[Federal Register Volume 75, Number 230 (Wednesday, December 1, 2010)]
[Proposed Rules]
[Pages 74674-74677]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-30151]


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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

46 CFR Part 2

[Docket No. USCG-2010-0245]
RIN 1625-ZA28


Updates to Vessel Inspection Fees

AGENCY: Coast Guard, DHS.

ACTION: Notice of inquiry; request for information.

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SUMMARY: The Coast Guard seeks public comment on updating vessel 
inspection fees. The Coast Guard, by regulation, establishes inspection 
fees for U.S. commercial vessels required to maintain a Certificate of 
Inspection and foreign tankships and mobile offshore drilling units 
required to maintain a Certificate of Compliance. This includes 
overseas inspection and examination fees. The Coast Guard is 
considering options for updating and/or restructuring these inspection 
fees to ensure their adequacy and equity, and for adapting to changes 
that have occurred since they were last modified in 1998. The Coast 
Guard seeks information on factors to consider when updating these 
fees.

DATES: Comments and related material must either be submitted to our 
online docket via http://www.regulations.gov on or before March 1, 2011 
or reach the Docket Management Facility by that date.

ADDRESSES: You may submit comments identified by docket number USCG-
2010-0245 using any one of the following methods:
    (1) Federal eRulemaking Portal: http://www.regulations.gov.
    (2) Fax: 202-493-2251.
    (3) Mail: Docket Management Facility (M-30), U.S. Department of 
Transportation, West Building Ground Floor, Room W12-140, 1200 New 
Jersey Avenue, SE., Washington DC 20590-0001.
    (4) Hand delivery: Same as mail address above, between 9 a.m. and 5 
p.m., Monday through Friday, except Federal holidays. The telephone 
number is 202-366-9329.
    To avoid duplication, please use only one of these four methods. 
See the ``Request for Information'' portion of the SUPPLEMENTARY 
INFORMATION section below for instructions on submitting comments.

FOR FURTHER INFORMATION CONTACT: If you have questions on this notice 
of inquiry, call or e-mail Lieutenant Commander Alan Moore, U.S. Coast 
Guard, at telephone: 202-372-1231 or e-mail: [email protected]. If 
you have questions on viewing or submitting material to the docket, 
call Ms. Renee V. Wright, Program Manager, Docket Operations, at 
telephone: 202-366-9826.

SUPPLEMENTARY INFORMATION: 

Request for Information

    We encourage you to participate in this rulemaking by submitting 
comments and related materials. All comments received will be posted 
without change to http://www.regulations.gov and will include any 
personal information you have provided.
    Submitting comments and information: If you submit a comment, 
please include the docket number for this notice of inquiry (USCG-2010-
0245), and provide a reason for each suggestion or recommendation. You 
may submit your comments and material online or by fax, mail, or hand 
delivery, but please use only one of these means. We recommend that you 
include your name and a mailing address, an e-mail address, or a phone 
number in the body of your document so that we can contact you if we 
have questions regarding your submission.
    To submit your comment online, go to http://www.regulations.gov, 
enter ``USCG-2010-0245'' in the ``Keyword'' box, and click ``Search.'' 
Then, click on the ``Submit a Comment'' link. If you submit your 
comments 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 comments by mail and would like to know that 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.
    Viewing comments and documents: To view comments, and other 
documents available in the docket, go to http://www.regulations.gov, 
enter ``USCG-2010-0245'' in the ``Keyword'' box, and click ``Search.'' 
If you do not have access to the Internet, you may view the docket by 
visiting the Docket Management Facility in Room W12-140

[[Page 74675]]

on the ground floor of the Department of Transportation West Building, 
1200 New Jersey Avenue, SE., Washington DC 20590, between 9 a.m. and 5 
p.m., Monday through Friday, except Federal holidays.
    Privacy Act: Anyone can search the electronic form of comments 
received into any of our dockets by the name of the individual 
submitting the comment (or signing the comment, if submitted on behalf 
of an association, business, labor union, etc.). You may review a 
Privacy Act notice regarding our public dockets in the January 17, 
2008, issue of the Federal Register (73 FR 3316).

Background and Purpose

    In the Omnibus Budget Reconciliation Act of 1990 (Pub. L. 101-508, 
November 5, 1990) Congress amended 46 U.S.C. 2110 by removing long-
standing prohibitions against imposing certain inspection fees. 
Congress also directed the Coast Guard to establish inspection fees to 
recover costs associated with providing Coast Guard vessel inspection 
services.
    On December 18, 1991, the Coast Guard published a notice of 
proposed rulemaking (NPRM) (56 FR 65786) on Direct User Fees for 
Inspection or Examination of U.S. and Foreign Commercial Vessels. A 
correction to the proposed rule (56 FR 66766) was issued on December 
24, 1991, adding Appendix A, a summary of the preliminary Regulatory 
Evaluation. Following publication of the NPRM, the Coast Guard received 
1,092 written comments and 176 statements from participants at public 
meetings. All segments of the maritime industry generally objected to 
the proposed imposition of any inspection fees for the inspection of 
their vessels.
    On March 13, 1995, the Coast Guard published a final rule on Direct 
User Fees for Inspection or Examination of U.S. and Foreign Commercial 
Vessels (60 FR 13550). Through this final rule, Coast Guard added a new 
subpart 2.10, Fees, to Title 46 Code of Federal Regulations (CFR), part 
2.
    On April 21, 1997, as required by the Coast Guard Authorization Act 
of 1996, the Coast Guard published an interim rule titled Vessel 
Inspection User Fees (62 FR 19229) that reduced annual vessel 
inspection fees for small passenger vessels and excluded publicly owned 
ferries from payment of vessel inspection fees. The interim rule also 
revised the existing discretionary exemption criteria to allow 
additional vessels to qualify for exemptions from the annual fee. The 
Coast Guard published the final rule (63 FR 59472) on November 4, 1998, 
adding several new definitions and amending the exemptions section to 
exclude inspection fees for qualifying vessels owned or operated by 
certain non-profit organizations.
    Currently, the Coast Guard collects inspection fees to recover the 
costs of providing vessel inspection services in support of commercial 
vessels required to have Certificates of Inspection (COIs) (for U.S. 
vessels) or Certificates of Compliance (COCs) (for foreign vessels) in 
order to meet statutory and regulatory requirements. Additional fees 
are required for inspections and examinations conducted at overseas 
locations.
    The inspection fee amounts have not been updated since 1998. Office 
of Management and Budget Circular Number A-25 directs a biennial review 
of inspection fees. The Coast Guard completed its last review on May 
30, 2008. That review, which is available in the docket, accounted for 
various inflations and revealed that the cost associated with marine 
inspection services exceeds the inspection fees collected, which have 
not been adjusted since 1998. Based on this review, the Coast Guard is 
considering adjusting its vessel inspection fees.
    Because there have been many changes since the last update to 46 
CFR part 2, subpart 2.10, Fees, both in the maritime industry and in 
the Coast Guard's commercial vessel inspection program, the Coast Guard 
is seeking public input on any such update. This notice of inquiry and 
request for information seeks public comment and information to aid the 
Coast Guard in updating and/or restructuring vessel inspection fees.
    With some exceptions, the current vessel inspection fees are 
assigned based on vessel service and length. The Coast Guard designed 
this fee structure based on these factors to offset the Coast Guard's 
cost of providing vessel inspection services. The vessel inspection and 
fee categories were derived from inspection activity data during the 
years 1987, 1988, 1989, and 1990, and included the contemporary program 
costs associated with conducting vessel inspection and examination 
activities by Coast Guard personnel. The current annual vessel 
inspection fee structure is shown in the table below, as set forth in 
46 CFR 2.10-101. Section 2.10-101 covers U.S. vessel inspection fees 
plus other fees charged for foreign tankships and foreign mobile 
offshore drilling units trading in U.S. ports. Subpart 2.10 also sets 
forth fees for inspections conducted at overseas locations.
    Certain inspection fees have been capped by statute; the Coast 
Guard Authorization Act of 1996 limited the amount of fees that may be 
charged to small passenger vessels as defined in Title 46 CFR 2.10-25, 
and the Omnibus Budget and Reconciliation Act of 1990 limited the 
annual vessel inspection fee for non-self propelled tank barges. In any 
update to 46 CFR part 2, subpart 2.10, the Coast Guard does not intend 
to make any changes to these capped fees or to any currently excluded 
or exempted category vessels despite being required to maintain a COI. 
For convenience, the table in 46 CFR 2.101 listing inspection fees has 
been reproduced below.

   Table 2.10-101--Annual Vessel Inspection Fees for U.S. And Foreign
              Vessels Requiring a Certificate of Inspection
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Any inspected vessel not listed in this table..............       $1,030
Freight barges:
    Length not greater than 150 feet.......................          495
    More than 150 feet but not more than 300 feet..........          610
    More than 300 feet.....................................          955
Freight ships:
    Length not greater than 100 feet.......................        1,425
    More than 100 feet but not more than 300 feet..........        1,870
    More than 300 feet.....................................        5,410
Industrial Vessels:
    Length not greater than 200 feet.......................        1,435
    More than 200 feet.....................................        2,550
Mobile Offshore Drilling Units (MODUs):
    Drill ship MODUs.......................................        6,710

[[Page 74676]]

 
    Submersible MODUs......................................        4,695
    Self-elevating MODUs...................................        4,695
    Semi-submersible MODUs.................................        8,050
Nautical School Vessels:
  Length not greater than 100 feet.........................          835
  More than 100 feet but not more than 200 feet............        1,450
  More than 200 feet.......................................        7,205
Oceanographic Research Vessels:
    Length not greater than 170 feet.......................          840
    More than 170 feet but not more than 240 feet..........        1,980
    More than 240 feet.....................................        3,610
Offshore Supply Vessels:
    Length not greater than 140 feet.......................        1,135
    More than 140 feet.....................................        1,470
Offshore Supply Vessels: Alternate Reinspection Program
    Length not greater than 140 feet.......................          940
    More than 140 feet.....................................        1,260
Passenger Barges:
Less than 100 gross tons and:
    Less than 65 feet in length............................          300
    65 feet or more in length..............................          600
100 gross tons or more and:
    Certified for fewer than 150 passengers................        2,215
    Certified for 150 or more passengers...................        2,525
Passenger Ships:
Length not greater than 250 feet:
    Certified for fewer than 150 passengers................        3,600
    Certified for 150 or more passengers...................        4,050
    More than 250 feet but not more than 350 feet..........        5,330
    More than 350 feet but not more than 450 feet..........        6,835
    More than 450 feet.....................................       14,650
Sailing School Vessels:
    Length not greater than 30 feet........................          530
    More than 30 feet but not more than 65 feet............          560
    More than 65 feet......................................          980
    Sea-going Towing Vessels...............................        2,915
Small Passenger Vessels:
    Less than 65 feet in length............................          300
    65 feet or more in length..............................          600
    Tank Barges............................................          500
Tankships:
    Length not greater than 100 feet.......................        1,295
    More than 100 feet but not more than 300 feet..........        2,310
    More than 300 feet.....................................        5,805
    Liquefied Gas Tankships................................       12,120
------------------------------------------------------------------------

    Fees generated by 46 CFR part 2, subpart 2.10 are deposited in the 
general fund of the U.S. Treasury as offsetting receipts of the 
Department of Homeland Security and are assigned generally to Coast 
Guard activities. The Coast Guard does not directly benefit from the 
collection of inspection fees. The Coast Guard's intent, during any 
update to subpart 2.10, is to consider viable options for updating and/
or restructuring the inspection fees listed above to ensure their 
adequacy and equity, plus to adapt to changes that have occurred since 
inspection fee amounts were last modified in 1998. It is expected that 
any update to subpart 2.10 will ensure a more comprehensive, equitable, 
and current inspection fee structure.

Request for Information

    Through this notice of inquiry, the Coast Guard asks for comments 
and information to consider in updating vessel inspection fees. Please 
consider the following questions when preparing comments:
     Should the Coast Guard restructure the current vessel 
inspection fees?
     What factors, such as length, tonnage, type of vessel, 
inspection time, type of service, number of crew, number of passengers, 
or length of operating season, should be considered in restructuring 
the vessel inspection fees?
     How often or at what frequency should inspection fees be 
adjusted?
     Should the fee be indexed based on economic measures?
     Should the fee be a direct bill based on the inspection 
type and frequency (to include and not be limited to separate fees for 
annual inspections, periodic inspections, re-examinations, hull 
examinations, and deficiency follow-ups) based on program costs and 
Coast Guard personnel hours incurred?
     Should the Coast Guard impose fees on a vessel based upon 
the number of visits to complete the inspection or examination?
     Should vessel owners or operators apply annually for 
exemptions and waivers?
     Should the Coast Guard apply inspection fees to new 
construction vessels and associated plan review?
     Should the Coast Guard apply inspection fees to vessels 
undergoing major alterations where new plan review and onsite 
verification is required?
     Should separate fees be developed for vessels enrolled in 
the Alternate Compliance and Streamlined Inspection

[[Page 74677]]

Programs under Title 46 CFR Part 8--Vessel Inspection Alternatives?
    This notice of inquiry is issued under authority of 46 U.S.C. 3305, 
46 U.S.C. 3306, Department of Homeland Security Delegation No. 0170.1.

    Dated: September 10, 2010.
Kevin S. Cook,
Rear Admiral, U.S. Coast Guard, Director of Prevention Policy.
[FR Doc. 2010-30151 Filed 11-30-10; 8:45 am]
BILLING CODE 9110-04-P