44108 Federal Register / Vol. 82, No. 182 / Thursday, September 21, 2017 / Rules and Regulations 

responsibilities among the various 

levels of government. 

F. Executive Order 13175: Consultation 

and Coordination With Indian Tribal 

Governments 

This action does not have tribal 

implications as specified in Executive 

Order 13175. This action provides 

performance criteria and QA test 

procedures for assessing the 

acceptability of HCl CEMS performance 

and data quality. Thus, Executive Order 

13175 does not apply to this action. 

G. Executive Order 13045: Protection of 

Children From Environmental Health 

Risks and Safety Risks 

The EPA interprets Executive Order 

13045 as applying only to those 

regulatory actions that concern 

environmental health or safety risks that 

the EPA has reason to believe may 

disproportionately affect children, per 

the definition of ‘‘covered regulatory 

action’’ in section 2–202 of the 

Executive Order. This action is not 

subject to Executive Order 13045 

because it does not concern an 

environmental health risk or safety risk. 

H. Executive Order 13211: Actions 

Concerning Regulations That 

Significantly Affect Energy Supply, 

Distribution, or Use 

This action is not subject to Executive 

Order 13211, because it is not a 

significant regulatory action under 

Executive Order 12866. 

I. National Technology Transfer and 

Advancement Act (NTTAA) 

This rulemaking does not involve 

technical standards. 

J. Executive Order 12898: Federal 

Actions To Address Environmental 

Justice in Minority Populations and 

Low-Income Populations 

The EPA believes that this action is 

not subject to Executive Order 12898 (59 

FR 7629, February 16, 1994) because it 

does not establish an environmental 

health or safety standard. This 

regulatory action is a technical 

correction to a previously promulgated 

regulatory action and does not have any 

impact on human health or the 

environment. Documentation for this 

decision is provided in the Summary of 

Major Comments and Responses section 

of this preamble. 

K. Congressional Review Act (CRA) 

This action is subject to the CRA, and 

the EPA will submit a rule report to 

each House of the Congress and to the 

Comptroller General of the United 

States. This action is not a ‘‘major rule’’ 

as defined by 5 U.S.C. 804(2). 

List of Subjects in 40 CFR Part 60 

Environmental protection, 

Administrative practice and procedure, 

Air pollution control, Continuous 

emission monitoring systems, Hydrogen 

chloride, Performance specifications, 

Test methods and procedures. 

Dated: September 13, 2017. 

E. Scott Pruitt, 

Administrator. 

For the reasons stated in the 

preamble, title 40, chapter I of the Code 

of Federal Regulations is amended as 

follows: 

PART 60—STANDARDS OF 

PERFORMANCE FOR NEW 

STATIONARY SOURCES 

■ 1. The authority citation for part 60 

continues to read as follows: 

Authority: 42 U.S.C. 7401 et seq. 

■ 2. Amend appendix F to part 60 under 

‘‘Procedure 6’’ by revising sections 

‘‘4.1.5’’, ‘‘4.1.5.1’’ and ‘‘5.2.4.2’’ to read 

as follows: 

Appendix F to Part 60—Quality 

Assurance Procedures 

* * * * * 

Procedure 6. Quality Assurance 

Requirements for Gaseous Hydrogen 

Chloride (HCl) Continuous Emission 

Monitoring Systems Used for Compliance 

Determination at Stationary Sources 

* * * * * 

4.1.5 Additional Quality Assurance for 

Data above Span. This procedure must be 

used when required by an applicable 

regulation and may be used when significant 

data above span are being collected. 

Furthermore, the terms of this procedure do 

not apply to the extent that alternate terms 

are otherwise specified in an applicable rule 

or permit. 

4.1.5.1 Any time the average measured 

concentration of HCl exceeds 150 percent of 

the span value for two consecutive one-hour 

averages, conduct the following ‘above span’ 

CEMS response check. 

* * * * * 

5.2.4.2 Calculate results as described in 

section 6.4. To determine CEMS accuracy, 

you must calculate the dynamic spiking error 

(DSE) for each of the two upscale audit gases 

using Equation A5 in appendix A to PS–18 

and Equation 6–3 in section 6.4 of Procedure 

6 in appendix B to this part. 

* * * * * 

[FR Doc. 2017–20172 Filed 9–20–17; 8:45 am] 

BILLING CODE 6560–50–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

46 CFR Parts 2 and 8 

[Docket No. USCG–2016–0880] 

RIN 1625–AC35 

Adding the Polar Ship Certificate to the 

List of SOLAS Certificates and 

Certificates Issued by Recognized 

Classification Societies 

AGENCY: Coast Guard, DHS. 

ACTION: Final rule. 

SUMMARY: This final rule adds the Polar 

Ship Certificate to a list of certificates 

that certain U.S. and foreign-flag ships 

will need to carry on board if they 

engage in international voyages in polar 

waters. This rule also enables the Coast 

Guard to authorize recognized 

classification societies to issue the Polar 

Ship Certificate on the Coast Guard’s 

behalf. We are taking this action because 

the International Convention for Safety 

of Life at Sea (SOLAS) has been 

amended to require certain ships 

operating in Arctic or Antarctic waters 

to have a Polar Ship Certificate. This 

rule will help ensure that U.S.-flagged 

ships that need this certificate— 

commercial cargo ships greater than 500 

gross tonnage and passenger ships 

carrying more than 12 passengers, that 

operate in polar waters as defined by 

SOLAS chapter XIV while engaged in 

international voyages—will be able to 

obtain it in a timely manner. 

DATES: This final rule is effective 

October 23, 2017. 

ADDRESSES: To view comments and 

material submitted in response to our 

proposed rule, as well as documents 

mentioned in this final rule preamble as 

being available in the docket, go to 

http://www.regulations.gov, type USCG– 

2016–0880 in the ‘‘SEARCH’’ box and 

click ‘‘SEARCH.’’ Then click on Open 

Docket Folder on the line associated 

with this rule. 

FOR FURTHER INFORMATION CONTACT: For 

information about this document call or 

email Lieutenant Chris Rabalais, 

Systems Engineering Division (CG– 

ENG–3), Coast Guard; telephone 202– 

372–1485, email 

Christopher.P.Rabalais@uscg.mil. 

SUPPLEMENTARY INFORMATION: 

Table of Contents for Preamble 

I. Abbreviations 

II. Regulatory History 

III. Basis, Purpose, and Background 

IV. Discussion of Comments and Changes 

V. Regulatory Analyses 


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1SOLAS chapter XIV implements Part I–A, safety 

provisions, of the Polar Code. 

A. Regulatory Planning and Review 

B. Small Entities 

C. Assistance for Small Entities 

D. Collection of Information 

E. Federalism 

F. Unfunded Mandates Reform Act 

G. Taking of Private Property 

H. Civil Justice Reform 

I. Protection of Children 

J. Indian Tribal Governments 

K. Energy Effects 

L. Technical Standards 

M. Environment 

I. Abbreviations 

BLS Bureau of Labor Statistics 

CFR Code of Federal Regulations 

DHS Department of Homeland Security 

E.O. Executive order 

FR Federal Register 

GT ITC Gross Tonnage International 

Tonnage Convention 

IMO International Maritime Organization 

MARPOL International Convention for the 

Prevention of Pollution from Ships, 1974 

MEPC Marine Environment Protection 

Committee 

MOA Memorandum of Agreement 

MSC Maritime Safety Committee 

NAICS North American Industry 

Classification System 

OCMI Officer in Charge, Marine Inspection 

OMB Office of Management and Budget 

Polar Code International Code for Ships 

Operating in Polar Waters 

RA Regulatory Assessment 

SBA Small Business Administration 

SOLAS International Convention for the 

Safety of Life at Sea 

§ Section 

U.S.C. United States Code 

II. Regulatory History 

Coast Guard regulations for inspecting 

and certificating vessels are located in 

subpart 2.01 of title 46 of the Code of 

Federal Regulations (46 CFR subpart 

2.01). Section 2.01–6 in that subpart 

contains provisions for issuing 

certificates of compliance to foreignflagged vessels. Section 2.01–25 

identifies certificates required by the 

International Convention for Safety of 

Life at Sea (SOLAS) on certain vessels 

engaged in international voyages. This 

section also lists SOLAS certificates the 

Coast Guard issues to vessels that meet 

applicable SOLAS requirements. 

Part 8 of 46 CFR contains Coast Guard 

regulations for vessel inspection 

alternatives. Specifically, 46 CFR 8.320 

identifies international certificates that 

the Coast Guard may authorize 

recognized classification societies to 

issue on the Coast Guard’s behalf. 

On November 22, 2016, we published 

a notice of proposed rulemaking 

(NPRM) in the Federal Register (81 FR 

83786) entitled, ‘‘Adding the Polar Ship 

Certificate to the List of SOLAS 

Certificates and Certificates Issued by 

Recognized Classification Societies.’’ 

That NPRM proposed to amend 46 CFR 

2.01–6, 2.01–25, and 8.320. We received 

two written submissions in response to 

the NPRM. 

III. Basis, Purpose, and Background 

In 2014 and 2015, the International 

Maritime Organization (IMO) adopted 

the International Code for Ships 

Operating in Polar Waters (Polar Code) 

and added its requirements to two 

existing IMO Conventions—SOLAS, and 

the International Convention for the 

Prevention of Pollution from Ships 

(MARPOL)—in consideration of hazards 

and conditions unique to polar waters, 

and an expected increase in traffic in 

Arctic and Antarctic waters. These 

additional hazards include navigation in 

ice and low temperatures, high-latitude 

communications and navigation, 

remoteness from response resources, 

and limited hydrographic charting. 

Copies of the IMO Maritime Safety 

Committee and Marine Environment 

Protection Committee resolutions 

discussed in this paragraph are available 

in the docket. 

The Polar Code took effect on January 

1, 2017, and applies to all vessels 

constructed on or after that date. 

Beginning on January 1, 2018, the Polar 

Code will also start applying to existing 

vessels, based upon the date their 

SOLAS Certificates were issued. 

One of the requirements for ships 

subject to the Polar Code is to carry a 

Polar Ship Certificate pursuant to 

SOLAS. The Polar Ship Certificate 

attests that the vessel has met applicable 

requirements of SOLAS. As a signatory 

to this convention, under Article I of 

SOLAS, the United States has an 

obligation to ensure compliance with 

SOLAS requirements. 

This rule creates a certificate that 

newly constructed U.S.-flagged vessels, 

certified in accordance with SOLAS 

chapter I, will need in order to travel 

internationally within polar waters, 

beginning January 1, 2017. Existing 

vessels will need the same certificate by 

their first intermediate or renewal 

survey after January 1, 2018. U.S.- 

flagged vessels that do not carry a Polar 

Ship Certificate risk detention, denial of 

entry, or expulsion from the polar 

waters of other States. 

This rulemaking is necessary to allow 

the Coast Guard to create the new Polar 

Ship Certificate and add it to the list of 

certificates required by SOLAS in 46 

CFR part 2. Also, this rule allows the 

Coast Guard to authorize recognized 

classification societies to issue the Polar 

Ship Certificate on the Coast Guard’s 

behalf under 46 CFR 8.320. 

Foreign-flagged vessels, certified in 

accordance with SOLAS chapter I and 

operating in polar waters, are also 

required to carry the Polar Ship 

Certificate. However, their certificates 

will be issued by the vessel’s flag state, 

or a person or an organization 

authorized by that flag state to issue the 

certificate. The Coast Guard will 

examine foreign-flagged vessels during 

Port State Control boardings to ensure 

that they are properly certificated. 

The Coast Guard is authorized to 

regulate this subject matter under 33 

U.S.C. 1231; 46 U.S.C. 2103, 3306, 3316, 

and 3703; Department of Homeland 

Security Delegation No. 0170.1, and 

Executive Order 12234, ‘‘Enforcement of 

the Convention for the Safety of Life at 

Sea’’ (45 FR 58801, Sept. 5, 1980). 

IV. Discussion of Comments and 

Changes 

We received two written submissions 

commenting on the proposed rule 

published on November 22, 2016 (81 FR 

83786). The comments raised concerns 

about four specific items, which we 

address in this section of the preamble. 

Applicability of the SOLAS Polar Code 

Provisions to U.S.-Flagged Vessels on 

Domestic Voyages 

One of the comments noted concerns 

about wording in the proposed rule that 

limits requirements to vessels engaged 

in international voyages. On this point, 

the comment also cited a December 

2016 Coast Guard Polar Code policy 

letter (CG–CVC Policy Letter Letter 16– 

06, available in the docket), which states 

that U.S.-flag vessels operating on 

domestic voyages to ports or places in 

the U.S. Arctic do not need to meet the 

provisions of SOLAS chapter XIV,1 but 

must instead comply with applicable 

domestic requirements. The commenter 

concluded that this Coast Guard 

interpretation, reflected in the proposed 

rule, does not meet the intent of the 

IMO in implementation of the Polar 

Code. 

We decline to expand the scope of the 

proposed rule. The proposed rule is 

consistent with our view that the 

SOLAS convention’s authority is 

generally limited to vessels traveling 

internationally. Based on the intent of 

the SOLAS convention to ensure safe 

international shipping, and SOLAS 

certification as part of voluntary U.S. 

compliance programs, the United States 

will not require U.S.-flagged vessels 

operating on domestic routes through 

Arctic waters to obtain a Polar Ship 

Certificate. 


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2This 500 GT ITC threshold comes from an 

exception in SOLAS Chapter 1 for ships that need 

to be certified in accordance with that chapter. 

Regulation 3 of Chapter I has an exception for cargo 

ships of less than 500 GT ITC. 

3See Resolution MSC.385(94) and paragraph 7 of 

the Polar Code preamble in MSC.385(94)’s 

appendix. This resolution is available in the docket. 

Applicability of the SOLAS Polar Code 

Provisions in Antarctica 

A commenter raised concerns about 

the lack of clarity regarding the 

applicability of the Polar Code in 

Antarctica, given that these waters are 

not under the jurisdiction of the United 

States or any other nation. The Polar 

Code applies to ships engaged in 

international voyages that are also 

operating in polar waters. Polar waters 

include both the Arctic and Antarctic 

waters. Therefore, a U.S.-flagged vessel 

that is certified in accordance with 

SOLAS chapter I and is on an 

international voyage must have a Polar 

Ship Certificate if it enters Antarctic 

waters. 

Time Estimates for Issuance of a Polar 

Ship Certificate 

The same commenter also questioned 

our burden hour estimate for the time 

required by classification societies to 

issue the Polar Ship Certificate. The 

commenter said that the estimate did 

not include time required for technical 

approvals or verification of compliance 

with provisions of the Polar Code. 

Cost estimates for verifications of 

compliance with the Polar Code were 

not included in the regulatory analysis 

because these hours are outside the 

scope of this rulemaking. This 

rulemaking addresses the issuance of a 

Polar Ship Certificate, not compliance 

with substantive safety and 

environmental provisions or surveys to 

evaluate compliance with those 

provisions. 

In our NPRM we used an estimate of 

40 hours, which we obtained from a 

classification society and which 

includes administrative review, 

stamping the documents, and data 

input. The commenter, who also 

represents a classification society, gives 

a minimum time of 8 to 12 hours for 

these tasks. We have retained the more 

conservative 40-hour estimate. 

The other hours the commenter 

discusses, 120 to 230 hours to complete 

approval work for new construction, 

risk assessments, and surveys, represent 

compliance aspects of the safety and 

environmental provisions of the Polar 

Code. Again, these compliance aspects 

are beyond the scope of this rulemaking. 

Entry into Force of the SOLAS Polar 

Code Requirement for Certification 

One commenter stated that the 

language we used in the NPRM implied 

that all U.S.-flagged vessels subject to 

the Polar Code will be required to carry 

a Polar Ship Certificate by January 1, 

2017. 

The January 1, 2017 date applies to 

vessels built on or after that date. 

Vessels built before that date need not 

comply until after January 1, 2018. 

Implementation for existing vessels is 

based on the first renewal or 

intermediate survey conducted after 

January 1, 2018. (See SOLAS chapter 

XIV, Reg. 2.2.) For the purposes of the 

Polar Code, the Cargo Ship Safety 

Construction or Passenger Ship Safety 

Certificate is typically the survey used 

to determine the implementation date 

for vessels built before January 1, 2017. 

We have made no changes from the 

proposed regulatory text. The regulatory 

text in this final rule is the same as we 

proposed in the NPRM. 

V. Regulatory Analyses 

We developed this rule after 

considering numerous statutes and 

Executive orders related to rulemaking. 

Below we summarize our analyses 

based on these statutes or Executive 

orders. 

A. Regulatory Planning and Review 

Executive Orders 12866 (Regulatory 

Planning and Review) and 13563 

(Improving Regulation and Regulatory 

Review) direct agencies to assess the 

costs and benefits of available regulatory 

alternatives and, if regulation is 

necessary, to select regulatory 

approaches that maximize net benefits 

(including potential economic, 

environmental, public health and safety 

effects, distributive impacts, and 

equity). Executive Order 13563 

emphasizes the importance of 

quantifying costs and benefits, reducing 

costs, harmonizing rules, and promoting 

flexibility. Executive Order 13771 

(Reducing Regulation and Controlling 

Regulatory Costs) directs agencies to 

reduce regulation and control regulatory 

costs and provides that ‘‘for every one 

new regulation issued, at least two prior 

regulations be identified for elimination, 

and that the cost of planned regulations 

be prudently managed and controlled 

through a budgeting process.’’ 

The Office of Management and Budget 

(OMB) has not designated this final rule 

a significant regulatory action under 

section 3(f) of Executive Order 12866. 

Accordingly, OMB has not reviewed it. 

Because this rule is not a significant 

regulatory action, this rule is exempt 

from the requirements of Executive 

Order 13771. See the OMB 

Memorandum titled Guidance 

Implementing Executive Order 13771, 

Titled ‘‘Reducing Regulation and 

Controlling Regulatory Costs’’ (April 5, 

2017). 

Our regulatory analysis (RA) follows. 

We only received one comment on 

our estimates in the regulatory analysis 

of the proposed rule. That comment 

related to the number of hours used for 

the creation and issuance of the 

certificate. However, the commenter 

also mentioned some hour burdens that 

are not associated with the creation, 

review, and issuance of the Polar Ship 

certificate, and are beyond the scope of 

this rulemaking. 

In preamble section IV, Discussion of 

Comments and Changes, we discuss this 

public comment regarding our estimate 

of the time it takes a recognized 

classification society to create a polar 

certificate—which includes reviewing, 

printing, stamping of the documents, 

and data input—and explain why we 

retained a more conservative estimate 

used in the NPRM as our primary 

estimate based on industry input. And 

as reflected in that discussion, we adopt 

the costs and benefits in the regulatory 

analysis of the proposed rule for this 

final rule. 

This final rule adds a new Polar Ship 

Certificate to the list of existing SOLAS 

certificates that SOLAS requires to be 

carried on board all U.S. and foreignflagged vessels above 500 GT ITC (the 

International Convention on Tonnage 

Measurement of Ships 1969 or gross 

tonnage assigned under this system) 2 or 

passenger ships carrying more than 12 

passengers on international voyages 

operating in polar waters, generally 

above 60 degrees north latitude and 

below 60 degrees south latitude lines. 

The IMO adopted the Polar Code in 

2014 and 2015 to acknowledge that 

polar waters impose additional 

operating demands and risks.3 The 

United States is signatory to the SOLAS 

convention and has an obligation to 

ensure that all U.S.-flagged vessels 

certified in accordance with SOLAS 

chapter I that engage on international 

voyages carry a Polar Ship Certificate 

when operating in polar waters. Owners 

and operators of foreign-flagged vessels 

subject to SOLAS will have their Polar 

Ship Certificates issued by the ship’s 

flag state or a person or an organization 

authorized by that flag state to issue the 

certificate. 

This rule amends 46 CFR part 2, 

‘‘Vessel Inspections,’’ subpart 2.01, 

‘‘Inspecting and Certificating of 

Vessels.’’ Specifically, we are adding the 

Polar Ship Certificate to § 2.01–6, 

‘‘Certificates issued to foreign vessels,’’ 

and § 2.01–25, ‘‘International 

Convention for Safety of Life at Sea.’’ 


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4 Information can be viewed at https://

www.bls.gov/oes/2016/may/naics3_483000.htm. 

Once on this page scroll down to review the wage 

rate for 13–1199 Business Operations Specialists, 

All Other, with a mean hourly wage of $37.55. 

Please see https://www.bls.gov/oes/2016/may/ 

oes231011.htm, for the mean hourly wage rate for 

a lawyer. A loaded labor rate is what a company 

pays per hour to employ a person, not the hourly 

wage. The loaded labor rate includes the cost of 

benefits (health insurance, vacation, etc.). The load 

factor for wages is calculated by dividing total 

compensation by wages and salaries. For this 

analysis, we used BLS’ Employer Cost for Employee 

Compensation/Transportation and Materials 

Moving Occupations, Private Industry Report 

(Series IDs, CMU2010000520000D and 

CMU2020000520000D for all workers using the 

multi-screen data search). Using 2016 Q4 data for 

the cost of compensation and cost per hour worked, 

we divide the total compensation amount of $28.15 

by the wage and salary amount of $18.53 to obtain 

the load factor of about 1.52, rounded. See the 

following Web sites, https://beta.bls.gov/ 

dataQuery/find?fq=survey:[oe]&s=popularity:D and 

https://data.bls.gov/cgi-bin/dsrv?cm Multiplying 

1.52 by $37.55, we obtain a loaded hourly wage rate 

of about $57.08. 

5Based on an estimate provided by a recognized 

classification society to the U.S. Coast Guard. 

This rule also amends 46 CFR part 8, 

‘‘Vessel Inspection Alternatives,’’ 

subpart C, ‘‘International Convention 

Certificate Issuance,’’ § 8.320, 

‘‘Classification Society Authorization to 

Issue International Certificates,’’ at 

paragraph (b) to include the Polar Ship 

Certificate as one of the certificates that 

the Coast Guard may authorize a 

recognized classification society to issue 

on behalf of the Coast Guard. 

Affected Population 

Since the Coast Guard published the 

NPRM, two vessels in our original 

population of 41 have been re-flagged 

and are no longer U.S.-flagged vessels, 

and one vessel is no longer in service. 

In addition, this rule does not apply to 

domestic vessels that operate in polar 

waters if these vessels do not engage in 

international voyages. This was not 

distinguished in the analysis for the 

NPRM. Based on this factor and further 

analysis, the population of affected 

vessels is now estimated to be 23. This 

is the number of U.S.-flagged vessels 

that make international voyages in polar 

waters, which are generally above and 

below the 60 degree north and 60 degree 

south latitudes lines, respectively, over 

the past 5 years. This estimate is based 

on Coast Guard field data and Coast 

Guard databases such as the Marine 

Information for Safety and Law 

Enforcement, the Ship Arrival 

Notification System, and data from the 

Navigation Data Center. 

Of the 23 U.S.-flagged vessels that 

have transited polar waters during the 5- 

year period, some entered polar waters 

in the first year and not the following 

year, but returned in subsequent years. 

The opposite is also true; some vessels 

that did not transit polar waters in the 

first year of the data period did so in the 

following years of the data period. 

Recognized classification societies 

granted authority from the Coast Guard 

under provisions of 46 CFR 8.320(a) will 

issue the Polar Ship Certificate on 

behalf of the Coast Guard for U.S.- 

flagged vessels that are classed. 

Although multiple classification 

societies could request authorization to 

issue the Polar Ship Certificate on 

behalf of the Coast Guard, for the 

purpose of this analysis, the Coast 

Guard assumes that only one 

classification society will do so for the 

small number of classed U.S.-flagged 

vessels. 

Cost Analysis 

Classification Societies Cost 

This rule amends 46 CFR 8.320(b) to 

enable recognized classification 

societies to request authorization under 

§ 8.240(b), to issue the Polar Ship 

Certificate on behalf of the Coast Guard. 

As reflected in 46 CFR 2.01–25, vessels 

that are not classed can apply to the 

local Coast Guard Officer in Charge, 

Marine Inspection (OCMI) to request the 

Coast Guard to issue the Polar Ship 

Certificate. 

There are two cost elements 

associated with a classification society 

issuing a Polar Ship Certificate: The cost 

to review and return a signed copy of 

the Memorandum of Agreement (MOA) 

between the recognized classification 

society and the Coast Guard, and the 

cost to create the certificate once the 

MOA is approved by each party. As 

stated in 46 CFR 8.320(c), the Coast 

Guard will enter into an agreement with 

the classification society to issue 

international convention certificates 

such as the Polar Ship Certificate. In 

this situation, the MOA represents a 

delegation letter and is a standard 

document that allows a recognized 

classification society to issue the Polar 

Ship Certificate on behalf of the Coast 

Guard. 

Based on Coast Guard data from the 

Office of Design and Engineering 

Standards, we estimate it will take a 

recognized classification society’s 

classification and documentation 

specialist 1 hour to review the MOA. 

There is no equivalent labor category in 

the Bureau of Labor Statistics’ (BLS) 

Occupational Employment Statistics 

National Industry-Specific Occupational 

Employment and Wage Estimates for 

May 2016, so we used the ‘‘Business 

Operations Specialist, All Other’’ 

(Occupation Code 13–1199) category for 

Water Transportation with a North 

American Industry Classification 

System (NAICS) Code of 483000 as a 

representative occupation. The mean 

hourly wage rate for this occupation is 

$37.55. Because this is an unloaded 

hourly wage rate, we added a load factor 

to obtain a loaded hourly wage rate. We 

used BLS’ May 2016 Employer Cost for 

Employee Compensation databases to 

calculate and apply a load factor of 1.52 

to obtain a loaded hourly labor rate of 

about $57.08 for this occupation.4 We 

also estimate it will take a recognized 

classification society attorney 1 hour to 

review the MOA for legal sufficiency. 

Using the BLS’ Occupational 

Employment Statistics National 

Occupational Employment and Wage 

Estimates for May 2016, we used the 

category ‘‘Lawyers’’ (Occupation Code 

23–1011). The mean hourly wage for 

this occupation is $67.25. Because this 

is an unloaded hourly wage rate, we 

apply the same load factor of 1.52 as 

derived above to obtain a loaded hourly 

wage rate of about $102.22. 

We estimate the one-time cost for the 

classification society to review the MOA 

to be about $162.30, undiscounted. This 

cost includes a $3 postage cost to mail 

the signed MOA to the Coast Guard for 

approval and signature [($57.08 × 1 

hour) + ($102.22 × 1 hour) + $3 for 

postage]. 

Based on a recognized classification 

society estimate, it will take 

approximately 40 hours to create and 

review the Polar Ship Certificate once 

the MOA is approved. We received a 

lower estimate of 8-to-12 hours from a 

commenter for work related to this task, 

but we are maintaining our more 

conservative 40-hour estimate we 

obtained from an industry source to 

specifically address hours needed to 

create and review the Polar Ship 

Certificate once the MOA is approved. 

As with the MOA, a classification and 

documentation specialist would create 

the certificate. We again used the 

‘‘Business Operations Specialist, All 

Other’’ as a representative occupation. 

We estimate the one-time labor cost for 

a documentation specialist to create the 

certificate to be about $2,283.20 (40 

hours 5 × $57.08/hour), undiscounted. 

Because the certificate is presented to a 

vessel owner or operator during the 

normal course of a vessel survey, we did 

not estimate a cost for this action. 

We estimate the total undiscounted 

cost of the rule to a recognized 

classification society to be about 

$2,445.50 ($2,283.20 document 

development cost + $162.30 MOA 

review cost). See Table 1. 


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6 Vessel owners and operators for ships built on 

or after January 1, 2017, have been required to carry 

the Polar Ship Certificate before engaging in 

international voyages in polar waters. We have not 

identified any vessels that would be affected by this 

rule that were built after this date and we do not 

have data to project how many newly built vessels 

will be affected or required to carry a Polar Ship 

Certificate in the future. 

Vessel Cost 

There are two cost elements 

associated with vessel owners and 

operators: The fee a recognized 

classification society will charge a 

vessel owner or operator for issuing the 

certificate for U.S.-classed vessels only, 

and the cost associated with a 

crewmember posting the certificate 

onboard a vessel. Based on Coast Guard 

vessel data, approximately 22 percent, 

or about 5 out of the 23 U.S.-flagged 

vessels, are not classed by a recognized 

classification society. 

The requirement for the 23 existing 

ships is to have the certificate by their 

first renewal or intermediate exam after 

January 1, 2018. This is a phased-in 

approach that will likely phase in the 

issuing of the certificates over a period 

of about 3 years. Therefore, the Coast 

Guard would issue the Polar Ship 

Certificate to vessel owners and 

operators of those 5 unclassed vessels as 

part of its routine inspection regime. A 

recognized classification society will 

issue the Polar Ship Certificate to the 

remaining 18 vessel owners and 

operators in the first, second, third, 

sixth, seventh, and eighth year of the 

analysis period. 

The Polar Ship Certificate is valid for 

a 5-year period and, after this time, the 

recognized classification society and the 

Coast Guard will issue a new Polar Ship 

Certificate to vessel owners and 

operators, depending upon whether a 

vessel is classed or not classed. Based 

on information from a recognized 

classification society, the cost to issue a 

Polar Ship Certificate is $100 if a 

recognized classification society issues 

the certificate (for 18 classed, U.S.- 

flagged vessels). The cost of the reissued 

Polar Ship Certificate is also $100; 

therefore, it will cost each U.S.-classed 

vessel owner and operator $100 after 5 

years to renew the certificate, or in the 

sixth, seventh, and eighth year of the 

analysis period. We assume a 3-year 

phase-in period for owners and 

operators to obtain the certificates. For 

the purpose of this analysis, we assume 

7 U.S.-flagged vessels owners and 

operators (6 classed and 1 unclassed) 

will obtain a certificate in the first year 

and 8 (6 classed and 2 unclassed) U.S.- 

flagged vessel owners and operators will 

obtain one in the second and third 

years. For reissuance, again, we assume 

the same 7 vessel owners and operators 

will obtain a certificate in the sixth year 

and the same 8 vessel owners and 

operators will obtain one in the seventh 

and eighth years each; we divided the 

population accordingly to obtain even 

values. 

Vessel owners and operators will be 

required to post the certificate in a 

conspicuous area onboard the vessel 

with other applicable operating 

certificates. Based on the Office of 

Management and Budget’s (OMB) 

approved collection of information 

entitled ‘‘Various International 

Agreement Safety Certificates,’’ (OMB 

control number 1625–0017), a 

crewmember equivalent to a U.S. Coast 

Guard cadet will post the Polar Ship 

Certificate on board a vessel. Using the 

Coast Guard’s Commandant Instruction 

7310.1R for loaded hourly wages 

outside of the Government, the hourly 

wage rate of a person outside of the 

Government equivalent to a cadet is 

$29.00. We estimate it takes a 

crewmember about 6 minutes, or 0.1 

hours, to post the Polar Ship Certificate 

at a labor cost of about $2.90 per vessel 

($29.00 × 0.1 hours). To post the Polar 

Ship Certificate, we estimate the total 

initial cost of the final rule to 7 U.S.- 

flagged vessel owners and operators to 

be about $20.30 (6 U.S. classed and 1 

unclassed vessel × 0.1 hours × $29.00), 

regardless of whether a recognized 

classification society or the Coast Guard 

issues the Polar Ship Certificate. 

Owners and operators of U.S.-flagged 

vessels will incur this cost again in the 

sixth year because a crewmember will 

review and post the reissued certificate 

for the same seven vessels. 

We estimate the initial cost of the rule 

to vessel owners and operators to be 

about $620.30 in the first year [(6 

classed vessels × $100) + (6 classed 

vessels × $2.90 to post the certificate) + 

1 unclassed vessel × $2.90 to post the 

certificate)].6 The cost for the renewed 

certificate in the sixth year (or 5 years 

after the initial year) will also be 

$620.30 for these seven vessels. In the 

second, third, seventh, and eighth years, 

we estimate the cost for eight U.S.- 

flagged vessel owners and operators to 

obtain and post a Polar Ship Certificate 

to be about $623.20 [(6 classed vessels 

× $100) + (6 classed vessels × $2.90 to 

post the certificate) + (2 unclassed 

vessels in each of these years × $2.90 

each year to post the certificate)]. See 

Table 1. 

We estimate the total 10-year 

undiscounted cost to be $3,733.40 for all 

23 U.S.-flagged vessel owners and 

operators ($620.30 in the first and sixth 

year + $623.20 in the second, third, 

seventh, and eighth years of the analysis 

period). Table 1 shows the cost to both 

class society and vessel owners and 

operators for this rule. 

TABLE 1—SUMMARY OF CLASSIFICATION SOCIETY AND VESSEL OWNERS AND OPERATORS COSTS

[Undiscounted] 

Cost item Unit cost Labor rate Hours Total cost 

Classification Society Certificate 

Creation.

........................ $57.08 ............................................ 40 $2,283.20 (incurred in year 1). 

Classification Society Review of 

MOA.

........................ $102.22 (Attorney) ......................... 1 $162.30 (incurred in year 1 and includes $3 postage). 

$57.08 (Business Operations Specialist).1 

Certificate Fee Charged to Vessel 

Owners and Operators.

$100 ........................................................ ........................ $600 (incurred in years 1 through 

3 and 6 through 8); $1,800 for 

18 classed vessels in years 1 

through 3 and 6 through 8. 

Vessel Crewmember Reviews and 

Posts Certificate.

........................ $27 ................................................. 0.1 $2.90 (incurred in years 1 through 

3 and 6 through 8); $20.30 in 

years 1 and 6 and $23.20 in 

years 2, 3, 7, and 8. 


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TABLE 1—SUMMARY OF CLASSIFICATION SOCIETY AND VESSEL OWNERS AND OPERATORS COSTS—Continued 

[Undiscounted] 

Cost item Unit cost Labor rate Hours Total cost 

Total Undiscounted Cost (Initial year)......................... ........................................................ ........................ $3,065.80 

We estimate the initial undiscounted 

cost of the final rule to a recognized 

classification society and to 7 (6 classed 

and 1 unclassed vessels) U.S.-flagged 

vessel owners and operators to be about 

$3,065.80 ($2,283.20 for the 

classification society to create the 

certificate + $162.30 for the 

classification society to review the MOA 

+ $600 fee charged by a classification 

society to issue the certificate to the 6 

classed vessel owners and operators + 

$20.30 for crewmembers of the seven 

classed and unclassed vessels to post 

the certificate). We estimate the total 10- 

year undiscounted cost of the rule to 

industry to be about $6,178.90 

($3,065.80 in the first year + $623.20 in 

the second, third, seventh, and, eighth 

years + $620.30 in the sixth year). See 

Table 2. 

We estimate the 10-year present 

value—or discounted cost—of the rule 

to industry to be between $5,082.42 and 

$5,652.42 at 7- and 3-percent discount 

rates, respectively. We estimate the 

annualized cost to be between $723.62 

and $662.64 at 7- and 3- percent 

discount rates, respectively. See Table 2. 

TABLE 2—TOTAL COSTS OF THE RULE TO INDUSTRY

[10-Year period of analysis, 7 and 3 percent discount rates, 2017 dollars] 

Period Cost 

(undiscounted) 7% 3% 

1 ................................................................................................................................................... $3,065.80 $2,865.23 $2,976.50 

2 ................................................................................................................................................... 623.20 544.33 587.43 

3 ................................................................................................................................................... 623.20 508.72 570.32 

4 ................................................................................................................................................... ........................ ........................ ........................

5 ................................................................................................................................................... ........................ ........................ ........................

6 ................................................................................................................................................... 620.30 413.33 519.49 

7 ................................................................................................................................................... 623.20 388.10 506.72 

8 ................................................................................................................................................... 623.20 362.71 491.96 

9 ................................................................................................................................................... ........................ ........................ ........................

10 ................................................................................................................................................. ........................ ........................ ........................

Total ...................................................................................................................................... 6178.90 5,082.42 5,652.42 

Annualized ..................................................................................................................... ........................ 723.62 662.64 

Note: Totals may not sum due to independent rounding. 

Government Costs 

There are three cost elements 

associated with this rule for the Coast 

Guard: (1) A one-time cost of creating 

the Polar Ship Certificate and issuing it 

(in the initial year, second, third, sixth, 

seventh, and eighth years) to a vessel 

owner or operator if a vessel is not 

classed by a class society; (2) reviewing 

the certificate onboard a vessel as part 

of the Coast Guard’s routine inspection 

regime; and (3) a one-time cost of 

creating and sending the delegation 

letter or MOA to a classification society 

for signature. 

For the 5 U.S.-flagged vessels that are 

not classed by a recognized 

classification society, the Coast Guard 

will issue the Polar Ship Certificate in 

the first through the third years and the 

sixth through the eighth years. Because 

of the phase-in period, we divided the 

5 vessels evenly over 3 years. We 

determined that 1 vessel will receive its 

certificate in the first and sixth years, 

and 2 vessels will receive it in the 

second, third, seventh, and eighth year, 

with certificate reissuance occurring 

during the sixth, seventh, and eighth 

years. The two vessels in the second and 

third years are the same two vessels in 

the seventh and eighth years. 

Based on information from the Coast 

Guard’s Office of Vessel Compliance, we 

estimate it takes Coast Guard personnel 

with the average equivalence of a GS– 

15 about 40 hours to create and review 

a Polar Ship Certificate. Using the 

Commandant Instruction 7310.1R, we 

used an average loaded hourly wage rate 

of $116.00. We estimate the one-time 

cost for the Coast Guard to create the 

Polar Ship Certificate to be about 

$4,640.00 (40 hours × $116.00 hour). 

Based on an OMB-approved 

collection of information (Control 

Number 1625–0017), we estimate it 

takes a Coast Guard Officer the Officer 

in Charge Marine Inspection (OCMI), or 

more specifically, a Lieutenant with the 

rank of an O–3, about 30 minutes, or 0.5 

hours per vessel, to review the Polar 

Ship Certificate for validity and 

correctness (the Coast Guard issues and 

reviews the certificate at the same time 

during its normal inspection regime). 

Using the Coast Guard’s Commandant 

Instruction 7310.1R for loaded hourly 

wages, an O–3 has a loaded hourly wage 

rate of $79.00. Therefore, we estimate 

the total undiscounted cost to the 

Government to review the Polar Ship 

Certificate for all 23 affected vessels to 

be about $908.50 ($79.00× 23 vessels × 

0.5 hours), or about $39.50 per vessel. 

We use the same methodology noted 

earlier in this preamble with owners 

and operators obtaining certificates over 

a 3-year period (7 in the first and sixth 

year and 8 in the second, third, seventh 

and eighth year), with the sixth, seventh 

and eighth years being the renewal 

years. Again, 7 inspections (6 classed 

and 1 unclassed) will take place in the 

first and sixth year, and 8 (6 classed and 

2 unclassed) in the second, third, 

seventh, and eighth year. We estimate 

the first year cost to the Government to 

review the certificate will be about 

$276.50 (6 classed and 1 unclassed 

vessels × $39.50). The Government will 

incur this cost again in the sixth year 

when the certificate is reissued. In years 


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two, three, seven, and eight, the 

Government will incur a certificate 

review cost of about $316.00 (6 classed 

and 2 unclassed vessels × $39.50) in 

each of these years. 

The Coast Guard will also examine 

the certificates of foreign-flagged vessels 

that enter U.S. ports in polar waters as 

part of its routine Port State Control 

vessel boardings. This will take place 

during routine Coast Guard 

examinations and for issuing certificates 

of compliance and is a part of the 

inspection process. Therefore, we do not 

estimate a cost to the Government. 

This final rule will also enable a 

recognized classification society to issue 

the Polar Ship Certificate on behalf of 

the Coast Guard. As a result, the Coast 

Guard and a recognized classification 

society will enter into an MOA that 

delegates authority to the classification 

society. This sets forth guidelines for 

cooperation between the Coast Guard 

and a classification society with respect 

to initial and subsequent inspections for 

certifications and periodic reinspections or examinations of vessels 

of the United States, as defined by 46 

U.S.C. 116. 

Based on information from the Coast 

Guard’s Office of Design and 

Engineering Standards, Coast Guard 

personnel with the average equivalence 

of a GS–15 will prepare the MOA for 

delivery to a classification society. 

Again, we used an average loaded 

hourly labor rate of $116.00 for a GS– 

15. We estimate it will take Government 

personnel about 6.25 hours to prepare 

and review the MOA. We estimate it 

will cost about $3 in postage for the 

Government to send the MOA to the 

classification society. 

We estimate the total cost incurred by 

the Government for the MOA to be 

about $725.00 plus $3 for postage, or a 

total cost of $728.00, undiscounted (6.25 

hours × $116.00 for the loaded labor 

rate). 

We estimate the total initial cost to 

the Government to be about $5,644.50 

($4,640 to create and review the 

certificate, $276.50 to review the 

certificates for 6 classed and 1 unclassed 

U.S.-flagged vessels, and $728.00 for the 

MOA). We estimate the total 10-year 

undiscounted cost to the Government to 

be about $7,185.00 ($5,644.50 in the 

initial year + $316.00 in the second, 

third, seventh and eighth years + 

$276.50 in the sixth year). We estimate 

the 10-year present value, or discounted 

cost of the rule to the Government, to be 

between $6374.14 and $6,805.10, using 

7- and 3- percent discount rates, 

respectively. We estimate the 

annualized cost to be between $907.53 

and $797.76, using 7- and 3-percent 

discount rates, respectively. See Table 3. 

TABLE 3—TOTAL COSTS OF THE RULE TO THE GOVERNMENT

[10-Year period of analysis, 7 and 3 percent discount rates, 2017 dollars] 

Period Cost 

(undiscounted) 7% 3% 

1 ................................................................................................................................................... $5644.50 $5,275.23 $5,480.10 

2 ................................................................................................................................................... 316.00 276.01 297.86 

3 ................................................................................................................................................... 316.00 257.95 289.18 

4 ................................................................................................................................................... ........................ ........................ ........................

5 ................................................................................................................................................... ........................ ........................ ........................

6 ................................................................................................................................................... 276.50 184.24 231.56 

7 ................................................................................................................................................... 316.00 196.79 256.94 

8 ................................................................................................................................................... 316.00 183.91 249.45 

9 ................................................................................................................................................... ........................ ........................ ........................

10 ................................................................................................................................................. ........................ ........................ ........................

Total ...................................................................................................................................... 7,185.00 6,374.14 6,805.10 

Annualized ..................................................................................................................... ........................ 907.53 797.76 

Note: Totals may not sum due to independent rounding. 

Total Cost of the Rule to Industry and 

Government 

We estimate the total 10-year 

combined undiscounted cost of the rule 

to industry and the Government to be 

about $13,364. We estimate the 10-year 

present value, or discounted cost of the 

rule to industry and the Government, to 

be between $11,457 and $12,458 at 7- 

and 3-percent discount rates, 

respectively. We estimate the 

annualized cost to be between $1,631 

and $1,460 using the same discount 

rates. See Table 4. 

TABLE 4—SUMMARY OF COSTS OF THE RULE TO INDUSTRY AND GOVERNMENT

[10-Year period of analysis, 2017 dollars] 

Type of cost Industry Government Total cost Annualized 

Undiscounted ................................................................................................... $6,178.90 $7,185.00 $13,363.90 ........................

7% .................................................................................................................... 5,082.42 6,374.14 11,456.55 1,631.16 

3% .................................................................................................................... 5,652.42 6,805.10 12,457.51 1,460.40 

Benefits 

The primary benefit of this rule is to 

ensure that vessel owners and operators 

have a valid Polar Ship Certificate on 

board the vessel. Without a Polar Ship 

Certificate, a vessel will be subject to 

deficiencies, detention, denial of entry, 

or expulsion from the polar waters of 

other port States. Adherence to SOLAS 

will ensure vessels are capable of 

operating in the hazards and adverse 

weather conditions unique to polar 

waters. 

Alternatives 

When creating this rule, the Coast 

Guard considered several alternatives. 

The previous analysis represents the 

preferred alternative, which will help 

ensure that the United States fulfills its 

treaty obligations under SOLAS 


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7Readers can access small entity information 

online at http://www.sba.gov/size/ 

indextableofsize.html. 

regarding the Polar Ship Certificate, and 

that U.S.-flagged vessel owners and 

operators that operate vessels in polar 

waters will be able to obtain Polar Ship 

Certificates and thus operate more 

efficiently by avoiding the risk of 

potential negative actions against their 

vessel by foreign countries (such as, 

detentions, deficiencies, denial of entry, 

or expulsions) if their vessel does not 

have a Polar Ship Certificate on board. 

Alternative 1: Preferred Alternative 

The analysis for this alternative 

appears in this, ‘‘Regulatory Analysis,’’ 

section of this preamble. 

Alternative 2: No Action Alternative 

In this alternative, the United States 

would take no action to issue a Polar 

Ship Certificate. None of the costs 

itemized in the preferred alternative 

would be incurred, as a result. However, 

with this alternative, the United States 

would not be compliant with its 

international legal obligations as a 

signatory Government to the SOLAS 

Convention. Additionally, the lack of 

appropriate certifications would likely 

negatively impact U.S.-flagged vessels 

on international voyages in polar waters 

of other port States. U.S.-flagged vessels 

could potentially be subject to 

deficiencies, detentions, denial of entry, 

or expulsion from the polar waters of 

other port states due to the lack of 

proper certificates. 

Because the United States would not 

meet its international treaty obligations 

in this alternative, the Coast Guard 

rejects this alternative. 

Alternative 3: Large Scale Regulatory 

Implementation of the Polar Code 

In this alternative, the Coast Guard 

would implement the entire Polar Code 

in one regulatory effort. This would 

create or modify regulations throughout 

46 and 33 CFR. The affected vessels, 

operators, and the Government will also 

incur the costs and impacts of the 

implementation of the entire Polar Code 

from a single regulatory effort. 

The Coast Guard rejected this 

alternative because it would 

considerably delay the issuance of the 

certificate beyond the January 1, 2017 

effective date of the Polar Code. As 

stated previously, U.S.-flagged vessels 

could potentially be subject to 

deficiencies, detentions, denial of entry, 

or expulsion from the polar waters of 

other port states due to the lack of 

proper certificates. 

By moving forward with Alternative 

1, U.S.-flagged vessel owners and 

operators will be able to obtain a Polar 

Ship Certificate much sooner and thus 

operate more efficiently in polar waters 

of foreign nations by avoiding adverse 

consequences from not having the 

certificate on board. 

B. Small Entities 

Under the Regulatory Flexibility Act 

(RFA), 5 U.S.C. 601–612, we have 

considered whether this rule will have 

a significant economic impact on a 

substantial number of small entities. 

The term ‘‘small entities’’ comprises 

small businesses, not-for-profit 

organizations that are independently 

owned and operated and are not 

dominant in their fields, and 

governmental jurisdictions with 

populations of less than 50,000. In 

accordance with the Regulatory 

Flexibility Act (RFA) (5 U.S.C. 601– 

612), the Coast Guard prepared this 

threshold analysis that examines the 

impacts of the rule on small entities. 

Based on our analysis of the entities 

affected by this rule, all of the 23 

affected U.S.-flagged vessels are owned 

by U.S. entities. To determine which 

entities are small, we compiled the data 

used in this analysis from publicly 

available and proprietary sources such 

as Manta, ReferenceUSAGov, and 

Cortera, and from the affected entities’ 

Web sites. We used available owner’s 

business information to identify the 

entities’ primary line of business as 

coded by the NAICS to find employee 

and revenue size information. We used 

this information to determine whether 

we should consider a business ‘‘small’’ 

by comparing it to the Small Business 

Administration’s (SBA) ‘‘Table of Small 

Business Size Standards Matched to 

North American Industry Classification 

System Codes.’’ In some cases, SBA 

classifies businesses on a standard 

either based on the number of 

employees or annual revenues.7 We 

found that no small government 

jurisdictions or non-profits own any of 

the U.S.-flagged vessels affected by this 

rule. 

We found that 12 companies own the 

23 vessels that will be affected by this 

final rule. Of the 12 different 

companies, we found only one to be a 

small entity, or about 8 percent, based 

on SBA’s table of small business size 

standards. The one small entity that we 

found has a primary NAICS code of 

483111, or ‘‘Deep Sea Freight 

Transportation.’’ 

We estimate the initial cost to each 

classed vessel owner and operator 

(small and not small) to be about 

$102.90 [$600/6 classed U.S.-flagged 

vessel owners and operators that have 

their vessels classed by a class society 

+ $17.40 (6 classed vessels × $2.90)/6 

(cost for crewmembers of 6 classed U.S.- 

flagged vessel owners and operators to 

post the certificate divided by the 

number of U.S.-classed vessel owners 

and operators. Again, in the sixth year, 

these 6 classed U.S.-flagged vessel 

owners and operators will incur this 

cost)]. In the second and third years, the 

remaining 12 (6 each year) classed U.S.- 

flagged vessel owners and operators will 

incur this same cost, and again in the 

renewal years of seven and eight. The 5 

U.S.-flagged vessel owners who own 

unclassed vessels will only incur a cost 

of $2.90 per vessel in the each of the 

years described above. These vessel 

owners and operators will incur the 

same cost in the first (one vessel) 

through third years (two vessels in the 

second and third year each) and sixth 

(the same vessel as in the first year) 

through eighth years (the same two 

vessels as in the second and third year 

in the seventh and eighth year each) of 

the analysis period. See Table 5. 

TABLE 5—SUMMARY OF COSTS PER VESSEL THROUGHOUT THE 10-YEAR PERIOD OF ANALYSIS

Period Classed U.S.-flagged Vessels Unclassed U.S.-flagged Vessels 

Initial and Sixth Year ......................................... 6 ........................................................................ 1. 

Years 2, 3, 7, and 8 .......................................... 6 (each year) .................................................... 2 (each year). 

Cost ................................................................... $102.90 (each year per vessel) ....................... $2.90 (each year per vessel). 

Note: As described in the text, years six, seven, and eight are renewal years. The one unclassed U.S.-flagged vessel that received a certificate in the first year is the same vessel in the sixth year. The two unclassed U.S.- flagged vessels that receive a certificate in years two and 

three are the same ones in years seven and eight. The same rationale applies to classed U.S.-flagged vessels. 


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Based on the databases that we 

searched, the only small entity that we 

found in our analysis did not have 

revenue information, but had employee 

information. This vessel owned by the 

small entity is a classed vessel, which 

means the owner of this vessel will 

incur a cost of $102.90 in the initial year 

and again in the sixth year of the 

analysis period when the reissuance of 

the certificate takes place. We believe 

the estimated impact on the affected 

entity is not a significant economic 

impact. 

Based on the preceding analysis and 

noting that the NPRM received no 

public comments suggesting this rule 

would be a significant economic impact 

on small entities, the Coast Guard 

certifies under 5 U.S.C. 605(b) that this 

rule will not have a significant 

economic impact on a substantial 

number of small entities. 

C. Assistance for Small Entities 

Under section 213(a) of the Small 

Business Regulatory Enforcement 

Fairness Act of 1996, Public Law 104– 

121, we want to assist small entities in 

understanding this rule so that they can 

better evaluate its effects on them and 

participate in the rulemaking. If the rule 

will affect your small business, 

organization, or governmental 

jurisdiction and you have questions 

concerning its provisions or options for 

compliance, please contact the person 

listed in the FOR FURTHER INFORMATION

CONTACT section of this rule. The Coast 

Guard will not retaliate against small 

entities that question or complain about 

this rule or any policy or action of the 

Coast Guard. 

Small businesses may send comments 

on the actions of Federal employees 

who enforce, or otherwise determine 

compliance with, Federal regulations to 

the Small Business and Agriculture 

Regulatory Enforcement Ombudsman 

and the Regional Small Business 

Regulatory Fairness Boards. The 

Ombudsman evaluates these actions 

annually and rates each agency’s 

responsiveness to small business. If you 

wish to comment on actions by 

employees of the Coast Guard, call 1– 

888–REG–FAIR (1–888–734–3247). 

D. Collection of Information 

The Paperwork Reduction Act of 1995 

(44 U.S.C. 3501–3520) requires that the 

Coast Guard consider the impact of 

paperwork and other information 

collection burdens imposed on the 

public. According to the 1995 

amendments to the Paperwork 

Reduction Act, an agency may not 

collect or sponsor the collection of 

information, nor may it impose an 

information collection requirement 

unless it displays a currently valid OMB 

control number. 

This action amends the existing 

information collection requirements that 

were previously approved under OMB 

Control Number 1625–0017. 

As defined in 5 CFR 1320.3(c), 

‘‘collection of information’’ comprises 

reporting, recordkeeping, monitoring, 

posting, labeling, and other similar 

actions. The title and description of the 

information collections, a description of 

those who must collect the information, 

and an estimate of the total annual 

burden follow. The estimate covers the 

time for reviewing instructions, 

searching existing sources of data, 

gathering and maintaining the data 

needed, and completing and reviewing 

the collection. 

The summary of revised 1625–0017 

collection follows: 

Title: Various International 

Agreement Safety Certificates. 

OMB Control Number: 1625–0017. 

Summary of the Collection of 

Information: These Coast Guard-issued 

certificates are used as evidence of 

compliance with SOLAS by certain 

U.S.-flagged vessels on international 

voyages. Without the proper certificates 

or documents, a U.S. vessel could be 

detained in a foreign port. SOLAS 

applies to all mechanically propelled 

cargo and tank vessels of 500 or more 

GT ITC, and to all mechanically 

propelled passenger vessels carrying 

more than 12 passengers that engage in 

international voyages. By IMO’s 

definition, an ‘‘international voyage’’ 

means a voyage from a country to which 

the Convention applies to a port outside 

the country, or vice versa. 

SOLAS currently requires one or more 

of the following certificates to be carried 

on onboard certain passenger and cargo 

ships engaged in international voyages 

(46 CFR 2.01–25): 

(1) Passenger Ship Safety Certificate 

and Record. 

(2) Cargo Ship Safety Construction 

Certificate. 

(3) Cargo Ship Safety Equipment 

Certificate and Record. 

(4) Cargo Ship Safety Radio Certificate 

(issued by Federal Communications 

Commission (FCC)). 

(5) Nuclear Passenger Ship Safety 

Certificate. 

(6) Nuclear Cargo Ship Safety 

Certificate. 

(7) Safety Management Certificate. 

(8) International Ship Security 

Certificate. 

(9) High-Speed Craft Safety 

Certificate. 

The Coast Guard is adding the Polar 

Ship Certificate to the list of certificates 

that it can issue. 

Need for Information: In 2014 and 

2015, in resolutions MSC.385(94) and 

MEPC.264(68), IMO adopted the Polar 

Code. The Polar Code raises the safety 

standards for commercial ships 

operating in or transiting through polar 

waters, both Arctic and Antarctic, and 

enhances environmental protection for 

polar waters that include coastal 

communities in the U.S. Arctic. As a 

signatory to SOLAS, the United States 

has a treaty obligation to ensure 

compliance with SOLAS requirements. 

All mechanically propelled passenger 

vessels carrying more than 12 

passengers that engage in international 

voyages and all mechanically propelled 

cargo vessels of more than 500 GT ITC 

that engage in international voyages and 

operate within polar waters as defined 

by the Polar Code will be required to 

have the Polar Ship Certificate. The 

Polar Ship Certificate is valid for 5 

years. 

The purpose of this rulemaking is to 

ensure that U.S. marine inspectors can 

issue certificates required by SOLAS 

Polar Code provisions and that these 

certificates are being carried on all 

covered vessels. Additionally, this 

rulemaking will add the Polar Ship 

Certificate to the list of certificates that 

classification societies can issue on 

behalf of the Coast Guard in 

consideration of hazards and conditions 

unique to polar waters and a potential 

increase in traffic in Arctic and 

Antarctic waters. These additional 

hazards include navigation in ice and 

low temperatures, high latitude 

communications and navigation, 

remoteness from response resources, 

and limited hydrographic charting. 

We calculate the hour burden on an 

annual basis to review and post the 

Polar Ship Certificate, which takes into 

account the reissuance of the certificate 

every fifth year. The estimated burden is 

1/10 of an hour or 6 minutes. About 5 

vessels (23 total vessels/5 years) 

annually equates to 30 minutes or 0.5 

hours for the hour burden. Equivalently, 

7 classed and unclassed U.S.-flagged 

vessels (6 classed and 1 unclassed) × 6 

minutes in the first and sixth years + 8 

classed and unclassed U.S.-flagged 

vessels (6 classed and 2 unclassed) × 6 

minutes in the second, third, seventh 

and eighth year for a total of 276 

minutes divided by 46 vessels (7 in the 

first and sixth years and 8 in the second, 

third, seventh, and eighth year of the 

analysis period). Because vessel owners 

and operators will have 3 years to obtain 

a certificate, we divided the population 

essentially into thirds, with 7 in the first 

and sixth years and 8 in the second, 

third, and seventh and eighth years. 


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Federal Register / Vol. 82, No. 182 / Thursday, September 21, 2017 / Rules and Regulations 44117 

Proposed Use of Information: The 

Polar Ship Certificate attests that the 

vessel has met applicable requirements 

of SOLAS to the satisfaction of the U.S. 

Government. Without the certificate, 

U.S.-flagged vessels could be detained 

in foreign ports as being unsafe. 

Description of the Respondents: 

Respondents are the owner, agent, 

Master, operator, or person in charge of 

a U.S.-flagged vessel that transits in 

polar waters while engaged in an 

international voyage. 

Number of Respondents: The existing 

OMB-approved number of respondents 

is 413. This rule will not change the 

number of respondents because the 

vessel population that will be affected is 

a subset of the existing number of 

respondents; this rule is not adding new 

respondents to this collection. 

Frequency of Response: The existing 

OMB-approved number of responses is 

912. This rule will increase the number 

of responses by about 8 annually (23 

vessels/3-year renewal period) to 920. 

Burden of Response: The existing 

OMB-approved burden of response is 6 

minutes, or 0.1 hours, or the time it 

takes for a crewmember of a vessel to 

post the Polar Ship Certificate onboard 

the vessel. 

Estimate of Total Annual Burden: The 

existing OMB-approved total annual 

burden is 94.4 hours. Due to rounding, 

this rule will increase the burden hours 

annually by one hour. The estimated 

total annual burden will be 95 hours 

annually. 

As required by 44 U.S.C. 3507(d), we 

will submit a copy of this rule to OMB 

for its review of the collection of 

information. 

You need not respond to a collection 

of information unless it displays a 

currently valid control number from 

OMB. Before the Coast Guard can 

enforce the collection of information 

requirements in this rule, OMB will 

have to approve the Coast Guard’s 

request to collect this information. 

E. Federalism 

A rule has implications for federalism 

under Executive Order 13132 

(‘‘Federalism’’) if it has a substantial 

direct effect on States, on the 

relationship between the national 

government and the States, or on the 

distribution of power and 

responsibilities among the various 

levels of government. We have analyzed 

this rule under Executive Order 13132 

and have determined that it is 

consistent with the fundamental 

federalism principles and preemption 

requirements as described in Executive 

Order 13132. Our analysis follows. 

It is well settled that States may not 

regulate in categories reserved for 

regulation by the Coast Guard. It is also 

well settled that Coast Guard regulations 

regarding vessel design, construction, 

alteration, repair, maintenance, 

operation, equipping, personnel 

qualification, and manning issued under 

the authority of 46 U.S.C. 3306, 3703, 

7101, and 8101 are within fields 

foreclosed from regulation by the States. 

See United States v. Locke, 529 U.S. 89, 

90 (2000) (stating ‘‘Congress has left no 

room for state regulation of these 

matters.’’). This rule adds the Polar Ship 

Certificate to the list of certificates 

required, if applicable, by SOLAS. Also, 

this rule adds this certificate to the list 

of SOLAS certificates that the Coast 

Guard may authorize recognized 

classification societies to issue on behalf 

of the Coast Guard. The issuance of 

international certificates is within the 

sole purview of the Coast Guard to 

regulate pursuant to 46 U.S.C. 3306, 

3703, 7101, and 8101; 33 U.S.C. 1230 

and 1231, Executive Order 12234; and 

the principles discussed in Locke. Thus, 

the regulations are consistent with the 

principles for federalism and 

preemption requirements in Executive 

Order 13132. 

F. Unfunded Mandates Reform Act 

The Unfunded Mandates Reform Act 

of 1995, 2 U.S.C. 1531–1538, requires 

Federal agencies to assess the effects of 

their discretionary regulatory actions. In 

particular, the Act addresses actions 

that may result in the expenditure by a 

State, local, or tribal government, in the 

aggregate, or by the private sector of 

$100,000,000 (adjusted for inflation) or 

more in any one year. Though this rule 

will not result in such an expenditure, 

we do discuss the effects of this rule 

elsewhere in this preamble. 

G. Taking of Private Property 

This rule will not cause a taking of 

private property or otherwise have 

taking implications under Executive 

Order 12630 (‘‘Governmental Actions 

and Interference with Constitutionally 

Protected Property Rights’’). 

H. Civil Justice Reform 

This rule meets applicable standards 

in sections 3(a) and 3(b)(2) of Executive 

Order 12988, (‘‘Civil Justice Reform’’), to 

minimize litigation, eliminate 

ambiguity, and reduce burden. 

I. Protection of Children 

We analyzed this rule under 

Executive Order 13045 (‘‘Protection of 

Children from Environmental Health 

Risks and Safety Risks’’). This rule is 

not an economically significant rule and 

will not create an environmental risk to 

health or risk to safety that might 

disproportionately affect children. 

J. Indian Tribal Governments 

This rule does not have tribal 

implications under Executive Order 

13175 (‘‘Consultation and Coordination 

with Indian Tribal Governments’’), 

because it will not have a substantial 

direct effect on one or more Indian 

tribes, on the relationship between the 

Federal Government and Indian tribes, 

or on the distribution of power and 

responsibilities between the Federal 

Government and Indian tribes. 

K. Energy Effects 

We have analyzed this rule under 

Executive Order 13211 (‘‘Actions 

Concerning Regulations That 

Significantly Affect Energy Supply, 

Distribution, or Use’’). We have 

determined that it is not a ‘‘significant 

energy action’’ under that order because 

it is not a ‘‘significant regulatory action’’ 

under Executive Order 12866 and is not 

likely to have a significant adverse effect 

on the supply, distribution, or use of 

energy. 

L. Technical Standards 

The National Technology Transfer 

and Advancement Act, codified as a 

note to 15 U.S.C. 272, directs agencies 

to use voluntary consensus standards in 

their regulatory activities unless the 

agency provides Congress, through 

OMB, with an explanation of why using 

these standards will be inconsistent 

with applicable law or otherwise 

impractical. Voluntary consensus 

standards are technical standards (for 

example, specifications of materials, 

performance, design, or operation; test 

methods; sampling procedures; and 

related management systems practices) 

that are developed or adopted by 

voluntary consensus standards bodies. 

This rule does not use technical 

standards. Therefore, we did not 

consider the use of voluntary consensus 

standards. 

M. Environment 

We have analyzed this rule under 

Department of Homeland Security 

Management Directive 023–01 and 

Commandant Instruction M16475.lD 

(COMDTINST M16475.1D), which guide 

the Coast Guard in complying with the 

National Environmental Policy Act of 

1969 (42 U.S.C. 4321–4370f), and 

concluded that this action is one of a 

category of actions which do not 

individually or cumulatively have a 

significant effect on the human 

environment. A Record of 

Environmental Consideration 


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44118 Federal Register / Vol. 82, No. 182 / Thursday, September 21, 2017 / Rules and Regulations 

supporting this determination is 

available in the docket where indicated 

under the ADDRESSES section of this 

preamble. 

This rule involves: (1) Adding a Polar 

Ship Certificate to the list of certificates 

required, if applicable, by SOLAS; and 

(2) adding the Polar Ship Certificate to 

the list of SOLAS certificates that the 

Coast Guard is allowed to authorize 

recognized classification societies to 

issue on behalf of the Coast Guard. This 

action constitutes editorial or 

procedural changes concerning vessel 

documentation requirements (that is, 

issuance of Polar Ship Certificates) and 

the delegation of authority for issuing 

such certificates. Thus, as reflected in 

the Record of Environmental 

Consideration, this rule is categorically 

excluded under chapter 2, Section B, 

Paragraph 2 Categorical Exclusions 

(CEs) and Figure 2–1 (Coast Guard 

Categorical Exclusions), paragraphs 

(34)(a), (b), and (d) of COMDTINST 

M16475.1D. This rule promotes the 

Coast Guard’s maritime safety and 

environmental protection missions. 

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 amends 46 

CFR parts 2 and 8 as follows: 

Title 46—Shipping 

PART 2—VESSEL INSPECTIONS 

■ 1. The authority citation for 46 CFR 

part 2 is revised to read as follows: 

Authority: Sec. 622, Pub. L. 111–281; 33 

U.S.C. 1231, 1903; 43 U.S.C. 1333; 46 U.S.C. 

2103, 2110, 3306, 3703; Department of 

Homeland Security Delegation No. 

0170.1(II)(77), (90), (92)(a), (92)(b); E.O. 

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

277, sec. 1–105. 

§ 2.01–6 [Amended] 

■ 2. In § 2.01–6(a)(1), after the words 

‘‘passengers in U.S. ports’’ and before 

the words ‘‘holds a valid’’, remove the 

word ‘‘and’’; and after the text 

‘‘Passenger Ship Safety Certificate’’, add 

the text ‘‘, and, if applicable, holds a 

valid Polar Ship Certificate’’. 

■ 3. Amend § 2.01–25 by adding 

paragraphs (a)(1)(x) and (a)(2)(x) to read 

as follows: 

§ 2.01–25 International Convention for 

Safety of Life at Sea, 1974. 

(a) * * * 

(1) * * * 

(x) Polar Ship Certificate. 

(2) * * * 

(x) Polar Ship Certificate. 

* * * * * 

PART 8—VESSEL INSPECTION 

ALTERNATIVES 

■ 4. The authority citation for 46 CFR 

part 8 is revised to read as follows: 

Authority: 33 U.S.C. 1231, 1903, 1904, 

3803 and 3821; 46 U.S.C. 3103, 3306, 3316, 

and 3703; Department of Homeland Security 

Delegation No. 0170.1 and Aug. 8, 2011 

Delegation of Authority, Anti-Fouling 

Systems. 

■ 5. Amend § 8.320 as follows: 

■ a. In paragraph (b)(13), remove the 

word ‘‘and’’; 

■ b. In paragraph (b)(14), remove the 

period at the end of the paragraph and 

add, in its place, ‘‘; and’’; and 

■ c. Add paragraph (b)(15). 

The addition reads as follows: 

§ 8.320 Classification society authorization 

to issue international certificates. 

* * * * * 

(b) * * * 

(15) Polar Ship Certificate. 

* * * * * 

Dated: September 18, 2017. 

J.G. Lantz, 

Director, Commercial Regulations and 

Standards, U.S. Coast Guard. 

[FR Doc. 2017–20155 Filed 9–20–17; 8:45 am] 

BILLING CODE 9110–04–P 

FEDERAL COMMUNICATIONS 

COMMISSION 

47 CFR Part 64 

[WC Docket No. 16–106; FCC 16–148] 

Protecting the Privacy of Customers of 

Broadband and Other 

Telecommunications Services 

AGENCY: Federal Communications 

Commission. 

ACTION: Final rule. 

SUMMARY: Under the Congressional 

Review Act, Congress has passed, and 

the President has signed, Public Law 

115–22, a resolution of disapproval of 

the rule that the Federal 

Communications Commission (FCC) 

submitted pursuant to such Act relating 

to ‘‘Protecting the Privacy of Customers 

of Broadband and Other 

Telecommunications Services.’’ By 

operation of the Congressional Review 

Act, the rule submitted by the FCC shall 

be treated as if it had never taken effect. 

However, because the Congressional 

Review Act does not direct the Office of 

the Federal Register to remove the 

voided regulatory text and reissue the 

pre-existing regulatory text, the FCC 

issues this document to effect the 

removal of any amendments, deletions, 

or other modifications made by the 

nullified rule, and the reversion to the 

text of the regulations in effect 

immediately prior to the effect date of 

the Report and Order relating to 

‘‘Protecting the Privacy of Customers of 

Broadband and Other 

Telecommunications Services.’’ 

DATES: This action is effective 

September 21, 2017. 

FOR FURTHER INFORMATION CONTACT: For 

further information about this 

proceeding, please contact Melissa 

Kirkel, FCC Wireline Competition 

Bureau, Competition Policy Division, 

445 12th St. SW., Washington, DC 

20554, (202) 418–1580. 

SUPPLEMENTARY INFORMATION: This is a 

summary of the Commission’s Report 

and Order, adopted on October 27, 2016 

in WC Docket No. 16–106, FCC 16–148, 

which amended the rules under 47 CFR 

part 64, subpart U. It published a 

summary of the Report and Order on 

December 2, 2016 (81 FR 87274), and 

thereafter submitted it to Congress 

pursuant to the Congressional Review 

Act, 5 U.S.C. 801(a)(1)(A). On March 23, 

2017, the Senate passed a resolution of 

disapproval (S.J. Res. 34) of the Report 

and Order under the Congressional 

Review Act. The House of 

Representatives then passed S.J. Res. 34 

on March 28, 2017. President Trump 

signed the resolution into law as Public 

Law 115–22 on April 3, 2017. Therefore, 

under the terms of the Congressional 

Review Act, the Report and Order shall 

be ‘‘treated as though such a rule had 

never taken effect.’’ 5 U.S.C. 801(f). 

However, because the CRA does not 

include direction regarding the removal, 

by the Office of the Federal Register or 

otherwise, of the voided language from 

the Code of Federal Regulations, the 

FCC must publish this document to 

effect the removal of the voided text. 

This document will enable the Office of 

the Federal Register to effectuate 

congressional intent to remove the 

voided text of the rules adopted in the 

Report and Order as if it had never 

taken effect, and to restore the previous 

language in 47 CFR part 64, subpart U 

and prior state of the Code of Federal 

Regulations. 

This action is not an exercise of the 

FCC’s rulemaking authority under the 

Administrative Procedure Act, because 


asabaliauskas on DSKBBXCHB2PROD with RULES