[Federal Register Volume 62, Number 247 (Wednesday, December 24, 1997)]
[Rules and Regulations]
[Pages 67526-67537]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-33477]
[[Page 67525]]
_______________________________________________________________________
Part VII
Department of Transportation
_______________________________________________________________________
Coast Guard
_______________________________________________________________________
33 CFR Part 151
46 CFR Part 1, et al.
Alternate Compliance via Recognized Classification Society and U.S.
Supplement to Rules; Final Rule
Federal Register / Vol. 62, No. 247 / Wednesday, December 24, 1997 /
Rules and Regulations
[[Page 67526]]
DEPARTMENT OF TRANSPORTATION
Coast Guard
33 CFR Part 151
46 CFR Parts 1, 8, 31, 69, 71, 91, 107, 153, and 154
[CGD 95-010]
RIN 2115-AF11
Alternate Compliance via Recognized Classification Society and
U.S. Supplement to Rules
AGENCY: Coast Guard, DOT.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Coast Guard is issuing regulations to provide owners of
U.S. tank vessels, passenger vessels, cargo vessels, miscellaneous
vessels and mobile offshore drilling units an alternative method to
fulfill the requirements for vessel design, inspection and
certification. Under this final rule, the Coast Guard can issue a
certificate of inspection based upon reports by a recognized,
authorized classification society that the vessel complies with the
International Convention for the Safety of Life at Sea (SOLAS), 1974,
as amended, the International Convention for the Prevention of
Pollution from Ships, 1973, as modified by the Protocol of 1978
relating thereto (MARPOL 73/78), other applicable international
conventions, classification society rules and other specified
requirements. This new procedure will reduce the burden on vessel
owners and operators by establishing an alternative to the current
Coast Guard inspection system that results in plan reviews and
inspections by the vessel's classification society as well as by the
Coast Guard.
DATES: This final rule is effective January 23, 1998. Section 8.440
applied to existing vessels as of July 31, 1997. The incorporation by
reference of certain publications listed in the rule is approved by the
Director of the Federal Register on January 23, 1998.
ADDRESSES: Documents as indicated in this preamble are available for
inspection or copying at the office of the Executive Secretary, Marine
Safety Council (G-LRA/3406), U.S. Coast Guard Headquarters, 2100 Second
Street SW., room 3406, Washington, DC 20593-0001, between 9:30 a.m. and
2 p.m., Monday through Friday, except Federal holidays. The telephone
number is 202-267-1477.
FOR FURTHER INFORMATION CONTACT: LCDR Daniel Pippenger, Marine Safety
and Environmental Protection (G-MSE-1), telephone (202) 267-2997, fax
(202) 267-4816.
SUPPLEMENTARY INFORMATION:
Regulatory History
On December 27, 1996, the Coast Guard published an interim rule
entitled ``Vessel Inspection Alternatives; Classification Procedures''
in the Federal Register (61 FR 68510). The Coast Guard received 17
letters commenting on the interim rule. No public hearing was
requested, and none was held.
Background and Purpose
On October 4, 1994, the Coast Guard published a notice of proposed
rulemaking (NPRM) entitled ``Alternate Inspection Compliance Programs
for the U.S. Maritime Industry'' in the Federal Register (59 FR 50537).
In the comments submitted in response to this NPRM, members of the U.S.
maritime industry noted the continuing economic pressure on the U.S.
oceangoing merchant fleet and commercial shipbuilding industry.
Additional comments were submitted calling for reduction of the cost
disadvantage attributed to Coast Guard inspection and certification of
U.S. merchant vessels in order to improve the international
competitiveness of the U.S. merchant fleet.
In order to address these concerns, the Coast Guard sought a means
to alleviate the cost burdens on the maritime industry that resulted
from the Coast Guard inspection program. The Coast Guard has had
authority under 46 U.S.C. Sec. 3116 to rely on reports, documents and
certificates issued by the American Bureau of Shipping (ABS) in
carrying out its responsibilities for safety of U.S. merchant vessels
and to delegate to ABS the inspection or examination of these vessels.
The Coast Guard had in fact delegated to ABS the authority to issue
certain certificates required by international conventions, such as the
International Convention for the Safety of Life at Sea (SOLAS) Cargo
Ship Safety Construction Certificate. Compliance with these standards
is required for oceangoing vessels, i.e. vessels trading in foreign
countries. Additionally, insurance companies require that, before a
vessel is insured, it be classed. This means that a classification
society must survey a vessel for compliance with its class rules. Class
rules are rules developed by the particular classification society to
cover the design, construction and maintenance of vessels. To ensure
compliance with these class rules and with international standards,
classification societies perform surveys on vessels using qualified
marine surveyors. Many of the items examined by the classification
society surveyors are the same as those examined by Coast Guard marine
inspectors in their inspections for certification.
Thus, there is duplication of effort between the Coast Guard and
the ABS involving safety of vessels that results in extra costs to U.S.
vessel owners. In light of the authority in 46 U.S.C. 3316 to delegate
vessel inspections and examinations to ABS, the Coast Guard, in order
to address the concerns of the vessel owners regarding these costs,
examined the feasibility of an alternative to the current situation
that would avoid the duplication of inspections between ABS and the
Coast Guard. A joint Coast Guard/ABS task force compared the Coast
Guard requirements in the Code of Federal Regulations (CFR) to the
class requirements in ABS class rules, SOLAS, and the International
Convention for the Prevention of Pollution from Ships, as amended,
(MARPOL 73/78) concerning the design, construction and safety systems
for oceangoing merchant vessels. The purpose of this comparison was to
identify redundancies between the requirements and to determine if the
class and international requirements, which U.S. vessels must currently
comply with, could be used in place of Coast Guard regulatory
requirements. The standard used was whether compliance with the class
and international standards would achieve a level of safety equivalent
to compliance with Coast Guard regulatory requirements.
The task force determined that many Coast Guard regulatory
requirements could be satisfied by certification of compliance with ABS
classification rules, SOLAS, MARPOL 73/78, or combination of the three.
This led to the development of a U.S. Supplement to the ABS
classification rules. This supplement addresses those areas where
current Coast Guard requirements are not embodied by either ABS
classification rules or international conventions.
The Coast Guard concluded that the design requirements and survey
provisions of ABS classification rules, applicable international
conventions and the U.S. Supplement to the ABS classification rules
provide a level of safety equivalent to corresponding Federal
regulations.
As a result of this effort, the Alternate Compliance Program (ACP)
was developed to reduce redundant inspection efforts without
jeopardizing safety. The Coast Guard expects that,
[[Page 67527]]
under the ACP, vessel owners and operators will have reduced vessel
down time, greater flexibility in scheduling inspections, and greater
flexibility in meeting required standards.
The Coast Guard conducted an ACP pilot program, which was announced
by the Federal Register notice of February 3, 1995 (60 FR 6687). Its
purpose was to test and evaluate the standards and procedures developed
for the ACP. Sixty-two ships were enrolled in the pilot program which
ended on July 31, 1997. The ACP was implemented on that date under the
regulations described in the following paragraphs.
On June 22, 1995, the Coast Guard published a NPRM entitled
``Alternate Compliance via Recognized Classification Society and U.S.
Supplement to Rules'' in the Federal Register (60 FR 32478). The NPRM
proposed regulatory changes to allow owners, operators, shipbuilders,
and designers of U.S. flagged tank vessels, passenger vessels, cargo
vessels, miscellaneous vessels and mobile offshore drilling units to
use the services of a recognized classification society to conduct
inspection and plan review functions now performed by the Coast Guard.
The NPRM proposed establishment of the ACP through addition of new
sections in 46 CFR parts 31 (31.01-3), 71 (71.15-5), 91 (91.15-5), and
107 (107.205). These sections would allow the owner or operator of a
vessel to submit the vessel for inspection by a recognized
classification society. The classification society would survey the
vessel and document compliance with applicable international
requirements, class rules and its U.S. supplement. The cognizant Coast
Guard Officer-in-Charge, Marine Inspection, could then issue a
certificate of inspection based upon the classification society's
reports documenting that the vessel is classed and that it complies
with all applicable requirements.
On December 27, 1996, the Coast Guard published an interim rule
entitled ``Vessel Inspection Alternatives; Classification Procedures''
in the Federal Register (61 FR 68510). This rulemaking with the
addition of other 46 CFR sections not included in the NPRM, implemented
the ACP program.
Discussion of Comments and Changes
In a continuous effort to refine the ACP, several minor technical
changes are needed to facilitate clear application of this rule.
The Coast Guard amended the text of 46 CFR 8.450 to clarify the
status of international certificates issued by a classification society
whose authority to participate in the ACP is terminated. If a
classification society is no longer eligible to participate in the ACP,
the certificates issued by that society would remain valid subject to
any termination of authorization to issue those certificates on behalf
of the Coast Guard as detailed in Sec. 8.330. Also, the Coast Guard
will notify a vessel owner of the time frame required for such action.
Because of the many variables involved in the possible termination of
authority of a classification society to participate in the ACP, such
as the reason for termination or the number of ships involved, it is
not reasonable to set a specific time limit for accomplishment of the
required action.
The current regulatory text regarding four of the certificates
listed in Sec. 8.320 (International Certificate of Fitness for the
Carriage of Dangerous Chemicals in Bulk; International Certificate of
Fitness for the Carriage of Liquefied Gases in Bulk; MARPOL 73/78
International Oil Pollution Prevention Certificate; and MARPOL 73/78
International Oil Pollution Prevention Certificate for the Carriage of
Noxious Liquid Substances in Bulk) allows only the Coast Guard to issue
these certificates to U.S. flag vessels. The intent of this rulemaking
is to allow certain classification societies to issue these
certificates on behalf of the U.S. as well. Therefore, modification to
33 CFR part 151, 46 CFR part 153 and 154 are necessary.
In Sec. 8.100, the definition of ``MARPOL 73/78'' was changed to be
consistent with the definition in 33 U.S.C. 1901.
As the ACP has been implemented, the Coast Guard has recognized
that additional references to rules and approved supplements are
necessary. Because a supplement is approved related to a specific year
of classification society rules and international conventions, it is
appropriate to update and approve the supplement each time a new set of
classification society rules are approved. Therefore, each year, the
Coast Guard anticipates approving and incorporating a set of
classification society rules and a companion supplement. To facilitate
this process, the Coast Guard eliminated the direct listing of approved
classification society rules and supplements in the applicable 46 CFR
parts (31, 71, 91, and 107) and modified the language of those sections
to refer the user to one section for a list of incorporated
classification society rules and supplements in Sec. 8.110(b).
In Sec. 8.320, the list of certificates requires correction. The
``SOLAS Certificate of Fitness for the Carriage of Dangerous Chemicals
in Bulk'' and the ``SOLAS Certificate of Fitness for the Carriage of
Liquefied Gases in Bulk'' are correctly titled the ``International
Certificate of Fitness for the Carriage of Dangerous Chemicals in
Bulk'' and the ``International Certificate of Fitness for the Carriage
of Liquefied Gases in Bulk''.
Participation of a vessel in the ACP is contingent upon several
items in Sec. 8.410. One requirement is that the vessel be ``classed''
by a recognized classification society that is authorized to
participate in the ACP. To clearly convey the Coast Guard's
understanding of what it means for a vessel to be ``classed,'' the
Coast Guard added a definition of the term to Sec. 8.100.
The applicability in Sec. 8.410 specified that the ACP applies to
all U.S. flag vessels that meet certain requirements. However, the ACP
is currently open to U.S. flag tank vessels, passenger vessels, cargo
vessels, miscellaneous vessels, and mobile offshore drilling units
(MODUs). To accurately reflect these limitations, Sec. 8.410 will refer
each vessel type to the appropriate subchapter of 46 CFR containing the
authorization to use the ACP in place of other requirements.
46 CFR subchapter G, Sec. 69.27(b) requires an organization to be a
full member of the International Association of Classification
Societies (IACS) and incorporated under the laws of the United States,
a State of the United States, or the District of Columbia to be
eligible for delegated tonnage measurement authority. There is no
statutory requirement for these criteria and they are inconsistent with
the intent of the ACP rulemaking, which is to allow classification
societies, regardless of home country, meeting the standards in part 8,
to be recognized and delegated authority to perform services on behalf
of the Coast Guard. Therefore, the final rule modifies this section so
the ACP can function as intended.
The Coast Guard received a total of 17 letters that commented on
the ACP interim rule. All letters expressed support for the program.
One comment specifically mentioned the reduced cost and increased
options the ACP will give the maritime industry. Some letters contained
suggestions for improvement in areas that may need adjustment. The
following discussion addresses these comments.
Ten comments addressed issues relating to reciprocity. One comment
noted that not all classification societies can ``certify'' in their
own home country. These comments recommended modification of acceptance
to include recognition when authorization to ABS is equal to that
allowed by the country of origin. The Coast Guard will delegate
[[Page 67528]]
the authority to issue listed certificates when all of the conditions
for reciprocity, recognition, and authorization are met. This approach
is consistent with the language in the Coast Guard Authorization Act of
1996 (Pub. L. 140-324), and will result in the most efficient
delegation program. To allow the appropriate flexibility needed for
successful application of the ACP program, the Coast Guard will modify
Sec. 8.120(a). The Coast Guard will grant authorization to a foreign
classification society to issue international certificates on a ``case-
by-case'' basis. Some of the factors that the Coast Guard may consider
in granting authorization are:
Whether the foreign classification society has a
satisfactory port state control history;
Whether the foreign classification society has met the
criteria contained in 46 CFR 8.230;
Whether the foreign classification society developed a
U.S. supplement to its class rules for use in the ACP that is in
accordance with 46 CFR 8.430, as appropriate; and whether the home
government of the foreign classification society has provided, or will
simultaneously provide, ABS sufficient access to inspect, certify and
provide related services to vessels documented in that country.
One of the comments suggested that the Coast Guard establish an
annual review of reciprocity provisions. An annual review of
reciprocity is unnecessary. In the event that the American Bureau of
Shipping undergoes any changes in their foreign government
authorizations, it is reasonable to expect that the Coast Guard will be
notified by the American Bureau of Shipping of any such changes, at
which time the Coast Guard will review the applicable reciprocity
provisions for appropriate resolution.
Two comments recommended the removal of the 2-year trial period
prior to being eligible to participate in the ACP as required in
Sec. 8.420. The Coast Guard does not agree. The ACP is a very
comprehensive program that covers issues not addressed by international
convention requirements. In the ACP, participating vessels have limited
involvement with the Coast Guard and the Certificate of Inspection
(COI) is based largely on classification society reports. The Coast
Guard has limited experience with foreign classification societies.
Therefore, it is prudent to maintain this 2-year trial period in order
to gain experience with foreign classification societies, their rules,
surveyors, and procedures. Additionally, the 2-year period will allow
the Coast Guard to assess the capability and performance of the
classification society to ensure they are adequate to perform the
extensive delegations granted under the ACP. The Coast Guard is making
no change to this requirement.
One comment requested that the Safety Certificate for High Speed
Craft be added to the functions that may be delegated in Sec. 8.320.
The Coast Guard does not agree. The High Speed Craft Code is new and
has had very limited application in the U.S. Until further experience
and familiarity are gained with the High Speed Craft Code for U.S. flag
vessels, the Coast Guard does not plan to delegate this function.
One comment suggested adding the SOLAS Passenger Vessel Safety
Certificate to those listed in Sec. 8.320. Passenger vessels may
qualify for participation in the ACP. However, the Coast Guard intends
to maintain first hand involvement in the issuance of this certificate
due to the degree of risk involved. The Coast Guard will retain
authority for issuance of the SOLAS Passenger Vessel Safety
Certificate.
One comment was from the United States Environmental Protection
Agency (EPA). The EPA expressed concern about authorizing a
classification society to issue the International Air Pollution
Prevention (IAPP) and the Engine International Air Pollution Prevention
(EIAPP) certificates under MARPOL Annex VI. Section 8.320 does not
permit delegation of these certificates to a classification society. No
change is made in response to this comment.
One comment addressed the definition of the term ``gross tons'' in
Sec. 8.100. The comment stated that the terms ``method used by flag
state administration'' are confusing and unnecessary since subpart A is
limited to U.S. flag vessels. The Coast Guard does not concur. This
terminology is necessary because classed tonnage is an element of the
minimum standards for a recognized classification society in
Sec. 8.230. The Coast Guard intends to allow class societies to count
all vessel tonnage they class, regardless of the flag administration.
Because not all administrations apply the International Convention on
Tonnage Measurement of Ships, 1969, to all measured vessels, this
clause is necessary.
One comment questioned the use of the American National Standards
Institute (ANSI) standard ANSI/ASQC Q9001 in place of the international
standard ISO 9001. The Coast Guard agrees that the international
standard is also acceptable. As stated in the rule, a classification
society may meet the requirements of the ANSI/ASQC Q9001 or an
equivalent quality standard. Therefore, the Coast Guard makes no change
in response to this comment.
Five comments recommended changes to the applicability of the ACP.
These comments noted that the ACP should not be restricted only to
vessels engaged on international voyages but should be open to all
vessels that meet international requirements regardless of their ports
of call. The term international voyages was used in Sec. 8.410 to
ensure that vessels in the ACP carried all applicable international
certificates and was not intended to restrict ACP to only those vessels
that engage on international voyages. The Coast Guard will modify the
wording of Sec. 8.410(b). Instead of the phrase ``engaged in
international voyages'', the Coast Guard will use the term
``certificated for international voyages''. This clearly expresses the
intent that a vessel participating in the ACP will have a valid set of
all certificates necessary to engage in an international voyage.
The ACP is solidly based on the safety system comprised of the
following elements: Compliance with all relevant international
requirements, classification society rules, and the relevant U.S.
supplement. This safety system is being accepted in the ACP as an
equivalent to the system embodied in Title 46 of the CFR. Thus, U.S.
flagged vessels that do not carry valid and appropriate certificates
necessary to engage in international voyages, regardless of class, are
not eligible to participate in the ACP.
Two comments related to the use of exclusive surveyors for all work
done on behalf of the Coast Guard. One comment requested the use of
exclusive surveyors for all ACP work. With the exception of tonnage
measurement, the Coast Guard agrees and notes that this is already
required under Sec. 8.130(a)(25). Restricting tonnage measurement to
exclusive surveyors is contrary to current practice and would reduce
flexibility and probably result in higher cost to the public. Section
8.130(a)(25) has been modified to allow the use of part-time employees
or independent contractors to provide tonnage measurement services.
The other comment requested the use of one classification society's
exclusive surveyors by other classification societies if the two
societies involved have a bilateral agreement. The Coast Guard does not
agree. When authorizing a classification society to do work related to
the ACP, the Coast Guard accepts a classification society's rules,
survey procedures and processes as an acceptable alternative to federal
[[Page 67529]]
regulations. A classification society's own exclusive surveyors are in
the best position to accurately enforce these items. Given the scope of
delegation and the minimal Coast Guard presence on ACP vessels, the
Coast Guard makes no change in response to this comment. However, based
on these comments, the Coast Guard has added a definition of
``exclusive surveyor'' to Sec. 8.100 for clarification.
One comment recommended a specific classification society not be
allowed to participate in the ACP. The Coast Guard appreciates the
intent of the individual to improve the program. All applications for
recognition and authorization are carefully reviewed in accordance with
part 8. Any classification society meeting these requirements may enter
the program. The Coast Guard has made no change in response to this
comment.
One comment recommended that authority to issue certificates be
revoked if reciprocity conditions were no longer being satisfied.
Reciprocity is required by U.S. law in the Coast Guard Authorization
Act of 1996 (Pub. L. 104-324, 110 Stat. 3901). The Coast Guard agrees
and has modified Secs. 8.330 and 8.450 accordingly.
One comment contained recommendations on document availability. It
requested all documents to be maintained in a public docket. The Coast
Guard disagrees. Some information submitted during the application for
recognition of a classification society is clearly proprietary and
therefore inappropriate for release. Information regarding recognition
and authorization status will be available in accordance with the
Freedom of Information Act. The Coast Guard is making no change in
response to this comment.
One comment on Sec. 8.320(a)(7) recommended the removal of the term
``SOLAS'' from the ``SOLAS Mobile Offshore Drilling Unit Safety
Certificate.'' The Coast Guard agrees and will correct this certificate
title to ``International Maritime Organization (IMO) Mobile Offshore
Drilling Unit Safety Certificate.''
One comment stated that load line and tonnage admeasurement should
be harmonized to require reciprocity with the delegations under ACP.
The Coast Guard does not agree. Delegation of these functions is
permitted under 46 U.S.C. 5107 and 46 U.S.C. 14103, respectively, and
reciprocity is not an element of the conditions of delegation. The
Coast Guard is making no change in response to this comment.
One comment stated that a recognized classification society should
have the right to refuse to conduct services. The Coast Guard agrees.
However, the interim rule does not restrict the classification society
actions in this regard. In consideration of this comment, the Coast
Guard modified the text in Sec. 8.130(a)(10) to recognize that a
classification society may have occasion to refuse to attend a vessel
for which it has performed a delegated function on behalf of the Coast
Guard, when requested by the Coast Guard.
One comment requested that documents be ``in a language which is
mutually acceptable to both parties.'' The Coast Guard does not agree.
The Coast Guard requires documents related to delegated functions to be
in English. There is no change to Sec. 8.130(a)(18) or Sec. 8.230(a)(7)
and (8) in response to this comment.
One comment suggests that the Coast Guard accept oversight
monitoring by other administrations. The Coast Guard agrees that
oversight and monitoring activities conducted by other administrations
may be useful to the delegated functions of the ACP. The Coast Guard
does not agree that any added text to Sec. 8.130(a)(22) is warranted.
The intent of this agreement condition is to ensure that an authorized
classification society will allow the Coast Guard the necessary access
to perform its own oversight activities. This agreement condition does
not prohibit other means of attaining information as part of the Coast
Guard's oversight activities.
One comment stated that reciprocity was intended to solidify ABS
market shares and not to advance marine safety. The Coast Guard
disagrees. Reciprocity is included because it is required under the
Coast Guard Authorization Act of 1996 (Pub. L. 104-324). This provision
may increase the choices available to the marine industry and result in
lower costs. The Coast Guard makes no change in response to this
comment.
One comment requested amendment to Sec. 8.410(b) to further expand
ACP applicability to foreign flag MODUs required to obtain a letter of
compliance under 33 CFR subchapter N. The Coast Guard does not agree.
The ACP is available for U.S. flag vessels as an alternative to
compliance with U.S. regulations. The Coast Guard reiterates that the
safety system of class rules, international conventions, and the
supplement to class rules is considered as an alternative to U.S.
regulations. Foreign flag vessels are not subject to U.S. vessel
standards and therefore, are not considered in this program. There is
no change in response to this comment.
One comment welcomed the ACP because COIs can be issued by foreign
class societies. The Coast Guard agrees that the ACP allows foreign
classification societies to apply for recognition and authorization to
perform delegated functions under part 8. However, the Coast Guard
retains the authority to issue COIs.
One comment recommended a change in the term ``serviced'' in
Sec. 8.230(a)(17). The Coast Guard agrees and has clarified the
language. The change will ensure that vessels on which a delegated
function has been performed comply with all statutory requirements
related to the delegation functions.
Three comments encouraged user fee reduction. The Coast Guard
agrees that participation in ACP may result in lower fees. However, the
purpose of this rulemaking is not to make changes to user fees. There
are no changes made to this rule in response to this comment.
Two comments concerned supplements. One pointed out the necessity
of the supplement. The other encouraged that the supplement be
simplified and used to lead to harmonization with industry standards.
The Coast Guard agrees with the spirit of these comments. In general, a
supplement for the ACP contains cites from four sources:
Statutory Requirements,
SOLAS Interpretations,
Critical safety issues where the combination of
classification society rules and international conventions do not
provide an equivalent level of safety to the CFR, or
Other requirements that apply to all ships (primarily
navigation safety and pollution prevention).
Because all classification society rules are not identical in
scope, the supplement is needed. The Coast Guard is actively pursuing
harmonized international interpretations to SOLAS. Where the
combination of classification society rules and international
conventions do not provide an equivalent level of safety, the Coast
Guard intends to pursue these items individually with the
classification society or through amendment of the international
convention as appropriate. Ideally, these Coast Guard efforts may
result in an equivalent level of safety and remove the need for
additions to classification society rules. In addition, the Coast Guard
has pursued harmonization with industry standards and will continue to
seek additional opportunities to do so. There are no changes as a
result of these comments.
One comment encouraged the Coast Guard to accept foreign class
standards without rigid adherence to U.S. regulations. The Coast Guard
agrees that an individual regulation, considered in
[[Page 67530]]
isolation, may not always be the best or most suitable standard for a
particular vessel. However, the Coast Guard considers the Code of
Federal Regulations (CFR) to represent a comprehensive set of standards
for commercial vessel safety. The Coast Guard has worked extensively
with the U.S. maritime industry in the application of standards other
than those specifically prescribed in the CFR, and has allowed use of
equivalent standards in many cases. The Coast Guard will ensure that a
double standard does not develop between vessels that participate in
ACP and those that do not. ACP standards will remain equivalent in
scope and result in no reduction in safety. There is no change made as
a result of this comment.
Two comments addressed reporting requirements for port-state
control violations. One comment recommended a change in the term
``ensure'' in Sec. 8.230 paragraphs (a)(16) and (a)(17). The comment
contends that no classification society has the power to ensure
compliance. Compliance is dependent on factors outside of the control
of the classification societies. The Coast Guard agrees and will modify
the text to more accurately reflect this condition.
One comment recommended that Oil Spill Recovery Vessels (OSRVs) be
included in ACP with appropriate modification to corresponding
regulations for this vessel type. The absence of specific regulations
for OSRVs precludes their inclusion in the ACP at this time. The Coast
Guard will consider participation of OSRVs after determining what
regulations apply to them.
One comment encouraged classification society fee restraints for
vessels participating in the ACP. While the intent of this rulemaking
is to reduce the cost associated with dual inspection, the Coast Guard
will not be involved with the establishment of classification society
fees for services related to the ACP program. The ACP is a voluntary
program and traditional Coast Guard inspection remains available to
U.S. flag vessels that require Coast Guard certification.
One comment expressed concern about the ACP being used to bring
more vessels under ABS class. The Coast Guard disagrees. Initially, the
ACP was developed with ABS based on the extensive experience that the
Coast Guard has with delegation of certification functions to ABS.
Until the passage of the Coast Guard Authorization Act of 1996 (Pub. L.
104-324), delegation of this nature was restricted by law to U.S.
classification societies. The ACP is now available to foreign based
classification societies as well. There is no change made as a result
of this comment.
One comment questioned how appeals will be handled. There are two
different levels of appeals. In the first level, a vessel owner,
operator, or builder may desire to appeal the decision of an ACP
authorized classification society or the Coast Guard. This procedure is
defined in Coast Guard policy guidance and is published as Navigation
and Vessel Inspection Circular (NVIC) No. 2-95, Change 1. On another
level, a classification society may wish to appeal the decision of the
Coast Guard with respect to its application for recognition. There was
no appeal provision in the Interim Rule for this condition. In response
to this comment, the Coast Guard has added a provision for a
classification society to appeal the decision of the Coast Guard in
Sec. 8.420, related to the recognition application.
One comment recommended that the criteria for recognition be
modified to be performance based. The comment suggested dropping the
size and age criteria and the use of the term ``adequate'' within the
list. The Coast Guard agrees in part. Performance is important.
However, other criteria required by the rule indicate characteristics
of the classification society that the Coast Guard determines to be
necessary to assess quality prior to recognition. Considering the
importance of the delegated work, no change is made in response to this
comment.
Incorporation by Reference
The Director of the Federal Register has approved the material in
Sec. 8.110 for incorporation by reference under 5 U.S.C. 552 and 1 CFR
part 51. Copies of the material are available from the sources listed
in that section.
Regulatory Evaluation
This rule is not a significant regulatory action under section 3(f)
of Executive Order 12866 and does not require an assessment of
potential costs and benefits under section 6(a)(3) of that order. It
has not been reviewed by the Office of Management and Budget under that
order. It is not significant under the regulatory policies and
procedures of the Department of Transportation (DOT) (44 FR 11040;
February 26, 1979).
The Coast Guard expects the economic impact of this rule to be so
minimal that a full Regulatory Evaluation under paragraph 10e of the
regulatory policies and procedures of DOT is unnecessary.
The Coast Guard expects this rule to provide an economic benefit to
the owners and operators of U.S. flagged vessels. Currently, 549 U.S.
vessels may be eligible to participate in this optional ACP. The Coast
Guard estimates that while a vessel owner may have to pay an additional
$5,000 in classification society fees for functions presently performed
by the Coast Guard, the savings in design, construction and operating
costs will recover this expense many times over during the lifetime of
the vessel. Moreover, ships built and maintained to SOLAS, MARPOL 73/
78, recognized classification society rules and accepted U.S.
supplement are expected to experience greater competitiveness in the
worldwide shipping market.
Additionally, streamlining the certification process will reduce
time frames for Coast Guard involvement in the COI process from an
average of over 50 hours to 10 hours or less. Because the vessel is
already inspected by the classification society, this program will
reduce duplication of effort, decrease vessel ``down time'' and permit
greater scheduling flexibility. Lower construction and operating costs,
greater flexibility for the vessel in the global market and additional
availability for vessel hire will offset the costs incurred through the
alternate plan review and inspection process utilizing a recognized
classification society. The Coast Guard specifically solicits comments
on potential costs, savings and benefits.
The Coast Guard expects no impact to the regulatory assessment as a
result of changes to this rulemaking.
Small Entities
Under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.), the
Coast Guard considered whether this rule will have a significant
economic impact on a substantial number of small entities. ``Small
entities'' include 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.
This rule change provides an alternative to complying with existing
regulations. The Coast Guard determined this rulemaking will have a
positive economic impact if the owner chooses to participate in the
ACP. Because of the current structure of the industry, it is not
expected that any small businesses will be affected by the rule.
However, under Section 601 of the Regulatory Flexibility Act, the Coast
Guard has provided a flexible approach which could benefit any small
[[Page 67531]]
businesses which choose to enter this industry. This rulemaking will
have no impact on vessel owners who do not choose to participate in
this program. Therefore, the Coast Guard certifies under section 605(b)
of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) that this
final rule will not have a significant economic impact on a substantial
number of small entities.
Assistance for Small Entities
In accordance with section 213(a) of the Small Business Regulatory
Enforcement Fairness Act of 1996 (Pub. L. 104-121), the Coast Guard
offers to assist small entities in understanding the rule so that they
may better evaluate its effects on them and participate in the
rulemaking process. Assistance with provisions of this final rule can
be obtained by contacting Commandant (G-MSE), Office of Design and
Engineering Standards, 2100 Second Street, SW., Washington, DC 20593-
0001, telephone 202-267-2997.
Collection of Information
This final rule provides for a collection of information under the
Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.). Vessel
inspection reports are needed to document the compliance of a vessel
with recognized classification society rules, the accepted U.S.
supplement to rules, and applicable international maritime safety and
marine environmental conventions. Classification societies recognized
to participate in this program will submit copies of reports they
routinely prepare to the Coast Guard.
As required by 5 U.S.C. 3507(d), the Coast Guard submitted a copy
of this rule to the Office of Management and Budget (OMB) for its
review of the collection of information. OMB has approved the
collection. The section numbers are: Secs. 31.01-3, 71.15-5, 91.15-5,
and 107.205, and the corresponding approval number from OMB is OMB
Control Number 2115-0626, which expires on June 30, 1999.
Persons are not required to respond to a collection of information
unless it displays a currently valid OMB control number.
Federalism
The Coast Guard has analyzed this rule under the principles and
criteria contained in Executive Order 12612 and has determined that
this rule does not have sufficient federalism implications to warrant a
Federalism Assessment.
The authority to regulate safety requirements of U.S. vessels is
committed to the Coast Guard by statute. Furthermore, since these
vessels tend to move from port to port in the national market place,
these safety requirements need to be national in scope to avoid
numerous, unreasonable and burdensome variances. Therefore, this action
will preempt State action addressing the same matter.
Federal Preemption
Historically, the Coast Guard has inspected vessels for their
compliance with Federal regulations that address the safety of a vessel
and protection of the marine environment. These regulations establish
design, construction, equipment, manning and other inspection standards
that are part of international conventions to which the U.S. is a party
as well as other inspection standards that assure the safety of a
vessel participating in this alternative inspection program. The
certificate of inspection issued to a vessel by the Coast Guard as a
result of this inspection program indicates that the vessel is safe for
the service in which it is engaged. It is the Coast Guard's opinion
that the Supremacy Clause of the Constitution would preempt state and
local regulations that seek to impose different or higher standards
governing the inspection of a U.S. vessel as established in these
regulations.
Environment
The Coast Guard considered the environmental impact of this rule
and concluded that under paragraph 2.B.2 of Commandant Instruction
M16475.1B, this rule is categorically excluded from further
environmental documentation. This rule is excluded based on its
inspection and equipment aspects. A Categorical Exclusion Determination
is available in the docket for inspection or copying where indicated
under ADDRESSES.
Since the combination of classification society rules, applicable
international conventions and the U.S. supplement to the rules have
been determined to provide a level of safety equivalent to current
Coast Guard regulations, the Coast Guard expects that this rulemaking
will have no adverse environmental impact.
List of Subjects
33 CFR Part 151
Administrative practice and procedure, Oil pollution, Penalties,
Reporting and recordkeeping requirements, Water pollution control.
46 CFR Part 1
Administrative practice and procedure, Organization and functions
(Government agencies), Reporting and recordkeeping requirements.
46 CFR Part 8
Administrative practice and procedure, Incorporation by reference,
Organization and functions (Government agencies), Reporting and
recordkeeping requirements.
46 CFR Part 31
Marine safety, Reporting and recordkeeping requirements, Tank
vessels.
46 CFR Part 69
Measurement standards, Penalties, Reporting and recordkeeping
requirements, Vessels.
46 CFR Part 71
Marine safety, Passenger vessels, Reporting and recordkeeping
requirements.
46 CFR Part 91
Cargo vessels, Marine safety, Reporting and recordkeeping
requirements.
46 CFR Part 107
Marine safety, Oil and gas exploration, Reporting and recordkeeping
requirements, Vessels.
46 CFR Part 153
Administrative practice and procedure, Cargo vessels, Hazardous
materials transportation, Marine safety, Reporting and recordkeeping
requirements, Water pollution control.
46 CFR Part 154
Cargo vessels, Gases, Hazardous materials transportation, Marine
safety, Reporting and recordkeeping requirements.
For the reasons set out in the preamble, under the authority of 46
U.S.C. 3306, the Coast Guard amends 33 CFR part 151 and 46 CFR parts 1,
8, 31, 69, 71, 91 107, 153, and 154 as follows:
PART 151--VESSELS CARRYING OIL, NOXIOUS LIQUID SUBSTANCES, GARBAGE,
MUNICIPAL OR COMMERCIAL WASTE, AND BALLAST WATER
1. The authority citation for part 151 continues to read as
follows:
Authority: 33 U.S.C. 1321(j)(1)(c) and 1903(b); E.O. 12777, 3
CFR, 1991 Comp. P. 351; 49 CFR 1.46.
2. Revise Sec. 151.19(c) to read as follows:
Sec. 151.19 International Oil Pollution Prevention (IOPP)
Certificates.
* * * * *
[[Page 67532]]
(c) An IOPP Certificate is issued by a COTP, OCMI, or a
classification society authorized under 46 CFR part 8, after a
satisfactory survey in accordance with the provisions of Sec. 151.17.
* * * * *
Sec. 151.37 [Amended]
3. In Sec. 151.37, in paragraphs (a), (b), and (c), remove the
words ``Coast Guard issues'' and add, in its place, the words ``Coast
Guard or a classification society authorized under 46 CFR part 8
issues''.
PART 1--ORGANIZATION, GENERAL COURSE AND METHODS GOVERNING MARINE
SAFETY FUNCTIONS
4. The authority citation for part 1 continues to read as follows:
Authority: 5 U.S.C. 552; 14 U.S.C. 633; 46 U.S.C. 7701; 49 CFR
1045, 1.46; Sec. 1.01-35 also issued under the authority of 44
U.S.C. 3507.
5. Add Sec. 1.03-15(h)(4) to read as follows:
Sec. 1.03-15 General.
* * * * *
(h) * * *
(4) Commandant (G-MSE) for appeals involving the recognition of a
classification society.
* * * * *
6. Revise part 8 to read as follows:
PART 8--VESSEL INSPECTION ALTERNATIVES
Subpart A--General
Sec.
8.100 Definitions.
8.110 Incorporation by reference.
8.120 Reciprocity.
8.130 Agreement conditions.
Subpart B--Recognition of a Classification Society
8.200 Purpose.
8.210 Applicability.
8.220 Recognition of a classification society.
8.230 Minimum standards for a recognized classification society.
8.240 Application for recognition.
8.250 Acceptance of standards and functions delegated under
existing regulations.
8.260 Revocation of classification society recognition.
Subpart C--International Convention Certificate Issuance
8.300 Purpose.
8.310 Applicability.
8.320 Classification society authorization to issue international
certificates.
8.330 Termination of classification society authority.
Subpart D--Alternate Compliance Program
8.400 Purpose.
8.410 Applicability.
8.420 Classification society authorization to participate in the
Alternate Compliance Program.
8.430 U.S. Supplement to class rules.
8.440 Vessel enrollment in the Alternate Compliance Program.
8.450 Termination of classification society authority.
Authority: 46 U.S.C. 3306; 46 U.S.C. 3316, as amended by Sec.
607, Pub. L. 104-324, 110 Stat. 3901; 46 U.S.C. 3703; 49 CFR 1.45,
1.46.
Subpart A--General
Sec. 8.100 Definitions.
Authorized Classification Society means a recognized classification
society that has been delegated the authority to conduct certain
functions and certifications on behalf of the Coast Guard.
Class Rules means the standards developed and published by a
classification society regarding the design, construction and
certification of commercial vessels.
Classed means that a vessel meets the classification society
requirements that embody the technical rules, regulations, standards,
guidelines and associated surveys and inspections covering the design,
construction and through-life compliance of a ship's structure and
essential engineering and electrical systems.
Commandant means the Commandant of the Coast Guard.
Delegated Function means a function related to Coast Guard
commercial vessel inspection which has been delegated to a
classification society. Delegated functions may include issuance of
international convention certificates and participation in the
Alternate Compliance Program under this part.
Delegated Function Related to General Vessel Safety Assessment
means issuance of the SOLAS Cargo Ship Safety Construction Certificate
or issuance of the SOLAS Cargo Ship Safety Equipment Certificate.
Exclusive Surveyor means a person who is employed solely by a
classification society and is authorized to conduct vessel surveys.
Independent surveyors, hired on a case-by-case basis, or surveyors of
another classification society are not considered exclusive surveyors
for the performance of delegated functions on behalf of the Coast
Guard.
Gross Tons means vessel tonnage measured in accordance with the
International Convention on Tonnage Measurement of Ships, 1969. Vessels
not measured by this convention must be measured in accordance with the
method utilized by the flag state administration of that vessel.
MARPOL 73/78 means the Protocol of 1978 relating to the
International Convention for the Prevention of Pollution from Ships,
1973, and includes the Convention which means the International
Convention for the Prevention of Pollution from Ships, 1973, including
Protocols I and II and Annexes I, II, and V thereto, including any
modification or amendments to the Convention, Protocols or Annexes
which have entered into force for the United States.
Officer in Charge, Marine Inspection (OCMI) means any person from
the civilian or military branch of the Coast Guard designated as such
by the Commandant and who, under the superintendence and direction of a
Coast Guard District Commander, is in charge of an inspection zone for
the performance of duties with respect to the inspection, enforcement,
and administration of 46 U.S.C., Revised Statutes, and acts amendatory
thereof or supplemental thereto, and rules and regulations thereunder.
Recognized Classification Society means the American Bureau of
Shipping or other classification society recognized by the Commandant
under this part.
SOLAS means International Convention for the Safety of Life at Sea,
1974, as amended.
Sec. 8.110 Incorporation by reference.
(a) Certain material is incorporated by reference into this
subchapter with the approval of the Director of the Federal Register
under 5 U.S.C. 552(a) and 1 CFR Part 51. To enforce any edition other
than that specified in paragraph (b) of this section, the Coast Guard
must publish notice of the change in the Federal Register and the
material must be available to the public. All material is available for
inspection at the Office of the Federal Register, 800 North Capitol
St., NW., Suite 700, Washington, DC and at the U.S. Coast Guard, Office
of Design and Engineering Standards, 2100 Second St., SW., Washington,
DC 20593-0001, and is available from the sources listed in paragraph
(b).
(b) The material incorporated by reference in this subchapter and
the sections affected are as follows:
American Bureau of Shipping (ABS)--Two World Trade Center, 106th
Floor, New York, NY 10048.
Rules for Building and Classing Steel Vessels, 1996--31.01-3(b), 71.15-
5(b), 91.15-5(b)
U.S. Supplement to ABS Rules for Steel Vessels for Vessels on
International
[[Page 67533]]
Voyages, 21 October 1996--31.01-3(b), 71.15-5(b), 91.15-5(b)
American National Standards Institute (ANSI)--11 West 42nd St., New
York, NY 10036.
ANSI/ASQC Q9001-1994, Quality Systems--Model for Quality Assurance in
Design, Development, Production, Installation, and Servicing, 1994--
8.230
Sec. 8.120 Reciprocity.
(a) The Commandant may delegate authority to a classification
society that has its headquarters in a country other than the United
States only to the extent that the flag state administration of that
country delegates authority and provides access to the American Bureau
of Shipping to inspect, certify and provide related services to vessels
flagged by that country. The Commandant will determine reciprocity on a
``case-by-case'' basis.
(b) In order to demonstrate that the conditions described in
paragraph (a) of this section are satisfied, a classification society
must provide to the Coast Guard an affidavit, from the government of
the country that the classification society is headquartered in,
listing the authorities delegated by the flag state administration of
that country to the American Bureau of Shipping, and indicating any
conditions related to the delegated authority.
(c) The Commandant will not consider an application for
authorization to perform a delegated function submitted under this part
until the conditions described in paragraph (a) of this section are
satisfied. Where simultaneous authorization by a foreign government for
ABS is involved, this requirement may be waived.
(d) The Commandant will not evaluate a classification society for
recognition until the conditions described in paragraph (a) of this
section are satisfied for at least one of the authorized delegations
being sought. Where simultaneous recognition by a foreign government
for ABS is involved, this requirement may be waived.
(e) The Commandant may make a delegation regarding load lines under
46 U.S.C. 5107 or measurement of vessels under 46 U.S.C. 14103 without
regard to the conditions described in paragraph (a) of this section.
Sec. 8.130 Agreement conditions.
(a) Delegated functions performed by, and statutory certificates
issued by, an authorized classification society will be accepted as
functions performed by, or certificates issued by, the Coast Guard,
provided that the classification society maintains compliance with all
provisions of its agreement with the Commandant. Any agreement between
the Commandant and a recognized classification society authorizing the
performance of delegated functions will be written and will require the
classification society to comply with each of the following:
(1) Issue any certificates related to a delegated function in the
English language.
(2) Maintain a corporate office in the United States that has
adequate resources and staff to support all delegated functions and to
maintain required associated records.
(3) Maintain all records in the United States related to delegated
functions conducted on behalf of the Coast Guard.
(4) Make available to appropriate Coast Guard representatives
vessel status information and records, including outstanding vessel
deficiencies or classification society recommendations, in the English
language, on all vessels for which the classification society has
performed any delegated function on behalf of the Coast Guard.
(5) Report to the Commandant (G-MOC) the names and official numbers
of any vessels removed from class for which the classification society
has performed any delegated function on behalf of the Coast Guard and
include a description of the reason for the removal.
(6) Report to the Commandant (G-MOC) all port state detentions on
all vessels for which the classification society has performed any
delegated function on behalf of the Coast Guard when aware of such
detention.
(7) Annually provide the Commandant (G-MOC) with its register of
classed vessels.
(8) Ensure vessels meet all requirements for class of the accepting
classification society prior to accepting vessels transferred from
another classification society.
(9) Suspend class for vessels that are overdue for special renewal
or annual survey.
(10) Attend any vessel for which the classification society has
performed any delegated function on behalf of the Coast Guard at the
request of the appropriate Coast Guard officials, without regard to the
vessel's location-- unless prohibited to do so under the laws of the
United States, the laws of the jurisdiction in which the vessel is
located, the classification society's home country domestic law, or
where the classification society considers an unacceptable hazard to
life and/or property exists.
(11) Honor appeal decisions made by the Commandant (G-MSE) or
Commandant (G-MOC) on issues related to delegated functions.
(12) Apply U.S. flag administration interpretations, when they
exist, to international conventions for which the classification
society has been delegated authority to certificate or perform other
functions on behalf of the Coast Guard.
(13) Obtain approval from the Commandant (G-MOC) prior to granting
exemptions from the requirements of international conventions, class
rules, and the U.S. supplement to class rules.
(14) Make available to the Coast Guard all records, in the English
language, related to equivalency determinations or approvals made in
the course of delegated functions conducted on behalf of the Coast
Guard.
(15) Report to the Coast Guard all information specified in the
agreement at the specified frequency and to the specified Coast Guard
office or official.
(16) Grant the Coast Guard access to all plans and documents,
including reports on surveys, on the basis of which certificates are
issued or endorsed by the classification society.
(17) Identify a liaison representative to the Coast Guard.
(18) Provide regulations, rules, instructions and report forms in
the English language.
(19) Allow the Commandant (G-M) to participate in the development
of class rules.
(20) Inform the Commandant (G-M) of all proposed changes to class
rules.
(21) Provide the Commandant (G-M) the opportunity to comment on any
proposed changes to class rules and to respond to the classification
society's disposition of the comments made by the Coast Guard.
(22) Furnish information and required access to the Coast Guard to
conduct oversight of the classification society's activities related to
delegated functions conducted on behalf of the Coast Guard.
(23) Allow the Coast Guard to accompany them on internal and
external quality audits and provide written results of such audits to
appropriate Coast Guard representatives.
(24) Provide the Coast Guard access necessary to audit the
authorized classification society to ensure that it continues to comply
with the minimum standards for a recognized classification society.
(25) Use only exclusive surveyors of that classification society to
accomplish all work done on behalf of, or under any delegation from,
the Coast Guard. For tonnage-related measurement service only, however,
classification societies
[[Page 67534]]
may use part-time employees or independent contractors in place of
exclusive surveyors.
(26) Allow its surveyors to participate in training with the Coast
Guard regarding delegated functions.
(b) Amendments to an agreement between the Coast Guard and an
authorized classification society will become effective only after
consultation and written agreement between parties.
(c) Agreements may be terminated by one party only upon written
notice to the other party. Termination will occur sixty days after
written notice is given.
Subpart B--Recognition of a Classification Society
Sec. 8.200 Purpose.
This subpart establishes criteria and procedures for vessel
classification societies to obtain recognition from the Coast Guard.
This recognition is necessary in order for a classification society to
become authorized to perform vessel inspection and certification
functions delegated by the Coast Guard as described in this part.
Sec. 8.210 Applicability.
This subpart applies to all vessel classification societies seeking
recognition by the Coast Guard.
Sec. 8.220 Recognition of a classification society.
(a) A classification society must be recognized by the Commandant
before it may receive statutory authority delegated by the Coast Guard.
(b) In order to become recognized, a classification society must
meet the requirements of Sec. 8.230.
(c) A classification society found to meet the criteria for
recognition will be notified in writing by the Commandant.
(d) If the Coast Guard determines that a classification society
does not meet the criteria for recognition, the Coast Guard will
provide the reason for this determination.
(e) A classification society may reapply for recognition upon
correction of the deficiencies identified by the Coast Guard.
Sec. 8.230 Minimum standards for a recognized classification society.
(a) In order to receive recognition by the Coast Guard a
classification society must:
(1) Establish that it has functioned as an international
classification society for at least 30 years with its own class rules;
(2) Establish that is has a history of appropriate corrective
actions in addressing vessel casualties and cases of nonconformity with
class rules;
(3) Establish that it has a history of appropriate changes to class
rules based on their application and the overall performance of its
classed fleet;
(4) Have a total classed tonnage of at least 10 million gross tons;
(5) Have a classed fleet of at least 1,500 ocean-going vessels over
100 gross tons;
(6) Have a total classed tonnage of ocean-going vessels over 100
gross tons totaling no less than 8 million gross tons;
(7) Publish and maintain class rules in the English language for
the design, construction and certification of ships and their
associated essential engineering systems;
(8) Maintain written survey procedures in the English language;
(9) Have adequate resources, including research, technical, and
managerial staff, to ensure appropriate updating and maintaining of
class rules and procedures;
(10) Have adequate resources and geographical coverage to carry out
all plan review and vessel survey activities associated with delegated
functions as well as classification society requirements;
(11) Employ a minimum of 150 exclusive surveyors;
(12) Have adequate criteria for hiring and qualifying surveyors and
technical staff;
(13) Have an adequate program for continued training of surveyors
and technical staff;
(14) Have a corporate office in the United States that provides a
continuous management and administrative presence;
(15) Maintain an internal quality system based on ANSI/ASQC Q9001
or an equivalent quality standard;
(16) Determine classed vessels comply with class rules, during
appropriate surveys and inspection;
(17) Determine that attended vessels comply with all statutory
requirements related to delegated functions, during appropriate surveys
and inspection;
(18) Monitor all activities related to delegated functions for
consistency and required end-results;
(19) Maintain and ensure compliance with a Code of Ethics that
recognizes the inherent responsibility associated with delegation of
authority;
(20) Not be under the financial control of shipowners or
shipbuilders, or of others engaged commercially in the manufacture,
equipping, repair or operation of ships;
(21) Not be financially dependent on a single commercial enterprise
for its revenue;
(22) Not have any business interest in, or share of ownership of,
any vessel in its classed fleet; and
(23) Not be involved in any activities which could result in a
conflict of interest.
(b) Recognition may be granted after it is established that the
classification society has an acceptable record of vessel detentions
attributed to classification society performance under the Coast Guard
Port State Control Program.
Sec. 8.240 Application for recognition.
(a) A classification society must apply for recognition in writing
to the Commandant (G-MSE).
(b) An application must indicate which specific authority the
classification society seeks to have delegated.
(c) Upon verification from the Coast Guard that the conditions of
reciprocity have been met in accordance with Sec. 8.120, the requesting
classification society must submit documentation to establish that it
meets the requirements of Sec. 8.230.
Sec. 8.250 Acceptance of standards and functions delegated under
existing regulations.
(a) Classification society class rules will only be accepted as
equivalent to Coast Guard regulatory standards when that classification
society has received authorization to conduct a related delegated
function.
(b) A recognized classification society may not conduct any
delegated function under this title until it receives a separate
written authorization from the Commandant to conduct that specific
function.
Sec. 8.260 Revocation of classification society recognition.
A recognized classification society which fails to maintain the
minimum standards established in this part will be reevaluated and its
recognized status revoked if warranted.
Subpart C--International Convention Certificate Issuance
Sec. 8.300 Purpose.
This subpart establishes options for vessel owners and operators to
obtain required international convention certification through means
other than those prescribed elsewhere in this chapter.
Sec. 8.310 Applicability.
This subpart applies to:
(a) Recognized classification societies; and
(b) All U.S. flag vessels that are certificated for international
voyages
[[Page 67535]]
and are classed by a recognized classification society that is
authorized by the Coast Guard to issue the applicable international
certificate as specified in this subpart.
Sec. 8.320 Classification society authorization to issue international
certificates.
(a) The Commandant may authorize a recognized classification
society to issue certain international convention certificates.
Authorization will be based on review of:
(1) Applicable class rules; and
(2) Applicable classification society procedures.
(b) The Coast Guard may delegate issuance of the following
international convention certificates to a recognized classification
society:
(1) International Load Line Certificate;
(2) International Tonnage Certificate (1969);
(3) SOLAS Cargo Ship Safety Construction Certificate;
(4) SOLAS Cargo Ship Safety Equipment Certificate;
(5) International Certificate of Fitness for the Carriage of
Dangerous Chemicals in Bulk;
(6) International Certificate of Fitness for the Carriage of
Liquefied Gases in Bulk;
(7) International Maritime Organization (IMO) Mobile Offshore
Drilling Unit Safety Certificate;
(8) MARPOL 73/78 International Oil Pollution Prevention
Certificate; and
(9) MARPOL 73/78 International Oil Pollution Prevention Certificate
for the Carriage of Noxious Liquid Substances in Bulk.
(c) The Coast Guard will enter into a written agreement with a
recognized classification society authorized to issue international
convention certificates. This agreement will define the scope, terms,
conditions and requirements of that delegation. Conditions of these
agreements are presented in Sec. 8.130.
Sec. 8.330 Termination of classification society authority.
(a) The Coast Guard may terminate an authorization agreement with a
classification society if:
(1) The Commandant revokes the classification society's
recognition, as specified in Sec. 8.260; or
(2) The classification society fails to comply with the conditions
of the authorization agreement as specified in Sec. 8.130.
(b) In the event that a flag administration of a country changes
conditions related to the authority that is delegated to ABS, the
Commandant may modify or revoke the Coast Guard's authorization of that
classification society that has its headquarters in that country.
(c) Certificates issued by a classification society which has had
its authorization terminated will remain valid until the next
classification society survey associated with that certificate is
required or until the certificate expires, whichever occurs first.
Subpart D--Alternate Compliance Program
Sec. 8.400 Purpose.
This subpart establishes an alternative to subpart 2.01 of this
chapter for certification of United States vessels.
Sec. 8.410 Applicability.
This subpart applies to:
(a) Recognized classification societies; and
(b) U.S. flag vessels that are certificated for international
voyages and are classed by a recognized classification society that is
authorized by the Coast Guard to participate in the Alternate
Compliance Program (ACP) as specified in this subpart and whose vessel
type is authorized to participate in the ACP per the applicable
subchapter of 46 CFR chapter I.
Sec. 8.420 Classification society authorization to participate in the
Alternate Compliance Program.
(a) The Commandant may authorize a recognized classification
society to participate in the ACP. Authorization will be based on a
satisfactory review of:
(1) Applicable class rules; and
(2) Applicable classification society procedures.
(b) Authorization for a recognized classification society to
participate in the ACP will require development of a U.S. Supplement to
the society's class rules that meets the requirements of Sec. 8.430 of
this part, which must be accepted by the Coast Guard.
(c) A recognized classification society will be eligible to receive
authorization to participate in the ACP only after it has performed a
delegated function related to general vessel safety assessment, as
defined in Sec. 8.100, for a two-year period.
(d) If, after this two-year period, the Coast Guard finds that the
recognized classification society has not demonstrated the necessary
satisfactory performance or lacks adequate experience, the recognized
classification society will not be eligible to participate in the ACP.
The Coast Guard will provide the reason for this determination to the
recognized classification society. A classification society may appeal
the decision of the Coast Guard concerning recognition to the
Commandant in writing in accordance with 46 CFR 1.03-15(h)(4).
(e) The Coast Guard will enter into a written agreement with a
recognized classification society authorized to participate in the ACP.
This agreement will define the scope, terms, conditions and
requirements of the necessary delegation. Conditions of this agreement
are presented in Sec. 8.130.
Sec. 8.430 U.S. Supplement to class rules.
Prior to receiving authorization to participate in the ACP, a
recognized classification society must prepare, and receive Commandant
(G-MSE) approval of, a U.S. Supplement to the recognized classification
society's class rules. This supplement must include all regulations
applicable for issuance of a Certificate of Inspection (COI) which are
not, in the opinion of the Commandant, adequately established by either
the class rules of that classification society or applicable
international regulations.
Sec. 8.440 Vessel enrollment in the Alternate Compliance Program.
(a) In place of compliance with other applicable provisions of this
title, the owner or operator of a vessel subject to plan review and
inspection under this subchapter for initial issuance or renewal of a
COI may submit the vessel for classification, plan review and
inspection by a recognized classification society authorized by the
Coast Guard to determine compliance with applicable international
treaties and agreements, the classification society's class rules, and
the U.S. Supplement prepared by the classification society and accepted
by the Coast Guard.
(b) A vessel owner or operator wishing to have a vessel inspected
under paragraph (a) of this section shall submit an Application for
Inspection of U.S. Vessel (CG-3752) to the cognizant OCMI, and indicate
on the form that the inspection will be conducted by an authorized
classification society under the ACP.
(c) Based on reports from an authorized classification society that
a vessel complies with applicable international treaties and
agreements, the classification society's class rules, and the U.S.
Supplement prepared by the classification society and accepted by the
Coast Guard, the cognizant OCMI may issue a certificate of inspection
to the vessel. If the OCMI declines to issue a certificate of
inspection even though the reports made by the authorized
classification society indicate that the vessel meets applicable
standards, the vessel owner or operator may appeal the OCMI decision as
provided in subpart 1.03 of this chapter.
[[Page 67536]]
(d) If reports from an authorized classification society indicate
that a vessel does not comply with applicable international treaties
and agreements, the classification society's class rules, and the U.S.
Supplement prepared by the classification society and accepted by the
Coast Guard, the cognizant OCMI may decline to issue a certificate of
inspection. If the OCMI declines to issue a certificate of inspection,
the vessel owner or operator may:
(1) Correct the reported deficiencies and make arrangements with
the classification society for an additional inspection;
(2) Request inspection by the Coast Guard under other provisions of
this subchapter; or
(3) Appeal via the authorized classification society to the Chief,
Office of Compliance, Commandant (G-MOC), U.S. Coast Guard, 2100 Second
St. SW., Washington, DC 20593-0001.
Sec. 8.450 Termination of classification society authority.
(a) The Coast Guard may terminate an authorization agreement with a
classification society to participate in the Alternate Compliance
Program if:
(1) The Commandant revokes the classification society's
recognition, as specified in Sec. 8.260; or
(2) The classification society fails to comply with the conditions
of the authorization agreement as specified in Sec. 8.130.
(b) In the event that a flag administration of a country changes
conditions related to the authority that is delegated to ABS, the
Commandant may modify or revoke the Coast Guard's authorization of that
classification society that has its headquarters in that country.
(c) Certificates issued by a classification society which has had
its authorization to participate in the Alternate Compliance Program
terminated will be subject to the provisions of Sec. 8.330.
(d) Owners or operators of vessels enrolled in the ACP and classed
by a classification society that has its authority to participate in
the ACP terminated must:
(1) Change the classification society for the vessel to a
classification society that is authorized to participate in the ACP; or
(2) Disenroll the vessel from the ACP.
(e) The Coast Guard will provide guidance to a vessel owner
affected by the revocation of a classification society's authority to
participate in the ACP. This will include notification of when the
action required under paragraph (d) of this section must be completed.
PART 31--INSPECTION AND CERTIFICATION
7. The authority citation for part 31 continues to read as follows:
Authority: 33 U.S.C. 1321(j); 46 U.S.C. 3306; 46 U.S.C. 3316, as
amended by Sec. 607, Pub. L. 104-324, 110 Stat. 3901; 46 U.S.C.
3703, 5115, 8105; 49 U.S.C. App. 1804; E.O. 12234, 45 FR 58801, 3
CFR, 1980 Comp., p. 277; E.O. 11735, 38 FR 21243, 3 CFR, 1971-1975
Comp., p. 793; 49 CFR 1.46.
8. Revise Sec. 31.01-3 to read as follows:
Sec. 31.01-3 Alternate compliance.
(a) In place of compliance with other applicable provisions of this
subchapter, the owner or operator of a vessel subject to plan review
and inspection under this subchapter for initial issuance or renewal of
a Certificate of Inspection may comply with the Alternate Compliance
Program provisions of part 8 of this chapter.
(b) For the purposes of this section, a list of authorized
classification societies is available from Commandant (G-MSE). Approved
classification society rules and supplements are contained in 46 CFR
Sec. 8.110(b).
PART 69--MEASUREMENT OF VESSELS
9. The authority citation for part 69 continues to read as follows:
Authority: 46 U.S.C. 2301, 14103; 49 CFR 1.46.
10. Amend Sec. 69.27 by redesignating paragraphs (b)(3), (b)(4) and
(b)(5) as paragraphs (b)(4), (b)(5), and (b)(6), respectively and by
adding a new paragraph (b)(3) to read as follows:
Sec. 69.27 Delegation of authority to measure vessels.
* * * * *
(b) * * *
(3) In lieu of the requirements in paragraphs (b)(1) and (2) of
this section, is a recognized classification society under the
requirements of 46 CFR part 8.
* * * * *
PART 71--INSPECTION AND CERTIFICATION
11. The authority citation for part 71 continues to read as
follows:
Authority: 33 U.S.C. 1321(j); 46 U.S.C. 2113, 3306; 46 U.S.C.
3316, as amended by Sec. 607, Pub. L. 104-324, 110 Stat. 3901; E.O.
12234, 45 FR 58801, 3 CFR, 1980 Comp., p. 277; E.O. 12777, 56 FR
54757, 3 CFR 1991 Comp., p. 351; 49 CFR 1.46.
12. Revise Sec. 71.15-5 to read as follows:
Sec. 71.15-5 Alternate compliance.
(a) In place of compliance with other applicable provisions of this
subchapter, the owner or operator of a vessel subject to plan review
and inspection under this subchapter for initial issuance or renewal of
a Certificate of Inspection may comply with the Alternate Compliance
Program provisions of part 8 of this chapter.
(b) For the purposes of this section, a list of authorized
classification societies is available from Commandant (G-MSE). Approved
classification society rules and supplements are contained in 46 CFR
8.110(b).
PART 91--INSPECTION AND CERTIFICATION
13. The authority citation for part 91 continues to read as
follows:
Authority: 33 U.S.C. 1321(j); 46 U.S.C. 3306; 46 U.S.C. 3316, as
amended by Sec. 607, Pub. L. 104-324, 110 Stat. 3901; E.O. 12234, 45
FR 58801, 3 CFR, 1980 Comp., p. 277; E.O. 11735, 38 FR 21243, 3 CFR,
1971-1975 Comp., p. 793; 49 CFR 1.46.
14. Revise Sec. 91.15-5 to read as follows:
Sec. 91.15-5 Alternate compliance.
(a) In place of compliance with other applicable provisions of this
subchapter, the owner or operator of a vessel subject to plan review
and inspection under this subchapter for initial issuance or renewal of
a Certificate of Inspection may comply with the Alternate Compliance
Program provisions of part 8 of this chapter.
(b) For the purposes of this section, a list of authorized
classification societies is available from Commandant (G-MSE). Approved
classification society rules and supplements are contained in 46 CFR
8.110(b).
PART 107--INSPECTION AND CERTIFICATION
15. The authority citation for part 107 continues to read as
follows:
Authority: 43 U.S.C. 1333; 46 U.S.C. 3306; 46 U.S.C. 3316, as
amended by Sec. 607, Pub. L. 104-324, 110 Stat. 3901; 46 U.S.C 5115;
49 CFR 1.45, 1.46; Sec. 107.05 also issued under authority of 44
U.S.C. 3507.
16. Revise Sec. 107.205 to read as follows:
Sec. 107.205 Alternate compliance.
(a) In place of compliance with other applicable provisions of this
subchapter, the owner or operator of a vessel subject to plan review
and inspection under this subchapter for initial issuance or renewal of
a Certificate of Inspection may comply with the Alternate
[[Page 67537]]
Compliance Program provisions of part 8 of this chapter.
(b) For the purposes of this section, a list of authorized
classification societies is available from Commandant (G-MSE). Approved
classification society rules and supplements are contained in 46 CFR
8.110(b).
PART 153--SHIPS CARRYING BULK LIQUID, LIQUEFIED GAS, OR COMPRESSED
GAS HAZARDOUS MATERIALS
17. The authority citation for part 153 continues to read as
follows:
Authority: 46 U.S.C. 3703; 49 CFR 1.46. Section 153.40 issued
under 49 U.S.C. 5103. Sections 153.470 through 153.491, 153.110
through 153.1132, and 153.1600 through 153.1608 also issued under 33
U.S.C. 1903(b).
18. In Sec. 153.12, revise the introductory paragraph to read as
follows:
Sec. 153.12 IMO certificates for United States ships.
Either a classification society authorized under 46 CFR part 8, or
the Officer in Charge, Marine Inspection, issues a United States ship
an IMO Certificate endorsed to allow the carriage of a hazardous
material or NLS cargo in Table 1 of this part if the following
requirements are met:
* * * * *
PART 154--SAFTEY STANDARDS FOR SELF-PROPELLED VESSELS CARRYING BULK
LIQUEFIED GASES
19. The authority citation for part 154 continues to read as
follows:
Authority: 46 U.S.C. 3703, 9101; 49 CFR 1.46.
20. Revise Sec. 154.19(a) introductory text to read as follows:
Sec. 154.19 U.S. flag vessel: IMO certificate issuance.
(a) Either a classification society authorized under 46 CFR part 8,
or the Coast Guard Officer in Charge, Marine Inspection, issues an IMO
Certificate to a U.S. flag vessel when requested by the owner or
representative, if--
* * * * *
Dated: December 17, 1997.
R. C. North,
Rear Admiral, U.S. Coast Guard, Assistant Commandant for Marine Safety
and Environmental Protection.
[FR Doc. 97-33477 Filed 12-23-97; 8:45 am]
BILLING CODE 4910-14-U
