[Federal Register Volume 81, Number 62 (Thursday, March 31, 2016)]
[Rules and Regulations]
[Pages 18702-18734]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-05623]



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Vol. 81

Thursday,

No. 62

March 31, 2016

Part II





Department of Homeland Security





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Coast Guard





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46 CFR Part 69





Tonnage Regulations Amendments; Final Rule

  Federal Register / Vol. 81 , No. 62 / Thursday, March 31, 2016 / 
Rules and Regulations  

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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

46 CFR Part 69

[Docket No. USCG-2011-0522]
RIN 1625-AB74


Tonnage Regulations Amendments

AGENCY: Coast Guard, DHS.

ACTION: Final rule.

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SUMMARY: The Coast Guard amends its tonnage regulations to implement 
amendments to the tonnage measurement law made by the 2010 Coast Guard 
Authorization Act, codify principal technical interpretations, and 
incorporate administrative, non-substantive clarifications and updates. 
The Coast Guard believes these changes will lead to a better 
understanding of regulatory requirements.

DATES: This final rule is effective May 2, 2016.

ADDRESSES: Documents mentioned in this preamble are part of docket 
USCG-2011-0522. To view public comments or documents mentioned in this 
preamble as being available in the docket, go to http://www.regulations.gov, type the docket number in the ``SEARCH'' box and 
click ``SEARCH.'' Click on Open Docket Folder on the line associated 
with this rulemaking. You may also visit 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.

FOR FURTHER INFORMATION CONTACT: If you have questions on this rule, 
call or email Mr. Marcus Akins, Marine Safety Center, Tonnage Division 
(MSC-4), Coast Guard; telephone 202-795-6787, email 
[email protected]. If you have questions on viewing or submitting 
material to the docket, call Cheryl F. Collins, Program Manager, Docket 
Operations, telephone 202-366-9826, toll free 1-800-647-5527.

SUPPLEMENTARY INFORMATION:

Table of Contents for Preamble

I. Abbreviations
II. Regulatory History
III. Basis and Purpose
IV. Background
V. Discussion of Comments and Changes
    A. Comments
    B. Additional Changes
    C. Change Summary
VI. 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. Abbreviations

BLS Bureau of Labor Statistics
CFR Code of Federal Regulations
E.O. Executive Order
FR Federal Register
IMO International Maritime Organization
MSC Marine Safety Center
MSSC Marine Safety and Security Council
MTN Marine Safety Center Technical Note
NAICS North American Industry Classification System
NPRM Notice of Proposed Rulemaking
NVIC Navigation and Vessel Inspection Circular
OMB Office of Management and Budget
Pub. L. Public Law
Sec.  Section Symbol
SBA Small Business Administration
U.S.C. United States Code

II. Regulatory History

    We published a notice of proposed rulemaking (NPRM) on April 8, 
2014 (79 FR 19420) in the Federal Register. This document invited 
public comment on proposed changes to the tonnage regulations to 
implement amendments to the tonnage measurement law made by section 303 
of the Coast Guard Authorization Act of 2010 (Pub. L. 111-281, 124 
Stat. 2924 (2010), referred to in this document as the 2010 Coast Guard 
Authorization Act), to codify principal technical interpretations 
issued by the Coast Guard, and to incorporate administrative, non-
substantive clarifications and updates. We subsequently published a 
notice of public meeting on May 21, 2014 (79 FR 29149) and held the 
public meeting on June 5, 2014.

III. Basis and Purpose

    The tonnage measurement law, codified in Title 46, United States 
Code (U.S.C.), Subtitle II, Part J, ``Measurement of Vessels,'' 
provides for assignment of gross and net tonnages to any vessel to 
which a law of the United States applies based on the vessel's tonnage. 
The 2010 Coast Guard Authorization Act included amendments which 
updated, clarified, and eliminated inconsistencies in the tonnage 
measurement law. Under the authority of 46 U.S.C. 14302, 14512, and 
14522, and delegation of that authority to the Coast Guard in 
Department of Homeland Security Delegation No. 0170.1 para. 92(j), the 
Coast Guard administers the implementing regulations for the tonnage 
measurement law. The regulations are found in title 46, Code of Federal 
Regulations (CFR), part 69, ``Measurement of Vessels,'' and referred to 
as the tonnage regulations.
    The purpose of this rule is to implement the changes made to the 
vessel measurement statutes by the 2010 Coast Guard Authorization Act. 
This rule also codifies principal policy interpretations, and 
incorporates additional clarifications and other administrative updates 
to the tonnage regulations.

IV. Background

    In this final rule, we are amending 46 CFR part 69, ``Measurement 
of Vessels.'' These regulations are referred to as the ``tonnage 
regulations'' and provide for assignment of vessel gross and net 
tonnages and registered dimensions.

V. Discussion of Comments and Changes

A. Comments

    We received comments on the NPRM from six individuals or entities 
through submissions to the online docket. We heard from one person 
whose affiliation or occupation was not disclosed, one naval architect, 
one shipbuilder, one owner-operator of offshore vessel services, and 
two industry associations. We received no oral or written comments on 
the NPRM at the public meeting. A summary of the comments that we 
received follows, along with our resolution to each.
    1. One commenter requested that the Coast Guard clarify the rule 
with regards to when the owner may, or must, use Convention Measurement 
System or Regulatory Measurement System tonnage to determine 
applicability of an international requirement.
    While we acknowledge the usefulness of including more detailed 
information in the regulation on how assigned tonnages are used, we 
believe that this could result in an overly detailed regulation that 
would be difficult to keep up to date. We believe that the new section 
on tonnage applicability, included in the regulatory text, strikes the 
correct balance between providing limited information on the use of 
tonnage, as is the case with the existing regulations, and providing 
extensive detail on the large number of individual tonnage thresholds 
that appear in international agreements and other laws of the United 
States.
    2. One commenter expressed concern that, absent a clarification 
from the

[[Page 18703]]

Coast Guard, the terminology ``vessel that engages on a foreign 
voyage'' could have the effect of broadening the universe of vessels 
for which Convention Measurement System tonnage must be used to apply 
international requirements. The commenter cited the distinction between 
a vessel that is currently engaged on an international voyage and one 
that is currently engaged on a domestic voyage but also engages on 
international voyages from time to time.
    We disagree and believe the regulatory text in question, as 
drafted, does not affect how assigned tonnages are used when applying 
tonnage-based requirements. The regulation comes into play only in 
determining whether a vessel must be measured under the Convention 
Measurement System and, if so, whether an International Tonnage 
Certificate (1969) must be carried onboard. If a U.S. flag vessel of 79 
feet or more in length, regardless of keel-laid date, is engaged on a 
domestic voyage but also engages on foreign voyages from time to time, 
then Convention measurement is required. However, whether or not the 
assigned Convention tonnage is used when applying international 
agreements depends on tonnage applicability language in those 
agreements. The regulatory text in question only clarifies that 
requirements for Convention measurement apply at all times to such 
vessels, and are not exclusively limited to those times when such 
vessels are engaged on a foreign voyage.
    The language in the rule is substantially the same as it is defined 
in the statute in 46 U.S.C. 14101. We are not permitted to enlarge or 
reduce the language that is in U.S. statute.
    3. One commenter requested that the tonnage regulations clearly 
pronounce the preclusion from measurement under the Regulatory 
Measurement System of certain foreign flag vessels.
    We know of no practical way to add this single pronouncement 
without substantively restructuring and expanding the regulatory text 
to identify other preclusions related to measurement system 
applicability. For example, whether or not a particular tonnage 
measurement system applies to a vessel can depend on a number of 
factors, including the vessel's flag, length, voyage type, keel laid or 
substantial alteration date, and whether or not it is self-propelled. 
Our Navigation and Vessel Inspection Circular (NVIC) 11-93 Change 3, 
``Applicability of Tonnage Measurement Systems to U.S. Flag Vessels,'' 
presents this kind of information using a matrix approach that cross-
references eight different tables, with each table listing applicable 
requirements and restrictions. We believe that presenting information 
in this fashion, while potentially helpful in explaining the 
requirements, is not suited for inclusion in the tonnage regulations, 
especially in an expanded form to address foreign flag vessels. 
Accordingly, we have not incorporated any corresponding change to the 
regulatory text.
    4. One commenter requested changes to the tonnage regulations to 
make clear that a foreign flag vessel engaged on a foreign voyage 
between places outside of the United States is effectively outside the 
jurisdiction of United States law.
    We agree that where laws of the United States, including 
obligations under international agreements, do not apply to a vessel, 
tonnage measurement requirements under U.S. law similarly do not apply, 
as in the case the commenter cited. However, along the same lines as 
our response to the previous comment, we believe that the regulation, 
as drafted, is sufficiently clear to cover this case, especially in 
view of the language in Sec. Sec.  69.3 and 69.11, as amended by this 
rulemaking, that addresses when tonnage measurement under U.S. law is 
required.
    5. One commenter took issue with the amendment to Sec.  69.17 
clarifying that the vessel owner is responsible for submitting 
applications for measurement. The commenter cited difficulties in 
identifying the owner in certain cases where, for vessels under 
construction, ownership may reside in contractual relationships between 
the yard, prospective owners, and lien holders.
    We believe the clarification regarding vessel owner responsibility 
is appropriate, as the tonnage measurement law and existing regulations 
provide for owners to exercise certain measurement options. However, we 
recognize that identifying the specific individual or entity who owns 
the vessel may be especially problematic early in the construction 
process, when the current regulation requires application submission. 
Accordingly, we have amended the associated regulatory text to replace 
the term ``must'' with the term ``should'', so that early application 
submission is recommended, rather than mandatory.
    6. One commenter stated that portable enclosed spaces should not be 
included in a vessel's tonnage, as they effectively serve the function 
of deck cargo, which is similarly not included. The commenter described 
the unique mission requirements of offshore support vessels, noting 
that they frequently involve the fitting of equipment used to service 
offshore energy exploration and production facilities and other 
infrastructure that do not usually form a permanent part of a vessel's 
structure. The commenter argued that an offshore support vessel 
transporting such items was equivalent to a cargo ship transporting 
deck cargo, and proposed possible mechanisms for evaluating the point 
at which such installations could be treated as permanent additions to 
the vessel.
    We disagree. Fundamentally, the question of whether or not a space 
should be included in a vessel's tonnage depends on whether the 
enclosed volume in question is treated as part of the vessel. With 
limited exceptions, national and international measurement systems 
dating to at least the 18th century have not treated deck cargo as part 
of the vessel, with deck cargo generally taken to mean freight carried 
on the weather decks for the purpose of its transport between two 
separate and distinct locations. Under this historical framework, the 
relatively recent adaptation for shipboard use of portable quarters 
units, equipment vans and similar portable spaces that all function as 
part of the vessel, even for periods of short duration, argues for 
their treatment as part of the host vessel, as opposed to deck cargo.
    7. Two commenters expressed the view that the Convention does not 
provide for including portable enclosed spaces in tonnage, and 
therefore, such spaces should not be included under the Convention 
Measurement System.
    While we agree that the matter of portable enclosed spaces is not 
explicitly addressed in the Convention, we interpret Regulation 2(4) of 
the Convention to require including their volumes in tonnage, unless 
they are effectively open to the weather and meet other conditions for 
treatment as excluded spaces. We consider the side boundaries of 
portable enclosed spaces to be analogous to the ``portable partitions'' 
described in this regulation. Further, we believe that Article 2 of the 
Convention, which defines gross tonnage as a measure of the vessel's 
overall size, supports this interpretation. Accordingly, we maintain 
that portable enclosed spaces should be accounted for in a similar 
manner to enclosed spaces that are part of the vessel's permanent 
structure, when assigning vessel tonnage under the Convention 
Measurement System.
    8. One commenter stated that other governments do not include 
portable enclosed-space volumes in tonnage, and therefore, requested 
that the tonnage

[[Page 18704]]

regulations be amended to align with internationally agreed-to 
requirements on this subject.
    We disagree with the requested amendment. We are aware that some 
governments do not, in general, include the volumes of such spaces in 
tonnage, although we know of no reliable source of information on how 
the 156 governments currently party to the Convention treat these 
spaces. However, we note that during recent correspondence group work 
at the International Maritime Organization (IMO), the United States was 
among the majority of those governments that include these volumes in 
tonnage (see Table 1-4 of Annex 2 to IMO document SDC 1/INF.4 dated 
October 18, 2013), although international consensus was not obtained on 
this matter. In addition, we are unaware of any explicit 
internationally agreed-to requirements, or even guidance, on this 
subject. IMO recently considered tonnage implications of portable 
enclosed spaces (referred to as ``temporary deck equipment'' in IMO 
documents based on U.S. terminology at the time), but did not address 
this matter in the updated interpretations of TM.5/Circ.6 dated May 19, 
2014 (see Annex 4 to IMO document SDC 1/4 dated October 18, 2013).
    9. One commenter expressed the view that including portable 
enclosed spaces in tonnage under the Standard and Dual Regulatory 
Measurement Systems appears fair, but only in cases where these items 
serve as long-term fixtures aboard the vessel. However, the commenter 
cautioned that such treatment could be especially problematic for 
certain fixtures (e.g., survival craft or a submersible on a mother 
ship).
    We believe that the operative statutory language for the Standard 
and Dual Regulatory Measurement Systems supports including such spaces 
in tonnage, without regard to the duration of their installation on 
board. Whether or not a portable enclosed space is included in tonnage 
under these systems should depend on whether the space is permanently 
closed-in (e.g., the bounding structure itself is of a permanent, 
rather than a temporary, nature), as opposed to whether it is 
permanently installed on the vessel. Accordingly, we maintain that the 
duration of installation has no bearing on a vessel's tonnage 
assignment. Also, we note that the Coast Guard treats survival craft 
and submersibles as separate vessels under the tonnage regulations, and 
their volumes are not included in the tonnages of the host vessels.
    10. Two commenters expressed concern over the impact of including 
portable enclosed spaces in tonnage with regard to remeasuring a vessel 
following the installation or removal of such items, with both 
contending that this is especially problematic for vessels close to 
tonnage thresholds. One commenter noted that the Coast Guard is not 
codifying the related remeasurement criteria in this rulemaking.
    We currently apply a volumetric remeasurement criterion following 
vessel changes exceeding 5 percent of the vessel's tonnage, which 
includes installation and removal of portable enclosed spaces (see NVIC 
11-93, Change 3). This allows the installation and removal of many such 
items without the need for remeasurement. Also, beginning in 1997, we 
authorized a maximum allowance for such items, which is reflected in a 
vessel's assigned tonnage. This avoids the need to remeasure the vessel 
following the installation or removal of portable enclosed spaces, 
provided the maximum allowance is not exceeded. Based on the valuable 
information exchanged on this subject during the recent IMO work on the 
Convention, we continue to believe this approach offers the best way to 
account for the presence of these spaces, consistent with the 
Convention and the tonnage measurement law. This does not affect our 
long-standing use of the 5 percent criterion, and as such our policy on 
that issue remains consistent.
    11. One commenter requested that the issue of enforcement be 
addressed with respect to the installation and removal of portable 
enclosed spaces, as it may not be obvious to owners and operators that 
such changes could impact tonnage assignments.
    As stated in the NPRM, one of our objectives in codifying principal 
policy interpretations was to facilitate understanding of, and 
compliance with, the tonnage regulations. We believe that the 
codification of the interpretations related to portable enclosed 
spaces, coupled with our continued use of a 5 percent remeasurement 
criterion, will reduce those situations where an enforcement action is 
necessary.
    12. One commenter highlighted terminology differences between the 
definition ``portable enclosed space'' and the term ``temporary deck 
equipment'' used in previous policy documents, noting that the term 
``not permanent'' in the NPRM's regulatory text, as drafted, 
significantly differed from the term ``semi-permanent'' used in policy. 
The commenter questioned whether the changes were intended to 
constitute a substantive amendment to the language.
    While we acknowledge the differences between the text in policy 
documents and the codified regulatory text, as drafted, we believe that 
the codification makes no substantive changes. When we developed the 
proposed definitions for the terms ``deck cargo'' and ``portable 
enclosed space'' that appeared in the NPRM, we made adjustments to the 
policy text for clarity and to better harmonize the definitions. These 
adjustments included avoiding the use of the term ``temporary,'' which 
like the term ``semi-permanent,'' can be construed in a variety of ways 
unless accompanied by amplifying text, and omitting the example of the 
portable aviation fuel (``JP-5'') tank that is treated as either deck 
cargo or part of the vessel, depending on whether it is offloaded with 
its contents intact. Instead, we use more general and, in our view, 
clearer language in the ``deck cargo'' and ``portable enclosed space'' 
definitions, which we believe has the same effect as the language used 
in current policy.
    13. Two commenters expressed the view that portable enclosed spaces 
should not be classified as superstructure spaces under the tonnage 
regulations, as the term ``superstructure'' has a different meaning in 
other maritime contexts (e.g., it can refer only to permanent 
structures, and/or only structures that extend from side-to-side).
    Although we recognize the benefits of using consistent, universally 
understood terminology in the tonnage regulations, in this instance we 
are unaware of any term widely used in the maritime industry that 
effectively encompasses all manner of above-deck enclosed spaces that 
are not bounded by the hull. Further, since 1989, when the tonnage 
regulations were amended to adopt the term ``superstructure'' to 
describe such spaces, we are unaware of any instance where using this 
term resulted in a vessel designer or measurement organization 
incorrectly applying the tonnage rules. Accordingly, we made no changes 
to the regulatory text, as drafted, in this regard.
    14. One commenter stated the new term ``water ballast double 
bottom'' appears unnatural, and suggested that the term ``double bottom 
(water) ballast tank'' be used instead.
    We agree that the term in the proposed regulatory text, as drafted, 
could be improved upon for the reason stated. Because the term is 
applied only when measuring a vessel for which the vessel's double 
bottom is solely used for water ballast, we believe the suggested

[[Page 18705]]

reference to ballast tanks is unnecessary, and could cause confusion. 
Accordingly, we have revised the regulatory text to replace the term 
``water ballast double bottom'' with the term ``double bottom for water 
ballast,'' which we believe adds clarity while satisfactorily 
addressing the commenter's stated concern.
    15. One commenter stated that the proposed regulatory text for the 
codified interpretation on passenger support spaces could not be found.
    The draft text in question was inadvertently omitted from the NPRM 
during the regulatory development process. In view of the fact that 
these amendments were fully described in the NPRM, accounted for in its 
Regulatory Analyses section, and were not the subject of any other 
comment, we incorporated amendments to add the missing text in 
69.117(c)(2) of the final rule. The added text is from the policy 
document, without change (see Section 69.117(c)(2) of Marine Safety 
Center Technical Note (MTN) 01-99 Change 7, ``Tonnage Technical 
Policy'').
    16. One commenter urged the Coast Guard to amend the size criteria 
for the treatment of ordinary frame openings being codified in this 
rulemaking. Specifically, the commenter requested an exception be made 
to the specified criteria under certain circumstances, to allow the 
fitting of larger frame openings without a corresponding increase in 
the vessel's tonnage. This change would allow for improved access of 
personnel through the frames for rescue operations, consistent with 
current classification society and international rules that apply in 
similar situations. Another commenter expressed support for the main 
points raised in this comment.
    We disagree with the requested exception to the size criteria. The 
criteria are historically rooted, with their origins dating to the 
early 20th century, and are based, at least in part, on the concept of 
impeding movement of personnel and cargo through the frame. We also 
believe that the magnitude of the requested size increase (more than 
doubling the effective opening area) could have a significant effect on 
tonnage assignments of both present vessels and future vessels measured 
or remeasured under the Standard and Dual Regulatory Measurement 
Systems. Finally, while we acknowledge the safety benefits of larger 
openings for rescue operations, it is not clear that such a departure 
from long-standing practice and policy would have a net positive impact 
on aggregate safety of U.S flag vessels, as the relaxation of opening 
restrictions could facilitate the construction of larger vessels 
regulated to lower tonnage-based standards.
    17. One commenter stated that by not revising the criteria for 
measurement treatment of openings consistent with current 
classification society and international rules, the Coast Guard is 
forcing an owner to choose between accepting a higher tonnage, or 
building a smaller, less capable, vessel with the same tonnage.
    We disagree. Under the Standard and Dual Regulatory Measurement 
Systems, designers have wide latitude in incorporating a multitude of 
design features that serve to artificially reduce a vessel's tonnage. 
While the undesirability of some of these features from a cost and 
efficiency perspective has long been recognized, their use has 
generally been accepted by the U.S. maritime community, and is common 
practice. The tonnage regulations, as amended, will not preclude a 
designer from taking advantage of these features to reduce a vessel's 
tonnage to the desired tonnage objective, while simultaneously meeting 
tank access and other safety requirements. The use or non-use of 
numerous features that can effectively reduce a vessel's tonnage is the 
designer's, and ultimately the owner's, choice.
    18. One commenter stated that the ordinary frame opening size 
criteria being codified are arbitrary. In seeking relaxed criteria, the 
commenter also stated that there is precedent for increasing the 
minimum opening size.
    We disagree with the commenter's characterization of the size 
criteria as arbitrary, and we describe the basis of the size criteria 
in our response to Comment 16. However, from our review of this matter, 
we concluded that the criteria for the measurement treatment of oval 
openings, first established by the Coast Guard in 1988 but limited to 
fuel tanks, could be applied to such openings in other locations, 
subject to certain restrictions to maintain the principle of impeding 
personnel and cargo movement. We have amended the regulatory text 
accordingly. While this does not provide the same degree of relaxation 
sought by the commenter, it gives designers additional flexibility to 
fit somewhat larger oval openings in more locations, without tonnage 
penalty.
    19. One commenter questioned the Coast Guard's legal authority to 
codify size criteria for the treatment of ordinary frame openings that 
differ from criteria in classification society rules and international 
standards that provide for larger ``rescue openings'' in vertical 
bulkheads. The commenter claimed that codifying these criteria will 
reduce safety.
    The Secretary of the department in which the Coast Guard is 
operating may--and in some cases, must--issue rules and regulations to 
implement certain statutes. The vessel measurement statutes mandate 
that the ``Secretary shall measure a vessel to which this chapter 
applies'' as per 46 U.S.C. 14302 and 46 U.S.C. 14502. The Secretary has 
delegated this authority to the Coast Guard.
    This rule is not in conflict with the classification society rules 
or international standards. It does not prevent the placement of larger 
openings in bulkheads in the cargo area. However, if these larger 
openings are present, we recognize that a potential tonnage reduction 
benefit is lost. That is the present situation, and it is unaffected by 
this rule. The effect of fitting the larger openings could be to raise 
the vessel's Regulatory Measurement System tonnage, potentially making 
the vessel subject to more stringent safety measures that apply to 
larger vessels. That indirect safety consequence is, in fact, why many 
maritime rules and standards are tonnage-based.
    Assigned tonnages are measures of a vessel's overall size and/or 
useful capacity. It is true that certain provisions of the U.S. 
Regulatory Measurement System can be used to an owner's benefit to 
reduce a vessel's tonnage, as the commenter suggested. However, design 
features from such provisions are generally not taken into account by 
classification society rules or international standards. Likewise, 
classification society rules and international standards are generally 
not taken into account by the tonnage regulations. To that extent, the 
commenter's suggestion that these regulations be amended to reflect 
classification society rules and international standards is beyond the 
scope of this rulemaking.
    These rules are not intended to change any of the present Coast 
Guard policies in effect, except those changes required by the 2010 
Coast Guard Authorization Act. There is no suggestion in the comment 
that present policy is not being applied consistently by the Coast 
Guard. As this rule merely codifies that policy into regulation, this 
rule maintains the status quo. See the response to Comment 22, below, 
for further discussion of the cost implications of this rule.
    20. Two commenters expressed the view that the tonnage measurement 
rules should not be at odds with safety-related standards or other 
requirements.

[[Page 18706]]

    While acknowledging this view, we note that the tonnage parameters 
assigned under the measurement rules of the Convention and Regulatory 
Measurement Systems are size parameters, based on a vessel's geometry 
and the use of its spaces. There is currently no language in U.S. law 
that would allow tonnage measurement rules to be modified for 
consistency with other rules unrelated to tonnage measurement. We are 
not aware of any conflict between the safety standards and tonnage 
rules; however, as discussed in our response to the next comment, 
vessel design features required for compliance with safety standards 
are still subject to tonnage measurement rules.
    21. One commenter requested a new section be added to the tonnage 
regulations, expressing the fundamental principle that safety-related 
improvements not be subject to tonnage penalty.
    We disagree. Assigned tonnages are used by numerous public and 
private sector entities for a variety of purposes, including the 
application of tonnage-based safety, security and environmental 
protection regulations and standards; the crediting of seafarers for 
service on vessels depending on their tonnage; and the assessment of 
taxes and other fees. Consequently, a safety improvement that added 
considerable volume but was exempted from tonnage might allow the 
modified vessel to escape more stringent size-based standards that 
would otherwise apply, and could adversely impact seafarers earning 
credit for sea service and others who might otherwise benefit from a 
higher tonnage assignment. Absent any mandate under U.S. law, it would 
be inappropriate for the Coast Guard to amend the tonnage regulations 
in the manner requested.
    22. Two commenters took issue with the NPRM's ``no cost'' 
characterization of the codified interpretation related to the 
treatment of portable enclosed spaces, expressing a general concern 
that there would be costs. Similarly, another commenter expressed 
disagreement with the ``no cost'' characterization of the codified 
interpretations related to ordinary frame opening size, citing 
significant cost impacts should the current criteria continue to be 
applied.
    We acknowledge the concerns raised by the commenters, but believe 
that the NPRM correctly characterized the codification of these long-
standing and frequently applied interpretations as ``no cost.'' These 
interpretations appear in publicly available policy documents, used by 
Coast Guard field personnel and organizations that perform tonnage 
measurement work on the Coast Guard's behalf. Codifying the 
interpretations should give vessel owners better access to important 
information upon which to base business decisions that are tonnage 
related, and could help avert costly impacts from tonnage assignments 
that do not meet owners' objectives.
    We are not aware of any specific instance in which the 
interpretations are not being followed due to the lack of their 
codification in the regulations, and the commenters did not identify 
any specific instance. The Coast Guard makes its interpretations 
available to authorized measurement organizations and other 
stakeholders, and conducts a rigorous oversight program, including 
audits of tonnage certifications, to ensure these interpretations are 
correctly applied. Our discussion in this section explains why we 
believe there is no cost to codifying the interpretations in 
regulation.
    With respect to the ordinary frame opening size, the commenter 
acknowledges that the present interpretation ``continues to be 
enforced'' and is not new or sporadically applied. As we discussed in 
Comment 16 above, the size criteria are long-standing and rooted in the 
origins of tonnage measurement. This rule merely codifies the status 
quo. And, as we discussed in Comments 17 and 19 above, the commenter's 
position on vessel design options conflates the Regulatory and 
Convention Measurement Systems to give the appearance of conflict when 
there is none.
    The commenter requests that the rescue opening requirements in 
international safety conventions such as SOLAS be applied in a manner 
that does not adversely affect tonnage assignments under our national 
tonnage rules. However, vessels of 79 feet or more in length that 
comply with SOLAS in order to engage in international voyages must also 
have a Convention tonnage measurement; under the International Tonnage 
Convention the spaces in question would be included in tonnage because 
the vessel's Convention tonnage is based on its total enclosed volume, 
not just the volume bounded by the framing. Therefore, a vessel owner 
may elect to take advantage of tonnage reduction options under the U.S. 
Regulatory Measurement System, understanding that the limited opening 
size that is part of this system may conflict with opening size 
requirements necessary to overseas trade. This design choice is not 
new, and the considerations weighed when making this choice are not 
changed by this rule. We acknowledge that vessels subject to various 
international requirements must have openings of a certain size, but as 
a matter of domestic law we neither require nor prevent installation of 
these openings: The vessel owner may choose.
    With respect to portable spaces, existing statute and regulation 
provide for remeasurement if the vessel or the use of its space is 
changed.\1\ As we described in Comment 10, two current policy 
provisions help minimize the need for remeasurement. First, we apply a 
volumetric change threshold of 5 percent for remeasurement, which 
includes the addition and removal of portable spaces. Second, we 
authorize a maximum allowance for portable spaces in a vessel's tonnage 
assignment. This allows for the addition and removal of portable spaces 
without remeasurement as long as the specified maximum tonnage is not 
exceeded.
---------------------------------------------------------------------------

    \1\ 46 U.S.C. 14504(a)(2) (``To the extent necessary, the 
Secretary shall remeasure a vessel to which this chapter applies if 
. . . the vessel or the use of its space is changed in a way that 
substantially affects its tonnage.''); See also 46 CFR 69.19(a).
---------------------------------------------------------------------------

    The Coast Guard's current interpretation, which provides for 
inclusion of portable spaces as we describe in Comments 6 through 13 
above, is long-standing and is understood by all authorized measurement 
organizations. If owners are not contacting authorized measurement 
organizations prior to changes involving portable spaces, they may be 
violating 46 CFR 69.19(a). The other possible source of costs would be 
owners who do contact an authorized measurement organization as 
required, are informed that the vessel does need to be remeasured due 
to changes involving portable spaces, but then fail to have it 
remeasured. We reached out to authorized measurement organizations to 
inquire about this possibility, but did not learn of any such 
communications.
    To summarize, this final rule codifies current, long-standing 
interpretations, including provisions for portable spaces and frame 
openings. Although we received comments related to compliance with 
these two interpretations, public comments did not indicate that the 
codification of tonnage interpretations would affect the current 
compliance level. As such, we conclude that while this rulemaking does 
not provide relief for current business concerns, it also does not 
impose additional regulatory costs.
    23. One commenter expressed preference for the regulatory 
alternative discussed in the NPRM of codifying all published Coast 
Guard interpretations in the tonnage regulations, and not just

[[Page 18707]]

the principal interpretations as we proposed in the NPRM. This 
commenter stated that interpretations characterized as ``vague'' and 
``flexible'' have given rise to a consulting niche known as ``tonnage 
experts'' and that the Coast Guard refers requests for interpretations 
to authorized measurement organizations, rather than issuing uniform 
interpretations.
    We acknowledge the commenter's stated preference and 
characterization of published interpretations, but do not find the 
commenter persuasive in arguing for codifying all interpretations. We 
exercise considerable care when developing such interpretations, which 
involves a comprehensive review of all related decisions, rulemakings, 
legislative history, international interpretations and similar 
documents. Consequently, once published, the interpretations are not 
substantively changed, although they may be updated or expanded upon to 
address new situations that arise. Further, although we routinely refer 
owners to the measurement organizations for detailed design reviews as 
part of the tonnage measurement process, the measurement organizations 
do not have the authority to interpret the tonnage regulations on the 
Coast Guard's behalf. Accordingly, we believe that the regulatory 
approach we are using best serves the public interest, by facilitating 
our timely publication of interpretations while avoiding compliance 
difficulties with an overly detailed regulation.
    24. One commenter requested an additional public meeting 
specifically to address two changes in the NPRM -- the proposed new 
tonnage applicability section, and the proposed new section on 
treatment of novel type vessels under the Simplified Measurement 
System. This commenter cited general concerns with the policy upon 
which the new tonnage applicability section is based, and the need to 
discuss the matter of novel type vessels, taking into consideration 
related IMO work. The commenter also requested a public meeting prior 
to any interim rulemaking.
    We believe that we provided sufficient opportunity for public input 
on these sections. This includes our explanation of them and invitation 
for comments at the public meeting held on June 5, 2014. As reflected 
in the meeting synopsis available in the docket, no such concerns were 
raised. Further, we see no need for an interim rulemaking. Accordingly, 
and in view of the nature of the other comments we received, we believe 
that the requested additional public meetings were not warranted, and 
would have unnecessarily delayed issuance of this final rule.

B. Additional Changes

    In the paragraphs below, we discuss additional changes to the 
NPRM's proposed regulatory text, which we identified when developing 
this final rule, along with the reasons for implementing these changes. 
These changes do not result in any new requirements substantively 
different from those in the NPRM.
    We organized the discussion according to the section number in 
which each change will appear in the finalized regulatory text. Changes 
of a strictly clerical nature are not discussed.
Sec.  69.9 Definitions
    To facilitate understanding of the tonnage regulations, we revised 
the regulatory text to include the new term ``Formal Measurement 
System,'' which is used in the tonnage measurement law to describe 
Standard and Dual measurement. We included Convention measurement in 
this definition, to allow for differentiation between those measurement 
systems that employ a detailed computational method using measurements 
of the entire vessel (i.e., the Convention, Standard, and Dual 
Measurement Systems) and the Simplified measurement, which employs a 
simple computational method using hull dimensions as the principal 
inputs. For clarity and completeness, we also revised the NPRM's 
proposed new definition for the term ``remeasurement'' to reflect that 
remeasurement includes assigning tonnages or registered dimensions 
under a different measurement system. This is consistent with the use 
of this term in the tonnage measurement law and Coast Guard policy.
Sec.  69.11 Determining the measurement system or systems for a 
particular vessel
    To facilitate understanding of the tonnage regulations, we revised 
the regulatory text to include the new term ``Formal Measurement 
System'' when referring to the Convention, Standard, and Dual 
Measurement Systems. We also added the parenthetical phrase ``(except a 
vessel that engages on a foreign voyage)'' in the paragraph addressing 
applicability of the Convention Measurement System to older U.S. flag 
vessels. This phrase was inadvertently omitted during the regulatory 
development process, and is necessary to ensure the regulatory text has 
the same effect as provided for by the tonnage measurement law, and the 
existing tonnage regulations. Additionally, for clarity we removed the 
regulatory text regarding voyage types for Simplified measurement of 
non-self-propelled and pleasure vessels. The tonnage measurement law 
provides for such measurement without regard to voyage type.
Sec.  69.17 Application for measurement services
    For clarity and completeness, we revised the regulatory text to 
distinguish between Formal measurement services, which are provided by 
authorized measurement organizations, and Simplified measurement 
services, which are provided by the Coast Guard. The revised text 
identifies where Simplified measurement applications may be obtained, 
and refers to the appropriate section of the tonnage regulations for 
requirements on their disposition.
Sec.  69.19 Remeasurement
    For consistency with the changes to Sec.  69.11 described above, we 
revised the regulatory text to distinguish between reporting 
requirements for vessels requiring Formal, as opposed to Simplified, 
measurement services.

C. Change Summary

    Table 1 summarizes the changes to the NPRM's proposed regulatory 
text made in this final rule, along with the additional changes we made 
when finalizing the rule excepting those of a strictly clerical nature. 
The table indicates the type of, and reason for, each change. Except as 
noted in Table 1, we adopted as final all changes proposed in the NPRM.

[[Page 18708]]



                       Table 1--Summary of Changes
------------------------------------------------------------------------
           Description of change                  Reason for change
------------------------------------------------------------------------
                            Subpart A-General
------------------------------------------------------------------------
                            69.9 Definitions
------------------------------------------------------------------------
Adds the new tonnage measurement term        Facilitates understanding
 ``Formal Measurement System''.               of the regulations.
Revises the definition for the term          Clarity and completeness.
 ``remeasurement'' to address measurement
 under additional systems.
------------------------------------------------------------------------
    Sec.   69.11 Determining the measurement system or systems for a
                            particular vessel
------------------------------------------------------------------------
Revises the section to incorporate the term  Facilitates understanding
 ``Formal Measurement System'' when           of the regulations.
 referencing the related systems. Adds the
 omitted parenthetical phrase ``(except a
 vessel that engages on a foreign voyage)''
 and amends language to clarify that
 Simplified measurement is not dependent on
 voyage type.
------------------------------------------------------------------------
            Sec.   69.17 Application for measurement services
------------------------------------------------------------------------
Revises the section to distinguish between   Clarity and completeness.
 Formal and Simplified measurement services.
Amends the requirements to make early        Response to comment.
 submission of applications recommendatory,
 rather than mandatory.
------------------------------------------------------------------------
          Sec.   69.19 Remeasurement and adjustment of tonnage
------------------------------------------------------------------------
Revises the section to distinguish between   Clarity and completeness.
 Formal and Simplified measurement services.
------------------------------------------------------------------------
            Subpart C--Standard Regulatory Measurement System
------------------------------------------------------------------------
                        Sec.   69.103 Definitions
------------------------------------------------------------------------
Replaces the term ``water ballast double     Response to comment.
 bottom'' with the term ``double bottom for
 water ballast''.
------------------------------------------------------------------------
                    Sec.   69.109 Under-deck tonnage
------------------------------------------------------------------------
Replaces the term ``water ballast double     Response to comment.
 bottom'' with the term ``double bottom for
 water ballast''..
------------------------------------------------------------------------
Revises the criteria related to the          Response to comment.
 measurement treatment of oval-shaped frame
 openings.
------------------------------------------------------------------------
          Sec.   69.117 Spaces exempt from inclusion in tonnage
------------------------------------------------------------------------
Adds the regulatory text on treatment of     Response to comment.
 passenger support spaces, which was
 inadvertently omitted in the NPRM.
------------------------------------------------------------------------

VI. Regulatory Analyses

    The Coast Guard developed this rule after considering numerous 
statutes and Executive Orders (E.O.s) related to rulemaking. Below we 
summarize our analyses based on these statutes or E.O.s.

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 rule has not been designated a ``significant 
regulatory action,'' under section 3(f) of Executive Order 12866. 
Accordingly, the rule has not been reviewed by the Office of Management 
and Budget.
    A final regulatory assessment follows. This assessment replicates 
the regulatory assessment of the NPRM except for changes to reflect 
amendments to the NPRM's regulatory text made by this final rule, as 
summarized in Table 1.
    We received comments on economic impacts only for the provisions 
relating to portable enclosed spaces and openings in ordinary frames. 
In previous discussions of Comment 22 in section V.A., we respond to 
these comments and explain our rationale for maintaining the ``no 
cost'' characterization for these two provisions. We have no 
information from either comments or other sources to lead us to change 
our ``no cost'' assessment for the other codification provisions. We 
retain our ``no cost'' determination from the NPRM.
    The primary objective of the final rule is to implement amendments 
to the tonnage measurement law made by the 2010 Coast Guard 
Authorization Act. One amendment precludes the owner of a foreign flag 
vessel of 79 feet or more in length that engages solely on U.S. 
domestic voyages from obtaining a future measurement under the 
Regulatory Measurement System, with an exception allowed for a Canadian 
flag vessel operating solely on the Great Lakes. The remaining 
amendments eliminate inconsistencies and incorporate clarifications or 
updates that are either consistent with long-standing Coast Guard 
policy or reflective of current Coast Guard practice.
    In addition, the Coast Guard seeks to facilitate understanding of, 
and compliance with, existing tonnage regulations by codifying 
principal technical interpretations that have been issued by the Coast 
Guard to keep pace with developments in vessel designs. These 
interpretations are included in Coast Guard policy documents made 
available to the public via Coast Guard

[[Page 18709]]

Web sites, and are used by authorized measurement organizations that 
perform tonnage work on the Coast Guard's behalf.
    Table 2 provides a summary of the rule's costs and benefits.

                 Table 2--Summary of the Rule's Impacts
------------------------------------------------------------------------
                   Category                             Summary
------------------------------------------------------------------------
Applicability................................  U.S. and foreign flag
                                                vessels to which a law
                                                of the United States
                                                applies based on vessel
                                                tonnage.
Affected Population..........................  Vessels that will be
                                                initially measured or
                                                remeasured under the
                                                tonnage regulations,
                                                estimated at 10,000
                                                vessels per year.
Cost Impacts.................................  No additional costs as
                                                changes are consistent
                                                with current practice or
                                                policy.
Non-quantified Benefits......................  Adds flexibility to use
                                                foreign flag tonnages.
                                                Clarifies tonnage
                                                measurement
                                                requirements.
                                                Facilitates
                                                understanding of
                                                regulations, leading to
                                                more effective and
                                                efficient tonnage
                                                certifications.
------------------------------------------------------------------------

Affected Population
    The tonnage regulations, as amended by this rule, apply to all U.S. 
and foreign flag vessels to which the application of a law of the 
United States depends on the vessel's tonnage. Once assigned initially, 
tonnages remain valid until a vessel changes flag, or undergoes a 
change that substantially affects its tonnage.
    Because none of the changes are retroactive, the population 
potentially affected by this rulemaking is limited to vessels that will 
be measured in the future, including those remeasured following 
alterations, modifications, or other changes substantially affecting 
their tonnage. The Coast Guard estimates this population to be 
approximately 10,000 vessels each year, based on the 8,615 simplified 
measurement applications and 386 formal measurement applications 
submitted annually, and our estimate of approximately 1,000 additional 
vessels that are measured annually without the submission of a 
measurement application.\2\
---------------------------------------------------------------------------

    \2\ Refer to Collection of Information 1625-0022 for more 
comprehensive information on measurement application submissions. 
The Coast Guard does not collect information on measurement of 
vessels for which measurement applications are not submitted, but 
estimates that on the order of 1,000 such vessels are measured per 
year based on the number of inquiries received by the Marine Safety 
Center from the public and Coast Guard field units.
---------------------------------------------------------------------------

Cost Impacts
    Table 3 details 117 changes to the tonnage regulations in the rule, 
with an assessment of the cost impacts of each change. A summary 
follows:
     The single change to implement the statutory amendment 
that precludes certain foreign flag vessels of 79 feet or more in 
length from being measured under the Regulatory Measurement System 
could potentially prevent operation of a future vessel in a similar 
manner to that of currently operating vessels. No such vessels have 
been brought into service within the last 10 years. Further, other 
options to operate similar vessels (e.g., under U.S. flag) are 
available. Thus, no cost impact from this change is expected.
     The six remaining changes needed for statutory alignment 
are consistent with current Coast Guard interpretations or industry 
practice, and will not result in any additional cost as described in 
the following table.
     The 26 changes related to codification of principal Coast 
Guard technical interpretations will result in no additional cost, 
because the interpretations have been used for tonnage work for 
multiple years.
     The 84 changes labeled ``Administrative'' are of a non-
substantive nature and merely provide clarity and will not result in 
any additional cost.
     As noted in the resolution to Comment 22 in section V.A., 
we concluded that this final rule is cost neutral. Accordingly, we 
retain our ``no cost'' determination from the NPRM for this final rule.

          Table 3--Assessment of the Cost Impacts of This Rule
------------------------------------------------------------------------
      Description of change         Type of change        Cost impact
------------------------------------------------------------------------
                           Subpart A--General
------------------------------------------------------------------------
                           Sec.   69.1 Purpose
------------------------------------------------------------------------
Eliminates the disparate          Mandatory           No cost.
 treatment of documented and       statutory           Consistent with
 undocumented U.S. flag vessels.   alignment.          policy in effect
                                                       since 1993 (NVIC
                                                       11-93).
Expands the explanation of the    Administrative:     No cost.
 use of tonnage to include         Clarification on
 environmental and security        tonnage usage.
 purposes.
Relocates the descriptions of     Administrative:     No cost.
 each measurement system to the    Editorial change
 corresponding definitions in      to improve
 Sec.   69.9.                      usability.
------------------------------------------------------------------------
                        Sec.   69.3 Applicability
------------------------------------------------------------------------
Expands the scope to apply to     Mandatory           No cost.
 foreign flag vessels.             statutory           Consistent with
                                   alignment.          Coast Guard
                                                       practice since
                                                       the 1986
                                                       amendments to the
                                                       tonnage
                                                       measurement law.
Removes the 5 net ton minimum     Administrative:     No cost.
 size restriction.                 Clarification       Consistent with
                                   that statutory      policy in effect
                                   requirements for    since 1993 (NVIC
                                   measurement apply   11-93).
                                   to vessels of all
                                   sizes.
------------------------------------------------------------------------

[[Page 18710]]

 
         Sec.   69.5 Vessels required or eligible to be measured
------------------------------------------------------------------------
Deletes section to align with     Administrative:     No cost.
 revised Sec.   69.3.              Editorial
                                   realignment.
------------------------------------------------------------------------
        Sec.   69.7 Vessels transiting the Panama and Suez Canals
------------------------------------------------------------------------
Deletes requirement for vessels   Administrative:     No cost.
 transiting the Panama and Suez    Update to reflect
 Canals to be measured under the   lack of Coast
 respective Panama and Suez        Guard
 Canal measurement systems.        responsibility
                                   for canal
                                   measurements,
                                   consistent with
                                   statutory changes.
------------------------------------------------------------------------
                         Sec.   69.9 Definitions
------------------------------------------------------------------------
Adds definitions for certain      Administrative:     No cost.
 tonnage measurement terms.        New definitions.
Revises existing definitions for  Administrative:     No cost.
 certain tonnage measurement       Clarifications
 terms.                            and updates.
Changes the term ``vessel         Mandatory           No cost.
 engaged on a foreign voyage''     statutory           Consistent with
 to ``vessel that engages on a     alignment.          current practice.
 foreign voyage''.
------------------------------------------------------------------------
    Sec.   69.11 Determining the measurement system or systems for a
                            particular vessel
------------------------------------------------------------------------
Eliminates the disparate          Mandatory           No cost.
 treatment of documented and       statutory           Consistent with
 undocumented U.S. flag vessels.   alignment.          policy in effect
                                                       since 1993 (NVIC
                                                       11-93).
Precludes certain foreign flag    Mandatory           No cost. Not
 vessels of 79 feet or more in     statutory           retroactive. No
 length from being measured        alignment.          such foreign
 under the Regulatory                                  vessels have been
 Measurement System.                                   brought into
                                                       service using the
                                                       regulatory
                                                       measurement
                                                       system in recent
                                                       years.
Relocates ``how tonnage           Administrative:     No cost.
 thresholds are applied''          Editorial change.
 language to Sec.   69.20.
Establishes new nomenclature      Administrative:     No cost.
 consistent with revisions to      Editorial change.
 Sec.   69.9.
Amends language to clarify that   Administrative:     No cost.
 Simplified measurement is not     Clarification.
 dependent on voyage type.
------------------------------------------------------------------------
   Sec.   69.13 Deviating from the provisions of a measurement system
------------------------------------------------------------------------
Requires authorized measurement   Administrative:     No cost.
 organizations to observe Coast    Clarifies the       Consistent with
 Guard interpretations of the      extent of           written
 tonnage measurement law and       measurement         agreements with
 regulations.                      organization        measurement
                                   authority.          organizations,
                                                       and policy in
                                                       effect since 1998
                                                       (see MTN 01-98
                                                       and MTN 01-99).
Identifies that Coast Guard       Administrative:     No cost.
 interpretations may be obtained   Facilitates
 from the Marine Safety Center.    public access to
                                   interpretive
                                   documents.
Allows grandfathering of          Administrative:     No cost. Precludes
 superseded tonnage measurement    Facilitates         mandatory
 rules.                            transition to       retroactive
                                   codified            application of
                                   interpretations.    codified
                                                       interpretations.
------------------------------------------------------------------------
            Sec.   69.15 Authorized measurement organizations
------------------------------------------------------------------------
Establishes new nomenclature      Administrative:     No cost.
 consistent with revisions to      Editorial change.
 Sec.   69.9 and Sec.   69.11.
Deletes information that is       Administrative:     No cost.
 repeated in the regulations or    Editorial change.
 is available elsewhere.
------------------------------------------------------------------------
            Sec.   69.17 Application for measurement services
------------------------------------------------------------------------
Identifies that the vessel owner  Administrative:     No cost.
 is responsible to apply for       Clarification
 vessel measurement or             consistent with
 remeasurement.                    current practice.
Omits reference to boiler         Administrative:     No cost.
 installation as indicator of      Update to reflect
 stage of vessel construction.     decreasing use of
                                   steam propulsion.
Distinguishes between Formal and  Administrative:     No cost.
 Simplified measurement services.  Clarification and
                                   update.
Provides for early submission of  Administrative:     No cost.
 applications to be                Update.
 recommendatory, rather than
 mandatory.
------------------------------------------------------------------------
          Sec.   69.19 Remeasurement and adjustment of tonnage
------------------------------------------------------------------------
Clarifies circumstances under     Administrative:     No cost.
 which a vessel must undergo       Clarification.
 remeasurement.

[[Page 18711]]

 
Distinguishes between Formal and  Administrative:     No cost.
 Simplified measurement services.  Clarification and
                                   update.
------------------------------------------------------------------------
                Sec.   69.20 Applying tonnage thresholds
------------------------------------------------------------------------
Provides comprehensive            Administrative:     No cost.
 requirements on how tonnage       Facilitates         Consistent with
 thresholds are to be applied.     public              the tonnage
                                   understanding of    measurement law
                                   long-standing       and policy in
                                   statutory           effect since 1993
                                   requirements.       (See NVIC 11-93).
------------------------------------------------------------------------
                         Sec.   69.25 Penalties
------------------------------------------------------------------------
Updates civil penalty amounts as  Administrative:     No cost.
 per the Federal Civil Penalties   Update.
 Inflation Adjustment Act.
------------------------------------------------------------------------
         Sec.   69.27 Delegation of authority to measure vessels
------------------------------------------------------------------------
Revises section to reflect the    Administrative:     No cost.
 nomenclature in Sec.   69.11.     Editorial change.
Deletes outdated reference to 49  Administrative:     No cost.
 CFR 1.46.                         Update.
------------------------------------------------------------------------
       Sec.   69.28 Acceptance of measurement by a foreign country
------------------------------------------------------------------------
Adds provisions for accepting     Mandatory           No cost. Provides
 tonnage assignments for certain   statutory           flexibility to
 foreign flag vessels.             alignment.          use foreign flag
                                                       tonnages.
------------------------------------------------------------------------
                Subpart B--Convention Measurement System
------------------------------------------------------------------------
                        Sec.   69.53 Definitions
------------------------------------------------------------------------
Adds definition for tonnage       Administrative:     No cost.
 measurement term.                 New definition.
Revises existing tonnage          Administrative:     No cost.
 measurement terms consistent      Editorial change.
 with revisions to Sec.   69.9.
------------------------------------------------------------------------
            Sec.   69.55 Application for measurement services
------------------------------------------------------------------------
Requires the ``delivery date''    Administrative:     No cost.
 to be specified on a tonnage      Clarification.
 application instead of the less
 specific ``build date''.
------------------------------------------------------------------------
                     Sec.   69.57 Gross tonnage ITC
------------------------------------------------------------------------
Revises nomenclature consistent   Administrative:     No cost.
 with revisions to Sec.   69.9.    Clarification.
------------------------------------------------------------------------
                      Sec.   69.59 Enclosed spaces
------------------------------------------------------------------------
Incorporates interpretations on   Codification:       No cost.
 the treatment of portable         Principal           Interpretation in
 spaces.                           interpretation      effect since 1999
                                   from policy         (NVIC 11-93 CH-2
                                   document.           and MTN 01-99).
------------------------------------------------------------------------
                      Sec.   69.61 Excluded spaces
------------------------------------------------------------------------
Incorporates interpretations on   Codification:       No cost.
 treatment of qualifying spaces    Principal           Interpretation in
 as excluded spaces ``open to      interpretation      effect since 1999
 the sea''.                        from policy         (MTN 01-99).
                                   document.
------------------------------------------------------------------------
                      Sec.   69.63 Net tonnage ITC
------------------------------------------------------------------------
Revises nomenclature consistent   Administrative:     No cost.
 with revisions to Sec.   69.9.    Clarification.
------------------------------------------------------------------------
                   Sec.   69.65 Calculation of volumes
------------------------------------------------------------------------
Removes language addressing       Administrative:     No cost. Reflects
 specific calculation methods to   Clarification.      increased use of
 ensure that accepted naval                            computer-based
 architecture practices are used                       computational
 in all cases.                                         methods.
------------------------------------------------------------------------
                    Sec.   69.69 Tonnage certificates
------------------------------------------------------------------------
Incorporates more complete        Administrative:     No cost.
 requirements from the 1969        Clarification.
 Tonnage Convention for
 reissuance of an International
 Tonnage Certificate (1969)
 under certain circumstances,
 including the 3-month grace
 period following flag transfer.

[[Page 18712]]

 
Requires issuance of a U.S.       Mandatory           No cost.
 Tonnage Certificate as evidence   statutory           Consistent with
 of measurement under the          alignment.          policy in effect
 Convention Measurement System                         since 1998 (MTN
 under certain circumstances,                          01-98).
 and that the International
 Tonnage Certificate (1969) is
 delivered to the vessel's owner
 or master.
------------------------------------------------------------------------
                   Sec.   69.71 Change of net tonnage
------------------------------------------------------------------------
Clarifies that the Commandant     Administrative:     No cost.
 determines the magnitude of       Clarification.
 alterations of a major
 character.
------------------------------------------------------------------------
    Sec.   69.73 Treatment of unique or otherwise novel type vessels
------------------------------------------------------------------------
Revises section title and         Administrative:     No cost.
 clarifies that submission of      Clarification.
 plans and sketches is not
 required in all cases.
------------------------------------------------------------------------
                          Sec.   69.75 Figures
------------------------------------------------------------------------
Updates the existing figures to   Administrative:     No cost.
 resolve minor labeling            Clarifications
 inconsistencies, and for visual   and updates.
 clarity.
------------------------------------------------------------------------
            Subpart C--Standard Regulatory Measurement System
------------------------------------------------------------------------
                          Sec.   69.101 Purpose
------------------------------------------------------------------------
Reflects revised title of         Administrative:     No cost.
 subpart C.                        Clarification.
------------------------------------------------------------------------
                        Sec.   69.103 Definitions
------------------------------------------------------------------------
Adds definitions for tonnage      Administrative:     No cost.
 measurement terms.                New definitions.
Revises existing definitions for  Administrative:     No cost.
 tonnage measurement terms.        Clarifications
                                   and updates.
------------------------------------------------------------------------
           Sec.   69.105 Application for measurement services
------------------------------------------------------------------------
Requires the ``delivery date''    Administrative:     No cost.
 to be specified on a tonnage      Clarification.
 application instead of the less
 specific ``build date''.
------------------------------------------------------------------------
              Sec.   69.107 Gross and net register tonnages
------------------------------------------------------------------------
Revises nomenclature consistent   Administrative:     No cost.
 with revisions to Sec.   69.9.    Clarification.
Clarifies that the U.S. Tonnage   Administrative:     No cost.
 Certificate reflects              Clarification.
 measurement for the Convention
 and Regulatory Measurement
 Systems, as applicable, and
 need not be carried aboard.
------------------------------------------------------------------------
                  Sec.   69.108 Uppermost complete deck
------------------------------------------------------------------------
Establishes comprehensive         Codification:       No cost.
 requirements related to the       Principal           Interpretations
 ``uppermost complete deck''.      interpretations     in effect since
                                   from policy         2003 (MTN 01-99
                                   document.           CH-5).
------------------------------------------------------------------------
                    Sec.   69.109 Under-deck tonnage
------------------------------------------------------------------------
Clarifies that enumerated decks   Administrative:     No cost.
 are used to determine the         Clarification.
 tonnage deck.
Establishes how to determine      Codification:       No cost.
 enumerated decks.                 Principal           Interpretation in
                                   interpretation      effect since 2003
                                   from policy         (MTN 01-99 CH-5).
                                   document.
Replaces the phrase ``at          Codification:       No cost.
 different levels from stem to     Principal           Interpretation in
 stern'' with the more commonly    interpretation      effect since 2005
 used term ``stepped''.            from policy         (MTN 01-99 CH-7).
                                   document.
Establishes minimum breadth and   Codification:       No cost.
 length criteria for steps used    Principal           Interpretation in
 in establishing the line of the   interpretation      effect since 2005
 tonnage deck.                     from policy         (MTN 01-99 CH-7).
                                   document.
Reflects that the frames          Administrative:     No cost.
 evaluated in determining the      Clarification.
 tonnage length should be
 ``ordinary frames''.
Deletes the sentence ``when a     Codification:       No cost.
 headblock extends . . .           Principal           Interpretation in
 thickness of an ordinary side     interpretation      effect since 2003
 frame and shell plating''.        from policy         (MTN 01-99 CH-5).
                                   document.
Provides for a maximum reduction  Codification:       No cost.
 in the tonnage length of 8\1/2\   Principal           Interpretation in
 feet.                             interpretation      effect since 2003
                                   from policy         (MTN 01-99 CH-5).
                                   document.
Requires that the under-deck      Administrative:     No cost.
 sections, referred to as          Clarification.
 ``tonnage stations,'' be
 sequentially numbered.
Replaces the terms ``double       Administrative:     No cost.
 bottom'' and ``cellular double    Clarification.
 bottom'' with ``double bottom
 for water ballast''.
Deletes the existing language     Codification:       No cost.
 regarding outside shaft tunnel    Principal           Interpretation in
 exclusions and inserts new        interpretation      effect since 2005
 ``open to the sea'' language.     from policy         (MTN 01-99 CH-7).
                                   document.
Incorporates the term             Administrative:     No cost.
 ``uppermost complete deck''.      Clarification.

[[Page 18713]]

 
Provides requirements on the      Codification:       No cost.
 measurement treatment of          Principal           Interpretations
 ordinary frames in the under-     interpretations     on different
 deck, including construction,     from policy         sized framing in
 frame spacing, different sized    document, with      effect since 1950
 frames, frame openings, and       revised criteria    (Treasury
 asymmetrical framing.             on oval frame       Decision 52578).
                                   openings.           Other
                                                       interpretations
                                                       in effect since
                                                       2002 (MTN 01-99
                                                       CH-4). Revised
                                                       criteria to
                                                       permit more
                                                       flexibility for
                                                       oval openings
                                                       without tonnage
                                                       impact.
------------------------------------------------------------------------
                   Sec.   69.111 Between-deck tonnage
------------------------------------------------------------------------
Replaces the phrase ``at          Codification:       No cost.
 different levels from stem to     Principal           Interpretation in
 stern'' with the more commonly    interpretation      effect since 2005
 used term ``stepped''.            from policy         (MTN 01-99 CH-7).
                                   document.
Requires a minimum size for a     Codification:       No cost.
 longitudinal step being used as   Principal           Interpretation in
 the basis for establishing the    interpretation      effect since 2005
 line of the uppermost complete    from policy         (MTN 01-99 CH-7).
 deck.                             document.
Replaces the phrase ``face of     Administrative:     No cost.
 the normal side frames'' with     Clarification.
 the phrase ``line of the normal
 frames''.
------------------------------------------------------------------------
                  Sec.   69.113 Superstructure tonnage
------------------------------------------------------------------------
Incorporates interpretations on   Codification:       No cost.
 treatment of portable spaces.     Principal           Interpretations
                                   interpretations     in effect since
                                   from policy         1997 (NVIC 11-93
                                   document.           CH-2).
Clarifies that measurements are   Administrative:     No cost.
 to be taken to the ``line of      Clarification.
 the normal frames''.
Defines superstructure tonnage    Administrative:     No cost.
 as the tonnage of all             Clarification.
 superstructure spaces.
------------------------------------------------------------------------
                  Sec.   69.115 Excess hatchway tonnage
------------------------------------------------------------------------
Revises nomenclature consistent   Administrative:     No cost.
 with revisions to Sec.   69.9.    Clarification.
------------------------------------------------------------------------
          Sec.   69.117 Spaces exempt from inclusion in tonnage
------------------------------------------------------------------------
Revises nomenclature consistent   Administrative:     No cost.
 with revisions to Sec.   69.9.    Editorial change.
Revises the definition of         Codification:       No cost.
 passenger space to preclude       Principal           Interpretation in
 passenger support spaces and      interpretation      effect since 2005
 spaces used by both passengers    from policy         (MTN 01-99 CH-7).
 and crew from being exempted as   document.
 passenger space.
Establishes the minimum height    Codification:       No cost.
 above the uppermost complete      Principal           Interpretation in
 deck for exemptible passenger     interpretation      effect since 2005
 spaces.                           from policy         (MTN 01-99 CH-7).
                                   document.
Removes the prohibition of        Codification:       No cost.
 exempting a passenger space as    Principal           Interpretation in
 an open space when it has         interpretation      effect since 2003
 berthing accommodations.          from policy         (MTN 01-99 CH-5).
                                   document.
Establishes requirements on open  Codification:       No cost.
 structure exemptions for          Principal           Interpretation in
 structures divided into           interpretation      effect since 2005
 compartments.                     from policy         (MTN 01-99 CH-7).
                                   document.
Prohibits the progression of      Codification:       No cost.
 open space vertically between     Principal           Interpretations
 structures and allows a space     interpretations     in effect since
 outside a structure's boundary    from policy         2003 (MTN 01-99
 bulkhead meeting certain          document.           CH-6).
 conditions to be considered
 open to the weather.
Provides end opening and          Codification:       No cost.
 interior space circulation        Principal           Interpretations
 requirements.                     interpretations     in effect since
                                   from policy         2003 (MTN 01-99
                                   document.           CH-6).
Requires compartments from which  Codification:       No cost.
 open space progresses to meet     Principal           Interpretations
 certain opening requirements.     interpretations     in effect since
                                   from policy         2003 (MTN 01-99
                                   document.           CH-6).
Requires temporary cover plates   Codification:       No cost.
 to be fitted against the          Principal           Interpretations
 weather side of a bulkhead in     interpretations     in effect since
 applying open-to-the-weather      from policy         2003 (MTN 01-99
 criteria.                         document.           CH-6).
Specifies that in applying the    Administrative:     No cost.
 size requirements of Sec.         Clarification.
 69.117(d)(7), an opening need
 not also meet the size
 requirements of Sec.
 69.117(d)(2).
Provides for exemption of space   Codification:       No cost.
 in way of opposite side           Principal           Interpretations
 openings.                         interpretations     in effect since
                                   from policy         2003 (MTN 01-99
                                   document.           CH-6).
Replaces the phrase ``next lower  Administrative:     No cost.
 deck'' with the phrase            Clarification.
 ``uppermost complete deck''.
Precludes battening, caulking,    Codification:       No cost.
 seals, or gaskets of any          Principal           Interpretation in
 material from being used in       interpretation      effect since 2003
 association with a middle line    from policy         (MTN 01-99 CH-6).
 opening cover.                    document.
Deletes the requirement to        Administrative:     No cost. Reflects
 provide calculations in a         Update.             increased use of
 specific format.                                      computer-based
                                                       computational
                                                       methods.
Requires use of the zone of       Codification:       No cost.
 influence method to ensure        Principal           Interpretation in
 accuracy and consistency in       interpretation      effect since 2003
 calculating volumes of exempted   from policy         (MTN 01-99 CH-6).
 under-deck spaces.                document.
------------------------------------------------------------------------
               Sec.   69.119 Spaces deducted from tonnage
------------------------------------------------------------------------
Revises nomenclature consistent   Administrative:     No cost.
 with revisions to Sec.   69.9.    Editorial change.
------------------------------------------------------------------------

[[Page 18714]]

 
                   Sec.   69.121 Engine room deduction
------------------------------------------------------------------------
Revises nomenclature consistent   Administrative:     No cost.
 with revisions to Sec.   69.9.    Editorial change.
------------------------------------------------------------------------
                          Sec.   69.123 Figures
------------------------------------------------------------------------
Updates the existing figures to   Administrative:     No cost.
 resolve minor labeling            Clarifications
 inconsistencies, and for visual   and updates.
 clarity.
------------------------------------------------------------------------
              Subpart D--Dual Regulatory Measurement System
------------------------------------------------------------------------
                          Sec.   69.151 Purpose
------------------------------------------------------------------------
Reflects the revised title of     Administrative:     No cost.
 subpart D.                        Clarification.
Revises nomenclature consistent   Administrative:     No cost.
 with revisions to Sec.   69.9.    Editorial change.
------------------------------------------------------------------------
                 Sec.   69.153 Application of other laws
------------------------------------------------------------------------
Revises nomenclature consistent   Administrative:     No cost.
 with revisions to Sec.   69.9.    Editorial change.
------------------------------------------------------------------------
                 Sec.   69.155 Measurement requirements
------------------------------------------------------------------------
Revises nomenclature consistent   Administrative:     No cost.
 with revisions to Sec.   69.9     Editorial change.
 and deletes reference to the
 ``Dual Measurement System''.
------------------------------------------------------------------------
                        Sec.   69.157 Definitions
------------------------------------------------------------------------
Revises nomenclature consistent   Administrative:     No cost.
 with revisions to Sec.   69.9.    Editorial change.
------------------------------------------------------------------------
           Sec.   69.159 Application for measurement services
------------------------------------------------------------------------
Deletes reference to the          Administrative:     No cost.
 ``Standard Measurement System''.  Editorial change.
------------------------------------------------------------------------
              Sec.   69.161 Gross and net register tonnages
------------------------------------------------------------------------
Revises nomenclature consistent   Administrative:     No cost.
 with revisions to Sec.   69.9.    Editorial change.
Clarifies that the U.S. Tonnage   Administrative:     No cost.
 Certificate reflects              Clarification.
 measurement for the Convention
 and Regulatory Measurement
 Systems, as applicable, and
 need not be carried aboard.
------------------------------------------------------------------------
                    Sec.   69.163 Under-deck tonnage
------------------------------------------------------------------------
Deletes reference to the ``Dual   Administrative:     No cost.
 Measurement System''.             Editorial change.
------------------------------------------------------------------------
                   Sec.   69.165 Between-deck tonnage
------------------------------------------------------------------------
Deletes reference to the ``Dual   Administrative:     No cost.
 Measurement System''.             Editorial change.
------------------------------------------------------------------------
                  Sec.   69.167 Superstructure tonnage
------------------------------------------------------------------------
Deletes reference to the ``Dual   Administrative:     No cost.
 Measurement System''.             Editorial change.
------------------------------------------------------------------------
           Sec.   69.169 Spaces exempt from inclusion tonnage
------------------------------------------------------------------------
Revises nomenclature consistent   Administrative:     No cost.
 with revisions to Sec.   69.9.    Editorial change.
------------------------------------------------------------------------
    Sec.   69.173 Tonnage assignments for vessels with only one deck
------------------------------------------------------------------------
Revises nomenclature consistent   Administrative:     No cost.
 with revisions to Sec.   69.9.    Editorial change.
------------------------------------------------------------------------
    Sec.   69.175 Tonnage assignments for vessels with a second deck
------------------------------------------------------------------------
Revises nomenclature consistent   Administrative:     No cost.
 with revisions to Sec.   69.9.    Editorial change.
Clarifies that the vessel owner   Administrative:     No cost.
 may elect to use the lower set    Clarification.
 of tonnages when opting for
 single tonnage assignment under
 the Dual Measurement System.
Requires a load line to be        Codification:       No cost.
 assigned at a level below the     Principal           Interpretation in
 line of the second deck.          interpretation      effect since 2003
                                   from policy         (MTN 01-99 CH-5).
                                   document.
------------------------------------------------------------------------
                         Sec.   69.177 Markings
------------------------------------------------------------------------
Revises nomenclature consistent   Administrative:     No cost.
 with revisions to Sec.   69.9.    Editorial change.

[[Page 18715]]

 
Adds exception to allow the line  Codification:       No cost.
 of the second deck to be marked   Principal           Interpretation in
 on the side of the vessel if      interpretation      effect since 2003
 the second deck is the actual     from policy         (MTN 01-99 CH-5).
 freeboard deck for purposes of    document.
 load line assignment.
------------------------------------------------------------------------
           Sec.   69.181 Locating the line of the second deck
------------------------------------------------------------------------
Updates the existing examples     Administrative:     No cost.
 for visual clarity.               Clarifications
                                   and updates.
------------------------------------------------------------------------
                          Sec.   69.183 Figures
------------------------------------------------------------------------
Updates the existing figures to   Administrative:     No cost.
 resolve minor labeling            Clarifications
 inconsistencies, and for visual   and updates.
 clarity.
------------------------------------------------------------------------
           Subpart E--Simplified Regulatory Measurement System
------------------------------------------------------------------------
                          Sec.   69.201 Purpose
------------------------------------------------------------------------
Reflects revised title of         Administrative:     No cost.
 subpart E.                        Clarification.
------------------------------------------------------------------------
           Sec.   69.205 Application for measurement services
------------------------------------------------------------------------
Specifies how vessel owners not   Administrative:     No cost. Provides
 seeking documentation should      Clarification.      additional
 process an application for                            guidance.
 simplified measurement.
Specifies that a completed        Administrative:     No cost.
 application for simplified        Clarification.
 measurement serves as evidence
 of measurement under the
 Simplified system.
Specifies the vessel information  Administrative:     No cost.
 required to be provided by the    Clarification.
 owner when completing the
 Application for Simplified
 Measurement.
Deletes reference to a specific   Administrative:     No cost.
 section of the Builders           Removes an
 Certificate and First Transfer    unneeded
 of Title form (CG-1261) to        requirement from
 allow for revisions to this       the regulations.
 form without the need to revise
 regulations.
------------------------------------------------------------------------
                       Sec.   69.207 Measurements
------------------------------------------------------------------------
Relaxes measurement tolerances    Administrative:     No cost.
 consistent with current           Update.
 practice.
------------------------------------------------------------------------
              Sec.   69.209 Gross and net register tonnage
------------------------------------------------------------------------
Revises nomenclature consistent   Administrative:     No cost.
 with revisions to Sec.   69.9.    Editorial change.
Specifies that a vessel's         Administrative:     No cost.
 Certificate of Documentation      Clarification.
 serves as evidence of
 measurement under the
 Simplified system.
------------------------------------------------------------------------
    Sec.   69.211 Treatment of unique or otherwise novel type vessels
------------------------------------------------------------------------
Identifies the Coast Guard        Administrative:     No cost.
 office to contact for questions   Facilitates
 on a vessel for which the         resolutions of
 Simplified measurement rules      questions from
 may not readily be applied.       the public.
------------------------------------------------------------------------

Benefits
    Part 69, subpart A (Sections 69.1-69.29):
    The revisions to 46 CFR part 69, subpart A, will clarify and update 
general tonnage measurement requirements, consistent with the changes 
mandated by the 2010 Coast Guard Authorization Act, and codify certain 
interpretations affecting vessels measured under the four U.S. 
measurement systems. These changes are expected to benefit the public 
through increased regulatory clarity and by adding flexibility to use 
foreign flag tonnages.
    Part 69, subparts B, C, and D (Sections 69.51-69.183):
    The revisions to 46 CFR part 69, subparts B, C, and D, clarify and 
update tonnage measurement requirements, and codify principal 
interpretations of the tonnage technical rules. These changes benefit 
the public through increased regulatory clarity and by facilitating 
understanding of the tonnage regulations, which could help avert costs 
and delays associated with bringing vessels into regulatory compliance.
    Part 69, subpart E (Sections 69.201-69.209):
    The revisions to 46 CFR part 69, subpart E, clarify and update 
tonnage measurement requirements, and are expected to benefit the 
public through increased regulatory clarity.
    Table 4 summarizes the benefits of the final rule.

                      Table 4--Summary of Benefits
------------------------------------------------------------------------
              Requirement                            Benefit
------------------------------------------------------------------------
Part 69, Subpart A (Sections 69.1-        Clarifies tonnage
 69.29).                                  measurement requirements.
                                          Add flexibility to use
                                          of foreign flag tonnages.
Part 69, Subparts B, C, and D (Sections   Clarifies tonnage
 69.51-69.183).                           measurement requirements.

[[Page 18716]]

 
                                          Facilitates the
                                          understanding of tonnage
                                          measurement requirements to
                                          allow more effective and
                                          efficient tonnage
                                          certifications.
Part 69, Subpart E (Sections 69.201-      Clarifies tonnage
 69.209).                                 measurement requirements.
------------------------------------------------------------------------

Alternatives
    The Coast Guard concluded that some changes to the existing tonnage 
regulations are required to implement changes to the tonnage 
measurement law made by the 2010 Coast Guard Authorization Act. Based 
on the preceding discussion, we further concluded that the additional 
changes to the tonnage regulations described above could provide a net 
benefit to the public, and should also be made.
    In arriving at these conclusions, the Coast Guard considered two 
alternatives to the final rule's selected approach in order to maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity).
Alternative 1--Codify All Interpretations
    Alternative 1 would revise the tonnage regulations to incorporate 
not only the changes and principal interpretations of the selected 
alternative, but to also include all published Coast Guard 
interpretations. This would consolidate all tonnage interpretative 
information into one source. Unlike the selected alternative, 
Alternative 1 would induce an additional cost and burden to both 
industry and government due to a lack of flexibility in applying 
regulations.
    Initially, we believed this alternative, when compared to the 
current situation of a regulation not reflective of published 
interpretations, would produce some additional benefit due to the 
increased visibility of both the principal and secondary 
interpretations. We concluded that, over time, new technologies and 
vessel construction practices would lead to difficulties in complying 
with an overly detailed regulation. This would likely lead to 
additional requests for clarifications and interpretations and 
additional rulemakings, potentially causing tonnage certification 
delays and negatively impact design innovations. Based on these 
considerations, we did not accept Alternative 1.
Alternative 2--Incorporate Only Mandatory Changes
    Alternative 2 would amend the tonnage regulations to only 
incorporate changes that reflect the tonnage technical amendments of 
the 2010 Coast Guard Authorization Act, while continuing the Coast 
Guard's practice of communicating tonnage regulation interpretations to 
industry via policy documents. This would sustain the Coast Guard's 
current flexibility in applying tonnage measurement interpretations and 
preclude additional costs to industry. However, it would not clarify 
tonnage measurement requirements or increase the understanding of the 
tonnage measurement regulations. Based on this consideration, we did 
not accept Alternative 2.

B. Small Entities

    The Regulatory Flexibility Act of 1980 (5 U.S.C. 601 et seq.) (RFA) 
and Executive Order 13272 require a review of proposed and final rules 
to assess their impacts on small entities. An agency must prepare an 
initial regulatory flexibility analysis (IRFA) unless it determines and 
certifies that a rule, if promulgated, would not have a significant 
impact on a substantial number of small entities.
    Under the Regulatory Flexibility Act we have considered whether 
this rule would 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.
    For all vessels our economic analysis concludes that this final 
rule will have no cost impact and will not affect the small entities 
described above that own and operate these vessels.
    During the NPRM stage, we certified that this rulemaking will not 
have a significant economic impact on a substantial number of small 
entities. All interested parties were invited to submit data and 
information regarding the potential economic impact that would result 
from adoption of the proposals in the NPRM. We received comments on two 
provisions in our cost analysis, but after review of the issues raised, 
we retained our no cost determination. We received no comment relative 
to the certification. Therefore, the Coast Guard certifies under 5 
U.S.C. 605(b) that this final rule will not have a significant economic 
impact on a substantial number of small entities.

C. Assistance for Small Entities

    Under section 213(a) of the Small Business Regulatory Enforcement 
Fairness Act of 1996, Pub. L. 104-121, we offered to assist small 
entities in understanding this final rule so that they can better 
evaluate its effects on them and participate in the rulemaking. The 
Coast Guard will not retaliate against small entities that question or 
complain about this rule or any policy or action of the Coast Guard.
    Small businesses 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).

D. Collection of Information

    This rule calls for no new collection of information under the 
Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520). The current OMB 
approval number for this part, 1625-0022, remains unchanged and 
effective.

E. Federalism

    A rule has implications for federalism under E.O. 13132, 
Federalism, if it has a substantial direct effect on the States, on the 
relationship between the national government and the States, or on the 
distribution of power and responsibilities among the various levels of 
government. We have analyzed this rule under that E.O. and have 
determined that it is consistent with the fundamental federalism 
principles and preemption requirements described in E.O. 13132. Our 
analysis is explained below.
    It is well settled that States may not regulate in fields reserved 
for regulation by the Coast Guard. Under 46 U.S.C., Subtitle II, Part 
J, ``Measurement of Vessels,'' Congress specifically

[[Page 18717]]

mandated that certain vessels be measured in accordance with Chapters 
141 and 143, as applicable. Congress provided this exclusive 
measurement authority to the Secretary. The authority to carry out 
these functions was specifically delegated to the Coast Guard by the 
Secretary. As this rulemaking implements amendments to the tonnage 
measurement law, as well as incorporates technical interpretations and 
administrative clarifications of existing tonnage regulations, it falls 
within the scope of authority Congress granted exclusively to the 
Secretary and States may not regulate within this field. Therefore, the 
rule is consistent with the principles of federalism and preemption 
requirements in E.O. 13132.
    While it is well settled that States may not regulate in categories 
in which Congress intended the Coast Guard to be the sole source of a 
vessel's obligations, the Coast Guard recognizes the key role that 
State and local governments may have in making regulatory 
determinations. Additionally, for rules with implications and 
preemptive effect, E.O. 13132 specifically directs agencies to consult 
with State and local governments during the rulemaking process.
    The Coast Guard invited State and local governments and their 
representative national organizations to indicate their desire for 
participation and consultation in this rulemaking process by submitting 
comments to the NPRM. In accordance with Executive Order 13132, 
Federalism, the Coast Guard provides this federalism impact statement:
    (1) There were no comments submitted by State or local governments 
to the NPRM published in the Federal Register on April 8, 2014 (79 FR 
19420).
    (2) There were no concerns expressed by State or local governments.
    (3) As no concerns were expressed or comments received from State 
or local government, there is no statement required to document the 
extent to which any concerns were met.

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 final rule will not 
result in such an expenditure, we do discuss the effects of this final 
rule elsewhere in this preamble.

G. Taking of Private Property

    This final rule will not cause a taking of private property or 
otherwise have taking implications under E.O. 12630, Governmental 
Actions and Interference with Constitutionally Protected Property 
Rights.

H. Civil Justice Reform

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

I. Protection of Children

    We have analyzed this rule under E.O. 13045, Protection of Children 
from Environmental Health Risks and Safety Risks. This rule is not an 
economically significant rule and will not create an environmental risk 
to health or risk to safety that might disproportionately affect 
children.

J. Indian Tribal Governments

    This final rule does not have tribal implications under E.O. 13175, 
Consultation and Coordination with Indian Tribal Governments, because 
it does not have a substantial direct effect on one or more Indian 
tribes, on the relationship between the Federal Government and Indian 
tribes, or on the distribution of power and responsibilities between 
the Federal Government and Indian tribes.

K. Energy Effects

    We have analyzed this final rule under E.O. 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 E.O. because it is not a ``significant 
regulatory action'' under E.O. 12866 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 E.O. 
13211.

L. Technical Standards

    The National Technology Transfer and Advancement Act (15 U.S.C. 272 
note) directs agencies to use voluntary consensus standards in their 
regulatory activities unless the agency provides Congress, through OMB, 
with an explanation of why using these standards will 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 rule does not use technical standards. Therefore, we did not 
consider the use of voluntary consensus standards.

M. Environment

    We have analyzed this final 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 final 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 final environmental analysis checklist 
supporting this determination is available in docket number USCG-2011-
0522 at the Federal eRulemaking Portal online at http://www.regulations.gov.
    This action falls under section 2.B.2, figure 2-1, paragraphs 
(34)(a) and (d) of the Instruction and involves regulations, which are 
editorial or procedural and regulations concerning admeasurement of 
vessels.

List of Subjects in 46 CFR Part 69

    Measurement standards, Penalties, Reporting and recordkeeping 
requirements, Vessels.

    For the reasons discussed in the preamble, the Coast Guard amends 
46 CFR part 69 as follows:

PART 69--MEASUREMENT OF VESSELS

0
1. The authority citation for part 69 is revised to read as follows:

    Authority:  46 U.S.C. 2301, 14103, 14104; Department of Homeland 
Security Delegation No. 0170.1.

Subpart A--General

0
2. Revise Sec.  69.1 to read as follows:


Sec.  69.1  Purpose.

    This part implements legislation concerning the measurement of 
vessels to determine their tonnage (part J of 46 U.S.C. subtitle II). 
Tonnage is used for a variety of purposes, including the application of 
vessel safety, security, and environmental protection regulations and 
the assessment of taxes and fees. This part indicates the particular 
measurement system or

[[Page 18718]]

systems under which the vessel is required or eligible to be measured, 
describes the measurement rules and procedures for each system, 
identifies the organizations authorized to measure vessels under this 
part, and provides for the appeal of measurement organizations' 
decisions.

0
3. Revise Sec.  69.3 to read as follows:


Sec.  69.3  Applicability.

    This part applies to any vessel for which the application of an 
international agreement or other law of the United States to the vessel 
depends on the vessel's tonnage.


Sec.  69.5  [Removed and Reserved]

0
4. Remove and reserve Sec.  69.5.

0
5. Revise Sec.  69.7 to read as follows:


Sec.  69.7  Vessels transiting the Panama and Suez Canals.

    For vessels that will transit the Panama Canal and/or Suez Canal, 
the respective canal authorities may require special tonnage 
certificates in addition to those issued under this part. These special 
certificates may be issued by measurement organizations who have 
received appropriate authorization from the respective canal 
authorities.

0
6. Revise Sec.  69.9 to read as follows:


Sec.  69.9  Definitions.

    As used in this part:
    Authorized measurement organization means an entity that is 
authorized to measure vessels under this part.
    Commandant means Commandant of the Coast Guard at the following 
address: Commanding Officer, Marine Safety Center (MSC-4), U.S. Coast 
Guard Stop 7430, 2703 Martin Luther King Jr. Ave. SE., Washington, DC 
20593-7430.
    Convention means the International Convention on Tonnage 
Measurement of Ships, 1969.
    Convention Measurement System means the measurement system under 
subpart B of this part, which is based on the rules of the Convention. 
This Formal Measurement System uses the vessel's total enclosed volume 
as the principal input for tonnage calculations along with other 
characteristics related to the vessel's carrying capacity, including 
the volume of cargo spaces and number of passengers. Tonnages assigned 
under this system are expressed in terms of gross tonnage ITC (GT ITC) 
or net tonnage ITC (NT ITC).
    Deck cargo means freight carried on the weather decks of a vessel 
for the purpose of its transport between two separate and distinct 
locations, and which is off-loaded from the vessel in its original 
container (if applicable) without undergoing any processing or other 
use while onboard the vessel.
    Dual Regulatory Measurement System means the measurement system 
under subpart D of this part, which is one of three sub-systems of the 
Regulatory Measurement System. This Formal Measurement System is based 
on the rules of the Standard Regulatory Measurement System, with 
adjustments that allow for the assignment of two sets of Regulatory 
Measurement System tonnages whose use depends on the loading condition 
of the vessel. Tonnages assigned under this system are expressed in 
terms of gross register tons (GRT) or net register tons (NRT).
    Foreign flag vessel means a vessel that is not a U.S. flag vessel.
    Formal Measurement System means a measurement system that employs a 
detailed computational method using measurements of the entire vessel, 
and which also takes into account the use of vessel spaces. The 
measurement systems prescribed under subparts B, C, and D of this part 
are Formal Measurement Systems.
    Great Lakes means the Great Lakes of North America and the St. 
Lawrence River west of a rhumb line drawn from Cap des Rosiers to West 
Point, Anticosti Island, and, on the north side of Anticosti Island, 
the meridian of longitude 63 degrees west.
    Gross register tonnage (GRT) means the gross tonnage measurement of 
the vessel under the Regulatory Measurement System. Refer to Sec.  
69.20 for information on applying tonnage thresholds expressed in terms 
of gross register tons (also referred to as GRT).
    Gross tonnage ITC (GT ITC) means the gross tonnage measurement of 
the vessel under the Convention Measurement System. In international 
conventions, this parameter may be referred to as ``gross tonnage 
(GT).'' Refer to Sec.  69.20 for information on applying tonnage 
thresholds expressed in terms of gross tonnage ITC.
    National Vessel Documentation Center means the organizational unit 
designated by the Commandant to process vessel documentation 
transactions and maintain vessel documentation records.
    Net register tonnage (NRT) means the net tonnage measurement of the 
vessel under the Regulatory Measurement System. Refer to Sec.  69.20 
for information on applying tonnage thresholds expressed in terms of 
net register tons.
    Non-self-propelled vessel means a vessel that is not a self-
propelled vessel.
    Overall length means the horizontal distance of the vessel's hull 
between the foremost part of a vessel's stem to the aftermost part of 
its stern, excluding fittings and attachments.
    Portable enclosed space means an enclosed space that is not deck 
cargo, and whose method of attachment to the vessel is not permanent in 
nature. Examples of portable enclosed spaces include modular living 
quarters, housed portable machinery spaces, and deck tanks used in 
support of shipboard industrial processes.
    Register ton means a unit of volume equal to 100 cubic feet.
    Regulatory Measurement System means the measurement system that 
comprises subparts C, D, and E of this part (Standard, Dual, and 
Simplified Regulatory Measurement Systems, respectively), and is 
sometimes referred to as the national measurement system of the United 
States. Tonnages assigned under this system are expressed in terms of 
gross register tons (GRT) or net register tons (NRT).
    Remeasurement means the process by which tonnages or registered 
dimensions of a vessel that was previously measured are assigned or 
reassigned to that vessel, or are verified to be correct, as 
appropriate. This includes assignment of tonnages or registered 
dimensions under a different measurement system.
    Self-propelled vessel means a vessel with a means of self-
propulsion, including sails.
    Simplified Regulatory Measurement System means the measurement 
system under subpart E of this part, which is one of three sub-systems 
of the Regulatory Measurement System. It is based on the rules of the 
Standard Regulatory Measurement System but employs a simplified 
computational method using hull dimensions as the principal inputs. 
Tonnages assigned under this system are expressed in terms of gross 
register tons (GRT) or net register tons (NRT).
    Standard Regulatory Measurement System means the measurement system 
under subpart C of this part, which is one of three sub-systems of the 
Regulatory Measurement System. This Formal Measurement System is based 
on the rules of the British Merchant Shipping Act of 1854 and uses 
volumes of internal spaces as the principal inputs for tonnage 
calculations, allowing for exemptions or deductions of qualifying 
spaces according to their location and use. Tonnages assigned under 
this system are expressed in terms of gross register tons (GRT) or net 
register tons (NRT).
    Tonnage means the volume of a vessel's spaces, including portable 
enclosed spaces, as calculated under a measurement system in this part, 
and is

[[Page 18719]]

categorized as either gross or net. Gross tonnage refers to the 
volumetric measure of the overall size of a vessel. Net tonnage refers 
to the volumetric measure of the useful capacity of the vessel. Deck 
cargo is not included in tonnage.
    Tonnage threshold means a delimitating tonnage value specified in 
an international convention or a Federal statute or regulation.
    U.S. flag vessel means a vessel of United States registry or 
nationality, or one operated under the authority of the United States.
    Vessel of war means ''vessel of war'' as defined in 46 U.S.C. 2101.
    Vessel that engages on a foreign voyage means a vessel:
    (1) That arrives at a place under the jurisdiction of the United 
States from a place in a foreign country;
    (2) That makes a voyage between places outside of the United 
States;
    (3) That departs from a place under the jurisdiction of the United 
States for a place in a foreign country; or
    (4) That makes a voyage between a place within a territory or 
possession of the United States and another place under the 
jurisdiction of the United States not within that territory or 
possession.

0
7. Revise Sec.  69.11 to read as follows:


Sec.  69.11  Determining the measurement system or systems for a 
particular vessel.

    (a) Convention Measurement System (subpart B of this part). (1) 
Except as otherwise provided in this section, this Formal Measurement 
System applies to any vessel for which the application of an 
international agreement or other law of the United States to the vessel 
depends on the vessel's tonnage.
    (2) This system does not apply to the following vessels:
    (i) A vessel of war, unless the government of the country to which 
the vessel belongs elects to measure the vessel under this part.
    (ii) A vessel of less than 79 feet in overall length.
    (iii) A U.S. flag vessel, or one of Canadian registry or 
nationality, or operated under the authority of Canada, and that is 
operating only on the Great Lakes, unless the vessel owner requests.
    (iv) A U.S. flag vessel (except a vessel that engages on a foreign 
voyage), the keel of which was laid or was at a similar stage of 
construction before January 1, 1986, unless the vessel owner requests 
or unless the vessel subsequently undergoes a change that the 
Commandant finds substantially affects the gross tonnage.
    (v) A non-self-propelled U.S. flag vessel (except a non-self-
propelled vessel that engages on a foreign voyage), unless the vessel 
owner requests the application.
    (b) Standard Regulatory Measurement System (subpart C of this 
part). This Formal Measurement System applies to a vessel not measured 
under the Convention Measurement System for which the application of an 
international agreement or other law of the United States to the vessel 
depends on the vessel's tonnage. Upon request of the vessel owner, this 
system also applies to a U.S. flag vessel that is also measured under 
the Convention Measurement System.
    (c) Dual Regulatory Measurement System (subpart D of this part). 
This Formal Measurement System may be applied, at the vessel owner's 
option, instead of the Standard Regulatory Measurement System.
    (d) Simplified Regulatory Measurement System (subpart E of this 
part). This system may be applied, at the vessel owner's option, 
instead of the Standard Regulatory Measurement System to the following 
vessels:
    (1) A vessel that is under 79 feet in overall length.
    (2) A vessel of any length that is non-self-propelled.
    (3) A vessel of any length that is operated only for pleasure.

0
8. Revise Sec.  69.13 to read as follows:


Sec.  69.13  Applying provisions of a measurement system.

    (a) Except as noted under paragraph (c) of this section, all 
provisions of a measurement system as prescribed in this part that are 
applicable to the vessel must be observed. Coast Guard interpretations 
of these provisions are published by, and may be obtained from, 
Commanding Officer, Marine Safety Center (MSC-4).
    (b) The provisions of more than one measurement system must not be 
applied interchangeably or combined, except where specifically 
authorized under this part.
    (c) Unless otherwise provided for by law, the tonnage measurement 
rules and procedures that immediately predate the rules and procedures 
prescribed in this part may be applied, at the option of the vessel 
owner, to the following vessels:
    (1) A vessel which has not been measured and which was contracted 
for on or before May 2, 2016.
    (2) A vessel which has been measured, but which has undergone 
modifications contracted for on or before May 2, 2016.

0
9. Amend Sec.  69.15 as follows:
0
a. Revise paragraphs (a), (b), (c), and (e); and
0
b. In paragraph (d), remove the words ``to determine its tonnage'' and 
add, in their place, the words ``under this part''.
    The revisions read as follows:


Sec.  69.15  Authorized measurement organizations.

    (a) Except as noted under paragraphs (c) and (d) of this section, 
measurement or remeasurement of all vessels under the Convention 
Measurement System and Standard and Dual Regulatory Measurement Systems 
must be performed by an authorized measurement organization meeting the 
requirements of Sec.  69.27. A current listing of authorized 
measurement organizations may be obtained from the Commanding Officer, 
Marine Safety Center (MSC-4).
    (b) Measurement or remeasurement of all vessels under subpart E of 
this part must be performed by the Coast Guard.
    (c) Measurement or remeasurement of all U.S. Coast Guard vessels 
and all U.S. Navy vessels of war must be performed by the Coast Guard.
* * * * *
    (e) The appropriate tonnage certificate, as provided for under this 
part, is issued by the authorized measurement organization as evidence 
of the vessel's measurement under this part.

0
10. Amend Sec.  69.17 as follows:
0
a. Revise paragraph (a); and
0
b. In paragraph (c):
0
i. Following the words ``the application'', remove the word ``must'' 
and add, in its place, the word ``should''; and
0
ii. Following the words ``of encumbrances,'', remove the words ``engine 
and boilers'' and add, in their place, the word ``engines''.
    The revision reads as follows:


Sec.  69.17  Application for measurement services.

    (a) The vessel owner is responsible for having the vessel measured 
or remeasured under this part. Applications for Formal Measurement may 
be obtained from any measurement organization and, once completed, are 
submitted to the authorized measurement organization that will perform 
the measurement services. Applications for Simplified Measurement may 
be obtained from the Commanding Officer, Marine Safety Center (MSC-4) 
and, once completed, are submitted or retained as described in Sec.  
69.205. The contents of the application are described in this part 
under the requirements for each system.
* * * * *

0
11. Revise Sec.  69.19 to read as follows:

[[Page 18720]]

Sec.  69.19  Remeasurement.

    (a) If a vessel that is already measured is to undergo a structural 
alteration, a change to its service, or if the use of its space is to 
be changed, a remeasurement may be required. For vessels measured under 
a Formal Measurement System, owners must report immediately to an 
authorized measurement organization any intent to structurally alter 
the vessel or to change its service or the use of its space. The 
measurement organization advises the owner if remeasurement is 
necessary. For all other vessels, owners must report the intent to 
structurally alter the vessel to Commanding Officer, Marine Safety 
Center (MSC-4), for a remeasurement determination. Remeasurement is 
initiated by completing and submitting, where applicable, the 
appropriate application for measurement services. Spaces not affected 
by the alteration or change need not be remeasured.
    (b) Remeasurement must also be performed as follows:
    (1) When there is a perceived error in the application of this 
part, the vessel owner should contact the responsible measurement 
organization, or Commanding Officer, Marine Safety Center (MSC-4), as 
appropriate. Remeasurement is performed to the extent necessary to 
verify and correct the error.
    (2) At the vessel owner's option, to reflect the latest tonnage 
measurement rules and associated interpretations under this part.
    (c) For vessels measured under a Formal Measurement System, if a 
remeasurement or adjustment of tonnage is required, the authorized 
measurement organization will issue a new tonnage certificate. For all 
other vessels, Commanding Officer, Marine Safety Center (MSC-4) will 
take action, as appropriate.
    (d) A vessel of less than 79 feet in overall length measured under 
a Formal Measurement System may be remeasured at the owner's request 
under the Simplified Regulatory Measurement System.

0
12. Add Sec.  69.20 to read as follows:


Sec.  69.20  Applying tonnage thresholds.

    (a) General. Tonnage thresholds are applied using the vessel's 
tonnage assigned under this part, and as provided for by paragraphs (b) 
through (d) of this section. In general, and except as under paragraphs 
(b) and (c) of this section, tonnage thresholds expressed in terms of 
``gross tonnage,'' ``gross tonnage ITC,'' or ``GT ITC'' are applied 
using Convention Measurement System tonnage (if assigned) and 
thresholds expressed in terms of ``gross tons,'' ``registered gross 
tons,'' or ``GRT'' are applied using the Regulatory Measurement System 
tonnage (if assigned). Similarly, in general, and except as under 
paragraphs (b) and (c) of this section, tonnage thresholds expressed in 
terms of ``net tonnage,'' ``net tonnage ITC,'' or ``NT ITC'' are 
applied using Convention Measurement System tonnage (if assigned) and 
thresholds expressed in terms of ``net tons,'' ``registered net tons,'' 
or ``NRT'' are applied using the Regulatory Measurement System tonnage 
(if assigned).
    (b) Thresholds found in international conventions. Unless otherwise 
provided for by law, apply tonnage thresholds in international 
conventions as follows:
    (1) For vessels measured under the Convention Measurement System, 
apply all tonnage thresholds using Convention Measurement System 
tonnage, except as provided for under the following international 
tonnage grandfathering provisions, which may be applied at the option 
of the vessel owner:
    (i) Under Article 3(2)(d) of the Convention:
    (A) For a U.S. flag vessel, this Article allows associated tonnage 
thresholds in effect on or before July 18, 1994 to be applied, at the 
vessel owner's option, using Regulatory Measurement System tonnage to a 
vessel whose keel was laid on or before July 18, 1982, and which did 
not subsequently undergo alterations resulting in a change in its 
tonnage of a magnitude deemed by the Commandant to constitute a 
substantial variation in its tonnage.
    (B) For a foreign flag vessel, this Article allows associated 
tonnage thresholds in effect on or before July 18, 1994, to be applied, 
at the vessel owner's option, using the foreign country's national 
measurement system tonnage to a vessel whose keel was laid on or before 
July 18, 1982, and which did not subsequently undergo alterations 
resulting in a change in its tonnage of a magnitude deemed by that 
country to constitute a substantial variation in its tonnage.
    (ii) Under International Maritime Organization (IMO) Resolutions 
A.494 (XII) of November 19, 1981 and A.541 (XIII) of November 17, 1983:
    (A) For a U.S. flag vessel, these resolutions allow tonnage 
thresholds in effect on July 18, 1994 to be applied using the gross 
register tonnage (Regulatory Measurement System), to a vessel whose 
keel was laid on or after July 18, 1982 but before July 19, 1994, and 
which did not subsequently undergo alterations resulting in a change 
substantially affecting its tonnage as deemed by the Commandant.
    (B) For a foreign flag vessel, these resolutions allow tonnage 
thresholds in effect on July 18, 1994 to be applied, at the vessel 
owner's option, using the foreign country's national measurement system 
tonnage, to a vessel whose keel was laid on or after July 18, 1982, but 
on or before July 18, 1994, and which did not undergo alterations after 
July 18, 1994 of a magnitude deemed by that country to constitute a 
substantial variation in its tonnage subject to the provisions of these 
resolutions.
    (iii) Any other international grandfathering provisions as 
authorized under appropriate International Maritime Organization 
instruments to which the United States is a party, or which are 
otherwise recognized or accepted by the United States.
    (2) For all other vessels, apply all tonnage thresholds using 
Regulatory Measurement System tonnage.
    (c) Thresholds found in Federal statutes and regulations. Unless 
otherwise provided for by law, apply tonnage thresholds in Federal 
statutes and regulations as follows:
    (1) For vessels measured under the Convention Measurement System 
only, apply all thresholds using Convention Measurement System tonnage.
    (2) For vessels measured under the Regulatory Measurement System 
only, apply all thresholds using Regulatory Measurement System tonnage.
    (3) For all other vessels, apply thresholds in effect before July 
19, 1994 using the vessel's Regulatory Measurement System tonnage, and 
all other thresholds using the vessel's Convention Measurement System 
tonnage.
    (d) Alternate tonnage thresholds. 46 U.S.C. 14104 authorizes the 
Coast Guard to establish tonnage thresholds based on the Convention 
Measurement System as an alternative to tonnage thresholds based on the 
Regulatory Measurement System. Although 46 U.S.C. 14104 addresses only 
thresholds in Federal statutes, it does not preclude establishing 
alternate tonnage thresholds for Federal regulations that currently 
specify thresholds that were based on the Regulatory Measurement 
System, where appropriate.
    (1) If an alternate tonnage threshold is prescribed or authorized 
by Federal statute or regulation, apply the alternate tonnage threshold 
using the Convention Measurement System tonnage.
    (2) A vessel regulated under paragraph (d) of this section must not 
be measured under the Regulatory Measurement System.


Sec.  69.25  [Amended]

0
13. Amend Sec.  69.25 as follows:

[[Page 18721]]

0
a. In paragraph (a), remove the words ``The owner'', add, in their 
place, the words ``The vessel owner''; and
0
b. In paragraphs (a) and (b), remove the figure ``$20,000'', and add, 
in its place, the figure ``$30,000''.

0
14. Amend Sec.  69.27 as follows:
0
a. Revise paragraphs (a), (b) introductory text, and (b)(4) and (5); 
and
0
b. In paragraph (c)(3), remove the text ``Convention, Standard, and 
Dual Measurement Systems'' and add, in its place, the text ``Convention 
Measurement System and Standard and Dual Regulatory Measurement 
Systems''; and
0
c. In paragraph (c)(4), remove the text ``Convention, Standard, or Dual 
Measurement Systems'' and add, in its place, the text ``Convention 
Measurement System or Standard or Dual Regulatory Measurement 
Systems''.
    The revisions read as follows:


Sec.  69.27  Delegation of authority to measure vessels.

    (a) Under 46 U.S.C. 14103, the Coast Guard is authorized to 
delegate to a ``qualified person'' the authority to measure and certify 
U.S. flag vessels under this part.
    (b) Authority to measure and certify U.S. flag vessels under the 
Convention Measurement System and Standard and Dual Regulatory 
Measurement Systems may be delegated to an organization that--
* * * * *
    (4) Is capable of providing all measurement services under the 
Convention Measurement System and Standard and Dual Regulatory 
Measurement Systems for vessels domestically and internationally;
    (5) Maintains a tonnage measurement staff that has practical 
experience in measuring U.S. flag vessels under the Convention 
Measurement System and Standard and Dual Regulatory Measurement 
Systems; and
* * * * *

0
15. Add Sec.  69.28 to read as follows:


Sec.  69.28  Acceptance of measurement by a foreign country.

    (a) The Commandant must accept the measurement of a foreign flag 
vessel by a foreign country as complying with subpart B of this part 
if:
    (1) The vessel was measured under the terms of the Convention and 
the foreign country is party to the Convention; or
    (2) The Commandant finds that the laws and regulations of that 
country related to measurement are similar to those of subpart B of 
this part.
    (b) The Commandant may accept the measurement of a foreign flag 
vessel by a foreign country as complying with subpart C, D, or E of 
this part if the Commandant finds that the laws and regulations of that 
country related to measurement are substantially similar to those of 
subpart C, D, or E, respectively, of this part.

Subpart B--Convention Measurement System

0
16. Amend Sec.  69.53 by removing the definitions of ``Gross tonnage'' 
and ``Net tonnage'' and adding the definition of ``Boundary bulkhead'' 
in alphabetical order to read as follows:


Sec.  69.53  Definitions.

* * * * *
    Boundary bulkhead means the bulkhead or partition that separates an 
enclosed interior space from the surrounding weather. In general, the 
exterior bulkhead of a deck structure is the boundary bulkhead.
* * * * *


Sec.  69.55  [Amended]

0
17. Amend Sec.  69.55(d) by:
0
a. Removing the words ``and year''; and
0
b. After the word ``built'', adding the words ``and delivery date (or 
scheduled delivery date)''.


Sec.  69.57  [Amended]

0
18. Amend Sec.  69.57 as follows:
0
a. In the section heading, add the text ``ITC'' after the text ``Gross 
tonnage'';
0
b. After the text ``Gross tonnage'' and ``(GT'', add the text ``ITC''; 
and
0
c. Following the text ``following formula GT'', add the text ``ITC''.

0
19. Amend Sec.  69.59 by adding a sentence at the end of the paragraph 
to read as follows:


Sec.  69.59  Enclosed spaces.

    * * * Portable enclosed spaces, regardless of method of attachment 
to the vessel, are treated as enclosed spaces as defined in this 
paragraph.

0
20. Amend Sec.  69.61 as follows:
0
a. Revise paragraph (a); and
0
b. In paragraph (g), remove the words ``paragraphs (b) through (f)'' 
and add, in their place, the words ``paragraphs (a) through (f)''.
    The revision reads as follows:


Sec.  69.61  Excluded spaces.

    (a) Excluded space means an enclosed space which is excluded from 
the total volume of all enclosed spaces (V) in calculating gross 
tonnage ITC. Spaces that are below the upper deck and open to the sea, 
as well as those spaces listed in paragraphs (b) through (f) of this 
section, are excluded spaces, except as under paragraph (g) of this 
section.
* * * * *

0
21. Revise Sec.  69.63 to read as follows:


Sec.  69.63  Net tonnage ITC.

    Net tonnage ITC (NT ITC) is determined by the formula:

[[Page 18722]]

[GRAPHIC] [TIFF OMITTED] TR31MR16.000

0
22. Revise Sec.  69.65 to read as follows:


Sec.  69.65  Calculation of volumes.

    (a) Volumes V and Vc used in calculating gross tonnage 
ITC and net tonnage ITC, respectively, must be measured and calculated 
according to accepted naval architectural practices for the spaces 
concerned.
    (b) Measurements must be taken, regardless of the fitting of 
insulation or the like, to the inner side of the shell or structural 
boundary plating in vessels constructed of metal, and to the outer 
surface of the shell or to the inner side of structural boundary 
surfaces in all other vessels.

0
23. Revise Sec.  69.69 to read as follows:


Sec.  69.69  Tonnage certificates.

    (a) On request of the vessel owner, the authorized measurement 
organization must issue an International Tonnage Certificate (1969) as 
evidence of the vessel's measurement under this subpart for a vessel 
that is 24 meters (79.0 feet) or more in registered length, will engage 
on a foreign voyage, and is not a vessel of war. The Certificate is 
delivered to the vessel owner or master and must be maintained on board 
the vessel when it is engaged on a foreign voyage. For a vessel for 
which a remeasurement under Sec.  69.71 resulted in a net tonnage ITC 
decrease due to changes other than alterations or modifications to the 
vessel deemed by the Commandant to be of a major character, an 
International Tonnage Certificate (1969) reflecting the decreased net 
tonnage ITC will not be reissued until 12 months have elapsed from the 
date of measurement indicated on the current certificate.
    (b) If an International Tonnage Certificate (1969) is not issued 
for a vessel measured under this part, the measurement organization 
must issue a U.S. Tonnage Certificate as evidence of the vessel's 
measurement under this subpart, which must also indicate the vessel's 
measurement under any other subpart of this part. There is no 
requirement to maintain the U.S. Tonnage Certificate on board the 
vessel.
    (c) For a vessel that transfers flag to a foreign country that is 
party to the Convention, the International Tonnage Certificate (1969) 
remains valid for a period not to exceed 3 months after the flag 
transfer, or until an International Tonnage Certificate (1969) is 
issued under authority of the foreign country to replace it, whichever 
is earlier.


Sec.  69.71  [Amended]

0
24. In Sec.  69.71(c)(2), remove the words ``Coast Guard'' and, in 
their place, add the word ``Commandant''.

0
25. In Sec.  69.73, revise the section heading and paragraph (b) to 
read as follows:


Sec.  69.73  Treatment of novel type vessels.

* * * * *
    (b) Requests for a determination must be submitted to the 
Commandant, explaining the reasons for seeking a determination, and 
including a description of the spaces in question, if applicable.

0
26. Revise Sec.  69.75 to read as follows:


Sec.  69.75  Figures.

BILLING CODE 9110-04-P

[[Page 18723]]

[GRAPHIC] [TIFF OMITTED] TR31MR16.001


[[Page 18724]]


[GRAPHIC] [TIFF OMITTED] TR31MR16.002

BILLING CODE 9110-04-C

0
27. Revise the heading for subpart C to read as follows:

Subpart C--Standard Regulatory Measurement System


Sec.  69.101  [Amended]

0
28. In Sec.  69.101, after the word ``Standard'', add the word 
``Regulatory''.

0
29. Amend Sec.  69.103 as follows:
0
a. In the definition of ``Gross tonnage'', after the word ``Gross'', 
add the word ``register'';
0
b. Add, in alphabetical order, the definitions of ``Double bottom for 
water ballast'', ``Line of the normal frames'', ``Line of the ordinary 
frames'', ``Normal

[[Page 18725]]

frame'', ``Ordinary frame'', ``Tonnage interval'', ``Tonnage station'', 
and ``Zone of influence method'';
0
c. In the definition of ``Net tonnage'', after the word ``Net'', add 
the word ``register''; and
0
d. Revise the definitions of ``Superstructure'' and ``Uppermost 
complete deck''.
    The additions and revisions read as follows:


Sec.  69.103  Definitions.

* * * * *
    Double bottom for water ballast means a space at the bottom of a 
vessel between the inner and outer bottom plating, used solely for 
water ballast.
* * * * *
    Line of the normal frames means the imaginary horizontal line that 
connects the inboard faces of the smallest normal frames.
    Line of the ordinary frames means the line of intersection of the 
imaginary surface or surfaces tangent to the inboard faces of the 
ordinary frames (or the inside of the vessel's skin, if there are no 
ordinary frames), and the imaginary plane running transversely through 
the vessel at the tonnage station of interest.
* * * * *
    Normal frame means a frame, regardless of size, used to stiffen a 
structure.
    Ordinary frame means a primary side or bottom frame or floor used 
for strengthening the hull.
* * * * *
    Superstructure means all permanently closed-in structures, 
including all portable enclosed spaces, on or above the line of the 
uppermost complete deck or, if the vessel has a shelter deck, on or 
above the line of the shelter deck. Examples of superstructure spaces 
include forecastles, bridges, poops, deckhouses, breaks, portable 
tanks, and modular quarters units.
* * * * *
    Tonnage interval means the longitudinal distance between transverse 
sections of a vessel's under-deck, between-deck, or superstructure when 
divided into an even number of equal parts for purposes of volume 
integration.
* * * * *
    Tonnage station means the longitudinal location of each transverse 
section where breadth and depth measurements are taken when calculating 
under-deck volumes under this subpart. Tonnage stations are numbered 
consecutively from fore to aft, beginning with the number one.
    Uppermost complete deck is defined in Sec.  69.108.
    Zone of influence method means a Simpson's first rule integration 
method for determining volumes of under-deck spaces that limits the 
sectional areas associated with these spaces to the sectional areas at 
adjacent under-deck tonnage stations, depending on their proximity to 
those stations. For stations for which the under-deck sectional areas 
are multiplied by four, the zone of influence extends two-thirds of a 
tonnage interval on either side of the under-deck station, and for the 
remaining stations, the zone of influence extends one-third of a 
tonnage interval on either side of the station.


Sec.  69.105  [Amended]

0
30. Amend Sec.  69.105(d) by:
0
a. Removing the words ``and year''; and
0
b. After the word ``built'', adding the words ``and delivery date (or 
scheduled delivery date)''.

0
31. Amend Sec.  69.107 as follows:
0
a. Revise the section heading and paragraphs (a) introductory text and 
(b); and
0
b. Add paragraph (c).
    The revisions and addition read as follows:


Sec.  69.107  Gross and net register tonnage.

    (a) The vessel's gross register tonnage is the sum of the following 
tonnages, less the tonnages of certain spaces exempt under Sec.  
69.117:
* * * * *
    (b) The vessel's net register tonnage is the gross register tonnage 
less deductions under Sec. Sec.  69.119 and 69.121.
    (c) The authorized measurement organization must issue a U.S. 
Tonnage Certificate as evidence of a vessel's measurement under this 
subpart, which must also indicate the vessel's measurement under the 
Convention Measurement System in subpart B of this part, if applicable. 
There is no requirement to maintain the U.S. Tonnage Certificate on 
board the vessel.

0
32. Add Sec.  69.108 to read as follows:


Sec.  69.108  Uppermost complete deck.

    (a) Defined. ``Uppermost complete deck'' means the uppermost deck 
which extends from stem to stern and from side to side at all points of 
its length and is bound by the vessel's hull.
    (b) Restrictions. The uppermost complete deck must not:
    (1) Extend above any space exempted as open space under paragraph 
(d) of Sec.  69.117;
    (2) Extend below the design waterline, except in the case of 
vessels such as submersibles, where the entire uppermost complete deck 
is submerged during normal operations; or
    (3) Rest directly on consecutive or alternating ordinary bottom 
frames or floors for a distance of over one-half of the tonnage length.
    (c) Deck discontinuities. Decking athwartships of the following 
deck discontinuities is not considered to be part of the uppermost 
complete deck:
    (1) Through-deck openings that are not protected from the sea and 
the weather, such as would be provided by hatch covers or a surrounding 
superstructure that encloses the opening and whose area is more than 10 
percent of the total deck area from stem to stern as viewed from above.
    (2) Middle line openings conforming to the requirements of Sec.  
69.117(e)(2).
    (3) Deck recesses that are not through-hull for which the depth of 
the deck recess at its deepest point is more than five feet below 
adjacent portions of the deck, and whose area (as viewed from above) is 
more than 10 percent of the total deck area from stem to stern, as 
viewed from above.
    (4) Notches bounded by a deck below that wrap around from the ends 
to the sides of the vessel for which the depth at the deepest point is 
more than five feet below adjacent portions of the deck, the area is 
more than one percent of the total deck area from stem to stern as 
viewed from above, the length of the notch in the direction of the 
vessel's longitudinal axis exceeds 10 feet at any point across its 
width, and the width of the notch in the direction of the vessel's 
longitudinal axis exceeds two feet at any point along its length.

0
33. Amend Sec.  69.109 as follows:
0
a. In paragraph (c), after the words ``two or less'', ``more than 
two'', and ``is the second'', add the word ``enumerated'';
0
b. Revise paragraphs (d), (e)(2), (f)(2), (n), and (o)(1);
0
c. Add paragraphs (f)(4) and (p);
0
d. In paragraph (f)(1), after the words ``inboard face of the'', add 
the word ``ordinary'';
0
e. In paragraph (g)(2), after the words ``division of the tonnage 
length'' add the words ``, whose location is referred to as a tonnage 
station, and assigned sequential tonnage station numbers, beginning at 
the stem'';
0
f. In paragraph (h)(1):
0
i. Remove the word ``cellular''; and
0
ii. Add, after the words ``double bottom'', the words ``for water 
ballast'';
0
g. In paragraphs (h)(2) and (3), after the words ``double bottom'', add 
the words ``for water ballast'';
0
h. In paragraph (i)(3), after the words ``double bottom'', add the 
words ``for water ballast''; and

[[Page 18726]]

0
i. In the heading of paragraph (m) and paragraph (m)(1), after the 
words ``double bottom'', add the words ``for water ballast''.
    The revisions and additions read as follows:


Sec.  69.109  Under-deck tonnage.

* * * * *
    (d) Enumerating the decks to identify the second deck from the 
keel. The uppermost complete deck is an enumerated deck. Decks below 
the uppermost complete deck that extend from stem to stern and side to 
side at all points along their lengths are also enumerated, provided 
they are not disqualified by either of the following deck 
discontinuities:
    (1) A through-deck opening that is not fitted with a cover (or 
equivalent) and whose area is more than 10 percent of the total deck 
area, as viewed from above.
    (2) A deck recess that is not through-hull for which the depth at 
its deepest point is more than five feet below adjacent portions of the 
deck and whose area as viewed from above is more than 10 percent of the 
total deck area from stem to stern, as viewed from above.
    (e) * * *
    (2) If the tonnage deck is stepped, the line of the tonnage deck is 
the longitudinal line of the underside of the lowest portion of that 
deck parallel with the upper portions of that deck. Steps that do not 
extend from side to side or are less than three feet in length are 
ignored when establishing the line of the tonnage deck. (See Sec.  
69.123, figures 1 and 2.) Spaces between the line of the tonnage deck 
and the higher portions of that deck are not included in under-deck 
tonnage.
    (f) * * *
    (2) For a vessel having a headblock or square end with framing 
which extends from the tonnage deck to the bottom of the vessel, the 
tonnage length terminates on the inboard face of the headblock or 
ordinary end frames. (See Sec.  69.123, figure 4.)
* * * * *
    (4) The forward and after termini of the tonnage length must be a 
distance of no more than eight and one-half feet from the associated 
inboard surface of the skin of the hull at the bow and stern as 
measured at the centerline of the vessel, and the after terminus must 
not be forward of the centerline of the rudderstock.
* * * * *
    (n) Spaces open to the sea. In calculating the tonnage of spaces 
below the uppermost complete deck, subtract from each breadth 
measurement the portion of that measurement that spans a space, or a 
portion thereof, that is open to the sea.
    (o) * * *
    (1) An open vessel is a vessel without an uppermost complete deck.
* * * * *
    (p) General requirements on ordinary frames--(1) Construction. An 
ordinary frame must not be penetrated by an intersecting frame used to 
strengthen the vessel's hull, except in a vessel of wooden 
construction. Ordinary frames must be of the same material, or have the 
same material properties, as the adjacent hull, and attach to the 
adjacent hull to at least the same extent as adjacent ordinary and 
normal frames. If comprised of different elements, the elements must be 
joined to each other to the same extent that the frame is joined to the 
hull. The frame, or portions thereof, not meeting these requirements 
must be treated as if not there when establishing the line of the 
ordinary frames.
    (2) Frame spacing and extension. Ordinary frames used to establish 
the line of the ordinary frames must be spaced on centers that are a 
maximum of four feet apart. These frames must extend for a length of at 
least one tonnage interval that begins at, ends at, or crosses the 
associated tonnage station. For a longitudinally-framed vessel, the 
frames must begin and end at a transverse ordinary frame or at the 
vessel's hull.
    (3) Different sized framing. When an ordinary frame has a different 
depth of frame than an adjacent ordinary frame, the line of the 
ordinary frames is established using the set of alternating frames that 
yields the smallest sectional area at the associated tonnage station, 
with the sectional area based on the frame with the smallest depth of 
frame in the chosen alternating set.
    (4) Frame openings. If an opening in an ordinary frame is 
oversized, or is penetrated by a frame other than an ordinary frame, 
the line of the ordinary frames is established as if the frame material 
above and inboard of the opening is not there. Similarly, frame 
material separating adjacent openings that are within the longest 
linear dimension of either opening must be treated as if not there when 
establishing the line of the ordinary frames. An opening is oversized 
if the opening is:
    (i) Circular in shape with a diameter exceeding 18 inches;
    (ii) Oval in shape of a size greater than 15 x 23 inches (i.e., 
either the minor axis exceeds 15 inches or the major axis exceeds 23 
inches, and the oval's area exceeds 255 square inches (345 square 
inches in a fuel tank)); or
    (iii) Any shape other than circular or oval, whose area exceeds 255 
square inches (345 square inches in a fuel tank).
    (5) Asymmetrical framing. Where ordinary frames are configured such 
that the line of the ordinary frames would be asymmetrical about the 
centerline of the vessel, breadth measurements are determined by taking 
half-breadths on the side of the vessel that yields the greatest 
sectional area at the associated tonnage station, and multiplying those 
half-breadths by a factor of two to yield the full breadths.

0
34. Amend Sec.  69.111 as follows:
0
a. Revise paragraph (b)(2);
0
b. In paragraph (c)(1), remove the words ``inboard face of the normal 
side frames'' and add, in their place, the words ``normal frames''; and
0
c. In paragraph (c)(3):
0
i. Remove the words ``between the faces of the normal side frames''; 
and
0
ii. After the words ``of the space'', add the words ``to the line of 
the normal frames''.
    The revision reads as follows:


Sec.  69.111  Between-deck tonnage.

* * * * *
    (b) * * *
    (2) If the uppermost complete deck is stepped, the line of the 
uppermost complete deck is the longitudinal line of the underside of 
the lowest portion of that deck parallel with the upper portions of 
that deck. Steps that do not extend from side to side or are less than 
three feet in length are ignored when establishing the line of the 
uppermost complete deck. Spaces between the line of the uppermost 
complete deck and the higher portions of the deck are included in 
superstructure tonnage.
* * * * *

0
35. Amend Sec.  69.113 as follows:
0
a. Revise paragraphs (a) and (b)(1);
0
b. In paragraph (b)(3), after the words ``inside breadth'', add the 
words ``to the line of the normal frames''; and
0
c. In paragraph (f), add a sentence at the end of the paragraph.
    The revisions and addition read as follows:


Sec.  69.113  Superstructure tonnage.

    (a) Defined. ``Superstructure tonnage'' means the tonnage of all 
superstructure spaces.
    (b) * * *
    (1) Measure the length of each structure along its centerline at 
mid-height to the line of the normal frames. (See Sec.  69.123, figure 
11.)
* * * * *
    (f) * * * All measurements are terminated at the line of the normal 
frames.

[[Page 18727]]


0
36. Revise Sec.  69.115(c) to read as follows:


Sec.  69.115  Excess hatchway tonnage.

* * * * *
    (c) From the sum of the tonnage of the hatchways under this 
section, subtract one-half of one percent of the vessel's gross 
register tonnage exclusive of the hatchway tonnage. The remainder is 
added as excess hatchway tonnage in calculating the gross register 
tonnage.

0
37. Amend Sec.  69.117 as follows:
0
a. Revise the section heading and paragraphs (c)(2) and (3), (d)(1), 
(d)(2) introductory text, and (d)(2)(i);
0
b. In paragraph (a), remove the word ``gross'';
0
c. Remove paragraphs (c)(4) and (f)(4)(iii);
0
d. Redesignate paragraphs (f)(4)(iv) through (ix) as paragraphs 
(f)(4)(iii) through (viii), respectively;
0
e. In paragraph (d)(3):
0
i. Remove the text ``through (d)(2)(iii)'' and add, in its place, the 
text ``and (iii)''; and
0
ii. Add a sentence at the end of the paragraph;
0
f. Add paragraphs (d)(3)(i) and (ii) and (d)(8);
0
g. In paragraphs (d)(5)(ii) and (d)(6)(iii), after the words ``tightly 
against the'', add the words ``weather side of the'';
0
h. In paragraph (d)(7), remove the initial word ``A'' and add, in its 
place, the words ``Notwithstanding the opening size requirements of 
paragraph (d)(2) of this section, a'';
0
i. In the heading of paragraph (e), remove the words ``next lower 
deck'' and add, in their place, the words ``uppermost complete deck'';
0
j. In paragraph (e)(1):
0
i. Remove the words ``next lower deck'' and add, in their place, the 
words ``uppermost complete deck''; and
0
ii. After the words ``exempt from'', remove the word ``gross'';
0
k. In paragraph (e)(2)(v), add a sentence at the end of the paragraph;
0
l. In paragraph (f) introductory text, following the words ``be exempt 
from'', remove the word ``gross'';
0
m. In paragraph (f)(4):
0
i. After the words ``to be exempted from'', remove the word ``gross''; 
and
0
ii. After the words ``percent of the vessel's gross'', add the word 
``register'';
0
n. In paragraph (f)(5), add a sentence at the end of the paragraph; and
0
o. In paragraph (g)(3), after the words ``under-deck was divided'', add 
the words ``, and the zone of influence method must be applied if the 
ordinary frames upon which the under-deck breadth measurements are 
based do not have the same depth of frame''.
    The revisions and additions read as follows:


Sec.  69.117  Spaces exempt from inclusion in tonnage.

* * * * *
    (c) * * *
    (2) As used in this section, ``passenger space'' means a space 
reserved exclusively for the use of passengers and includes, but is not 
limited to, berthing areas, staterooms, bathrooms, toilets, libraries, 
writing rooms, lounges, dining rooms, saloons, smoking rooms, and 
recreational rooms. The space need not be part of or adjacent to a 
berthing area to be considered a passenger space. Spaces used by both 
passengers and crew members (e.g., first aid stations), or used for 
passenger support but not accessible to passengers at all times (e.g., 
vaults on a gaming vessel) cannot be exempted as passenger space.
    (3) A passenger space located on, or above the first deck above the 
uppermost complete deck is exempt from tonnage. To qualify as the first 
deck above the uppermost complete deck, the deck must be at least six 
inches above the uppermost complete deck at all points along its 
length.
    (d) * * *
    (1) Structures that are located on or above the line of the 
uppermost complete deck that are under cover (sheltered), but open to 
the weather are exempt from tonnage as open space. The following 
additional requirements apply:
    (i) If a structure is divided into compartments, only those 
compartments which are open to the weather are exempt from tonnage 
under the provisions of this section.
    (ii) Open space cannot progress vertically through openings in a 
deck within the structure.
    (iii) A space that is outside a structure's boundary bulkhead as 
defined in Sec.  69.53 is considered open to the weather provided the 
space is eligible to be treated as an excluded space under the 
provisions of Sec.  69.61, regardless of whether or not the space is 
fitted with means designed for securing cargo or stores.
    (2) A structure is considered open to the weather when an exterior 
end bulkhead of the structure is open and, except as provided in 
paragraphs (d)(4), (5), and (6) of this section, is not fitted with any 
means of closing. To be considered open to the weather, the end 
bulkhead must not have a coaming height of more than two feet in way of 
any required opening nor any permanent obstruction within two and one-
half feet of the opening, it must be fitted with a deck or platform 
that is a minimum of two and one-half feet wide on the exterior side of 
the opening, and it must have one of the following:
    (i) Two openings, each at least three feet wide and at least four 
feet high in the clear, one on each side of the centerline of the 
structure. If the openings lead to two separate interior compartments, 
there must be circulation of open space between the two compartments 
via a single such opening, or series of such openings, in the 
intermediate bulkhead(s).
* * * * *
    (3) * * * The following additional requirements apply:
    (i) For the interior compartment to be considered open to the 
weather, any compartment or series of compartments from which the open 
space progresses must have an opening or openings meeting the 
requirements for end bulkhead openings, except that the opening(s) need 
not be located in the forward or after end of the compartment.
    (ii) Open space may not progress from a space that is open under 
the provisions of paragraph (d)(1)(iii) of this section unless the 
space may also be considered open under another provision of this 
section.
* * * * *
    (8) A structure is considered open to the weather if:
    (i) Both sides of the structure are open and not fitted with any 
means of closing other than temporary covers meeting the requirements 
of paragraphs (d)(4), (5), and (6) of this section;
    (ii) The openings are directly across from each other, are not 
separated by a bulkhead or bulkheads, and do not have any permanent 
obstruction within two and one-half feet of either opening; and
    (iii) The openings have a continuous height of at least three feet, 
or the full height of the structure, whichever is less, and either 
extend the full length of the structure or each have an area of 60 
square feet.
    (e) * * *
    (2) * * *
    (v) * * * Battening, caulking, seals, or gaskets of any material 
may not be used in association with any middle line opening cover.
* * * * *
    (f) * * *
    (5) * * * Changes in vessel service must also be reported if a 
water ballast justification was required to be submitted for the 
vessel.
* * * * *

0
38. Amend Sec.  69.119 as follows:
0
a. Revise the section heading and paragraph (a); and

[[Page 18728]]

0
b. In paragraphs (d) and (m), after the word ``gross'', wherever it 
appears, add the word ``register''.
    The revisions read as follows:


Sec.  69.119  Spaces deducted from tonnage.

    (a) Purpose. This section lists the requirements for spaces (other 
than propelling machinery spaces under Sec.  69.121) which, though 
included in calculating gross register tonnage (i.e., are not exempt 
under Sec.  69.117), are deducted from tonnage in deriving net register 
tonnage.
* * * * *

0
39. Amend Sec.  69.121 as follows:
0
a. In paragraphs (a), (b)(2)(vii), (d)(3), (e)(1), (e)(2)(i) through 
(iii), and (e)(3)(i) through (iii), after the word ``gross'', wherever 
it appears, add the word ``register''; and
0
b. In paragraphs (e)(2)(iii) and (e)(3)(iii), remove the words 
``vessel's owner'' and add, in their place, the words ``vessel owner'';
0
c. In paragraph (b)(1), following the words ``spaces exempt from'', 
remove the word ``gross''; and
0
d. Revise paragraph (d)(1).
    The revision reads as follows:


Sec.  69.121  Engine room deduction.

* * * * *
    (d) * * *
    (1) Under Sec.  69.117(b)(4), framed-in spaces located above the 
line of the uppermost complete deck and used for propelling machinery 
or for admitting light or air to a propelling machinery space are 
exempt from inclusion in tonnage. However, upon written request to a 
measurement organization listed in Sec.  69.15, the vessel owner may 
elect to have these spaces included in calculating the gross register 
tonnage, then deducted from the gross register tonnage as propelling 
machinery spaces under paragraph (b)(2)(viii) of this section when 
calculating the net register tonnage.
* * * * *

0
40. In Sec.  69.123, revise Figures 1 through 12 to read as follows:


Sec.  69.123  Figures.

BILLING CODE 9110-04-P

[[Page 18729]]

[GRAPHIC] [TIFF OMITTED] TR31MR16.003


[[Page 18730]]


[GRAPHIC] [TIFF OMITTED] TR31MR16.004


[[Page 18731]]


BILLING CODE 9110-04-C
* * * * *

0
41. Revise the heading for subpart D to read as follows:

Subpart D--Dual Regulatory Measurement System


Sec.  69.151  [Amended]

0
42. In Sec.  69.151:
0
a. After the words ``one net'' and ``two net'', add the word 
``register''; and
0
b. Remove the words ``the Dual Measurement System'' and add, in their 
place, the words ``this subpart''.


Sec.  69.153  [Amended]

0
43. In Sec.  69.153(a), after the words ``two gross'' and ``higher 
gross'', add the word ``register''.


Sec.  69.155  [Amended]

0
44. In Sec.  69.155:
0
a. After the word ``Standard'', add the word ``Regulatory''; and
0
b. Remove the words ``the Dual Measurement System'' and add, in their 
place, the words ``this subpart''.


Sec.  69.157  [Amended]

0
45. In Sec.  69.157, in the definitions of ``Gross tonnage'' and ``Net 
tonnage'', before the word ``tonnage'', add the word ``register''.


Sec.  69.159  [Amended]

0
46. In Sec.  69.159, remove the words ``for the Standard Measurement 
System''.

0
47. Amend Sec.  69.161 as follows:
0
a. Revise the section heading;
0
b. In paragraph (a) introductory text, after the word ``Gross'', add 
the word ``register'';
0
c. In paragraphs (a)(5) and (b), after the word ``gross'', add the word 
``register'';
0
d. In paragraph (b), after the word ``Net'' add the word ``register''; 
and
0
e. Add paragraph (c).
    The revision and addition read as follows:


Sec.  69.161  Gross and net register tonnages.

* * * * *
    (c) The authorized measurement organization must issue a U.S. 
Tonnage Certificate as evidence of a vessel's measurement under this 
subpart, which must also indicate the vessel's measurement under the 
Convention Measurement System in subpart B of this part, if applicable. 
There is no requirement to maintain the U.S. Tonnage Certificate on 
board the vessel.


Sec.  69.163  [Amended]

0
48. In Sec.  69.163, remove the words ``the Dual Measurement System'' 
and add, in their place, the words ``this subpart''.


Sec.  69.165  [Amended]

0
49. In Sec.  69.165, remove the words ``the Dual Measurement System'' 
and add, in their place, the words ``this subpart''.


Sec.  69.167  [Amended]

0
50. In Sec.  69.167, remove the words ``the Dual Measurement System'' 
and add, in their place, the words ``this subpart''.


Sec.  69.169  [Amended]

0
51. In Sec.  69.169, in the section heading and the introductory text, 
remove the word ``gross''.


Sec.  69.173  [Amended]

0
52. In Sec.  69.173, before the word ``tonnage'', wherever it appears, 
add the word ``register''.


Sec.  69.175  [Amended]

0
53. Amend Sec.  69.175 as follows:
0
a. In paragraph (a):
0
i. After the words ``two net'', add the word ``register''; and
0
ii. Remove the words ``one net tonnage'', and add, in their place, the 
words ``one net register tonnage corresponding to the lower gross and 
net register tonnages'';
0
b. In paragraph (b), after the words ``two net'', add the word 
``register''; and
0
c. In paragraph (c):
0
i. After the words ``low net'', add the word ``register''; and
0
ii. After the words ``On these vessels,'' add the words ``a load line 
must be assigned at a level below the line of the second deck, and''.


Sec.  69.177  [Amended]

0
54. Amend Sec.  69.177 as follows:
0
a. In paragraph (a)(1), remove the words ``the Dual Measurement 
System'' and add, in their place, the words ``this subpart'';
0
b. In paragraph (a)(6)(i), after the words ``one net'', add the word 
``register'';
0
c. In paragraph (c), after the word ``two net'', add the word 
``register''; and
0
d. In paragraph (d), after the words ``side of the vessel'' add the 
words ``, except in the case of a freeboard deck line mark placed at 
the location of the second deck if the second deck is the actual 
freeboard deck for purposes of a vessel's load line assignment''.

0
55. In Sec.  69.181, revise Examples (1) and (2) to read as follows:


Sec.  69.181  Locating the line of the second deck.

* * * * *

[[Page 18732]]

[GRAPHIC] [TIFF OMITTED] TR31MR16.005


0
56. In Sec.  69.183, in paragaphs (a), (b), and (c), revise the images 
to read as follows:


Sec.  69.183  Figures.

    (a) * * *
    [GRAPHIC] [TIFF OMITTED] TR31MR16.006
    
* * * * *
    (b) * * *

[[Page 18733]]

[GRAPHIC] [TIFF OMITTED] TR31MR16.007

* * * * *
    (c) * * *
    [GRAPHIC] [TIFF OMITTED] TR31MR16.008
    
* * * * *

0
57. Revise the heading to subpart E to read as follows:

Subpart E--Simplified Regulatory Measurement System


Sec.  69.201  [Amended]

0
58. In Sec.  69.201, after the word ``Simplified'', add the word 
``Regulatory''.

0
59. Revise Sec.  69.205 to read as follows:


Sec.  69.205  Application for measurement services.

    (a) Except as noted under paragraph (c) of this section, to apply 
for measurement under this subpart, the vessel owner must complete an

[[Page 18734]]

Application for Simplified Measurement (form CG-5397). If the vessel is 
documented, or intended to be documented, as a vessel of the United 
States under part 67 of this chapter, the vessel owner must submit the 
application form to the National Vessel Documentation Center. 
Otherwise, the form is not further processed, but may be retained, at 
the vessel owner's option, as evidence of the tonnage measurement under 
this part.
    (b) The Application for Simplified Measurement (form CG-5397) must 
include the following information:
    (1) Vessel's name and number (e.g., official number, International 
Maritime Organization (IMO) number, or Coast Guard number).
    (2) Vessel hull identification number or other number assigned by 
builder.
    (3) Hull material.
    (4) Hull shape.
    (5) Overall length, breadth, and depth of vessel and each of the 
vessel's individual hulls.
    (6) Location of any propelling machinery (e.g., inside or outside 
of the hull).
    (7) Dimensions of the principal deck structure, if its volume 
exceeds the volume of the hull.
    (c) At the vessel owner's option, a Builder's Certification and 
First Transfer of Title (form CG-1261), which includes the same 
information specified in paragraph (b) of this section may be submitted 
to the National Vessel Documentation Center instead of the Application 
for Simplified Measurement for a vessel that is documented, or intended 
to be documented, as a vessel of the United States under part 67 of 
this chapter.


Sec.  69.207  [Amended]

0
60. In Sec.  69.207(a):
0
a. Remove the word ``half''; and
0
b. Remove the text ``.05'' and add, in its place, the word ``tenth''.

0
61. Amend Sec.  69.209 as follows:
0
a. Revise the section heading;
0
b. In heading of paragraph (a), after the word ``Gross'', add the word 
``register'';
0
c. In paragraph (a), after the word ``gross'', wherever it appears, add 
the word ``register'';
0
d. In the heading of paragraph (b), after the words ``Net'', add the 
word ``register'';
0
e. In paragraphs (b)(1) and (2), after the words ``net'' and ``gross'', 
wherever they appear, add the word ``register'';
0
f. Add paragraph (c).
    The revision reads as follows:


Sec.  69.209  Gross and net register tonnages.

* * * * *
    (c) Certification of measurement. For a vessel that is documented 
as a vessel of the United States under part 67 of this chapter, the 
vessel's Certificate of Documentation serves as evidence of measurement 
under this subpart. For all other vessels, a completed Application for 
Simplified Measurement (form CG-5397) serves as evidence of the tonnage 
measurement under this part.

0
62. Add Sec.  69.211 to read as follows:


Sec.  69.211  Treatment of novel type vessels.

    Refer questions regarding the application of the tonnage 
measurement rules under this subpart to novel type vessels to the 
Commandant.

    Dated: March 8, 2016.
J.G. Lantz,
Director, Commercial Regulations and Standards, U.S. Coast Guard.
[FR Doc. 2016-05623 Filed 3-30-16; 8:45 am]
 BILLING CODE 9110-04-P