Adding the Polar Ship Certificate to the List of SOLAS Certificates and Certificates Issued by Recognized Classification Societies, 83786-83795 [2016-27989]

Download as PDF 83786 Federal Register / Vol. 81, No. 225 / Tuesday, November 22, 2016 / Proposed Rules Dated: November 10, 2016. Andrew M. Slavitt, Acting Administrator, Centers for Medicare & Medicaid Services. Dated: November 10, 2016. Sylvia M. Burwell, Secretary, Department of Health and Human Services. [FR Doc. 2016–28024 Filed 11–18–16; 11:15 am] BILLING CODE 4120–01–P DEPARTMENT OF HOMELAND SECURITY Coast Guard 46 CFR Parts 2 and 8 [Docket No. USCG–2016–0880] RIN 1625–AC35 Adding the Polar Ship Certificate to the List of SOLAS Certificates and Certificates Issued by Recognized Classification Societies Coast Guard, DHS. ACTION: Notice of proposed rulemaking. AGENCY: This proposed rule would add a new Polar Ship Certificate to the list of existing certificates required to be carried on board all U.S. and foreignflagged vessels subject to the International Convention for Safety of Life at Sea (SOLAS) and operating in Arctic and Antarctic waters, generally above 60 degrees north latitude and below 60 degrees south latitude lines. Additionally, the Coast Guard proposes to add this certificate to the list of SOLAS certificates that recognized classification societies are authorized to issue on behalf of the Coast Guard. The proposed rule would apply to commercial cargo ships greater than 500 gross tons engaging in international voyages, and passenger ships carrying more than 12 passengers engaging in international voyages, when these ships operate within polar waters as defined by the Polar Code. DATES: Comments and related material must be submitted to the online docket via http://www.regulations.gov by December 22, 2016. ADDRESSES: You may submit comments identified by docket number USCG– 2016–0880 using the Federal eRulemaking Portal at http:// www.regulations.gov. See the ‘‘Public Participation and Request for Comments’’ portion of the SUPPLEMENTARY INFORMATION section for further instructions on submitting comments. Collection of Information: You must submit comments on the collection of sradovich on DSK3GMQ082PROD with PROPOSALS SUMMARY: VerDate Sep<11>2014 16:39 Nov 21, 2016 Jkt 241001 information discussed in section V.D. of this preamble both to the Coast Guard’s docket and to the Office of Information and Regulatory Affairs (OIRA) in the White House Office of Management and Budget. OIRA submissions can use one of the listed methods: • Email (preferred)—oira_ submission@omb.eop.gov (include the docket number and ‘‘Attention: Desk Officer for Coast Guard, DHS’’ in the subject line of the email); • Fax—202–395–6566; or • Mail—Office of Information and Regulatory Affairs, Office of Management and Budget, 725 17th Street NW., Washington, DC 20503, ATTN: Desk Officer, U.S. Coast Guard. FOR FURTHER INFORMATION CONTACT: For information about this document call or email CDR Todd Howard, Systems Engineering Division (CG–ENG–3), Coast Guard; telephone 202–372–1375, email Todd.M.Howard@uscg.mil. SUPPLEMENTARY INFORMATION: Table of Contents for Preamble I. Public Participation and Request for Comments A. Submitting Comments B. Viewing Comments and Documents C. Privacy Act D. Public Meeting II. Abbreviations III. Basis, Purpose, and Background IV. Discussion of Proposed Rule V. Regulatory Analyses A. Regulatory Planning and Review B. Small Entities C. Assistance for Small Entities D. Collection of Information E. Federalism F. Unfunded Mandates Reform Act G. Taking of Private Property H. Civil Justice Reform I. Protection of Children J. Indian Tribal Governments K. Energy Effects L. Technical Standards M. Environment I. Public Participation and Request for Comments We view public participation as essential to effective rulemaking, and will consider all comments and material received during the comment period. Your comment can help shape the outcome of this rulemaking. If you submit a comment, please include the docket number for this rulemaking, indicate the specific section of this document to which each comment applies, and provide a reason for each suggestion or recommendation. We encourage you to submit comments through the Federal eRulemaking Portal at http:// www.regulations.gov. If your material cannot be submitted using http:// www.regulations.gov, contact the person PO 00000 Frm 00069 Fmt 4702 Sfmt 4702 in the FOR FURTHER INFORMATION CONTACT section of this document for alternate instructions. Documents mentioned in this notice and all public comments, are in our online docket at http://www.regulations.gov and can be viewed by following that Web site’s instructions. Additionally, if you go to the online docket and sign up for email alerts, you will be notified when comments are posted or a final rule is published. We accept anonymous comments. All comments received will be posted without change to http:// www.regulations.gov and will include any personal information you have provided. For more about privacy and the docket, you may review a Privacy Act notice regarding the Federal Docket Management System in the March 24, 2005, issue of the Federal Register (70 FR 15086). We are not planning to hold a public meeting but may do so if public comments indicate a meeting would be helpful. We would issue a separate Federal Register notice to announce the date, time, and location of that meeting. II. Abbreviations BLS Bureau of Labor Statistics COI Collection of Information DHS Department of Homeland Security FR Federal Register IMO International Maritime Organization MARPOL International Convention for the Prevention of Pollution from Ships, 1974 MEPC Marine Environment Protection Committee MOA Memorandum of Agreement MSC Maritime Safety Committee NAICS North American Industry Classification System OMB Office of Management and Budget Polar Code International Code for Ships Operating in Polar Waters RA Regulatory Assessment SBA Small Business Administration SOLAS International Convention for the Safety of Life at Sea STCW International Convention on Standards of Training, Certification, and Watchkeeping for Seafarers § Section Symbol U.S.C. United States Code III. Basis, Purpose, and Background In 2014 and 2015, in resolutions MSC.384(94) and MEPC.264(68), respectively, the International Maritime Organization (IMO) adopted the safety and environmental provisions of the International Code for Ships Operating in Polar Waters (Polar Code). The Polar Code adds requirements to existing IMO Conventions—the International Convention for the Safety of Life at Sea (SOLAS), the International Convention for the Prevention of Pollution from Ships (MARPOL), and the International E:\FR\FM\22NOP1.SGM 22NOP1 sradovich on DSK3GMQ082PROD with PROPOSALS Federal Register / Vol. 81, No. 225 / Tuesday, November 22, 2016 / Proposed Rules Convention on Standards of Training, Certification, and Watchkeeping for Seafarers (STCW)—in consideration of hazards and conditions unique to the polar waters, and an expected increase in traffic in Arctic and Antarctic waters. These additional hazards include navigation in ice and low temperatures, high latitude communications and navigation, remoteness from response resources, and limited hydrographic charting. The Polar Code enters into force on January 1, 2017. One of the requirements for ships subject to the Polar Code is to carry a Polar Ship Certificate pursuant to SOLAS. The Polar Ship Certificate attests that the vessel has met applicable requirements of SOLAS to the satisfaction of the U.S. Government. As a signatory to SOLAS, the United States has a treaty obligation to ensure compliance with SOLAS requirements. This rulemaking creates a certificate that U.S. vessels subject to SOLAS will need in order to travel internationally within polar waters as defined by the Polar Code beginning January 1, 2017. Beginning on that date, U.S. vessels that are subject to the SOLAS Convention and elect to travel through the polar waters of States other than the United States will have to carry a Polar Ship Certificate or risk detention, denial of entry, or expulsion from the polar waters of other States. This rulemaking is necessary to allow the Coast Guard to create the new Polar Ship Certificate and add it to the list of certificates in 46 CFR part 2, and to allow third-party organizations to issue it on the Coast Guard’s behalf by adding the new Polar Ship Certificate to the list of certificates in 46 CFR part 8. Foreign flagged vessels, subject to SOLAS and operating in polar waters, must also carry the Polar Ship Certificate but the certificate will be issued by the vessel’s class society or flag state. However, the Coast Guard will examine foreign flagged vessels during Port State Control boardings to ensure that they are properly certificated. The SOLAS requirement applies to commercial cargo ships greater than 500 gross tons engaging in international voyages, and passenger ships carrying more than 12 passengers engaging in international voyages, when these ships operate within polar waters as defined by the Polar Code. The Coast Guard is authorized to regulate this subject matter under, among other authorities, Executive Order 12234, ‘‘Enforcement of the Convention for the Safety of Life at Sea,’’ 45 FR 58801; 33 U.S.C. 1231; 46 U.S.C. 2103, 3306, 3316, and 3703; and VerDate Sep<11>2014 16:39 Nov 21, 2016 Jkt 241001 Department of Homeland Security Delegation No. 0170.1. This rulemaking does not address the Polar Code requirements added to SOLAS other than the Polar Code Certificate. Furthermore, this rulemaking does not address the Polar Code requirements added to MARPOL or STCW. In order to begin issuing Polar Code certificates as soon as possible after January 1, 2017, the Coast Guard is implementing the Polar Code through several rulemakings. The first project, which is this rulemaking, only requires SOLAS vessels operating in polar waters to carry a Polar Ship Certificate. It contains the regulatory changes required for the issuance of the certificates and reflects only the documentation costs for the certificates. Subsequent rulemakings will implement the design, engineering, and personnel standards found in the Polar Code. The incremental costs for industry to comply with these standards will be accounted for in the regulatory analyses for those rulemakings. IV. Discussion of Proposed Rule This proposed rule would amend 46 CFR 2.01–6(a)(1), and 2.01–25 (a)(1) and (a)(2), to include the Polar Ship Certificate in the list of International Convention Certificates to be issued by the Officer in Charge of Marine Inspection and carried on certain passenger, cargo, and tankships engaged in international voyages. This proposed requirement would apply to commercial cargo ships greater than 500 gross tons and passenger ships carrying more than 12 passengers that engage in international voyages within polar waters as defined by the Polar Code. This proposed rule would also amend 46 CFR 8.320(b) to include the Polar Ship Certificate in the list of International Convention Certificates that could be issued by recognized classification societies. Both the Coast Guard and classification societies would have the ability to issue these certificates. By adding this certificate to the Code of Federal Regulations, we enable marine inspectors to ensure compliance with the SOLAS requirement to carry a Polar Ship Certificate, which fulfills the United States’ treaty obligations with regard to the certification. Additionally, without this certificate, the U.S.-flagged vessels sailing on international routes would be subject to deficiencies, detentions, denial of entry or expulsion from the polar waters of other port States due to lack of proper certificates. PO 00000 Frm 00070 Fmt 4702 Sfmt 4702 83787 V. Regulatory Analyses We developed this proposed rule after considering numerous statutes and Executive orders related to rulemaking. Below we summarize our analyses based on these statutes or Executive orders. A. Regulatory Planning and Review Executive Orders 12866 (Regulatory Planning and Review) and 13563 (Improving Regulation and Regulatory Review) direct agencies to assess the costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, distributive impacts, and equity). Executive Order 13563 emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. This 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. This proposed rule would add a new Polar Ship Certificate to the list of existing SOLAS certificates required to be carried onboard all U.S. and foreignflagged vessels above 500 GT ITC, (the International Convention on Tonnage Measurement of Ships 1969 or gross tonnage assigned under this system) or passenger ships carrying more than 12 passengers on international routes operating in polar waters, generally above 60 degrees north latitude and below 60 degrees south latitude lines. The IMO adopted the Polar Code in 2014 and 2015 to acknowledge that polar waters impose additional operating demands and risks.1 Since the United States is signatory to the SOLAS convention, the United States has an obligation to ensure that all U.S.-flagged vessels subject to SOLAS that transit in polar waters carry a Polar Ship Certificate. Owners and operators of all foreign-flagged vessels subject to SOLAS would have their Polar Ship Certificates issued by the appropriate flag state. This proposed rule would amend 46 CFR part 2, ‘‘Vessel Inspections’’, Subpart 2.01, ‘‘Inspecting and Certificating of Vessels’’ including Section 2.01–25, ‘‘International Convention for Safety of Life at Sea’’ to include the new Polar Ship Certificate. The proposed rule would also amend 46 CFR part 8, ‘‘Vessel Inspection 1 http://www.imo.org/en/MediaCentre/HotTopics/ polar/Documents/POLAR%20CODE%20TEXT%20 AS%20ADOPTED.pdf. E:\FR\FM\22NOP1.SGM 22NOP1 83788 Federal Register / Vol. 81, No. 225 / Tuesday, November 22, 2016 / Proposed Rules Alternatives’’, Subpart C, ‘‘International Convention Certificate Issuance’’, Section 8.320, ‘‘Classification Society Authorization to Issue International Certificates’’, at paragraph (b) to include the Polar Ship Certificate as one of the certificates that can be issued by a recognized classification society on behalf of the Coast Guard. Affected Population Based on Coast Guard field data and Coast Guard databases such as the Marine Information for Safety and Law Enforcement (MISLE) database, the Coast Guard’s Ship Arrival Notification System (SANS), and data from the Coast Guard’s Navigation Data Center (NDC), we estimate the total number of U.S. vessels this proposed rule would affect to be about 41 total vessels. This is the number of U.S. vessels that have transited internationally in polar waters, which are generally above and below the 60 degree north and 60 degree south latitudes lines, respectively, over the past 5 years and have made port calls in Alaskan ports over this time period. Of the 41 U.S. vessels that have transited polar waters during the 5-year period, some entered polar waters in the first year and not the following year, but returned in subsequent years. The opposite is also true; some vessels that did not transit polar waters in the first year of the data period did so in the following years of the data period. Recognized classification societies that have been granted delegated authority from the Coast Guard would issue the Polar Ship Certificate, an international convention certificate, on behalf of the Coast Guard for U.S.flagged vessels that are classed under the authority in 46 CFR 8.320(a). Although multiple classification societies could request authorization to issue the Polar Ship Certificate on behalf of the Coast Guard, for the purpose of this analysis, the Coast Guard assumes one classification society would issue the Polar Ship Certificate to vessel owners and operators on behalf of the Coast Guard for vessels that are classed. Cost Analysis sradovich on DSK3GMQ082PROD with PROPOSALS Classification Societies Cost This proposed rule would amend 46 CFR 8.320(b) to enable recognized class societies to request authorization to issue the Polar Ship Certificate on behalf of the Coast Guard. For vessels that are not classed, the Coast Guard would issue the Polar Ship Certificate. There are two cost elements associated with a classification society issuing a Polar Ship Certificate: The cost VerDate Sep<11>2014 16:39 Nov 21, 2016 Jkt 241001 to review and return a signed copy of the Memorandum of Agreement (MOA) between the recognized classification society and the Coast Guard, and the cost to create the certificate once the MOA is approved by each party. As stated in 46 CFR 8.320(c), the Coast Guard will enter into an agreement with the classification society to issue international convention certificates such as the Polar Ship Certificate. The MOA essentially represents a delegation letter and is a standard document that allows a recognized classification society to issue the Polar Ship Certificate on behalf of the Coast Guard. Based on Coast Guard data from the Office of Design and Engineering Standards, we estimate it would take a recognized classification society 1 hour to review the MOA. A classification and documentation specialist would review the MOA and because there is no equivalent labor category in the Bureau of Labor Statistics’ (BLS) Occupational Employment Statistics National Industry-Specific Occupational Employment and Wage Estimates for May 2015, we used the ‘‘Business Operations Specialist, All Other’’ (Occupation Code 13–1199) category for Deep Sea, Coastal, and Great Lakes Water Transportation with a North American Industry Classification Code of 483100 as a representative occupation. The mean hourly wage rate for this occupation is $38.63. Since this is an unloaded hourly wage rate, we added a load factor to obtain a loaded hourly wage rate. We used BLS’ 2015 Employer Cost for Employee Compensation databases to calculate and apply a load factor of 1.53 to obtain a loaded hourly labor rate of about $59.10 for this occupation.2 We also estimate it would take a recognized classification society attorney 1 hour to review the MOA for legal sufficiency. Using the Bureau of Labor Statistics’ (BLS) Occupational Employment Statistics National Industry-Specific 2 Information can be viewed at, http:// www.bls.gov/oes/current/naics4_483100.htm. A loaded labor rate is what a company pays per hour to employ a person, not the hourly wage. The loaded labor rate includes the cost of benefits (health insurance, vacation, etc.). The load factor for wages is calculated by dividing total compensation by wages and salaries. For this analysis, we used BLS’ Employer Cost for Employee Compensation/ Transportation and Materials Moving Occupations, Private Industry Report (Series IDs, CMU2010000520000D and CMU2020000520000D for all workers using the multi-screen data search). Using 2015 Q4 data for the cost of compensation and cost per hour worked, we divide the total compensation amount of $27.46 by the wage and salary amount of $17.91 to obtain the load factor of about 1.53, rounded. See the following Web site, http://data.bls.gov/cgi-bin/dsrv. Multiplying 1.53 by $38.63, we obtain a loaded hourly wage rate of about $59.10. PO 00000 Frm 00071 Fmt 4702 Sfmt 4702 Occupational Employment and Wage Estimates for May 2015, we used the category ‘‘Lawyers’’ (Occupation Code 23–1011) for Deep Sea, Coastal, and Great Lakes Water Transportation with a North American Industry Classification Code of 483100. The mean hourly wage for this occupation is $65.51. Since this is an unloaded hourly wage rate, we apply the same load factor of 1.53 as derived above to obtain a loaded hourly wage rate of about $100.23. We estimate the one-time cost of the proposed rule to the classification society to review the MOA to be about $162.33, undiscounted, which includes a $3 postage cost to mail the signed MOA to the Coast Guard for approval and signature [($59.10 × 1 hour) + ($100.23 × 1 hour) + $3 for postage]. Based on a recognized classification society estimate, it would take approximately 40 hours to create the Polar Ship Certificate once the MOA is approved. As with the MOA, a classification and documentation specialist would create the certificate. We again used the ‘‘Business Operations Specialist, All Other’’ as a representative occupation. We estimate the one-time labor cost for a documentation specialist to create the certificate to be about $2,364.00 (40 hours 3 × $59.10/hour), undiscounted. Since the certificate is presented to a vessel owner or operator during the normal course of a vessel survey, we did not estimate a cost for this action. We estimate the total undiscounted cost of the proposed rule to a recognized classification society to be about $2,526.33 ($2,364 document development cost + $162.33 MOA review cost). Vessel Cost There are two cost elements associated with vessel owners and operators: The fee a recognized classification society would charge a vessel owner or operator for issuing the certificate for U.S. classed vessels only, and the cost associated with a crewmember posting the certificate onboard a vessel. Based on Coast Guard vessel data, approximately 20 percent, or 8 out of the 41 U.S.-flagged vessels, are not classed by a recognized classification society. The entry into force date for the Polar Code is Jan 1, 2017 but the requirement for ships is to have the certificate by their first renewal or intermediate exam after the entry into force date. This is a phased in approach that will likely 3 Based on estimate provided by a recognized class society to USCG. E:\FR\FM\22NOP1.SGM 22NOP1 Federal Register / Vol. 81, No. 225 / Tuesday, November 22, 2016 / Proposed Rules spread out the issuing of the certificates over a period of about 3 years. Therefore, the Coast Guard would issue the Polar Ship Certificate to those vessel owners and operators as part of its routine inspection regime. A recognized classification society would issue the Polar Ship Certificate to the remaining 33 vessel owners and operators in the first, second, third, sixth, seventh, and eighth year of the analysis period. The Polar Ship Certificate is valid for a 5-year period and, after this time, the recognized classification society and the Coast Guard would issue a new Polar Ship Certificate to vessel owners and operators, depending upon whether a vessel is classed or not classed. The cost of the reissued Polar Ship Certificate is $100 if a recognized classification society issues the certificate (for 33 classed U.S. vessels); therefore, it would cost each U.S. classed vessel owner and operator $100 after 5 years to renew the certificate, or in the sixth, seventh, and eighth year of the analysis period. We assume a 3-year phase-in period for owners and operators to obtain the certificates. For the purpose of this analysis, we assume 13 U.S. vessels owners and operators (11 classed and 2 unclassed) would obtain a certificate in the first year and 14 (11 classed and 3 unclassed) U.S. vessel owners and operators would obtain one in the second year and third year. For reissuance, we again assume the same 13 vessel owners and operators would obtain a certificate in the sixth year and the same 14 vessel owners and operators would obtain one in the seventh and eighth year each; we divided the population accordingly to obtain even values. Vessel owners and operators would be required to post the certificate in a conspicuous area onboard the vessel with other applicable operating certificates. Based on the Office of Management and Budget’s (OMB) approved collection of information (COI) entitled ‘‘Various International Agreement Safety Certificates,’’ OMB control number 1625–0017, a crewmember onboard a vessel equivalent to a U.S. Coast Guard cadet would post the Polar Ship Certificate. Using the Coast Guard’s Commandant Instruction 7310.1P for loaded hourly wages outside of the Government, the hourly wage rate of a person outside of the Government equivalent to a cadet is $26.00. We estimate it takes a crewmember about 6 minutes, or 0.1 hours, to post the Polar Ship Certificate at a labor cost of about $2.60 per vessel ($26.00 × 0.1 hours). To post the Polar Ship Certificate, we estimate the total initial cost of the proposed rule to 13 U.S. vessel owners and operators to be 83789 about $33.80 (13 U.S. classed and unclassed vessels × 0.1 hours × $26.00); regardless of whether the Polar Ship Certificate is issued by a recognized classification society, or by the Coast Guard. Owners and operators of U.S. vessels would incur this cost again in the sixth year because a crewmember would review and post the reissued certificate for the same 13 vessels. We estimate the initial cost of the proposed rule to vessel owners and operators to be about $1,133.80 in the first year (11 classed vessels × $100) + (11 classed vessels × $2.60 to post the certificate) + two unclassed vessels × $2.60 to post the certificate). Because vessel owners and operators would be required to carry the Polar Ship Certificate beginning January 2017, the cost for the renewed certificate in the sixth year (or 5 years after the initial year) would again be $1,133.80 for these 13 vessels. In the second and third and seventh and eighth year, we estimate the cost for 14 U.S. vessel owners and operators to obtain and post a Polar Ship Certificate to be about $1,136.40 [(11 classed vessels × $100) + (11 classed vessels × $2.60 to post the certificate) + three unclassed vessels in each of these years × $2.60 each year to post the certificate]. See Table 1 below. TABLE 1—SUMMARY OF CLASSIFICATION SOCIETY AND VESSEL OWNERS AND OPERATORS COSTS [Undiscounted] Cost item Unit cost Labor rate Classification Society Certificate Creation. Classification Society Review of MOA. ........................ $59.10 .............................. 40 ........................ $100.23 (Attorney) ........... 1 ........................ 1 $100 $59.10 (Business Operations Specialist). .......................................... ........................ ........................ $26 ................................... 0.1 ........................ .......................................... ........................ Certificate Fee Charged to Vessel Owners and Operators. Vessel Crewmember Reviews and Posts Certificate. sradovich on DSK3GMQ082PROD with PROPOSALS Total Undiscounted Cost (Initial year). We estimate the total 10-year undiscounted cost to be $6,813.20 for all 41 U.S. vessel owners and operators ($1,133.80 in the first and sixth year + $1,136.40 in the second, third, seventh and eighth years of the analysis period). See Table 2 below. We estimate the initial undiscounted cost of the proposed rule to a recognized classification society and to 13 (11 classed and 2 unclassed vessels) U.S. vessel owners and operators to be about VerDate Sep<11>2014 16:39 Nov 21, 2016 Jkt 241001 Hours Total cost $2,364 (incurred in year one). $162.33 (incurred in year one and includes $3 postage). $1,100 (incurred in years one to three and six to eight); $3,300 for 33 classed vessels in years one to three and six to eight. $2.60 (incurred in year one to three and six to eight); $33.80 in year one and six and $36.40 in years two and three; seven and eight. $3,660.13. $3,660.13 ($2,364 for the classification society to create the certificate + $162.33 for the classification society to review the MOA + $1,100 fee charged by a classification society to issue the certificate to the 11 classed vessel owners and operators + $33.80 for crewmembers of the 13 classed and unclassed vessels to post the certificate). We estimate the total 10-year undiscounted cost of the proposed rule to industry to be about $9,339.53 PO 00000 Frm 00072 Fmt 4702 Sfmt 4702 ($3,660.13 in the first year + $1,136.40 in the second, third, seventh, and eighth years + $1,133.80 in the sixth year). See Table 2 below. We estimate the 10-year present value, or discounted cost of the proposed rule to industry to be between $7,465.49 and $8,435.28 at 7 and 3 percent discount rates, respectively. We estimate the annualized cost to be between $1,062.92 and $988.87 at 7 and E:\FR\FM\22NOP1.SGM 22NOP1 83790 Federal Register / Vol. 81, No. 225 / Tuesday, November 22, 2016 / Proposed Rules 3 percent discount rates, respectively. See Table 2 below. TABLE 2—TOTAL COSTS OF THE PROPOSED RULE TO INDUSTRY [10-Year period of analysis, 7 and 3 percent discount rates, 2016 dollars] Period Cost (undiscounted) 7% 3% 1 ....................................................................................................................................... 2 ....................................................................................................................................... 3 ....................................................................................................................................... 4 ....................................................................................................................................... 5 ....................................................................................................................................... 6 ....................................................................................................................................... 7 ....................................................................................................................................... 8 ....................................................................................................................................... 9 ....................................................................................................................................... 10 ..................................................................................................................................... $3,660.13 1,136.40 1,136.40 ............................ ............................ 1,133.80 1,136.40 1,136.40 ............................ ............................ $3,420.68 992.58 927.64 ............................ ............................ 755.50 707.69 661.40 ............................ ............................ $3,553.52 1,071.17 1,039.97 ............................ ............................ 949.54 924.00 897.08 ............................ ............................ Total .......................................................................................................................... 9339.53 7,465.49 8,435.28 Annualized ....................................................................................................................... ............................ 1,062.92 988.87 sradovich on DSK3GMQ082PROD with PROPOSALS Note: Totals may not sum due to independent rounding. Government Costs There are 3 cost elements associated with this proposed rule for the Coast Guard: A one-time cost of creating the certificate and issuing (in the initial year, second, third, sixth, seventh, and eighth year) the Polar Ship Certificate to a vessel owner or operator if a vessel is not classed by a class society, reviewing the certificate onboard a vessel as part of the Coast Guard’s routine inspection regime, and a one-time cost of creating and sending the delegation letter or MOA to a classification society for signature. For the eight U.S. vessels that are not classed by a recognized classification society, the Coast Guard would issue the Polar Ship Certificate in the first through the third year and the sixth through the eighth year. Because of the phase-in period, we divided the eight vessels evenly over three years to arrive at two in the first and sixth year and three in the second, third, seventh, and eighth year, with the sixth, seventh, and eighth year being the years when the certificate is reissued. Based on information from personnel in the Coast Guard’s Office of Vessel Compliance, we estimate it takes Coast Guard personnel with the average equivalence of a GS–15 about 40 hours to create and review a Polar Ship Certificate at an average loaded hourly wage rate of $109 using the Coast Guard’s Commandant Instruction 7310.1P. We estimate the one-time cost for the Coast Guard to create the Polar Ship Certificate to be about $4,360 (40 hours × $109/hour), for the eight U.S. vessels without a classification. Based on an OMB-approved COI (Control Number 1625–0017), we VerDate Sep<11>2014 16:39 Nov 21, 2016 Jkt 241001 estimate it takes a Coast Guard Officer, the Officer in Charge Marine Inspection (OCMI), or more specifically, a Lieutenant with the rank of an O–3, about 30 minutes, or 0.5 hours per vessel, to review the Polar Ship Certificate for validity and correctness (the Coast Guard issues and reviews the certificate at the same time during its normal inspection regime). Using the Coast Guard’s Commandant Instruction 7310.1P for loaded hourly wages, an O– 3 has a loaded hourly wage rate of $78.00. Therefore, we estimate the total undiscounted cost to the Government to review the Polar Ship Certificate for all 41 affected vessels to be about $1,599.00 ($78.00 × 41 vessels × 0.5 hours), or about $39.00 per vessel. We use the same methodology as above with owners and operators obtaining certificates over a three-year period (13 in the first and sixth year and 14 in the second, third, seventh and eighth year), with the sixth, seventh and eighth year being the renewal years. Again, 13 inspections (11 classed and 2 unclassed) would take place in the first and sixth year, and 14 (11 classed and 3 unclassed) in second, third, seventh, and eighth year. Therefore, the first year cost to the Government to review the certificate would be about $507.00 (11 classed and 2 unclassed vessels × $39.00). The Government would incur this cost again in the sixth year when the certificate is reissued. In years two, three, seven, and eight, the Government would incur a certificate review cost of about $546.00 (11 classed and 3 unclassed vessels × $39.00) in each of these years. The Coast Guard would also examine the certificates of foreign-flagged vessels PO 00000 Frm 00073 Fmt 4702 Sfmt 4702 that enter U.S. ports in polar waters as part of its routine Port State Control vessel boardings. Because this will take place during routine Coast Guard examinations and for issuing certificates of compliance, the time it takes to perform this task is minimal and as such we do not estimate a cost to the Government. Because this proposed rule would also enable a recognized classification society to issue the Polar Ship Certificate on behalf of the Coast Guard, the Coast Guard and a recognized classification society would enter into an MOA which delegates authority to the classification society and sets forth guidelines for cooperation between the Coast Guard and a classification society with respect to initial and subsequent inspections for certifications and periodic re-inspections or examinations of vessels of the United States, as defined by 46 U.S.C. 2101 (46). Based on information from the Coast Guard’s Office of Design and Engineering Standards, Coast Guard personnel with the average equivalence of a GS–15 would prepare the MOA for delivery to a classification society. Again, we used an average loaded hourly labor rate of $109 for a GS–15. We estimate it would take Government personnel about 6.25 hours to prepare and review the MOA. We estimate it would cost about $3 in postage for the Government to send the MOA to the classification society. We estimate the total cost incurred by the Government for the MOA to be about $681.25 plus $3 for postage, or a total cost of $684.25, undiscounted (6.25 hours × $109). Other than the postage cost, other costs incurred are E:\FR\FM\22NOP1.SGM 22NOP1 Federal Register / Vol. 81, No. 225 / Tuesday, November 22, 2016 / Proposed Rules unclassed U.S. vessels, and $684.25 for the MOA). We estimate the total 10-year undiscounted cost to the Government to be about $8,242.25 ($5,551.25 in the initial year + $546.00 in the second, third, seventh and eighth years + $507.00 in the sixth year). We estimate the 10-year present value, or discounted opportunity costs, since personnel would perform this function in the normal course of his or her duties. We estimate the total initial cost to the Government to be about $5,551.25 ($4,360 to create and review the certificate, $507.00 to review the certificates for 11 classed and 2 83791 cost of the proposed rule to the Government, to be between $7,106.31 and $7,703.46, using 7 and 3 percent discount rates, respectively. We estimate the annualized cost to be between $1,011.78 and $903.08, using 7 and 3 percent discount rates, respectively. See Table 3 below. TABLE 3—TOTAL COSTS OF THE PROPOSED RULE TO THE GOVERNMENT [10-Year period of analysis, 7 and 3 percent discount rates, 2016 dollars] Period Cost (undiscounted) 7% 3% 1 ....................................................................................................................................... 2 ....................................................................................................................................... 3 ....................................................................................................................................... 4 ....................................................................................................................................... 5 ....................................................................................................................................... 6 ....................................................................................................................................... 7 ....................................................................................................................................... 8 ....................................................................................................................................... 9 ....................................................................................................................................... 10 ..................................................................................................................................... ............................ ............................ ............................ ............................ ............................ ............................ ............................ ............................ ............................ ............................ $5,188.08 476.90 445.70 ............................ ............................ 337.84 340.02 317.78 ............................ ............................ $5,389.56 514.66 499.67 ............................ ............................ 424.60 443.95 431.02 ............................ ............................ Total .......................................................................................................................... 8,242.25 7,106.31 7,703.46 Annualized ....................................................................................................................... ............................ 1,011.78 903.08 Note: Totals may not sum due to independent rounding. Total Cost of the Proposed Rule to Industry and Government proposed rule to industry and the Government to be about $17,582. We estimate the 10-year present value, or discounted cost of the proposed rule to industry and the Government, to be We estimate the total 10-year combined undiscounted cost of the between $14,572 and $16,139 at 7 and 3 percent discount rates, respectively. We estimate the annualized cost to be between $2,075 and $1,892 using the same discount rates. See Table 4 below. TABLE 4—SUMMARY OF COSTS OF THE PROPOSED RULE TO INDUSTRY AND GOVERNMENT [10-Year period of analysis, 2016 dollars] Type of cost Industry sradovich on DSK3GMQ082PROD with PROPOSALS Undiscounted ................................................................................... 7% .................................................................................................... 3% .................................................................................................... Benefits The primary benefit of this proposed rule is to ensure that vessel owners and operators have a valid Polar Ship Certificate onboard the vessel, which shows compliance with applicable SOLAS regulations and requirements. Without a Polar Ship Certificate, a vessel would be subject to deficiencies, detention, denial of entry, or expulsion from the polar waters of other port States. Adherence to SOLAS would ensure vessels are capable of operating in polar waters, and the hazards and adverse weather conditions unique to polar waters. Furthermore, since the United States is a signatory to SOLAS and has a treaty obligation to ensure compliance with SOLAS requirements, this rulemaking would ensure that the United States is compliant with this SOLAS requirement. VerDate Sep<11>2014 16:39 Nov 21, 2016 Jkt 241001 Government $9,339.53 7,465.49 8,435.28 Alternatives When creating this proposed rule, the Coast Guard considered several alternatives. The previous analysis represents the preferred alternative, which would ensure U.S. vessel owners and operators that operate vessels in polar waters would be compliant with the IMO Polar Code and SOLAS Convention. With the carriage of the Polar Ship Certificate onboard vessels, U.S. vessel owners and operators would be compliant with the SOLAS convention and applicable SOLAS operating requirements when transiting in polar waters. Alternative 1: Preferred Alternative The analysis for this alternative appears in the ‘‘Regulatory Analysis’’ section of the preamble of this proposed rule. PO 00000 Frm 00074 Fmt 4702 Sfmt 4702 Total cost $8,242.25 7,106.31 7,703.46 $17,581.78 14,571.80 16,138.74 Annualized ............................ 2,074.70 1,891.95 Alternative 2: No Action Alternative In this alternative, the United States would take no action regarding the issuance of a Polar Ship Certificate and none of the costs itemized in the preferred alternative would be incurred. However, with this alternative, the United States would not be compliant with its international legal obligations as a signatory Government to the SOLAS Convention. Additionally, the lack of appropriate certifications would likely negatively impact U.S.-flagged vessels on international voyages in polar waters of other port States. United States vessels would potentially be subject to deficiencies, detentions, denial of entry, or expulsion from the polar waters of other port states due to the lack of proper certificates. Because the United States would not meet its international treaty obligations in this E:\FR\FM\22NOP1.SGM 22NOP1 83792 Federal Register / Vol. 81, No. 225 / Tuesday, November 22, 2016 / Proposed Rules alternative, the Coast Guard rejects this alternative. sradovich on DSK3GMQ082PROD with PROPOSALS Alternative 3: Large Scale Regulatory Implementation of the Polar Code In this alternative, the Coast Guard would implement the entire Polar Code in one regulatory effort. This would create or modify regulations throughout 46 and 33 CFR. The affected vessels, operators, and the Government would also incur the costs and impacts of the implementation of the entire Polar Code from a single regulatory effort. The Coast Guard rejected this alternative because it would greatly delay the issuance of the certificate beyond the January 1, 2017 effective date of the Polar Code. By moving forward with the proposed alternative, U.S. vessel owners and operators who obtain a Polar Ship Certificate would be in compliance with the operating requirements in the SOLAS Convention. Therefore, they would be permitted to transit in polar waters of foreign nations as soon as possible after January 1, 2017, without adverse consequences such as denial of entry, expulsion, or possibly detainment. B. Small Entities Under the Regulatory Flexibility Act (RFA), 5 U.S.C. 601–612, we have considered whether this proposed rule would have a significant economic impact on a substantial number of small entities. The term ‘‘small entities’’ comprises small businesses, not-forprofit organizations that are independently owned and operated and are not dominant in their fields, and governmental jurisdictions with populations of less than 50,000. In accordance with the Regulatory Flexibility Act (RFA) (5 U.S.C. 601– 612), the Coast Guard prepared this threshold analysis that examines the impacts of the proposed rule on small entities. Based on our analysis of the entities affected by this proposed rule, all of the 41 affected U.S.-flagged vessels are owned by U.S. entities. To determine which entities are small, we compiled the data used in this analysis from publicly available and proprietary sources such as Manta and Cortera, and from the affected entities’ Web sites. We used available owner’s business information to identify the entities’ primary line of business as coded by the North American Industry Classification System (NAICS) to find employee and revenue size information. We used this information to determine whether we should consider a business ‘‘small’’ by comparing it to the Small Business VerDate Sep<11>2014 16:39 Nov 21, 2016 Jkt 241001 Administration’s (SBA) ‘‘Table of Small Business Size Standards Matched to North American Industry Classification System Codes.’’ In some cases, SBA classifies businesses on a standard either based on the number of employees or annual revenues.4 We found that no small government jurisdictions or non-profits own any of the U.S. vessels affected by this proposed rule. We found that 19 of the 41 (46 percent) affected companies are small entities and the remaining companies are not small, based on SBA’s size standards. We found 11 different NAICS codes represent the 19 small entities with the NAICS code 488330, ‘‘Navigational Services to Shipping’’, representing 8 of the 19 small entities or 42 percent of them. We estimate the initial cost to each classed vessel owner and operator to be about $102.60 [$1,100/11 classed U.S vessel owners and operators that have their vessels classed by a class society + $28.60 (11 classed vessels × $2.60)/11 (cost for crewmembers of 11 classed U.S. vessel owners and operators to post the certificate divided by the number of U.S. classed vessel owners and operators. Again, in the sixth year, these 11 classed U.S. vessel owners and operators would incur this cost)]. In the second, third, seventh, and eighth year, 11 classed vessel U.S. vessel owners and operators would incur this same cost. The eight U.S. vessel owners who own vessels that are not classed would only incur a cost of $2.60 per vessel in the each of the years described above or the first (two vessels) through the third year (three vessels in the second and third year each) and sixth (the same two vessels as in the first year) through the eighth year (the same three vessels as in the second and third year in the seventh and eighth year each) of the analysis period. Of the 19 small entities, 16 had annual revenue information (the remaining three small entities only had employee information). Of the 16, 12 are classed, which means four (12/3 years for the phase-in period) would incur the $102.60 in the initial year and again in the second and third year and for reissuance of the certificate again in the sixth, seventh, and eighth year of the analysis period. The four that are not classed would only incur the cost of posting the certificate of $2.60 in each year described above (or essentially one in the first year and second year and again in the sixth and seventh year 4 Readers can access small entity information online at http://www.sba.gov/size/ indextableofsize.html. PO 00000 Frm 00075 Fmt 4702 Sfmt 4702 when the certificate is reissued and two in the third year and again in the eighth year when the certificate is reissued). All 16 small entities or 100 percent would have an annual revenue impact of less than 1 percent in the initial year and in the second, third, sixth, seventh, and eighth year of the analysis period. Thus, the estimated impact on the affected entities is not a significant economic impact. Based on the preceding analysis, the Coast Guard certifies under 5 U.S.C. 605(b) that this proposed rule would not have a significant economic impact on a substantial number of small entities. If you think that your business, organization, or governmental jurisdiction qualifies as a small entity and that this rule would have a significant economic impact on it, please submit a comment to the Docket Management Facility at the address under ADDRESSES. In your comment, explain why you think it qualifies and how and to what degree this proposed rule would economically affect it. C. Assistance for Small Entities Under section 213(a) of the Small Business Regulatory Enforcement Fairness Act of 1996, Public Law 104– 121, we want to assist small entities in understanding this proposed rule so that they can better evaluate its effects on them and participate in the rulemaking. If the proposed rule would affect your small business, organization, or governmental jurisdiction and you have questions concerning its provisions or options for compliance, please consult CDR Todd Howard using the contact information given in the FOR FURTHER INFORMATION CONTACT section of this proposed rule. 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 The Paperwork Reduction Act of 1995 (44 U.S.C. 3501–3520) requires that the Coast Guard consider the impact of paperwork and other information collection burdens imposed on the E:\FR\FM\22NOP1.SGM 22NOP1 sradovich on DSK3GMQ082PROD with PROPOSALS Federal Register / Vol. 81, No. 225 / Tuesday, November 22, 2016 / Proposed Rules public. According to the 1995 amendments to the Paperwork Reduction Act, an agency may not collect or sponsor the collection of information, nor may it impose an information collection requirement unless it displays a currently valid OMB control number. This action contains proposed amendments to the existing information collection requirements previously approved under OMB Control Number 1625–0017. As defined in 5 CFR 1320.3(c), ‘‘collection of information’’ comprises reporting, recordkeeping, monitoring, posting, labeling, and other similar actions. The title and description of the information collections, a description of those who must collect the information, and an estimate of the total annual burden follow. The estimate covers the time for reviewing instructions, searching existing sources of data, gathering and maintaining the data needed, and completing and reviewing the collection. The summary of revised 1625–0017 collection follows: Title: Various International Agreement Safety Certificates. OMB Control Number: 1625–0017. Summary of the Collection of Information: The International Convention for the Safety of Life at Sea (SOLAS) is a product of the International Maritime Organization (IMO), an agency of the United Nations. SOLAS applies to all mechanically propelled cargo and tank vessels of 500 or more gross tons (GT), and to all mechanically propelled passenger vessels carrying more than 12 passengers that engage in international voyages. By IMO’s definition, an ‘‘international voyage’’ means a voyage from a country to which the Convention applies to a port outside the country, or vice versa. The United States, represented by the U.S. Coast Guard, was a major contributor and proponent of the 1974 Convention (SOLAS 74). President Carter’s Executive Order 12234 (September 3, 1980), noted that SOLAS 74 was signed at London on November 1, 1974, proclaimed by the President of the United States on January 28, 1980, and entered into force for the United States on May 25, 1980. SOLAS 1974 currently requires one or more of the following certificates to be carried on onboard certain passenger and cargo ships engaged in international voyages (46 CFR 2.01–25): (1) Passenger Ship Safety Certificate and Record (2) Cargo Ship Safety Construction Certificate VerDate Sep<11>2014 16:39 Nov 21, 2016 Jkt 241001 (3) Cargo Ship Safety Equipment Certificate and Record (4) Cargo Ship Safety Radio Certificate (issued by Federal Communications Commission (FCC)) (5) Nuclear Passenger Ship Safety Certificate (6) Nuclear Cargo Ship Safety Certificate (7) Safety Management Certificate (8) International Ship Security Certificate (9) High-Speed Craft Safety Certificate The Coast Guard is adding the Polar Ship Certificate to the list of certificates that it can issue. Need for Information: In June of 2015, in resolutions MSC.384(94) and MEPC.264(68), the International Maritime Organization (IMO) adopted the International Code for Ships Operating in Polar Waters (Polar Code). The Polar Code raises the safety standards for commercial ships operating in or transiting through Arctic and Antarctic waters as well as enhances environmental protection for polar waters that include coastal communities in the U.S. Arctic. As a signatory to the International Convention for the Safety of Life at Sea (SOLAS), the United States has a treaty obligation to ensure compliance with SOLAS requirements. All mechanically propelled passenger vessels carrying more than 12 passengers that engage in international voyages and all mechanically propelled cargo vessels of more than 500 gross tons that engage in international voyages within polar waters as defined by the Polar Code would be required to have the Polar Ship Certificate. The Polar Ship Certificate is valid for 5 years. The purpose of this rulemaking is to ensure that marine inspectors could issue certificates required by the Polar Code and that these certificates are being carried on all applicable vessels. Additionally, this rulemaking will add the Polar Ship Certificate to the list of certificates that classification societies could issue on behalf of the Coast Guard-in consideration of hazards and conditions unique to polar waters and a potential increase in traffic in Arctic and Antarctic waters. These additional hazards include navigation in ice and low temperatures, high latitude communications and navigation, remoteness from response resources, and limited hydrographic charting. We calculate the hour burden on an annual basis, which takes into account the reissuance of the certificate every fifth year. The estimated burden is 1/10 of an hour or 6 minutes. About 8 vessels (41 total vessels/5 years) annually PO 00000 Frm 00076 Fmt 4702 Sfmt 4702 83793 equates to 48 minutes or 0.8 hours for the hour burden. Or equivalently, 13 classed and unclassed U.S. vessels (11 classed and 2 unclassed) × 6 minutes in the first and sixth years + 14 classed unclassed U.S vessels (11 classed and 3 unclassed) × 6 minutes in the second, third, seventh and eighth year for a total of 492 minutes divided by 82 vessels (13 in the first and sixth years and 14 in the second, third, seventh, and eighth year of the analysis period. Recall, because vessel owners and operators would have 3 years to obtain a certificate, we divided the population essentially into thirds, 13 in the first and sixth years and 14 in the second, third, and seventh and eighth years). Proposed use of Information: The Polar Ship Certificate attests that the vessel has met applicable requirements of SOLAS to the satisfaction of the U.S. Government. Without the certificate, U.S.-flagged vessels could be detained in foreign ports as being unsafe. Description of the Respondents: Respondents are the owner, agent, Master, operator, or person in charge of a U.S.-flagged vessel that transits in polar waters. Number of Respondents: The existing OMB-approved number of respondents is 413. This proposed rule would not change the number of respondents because the vessel population that would be affected is a subset of the existing number of respondents; this proposed rule is not adding new respondents to this collection. Frequency of Response: The existing OMB-approved number of responses is 912. This proposed rule would increase the number of responses by 14 annually (41 vessels/3-year renewal period) to 926. Burden of Response: The existing OMB-approved burden of response is 6 minutes, or 0.1 hours, or the time it takes for a crewmember of a vessel to post the Polar Ship Certificate onboard the vessel. Estimate of Total Annual Burden: The existing OMB-approved total annual burden is 94 hours. This proposed rule would increase the burden hours annually by one hour. The estimated total annual burden would now be 95 hours annually. As required by 44 U.S.C. 3507(d), we will submit a copy of this proposed rule to OMB for its review of the COI. We ask for public comment on the proposed COI to help us determine how useful the information is; whether it can help us perform our functions better; whether it is readily available elsewhere; how accurate our estimate of the burden of collection is; how valid our methods for determining burden E:\FR\FM\22NOP1.SGM 22NOP1 83794 Federal Register / Vol. 81, No. 225 / Tuesday, November 22, 2016 / Proposed Rules sradovich on DSK3GMQ082PROD with PROPOSALS are; how we can improve the quality, usefulness, and clarity of the information; and how we can minimize the burden of collection. If you submit comments on the COI, submit them both to OMB and to the Docket Management Facility where indicated under the ADDRESSES section of this proposed rule, by the date under the DATES section. You need not respond to a COI unless it displays a currently valid control number from OMB. Before the Coast Guard could enforce the COI requirements in this proposed rule, OMB would need to approve the Coast Guard’s request to collect this information. E. Federalism A rule has implications for federalism under Executive Order 13132 (‘‘Federalism’’) if it has a substantial direct effect on 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 proposed rule under Executive Order 13132 and have determined that it is consistent with the fundamental federalism principles and preemption requirements as described in Executive Order 13132. Our analysis is explained below. It is well settled that States may not regulate in categories reserved for regulation by the Coast Guard. It is also well settled that Coast Guard regulations regarding vessel design, construction, alteration, repair, maintenance, operation, equipping, personnel qualification, and manning issued under the authority of 46 U.S.C. 3306, 3703, 7101, and 8101 are within fields foreclosed from regulation by the States. See United States v. Locke, 529 U.S. 89, 90 (2000) (stating ‘‘Congress has left no room for state regulation of these matters.’’). This rule adds the Polar Ship Certificate to the list of certificates required, if applicable, by the SOLAS. Additionally, this rule adds this certificate to the list of SOLAS certificates that recognized classification societies are authorized to issue on behalf of the Coast Guard. The issuance of international certificates is within the sole purview of the Coast Guard to regulate pursuant to 46 U.S.C. 3306, 3703, 7101, and 8101; Executive Order 12234; and the principles discussed in Locke. Thus, the regulations are consistent with the principles for federalism and preemption requirements in Executive Order 13132. While it is settled that States may not regulate in categories in which Congress VerDate Sep<11>2014 16:39 Nov 21, 2016 Jkt 241001 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 determination. Additionally, for rules with federalism implications and preemptive effect, Executive Order 13132 specifically directs agencies to consult with State and local governments during the rulemaking process. If you believe this rule has implications for federalism under Executive Order 13132, please contact the person listed in the FOR FURTHER INFORMATION section of this preamble. F. Unfunded Mandates Reform Act The Unfunded Mandates Reform Act of 1995, 2 U.S.C. 1531–1538, requires Federal agencies to assess the effects of their discretionary regulatory actions. In particular, the Act addresses actions that may result in the expenditure by a State, local, or tribal government, in the aggregate, or by the private sector of $100,000,000 (adjusted for inflation) or more in any one year. Though this proposed rule would not result in such an expenditure, we do discuss the effects of this rule elsewhere in this preamble. G. Taking of Private Property This proposed rule would not cause a taking of private property or otherwise have taking implications under Executive Order 12630 (‘‘Governmental Actions and Interference with Constitutionally Protected Property Rights’’). H. Civil Justice Reform This proposed rule meets applicable standards in sections 3(a) and 3(b)(2) of Executive Order 12988, (‘‘Civil Justice Reform’’), to minimize litigation, eliminate ambiguity, and reduce burden. I. Protection of Children We have analyzed this proposed rule under Executive Order 13045 (‘‘Protection of Children from Environmental Health Risks and Safety Risks’’). This rule is not an economically significant rule and would not create an environmental risk to health or risk to safety that might disproportionately affect children. J. Indian Tribal Governments This proposed rule does not have tribal implications under Executive Order 13175 (‘‘Consultation and Coordination with Indian Tribal Governments’’), because it would not have a substantial direct effect on one or more Indian tribes, on the relationship PO 00000 Frm 00077 Fmt 4702 Sfmt 4702 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 proposed rule under Executive Order 13211 (‘‘Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use’’). We have determined that it is not a ‘‘significant energy action’’ under that order because it is not a ‘‘significant regulatory action’’ under Executive Order 12866 and is not likely to have a significant adverse effect on the supply, distribution, or use of energy. L. Technical Standards The National Technology Transfer and Advancement Act, codified as a note to 15 U.S.C. 272, 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 would be inconsistent with applicable law or otherwise impractical. Voluntary consensus standards are technical standards (e.g., specifications of materials, performance, design, or operation; test methods; sampling procedures; and related management systems practices) that are developed or adopted by voluntary consensus standards bodies. This proposed rule does not use technical standards. Therefore, we did not consider the use of voluntary consensus standards. M. Environment We have analyzed this proposed rule under Department of Homeland Security Management Directive 023–01 and Commandant Instruction M16475.lD, which guide the Coast Guard in complying with the National Environmental Policy Act of 1969, 42 U.S.C. 4321–4370f, and have made a preliminary determination that this action is one of a category of actions that do not individually or cumulatively have a significant effect on the human environment. A preliminary environmental analysis checklist supporting this determination is available in the docket where indicated under the ‘‘Public Participation and Request for Comments’’ section of this preamble. This proposed rule involves: (1) Adding a Polar Ship Certificate to the list of certificates required, if applicable, by SOLAS; and (2) adding the Polar Ship Certificate to the list of SOLAS certificates that recognized classification societies may issue on behalf of the Coast Guard. These E:\FR\FM\22NOP1.SGM 22NOP1 Federal Register / Vol. 81, No. 225 / Tuesday, November 22, 2016 / Proposed Rules proposed actions constitute editorial or procedural changes concerning vessel documentation requirements (i.e., issuance of Polar Ship Certificates) and the delegation of authority for issuing such certificates. Thus, this proposed rule is likely to be categorically excluded under section 2.B.2 and figure 2–1, paragraphs (34)(a), (b), and (d) of the Instruction. This proposed rule would promote the Coast Guard’s maritime safety and environmental protection missions. We seek any comments or information that may lead to the discovery of a significant environmental impact from this proposed rule. List of Subjects 46 CFR Part 2 Marine Safety, Reporting and recordkeeping requirements, Vessels. 46 CFR Part 8 Administrative practice and procedure, Organization and functions (Government agencies), Reporting and recordkeeping requirements, Vessels. For the reasons discussed in the preamble, the Coast Guard proposes to amend 46 CFR parts 2 and 8 as follows: Title 46—Shipping Authority: Sec. 622, Pub. L. 111–281; 33 U.S.C. 1903; 43 U.S.C. 1333; 46 U.S.C. 2103, 2110, 3306, 3703; E.O. 12234, 45 FR 58801, 3 CFR, 1980 Comp., p. 277, sec. 1–105; Department of Homeland Security Delegation No. 0170.1(II)(77), (90), (92)(a), (92)(b). [Amended] 2. In § 2.01–6(a)(1), after the words ‘‘passengers in U.S. ports’’ and before the words ‘‘holds a valid’’, remove the word ‘‘and’’; and after the text ‘‘Passenger Ship Safety Certificate’’, add the text ‘‘, and, if applicable, holds a valid Polar Ship Certificate’’. ■ 3. Amend § 2.01–25 by adding paragraphs (a)(1)(x) and (a)(2)(x) to read as follows: sradovich on DSK3GMQ082PROD with PROPOSALS § 2.01–25 International Convention for Safety of Life at Sea, 1974. (a) * * * (1) * * * (x) Polar Ship Certificate. (2) * * * (x) Polar Ship Certificate. * * * * * PART 8—VESSEL INSPECTION ALTERNATIVES 4. The authority citation for 46 CFR part 8 continues to read as follows: ■ VerDate Sep<11>2014 16:39 Nov 21, 2016 Jkt 241001 § 8.320 Classification society authorization to issue international certificates. * * * * * (b) * * * (15) Polar Ship Certificate. * * * * * Dated: November 16, 2016. F.J. Sturm, Acting Director, Commercial Regulations and Standards, U.S. Coast Guard. [FR Doc. 2016–27989 Filed 11–21–16; 8:45 am] BILLING CODE 9110–04–P DEPARTMENT OF TRANSPORTATION Pipeline and Hazardous Materials Safety Administration [Docket No. PHMSA–2016–0136] 1. The authority citation for 46 CFR part 2 continues to read as follows: ■ ■ 5. Amend § 8.320 as follows: a. In paragraph (b)(13), remove the word ‘‘and’’; ■ b. In paragraph (b)(14), remove the text ‘‘.’’; and add, in its place, the text ‘‘; and’’; and ■ c. Add new paragraph (b)(15) to read as follows: ■ ■ 49 CFR Part 192 PART 2—VESSEL INSPECTIONS § 2.01–6 Authority: 33 U.S.C. 1903, 1904, 3803 and 3821; 46 U.S.C. 3103, 3306, 3316, and 3703; Department of Homeland Security Delegation No. 0170.1 and Aug. 8, 2011 Delegation of Authority, Anti-Fouling Systems. Pipeline Safety: Meeting of the Gas Pipeline Safety Advisory Committee Pipeline and Hazardous Materials Safety Administration (PHMSA), DOT. ACTION: Notice of advisory committee meeting. AGENCY: This notice announces a public meeting of the Technical Pipeline Safety Standards Committee, also known as the Gas Pipeline Advisory Committee (GPAC). The GPAC will meet to discuss a proposed rulemaking to address regulatory requirements for onshore gas transmission and gathering pipelines. DATES: The committee will meet on Wednesday, December 7, 2016, from 8:30 a.m. to 5 p.m. and on Thursday, December 8, 2016, from 8:30 a.m. to 5 p.m., EST. The meetings will not be web cast; however, presentations will be available on the meeting Web site and posted on the E-Gov Web site: http:// www.regulations.gov under docket number PHMSA–2016–0136 within 30 days following the meeting. ADDRESSES: The meeting will be held at a location yet to be determined in the SUMMARY: PO 00000 Frm 00078 Fmt 4702 Sfmt 4702 83795 Washington, DC Metropolitan area. The meeting location, agenda and any additional information will be published on the following pipeline advisory committee meeting and registration page at: https:// primis.phmsa.dot.gov/meetings/ MtgHome.mtg?mtg=121. Public Participation This meeting will be open to the public. Members of the public who wish to attend in person are asked to register at: https://primis.phmsa.dot.gov/ meetings/MtgHome.mtg?mtg=121 no later than December 1, 2016, in order to facilitate entry and guarantee seating. Members of the public who attend in person will also be provided an opportunity to make a statement during the meeting. Written comments: Persons who wish to submit written comments on the meeting may be submitted to the docket in the following ways: E-Gov Web site: http:// www.regulations.gov. This site allows the public to enter comments on any Federal Register notice issued by any agency. Fax: 1–202–493–2251. Mail: Docket Management Facility; U.S. Department of Transportation (DOT), 1200 New Jersey Avenue SE., West Building, Room W12–140, Washington, DC 20590–0001. Hand Delivery: Room W12–140 on the ground level of the DOT West Building, 1200 New Jersey Avenue SE., Washington, DC, between 9 a.m. and 5 p.m., Monday through Friday, except on Federal holidays. Instructions: Identify the docket number PHMSA–2016–0136 at the beginning of your comments. Note that all comments received will be posted without change to http:// www.regulations.gov, including any personal information provided. Anyone can search the electronic form of all comments received into any of our dockets by the name of the individual submitting the comment (or signing the comment, if submitted on behalf of an association, business, labor union, etc.). Therefore, consider reviewing DOT’s complete Privacy Act Statement in the Federal Register published on April 11, 2000, (65 FR 19477) or view the Privacy Notice at http://www.regulations.gov before submitting any such comments. Docket: For access to the docket or to read background documents or comments, go to http:// www.regulations.gov at any time or to Room W12–140 on the ground level of the DOT West Building, 1200 New Jersey Avenue SE., Washington, DC, between 9:00 a.m. and 5:00 p.m., E:\FR\FM\22NOP1.SGM 22NOP1

Agencies

[Federal Register Volume 81, Number 225 (Tuesday, November 22, 2016)]
[Proposed Rules]
[Pages 83786-83795]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-27989]


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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

46 CFR Parts 2 and 8

[Docket No. USCG-2016-0880]
RIN 1625-AC35


Adding the Polar Ship Certificate to the List of SOLAS 
Certificates and Certificates Issued by Recognized Classification 
Societies

AGENCY: Coast Guard, DHS.

ACTION: Notice of proposed rulemaking.

-----------------------------------------------------------------------

SUMMARY: This proposed rule would add a new Polar Ship Certificate to 
the list of existing certificates required to be carried on board all 
U.S. and foreign-flagged vessels subject to the International 
Convention for Safety of Life at Sea (SOLAS) and operating in Arctic 
and Antarctic waters, generally above 60 degrees north latitude and 
below 60 degrees south latitude lines. Additionally, the Coast Guard 
proposes to add this certificate to the list of SOLAS certificates that 
recognized classification societies are authorized to issue on behalf 
of the Coast Guard. The proposed rule would apply to commercial cargo 
ships greater than 500 gross tons engaging in international voyages, 
and passenger ships carrying more than 12 passengers engaging in 
international voyages, when these ships operate within polar waters as 
defined by the Polar Code.

DATES: Comments and related material must be submitted to the online 
docket via http://www.regulations.gov by December 22, 2016.

ADDRESSES: You may submit comments identified by docket number USCG-
2016-0880 using the Federal eRulemaking Portal at http://www.regulations.gov. See the ``Public Participation and Request for 
Comments'' portion of the SUPPLEMENTARY INFORMATION section for further 
instructions on submitting comments.
    Collection of Information: You must submit comments on the 
collection of information discussed in section V.D. of this preamble 
both to the Coast Guard's docket and to the Office of Information and 
Regulatory Affairs (OIRA) in the White House Office of Management and 
Budget. OIRA submissions can use one of the listed methods:
     Email (preferred)_oira_submission@omb.eop.gov (include 
the docket number and ``Attention: Desk Officer for Coast Guard, DHS'' 
in the subject line of the email);
     Fax--202-395-6566; or
     Mail--Office of Information and Regulatory Affairs, Office 
of Management and Budget, 725 17th Street NW., Washington, DC 20503, 
ATTN: Desk Officer, U.S. Coast Guard.

FOR FURTHER INFORMATION CONTACT: For information about this document 
call or email CDR Todd Howard, Systems Engineering Division (CG-ENG-3), 
Coast Guard; telephone 202-372-1375, email Todd.M.Howard@uscg.mil.

SUPPLEMENTARY INFORMATION: 

Table of Contents for Preamble

I. Public Participation and Request for Comments
    A. Submitting Comments
    B. Viewing Comments and Documents
    C. Privacy Act
    D. Public Meeting
II. Abbreviations
III. Basis, Purpose, and Background
IV. Discussion of Proposed Rule
V. Regulatory Analyses
    A. Regulatory Planning and Review
    B. Small Entities
    C. Assistance for Small Entities
    D. Collection of Information
    E. Federalism
    F. Unfunded Mandates Reform Act
    G. Taking of Private Property
    H. Civil Justice Reform
    I. Protection of Children
    J. Indian Tribal Governments
    K. Energy Effects
    L. Technical Standards
    M. Environment

I. Public Participation and Request for Comments

    We view public participation as essential to effective rulemaking, 
and will consider all comments and material received during the comment 
period. Your comment can help shape the outcome of this rulemaking. If 
you submit a comment, please include the docket number for this 
rulemaking, indicate the specific section of this document to which 
each comment applies, and provide a reason for each suggestion or 
recommendation.
    We encourage you to submit comments through the Federal eRulemaking 
Portal at http://www.regulations.gov. If your material cannot be 
submitted using http://www.regulations.gov, contact the person in the 
FOR FURTHER INFORMATION CONTACT section of this document for alternate 
instructions. Documents mentioned in this notice and all public 
comments, are in our online docket at http://www.regulations.gov and 
can be viewed by following that Web site's instructions. Additionally, 
if you go to the online docket and sign up for email alerts, you will 
be notified when comments are posted or a final rule is published.
    We accept anonymous comments. All comments received will be posted 
without change to http://www.regulations.gov and will include any 
personal information you have provided. For more about privacy and the 
docket, you may review a Privacy Act notice regarding the Federal 
Docket Management System in the March 24, 2005, issue of the Federal 
Register (70 FR 15086).
    We are not planning to hold a public meeting but may do so if 
public comments indicate a meeting would be helpful. We would issue a 
separate Federal Register notice to announce the date, time, and 
location of that meeting.

II. Abbreviations

BLS Bureau of Labor Statistics
COI Collection of Information
DHS Department of Homeland Security
FR Federal Register
IMO International Maritime Organization
MARPOL International Convention for the Prevention of Pollution from 
Ships, 1974
MEPC Marine Environment Protection Committee
MOA Memorandum of Agreement
MSC Maritime Safety Committee
NAICS North American Industry Classification System
OMB Office of Management and Budget
Polar Code International Code for Ships Operating in Polar Waters
RA Regulatory Assessment
SBA Small Business Administration
SOLAS International Convention for the Safety of Life at Sea
STCW International Convention on Standards of Training, 
Certification, and Watchkeeping for Seafarers
Sec.  Section Symbol
U.S.C. United States Code

III. Basis, Purpose, and Background

    In 2014 and 2015, in resolutions MSC.384(94) and MEPC.264(68), 
respectively, the International Maritime Organization (IMO) adopted the 
safety and environmental provisions of the International Code for Ships 
Operating in Polar Waters (Polar Code). The Polar Code adds 
requirements to existing IMO Conventions--the International Convention 
for the Safety of Life at Sea (SOLAS), the International Convention for 
the Prevention of Pollution from Ships (MARPOL), and the International

[[Page 83787]]

Convention on Standards of Training, Certification, and Watchkeeping 
for Seafarers (STCW)--in consideration of hazards and conditions unique 
to the polar waters, and an expected increase in traffic in Arctic and 
Antarctic waters. These additional hazards include navigation in ice 
and low temperatures, high latitude communications and navigation, 
remoteness from response resources, and limited hydrographic charting. 
The Polar Code enters into force on January 1, 2017.
    One of the requirements for ships subject to the Polar Code is to 
carry a Polar Ship Certificate pursuant to SOLAS. The Polar Ship 
Certificate attests that the vessel has met applicable requirements of 
SOLAS to the satisfaction of the U.S. Government. As a signatory to 
SOLAS, the United States has a treaty obligation to ensure compliance 
with SOLAS requirements. This rulemaking creates a certificate that 
U.S. vessels subject to SOLAS will need in order to travel 
internationally within polar waters as defined by the Polar Code 
beginning January 1, 2017. Beginning on that date, U.S. vessels that 
are subject to the SOLAS Convention and elect to travel through the 
polar waters of States other than the United States will have to carry 
a Polar Ship Certificate or risk detention, denial of entry, or 
expulsion from the polar waters of other States. This rulemaking is 
necessary to allow the Coast Guard to create the new Polar Ship 
Certificate and add it to the list of certificates in 46 CFR part 2, 
and to allow third-party organizations to issue it on the Coast Guard's 
behalf by adding the new Polar Ship Certificate to the list of 
certificates in 46 CFR part 8. Foreign flagged vessels, subject to 
SOLAS and operating in polar waters, must also carry the Polar Ship 
Certificate but the certificate will be issued by the vessel's class 
society or flag state. However, the Coast Guard will examine foreign 
flagged vessels during Port State Control boardings to ensure that they 
are properly certificated. The SOLAS requirement applies to commercial 
cargo ships greater than 500 gross tons engaging in international 
voyages, and passenger ships carrying more than 12 passengers engaging 
in international voyages, when these ships operate within polar waters 
as defined by the Polar Code.
    The Coast Guard is authorized to regulate this subject matter 
under, among other authorities, Executive Order 12234, ``Enforcement of 
the Convention for the Safety of Life at Sea,'' 45 FR 58801; 33 U.S.C. 
1231; 46 U.S.C. 2103, 3306, 3316, and 3703; and Department of Homeland 
Security Delegation No. 0170.1.
    This rulemaking does not address the Polar Code requirements added 
to SOLAS other than the Polar Code Certificate. Furthermore, this 
rulemaking does not address the Polar Code requirements added to MARPOL 
or STCW. In order to begin issuing Polar Code certificates as soon as 
possible after January 1, 2017, the Coast Guard is implementing the 
Polar Code through several rulemakings. The first project, which is 
this rulemaking, only requires SOLAS vessels operating in polar waters 
to carry a Polar Ship Certificate. It contains the regulatory changes 
required for the issuance of the certificates and reflects only the 
documentation costs for the certificates. Subsequent rulemakings will 
implement the design, engineering, and personnel standards found in the 
Polar Code. The incremental costs for industry to comply with these 
standards will be accounted for in the regulatory analyses for those 
rulemakings.

IV. Discussion of Proposed Rule

    This proposed rule would amend 46 CFR 2.01-6(a)(1), and 2.01-25 
(a)(1) and (a)(2), to include the Polar Ship Certificate in the list of 
International Convention Certificates to be issued by the Officer in 
Charge of Marine Inspection and carried on certain passenger, cargo, 
and tankships engaged in international voyages. This proposed 
requirement would apply to commercial cargo ships greater than 500 
gross tons and passenger ships carrying more than 12 passengers that 
engage in international voyages within polar waters as defined by the 
Polar Code.
    This proposed rule would also amend 46 CFR 8.320(b) to include the 
Polar Ship Certificate in the list of International Convention 
Certificates that could be issued by recognized classification 
societies. Both the Coast Guard and classification societies would have 
the ability to issue these certificates.
    By adding this certificate to the Code of Federal Regulations, we 
enable marine inspectors to ensure compliance with the SOLAS 
requirement to carry a Polar Ship Certificate, which fulfills the 
United States' treaty obligations with regard to the certification. 
Additionally, without this certificate, the U.S.-flagged vessels 
sailing on international routes would be subject to deficiencies, 
detentions, denial of entry or expulsion from the polar waters of other 
port States due to lack of proper certificates.

V. Regulatory Analyses

    We developed this proposed rule after considering numerous statutes 
and Executive orders related to rulemaking. Below we summarize our 
analyses based on these statutes or Executive orders.

A. Regulatory Planning and Review

    Executive Orders 12866 (Regulatory Planning and Review) and 13563 
(Improving Regulation and Regulatory Review) direct agencies to assess 
the costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, of reducing costs, of harmonizing rules, and of promoting 
flexibility. This 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.
    This proposed rule would add a new Polar Ship Certificate to the 
list of existing SOLAS certificates required to be carried onboard all 
U.S. and foreign-flagged vessels above 500 GT ITC, (the International 
Convention on Tonnage Measurement of Ships 1969 or gross tonnage 
assigned under this system) or passenger ships carrying more than 12 
passengers on international routes operating in polar waters, generally 
above 60 degrees north latitude and below 60 degrees south latitude 
lines. The IMO adopted the Polar Code in 2014 and 2015 to acknowledge 
that polar waters impose additional operating demands and risks.\1\ 
Since the United States is signatory to the SOLAS convention, the 
United States has an obligation to ensure that all U.S.-flagged vessels 
subject to SOLAS that transit in polar waters carry a Polar Ship 
Certificate. Owners and operators of all foreign-flagged vessels 
subject to SOLAS would have their Polar Ship Certificates issued by the 
appropriate flag state.
---------------------------------------------------------------------------

    \1\ http://www.imo.org/en/MediaCentre/HotTopics/polar/Documents/POLAR%20CODE%20TEXT%20AS%20ADOPTED.pdf.
---------------------------------------------------------------------------

    This proposed rule would amend 46 CFR part 2, ``Vessel 
Inspections'', Subpart 2.01, ``Inspecting and Certificating of 
Vessels'' including Section 2.01-25, ``International Convention for 
Safety of Life at Sea'' to include the new Polar Ship Certificate. The 
proposed rule would also amend 46 CFR part 8, ``Vessel Inspection

[[Page 83788]]

Alternatives'', Subpart C, ``International Convention Certificate 
Issuance'', Section 8.320, ``Classification Society Authorization to 
Issue International Certificates'', at paragraph (b) to include the 
Polar Ship Certificate as one of the certificates that can be issued by 
a recognized classification society on behalf of the Coast Guard.
Affected Population
    Based on Coast Guard field data and Coast Guard databases such as 
the Marine Information for Safety and Law Enforcement (MISLE) database, 
the Coast Guard's Ship Arrival Notification System (SANS), and data 
from the Coast Guard's Navigation Data Center (NDC), we estimate the 
total number of U.S. vessels this proposed rule would affect to be 
about 41 total vessels. This is the number of U.S. vessels that have 
transited internationally in polar waters, which are generally above 
and below the 60 degree north and 60 degree south latitudes lines, 
respectively, over the past 5 years and have made port calls in Alaskan 
ports over this time period. Of the 41 U.S. vessels that have transited 
polar waters during the 5-year period, some entered polar waters in the 
first year and not the following year, but returned in subsequent 
years. The opposite is also true; some vessels that did not transit 
polar waters in the first year of the data period did so in the 
following years of the data period.
    Recognized classification societies that have been granted 
delegated authority from the Coast Guard would issue the Polar Ship 
Certificate, an international convention certificate, on behalf of the 
Coast Guard for U.S.-flagged vessels that are classed under the 
authority in 46 CFR 8.320(a). Although multiple classification 
societies could request authorization to issue the Polar Ship 
Certificate on behalf of the Coast Guard, for the purpose of this 
analysis, the Coast Guard assumes one classification society would 
issue the Polar Ship Certificate to vessel owners and operators on 
behalf of the Coast Guard for vessels that are classed.
Cost Analysis
Classification Societies Cost
    This proposed rule would amend 46 CFR 8.320(b) to enable recognized 
class societies to request authorization to issue the Polar Ship 
Certificate on behalf of the Coast Guard. For vessels that are not 
classed, the Coast Guard would issue the Polar Ship Certificate.
    There are two cost elements associated with a classification 
society issuing a Polar Ship Certificate: The cost to review and return 
a signed copy of the Memorandum of Agreement (MOA) between the 
recognized classification society and the Coast Guard, and the cost to 
create the certificate once the MOA is approved by each party. As 
stated in 46 CFR 8.320(c), the Coast Guard will enter into an agreement 
with the classification society to issue international convention 
certificates such as the Polar Ship Certificate. The MOA essentially 
represents a delegation letter and is a standard document that allows a 
recognized classification society to issue the Polar Ship Certificate 
on behalf of the Coast Guard.
    Based on Coast Guard data from the Office of Design and Engineering 
Standards, we estimate it would take a recognized classification 
society 1 hour to review the MOA. A classification and documentation 
specialist would review the MOA and because there is no equivalent 
labor category in the Bureau of Labor Statistics' (BLS) Occupational 
Employment Statistics National Industry-Specific Occupational 
Employment and Wage Estimates for May 2015, we used the ``Business 
Operations Specialist, All Other'' (Occupation Code 13-1199) category 
for Deep Sea, Coastal, and Great Lakes Water Transportation with a 
North American Industry Classification Code of 483100 as a 
representative occupation. The mean hourly wage rate for this 
occupation is $38.63. Since this is an unloaded hourly wage rate, we 
added a load factor to obtain a loaded hourly wage rate. We used BLS' 
2015 Employer Cost for Employee Compensation databases to calculate and 
apply a load factor of 1.53 to obtain a loaded hourly labor rate of 
about $59.10 for this occupation.\2\ We also estimate it would take a 
recognized classification society attorney 1 hour to review the MOA for 
legal sufficiency. Using the Bureau of Labor Statistics' (BLS) 
Occupational Employment Statistics National Industry-Specific 
Occupational Employment and Wage Estimates for May 2015, we used the 
category ``Lawyers'' (Occupation Code 23-1011) for Deep Sea, Coastal, 
and Great Lakes Water Transportation with a North American Industry 
Classification Code of 483100. The mean hourly wage for this occupation 
is $65.51. Since this is an unloaded hourly wage rate, we apply the 
same load factor of 1.53 as derived above to obtain a loaded hourly 
wage rate of about $100.23.
---------------------------------------------------------------------------

    \2\ Information can be viewed at, http://www.bls.gov/oes/current/naics4_483100.htm. A loaded labor rate is what a company 
pays per hour to employ a person, not the hourly wage. The loaded 
labor rate includes the cost of benefits (health insurance, 
vacation, etc.). The load factor for wages is calculated by dividing 
total compensation by wages and salaries. For this analysis, we used 
BLS' Employer Cost for Employee Compensation/Transportation and 
Materials Moving Occupations, Private Industry Report (Series IDs, 
CMU2010000520000D and CMU2020000520000D for all workers using the 
multi-screen data search). Using 2015 Q4 data for the cost of 
compensation and cost per hour worked, we divide the total 
compensation amount of $27.46 by the wage and salary amount of 
$17.91 to obtain the load factor of about 1.53, rounded. See the 
following Web site, http://data.bls.gov/cgi-bin/dsrv. Multiplying 
1.53 by $38.63, we obtain a loaded hourly wage rate of about $59.10.
---------------------------------------------------------------------------

    We estimate the one-time cost of the proposed rule to the 
classification society to review the MOA to be about $162.33, 
undiscounted, which includes a $3 postage cost to mail the signed MOA 
to the Coast Guard for approval and signature [($59.10 x 1 hour) + 
($100.23 x 1 hour) + $3 for postage].
    Based on a recognized classification society estimate, it would 
take approximately 40 hours to create the Polar Ship Certificate once 
the MOA is approved. As with the MOA, a classification and 
documentation specialist would create the certificate. We again used 
the ``Business Operations Specialist, All Other'' as a representative 
occupation. We estimate the one-time labor cost for a documentation 
specialist to create the certificate to be about $2,364.00 (40 hours 
\3\ x $59.10/hour), undiscounted. Since the certificate is presented to 
a vessel owner or operator during the normal course of a vessel survey, 
we did not estimate a cost for this action.
---------------------------------------------------------------------------

    \3\ Based on estimate provided by a recognized class society to 
USCG.
---------------------------------------------------------------------------

    We estimate the total undiscounted cost of the proposed rule to a 
recognized classification society to be about $2,526.33 ($2,364 
document development cost + $162.33 MOA review cost).
Vessel Cost
    There are two cost elements associated with vessel owners and 
operators: The fee a recognized classification society would charge a 
vessel owner or operator for issuing the certificate for U.S. classed 
vessels only, and the cost associated with a crewmember posting the 
certificate onboard a vessel. Based on Coast Guard vessel data, 
approximately 20 percent, or 8 out of the 41 U.S.-flagged vessels, are 
not classed by a recognized classification society.
    The entry into force date for the Polar Code is Jan 1, 2017 but the 
requirement for ships is to have the certificate by their first renewal 
or intermediate exam after the entry into force date. This is a phased 
in approach that will likely

[[Page 83789]]

spread out the issuing of the certificates over a period of about 3 
years. Therefore, the Coast Guard would issue the Polar Ship 
Certificate to those vessel owners and operators as part of its routine 
inspection regime. A recognized classification society would issue the 
Polar Ship Certificate to the remaining 33 vessel owners and operators 
in the first, second, third, sixth, seventh, and eighth year of the 
analysis period.
    The Polar Ship Certificate is valid for a 5-year period and, after 
this time, the recognized classification society and the Coast Guard 
would issue a new Polar Ship Certificate to vessel owners and 
operators, depending upon whether a vessel is classed or not classed. 
The cost of the reissued Polar Ship Certificate is $100 if a recognized 
classification society issues the certificate (for 33 classed U.S. 
vessels); therefore, it would cost each U.S. classed vessel owner and 
operator $100 after 5 years to renew the certificate, or in the sixth, 
seventh, and eighth year of the analysis period. We assume a 3-year 
phase-in period for owners and operators to obtain the certificates. 
For the purpose of this analysis, we assume 13 U.S. vessels owners and 
operators (11 classed and 2 unclassed) would obtain a certificate in 
the first year and 14 (11 classed and 3 unclassed) U.S. vessel owners 
and operators would obtain one in the second year and third year. For 
reissuance, we again assume the same 13 vessel owners and operators 
would obtain a certificate in the sixth year and the same 14 vessel 
owners and operators would obtain one in the seventh and eighth year 
each; we divided the population accordingly to obtain even values.
    Vessel owners and operators would be required to post the 
certificate in a conspicuous area onboard the vessel with other 
applicable operating certificates. Based on the Office of Management 
and Budget's (OMB) approved collection of information (COI) entitled 
``Various International Agreement Safety Certificates,'' OMB control 
number 1625-0017, a crewmember onboard a vessel equivalent to a U.S. 
Coast Guard cadet would post the Polar Ship Certificate. Using the 
Coast Guard's Commandant Instruction 7310.1P for loaded hourly wages 
outside of the Government, the hourly wage rate of a person outside of 
the Government equivalent to a cadet is $26.00. We estimate it takes a 
crewmember about 6 minutes, or 0.1 hours, to post the Polar Ship 
Certificate at a labor cost of about $2.60 per vessel ($26.00 x 0.1 
hours). To post the Polar Ship Certificate, we estimate the total 
initial cost of the proposed rule to 13 U.S. vessel owners and 
operators to be about $33.80 (13 U.S. classed and unclassed vessels x 
0.1 hours x $26.00); regardless of whether the Polar Ship Certificate 
is issued by a recognized classification society, or by the Coast 
Guard. Owners and operators of U.S. vessels would incur this cost again 
in the sixth year because a crewmember would review and post the 
reissued certificate for the same 13 vessels.
    We estimate the initial cost of the proposed rule to vessel owners 
and operators to be about $1,133.80 in the first year (11 classed 
vessels x $100) + (11 classed vessels x $2.60 to post the certificate) 
+ two unclassed vessels x $2.60 to post the certificate). Because 
vessel owners and operators would be required to carry the Polar Ship 
Certificate beginning January 2017, the cost for the renewed 
certificate in the sixth year (or 5 years after the initial year) would 
again be $1,133.80 for these 13 vessels. In the second and third and 
seventh and eighth year, we estimate the cost for 14 U.S. vessel owners 
and operators to obtain and post a Polar Ship Certificate to be about 
$1,136.40 [(11 classed vessels x $100) + (11 classed vessels x $2.60 to 
post the certificate) + three unclassed vessels in each of these years 
x $2.60 each year to post the certificate]. See Table 1 below.

                Table 1--Summary of Classification Society and Vessel Owners and Operators Costs
                                                 [Undiscounted]
----------------------------------------------------------------------------------------------------------------
            Cost item                 Unit cost         Labor rate           Hours             Total cost
----------------------------------------------------------------------------------------------------------------
Classification Society             ..............  $59.10.............              40  $2,364 (incurred in year
 Certificate Creation.                                                                   one).
Classification Society Review of   ..............  $100.23 (Attorney).               1  $162.33 (incurred in
 MOA.                                                                                    year one and includes
                                                                                         $3 postage).
                                   ..............  $59.10 (Business                  1
                                                    Operations
                                                    Specialist).
Certificate Fee Charged to Vessel            $100  ...................  ..............  $1,100 (incurred in
 Owners and Operators.                                                                   years one to three and
                                                                                         six to eight); $3,300
                                                                                         for 33 classed vessels
                                                                                         in years one to three
                                                                                         and six to eight.
Vessel Crewmember Reviews and      ..............  $26................             0.1  $2.60 (incurred in year
 Posts Certificate.                                                                      one to three and six to
                                                                                         eight); $33.80 in year
                                                                                         one and six and $36.40
                                                                                         in years two and three;
                                                                                         seven and eight.
                                  ------------------------------------------------------------------------------
    Total Undiscounted Cost        ..............  ...................  ..............  $3,660.13.
     (Initial year).
----------------------------------------------------------------------------------------------------------------

    We estimate the total 10-year undiscounted cost to be $6,813.20 for 
all 41 U.S. vessel owners and operators ($1,133.80 in the first and 
sixth year + $1,136.40 in the second, third, seventh and eighth years 
of the analysis period). See Table 2 below.
    We estimate the initial undiscounted cost of the proposed rule to a 
recognized classification society and to 13 (11 classed and 2 unclassed 
vessels) U.S. vessel owners and operators to be about $3,660.13 ($2,364 
for the classification society to create the certificate + $162.33 for 
the classification society to review the MOA + $1,100 fee charged by a 
classification society to issue the certificate to the 11 classed 
vessel owners and operators + $33.80 for crewmembers of the 13 classed 
and unclassed vessels to post the certificate). We estimate the total 
10-year undiscounted cost of the proposed rule to industry to be about 
$9,339.53 ($3,660.13 in the first year + $1,136.40 in the second, 
third, seventh, and eighth years + $1,133.80 in the sixth year). See 
Table 2 below.
    We estimate the 10-year present value, or discounted cost of the 
proposed rule to industry to be between $7,465.49 and $8,435.28 at 7 
and 3 percent discount rates, respectively. We estimate the annualized 
cost to be between $1,062.92 and $988.87 at 7 and

[[Page 83790]]

3 percent discount rates, respectively. See Table 2 below.

                              Table 2--Total Costs of the Proposed Rule to Industry
                   [10-Year period of analysis, 7 and 3 percent discount rates, 2016 dollars]
----------------------------------------------------------------------------------------------------------------
                                                                  Cost
                          Period                             (undiscounted)          7%                3%
----------------------------------------------------------------------------------------------------------------
1.........................................................         $3,660.13         $3,420.68         $3,553.52
2.........................................................          1,136.40            992.58          1,071.17
3.........................................................          1,136.40            927.64          1,039.97
4.........................................................  ................  ................  ................
5.........................................................  ................  ................  ................
6.........................................................          1,133.80            755.50            949.54
7.........................................................          1,136.40            707.69            924.00
8.........................................................          1,136.40            661.40            897.08
9.........................................................  ................  ................  ................
10........................................................  ................  ................  ................
                                                           -----------------------------------------------------
    Total.................................................           9339.53          7,465.49          8,435.28
----------------------------------------------------------------------------------------------------------------
Annualized................................................  ................          1,062.92            988.87
----------------------------------------------------------------------------------------------------------------
Note: Totals may not sum due to independent rounding.

Government Costs
    There are 3 cost elements associated with this proposed rule for 
the Coast Guard: A one-time cost of creating the certificate and 
issuing (in the initial year, second, third, sixth, seventh, and eighth 
year) the Polar Ship Certificate to a vessel owner or operator if a 
vessel is not classed by a class society, reviewing the certificate 
onboard a vessel as part of the Coast Guard's routine inspection 
regime, and a one-time cost of creating and sending the delegation 
letter or MOA to a classification society for signature.
    For the eight U.S. vessels that are not classed by a recognized 
classification society, the Coast Guard would issue the Polar Ship 
Certificate in the first through the third year and the sixth through 
the eighth year. Because of the phase-in period, we divided the eight 
vessels evenly over three years to arrive at two in the first and sixth 
year and three in the second, third, seventh, and eighth year, with the 
sixth, seventh, and eighth year being the years when the certificate is 
reissued.
    Based on information from personnel in the Coast Guard's Office of 
Vessel Compliance, we estimate it takes Coast Guard personnel with the 
average equivalence of a GS-15 about 40 hours to create and review a 
Polar Ship Certificate at an average loaded hourly wage rate of $109 
using the Coast Guard's Commandant Instruction 7310.1P. We estimate the 
one-time cost for the Coast Guard to create the Polar Ship Certificate 
to be about $4,360 (40 hours x $109/hour), for the eight U.S. vessels 
without a classification.
    Based on an OMB-approved COI (Control Number 1625-0017), we 
estimate it takes a Coast Guard Officer, the Officer in Charge Marine 
Inspection (OCMI), or more specifically, a Lieutenant with the rank of 
an O-3, about 30 minutes, or 0.5 hours per vessel, to review the Polar 
Ship Certificate for validity and correctness (the Coast Guard issues 
and reviews the certificate at the same time during its normal 
inspection regime). Using the Coast Guard's Commandant Instruction 
7310.1P for loaded hourly wages, an O-3 has a loaded hourly wage rate 
of $78.00. Therefore, we estimate the total undiscounted cost to the 
Government to review the Polar Ship Certificate for all 41 affected 
vessels to be about $1,599.00 ($78.00 x 41 vessels x 0.5 hours), or 
about $39.00 per vessel. We use the same methodology as above with 
owners and operators obtaining certificates over a three-year period 
(13 in the first and sixth year and 14 in the second, third, seventh 
and eighth year), with the sixth, seventh and eighth year being the 
renewal years. Again, 13 inspections (11 classed and 2 unclassed) would 
take place in the first and sixth year, and 14 (11 classed and 3 
unclassed) in second, third, seventh, and eighth year. Therefore, the 
first year cost to the Government to review the certificate would be 
about $507.00 (11 classed and 2 unclassed vessels x $39.00). The 
Government would incur this cost again in the sixth year when the 
certificate is reissued. In years two, three, seven, and eight, the 
Government would incur a certificate review cost of about $546.00 (11 
classed and 3 unclassed vessels x $39.00) in each of these years.
    The Coast Guard would also examine the certificates of foreign-
flagged vessels that enter U.S. ports in polar waters as part of its 
routine Port State Control vessel boardings. Because this will take 
place during routine Coast Guard examinations and for issuing 
certificates of compliance, the time it takes to perform this task is 
minimal and as such we do not estimate a cost to the Government.
    Because this proposed rule would also enable a recognized 
classification society to issue the Polar Ship Certificate on behalf of 
the Coast Guard, the Coast Guard and a recognized classification 
society would enter into an MOA which delegates authority to the 
classification society and sets forth guidelines for cooperation 
between the Coast Guard and a classification society with respect to 
initial and subsequent inspections for certifications and periodic re-
inspections or examinations of vessels of the United States, as defined 
by 46 U.S.C. 2101 (46).
    Based on information from the Coast Guard's Office of Design and 
Engineering Standards, Coast Guard personnel with the average 
equivalence of a GS-15 would prepare the MOA for delivery to a 
classification society. Again, we used an average loaded hourly labor 
rate of $109 for a GS-15. We estimate it would take Government 
personnel about 6.25 hours to prepare and review the MOA. We estimate 
it would cost about $3 in postage for the Government to send the MOA to 
the classification society.
    We estimate the total cost incurred by the Government for the MOA 
to be about $681.25 plus $3 for postage, or a total cost of $684.25, 
undiscounted (6.25 hours x $109). Other than the postage cost, other 
costs incurred are

[[Page 83791]]

opportunity costs, since personnel would perform this function in the 
normal course of his or her duties.
    We estimate the total initial cost to the Government to be about 
$5,551.25 ($4,360 to create and review the certificate, $507.00 to 
review the certificates for 11 classed and 2 unclassed U.S. vessels, 
and $684.25 for the MOA). We estimate the total 10-year undiscounted 
cost to the Government to be about $8,242.25 ($5,551.25 in the initial 
year + $546.00 in the second, third, seventh and eighth years + $507.00 
in the sixth year). We estimate the 10-year present value, or 
discounted cost of the proposed rule to the Government, to be between 
$7,106.31 and $7,703.46, using 7 and 3 percent discount rates, 
respectively. We estimate the annualized cost to be between $1,011.78 
and $903.08, using 7 and 3 percent discount rates, respectively. See 
Table 3 below.

                           Table 3--Total Costs of the Proposed Rule to the Government
                   [10-Year period of analysis, 7 and 3 percent discount rates, 2016 dollars]
----------------------------------------------------------------------------------------------------------------
                                                                  Cost
                          Period                             (undiscounted)          7%                3%
----------------------------------------------------------------------------------------------------------------
1.........................................................  ................         $5,188.08         $5,389.56
2.........................................................  ................            476.90            514.66
3.........................................................  ................            445.70            499.67
4.........................................................  ................  ................  ................
5.........................................................  ................  ................  ................
6.........................................................  ................            337.84            424.60
7.........................................................  ................            340.02            443.95
8.........................................................  ................            317.78            431.02
9.........................................................  ................  ................  ................
10........................................................  ................  ................  ................
                                                           -----------------------------------------------------
    Total.................................................          8,242.25          7,106.31          7,703.46
----------------------------------------------------------------------------------------------------------------
Annualized................................................  ................          1,011.78            903.08
----------------------------------------------------------------------------------------------------------------
Note: Totals may not sum due to independent rounding.

Total Cost of the Proposed Rule to Industry and Government
    We estimate the total 10-year combined undiscounted cost of the 
proposed rule to industry and the Government to be about $17,582. We 
estimate the 10-year present value, or discounted cost of the proposed 
rule to industry and the Government, to be between $14,572 and $16,139 
at 7 and 3 percent discount rates, respectively. We estimate the 
annualized cost to be between $2,075 and $1,892 using the same discount 
rates. See Table 4 below.

                    Table 4--Summary of Costs of the Proposed Rule to Industry and Government
                                   [10-Year period of analysis, 2016 dollars]
----------------------------------------------------------------------------------------------------------------
              Type of cost                    Industry         Government        Total cost        Annualized
----------------------------------------------------------------------------------------------------------------
Undiscounted............................         $9,339.53         $8,242.25        $17,581.78  ................
7%......................................          7,465.49          7,106.31         14,571.80          2,074.70
3%......................................          8,435.28          7,703.46         16,138.74          1,891.95
----------------------------------------------------------------------------------------------------------------

Benefits
    The primary benefit of this proposed rule is to ensure that vessel 
owners and operators have a valid Polar Ship Certificate onboard the 
vessel, which shows compliance with applicable SOLAS regulations and 
requirements. Without a Polar Ship Certificate, a vessel would be 
subject to deficiencies, detention, denial of entry, or expulsion from 
the polar waters of other port States. Adherence to SOLAS would ensure 
vessels are capable of operating in polar waters, and the hazards and 
adverse weather conditions unique to polar waters. Furthermore, since 
the United States is a signatory to SOLAS and has a treaty obligation 
to ensure compliance with SOLAS requirements, this rulemaking would 
ensure that the United States is compliant with this SOLAS requirement.
Alternatives
    When creating this proposed rule, the Coast Guard considered 
several alternatives. The previous analysis represents the preferred 
alternative, which would ensure U.S. vessel owners and operators that 
operate vessels in polar waters would be compliant with the IMO Polar 
Code and SOLAS Convention. With the carriage of the Polar Ship 
Certificate onboard vessels, U.S. vessel owners and operators would be 
compliant with the SOLAS convention and applicable SOLAS operating 
requirements when transiting in polar waters.
Alternative 1: Preferred Alternative
    The analysis for this alternative appears in the ``Regulatory 
Analysis'' section of the preamble of this proposed rule.
Alternative 2: No Action Alternative
    In this alternative, the United States would take no action 
regarding the issuance of a Polar Ship Certificate and none of the 
costs itemized in the preferred alternative would be incurred. However, 
with this alternative, the United States would not be compliant with 
its international legal obligations as a signatory Government to the 
SOLAS Convention. Additionally, the lack of appropriate certifications 
would likely negatively impact U.S.-flagged vessels on international 
voyages in polar waters of other port States. United States vessels 
would potentially be subject to deficiencies, detentions, denial of 
entry, or expulsion from the polar waters of other port states due to 
the lack of proper certificates. Because the United States would not 
meet its international treaty obligations in this

[[Page 83792]]

alternative, the Coast Guard rejects this alternative.
Alternative 3: Large Scale Regulatory Implementation of the Polar Code
    In this alternative, the Coast Guard would implement the entire 
Polar Code in one regulatory effort. This would create or modify 
regulations throughout 46 and 33 CFR. The affected vessels, operators, 
and the Government would also incur the costs and impacts of the 
implementation of the entire Polar Code from a single regulatory 
effort. The Coast Guard rejected this alternative because it would 
greatly delay the issuance of the certificate beyond the January 1, 
2017 effective date of the Polar Code.
    By moving forward with the proposed alternative, U.S. vessel owners 
and operators who obtain a Polar Ship Certificate would be in 
compliance with the operating requirements in the SOLAS Convention. 
Therefore, they would be permitted to transit in polar waters of 
foreign nations as soon as possible after January 1, 2017, without 
adverse consequences such as denial of entry, expulsion, or possibly 
detainment.

B. Small Entities

    Under the Regulatory Flexibility Act (RFA), 5 U.S.C. 601-612, we 
have considered whether this proposed 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. In accordance with the Regulatory 
Flexibility Act (RFA) (5 U.S.C. 601-612), the Coast Guard prepared this 
threshold analysis that examines the impacts of the proposed rule on 
small entities.
    Based on our analysis of the entities affected by this proposed 
rule, all of the 41 affected U.S.-flagged vessels are owned by U.S. 
entities. To determine which entities are small, we compiled the data 
used in this analysis from publicly available and proprietary sources 
such as Manta and Cortera, and from the affected entities' Web sites. 
We used available owner's business information to identify the 
entities' primary line of business as coded by the North American 
Industry Classification System (NAICS) to find employee and revenue 
size information. We used this information to determine whether we 
should consider a business ``small'' by comparing it to the Small 
Business Administration's (SBA) ``Table of Small Business Size 
Standards Matched to North American Industry Classification System 
Codes.'' In some cases, SBA classifies businesses on a standard either 
based on the number of employees or annual revenues.\4\ We found that 
no small government jurisdictions or non-profits own any of the U.S. 
vessels affected by this proposed rule.
---------------------------------------------------------------------------

    \4\ Readers can access small entity information online at http://www.sba.gov/size/indextableofsize.html.
---------------------------------------------------------------------------

    We found that 19 of the 41 (46 percent) affected companies are 
small entities and the remaining companies are not small, based on 
SBA's size standards. We found 11 different NAICS codes represent the 
19 small entities with the NAICS code 488330, ``Navigational Services 
to Shipping'', representing 8 of the 19 small entities or 42 percent of 
them.
    We estimate the initial cost to each classed vessel owner and 
operator to be about $102.60 [$1,100/11 classed U.S vessel owners and 
operators that have their vessels classed by a class society + $28.60 
(11 classed vessels x $2.60)/11 (cost for crewmembers of 11 classed 
U.S. vessel owners and operators to post the certificate divided by the 
number of U.S. classed vessel owners and operators. Again, in the sixth 
year, these 11 classed U.S. vessel owners and operators would incur 
this cost)]. In the second, third, seventh, and eighth year, 11 classed 
vessel U.S. vessel owners and operators would incur this same cost. The 
eight U.S. vessel owners who own vessels that are not classed would 
only incur a cost of $2.60 per vessel in the each of the years 
described above or the first (two vessels) through the third year 
(three vessels in the second and third year each) and sixth (the same 
two vessels as in the first year) through the eighth year (the same 
three vessels as in the second and third year in the seventh and eighth 
year each) of the analysis period.
    Of the 19 small entities, 16 had annual revenue information (the 
remaining three small entities only had employee information). Of the 
16, 12 are classed, which means four (12/3 years for the phase-in 
period) would incur the $102.60 in the initial year and again in the 
second and third year and for reissuance of the certificate again in 
the sixth, seventh, and eighth year of the analysis period. The four 
that are not classed would only incur the cost of posting the 
certificate of $2.60 in each year described above (or essentially one 
in the first year and second year and again in the sixth and seventh 
year when the certificate is reissued and two in the third year and 
again in the eighth year when the certificate is reissued). All 16 
small entities or 100 percent would have an annual revenue impact of 
less than 1 percent in the initial year and in the second, third, 
sixth, seventh, and eighth year of the analysis period. Thus, the 
estimated impact on the affected entities is not a significant economic 
impact.
    Based on the preceding analysis, the Coast Guard certifies under 5 
U.S.C. 605(b) that this proposed rule would not have a significant 
economic impact on a substantial number of small entities. If you think 
that your business, organization, or governmental jurisdiction 
qualifies as a small entity and that this rule would have a significant 
economic impact on it, please submit a comment to the Docket Management 
Facility at the address under ADDRESSES. In your comment, explain why 
you think it qualifies and how and to what degree this proposed rule 
would economically affect it.

C. Assistance for Small Entities

    Under section 213(a) of the Small Business Regulatory Enforcement 
Fairness Act of 1996, Public Law 104-121, we want to assist small 
entities in understanding this proposed rule so that they can better 
evaluate its effects on them and participate in the rulemaking. If the 
proposed rule would affect your small business, organization, or 
governmental jurisdiction and you have questions concerning its 
provisions or options for compliance, please consult CDR Todd Howard 
using the contact information given in the FOR FURTHER INFORMATION 
CONTACT section of this proposed rule. 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

    The Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520) requires 
that the Coast Guard consider the impact of paperwork and other 
information collection burdens imposed on the

[[Page 83793]]

public. According to the 1995 amendments to the Paperwork Reduction 
Act, an agency may not collect or sponsor the collection of 
information, nor may it impose an information collection requirement 
unless it displays a currently valid OMB control number.
    This action contains proposed amendments to the existing 
information collection requirements previously approved under OMB 
Control Number 1625-0017.
    As defined in 5 CFR 1320.3(c), ``collection of information'' 
comprises reporting, recordkeeping, monitoring, posting, labeling, and 
other similar actions. The title and description of the information 
collections, a description of those who must collect the information, 
and an estimate of the total annual burden follow. The estimate covers 
the time for reviewing instructions, searching existing sources of 
data, gathering and maintaining the data needed, and completing and 
reviewing the collection.
    The summary of revised 1625-0017 collection follows:
    Title: Various International Agreement Safety Certificates.
    OMB Control Number: 1625-0017.
    Summary of the Collection of Information: The International 
Convention for the Safety of Life at Sea (SOLAS) is a product of the 
International Maritime Organization (IMO), an agency of the United 
Nations. SOLAS applies to all mechanically propelled cargo and tank 
vessels of 500 or more gross tons (GT), and to all mechanically 
propelled passenger vessels carrying more than 12 passengers that 
engage in international voyages. By IMO's definition, an 
``international voyage'' means a voyage from a country to which the 
Convention applies to a port outside the country, or vice versa. The 
United States, represented by the U.S. Coast Guard, was a major 
contributor and proponent of the 1974 Convention (SOLAS 74). President 
Carter's Executive Order 12234 (September 3, 1980), noted that SOLAS 74 
was signed at London on November 1, 1974, proclaimed by the President 
of the United States on January 28, 1980, and entered into force for 
the United States on May 25, 1980.
    SOLAS 1974 currently requires one or more of the following 
certificates to be carried on onboard certain passenger and cargo ships 
engaged in international voyages (46 CFR 2.01-25):

(1) Passenger Ship Safety Certificate and Record
(2) Cargo Ship Safety Construction Certificate
(3) Cargo Ship Safety Equipment Certificate and Record
(4) Cargo Ship Safety Radio Certificate (issued by Federal 
Communications Commission (FCC))
(5) Nuclear Passenger Ship Safety Certificate
(6) Nuclear Cargo Ship Safety Certificate
(7) Safety Management Certificate
(8) International Ship Security Certificate
(9) High-Speed Craft Safety Certificate

    The Coast Guard is adding the Polar Ship Certificate to the list of 
certificates that it can issue.
    Need for Information: In June of 2015, in resolutions MSC.384(94) 
and MEPC.264(68), the International Maritime Organization (IMO) adopted 
the International Code for Ships Operating in Polar Waters (Polar 
Code). The Polar Code raises the safety standards for commercial ships 
operating in or transiting through Arctic and Antarctic waters as well 
as enhances environmental protection for polar waters that include 
coastal communities in the U.S. Arctic. As a signatory to the 
International Convention for the Safety of Life at Sea (SOLAS), the 
United States has a treaty obligation to ensure compliance with SOLAS 
requirements.
    All mechanically propelled passenger vessels carrying more than 12 
passengers that engage in international voyages and all mechanically 
propelled cargo vessels of more than 500 gross tons that engage in 
international voyages within polar waters as defined by the Polar Code 
would be required to have the Polar Ship Certificate. The Polar Ship 
Certificate is valid for 5 years.
    The purpose of this rulemaking is to ensure that marine inspectors 
could issue certificates required by the Polar Code and that these 
certificates are being carried on all applicable vessels. Additionally, 
this rulemaking will add the Polar Ship Certificate to the list of 
certificates that classification societies could issue on behalf of the 
Coast Guard-in consideration of hazards and conditions unique to polar 
waters and a potential increase in traffic in Arctic and Antarctic 
waters. These additional hazards include navigation in ice and low 
temperatures, high latitude communications and navigation, remoteness 
from response resources, and limited hydrographic charting.
    We calculate the hour burden on an annual basis, which takes into 
account the reissuance of the certificate every fifth year. The 
estimated burden is 1/10 of an hour or 6 minutes. About 8 vessels (41 
total vessels/5 years) annually equates to 48 minutes or 0.8 hours for 
the hour burden. Or equivalently, 13 classed and unclassed U.S. vessels 
(11 classed and 2 unclassed) x 6 minutes in the first and sixth years + 
14 classed unclassed U.S vessels (11 classed and 3 unclassed) x 6 
minutes in the second, third, seventh and eighth year for a total of 
492 minutes divided by 82 vessels (13 in the first and sixth years and 
14 in the second, third, seventh, and eighth year of the analysis 
period. Recall, because vessel owners and operators would have 3 years 
to obtain a certificate, we divided the population essentially into 
thirds, 13 in the first and sixth years and 14 in the second, third, 
and seventh and eighth years).
    Proposed use of Information: The Polar Ship Certificate attests 
that the vessel has met applicable requirements of SOLAS to the 
satisfaction of the U.S. Government. Without the certificate, U.S.-
flagged vessels could be detained in foreign ports as being unsafe.
    Description of the Respondents: Respondents are the owner, agent, 
Master, operator, or person in charge of a U.S.-flagged vessel that 
transits in polar waters.
    Number of Respondents: The existing OMB-approved number of 
respondents is 413. This proposed rule would not change the number of 
respondents because the vessel population that would be affected is a 
subset of the existing number of respondents; this proposed rule is not 
adding new respondents to this collection.
    Frequency of Response: The existing OMB-approved number of 
responses is 912. This proposed rule would increase the number of 
responses by 14 annually (41 vessels/3-year renewal period) to 926.
    Burden of Response: The existing OMB-approved burden of response is 
6 minutes, or 0.1 hours, or the time it takes for a crewmember of a 
vessel to post the Polar Ship Certificate onboard the vessel.
    Estimate of Total Annual Burden: The existing OMB-approved total 
annual burden is 94 hours. This proposed rule would increase the burden 
hours annually by one hour. The estimated total annual burden would now 
be 95 hours annually.
    As required by 44 U.S.C. 3507(d), we will submit a copy of this 
proposed rule to OMB for its review of the COI.
    We ask for public comment on the proposed COI to help us determine 
how useful the information is; whether it can help us perform our 
functions better; whether it is readily available elsewhere; how 
accurate our estimate of the burden of collection is; how valid our 
methods for determining burden

[[Page 83794]]

are; how we can improve the quality, usefulness, and clarity of the 
information; and how we can minimize the burden of collection.
    If you submit comments on the COI, submit them both to OMB and to 
the Docket Management Facility where indicated under the ADDRESSES 
section of this proposed rule, by the date under the DATES section.
    You need not respond to a COI unless it displays a currently valid 
control number from OMB. Before the Coast Guard could enforce the COI 
requirements in this proposed rule, OMB would need to approve the Coast 
Guard's request to collect this information.

E. Federalism

    A rule has implications for federalism under Executive Order 13132 
(``Federalism'') if it has a substantial direct effect on 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 proposed rule under Executive 
Order 13132 and have determined that it is consistent with the 
fundamental federalism principles and preemption requirements as 
described in Executive Order 13132. Our analysis is explained below.
    It is well settled that States may not regulate in categories 
reserved for regulation by the Coast Guard. It is also well settled 
that Coast Guard regulations regarding vessel design, construction, 
alteration, repair, maintenance, operation, equipping, personnel 
qualification, and manning issued under the authority of 46 U.S.C. 
3306, 3703, 7101, and 8101 are within fields foreclosed from regulation 
by the States. See United States v. Locke, 529 U.S. 89, 90 (2000) 
(stating ``Congress has left no room for state regulation of these 
matters.''). This rule adds the Polar Ship Certificate to the list of 
certificates required, if applicable, by the SOLAS. Additionally, this 
rule adds this certificate to the list of SOLAS certificates that 
recognized classification societies are authorized to issue on behalf 
of the Coast Guard. The issuance of international certificates is 
within the sole purview of the Coast Guard to regulate pursuant to 46 
U.S.C. 3306, 3703, 7101, and 8101; Executive Order 12234; and the 
principles discussed in Locke. Thus, the regulations are consistent 
with the principles for federalism and preemption requirements in 
Executive Order 13132.
    While it is 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 
determination. Additionally, for rules with federalism implications and 
preemptive effect, Executive Order 13132 specifically directs agencies 
to consult with State and local governments during the rulemaking 
process. If you believe this rule has implications for federalism under 
Executive Order 13132, please contact the person listed in the FOR 
FURTHER INFORMATION section of this preamble.

F. Unfunded Mandates Reform Act

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

G. Taking of Private Property

    This proposed rule would not cause a taking of private property or 
otherwise have taking implications under Executive Order 12630 
(``Governmental Actions and Interference with Constitutionally 
Protected Property Rights'').

H. Civil Justice Reform

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

I. Protection of Children

    We have analyzed this proposed rule under Executive Order 13045 
(``Protection of Children from Environmental Health Risks and Safety 
Risks''). This rule is not an economically significant rule and would 
not create an environmental risk to health or risk to safety that might 
disproportionately affect children.

J. Indian Tribal Governments

    This proposed rule does not have tribal implications under 
Executive Order 13175 (``Consultation and Coordination with Indian 
Tribal Governments''), because it would not have a substantial direct 
effect on one or more 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 proposed rule under Executive Order 13211 
(``Actions Concerning Regulations That Significantly Affect Energy 
Supply, Distribution, or Use''). We have determined that it is not a 
``significant energy action'' under that order because it is not a 
``significant regulatory action'' under Executive Order 12866 and is 
not likely to have a significant adverse effect on the supply, 
distribution, or use of energy.

L. Technical Standards

    The National Technology Transfer and Advancement Act, codified as a 
note to 15 U.S.C. 272, 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 
would be inconsistent with applicable law or otherwise impractical. 
Voluntary consensus standards are technical standards (e.g., 
specifications of materials, performance, design, or operation; test 
methods; sampling procedures; and related management systems practices) 
that are developed or adopted by voluntary consensus standards bodies.
    This proposed rule does not use technical standards. Therefore, we 
did not consider the use of voluntary consensus standards.

M. Environment

    We have analyzed this proposed rule under Department of Homeland 
Security Management Directive 023-01 and Commandant Instruction 
M16475.lD, which guide the Coast Guard in complying with the National 
Environmental Policy Act of 1969, 42 U.S.C. 4321-4370f, and have made a 
preliminary determination that this action is one of a category of 
actions that do not individually or cumulatively have a significant 
effect on the human environment. A preliminary environmental analysis 
checklist supporting this determination is available in the docket 
where indicated under the ``Public Participation and Request for 
Comments'' section of this preamble. This proposed rule involves: (1) 
Adding a Polar Ship Certificate to the list of certificates required, 
if applicable, by SOLAS; and (2) adding the Polar Ship Certificate to 
the list of SOLAS certificates that recognized classification societies 
may issue on behalf of the Coast Guard. These

[[Page 83795]]

proposed actions constitute editorial or procedural changes concerning 
vessel documentation requirements (i.e., issuance of Polar Ship 
Certificates) and the delegation of authority for issuing such 
certificates. Thus, this proposed rule is likely to be categorically 
excluded under section 2.B.2 and figure 2-1, paragraphs (34)(a), (b), 
and (d) of the Instruction. This proposed rule would promote the Coast 
Guard's maritime safety and environmental protection missions. We seek 
any comments or information that may lead to the discovery of a 
significant environmental impact from this proposed rule.

List of Subjects

46 CFR Part 2

    Marine Safety, Reporting and recordkeeping requirements, Vessels.

46 CFR Part 8

    Administrative practice and procedure, Organization and functions 
(Government agencies), Reporting and recordkeeping requirements, 
Vessels.

    For the reasons discussed in the preamble, the Coast Guard proposes 
to amend 46 CFR parts 2 and 8 as follows:

Title 46--Shipping

PART 2--VESSEL INSPECTIONS

0
1. The authority citation for 46 CFR part 2 continues to read as 
follows:

    Authority:  Sec. 622, Pub. L. 111-281; 33 U.S.C. 1903; 43 U.S.C. 
1333; 46 U.S.C. 2103, 2110, 3306, 3703; E.O. 12234, 45 FR 58801, 3 
CFR, 1980 Comp., p. 277, sec. 1-105; Department of Homeland Security 
Delegation No. 0170.1(II)(77), (90), (92)(a), (92)(b).


Sec.  2.01-6  [Amended]

0
2. In Sec.  2.01-6(a)(1), after the words ``passengers in U.S. ports'' 
and before the words ``holds a valid'', remove the word ``and''; and 
after the text ``Passenger Ship Safety Certificate'', add the text ``, 
and, if applicable, holds a valid Polar Ship Certificate''.
0
3. Amend Sec.  2.01-25 by adding paragraphs (a)(1)(x) and (a)(2)(x) to 
read as follows:


Sec.  2.01-25  International Convention for Safety of Life at Sea, 
1974.

    (a) * * *
    (1) * * *
    (x) Polar Ship Certificate.
    (2) * * *
    (x) Polar Ship Certificate.
* * * * *

PART 8--VESSEL INSPECTION ALTERNATIVES

0
4. The authority citation for 46 CFR part 8 continues to read as 
follows:

    Authority:  33 U.S.C. 1903, 1904, 3803 and 3821; 46 U.S.C. 3103, 
3306, 3316, and 3703; Department of Homeland Security Delegation No. 
0170.1 and Aug. 8, 2011 Delegation of Authority, Anti-Fouling 
Systems.

0
5. Amend Sec.  8.320 as follows:
0
a. In paragraph (b)(13), remove the word ``and'';
0
b. In paragraph (b)(14), remove the text ``.''; and add, in its place, 
the text ``; and''; and
0
c. Add new paragraph (b)(15) to read as follows:


Sec.  8.320  Classification society authorization to issue 
international certificates.

* * * * *
    (b) * * *
    (15) Polar Ship Certificate.
* * * * *

    Dated: November 16, 2016.
F.J. Sturm,
Acting Director, Commercial Regulations and Standards, U.S. Coast 
Guard.
[FR Doc. 2016-27989 Filed 11-21-16; 8:45 am]
 BILLING CODE 9110-04-P