[Federal Register Volume 79, Number 159 (Monday, August 18, 2014)]
[Rules and Regulations]
[Pages 48893-48939]
[FR Doc No: 2014-18721]

Vol. 79

Monday,

No. 159

August 18, 2014

Part V

Department of Homeland Security

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Coast Guard

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46 CFR Parts 2, 15, 61, et al.

Offshore Supply Vessels of at Least 6,000 GT ITC; Final Rule

Federal Register / Vol. 79 , No. 159 / Monday, August 18, 2014 /
Rules and Regulations

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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

46 CFR Parts 2, 15, 61, 62, 110, 111, 125, 126, 127, 128, 129, 130,
131, 132, 134, and 174

[Docket No. USCG-2012-0208]
RIN 1625-AB62

Offshore Supply Vessels of at Least 6,000 GT ITC

AGENCY: Coast Guard, DHS.

ACTION: Interim rule with request for comments.

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SUMMARY: The Coast Guard Authorization Act of 2010 (the Act) removed
the statutory size limit previously placed on offshore supply vessels
(OSVs), and required the Coast Guard to issue regulations to mitigate
the risk created as a result, noting the need ``to ensure the safe
carriage of oil, hazardous substances, and individuals in addition to
the crew'' on OSVs exceeding the previous size limit. In accordance
with the Act, the Coast Guard is issuing this interim rule to ensure
the safe carriage of oil, hazardous substances, and individuals other
than crew by requiring U.S.-flagged OSVs of at least 6,000 gross
tonnage as measured under the Convention Measurement System to comply
with existing regulatory requirements and international standards for
design, engineering, construction, operations and manning, inspections,
and certification. This rule also will affect any vessel of at least
500 gross register tons as measured under the Regulatory Measurement
System, if that vessel is not assigned a measurement under the
Convention Measurement System and the owner desires to have the vessel
certificated as an OSV. The Coast Guard intends to finalize this
interim rule after considering, and incorporating to the extent
appropriate, any comments from the public.

DATES: This interim rule is effective August 18, 2014. Comments on this
interim rule must be submitted to the online docket or received by the
Docket Management Facility by November 17, 2014. The Director of the
Federal Register has approved the incorporation by reference of certain
publications listed in this rule, effective August 18, 2014.

ADDRESSES: You may submit comments identified by docket number USCG-
2012-0208 using any one of the following methods:
    (1) Federal eRulemaking Portal: http://www.regulations.gov.
    (2) Fax:<PHONE_NUMBER>.
    (3) Mail: Docket Management Facility (M-30), U.S. Department of
Transportation, West Building Ground Floor, Room W12-140, 1200 New
Jersey Avenue SE., Washington, DC 20590-0001.
    (4) Hand delivery: Same as mail address above, between 9 a.m. and 5
p.m., Monday through Friday, except Federal holidays. The telephone
number is<PHONE_NUMBER>.
    To avoid duplication, please use only one of these four methods.
See the ``Public Participation and Request for Comments'' portion of
the SUPPLEMENTARY INFORMATION section below for instructions on
submitting comments.
    Viewing incorporation by reference material. You may inspect the
material incorporated by reference at room 5R20, U.S. Coast Guard
Headquarters, 2703 Martin Luther King Jr. Avenue SE., Washington, DC
20593 between 9 a.m. and 2 p.m., Monday through Friday, except Federal
holidays. The telephone number is<PHONE_NUMBER>. Copies of the material
are available as indicated in the ``Incorporation by Reference''
section of this preamble.

FOR FURTHER INFORMATION CONTACT: If you have questions on this rule,
email or call Lieutenant Anne Besser, CG-ENG-1, Coast Guard, email
<EMAIL_ADDRESS>telephone<PHONE_NUMBER>. If you have questions on
viewing or submitting material to the docket, call Cheryl Collins,
Program Manager, Docket Operations, telephone<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Table of Contents for Preamble

I. Public Participation and Request for Comments
    A. Submitting comments
    B. Viewing comments and documents
    C. Privacy Act
    D. Public meeting
II. Abbreviations
III. Executive Summary
    A. Purpose and authority
    B. Overview of rule
    C. Costs and benefits
IV. Regulatory History
V. Basis and Purpose
VI. Discussion of the Interim Rule
    A. Amendments to 46 CFR part 125, ``General,'' addressing
applicability, and grandfathering of existing vessels
    B. Amendments to 46 CFR part 125, ``General,'' clarifying
tonnage measurement
    C. Amendments to 46 CFR part 125, ``General,'' addressing
certificates
    D. Amendments to 46 CFR part 125, ``General,'' involving tank
protection for oil cargoes and oil fuel
    E. Amendments to 46 CFR part 125, ``General,'' addressing
carriage of noxious liquid cargoes in bulk
    F. Amendments to 46 CFR part 125, ``General,'' affecting
definitions
    G. Amendments to 46 CFR part 126, ``Inspection and
Certification'', and 127, ``Construction and Arrangements'',
addressing carriage of more than 36 offshore workers
    H. Amendments to 46 CFR part 127, ``Construction and
Arrangements''
    I. Amendments to 46 CFR part 128, ``Marine Engineering:
Equipment and Systems''
    J. Amendments to 46 CFR part 129, ``Electrical Installations''
    K. Amendments to 46 CFR part 130, ``Vessel Control''
    L. Amendments to 46 CFR part 131, ``Operations,'' addressing
vessel maneuvering
    M. Amendments to 46 CFR part 132, ``Fire-protection Equipment''
    N. Amendments to 46 CFR part 134, ``Added Provisions for
Liftboats''
    O. Amendments to 46 CFR part 2, ``Vessel Inspections''
    P. Amendments to 46 CFR part 15, ``Manning Requirements''
    Q. Amendments to 46 CFR part 62, ``Vital System Automation,''
and related amendment to 46 CFR part 61, ``Periodic Tests and
Inspections''
    R. Amendments to 46 CFR part 90, ``General Provisions'' for
Cargo and Miscellaneous Vessels
    S. Amendments to 46 CFR part 110, ``General Provisions'' within
Subchapter J, ``Electrical Engineering''
    T. Amendments to 46 CFR part 111, ``Electrical Systems--General
Requirements''
    U. Amendments to 46 CFR part 174, Subpart G, ``Special Rules
Pertaining to Offshore Supply Vessels''
    V. Amendments to Incorporation by Reference Sections, 46 CFR
parts 110 and 125
VII. Incorporation by Reference
VIII. Regulatory Analyses
    A. Regulatory Planning and Review
    B. Small Entities
    C. Assistance for Small Entities
    D. Collection of Information
    E. Federalism
    F. Unfunded Mandates Reform Act
    G. Taking of Private Property
    H. Civil Justice Reform
    I. Protection of Children
    J. Indian Tribal Governments
    K. Energy Effects
    L. Technical Standards
    M. Environment

I. Public Participation and Request for Comments

    We encourage you to participate in this rulemaking by submitting
comments and related materials. All comments received will be posted,
without change, to http://www.regulations.gov and will include any
personal information you have provided.

A. Submitting Comments

    If you submit a comment, please include the docket number for this
rulemaking (USCG-2012-0208), indicate the specific section of this
document to which each comment applies, and provide a reason for each
suggestion or recommendation. You may submit your comments and material
online, or by fax, mail or hand delivery, but please use only one of
these means. We recommend that you include your name and a mailing
address, an email address, or a phone number in the body of your
document so that we can contact you if we have questions regarding your
submission.
    To submit your comment online, go to http://www.regulations.gov,
and insert ``USCG-2012-0208'' in the ``Search'' box. Click on ``Submit
a Comment'' in the ``Actions'' column. If you submit your comments by
mail or hand delivery, submit them in an unbound format, no larger than
8\1/2\ by 11 inches, suitable for copying and electronic filing. If you
submit them by mail and would like to know that they reached the
Facility, please enclose a stamped, self-addressed postcard or
envelope.
    We will consider all comments and material received during the
comment period and may change this rule based on your comments.

B. Viewing Comments and Documents

    To view comments, as well as documents mentioned in this preamble
as being available in the docket, go to http://www.regulations.gov,
insert ``USCG-2012-0208'' in the ``Search'' box and click ``Search.''
Click the ``Open Docket Folder'' in the ``Actions'' column. If you do
not have access to the internet, you may view the docket online by
visiting the Docket Management Facility in Room W12-140 on the ground
floor of the Department of Transportation West Building, 1200 New
Jersey Avenue SE., Washington, DC 20590, between 9 a.m. and 5 p.m.,
Monday through Friday, except Federal holidays. We have an agreement
with the Department of Transportation to use the Docket Management
Facility.

C. Privacy Act

    Anyone can search the electronic form of comments received into any
of our dockets by the name of the individual submitting the comment (or
signing the comment, if submitted on behalf of an association,
business, labor union, etc.). You may review a Privacy Act notice
regarding our public dockets in the January 17, 2008, issue of the
Federal Register (73 FR 3316).

D. Public Meeting

    We do not plan to hold a public meeting. But, you may submit a
request for one using one of the methods specified under  ADDRESSES. In
your request, explain why you believe a public meeting would be
beneficial. If we determine that a public meeting would aid this
rulemaking, we will hold one at a time and place announced by a later
notice in the Federal Register.

II. Abbreviations

The Act The Coast Guard Authorization Act of 2010 (Pub. L. 111-281)
ACP Alternate Compliance Program
ANSI American National Standards Institute
API RP American Petroleum Institute Recommended Practice
ASTM ASTM International (formerly American Society for Testing and
Materials)
CFR Code of Federal Regulations
COI Certificate of Inspection
ExCB Ex Certification Body
FR Federal Register
GRT Gross register tons as measured under 46 U.S.C. 14502,
Regulatory Measurement System
GT ITC Gross tonnage as measured under 46 U.S.C. 14302, Convention
Measurement System
IBC Code International Code for the Construction and Equipment of
Ships Carrying Dangerous Chemicals in Bulk
ICLL International Convention on Load Lines, 1966, as amended
IEC International Electrotechnical Commission
IECEx IEC System for Certification to Standards Relating to
Equipment for use in Explosive Atmospheres
IMCA International Marine Contractors Association
IMO International Maritime Organization
MARPOL 73/78 International Convention for the Prevention of
Pollution from Ships, 1973, as modified by the Protocol of 1978
relating thereto
MISLE Marine Information for Safety and Law Enforcement
NAICS North American Industry Classification System
NEC National Electric Code
NFPA National Fire Protection Association
NLS Noxious liquid substances
NOSAC National Offshore Safety Advisory Committee
OCS Outer Continental Shelf
OCMI Officer in Charge, Marine Inspection
OICNW Officer in charge of the navigational watch
OSV Offshore supply vessel
Pub. L. Public Law
SBA Small Business Administration
STCW International Convention on Standards of Training,
Certification and Watchkeeping for Seafarers, 1978, as amended
STCW Code Seafarers' Training, Certification, and Watchkeeping Code
SOLAS International Convention for the Safety of Life at Sea, 1974,
as amended
U.S.C. United States Code

III. Executive Summary

A. Purpose and Authority

    In late 2010, Congress removed the statutory size limit on offshore
supply vessels (OSVs) and directed the Coast Guard to issue regulations
``to ensure the safe carriage of oil, hazardous substances, and
individuals in addition to the crew'' on OSVs exceeding the previous
size limit, taking ``into consideration the characteristics of offshore
supply vessels, their methods of operation, and their service in
support of exploration, exploitation, or production of offshore mineral
or energy resources.'' As is explained below, developments in the U.S.
offshore industry created demand for larger OSVs than previously were
allowed, and safely increasing the size of OSVs requires modifications
to existing OSV regulations in order to address hazards associated with
larger vessels carrying more cargo and personnel. Accordingly, the
Coast Guard developed this interim rule to address safety and
environmental hazards associated with larger OSVs. This interim rule is
authorized and required by section 617 of the Coast Guard Authorization
Act of 2010 (Pub. L. 111-281) (the Act).

B. Overview of Rule

    This interim rule only implements requirements for OSVs that exceed
the pre-Act size limit for OSVs and are contracted for after the
effective date of this rule (referred to in this document as ``large
OSVs''). It does not affect OSVs that predate this rule or that do not
meet the size threshold that defines large OSVs. In addition to
carrying out statutory requirements explicitly noted in section 617 of
the Act, such as statutory requirements for manning and oil spill
protection, this rule addresses Congress' direction to meet safety
needs by establishing design and operation standards for large OSVs. To
develop these standards, the Coast Guard first evaluated existing
requirements for OSVs (contained in 46 CFR subchapter L) to determine
whether they were adequate for ensuring safety on the new, larger OSVs.
Where not sufficient, the Coast Guard then used existing international
standards that these large OSVs are highly likely to meet in order to
compete on the international marketplace. For example, this rule
requires large OSVs to hold certain international certificates,
including Convention for the Safety of Life at Sea, 1974, as amended
(SOLAS) and Convention for the Prevention of Pollution from Ships
(MARPOL 73/78)

certificates, even if the OSV is certificated to operate only in U.S.
waters. As discussed in more detail below, the safety requirements in
these international standards align with the increased risk associated
with large OSVs' capacity to carry cargo and passengers, and we also
consider it very likely that large OSVs will comply with these
international standards in order to engage in international commerce.
Where needed, the Coast Guard used other, existing domestic standards
for tank vessels and cargo vessels of similar size as these new, larger
OSVs. For example, this rule requires that large OSVs meet the marine
engineering requirements of 46 CFR subchapter F and the electrical
engineering requirements of 46 CFR subchapter J, without the exceptions
made for other OSVs, because of the increased capacity of large OSVs
and the corresponding increase in the potential consequences of an
incident involving a large OSV. Large OSVs require increased capacity
to carry larger volumes of oil-based materials and hazardous materials,
such as noxious liquid substances (NLS) used in drilling muds, which
increases the risk to the environment if spilled. Existing OSV
standards do not account for conditions found further offshore, such as
larger and higher wave amplitude, or the capacity to carry more
personnel. The additional requirements for large OSVs address safe
operations in these conditions, with more cargo and more personnel.
    This rule allows a large OSV to carry more than 36 offshore workers
if the OSV meets stability, marine engineering, fire protection, and
lifesaving provisions set forth in this interim rule. Large OSVs are
capable of carrying more than the 36 offshore workers previously
allowed and conducting operations requiring more workers, and this
interim rule implements safety provisions intended to address the risk
associated with carrying more personnel.

C. Costs and Benefits

    This rule is not economically significant. We anticipate this rule
will not result in additional costs to industry or government. Because
of the previous size limit on OSVs, there currently are no U.S.-flagged
vessels of at least 6,000 GT ITC or 500 GRT operating as OSVs and
certificated under subchapter L requirements. Consequently, this rule
will not directly impact any existing population of U.S.-flagged
vessels.
    Furthermore, the interim rule is based upon existing regulatory and
technical standards from Titles 33 and 46 of the Code of Federal
Regulations (CFR). Where existing regulations and technical standards
do not account for the scale of operations of large OSVs, the Coast
Guard supplemented them with standards from the International Maritime
Organization (IMO) Conventions, and industry consensus engineering
standards.
    Owners and operators would comply with these standards even in the
absence of this rule, in order to compete for international work.
Therefore, no additional costs will be incurred by industry in the
construction and the operation of a large U.S.-flagged OSV.
    In addition to fulfilling Congressional direction to issue
regulations ``to ensure the safe carriage of oil, hazardous substances,
and individuals in addition to the crew,'' the interim rule will
standardize regulatory oversight by the Coast Guard. This is expected
to reduce the time necessary for the approval process since standards
will be transparent in regulation, which will lead to unquantifiable
cost savings to both industry and government.
    Additionally, the OSVs to which this interim rule applies can carry
a large quantity of oil and hazardous material, as well as large
numbers of persons on board. In comparison to OSVs of less than 6,000
GT ITC, these large vessels have decreased maneuverability and
responsiveness due to the vessels' increased tonnage and length. These
vessels operate in a high-risk environment near offshore units and
other vessels, and a collision between a large OSV and an offshore unit
or another vessel could result in a significant disaster. This interim
rule provides a set of standards consistent with the risks and
consequences of large OSVs. The costs and benefits of this rule are
discussed in Section VIII.A. below and in the regulatory analysis
available in the docket.

IV. Regulatory History

    The Coast Guard is issuing this interim rule without prior notice
and opportunity to comment pursuant to section 617(f) of the Act, which
directs the Secretary of the department in which the Coast Guard is
operating to issue an interim rule ``as soon as is practicable and
without regard to the provisions of chapters 5 and 6 of title 5, United
States Code.'' By the same authority, the Coast Guard is making this
interim rule effective immediately upon publication.
    Although this interim rule is effective immediately, we invite
public comments on it. We will consider public comments when developing
a final rule that will supersede this interim rule, and we may make
changes in response to public comments on any part of this interim
rule.
    In addition to revisions authorized by the Act, this rule makes a
limited number of administrative changes to improve the readability and
organization of the revised parts. These administrative changes include
the standardization of tonnage acronyms, the insertion of clarifying
language that was not necessary prior to this rule, the reorganization
of several parts to accommodate new language, and the replacement of
some terms with their functional equivalents. These administrative
changes only clarify existing text and the distinction between tonnage-
based requirements in place before and after the Act: they make no
substantive change to regulatory requirements. Therefore, the Coast
Guard finds good cause exists under 5 U.S.C. 553(b)(B) for forgoing a
notice of proposed rulemaking with respect to these administrative
changes, because the changes will have no substantive effect on the
public, and notice and comment are therefore unnecessary. For the same
reasons, the Coast Guard finds good cause under 5. U.S.C. 553(d)(3) to
make these administrative changes effective fewer than 30 days after
publication in the Federal Register.

V. Basis and Purpose

    As defined by statute, an OSV is a motor vessel that regularly
carries goods, supplies, individuals in addition to the crew, or
equipment in support of exploration, exploitation, or production of
offshore mineral or energy resources (46 U.S.C. 2101(19)). OSVs may
support the construction of offshore energy facilities, or may
transport supplies and personnel to and from these facilities. OSVs
carry offshore goods and supplies, handle anchors and mooring
equipment, deliver excess fuel oil to oil production facilities, and
perform other support functions.
    Until recently, statute limited the size of OSVs to less than 500
gross register tons (GRT) as measured under 46 U.S.C 14502, or an
alternate tonnage established as 6,000 gross tonnage as measured under
46 U.S.C. 14302 (GT ITC) (for background on the 6,000 GT ITC limit,
see: 46 U.S.C. 14104 and 14302; 61 FR 66613, December 18, 1996; and 76
FR 77129, December 12, 2011). Because of the statutory size limit on
OSVs, OSV regulations developed prior to the publication of this
interim rule--referred to in this preamble as ``pre-2014''
regulations--contemplated smaller vessels making short trips and
capable of carrying only limited amounts of cargo and numbers of

people. Therefore, those pre-2014 regulations for OSVs differ from
regulations put in place for other, larger types of vessels.
    The U.S. offshore industry has become more complex over time,
however, creating a demand for larger, multi-purpose OSVs capable of
operating at greater distances from shore and for more extended
periods, using more advanced propulsion or machinery systems and
carrying more cargo and more people on board. In response, Congress
removed the size limit on OSVs (see section 617(a) of the Act) and made
other statutory changes to effectively create a subgroup of OSVs
distinguished by a tonnage assignment of at least 6,000 GT ITC (large
OSVs). For example, the Act made it possible for large OSVs to be
considered tank vessels (see section 617(a)(1)(B) of the Act) even
though OSVs of less than 500 GRT or 6,000 GT ITC are deemed not to be
tank vessels, and it specified oil fuel tank protection requirements
for OSVs of at least 6,000 GT ITC (see section 617(e) of the Act). The
Act also specified the number and qualifications of crew for large
OSVs, and specified the division of watches (see sections 617(b), (c),
and (d) of the Act).
    As noted, the Coast Guard's pre-2014 OSV regulations were developed
for smaller vessels conducting limited operations. Removing the cap on
the size of OSVs requires additions to pre-2014 OSV regulations in
order to address hazards associated with larger vessels carrying more
cargo and personnel. Accordingly, Congress directed the Coast Guard to
issue regulations to implement the Act with respect to OSVs of at least
6,000 GT ITC and ``to ensure the safe carriage of oil, hazardous
substances, and individuals in addition to the crew on such vessels''
(section 617(f) of the Act). Congress also directed the Coast Guard to
``take into consideration the characteristics of OSVs, their methods of
operation, and their service in support of exploration, exploitation,
or production of offshore mineral or energy resources'' when developing
these regulations (section 617(f) of the Act).
    In developing this interim rule, the Coast Guard has provided
necessary standards for the safe design, manning, and operation of
large OSVs. In some cases, this has required additional regulatory text
to maintain the distinction between pre-2014 regulations that may apply
to some or all OSVs, and regulations implemented by this interim rule
solely for large OSVs. After this rule is finalized, the Coast Guard
may initiate a separate, broader rulemaking to address issues common to
OSVs of all sizes.

VI. Discussion of the Interim Rule

    This rule implements requirements for OSVs of at least 6,000 GT ITC
and, as explained below, may affect OSVs of at least 500 GRT that are
not assigned a GT ITC. Because of the previous size limit on OSVs,
there were no U.S.-flagged vessels of at least 6,000 GT ITC or 500 GRT
operating as OSVs when the Act was promulgated, and this rule only
applies to vessels contracted for or keels of which were laid after the
date of publication. Consequently, this rule will not directly impact
any existing population of U.S.-flagged vessels. The Coast Guard has
issued certificates of inspection for two vessels already delivered
pursuant to the interim certification provisions found in section
617(f)(3) of the Act, and we are aware that industry is considering
others. It is possible that owners of existing cargo vessels may seek
certification of these vessels as OSVs now that the statutory size
limit is removed: These are provided for in new applicability language
discussed below.
    When developing these regulations, the Coast Guard looked first to
applying the pre-2014 OSV regulations or pre-existing regulations for
large vessels such as cargo and tank vessels. If these were not
appropriate for application to large OSVs because they do not account
for the scale of operations of large OSVs, we then looked to
international standards because these large, purpose-built OSVs are
likely to comply with such standards in order to engage in
international commerce. In limited cases we found international
standards needed to be supplemented either because the standard
required interpretation by the implementing nations, or needed
additional minimum standards to ensure the safe carriage of oil,
hazardous substances, and individuals in addition to the crew. In these
limited cases, the Coast Guard supplemented the international standards
without sacrificing the flexibility to operate internationally by using
other international standards or existing Coast Guard guidance.
    This interim rule amends several subchapters of Title 46 of the
CFR. Most of the amendments are located in Subchapter L, which is
specific to OSVs and consists of Parts 125 through 134. Changes to
Parts 125 through 134 are discussed first in the preamble below, so as
to provide a foundation for explaining related changes located in other
subchapters. Following the discussion of Subchapter L, the preamble to
this rule addresses related amendments that apply to large OSVs but are
located elsewhere in Title 46, such as in Part 111 on electrical
systems. Changes to subchapters other than L are discussed in the order
they appear in the CFR.

A. Amendments to 46 CFR Part 125, ``General,'' Addressing
Applicability, and Grandfathering of Existing Vessels

    Prior to this rule, the applicability section of Subchapter L
relied on a definition of ``offshore supply vessel (OSV)'' that limited
the size of OSVs in keeping with the statutory authority at the time
the section was written. As discussed above, the Act removed size
limits for OSVs from the underlying statute. In response to that
change, this interim rule removes the upper size limits from the
regulatory definition of OSV, and also creates a regulatory regime for
large OSVs without changing pre-2014 requirements for OSVs of less than
500 GRT or 6,000 GT ITC. These actions necessitate changes to Sec.
125.100, the applicability section of Subchapter L.
    Section 125.100 paragraphs (b) and (c), which were put in place
prior to this interim rule and are not substantively changed by it,
provide for grandfathering of vessels contracted for, or the keels of
which were laid, prior to March 15, 1996, on the condition that those
vessels completed construction and obtained a Certificate of Inspection
(COI) within 2 years. This interim rule mimics that structure by adding
a paragraph for grandfathering of large OSVs contracted for, or the
keels of which were laid, prior to the date of publication of this
interim rule, with the same condition that vessels complete
construction and obtain a COI within 2 years.
    This grandfathering structure is intended to capture two types of
vessels: Vessels certificated in accordance with section 617(f)(3) of
the Act; and vessels of at least 6,000 GT ITC that the Coast Guard does
not consider to have undergone conversion under the provisions of Sec.
125.100(e), which has been redesignated as paragraph (g) as discussed
later in this section. The Coast Guard expects that very few vessels
will qualify for grandfathering under this provision, and that most
large OSVs will comply with and be certificated under Subchapter L.
    The Coast Guard considered postponing the grandfathering date until
3 or 6 months after the publication of the interim rule, as is common
when implementing new date-based regulations. In this case, however,
Congress directed the Coast Guard to implement the Act ``as soon as is

practicable'' and provided for an interim process by which large OSVs
could be certificated prior to the rule's publication. Postponing the
grandfathering date would only prolong the use of the interim process.
Therefore, the Coast Guard decided to use the date of publication as
the date for grandfathering provisions.
    Because of the two paragraphs added to accommodate this
grandfathering structure for large OSVs, this interim rule redesignates
pre-2014 paragraphs (d) and (e) as (f) and (g), respectively. Both
paragraphs remain otherwise unchanged, except that in paragraph (g) we
have replaced the term ``major alteration'' with ``major conversion.''
In the specific context of Sec.  125.100, the Coast Guard has
consistently understood this phrase to be synonymous with ``major
conversion,'' which is a defined term in Sec.  125.160. A review of
past major conversion determinations conducted for OSVs since 1997
confirmed that the Coast Guard reads ``major alteration'' in Sec.
125.100 to mean ``major conversion,'' as that term is defined in
Subchapter L and 46 U.S.C. 2101(14a). For these reasons, replacing
``major alteration'' in Sec.  125.100 improves consistency and clarity,
is an administrative change without substantive effect as discussed in
Section IV of this preamble, and is effective upon publication.

B. Amendments to 46 CFR Part 125, ``General,'' Clarifying Tonnage
Measurement

    This interim rule applies to OSVs of at least 6,000 GT ITC. OSVs
assigned a tonnage of less than 6,000 GT ITC, or of less than 500 GRT
when no GT ITC is assigned, are not covered by this interim rule; they
remain subject to the same regulations that applied prior to the Act
and this interim rule. This rule adds a new Sec.  125.103 called
``Tonnage Measurement'' to clarify tonnage applicability issues with
respect to OSVs that are assigned both a GT ITC and a GRT, as well as
to OSVs without a GT ITC assignment that are of at least 500 GRT and
therefore were prohibited from operating as OSVs prior to the Act.
    Under the tonnage statute at 46 U.S.C. subtitle II, part J, U.S.-
flagged vessels are assigned tonnages under one of two measurement
systems, and in some cases vessels may be measured under both. Gross
tonnage assigned under the system of the International Convention on
Tonnage Measurement of Ships, 1969 (referred to in U.S. law as the
``Convention Measurement System'') is expressed as ``GT ITC,'' whereas
tonnage assigned under the older U.S. domestic measurement system
(referred to in U.S. law as the ``Regulatory Measurement System'') is
expressed as ``GRT.''
    The Act does not discuss OSVs of at least 500 GRT without a GT ITC
assignment. Because the Act removed the upper tonnage limit on OSVs,
however, such a vessel could be certificated as an OSV if its tonnage
was at least 500 GRT, and it was not assigned a GT ITC. Without changes
to the terms of Subchapter L, such a vessel might not be subject to
many important regulations for the safe carriage of oil, hazardous
substances, and individuals in addition to the crew. The Coast Guard
does not believe Congress intended to create a category of OSVs not
previously permitted and not subject to the safety regulations
governing OSVs of the same size and conducting the same activities.
Therefore, the new Sec.  125.103(b) provides that an OSV of at least
500 GRT that is not assigned a GT ITC must comply with regulations for
OSVs of at least 6,000 GT ITC. This provision does not prevent a vessel
of at least 500 GRT from obtaining a GT ITC assignment and, if that
assignment is less than 6,000 GT ITC, complying with regulations
appropriate for vessels of less than 6,000 GT ITC.
    Because a vessel's GRT can be lower than its GT ITC, this rule adds
new Sec.  125.103(a), which ensures that appropriate existing
regulations are applied to large OSVs by providing that the GT ITC
assignment must be used when applying tonnage-dependent regulations,
irrespective of the vessel's GRT assignment. This requirement
recognizes that a large OSV's increased capacity for cargo and
personnel, and ability to operate greater distances from shore for more
extended periods, carries the potential for higher-consequence
incidents and a corresponding need for safety and environmental
protection requirements. We do not believe Congress intended to permit
OSVs of at least 6,000 GT ITC to avoid meeting safety and environmental
protection regulations merely by shifting to the GRT system of
measurement.
    The regulatory text added by this interim rule for large OSVs uses
the phrasing ``6,000 GT ITC (500 GRT if GT ITC is not assigned)'' to
ensure that the applicability of specific requirements throughout Title
46 of the CFR is clear. The pre-2014 regulatory text, however, uses the
term ``gross tons.'' After reviewing the history and common use of
these provisions in the specific context of Subchapter L, we concluded
that in each relevant instance this term refers to GRT, and that
vessels without an assigned GRT appropriately use their GT ITC to apply
provisions dependent on ``gross tons.'' Accordingly, we added new Sec.
125.103(c) to clarify this. Because this provision clarifies the
historical meaning and current use of the term ``gross tons'' in
Subchapter L, it is an administrative change without substantive effect
as discussed in Section IV of this preamble, does not require prior
notice and comment, and is effective upon publication. The Coast Guard
has initiated a separate rulemaking to standardize tonnage terms
throughout its regulations (see ``Tonnage Regulations Amendments;
Proposed Rule'' published at 79 FR 19420 on April 8, 2014).

C. Amendments to 46 CFR Part 125, ``General,'' Addressing Certificates

    This interim rule adds a new Sec.  125.105 requiring that large
OSVs hold certain certificates indicating compliance with SOLAS and
MARPOL 73/78, even if the OSV is certificated to operate only in U.S.
waters. Specifically, large OSVs must maintain Cargo Ship Safety
Construction and Cargo Ship Safety Equipment certificates evidencing
that these OSVs meet the minimum standards to which cargo ships on
international voyages are held. They also must maintain a Safety
Management Certificate evidencing that the OSV owner or operator uses
an approved safety management system. In addition to these SOLAS
certificates, large OSVs must maintain International Oil Pollution
Prevention and International Air Pollution Prevention certificates,
which, respectively, demonstrate that the vessels have the means to
properly dispose of oils and control emissions.
    Using these international standards for domestic voyages, rather
than a separate set of domestic standards, will create efficiencies and
promote a uniform standard. The cargo ship safety certificates and
safety management certificate already are required of all U.S. vessels
of 500 GRT or more on international voyages, including tankships and
miscellaneous non-freight vessels certificated under Subchapters D and
I. The pollution prevention certificates already are required of all
vessels of more than 400 GRT in the waters of nations signatory to
MARPOL 73/78, including the United States. We therefore anticipate that
the owners of most large OSVs subject to this rule would seek SOLAS and
MARPOL certificates voluntarily, either because they are required in
U.S. waters as discussed above or because they are necessary in order
to work overseas. We also believe that the safety requirements that
must be met in order to obtain these

certificates are appropriate to ensure the safe carriage of oil,
hazardous substances, and individuals in addition to the crew on such
vessels.
    New Sec.  125.105 also requires large OSVs to obtain an
International Load Line Certificate, and the Coast Guard added a
paragraph to existing Sec.  125.140 specifying that each large OSV must
be assigned a load line in accordance with the International Convention
on Load Lines, 1966, as amended (ICLL). Current industry practice is to
build and operate most OSVs to ICLL standards, and the Coast Guard
believes that OSVs of at least 6,000 GT ITC are very likely to be built
to ICLL standards as well. The Coast Guard believes that requiring
international load lines, rather than a variation permitted for
domestic vessels under 46 CFR Subchapter E, will not present a
significant burden to the industry.
    Separately, this rule adds to existing Sec.  125.150 in order to
align the requirements for lifesaving appliances on large OSVs with
SOLAS. It adds new paragraph (b) requiring large OSVs, including those
authorized to carry more than 36 offshore workers when not on an
international voyage (see Section VI.G. below), to comply with those
portions of 46 CFR part 199 that implement SOLAS lifesaving
requirements designed for cargo vessels. This rule makes no substantive
change to the existing requirement for OSVs of less than 6,000 GT ITC,
but redesignates it as Sec.  125.150(a) and adds language to that
paragraph clarifying the applicability.

D. Amendments to 46 CFR Part 125, ``General,'' Involving Tank
Protection for Oil Cargoes and Oil Fuel

    The Coast Guard anticipates that OSVs of at least 6,000 GT ITC will
carry a greater volume of liquid cargoes than OSVs to date. The Coast
Guard believes that Congress intended to enable the carriage of larger
volumes of these liquids so as to better serve the changing offshore
industry. The Coast Guard also believes that the size and cargo
capacity of OSVs of at least 6,000 GT ITC create the potential for
significant environmental damage in the event of a spill or other
casualty, and that appropriate design and construction requirements
should therefore accompany this increased capacity.
    Accordingly, this interim rule provides double hull requirements
for large OSVs carrying oil to align with other vessels of similar
capabilities and capacities. Specifically, this rule amends Sec.
125.110 to require that tanks authorized for carriage of cargo oil,
including drilling fluids containing oil, comply with double hull
requirements designed for tank vessels and found in 33 CFR 157.10d.
Applying tank vessel double hull requirements is appropriate in light
of the pollution risk that accompanies the large volumes of oil and
oil-based cargoes these OSVs may carry. In Sec.  125.110, we also
inserted a reference to new Sec.  125.125, discussed below, for other
flammable or combustible liquids carried on large OSVs.
    In addition to protection for cargo tanks, this rule provides for
protection of oil fuel tanks as directed by the Act. Section 617(e) of
the Act requires that an OSV of at least 6,000 GT ITC, delivered after
August 1, 2010, or constructed under a contract entered into after
October 15, 2010, with an aggregate capacity of 600 cubic meters or
more of oil fuel, must comply with Regulation 12A (``Oil Fuel Tank
Protection'') of MARPOL Annex I, regardless of whether the OSV is
engaged in the coastwise trade or on an international voyage.
Regulation 12A requires vessels provide double hull protection for fuel
oil tanks, or demonstrate compliance with an accidental oil fuel
outflow performance standard. This rule adds a new Sec.  125.115 to
Title 46, to meet the requirements set forth in the Act.
    Historically Coast Guard regulations have distinguished between oil
cargoes and excess fuel oil carried by OSVs. The new Sec.  125.115
maintains that distinction by specifying that a large OSV is not
subject to Subchapter D of Title 46, Chapter I (``Tank Vessels'') if
the OSV is only transferring excess fuel oil from its own fuel supply
tanks to an offshore drilling or production facility, is in the service
of oil exploitation, and is not a tankship as defined in Sec.  30.10-
67. This provision is in keeping with 46 U.S.C. 3702(b) as amended by
the Act, and preserves OSVs' historical ability to transfer excess fuel
oil without meeting tank vessel requirements. As described elsewhere in
this preamble, however, the Coast Guard has based certain other
requirements for large OSVs on tank vessel regulations where
appropriate.

E. Amendments to 46 CFR Part 125, ``General,'' Addressing Carriage of
Noxious Liquid Cargoes in Bulk

    As discussed above, the Coast Guard expects large OSVs to carry
more, and more varied, liquid cargoes than OSVs of less than 6,000 GT
ITC. This rule adds a new Sec.  125.125 to Title 46, to help ensure the
safe carriage of NLS in bulk on OSVs of at least 6,000 GT ITC. Common
NLS carried on board OSVs include drilling fluids. Drilling fluids that
contain salt or chemicals are subject to MARPOL Annex II, which is
implemented in the United States via the Act to Prevent Pollution from
Ships (33 U.S.C. 1901 et seq.) and which was revised, effective 2007,
to require vessels carrying listed NLS in bulk to comply with the
International Code for the Construction and Equipment of Ships Carrying
Dangerous Chemicals in Bulk (IBC Code).
    MARPOL Annex II recognizes, however, that the IBC Code is not
appropriate for all vessels. For certain vessels, including OSVs,
MARPOL Annex II provides that Flag Administrations may establish
appropriate measures to minimize the uncontrolled discharge of NLS into
the sea. For OSVs, recent amendments to MARPOL Annex II explain that
these appropriate measures should be based on IMO Resolution A.673(16),
which provides an alternative to the IBC Code. In 2010, the Coast Guard
issued guidance on implementing Resolution A.673(16) for new and
existing OSVs (CG-522 Policy Letter 09-01, Rev. 1, April 5, 2010) (due
to reorganization, CG-522 has been redesignated CG-OES). The new Sec.
125.125 integrates some of this guidance in regulation. It allows a
large OSV to carry NLS in bulk in its integral and fixed independent
tanks if the OSV holds either a valid Certificate of Fitness or a valid
International Pollution Prevention Certificate for the carriage of NLS
in bulk, issued pursuant to regulations implementing Resolution
A.673(16) at Sec.  125.125(b) through (f).
    Of the paragraphs implementing Coast Guard guidance on Resolution
A.673(16), paragraphs (b) and (c) describe the types of NLS a large OSV
may carry, and the methods and conditions required for carriage.
Paragraphs (d) and (e) address the required Cargo Record book,
Shipboard Marine Pollution Emergency Plan, and Procedures and
Arrangements Manual. These documents already are required under MARPOL
Annex II, 33 CFR part 151, and 46 CFR part 153, but the new Sec.
125.125 permits the Procedures and Arrangements Manual to depart from
requirements found in MARPOL Annex II, Appendix 4, in the same ways
provided in the Coast Guard guidance on Resolution A.673(16).
Paragraphs (f) and (g) set forth requirements for transferring NLS to
and from a portable tank, which is otherwise authorized only by an
endorsement on the vessel's COI.
    Although Sec.  125.120 already addresses the carriage of NLS for
OSVs of less than 6,000 GT ITC, the new Sec.  125.125 incorporates
recent amendments to MARPOL Annex II and recent guidance

issued specifically for OSVs. Implementing the Coast Guard's existing
guidance on Resolution A.673(16) creates flexibility for large OSVs and
facilitates operating overseas where they might otherwise be deemed to
be in violation of MARPOL Annex II.
    Finally, this rule clarifies that pre-2014 Sec.  125.120 applies
only to the carriage of NLS in bulk by OSVs of less than 6,000 GT ITC.

F. Amendments to 46 CFR Part 125, ``General,'' Affecting Definitions

    This interim rule revises the definition of ``offshore supply
vessel'' in Sec.  125.160 in accordance with the Act, by removing the
upper size limits previously placed on OSVs. Under the revised
definition, an OSV is defined by its propulsion method and activities,
and is more than 15 gross tons. The interim rule also adds definitions
of ``gross register tons (GRT)'' and ``gross tonnage ITC (GT ITC)'' as
these terms are explained above. Adding these terms is necessary in
order to insert regulations specific to OSVs of at least 6,000 GT ITC,
and to clarify the applicability of regulations to OSVs of at least 500
GRT if GT ITC is not assigned.
    This interim rule does not affect the definition of liftboats. As
discussed later in this preamble, however, this interim rule requires
special approval of liftboats of at least 6,000 GT ITC.

G. Amendments to 46 CFR Parts 126, ``Inspection and Certification,''
and 127, ``Construction and Arrangements,'' Addressing Carriage of More
Than 36 Offshore Workers

    OSVs carry personnel who work on, and in support of, offshore
energy facilities. Under pre-2014 regulations, OSVs could carry a
maximum of 36 offshore workers when not on an international voyage.
Removing the size limit on OSVs makes it possible for them to carry
more personnel, which is consistent with operations occurring farther
offshore as well as with more labor-intensive operations such as
platform and subsea construction. In order to safely carry more
personnel, however, OSVs must be designed and built to standards that
provide an adequate level of safety with respect to stability, marine
engineering, fire protection, and lifesaving considerations, and
personnel must be properly prepared to react to incidents such as fires
or collisions. This is because the larger number of people on board
increases the potential loss of life in the event of an incident. As we
discussed in our February 2012 request for comments on accommodation
vessels (77 FR 5039), the level of sea-going experience and vessel
familiarity may vary widely among those working offshore, and some
personnel could be expected to behave like passengers in an emergency.
We therefore look to design standards to provide an adequate level of
protection for offshore workers on large OSVs. The desired standard
should be flexible enough to be scaled according to the potential
consequence presented by the vessels' operational profile. After
considering several possible standards, including domestic and SOLAS
standards for passenger, cargo, and industrial vessels, the Coast Guard
concluded no acceptable option existed that addressed the appropriate
level of safety while maintaining the operational flexibility expected
by the offshore industry.
    One of the standards the Coast Guard considered, but did not adopt,
was the IMO Code of Safety for Special Purpose Ships (SPS Code). The
SPS Code is an international standard for specialized vessels that
carry personnel who are specifically needed for the particular
operational duties of the ship and are carried in addition to those
persons required for normal navigation, engineering and maintenance of
the ship. Such personnel might include remotely operated vehicle
operators, anchor handling personnel, and other workers who are not
part of the navigational crew but who are necessary to the vessel's
mission. The SPS Code specifically contemplates that, because of the
nature of their work, these personnel are physically able and trained
in safety procedures, and therefore do not require the more stringent
protection that would be provided for a member of the general public on
a passenger ship of similar capacity. The design requirements set forth
in the SPS Code scale according to the number of personnel carried,
such that the standards for a vessel carrying 60 or fewer people are
less stringent than for a vessel carrying between 61 and 240 people. In
this way, the SPS Code provides flexibility for the many different
types and operational duties of vessels like large OSVs. The SPS Code
states, however, that it is not intended for ships transporting or
accommodating personnel other than those working on board. Given the
nature of the work these large OSVs are likely to pursue, we anticipate
that many, but not all, personnel on board would normally be working on
board; some may simply be transported to offshore work sites.
Therefore, directly adopting the SPS Code would not be appropriate.
    Instead, this interim rule adds new Subpart F to Part 127 and
removes the constraint in existing Sec.  126.170 to allow an OSV of at
least 6,000 GT ITC to carry more than 36 offshore workers if the vessel
meets the new construction standard set forth there. The new Subpart F
aligns closely with the approach of the SPS Code, and takes the similar
position that vessels carrying few offshore workers may meet a cargo
vessel standard, while vessels authorized to carry large numbers of
offshore workers must meet a passenger vessel standard. The interim
rule sets thresholds such that vessels carrying fewer than 36 offshore
workers meet cargo vessel standards, while vessels authorized to carry
more than 240 total persons on board must meet a passenger vessel
standard. The bases for these thresholds change from number of offshore
workers to total persons on board to align with both pre-2014
regulations (36 offshore workers) and an internationally recognized
value (240 total persons). Vessels authorized to carry at least 36
offshore workers but no more than 240 total persons are required to
meet a hybrid set of requirements balanced between passenger and cargo
standards. In each of these cases, the selected standard is based upon
SOLAS rather than other domestic regulations, in keeping with the
widespread use of SOLAS in other portions of this rule. This is
intended to be more efficient, minimizing the number of references to
other sources. Furthermore, as noted elsewhere, given the international
nature of work for large OSVs, it is the Coast Guard's assessment that
they would voluntarily comply with these international requirements
even in the absence of this regulation.
    The SPS Code permits a reduced amount of primary lifesaving
equipment (lifeboats) when the vessel meets the stricter passenger
vessel fire-protection provisions. On passenger vessels, critical
safety systems are designed such that they will remain operational for
the evacuation and discharge of the passengers for a relatively long
period of time--at least 3 hours. This permits a reduction in the
overall redundancy of the lifesaving systems. However, the operating
environment for large OSVs exposes them to hazards not commonly
encountered by passenger vessels and a similar reduction in redundancy,
or the lesser protection provided by liferafts instead of lifeboats, is
not justified on large OSVs. Therefore, this interim rule requires the
lifesaving equipment for large OSVs to comply with SOLAS cargo vessel
standards, and does not allow the reductions that may be permitted for
passenger or special purpose ships.
    Because of the operational practices described above, the Coast
Guard

believes that the majority of personnel on an OSV of at least 6,000 GT
will work on board the vessel, operating specialized equipment and
performing functions such as anchor handling, diving operations and
support, well stimulation, and ROV operations and support. Existing 46
CFR 15.1105 requires that any person assigned shipboard duties must
receive basic training in accordance with the International Convention
on Standards of Training, Certification and Watchkeeping for Seafarers
(STCW). In addition, Subchapter L places requirements for safety
orientation, drills, and training on offshore workers in Sec. Sec.
131.320, 131.530, and 131.535. Further, Sec.  131.420 requires enough
trained persons aboard each survival craft to muster and assist
untrained persons.
    However, notwithstanding these existing Subchapter L operations
requirements for drills and training of offshore workers, the Coast
Guard is considering appropriate standards for vessels providing
accommodation service (i.e., the supply of hotel-like services such as
dining, berthing, and access to recreational facilities) for personnel
who are not engaged in work aboard the vessel but are engaged in work
on a nearby drilling or production platform on the U.S. Outer
Continental Shelf (OCS). (See 77 FR 5039, February 1, 2012). In the
future, we may consider additional training requirements for personnel
who are not members of the crew and possibly other additional safety
standards for vessels that engage in accommodation service.

H. Amendments to 46 CFR Part 127, ``Construction and Arrangements''

    This interim rule adds a new Sec.  127.200 to Title 46, specifying
that OSVs of at least 6,000 GT ITC must be classed by an authorized
classification society recognized under the provisions of 46 CFR part
8. Classification societies ensure that the vessel is built to and
complies with a set of design and construction standards. Meeting
classification society requirements is consistent with SOLAS Chapter
II-1, Regulation 3-1, and we expect that all large OSVs would be
classified even if not required by this rule. Requiring the use of an
authorized classification society, however, ensures that the
classification society requirements are developed by an organization
with adequate resources and experience.
    This interim rule adds a new Sec.  127.225 setting forth structural
fire-protection standards based on SOLAS requirements for cargo ships
and existing U.S. regulations for tank vessels. SOLAS provides fire-
protection standards requiring the use of non-combustible materials
(Method IC), but as an alternative allows the use of sprinklers or
smoke detectors. The Coast Guard's longstanding view, as established by
regulation, is that the use of these alternatives in lieu of non-
combustible materials does not provide an adequate level of safety, and
the Coast Guard has advocated that non-combustible construction is
superior to reliance on sprinklers or smoke detectors since the fire on
board the cruise vessel Morro Castle on September 8, 1934, which caused
the deaths of 137 persons. The requirement in Sec.  127.225(a) limits
the options available to large OSVs to Method IC construction and is
consistent with existing U.S. regulations for other large vessels
(e.g., 46 CFR subchapters D, H, and I). Section 127.225 also provides
for approval of materials under current U.S. regulations, and applies
fire-protection standards based on standards applicable to tank
vessels. These provisions for large OSVs are in addition to the general
fire-protection provisions for all OSVs at Sec.  127.220.
    Existing Sec.  127.230 requires OSVs to comply with special
stability requirements found in 46 CFR subchapter S, but large OSVs
must meet different stability requirements in order to obtain the SOLAS
certificates required in Sec.  125.105 and necessary to compete in the
international market. To avoid duplication between the two sets of
requirements, this rule adds a new paragraph (b) to existing Sec.
127.230 to exempt large OSVs from the domestic stability requirements.
Because there is no SOLAS damage stability requirement for cargo ships
less than 80 meters in length, we limited this exemption to large OSVs
of 80 meters or more in length. OSVs that are less than 80 meters in
length would continue to comply with the stability requirements in 46
CFR Subchapter S. Exempted large OSVs may choose to meet the
requirements in Subchapter S, so long as they also demonstrate
compliance with the SOLAS stability requirements.

I. Amendments to 46 CFR Part 128, ``Marine Engineering: Equipment and
Systems''

    Existing Part 128 requires OSVs to comply with Subchapter F of
Title 46, Chapter I, titled ``Marine Engineering,'' but lists a number
of exceptions specific to OSVs, such as allowing certain piping systems
to meet less restrictive standards than those found in Subchapter F.
This interim rule makes no change to the requirements for OSVs of less
than 6,000 GT ITC, but it does not extend those same exceptions to
large OSVs. To accomplish these changes, this rule amends 46 CFR
128.110 by redesignating existing paragraph (b) as (c), without
otherwise changing it, and inserting a new paragraph (b) requiring
large OSVs to meet Subchapter F. It also makes minor conforming changes
to paragraph (a) to make clear that the pre-2014 provision of Part 128
continues to apply to OSVs of less than 6,000 GT ITC, without change.
    The requirement to meet all of Subchapter F is the same as that for
cargo vessels under Subchapter I, and is appropriate for large vessels.
As a result of this requirement, pre-2014 exemptions in Part 128 do not
apply to large OSVs. In particular, this interim rule clarifies that
the fuel requirements for large OSVs should follow Subchapter F. To
accomplish this, the interim rule specifies that pre-2014 text of Sec.
128.310 applies to OSVs of less than 6,000 GT ITC, and then adds
provisions for large OSVs. The new provisions require that internal
combustion engines installed on large OSVs use fuel having a flashpoint
of at least 60[deg] C (140[deg] F). This requirement differs from the
rule for OSVs of less than 6,000 GT ITC, which requires fuel with a
flashpoint of at least 43[deg] C (110[deg] F), but it aligns with the
provisions of Subchapter F (see 46 CFR 58.01-10) and the requirements
found in SOLAS (see Chapter II-2, Part B). Using fuel with a higher
flashpoint is safer as well as consistent with SOLAS requirements for
travelling internationally, as is likely for these OSVs. The new
provisions of Sec.  128.310 do allow fuels with a lower flashpoint to
be used on gasoline-powered rescue boats and emergency generators, or
elsewhere with the Coast Guard's specific approval.

J. Amendments to 46 CFR Part 129, ``Electrical Installations''

    Existing Part 129 requires OSVs to comply with Subchapter J of
Title 46, Chapter I, titled ``Electrical Engineering,'' but lists a
number of exceptions specific to OSVs. This interim rule makes no
substantive change to these limited requirements for OSVs of less than
6,000 GT ITC, but it does not extend those same exceptions to large
OSVs.
    Because of the size and types of operation systems that will be
found onboard these large OSVs, the interim rule requires large OSVs to
meet all of Subchapter J, aligning it with requirements imposed on
similar cargo vessels under Subchapter I. For example, unlike OSVs of
less than 6,000 GT ITC, large OSVs must meet the

requirements of 46 CFR 111.10-7, which mandates electrical services
necessary to start the main propulsion plant from a dead ship
condition. Large OSVs must also meet 46 CFR subpart 112.20, Emergency
Systems Having a Temporary and a Final Emergency Power Source, which
requires an emergency power source and certain transfers of emergency
loads.
    To accomplish this change, this rule amends Sec.  129.110 by
redesignating the existing text as paragraph (b), and adding a new
paragraph (a). This rule also makes a conforming change to Sec.
129.315(a) so that the section remains limited to OSVs of less than
6,000 GT ITC, as was the case before the Act removed the size limits on
OSVs.
    This interim rule also adds new Sec.  129.570 to require that cargo
oil tanks on large OSVs be equipped with alarms to prevent oil spills
during cargo transfer. The alarms are intended to alert operators when
a cargo oil tank is becoming full, and again when tank overflow is
imminent. The new Sec.  129.570 is based on existing regulations for
tankships and is appropriate for large OSVs because of the volume of
oil these OSVs may carry.

K. Amendments to 46 CFR Part 130, ``Vessel Control''

    To avoid contradictory requirements between existing Part 130 and
new marine engineering requirements for large OSVs, this rule makes
conforming changes to portions of Part 130 that previously had applied
to OSVs of 100 gross tons or more. Specifically, it modifies Sec. Sec.
130.140 and 130.400 with the phrase, ``Except as provided in Sec.
128.110.'' Section 128.110 directs large OSVs to comply with Subchapter
F, as discussed above, and therefore this language prevents large OSVs
from using Sec. Sec.  130.140 and 130.400 in lieu of Subchapter F. This
rule does not change the requirements already found in those sections
for OSVs that are of 100 gross tons or more, but less than 500 GRT or
6,000 GT ITC.

L. Amendments to 46 CFR Part 131, ``Operations,'' Addressing Vessel
Maneuvering

    This interim rule adds new 46 CFR 131.990, which requires that
certain information about the OSV's maneuvering capabilities must be
displayed in the pilothouse for the use of vessel operators and pilots.
The information includes the time and distance necessary to stop the
OSV, and a warning about conditions that may alter the information
provided. Section 131.990 matches existing provisions that already
apply to other vessels of 1,600 gross tons or more, including cargo
vessels regulated under Subchapter I.

M. Amendments to 46 CFR Part 132, ``Fire-Protection Equipment''

    This interim rule makes changes in Part 132 to address certain
areas not covered by SOLAS chapter II-2. Section 125.105 requires large
OSVs to comply with the SOLAS rules for cargo ships, including the
chapter II-2 fire-protection rules, but there are three areas where the
SOLAS rules do not include specific criteria for the approval of
equipment. This interim rule therefore adds three new sections to
clearly state the applicable U.S. requirements for: Fire pumps, fire
hoses, and nozzles (see new paragraph (d) in Sec.  132.100); portable
and semiportable fire extinguishers (see new Sec.  132.200); and
firefighter's protective clothing and personal safety equipment (see
new Sec.  132.365). The fire extinguishers and protective equipment
required by these new sections are the same as required on tankships.
These requirements are in addition to the pre-2014 fire-protection
requirements of Part 132, which continue to apply to other OSVs without
change as reiterated in Sec.  132.200(a). Requiring large OSVs to carry
fire-protection equipment similar to that on tankships reflects the
increased quantities of oil and other flammable liquids these large
OSVs may carry.
    For the same reasons, this rule adds new Sec.  132.390 to ensure an
adequate level of fire protection for the greater quantities of
flammable or combustible liquids expected to be carried on large OSVs.
Except for OSVs fitted with a deck foam system, all large OSVs must
carry at least two 135-kg semi-portable dry chemical fire extinguishers
to mitigate the fire risk associated with a spill on the weather deck.
A deck foam system is necessary on large OSVs carrying larger
quantities of certain flammable and combustible liquids to address the
greater fire risk presented by these quantities. Therefore, for large
OSVs that carry 3,000 cubic meters or more of flammable or combustible
liquids with a flashpoint of 60 [deg]C (140[emsp14][deg]F) or below in
fixed tanks, this interim rule requires cargo area and cargo-pump room
fire-extinguishing systems similar to those required on tank vessels.
OSVs with this cargo carrying capacity must have a deck foam system
designed to tankship standards where the cargo tanks extend vertically
to the weather deck. The requirement to provide foam coverage for the
total deck area is intended to mitigate the fire risk associated with
spills taking into consideration the additional potential hazard of
cargo tank physical damage (e.g., explosion, dropped load) as well as
the possibility of spills from associated deck fittings such as pumps,
valves, and vents. If the cargo is carried in double bottom or other
tanks that do not extend to the weather deck, the foam system is only
required to protect weather deck areas within 10 feet (3 m) of
potential leak sources such as manifolds and vents, since it is
considered that in these cases the possibility of a large volume spill
covering the entire deck is less likely.
    These OSVs also are required to have a fixed total flooding gas
fire extinguishing system designed to tankship standards for the
protection of any accessible below-deck cargo pump rooms or other
enclosed spaces that contain tank openings, pumps, flanges, valves,
loading manifolds, or other potential sources of leakage. The
regulation refers to accessible below-deck spaces because it is not
intended to require extinguishing systems in spaces not easily accessed
by the crew, such as cofferdams, where such leak points are unlikely to
be present.
    Review of currently operating OSVs complying with Subchapter L
revealed that the great majority carry less than 3,000 cubic meters of
flammable or combustible liquids as cargo. To address the greater fire
risk presented by the carriage of larger quantities of flammable or
combustible liquids by larger OSVs, this interim rule requires
additional fire-protection measures compared to current Subchapter L
when volumes greater than 3,000 cubic meters of flammable or
combustible liquids are carried.

N. Amendments to 46 CFR Part 134, ``Added Provisions for Liftboats''

    A liftboat is a subtype of OSV that has movable legs. The legs,
when resting on the sea floor, raise the hull above the sea to create a
platform from which work can be performed on another offshore
structure. Most liftboats are relatively small--usually less than 1,000
GT ITC--but the Coast Guard is aware of larger liftboats operating
overseas, and of some limited interest in developing U.S.-flagged
liftboats of at least 6,000 GT ITC.
    The safe construction and operation of liftboats requires
consideration of unique factors, including leg strength and stability,
sea floor stability, vulnerability to wind, height of the hull above
the water, and the speed at which the hull is raised. The existing
regulations in Part 134 of Subchapter L were designed to address these
concerns but, because liftboats historically have been small, the Coast
Guard currently lacks data with which to evaluate the

safety of liftboats of 6,000 GT ITC or more. The Coast Guard also does
not believe that the purpose of the Act was to provide for extremely
large liftboats, because liftboats are a unique type of vessel and
generally do not undertake the cargo and personnel carriage that was
the focus of the Act.
    Therefore, this interim rule provides that liftboats of 6,000 GT
ITC or more are permitted only on a case-by-case basis with the
approval of the Commandant. As the demand for and design requirements
of large liftboats becomes clearer, the Coast Guard will consider
developing a regulatory framework for them. We encourage the public to
submit information about larger liftboats; in particular, we request
information on the likelihood of liftboats reaching or exceeding 6,000
GT ITC, and on whether large liftboats should meet the requirements of
46 CFR subchapter I-A for mobile offshore drilling units (MODUs).

O. Amendments to 46 CFR Part 2, ``Vessel Inspections''

    In 46 CFR 2.10-25, the Coast Guard revised the definition of
``offshore supply vessel'' by removing the upper size limit previously
found in paragraph (3) of that definition. Removing the upper size
limit is appropriate in light of the change made by the Act to the
underlying statutory authority, and brings large OSVs within the
existing Part 2 vessel inspection provisions. This rule makes no change
to vessels of 15 or fewer gross tons. The definition of OSV otherwise
remains unchanged, and the Coast Guard did not alter other sections of
Part 2 that mention OSVs.
    The Coast Guard is aware of similar definitions in Parts 68 and
175, but found that these provisions were specific to particular groups
of OSVs and that it would be unnecessary to revise these definitions in
order to implement the Act.

P. Amendments to 46 CFR Part 15, ``Manning Requirements''

    This rule implements manning requirements for large OSVs as
required by the Act.
    Section 617(d) of the Act amended 46 U.S.C 8104 to permit the use
of two watches in certain circumstances, so long as the officers and
crew are ``in compliance with hours of service requirements (including
recording and recordkeeping of that service) as prescribed by the
Secretary.'' This interim rule revises 46 CFR 15.705 to reflect that
statutory requirement, and specifies that the individuals must be in
compliance with the work hours and rest period requirements found in 46
CFR 15.1111. We expect that vessels subject to this rule will seek
international certification and, as a result, be required to meet the
STCW Convention requirements implemented in 46 CFR Part 15, Subpart K,
including the hours of work hours and rest period requirements found in
46 CFR 15.1111.
    Section 617(c) of the Act amended 46 U.S.C. 8301 to specify the
minimum number of licensed individuals required aboard OSVs. It
requires that an OSV of less than 500 GRT or 6,000 GT ITC have one
licensed mate on a voyage of less than 600 miles, and two licensed
mates on a voyage of at least 600 miles. It also requires that an OSV
of at least 6,000 GT ITC have two licensed mates on a voyage of less
than 600 miles, and three licensed mates on a voyage of at least 600
miles. This interim rule revises 46 CFR 15.810 to reflect the statutory
changes, while leaving in place the existing regulatory alternative for
vessels of less than 100 gross tons. Specifically, this interim rule
removes Sec.  15.810(b)(4), which had applied to OSVs of 100 gross tons
or more, and redesignates Sec.  15.810(b)(5) as (b)(4). The interim
rule then creates two new paragraphs: New paragraph (b)(5) for OSVs of
between 100 GRT and 500 GRT or 6,000 GT ITC, and new paragraph (b)(6)
for OSVs of at least 6,000 GT ITC (500 GRT if GT ITC is not assigned).
    These new paragraphs implement the manning requirements stated in
the Act. The interim rule uses the term ``credentialed'' rather than
``licensed'' because the Coast Guard now issues Merchant Mariner
Credentials (MMCs) rather than licenses. The term ``credentialed''
encompasses ``licensed'' as used in the Act, and includes any licensed
mate whose license will be replaced with an MMC after the license
expires. We anticipate that credentialed mates will keep watch, with
the Master and Chief Engineer occasionally standing in for high-
intensity operations or in the case of illness or fatigue. This view is
supported by the National Offshore Safety Advisory Committee (NOSAC)
report, ``Certifications and Standards for Large OSVs,'' dated April
18, 2008, and available in the docket. The master is distinct from the
mate in our existing regulations, and should not be counted as one of
the mates required on an OSV.
    As was the case before the Act, the amended statute and the revised
regulations require more mates for vessels on longer voyages.
Previously, regulations had stated that a voyage includes the accrued
distance from port of departure to port of arrival and does not include
stops at offshore points. The Coast Guard has become aware, however,
that some readers misinterpret this provision to restart the voyage at
each offshore point. This is an incorrect reading of the current
language and undermines the purpose of the regulation, which is to
provide for more mates--and therefore, shorter watches and less
fatigue--on long voyages, even if those voyages include visits to
offshore points. Therefore, new Sec.  15.810(b)(6) for large OSVs
clarifies that a voyage includes the total accrued distance between
departing and arriving at a port.
    Although the Coast Guard's understanding of ``voyage of less than
600 miles'' remains the same as explained above, the Coast Guard has
chosen not to change the language in paragraph (b)(5) in this interim
rule. Instead, the Coast Guard invites the public to submit information
on how it measures voyages under this provision and what, if anything,
would change as the result of a clarification similar to the one in
paragraph (b)(6). The Coast Guard is considering inserting the
clarification from paragraph (b)(6) into paragraph (b)(5) in the final
rule that will follow this interim rule, and public comments will
assist that decision.
    Based on the NOSAC report, this rule modifies 46 CFR 15.825 to
specify that large OSVs approved for the use of automated systems must
carry at least one assistant engineer. The Coast Guard agrees with this
NOSAC recommendation because, as the size of the vessel increases, so
do the engineering demands. The increased number of engineering
components and the enhanced complexity of component technology make it
important to keep enough personnel on board to maintain those
components, and to respond to shipboard emergencies and equipment
failure. For these reasons, large vessels usually carry one or more
assistant engineers. The requirement that large OSVs carry an assistant
engineer is only a minimum standard and the operator should provide
additional engineers if necessary for safe vessel operation.
Additionally, the Officer in Charge, Marine Inspection (OCMI) may
continue to require more than one engineer under existing Sec.
15.825(c), which has been redesignated as paragraph (d).
    The Coast Guard is aware that the Act necessitates other changes to
regulatory requirements for mariners, including requirements in 46 CFR
subchapter B governing mariner credentialing. We anticipate addressing
these changes in a separate rulemaking.

Q. Amendments to 46 CFR Part 62, ``Vital System Automation,'' and
Related Amendment to 46 CFR Part 61, ``Periodic Tests and Inspections''

    Most large modern vessels use automated control and monitoring
systems to replace specific personnel or to reduce overall crew
requirements. The Coast Guard regulates and tests automated vital
systems to ensure that a vessel with automated systems is as safe as a
vessel under direct manual operator supervision. Coast Guard
regulations at 46 CFR part 62 address automation and already apply to
tank vessels and cargo vessels over 500 GRT as well as passenger
vessels over 100 GRT. Because of the hazards associated with larger
vessels carrying more cargo and personnel, the automated systems
regulations in Part 62 are appropriate for large OSVs. This interim
rule amends the applicability section of Part 62 to include large OSVs.
    This interim rule also makes a related change to 46 CFR part 61,
which addresses testing of vital system automation. Within the text of
Part 61, this rule revises the last sentence of existing Sec.  61.40-
10(b) so that the Marine Safety Center, rather than Coast Guard
Headquarters (CG-ENG) approves other test techniques. This is an
administrative change with no substantive impact on the public and, as
discussed in Section IV of this preamble, the Coast Guard finds good
cause to make this change without prior notice and comment and without
delay.

R. Amendments to 46 CFR Part 90, ``General Provisions'' for Cargo and
Miscellaneous Vessels

    46 CFR subchapter I provides regulations for cargo and
miscellaneous vessels. Prior to the creation of Subchapter L in the
1990s, OSVs were regulated under Subchapters I and T. Subchapter I
contains ``grandfathering'' language, matching that in Subchapter L,
that distinguishes between OSVs subject to Subchapter I and OSVs
subject to Subchapter L. (Subchapter T contains similar language, but
is specific to vessels of less than 100 gross tons and therefore not
affected by this rule.) This interim rule revises Sec.  90.05-20 in
Subchapter I to conform to Sec.  125.100 by inserting provisions for
large OSVs grandfathered under Sec.  125.100 as discussed above (i.e.,
large OSVs certificated under section 617(f)(3) of the Act and vessels
of at least 6,000 GT ITC that have not undergone a major conversion
under Sec.  125.100(e)). These vessels are subject to Subchapter I.
    This rule makes similar changes to the definition of OSV at Sec.
90.10-40. The rule removes the upper size limits from paragraph (a), in
accordance with statutory changes made by the Act. In paragraph (b), it
adds a definition of ``existing'' large OSVs to which the
grandfathering provisions of Sec.  90.05-20 will apply, and in
paragraph (c), it adds a definition of ``new'' large OSVs that will be
subject to Subchapter L.
    This interim rule also makes non-substantive changes to the
existing language of Sec. Sec.  90.05-20 and 90.10-40 to improve
clarity. For example, because the sections now discuss both GRT and GT
ITC measurements, this interim rule replaces the word ``tons'' with
``GRT'' and includes references to the appropriate definitions in
Subchapter L. These changes do not alter the requirements previously
applicable to OSVs of less than 500 GRT or 6,000 GT ITC. Because they
are non-substantive administrative changes made to improve clarity, the
Coast Guard finds that prior notice and comment is unnecessary, and
finds good cause to make these changes effective upon publication as
described in Section IV above.

S. Amendments to 46 CFR Part 110, ``General Provisions'' Within
Subchapter J, ``Electrical Engineering''

    46 CFR part 110 includes the incorporation by reference and
definitions sections for the whole of Subchapter J, including Part 111.
Most of the changes this interim rule makes to Part 110 involve
incorporations by reference and new definitions applicable to
requirements found in Part 111 and discussed in detail below. The
definitions of note in Sec.  110.15-2 are those that explain the
hazardous location classifications used in new Subpart 111.106, which
is specific to hazardous locations on large OSVs. As explained in the
portion of the preamble below that discusses Subpart 111.106, this
interim rule provides for a choice of industry standards to apply in
hazardous locations, and each incorporated standard uses slightly
different terms to classify hazardous locations. The definitions in
Sec.  110.15-2 provide a standard frame of reference for readers who
may be using any of the incorporated standards.
    This rule also adds a new paragraph (p) to Sec.  110.25-1, to
specify requirements for submitting plans for OSVs to which new Subpart
111.106 applies. Subpart 111.106 is discussed below. Section 110.25-
1(p) requires submission of plans that demonstrate the safe design of
potentially hazardous locations, particularly on OSVs carrying
flammable cargoes.

T. Amendments to 46 CFR Part 111, ``Electric Systems--General
Requirements''

    The term ``hazardous location'' is broadly understood as an area
where flammable gasses, vapors, liquids, or other ignitable substances
may concentrate, resulting in a fire or explosion hazard. The Coast
Guard regulates hazardous locations on vessels to ensure that
electrical components are either absent from hazardous locations or, if
they must be present, are of a type that is unlikely to cause a fire or
explosion. Although Part 111 already contains a subpart on hazardous
locations, the Coast Guard has added provisions specific to large OSVs
to reflect current, widely accepted standards and to address the
hazards posed by large vessels potentially carrying flammable
substances and/or large numbers of people.
    This rule creates new Sec.  111.05-20 to specify that large OSVs
designed to carry flammable or combustible liquid cargoes with closed-
cup flashpoints not exceeding 60 [deg]C (140 [deg]F), such as methanol,
may have a grounded distribution system only if the current does not
flow directly through any hazardous locations bounded by flammable or
combustible liquid cargo integral storage tanks. This provision is
intended to avoid the introduction of an electrical arc into a
hazardous location given the provisions for use of increased quantities
of flammable liquids on larger vessels.
    This rule also creates new Subpart 111.106, ``Hazardous Locations
on OSVs,'' specifically for large OSVs. The Subpart provides a choice
of standards with which electrical installations must comply when they
cannot be placed outside hazardous locations, and testing and
certification requirements appropriate to each choice. Electrical
installations must comply with either National Electric Code (NEC)
standards or International Electrotechnical Commission (IEC) standards,
subject to certain testing requirements and, in the case of the IEC
option, substitution of U.S. requirements for certain provisions of the
international standard. This rule provides the flexibility to choose an
internationally accepted certification system that existing Subpart
111.105 does not provide.
    With respect to U.S. industry standards, this rule allows hazardous
locations on large OSVs to comply with either of two classification
systems found in the NEC, also known as National Fire Protection
Association 70 (NFPA 70). Both of these systems classify hazardous
locations according

to likely presence of flammable substances. Hazardous locations may
comply with Articles 500 through 504 of NFPA 70, which classify areas
into three Classes, each containing two Divisions. These Articles set
forth requirements for the design, location, and required and
prohibited contents for each Division. Alternatively, hazardous
locations may comply with Article 505 of NFPA 70, which provides an
alternative system classifying areas into Zones. NFPA 70 contains
guidance on moving between the two systems. We use the term ``Class I,
Special Division 1'' to describe areas within Class I, Division 1,
under Article 501 that are equivalent to Zone 0 under Article 505. This
term is based on the American Petroleum Institute Recommended Practice
(API RP) 500.
    Regardless of which portion of NFPA 70 is followed, this rule
requires that equipment be tested, and listed or certified, by an
independent laboratory. The Coast Guard generally requires third-party
testing for critical equipment, such as lifesaving and firefighting
equipment, and believes that safe certification for electrical systems
on large OSVs must include independent third-party certification. This
requirement is consistent with other regulatory agencies' approach to
electrical equipment in hazardous locations in other types of
facilities, such as refineries. In accordance with NFPA 70, this rule
provides a choice of standards against which the equipment may be
evaluated: For the Class and Division system set forth in Article 500,
the equipment may meet a selection of American National Standards
Institute (ANSI), Underwriters Laboratories, FM Approvals, and Canadian
Standards Association standards, while for the Zone system set forth in
Article 505 the equipment may meet certain standards from the ANSI/ISA
60079 series. Where any of these standards are used, certification
would be performed by an independent laboratory meeting 46 CFR part
159.\1\
---------------------------------------------------------------------------

    \1\ The authority for current 46 CFR part 159 is 46 U.S.C. 3306,
which ``contains broad authority to prescribe regulations for proper
inspection and certification of vessels,'' House Report No. 98-338
(August 1, 1983), 1983 U.S.C.C.A.N. 924, 954-53, including the
specific requirement to prescribe regulations to carry out the
statutory requirements ``in the most effective manner,'' 46 U.S.C.
3306(a). The Coast Guard finds the use of independent laboratories
in the Coast Guard's approval process to be ``the most effective
manner'' of executing and carrying out its obligations under section
3306.
---------------------------------------------------------------------------

    As an alternative to U.S. standards, and to provide regulatory
flexibility, this rule allows hazardous locations on large OSVs to
comply with the widely accepted international standard IEC 60092-502,
``Electrical installations in ships--Tankers--Special features.'' The
Coast Guard chartered a study by ABSG Consulting to evaluate IEC 60092-
502, and the 2010 report is available in the docket. The study modeled
gas dispersion from multiple scenarios with various vapor sources,
cargoes, and ventilation rates, and compared it to values provided in
the IEC standard. Overall, the study validated the IEC approach, with
certain exceptions, because it indicated that in most cases the
flammable vapors were well inside IEC Zone 1 areas. We therefore adopt
the IEC 60092-502 standard in this rule with some exceptions, which are
discussed in detail below. In general, we retained the zones defined by
IEC 60092-502 except where the study indicated that zones defined by
IEC 60092-502 might not be large enough, in which case we enlarged the
zones. Where the study implied that zone sizes may be reduced, we
retained the IEC 60092-502 zones to promote safety and compliance with
international standards.
    The study indicated that for certain cargoes during cargo transfer,
flammable vapors from large-volume tank vents tended to sink to the
deck, forming a blanket extending beyond area boundaries that were
developed based only upon distance from the vent (i.e., boundaries
similar to existing Sec.  111.105-31(f) and IEC 60092-502 Regulation
<IP_ADDRESS>; see page 27 of the study). This was the case whether or not
ventilation was restricted. Based on this, we adopted the IEC 60092-502
regulation <IP_ADDRESS> requirements in this area, with the exception that
the hazardous location designation applies whether or not ventilation
is considered to be restricted. Similarly, for large-volume tank
outlets the study indicated that vapors tended to extend beyond the 6-
meter Zone 1 area of IEC 60092-502 Regulation <IP_ADDRESS>, and we adopted
an 8-meter zone to account for this. These modifications appear in new
Sec.  111.106-9.
    The study also suggested that the use of mechanical ventilation may
not be sufficiently effective in reducing flammable vapor concentration
down to safe levels in certain hazardous locations (see pages 30-33 and
53 of the study). We therefore did not adopt the portions of IEC 60092-
502 Regulation 4.1.4, Table 1, that allow enclosed spaces to be
reclassified based upon mechanical ventilation; instead, we inserted
new Sec. Sec.  111.106-13(b) and 111.106-15. Finally, the study
consistently indicated the presence of ignitable vapors in the
immediate proximity of certain vapor release point sources, a finding
that is consistent with API RP 505 standards (see API RP 505 6.5.5). We
therefore adopted zone 0 areas similar to those found in API RP 505.
    In some cases, the study indicated that certain Zone 1 areas may be
reduced. For the reasons discussed above, this rule does not reduce the
areas, but the Coast Guard is interested in receiving public comments
on whether these zone requirements should be reduced. For example,
because modeling indicated that gasses extended no further than 0.5
meters above the deck, a height of 2.4 meters for Zone 1 as described
in IEC 60092-502 Regulation <IP_ADDRESS> may be larger than necessary. For
certain vapor sources where a failure (e.g., failure of a valve or
flange) is required for vapor release, it may be reasonable to reduce
the size of the Zone 1 hazardous location for these vapor sources. We
welcome public comment on this topic. For other vapor sources (e.g.,
vents) where vapor is likely to be present without a failure, however,
we do not believe it is reasonable to reduce the Zone 1 sizes.
    As with the domestic standards, electrical installations in
compliance with IEC 60092-502 must be tested and approved or certified
by an independent authority. For vessels designed to compete on the
international market or built in foreign shipyards, in this rule the
Coast Guard adopts the international certification system, IECEx
(Certification to Standards Relating to Equipment for use in Explosive
Atmospheres), a certification system that is based on full testing to
the IEC 60079 series of standards. The IECEx system ensures testing of
equipment by a competent authority other than the manufacturer.
Approval under the IECEx system involves an Ex Certification Body
(ExCB) and an Ex Testing Laboratory that have been accepted into the
IECEx system after meeting competence requirements found in the
International Organization for Standardization ISO/IEC Standard 17025
and related IECEx procedures. The Ex Testing Laboratory tests the
covered equipment to determine whether it meets IECEx system standards,
and drafts an IECEx Test Report to document the test results. The ExCB
reviews the manufacturing quality assurance process and issues an IECEx
Quality Assessment Report. Based on these reports, the ExCB may then
issue an IECEx Certificate of Conformity for the equipment.
    The Coast Guard considered allowing certification of electrical
equipment under the Directive on Equipment and Protective Systems
Intended for use in Potentially Explosive Atmospheres (94/9/EC) (``ATEX
directive''), which is used

in Europe and is harmonized with the IECEx system, but chose not to do
so because the ATEX directive does not guarantee testing by a competent
authority other than the manufacturer. ATEX is a part of a series of
European laws, the EC Directives, which are applicable to the European
Economic Area member states. The ATEX directive contains Essential
Health and Safety Requirements for products applied in hazardous areas,
instead of restrictive references to standards. The ATEX Directive
allows all kinds of standards to be used. When the harmonized standards
are used, it provides the presumption of conformity with the Essential
Health and Safety Requirements. Use of the IEC 60079 series is provided
for already in existing Subpart 111.105; currently, when the Coast
Guard discovers ATEX equipment or components installed on U.S.
inspected vessels, it requires that this equipment be replaced or
proven through testing to comply with IEC standards. In some cases, the
laboratory that certified the equipment under the ATEX directive has
found that additional tests are necessary to re-certify the equipment
under the IECEx system. This demonstrates that, although these
standards are harmonized, there is a possibility that equipment
certified under the ATEX directives is not safe for the intended use.
In addition, most IMO conventions for seagoing vessels refer to IEC
series standards.
    For protections not covered by the standards discussed above, this
interim rule incorporates existing requirements for other large
vessels. For example, Sec.  111.106-3 contains submerged pump motor
requirements based on existing Subpart 111.105 and tank barge
regulations, and cargo tank separation and cargo piping requirements
based on fire-protection provisions for tank vessels. It also
incorporates ASTM F2876-10, ``Standard Practice for Thermal Rating and
Installation of Internal Combustion Engine Packages for Use in
Hazardous Locations in Marine Applications,'' to address the growing
use of engines with electronic controls that could cause arcing or
sparking in a hazardous area.
    This rule provides flexibility by allowing cable and wiring to
comply with a selection of international and domestic standards. It
also adopts existing domestic rules for tank vessels that have glands
or pressure seals on the gastight bulkhead between machinery spaces and
hazardous locations. In new Sec.  111.106-15, this rule adopts portions
of IEC 60092-502, Clause 8, as well as existing gas carrier rules at 46
CFR 154.1205 with respect to air changes and related ventilation
requirements. This rule also addresses the prevention of static build-
up in cargo tanks and piping by requiring electrical bonding in
accordance with Sec.  153.461 for flammable or combustible cargoes.
    The regulations in Subpart 111.106 are similar to regulations the
Coast Guard has proposed in a separate rulemaking project regarding
electrical equipment in hazardous locations on board foreign Mobile
Offshore Drilling Units (MODUs), floating OCS facilities, and vessels
that engage in OCS activities, excluding OSVs (78 FR 37760). Although
the regulations are very similar because the Coast Guard's overall
policy and safety concerns are the same, neither rulemaking project is
intended to conflict with or modify the other. The proposed rule on
hazardous locations affects a different group of vessels and
facilities, not large OSVs.

U. Amendments to 46 CFR Part 174, Subpart G, ``Special Rules Pertaining
to Offshore Supply Vessels''

    As discussed above, this interim rule revises Sec.  127.230 to
exempt large OSVs from Part 174, Subpart G, because large OSVs must
instead meet SOLAS requirements for stability. Therefore this rule
modifies Sec.  174.180, which is the applicability provision of Subpart
G, to clarify that large OSVs need not meet Subpart G.

V. Amendments to Incorporation by Reference Sections, 46 CFR Parts 110
and 125

    Many of the substantive changes discussed earlier in this preamble
involve industry standards or other published material that this
interim rule incorporates by reference. Incorporating these industry
standards ensures that our regulations are based on the consensus of
experts in the field, and increases the likelihood they are compatible
with established best practices and international standards. When Coast
Guard regulations require compliance with the provisions of these
standards, the provisions should be read as mandatory regulatory
requirements even if the standard development organization has used
advisory or recommendatory language.
    The incorporated standards are listed in existing centralized
incorporation by reference sections at 46 CFR 110.10-1 and 125.180. In
addition to incorporating new material necessary to the substance of
the rule, this rule reformats the existing incorporation by reference
sections for consistency with Office of the Federal Register drafting
guidelines, and provides updated publisher contact information. This
interim rule does not remove, replace, or otherwise affect any material
previously incorporated by reference. Because reformatting and the
addition of publisher contact information are administrative changes
with no substantive effect on the public, the Coast Guard finds good
cause to make these changes effective immediately and without prior
notice and comment, as described in Section IV of this preamble.

VII. Incorporation by Reference

    The Director of the Federal Register has approved the material in
46 CFR 110.10-1 and 125.180 for incorporation by reference under 5
U.S.C. 552 and 1 CFR part 51. You may inspect this material at U.S.
Coast Guard Headquarters where indicated under ADDRESSES. Copies of the
material are available from the sources listed in 46 CFR 110.10-1 and
125.180.

VIII. Regulatory Analyses

    We developed this interim rule after considering numerous statutes
and executive orders related to rulemaking. Below, we summarize our
analyses based on these statutes and executive orders.

A. Regulatory Planning and Review

    Executive Orders 12866 (``Regulatory Planning and Review'') and
13563 (``Improving Regulation and Regulatory Review'') direct agencies
to assess the costs and benefits of available regulatory alternatives
and, if regulation is necessary, to select regulatory approaches that
maximize net benefits (including potential economic, environmental,
public health and safety effects, distributive impacts, and equity).
Executive Order 13563 emphasizes the importance of quantifying both
costs and benefits, of reducing costs, of harmonizing rules, and of
promoting flexibility. This interim rule has been designated a
``significant regulatory action,'' although not an economically
significant regulatory action, under section 3(f) of Executive Order
12866. Accordingly, the interim rule has been reviewed by the Office of
Management and Budget. A preliminary Regulatory Analysis (RA) is
available in the docket where indicated under the ``Public
Participation and Request for Comments'' section of this preamble.
Pre-2010 Authorization Act Baseline
    Prior to the Authorization Act, owners wishing to build and operate
OSVs were subject to a pre-existing system of regulations and
standards. For example,

OSVs had to comply with Subchapter L requirements, including:
     Design plan review and approval
     Initial inspection and certification process
     Design standards
     Operating requirements, including manning
     Limitation on the size of OSVs (not greater than 6,000 GT
ITC).
    However, as the OSV industry has become more heterogeneous, it has
started to develop more size-specific standards and rules, particularly
those focused on larger vessels--as opposed to the homogenous set of
requirements currently required of all OSVs by the Coast Guard. This
interim rule will update current regulations to account for this
heterogeneity among OSVs. These size-specific standards have been
adopted by international organizations and classification societies.
    Although the U.S. Coast Guard has never required OSVs to comply
with international standards as a flag state in the past, prospective
vessel owners and operators who wished to perform international work
are required by international law to comply with international
standards such as SOLAS, MARPOL, and ICLL. Because of the nature of OSV
work, with contracts lasting a few months to a few years, owners and
operators of larger OSVs have designed and constructed their vessels
with the ``intent of being able to operate in nearly all major oil and
gas producing regions of the world'' (i.e., the U.S. Gulf of Mexico,
the Persian/Arabian Gulf, West Africa, and Brazil) in order to ensure
that the vessel is able to mobilize immediately to a new region
following the completion of its current contract.\2\ Compliance with
some international standards is also required for participation in
Coast Guard's Alternate Compliance Program (ACP).\3\ Based on the Coast
Guard's MISLE database, our research indicates that all existing U.S.-
flagged OSVs greater than 3,000 GT ITC have complied with these
international standards, and we expect that this trend will continue
with OSVs larger than 6,000 GT as well. All of the OSVs greater than
6,000 GT that have been built under the interim process have also
voluntarily sought these international certificates.
---------------------------------------------------------------------------

    \2\ Tidewater, Inc. ``Setting the Pace: 2013 Tidewater Annual
Report.'' http://phx.corporate-ir.net/phoenix.zhtml?c=81406&p=irol-reportsannual.
    \3\ The ACP is a voluntary program in which Classification
Society Rules, International Conventions, and an approved U.S.
Supplement provide an alternative that is equivalent to Title 46,
Code of Federal Regulations (CFR).
---------------------------------------------------------------------------

    Similarly, for insurance and other market-driven reasons, owners of
OSVs are complying voluntarily with Classification Society standards.
Based on Coast Guard's MISLE database, all OSVs in the 3,000 to 6,000
GT ITC range have voluntarily been classed by an approved
Classification Society. All of the OSVs greater than 6,000 GT that have
been built under the interim process have also voluntarily been
classed.
    Recent practice shows that some owners of large OSVs elect to
pursue multiple certifications under other subchapters to provide
flexibility to match client needs and to maximize revenue generation
potential. For example, OSVs have been certificated under, and
therefore have to comply with the requirements in, subchapters I, D,
and O to act as petroleum and chemical tankers in addition to acting as
supply vessels.\4\ With this rulemaking, ship owners and operators will
have specific standards in Subchapter L to address the design,
construction, and operation of these larger vessels that can perform
multiple services, thereby no longer needing to get certificated under
multiple subchapters in order to perform multipurpose work. These
standards primarily align with existing Coast Guard regulations, as
well as with international requirements that ship owners and operators
would likely comply with anyway to safely meet energy market demands
and pursue offshore energy ventures that are farther offshore and in
deep waters.
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    \4\ 2013 Proxy Material and 2012 Annual Report http://ir.hornbeckoffshore.com/phoenix.zhtml?c=132245&p=irol-reportsannual.
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2010 Authorization Act Requirements
    In the Coast Guard Authorization Act of 2010, Congress removed the
size limit on OSVs and directed the Coast Guard to implement
regulations for OSVs of at least 6,000 gross tonnage as defined by the
International Convention on Tonnage Measurement of Ships 1969 (6,000 GT
ITC). Congress also directed the Coast Guard to issue regulations to
implement the Act and ``to ensure the safe carriage of oil, hazardous
substances, and individuals in addition to the crew on such vessels''
(see section 617(f) of the Act).
    In addition to removing the size limit, Congress also specified
requirements in three areas for OSVs greater than 6,000 GT ITC:
     Oil fuel tank protection;
     The number and qualification of crew; and
     Division of watches.
    These additional requirements provide enhanced levels of
environmental protection and safety, which is needed as a result of
large OSVs carrying a larger quantity of oil and hazardous material, as
well as a larger number of persons on board. Because these expanded
services are more typically provided by tank and cargo vessels, the
Coast Guard has based its enhanced requirements on existing provisions
in Subchapters I, O, and D. Through doing so, we expect no additional
cost impacts, because OSVs would already be required under the existing
regulatory regime to comply with these additional Subchapters if they
wished to provide the additional services governed by those
Subchapters.
Interim Process
    Following the passage of the Act, a new interim process was
established, which allows the construction of vessels of at least 6,000
GT ITC to be certificated as large OSVs on a case-by-case basis. Under
this case-by-case process, large OSVs would be approved under the
existing regulatory structure, whereby the vessel would be required to
meet existing Coast Guard regulations applicable to smaller U.S.-
flagged OSVs, and, in cases in which the vessel wished to provide dual
services (such as also acting as a tanker or cargo vessel), the vessel
would also be required to meet the applicable existing regulations for
those vessel types. Under the interim process thus far, prospective
vessel owners and operators voluntarily agreed during the design basis
stage of the interim process to meet the interational standards
required for international work (SOLAS, MARPOL, and ICLL) and class
standards. As noted previously, 100 percent of existing OSVs in the
3,000-6,000 GT range have voluntarily complied with these international
requirements so as to be able to compete for work on the international
market.
Need for Federal Regulatory Action
    The interim rule is needed for several reasons. Primarily, this
interim rule allows the Coast Guard to fulfill Congress' direction to
issue an interim rule ``as soon as is practicable'' to implement the
2010 Authorization Act. The interim rule also codifies existing current
industry practices of larger OSVs (from 3,000 GT ITC to 6,000 GT ITC)
in areas such as compliance with international standards and
classification. The interim rule helps to ensure the safe carriage of
oil, hazardous substances, and individuals in addition to the crew on
OSVs of at least 6,000 GT ITC by specifying requirements that reflect
the operating characteristics of larger OSVs.
    Further, as a result of this rulemaking, ship owners and operators
will have

specific standards in Subchapter L to address the design, construction,
and operation of these larger vessels, thereby no longer needing to get
certificated under multiple subchapters in order to perform
multipurpose work. These standards primarily align with existing Coast
Guard regulations, as well as with international requirements that ship
owners and operators would likely comply with anyway to safely meet
energy market demands and pursue offshore energy ventures that are
farther offshore and in deep waters.
    In comparison with the interim process, the interim rule eliminates
the regulatory uncertainty and inefficiencies that the current case-by-
case process inherently produced for both industry and government.
Instead of going through a lengthy case-by-case review, this interim
rule will provide specific standards in subchapter L for owners and
operators to meet when designing and constructing a large OSV and will
establish a standardized regulatory oversight process for government
officials. In addition to improving efficiency, the interim rule will
improve transparency, as the standards that Coast Guard applies will be
publicly available and subject to public comment before finalization.
Affected Population
    Currently, the portion of the global OSV market served by OSVs of
at least 6,000 GT ITC is largely captured by non-U.S. vessels as shown
in Table 1 below, given past statutory restrictions on OSV size and
uncertainties regarding the interim process.\5\ The table identifies
domestic firms' share of the OSV market for the 1,001 through 6,000
gross tonnage ranges, in which U.S.-flagged OSVs account for
approximately 10 percent of the world fleet. This interim rule will
open the markets served by OSVs of at least 6,000 GT ITC to domestic
entities.
---------------------------------------------------------------------------

    \5\ There exist two U.S.-flagged vessels of at least 6,000 GT
ITC currently operating in U.S. waters. These vessels have been
certificated under the interim process created by section 617(f)(3)
of the Act as large OSVs that meet subchapter I and additional
requirements from design basis agreements.

                      Table 1--Existing U.S.- and Foreign-Flagged OSVs by GT ITC Tonnage Operating in U.S. and International Waters
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                         1,001-1,600   1,601-3,000   3,001-5,000   5,001-6,000  6,001-10,000     10,000+        Total
--------------------------------------------------------------------------------------------------------------------------------------------------------
U.S.\6\...............................................           107           157            58             9             1             1           333
Foreign \7\...........................................           975         1,331           401            40           111            52         2,910
                                                       -------------------------------------------------------------------------------------------------
    Total.............................................         1,082         1,488           459            49           112            53         3,243
U.S. Percent of Fleet.................................            10            11            13            18             1             2           10%
--------------------------------------------------------------------------------------------------------------------------------------------------------

    The offshore energy market has experienced increased demand for
high endurance operations required for deepwater exploration far
offshore. ``Since the first major deepwater leasing boom in 1995 and
1996, a sustained and robust expansion of deepwater drilling activity
has occurred, largely enabled by major advances in drilling technology.
In 2001, U.S. deepwater offshore oil production surpassed shallow water
offshore oil production for the first time. By 2009, 80 percent of
offshore oil production and 45 percent of natural gas production
occurred in water depths in excess of 1,000 feet, and industry had
drilled nearly 4,000 wells to those depths.'' \8\ This trend toward
exploration in deep water and farther offshore necessitates larger OSVs
that can haul more offshore workers, excess fuel, drill string, and
mud. Further, it requires OSVs that are better equipped to handle
platform support and construction, subsea construction and pipelaying,
diving support, as well as towing of rigs and well stimulation. OSVs
under 6,000 GT ITC do not have the capacity to meet these additional
capabilities farther offshore, and as a result, industry is turning to
OSVs of at least 6,000 GT ITC to fill these needs. ``The demand for
large [platform supply vessels, which are a type of OSV] with dynamic
positioning has outpaced the supply of vessels for most of 2012. New
deliveries and [OSVs] mobilizing back to the U.S. Gulf [of Mexico] have
been unable to keep up with demand, forcing drilling operators to
supplement smaller vessels, which are readily available. While these
smaller vessels may be adequate, they are not optimal for deepwater
support work.'' \9\
---------------------------------------------------------------------------

    \6\ Data on U.S.-flagged vessels was derived from Marine
Information for Safety and Law Enforcement (MISLE) on October 25,
2013.
    \7\ Data on foreign-flagged vessels operating global was
obtained from Clarkson Research's Offshore Vessel Register on
December 9, 2011.
    \8\ Department of the Interior, ``Increased Safety Measures for
Energy Development on the Outer Continental Shelf,'' May 27, 2010,
pages 3-4. (http://www.doi.gov/deepwaterhorizon/loader.cfm?csModule=security/getfile&PageID=33598).
    \9\ Marcon International, Inc. ``Fall 2012 Newsletter--Offshore
Supply Vessels in the Gulf of Mexico.'' http://www.marcon.com/index.cfm?SectionListsID=49&PageID=2461.
---------------------------------------------------------------------------

    The Coast Guard anticipates that domestic entities would like to
capture some of this market, as evidenced by the construction of two,
and the design basis application and approval for an additional four,
U.S.-flagged vessels of at least 6,000 GT ITC. This interim rule would
permit U.S.-flagged vessels of at least 6,000 GT ITC to be certificated
as OSVs under subchapter L standards, which would allow U.S. firms to
benefit from access to this increased demand.
    While the Coast Guard is unable to forecast with certainty the
number of U.S.-flagged OSVs of at least 6,000 GT ITC that may be built
to meet the increasing demand for larger OSVs, the number of vessels
constructed or seeking approval under the interim process found in
section 617(f)(3) of the Act may provide some insight. In 2013, four
vessels sought approval under this process, while two vessels have
already been constructed.
    Furthermore, the Coast Guard anticipates that this new population
of OSVs will follow a growth pattern similar to that of OSVs greater
than 3,000 GT ITC but less than 6,000 GT ITC since this was the extent
of larger sized U.S.-flagged OSV growth under the size limit
restriction.
    Through review of the Marine Information for Safety and Law
Enforcement (MISLE) database, the Coast Guard has determined that on
average four U.S.-flagged OSVs between 3,001 and 6,000 GT ITC were
constructed per year from 1998 through 2013.
    Given the current environment of the offshore energy market, the
Coast Guard anticipates that the number of large U.S.-flagged OSVs
built per year will be similar to the number of U.S.-flagged OSVs
between 3,001 and 6,000 GT ITC built per year from 1998 through 2013.
Therefore, we do not expect more than four U.S.-flagged OSVs of at
least 6,000

GT ITC would be built per year after publication of this interim rule.
Further, we anticipate that the vessels of at least 6,000 GT ITC will
be built instead of (rather than in addition to) vessels in the 3,001
to 6,000 GT ITC size range.

   Table 2--Summary of Applicability, Affected Population and Benefits
------------------------------------------------------------------------
             Category                           Interim rule
------------------------------------------------------------------------
Applicability.....................  All U.S.-flagged offshore supply
                                     vessels of at least 6,000 GT ITC
                                     (500 GRT if GT ITC is not
                                     assigned).
Affected Population...............  Existing mandates, which restrict
                                     the size of U.S.-flagged OSVs,
                                     limit the impact of this rule on
                                     existing vessels. Although USCG
                                     does not have data to forecast the
                                     number of U.S.-flagged OSVs of at
                                     least 6,000 GT ITC that may be
                                     built to meet the increasing demand
                                     for larger OSVs with certainty, we
                                     anticipate that it is likely that
                                     the construction of OSVs of at
                                     least 6,000 GT ITC will follow a
                                     similar growth pattern, and may be
                                     built instead of, the construction
                                     of OSVs between 3,001 to 6,000 GT
                                     ITC. If this assumption holds, then
                                     an estimated 4 OSVs of at least
                                     6,000 GT ITC constructed per year.
Non-quantified Benefits...........  Regulatory efficiency benefit, as
                                     risk-benefit requirements are
                                     clarified in advance for vessel
                                     owner and operators.
                                    Allows regulatory compliance
                                     flexibilities for some provisions
                                     in Subchapter L.
                                    Standardization of regulatory
                                     oversight by the Coast Guard.
------------------------------------------------------------------------

Baseline for Analysis of Impacts
    Before the Act, U.S. ship owners and operators wishing to build an
OSV were subject to a network of regulations, voluntary standards and
industry practices, including a prohibition against constructing U.S.-
flagged OSVs of at least 6,000 GT ITC, because of the Coast Guard's
1996 regulation, which capped the tonnage of an OSV. The Authorization
Act lifted the tonnage restriction, but left the remainder of the
regulatory and standard network in place. The baseline for determining
the impact of the interim rule is thus the pre-Authorization Act
network of regulations, voluntary standards, and current industry
practices.
Analysis of Cost Impacts
    This section details the analysis of cost impacts of the interim
rule requiring large OSVs to meet design, construction, and operation
safety regulations governing the inspection and standards of OSVs,
found in Title 46. We expect industry will incur no additional costs in
meeting the Coast Guard's rule as the incorporated standards or
functionally equivalent standards will be used to construct a large OSV
in the absence of any rule.
    In order to minimize the impact of this rule on industry, the Coast
Guard based the majority of the provisions in this interim rule upon
existing regulatory and technical standards from Titles 33 and 46 of
the CFR. Although the Coast Guard deviated from these existing
standards in several instances, these changes were made in order to
account for differences between the scale of operations of the existing
standard's intended population and the operations of large OSVs.\10\
Where existing regulatory and technical standards were not appropriate,
the Coast Guard supplemented them with standards from IMO conventions
and industry consensus engineering standards.
---------------------------------------------------------------------------

    \10\ Provisions in this interim rule in which the Coast Guard
deviated from existing standards include electrical requirements in
46 CFR subchapter J.
---------------------------------------------------------------------------

    Because of the previous size limit on OSVs, there were no U.S.-
flagged vessels of at least 6,000 GT ITC or 500 GRT operating as
OSVs.\11\ However, since the Act was enacted, two U.S.-flagged vessels
of at least 6,000 GT ITC have been certificated under the interim
process found in section 617(f)(3) of the Act as large offshore supply
vessels that meet subchapter I and additional requirements from design
basis agreements, and four more have had their design basis agreements
approved. Although these would be grandfathered from having to comply
with this interim rule, the international standards codified in this
rule were derived from standards that these owners and operators
voluntarily agreed to adopt under the interim process.\12\
Consequently, this rule will not directly impact any existing
population of U.S. vessels, nor is it expected to add additional costs
to newly constructed OSVs of at least 6,000 GT ITC, as these vessels
are also expected to work internationally in addition to working
domestically. Therefore, no additional costs will be incurred by
industry in the construction of a large OSV.
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    \11\ While it is possible that an owner of an existing large OSV
certificated under the interim process found in 617(f)(3) of the Act
may seek recertification under subchapter L, no one from industry
has inquired about this issue in the two and a half years since the
Act was enacted.
    \12\ Although these six vessels are expected to work
domestically, they are also expected to work internationally, and
therefore, would be held to international standards as well.
---------------------------------------------------------------------------

    At this time, the Coast Guard does not anticipate additional costs
to the government from inspections and plan review. Although this rule
removes the size restriction of vessels certificated under subchapter L
as OSVs, the population of new OSVs of at least 6,000 GT ITC is
expected to replace a portion of the population of OSVs in the 3,001 GT
ITC to 6,000 GT ITC size.
    Further, because the provisions in this rule that result in
government costs are also required of vessels approved under the
617(f)(3) interim process, the expected costs that would be incurred by
government to conduct inspections and plan reviews as a result of this
interim rule would have been incurred by the government even in the
absence of this rule. Therefore, the Coast Guard expects to use
existing resources to implement this rule.
    This section presents a qualitative analysis of the cost impacts
and justifications for Title 46 revisions implemented by this interim
rule. We present our analyses in grouped sections that correspond to
each aspect of the rule, which impacts 46 CFR as shown below. Further
details are provided in the regulatory analysis available in the
docket.
Cost Impacts of the Specific Changes of the Interim Rule
Title 46--Shipping

                              Table 3--Changes to 46 CFR Part 2--Vessel Inspections
----------------------------------------------------------------------------------------------------------------
                                                Coast Guard     Origination of   Deviation from  Cost impact and
           Subject                Sections         action          standard         standard      justification
----------------------------------------------------------------------------------------------------------------
Inspections..................  2.10-25......  Modifies         Not Applicable.  Not Applicable.  No additional
                                               definition of                                      cost.
                                               OSV as                                             Administrative
                                               directed by                                        change to
                                               the Act.                                           implement
                                                                                statutory
                                                                                mandate change
                                                                                to definition
                                                                                to allow OSVs
                                                                                > 6,000 GT
                                                                                ITC.
----------------------------------------------------------------------------------------------------------------

                            Table 4--Changes to 46 CFR Part 15--Manning Requirements
----------------------------------------------------------------------------------------------------------------
                                                Coast Guard     Origination of   Deviation from  Cost impact and
           Subject                Sections         action          standard         standard      justification
----------------------------------------------------------------------------------------------------------------
Watches......................  15.705.......  Requirement      Requirements     Extends          No impact. This
                                               directed by      for the          exception to     provision
                                               the Act.         minimum number   the number of    provides the
                                                                of watches       watches          same
                                                                were derived     required to      flexibilities
                                                                from existing    large OSVs,      currently
                                                                Coast Guard      provided that    allowed to
                                                                regulations      the officers     smaller OSVs
                                                                (46 CFR 15.705   and crew are     under the
                                                                and 15.1111).    in compliance    current
                                                                                with the work    regulatory
                                                                                hours and rest   regime to OSVs
                                                                                period           greater than
                                                                                requirements     6,000 GT ITC.
                                                                                found in 46
                                                                                CFR 15.1111.
Mates........................  15.810.......  Requirement      Requirements     Amends existing  No impact.
                                               directed by      for minimum      Coast Guard      Similar sized
                                               the Act.         number of        regulation by    vessels, such
                                                                mates were       requiring OSVs   as 100% of
                                                                derived from     greater than     OSVs between
                                                                existing Coast   6,000 GT ITC     5,000 and
                                                                Guard            to have two      6,000 GT ITC,
                                                                regulations      mates on         are already
                                                                (46 CFR          voyages under    meeting this
                                                                15.810).         600 miles and    requirement in
                                                                                three mates on   order to
                                                                                voyages of at    provide
                                                                                least 600        multipurpose
                                                                                miles. Manning   services,