[Federal Register Volume 77, Number 191 (Tuesday, October 2, 2012)]
[Proposed Rules]
[Pages 60096-60100]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-24165]
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DEPARTMENT OF HOMELAND SECURITY
Coast Guard
46 CFR Part 8
[Docket No. USCG-2012-0861]
RIN 1625-AB90
Adding International Energy Efficiency (IEE) Certificate to List
of Certificates a Recognized Classification Society May Issue
AGENCY: Coast Guard, DHS.
ACTION: Notice of proposed rulemaking.
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SUMMARY: The Coast Guard proposes to amend its Vessel Inspection
Alternatives regulations to add the International Energy Efficiency
(IEE) Certificate to the list of certificates that a recognized
classification society may issue on behalf of the Coast Guard. We make
this proposal because Annex VI of the International Convention for the
Prevention of Pollution by Ships, 1973, as modified by the Protocol of
1978, has been amended to address energy efficiency for ships, and
these amendments call for the issuance of IEE Certificates starting
January 1, 2013. This proposed rule would enable recognized
classification societies to apply to the Coast Guard to issue IEE
Certificates to vessel owners and help to ensure that the demand for
IEE Certificates is met.
DATES: Comments and related material must either be submitted to our
online docket via http://www.regulations.gov on or before November 1,
2012 or reach the Docket Management Facility by that date.
ADDRESSES: You may submit comments identified by docket number USCG-
2012-0861 using any one of the following methods:
(1) Federal eRulemaking Portal: http://www.regulations.gov.
(2) Fax: 202-493-2251.
[[Page 60097]]
(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 ``Public Participation and Request for Comments'' portion of
the SUPPLEMENTARY INFORMATION section below for instructions on
submitting comments.
FOR FURTHER INFORMATION CONTACT: If you have questions on this proposed
rule, call or email Mr. Wayne Lundy, Systems Engineering Division,
Coast Guard; telephone 202-372-1379, email [email protected]. If
you have questions on viewing or submitting material to the docket,
call Renee V. Wright, Program Manager, Docket Operations, telephone
202-366-9826.
SUPPLEMENTARY INFORMATION:
Table of Contents for Preamble
I. Public Participation and Request for Comments
A. Submitting Comments
B. Viewing Comments and Documents
C. Privacy Act
D. Public Meeting
II. Abbreviations
III. Background
IV. Discussion of Proposed Rule
V. Regulatory Analyses
A. Regulatory Planning and Review
B. Small Entities
C. Assistance for Small Entities
D. Collection of Information
E. Federalism
F. Unfunded Mandates Reform Act
G. Taking of Private Property
H. Civil Justice Reform
I. Protection of Children
J. Indian Tribal Governments
K. Energy Effects
L. Technical Standards
M. Environment
I. Public Participation and Request for Comments
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.
A. Submitting Comments
If you submit a comment, please include the docket number for this
rulemaking (USCG-2012-0861), indicate the specific section of this
document to which each comment applies, 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 email 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,
and insert ``USCG-2012-0861'' in the ``Search'' box. Click on ``Submit
a Comment'' in the ``Actions'' column. 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 and may change this proposed rule based on your
comments.
B. Viewing Comments and Documents
To view comments, as well as documents mentioned in this preamble
as being available in the docket, go to http://www.regulations.gov,
insert ``USCG-2012-0861'' in the ``Search'' box and click ``Search.''
Click the ``Open Docket Folder'' in the ``Actions'' column. If you do
not have access to the internet, you may view the docket online by
visiting the Docket Management Facility in Room W12-140 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. We have an agreement
with the Department of Transportation to use the Docket Management
Facility.
C. 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).
D. Public Meeting
We do not plan to hold a public meeting. But you may submit a
request for one to the docket using one of the methods specified under
ADDRESSES. In your request, please explain why you believe a public
meeting 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.
II. Abbreviations
APPS Act to Prevent Pollution from Ships
CFR Code of Federal Regulations
DHS Department of Homeland Security
FR Federal Register
IEE International Energy Efficiency
IMO International Maritime Organization
MARPOL Protocol International Convention for the Prevention of
Pollution from Ships, 1973 as modified by the Protocol of 1978
MEPC Maritime Environment Protection Committee
NPRM Notice of Proposed Rulemaking
OMB Office of Management and Budget
Sec. Section
U.S.C. United States Code
III. Background
The Act to Prevent Pollution from Ships (APPS), 33 U.S.C. et seq.,
implements the International Convention for the Prevention of Pollution
from Ships, 1973 as modified by the Protocol of 1978 (MARPOL Protocol),
which includes MARPOL Annex VI: Regulations for the Prevention of Air
Pollution from Ships. See 33 U.S.C. 1901(a)(4) and (5). APPS directs
the Secretary of Homeland Security to prescribe any necessary or
desired regulations to carry out the provisions of the MARPOL Protocol
and it directs the Secretary to designate those persons authorized to
issue MARPOL Protocol certificates on behalf of the United States. See
33 U.S.C. 1903(c) and 1904. This authority was delegated to the Coast
Guard. See Department of Homeland Security Delegation No. 0170.1. As
required by APPS, the Coast Guard has consulted with the U.S.
Environmental Protection Agency regarding this proposed rule.
On July 15, 2011, in resolution MEPC.203(62), the International
Maritime Organization's (IMO) Marine Environment Protection Committee
(MEPC) adopted amendments to MARPOL Annex VI. Those amendments, which
were accepted July 1, 2012, and come into force January 1, 2013,
contain energy efficiency provisions for new and existing ships. These
amended regulations call for the issuance of an International Energy
Efficiency (IEE) Certificate to document compliance with Annex VI's new
Chapter 4, Regulations on Energy Efficiency for Ships. See amended
Annex VI Regulations 5.4 and 6.4. Since the mid-1990s, under authority
of 46 U.S.C. 3103, 3306, 3316, and 3703, and
[[Page 60098]]
regulations in 46 CFR part 8--Vessel Inspection Alternatives, the Coast
Guard has authorized recognized classification societies to issue
international certificates to vessels. The Coast Guard regularly adds
to the list, in 33 CFR 8.320(b), of international certificates that
classification societies may apply to issue to vessels on the Coast
Guard's behalf--including recent additions of the MARPOL 73/78
International Air Pollution Prevention Certificate and the
International Anti-Fouling System Certificate. See, respectively, 74 FR
21554, May 8, 2009; and 76 FR 76896, Dec. 9, 2011. The United States
currently recognizes seven classification societies for purposes of
issuing international certificates: The American Bureau of Shipping
(ABS, United States); Det Norske Veritas (DNV, Norway); Lloyd's
Register (LR, Great Britain); Germanischer Lloyd (GL, Germany); Bureau
Veritas (BV, France); RINA S.p.A. (RINA, Italy), and ClassNK (NKK,
Japan).
Recognized classification societies assist the Coast Guard and help
to ensure that U.S.-flagged ships that qualify for an international
certificate are able to obtain it promptly. As we stated in 1996, to
avoid duplication of effort between the Coast Guard and classification
societies that results in extra costs to U.S. vessel owners, it is best
to take full advantage of inspections done by classification societies:
insurance companies require that, before a vessel is insured, it be
classed. This means that a classification society must survey a
vessel for compliance with its class rules. Class rules are rules
developed by the particular classification society to cover design,
construction and safety of vessels. To ensure compliance with these
class rules and with international standards, classification
societies perform surveys on vessels using qualified marine
surveyors. Many of the items examined by the classification society
surveyors are the same as those examined by Coast Guard marine
inspectors in their inspections for certification.
61 FR 68510-11, December 27, 1996.
Starting January 2013, U.S.-flagged ships that are 400 gross
tonnage or more as measured under 46 U.S.C. 14302, Convention
Measurement System, (hereafter 400 GT ITC or more) may be subject to
detention or delay in foreign ports if they do not have an IEE
certificate to document compliance with Annex VI. See amended Annex VI
Regulation 19.
Section 8.320 of 46 CFR allows the Coast Guard to delegate issuance
of an international convention certificate to a recognized
classification society only if the certificate is listed in Sec.
8.320(b). The IEE Certificate is not currently listed in Sec.
8.320(b).
IV. Discussion of Proposed Rule
Our proposed amendment to 46 CFR 8.320(b) would add the
International Energy Efficiency (IEE) Certificate to the list of
certificates that may be issued by a recognized classification society
on behalf of the Coast Guard. This proposed change would initiate the
process that would allow recognized classification societies to issue
IEE Certificates on behalf of the Coast Guard. Any recognized
classification society that wishes to issue IEE Certificates on the
Coast Guard's behalf would be required to request a delegation of
authority from the Coast Guard pursuant to the procedures in 46 CFR
part 8. See 46 CFR 8.230 for criteria that must be met to become a
recognized classification society. In response, the Coast Guard would
evaluate the application, and review the applicant's relevant class
rules and classification society procedures, before deciding whether to
issue a delegation of authority to a recognized classification society.
As noted above, we propose this amendment to Sec. 8.320(b) to allow
the Coast Guard to enlist the assistance of recognized classification
societies to ensure that U.S.-flagged ships that are 400 GT ITC or more
that engage in one or more voyages to ports or offshore terminals under
the jurisdiction of other contracting parties to the MARPOL Protocol
will be able to promptly obtain an IEE certificate.
Also, the Presidential Memorandum of May 20, 2009 titled
``Preemption,'' states that ``preemption of State law by executive
departments and agencies should be undertaken only with full
consideration of the legitimate prerogatives of the States and with a
sufficient legal basis for preemption.'' The memorandum also required
agencies to include preemption provisions in the codified regulations
when regulatory preambles discussed its intention to preempt State law
through the regulation. Furthermore, it directed that these preemption
provisions must be justified under the legal principles governing
preemption, including those outlined in Executive Order (EO) 13132 on
Federalism. Consistent with this May 2009 Presidential Memorandum, EO
13132, and our Federalism discussion below, we have proposed inserting
a specific statement regarding preemption in the purpose section, Sec.
8.300, of Part 8's subpart C, International Convention Certificate
Issuance, and renaming that section heading ``Purpose and Preemption.''
V. Regulatory Analyses
We developed this proposed rule after considering numerous statutes
and executive orders related to rulemaking. Below we summarize our
analyses based on 14 of these statutes or executive orders.
A. Regulatory Planning and Review
Executive Orders 12866 (``Regulatory Planning and Review'') and
13563 (``Improving Regulation and Regulatory Review'') direct agencies
to assess the costs and benefits of available regulatory alternatives
and, if regulation is necessary, to select regulatory approaches that
maximize net benefits (including potential economic, environmental,
public health and safety effects, distributive impacts, and equity).
Executive Order 13563 emphasizes the importance of quantifying both
costs and benefits, of reducing costs, of harmonizing rules, and of
promoting flexibility. This proposed rule has not been designated a
``significant regulatory action'' under section 3(f) of Executive Order
12866. Accordingly, this proposed rule has not been reviewed by the
Office of Management and Budget. A draft regulatory assessment follows:
Under the authority of 33 U.S.C. 1903, 1904, and 46 U.S.C. 3103,
3306, 3316, and 3703, the Coast Guard proposes to amend 46 CFR 8.320,
to enable the Coast Guard to delegate the activity of issuing IEE
Certificates to a recognized classification society which would act on
behalf of the Coast Guard. The intent of this proposed rule is only to
allow for the delegation of IEE Certification to recognized class
societies and thus create options for industry in obtaining these
certificates; it does not impose mandatory actions on the U.S. maritime
industry.
Although requesting the delegation of authority to conduct IEE
surveys, inspections, and certifications is voluntary, classification
societies may incur minor costs associated with this process. The Coast
Guard may incur costs associated with the evaluation of these requests
and the issuance of delegations of authority to recognized
classification societies.
The Coast Guard estimates that this proposed rule would potentially
affect seven classification societies which may request a delegation of
authority to issue IEE Certificates. The Coast Guard used an Office of
Management and Budget (OMB)-approved collection of information (1625-
0041) to estimate the costs and burden.
The Coast Guard estimates that it will take classification society
employees
[[Page 60099]]
about 5.25 hours to review the rulemaking requirements and prepare the
delegation request, at an average one-time cost of $428.75 per
classification society (3.5 hours at $112 per hour \1\ for a director
and 1.75 hours at $21 per hour for an administrative assistant). The
total one-time cost for all seven classification societies is estimated
to be $3,000 (rounded).
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\1\ All hourly wages shown are ``fully loaded'' wages. Fully
loaded wages include the costs of employer paid benefits such as
health insurance.
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In addition, the Coast Guard estimates that it will incur a one-
time cost to review and approve the requests for delegation. Based on
the OMB-approved collections of information discussed above, the Coast
Guard estimates that it will take about 5 hours to review, approve, and
issue an order to delegate authority, at an average cost of $360 per
event (3.5 hours for reviewing/approving and 1.5 hours for issuing at
$72 per hour for a lieutenant (O-3)). The Coast Guard estimates a total
one-time Government cost of $2,500 (rounded) based on OMB-approved
collection of information estimates.
The Coast Guard estimates the total one-time cost of this proposed
rule to be approximately $5,500 (non-discounted) for classification
societies and the Government combined.
This proposed rule may result in several benefits to the U.S.
maritime industry. First, it may result in a reduction of potential
wait time for IEE Certificates. In the absence of delegation of
authority to classification societies, vessel owners and operators may
experience delays while the Coast Guard processes and issues IEE
Certificates. Combined with the Coast Guard's other activities and
responsibilities, such a process may result in an unnecessary and
burdensome wait for vessels. The Coast Guard also might have to
redirect resources that could be used for other missions, resulting in
a less efficient use of Government resources. Finally, this proposed
rule may mitigate potential consequences to U.S.-flagged vessels due to
non-compliance with the Convention, including costly vessel detentions
in foreign ports.
B. Small Entities
Under the Regulatory Flexibility Act (5 U.S.C. 601-612), we have
considered whether this proposed rule will, if promulgated, have a
significant economic impact on a substantial 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.
Affected classification societies are classified under one of the
following North American Industry Classification System codes for water
transportation: 488330--Navigational Services to Shipping, 488390--
Other Support Activities for Water Transportation, or 541611--
Administrative Management and General Management Consulting Services.
The only predominate U.S. classification society is the American
Bureau of Shipping (ABS). ABS is a privately owned non-profit
organization that is dominant in its field (Source: 2011 Hoovers,
http://www.hoovers.com/company/American Bureau of Shipping Inc/rfsksji-
1.html). Based on publicly available information, ABS has more than
3,000 employees and annual revenues of more than $800 million.\2\ We do
not consider ABS to be a small entity using the Small Business Act
definitions of a small entity.
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\2\ Source: 2011 Bloomberg, http://investing.businessweek.com/research/stocks/private/person.asp?personId=28915205&privcapId=4217113&previousCapId=764755&previousTitle=ABS%20Group%20of%20Companies,%20Inc.
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The Coast Guard expects that this proposed rule, if promulgated,
would not have a significant economic impact on a substantial number of
small entities. As described in section V.A. of this preamble,
``Regulatory Planning and Review,'' the anticipated cost of this
proposed rule, per class society, would be less than $500. This
proposed rule is not mandatory, and classification societies,
regardless of size, would choose to participate only if the benefits
are greater than the costs.
Therefore, the Coast Guard certifies under 5 U.S.C. 605(b) that
this proposed rule, if promulgated, will not have a significant
economic impact on a substantial number of small entities. If you think
that your business, organization, or governmental jurisdiction
qualifies as a small entity and that this proposed rule would 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 proposed rule would economically affect it.
C. Assistance for Small Entities
Under section 213(a) of the Small Business Regulatory Enforcement
Fairness Act of 1996 (Pub. L. 104-121), we want to assist small
entities in understanding this proposed rule so that they can better
evaluate its effects on them and participate in the rulemaking. If the
proposed rule would affect your small business, organization, or
governmental jurisdiction and you have questions concerning its
provisions or options for compliance, please consult Mr. Wayne Lundy,
Systems Engineering Division, Coast Guard, telephone 202-372-1379 or
email [email protected]. The Coast Guard will not retaliate
against small entities that question or complain about this proposed
rule or any policy or action of the Coast Guard.
D. Collection of Information
This proposed rule would call for no new collection of information
under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520) because
the Coast Guard expects that the number of applications would be fewer
than 10 in any given year.
E. Federalism
A rule has implications for federalism under Executive Order 13132,
Federalism, if it has a substantial direct effect on the States, or on
the distribution of power and responsibilities among the various levels
of government. We have analyzed this proposed rule under that Order and
have determined that it does not have implications for federalism.
As noted above, APPS implements the MARPOL Protocol. APPS also
directs the Secretary to ``designate those persons authorized to issue
on behalf of the United States the certificates required by the MARPOL
Protocol.'' 33 U.S.C. 1904. By enacting this specific provision, it was
the intent of Congress to give the Coast Guard, as delegated by the
Secretary, the exclusive authority to regulate within this field.
Therefore, we have determined that this rule does not have implications
for federalism.
F. 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 discretionary
regulatory actions. 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 (adjusted for
inflation) or more in any one year. Though this proposed rule would not
result in such expenditure, we do discuss the effects of this proposed
rule elsewhere in this preamble.
G. Taking of Private Property
This proposed rule would not cause a taking of private property or
otherwise have taking implications under
[[Page 60100]]
Executive Order 12630, Governmental Actions and Interference with
Constitutionally Protected Property Rights.
H. Civil Justice Reform
This proposed 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.
I. Protection of Children
We have analyzed this proposed rule under Executive Order 13045,
Protection of Children from Environmental Health Risks and Safety
Risks. This proposed rule is not an economically significant rule and
would not create an environmental risk to health or a risk to safety
that might disproportionately affect children.
J. Indian Tribal Governments
This proposed rule does not have Tribal implications under
Executive Order 13175, Consultation and Coordination with Indian Tribal
Governments, because it would not have a substantial direct effect on
one or more Tribal governments, on the relationship between the Federal
Government and Tribal governments, or on the distribution of power and
responsibilities between the Federal Government and Tribal governments.
K. Energy Effects
We have analyzed this proposed 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, supplemented by
Executive Order 13563, and is not likely to have a significant adverse
effect on the supply, distribution, or use of energy. The Administrator
of the Office of Information and Regulatory Affairs has not designated
it as a significant energy action. Therefore, it does not require a
Statement of Energy Effects under Executive Order 13211.
L. Technical Standards
The National Technology Transfer and Advancement Act (NTTAA) (15
U.S.C. 272 note) directs agencies to use voluntary consensus standards
in their regulatory activities unless the agency provides Congress,
through the Office of Management and Budget, with an explanation of why
using these standards would be inconsistent with applicable law or
otherwise impractical. Voluntary consensus standards are technical
standards (e.g., specifications of materials, performance, design, or
operation; test methods; sampling procedures; and related management
systems practices) that are developed or adopted by voluntary consensus
standards bodies.
This proposed rule does not use technical standards. Therefore, we
did not consider the use of voluntary consensus standards.
M. Environment
We have analyzed this proposed rule under Department of Homeland
Security Management Directive 023-01 and Commandant Instruction
M16475.lD, which guide the Coast Guard in complying with the National
Environmental Policy Act of 1969 (42 U.S.C. 4321-4370f), and have made
a preliminary determination that this action is one of a category of
actions that do not individually or cumulatively have a significant
effect on the human environment. A preliminary environmental analysis
checklist supporting this determination is available in the docket
where indicated under the ``Public Participation and Request for
Comments'' section of this preamble. This proposed rule involves the
delegation of authority, the inspection and documentation of vessels,
and congressionally-mandated regulations designed to improve or protect
the environment.
This action falls under section 2.B.2, figure 2-1, paragraphs
(34)(b) and (d), of the Instruction, and under section 6(b) of the
``Appendix to National Environmental Policy Act: Coast Guard Procedures
for Categorical Exclusions, Notice of Final Agency Policy'' (67 FR
48243, July 23, 2002). We seek any comments or information that may
lead to the discovery of a significant environmental impact from this
proposed rule.
List of Subjects in 46 CFR Part 8
Administrative practice and procedure, Organization and functions
(Government agencies), Reporting and recordkeeping requirements,
Vessels.
For the reasons discussed in the preamble, the Coast Guard proposes
to amend 46 CFR part 8 as follows:
PART 8--VESSEL INSPECTION ALTERNATIVES
1. The authority citation for part 8 is revised to read as follows:
Authority: 33 U.S.C. 1903, 1904, 3803 and 3821; 46 U.S.C. 3103,
3306, 3316, and 3703; Department of Homeland Security Delegation No.
0170.1 and Aug. 8, 2011 Delegation of Authority, Anti-Fouling
Systems.
2. Revise Sec. 8.300 to read as follows:
Sec. 8.300 Purpose and preemption.
This subpart establishes options for vessel owners and operators to
obtain required international convention certification through means
other than those prescribed elsewhere in this chapter. The regulations
in this subpart have preemptive effect over any State or local
regulation within the same field.
3. Amend Sec. 8.320 as follows:
a. In paragraph (b)(12), remove the word ``and'';
b. In paragraph (b)(13), remove the period at the end of the
sentence and add, in its place, the text ``; and''; and
c. Add paragraph (b)(14) to read as follows:
Sec. 8.320 Classification society authorization to issue
international certificates.
* * * * *
(b) * * *
(14) MARPOL 73/78 International Energy Efficiency Certificate.
* * * * *
Dated: September 25, 2012.
F.J. Sturm,
Acting Director of Commercial Regulations and Standards, U.S. Coast
Guard.
[FR Doc. 2012-24165 Filed 10-1-12; 8:45 am]
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