Adding the Polar Ship Certificate to the List of SOLAS Certificates and Certificates Issued by Recognized Classification Societies, 44108-44118 [2017-20155]
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Federal Register / Vol. 82, No. 182 / Thursday, September 21, 2017 / Rules and Regulations
responsibilities among the various
levels of government.
States. This action is not a ‘‘major rule’’
as defined by 5 U.S.C. 804(2).
DEPARTMENT OF HOMELAND
SECURITY
F. Executive Order 13175: Consultation
and Coordination With Indian Tribal
Governments
List of Subjects in 40 CFR Part 60
Coast Guard
This action does not have tribal
implications as specified in Executive
Order 13175. This action provides
performance criteria and QA test
procedures for assessing the
acceptability of HCl CEMS performance
and data quality. Thus, Executive Order
13175 does not apply to this action.
G. Executive Order 13045: Protection of
Children From Environmental Health
Risks and Safety Risks
The EPA interprets Executive Order
13045 as applying only to those
regulatory actions that concern
environmental health or safety risks that
the EPA has reason to believe may
disproportionately affect children, per
the definition of ‘‘covered regulatory
action’’ in section 2–202 of the
Executive Order. This action is not
subject to Executive Order 13045
because it does not concern an
environmental health risk or safety risk.
H. Executive Order 13211: Actions
Concerning Regulations That
Significantly Affect Energy Supply,
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I. National Technology Transfer and
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J. Executive Order 12898: Federal
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The EPA believes that this action is
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does not establish an environmental
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correction to a previously promulgated
regulatory action and does not have any
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Major Comments and Responses section
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K. Congressional Review Act (CRA)
This action is subject to the CRA, and
the EPA will submit a rule report to
each House of the Congress and to the
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Jkt 241001
For the reasons stated in the
preamble, title 40, chapter I of the Code
of Federal Regulations is amended as
follows:
PART 60—STANDARDS OF
PERFORMANCE FOR NEW
STATIONARY SOURCES
1. The authority citation for part 60
continues to read as follows:
■
Authority: 42 U.S.C. 7401 et seq.
2. Amend appendix F to part 60 under
‘‘Procedure 6’’ by revising sections
‘‘4.1.5’’, ‘‘4.1.5.1’’ and ‘‘5.2.4.2’’ to read
as follows:
■
*
*
*
*
*
Procedure 6. Quality Assurance
Requirements for Gaseous Hydrogen
Chloride (HCl) Continuous Emission
Monitoring Systems Used for Compliance
Determination at Stationary Sources
*
This rulemaking does not involve
technical standards.
16:39 Sep 20, 2017
Dated: September 13, 2017.
E. Scott Pruitt,
Administrator.
Appendix F to Part 60—Quality
Assurance Procedures
This action is not subject to Executive
Order 13211, because it is not a
significant regulatory action under
Executive Order 12866.
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Environmental protection,
Administrative practice and procedure,
Air pollution control, Continuous
emission monitoring systems, Hydrogen
chloride, Performance specifications,
Test methods and procedures.
*
*
*
*
4.1.5 Additional Quality Assurance for
Data above Span. This procedure must be
used when required by an applicable
regulation and may be used when significant
data above span are being collected.
Furthermore, the terms of this procedure do
not apply to the extent that alternate terms
are otherwise specified in an applicable rule
or permit.
4.1.5.1 Any time the average measured
concentration of HCl exceeds 150 percent of
the span value for two consecutive one-hour
averages, conduct the following ‘above span’
CEMS response check.
*
*
*
*
*
5.2.4.2 Calculate results as described in
section 6.4. To determine CEMS accuracy,
you must calculate the dynamic spiking error
(DSE) for each of the two upscale audit gases
using Equation A5 in appendix A to PS–18
and Equation 6–3 in section 6.4 of Procedure
6 in appendix B to this part.
*
*
*
*
*
[FR Doc. 2017–20172 Filed 9–20–17; 8:45 am]
BILLING CODE 6560–50–P
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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.
Final rule.
AGENCY:
ACTION:
This final rule adds the Polar
Ship Certificate to a list of certificates
that certain U.S. and foreign-flag ships
will need to carry on board if they
engage in international voyages in polar
waters. This rule also enables the Coast
Guard to authorize recognized
classification societies to issue the Polar
Ship Certificate on the Coast Guard’s
behalf. We are taking this action because
the International Convention for Safety
of Life at Sea (SOLAS) has been
amended to require certain ships
operating in Arctic or Antarctic waters
to have a Polar Ship Certificate. This
rule will help ensure that U.S.-flagged
ships that need this certificate—
commercial cargo ships greater than 500
gross tonnage and passenger ships
carrying more than 12 passengers, that
operate in polar waters as defined by
SOLAS chapter XIV while engaged in
international voyages—will be able to
obtain it in a timely manner.
DATES: This final rule is effective
October 23, 2017.
ADDRESSES: To view comments and
material submitted in response to our
proposed rule, as well as documents
mentioned in this final rule preamble as
being available in the docket, go to
https://www.regulations.gov, type USCG–
2016–0880 in the ‘‘SEARCH’’ box and
click ‘‘SEARCH.’’ Then click on Open
Docket Folder on the line associated
with this rule.
FOR FURTHER INFORMATION CONTACT: For
information about this document call or
email Lieutenant Chris Rabalais,
Systems Engineering Division (CG–
ENG–3), Coast Guard; telephone 202–
372–1485, email
Christopher.P.Rabalais@uscg.mil.
SUPPLEMENTARY INFORMATION:
SUMMARY:
Table of Contents for Preamble
I. Abbreviations
II. Regulatory History
III. Basis, Purpose, and Background
IV. Discussion of Comments and Changes
V. Regulatory Analyses
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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
2.01–6, 2.01–25, and 8.320. We received
two written submissions in response to
the NPRM.
I. Abbreviations
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BLS Bureau of Labor Statistics
CFR Code of Federal Regulations
DHS Department of Homeland Security
E.O. Executive order
FR Federal Register
GT ITC Gross Tonnage International
Tonnage Convention
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
OCMI Officer in Charge, Marine Inspection
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
§ Section
U.S.C. United States Code
II. Regulatory History
Coast Guard regulations for inspecting
and certificating vessels are located in
subpart 2.01 of title 46 of the Code of
Federal Regulations (46 CFR subpart
2.01). Section 2.01–6 in that subpart
contains provisions for issuing
certificates of compliance to foreignflagged vessels. Section 2.01–25
identifies certificates required by the
International Convention for Safety of
Life at Sea (SOLAS) on certain vessels
engaged in international voyages. This
section also lists SOLAS certificates the
Coast Guard issues to vessels that meet
applicable SOLAS requirements.
Part 8 of 46 CFR contains Coast Guard
regulations for vessel inspection
alternatives. Specifically, 46 CFR 8.320
identifies international certificates that
the Coast Guard may authorize
recognized classification societies to
issue on the Coast Guard’s behalf.
On November 22, 2016, we published
a notice of proposed rulemaking
(NPRM) in the Federal Register (81 FR
83786) entitled, ‘‘Adding the Polar Ship
Certificate to the List of SOLAS
Certificates and Certificates Issued by
Recognized Classification Societies.’’
That NPRM proposed to amend 46 CFR
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III. Basis, Purpose, and Background
In 2014 and 2015, the International
Maritime Organization (IMO) adopted
the International Code for Ships
Operating in Polar Waters (Polar Code)
and added its requirements to two
existing IMO Conventions—SOLAS, and
the International Convention for the
Prevention of Pollution from Ships
(MARPOL)—in consideration of hazards
and conditions unique to 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.
Copies of the IMO Maritime Safety
Committee and Marine Environment
Protection Committee resolutions
discussed in this paragraph are available
in the docket.
The Polar Code took effect on January
1, 2017, and applies to all vessels
constructed on or after that date.
Beginning on January 1, 2018, the Polar
Code will also start applying to existing
vessels, based upon the date their
SOLAS Certificates were issued.
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. As a signatory
to this convention, under Article I of
SOLAS, the United States has an
obligation to ensure compliance with
SOLAS requirements.
This rule creates a certificate that
newly constructed U.S.-flagged vessels,
certified in accordance with SOLAS
chapter I, will need in order to travel
internationally within polar waters,
beginning January 1, 2017. Existing
vessels will need the same certificate by
their first intermediate or renewal
survey after January 1, 2018. U.S.flagged vessels that do not carry a Polar
Ship Certificate 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 required by SOLAS in 46
CFR part 2. Also, this rule allows the
Coast Guard to authorize recognized
classification societies to issue the Polar
Ship Certificate on the Coast Guard’s
behalf under 46 CFR 8.320.
Foreign-flagged vessels, certified in
accordance with SOLAS chapter I and
operating in polar waters, are also
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required to carry the Polar Ship
Certificate. However, their certificates
will be issued by the vessel’s flag state,
or a person or an organization
authorized by that flag state to issue the
certificate. The Coast Guard will
examine foreign-flagged vessels during
Port State Control boardings to ensure
that they are properly certificated.
The Coast Guard is authorized to
regulate this subject matter under 33
U.S.C. 1231; 46 U.S.C. 2103, 3306, 3316,
and 3703; Department of Homeland
Security Delegation No. 0170.1, and
Executive Order 12234, ‘‘Enforcement of
the Convention for the Safety of Life at
Sea’’ (45 FR 58801, Sept. 5, 1980).
IV. Discussion of Comments and
Changes
We received two written submissions
commenting on the proposed rule
published on November 22, 2016 (81 FR
83786). The comments raised concerns
about four specific items, which we
address in this section of the preamble.
Applicability of the SOLAS Polar Code
Provisions to U.S.-Flagged Vessels on
Domestic Voyages
One of the comments noted concerns
about wording in the proposed rule that
limits requirements to vessels engaged
in international voyages. On this point,
the comment also cited a December
2016 Coast Guard Polar Code policy
letter (CG–CVC Policy Letter Letter 16–
06, available in the docket), which states
that U.S.-flag vessels operating on
domestic voyages to ports or places in
the U.S. Arctic do not need to meet the
provisions of SOLAS chapter XIV,1 but
must instead comply with applicable
domestic requirements. The commenter
concluded that this Coast Guard
interpretation, reflected in the proposed
rule, does not meet the intent of the
IMO in implementation of the Polar
Code.
We decline to expand the scope of the
proposed rule. The proposed rule is
consistent with our view that the
SOLAS convention’s authority is
generally limited to vessels traveling
internationally. Based on the intent of
the SOLAS convention to ensure safe
international shipping, and SOLAS
certification as part of voluntary U.S.
compliance programs, the United States
will not require U.S.-flagged vessels
operating on domestic routes through
Arctic waters to obtain a Polar Ship
Certificate.
1 SOLAS chapter XIV implements Part I–A, safety
provisions, of the Polar Code.
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Applicability of the SOLAS Polar Code
Provisions in Antarctica
A commenter raised concerns about
the lack of clarity regarding the
applicability of the Polar Code in
Antarctica, given that these waters are
not under the jurisdiction of the United
States or any other nation. The Polar
Code applies to ships engaged in
international voyages that are also
operating in polar waters. Polar waters
include both the Arctic and Antarctic
waters. Therefore, a U.S.-flagged vessel
that is certified in accordance with
SOLAS chapter I and is on an
international voyage must have a Polar
Ship Certificate if it enters Antarctic
waters.
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Time Estimates for Issuance of a Polar
Ship Certificate
The same commenter also questioned
our burden hour estimate for the time
required by classification societies to
issue the Polar Ship Certificate. The
commenter said that the estimate did
not include time required for technical
approvals or verification of compliance
with provisions of the Polar Code.
Cost estimates for verifications of
compliance with the Polar Code were
not included in the regulatory analysis
because these hours are outside the
scope of this rulemaking. This
rulemaking addresses the issuance of a
Polar Ship Certificate, not compliance
with substantive safety and
environmental provisions or surveys to
evaluate compliance with those
provisions.
In our NPRM we used an estimate of
40 hours, which we obtained from a
classification society and which
includes administrative review,
stamping the documents, and data
input. The commenter, who also
represents a classification society, gives
a minimum time of 8 to 12 hours for
these tasks. We have retained the more
conservative 40-hour estimate.
The other hours the commenter
discusses, 120 to 230 hours to complete
approval work for new construction,
risk assessments, and surveys, represent
compliance aspects of the safety and
environmental provisions of the Polar
Code. Again, these compliance aspects
are beyond the scope of this rulemaking.
Entry into Force of the SOLAS Polar
Code Requirement for Certification
One commenter stated that the
language we used in the NPRM implied
that all U.S.-flagged vessels subject to
the Polar Code will be required to carry
a Polar Ship Certificate by January 1,
2017.
The January 1, 2017 date applies to
vessels built on or after that date.
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Vessels built before that date need not
comply until after January 1, 2018.
Implementation for existing vessels is
based on the first renewal or
intermediate survey conducted after
January 1, 2018. (See SOLAS chapter
XIV, Reg. 2.2.) For the purposes of the
Polar Code, the Cargo Ship Safety
Construction or Passenger Ship Safety
Certificate is typically the survey used
to determine the implementation date
for vessels built before January 1, 2017.
We have made no changes from the
proposed regulatory text. The regulatory
text in this final rule is the same as we
proposed in the NPRM.
V. Regulatory Analyses
We developed this 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 costs and benefits, reducing
costs, harmonizing rules, and promoting
flexibility. Executive Order 13771
(Reducing Regulation and Controlling
Regulatory Costs) directs agencies to
reduce regulation and control regulatory
costs and provides that ‘‘for every one
new regulation issued, at least two prior
regulations be identified for elimination,
and that the cost of planned regulations
be prudently managed and controlled
through a budgeting process.’’
The Office of Management and Budget
(OMB) has not designated this final rule
a significant regulatory action under
section 3(f) of Executive Order 12866.
Accordingly, OMB has not reviewed it.
Because this rule is not a significant
regulatory action, this rule is exempt
from the requirements of Executive
Order 13771. See the OMB
Memorandum titled Guidance
Implementing Executive Order 13771,
Titled ‘‘Reducing Regulation and
Controlling Regulatory Costs’’ (April 5,
2017).
Our regulatory analysis (RA) follows.
We only received one comment on
our estimates in the regulatory analysis
of the proposed rule. That comment
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related to the number of hours used for
the creation and issuance of the
certificate. However, the commenter
also mentioned some hour burdens that
are not associated with the creation,
review, and issuance of the Polar Ship
certificate, and are beyond the scope of
this rulemaking.
In preamble section IV, Discussion of
Comments and Changes, we discuss this
public comment regarding our estimate
of the time it takes a recognized
classification society to create a polar
certificate—which includes reviewing,
printing, stamping of the documents,
and data input—and explain why we
retained a more conservative estimate
used in the NPRM as our primary
estimate based on industry input. And
as reflected in that discussion, we adopt
the costs and benefits in the regulatory
analysis of the proposed rule for this
final rule.
This final rule adds a new Polar Ship
Certificate to the list of existing SOLAS
certificates that SOLAS requires to be
carried on board 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) 2 or
passenger ships carrying more than 12
passengers on international voyages
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.3 The
United States is signatory to the SOLAS
convention and has an obligation to
ensure that all U.S.-flagged vessels
certified in accordance with SOLAS
chapter I that engage on international
voyages carry a Polar Ship Certificate
when operating in polar waters. Owners
and operators of foreign-flagged vessels
subject to SOLAS will have their Polar
Ship Certificates issued by the ship’s
flag state or a person or an organization
authorized by that flag state to issue the
certificate.
This rule amends 46 CFR part 2,
‘‘Vessel Inspections,’’ subpart 2.01,
‘‘Inspecting and Certificating of
Vessels.’’ Specifically, we are adding the
Polar Ship Certificate to § 2.01–6,
‘‘Certificates issued to foreign vessels,’’
and § 2.01–25, ‘‘International
Convention for Safety of Life at Sea.’’
2 This 500 GT ITC threshold comes from an
exception in SOLAS Chapter 1 for ships that need
to be certified in accordance with that chapter.
Regulation 3 of Chapter I has an exception for cargo
ships of less than 500 GT ITC.
3 See Resolution MSC.385(94) and paragraph 7 of
the Polar Code preamble in MSC.385(94)’s
appendix. This resolution is available in the docket.
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This rule also amends 46 CFR part 8,
‘‘Vessel Inspection Alternatives,’’
subpart C, ‘‘International Convention
Certificate Issuance,’’ § 8.320,
‘‘Classification Society Authorization to
Issue International Certificates,’’ at
paragraph (b) to include the Polar Ship
Certificate as one of the certificates that
the Coast Guard may authorize a
recognized classification society to issue
on behalf of the Coast Guard.
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Affected Population
Since the Coast Guard published the
NPRM, two vessels in our original
population of 41 have been re-flagged
and are no longer U.S.-flagged vessels,
and one vessel is no longer in service.
In addition, this rule does not apply to
domestic vessels that operate in polar
waters if these vessels do not engage in
international voyages. This was not
distinguished in the analysis for the
NPRM. Based on this factor and further
analysis, the population of affected
vessels is now estimated to be 23. This
is the number of U.S.-flagged vessels
that make international voyages 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. This estimate is based
on Coast Guard field data and Coast
Guard databases such as the Marine
Information for Safety and Law
Enforcement, the Ship Arrival
Notification System, and data from the
Navigation Data Center.
Of the 23 U.S.-flagged vessels that
have transited polar waters during the 5year 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
granted authority from the Coast Guard
under provisions of 46 CFR 8.320(a) will
issue the Polar Ship Certificate on
behalf of the Coast Guard for U.S.flagged vessels that are classed.
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 that only one
classification society will do so for the
small number of classed U.S.-flagged
vessels.
Cost Analysis
Classification Societies Cost
This rule amends 46 CFR 8.320(b) to
enable recognized classification
societies to request authorization under
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§ 8.240(b), to issue the Polar Ship
Certificate on behalf of the Coast Guard.
As reflected in 46 CFR 2.01–25, vessels
that are not classed can apply to the
local Coast Guard Officer in Charge,
Marine Inspection (OCMI) to request the
Coast Guard to 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. In
this situation, the MOA 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 will take a
recognized classification society’s
classification and documentation
specialist 1 hour to review the MOA.
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 2016, so we used the ‘‘Business
Operations Specialist, All Other’’
(Occupation Code 13–1199) category for
Water Transportation with a North
American Industry Classification
System (NAICS) Code of 483000 as a
representative occupation. The mean
hourly wage rate for this occupation is
$37.55. Because this is an unloaded
hourly wage rate, we added a load factor
to obtain a loaded hourly wage rate. We
used BLS’ May 2016 Employer Cost for
Employee Compensation databases to
calculate and apply a load factor of 1.52
to obtain a loaded hourly labor rate of
about $57.08 for this occupation.4 We
4 Information can be viewed at https://
www.bls.gov/oes/2016/may/naics3_483000.htm.
Once on this page scroll down to review the wage
rate for 13–1199 Business Operations Specialists,
All Other, with a mean hourly wage of $37.55.
Please see https://www.bls.gov/oes/2016/may/
oes231011.htm, for the mean hourly wage rate for
a lawyer. 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
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44111
also estimate it will take a recognized
classification society attorney 1 hour to
review the MOA for legal sufficiency.
Using the BLS’ Occupational
Employment Statistics National
Occupational Employment and Wage
Estimates for May 2016, we used the
category ‘‘Lawyers’’ (Occupation Code
23–1011). The mean hourly wage for
this occupation is $67.25. Because this
is an unloaded hourly wage rate, we
apply the same load factor of 1.52 as
derived above to obtain a loaded hourly
wage rate of about $102.22.
We estimate the one-time cost for the
classification society to review the MOA
to be about $162.30, undiscounted. This
cost includes a $3 postage cost to mail
the signed MOA to the Coast Guard for
approval and signature [($57.08 × 1
hour) + ($102.22 × 1 hour) + $3 for
postage].
Based on a recognized classification
society estimate, it will take
approximately 40 hours to create and
review the Polar Ship Certificate once
the MOA is approved. We received a
lower estimate of 8-to-12 hours from a
commenter for work related to this task,
but we are maintaining our more
conservative 40-hour estimate we
obtained from an industry source to
specifically address hours needed to
create and review 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 $2,283.20 (40
hours 5 × $57.08/hour), undiscounted.
Because 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 rule to a recognized
classification society to be about
$2,445.50 ($2,283.20 document
development cost + $162.30 MOA
review cost). See Table 1.
(Series IDs, CMU2010000520000D and
CMU2020000520000D for all workers using the
multi-screen data search). Using 2016 Q4 data for
the cost of compensation and cost per hour worked,
we divide the total compensation amount of $28.15
by the wage and salary amount of $18.53 to obtain
the load factor of about 1.52, rounded. See the
following Web sites, https://beta.bls.gov/
dataQuery/find?fq=survey:[oe]&s=popularity:D and
https://data.bls.gov/cgi-bin/dsrv?cm Multiplying
1.52 by $37.55, we obtain a loaded hourly wage rate
of about $57.08.
5 Based on an estimate provided by a recognized
classification society to the U.S. Coast Guard.
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Vessel Cost
There are two cost elements
associated with vessel owners and
operators: The fee a recognized
classification society will 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 22 percent,
or about 5 out of the 23 U.S.-flagged
vessels, are not classed by a recognized
classification society.
The requirement for the 23 existing
ships is to have the certificate by their
first renewal or intermediate exam after
January 1, 2018. This is a phased-in
approach that will likely phase in the
issuing of the certificates over a period
of about 3 years. Therefore, the Coast
Guard would issue the Polar Ship
Certificate to vessel owners and
operators of those 5 unclassed vessels as
part of its routine inspection regime. A
recognized classification society will
issue the Polar Ship Certificate to the
remaining 18 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 will issue a new Polar Ship
Certificate to vessel owners and
operators, depending upon whether a
vessel is classed or not classed. Based
on information from a recognized
classification society, the cost to issue a
Polar Ship Certificate is $100 if a
recognized classification society issues
the certificate (for 18 classed, U.S.flagged vessels). The cost of the reissued
Polar Ship Certificate is also $100;
therefore, it will 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
7 U.S.-flagged vessels owners and
operators (6 classed and 1 unclassed)
will obtain a certificate in the first year
and 8 (6 classed and 2 unclassed) U.S.flagged vessel owners and operators will
obtain one in the second and third
years. For reissuance, again, we assume
the same 7 vessel owners and operators
will obtain a certificate in the sixth year
and the same 8 vessel owners and
operators will obtain one in the seventh
and eighth years each; we divided the
population accordingly to obtain even
values.
Vessel owners and operators will 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
entitled ‘‘Various International
Agreement Safety Certificates,’’ (OMB
control number 1625–0017), a
crewmember equivalent to a U.S. Coast
Guard cadet will post the Polar Ship
Certificate on board a vessel. Using the
Coast Guard’s Commandant Instruction
7310.1R for loaded hourly wages
outside of the Government, the hourly
wage rate of a person outside of the
Government equivalent to a cadet is
$29.00. 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 $2.90 per vessel
($29.00 × 0.1 hours). To post the Polar
Ship Certificate, we estimate the total
initial cost of the final rule to 7 U.S.flagged vessel owners and operators to
be about $20.30 (6 U.S. classed and 1
unclassed vessel × 0.1 hours × $29.00),
regardless of whether a recognized
classification society or the Coast Guard
issues the Polar Ship Certificate.
Owners and operators of U.S.-flagged
vessels will incur this cost again in the
sixth year because a crewmember will
review and post the reissued certificate
for the same seven vessels.
We estimate the initial cost of the rule
to vessel owners and operators to be
about $620.30 in the first year [(6
classed vessels × $100) + (6 classed
vessels × $2.90 to post the certificate) +
1 unclassed vessel × $2.90 to post the
certificate)].6 The cost for the renewed
certificate in the sixth year (or 5 years
after the initial year) will also be
$620.30 for these seven vessels. In the
second, third, seventh, and eighth years,
we estimate the cost for eight U.S.flagged vessel owners and operators to
obtain and post a Polar Ship Certificate
to be about $623.20 [(6 classed vessels
× $100) + (6 classed vessels × $2.90 to
post the certificate) + (2 unclassed
vessels in each of these years × $2.90
each year to post the certificate)]. See
Table 1.
We estimate the total 10-year
undiscounted cost to be $3,733.40 for all
23 U.S.-flagged vessel owners and
operators ($620.30 in the first and sixth
year + $623.20 in the second, third,
seventh, and eighth years of the analysis
period). Table 1 shows the cost to both
class society and vessel owners and
operators for this rule.
TABLE 1—SUMMARY OF CLASSIFICATION SOCIETY AND VESSEL OWNERS AND OPERATORS COSTS
[Undiscounted]
Unit cost
Labor rate
Classification Society Certificate
Creation.
Classification Society Review of
MOA.
........................
$57.08 ............................................
40
........................
$102.22 (Attorney) .........................
1
$100
$57.08 (Business Operations Specialist).
........................................................
1
Certificate Fee Charged to Vessel
Owners and Operators.
asabaliauskas on DSKBBXCHB2PROD with RULES
Cost item
........................
Vessel Crewmember Reviews and
Posts Certificate.
........................
$27 .................................................
0.1
6 Vessel owners and operators for ships built on
or after January 1, 2017, have been required to carry
the Polar Ship Certificate before engaging in
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Hours
international voyages in polar waters. We have not
identified any vessels that would be affected by this
rule that were built after this date and we do not
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Total cost
$2,283.20 (incurred in year 1).
$162.30 (incurred in year 1 and includes $3 postage).
$600 (incurred in years 1 through
3 and 6 through 8); $1,800 for
18 classed vessels in years 1
through 3 and 6 through 8.
$2.90 (incurred in years 1 through
3 and 6 through 8); $20.30 in
years 1 and 6 and $23.20 in
years 2, 3, 7, and 8.
have data to project how many newly built vessels
will be affected or required to carry a Polar Ship
Certificate in the future.
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44113
TABLE 1—SUMMARY OF CLASSIFICATION SOCIETY AND VESSEL OWNERS AND OPERATORS COSTS—Continued
[Undiscounted]
Cost item
Unit cost
Total Undiscounted Cost (Initial year).
Labor rate
Hours
........................
........................................................
........................
We estimate the initial undiscounted
cost of the final rule to a recognized
classification society and to 7 (6 classed
and 1 unclassed vessels) U.S.-flagged
vessel owners and operators to be about
$3,065.80 ($2,283.20 for the
classification society to create the
certificate + $162.30 for the
classification society to review the MOA
+ $600 fee charged by a classification
society to issue the certificate to the 6
classed vessel owners and operators +
$20.30 for crewmembers of the seven
classed and unclassed vessels to post
the certificate). We estimate the total 10year undiscounted cost of the rule to
industry to be about $6,178.90
($3,065.80 in the first year + $623.20 in
the second, third, seventh, and, eighth
Total cost
$3,065.80
years + $620.30 in the sixth year). See
Table 2.
We estimate the 10-year present
value—or discounted cost—of the rule
to industry to be between $5,082.42 and
$5,652.42 at 7- and 3-percent discount
rates, respectively. We estimate the
annualized cost to be between $723.62
and $662.64 at 7- and 3- percent
discount rates, respectively. See Table 2.
TABLE 2—TOTAL COSTS OF THE RULE TO INDUSTRY
[10-Year period of analysis, 7 and 3 percent discount rates, 2017 dollars]
Period
Cost
(undiscounted)
7%
3%
1 ...................................................................................................................................................
2 ...................................................................................................................................................
3 ...................................................................................................................................................
4 ...................................................................................................................................................
5 ...................................................................................................................................................
6 ...................................................................................................................................................
7 ...................................................................................................................................................
8 ...................................................................................................................................................
9 ...................................................................................................................................................
10 .................................................................................................................................................
$3,065.80
623.20
623.20
........................
........................
620.30
623.20
623.20
........................
........................
$2,865.23
544.33
508.72
........................
........................
413.33
388.10
362.71
........................
........................
$2,976.50
587.43
570.32
........................
........................
519.49
506.72
491.96
........................
........................
Total ......................................................................................................................................
Annualized .....................................................................................................................
6178.90
........................
5,082.42
723.62
5,652.42
662.64
Note: Totals may not sum due to independent rounding.
asabaliauskas on DSKBBXCHB2PROD with RULES
Government Costs
There are three cost elements
associated with this rule for the Coast
Guard: (1) A one-time cost of creating
the Polar Ship Certificate and issuing it
(in the initial year, second, third, sixth,
seventh, and eighth years) to a vessel
owner or operator if a vessel is not
classed by a class society; (2) reviewing
the certificate onboard a vessel as part
of the Coast Guard’s routine inspection
regime; and (3) a one-time cost of
creating and sending the delegation
letter or MOA to a classification society
for signature.
For the 5 U.S.-flagged vessels that are
not classed by a recognized
classification society, the Coast Guard
will issue the Polar Ship Certificate in
the first through the third years and the
sixth through the eighth years. Because
of the phase-in period, we divided the
5 vessels evenly over 3 years. We
determined that 1 vessel will receive its
certificate in the first and sixth years,
and 2 vessels will receive it in the
second, third, seventh, and eighth year,
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with certificate reissuance occurring
during the sixth, seventh, and eighth
years. The two vessels in the second and
third years are the same two vessels in
the seventh and eighth years.
Based on information from 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. Using the
Commandant Instruction 7310.1R, we
used an average loaded hourly wage rate
of $116.00. We estimate the one-time
cost for the Coast Guard to create the
Polar Ship Certificate to be about
$4,640.00 (40 hours × $116.00 hour).
Based on an OMB-approved
collection of information (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
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Sfmt 4700
during its normal inspection regime).
Using the Coast Guard’s Commandant
Instruction 7310.1R for loaded hourly
wages, an O–3 has a loaded hourly wage
rate of $79.00. Therefore, we estimate
the total undiscounted cost to the
Government to review the Polar Ship
Certificate for all 23 affected vessels to
be about $908.50 ($79.00× 23 vessels ×
0.5 hours), or about $39.50 per vessel.
We use the same methodology noted
earlier in this preamble with owners
and operators obtaining certificates over
a 3-year period (7 in the first and sixth
year and 8 in the second, third, seventh
and eighth year), with the sixth, seventh
and eighth years being the renewal
years. Again, 7 inspections (6 classed
and 1 unclassed) will take place in the
first and sixth year, and 8 (6 classed and
2 unclassed) in the second, third,
seventh, and eighth year. We estimate
the first year cost to the Government to
review the certificate will be about
$276.50 (6 classed and 1 unclassed
vessels × $39.50). The Government will
incur this cost again in the sixth year
when the certificate is reissued. In years
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two, three, seven, and eight, the
Government will incur a certificate
review cost of about $316.00 (6 classed
and 2 unclassed vessels × $39.50) in
each of these years.
The Coast Guard will 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. This will take place
during routine Coast Guard
examinations and for issuing certificates
of compliance and is a part of the
inspection process. Therefore, we do not
estimate a cost to the Government.
This final rule will also enable a
recognized classification society to issue
the Polar Ship Certificate on behalf of
the Coast Guard. As a result, the Coast
Guard and a recognized classification
society will enter into an MOA that
delegates authority to the classification
society. This sets forth guidelines for
cooperation between the Coast Guard
and a classification society with respect
to initial and subsequent inspections for
certifications and periodic reinspections or examinations of vessels
of the United States, as defined by 46
U.S.C. 116.
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 will prepare the MOA for
delivery to a classification society.
Again, we used an average loaded
hourly labor rate of $116.00 for a GS–
15. We estimate it will take Government
personnel about 6.25 hours to prepare
and review the MOA. We estimate it
will 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 $725.00 plus $3 for postage, or a
total cost of $728.00, undiscounted (6.25
hours × $116.00 for the loaded labor
rate).
We estimate the total initial cost to
the Government to be about $5,644.50
($4,640 to create and review the
certificate, $276.50 to review the
certificates for 6 classed and 1 unclassed
U.S.-flagged vessels, and $728.00 for the
MOA). We estimate the total 10-year
undiscounted cost to the Government to
be about $7,185.00 ($5,644.50 in the
initial year + $316.00 in the second,
third, seventh and eighth years +
$276.50 in the sixth year). We estimate
the 10-year present value, or discounted
cost of the rule to the Government, to be
between $6374.14 and $6,805.10, using
7- and 3- percent discount rates,
respectively. We estimate the
annualized cost to be between $907.53
and $797.76, using 7- and 3-percent
discount rates, respectively. See Table 3.
TABLE 3—TOTAL COSTS OF THE RULE TO THE GOVERNMENT
[10-Year period of analysis, 7 and 3 percent discount rates, 2017 dollars]
Period
Cost
(undiscounted)
7%
3%
1 ...................................................................................................................................................
2 ...................................................................................................................................................
3 ...................................................................................................................................................
4 ...................................................................................................................................................
5 ...................................................................................................................................................
6 ...................................................................................................................................................
7 ...................................................................................................................................................
8 ...................................................................................................................................................
9 ...................................................................................................................................................
10 .................................................................................................................................................
$5644.50
316.00
316.00
........................
........................
276.50
316.00
316.00
........................
........................
$5,275.23
276.01
257.95
........................
........................
184.24
196.79
183.91
........................
........................
$5,480.10
297.86
289.18
........................
........................
231.56
256.94
249.45
........................
........................
Total ......................................................................................................................................
Annualized .....................................................................................................................
7,185.00
........................
6,374.14
907.53
6,805.10
797.76
Note: Totals may not sum due to independent rounding.
Total Cost of the Rule to Industry and
Government
We estimate the total 10-year
combined undiscounted cost of the rule
to industry and the Government to be
about $13,364. We estimate the 10-year
present value, or discounted cost of the
rule to industry and the Government, to
be between $11,457 and $12,458 at 7-
and 3-percent discount rates,
respectively. We estimate the
annualized cost to be between $1,631
and $1,460 using the same discount
rates. See Table 4.
TABLE 4—SUMMARY OF COSTS OF THE RULE TO INDUSTRY AND GOVERNMENT
[10-Year period of analysis, 2017 dollars]
Type of cost
Industry
asabaliauskas on DSKBBXCHB2PROD with RULES
Undiscounted ...................................................................................................
7% ....................................................................................................................
3% ....................................................................................................................
Benefits
The primary benefit of this rule is to
ensure that vessel owners and operators
have a valid Polar Ship Certificate on
board the vessel. Without a Polar Ship
Certificate, a vessel will be subject to
deficiencies, detention, denial of entry,
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$6,178.90
5,082.42
5,652.42
or expulsion from the polar waters of
other port States. Adherence to SOLAS
will ensure vessels are capable of
operating in the hazards and adverse
weather conditions unique to polar
waters.
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Sfmt 4700
Government
$7,185.00
6,374.14
6,805.10
Total cost
$13,363.90
11,456.55
12,457.51
Annualized
........................
1,631.16
1,460.40
Alternatives
When creating this rule, the Coast
Guard considered several alternatives.
The previous analysis represents the
preferred alternative, which will help
ensure that the United States fulfills its
treaty obligations under SOLAS
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regarding the Polar Ship Certificate, and
that U.S.-flagged vessel owners and
operators that operate vessels in polar
waters will be able to obtain Polar Ship
Certificates and thus operate more
efficiently by avoiding the risk of
potential negative actions against their
vessel by foreign countries (such as,
detentions, deficiencies, denial of entry,
or expulsions) if their vessel does not
have a Polar Ship Certificate on board.
Alternative 1: Preferred Alternative
The analysis for this alternative
appears in this, ‘‘Regulatory Analysis,’’
section of this preamble.
Alternative 2: No Action Alternative
In this alternative, the United States
would take no action to issue a Polar
Ship Certificate. None of the costs
itemized in the preferred alternative
would be incurred, as a result. 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. U.S.-flagged vessels
could 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 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 will 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
considerably delay the issuance of the
certificate beyond the January 1, 2017
effective date of the Polar Code. As
stated previously, U.S.-flagged vessels
could 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.
By moving forward with Alternative
1, U.S.-flagged vessel owners and
operators will be able to obtain a Polar
Ship Certificate much sooner and thus
operate more efficiently in polar waters
of foreign nations by avoiding adverse
consequences from not having the
certificate on board.
B. Small Entities
Under the Regulatory Flexibility Act
(RFA), 5 U.S.C. 601–612, we have
considered whether this rule will 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 rule on small entities.
Based on our analysis of the entities
affected by this rule, all of the 23
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, ReferenceUSAGov, 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 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
44115
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.7 We
found that no small government
jurisdictions or non-profits own any of
the U.S.-flagged vessels affected by this
rule.
We found that 12 companies own the
23 vessels that will be affected by this
final rule. Of the 12 different
companies, we found only one to be a
small entity, or about 8 percent, based
on SBA’s table of small business size
standards. The one small entity that we
found has a primary NAICS code of
483111, or ‘‘Deep Sea Freight
Transportation.’’
We estimate the initial cost to each
classed vessel owner and operator
(small and not small) to be about
$102.90 [$600/6 classed U.S.-flagged
vessel owners and operators that have
their vessels classed by a class society
+ $17.40 (6 classed vessels × $2.90)/6
(cost for crewmembers of 6 classed U.S.flagged 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 6 classed U.S.-flagged vessel
owners and operators will incur this
cost)]. In the second and third years, the
remaining 12 (6 each year) classed U.S.flagged vessel owners and operators will
incur this same cost, and again in the
renewal years of seven and eight. The 5
U.S.-flagged vessel owners who own
unclassed vessels will only incur a cost
of $2.90 per vessel in the each of the
years described above. These vessel
owners and operators will incur the
same cost in the first (one vessel)
through third years (two vessels in the
second and third year each) and sixth
(the same vessel as in the first year)
through eighth years (the same two
vessels as in the second and third year
in the seventh and eighth year each) of
the analysis period. See Table 5.
TABLE 5—SUMMARY OF COSTS PER VESSEL THROUGHOUT THE 10-YEAR PERIOD OF ANALYSIS
asabaliauskas on DSKBBXCHB2PROD with RULES
Period
Classed U.S.-flagged Vessels
Initial and Sixth Year .........................................
Years 2, 3, 7, and 8 ..........................................
Cost ...................................................................
6 ........................................................................
6 (each year) ....................................................
$102.90 (each year per vessel) .......................
Unclassed U.S.-flagged Vessels
1.
2 (each year).
$2.90 (each year per vessel).
Note: As described in the text, years six, seven, and eight are renewal years. The one unclassed U.S.-flagged vessel that received a certificate in the first year is the same vessel in the sixth year. The two unclassed U.S.- flagged vessels that receive a certificate in years two and
three are the same ones in years seven and eight. The same rationale applies to classed U.S.-flagged vessels.
7 Readers can access small entity information
online at https://www.sba.gov/size/
indextableofsize.html.
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Based on the databases that we
searched, the only small entity that we
found in our analysis did not have
revenue information, but had employee
information. This vessel owned by the
small entity is a classed vessel, which
means the owner of this vessel will
incur a cost of $102.90 in the initial year
and again in the sixth year of the
analysis period when the reissuance of
the certificate takes place. We believe
the estimated impact on the affected
entity is not a significant economic
impact.
Based on the preceding analysis and
noting that the NPRM received no
public comments suggesting this rule
would be a significant economic impact
on small entities, the Coast Guard
certifies under 5 U.S.C. 605(b) that this
rule will not have a significant
economic impact on a substantial
number of small entities.
asabaliauskas on DSKBBXCHB2PROD with RULES
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 rule so that they can
better evaluate its effects on them and
participate in the rulemaking. If the rule
will affect your small business,
organization, or governmental
jurisdiction and you have questions
concerning its provisions or options for
compliance, please contact the person
listed in the FOR FURTHER INFORMATION
CONTACT section of this 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
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
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Jkt 241001
information collection requirement
unless it displays a currently valid OMB
control number.
This action amends the existing
information collection requirements that
were 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: These Coast Guard-issued
certificates are used as evidence of
compliance with SOLAS by certain
U.S.-flagged vessels on international
voyages. Without the proper certificates
or documents, a U.S. vessel could be
detained in a foreign port. SOLAS
applies to all mechanically propelled
cargo and tank vessels of 500 or more
GT ITC, 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.
SOLAS 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.
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Need for Information: In 2014 and
2015, in resolutions MSC.385(94) and
MEPC.264(68), IMO adopted the Polar
Code. The Polar Code raises the safety
standards for commercial ships
operating in or transiting through polar
waters, both Arctic and Antarctic, and
enhances environmental protection for
polar waters that include coastal
communities in the U.S. Arctic. As a
signatory to 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 GT ITC
that engage in international voyages and
operate within polar waters as defined
by the Polar Code will 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 U.S. marine inspectors can
issue certificates required by SOLAS
Polar Code provisions and that these
certificates are being carried on all
covered vessels. Additionally, this
rulemaking will add the Polar Ship
Certificate to the list of certificates that
classification societies can 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 to review and post the
Polar Ship Certificate, 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 5
vessels (23 total vessels/5 years)
annually equates to 30 minutes or 0.5
hours for the hour burden. Equivalently,
7 classed and unclassed U.S.-flagged
vessels (6 classed and 1 unclassed) × 6
minutes in the first and sixth years + 8
classed and unclassed U.S.-flagged
vessels (6 classed and 2 unclassed) × 6
minutes in the second, third, seventh
and eighth year for a total of 276
minutes divided by 46 vessels (7 in the
first and sixth years and 8 in the second,
third, seventh, and eighth year of the
analysis period). Because vessel owners
and operators will have 3 years to obtain
a certificate, we divided the population
essentially into thirds, with 7 in the first
and sixth years and 8 in the second,
third, and seventh and eighth years.
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Federal Register / Vol. 82, No. 182 / Thursday, September 21, 2017 / Rules and Regulations
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 while engaged in an
international voyage.
Number of Respondents: The existing
OMB-approved number of respondents
is 413. This rule will not change the
number of respondents because the
vessel population that will be affected is
a subset of the existing number of
respondents; this rule is not adding new
respondents to this collection.
Frequency of Response: The existing
OMB-approved number of responses is
912. This rule will increase the number
of responses by about 8 annually (23
vessels/3-year renewal period) to 920.
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 94.4 hours. Due to rounding,
this rule will increase the burden hours
annually by one hour. The estimated
total annual burden will be 95 hours
annually.
As required by 44 U.S.C. 3507(d), we
will submit a copy of this rule to OMB
for its review of the collection of
information.
You need not respond to a collection
of information unless it displays a
currently valid control number from
OMB. Before the Coast Guard can
enforce the collection of information
requirements in this rule, OMB will
have to approve the Coast Guard’s
request to collect this information.
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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 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 follows.
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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 SOLAS. Also,
this rule adds this certificate to the list
of SOLAS certificates that the Coast
Guard may authorize recognized
classification societies 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; 33 U.S.C. 1230
and 1231, 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.
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 rule
will not result in such an expenditure,
we do discuss the effects of this rule
elsewhere in this preamble.
G. Taking of Private Property
This rule will 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 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 analyzed this rule under
Executive Order 13045 (‘‘Protection of
Children from Environmental Health
Risks and Safety Risks’’). This rule is
not an economically significant rule and
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44117
will not create an environmental risk to
health or risk to safety that might
disproportionately affect children.
J. Indian Tribal Governments
This rule does not have tribal
implications under Executive Order
13175 (‘‘Consultation and Coordination
with Indian Tribal Governments’’),
because it will 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 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 will be inconsistent
with applicable law or otherwise
impractical. Voluntary consensus
standards are technical standards (for
example, specifications of materials,
performance, design, or operation; test
methods; sampling procedures; and
related management systems practices)
that are developed or adopted by
voluntary consensus standards bodies.
This rule does not use technical
standards. Therefore, we did not
consider the use of voluntary consensus
standards.
M. Environment
We have analyzed this rule under
Department of Homeland Security
Management Directive 023–01 and
Commandant Instruction M16475.lD
(COMDTINST M16475.1D), which guide
the Coast Guard in complying with the
National Environmental Policy Act of
1969 (42 U.S.C. 4321–4370f), and
concluded that this action is one of a
category of actions which do not
individually or cumulatively have a
significant effect on the human
environment. A Record of
Environmental Consideration
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Federal Register / Vol. 82, No. 182 / Thursday, September 21, 2017 / Rules and Regulations
supporting this determination is
available in the docket where indicated
under the ADDRESSES section of this
preamble.
This 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 the
Coast Guard is allowed to authorize
recognized classification societies to
issue on behalf of the Coast Guard. This
action constitutes editorial or
procedural changes concerning vessel
documentation requirements (that is,
issuance of Polar Ship Certificates) and
the delegation of authority for issuing
such certificates. Thus, as reflected in
the Record of Environmental
Consideration, this rule is categorically
excluded under chapter 2, Section B,
Paragraph 2 Categorical Exclusions
(CEs) and Figure 2–1 (Coast Guard
Categorical Exclusions), paragraphs
(34)(a), (b), and (d) of COMDTINST
M16475.1D. This rule promotes the
Coast Guard’s maritime safety and
environmental protection missions.
§ 2.01–25 International Convention for
Safety of Life at Sea, 1974.
List of Subjects
§ 8.320 Classification society authorization
to issue international certificates.
46 CFR Part 2
(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 is revised to read as follows:
■
Authority: 33 U.S.C. 1231, 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.
5. Amend § 8.320 as follows:
a. In paragraph (b)(13), remove the
word ‘‘and’’;
■ b. In paragraph (b)(14), remove the
period at the end of the paragraph and
add, in its place, ‘‘; and’’; and
■ c. Add paragraph (b)(15).
The addition reads as follows:
■
■
*
*
*
*
*
(b) * * *
(15) Polar Ship Certificate.
*
*
*
*
*
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 amends 46
CFR parts 2 and 8 as follows:
Dated: September 18, 2017.
J.G. Lantz,
Director, Commercial Regulations and
Standards, U.S. Coast Guard.
Title 46—Shipping
FEDERAL COMMUNICATIONS
COMMISSION
PART 2—VESSEL INSPECTIONS
[WC Docket No. 16–106; FCC 16–148]
Authority: Sec. 622, Pub. L. 111–281; 33
U.S.C. 1231, 1903; 43 U.S.C. 1333; 46 U.S.C.
2103, 2110, 3306, 3703; Department of
Homeland Security Delegation No.
0170.1(II)(77), (90), (92)(a), (92)(b); E.O.
12234, 45 FR 58801, 3 CFR, 1980 Comp., p.
277, sec. 1–105.
[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:
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■
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BILLING CODE 9110–04–P
47 CFR Part 64
1. The authority citation for 46 CFR
part 2 is revised to read as follows:
■
§ 2.01–6
[FR Doc. 2017–20155 Filed 9–20–17; 8:45 am]
Protecting the Privacy of Customers of
Broadband and Other
Telecommunications Services
Federal Communications
Commission.
ACTION: Final rule.
AGENCY:
Under the Congressional
Review Act, Congress has passed, and
the President has signed, Public Law
115–22, a resolution of disapproval of
the rule that the Federal
Communications Commission (FCC)
submitted pursuant to such Act relating
to ‘‘Protecting the Privacy of Customers
of Broadband and Other
Telecommunications Services.’’ By
operation of the Congressional Review
SUMMARY:
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Act, the rule submitted by the FCC shall
be treated as if it had never taken effect.
However, because the Congressional
Review Act does not direct the Office of
the Federal Register to remove the
voided regulatory text and reissue the
pre-existing regulatory text, the FCC
issues this document to effect the
removal of any amendments, deletions,
or other modifications made by the
nullified rule, and the reversion to the
text of the regulations in effect
immediately prior to the effect date of
the Report and Order relating to
‘‘Protecting the Privacy of Customers of
Broadband and Other
Telecommunications Services.’’
DATES: This action is effective
September 21, 2017.
FOR FURTHER INFORMATION CONTACT: For
further information about this
proceeding, please contact Melissa
Kirkel, FCC Wireline Competition
Bureau, Competition Policy Division,
445 12th St. SW., Washington, DC
20554, (202) 418–1580.
SUPPLEMENTARY INFORMATION: This is a
summary of the Commission’s Report
and Order, adopted on October 27, 2016
in WC Docket No. 16–106, FCC 16–148,
which amended the rules under 47 CFR
part 64, subpart U. It published a
summary of the Report and Order on
December 2, 2016 (81 FR 87274), and
thereafter submitted it to Congress
pursuant to the Congressional Review
Act, 5 U.S.C. 801(a)(1)(A). On March 23,
2017, the Senate passed a resolution of
disapproval (S.J. Res. 34) of the Report
and Order under the Congressional
Review Act. The House of
Representatives then passed S.J. Res. 34
on March 28, 2017. President Trump
signed the resolution into law as Public
Law 115–22 on April 3, 2017. Therefore,
under the terms of the Congressional
Review Act, the Report and Order shall
be ‘‘treated as though such a rule had
never taken effect.’’ 5 U.S.C. 801(f).
However, because the CRA does not
include direction regarding the removal,
by the Office of the Federal Register or
otherwise, of the voided language from
the Code of Federal Regulations, the
FCC must publish this document to
effect the removal of the voided text.
This document will enable the Office of
the Federal Register to effectuate
congressional intent to remove the
voided text of the rules adopted in the
Report and Order as if it had never
taken effect, and to restore the previous
language in 47 CFR part 64, subpart U
and prior state of the Code of Federal
Regulations.
This action is not an exercise of the
FCC’s rulemaking authority under the
Administrative Procedure Act, because
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]]>Agencies
[Federal Register Volume 82, Number 182 (Thursday, September 21, 2017)]
[Rules and Regulations]
[Pages 44108-44118]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-20155]
=======================================================================
-----------------------------------------------------------------------
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: Final rule.
-----------------------------------------------------------------------
SUMMARY: This final rule adds the Polar Ship Certificate to a list of
certificates that certain U.S. and foreign-flag ships will need to
carry on board if they engage in international voyages in polar waters.
This rule also enables the Coast Guard to authorize recognized
classification societies to issue the Polar Ship Certificate on the
Coast Guard's behalf. We are taking this action because the
International Convention for Safety of Life at Sea (SOLAS) has been
amended to require certain ships operating in Arctic or Antarctic
waters to have a Polar Ship Certificate. This rule will help ensure
that U.S.-flagged ships that need this certificate--commercial cargo
ships greater than 500 gross tonnage and passenger ships carrying more
than 12 passengers, that operate in polar waters as defined by SOLAS
chapter XIV while engaged in international voyages--will be able to
obtain it in a timely manner.
DATES: This final rule is effective October 23, 2017.
ADDRESSES: To view comments and material submitted in response to our
proposed rule, as well as documents mentioned in this final rule
preamble as being available in the docket, go to https://www.regulations.gov, type USCG-2016-0880 in the ``SEARCH'' box and
click ``SEARCH.'' Then click on Open Docket Folder on the line
associated with this rule.
FOR FURTHER INFORMATION CONTACT: For information about this document
call or email Lieutenant Chris Rabalais, Systems Engineering Division
(CG-ENG-3), Coast Guard; telephone 202-372-1485, email
Christopher.P.Rabalais@uscg.mil.
SUPPLEMENTARY INFORMATION:
Table of Contents for Preamble
I. Abbreviations
II. Regulatory History
III. Basis, Purpose, and Background
IV. Discussion of Comments and Changes
V. Regulatory Analyses
[[Page 44109]]
A. Regulatory Planning and Review
B. Small Entities
C. Assistance for Small Entities
D. Collection of Information
E. Federalism
F. Unfunded Mandates Reform Act
G. Taking of Private Property
H. Civil Justice Reform
I. Protection of Children
J. Indian Tribal Governments
K. Energy Effects
L. Technical Standards
M. Environment
I. Abbreviations
BLS Bureau of Labor Statistics
CFR Code of Federal Regulations
DHS Department of Homeland Security
E.O. Executive order
FR Federal Register
GT ITC Gross Tonnage International Tonnage Convention
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
OCMI Officer in Charge, Marine Inspection
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
Sec. Section
U.S.C. United States Code
II. Regulatory History
Coast Guard regulations for inspecting and certificating vessels
are located in subpart 2.01 of title 46 of the Code of Federal
Regulations (46 CFR subpart 2.01). Section 2.01-6 in that subpart
contains provisions for issuing certificates of compliance to foreign-
flagged vessels. Section 2.01-25 identifies certificates required by
the International Convention for Safety of Life at Sea (SOLAS) on
certain vessels engaged in international voyages. This section also
lists SOLAS certificates the Coast Guard issues to vessels that meet
applicable SOLAS requirements.
Part 8 of 46 CFR contains Coast Guard regulations for vessel
inspection alternatives. Specifically, 46 CFR 8.320 identifies
international certificates that the Coast Guard may authorize
recognized classification societies to issue on the Coast Guard's
behalf.
On November 22, 2016, we published a notice of proposed rulemaking
(NPRM) in the Federal Register (81 FR 83786) entitled, ``Adding the
Polar Ship Certificate to the List of SOLAS Certificates and
Certificates Issued by Recognized Classification Societies.'' That NPRM
proposed to amend 46 CFR 2.01-6, 2.01-25, and 8.320. We received two
written submissions in response to the NPRM.
III. Basis, Purpose, and Background
In 2014 and 2015, the International Maritime Organization (IMO)
adopted the International Code for Ships Operating in Polar Waters
(Polar Code) and added its requirements to two existing IMO
Conventions--SOLAS, and the International Convention for the Prevention
of Pollution from Ships (MARPOL)--in consideration of hazards and
conditions unique to 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. Copies of the IMO Maritime Safety Committee and
Marine Environment Protection Committee resolutions discussed in this
paragraph are available in the docket.
The Polar Code took effect on January 1, 2017, and applies to all
vessels constructed on or after that date. Beginning on January 1,
2018, the Polar Code will also start applying to existing vessels,
based upon the date their SOLAS Certificates were issued.
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. As a signatory to this convention, under Article I of SOLAS, the
United States has an obligation to ensure compliance with SOLAS
requirements.
This rule creates a certificate that newly constructed U.S.-flagged
vessels, certified in accordance with SOLAS chapter I, will need in
order to travel internationally within polar waters, beginning January
1, 2017. Existing vessels will need the same certificate by their first
intermediate or renewal survey after January 1, 2018. U.S.-flagged
vessels that do not carry a Polar Ship Certificate 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
required by SOLAS in 46 CFR part 2. Also, this rule allows the Coast
Guard to authorize recognized classification societies to issue the
Polar Ship Certificate on the Coast Guard's behalf under 46 CFR 8.320.
Foreign-flagged vessels, certified in accordance with SOLAS chapter
I and operating in polar waters, are also required to carry the Polar
Ship Certificate. However, their certificates will be issued by the
vessel's flag state, or a person or an organization authorized by that
flag state to issue the certificate. The Coast Guard will examine
foreign-flagged vessels during Port State Control boardings to ensure
that they are properly certificated.
The Coast Guard is authorized to regulate this subject matter under
33 U.S.C. 1231; 46 U.S.C. 2103, 3306, 3316, and 3703; Department of
Homeland Security Delegation No. 0170.1, and Executive Order 12234,
``Enforcement of the Convention for the Safety of Life at Sea'' (45 FR
58801, Sept. 5, 1980).
IV. Discussion of Comments and Changes
We received two written submissions commenting on the proposed rule
published on November 22, 2016 (81 FR 83786). The comments raised
concerns about four specific items, which we address in this section of
the preamble.
Applicability of the SOLAS Polar Code Provisions to U.S.-Flagged
Vessels on Domestic Voyages
One of the comments noted concerns about wording in the proposed
rule that limits requirements to vessels engaged in international
voyages. On this point, the comment also cited a December 2016 Coast
Guard Polar Code policy letter (CG-CVC Policy Letter Letter 16-06,
available in the docket), which states that U.S.-flag vessels operating
on domestic voyages to ports or places in the U.S. Arctic do not need
to meet the provisions of SOLAS chapter XIV,\1\ but must instead comply
with applicable domestic requirements. The commenter concluded that
this Coast Guard interpretation, reflected in the proposed rule, does
not meet the intent of the IMO in implementation of the Polar Code.
---------------------------------------------------------------------------
\1\ SOLAS chapter XIV implements Part I-A, safety provisions, of
the Polar Code.
---------------------------------------------------------------------------
We decline to expand the scope of the proposed rule. The proposed
rule is consistent with our view that the SOLAS convention's authority
is generally limited to vessels traveling internationally. Based on the
intent of the SOLAS convention to ensure safe international shipping,
and SOLAS certification as part of voluntary U.S. compliance programs,
the United States will not require U.S.-flagged vessels operating on
domestic routes through Arctic waters to obtain a Polar Ship
Certificate.
[[Page 44110]]
Applicability of the SOLAS Polar Code Provisions in Antarctica
A commenter raised concerns about the lack of clarity regarding the
applicability of the Polar Code in Antarctica, given that these waters
are not under the jurisdiction of the United States or any other
nation. The Polar Code applies to ships engaged in international
voyages that are also operating in polar waters. Polar waters include
both the Arctic and Antarctic waters. Therefore, a U.S.-flagged vessel
that is certified in accordance with SOLAS chapter I and is on an
international voyage must have a Polar Ship Certificate if it enters
Antarctic waters.
Time Estimates for Issuance of a Polar Ship Certificate
The same commenter also questioned our burden hour estimate for the
time required by classification societies to issue the Polar Ship
Certificate. The commenter said that the estimate did not include time
required for technical approvals or verification of compliance with
provisions of the Polar Code.
Cost estimates for verifications of compliance with the Polar Code
were not included in the regulatory analysis because these hours are
outside the scope of this rulemaking. This rulemaking addresses the
issuance of a Polar Ship Certificate, not compliance with substantive
safety and environmental provisions or surveys to evaluate compliance
with those provisions.
In our NPRM we used an estimate of 40 hours, which we obtained from
a classification society and which includes administrative review,
stamping the documents, and data input. The commenter, who also
represents a classification society, gives a minimum time of 8 to 12
hours for these tasks. We have retained the more conservative 40-hour
estimate.
The other hours the commenter discusses, 120 to 230 hours to
complete approval work for new construction, risk assessments, and
surveys, represent compliance aspects of the safety and environmental
provisions of the Polar Code. Again, these compliance aspects are
beyond the scope of this rulemaking.
Entry into Force of the SOLAS Polar Code Requirement for Certification
One commenter stated that the language we used in the NPRM implied
that all U.S.-flagged vessels subject to the Polar Code will be
required to carry a Polar Ship Certificate by January 1, 2017.
The January 1, 2017 date applies to vessels built on or after that
date. Vessels built before that date need not comply until after
January 1, 2018. Implementation for existing vessels is based on the
first renewal or intermediate survey conducted after January 1, 2018.
(See SOLAS chapter XIV, Reg. 2.2.) For the purposes of the Polar Code,
the Cargo Ship Safety Construction or Passenger Ship Safety Certificate
is typically the survey used to determine the implementation date for
vessels built before January 1, 2017.
We have made no changes from the proposed regulatory text. The
regulatory text in this final rule is the same as we proposed in the
NPRM.
V. Regulatory Analyses
We developed this 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 costs and
benefits, reducing costs, harmonizing rules, and promoting flexibility.
Executive Order 13771 (Reducing Regulation and Controlling Regulatory
Costs) directs agencies to reduce regulation and control regulatory
costs and provides that ``for every one new regulation issued, at least
two prior regulations be identified for elimination, and that the cost
of planned regulations be prudently managed and controlled through a
budgeting process.''
The Office of Management and Budget (OMB) has not designated this
final rule a significant regulatory action under section 3(f) of
Executive Order 12866. Accordingly, OMB has not reviewed it. Because
this rule is not a significant regulatory action, this rule is exempt
from the requirements of Executive Order 13771. See the OMB Memorandum
titled Guidance Implementing Executive Order 13771, Titled ``Reducing
Regulation and Controlling Regulatory Costs'' (April 5, 2017).
Our regulatory analysis (RA) follows.
We only received one comment on our estimates in the regulatory
analysis of the proposed rule. That comment related to the number of
hours used for the creation and issuance of the certificate. However,
the commenter also mentioned some hour burdens that are not associated
with the creation, review, and issuance of the Polar Ship certificate,
and are beyond the scope of this rulemaking.
In preamble section IV, Discussion of Comments and Changes, we
discuss this public comment regarding our estimate of the time it takes
a recognized classification society to create a polar certificate--
which includes reviewing, printing, stamping of the documents, and data
input--and explain why we retained a more conservative estimate used in
the NPRM as our primary estimate based on industry input. And as
reflected in that discussion, we adopt the costs and benefits in the
regulatory analysis of the proposed rule for this final rule.
This final rule adds a new Polar Ship Certificate to the list of
existing SOLAS certificates that SOLAS requires to be carried on board
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) \2\ or passenger ships carrying
more than 12 passengers on international voyages 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.\3\ The United States is signatory to the SOLAS convention
and has an obligation to ensure that all U.S.-flagged vessels certified
in accordance with SOLAS chapter I that engage on international voyages
carry a Polar Ship Certificate when operating in polar waters. Owners
and operators of foreign-flagged vessels subject to SOLAS will have
their Polar Ship Certificates issued by the ship's flag state or a
person or an organization authorized by that flag state to issue the
certificate.
---------------------------------------------------------------------------
\2\ This 500 GT ITC threshold comes from an exception in SOLAS
Chapter 1 for ships that need to be certified in accordance with
that chapter. Regulation 3 of Chapter I has an exception for cargo
ships of less than 500 GT ITC.
\3\ See Resolution MSC.385(94) and paragraph 7 of the Polar Code
preamble in MSC.385(94)'s appendix. This resolution is available in
the docket.
---------------------------------------------------------------------------
This rule amends 46 CFR part 2, ``Vessel Inspections,'' subpart
2.01, ``Inspecting and Certificating of Vessels.'' Specifically, we are
adding the Polar Ship Certificate to Sec. 2.01-6, ``Certificates
issued to foreign vessels,'' and Sec. 2.01-25, ``International
Convention for Safety of Life at Sea.''
[[Page 44111]]
This rule also amends 46 CFR part 8, ``Vessel Inspection
Alternatives,'' subpart C, ``International Convention Certificate
Issuance,'' Sec. 8.320, ``Classification Society Authorization to
Issue International Certificates,'' at paragraph (b) to include the
Polar Ship Certificate as one of the certificates that the Coast Guard
may authorize a recognized classification society to issue on behalf of
the Coast Guard.
Affected Population
Since the Coast Guard published the NPRM, two vessels in our
original population of 41 have been re-flagged and are no longer U.S.-
flagged vessels, and one vessel is no longer in service. In addition,
this rule does not apply to domestic vessels that operate in polar
waters if these vessels do not engage in international voyages. This
was not distinguished in the analysis for the NPRM. Based on this
factor and further analysis, the population of affected vessels is now
estimated to be 23. This is the number of U.S.-flagged vessels that
make international voyages 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. This estimate is based on Coast
Guard field data and Coast Guard databases such as the Marine
Information for Safety and Law Enforcement, the Ship Arrival
Notification System, and data from the Navigation Data Center.
Of the 23 U.S.-flagged 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 granted authority from the
Coast Guard under provisions of 46 CFR 8.320(a) will issue the Polar
Ship Certificate on behalf of the Coast Guard for U.S.-flagged vessels
that are classed. 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 that only one classification society will do so for the small
number of classed U.S.-flagged vessels.
Cost Analysis
Classification Societies Cost
This rule amends 46 CFR 8.320(b) to enable recognized
classification societies to request authorization under Sec. 8.240(b),
to issue the Polar Ship Certificate on behalf of the Coast Guard. As
reflected in 46 CFR 2.01-25, vessels that are not classed can apply to
the local Coast Guard Officer in Charge, Marine Inspection (OCMI) to
request the Coast Guard to 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. In this situation, the
MOA 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 will take a recognized classification
society's classification and documentation specialist 1 hour to review
the MOA. 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 2016, so we
used the ``Business Operations Specialist, All Other'' (Occupation Code
13-1199) category for Water Transportation with a North American
Industry Classification System (NAICS) Code of 483000 as a
representative occupation. The mean hourly wage rate for this
occupation is $37.55. Because this is an unloaded hourly wage rate, we
added a load factor to obtain a loaded hourly wage rate. We used BLS'
May 2016 Employer Cost for Employee Compensation databases to calculate
and apply a load factor of 1.52 to obtain a loaded hourly labor rate of
about $57.08 for this occupation.\4\ We also estimate it will take a
recognized classification society attorney 1 hour to review the MOA for
legal sufficiency. Using the BLS' Occupational Employment Statistics
National Occupational Employment and Wage Estimates for May 2016, we
used the category ``Lawyers'' (Occupation Code 23-1011). The mean
hourly wage for this occupation is $67.25. Because this is an unloaded
hourly wage rate, we apply the same load factor of 1.52 as derived
above to obtain a loaded hourly wage rate of about $102.22.
---------------------------------------------------------------------------
\4\ Information can be viewed at https://www.bls.gov/oes/2016/may/naics3_483000.htm. Once on this page scroll down to review the
wage rate for 13-1199 Business Operations Specialists, All Other,
with a mean hourly wage of $37.55. Please see https://www.bls.gov/oes/2016/may/oes231011.htm, for the mean hourly wage rate for a
lawyer. 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 2016 Q4 data for the cost of compensation and cost
per hour worked, we divide the total compensation amount of $28.15
by the wage and salary amount of $18.53 to obtain the load factor of
about 1.52, rounded. See the following Web sites, https://beta.bls.gov/dataQuery/find?fq=survey:[oe]&s=popularity:D and
https://data.bls.gov/cgi-bin/dsrv?cm Multiplying 1.52 by $37.55, we
obtain a loaded hourly wage rate of about $57.08.
---------------------------------------------------------------------------
We estimate the one-time cost for the classification society to
review the MOA to be about $162.30, undiscounted. This cost includes a
$3 postage cost to mail the signed MOA to the Coast Guard for approval
and signature [($57.08 x 1 hour) + ($102.22 x 1 hour) + $3 for
postage].
Based on a recognized classification society estimate, it will take
approximately 40 hours to create and review the Polar Ship Certificate
once the MOA is approved. We received a lower estimate of 8-to-12 hours
from a commenter for work related to this task, but we are maintaining
our more conservative 40-hour estimate we obtained from an industry
source to specifically address hours needed to create and review 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 $2,283.20 (40 hours \5\ x $57.08/hour), undiscounted. Because 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.
---------------------------------------------------------------------------
\5\ Based on an estimate provided by a recognized classification
society to the U.S. Coast Guard.
---------------------------------------------------------------------------
We estimate the total undiscounted cost of the rule to a recognized
classification society to be about $2,445.50 ($2,283.20 document
development cost + $162.30 MOA review cost). See Table 1.
[[Page 44112]]
Vessel Cost
There are two cost elements associated with vessel owners and
operators: The fee a recognized classification society will 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 22 percent, or about 5 out of the 23 U.S.-flagged
vessels, are not classed by a recognized classification society.
The requirement for the 23 existing ships is to have the
certificate by their first renewal or intermediate exam after January
1, 2018. This is a phased-in approach that will likely phase in the
issuing of the certificates over a period of about 3 years. Therefore,
the Coast Guard would issue the Polar Ship Certificate to vessel owners
and operators of those 5 unclassed vessels as part of its routine
inspection regime. A recognized classification society will issue the
Polar Ship Certificate to the remaining 18 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
will issue a new Polar Ship Certificate to vessel owners and operators,
depending upon whether a vessel is classed or not classed. Based on
information from a recognized classification society, the cost to issue
a Polar Ship Certificate is $100 if a recognized classification society
issues the certificate (for 18 classed, U.S.-flagged vessels). The cost
of the reissued Polar Ship Certificate is also $100; therefore, it will
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 7 U.S.-flagged vessels owners and operators (6 classed and 1
unclassed) will obtain a certificate in the first year and 8 (6 classed
and 2 unclassed) U.S.-flagged vessel owners and operators will obtain
one in the second and third years. For reissuance, again, we assume the
same 7 vessel owners and operators will obtain a certificate in the
sixth year and the same 8 vessel owners and operators will obtain one
in the seventh and eighth years each; we divided the population
accordingly to obtain even values.
Vessel owners and operators will 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 entitled
``Various International Agreement Safety Certificates,'' (OMB control
number 1625-0017), a crewmember equivalent to a U.S. Coast Guard cadet
will post the Polar Ship Certificate on board a vessel. Using the Coast
Guard's Commandant Instruction 7310.1R for loaded hourly wages outside
of the Government, the hourly wage rate of a person outside of the
Government equivalent to a cadet is $29.00. 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 $2.90 per vessel ($29.00 x 0.1
hours). To post the Polar Ship Certificate, we estimate the total
initial cost of the final rule to 7 U.S.-flagged vessel owners and
operators to be about $20.30 (6 U.S. classed and 1 unclassed vessel x
0.1 hours x $29.00), regardless of whether a recognized classification
society or the Coast Guard issues the Polar Ship Certificate. Owners
and operators of U.S.-flagged vessels will incur this cost again in the
sixth year because a crewmember will review and post the reissued
certificate for the same seven vessels.
We estimate the initial cost of the rule to vessel owners and
operators to be about $620.30 in the first year [(6 classed vessels x
$100) + (6 classed vessels x $2.90 to post the certificate) + 1
unclassed vessel x $2.90 to post the certificate)].\6\ The cost for the
renewed certificate in the sixth year (or 5 years after the initial
year) will also be $620.30 for these seven vessels. In the second,
third, seventh, and eighth years, we estimate the cost for eight U.S.-
flagged vessel owners and operators to obtain and post a Polar Ship
Certificate to be about $623.20 [(6 classed vessels x $100) + (6
classed vessels x $2.90 to post the certificate) + (2 unclassed vessels
in each of these years x $2.90 each year to post the certificate)]. See
Table 1.
---------------------------------------------------------------------------
\6\ Vessel owners and operators for ships built on or after
January 1, 2017, have been required to carry the Polar Ship
Certificate before engaging in international voyages in polar
waters. We have not identified any vessels that would be affected by
this rule that were built after this date and we do not have data to
project how many newly built vessels will be affected or required to
carry a Polar Ship Certificate in the future.
---------------------------------------------------------------------------
We estimate the total 10-year undiscounted cost to be $3,733.40 for
all 23 U.S.-flagged vessel owners and operators ($620.30 in the first
and sixth year + $623.20 in the second, third, seventh, and eighth
years of the analysis period). Table 1 shows the cost to both class
society and vessel owners and operators for this rule.
Table 1--Summary of Classification Society and Vessel Owners and Operators Costs
[Undiscounted]
----------------------------------------------------------------------------------------------------------------
Cost item Unit cost Labor rate Hours Total cost
----------------------------------------------------------------------------------------------------------------
Classification Society Certificate .............. $57.08............... 40 $2,283.20 (incurred
Creation. in year 1).
Classification Society Review of .............. $102.22 (Attorney)... 1 $162.30 (incurred in
MOA. year 1 and includes
$3 postage).
.............. $57.08 (Business 1
Operations
Specialist).
Certificate Fee Charged to Vessel $100 ..................... .............. $600 (incurred in
Owners and Operators. years 1 through 3
and 6 through 8);
$1,800 for 18
classed vessels in
years 1 through 3
and 6 through 8.
Vessel Crewmember Reviews and .............. $27.................. 0.1 $2.90 (incurred in
Posts Certificate. years 1 through 3
and 6 through 8);
$20.30 in years 1
and 6 and $23.20 in
years 2, 3, 7, and
8.
-----------------------------------------------------------------------------
[[Page 44113]]
Total Undiscounted Cost .............. ..................... .............. $3,065.80
(Initial year).
----------------------------------------------------------------------------------------------------------------
We estimate the initial undiscounted cost of the final rule to a
recognized classification society and to 7 (6 classed and 1 unclassed
vessels) U.S.-flagged vessel owners and operators to be about $3,065.80
($2,283.20 for the classification society to create the certificate +
$162.30 for the classification society to review the MOA + $600 fee
charged by a classification society to issue the certificate to the 6
classed vessel owners and operators + $20.30 for crewmembers of the
seven classed and unclassed vessels to post the certificate). We
estimate the total 10-year undiscounted cost of the rule to industry to
be about $6,178.90 ($3,065.80 in the first year + $623.20 in the
second, third, seventh, and, eighth years + $620.30 in the sixth year).
See Table 2.
We estimate the 10-year present value--or discounted cost--of the
rule to industry to be between $5,082.42 and $5,652.42 at 7- and 3-
percent discount rates, respectively. We estimate the annualized cost
to be between $723.62 and $662.64 at 7- and 3- percent discount rates,
respectively. See Table 2.
Table 2--Total Costs of the Rule to Industry
[10-Year period of analysis, 7 and 3 percent discount rates, 2017 dollars]
----------------------------------------------------------------------------------------------------------------
Cost
Period (undiscounted) 7% 3%
----------------------------------------------------------------------------------------------------------------
1............................................................... $3,065.80 $2,865.23 $2,976.50
2............................................................... 623.20 544.33 587.43
3............................................................... 623.20 508.72 570.32
4............................................................... .............. .............. ..............
5............................................................... .............. .............. ..............
6............................................................... 620.30 413.33 519.49
7............................................................... 623.20 388.10 506.72
8............................................................... 623.20 362.71 491.96
9............................................................... .............. .............. ..............
10.............................................................. .............. .............. ..............
-----------------------------------------------
Total....................................................... 6178.90 5,082.42 5,652.42
Annualized.............................................. .............. 723.62 662.64
----------------------------------------------------------------------------------------------------------------
Note: Totals may not sum due to independent rounding.
Government Costs
There are three cost elements associated with this rule for the
Coast Guard: (1) A one-time cost of creating the Polar Ship Certificate
and issuing it (in the initial year, second, third, sixth, seventh, and
eighth years) to a vessel owner or operator if a vessel is not classed
by a class society; (2) reviewing the certificate onboard a vessel as
part of the Coast Guard's routine inspection regime; and (3) a one-time
cost of creating and sending the delegation letter or MOA to a
classification society for signature.
For the 5 U.S.-flagged vessels that are not classed by a recognized
classification society, the Coast Guard will issue the Polar Ship
Certificate in the first through the third years and the sixth through
the eighth years. Because of the phase-in period, we divided the 5
vessels evenly over 3 years. We determined that 1 vessel will receive
its certificate in the first and sixth years, and 2 vessels will
receive it in the second, third, seventh, and eighth year, with
certificate reissuance occurring during the sixth, seventh, and eighth
years. The two vessels in the second and third years are the same two
vessels in the seventh and eighth years.
Based on information from 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. Using the Commandant Instruction 7310.1R, we used an
average loaded hourly wage rate of $116.00. We estimate the one-time
cost for the Coast Guard to create the Polar Ship Certificate to be
about $4,640.00 (40 hours x $116.00 hour).
Based on an OMB-approved collection of information (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 7310.1R for loaded hourly wages, an O-3 has a loaded hourly
wage rate of $79.00. Therefore, we estimate the total undiscounted cost
to the Government to review the Polar Ship Certificate for all 23
affected vessels to be about $908.50 ($79.00x 23 vessels x 0.5 hours),
or about $39.50 per vessel.
We use the same methodology noted earlier in this preamble with
owners and operators obtaining certificates over a 3-year period (7 in
the first and sixth year and 8 in the second, third, seventh and eighth
year), with the sixth, seventh and eighth years being the renewal
years. Again, 7 inspections (6 classed and 1 unclassed) will take place
in the first and sixth year, and 8 (6 classed and 2 unclassed) in the
second, third, seventh, and eighth year. We estimate the first year
cost to the Government to review the certificate will be about $276.50
(6 classed and 1 unclassed vessels x $39.50). The Government will incur
this cost again in the sixth year when the certificate is reissued. In
years
[[Page 44114]]
two, three, seven, and eight, the Government will incur a certificate
review cost of about $316.00 (6 classed and 2 unclassed vessels x
$39.50) in each of these years.
The Coast Guard will 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. This will take place
during routine Coast Guard examinations and for issuing certificates of
compliance and is a part of the inspection process. Therefore, we do
not estimate a cost to the Government.
This final rule will also enable a recognized classification
society to issue the Polar Ship Certificate on behalf of the Coast
Guard. As a result, the Coast Guard and a recognized classification
society will enter into an MOA that delegates authority to the
classification society. This 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. 116.
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 will prepare the MOA for delivery to a
classification society. Again, we used an average loaded hourly labor
rate of $116.00 for a GS-15. We estimate it will take Government
personnel about 6.25 hours to prepare and review the MOA. We estimate
it will 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 $725.00 plus $3 for postage, or a total cost of $728.00,
undiscounted (6.25 hours x $116.00 for the loaded labor rate).
We estimate the total initial cost to the Government to be about
$5,644.50 ($4,640 to create and review the certificate, $276.50 to
review the certificates for 6 classed and 1 unclassed U.S.-flagged
vessels, and $728.00 for the MOA). We estimate the total 10-year
undiscounted cost to the Government to be about $7,185.00 ($5,644.50 in
the initial year + $316.00 in the second, third, seventh and eighth
years + $276.50 in the sixth year). We estimate the 10-year present
value, or discounted cost of the rule to the Government, to be between
$6374.14 and $6,805.10, using 7- and 3- percent discount rates,
respectively. We estimate the annualized cost to be between $907.53 and
$797.76, using 7- and 3-percent discount rates, respectively. See Table
3.
Table 3--Total Costs of the Rule to the Government
[10-Year period of analysis, 7 and 3 percent discount rates, 2017 dollars]
----------------------------------------------------------------------------------------------------------------
Cost
Period (undiscounted) 7% 3%
----------------------------------------------------------------------------------------------------------------
1............................................................... $5644.50 $5,275.23 $5,480.10
2............................................................... 316.00 276.01 297.86
3............................................................... 316.00 257.95 289.18
4............................................................... .............. .............. ..............
5............................................................... .............. .............. ..............
6............................................................... 276.50 184.24 231.56
7............................................................... 316.00 196.79 256.94
8............................................................... 316.00 183.91 249.45
9............................................................... .............. .............. ..............
10.............................................................. .............. .............. ..............
-----------------------------------------------
Total....................................................... 7,185.00 6,374.14 6,805.10
Annualized.............................................. .............. 907.53 797.76
----------------------------------------------------------------------------------------------------------------
Note: Totals may not sum due to independent rounding.
Total Cost of the Rule to Industry and Government
We estimate the total 10-year combined undiscounted cost of the
rule to industry and the Government to be about $13,364. We estimate
the 10-year present value, or discounted cost of the rule to industry
and the Government, to be between $11,457 and $12,458 at 7- and 3-
percent discount rates, respectively. We estimate the annualized cost
to be between $1,631 and $1,460 using the same discount rates. See
Table 4.
Table 4--Summary of Costs of the Rule to Industry and Government
[10-Year period of analysis, 2017 dollars]
----------------------------------------------------------------------------------------------------------------
Type of cost Industry Government Total cost Annualized
----------------------------------------------------------------------------------------------------------------
Undiscounted.................................... $6,178.90 $7,185.00 $13,363.90 ..............
7%.............................................. 5,082.42 6,374.14 11,456.55 1,631.16
3%.............................................. 5,652.42 6,805.10 12,457.51 1,460.40
----------------------------------------------------------------------------------------------------------------
Benefits
The primary benefit of this rule is to ensure that vessel owners
and operators have a valid Polar Ship Certificate on board the vessel.
Without a Polar Ship Certificate, a vessel will be subject to
deficiencies, detention, denial of entry, or expulsion from the polar
waters of other port States. Adherence to SOLAS will ensure vessels are
capable of operating in the hazards and adverse weather conditions
unique to polar waters.
Alternatives
When creating this rule, the Coast Guard considered several
alternatives. The previous analysis represents the preferred
alternative, which will help ensure that the United States fulfills its
treaty obligations under SOLAS
[[Page 44115]]
regarding the Polar Ship Certificate, and that U.S.-flagged vessel
owners and operators that operate vessels in polar waters will be able
to obtain Polar Ship Certificates and thus operate more efficiently by
avoiding the risk of potential negative actions against their vessel by
foreign countries (such as, detentions, deficiencies, denial of entry,
or expulsions) if their vessel does not have a Polar Ship Certificate
on board.
Alternative 1: Preferred Alternative
The analysis for this alternative appears in this, ``Regulatory
Analysis,'' section of this preamble.
Alternative 2: No Action Alternative
In this alternative, the United States would take no action to
issue a Polar Ship Certificate. None of the costs itemized in the
preferred alternative would be incurred, as a result. 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. U.S.-flagged vessels could
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 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 will 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
considerably delay the issuance of the certificate beyond the January
1, 2017 effective date of the Polar Code. As stated previously, U.S.-
flagged vessels could 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.
By moving forward with Alternative 1, U.S.-flagged vessel owners
and operators will be able to obtain a Polar Ship Certificate much
sooner and thus operate more efficiently in polar waters of foreign
nations by avoiding adverse consequences from not having the
certificate on board.
B. Small Entities
Under the Regulatory Flexibility Act (RFA), 5 U.S.C. 601-612, we
have considered whether this rule will 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 rule on small entities.
Based on our analysis of the entities affected by this rule, all of
the 23 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,
ReferenceUSAGov, 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 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.\7\ We found that no small government jurisdictions or non-
profits own any of the U.S.-flagged vessels affected by this rule.
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\7\ Readers can access small entity information online at https://www.sba.gov/size/indextableofsize.html.
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We found that 12 companies own the 23 vessels that will be affected
by this final rule. Of the 12 different companies, we found only one to
be a small entity, or about 8 percent, based on SBA's table of small
business size standards. The one small entity that we found has a
primary NAICS code of 483111, or ``Deep Sea Freight Transportation.''
We estimate the initial cost to each classed vessel owner and
operator (small and not small) to be about $102.90 [$600/6 classed
U.S.-flagged vessel owners and operators that have their vessels
classed by a class society + $17.40 (6 classed vessels x $2.90)/6 (cost
for crewmembers of 6 classed U.S.-flagged 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 6 classed U.S.-
flagged vessel owners and operators will incur this cost)]. In the
second and third years, the remaining 12 (6 each year) classed U.S.-
flagged vessel owners and operators will incur this same cost, and
again in the renewal years of seven and eight. The 5 U.S.-flagged
vessel owners who own unclassed vessels will only incur a cost of $2.90
per vessel in the each of the years described above. These vessel
owners and operators will incur the same cost in the first (one vessel)
through third years (two vessels in the second and third year each) and
sixth (the same vessel as in the first year) through eighth years (the
same two vessels as in the second and third year in the seventh and
eighth year each) of the analysis period. See Table 5.
Table 5--Summary of Costs per Vessel Throughout the 10-Year Period of
Analysis
------------------------------------------------------------------------
Classed U.S.- Unclassed U.S.-
Period flagged Vessels flagged Vessels
------------------------------------------------------------------------
Initial and Sixth Year.......... 6................. 1.
Years 2, 3, 7, and 8............ 6 (each year)..... 2 (each year).
Cost............................ $102.90 (each year $2.90 (each year
per vessel). per vessel).
------------------------------------------------------------------------
Note: As described in the text, years six, seven, and eight are renewal
years. The one unclassed U.S.-flagged vessel that received a
certificate in the first year is the same vessel in the sixth year.
The two unclassed U.S.- flagged vessels that receive a certificate in
years two and three are the same ones in years seven and eight. The
same rationale applies to classed U.S.-flagged vessels.
[[Page 44116]]
Based on the databases that we searched, the only small entity that
we found in our analysis did not have revenue information, but had
employee information. This vessel owned by the small entity is a
classed vessel, which means the owner of this vessel will incur a cost
of $102.90 in the initial year and again in the sixth year of the
analysis period when the reissuance of the certificate takes place. We
believe the estimated impact on the affected entity is not a
significant economic impact.
Based on the preceding analysis and noting that the NPRM received
no public comments suggesting this rule would be a significant economic
impact on small entities, the Coast Guard certifies under 5 U.S.C.
605(b) that this rule will not have a significant economic impact on a
substantial number of small entities.
C. Assistance for Small Entities
Under section 213(a) of the Small Business Regulatory Enforcement
Fairness Act of 1996, Public Law 104-121, we want to assist small
entities in understanding this rule so that they can better evaluate
its effects on them and participate in the rulemaking. If the rule will
affect your small business, organization, or governmental jurisdiction
and you have questions concerning its provisions or options for
compliance, please contact the person listed in the FOR FURTHER
INFORMATION CONTACT section of this 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 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 amends the existing information collection requirements
that were 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: These Coast Guard-issued
certificates are used as evidence of compliance with SOLAS by certain
U.S.-flagged vessels on international voyages. Without the proper
certificates or documents, a U.S. vessel could be detained in a foreign
port. SOLAS applies to all mechanically propelled cargo and tank
vessels of 500 or more GT ITC, 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.
SOLAS 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 2014 and 2015, in resolutions MSC.385(94)
and MEPC.264(68), IMO adopted the Polar Code. The Polar Code raises the
safety standards for commercial ships operating in or transiting
through polar waters, both Arctic and Antarctic, and enhances
environmental protection for polar waters that include coastal
communities in the U.S. Arctic. As a signatory to 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 GT ITC that engage in
international voyages and operate within polar waters as defined by the
Polar Code will 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 U.S. marine
inspectors can issue certificates required by SOLAS Polar Code
provisions and that these certificates are being carried on all covered
vessels. Additionally, this rulemaking will add the Polar Ship
Certificate to the list of certificates that classification societies
can 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 to review and post
the Polar Ship Certificate, 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 5 vessels (23 total vessels/5 years) annually
equates to 30 minutes or 0.5 hours for the hour burden. Equivalently, 7
classed and unclassed U.S.-flagged vessels (6 classed and 1 unclassed)
x 6 minutes in the first and sixth years + 8 classed and unclassed
U.S.-flagged vessels (6 classed and 2 unclassed) x 6 minutes in the
second, third, seventh and eighth year for a total of 276 minutes
divided by 46 vessels (7 in the first and sixth years and 8 in the
second, third, seventh, and eighth year of the analysis period).
Because vessel owners and operators will have 3 years to obtain a
certificate, we divided the population essentially into thirds, with 7
in the first and sixth years and 8 in the second, third, and seventh
and eighth years.
[[Page 44117]]
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 while engaged in an international voyage.
Number of Respondents: The existing OMB-approved number of
respondents is 413. This rule will not change the number of respondents
because the vessel population that will be affected is a subset of the
existing number of respondents; this rule is not adding new respondents
to this collection.
Frequency of Response: The existing OMB-approved number of
responses is 912. This rule will increase the number of responses by
about 8 annually (23 vessels/3-year renewal period) to 920.
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 94.4 hours. Due to rounding, this rule will increase
the burden hours annually by one hour. The estimated total annual
burden will be 95 hours annually.
As required by 44 U.S.C. 3507(d), we will submit a copy of this
rule to OMB for its review of the collection of information.
You need not respond to a collection of information unless it
displays a currently valid control number from OMB. Before the Coast
Guard can enforce the collection of information requirements in this
rule, OMB will have 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 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 follows.
It is well settled that States ma
