b) If you use an underwater remotely operated vehicle (ROV) as the 
predominate means to examine the vessel's underwater hull plating, you 
must provide the OCMI with a report in a format that is acceptable to 
the OCMI, per Sec. 115.650(b) of this part.
    (c) The OCMI will evaluate the hull examination report and grant a 
credit

[[Page 21082]]

hull exam if satisfied with the condition of the vessel. If approved 
and you exclusively use divers to examine the hull plating, you may 
receive a credit hull exam to 36 months. (Underwater examinations are 
required twice every 5 years). If approved and you use an underwater 
ROV as the predominant means to examine the underwater hull plating, 
you may receive a credit hull exam up to 60 months (5 years).

    29. Add Sec. 115.660 to read as follows:


Sec. 115.660  Continued participation in the Alternative Hull 
Examination (AHE) Program.

    (a) To continue to participate in the AHE Program, you must conduct 
an annual hull condition assessment. At a minimum, the hull condition 
assessment must include an internal examination and random hull 
gaugings taken internally. If the annual hull condition assessment 
reveals significant damage or corrosion, where temporary repairs have 
been made, or where other critical areas of concern have been 
identified, the Officer in Charge, Marine Inspection (OCMI) may require 
an expanded examination to include an underwater hull examination using 
divers. If an underwater examination is required, the examination must 
focus on areas at higher risk of damage or corrosion and must include a 
representative sampling of hull gaugings.
    (b) If an underwater survey is required for the annual hull 
condition assessment, the OCMI may require the presence of a third 
party examiner and a written hull examination report must be submitted 
to the OCMI. This report must include thickness gauging results, a copy 
of the audio and video recordings and any other information that will 
help the OCMI evaluate your vessel for continued participation in the 
AHE program. The third party examiner must sign the report and confirm 
the validity of its contents.
    (c) You must submit your preventive maintenance reports or 
checklists on an annual basis to the OCMI. These reports or checklists 
must conform to the plans you submitted in your application under 
Sec. 115.630 of this part, which the OCMI approved.
    (d) Prior to each scheduled annual hull condition assessment--
    (1) The owner may submit to the OCMI a request for a waiver of this 
requirement no fewer than 30 days before the scheduled assessment; and
    (2) The OCMI may reduce the scope or extend the interval of the 
assessment if the operational, casualty, and deficiency history of the 
vessel, along with a recommendation of the vessel's master, indicates 
that it is warranted.


Sec. 115.665  [Amended]

    30. In newly redesignated Sec. 115.665, in paragraph (a), remove 
``Sec. 115.600'' and add, in its place, ``Sec. 115.605''; and in 
paragraph (c), remove the words ``a drydock examination or internal 
structural examination'' and add, in their place, the words ``a drydock 
examination, internal structural examination, an underwater survey,''.


Sec. 115.675  [Amended]

    31. In newly redesignated Sec. 115.675, remove ``Sec. 115.600'' and 
add, in its place, ``Sec. 115.605''.

PART 125--GENERAL

    32. The authority citation for Part 125 continues to read as 
follows:

    Authority: 46 U.S.C. 2103, 3306, 3307; 49 U.S.C. App. 1804; 49 
CFR 1.46.

    33. Add the following definition to Sec. 125.160 in alphabetical 
order:


Sec. 125.160  Definitions relating to hull examinations.

* * * * *
    Underwater survey means the examination of the vessel's underwater 
hull including all through-hull fittings and appurtenances, while the 
vessel is afloat.

PART 126--INSPECTION AND CERTIFICATION

    34. The authority citation for Part 126 continues to read as 
follows:

    Authority: 46 U.S.C. 3205, 3306, 3307; 33 U.S.C. 1321(j); E.O. 
11735, 38 FR 21243, 3 CFR 1971-1975 Comp., p. 793; 49 CFR 1.46.


    35. In Sec. 126.140, add paragraphs (f) and (g) to read as follows:


Sec. 126.140  Drydocking.

* * * * *
    (f) Vessels less than 15 years of age (except wooden hull vessels) 
that are in salt water service with a twice in 5 year drydock interval 
may be considered for an underwater survey instead of alternate drydock 
examinations, provided the vessel is fitted with an effective hull 
protection system. Vessel owners or operators must apply to the Officer 
in Charge, Marine Inspection (OCMI), for approval of underwater surveys 
instead of alternate drydock examinations for each vessel. The 
application must include the following information:
    (1) The procedure to be followed in carrying out the underwater 
survey;
    (2) The location where the underwater survey will be accomplished;
    (3) The method to be used to accurately determine the diver 
location relative to the hull;
    (4) The means that will be provided for examining through-hull 
fittings;
    (5) The means that will be provided for taking shaft bearing 
clearances;
    (6) The condition of the vessel, including the anticipated draft of 
the vessel at the time of the survey;
    (7) A description of the hull protection system; and
    (8) The name and qualifications of any third party examiner.
    (g) Vessels otherwise qualifying under paragraph (f) of this 
section, that are 15 years of age or older, may be considered for 
continued participation in or entry into the underwater survey program 
on a case-by-case basis if--
    (1) Before the vessel's next scheduled drydocking, the owner or 
operator submits a request for participation or continued participation 
to the cognizant District Commander;
    (2) During the vessel's next drydocking, after the request is 
submitted, no appreciable hull deterioration is indicated as a result 
of a complete set of hull gaugings; and
    (3) The results of the hull gauging and the results of the Coast 
Guard drydock examination together with the recommendation of the OCMI, 
are submitted to Commandant (G-MOC) for final approval.

PART 167--PUBLIC NAUTICAL SCHOOL SHIPS

    36. The authority citation for Part 167 continues to read as 
follows:

    Authority: 46 U.S.C. 3306, 3307, 6101, 8105; E.O. 12234, 45 FR 
58801, 3 CFR, 1980 Comp., p. 277; 49 CFR 1.46.


    37. Add Sec. 167.05-40 to read as follows:


Sec. 167.05-40  Underwater survey.

    Underwater survey means the examination of the vessel's underwater 
hull including all through-hull fittings and appurtenances, while the 
vessel is afloat.

    38. In Sec. 167.15-30, revise the section heading and paragraphs 
(a)(1) and (2) to read as follows:


Sec. 167.15-30  Drydock examination, internal structural examination, 
and underwater survey intervals.

    (a) * * *
    (1) If your vessel operates in saltwater, it must undergo two 
drydock examinations and two internal structural examinations within 
any 5-year period unless it has been approved to undergo an underwater 
survey (UWILD) under Sec. 167.15-33 of this part.

[[Page 21083]]

No more than three years may elapse between any two examinations.
    (2) If your vessel operated in fresh water at least 50 percent of 
the time since your last drydocking, it must undergo a dry dock and 
internal structural examination at intervals not to exceed 5 years 
unless it has been approved to undergo an underwater survey (UWILD) 
under Sec. 167.15-33 of this part.
* * * * *

    39. Add Sec. 167.15-33 to read as follows:


Sec. 167.15-33  Underwater Survey in Lieu of Drydocking (UWILD).

    (a) The Officer in Charge, Marine Inspection (OCMI), may approve an 
underwater survey instead of a drydock examination at alternating 
intervals if your vessel is--
    (1) Less than 15 years of age;
    (2) A steel or aluminum hulled vessel;
    (3) Fitted with an effective hull protection system; and
    (4) Described in 46 CFR 167.15-30(a)(1) or (2).
    (b) For vessels less than 15 years of age, you must submit an 
application for an underwater survey to the OCMI at least 90 days 
before your vessel's next required drydock examination. The application 
must include--
    (1) The procedure for carrying out the underwater survey;
    (2) The time and place of the underwater survey;
    (3) The method used to accurately determine the diver's or remotely 
operated vehicle's (ROV) location relative to the hull;
    (4) The means for examining all through-hull fittings and 
appurtenances;
    (5) The means for taking shaft bearing clearances;
    (6) The condition of the vessel, including the anticipated draft of 
the vessel at the time of survey;
    (7) A description of the hull protection system; and
    (8) The name and qualifications of any third party examiner.
    (c) If your vessel is 15 years old or older, the District 
Commander, may approve an underwater survey instead of a drydock 
examination at alternating intervals. You must submit an application 
for an underwater survey to the OCMI at least 90 days before your 
vessel's next required drydock examination. You may be allowed this 
option if--
    (1) The vessel is qualified under paragraphs (a)(2) through (4) of 
this section;
    (2) Your application includes the information in paragraphs (b)(1) 
through (b)(8) of this section; and
    (3) During the vessel's drydock examination, preceding the 
underwater survey, a complete set of hull gaugings was taken and they 
indicated that the vessel was free from appreciable hull deterioration.
    (d) After the drydock examination required in paragraph (c)(3) of 
this section, the Officer in Charge, Marine Inspection submits a 
recommendation for future underwater surveys, the results of the hull 
gauging, and the results of the Coast Guards' drydock examination 
results to the cognizant District Commander for review.


Sec. 167.15-35  [Amended]

    40. In Sec. 167.15-35, in paragraph (b), remove the words ``a 
drydock examination or internal structural examination'' and add, in 
their place, the words ``a drydock examination, internal structural 
examination, underwater survey,''; and, in paragraph (c), remove the 
words ``a drydock examination or internal structural examination'' and 
add, in their place, the words ``a drydock examination, internal 
structural examination, underwater survey,''.

PART 169--SAILING SCHOOL VESSELS

    41. The authority citation for Part 169 continues to read as 
follows:

    Authority: 33 U.S.C. 1321(j); 46 U.S.C. 3306, 3307, 6101; E.O. 
11735, 38 FR 21243, 3 CFR, 1971-1975 Comp., p. 793; 49 CFR 1.45, 
1.46; Sec. 169.117 also issued under the authority of 44 U.S.C. 
3507.

    42. In Sec. 169.229, revise the section heading and paragraphs 
(a)(1) and (2) to read as follows:


Sec. 169.229  Drydock examination, internal structural examination, and 
underwater survey intervals.

    (a) * * *
    (1) If your vessel operates in saltwater, it must undergo two 
drydock examinations and two internal structural examinations within 
any 5-year period unless it has been approved to undergo an underwater 
survey (UWILD) under Sec. 169.230 of this part. No more than 3 years 
may elapse between any two examinations.
    (2) If your vessel operated in fresh water at least 50 percent of 
the time since your last drydocking, it must undergo a dry dock and 
internal structural examination at intervals not to exceed 5 years 
unless it has been approved to undergo an underwater survey (UWILD) 
under Sec. 169.230 of this part.
* * * * *

    43. Add Sec. 169.230 to read as follows:


Sec. 169.230  Underwater Survey in Lieu of Drydocking (UWILD).

    (a) The Officer in Charge, Marine Inspection (OCMI), on a case-by-
case basis, may approve an underwater survey instead of a drydock 
examination at alternating intervals if your vessel is--
    (1) Less than 15 years of age;
    (2) A steel or aluminum hulled vessel;
    (3) Fitted with an effective hull protection system; and
    (4) Listed in Sec. 169.229(a)(1) or (2) of this part.
    (b) For vessels less than 15 years of age, you must submit an 
application for an underwater survey to the OCMI at least 90 days 
before your vessel's next required drydock examination. The application 
must include--
    (1) The procedure for carrying out the underwater survey;
    (2) The time and place of the underwater survey;
    (3) The method used to accurately determine the diver's or remotely 
operated vehicle's (ROV) location relative to the hull;
    (4) The means for examining all through-hull fittings and 
appurtenances;
    (5) The condition of the vessel, including the anticipated draft of 
the vessel at the time of survey;
    (6) A description of the hull protection system; and
    (7) The name and qualifications of any third party examiner.
    (c) If your vessel is 15 years old or older, the cognizant District 
Commander, on a case-by-case basis, may approve an underwater survey 
instead of a drydock examination at alternating intervals. You must 
submit an application for an underwater survey to the OCMI at least 90 
days before your vessel's next required drydock examination. You may be 
allowed this option if--
    (1) The vessel is qualified under paragraphs (a)(2) through (4) of 
this section;
    (2) Your application includes the information in paragraphs (b)(1) 
through (b)(7) of this section; and
    (3) During the vessel's drydock examination, preceding the 
underwater survey, a complete set of hull gaugings was taken and they 
indicated that the vessel was free from appreciable hull deterioration.
    (d) After the drydock examination required by paragraph (c)(3) of 
this section, the OCMI submits a recommendation for future underwater 
surveys, the results of the hull gauging, and the results of the Coast 
Guards' drydock examination results to the cognizant District 
Commander, for review.

[[Page 21084]]

    44. In Sec. 169.231, redesignate paragraph (b) as (c), and add new 
paragraph (b) to read as follows:


Sec. 169.231  Definitions relating to hull examinations.

* * * * *
    (b) Underwater survey means the examination of the vessel's 
underwater hull including all through-hull fittings and appurtenances, 
while the vessel is afloat.

PART 175--GENERAL PROVISIONS

    45. The authority citation for Part 175 continues to read as 
follows:

    Authority: 46 U.S.C. 2103, 3205, 3306, 3307, 3703; 49 U.S.C. 
App. 1804; 49 CFR 1.45, 1.46; Sec. 175.900 also issued under 
authority of 44 U.S.C. 3507.

    46. Add the following definitions to Sec. 175.400 in alphabetical 
order:


Sec. 175.400  Definitions of terms used in this subchapter.

* * * * *
    Alternative Hull Examination (AHE) Program means a program in which 
an eligible vessel may receive an initial and subsequent credit hull 
examination through a combination of underwater surveys, internal 
examinations and annual hull condition assessment.
    Adequate hull protection system means a method of protecting the 
vessel's hull from corrosion. It includes, as a minimum, either hull 
coatings and a cathodic protection (CP) system consisting of zinc 
anodes, or an impressed current CP system.
* * * * *
    Drydock examination means hauling out a vessel or placing a vessel 
in a drydock or slipway for an examination of all accessible parts of 
the vessel's underwater body and all through-hull fittings and 
appurtenances.
* * * * *
    Internal structural examination means an examination of the vessel 
while afloat or in drydock and consists of a complete examination of 
the vessel's main strength members, including the major internal 
framing, the hull plating, voids, and ballast tanks, but not including 
cargo, sewage, or fuel oil tanks.
* * * * *
    Remotely operated vehicle (ROV) team, at a minimum, consist of an 
ROV operator, a non-destructive testing inspector, an ROV tender or 
mechanic, and a team supervisor who is considered by the Officer in 
Charge, Marine Inspection (OCMI), have the appropriate training and 
experience to perform the survey and to safely operate the ROV in an 
effective manor. The team must also have a hull-positioning technician 
present. This position may be assigned to a team member already 
responsible for another team duty.
* * * * *
    Shallow water is an ascertained water depth at which the uppermost 
deck(s) of a sunken vessel remain above the water's surface. The 
determination of the water's depth is made by the Officer in Charge, 
Marine Inspection (OCMI) who considers the vessel's stability 
(passenger heeling moment), the contour of the hull, the composition of 
the river bottom, and any other factors that would tend to prevent a 
vessel from resting an even keel.
* * * * *
    Third party examiner means an entity:
    (1) With a thorough knowledge of diving operations, including 
diving limitations as related to diver safety and diver supervision;
    (2) Having a familiarity with, but not limited to, the following--
    (i) The camera used during the AHE; and
    (ii) The NDT equipment used during the AHE, including the effect of 
water clarity, and marine growth in relation to the quality of the 
readings obtained;
    (3) Having a familiarity with the communications equipment used 
during the AHE;
    (4) Possessing the knowledge of vessel structures, design features, 
nomenclature, and the applicable AHE regulations; and
    (5) Able to present the Officer in Charge, Marine Inspection, with 
evidence of formal training, demonstrated ability, past acceptance, or 
a combination of these.
* * * * *
    Underwater Survey in Lieu of Drydocking (UWILD) means a program in 
which an eligible vessel may alternate between an underwater survey and 
the required drydock examinations.
* * * * *

PART 176--INSPECTION AND CERTIFICATION

    47. The authority citation for Part 176 continues to read as 
follows:

    Authority: 33 U.S.C. 1321(j); 46 U.S.C. 2103, 3205, 3306, 3307; 
49 U.S.C. App. 1804; E.O. 11735, 38 FR 21243, 3 CFR, 1971-1975 
Comp., p. 743; E.O. 12234, 45 FR 58801, 3 CFR, 1980 Comp., p. 277; 
49 CFR 1.46.


    48. In Sec. 176.600 revise the section heading, paragraph (a), the 
first sentence of paragraph (b), the introductory text of paragraph 
(c), and add paragraph (e) to read as follows:


Sec. 176.600  Drydock examination, internal structural examination, and 
underwater survey intervals.

    (a) The owner or managing operator shall make a vessel available 
for drydock examinations, internal structural examinations, and 
underwater surveys (UWILD) required by this section.
    (b) If your vessel is operated on international voyages subject to 
SOLAS requirements, it must undergo a drydock examination once every 12 
months unless it has been approved to undergo an underwater survey 
(UWILD) per Sec. 176.615 of this part. * * *
    (c) If your vessel is not operated on international voyages and 
does not meet the conditions in paragraph (d) of this section, it must 
undergo a drydock and internal structural examination as follows unless 
it has been approved to undergo an underwater survey (UWILD) per 
Sec. 176.615 of this part:
* * * * *
    (e) For a vessel that is eligible per Sec. 115.625, and if the 
owner opts for an alternate hull examination with the underwater survey 
portion conducted exclusively by divers, the vessel must undergo two 
alternate hull exams and two internal structural exams within any five-
year period. If a vessel completes a satisfactory alternate hull exam, 
with the underwater survey portion conducted predominantly by an 
approved underwater remotely operated vehicle (ROV), the vessel must 
undergo one alternate hull and one internal structural exam, within any 
five-year period. The vessel may undergo a drydock exam to satisfy any 
of the required alternate hull exams.


Secs. 176.612, 176.630, and 176.670  [Redesignated as Secs. 176.665, 
176.670, and 176.675]

    49. Redesignate Secs. 176.612, 176.630, and 176.670 as 
Secs. 176.665, 176.670, and 176.675, respectively.

    50. Add Sec. 176.615 to read as follows:


Sec. 176.615  Underwater Survey in Lieu of Drydocking (UWILD).

    (a) The Officer in Charge, Marine Inspection (OCMI), may approve an 
underwater survey instead of a drydock examination at alternating 
intervals if your vessel is--
    (1) Less than 15 years of age;
    (2) A steel or aluminum hulled vessel;
    (3) Fitted with an effective hull protection system; and
    (4) Described in Sec. 176.600(b) or (c) of this part.
    (b) For vessels less than 15 years of age, you must submit an 
application for an underwater survey to the OCMI at least 90 days 
before your vessel's next

[[Page 21085]]

required drydock examination. The application must include--
    (1) The procedure for carrying out the underwater survey;
    (2) The time and place of the underwater survey;
    (3) The method used to accurately determine the diver's or remotely 
operated vehicle's (ROV) location relative to the hull;
    (4) The means for examining all through-hull fittings and 
appurtenances;
    (5) The condition of the vessel, including the anticipated draft of 
the vessel at the time of survey;
    (6) A description of the hull protection system; and
    (7) The name and qualifications of any third party examiner.
    (c) If your vessel is 15 years old or older, the cognizant District 
Commander, may approve an underwater survey instead of a drydock 
examination at alternating intervals (UWILD). You must submit an 
application for an underwater survey to the OCMI at least 90 days 
before your vessel's next required drydock examination. You may be 
allowed this option if--
    (1) The vessel is qualified under paragraphs (a)(2) through (4) of 
this section;
    (2) Your application includes the information in paragraphs (b)(1) 
through (b)(7) of this section; and
    (3) During the vessel's drydock examination, preceding the 
underwater survey, a complete set of hull gaugings was taken and they 
indicated that the vessel was free from appreciable hull deterioration.
    (d) After the drydock examination required by paragraph (c)(3) of 
this section, the OCMI submits a recommendation for future underwater 
surveys, the results of the hull gauging, and the results of the Coast 
Guards' drydock examination results to the cognizant District Commander 
for review.

    51. Add Sec. 176.620 to read as follows:


Sec. 176.620  Description of the Alternative Hull Examination (AHE) 
Program for certain passenger vessels.

    The Alternative Hull Examination (AHE) Program provides you with an 
alternative to drydock examination by allowing your vessel's hull to be 
examined while it remains afloat. If completed using only divers, this 
program has four steps: the application process, the preliminary 
examination, the pre-survey meeting, and the hull examination. If a 
remotely operated vehicle (ROV) is used during the program the 
preliminary exam step may be omitted. Once you complete these steps, 
the Officer in Charge, Marine Inspection (OCMI) will evaluate the 
results and accept the examination as a credit hull exam if the vessel 
is in satisfactory condition. If divers are exclusively used for the 
underwater survey portion of the examination process, you may receive 
credit for a period of time such that subsequent AHEs would be 
conducted at intervals of twice in every five years, with no more than 
three years between any two AHEs. If an underwater ROV is used as the 
predominant method to examine the vessel's underwater hull plating, you 
may receive credit up to five years. At the end of this period, you may 
apply for further participation under the AHE Program.

    Note: The expected hull coverage when using an ROV must be at 
least 80 percent.


    52. Add Sec. 176.625 to read as follows:


Sec. 176.625  Eligibility requirements for the Alternative Hull 
Examination (AHE) Program for certain passenger vessels.

    (a) Your vessel may be eligible for the AHE Program if--
    (1) It is constructed of steel or aluminum;
    (2) It has an effective hull protection system;
    (3) It has operated exclusively in fresh water since its last 
drydock examination;
    (4) It operates in rivers or protected lakes; and
    (5) It operates exclusively in shallow water or within 0.5 nautical 
miles from shore.
    (b) In addition to the requirements in paragraph (a), the Officer 
in Charge, Marine Inspection (OCMI) will evaluate the following 
information when determining your vessel's eligibility for the AHE 
Program:
    (1) The overall condition of the vessel, based on its inspection 
history.
    (2) The vessel's history of hull casualties and hull-related 
deficiencies.
    (3) The AHE Program application, as described in Sec. 176.630 of 
this part.
    (c) When reviewing a vessel's eligibility for the AHE program, the 
OCMI may modify the standards given by paragraph (a)(5) of this section 
where it is considered safe and reasonable to do so. In making this 
determination, the OCMI will consider the vessel's overall condition, 
its history of safe operation, and any other factors that serve to 
mitigate overall safety risks.

    53. Add Sec. 176.630 to read as follows:


Sec. 176.630  The Alternative Hull Examination (AHE) Program 
application.

    If your vessel meets the eligibility criteria in Sec. 176.625 of 
this part, you may apply to the AHE Program. You must submit an 
application at least 90 days before the requested hull examination date 
to the Officer in Charge, Marine Inspection (OCMI) who will oversee the 
survey. The application must include--
    (a) The proposed time and place for conducting the hull 
examination;
    (b) The name of the participating diving contractor and underwater 
remotely operated vehicle (ROV) company accepted by the OCMI under 
Sec. 176.650 of this part;
    (c) The name and qualifications of the third party examiner. This 
person must be familiar with the inspection procedures and his or her 
responsibilities under this program. The OCMI has the discretionary 
authority to accept or deny use of a particular third party examiner;
    (d) A signed statement from your vessel's master, chief engineer, 
or the person in charge stating the vessel meets the eligibility 
criteria of Sec. 176.625 of this part and a description of the vessel's 
overall condition, level of maintenance, known or suspected damage, 
underwater body cleanliness, and the anticipated draft of the vessel at 
the time of the examination;
    (e) Plans or drawings that illustrate the external details of the 
hull below the sheer strake;
    (f) A detailed plan for conducting the hull examination in 
accordance with Secs. 176.645 and 176.650 of this part, which must 
address all safety concerns related to the removal of sea valves during 
the inspection; and
    (g) A preventative maintenance plan for your vessel's hull, its 
related systems and equipment.

    54. Add Sec. 176.635 to read as follows:


Sec. 176.635  Preliminary examination requirements.

    (a) If you exclusively use divers to examine the underwater hull 
plating, you must arrange to have a preliminary examination conducted 
by a third party examiner, with the assistance of qualified divers. The 
purpose of the preliminary examination is to assess the overall 
condition of the vessel's hull and identify any specific concerns to be 
addressed during the underwater hull examination.
    (b) The preliminary examination is required only upon the vessel's 
entry or reentry into the AHE program.
    (c) If you use an underwater remotely operated vehicle (ROV) as the 
predominate means to examine your vessel's hull plating, a preliminary 
examination and the participation of a third party examiner will not be 
necessary.

[[Page 21086]]


    55. Add Sec. 176.640 to read as follows:


Sec. 176.640  Pre-Survey meeting.

    (a) In advance of each AHE, you must conduct a pre-survey meeting 
to discuss the details of the AHE procedure with the Officer in Charge, 
Marine Inspection (OCMI). If you exclusively use divers to examine the 
underwater hull plating, the third party examiner must attend the 
meeting and you must present the results of the preliminary 
examination. If you use an underwater remotely operated vehicle (ROV) 
as the predominate means to examine the vessel's hull plating, then the 
pre-survey meeting must be attended by a representative of the ROV 
operating company who is qualified to discuss the ROV's capabilities 
and limitations related to your vessel's hull design and configuration.
    (b) A vessel owner, operator, or designated agent must request this 
meeting in writing at least 30 days in advance of the examination date.

    56. Add Sec. 176.645 to read as follows:


Sec. 176.645  AHE Procedure.

    (a) To complete the underwater survey you must--
    (1) Perform a general examination of the underwater hull plating 
and a detailed examination of all hull welds, propellers, tailshafts, 
rudders, and other hull appurtenances;
    (2) Examine all sea chests;
    (3) Remove and inspect all sea valves in the presence of a marine 
inspector;
    (4) Remove all passengers from the vessel when the sea valves are 
being examined, if required by the Officer in Charge, Marine Inspection 
(OCMI);
    (5) Allow access to all internal areas of the hull for examination, 
except internal tanks that carry fuel (unless damage or deterioration 
is discovered or suspect), sewage, or potable water. Internal sewage 
and potable water tanks may be examined visually or by non-destructive 
testing to the satisfaction of the attending marine inspector; and
    (6) Meet the requirements in Sec. 176.650 of this part.
    (b) A marine inspector may examine any other areas deemed necessary 
by the OCMI.
    (c) If the AHE reveals significant deterioration or damage to the 
vessel's hull plating or structural members, the OCMI must be 
immediately notified. The OCMI may require the vessel be drydocked or 
otherwise taken out of service to further assess the extent of damage 
or to effect permanent repairs if the assessment or repairs cannot be 
completed to the satisfaction of the OCMI while the vessel is 
waterborne.

    57. Add Sec. 176.650 to read as follows:


Sec. 176.650  Alternative Hull Examination Program options: Divers or 
underwater ROV.

    To complete the underwater survey portion of the AHE, you may use 
divers or an underwater remotely operated vehicle (ROV).
    (a) If you use divers to conduct the underwater survey, you must--
    (1) Locate the vessel so the divers can work safely under the 
vessel's keel and around both sides. The water velocity must be safe 
for dive operations;
    (2) Provide permanent hull markings or a temporary underwater grid 
system to identify the diver's location with respect to the hull, 
within one foot of accuracy;
    (3) Take ultrasonic thickness gaugings at a minimum of 5 points on 
each plate, evenly spaced;
    (4) Take hull plating thickness gaugings along transverse belts at 
the bow, stern, and midships, as a minimum. Plating thickness gaugings 
must also be taken along a longitudinal belt at the wind and water 
strake. Individual gaugings along the transverse and longitudinal belts 
must be spaced no more than 3 feet apart;
    (5) Ensure the third party examiner observes the entire underwater 
examination process;
    (6) Record the entire underwater survey with audio and video 
recording equipment and ensure that communications between divers and 
the third party examiner are recorded; and
    (7) Use appropriate equipment, such as a clear box, if underwater 
visibility is poor, to provide the camera with a clear view of the 
hull.
    (b) You may use an underwater ROV to conduct the underwater survey. 
The underwater ROV operating team, survey process and equipment, 
quality assurance methods, and the content and format of the survey 
report must be accepted by the Officer in Charge, Marine Inspection 
(OCMI) prior to the survey. If you choose this option, you must--
    (1) Locate the vessel to ensure that the underwater ROV can operate 
effectively under the vessel's keel and around both sides; and
    (2) Employ divers to examine any sections of the hull and 
appurtenances that the underwater ROV cannot access or is otherwise 
unable to evaluate.
    (3) If the OCMI determines that the data obtained by the ROV, 
including non-destructive testing results, readability of the results, 
and positioning standards, will not integrate into the data obtained by 
the divers, then a third party examiner must be present during the 
divers portion of the examination.

    58. Add Sec. 176.655 to read as follows:


Sec. 176.655  Hull examination reports.

    (a) If you exclusively use divers for the underwater survey portion 
of the AHE, you must provide the Officer in Charge, Marine Inspection 
(OCMI) with a written hull examination report. This report must include 
thickness gauging results, a copy of the audio and video recordings and 
any other information that will help the OCMI evaluate your vessel for 
a drydock extension. The third party examiner must sign the report and 
confirm the validity of its contents.
    (b) If you use an underwater remotely operated vehicle (ROV) as the 
predominate means to examine the vessel's underwater hull plating, you 
must provide the OCMI with a report in a format that is acceptable to 
the OCMI, per Sec. 176.650(b) of this part.
    (c) The OCMI will evaluate the hull examination report and grant a 
credit hull exam if satisfied with the condition of the vessel. If 
approved and you exclusively use divers to examine the hull plating, 
you will receive a credit hull exam of up to 36 months. (Underwater 
examinations are required twice every 5 years.) If approved and you use 
an underwater ROV as the predominate means to examine the hull plating, 
you will receive a credit hull exam of up to 60 months (5 years).

    59. Add Sec. 176.660 to read as follows:


Sec. 176.660  Continued participation in the Alternative Hull 
Examination (AHE) Program.

    (a) To continue to participate in the AHE Program, you must conduct 
an annual hull condition assessment. At a minimum, the hull condition 
assessment must include an internal examination and random hull 
gaugings taken internally. If the annual hull condition assessment 
reveals significant damage or corrosion, where temporary repairs have 
been made, or where other critical areas of concern have been 
identified, the Officer in Charge, Marine Inspection (OCMI) may require 
an expanded examination to include an underwater hull examination using 
divers. If an underwater examination is required, the examination must 
focus on areas at higher risk of damage or corrosion and must include a 
representative sampling of hull gaugings.
    (b) If an underwater survey is required for the annual hull 
condition assessment, the OCMI may require the presence of a third 
party examiner and a written hull examination report must be submitted 
to the OCMI. This report must include thickness gauging results,

[[Page 21087]]

a copy of the audio and video recordings and any other information that 
will help the OCMI evaluate your vessel for continued participation in 
the AHE program. The third party examiner must sign the report and 
confirm the validity of its contents.
    (c) You must submit your preventive maintenance reports or 
checklists on an annual basis to the OCMI. These reports or checklists 
must conform to the plans you submitted in your application under 
Sec. 176.630 of this part, which the OCMI approved.
    (d) Prior to each scheduled annual hull condition assessment--
    (1) The owner may submit to the OCMI a request for a waiver of this 
requirement no fewer than 30 days before the scheduled assessment; and
    (2) The OCMI may reduce the scope or extend the interval of the 
assessment if the operational, casualty, and deficiency history of the 
vessel, along with a recommendation of the vessel's master, indicates 
that it is warranted.


Sec. 176.665  [Amended]

    60. In newly redesignated Sec. 176.665, in paragraph (a), remove 
``Sec. 176.600'' and add, in its place, ``Sec. 176.605''; and, in 
paragraph (c), remove the words ``a drydock examination or internal 
structural examination'' and add, in their place, the words ``a drydock 
examination, internal structural examination, or an underwater 
survey,''.


Sec. 176.675  [Amended]

    61. In newly redesignated Sec. 176.675, remove ``Sec. 176.600'' and 
add, in its place, ``Sec. 176.605''.

    Dated: April 12, 2002.
Paul J. Pluta,
Rear Admiral, U.S. Coast Guard, Assistant Commandant for Marine Safety, 
Security and Environmental Protection.
[FR Doc. 02-9832 Filed 4-26-02; 8:45 am]
BILLING CODE 4910-15-U