81 FR 83786 - Adding the Polar Ship Certificate to the List of SOLAS Certificates and Certificates Issued by Recognized Classification Societies
DEPARTMENT OF HOMELAND SECURITY
Coast Guard Federal Register Volume 81, Issue 225 (November 22, 2016)
Coast Guard
Federal Register Volume 81, Issue 225 (November 22, 2016)
| Page Range | 83786-83795 | |
| FR Document | 2016-27989 |
[Federal Register Volume 81, Number 225 (Tuesday, November 22, 2016)] [Proposed Rules] [Pages 83786-83795] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-27989] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF HOMELAND SECURITY Coast Guard 46 CFR Parts 2 and 8 [Docket No. USCG-2016-0880] RIN 1625-AC35 Adding the Polar Ship Certificate to the List of SOLAS Certificates and Certificates Issued by Recognized Classification Societies AGENCY: Coast Guard, DHS. ACTION: Notice of proposed rulemaking. ----------------------------------------------------------------------- SUMMARY: This proposed rule would add a new Polar Ship Certificate to the list of existing certificates required to be carried on board all U.S. and foreign-flagged vessels subject to the International Convention for Safety of Life at Sea (SOLAS) and operating in Arctic and Antarctic waters, generally above 60 degrees north latitude and below 60 degrees south latitude lines. Additionally, the Coast Guard proposes to add this certificate to the list of SOLAS certificates that recognized classification societies are authorized to issue on behalf of the Coast Guard. The proposed rule would apply to commercial cargo ships greater than 500 gross tons engaging in international voyages, and passenger ships carrying more than 12 passengers engaging in international voyages, when these ships operate within polar waters as defined by the Polar Code. DATES: Comments and related material must be submitted to the online docket via http://www.regulations.gov by December 22, 2016. ADDRESSES: You may submit comments identified by docket number USCG- 2016-0880 using the Federal eRulemaking Portal at http://www.regulations.gov. See the ``Public Participation and Request for Comments'' portion of the SUPPLEMENTARY INFORMATION section for further instructions on submitting comments. Collection of Information: You must submit comments on the collection of information discussed in section V.D. of this preamble both to the Coast Guard's docket and to the Office of Information and Regulatory Affairs (OIRA) in the White House Office of Management and Budget. OIRA submissions can use one of the listed methods:Email (preferred)[email protected] (include the docket number and ``Attention: Desk Officer for Coast Guard, DHS'' in the subject line of the email); Fax--202-395-6566; or Mail--Office of Information and Regulatory Affairs, Office of Management and Budget, 725 17th Street NW., Washington, DC 20503, ATTN: Desk Officer, U.S. Coast Guard. FOR FURTHER INFORMATION CONTACT: For information about this document call or email CDR Todd Howard, Systems Engineering Division (CG-ENG-3), Coast Guard; telephone 202-372-1375, email [email protected]. SUPPLEMENTARY INFORMATION: Table of Contents for Preamble I. Public Participation and Request for Comments A. Submitting Comments B. Viewing Comments and Documents C. Privacy Act D. Public Meeting II. Abbreviations III. Basis, Purpose, and Background IV. Discussion of Proposed Rule V. Regulatory Analyses A. Regulatory Planning and Review B. Small Entities C. Assistance for Small Entities D. Collection of Information E. Federalism F. Unfunded Mandates Reform Act G. Taking of Private Property H. Civil Justice Reform I. Protection of Children J. Indian Tribal Governments K. Energy Effects L. Technical Standards M. Environment I. Public Participation and Request for Comments We view public participation as essential to effective rulemaking, and will consider all comments and material received during the comment period. Your comment can help shape the outcome of this rulemaking. If you submit a comment, please include the docket number for this rulemaking, indicate the specific section of this document to which each comment applies, and provide a reason for each suggestion or recommendation. We encourage you to submit comments through the Federal eRulemaking Portal at http://www.regulations.gov. If your material cannot be submitted using http://www.regulations.gov, contact the person in the FOR FURTHER INFORMATION CONTACT section of this document for alternate instructions. Documents mentioned in this notice and all public comments, are in our online docket at http://www.regulations.gov and can be viewed by following that Web site's instructions. Additionally, if you go to the online docket and sign up for email alerts, you will be notified when comments are posted or a final rule is published. We accept anonymous comments. All comments received will be posted without change to http://www.regulations.gov and will include any personal information you have provided. For more about privacy and the docket, you may review a Privacy Act notice regarding the Federal Docket Management System in the March 24, 2005, issue of the Federal Register (70 FR 15086). We are not planning to hold a public meeting but may do so if public comments indicate a meeting would be helpful. We would issue a separate Federal Register notice to announce the date, time, and location of that meeting. II. Abbreviations BLS Bureau of Labor Statistics COI Collection of Information DHS Department of Homeland Security FR Federal Register IMO International Maritime Organization MARPOL International Convention for the Prevention of Pollution from Ships, 1974 MEPC Marine Environment Protection Committee MOA Memorandum of Agreement MSC Maritime Safety Committee NAICS North American Industry Classification System OMB Office of Management and Budget Polar Code International Code for Ships Operating in Polar Waters RA Regulatory Assessment SBA Small Business Administration SOLAS International Convention for the Safety of Life at Sea STCW International Convention on Standards of Training, Certification, and Watchkeeping for Seafarers Sec. Section Symbol U.S.C. United States Code III. Basis, Purpose, and Background In 2014 and 2015, in resolutions MSC.384(94) and MEPC.264(68), respectively, the International Maritime Organization (IMO) adopted the safety and environmental provisions of the International Code for Ships Operating in Polar Waters (Polar Code). The Polar Code adds requirements to existing IMO Conventions--the International Convention for the Safety of Life at Sea (SOLAS), the International Convention for the Prevention of Pollution from Ships (MARPOL), and the International [[Page 83787]] Convention on Standards of Training, Certification, and Watchkeeping for Seafarers (STCW)--in consideration of hazards and conditions unique to the polar waters, and an expected increase in traffic in Arctic and Antarctic waters. These additional hazards include navigation in ice and low temperatures, high latitude communications and navigation, remoteness from response resources, and limited hydrographic charting. The Polar Code enters into force on January 1, 2017. One of the requirements for ships subject to the Polar Code is to carry a Polar Ship Certificate pursuant to SOLAS. The Polar Ship Certificate attests that the vessel has met applicable requirements of SOLAS to the satisfaction of the U.S. Government. As a signatory to SOLAS, the United States has a treaty obligation to ensure compliance with SOLAS requirements. This rulemaking creates a certificate that U.S. vessels subject to SOLAS will need in order to travel internationally within polar waters as defined by the Polar Code beginning January 1, 2017. Beginning on that date, U.S. vessels that are subject to the SOLAS Convention and elect to travel through the polar waters of States other than the United States will have to carry a Polar Ship Certificate or risk detention, denial of entry, or expulsion from the polar waters of other States. This rulemaking is necessary to allow the Coast Guard to create the new Polar Ship Certificate and add it to the list of certificates in 46 CFR part 2, and to allow third-party organizations to issue it on the Coast Guard's behalf by adding the new Polar Ship Certificate to the list of certificates in 46 CFR part 8. Foreign flagged vessels, subject to SOLAS and operating in polar waters, must also carry the Polar Ship Certificate but the certificate will be issued by the vessel's class society or flag state. However, the Coast Guard will examine foreign flagged vessels during Port State Control boardings to ensure that they are properly certificated. The SOLAS requirement applies to commercial cargo ships greater than 500 gross tons engaging in international voyages, and passenger ships carrying more than 12 passengers engaging in international voyages, when these ships operate within polar waters as defined by the Polar Code. The Coast Guard is authorized to regulate this subject matter under, among other authorities, Executive Order 12234, ``Enforcement of the Convention for the Safety of Life at Sea,'' 45 FR 58801; 33 U.S.C. 1231; 46 U.S.C. 2103, 3306, 3316, and 3703; and Department of Homeland Security Delegation No. 0170.1. This rulemaking does not address the Polar Code requirements added to SOLAS other than the Polar Code Certificate. Furthermore, this rulemaking does not address the Polar Code requirements added to MARPOL or STCW. In order to begin issuing Polar Code certificates as soon as possible after January 1, 2017, the Coast Guard is implementing the Polar Code through several rulemakings. The first project, which is this rulemaking, only requires SOLAS vessels operating in polar waters to carry a Polar Ship Certificate. It contains the regulatory changes required for the issuance of the certificates and reflects only the documentation costs for the certificates. Subsequent rulemakings will implement the design, engineering, and personnel standards found in the Polar Code. The incremental costs for industry to comply with these standards will be accounted for in the regulatory analyses for those rulemakings. IV. Discussion of Proposed Rule This proposed rule would amend 46 CFR 2.01-6(a)(1), and 2.01-25 (a)(1) and (a)(2), to include the Polar Ship Certificate in the list of International Convention Certificates to be issued by the Officer in Charge of Marine Inspection and carried on certain passenger, cargo, and tankships engaged in international voyages. This proposed requirement would apply to commercial cargo ships greater than 500 gross tons and passenger ships carrying more than 12 passengers that engage in international voyages within polar waters as defined by the Polar Code. This proposed rule would also amend 46 CFR 8.320(b) to include the Polar Ship Certificate in the list of International Convention Certificates that could be issued by recognized classification societies. Both the Coast Guard and classification societies would have the ability to issue these certificates. By adding this certificate to the Code of Federal Regulations, we enable marine inspectors to ensure compliance with the SOLAS requirement to carry a Polar Ship Certificate, which fulfills the United States' treaty obligations with regard to the certification. Additionally, without this certificate, the U.S.-flagged vessels sailing on international routes would be subject to deficiencies, detentions, denial of entry or expulsion from the polar waters of other port States due to lack of proper certificates. V. Regulatory Analyses We developed this proposed rule after considering numerous statutes and Executive orders related to rulemaking. Below we summarize our analyses based on these statutes or Executive orders. A. Regulatory Planning and Review Executive Orders 12866 (Regulatory Planning and Review) and 13563 (Improving Regulation and Regulatory Review) direct agencies to assess the costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, distributive impacts, and equity). Executive Order 13563 emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. This rule has not been designated a ``significant regulatory action,'' under section 3(f) of Executive Order 12866. Accordingly, the rule has not been reviewed by the Office of Management and Budget. This proposed rule would add a new Polar Ship Certificate to the list of existing SOLAS certificates required to be carried onboard all U.S. and foreign-flagged vessels above 500 GT ITC, (the International Convention on Tonnage Measurement of Ships 1969 or gross tonnage assigned under this system) or passenger ships carrying more than 12 passengers on international routes operating in polar waters, generally above 60 degrees north latitude and below 60 degrees south latitude lines. The IMO adopted the Polar Code in 2014 and 2015 to acknowledge that polar waters impose additional operating demands and risks.\1\ Since the United States is signatory to the SOLAS convention, the United States has an obligation to ensure that all U.S.-flagged vessels subject to SOLAS that transit in polar waters carry a Polar Ship Certificate. Owners and operators of all foreign-flagged vessels subject to SOLAS would have their Polar Ship Certificates issued by the appropriate flag state. --------------------------------------------------------------------------- \1\ http://www.imo.org/en/MediaCentre/HotTopics/polar/Documents/POLAR%20CODE%20TEXT%20AS%20ADOPTED.pdf. --------------------------------------------------------------------------- This proposed rule would amend 46 CFR part 2, ``Vessel Inspections'', Subpart 2.01, ``Inspecting and Certificating of Vessels'' including Section 2.01-25, ``International Convention for Safety of Life at Sea'' to include the new Polar Ship Certificate. The proposed rule would also amend 46 CFR part 8, ``Vessel Inspection [[Page 83788]] Alternatives'', Subpart C, ``International Convention Certificate Issuance'', Section 8.320, ``Classification Society Authorization to Issue International Certificates'', at paragraph (b) to include the Polar Ship Certificate as one of the certificates that can be issued by a recognized classification society on behalf of the Coast Guard. Affected Population Based on Coast Guard field data and Coast Guard databases such as the Marine Information for Safety and Law Enforcement (MISLE) database, the Coast Guard's Ship Arrival Notification System (SANS), and data from the Coast Guard's Navigation Data Center (NDC), we estimate the total number of U.S. vessels this proposed rule would affect to be about 41 total vessels. This is the number of U.S. vessels that have transited internationally in polar waters, which are generally above and below the 60 degree north and 60 degree south latitudes lines, respectively, over the past 5 years and have made port calls in Alaskan ports over this time period. Of the 41 U.S. vessels that have transited polar waters during the 5-year period, some entered polar waters in the first year and not the following year, but returned in subsequent years. The opposite is also true; some vessels that did not transit polar waters in the first year of the data period did so in the following years of the data period. Recognized classification societies that have been granted delegated authority from the Coast Guard would issue the Polar Ship Certificate, an international convention certificate, on behalf of the Coast Guard for U.S.-flagged vessels that are classed under the authority in 46 CFR 8.320(a). Although multiple classification societies could request authorization to issue the Polar Ship Certificate on behalf of the Coast Guard, for the purpose of this analysis, the Coast Guard assumes one classification society would issue the Polar Ship Certificate to vessel owners and operators on behalf of the Coast Guard for vessels that are classed. Cost Analysis Classification Societies Cost This proposed rule would amend 46 CFR 8.320(b) to enable recognized class societies to request authorization to issue the Polar Ship Certificate on behalf of the Coast Guard. For vessels that are not classed, the Coast Guard would issue the Polar Ship Certificate. There are two cost elements associated with a classification society issuing a Polar Ship Certificate: The cost to review and return a signed copy of the Memorandum of Agreement (MOA) between the recognized classification society and the Coast Guard, and the cost to create the certificate once the MOA is approved by each party. As stated in 46 CFR 8.320(c), the Coast Guard will enter into an agreement with the classification society to issue international convention certificates such as the Polar Ship Certificate. The MOA essentially represents a delegation letter and is a standard document that allows a recognized classification society to issue the Polar Ship Certificate on behalf of the Coast Guard. Based on Coast Guard data from the Office of Design and Engineering Standards, we estimate it would take a recognized classification society 1 hour to review the MOA. A classification and documentation specialist would review the MOA and because there is no equivalent labor category in the Bureau of Labor Statistics' (BLS) Occupational Employment Statistics National Industry-Specific Occupational Employment and Wage Estimates for May 2015, we used the ``Business Operations Specialist, All Other'' (Occupation Code 13-1199) category for Deep Sea, Coastal, and Great Lakes Water Transportation with a North American Industry Classification Code of 483100 as a representative occupation. The mean hourly wage rate for this occupation is $38.63. Since this is an unloaded hourly wage rate, we added a load factor to obtain a loaded hourly wage rate. We used BLS' 2015 Employer Cost for Employee Compensation databases to calculate and apply a load factor of 1.53 to obtain a loaded hourly labor rate of about $59.10 for this occupation.\2\ We also estimate it would take a recognized classification society attorney 1 hour to review the MOA for legal sufficiency. Using the Bureau of Labor Statistics' (BLS) Occupational Employment Statistics National Industry-Specific Occupational Employment and Wage Estimates for May 2015, we used the category ``Lawyers'' (Occupation Code 23-1011) for Deep Sea, Coastal, and Great Lakes Water Transportation with a North American Industry Classification Code of 483100. The mean hourly wage for this occupation is $65.51. Since this is an unloaded hourly wage rate, we apply the same load factor of 1.53 as derived above to obtain a loaded hourly wage rate of about $100.23. --------------------------------------------------------------------------- \2\ Information can be viewed at, http://www.bls.gov/oes/current/naics4_483100.htm. A loaded labor rate is what a company pays per hour to employ a person, not the hourly wage. The loaded labor rate includes the cost of benefits (health insurance, vacation, etc.). The load factor for wages is calculated by dividing total compensation by wages and salaries. For this analysis, we used BLS' Employer Cost for Employee Compensation/Transportation and Materials Moving Occupations, Private Industry Report (Series IDs, CMU2010000520000D and CMU2020000520000D for all workers using the multi-screen data search). Using 2015 Q4 data for the cost of compensation and cost per hour worked, we divide the total compensation amount of $27.46 by the wage and salary amount of $17.91 to obtain the load factor of about 1.53, rounded. See the following Web site, http://data.bls.gov/cgi-bin/dsrv. Multiplying 1.53 by $38.63, we obtain a loaded hourly wage rate of about $59.10. --------------------------------------------------------------------------- We estimate the one-time cost of the proposed rule to the classification society to review the MOA to be about $162.33, undiscounted, which includes a $3 postage cost to mail the signed MOA to the Coast Guard for approval and signature [($59.10 x 1 hour) + ($100.23 x 1 hour) + $3 for postage]. Based on a recognized classification society estimate, it would take approximately 40 hours to create the Polar Ship Certificate once the MOA is approved. As with the MOA, a classification and documentation specialist would create the certificate. We again used the ``Business Operations Specialist, All Other'' as a representative occupation. We estimate the one-time labor cost for a documentation specialist to create the certificate to be about $2,364.00 (40 hours \3\ x $59.10/hour), undiscounted. Since the certificate is presented to a vessel owner or operator during the normal course of a vessel survey, we did not estimate a cost for this action. --------------------------------------------------------------------------- \3\ Based on estimate provided by a recognized class society to USCG. --------------------------------------------------------------------------- We estimate the total undiscounted cost of the proposed rule to a recognized classification society to be about $2,526.33 ($2,364 document development cost + $162.33 MOA review cost). Vessel Cost There are two cost elements associated with vessel owners and operators: The fee a recognized classification society would charge a vessel owner or operator for issuing the certificate for U.S. classed vessels only, and the cost associated with a crewmember posting the certificate onboard a vessel. Based on Coast Guard vessel data, approximately 20 percent, or 8 out of the 41 U.S.-flagged vessels, are not classed by a recognized classification society. The entry into force date for the Polar Code is Jan 1, 2017 but the requirement for ships is to have the certificate by their first renewal or intermediate exam after the entry into force date. This is a phased in approach that will likely [[Page 83789]] spread out the issuing of the certificates over a period of about 3 years. Therefore, the Coast Guard would issue the Polar Ship Certificate to those vessel owners and operators as part of its routine inspection regime. A recognized classification society would issue the Polar Ship Certificate to the remaining 33 vessel owners and operators in the first, second, third, sixth, seventh, and eighth year of the analysis period. The Polar Ship Certificate is valid for a 5-year period and, after this time, the recognized classification society and the Coast Guard would issue a new Polar Ship Certificate to vessel owners and operators, depending upon whether a vessel is classed or not classed. The cost of the reissued Polar Ship Certificate is $100 if a recognized classification society issues the certificate (for 33 classed U.S. vessels); therefore, it would cost each U.S. classed vessel owner and operator $100 after 5 years to renew the certificate, or in the sixth, seventh, and eighth year of the analysis period. We assume a 3-year phase-in period for owners and operators to obtain the certificates. For the purpose of this analysis, we assume 13 U.S. vessels owners and operators (11 classed and 2 unclassed) would obtain a certificate in the first year and 14 (11 classed and 3 unclassed) U.S. vessel owners and operators would obtain one in the second year and third year. For reissuance, we again assume the same 13 vessel owners and operators would obtain a certificate in the sixth year and the same 14 vessel owners and operators would obtain one in the seventh and eighth year each; we divided the population accordingly to obtain even values. Vessel owners and operators would be required to post the certificate in a conspicuous area onboard the vessel with other applicable operating certificates. Based on the Office of Management and Budget's (OMB) approved collection of information (COI) entitled ``Various International Agreement Safety Certificates,'' OMB control number 1625-0017, a crewmember onboard a vessel equivalent to a U.S. Coast Guard cadet would post the Polar Ship Certificate. Using the Coast Guard's Commandant Instruction 7310.1P for loaded hourly wages outside of the Government, the hourly wage rate of a person outside of the Government equivalent to a cadet is $26.00. We estimate it takes a crewmember about 6 minutes, or 0.1 hours, to post the Polar Ship Certificate at a labor cost of about $2.60 per vessel ($26.00 x 0.1 hours). To post the Polar Ship Certificate, we estimate the total initial cost of the proposed rule to 13 U.S. vessel owners and operators to be about $33.80 (13 U.S. classed and unclassed vessels x 0.1 hours x $26.00); regardless of whether the Polar Ship Certificate is issued by a recognized classification society, or by the Coast Guard. Owners and operators of U.S. vessels would incur this cost again in the sixth year because a crewmember would review and post the reissued certificate for the same 13 vessels. We estimate the initial cost of the proposed rule to vessel owners and operators to be about $1,133.80 in the first year (11 classed vessels x $100) + (11 classed vessels x $2.60 to post the certificate) + two unclassed vessels x $2.60 to post the certificate). Because vessel owners and operators would be required to carry the Polar Ship Certificate beginning January 2017, the cost for the renewed certificate in the sixth year (or 5 years after the initial year) would again be $1,133.80 for these 13 vessels. In the second and third and seventh and eighth year, we estimate the cost for 14 U.S. vessel owners and operators to obtain and post a Polar Ship Certificate to be about $1,136.40 [(11 classed vessels x $100) + (11 classed vessels x $2.60 to post the certificate) + three unclassed vessels in each of these years x $2.60 each year to post the certificate]. See Table 1 below. Table 1--Summary of Classification Society and Vessel Owners and Operators Costs [Undiscounted] ---------------------------------------------------------------------------------------------------------------- Cost item Unit cost Labor rate Hours Total cost ---------------------------------------------------------------------------------------------------------------- Classification Society .............. $59.10............. 40 $2,364 (incurred in year Certificate Creation. one). Classification Society Review of .............. $100.23 (Attorney). 1 $162.33 (incurred in MOA. year one and includes $3 postage). .............. $59.10 (Business 1 Operations Specialist). Certificate Fee Charged to Vessel $100 ................... .............. $1,100 (incurred in Owners and Operators. years one to three and six to eight); $3,300 for 33 classed vessels in years one to three and six to eight. Vessel Crewmember Reviews and .............. $26................ 0.1 $2.60 (incurred in year Posts Certificate. one to three and six to eight); $33.80 in year one and six and $36.40 in years two and three; seven and eight. ------------------------------------------------------------------------------ Total Undiscounted Cost .............. ................... .............. $3,660.13. (Initial year). ---------------------------------------------------------------------------------------------------------------- We estimate the total 10-year undiscounted cost to be $6,813.20 for all 41 U.S. vessel owners and operators ($1,133.80 in the first and sixth year + $1,136.40 in the second, third, seventh and eighth years of the analysis period). See Table 2 below. We estimate the initial undiscounted cost of the proposed rule to a recognized classification society and to 13 (11 classed and 2 unclassed vessels) U.S. vessel owners and operators to be about $3,660.13 ($2,364 for the classification society to create the certificate + $162.33 for the classification society to review the MOA + $1,100 fee charged by a classification society to issue the certificate to the 11 classed vessel owners and operators + $33.80 for crewmembers of the 13 classed and unclassed vessels to post the certificate). We estimate the total 10-year undiscounted cost of the proposed rule to industry to be about $9,339.53 ($3,660.13 in the first year + $1,136.40 in the second, third, seventh, and eighth years + $1,133.80 in the sixth year). See Table 2 below. We estimate the 10-year present value, or discounted cost of the proposed rule to industry to be between $7,465.49 and $8,435.28 at 7 and 3 percent discount rates, respectively. We estimate the annualized cost to be between $1,062.92 and $988.87 at 7 and [[Page 83790]] 3 percent discount rates, respectively. See Table 2 below. Table 2--Total Costs of the Proposed Rule to Industry [10-Year period of analysis, 7 and 3 percent discount rates, 2016 dollars] ---------------------------------------------------------------------------------------------------------------- Cost Period (undiscounted) 7% 3% ---------------------------------------------------------------------------------------------------------------- 1......................................................... $3,660.13 $3,420.68 $3,553.52 2......................................................... 1,136.40 992.58 1,071.17 3......................................................... 1,136.40 927.64 1,039.97 4......................................................... ................ ................ ................ 5......................................................... ................ ................ ................ 6......................................................... 1,133.80 755.50 949.54 7......................................................... 1,136.40 707.69 924.00 8......................................................... 1,136.40 661.40 897.08 9......................................................... ................ ................ ................ 10........................................................ ................ ................ ................ ----------------------------------------------------- Total................................................. 9339.53 7,465.49 8,435.28 ---------------------------------------------------------------------------------------------------------------- Annualized................................................ ................ 1,062.92 988.87 ---------------------------------------------------------------------------------------------------------------- Note: Totals may not sum due to independent rounding. Government Costs There are 3 cost elements associated with this proposed rule for the Coast Guard: A one-time cost of creating the certificate and issuing (in the initial year, second, third, sixth, seventh, and eighth year) the Polar Ship Certificate to a vessel owner or operator if a vessel is not classed by a class society, reviewing the certificate onboard a vessel as part of the Coast Guard's routine inspection regime, and a one-time cost of creating and sending the delegation letter or MOA to a classification society for signature. For the eight U.S. vessels that are not classed by a recognized classification society, the Coast Guard would issue the Polar Ship Certificate in the first through the third year and the sixth through the eighth year. Because of the phase-in period, we divided the eight vessels evenly over three years to arrive at two in the first and sixth year and three in the second, third, seventh, and eighth year, with the sixth, seventh, and eighth year being the years when the certificate is reissued. Based on information from personnel in the Coast Guard's Office of Vessel Compliance, we estimate it takes Coast Guard personnel with the average equivalence of a GS-15 about 40 hours to create and review a Polar Ship Certificate at an average loaded hourly wage rate of $109 using the Coast Guard's Commandant Instruction 7310.1P. We estimate the one-time cost for the Coast Guard to create the Polar Ship Certificate to be about $4,360 (40 hours x $109/hour), for the eight U.S. vessels without a classification. Based on an OMB-approved COI (Control Number 1625-0017), we estimate it takes a Coast Guard Officer, the Officer in Charge Marine Inspection (OCMI), or more specifically, a Lieutenant with the rank of an O-3, about 30 minutes, or 0.5 hours per vessel, to review the Polar Ship Certificate for validity and correctness (the Coast Guard issues and reviews the certificate at the same time during its normal inspection regime). Using the Coast Guard's Commandant Instruction 7310.1P for loaded hourly wages, an O-3 has a loaded hourly wage rate of $78.00. Therefore, we estimate the total undiscounted cost to the Government to review the Polar Ship Certificate for all 41 affected vessels to be about $1,599.00 ($78.00 x 41 vessels x 0.5 hours), or about $39.00 per vessel. We use the same methodology as above with owners and operators obtaining certificates over a three-year period (13 in the first and sixth year and 14 in the second, third, seventh and eighth year), with the sixth, seventh and eighth year being the renewal years. Again, 13 inspections (11 classed and 2 unclassed) would take place in the first and sixth year, and 14 (11 classed and 3 unclassed) in second, third, seventh, and eighth year. Therefore, the first year cost to the Government to review the certificate would be about $507.00 (11 classed and 2 unclassed vessels x $39.00). The Government would incur this cost again in the sixth year when the certificate is reissued. In years two, three, seven, and eight, the Government would incur a certificate review cost of about $546.00 (11 classed and 3 unclassed vessels x $39.00) in each of these years. The Coast Guard would also examine the certificates of foreign- flagged vessels that enter U.S. ports in polar waters as part of its routine Port State Control vessel boardings. Because this will take place during routine Coast Guard examinations and for issuing certificates of compliance, the time it takes to perform this task is minimal and as such we do not estimate a cost to the Government. Because this proposed rule would also enable a recognized classification society to issue the Polar Ship Certificate on behalf of the Coast Guard, the Coast Guard and a recognized classification society would enter into an MOA which delegates authority to the classification society and sets forth guidelines for cooperation between the Coast Guard and a classification society with respect to initial and subsequent inspections for certifications and periodic re- inspections or examinations of vessels of the United States, as defined by 46 U.S.C. 2101 (46). Based on information from the Coast Guard's Office of Design and Engineering Standards, Coast Guard personnel with the average equivalence of a GS-15 would prepare the MOA for delivery to a classification society. Again, we used an average loaded hourly labor rate of $109 for a GS-15. We estimate it would take Government personnel about 6.25 hours to prepare and review the MOA. We estimate it would cost about $3 in postage for the Government to send the MOA to the classification society. We estimate the total cost incurred by the Government for the MOA to be about $681.25 plus $3 for postage, or a total cost of $684.25, undiscounted (6.25 hours x $109). Other than the postage cost, other costs incurred are [[Page 83791]] opportunity costs, since personnel would perform this function in the normal course of his or her duties. We estimate the total initial cost to the Government to be about $5,551.25 ($4,360 to create and review the certificate, $507.00 to review the certificates for 11 classed and 2 unclassed U.S. vessels, and $684.25 for the MOA). We estimate the total 10-year undiscounted cost to the Government to be about $8,242.25 ($5,551.25 in the initial year + $546.00 in the second, third, seventh and eighth years + $507.00 in the sixth year). We estimate the 10-year present value, or discounted cost of the proposed rule to the Government, to be between $7,106.31 and $7,703.46, using 7 and 3 percent discount rates, respectively. We estimate the annualized cost to be between $1,011.78 and $903.08, using 7 and 3 percent discount rates, respectively. See Table 3 below. Table 3--Total Costs of the Proposed Rule to the Government [10-Year period of analysis, 7 and 3 percent discount rates, 2016 dollars] ---------------------------------------------------------------------------------------------------------------- Cost Period (undiscounted) 7% 3% ---------------------------------------------------------------------------------------------------------------- 1......................................................... ................ $5,188.08 $5,389.56 2......................................................... ................ 476.90 514.66 3......................................................... ................ 445.70 499.67 4......................................................... ................ ................ ................ 5......................................................... ................ ................ ................ 6......................................................... ................ 337.84 424.60 7......................................................... ................ 340.02 443.95 8......................................................... ................ 317.78 431.02 9......................................................... ................ ................ ................ 10........................................................ ................ ................ ................ ----------------------------------------------------- Total................................................. 8,242.25 7,106.31 7,703.46 ---------------------------------------------------------------------------------------------------------------- Annualized................................................ ................ 1,011.78 903.08 ---------------------------------------------------------------------------------------------------------------- Note: Totals may not sum due to independent rounding. Total Cost of the Proposed Rule to Industry and Government We estimate the total 10-year combined undiscounted cost of the proposed rule to industry and the Government to be about $17,582. We estimate the 10-year present value, or discounted cost of the proposed rule to industry and the Government, to be between $14,572 and $16,139 at 7 and 3 percent discount rates, respectively. We estimate the annualized cost to be between $2,075 and $1,892 using the same discount rates. See Table 4 below. Table 4--Summary of Costs of the Proposed Rule to Industry and Government [10-Year period of analysis, 2016 dollars] ---------------------------------------------------------------------------------------------------------------- Type of cost Industry Government Total cost Annualized ---------------------------------------------------------------------------------------------------------------- Undiscounted............................ $9,339.53 $8,242.25 $17,581.78 ................ 7%...................................... 7,465.49 7,106.31 14,571.80 2,074.70 3%...................................... 8,435.28 7,703.46 16,138.74 1,891.95 ---------------------------------------------------------------------------------------------------------------- Benefits The primary benefit of this proposed rule is to ensure that vessel owners and operators have a valid Polar Ship Certificate onboard the vessel, which shows compliance with applicable SOLAS regulations and requirements. Without a Polar Ship Certificate, a vessel would be subject to deficiencies, detention, denial of entry, or expulsion from the polar waters of other port States. Adherence to SOLAS would ensure vessels are capable of operating in polar waters, and the hazards and adverse weather conditions unique to polar waters. Furthermore, since the United States is a signatory to SOLAS and has a treaty obligation to ensure compliance with SOLAS requirements, this rulemaking would ensure that the United States is compliant with this SOLAS requirement. Alternatives When creating this proposed rule, the Coast Guard considered several alternatives. The previous analysis represents the preferred alternative, which would ensure U.S. vessel owners and operators that operate vessels in polar waters would be compliant with the IMO Polar Code and SOLAS Convention. With the carriage of the Polar Ship Certificate onboard vessels, U.S. vessel owners and operators would be compliant with the SOLAS convention and applicable SOLAS operating requirements when transiting in polar waters. Alternative 1: Preferred Alternative The analysis for this alternative appears in the ``Regulatory Analysis'' section of the preamble of this proposed rule. Alternative 2: No Action Alternative In this alternative, the United States would take no action regarding the issuance of a Polar Ship Certificate and none of the costs itemized in the preferred alternative would be incurred. However, with this alternative, the United States would not be compliant with its international legal obligations as a signatory Government to the SOLAS Convention. Additionally, the lack of appropriate certifications would likely negatively impact U.S.-flagged vessels on international voyages in polar waters of other port States. United States vessels would potentially be subject to deficiencies, detentions, denial of entry, or expulsion from the polar waters of other port states due to the lack of proper certificates. Because the United States would not meet its international treaty obligations in this [[Page 83792]] alternative, the Coast Guard rejects this alternative. Alternative 3: Large Scale Regulatory Implementation of the Polar Code In this alternative, the Coast Guard would implement the entire Polar Code in one regulatory effort. This would create or modify regulations throughout 46 and 33 CFR. The affected vessels, operators, and the Government would also incur the costs and impacts of the implementation of the entire Polar Code from a single regulatory effort. The Coast Guard rejected this alternative because it would greatly delay the issuance of the certificate beyond the January 1, 2017 effective date of the Polar Code. By moving forward with the proposed alternative, U.S. vessel owners and operators who obtain a Polar Ship Certificate would be in compliance with the operating requirements in the SOLAS Convention. Therefore, they would be permitted to transit in polar waters of foreign nations as soon as possible after January 1, 2017, without adverse consequences such as denial of entry, expulsion, or possibly detainment. B. Small Entities Under the Regulatory Flexibility Act (RFA), 5 U.S.C. 601-612, we have considered whether this proposed rule would have a significant economic impact on a substantial number of small entities. The term ``small entities'' comprises small businesses, not-for-profit organizations that are independently owned and operated and are not dominant in their fields, and governmental jurisdictions with populations of less than 50,000. In accordance with the Regulatory Flexibility Act (RFA) (5 U.S.C. 601-612), the Coast Guard prepared this threshold analysis that examines the impacts of the proposed rule on small entities. Based on our analysis of the entities affected by this proposed rule, all of the 41 affected U.S.-flagged vessels are owned by U.S. entities. To determine which entities are small, we compiled the data used in this analysis from publicly available and proprietary sources such as Manta and Cortera, and from the affected entities' Web sites. We used available owner's business information to identify the entities' primary line of business as coded by the North American Industry Classification System (NAICS) to find employee and revenue size information. We used this information to determine whether we should consider a business ``small'' by comparing it to the Small Business Administration's (SBA) ``Table of Small Business Size Standards Matched to North American Industry Classification System Codes.'' In some cases, SBA classifies businesses on a standard either based on the number of employees or annual revenues.\4\ We found that no small government jurisdictions or non-profits own any of the U.S. vessels affected by this proposed rule. --------------------------------------------------------------------------- \4\ Readers can access small entity information online at http://www.sba.gov/size/indextableofsize.html. --------------------------------------------------------------------------- We found that 19 of the 41 (46 percent) affected companies are small entities and the remaining companies are not small, based on SBA's size standards. We found 11 different NAICS codes represent the 19 small entities with the NAICS code 488330, ``Navigational Services to Shipping'', representing 8 of the 19 small entities or 42 percent of them. We estimate the initial cost to each classed vessel owner and operator to be about $102.60 [$1,100/11 classed U.S vessel owners and operators that have their vessels classed by a class society + $28.60 (11 classed vessels x $2.60)/11 (cost for crewmembers of 11 classed U.S. vessel owners and operators to post the certificate divided by the number of U.S. classed vessel owners and operators. Again, in the sixth year, these 11 classed U.S. vessel owners and operators would incur this cost)]. In the second, third, seventh, and eighth year, 11 classed vessel U.S. vessel owners and operators would incur this same cost. The eight U.S. vessel owners who own vessels that are not classed would only incur a cost of $2.60 per vessel in the each of the years described above or the first (two vessels) through the third year (three vessels in the second and third year each) and sixth (the same two vessels as in the first year) through the eighth year (the same three vessels as in the second and third year in the seventh and eighth year each) of the analysis period. Of the 19 small entities, 16 had annual revenue information (the remaining three small entities only had employee information). Of the 16, 12 are classed, which means four (12/3 years for the phase-in period) would incur the $102.60 in the initial year and again in the second and third year and for reissuance of the certificate again in the sixth, seventh, and eighth year of the analysis period. The four that are not classed would only incur the cost of posting the certificate of $2.60 in each year described above (or essentially one in the first year and second year and again in the sixth and seventh year when the certificate is reissued and two in the third year and again in the eighth year when the certificate is reissued). All 16 small entities or 100 percent would have an annual revenue impact of less than 1 percent in the initial year and in the second, third, sixth, seventh, and eighth year of the analysis period. Thus, the estimated impact on the affected entities is not a significant economic impact. Based on the preceding analysis, the Coast Guard certifies under 5 U.S.C. 605(b) that this proposed rule would not have a significant economic impact on a substantial number of small entities. If you think that your business, organization, or governmental jurisdiction qualifies as a small entity and that this rule would have a significant economic impact on it, please submit a comment to the Docket Management Facility at the address under ADDRESSES. In your comment, explain why you think it qualifies and how and to what degree this proposed rule would economically affect it. C. Assistance for Small Entities Under section 213(a) of the Small Business Regulatory Enforcement Fairness Act of 1996, Public Law 104-121, we want to assist small entities in understanding this proposed rule so that they can better evaluate its effects on them and participate in the rulemaking. If the proposed rule would affect your small business, organization, or governmental jurisdiction and you have questions concerning its provisions or options for compliance, please consult CDR Todd Howard using the contact information given in the FOR FURTHER INFORMATION CONTACT section of this proposed rule. The Coast Guard will not retaliate against small entities that question or complain about this rule or any policy or action of the Coast Guard. Small businesses may send comments on the actions of Federal employees who enforce, or otherwise determine compliance with, Federal regulations to the Small Business and Agriculture Regulatory Enforcement Ombudsman and the Regional Small Business Regulatory Fairness Boards. The Ombudsman evaluates these actions annually and rates each agency's responsiveness to small business. If you wish to comment on actions by employees of the Coast Guard, call 1-888-REG-FAIR (1-888-734-3247). D. Collection of Information The Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520) requires that the Coast Guard consider the impact of paperwork and other information collection burdens imposed on the [[Page 83793]] public. According to the 1995 amendments to the Paperwork Reduction Act, an agency may not collect or sponsor the collection of information, nor may it impose an information collection requirement unless it displays a currently valid OMB control number. This action contains proposed amendments to the existing information collection requirements previously approved under OMB Control Number 1625-0017. As defined in 5 CFR 1320.3(c), ``collection of information'' comprises reporting, recordkeeping, monitoring, posting, labeling, and other similar actions. The title and description of the information collections, a description of those who must collect the information, and an estimate of the total annual burden follow. The estimate covers the time for reviewing instructions, searching existing sources of data, gathering and maintaining the data needed, and completing and reviewing the collection. The summary of revised 1625-0017 collection follows: Title: Various International Agreement Safety Certificates. OMB Control Number: 1625-0017. Summary of the Collection of Information: The International Convention for the Safety of Life at Sea (SOLAS) is a product of the International Maritime Organization (IMO), an agency of the United Nations. SOLAS applies to all mechanically propelled cargo and tank vessels of 500 or more gross tons (GT), and to all mechanically propelled passenger vessels carrying more than 12 passengers that engage in international voyages. By IMO's definition, an ``international voyage'' means a voyage from a country to which the Convention applies to a port outside the country, or vice versa. The United States, represented by the U.S. Coast Guard, was a major contributor and proponent of the 1974 Convention (SOLAS 74). President Carter's Executive Order 12234 (September 3, 1980), noted that SOLAS 74 was signed at London on November 1, 1974, proclaimed by the President of the United States on January 28, 1980, and entered into force for the United States on May 25, 1980. SOLAS 1974 currently requires one or more of the following certificates to be carried on onboard certain passenger and cargo ships engaged in international voyages (46 CFR 2.01-25): (1) Passenger Ship Safety Certificate and Record (2) Cargo Ship Safety Construction Certificate (3) Cargo Ship Safety Equipment Certificate and Record (4) Cargo Ship Safety Radio Certificate (issued by Federal Communications Commission (FCC)) (5) Nuclear Passenger Ship Safety Certificate (6) Nuclear Cargo Ship Safety Certificate (7) Safety Management Certificate (8) International Ship Security Certificate (9) High-Speed Craft Safety Certificate The Coast Guard is adding the Polar Ship Certificate to the list of certificates that it can issue. Need for Information: In June of 2015, in resolutions MSC.384(94) and MEPC.264(68), the International Maritime Organization (IMO) adopted the International Code for Ships Operating in Polar Waters (Polar Code). The Polar Code raises the safety standards for commercial ships operating in or transiting through Arctic and Antarctic waters as well as enhances environmental protection for polar waters that include coastal communities in the U.S. Arctic. As a signatory to the International Convention for the Safety of Life at Sea (SOLAS), the United States has a treaty obligation to ensure compliance with SOLAS requirements. All mechanically propelled passenger vessels carrying more than 12 passengers that engage in international voyages and all mechanically propelled cargo vessels of more than 500 gross tons that engage in international voyages within polar waters as defined by the Polar Code would be required to have the Polar Ship Certificate. The Polar Ship Certificate is valid for 5 years. The purpose of this rulemaking is to ensure that marine inspectors could issue certificates required by the Polar Code and that these certificates are being carried on all applicable vessels. Additionally, this rulemaking will add the Polar Ship Certificate to the list of certificates that classification societies could issue on behalf of the Coast Guard-in consideration of hazards and conditions unique to polar waters and a potential increase in traffic in Arctic and Antarctic waters. These additional hazards include navigation in ice and low temperatures, high latitude communications and navigation, remoteness from response resources, and limited hydrographic charting. We calculate the hour burden on an annual basis, which takes into account the reissuance of the certificate every fifth year. The estimated burden is 1/10 of an hour or 6 minutes. About 8 vessels (41 total vessels/5 years) annually equates to 48 minutes or 0.8 hours for the hour burden. Or equivalently, 13 classed and unclassed U.S. vessels (11 classed and 2 unclassed) x 6 minutes in the first and sixth years + 14 classed unclassed U.S vessels (11 classed and 3 unclassed) x 6 minutes in the second, third, seventh and eighth year for a total of 492 minutes divided by 82 vessels (13 in the first and sixth years and 14 in the second, third, seventh, and eighth year of the analysis period. Recall, because vessel owners and operators would have 3 years to obtain a certificate, we divided the population essentially into thirds, 13 in the first and sixth years and 14 in the second, third, and seventh and eighth years). Proposed use of Information: The Polar Ship Certificate attests that the vessel has met applicable requirements of SOLAS to the satisfaction of the U.S. Government. Without the certificate, U.S.- flagged vessels could be detained in foreign ports as being unsafe. Description of the Respondents: Respondents are the owner, agent, Master, operator, or person in charge of a U.S.-flagged vessel that transits in polar waters. Number of Respondents: The existing OMB-approved number of respondents is 413. This proposed rule would not change the number of respondents because the vessel population that would be affected is a subset of the existing number of respondents; this proposed rule is not adding new respondents to this collection. Frequency of Response: The existing OMB-approved number of responses is 912. This proposed rule would increase the number of responses by 14 annually (41 vessels/3-year renewal period) to 926. Burden of Response: The existing OMB-approved burden of response is 6 minutes, or 0.1 hours, or the time it takes for a crewmember of a vessel to post the Polar Ship Certificate onboard the vessel. Estimate of Total Annual Burden: The existing OMB-approved total annual burden is 94 hours. This proposed rule would increase the burden hours annually by one hour. The estimated total annual burden would now be 95 hours annually. As required by 44 U.S.C. 3507(d), we will submit a copy of this proposed rule to OMB for its review of the COI. We ask for public comment on the proposed COI to help us determine how useful the information is; whether it can help us perform our functions better; whether it is readily available elsewhere; how accurate our estimate of the burden of collection is; how valid our methods for determining burden [[Page 83794]] are; how we can improve the quality, usefulness, and clarity of the information; and how we can minimize the burden of collection. If you submit comments on the COI, submit them both to OMB and to the Docket Management Facility where indicated under the ADDRESSES section of this proposed rule, by the date under the DATES section. You need not respond to a COI unless it displays a currently valid control number from OMB. Before the Coast Guard could enforce the COI requirements in this proposed rule, OMB would need to approve the Coast Guard's request to collect this information. E. Federalism A rule has implications for federalism under Executive Order 13132 (``Federalism'') if it has a substantial direct effect on States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government. We have analyzed this proposed rule under Executive Order 13132 and have determined that it is consistent with the fundamental federalism principles and preemption requirements as described in Executive Order 13132. Our analysis is explained below. It is well settled that States may not regulate in categories reserved for regulation by the Coast Guard. It is also well settled that Coast Guard regulations regarding vessel design, construction, alteration, repair, maintenance, operation, equipping, personnel qualification, and manning issued under the authority of 46 U.S.C. 3306, 3703, 7101, and 8101 are within fields foreclosed from regulation by the States. See United States v. Locke, 529 U.S. 89, 90 (2000) (stating ``Congress has left no room for state regulation of these matters.''). This rule adds the Polar Ship Certificate to the list of certificates required, if applicable, by the SOLAS. Additionally, this rule adds this certificate to the list of SOLAS certificates that recognized classification societies are authorized to issue on behalf of the Coast Guard. The issuance of international certificates is within the sole purview of the Coast Guard to regulate pursuant to 46 U.S.C. 3306, 3703, 7101, and 8101; Executive Order 12234; and the principles discussed in Locke. Thus, the regulations are consistent with the principles for federalism and preemption requirements in Executive Order 13132. While it is settled that States may not regulate in categories in which Congress intended the Coast Guard to be the sole source of a vessel's obligations, the Coast Guard recognizes the key role that State and local governments may have in making regulatory determination. Additionally, for rules with federalism implications and preemptive effect, Executive Order 13132 specifically directs agencies to consult with State and local governments during the rulemaking process. If you believe this rule has implications for federalism under Executive Order 13132, please contact the person listed in the FOR FURTHER INFORMATION section of this preamble. F. Unfunded Mandates Reform Act The Unfunded Mandates Reform Act of 1995, 2 U.S.C. 1531-1538, requires Federal agencies to assess the effects of their discretionary regulatory actions. In particular, the Act addresses actions that may result in the expenditure by a State, local, or tribal government, in the aggregate, or by the private sector of $100,000,000 (adjusted for inflation) or more in any one year. Though this proposed rule would not result in such an expenditure, we do discuss the effects of this rule elsewhere in this preamble. G. Taking of Private Property This proposed rule would not cause a taking of private property or otherwise have taking implications under Executive Order 12630 (``Governmental Actions and Interference with Constitutionally Protected Property Rights''). H. Civil Justice Reform This proposed rule meets applicable standards in sections 3(a) and 3(b)(2) of Executive Order 12988, (``Civil Justice Reform''), to minimize litigation, eliminate ambiguity, and reduce burden. I. Protection of Children We have analyzed this proposed rule under Executive Order 13045 (``Protection of Children from Environmental Health Risks and Safety Risks''). This rule is not an economically significant rule and would not create an environmental risk to health or risk to safety that might disproportionately affect children. J. Indian Tribal Governments This proposed rule does not have tribal implications under Executive Order 13175 (``Consultation and Coordination with Indian Tribal Governments''), because it would not have a substantial direct effect on one or more Indian tribes, on the relationship between the Federal Government and Indian tribes, or on the distribution of power and responsibilities between the Federal Government and Indian tribes. K. Energy Effects We have analyzed this proposed rule under Executive Order 13211 (``Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use''). We have determined that it is not a ``significant energy action'' under that order because it is not a ``significant regulatory action'' under Executive Order 12866 and is not likely to have a significant adverse effect on the supply, distribution, or use of energy. L. Technical Standards The National Technology Transfer and Advancement Act, codified as a note to 15 U.S.C. 272, directs agencies to use voluntary consensus standards in their regulatory activities unless the agency provides Congress, through OMB, with an explanation of why using these standards would be inconsistent with applicable law or otherwise impractical. Voluntary consensus standards are technical standards (e.g., specifications of materials, performance, design, or operation; test methods; sampling procedures; and related management systems practices) that are developed or adopted by voluntary consensus standards bodies. This proposed rule does not use technical standards. Therefore, we did not consider the use of voluntary consensus standards. M. Environment We have analyzed this proposed rule under Department of Homeland Security Management Directive 023-01 and Commandant Instruction M16475.lD, which guide the Coast Guard in complying with the National Environmental Policy Act of 1969, 42 U.S.C. 4321-4370f, and have made a preliminary determination that this action is one of a category of actions that do not individually or cumulatively have a significant effect on the human environment. A preliminary environmental analysis checklist supporting this determination is available in the docket where indicated under the ``Public Participation and Request for Comments'' section of this preamble. This proposed rule involves: (1) Adding a Polar Ship Certificate to the list of certificates required, if applicable, by SOLAS; and (2) adding the Polar Ship Certificate to the list of SOLAS certificates that recognized classification societies may issue on behalf of the Coast Guard. These [[Page 83795]] proposed actions constitute editorial or procedural changes concerning vessel documentation requirements (i.e., issuance of Polar Ship Certificates) and the delegation of authority for issuing such certificates. Thus, this proposed rule is likely to be categorically excluded under section 2.B.2 and figure 2-1, paragraphs (34)(a), (b), and (d) of the Instruction. This proposed rule would promote the Coast Guard's maritime safety and environmental protection missions. We seek any comments or information that may lead to the discovery of a significant environmental impact from this proposed rule. List of Subjects 46 CFR Part 2 Marine Safety, Reporting and recordkeeping requirements, Vessels. 46 CFR Part 8 Administrative practice and procedure, Organization and functions (Government agencies), Reporting and recordkeeping requirements, Vessels. For the reasons discussed in the preamble, the Coast Guard proposes to amend 46 CFR parts 2 and 8 as follows: Title 46--Shipping PART 2--VESSEL INSPECTIONS 0 1. The authority citation for 46 CFR part 2 continues to read as follows: Authority: Sec. 622, Pub. L. 111-281; 33 U.S.C. 1903; 43 U.S.C. 1333; 46 U.S.C. 2103, 2110, 3306, 3703; E.O. 12234, 45 FR 58801, 3 CFR, 1980 Comp., p. 277, sec. 1-105; Department of Homeland Security Delegation No. 0170.1(II)(77), (90), (92)(a), (92)(b). Sec. 2.01-6 [Amended] 0 2. In Sec. 2.01-6(a)(1), after the words ``passengers in U.S. ports'' and before the words ``holds a valid'', remove the word ``and''; and after the text ``Passenger Ship Safety Certificate'', add the text ``, and, if applicable, holds a valid Polar Ship Certificate''. 0 3. Amend Sec. 2.01-25 by adding paragraphs (a)(1)(x) and (a)(2)(x) to read as follows: Sec. 2.01-25 International Convention for Safety of Life at Sea, 1974. (a) * * * (1) * * * (x) Polar Ship Certificate. (2) * * * (x) Polar Ship Certificate. * * * * * PART 8--VESSEL INSPECTION ALTERNATIVES 0 4. The authority citation for 46 CFR part 8 continues to read as follows: Authority: 33 U.S.C. 1903, 1904, 3803 and 3821; 46 U.S.C. 3103, 3306, 3316, and 3703; Department of Homeland Security Delegation No. 0170.1 and Aug. 8, 2011 Delegation of Authority, Anti-Fouling Systems. 0 5. Amend Sec. 8.320 as follows: 0 a. In paragraph (b)(13), remove the word ``and''; 0 b. In paragraph (b)(14), remove the text ``.''; and add, in its place, the text ``; and''; and 0 c. Add new paragraph (b)(15) to read as follows: Sec. 8.320 Classification society authorization to issue international certificates. * * * * * (b) * * * (15) Polar Ship Certificate. * * * * * Dated: November 16, 2016. F.J. Sturm, Acting Director, Commercial Regulations and Standards, U.S. Coast Guard. [FR Doc. 2016-27989 Filed 11-21-16; 8:45 am] BILLING CODE 9110-04-P
![83786 Federal Register / Vol. 81, No. 225 / Tuesday, November 22, 2016 / Proposed Rules
Dated: November 10, 2016. information discussed in section V.D. of in the FOR FURTHER INFORMATION
Andrew M. Slavitt, this preamble both to the Coast Guard’s CONTACT section of this document for
Acting Administrator, Centers for Medicare docket and to the Office of Information alternate instructions. Documents
& Medicaid Services. and Regulatory Affairs (OIRA) in the mentioned in this notice and all public
Dated: November 10, 2016. White House Office of Management and comments, are in our online docket at
Sylvia M. Burwell, Budget. OIRA submissions can use one http://www.regulations.gov and can be
Secretary, Department of Health and Human of the listed methods: viewed by following that Web site’s
Services. • Email (preferred)—oira_ instructions. Additionally, if you go to
[FR Doc. 2016–28024 Filed 11–18–16; 11:15 am] submission@omb.eop.gov (include the the online docket and sign up for email
BILLING CODE 4120–01–P
docket number and ‘‘Attention: Desk alerts, you will be notified when
Officer for Coast Guard, DHS’’ in the comments are posted or a final rule is
subject line of the email); published.
• Fax—202–395–6566; or We accept anonymous comments. All
DEPARTMENT OF HOMELAND • Mail—Office of Information and
SECURITY comments received will be posted
Regulatory Affairs, Office of without change to http://
Coast Guard Management and Budget, 725 17th www.regulations.gov and will include
Street NW., Washington, DC 20503, any personal information you have
46 CFR Parts 2 and 8 ATTN: Desk Officer, U.S. Coast Guard. provided. For more about privacy and
FOR FURTHER INFORMATION CONTACT: For the docket, you may review a Privacy
[Docket No. USCG–2016–0880] information about this document call or Act notice regarding the Federal Docket
RIN 1625–AC35 email CDR Todd Howard, Systems Management System in the March 24,
Engineering Division (CG–ENG–3), 2005, issue of the Federal Register (70
Adding the Polar Ship Certificate to the Coast Guard; telephone 202–372–1375, FR 15086).
List of SOLAS Certificates and email Todd.M.Howard@uscg.mil. We are not planning to hold a public
Certificates Issued by Recognized SUPPLEMENTARY INFORMATION: meeting but may do so if public
Classification Societies comments indicate a meeting would be
Table of Contents for Preamble helpful. We would issue a separate
AGENCY: Coast Guard, DHS.
I. Public Participation and Request for Federal Register notice to announce the
ACTION: Notice of proposed rulemaking. Comments date, time, and location of that meeting.
SUMMARY: This proposed rule would add A. Submitting Comments
B. Viewing Comments and Documents II. Abbreviations
a new Polar Ship Certificate to the list C. Privacy Act
of existing certificates required to be BLS Bureau of Labor Statistics
D. Public Meeting COI Collection of Information
carried on board all U.S. and foreign- II. Abbreviations DHS Department of Homeland Security
flagged vessels subject to the III. Basis, Purpose, and Background FR Federal Register
International Convention for Safety of IV. Discussion of Proposed Rule IMO International Maritime Organization
Life at Sea (SOLAS) and operating in V. Regulatory Analyses MARPOL International Convention for the
Arctic and Antarctic waters, generally A. Regulatory Planning and Review Prevention of Pollution from Ships, 1974
above 60 degrees north latitude and B. Small Entities MEPC Marine Environment Protection
C. Assistance for Small Entities
below 60 degrees south latitude lines. Committee
D. Collection of Information
Additionally, the Coast Guard proposes MOA Memorandum of Agreement
E. Federalism
to add this certificate to the list of MSC Maritime Safety Committee
F. Unfunded Mandates Reform Act
SOLAS certificates that recognized NAICS North American Industry
G. Taking of Private Property
Classification System
classification societies are authorized to H. Civil Justice Reform
OMB Office of Management and Budget
issue on behalf of the Coast Guard. The I. Protection of Children
Polar Code International Code for Ships
proposed rule would apply to J. Indian Tribal Governments
Operating in Polar Waters
commercial cargo ships greater than 500 K. Energy Effects
RA Regulatory Assessment
L. Technical Standards
gross tons engaging in international M. Environment SBA Small Business Administration
voyages, and passenger ships carrying SOLAS International Convention for the
more than 12 passengers engaging in I. Public Participation and Request for Safety of Life at Sea
international voyages, when these ships Comments STCW International Convention on
operate within polar waters as defined Standards of Training, Certification, and
We view public participation as Watchkeeping for Seafarers
by the Polar Code. essential to effective rulemaking, and § Section Symbol
DATES: Comments and related material will consider all comments and material U.S.C. United States Code
must be submitted to the online docket received during the comment period.
via http://www.regulations.gov by Your comment can help shape the III. Basis, Purpose, and Background
December 22, 2016. outcome of this rulemaking. If you In 2014 and 2015, in resolutions
ADDRESSES: You may submit comments submit a comment, please include the MSC.384(94) and MEPC.264(68),
identified by docket number USCG– docket number for this rulemaking, respectively, the International Maritime
2016–0880 using the Federal indicate the specific section of this Organization (IMO) adopted the safety
eRulemaking Portal at http:// document to which each comment and environmental provisions of the
sradovich on DSK3GMQ082PROD with PROPOSALS
www.regulations.gov. See the ‘‘Public applies, and provide a reason for each International Code for Ships Operating
Participation and Request for suggestion or recommendation. in Polar Waters (Polar Code). The Polar
Comments’’ portion of the We encourage you to submit Code adds requirements to existing IMO
SUPPLEMENTARY INFORMATION section for comments through the Federal Conventions—the International
further instructions on submitting eRulemaking Portal at http:// Convention for the Safety of Life at Sea
comments. www.regulations.gov. If your material (SOLAS), the International Convention
Collection of Information: You must cannot be submitted using http:// for the Prevention of Pollution from
submit comments on the collection of www.regulations.gov, contact the person Ships (MARPOL), and the International
VerDate Sep<11>2014 16:39 Nov 21, 2016 Jkt 241001 PO 00000 Frm 00069 Fmt 4702 Sfmt 4702 E:\FR\FM\22NOP1.SGM 22NOP1](https://thefederalregister.org/doc/81_FR_84011/page/1.svg)
![83788 Federal Register / Vol. 81, No. 225 / Tuesday, November 22, 2016 / Proposed Rules
Alternatives’’, Subpart C, ‘‘International to review and return a signed copy of Occupational Employment and Wage
Convention Certificate Issuance’’, the Memorandum of Agreement (MOA) Estimates for May 2015, we used the
Section 8.320, ‘‘Classification Society between the recognized classification category ‘‘Lawyers’’ (Occupation Code
Authorization to Issue International society and the Coast Guard, and the 23–1011) for Deep Sea, Coastal, and
Certificates’’, at paragraph (b) to include cost to create the certificate once the Great Lakes Water Transportation with
the Polar Ship Certificate as one of the MOA is approved by each party. As a North American Industry
certificates that can be issued by a stated in 46 CFR 8.320(c), the Coast Classification Code of 483100. The
recognized classification society on Guard will enter into an agreement with mean hourly wage for this occupation is
behalf of the Coast Guard. the classification society to issue $65.51. Since this is an unloaded hourly
international convention certificates wage rate, we apply the same load factor
Affected Population such as the Polar Ship Certificate. The of 1.53 as derived above to obtain a
Based on Coast Guard field data and MOA essentially represents a delegation loaded hourly wage rate of about
Coast Guard databases such as the letter and is a standard document that $100.23.
Marine Information for Safety and Law allows a recognized classification We estimate the one-time cost of the
Enforcement (MISLE) database, the society to issue the Polar Ship proposed rule to the classification
Coast Guard’s Ship Arrival Notification Certificate on behalf of the Coast Guard. society to review the MOA to be about
System (SANS), and data from the Coast Based on Coast Guard data from the $162.33, undiscounted, which includes
Guard’s Navigation Data Center (NDC), Office of Design and Engineering a $3 postage cost to mail the signed
we estimate the total number of U.S. Standards, we estimate it would take a MOA to the Coast Guard for approval
vessels this proposed rule would affect recognized classification society 1 hour and signature [($59.10 × 1 hour) +
to be about 41 total vessels. This is the to review the MOA. A classification and ($100.23 × 1 hour) + $3 for postage].
number of U.S. vessels that have documentation specialist would review Based on a recognized classification
transited internationally in polar waters, the MOA and because there is no society estimate, it would take
which are generally above and below equivalent labor category in the Bureau approximately 40 hours to create the
the 60 degree north and 60 degree south of Labor Statistics’ (BLS) Occupational Polar Ship Certificate once the MOA is
latitudes lines, respectively, over the Employment Statistics National approved. As with the MOA, a
past 5 years and have made port calls Industry-Specific Occupational classification and documentation
in Alaskan ports over this time period. Employment and Wage Estimates for specialist would create the certificate.
Of the 41 U.S. vessels that have May 2015, we used the ‘‘Business We again used the ‘‘Business Operations
transited polar waters during the 5-year Operations Specialist, All Other’’ Specialist, All Other’’ as a
period, some entered polar waters in the (Occupation Code 13–1199) category for representative occupation. We estimate
first year and not the following year, but Deep Sea, Coastal, and Great Lakes the one-time labor cost for a
returned in subsequent years. The Water Transportation with a North documentation specialist to create the
opposite is also true; some vessels that American Industry Classification Code certificate to be about $2,364.00 (40
did not transit polar waters in the first of 483100 as a representative hours 3 × $59.10/hour), undiscounted.
year of the data period did so in the occupation. The mean hourly wage rate Since the certificate is presented to a
following years of the data period. for this occupation is $38.63. Since this vessel owner or operator during the
Recognized classification societies is an unloaded hourly wage rate, we normal course of a vessel survey, we did
that have been granted delegated added a load factor to obtain a loaded not estimate a cost for this action.
authority from the Coast Guard would hourly wage rate. We used BLS’ 2015 We estimate the total undiscounted
issue the Polar Ship Certificate, an Employer Cost for Employee cost of the proposed rule to a recognized
international convention certificate, on Compensation databases to calculate classification society to be about
behalf of the Coast Guard for U.S.- and apply a load factor of 1.53 to obtain $2,526.33 ($2,364 document
flagged vessels that are classed under a loaded hourly labor rate of about development cost + $162.33 MOA
the authority in 46 CFR 8.320(a). $59.10 for this occupation.2 We also review cost).
Although multiple classification estimate it would take a recognized
classification society attorney 1 hour to Vessel Cost
societies could request authorization to
issue the Polar Ship Certificate on review the MOA for legal sufficiency. There are two cost elements
behalf of the Coast Guard, for the Using the Bureau of Labor Statistics’ associated with vessel owners and
(BLS) Occupational Employment operators: The fee a recognized
purpose of this analysis, the Coast
Statistics National Industry-Specific classification society would charge a
Guard assumes one classification
society would issue the Polar Ship vessel owner or operator for issuing the
2 Information can be viewed at, http://
Certificate to vessel owners and certificate for U.S. classed vessels only,
www.bls.gov/oes/current/naics4_483100.htm. A
operators on behalf of the Coast Guard loaded labor rate is what a company pays per hour
and the cost associated with a
for vessels that are classed. to employ a person, not the hourly wage. The crewmember posting the certificate
loaded labor rate includes the cost of benefits onboard a vessel. Based on Coast Guard
Cost Analysis (health insurance, vacation, etc.). The load factor for vessel data, approximately 20 percent,
wages is calculated by dividing total compensation
Classification Societies Cost by wages and salaries. For this analysis, we used
or 8 out of the 41 U.S.-flagged vessels,
BLS’ Employer Cost for Employee Compensation/ are not classed by a recognized
This proposed rule would amend 46 Transportation and Materials Moving Occupations, classification society.
CFR 8.320(b) to enable recognized class
sradovich on DSK3GMQ082PROD with PROPOSALS
Private Industry Report (Series IDs, The entry into force date for the Polar
societies to request authorization to CMU2010000520000D and CMU2020000520000D
Code is Jan 1, 2017 but the requirement
issue the Polar Ship Certificate on for all workers using the multi-screen data search).
Using 2015 Q4 data for the cost of compensation for ships is to have the certificate by
behalf of the Coast Guard. For vessels and cost per hour worked, we divide the total their first renewal or intermediate exam
that are not classed, the Coast Guard compensation amount of $27.46 by the wage and after the entry into force date. This is a
would issue the Polar Ship Certificate. salary amount of $17.91 to obtain the load factor of
about 1.53, rounded. See the following Web site,
phased in approach that will likely
There are two cost elements http://data.bls.gov/cgi-bin/dsrv. Multiplying 1.53 by
associated with a classification society $38.63, we obtain a loaded hourly wage rate of 3 Based on estimate provided by a recognized
issuing a Polar Ship Certificate: The cost about $59.10. class society to USCG.
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spread out the issuing of the certificates second year and third year. For about $33.80 (13 U.S. classed and
over a period of about 3 years. reissuance, we again assume the same unclassed vessels × 0.1 hours × $26.00);
Therefore, the Coast Guard would issue 13 vessel owners and operators would regardless of whether the Polar Ship
the Polar Ship Certificate to those vessel obtain a certificate in the sixth year and Certificate is issued by a recognized
owners and operators as part of its the same 14 vessel owners and operators classification society, or by the Coast
routine inspection regime. A recognized would obtain one in the seventh and Guard. Owners and operators of U.S.
classification society would issue the eighth year each; we divided the vessels would incur this cost again in
Polar Ship Certificate to the remaining population accordingly to obtain even the sixth year because a crewmember
33 vessel owners and operators in the values. would review and post the reissued
first, second, third, sixth, seventh, and Vessel owners and operators would be
certificate for the same 13 vessels.
eighth year of the analysis period. required to post the certificate in a
The Polar Ship Certificate is valid for conspicuous area onboard the vessel We estimate the initial cost of the
a 5-year period and, after this time, the with other applicable operating proposed rule to vessel owners and
recognized classification society and the certificates. Based on the Office of operators to be about $1,133.80 in the
Coast Guard would issue a new Polar Management and Budget’s (OMB) first year (11 classed vessels × $100) +
Ship Certificate to vessel owners and approved collection of information (11 classed vessels × $2.60 to post the
operators, depending upon whether a (COI) entitled ‘‘Various International certificate) + two unclassed vessels ×
vessel is classed or not classed. The cost Agreement Safety Certificates,’’ OMB $2.60 to post the certificate). Because
of the reissued Polar Ship Certificate is control number 1625–0017, a vessel owners and operators would be
$100 if a recognized classification crewmember onboard a vessel required to carry the Polar Ship
society issues the certificate (for 33 equivalent to a U.S. Coast Guard cadet Certificate beginning January 2017, the
classed U.S. vessels); therefore, it would would post the Polar Ship Certificate. cost for the renewed certificate in the
cost each U.S. classed vessel owner and Using the Coast Guard’s Commandant sixth year (or 5 years after the initial
operator $100 after 5 years to renew the Instruction 7310.1P for loaded hourly
year) would again be $1,133.80 for these
certificate, or in the sixth, seventh, and wages outside of the Government, the
13 vessels. In the second and third and
eighth year of the analysis period. We hourly wage rate of a person outside of
assume a 3-year phase-in period for the Government equivalent to a cadet is seventh and eighth year, we estimate the
owners and operators to obtain the $26.00. We estimate it takes a cost for 14 U.S. vessel owners and
certificates. For the purpose of this crewmember about 6 minutes, or 0.1 operators to obtain and post a Polar
analysis, we assume 13 U.S. vessels hours, to post the Polar Ship Certificate Ship Certificate to be about $1,136.40
owners and operators (11 classed and 2 at a labor cost of about $2.60 per vessel [(11 classed vessels × $100) + (11
unclassed) would obtain a certificate in ($26.00 × 0.1 hours). To post the Polar classed vessels × $2.60 to post the
the first year and 14 (11 classed and 3 Ship Certificate, we estimate the total certificate) + three unclassed vessels in
unclassed) U.S. vessel owners and initial cost of the proposed rule to 13 each of these years × $2.60 each year to
operators would obtain one in the U.S. vessel owners and operators to be post the certificate]. See Table 1 below.
TABLE 1—SUMMARY OF CLASSIFICATION SOCIETY AND VESSEL OWNERS AND OPERATORS COSTS
[Undiscounted]
Cost item Unit cost Labor rate Hours Total cost
Classification Society Cer- ........................ $59.10 .............................. 40 $2,364 (incurred in year one).
tificate Creation.
Classification Society Re- ........................ $100.23 (Attorney) ........... 1 $162.33 (incurred in year one and includes $3 post-
view of MOA. age).
........................ $59.10 (Business Oper- 1
ations Specialist).
Certificate Fee Charged to $100 .......................................... ........................ $1,100 (incurred in years one to three and six to
Vessel Owners and Op- eight); $3,300 for 33 classed vessels in years one
erators. to three and six to eight.
Vessel Crewmember Re- ........................ $26 ................................... 0.1 $2.60 (incurred in year one to three and six to
views and Posts Certifi- eight); $33.80 in year one and six and $36.40 in
cate. years two and three; seven and eight.
Total Undiscounted ........................ .......................................... ........................ $3,660.13.
Cost (Initial year).
We estimate the total 10-year $3,660.13 ($2,364 for the classification ($3,660.13 in the first year + $1,136.40
undiscounted cost to be $6,813.20 for all society to create the certificate + in the second, third, seventh, and eighth
41 U.S. vessel owners and operators $162.33 for the classification society to years + $1,133.80 in the sixth year). See
($1,133.80 in the first and sixth year + review the MOA + $1,100 fee charged Table 2 below.
sradovich on DSK3GMQ082PROD with PROPOSALS
$1,136.40 in the second, third, seventh by a classification society to issue the We estimate the 10-year present
and eighth years of the analysis period). certificate to the 11 classed vessel value, or discounted cost of the
See Table 2 below. owners and operators + $33.80 for
proposed rule to industry to be between
We estimate the initial undiscounted crewmembers of the 13 classed and
$7,465.49 and $8,435.28 at 7 and 3
cost of the proposed rule to a recognized unclassed vessels to post the certificate).
percent discount rates, respectively. We
classification society and to 13 (11 We estimate the total 10-year
classed and 2 unclassed vessels) U.S. undiscounted cost of the proposed rule estimate the annualized cost to be
vessel owners and operators to be about to industry to be about $9,339.53 between $1,062.92 and $988.87 at 7 and
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![83790 Federal Register / Vol. 81, No. 225 / Tuesday, November 22, 2016 / Proposed Rules
3 percent discount rates, respectively.
See Table 2 below.
TABLE 2—TOTAL COSTS OF THE PROPOSED RULE TO INDUSTRY
[10-Year period of analysis, 7 and 3 percent discount rates, 2016 dollars]
Cost
Period 7% 3%
(undiscounted)
1 ....................................................................................................................................... $3,660.13 $3,420.68 $3,553.52
2 ....................................................................................................................................... 1,136.40 992.58 1,071.17
3 ....................................................................................................................................... 1,136.40 927.64 1,039.97
4 ....................................................................................................................................... ............................ ............................ ............................
5 ....................................................................................................................................... ............................ ............................ ............................
6 ....................................................................................................................................... 1,133.80 755.50 949.54
7 ....................................................................................................................................... 1,136.40 707.69 924.00
8 ....................................................................................................................................... 1,136.40 661.40 897.08
9 ....................................................................................................................................... ............................ ............................ ............................
10 ..................................................................................................................................... ............................ ............................ ............................
Total .......................................................................................................................... 9339.53 7,465.49 8,435.28
Annualized ....................................................................................................................... ............................ 1,062.92 988.87
Note: Totals may not sum due to independent rounding.
Government Costs estimate it takes a Coast Guard Officer, that enter U.S. ports in polar waters as
There are 3 cost elements associated the Officer in Charge Marine Inspection part of its routine Port State Control
with this proposed rule for the Coast (OCMI), or more specifically, a vessel boardings. Because this will take
Guard: A one-time cost of creating the Lieutenant with the rank of an O–3, place during routine Coast Guard
certificate and issuing (in the initial about 30 minutes, or 0.5 hours per examinations and for issuing certificates
year, second, third, sixth, seventh, and vessel, to review the Polar Ship of compliance, the time it takes to
eighth year) the Polar Ship Certificate to Certificate for validity and correctness perform this task is minimal and as such
a vessel owner or operator if a vessel is (the Coast Guard issues and reviews the we do not estimate a cost to the
not classed by a class society, reviewing certificate at the same time during its Government.
the certificate onboard a vessel as part normal inspection regime). Using the Because this proposed rule would
of the Coast Guard’s routine inspection Coast Guard’s Commandant Instruction also enable a recognized classification
regime, and a one-time cost of creating 7310.1P for loaded hourly wages, an O– society to issue the Polar Ship
and sending the delegation letter or 3 has a loaded hourly wage rate of Certificate on behalf of the Coast Guard,
MOA to a classification society for $78.00. Therefore, we estimate the total the Coast Guard and a recognized
signature. undiscounted cost to the Government to classification society would enter into
For the eight U.S. vessels that are not review the Polar Ship Certificate for all an MOA which delegates authority to
classed by a recognized classification 41 affected vessels to be about $1,599.00 the classification society and sets forth
society, the Coast Guard would issue the ($78.00 × 41 vessels × 0.5 hours), or guidelines for cooperation between the
Polar Ship Certificate in the first about $39.00 per vessel. We use the Coast Guard and a classification society
through the third year and the sixth same methodology as above with with respect to initial and subsequent
through the eighth year. Because of the owners and operators obtaining inspections for certifications and
phase-in period, we divided the eight certificates over a three-year period (13 periodic re-inspections or examinations
vessels evenly over three years to arrive in the first and sixth year and 14 in the of vessels of the United States, as
at two in the first and sixth year and second, third, seventh and eighth year), defined by 46 U.S.C. 2101 (46).
three in the second, third, seventh, and with the sixth, seventh and eighth year Based on information from the Coast
eighth year, with the sixth, seventh, and being the renewal years. Again, 13 Guard’s Office of Design and
eighth year being the years when the inspections (11 classed and 2 unclassed) Engineering Standards, Coast Guard
certificate is reissued. would take place in the first and sixth personnel with the average equivalence
Based on information from personnel year, and 14 (11 classed and 3 of a GS–15 would prepare the MOA for
in the Coast Guard’s Office of Vessel unclassed) in second, third, seventh, delivery to a classification society.
Compliance, we estimate it takes Coast and eighth year. Therefore, the first year Again, we used an average loaded
Guard personnel with the average cost to the Government to review the hourly labor rate of $109 for a GS–15.
equivalence of a GS–15 about 40 hours certificate would be about $507.00 (11 We estimate it would take Government
to create and review a Polar Ship classed and 2 unclassed vessels × personnel about 6.25 hours to prepare
Certificate at an average loaded hourly $39.00). The Government would incur and review the MOA. We estimate it
wage rate of $109 using the Coast this cost again in the sixth year when would cost about $3 in postage for the
sradovich on DSK3GMQ082PROD with PROPOSALS
Guard’s Commandant Instruction the certificate is reissued. In years two, Government to send the MOA to the
7310.1P. We estimate the one-time cost three, seven, and eight, the Government classification society.
for the Coast Guard to create the Polar would incur a certificate review cost of We estimate the total cost incurred by
Ship Certificate to be about $4,360 (40 about $546.00 (11 classed and 3 the Government for the MOA to be
hours × $109/hour), for the eight U.S. unclassed vessels × $39.00) in each of about $681.25 plus $3 for postage, or a
vessels without a classification. these years. total cost of $684.25, undiscounted (6.25
Based on an OMB-approved COI The Coast Guard would also examine hours × $109). Other than the postage
(Control Number 1625–0017), we the certificates of foreign-flagged vessels cost, other costs incurred are
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![Federal Register / Vol. 81, No. 225 / Tuesday, November 22, 2016 / Proposed Rules 83791
opportunity costs, since personnel unclassed U.S. vessels, and $684.25 for cost of the proposed rule to the
would perform this function in the the MOA). We estimate the total 10-year Government, to be between $7,106.31
normal course of his or her duties. undiscounted cost to the Government to and $7,703.46, using 7 and 3 percent
We estimate the total initial cost to be about $8,242.25 ($5,551.25 in the discount rates, respectively. We
the Government to be about $5,551.25 initial year + $546.00 in the second, estimate the annualized cost to be
($4,360 to create and review the third, seventh and eighth years + between $1,011.78 and $903.08, using 7
certificate, $507.00 to review the $507.00 in the sixth year). We estimate and 3 percent discount rates,
certificates for 11 classed and 2 the 10-year present value, or discounted respectively. See Table 3 below.
TABLE 3—TOTAL COSTS OF THE PROPOSED RULE TO THE GOVERNMENT
[10-Year period of analysis, 7 and 3 percent discount rates, 2016 dollars]
Cost
Period 7% 3%
(undiscounted)
1 ....................................................................................................................................... ............................ $5,188.08 $5,389.56
2 ....................................................................................................................................... ............................ 476.90 514.66
3 ....................................................................................................................................... ............................ 445.70 499.67
4 ....................................................................................................................................... ............................ ............................ ............................
5 ....................................................................................................................................... ............................ ............................ ............................
6 ....................................................................................................................................... ............................ 337.84 424.60
7 ....................................................................................................................................... ............................ 340.02 443.95
8 ....................................................................................................................................... ............................ 317.78 431.02
9 ....................................................................................................................................... ............................ ............................ ............................
10 ..................................................................................................................................... ............................ ............................ ............................
Total .......................................................................................................................... 8,242.25 7,106.31 7,703.46
Annualized ....................................................................................................................... ............................ 1,011.78 903.08
Note: Totals may not sum due to independent rounding.
Total Cost of the Proposed Rule to proposed rule to industry and the between $14,572 and $16,139 at 7 and
Industry and Government Government to be about $17,582. We 3 percent discount rates, respectively.
estimate the 10-year present value, or We estimate the annualized cost to be
We estimate the total 10-year discounted cost of the proposed rule to between $2,075 and $1,892 using the
combined undiscounted cost of the industry and the Government, to be same discount rates. See Table 4 below.
TABLE 4—SUMMARY OF COSTS OF THE PROPOSED RULE TO INDUSTRY AND GOVERNMENT
[10-Year period of analysis, 2016 dollars]
Type of cost Industry Government Total cost Annualized
Undiscounted ................................................................................... $9,339.53 $8,242.25 $17,581.78 ............................
7% .................................................................................................... 7,465.49 7,106.31 14,571.80 2,074.70
3% .................................................................................................... 8,435.28 7,703.46 16,138.74 1,891.95
Benefits Alternatives Alternative 2: No Action Alternative
The primary benefit of this proposed When creating this proposed rule, the In this alternative, the United States
rule is to ensure that vessel owners and Coast Guard considered several would take no action regarding the
operators have a valid Polar Ship alternatives. The previous analysis issuance of a Polar Ship Certificate and
Certificate onboard the vessel, which represents the preferred alternative, none of the costs itemized in the
shows compliance with applicable which would ensure U.S. vessel owners preferred alternative would be incurred.
SOLAS regulations and requirements. and operators that operate vessels in However, with this alternative, the
Without a Polar Ship Certificate, a polar waters would be compliant with United States would not be compliant
vessel would be subject to deficiencies, the IMO Polar Code and SOLAS with its international legal obligations
detention, denial of entry, or expulsion Convention. With the carriage of the as a signatory Government to the
from the polar waters of other port Polar Ship Certificate onboard vessels, SOLAS Convention. Additionally, the
States. Adherence to SOLAS would U.S. vessel owners and operators would lack of appropriate certifications would
ensure vessels are capable of operating be compliant with the SOLAS likely negatively impact U.S.-flagged
in polar waters, and the hazards and convention and applicable SOLAS vessels on international voyages in polar
sradovich on DSK3GMQ082PROD with PROPOSALS
adverse weather conditions unique to operating requirements when transiting waters of other port States. United
polar waters. Furthermore, since the in polar waters. States vessels would potentially be
United States is a signatory to SOLAS subject to deficiencies, detentions,
and has a treaty obligation to ensure Alternative 1: Preferred Alternative denial of entry, or expulsion from the
compliance with SOLAS requirements, The analysis for this alternative polar waters of other port states due to
this rulemaking would ensure that the appears in the ‘‘Regulatory Analysis’’ the lack of proper certificates. Because
United States is compliant with this section of the preamble of this proposed the United States would not meet its
SOLAS requirement. rule. international treaty obligations in this
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![83792 Federal Register / Vol. 81, No. 225 / Tuesday, November 22, 2016 / Proposed Rules
alternative, the Coast Guard rejects this Administration’s (SBA) ‘‘Table of Small when the certificate is reissued and two
alternative. Business Size Standards Matched to in the third year and again in the eighth
North American Industry Classification year when the certificate is reissued).
Alternative 3: Large Scale Regulatory
System Codes.’’ In some cases, SBA All 16 small entities or 100 percent
Implementation of the Polar Code
classifies businesses on a standard would have an annual revenue impact
In this alternative, the Coast Guard either based on the number of of less than 1 percent in the initial year
would implement the entire Polar Code employees or annual revenues.4 We and in the second, third, sixth, seventh,
in one regulatory effort. This would found that no small government and eighth year of the analysis period.
create or modify regulations throughout jurisdictions or non-profits own any of Thus, the estimated impact on the
46 and 33 CFR. The affected vessels, the U.S. vessels affected by this affected entities is not a significant
operators, and the Government would proposed rule. economic impact.
also incur the costs and impacts of the We found that 19 of the 41 (46 Based on the preceding analysis, the
implementation of the entire Polar Code percent) affected companies are small Coast Guard certifies under 5 U.S.C.
from a single regulatory effort. The entities and the remaining companies 605(b) that this proposed rule would not
Coast Guard rejected this alternative are not small, based on SBA’s size have a significant economic impact on
because it would greatly delay the standards. We found 11 different NAICS a substantial number of small entities. If
issuance of the certificate beyond the codes represent the 19 small entities you think that your business,
January 1, 2017 effective date of the with the NAICS code 488330, organization, or governmental
Polar Code. ‘‘Navigational Services to Shipping’’, jurisdiction qualifies as a small entity
By moving forward with the proposed representing 8 of the 19 small entities or and that this rule would have a
alternative, U.S. vessel owners and 42 percent of them. significant economic impact on it,
operators who obtain a Polar Ship We estimate the initial cost to each please submit a comment to the Docket
Certificate would be in compliance with classed vessel owner and operator to be Management Facility at the address
the operating requirements in the about $102.60 [$1,100/11 classed U.S under ADDRESSES. In your comment,
SOLAS Convention. Therefore, they vessel owners and operators that have explain why you think it qualifies and
would be permitted to transit in polar their vessels classed by a class society how and to what degree this proposed
waters of foreign nations as soon as + $28.60 (11 classed vessels × $2.60)/11 rule would economically affect it.
possible after January 1, 2017, without (cost for crewmembers of 11 classed
adverse consequences such as denial of C. Assistance for Small Entities
U.S. vessel owners and operators to post
entry, expulsion, or possibly the certificate divided by the number of Under section 213(a) of the Small
detainment. U.S. classed vessel owners and Business Regulatory Enforcement
operators. Again, in the sixth year, these Fairness Act of 1996, Public Law 104–
B. Small Entities
11 classed U.S. vessel owners and 121, we want to assist small entities in
Under the Regulatory Flexibility Act operators would incur this cost)]. In the understanding this proposed rule so that
(RFA), 5 U.S.C. 601–612, we have second, third, seventh, and eighth year, they can better evaluate its effects on
considered whether this proposed rule 11 classed vessel U.S. vessel owners and them and participate in the rulemaking.
would have a significant economic operators would incur this same cost. If the proposed rule would affect your
impact on a substantial number of small The eight U.S. vessel owners who own small business, organization, or
entities. The term ‘‘small entities’’ vessels that are not classed would only governmental jurisdiction and you have
comprises small businesses, not-for- incur a cost of $2.60 per vessel in the questions concerning its provisions or
profit organizations that are each of the years described above or the options for compliance, please consult
independently owned and operated and first (two vessels) through the third year CDR Todd Howard using the contact
are not dominant in their fields, and (three vessels in the second and third information given in the FOR FURTHER
governmental jurisdictions with year each) and sixth (the same two INFORMATION CONTACT section of this
populations of less than 50,000. In vessels as in the first year) through the proposed rule. The Coast Guard will not
accordance with the Regulatory eighth year (the same three vessels as in retaliate against small entities that
Flexibility Act (RFA) (5 U.S.C. 601– the second and third year in the seventh question or complain about this rule or
612), the Coast Guard prepared this and eighth year each) of the analysis any policy or action of the Coast Guard.
threshold analysis that examines the period. Small businesses may send comments
impacts of the proposed rule on small Of the 19 small entities, 16 had on the actions of Federal employees
entities. annual revenue information (the who enforce, or otherwise determine
Based on our analysis of the entities remaining three small entities only had compliance with, Federal regulations to
affected by this proposed rule, all of the employee information). Of the 16, 12 are the Small Business and Agriculture
41 affected U.S.-flagged vessels are classed, which means four (12/3 years Regulatory Enforcement Ombudsman
owned by U.S. entities. To determine for the phase-in period) would incur the and the Regional Small Business
which entities are small, we compiled $102.60 in the initial year and again in Regulatory Fairness Boards. The
the data used in this analysis from the second and third year and for Ombudsman evaluates these actions
publicly available and proprietary reissuance of the certificate again in the annually and rates each agency’s
sources such as Manta and Cortera, and sixth, seventh, and eighth year of the responsiveness to small business. If you
from the affected entities’ Web sites. We analysis period. The four that are not wish to comment on actions by
used available owner’s business
sradovich on DSK3GMQ082PROD with PROPOSALS
classed would only incur the cost of employees of the Coast Guard, call 1–
information to identify the entities’ posting the certificate of $2.60 in each 888–REG–FAIR (1–888–734–3247).
primary line of business as coded by the year described above (or essentially one
North American Industry Classification D. Collection of Information
in the first year and second year and
System (NAICS) to find employee and again in the sixth and seventh year The Paperwork Reduction Act of 1995
revenue size information. We used this (44 U.S.C. 3501–3520) requires that the
information to determine whether we 4 Readers can access small entity information Coast Guard consider the impact of
should consider a business ‘‘small’’ by online at http://www.sba.gov/size/ paperwork and other information
comparing it to the Small Business indextableofsize.html. collection burdens imposed on the
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![Federal Register / Vol. 81, No. 225 / Tuesday, November 22, 2016 / Proposed Rules 83795
proposed actions constitute editorial or Authority: 33 U.S.C. 1903, 1904, 3803 and Washington, DC Metropolitan area. The
procedural changes concerning vessel 3821; 46 U.S.C. 3103, 3306, 3316, and 3703; meeting location, agenda and any
documentation requirements (i.e., Department of Homeland Security Delegation additional information will be
issuance of Polar Ship Certificates) and No. 0170.1 and Aug. 8, 2011 Delegation of published on the following pipeline
Authority, Anti-Fouling Systems.
the delegation of authority for issuing advisory committee meeting and
such certificates. Thus, this proposed ■ 5. Amend § 8.320 as follows: registration page at: https://
rule is likely to be categorically ■ a. In paragraph (b)(13), remove the primis.phmsa.dot.gov/meetings/
excluded under section 2.B.2 and figure word ‘‘and’’; MtgHome.mtg?mtg=121.
2–1, paragraphs (34)(a), (b), and (d) of ■ b. In paragraph (b)(14), remove the
text ‘‘.’’; and add, in its place, the text Public Participation
the Instruction. This proposed rule
would promote the Coast Guard’s ‘‘; and’’; and This meeting will be open to the
maritime safety and environmental ■ c. Add new paragraph (b)(15) to read public. Members of the public who wish
protection missions. We seek any as follows: to attend in person are asked to register
comments or information that may lead at: https://primis.phmsa.dot.gov/
§ 8.320 Classification society authorization meetings/MtgHome.mtg?mtg=121 no
to the discovery of a significant to issue international certificates.
environmental impact from this later than December 1, 2016, in order to
* * * * * facilitate entry and guarantee seating.
proposed rule.
(b) * * * Members of the public who attend in
List of Subjects (15) Polar Ship Certificate. person will also be provided an
46 CFR Part 2 * * * * * opportunity to make a statement during
Dated: November 16, 2016. the meeting.
Marine Safety, Reporting and Written comments: Persons who wish
recordkeeping requirements, Vessels. F.J. Sturm,
to submit written comments on the
Acting Director, Commercial Regulations and
46 CFR Part 8 Standards, U.S. Coast Guard. meeting may be submitted to the docket
Administrative practice and in the following ways:
[FR Doc. 2016–27989 Filed 11–21–16; 8:45 am]
procedure, Organization and functions E-Gov Web site: http://
BILLING CODE 9110–04–P
(Government agencies), Reporting and www.regulations.gov. This site allows
recordkeeping requirements, Vessels. the public to enter comments on any
Federal Register notice issued by any
For the reasons discussed in the DEPARTMENT OF TRANSPORTATION agency.
preamble, the Coast Guard proposes to Fax: 1–202–493–2251.
amend 46 CFR parts 2 and 8 as follows: Pipeline and Hazardous Materials Mail: Docket Management Facility;
Safety Administration U.S. Department of Transportation
Title 46—Shipping
(DOT), 1200 New Jersey Avenue SE.,
PART 2—VESSEL INSPECTIONS 49 CFR Part 192 West Building, Room W12–140,
[Docket No. PHMSA–2016–0136] Washington, DC 20590–0001.
■ 1. The authority citation for 46 CFR Hand Delivery: Room W12–140 on the
part 2 continues to read as follows: Pipeline Safety: Meeting of the Gas ground level of the DOT West Building,
Authority: Sec. 622, Pub. L. 111–281; 33 Pipeline Safety Advisory Committee 1200 New Jersey Avenue SE.,
U.S.C. 1903; 43 U.S.C. 1333; 46 U.S.C. 2103, Washington, DC, between 9 a.m. and 5
2110, 3306, 3703; E.O. 12234, 45 FR 58801, AGENCY: Pipeline and Hazardous p.m., Monday through Friday, except on
3 CFR, 1980 Comp., p. 277, sec. 1–105; Materials Safety Administration Federal holidays.
Department of Homeland Security Delegation (PHMSA), DOT. Instructions: Identify the docket
No. 0170.1(II)(77), (90), (92)(a), (92)(b). ACTION: Notice of advisory committee number PHMSA–2016–0136 at the
§ 2.01–6 [Amended] meeting. beginning of your comments. Note that
■ 2. In § 2.01–6(a)(1), after the words all comments received will be posted
SUMMARY: This notice announces a without change to http://
‘‘passengers in U.S. ports’’ and before public meeting of the Technical
the words ‘‘holds a valid’’, remove the www.regulations.gov, including any
Pipeline Safety Standards Committee, personal information provided. Anyone
word ‘‘and’’; and after the text also known as the Gas Pipeline
‘‘Passenger Ship Safety Certificate’’, add can search the electronic form of all
Advisory Committee (GPAC). The GPAC comments received into any of our
the text ‘‘, and, if applicable, holds a will meet to discuss a proposed
valid Polar Ship Certificate’’. dockets by the name of the individual
rulemaking to address regulatory submitting the comment (or signing the
■ 3. Amend § 2.01–25 by adding
requirements for onshore gas comment, if submitted on behalf of an
paragraphs (a)(1)(x) and (a)(2)(x) to read transmission and gathering pipelines.
as follows: association, business, labor union, etc.).
DATES: The committee will meet on Therefore, consider reviewing DOT’s
§ 2.01–25 International Convention for Wednesday, December 7, 2016, from complete Privacy Act Statement in the
Safety of Life at Sea, 1974. 8:30 a.m. to 5 p.m. and on Thursday, Federal Register published on April 11,
(a) * * * December 8, 2016, from 8:30 a.m. to 5 2000, (65 FR 19477) or view the Privacy
(1) * * * p.m., EST. Notice at http://www.regulations.gov
(x) Polar Ship Certificate. The meetings will not be web cast; before submitting any such comments.
sradovich on DSK3GMQ082PROD with PROPOSALS
(2) * * * however, presentations will be available Docket: For access to the docket or to
(x) Polar Ship Certificate. on the meeting Web site and posted on read background documents or
* * * * * the E-Gov Web site: http:// comments, go to http://
www.regulations.gov under docket www.regulations.gov at any time or to
PART 8—VESSEL INSPECTION number PHMSA–2016–0136 within 30 Room W12–140 on the ground level of
ALTERNATIVES days following the meeting. the DOT West Building, 1200 New
■ 4. The authority citation for 46 CFR ADDRESSES: The meeting will be held at Jersey Avenue SE., Washington, DC,
part 8 continues to read as follows: a location yet to be determined in the between 9:00 a.m. and 5:00 p.m.,
VerDate Sep<11>2014 16:39 Nov 21, 2016 Jkt 241001 PO 00000 Frm 00078 Fmt 4702 Sfmt 4702 E:\FR\FM\22NOP1.SGM 22NOP1](https://thefederalregister.org/doc/81_FR_84011/page/10.svg)
Document Created: 2018-02-14 08:29:14
Document Modified: 2018-02-14 08:29:14
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Proposed Rules | |
| Action | Notice of proposed rulemaking. | |
| Dates | Comments and related material must be submitted to the online docket via http://www.regulations.gov by December 22, 2016. | |
| Contact | For information about this document call or email CDR Todd Howard, Systems Engineering Division (CG-ENG-3), Coast Guard; telephone 202-372-1375, email [email protected] | |
| FR Citation | 81 FR 83786 | |
| RIN Number | 1625-AC35 | |
| CFR Citation | 46
CFR
2 46 CFR 8 | |
| CFR Associated | Marine Safety; Reporting and Recordkeeping Requirements; Vessels; Administrative Practice and Procedure and Organization and Functions (government Agencies) |
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