67526 Federal Register / Vol. 62, No. 247 / Wednesday, December 24, 1997 / Rules and Regulations

DEPARTMENT OF TRANSPORTATION

Coast Guard

33 CFR Part 151

46 CFR Parts 1, 8, 31, 69, 71, 91, 107,

153, and 154

[CGD 95–010]

RIN 2115–AF11

Alternate Compliance via Recognized

Classification Society and U.S.

Supplement to Rules

AGENCY: Coast Guard, DOT.

ACTION: Final rule.

SUMMARY: The Coast Guard is issuing

regulations to provide owners of U.S.

tank vessels, passenger vessels, cargo

vessels, miscellaneous vessels and

mobile offshore drilling units an

alternative method to fulfill the

requirements for vessel design,

inspection and certification. Under this

final rule, the Coast Guard can issue a

certificate of inspection based upon

reports by a recognized, authorized

classification society that the vessel

complies with the International

Convention for the Safety of Life at Sea

(SOLAS), 1974, as amended, the

International Convention for the

Prevention of Pollution from Ships,

1973, as modified by the Protocol of

1978 relating thereto (MARPOL 73/78),

other applicable international

conventions, classification society rules

and other specified requirements. This

new procedure will reduce the burden

on vessel owners and operators by

establishing an alternative to the current

Coast Guard inspection system that

results in plan reviews and inspections

by the vessel’s classification society as

well as by the Coast Guard.

DATES: This final rule is effective

January 23, 1998. Section 8.440 applied

to existing vessels as of July 31, 1997.

The incorporation by reference of

certain publications listed in the rule is

approved by the Director of the Federal

Register on January 23, 1998.

ADDRESSES: Documents as indicated in

this preamble are available for

inspection or copying at the office of the

Executive Secretary, Marine Safety

Council (G–LRA/3406), U.S. Coast

Guard Headquarters, 2100 Second Street

SW., room 3406, Washington, DC

20593–0001, between 9:30 a.m. and 2

p.m., Monday through Friday, except

Federal holidays. The telephone number

is 202–267–1477.

FOR FURTHER INFORMATION CONTACT:

LCDR Daniel Pippenger, Marine Safety

and Environmental Protection (G–MSE–

1), telephone (202) 267–2997, fax (202)

267–4816.

SUPPLEMENTARY INFORMATION:

Regulatory History

On December 27, 1996, the Coast

Guard published an interim rule

entitled ‘‘Vessel Inspection Alternatives;

Classification Procedures’’ in the

Federal Register (61 FR 68510). The

Coast Guard received 17 letters

commenting on the interim rule. No

public hearing was requested, and none

was held.

Background and Purpose

On October 4, 1994, the Coast Guard

published a notice of proposed

rulemaking (NPRM) entitled ‘‘Alternate

Inspection Compliance Programs for the

U.S. Maritime Industry’’ in the Federal

Register (59 FR 50537). In the comments

submitted in response to this NPRM,

members of the U.S. maritime industry

noted the continuing economic pressure

on the U.S. oceangoing merchant fleet

and commercial shipbuilding industry.

Additional comments were submitted

calling for reduction of the cost

disadvantage attributed to Coast Guard

inspection and certification of U.S.

merchant vessels in order to improve

the international competitiveness of the

U.S. merchant fleet.

In order to address these concerns, the

Coast Guard sought a means to alleviate

the cost burdens on the maritime

industry that resulted from the Coast

Guard inspection program. The Coast

Guard has had authority under 46

U.S.C. § 3116 to rely on reports,

documents and certificates issued by the

American Bureau of Shipping (ABS) in

carrying out its responsibilities for

safety of U.S. merchant vessels and to

delegate to ABS the inspection or

examination of these vessels. The Coast

Guard had in fact delegated to ABS the

authority to issue certain certificates

required by international conventions,

such as the International Convention for

the Safety of Life at Sea (SOLAS) Cargo

Ship Safety Construction Certificate.

Compliance with these standards is

required for oceangoing vessels, i.e.

vessels trading in foreign countries.

Additionally, insurance companies

require that, before a vessel is insured,

it be classed. This means that a

classification society must survey a

vessel for compliance with its class

rules. Class rules are rules developed by

the particular classification society to

cover the design, construction and

maintenance of vessels. To ensure

compliance with these class rules and

with international standards,

classification societies perform surveys

on vessels using qualified marine

surveyors. Many of the items examined

by the classification society surveyors

are the same as those examined by Coast

Guard marine inspectors in their

inspections for certification.

Thus, there is duplication of effort

between the Coast Guard and the ABS

involving safety of vessels that results in

extra costs to U.S. vessel owners. In

light of the authority in 46 U.S.C. 3316

to delegate vessel inspections and

examinations to ABS, the Coast Guard,

in order to address the concerns of the

vessel owners regarding these costs,

examined the feasibility of an

alternative to the current situation that

would avoid the duplication of

inspections between ABS and the Coast

Guard. A joint Coast Guard/ABS task

force compared the Coast Guard

requirements in the Code of Federal

Regulations (CFR) to the class

requirements in ABS class rules,

SOLAS, and the International

Convention for the Prevention of

Pollution from Ships, as amended,

(MARPOL 73/78) concerning the design,

construction and safety systems for

oceangoing merchant vessels. The

purpose of this comparison was to

identify redundancies between the

requirements and to determine if the

class and international requirements,

which U.S. vessels must currently

comply with, could be used in place of

Coast Guard regulatory requirements.

The standard used was whether

compliance with the class and

international standards would achieve a

level of safety equivalent to compliance

with Coast Guard regulatory

requirements.

The task force determined that many

Coast Guard regulatory requirements

could be satisfied by certification of

compliance with ABS classification

rules, SOLAS, MARPOL 73/78, or

combination of the three. This led to the

development of a U.S. Supplement to

the ABS classification rules. This

supplement addresses those areas where

current Coast Guard requirements are

not embodied by either ABS

classification rules or international

conventions.

The Coast Guard concluded that the

design requirements and survey

provisions of ABS classification rules,

applicable international conventions

and the U.S. Supplement to the ABS

classification rules provide a level of

safety equivalent to corresponding

Federal regulations.

As a result of this effort, the Alternate

Compliance Program (ACP) was

developed to reduce redundant

inspection efforts without jeopardizing

safety. The Coast Guard expects that,
Federal Register / Vol. 62, No. 247 / Wednesday, December 24, 1997 / Rules and Regulations 67527

under the ACP, vessel owners and

operators will have reduced vessel

down time, greater flexibility in

scheduling inspections, and greater

flexibility in meeting required

standards.

The Coast Guard conducted an ACP

pilot program, which was announced by

the Federal Register notice of February

3, 1995 (60 FR 6687). Its purpose was

to test and evaluate the standards and

procedures developed for the ACP.

Sixty-two ships were enrolled in the

pilot program which ended on July 31,

1997. The ACP was implemented on

that date under the regulations

described in the following paragraphs.

On June 22, 1995, the Coast Guard

published a NPRM entitled ‘‘Alternate

Compliance via Recognized

Classification Society and U.S.

Supplement to Rules’’ in the Federal

Register (60 FR 32478). The NPRM

proposed regulatory changes to allow

owners, operators, shipbuilders, and

designers of U.S. flagged tank vessels,

passenger vessels, cargo vessels,

miscellaneous vessels and mobile

offshore drilling units to use the

services of a recognized classification

society to conduct inspection and plan

review functions now performed by the

Coast Guard.

The NPRM proposed establishment of

the ACP through addition of new

sections in 46 CFR parts 31 (31.01–3),

71 (71.15–5), 91 (91.15–5), and 107

(107.205). These sections would allow

the owner or operator of a vessel to

submit the vessel for inspection by a

recognized classification society. The

classification society would survey the

vessel and document compliance with

applicable international requirements,

class rules and its U.S. supplement. The

cognizant Coast Guard Officer-inCharge, Marine Inspection, could then

issue a certificate of inspection based

upon the classification society’s reports

documenting that the vessel is classed

and that it complies with all applicable

requirements.

On December 27, 1996, the Coast

Guard published an interim rule

entitled ‘‘Vessel Inspection Alternatives;

Classification Procedures’’ in the

Federal Register (61 FR 68510). This

rulemaking with the addition of other

46 CFR sections not included in the

NPRM, implemented the ACP program.

Discussion of Comments and Changes

In a continuous effort to refine the

ACP, several minor technical changes

are needed to facilitate clear application

of this rule.

The Coast Guard amended the text of

46 CFR 8.450 to clarify the status of

international certificates issued by a

classification society whose authority to

participate in the ACP is terminated. If

a classification society is no longer

eligible to participate in the ACP, the

certificates issued by that society would

remain valid subject to any termination

of authorization to issue those

certificates on behalf of the Coast Guard

as detailed in § 8.330. Also, the Coast

Guard will notify a vessel owner of the

time frame required for such action.

Because of the many variables involved

in the possible termination of authority

of a classification society to participate

in the ACP, such as the reason for

termination or the number of ships

involved, it is not reasonable to set a

specific time limit for accomplishment

of the required action.

The current regulatory text regarding

four of the certificates listed in § 8.320

(International Certificate of Fitness for

the Carriage of Dangerous Chemicals in

Bulk; International Certificate of Fitness

for the Carriage of Liquefied Gases in

Bulk; MARPOL 73/78 International Oil

Pollution Prevention Certificate; and

MARPOL 73/78 International Oil

Pollution Prevention Certificate for the

Carriage of Noxious Liquid Substances

in Bulk) allows only the Coast Guard to

issue these certificates to U.S. flag

vessels. The intent of this rulemaking is

to allow certain classification societies

to issue these certificates on behalf of

the U.S. as well. Therefore, modification

to 33 CFR part 151, 46 CFR part 153 and

154 are necessary.

In § 8.100, the definition of ‘‘MARPOL

73/78’’ was changed to be consistent

with the definition in 33 U.S.C. 1901.

As the ACP has been implemented,

the Coast Guard has recognized that

additional references to rules and

approved supplements are necessary.

Because a supplement is approved

related to a specific year of classification

society rules and international

conventions, it is appropriate to update

and approve the supplement each time

a new set of classification society rules

are approved. Therefore, each year, the

Coast Guard anticipates approving and

incorporating a set of classification

society rules and a companion

supplement. To facilitate this process,

the Coast Guard eliminated the direct

listing of approved classification society

rules and supplements in the applicable

46 CFR parts (31, 71, 91, and 107) and

modified the language of those sections

to refer the user to one section for a list

of incorporated classification society

rules and supplements in § 8.110(b).

In § 8.320, the list of certificates

requires correction. The ‘‘SOLAS

Certificate of Fitness for the Carriage of

Dangerous Chemicals in Bulk’’ and the

‘‘SOLAS Certificate of Fitness for the

Carriage of Liquefied Gases in Bulk’’ are

correctly titled the ‘‘International

Certificate of Fitness for the Carriage of

Dangerous Chemicals in Bulk’’ and the

‘‘International Certificate of Fitness for

the Carriage of Liquefied Gases in

Bulk’’.

Participation of a vessel in the ACP is

contingent upon several items in

§ 8.410. One requirement is that the

vessel be ‘‘classed’’ by a recognized

classification society that is authorized

to participate in the ACP. To clearly

convey the Coast Guard’s understanding

of what it means for a vessel to be

‘‘classed,’’ the Coast Guard added a

definition of the term to § 8.100.

The applicability in § 8.410 specified

that the ACP applies to all U.S. flag

vessels that meet certain requirements.

However, the ACP is currently open to

U.S. flag tank vessels, passenger vessels,

cargo vessels, miscellaneous vessels,

and mobile offshore drilling units

(MODUs). To accurately reflect these

limitations, § 8.410 will refer each

vessel type to the appropriate

subchapter of 46 CFR containing the

authorization to use the ACP in place of

other requirements.

46 CFR subchapter G, § 69.27(b)

requires an organization to be a full

member of the International Association

of Classification Societies (IACS) and

incorporated under the laws of the

United States, a State of the United

States, or the District of Columbia to be

eligible for delegated tonnage

measurement authority. There is no

statutory requirement for these criteria

and they are inconsistent with the intent

of the ACP rulemaking, which is to

allow classification societies, regardless

of home country, meeting the standards

in part 8, to be recognized and delegated

authority to perform services on behalf

of the Coast Guard. Therefore, the final

rule modifies this section so the ACP

can function as intended.

The Coast Guard received a total of 17

letters that commented on the ACP

interim rule. All letters expressed

support for the program. One comment

specifically mentioned the reduced cost

and increased options the ACP will give

the maritime industry. Some letters

contained suggestions for improvement

in areas that may need adjustment. The

following discussion addresses these

comments.

Ten comments addressed issues

relating to reciprocity. One comment

noted that not all classification societies

can ‘‘certify’’ in their own home

country. These comments recommended

modification of acceptance to include

recognition when authorization to ABS

is equal to that allowed by the country

of origin. The Coast Guard will delegate
67528 Federal Register / Vol. 62, No. 247 / Wednesday, December 24, 1997 / Rules and Regulations

the authority to issue listed certificates

when all of the conditions for

reciprocity, recognition, and

authorization are met. This approach is

consistent with the language in the

Coast Guard Authorization Act of 1996

(Pub. L. 140–324), and will result in the

most efficient delegation program. To

allow the appropriate flexibility needed

for successful application of the ACP

program, the Coast Guard will modify

§ 8.120(a). The Coast Guard will grant

authorization to a foreign classification

society to issue international certificates

on a ‘‘case-by-case’’ basis. Some of the

factors that the Coast Guard may

consider in granting authorization are:

• Whether the foreign classification

society has a satisfactory port state

control history;

• Whether the foreign classification

society has met the criteria contained in

46 CFR 8.230;

• Whether the foreign classification

society developed a U.S. supplement to

its class rules for use in the ACP that is

in accordance with 46 CFR 8.430, as

appropriate; and whether the home

government of the foreign classification

society has provided, or will

simultaneously provide, ABS sufficient

access to inspect, certify and provide

related services to vessels documented

in that country.

One of the comments suggested that

the Coast Guard establish an annual

review of reciprocity provisions. An

annual review of reciprocity is

unnecessary. In the event that the

American Bureau of Shipping

undergoes any changes in their foreign

government authorizations, it is

reasonable to expect that the Coast

Guard will be notified by the American

Bureau of Shipping of any such

changes, at which time the Coast Guard

will review the applicable reciprocity

provisions for appropriate resolution.

Two comments recommended the

removal of the 2-year trial period prior

to being eligible to participate in the

ACP as required in § 8.420. The Coast

Guard does not agree. The ACP is a very

comprehensive program that covers

issues not addressed by international

convention requirements. In the ACP,

participating vessels have limited

involvement with the Coast Guard and

the Certificate of Inspection (COI) is

based largely on classification society

reports. The Coast Guard has limited

experience with foreign classification

societies. Therefore, it is prudent to

maintain this 2-year trial period in order

to gain experience with foreign

classification societies, their rules,

surveyors, and procedures.

Additionally, the 2-year period will

allow the Coast Guard to assess the

capability and performance of the

classification society to ensure they are

adequate to perform the extensive

delegations granted under the ACP. The

Coast Guard is making no change to this

requirement.

One comment requested that the

Safety Certificate for High Speed Craft

be added to the functions that may be

delegated in § 8.320. The Coast Guard

does not agree. The High Speed Craft

Code is new and has had very limited

application in the U.S. Until further

experience and familiarity are gained

with the High Speed Craft Code for U.S.

flag vessels, the Coast Guard does not

plan to delegate this function.

One comment suggested adding the

SOLAS Passenger Vessel Safety

Certificate to those listed in § 8.320.

Passenger vessels may qualify for

participation in the ACP. However, the

Coast Guard intends to maintain first

hand involvement in the issuance of

this certificate due to the degree of risk

involved. The Coast Guard will retain

authority for issuance of the SOLAS

Passenger Vessel Safety Certificate.

One comment was from the United

States Environmental Protection Agency

(EPA). The EPA expressed concern

about authorizing a classification

society to issue the International Air

Pollution Prevention (IAPP) and the

Engine International Air Pollution

Prevention (EIAPP) certificates under

MARPOL Annex VI. Section 8.320 does

not permit delegation of these

certificates to a classification society. No

change is made in response to this

comment.

One comment addressed the

definition of the term ‘‘gross tons’’ in

§ 8.100. The comment stated that the

terms ‘‘method used by flag state

administration’’ are confusing and

unnecessary since subpart A is limited

to U.S. flag vessels. The Coast Guard

does not concur. This terminology is

necessary because classed tonnage is an

element of the minimum standards for

a recognized classification society in

§ 8.230. The Coast Guard intends to

allow class societies to count all vessel

tonnage they class, regardless of the flag

administration. Because not all

administrations apply the International

Convention on Tonnage Measurement of

Ships, 1969, to all measured vessels,

this clause is necessary.

One comment questioned the use of

the American National Standards

Institute (ANSI) standard ANSI/ASQC

Q9001 in place of the international

standard ISO 9001. The Coast Guard

agrees that the international standard is

also acceptable. As stated in the rule, a

classification society may meet the

requirements of the ANSI/ASQC Q9001

or an equivalent quality standard.

Therefore, the Coast Guard makes no

change in response to this comment.

Five comments recommended

changes to the applicability of the ACP.

These comments noted that the ACP

should not be restricted only to vessels

engaged on international voyages but

should be open to all vessels that meet

international requirements regardless of

their ports of call. The term

international voyages was used in

§ 8.410 to ensure that vessels in the ACP

carried all applicable international

certificates and was not intended to

restrict ACP to only those vessels that

engage on international voyages. The

Coast Guard will modify the wording of

§ 8.410(b). Instead of the phrase

‘‘engaged in international voyages’’, the

Coast Guard will use the term

‘‘certificated for international voyages’’.

This clearly expresses the intent that a

vessel participating in the ACP will

have a valid set of all certificates

necessary to engage in an international

voyage.

The ACP is solidly based on the safety

system comprised of the following

elements: Compliance with all relevant

international requirements,

classification society rules, and the

relevant U.S. supplement. This safety

system is being accepted in the ACP as

an equivalent to the system embodied in

Title 46 of the CFR. Thus, U.S. flagged

vessels that do not carry valid and

appropriate certificates necessary to

engage in international voyages,

regardless of class, are not eligible to

participate in the ACP.

Two comments related to the use of

exclusive surveyors for all work done on

behalf of the Coast Guard. One comment

requested the use of exclusive surveyors

for all ACP work. With the exception of

tonnage measurement, the Coast Guard

agrees and notes that this is already

required under § 8.130(a)(25).

Restricting tonnage measurement to

exclusive surveyors is contrary to

current practice and would reduce

flexibility and probably result in higher

cost to the public. Section 8.130(a)(25)

has been modified to allow the use of

part-time employees or independent

contractors to provide tonnage

measurement services.

The other comment requested the use

of one classification society’s exclusive

surveyors by other classification

societies if the two societies involved

have a bilateral agreement. The Coast

Guard does not agree. When authorizing

a classification society to do work

related to the ACP, the Coast Guard

accepts a classification society’s rules,

survey procedures and processes as an

acceptable alternative to federal
Federal Register / Vol. 62, No. 247 / Wednesday, December 24, 1997 / Rules and Regulations 67529

regulations. A classification society’s

own exclusive surveyors are in the best

position to accurately enforce these

items. Given the scope of delegation and

the minimal Coast Guard presence on

ACP vessels, the Coast Guard makes no

change in response to this comment.

However, based on these comments, the

Coast Guard has added a definition of

‘‘exclusive surveyor’’ to § 8.100 for

clarification.

One comment recommended a

specific classification society not be

allowed to participate in the ACP. The

Coast Guard appreciates the intent of

the individual to improve the program.

All applications for recognition and

authorization are carefully reviewed in

accordance with part 8. Any

classification society meeting these

requirements may enter the program.

The Coast Guard has made no change in

response to this comment.

One comment recommended that

authority to issue certificates be revoked

if reciprocity conditions were no longer

being satisfied. Reciprocity is required

by U.S. law in the Coast Guard

Authorization Act of 1996 (Pub. L. 104–

324, 110 Stat. 3901). The Coast Guard

agrees and has modified §§ 8.330 and

8.450 accordingly.

One comment contained

recommendations on document

availability. It requested all documents

to be maintained in a public docket. The

Coast Guard disagrees. Some

information submitted during the

application for recognition of a

classification society is clearly

proprietary and therefore inappropriate

for release. Information regarding

recognition and authorization status

will be available in accordance with the

Freedom of Information Act. The Coast

Guard is making no change in response

to this comment.

One comment on § 8.320(a)(7)

recommended the removal of the term

‘‘SOLAS’’ from the ‘‘SOLAS Mobile

Offshore Drilling Unit Safety

Certificate.’’ The Coast Guard agrees and

will correct this certificate title to

‘‘International Maritime Organization

(IMO) Mobile Offshore Drilling Unit

Safety Certificate.’’

One comment stated that load line

and tonnage admeasurement should be

harmonized to require reciprocity with

the delegations under ACP. The Coast

Guard does not agree. Delegation of

these functions is permitted under 46

U.S.C. 5107 and 46 U.S.C. 14103,

respectively, and reciprocity is not an

element of the conditions of delegation.

The Coast Guard is making no change in

response to this comment.

One comment stated that a recognized

classification society should have the

right to refuse to conduct services. The

Coast Guard agrees. However, the

interim rule does not restrict the

classification society actions in this

regard. In consideration of this

comment, the Coast Guard modified the

text in § 8.130(a)(10) to recognize that a

classification society may have occasion

to refuse to attend a vessel for which it

has performed a delegated function on

behalf of the Coast Guard, when

requested by the Coast Guard.

One comment requested that

documents be ‘‘in a language which is

mutually acceptable to both parties.’’

The Coast Guard does not agree. The

Coast Guard requires documents related

to delegated functions to be in English.

There is no change to § 8.130(a)(18) or

§ 8.230(a)(7) and (8) in response to this

comment.

One comment suggests that the Coast

Guard accept oversight monitoring by

other administrations. The Coast Guard

agrees that oversight and monitoring

activities conducted by other

administrations may be useful to the

delegated functions of the ACP. The

Coast Guard does not agree that any

added text to § 8.130(a)(22) is

warranted. The intent of this agreement

condition is to ensure that an authorized

classification society will allow the

Coast Guard the necessary access to

perform its own oversight activities.

This agreement condition does not

prohibit other means of attaining

information as part of the Coast Guard’s

oversight activities.

One comment stated that reciprocity

was intended to solidify ABS market

shares and not to advance marine safety.

The Coast Guard disagrees. Reciprocity

is included because it is required under

the Coast Guard Authorization Act of

1996 (Pub. L. 104–324). This provision

may increase the choices available to

the marine industry and result in lower

costs. The Coast Guard makes no change

in response to this comment.

One comment requested amendment

to § 8.410(b) to further expand ACP

applicability to foreign flag MODUs

required to obtain a letter of compliance

under 33 CFR subchapter N. The Coast

Guard does not agree. The ACP is

available for U.S. flag vessels as an

alternative to compliance with U.S.

regulations. The Coast Guard reiterates

that the safety system of class rules,

international conventions, and the

supplement to class rules is considered

as an alternative to U.S. regulations.

Foreign flag vessels are not subject to

U.S. vessel standards and therefore, are

not considered in this program. There is

no change in response to this comment.

One comment welcomed the ACP

because COIs can be issued by foreign

class societies. The Coast Guard agrees

that the ACP allows foreign

classification societies to apply for

recognition and authorization to

perform delegated functions under part

8. However, the Coast Guard retains the

authority to issue COIs.

One comment recommended a change

in the term ‘‘serviced’’ in § 8.230(a)(17).

The Coast Guard agrees and has

clarified the language. The change will

ensure that vessels on which a delegated

function has been performed comply

with all statutory requirements related

to the delegation functions.

Three comments encouraged user fee

reduction. The Coast Guard agrees that

participation in ACP may result in

lower fees. However, the purpose of this

rulemaking is not to make changes to

user fees. There are no changes made to

this rule in response to this comment.

Two comments concerned

supplements. One pointed out the

necessity of the supplement. The other

encouraged that the supplement be

simplified and used to lead to

harmonization with industry standards.

The Coast Guard agrees with the spirit

of these comments. In general, a

supplement for the ACP contains cites

from four sources:

• Statutory Requirements,

• SOLAS Interpretations,

• Critical safety issues where the

combination of classification society

rules and international conventions do

not provide an equivalent level of safety

to the CFR, or

• Other requirements that apply to all

ships (primarily navigation safety and

pollution prevention).

Because all classification society rules

are not identical in scope, the

supplement is needed. The Coast Guard

is actively pursuing harmonized

international interpretations to SOLAS.

Where the combination of classification

society rules and international

conventions do not provide an

equivalent level of safety, the Coast

Guard intends to pursue these items

individually with the classification

society or through amendment of the

international convention as appropriate.

Ideally, these Coast Guard efforts may

result in an equivalent level of safety

and remove the need for additions to

classification society rules. In addition,

the Coast Guard has pursued

harmonization with industry standards

and will continue to seek additional

opportunities to do so. There are no

changes as a result of these comments.

One comment encouraged the Coast

Guard to accept foreign class standards

without rigid adherence to U.S.

regulations. The Coast Guard agrees that

an individual regulation, considered in
67530 Federal Register / Vol. 62, No. 247 / Wednesday, December 24, 1997 / Rules and Regulations

isolation, may not always be the best or

most suitable standard for a particular

vessel. However, the Coast Guard

considers the Code of Federal

Regulations (CFR) to represent a

comprehensive set of standards for

commercial vessel safety. The Coast

Guard has worked extensively with the

U.S. maritime industry in the

application of standards other than

those specifically prescribed in the CFR,

and has allowed use of equivalent

standards in many cases. The Coast

Guard will ensure that a double

standard does not develop between

vessels that participate in ACP and

those that do not. ACP standards will

remain equivalent in scope and result in

no reduction in safety. There is no

change made as a result of this

comment.

Two comments addressed reporting

requirements for port-state control

violations. One comment recommended

a change in the term ‘‘ensure’’ in § 8.230

paragraphs (a)(16) and (a)(17). The

comment contends that no classification

society has the power to ensure

compliance. Compliance is dependent

on factors outside of the control of the

classification societies. The Coast Guard

agrees and will modify the text to more

accurately reflect this condition.

One comment recommended that Oil

Spill Recovery Vessels (OSRVs) be

included in ACP with appropriate

modification to corresponding

regulations for this vessel type. The

absence of specific regulations for

OSRVs precludes their inclusion in the

ACP at this time. The Coast Guard will

consider participation of OSRVs after

determining what regulations apply to

them.

One comment encouraged

classification society fee restraints for

vessels participating in the ACP. While

the intent of this rulemaking is to

reduce the cost associated with dual

inspection, the Coast Guard will not be

involved with the establishment of

classification society fees for services

related to the ACP program. The ACP is

a voluntary program and traditional

Coast Guard inspection remains

available to U.S. flag vessels that require

Coast Guard certification.

One comment expressed concern

about the ACP being used to bring more

vessels under ABS class. The Coast

Guard disagrees. Initially, the ACP was

developed with ABS based on the

extensive experience that the Coast

Guard has with delegation of

certification functions to ABS. Until the

passage of the Coast Guard

Authorization Act of 1996 (Pub. L. 104–

324), delegation of this nature was

restricted by law to U.S. classification

societies. The ACP is now available to

foreign based classification societies as

well. There is no change made as a

result of this comment.

One comment questioned how

appeals will be handled. There are two

different levels of appeals. In the first

level, a vessel owner, operator, or

builder may desire to appeal the

decision of an ACP authorized

classification society or the Coast Guard.

This procedure is defined in Coast

Guard policy guidance and is published

as Navigation and Vessel Inspection

Circular (NVIC) No. 2–95, Change 1. On

another level, a classification society

may wish to appeal the decision of the

Coast Guard with respect to its

application for recognition. There was

no appeal provision in the Interim Rule

for this condition. In response to this

comment, the Coast Guard has added a

provision for a classification society to

appeal the decision of the Coast Guard

in § 8.420, related to the recognition

application.

One comment recommended that the

criteria for recognition be modified to be

performance based. The comment

suggested dropping the size and age

criteria and the use of the term

‘‘adequate’’ within the list. The Coast

Guard agrees in part. Performance is

important. However, other criteria

required by the rule indicate

characteristics of the classification

society that the Coast Guard determines

to be necessary to assess quality prior to

recognition. Considering the importance

of the delegated work, no change is

made in response to this comment.

Incorporation by Reference

The Director of the Federal Register

has approved the material in § 8.110 for

incorporation by reference under 5

U.S.C. 552 and 1 CFR part 51. Copies of

the material are available from the

sources listed in that section.

Regulatory Evaluation

This rule is not a significant

regulatory action under section 3(f) of

Executive Order 12866 and does not

require an assessment of potential costs

and benefits under section 6(a)(3) of that

order. It has not been reviewed by the

Office of Management and Budget under

that order. It is not significant under the

regulatory policies and procedures of

the Department of Transportation (DOT)

(44 FR 11040; February 26, 1979).

The Coast Guard expects the

economic impact of this rule to be so

minimal that a full Regulatory

Evaluation under paragraph 10e of the

regulatory policies and procedures of

DOT is unnecessary.

The Coast Guard expects this rule to

provide an economic benefit to the

owners and operators of U.S. flagged

vessels. Currently, 549 U.S. vessels may

be eligible to participate in this optional

ACP. The Coast Guard estimates that

while a vessel owner may have to pay

an additional $5,000 in classification

society fees for functions presently

performed by the Coast Guard, the

savings in design, construction and

operating costs will recover this expense

many times over during the lifetime of

the vessel. Moreover, ships built and

maintained to SOLAS, MARPOL 73/78,

recognized classification society rules

and accepted U.S. supplement are

expected to experience greater

competitiveness in the worldwide

shipping market.

Additionally, streamlining the

certification process will reduce time

frames for Coast Guard involvement in

the COI process from an average of over

50 hours to 10 hours or less. Because the

vessel is already inspected by the

classification society, this program will

reduce duplication of effort, decrease

vessel ‘‘down time’’ and permit greater

scheduling flexibility. Lower

construction and operating costs, greater

flexibility for the vessel in the global

market and additional availability for

vessel hire will offset the costs incurred

through the alternate plan review and

inspection process utilizing a

recognized classification society. The

Coast Guard specifically solicits

comments on potential costs, savings

and benefits.

The Coast Guard expects no impact to

the regulatory assessment as a result of

changes to this rulemaking.

Small Entities

Under the Regulatory Flexibility Act

(5 U.S.C. 601 et seq.), the Coast Guard

considered whether this rule will have

a significant economic impact on a

substantial number of small entities.

‘‘Small entities’’ include small

businesses, not-for-profit organizations

that are independently owned and

operated and are not dominant in their

fields, and governmental jurisdictions

with populations of less than 50,000.

This rule change provides an

alternative to complying with existing

regulations. The Coast Guard

determined this rulemaking will have a

positive economic impact if the owner

chooses to participate in the ACP.

Because of the current structure of the

industry, it is not expected that any

small businesses will be affected by the

rule. However, under Section 601 of the

Regulatory Flexibility Act, the Coast

Guard has provided a flexible approach

which could benefit any small
Federal Register / Vol. 62, No. 247 / Wednesday, December 24, 1997 / Rules and Regulations 67531

businesses which choose to enter this

industry. This rulemaking will have no

impact on vessel owners who do not

choose to participate in this program.

Therefore, the Coast Guard certifies

under section 605(b) of the Regulatory

Flexibility Act (5 U.S.C. 601 et seq.) that

this final rule will not have a significant

economic impact on a substantial

number of small entities.

Assistance for Small Entities

In accordance with section 213(a) of

the Small Business Regulatory

Enforcement Fairness Act of 1996 (Pub.

L. 104–121), the Coast Guard offers to

assist small entities in understanding

the rule so that they may better evaluate

its effects on them and participate in the

rulemaking process. Assistance with

provisions of this final rule can be

obtained by contacting Commandant

(G–MSE), Office of Design and

Engineering Standards, 2100 Second

Street, SW., Washington, DC 20593–

0001, telephone 202–267–2997.

Collection of Information

This final rule provides for a

collection of information under the

Paperwork Reduction Act of 1995 (44

U.S.C. 3501 et seq.). Vessel inspection

reports are needed to document the

compliance of a vessel with recognized

classification society rules, the accepted

U.S. supplement to rules, and

applicable international maritime safety

and marine environmental conventions.

Classification societies recognized to

participate in this program will submit

copies of reports they routinely prepare

to the Coast Guard.

As required by 5 U.S.C. 3507(d), the

Coast Guard submitted a copy of this

rule to the Office of Management and

Budget (OMB) for its review of the

collection of information. OMB has

approved the collection. The section

numbers are: §§ 31.01–3, 71.15–5,

91.15–5, and 107.205, and the

corresponding approval number from

OMB is OMB Control Number 2115–

0626, which expires on June 30, 1999.

Persons are not required to respond to

a collection of information unless it

displays a currently valid OMB control

number.

Federalism

The Coast Guard has analyzed this

rule under the principles and criteria

contained in Executive Order 12612 and

has determined that this rule does not

have sufficient federalism implications

to warrant a Federalism Assessment.

The authority to regulate safety

requirements of U.S. vessels is

committed to the Coast Guard by

statute. Furthermore, since these vessels

tend to move from port to port in the

national market place, these safety

requirements need to be national in

scope to avoid numerous, unreasonable

and burdensome variances. Therefore,

this action will preempt State action

addressing the same matter.

Federal Preemption

Historically, the Coast Guard has

inspected vessels for their compliance

with Federal regulations that address

the safety of a vessel and protection of

the marine environment. These

regulations establish design,

construction, equipment, manning and

other inspection standards that are part

of international conventions to which

the U.S. is a party as well as other

inspection standards that assure the

safety of a vessel participating in this

alternative inspection program. The

certificate of inspection issued to a

vessel by the Coast Guard as a result of

this inspection program indicates that

the vessel is safe for the service in

which it is engaged. It is the Coast

Guard’s opinion that the Supremacy

Clause of the Constitution would

preempt state and local regulations that

seek to impose different or higher

standards governing the inspection of a

U.S. vessel as established in these

regulations.

Environment

The Coast Guard considered the

environmental impact of this rule and

concluded that under paragraph 2.B.2 of

Commandant Instruction M16475.1B,

this rule is categorically excluded from

further environmental documentation.

This rule is excluded based on its

inspection and equipment aspects. A

Categorical Exclusion Determination is

available in the docket for inspection or

copying where indicated under

ADDRESSES.

Since the combination of

classification society rules, applicable

international conventions and the U.S.

supplement to the rules have been

determined to provide a level of safety

equivalent to current Coast Guard

regulations, the Coast Guard expects

that this rulemaking will have no

adverse environmental impact.

List of Subjects

33 CFR Part 151

Administrative practice and

procedure, Oil pollution, Penalties,

Reporting and recordkeeping

requirements, Water pollution control.

46 CFR Part 1

Administrative practice and

procedure, Organization and functions

(Government agencies), Reporting and

recordkeeping requirements.

46 CFR Part 8

Administrative practice and

procedure, Incorporation by reference,

Organization and functions

(Government agencies), Reporting and

recordkeeping requirements.

46 CFR Part 31

Marine safety, Reporting and

recordkeeping requirements, Tank

vessels.

46 CFR Part 69

Measurement standards, Penalties,

Reporting and recordkeeping

requirements, Vessels.

46 CFR Part 71

Marine safety, Passenger vessels,

Reporting and recordkeeping

requirements.

46 CFR Part 91

Cargo vessels, Marine safety,

Reporting and recordkeeping

requirements.

46 CFR Part 107

Marine safety, Oil and gas

exploration, Reporting and

recordkeeping requirements, Vessels.

46 CFR Part 153

Administrative practice and

procedure, Cargo vessels, Hazardous

materials transportation, Marine safety,

Reporting and recordkeeping

requirements, Water pollution control.

46 CFR Part 154

Cargo vessels, Gases, Hazardous

materials transportation, Marine safety,

Reporting and recordkeeping

requirements.

For the reasons set out in the

preamble, under the authority of 46

U.S.C. 3306, the Coast Guard amends 33

CFR part 151 and 46 CFR parts 1, 8, 31,

69, 71, 91 107, 153, and 154 as follows:

PART 151—VESSELS CARRYING OIL,

NOXIOUS LIQUID SUBSTANCES,

GARBAGE, MUNICIPAL OR

COMMERCIAL WASTE, AND BALLAST

WATER

1. The authority citation for part 151

continues to read as follows:

Authority: 33 U.S.C. 1321(j)(1)(c) and

1903(b); E.O. 12777, 3 CFR, 1991 Comp. P.

351; 49 CFR 1.46.

2. Revise § 151.19(c) to read as

follows:

§ 151.19 International Oil Pollution

Prevention (IOPP) Certificates.

* * * * *
67532 Federal Register / Vol. 62, No. 247 / Wednesday, December 24, 1997 / Rules and Regulations

(c) An IOPP Certificate is issued by a

COTP, OCMI, or a classification society

authorized under 46 CFR part 8, after a

satisfactory survey in accordance with

the provisions of § 151.17.

* * * * *

§ 151.37 [Amended]

3. In § 151.37, in paragraphs (a), (b),

and (c), remove the words ‘‘Coast Guard

issues’’ and add, in its place, the words

‘‘Coast Guard or a classification society

authorized under 46 CFR part 8 issues’’.

PART 1—ORGANIZATION, GENERAL

COURSE AND METHODS GOVERNING

MARINE SAFETY FUNCTIONS

4. The authority citation for part 1

continues to read as follows:

Authority: 5 U.S.C. 552; 14 U.S.C. 633; 46

U.S.C. 7701; 49 CFR 1045, 1.46; § 1.01–35

also issued under the authority of 44 U.S.C.

3507.

5. Add § 1.03–15(h)(4) to read as

follows:

§ 1.03–15 General.

* * * * *

(h) * * *

(4) Commandant (G–MSE) for appeals

involving the recognition of a

classification society.

* * * * *

6. Revise part 8 to read as follows:

PART 8—VESSEL INSPECTION

ALTERNATIVES

Subpart A—General

Sec.

8.100 Definitions.

8.110 Incorporation by reference.

8.120 Reciprocity.

8.130 Agreement conditions.

Subpart B—Recognition of a Classification

Society

8.200 Purpose.

8.210 Applicability.

8.220 Recognition of a classification

society.

8.230 Minimum standards for a recognized

classification society.

8.240 Application for recognition.

8.250 Acceptance of standards and

functions delegated under existing

regulations.

8.260 Revocation of classification society

recognition.

Subpart C—International Convention

Certificate Issuance

8.300 Purpose.

8.310 Applicability.

8.320 Classification society authorization to

issue international certificates.

8.330 Termination of classification society

authority.

Subpart D—Alternate Compliance Program

8.400 Purpose.

8.410 Applicability.

8.420 Classification society authorization to

participate in the Alternate Compliance

Program.

8.430 U.S. Supplement to class rules.

8.440 Vessel enrollment in the Alternate

Compliance Program.

8.450 Termination of classification society

authority.

Authority: 46 U.S.C. 3306; 46 U.S.C. 3316,

as amended by Sec. 607, Pub. L. 104–324,

110 Stat. 3901; 46 U.S.C. 3703; 49 CFR 1.45,

1.46.

Subpart A—General

§ 8.100 Definitions.

Authorized Classification Society

means a recognized classification

society that has been delegated the

authority to conduct certain functions

and certifications on behalf of the Coast

Guard.

Class Rules means the standards

developed and published by a

classification society regarding the

design, construction and certification of

commercial vessels.

Classed means that a vessel meets the

classification society requirements that

embody the technical rules, regulations,

standards, guidelines and associated

surveys and inspections covering the

design, construction and through-life

compliance of a ship’s structure and

essential engineering and electrical

systems.

Commandant means the Commandant

of the Coast Guard.

Delegated Function means a function

related to Coast Guard commercial

vessel inspection which has been

delegated to a classification society.

Delegated functions may include

issuance of international convention

certificates and participation in the

Alternate Compliance Program under

this part.

Delegated Function Related to

General Vessel Safety Assessment

means issuance of the SOLAS Cargo

Ship Safety Construction Certificate or

issuance of the SOLAS Cargo Ship

Safety Equipment Certificate.

Exclusive Surveyor means a person

who is employed solely by a

classification society and is authorized

to conduct vessel surveys. Independent

surveyors, hired on a case-by-case basis,

or surveyors of another classification

society are not considered exclusive

surveyors for the performance of

delegated functions on behalf of the

Coast Guard.

Gross Tons means vessel tonnage

measured in accordance with the

International Convention on Tonnage

Measurement of Ships, 1969. Vessels

not measured by this convention must

be measured in accordance with the

method utilized by the flag state

administration of that vessel.

MARPOL 73/78 means the Protocol of

1978 relating to the International

Convention for the Prevention of

Pollution from Ships, 1973, and

includes the Convention which means

the International Convention for the

Prevention of Pollution from Ships,

1973, including Protocols I and II and

Annexes I, II, and V thereto, including

any modification or amendments to the

Convention, Protocols or Annexes

which have entered into force for the

United States.

Officer in Charge, Marine Inspection

(OCMI) means any person from the

civilian or military branch of the Coast

Guard designated as such by the

Commandant and who, under the

superintendence and direction of a

Coast Guard District Commander, is in

charge of an inspection zone for the

performance of duties with respect to

the inspection, enforcement, and

administration of 46 U.S.C., Revised

Statutes, and acts amendatory thereof or

supplemental thereto, and rules and

regulations thereunder.

Recognized Classification Society

means the American Bureau of Shipping

or other classification society

recognized by the Commandant under

this part.

SOLAS means International

Convention for the Safety of Life at Sea,

1974, as amended.

§ 8.110 Incorporation by reference.

(a) Certain material is incorporated by

reference into this subchapter with the

approval of the Director of the Federal

Register under 5 U.S.C. 552(a) and 1

CFR Part 51. To enforce any edition

other than that specified in paragraph

(b) of this section, the Coast Guard must

publish notice of the change in the

Federal Register and the material must

be available to the public. All material

is available for inspection at the Office

of the Federal Register, 800 North

Capitol St., NW., Suite 700, Washington,

DC and at the U.S. Coast Guard, Office

of Design and Engineering Standards,

2100 Second St., SW., Washington, DC

20593–0001, and is available from the

sources listed in paragraph (b).

(b) The material incorporated by

reference in this subchapter and the

sections affected are as follows:

American Bureau of Shipping

(ABS)—Two World Trade Center, 106th

Floor, New York, NY 10048.

Rules for Building and Classing Steel

Vessels, 1996—31.01–3(b), 71.15–5(b),

91.15–5(b)

U.S. Supplement to ABS Rules for Steel

Vessels for Vessels on International
Federal Register / Vol. 62, No. 247 / Wednesday, December 24, 1997 / Rules and Regulations 67533

Voyages, 21 October 1996—31.01–

3(b), 71.15–5(b), 91.15–5(b)

American National Standards

Institute (ANSI)—11 West 42nd St., New

York, NY 10036.

ANSI/ASQC Q9001–1994, Quality

Systems—Model for Quality

Assurance in Design, Development,

Production, Installation, and

Servicing, 1994—8.230

§ 8.120 Reciprocity.

(a) The Commandant may delegate

authority to a classification society that

has its headquarters in a country other

than the United States only to the extent

that the flag state administration of that

country delegates authority and

provides access to the American Bureau

of Shipping to inspect, certify and

provide related services to vessels

flagged by that country. The

Commandant will determine reciprocity

on a ‘‘case-by-case’’ basis.

(b) In order to demonstrate that the

conditions described in paragraph (a) of

this section are satisfied, a classification

society must provide to the Coast Guard

an affidavit, from the government of the

country that the classification society is

headquartered in, listing the authorities

delegated by the flag state

administration of that country to the

American Bureau of Shipping, and

indicating any conditions related to the

delegated authority.

(c) The Commandant will not

consider an application for

authorization to perform a delegated

function submitted under this part until

the conditions described in paragraph

(a) of this section are satisfied. Where

simultaneous authorization by a foreign

government for ABS is involved, this

requirement may be waived.

(d) The Commandant will not

evaluate a classification society for

recognition until the conditions

described in paragraph (a) of this

section are satisfied for at least one of

the authorized delegations being sought.

Where simultaneous recognition by a

foreign government for ABS is involved,

this requirement may be waived.

(e) The Commandant may make a

delegation regarding load lines under 46

U.S.C. 5107 or measurement of vessels

under 46 U.S.C. 14103 without regard to

the conditions described in paragraph

(a) of this section.

§ 8.130 Agreement conditions.

(a) Delegated functions performed by,

and statutory certificates issued by, an

authorized classification society will be

accepted as functions performed by, or

certificates issued by, the Coast Guard,

provided that the classification society

maintains compliance with all

provisions of its agreement with the

Commandant. Any agreement between

the Commandant and a recognized

classification society authorizing the

performance of delegated functions will

be written and will require the

classification society to comply with

each of the following:

(1) Issue any certificates related to a

delegated function in the English

language.

(2) Maintain a corporate office in the

United States that has adequate

resources and staff to support all

delegated functions and to maintain

required associated records.

(3) Maintain all records in the United

States related to delegated functions

conducted on behalf of the Coast Guard.

(4) Make available to appropriate

Coast Guard representatives vessel

status information and records,

including outstanding vessel

deficiencies or classification society

recommendations, in the English

language, on all vessels for which the

classification society has performed any

delegated function on behalf of the

Coast Guard.

(5) Report to the Commandant (G–

MOC) the names and official numbers of

any vessels removed from class for

which the classification society has

performed any delegated function on

behalf of the Coast Guard and include

a description of the reason for the

removal.

(6) Report to the Commandant (G–

MOC) all port state detentions on all

vessels for which the classification

society has performed any delegated

function on behalf of the Coast Guard

when aware of such detention.

(7) Annually provide the

Commandant (G–MOC) with its register

of classed vessels.

(8) Ensure vessels meet all

requirements for class of the accepting

classification society prior to accepting

vessels transferred from another

classification society.

(9) Suspend class for vessels that are

overdue for special renewal or annual

survey.

(10) Attend any vessel for which the

classification society has performed any

delegated function on behalf of the

Coast Guard at the request of the

appropriate Coast Guard officials,

without regard to the vessel’s location—

unless prohibited to do so under the

laws of the United States, the laws of

the jurisdiction in which the vessel is

located, the classification society’s

home country domestic law, or where

the classification society considers an

unacceptable hazard to life and/or

property exists.

(11) Honor appeal decisions made by

the Commandant (G–MSE) or

Commandant (G–MOC) on issues

related to delegated functions.

(12) Apply U.S. flag administration

interpretations, when they exist, to

international conventions for which the

classification society has been delegated

authority to certificate or perform other

functions on behalf of the Coast Guard.

(13) Obtain approval from the

Commandant (G–MOC) prior to granting

exemptions from the requirements of

international conventions, class rules,

and the U.S. supplement to class rules.

(14) Make available to the Coast

Guard all records, in the English

language, related to equivalency

determinations or approvals made in the

course of delegated functions conducted

on behalf of the Coast Guard.

(15) Report to the Coast Guard all

information specified in the agreement

at the specified frequency and to the

specified Coast Guard office or official.

(16) Grant the Coast Guard access to

all plans and documents, including

reports on surveys, on the basis of

which certificates are issued or

endorsed by the classification society.

(17) Identify a liaison representative

to the Coast Guard.

(18) Provide regulations, rules,

instructions and report forms in the

English language.

(19) Allow the Commandant (G–M) to

participate in the development of class

rules.

(20) Inform the Commandant (G–M) of

all proposed changes to class rules.

(21) Provide the Commandant (G–M)

the opportunity to comment on any

proposed changes to class rules and to

respond to the classification society’s

disposition of the comments made by

the Coast Guard.

(22) Furnish information and required

access to the Coast Guard to conduct

oversight of the classification society’s

activities related to delegated functions

conducted on behalf of the Coast Guard.

(23) Allow the Coast Guard to

accompany them on internal and

external quality audits and provide

written results of such audits to

appropriate Coast Guard

representatives.

(24) Provide the Coast Guard access

necessary to audit the authorized

classification society to ensure that it

continues to comply with the minimum

standards for a recognized classification

society.

(25) Use only exclusive surveyors of

that classification society to accomplish

all work done on behalf of, or under any

delegation from, the Coast Guard. For

tonnage-related measurement service

only, however, classification societies
67534 Federal Register / Vol. 62, No. 247 / Wednesday, December 24, 1997 / Rules and Regulations

may use part-time employees or

independent contractors in place of

exclusive surveyors.

(26) Allow its surveyors to participate

in training with the Coast Guard

regarding delegated functions.

(b) Amendments to an agreement

between the Coast Guard and an

authorized classification society will

become effective only after consultation

and written agreement between parties.

(c) Agreements may be terminated by

one party only upon written notice to

the other party. Termination will occur

sixty days after written notice is given.

Subpart B—Recognition of a

Classification Society

§ 8.200 Purpose.

This subpart establishes criteria and

procedures for vessel classification

societies to obtain recognition from the

Coast Guard. This recognition is

necessary in order for a classification

society to become authorized to perform

vessel inspection and certification

functions delegated by the Coast Guard

as described in this part.

§ 8.210 Applicability.

This subpart applies to all vessel

classification societies seeking

recognition by the Coast Guard.

§ 8.220 Recognition of a classification

society.

(a) A classification society must be

recognized by the Commandant before it

may receive statutory authority

delegated by the Coast Guard.

(b) In order to become recognized, a

classification society must meet the

requirements of § 8.230.

(c) A classification society found to

meet the criteria for recognition will be

notified in writing by the Commandant.

(d) If the Coast Guard determines that

a classification society does not meet

the criteria for recognition, the Coast

Guard will provide the reason for this

determination.

(e) A classification society may

reapply for recognition upon correction

of the deficiencies identified by the

Coast Guard.

§ 8.230 Minimum standards for a

recognized classification society.

(a) In order to receive recognition by

the Coast Guard a classification society

must:

(1) Establish that it has functioned as

an international classification society

for at least 30 years with its own class

rules;

(2) Establish that is has a history of

appropriate corrective actions in

addressing vessel casualties and cases of

nonconformity with class rules;

(3) Establish that it has a history of

appropriate changes to class rules based

on their application and the overall

performance of its classed fleet;

(4) Have a total classed tonnage of at

least 10 million gross tons;

(5) Have a classed fleet of at least

1,500 ocean-going vessels over 100 gross

tons;

(6) Have a total classed tonnage of

ocean-going vessels over 100 gross tons

totaling no less than 8 million gross

tons;

(7) Publish and maintain class rules in

the English language for the design,

construction and certification of ships

and their associated essential

engineering systems;

(8) Maintain written survey

procedures in the English language;

(9) Have adequate resources,

including research, technical, and

managerial staff, to ensure appropriate

updating and maintaining of class rules

and procedures;

(10) Have adequate resources and

geographical coverage to carry out all

plan review and vessel survey activities

associated with delegated functions as

well as classification society

requirements;

(11) Employ a minimum of 150

exclusive surveyors;

(12) Have adequate criteria for hiring

and qualifying surveyors and technical

staff;

(13) Have an adequate program for

continued training of surveyors and

technical staff;

(14) Have a corporate office in the

United States that provides a

continuous management and

administrative presence;

(15) Maintain an internal quality

system based on ANSI/ASQC Q9001 or

an equivalent quality standard;

(16) Determine classed vessels comply

with class rules, during appropriate

surveys and inspection;

(17) Determine that attended vessels

comply with all statutory requirements

related to delegated functions, during

appropriate surveys and inspection;

(18) Monitor all activities related to

delegated functions for consistency and

required end-results;

(19) Maintain and ensure compliance

with a Code of Ethics that recognizes the

inherent responsibility associated with

delegation of authority;

(20) Not be under the financial control

of shipowners or shipbuilders, or of

others engaged commercially in the

manufacture, equipping, repair or

operation of ships;

(21) Not be financially dependent on

a single commercial enterprise for its

revenue;

(22) Not have any business interest in,

or share of ownership of, any vessel in

its classed fleet; and

(23) Not be involved in any activities

which could result in a conflict of

interest.

(b) Recognition may be granted after

it is established that the classification

society has an acceptable record of

vessel detentions attributed to

classification society performance under

the Coast Guard Port State Control

Program.

§ 8.240 Application for recognition.

(a) A classification society must apply

for recognition in writing to the

Commandant (G–MSE).

(b) An application must indicate

which specific authority the

classification society seeks to have

delegated.

(c) Upon verification from the Coast

Guard that the conditions of reciprocity

have been met in accordance with

§ 8.120, the requesting classification

society must submit documentation to

establish that it meets the requirements

of § 8.230.

§ 8.250 Acceptance of standards and

functions delegated under existing

regulations.

(a) Classification society class rules

will only be accepted as equivalent to

Coast Guard regulatory standards when

that classification society has received

authorization to conduct a related

delegated function.

(b) A recognized classification society

may not conduct any delegated function

under this title until it receives a

separate written authorization from the

Commandant to conduct that specific

function.

§ 8.260 Revocation of classification

society recognition.

A recognized classification society

which fails to maintain the minimum

standards established in this part will be

reevaluated and its recognized status

revoked if warranted.

Subpart C—International Convention

Certificate Issuance

§ 8.300 Purpose.

This subpart establishes options for

vessel owners and operators to obtain

required international convention

certification through means other than

those prescribed elsewhere in this

chapter.

§ 8.310 Applicability.

This subpart applies to:

(a) Recognized classification societies;

and

(b) All U.S. flag vessels that are

certificated for international voyages
Federal Register / Vol. 62, No. 247 / Wednesday, December 24, 1997 / Rules and Regulations 67535

and are classed by a recognized

classification society that is authorized

by the Coast Guard to issue the

applicable international certificate as

specified in this subpart.

§ 8.320 Classification society authorization

to issue international certificates.

(a) The Commandant may authorize a

recognized classification society to issue

certain international convention

certificates. Authorization will be based

on review of:

(1) Applicable class rules; and

(2) Applicable classification society

procedures.

(b) The Coast Guard may delegate

issuance of the following international

convention certificates to a recognized

classification society:

(1) International Load Line Certificate;

(2) International Tonnage Certificate

(1969);

(3) SOLAS Cargo Ship Safety

Construction Certificate;

(4) SOLAS Cargo Ship Safety

Equipment Certificate;

(5) International Certificate of Fitness

for the Carriage of Dangerous Chemicals

in Bulk;

(6) International Certificate of Fitness

for the Carriage of Liquefied Gases in

Bulk;

(7) International Maritime

Organization (IMO) Mobile Offshore

Drilling Unit Safety Certificate;

(8) MARPOL 73/78 International Oil

Pollution Prevention Certificate; and

(9) MARPOL 73/78 International Oil

Pollution Prevention Certificate for the

Carriage of Noxious Liquid Substances

in Bulk.

(c) The Coast Guard will enter into a

written agreement with a recognized

classification society authorized to issue

international convention certificates.

This agreement will define the scope,

terms, conditions and requirements of

that delegation. Conditions of these

agreements are presented in § 8.130.

§ 8.330 Termination of classification

society authority.

(a) The Coast Guard may terminate an

authorization agreement with a

classification society if:

(1) The Commandant revokes the

classification society’s recognition, as

specified in § 8.260; or

(2) The classification society fails to

comply with the conditions of the

authorization agreement as specified in

§ 8.130.

(b) In the event that a flag

administration of a country changes

conditions related to the authority that

is delegated to ABS, the Commandant

may modify or revoke the Coast Guard’s

authorization of that classification

society that has its headquarters in that

country.

(c) Certificates issued by a

classification society which has had its

authorization terminated will remain

valid until the next classification society

survey associated with that certificate is

required or until the certificate expires,

whichever occurs first.

Subpart D—Alternate Compliance

Program

§ 8.400 Purpose.

This subpart establishes an alternative

to subpart 2.01 of this chapter for

certification of United States vessels.

§ 8.410 Applicability.

This subpart applies to:

(a) Recognized classification societies;

and

(b) U.S. flag vessels that are

certificated for international voyages

and are classed by a recognized

classification society that is authorized

by the Coast Guard to participate in the

Alternate Compliance Program (ACP) as

specified in this subpart and whose

vessel type is authorized to participate

in the ACP per the applicable

subchapter of 46 CFR chapter I.

§ 8.420 Classification society authorization

to participate in the Alternate Compliance

Program.

(a) The Commandant may authorize a

recognized classification society to

participate in the ACP. Authorization

will be based on a satisfactory review of:

(1) Applicable class rules; and

(2) Applicable classification society

procedures.

(b) Authorization for a recognized

classification society to participate in

the ACP will require development of a

U.S. Supplement to the society’s class

rules that meets the requirements of

§ 8.430 of this part, which must be

accepted by the Coast Guard.

(c) A recognized classification society

will be eligible to receive authorization

to participate in the ACP only after it

has performed a delegated function

related to general vessel safety

assessment, as defined in § 8.100, for a

two-year period.

(d) If, after this two-year period, the

Coast Guard finds that the recognized

classification society has not

demonstrated the necessary satisfactory

performance or lacks adequate

experience, the recognized classification

society will not be eligible to participate

in the ACP. The Coast Guard will

provide the reason for this

determination to the recognized

classification society. A classification

society may appeal the decision of the

Coast Guard concerning recognition to

the Commandant in writing in

accordance with 46 CFR 1.03–15(h)(4).

(e) The Coast Guard will enter into a

written agreement with a recognized

classification society authorized to

participate in the ACP. This agreement

will define the scope, terms, conditions

and requirements of the necessary

delegation. Conditions of this agreement

are presented in § 8.130.

§ 8.430 U.S. Supplement to class rules.

Prior to receiving authorization to

participate in the ACP, a recognized

classification society must prepare, and

receive Commandant (G–MSE) approval

of, a U.S. Supplement to the recognized

classification society’s class rules. This

supplement must include all regulations

applicable for issuance of a Certificate of

Inspection (COI) which are not, in the

opinion of the Commandant, adequately

established by either the class rules of

that classification society or applicable

international regulations.

§ 8.440 Vessel enrollment in the Alternate

Compliance Program.

(a) In place of compliance with other

applicable provisions of this title, the

owner or operator of a vessel subject to

plan review and inspection under this

subchapter for initial issuance or

renewal of a COI may submit the vessel

for classification, plan review and

inspection by a recognized classification

society authorized by the Coast Guard to

determine compliance with applicable

international treaties and agreements,

the classification society’s class rules,

and the U.S. Supplement prepared by

the classification society and accepted

by the Coast Guard.

(b) A vessel owner or operator

wishing to have a vessel inspected

under paragraph (a) of this section shall

submit an Application for Inspection of

U.S. Vessel (CG–3752) to the cognizant

OCMI, and indicate on the form that the

inspection will be conducted by an

authorized classification society under

the ACP.

(c) Based on reports from an

authorized classification society that a

vessel complies with applicable

international treaties and agreements,

the classification society’s class rules,

and the U.S. Supplement prepared by

the classification society and accepted

by the Coast Guard, the cognizant OCMI

may issue a certificate of inspection to

the vessel. If the OCMI declines to issue

a certificate of inspection even though

the reports made by the authorized

classification society indicate that the

vessel meets applicable standards, the

vessel owner or operator may appeal the

OCMI decision as provided in subpart

1.03 of this chapter.
67536 Federal Register / Vol. 62, No. 247 / Wednesday, December 24, 1997 / Rules and Regulations

(d) If reports from an authorized

classification society indicate that a

vessel does not comply with applicable

international treaties and agreements,

the classification society’s class rules,

and the U.S. Supplement prepared by

the classification society and accepted

by the Coast Guard, the cognizant OCMI

may decline to issue a certificate of

inspection. If the OCMI declines to issue

a certificate of inspection, the vessel

owner or operator may:

(1) Correct the reported deficiencies

and make arrangements with the

classification society for an additional

inspection;

(2) Request inspection by the Coast

Guard under other provisions of this

subchapter; or

(3) Appeal via the authorized

classification society to the Chief, Office

of Compliance, Commandant (G–MOC),

U.S. Coast Guard, 2100 Second St. SW.,

Washington, DC 20593–0001.

§ 8.450 Termination of classification

society authority.

(a) The Coast Guard may terminate an

authorization agreement with a

classification society to participate in

the Alternate Compliance Program if:

(1) The Commandant revokes the

classification society’s recognition, as

specified in § 8.260; or

(2) The classification society fails to

comply with the conditions of the

authorization agreement as specified in

§ 8.130.

(b) In the event that a flag

administration of a country changes

conditions related to the authority that

is delegated to ABS, the Commandant

may modify or revoke the Coast Guard’s

authorization of that classification

society that has its headquarters in that

country.

(c) Certificates issued by a

classification society which has had its

authorization to participate in the

Alternate Compliance Program

terminated will be subject to the

provisions of § 8.330.

(d) Owners or operators of vessels

enrolled in the ACP and classed by a

classification society that has its

authority to participate in the ACP

terminated must:

(1) Change the classification society

for the vessel to a classification society

that is authorized to participate in the

ACP; or

(2) Disenroll the vessel from the ACP.

(e) The Coast Guard will provide

guidance to a vessel owner affected by

the revocation of a classification

society’s authority to participate in the

ACP. This will include notification of

when the action required under

paragraph (d) of this section must be

completed.

PART 31—INSPECTION AND

CERTIFICATION

7. The authority citation for part 31

continues to read as follows:

Authority: 33 U.S.C. 1321(j); 46 U.S.C.

3306; 46 U.S.C. 3316, as amended by Sec.

607, Pub. L. 104–324, 110 Stat. 3901; 46

U.S.C. 3703, 5115, 8105; 49 U.S.C. App.

1804; E.O. 12234, 45 FR 58801, 3 CFR, 1980

Comp., p. 277; E.O. 11735, 38 FR 21243, 3

CFR, 1971–1975 Comp., p. 793; 49 CFR 1.46.

8. Revise § 31.01–3 to read as follows:

§ 31.01–3 Alternate compliance.

(a) In place of compliance with other

applicable provisions of this subchapter,

the owner or operator of a vessel subject

to plan review and inspection under

this subchapter for initial issuance or

renewal of a Certificate of Inspection

may comply with the Alternate

Compliance Program provisions of part

8 of this chapter.

(b) For the purposes of this section, a

list of authorized classification societies

is available from Commandant (G–

MSE). Approved classification society

rules and supplements are contained in

46 CFR § 8.110(b).

PART 69—MEASUREMENT OF

VESSELS

9. The authority citation for part 69

continues to read as follows:

Authority: 46 U.S.C. 2301, 14103; 49 CFR

1.46.

10. Amend § 69.27 by redesignating

paragraphs (b)(3), (b)(4) and (b)(5) as

paragraphs (b)(4), (b)(5), and (b)(6),

respectively and by adding a new

paragraph (b)(3) to read as follows:

§ 69.27 Delegation of authority to measure

vessels.

* * * * *

(b) * * *

(3) In lieu of the requirements in

paragraphs (b)(1) and (2) of this section,

is a recognized classification society

under the requirements of 46 CFR part

8.

* * * * *

PART 71—INSPECTION AND

CERTIFICATION

11. The authority citation for part 71

continues to read as follows:

Authority: 33 U.S.C. 1321(j); 46 U.S.C.

2113, 3306; 46 U.S.C. 3316, as amended by

Sec. 607, Pub. L. 104–324, 110 Stat. 3901;

E.O. 12234, 45 FR 58801, 3 CFR, 1980 Comp.,

p. 277; E.O. 12777, 56 FR 54757, 3 CFR 1991

Comp., p. 351; 49 CFR 1.46.

12. Revise § 71.15–5 to read as

follows:

§ 71.15–5 Alternate compliance.

(a) In place of compliance with other

applicable provisions of this subchapter,

the owner or operator of a vessel subject

to plan review and inspection under

this subchapter for initial issuance or

renewal of a Certificate of Inspection

may comply with the Alternate

Compliance Program provisions of part

8 of this chapter.

(b) For the purposes of this section, a

list of authorized classification societies

is available from Commandant (G–

MSE). Approved classification society

rules and supplements are contained in

46 CFR 8.110(b).

PART 91—INSPECTION AND

CERTIFICATION

13. The authority citation for part 91

continues to read as follows:

Authority: 33 U.S.C. 1321(j); 46 U.S.C.

3306; 46 U.S.C. 3316, as amended by Sec.

607, Pub. L. 104–324, 110 Stat. 3901; E.O.

12234, 45 FR 58801, 3 CFR, 1980 Comp., p.

277; E.O. 11735, 38 FR 21243, 3 CFR, 1971–

1975 Comp., p. 793; 49 CFR 1.46.

14. Revise § 91.15–5 to read as

follows:

§ 91.15–5 Alternate compliance.

(a) In place of compliance with other

applicable provisions of this subchapter,

the owner or operator of a vessel subject

to plan review and inspection under

this subchapter for initial issuance or

renewal of a Certificate of Inspection

may comply with the Alternate

Compliance Program provisions of part

8 of this chapter.

(b) For the purposes of this section, a

list of authorized classification societies

is available from Commandant (G–

MSE). Approved classification society

rules and supplements are contained in

46 CFR 8.110(b).

PART 107—INSPECTION AND

CERTIFICATION

15. The authority citation for part 107

continues to read as follows:

Authority: 43 U.S.C. 1333; 46 U.S.C. 3306;

46 U.S.C. 3316, as amended by Sec. 607, Pub.

L. 104–324, 110 Stat. 3901; 46 U.S.C 5115; 49

CFR 1.45, 1.46; § 107.05 also issued under

authority of 44 U.S.C. 3507.

16. Revise § 107.205 to read as

follows:

§ 107.205 Alternate compliance.

(a) In place of compliance with other

applicable provisions of this subchapter,

the owner or operator of a vessel subject

to plan review and inspection under

this subchapter for initial issuance or

renewal of a Certificate of Inspection

may comply with the Alternate
Federal Register / Vol. 62, No. 247 / Wednesday, December 24, 1997 / Rules and Regulations 67537

Compliance Program provisions of part

8 of this chapter.

(b) For the purposes of this section, a

list of authorized classification societies

is available from Commandant (G-MSE).

Approved classification society rules

and supplements are contained in 46

CFR 8.110(b).

PART 153—SHIPS CARRYING BULK

LIQUID, LIQUEFIED GAS, OR

COMPRESSED GAS HAZARDOUS

MATERIALS

17. The authority citation for part 153

continues to read as follows:

Authority: 46 U.S.C. 3703; 49 CFR 1.46.

Section 153.40 issued under 49 U.S.C. 5103.

Sections 153.470 through 153.491, 153.110

through 153.1132, and 153.1600 through

153.1608 also issued under 33 U.S.C.

1903(b).

18. In § 153.12, revise the

introductory paragraph to read as

follows:

§ 153.12 IMO certificates for United States

ships.

Either a classification society

authorized under 46 CFR part 8, or the

Officer in Charge, Marine Inspection,

issues a United States ship an IMO

Certificate endorsed to allow the

carriage of a hazardous material or NLS

cargo in Table 1 of this part if the

following requirements are met:

* * * * *

PART 154—SAFTEY STANDARDS FOR

SELF-PROPELLED VESSELS

CARRYING BULK LIQUEFIED GASES

19. The authority citation for part 154

continues to read as follows:

Authority: 46 U.S.C. 3703, 9101; 49 CFR

1.46.

20. Revise § 154.19(a) introductory

text to read as follows:

§ 154.19 U.S. flag vessel: IMO certificate

issuance.

(a) Either a classification society

authorized under 46 CFR part 8, or the

Coast Guard Officer in Charge, Marine

Inspection, issues an IMO Certificate to

a U.S. flag vessel when requested by the

owner or representative, if—

* * * * *

Dated: December 17, 1997.

R. C. North,

Rear Admiral, U.S. Coast Guard, Assistant

Commandant for Marine Safety and

Environmental Protection.

[FR Doc. 97–33477 Filed 12–23–97; 8:45 am]

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