[Federal Register Volume 81, Number 225 (Tuesday, November 22, 2016)]
[Proposed Rules]
[Pages 83786-83795]
[FR Doc No: 2016-27989]

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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

46 CFR Parts 2 and 8

[Docket No. USCG-2016-0880]
RIN 1625-AC35

Adding the Polar Ship Certificate to the List of SOLAS
Certificates and Certificates Issued by Recognized Classification
Societies

AGENCY: Coast Guard, DHS.

ACTION: Notice of proposed rulemaking.

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SUMMARY: This proposed rule would add a new Polar Ship Certificate to
the list of existing certificates required to be carried on board all
U.S. and foreign-flagged vessels subject to the International
Convention for Safety of Life at Sea (SOLAS) and operating in Arctic
and Antarctic waters, generally above 60 degrees north latitude and
below 60 degrees south latitude lines. Additionally, the Coast Guard
proposes to add this certificate to the list of SOLAS certificates that
recognized classification societies are authorized to issue on behalf
of the Coast Guard. The proposed rule would apply to commercial cargo
ships greater than 500 gross tons engaging in international voyages,
and passenger ships carrying more than 12 passengers engaging in
international voyages, when these ships operate within polar waters as
defined by the Polar Code.

DATES: Comments and related material must be submitted to the online
docket via http://www.regulations.gov by December 22, 2016.

ADDRESSES: You may submit comments identified by docket number USCG-
2016-0880 using the Federal eRulemaking Portal at http://www.regulations.gov. See the ``Public Participation and Request for
Comments'' portion of the SUPPLEMENTARY INFORMATION section for further
instructions on submitting comments.
    Collection of Information: You must submit comments on the
collection of information discussed in section V.D. of this preamble
both to the Coast Guard's docket and to the Office of Information and
Regulatory Affairs (OIRA) in the White House Office of Management and
Budget. OIRA submissions can use one of the listed methods:
     Email<EMAIL_ADDRESS>(include
the docket number and ``Attention: Desk Officer for Coast Guard, DHS''
in the subject line of the email);
     Fax--202-395-6566; or
     Mail--Office of Information and Regulatory Affairs, Office
of Management and Budget, 725 17th Street NW., Washington, DC 20503,
ATTN: Desk Officer, U.S. Coast Guard.

FOR FURTHER INFORMATION CONTACT: For information about this document
call or email CDR Todd Howard, Systems Engineering Division (CG-ENG-3),
Coast Guard; telephone<PHONE_NUMBER>, email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Table of Contents for Preamble

I. Public Participation and Request for Comments
    A. Submitting Comments
    B. Viewing Comments and Documents
    C. Privacy Act
    D. Public Meeting
II. Abbreviations
III. Basis, Purpose, and Background
IV. Discussion of Proposed Rule
V. Regulatory Analyses
    A. Regulatory Planning and Review
    B. Small Entities
    C. Assistance for Small Entities
    D. Collection of Information
    E. Federalism
    F. Unfunded Mandates Reform Act
    G. Taking of Private Property
    H. Civil Justice Reform
    I. Protection of Children
    J. Indian Tribal Governments
    K. Energy Effects
    L. Technical Standards
    M. Environment

I. Public Participation and Request for Comments

    We view public participation as essential to effective rulemaking,
and will consider all comments and material received during the comment
period. Your comment can help shape the outcome of this rulemaking. If
you submit a comment, please include the docket number for this
rulemaking, indicate the specific section of this document to which
each comment applies, and provide a reason for each suggestion or
recommendation.
    We encourage you to submit comments through the Federal eRulemaking
Portal at http://www.regulations.gov. If your material cannot be
submitted using http://www.regulations.gov, contact the person in the
FOR FURTHER INFORMATION CONTACT section of this document for alternate
instructions. Documents mentioned in this notice and all public
comments, are in our online docket at http://www.regulations.gov and
can be viewed by following that Web site's instructions. Additionally,
if you go to the online docket and sign up for email alerts, you will
be notified when comments are posted or a final rule is published.
    We accept anonymous comments. All comments received will be posted
without change to http://www.regulations.gov and will include any
personal information you have provided. For more about privacy and the
docket, you may review a Privacy Act notice regarding the Federal
Docket Management System in the March 24, 2005, issue of the Federal
Register (70 FR 15086).
    We are not planning to hold a public meeting but may do so if
public comments indicate a meeting would be helpful. We would issue a
separate Federal Register notice to announce the date, time, and
location of that meeting.

II. Abbreviations

BLS Bureau of Labor Statistics
COI Collection of Information
DHS Department of Homeland Security
FR Federal Register
IMO International Maritime Organization
MARPOL International Convention for the Prevention of Pollution from
Ships, 1974
MEPC Marine Environment Protection Committee
MOA Memorandum of Agreement
MSC Maritime Safety Committee
NAICS North American Industry Classification System
OMB Office of Management and Budget
Polar Code International Code for Ships Operating in Polar Waters
RA Regulatory Assessment
SBA Small Business Administration
SOLAS International Convention for the Safety of Life at Sea
STCW International Convention on Standards of Training,
Certification, and Watchkeeping for Seafarers
Sec.  Section Symbol
U.S.C. United States Code

III. Basis, Purpose, and Background

    In 2014 and 2015, in resolutions MSC.384(94) and MEPC.264(68),
respectively, the International Maritime Organization (IMO) adopted the
safety and environmental provisions of the International Code for Ships
Operating in Polar Waters (Polar Code). The Polar Code adds
requirements to existing IMO Conventions--the International Convention
for the Safety of Life at Sea (SOLAS), the International Convention for
the Prevention of Pollution from Ships (MARPOL), and the International

Convention on Standards of Training, Certification, and Watchkeeping
for Seafarers (STCW)--in consideration of hazards and conditions unique
to the polar waters, and an expected increase in traffic in Arctic and
Antarctic waters. These additional hazards include navigation in ice
and low temperatures, high latitude communications and navigation,
remoteness from response resources, and limited hydrographic charting.
The Polar Code enters into force on January 1, 2017.
    One of the requirements for ships subject to the Polar Code is to
carry a Polar Ship Certificate pursuant to SOLAS. The Polar Ship
Certificate attests that the vessel has met applicable requirements of
SOLAS to the satisfaction of the U.S. Government. As a signatory to
SOLAS, the United States has a treaty obligation to ensure compliance
with SOLAS requirements. This rulemaking creates a certificate that
U.S. vessels subject to SOLAS will need in order to travel
internationally within polar waters as defined by the Polar Code
beginning January 1, 2017. Beginning on that date, U.S. vessels that
are subject to the SOLAS Convention and elect to travel through the
polar waters of States other than the United States will have to carry
a Polar Ship Certificate or risk detention, denial of entry, or
expulsion from the polar waters of other States. This rulemaking is
necessary to allow the Coast Guard to create the new Polar Ship
Certificate and add it to the list of certificates in 46 CFR part 2,
and to allow third-party organizations to issue it on the Coast Guard's
behalf by adding the new Polar Ship Certificate to the list of
certificates in 46 CFR part 8. Foreign flagged vessels, subject to
SOLAS and operating in polar waters, must also carry the Polar Ship
Certificate but the certificate will be issued by the vessel's class
society or flag state. However, the Coast Guard will examine foreign
flagged vessels during Port State Control boardings to ensure that they
are properly certificated. The SOLAS requirement applies to commercial
cargo ships greater than 500 gross tons engaging in international
voyages, and passenger ships carrying more than 12 passengers engaging
in international voyages, when these ships operate within polar waters
as defined by the Polar Code.
    The Coast Guard is authorized to regulate this subject matter
under, among other authorities, Executive Order 12234, ``Enforcement of
the Convention for the Safety of Life at Sea,'' 45 FR 58801; 33 U.S.C.
1231; 46 U.S.C. 2103, 3306, 3316, and 3703; and Department of Homeland
Security Delegation No. 0170.1.
    This rulemaking does not address the Polar Code requirements added
to SOLAS other than the Polar Code Certificate. Furthermore, this
rulemaking does not address the Polar Code requirements added to MARPOL
or STCW. In order to begin issuing Polar Code certificates as soon as
possible after January 1, 2017, the Coast Guard is implementing the
Polar Code through several rulemakings. The first project, which is
this rulemaking, only requires SOLAS vessels operating in polar waters
to carry a Polar Ship Certificate. It contains the regulatory changes
required for the issuance of the certificates and reflects only the
documentation costs for the certificates. Subsequent rulemakings will
implement the design, engineering, and personnel standards found in the
Polar Code. The incremental costs for industry to comply with these
standards will be accounted for in the regulatory analyses for those
rulemakings.

IV. Discussion of Proposed Rule

    This proposed rule would amend 46 CFR 2.01-6(a)(1), and 2.01-25
(a)(1) and (a)(2), to include the Polar Ship Certificate in the list of
International Convention Certificates to be issued by the Officer in
Charge of Marine Inspection and carried on certain passenger, cargo,
and tankships engaged in international voyages. This proposed
requirement would apply to commercial cargo ships greater than 500
gross tons and passenger ships carrying more than 12 passengers that
engage in international voyages within polar waters as defined by the
Polar Code.
    This proposed rule would also amend 46 CFR 8.320(b) to include the
Polar Ship Certificate in the list of International Convention
Certificates that could be issued by recognized classification
societies. Both the Coast Guard and classification societies would have
the ability to issue these certificates.
    By adding this certificate to the Code of Federal Regulations, we
enable marine inspectors to ensure compliance with the SOLAS
requirement to carry a Polar Ship Certificate, which fulfills the
United States' treaty obligations with regard to the certification.
Additionally, without this certificate, the U.S.-flagged vessels
sailing on international routes would be subject to deficiencies,
detentions, denial of entry or expulsion from the polar waters of other
port States due to lack of proper certificates.

V. Regulatory Analyses

    We developed this proposed rule after considering numerous statutes
and Executive orders related to rulemaking. Below we summarize our
analyses based on these statutes or Executive orders.

A. Regulatory Planning and Review

    Executive Orders 12866 (Regulatory Planning and Review) and 13563
(Improving Regulation and Regulatory Review) direct agencies to assess
the costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts, and equity). Executive
Order 13563 emphasizes the importance of quantifying both costs and
benefits, of reducing costs, of harmonizing rules, and of promoting
flexibility. This rule has not been designated a ``significant
regulatory action,'' under section 3(f) of Executive Order 12866.
Accordingly, the rule has not been reviewed by the Office of Management
and Budget.
    This proposed rule would add a new Polar Ship Certificate to the
list of existing SOLAS certificates required to be carried onboard all
U.S. and foreign-flagged vessels above 500 GT ITC, (the International
Convention on Tonnage Measurement of Ships 1969 or gross tonnage
assigned under this system) or passenger ships carrying more than 12
passengers on international routes operating in polar waters, generally
above 60 degrees north latitude and below 60 degrees south latitude
lines. The IMO adopted the Polar Code in 2014 and 2015 to acknowledge
that polar waters impose additional operating demands and risks.\1\
Since the United States is signatory to the SOLAS convention, the
United States has an obligation to ensure that all U.S.-flagged vessels
subject to SOLAS that transit in polar waters carry a Polar Ship
Certificate. Owners and operators of all foreign-flagged vessels
subject to SOLAS would have their Polar Ship Certificates issued by the
appropriate flag state.
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    \1\ http://www.imo.org/en/MediaCentre/HotTopics/polar/Documents/POLAR%20CODE%20TEXT%20AS%20ADOPTED.pdf.
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    This proposed rule would amend 46 CFR part 2, ``Vessel
Inspections'', Subpart 2.01, ``Inspecting and Certificating of
Vessels'' including Section 2.01-25, ``International Convention for
Safety of Life at Sea'' to include the new Polar Ship Certificate. The
proposed rule would also amend 46 CFR part 8, ``Vessel Inspection

Alternatives'', Subpart C, ``International Convention Certificate
Issuance'', Section 8.320, ``Classification Society Authorization to
Issue International Certificates'', at paragraph (b) to include the
Polar Ship Certificate as one of the certificates that can be issued by
a recognized classification society on behalf of the Coast Guard.
Affected Population
    Based on Coast Guard field data and Coast Guard databases such as
the Marine Information for Safety and Law Enforcement (MISLE) database,
the Coast Guard's Ship Arrival Notification System (SANS), and data
from the Coast Guard's Navigation Data Center (NDC), we estimate the
total number of U.S. vessels this proposed rule would affect to be
about 41 total vessels. This is the number of U.S. vessels that have
transited internationally in polar waters, which are generally above
and below the 60 degree north and 60 degree south latitudes lines,
respectively, over the past 5 years and have made port calls in Alaskan
ports over this time period. Of the 41 U.S. vessels that have transited
polar waters during the 5-year period, some entered polar waters in the
first year and not the following year, but returned in subsequent
years. The opposite is also true; some vessels that did not transit
polar waters in the first year of the data period did so in the
following years of the data period.
    Recognized classification societies that have been granted
delegated authority from the Coast Guard would issue the Polar Ship
Certificate, an international convention certificate, on behalf of the
Coast Guard for U.S.-flagged vessels that are classed under the
authority in 46 CFR 8.320(a). Although multiple classification
societies could request authorization to issue the Polar Ship
Certificate on behalf of the Coast Guard, for the purpose of this
analysis, the Coast Guard assumes one classification society would
issue the Polar Ship Certificate to vessel owners and operators on
behalf of the Coast Guard for vessels that are classed.
Cost Analysis
Classification Societies Cost
    This proposed rule would amend 46 CFR 8.320(b) to enable recognized
class societies to request authorization to issue the Polar Ship
Certificate on behalf of the Coast Guard. For vessels that are not
classed, the Coast Guard would issue the Polar Ship Certificate.
    There are two cost elements associated with a classification
society issuing a Polar Ship Certificate: The cost to review and return
a signed copy of the Memorandum of Agreement (MOA) between the
recognized classification society and the Coast Guard, and the cost to
create the certificate once the MOA is approved by each party. As
stated in 46 CFR 8.320(c), the Coast Guard will enter into an agreement
with the classification society to issue international convention
certificates such as the Polar Ship Certificate. The MOA essentially
represents a delegation letter and is a standard document that allows a
recognized classification society to issue the Polar Ship Certificate
on behalf of the Coast Guard.
    Based on Coast Guard data from the Office of Design and Engineering
Standards, we estimate it would take a recognized classification
society 1 hour to review the MOA. A classification and documentation
specialist would review the MOA and because there is no equivalent
labor category in the Bureau of Labor Statistics' (BLS) Occupational
Employment Statistics National Industry-Specific Occupational
Employment and Wage Estimates for May 2015, we used the ``Business
Operations Specialist, All Other'' (Occupation Code 13-1199) category
for Deep Sea, Coastal, and Great Lakes Water Transportation with a
North American Industry Classification Code of 483100 as a
representative occupation. The mean hourly wage rate for this
occupation is $38.63. Since this is an unloaded hourly wage rate, we
added a load factor to obtain a loaded hourly wage rate. We used BLS'
2015 Employer Cost for Employee Compensation databases to calculate and
apply a load factor of 1.53 to obtain a loaded hourly labor rate of
about $59.10 for this occupation.\2\ We also estimate it would take a
recognized classification society attorney 1 hour to review the MOA for
legal sufficiency. Using the Bureau of Labor Statistics' (BLS)
Occupational Employment Statistics National Industry-Specific
Occupational Employment and Wage Estimates for May 2015, we used the
category ``Lawyers'' (Occupation Code 23-1011) for Deep Sea, Coastal,
and Great Lakes Water Transportation with a North American Industry
Classification Code of 483100. The mean hourly wage for this occupation
is $65.51. Since this is an unloaded hourly wage rate, we apply the
same load factor of 1.53 as derived above to obtain a loaded hourly
wage rate of about $100.23.
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    \2\ Information can be viewed at, http://www.bls.gov/oes/current/naics4_483100.htm. A loaded labor rate is what a company
pays per hour to employ a person, not the hourly wage. The loaded
labor rate includes the cost of benefits (health insurance,
vacation, etc.). The load factor for wages is calculated by dividing
total compensation by wages and salaries. For this analysis, we used
BLS' Employer Cost for Employee Compensation/Transportation and
Materials Moving Occupations, Private Industry Report (Series IDs,
CMU2010000520000D and CMU2020000520000D for all workers using the
multi-screen data search). Using 2015 Q4 data for the cost of
compensation and cost per hour worked, we divide the total
compensation amount of $27.46 by the wage and salary amount of
$17.91 to obtain the load factor of about 1.53, rounded. See the
following Web site, http://data.bls.gov/cgi-bin/dsrv. Multiplying
1.53 by $38.63, we obtain a loaded hourly wage rate of about $59.10.
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    We estimate the one-time cost of the proposed rule to the
classification society to review the MOA to be about $162.33,
undiscounted, which includes a $3 postage cost to mail the signed MOA
to the Coast Guard for approval and signature [($59.10 x 1 hour) +
($100.23 x 1 hour) + $3 for postage].
    Based on a recognized classification society estimate, it would
take approximately 40 hours to create the Polar Ship Certificate once
the MOA is approved. As with the MOA, a classification and
documentation specialist would create the certificate. We again used
the ``Business Operations Specialist, All Other'' as a representative
occupation. We estimate the one-time labor cost for a documentation
specialist to create the certificate to be about $2,364.00 (40 hours
\3\ x $59.10/hour), undiscounted. Since the certificate is presented to
a vessel owner or operator during the normal course of a vessel survey,
we did not estimate a cost for this action.
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    \3\ Based on estimate provided by a recognized class society to
USCG.
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    We estimate the total undiscounted cost of the proposed rule to a
recognized classification society to be about $2,526.33 ($2,364
document development cost + $162.33 MOA review cost).
Vessel Cost
    There are two cost elements associated with vessel owners and
operators: The fee a recognized classification society would charge a
vessel owner or operator for issuing the certificate for U.S. classed
vessels only, and the cost associated with a crewmember posting the
certificate onboard a vessel. Based on Coast Guard vessel data,
approximately 20 percent, or 8 out of the 41 U.S.-flagged vessels, are
not classed by a recognized classification society.
    The entry into force date for the Polar Code is Jan 1, 2017 but the
requirement for ships is to have the certificate by their first renewal
or intermediate exam after the entry into force date. This is a phased
in approach that will likely

spread out the issuing of the certificates over a period of about 3
years. Therefore, the Coast Guard would issue the Polar Ship
Certificate to those vessel owners and operators as part of its routine
inspection regime. A recognized classification society would issue the
Polar Ship Certificate to the remaining 33 vessel owners and operators
in the first, second, third, sixth, seventh, and eighth year of the
analysis period.
    The Polar Ship Certificate is valid for a 5-year period and, after
this time, the recognized classification society and the Coast Guard
would issue a new Polar Ship Certificate to vessel owners and
operators, depending upon whether a vessel is classed or not classed.
The cost of the reissued Polar Ship Certificate is $100 if a recognized
classification society issues the certificate (for 33 classed U.S.
vessels); therefore, it would cost each U.S. classed vessel owner and
operator $100 after 5 years to renew the certificate, or in the sixth,
seventh, and eighth year of the analysis period. We assume a 3-year
phase-in period for owners and operators to obtain the certificates.
For the purpose of this analysis, we assume 13 U.S. vessels owners and
operators (11 classed and 2 unclassed) would obtain a certificate in
the first year and 14 (11 classed and 3 unclassed) U.S. vessel owners
and operators would obtain one in the second year and third year. For
reissuance, we again assume the same 13 vessel owners and operators
would obtain a certificate in the sixth year and the same 14 vessel
owners and operators would obtain one in the seventh and eighth year
each; we divided the population accordingly to obtain even values.
    Vessel owners and operators would be required to post the
certificate in a conspicuous area onboard the vessel with other
applicable operating certificates. Based on the Office of Management
and Budget's (OMB) approved collection of information (COI) entitled
``Various International Agreement Safety Certificates,'' OMB control
number 1625-0017, a crewmember onboard a vessel equivalent to a U.S.
Coast Guard cadet would post the Polar Ship Certificate. Using the
Coast Guard's Commandant Instruction 7310.1P for loaded hourly wages
outside of the Government, the hourly wage rate of a person outside of
the Government equivalent to a cadet is $26.00. We estimate it takes a
crewmember about 6 minutes, or 0.1 hours, to post the Polar Ship
Certificate at a labor cost of about $2.60 per vessel ($26.00 x 0.1
hours). To post the Polar Ship Certificate, we estimate the total
initial cost of the proposed rule to 13 U.S. vessel owners and
operators to be about $33.80 (13 U.S. classed and unclassed vessels x
0.1 hours x $26.00); regardless of whether the Polar Ship Certificate
is issued by a recognized classification society, or by the Coast
Guard. Owners and operators of U.S. vessels would incur this cost again
in the sixth year because a crewmember would review and post the
reissued certificate for the same 13 vessels.
    We estimate the initial cost of the proposed rule to vessel owners
and operators to be about $1,133.80 in the first year (11 classed
vessels x $100) + (11 classed vessels x $2.60 to post the certificate)
+ two unclassed vessels x $2.60 to post the certificate). Because
vessel owners and operators would be required to carry the Polar Ship
Certificate beginning January 2017, the cost for the renewed
certificate in the sixth year (or 5 years after the initial year) would
again be $1,133.80 for these 13 vessels. In the second and third and
seventh and eighth year, we estimate the cost for 14 U.S. vessel owners
and operators to obtain and post a Polar Ship Certificate to be about
$1,136.40 [(11 classed vessels x $100) + (11 classed vessels x $2.60 to
post the certificate) + three unclassed vessels in each of these years
x $2.60 each year to post the certificate]. See Table 1 below.

                Table 1--Summary of Classification Society and Vessel Owners and Operators Costs
                                                 [Undiscounted]
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            Cost item                 Unit cost         Labor rate           Hours             Total cost
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Classification Society             ..............  $59.10.............              40  $2,364 (incurred in year
 Certificate Creation.                                                                   one).
Classification Society Review of   ..............  $100.23 (Attorney).               1  $162.33 (incurred in
 MOA.                                                                                year one and includes
                                                                                $3 postage).
                                   ..............  $59.10 (Business                  1
                                                    Operations
                                                    Specialist).
Certificate Fee Charged to Vessel            $100  ...................  ..............  $1,100 (incurred in
 Owners and Operators.                                                                   years one to three and
                                                                                six to eight); $3,300
                                                                                for 33 classed vessels
                                                                                in years one to three
                                                                                and six to eight.
Vessel Crewmember Reviews and      ..............  $26................             0.1  $2.60 (incurred in year
 Posts Certificate.                                                                      one to three and six to
                                                                                eight); $33.80 in year
                                                                                one and six and $36.40
                                                                                in years two and three;
                                                                                seven and eight.
                                  ------------------------------------------------------------------------------
    Total Undiscounted Cost        ..............  ...................  ..............  $3,660.13.
     (Initial year).
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    We estimate the total 10-year undiscounted cost to be $6,813.20 for
all 41 U.S. vessel owners and operators ($1,133.80 in the first and
sixth year + $1,136.40 in the second, third, seventh and eighth years
of the analysis period). See Table 2 below.
    We estimate the initial undiscounted cost of the proposed rule to a
recognized classification society and to 13 (11 classed and 2 unclassed
vessels) U.S. vessel owners and operators to be about $3,660.13 ($2,364
for the classification society to create the certificate + $162.33 for
the classification society to review the MOA + $1,100 fee charged by a
classification society to issue the certificate to the 11 classed
vessel owners and operators + $33.80 for crewmembers of the 13 classed
and unclassed vessels to post the certificate). We estimate the total
10-year undiscounted cost of the proposed rule to industry to be about
$9,339.53 ($3,660.13 in the first year + $1,136.40 in the second,
third, seventh, and eighth years + $1,133.80 in the sixth year). See
Table 2 below.
    We estimate the 10-year present value, or discounted cost of the
proposed rule to industry to be between $7,465.49 and $8,435.28 at 7
and 3 percent discount rates, respectively. We estimate the annualized
cost to be between $1,062.92 and $988.87 at 7 and

3 percent discount rates, respectively. See Table 2 below.

                              Table 2--Total Costs of the Proposed Rule to Industry
                   [10-Year period of analysis, 7 and 3 percent discount rates, 2016 dollars]
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                                                                  Cost
                          Period                             (undiscounted)          7%                3%
----------------------------------------------------------------------------------------------------------------
1.........................................................         $3,660.13         $3,420.68         $3,553.52
2.........................................................          1,136.40            992.58          1,071.17
3.........................................................          1,136.40            927.64          1,039.97
4.........................................................  ................  ................  ................
5.........................................................  ................  ................  ................
6.........................................................          1,133.80            755.50            949.54
7.........................................................          1,136.40            707.69            924.00
8.........................................................          1,136.40            661.40            897.08
9.........................................................  ................  ................  ................
10........................................................  ................  ................  ................
                                                           -----------------------------------------------------
    Total.................................................           9339.53          7,465.49          8,435.28
----------------------------------------------------------------------------------------------------------------
Annualized................................................  ................          1,062.92            988.87
----------------------------------------------------------------------------------------------------------------
Note: Totals may not sum due to independent rounding.

Government Costs
    There are 3 cost elements associated with this proposed rule for
the Coast Guard: A one-time cost of creating the certificate and
issuing (in the initial year, second, third, sixth, seventh, and eighth
year) the Polar Ship Certificate to a vessel owner or operator if a
vessel is not classed by a class society, reviewing the certificate
onboard a vessel as part of the Coast Guard's routine inspection
regime, and a one-time cost of creating and sending the delegation
letter or MOA to a classification society for signature.
    For the eight U.S. vessels that are not classed by a recognized
classification society, the Coast Guard would issue the Polar Ship
Certificate in the first through the third year and the sixth through
the eighth year. Because of the phase-in period, we divided the eight
vessels evenly over three years to arrive at two in the first and sixth
year and three in the second, third, seventh, and eighth year, with the
sixth, seventh, and eighth year being the years when the certificate is
reissued.
    Based on information from personnel in the Coast Guard's Office of
Vessel Compliance, we estimate it takes Coast Guard personnel with the
average equivalence of a GS-15 about 40 hours to create and review a
Polar Ship Certificate at an average loaded hourly wage rate of $109
using the Coast Guard's Commandant Instruction 7310.1P. We estimate the
one-time cost for the Coast Guard to create the Polar Ship Certificate
to be about $4,360 (40 hours x $109/hour), for the eight U.S. vessels
without a classification.
    Based on an OMB-approved COI (Control Number 1625-0017), we
estimate it takes a Coast Guard Officer, the Officer in Charge Marine
Inspection (OCMI), or more specifically, a Lieutenant with the rank of
an O-3, about 30 minutes, or 0.5 hours per vessel, to review the Polar
Ship Certificate for validity and correctness (the Coast Guard issues
and reviews the certificate at the same time during its normal
inspection regime). Using the Coast Guard's Commandant Instruction
7310.1P for loaded hourly wages, an O-3 has a loaded hourly wage rate
of $78.00. Therefore, we estimate the total undiscounted cost to the
Government to review the Polar Ship Certificate for all 41 affected
vessels to be about $1,599.00 ($78.00 x 41 vessels x 0.5 hours), or
about $39.00 per vessel. We use the same methodology as above with
owners and operators obtaining certificates over a three-year period
(13 in the first and sixth year and 14 in the second, third, seventh
and eighth year), with the sixth, seventh and eighth year being the
renewal years. Again, 13 inspections (11 classed and 2 unclassed) would
take place in the first and sixth year, and 14 (11 classed and 3
unclassed) in second, third, seventh, and eighth year. Therefore, the
first year cost to the Government to review the certificate would be
about $507.00 (11 classed and 2 unclassed vessels x $39.00). The
Government would incur this cost again in the sixth year when the
certificate is reissued. In years two, three, seven, and eight, the
Government would incur a certificate review cost of about $546.00 (11
classed and 3 unclassed vessels x $39.00) in each of these years.
    The Coast Guard would also examine the certificates of foreign-
flagged vessels that enter U.S. ports in polar waters as part of its
routine Port State Control vessel boardings. Because this will take
place during routine Coast Guard examinations and for issuing
certificates of compliance, the time it takes to perform this task is
minimal and as such we do not estimate a cost to the Government.
    Because this proposed rule would also enable a recognized
classification society to issue the Polar Ship Certificate on behalf of
the Coast Guard, the Coast Guard and a recognized classification
society would enter into an MOA which delegates authority to the
classification society and sets forth guidelines for cooperation
between the Coast Guard and a classification society with respect to
initial and subsequent inspections for certifications and periodic re-
inspections or examinations of vessels of the United States, as defined
by 46 U.S.C. 2101 (46).
    Based on information from the Coast Guard's Office of Design and
Engineering Standards, Coast Guard personnel with the average
equivalence of a GS-15 would prepare the MOA for delivery to a
classification society. Again, we used an average loaded hourly labor
rate of $109 for a GS-15. We estimate it would take Government
personnel about 6.25 hours to prepare and review the MOA. We estimate
it would cost about $3 in postage for the Government to send the MOA to
the classification society.
    We estimate the total cost incurred by the Government for the MOA
to be about $681.25 plus $3 for postage, or a total cost of $684.25,
undiscounted (6.25 hours x $109). Other than the postage cost, other
costs incurred are

opportunity costs, since personnel would perform this function in the
normal course of his or her duties.
    We estimate the total initial cost to the Government to be about
$5,551.25 ($4,360 to create and review the certificate, $507.00 to
review the certificates for 11 classed and 2 unclassed U.S. vessels,
and $684.25 for the MOA). We estimate the total 10-year undiscounted
cost to the Government to be about $8,242.25 ($5,551.25 in the initial
year + $546.00 in the second, third, seventh and eighth years + $507.00
in the sixth year). We estimate the 10-year present value, or
discounted cost of the proposed rule to the Government, to be between
$7,106.31 and $7,703.46, using 7 and 3 percent discount rates,
respectively. We estimate the annualized cost to be between $1,011.78
and $903.08, using 7 and 3 percent discount rates, respectively. See
Table 3 below.

                           Table 3--Total Costs of the Proposed Rule to the Government
                   [10-Year period of analysis, 7 and 3 percent discount rates, 2016 dollars]
----------------------------------------------------------------------------------------------------------------
                                                                  Cost
                          Period                             (undiscounted)          7%                3%
----------------------------------------------------------------------------------------------------------------
1.........................................................  ................         $5,188.08         $5,389.56
2.........................................................  ................            476.90            514.66
3.........................................................  ................            445.70            499.67
4.........................................................  ................  ................  ................
5.........................................................  ................  ................  ................
6.........................................................  ................            337.84            424.60
7.........................................................  ................            340.02            443.95
8.........................................................  ................            317.78            431.02
9.........................................................  ................  ................  ................
10........................................................  ................  ................  ................
                                                           -----------------------------------------------------
    Total.................................................          8,242.25          7,106.31          7,703.46
----------------------------------------------------------------------------------------------------------------
Annualized................................................  ................          1,011.78            903.08
----------------------------------------------------------------------------------------------------------------
Note: Totals may not sum due to independent rounding.

Total Cost of the Proposed Rule to Industry and Government
    We estimate the total 10-year combined undiscounted cost of the
proposed rule to industry and the Government to be about $17,582. We
estimate the 10-year present value, or discounted cost of the proposed
rule to industry and the Government, to be between $14,572 and $16,139
at 7 and 3 percent discount rates, respectively. We estimate the
annualized cost to be between $2,075 and $1,892 using the same discount
rates. See Table 4 below.

                    Table 4--Summary of Costs of the Proposed Rule to Industry and Government
                                   [10-Year period of analysis, 2016 dollars]
----------------------------------------------------------------------------------------------------------------
              Type of cost                    Industry         Government        Total cost        Annualized
----------------------------------------------------------------------------------------------------------------
Undiscounted............................         $9,339.53         $8,242.25        $17,581.78  ................
7%......................................          7,465.49          7,106.31         14,571.80          2,074.70
3%......................................          8,435.28          7,703.46         16,138.74          1,891.95
----------------------------------------------------------------------------------------------------------------

Benefits
    The primary benefit of this proposed rule is to ensure that vessel
owners and operators have a valid Polar Ship Certificate onboard the
vessel, which shows compliance with applicable SOLAS regulations and
requirements. Without a Polar Ship Certificate, a vessel would be
subject to deficiencies, detention, denial of entry, or expulsion from
the polar waters of other port States. Adherence to SOLAS would ensure
vessels are capable of operating in polar waters, and the hazards and
adverse weather conditions unique to polar waters. Furthermore, since
the United States is a signatory to SOLAS and has a treaty obligation
to ensure compliance with SOLAS requirements, this rulemaking would
ensure that the United States is compliant with this SOLAS requirement.
Alternatives
    When creating this proposed rule, the Coast Guard considered
several alternatives. The previous analysis represents the preferred
alternative, which would ensure U.S. vessel owners and operators that
operate vessels in polar waters would be compliant with the IMO Polar
Code and SOLAS Convention. With the carriage of the Polar Ship
Certificate onboard vessels, U.S. vessel owners and operators would be
compliant with the SOLAS convention and applicable SOLAS operating
requirements when transiting in polar waters.
Alternative 1: Preferred Alternative
    The analysis for this alternative appears in the ``Regulatory
Analysis'' section of the preamble of this proposed rule.
Alternative 2: No Action Alternative
    In this alternative, the United States would take no action
regarding the issuance of a Polar Ship Certificate and none of the
costs itemized in the preferred alternative would be incurred. However,
with this alternative, the United States would not be compliant with
its international legal obligations as a signatory Government to the
SOLAS Convention. Additionally, the lack of appropriate certifications
would likely negatively impact U.S.-flagged vessels on international
voyages in polar waters of other port States. United States vessels
would potentially be subject to deficiencies, detentions, denial of
entry, or expulsion from the polar waters of other port states due to
the lack of proper certificates. Because the United States would not
meet its international treaty obligations in this

alternative, the Coast Guard rejects this alternative.
Alternative 3: Large Scale Regulatory Implementation of the Polar Code
    In this alternative, the Coast Guard would implement the entire
Polar Code in one regulatory effort. This would create or modify
regulations throughout 46 and 33 CFR. The affected vessels, operators,
and the Government would also incur the costs and impacts of the
implementation of the entire Polar Code from a single regulatory
effort. The Coast Guard rejected this alternative because it would
greatly delay the issuance of the certificate beyond the January 1,
2017 effective date of the Polar Code.
    By moving forward with the proposed alternative, U.S. vessel owners
and operators who obtain a Polar Ship Certificate would be in
compliance with the operating requirements in the SOLAS Convention.
Therefore, they would be permitted to transit in polar waters of
foreign nations as soon as possible after January 1, 2017, without
adverse consequences such as denial of entry, expulsion, or possibly
detainment.

B. Small Entities

    Under the Regulatory Flexibility Act (RFA), 5 U.S.C. 601-612, we
have considered whether this proposed rule would have a significant
economic impact on a substantial number of small entities. The term
``small entities'' comprises small businesses, not-for-profit
organizations that are independently owned and operated and are not
dominant in their fields, and governmental jurisdictions with
populations of less than 50,000. In accordance with the Regulatory
Flexibility Act (RFA) (5 U.S.C. 601-612), the Coast Guard prepared this
threshold analysis that examines the impacts of the proposed rule on
small entities.
    Based on our analysis of the entities affected by this proposed
rule, all of the 41 affected U.S.-flagged vessels are owned by U.S.
entities. To determine which entities are small, we compiled the data
used in this analysis from publicly available and proprietary sources
such as Manta and Cortera, and from the affected entities' Web sites.
We used available owner's business information to identify the
entities' primary line of business as coded by the North American
Industry Classification System (NAICS) to find employee and revenue
size information. We used this information to determine whether we
should consider a business ``small'' by comparing it to the Small
Business Administration's (SBA) ``Table of Small Business Size
Standards Matched to North American Industry Classification System
Codes.'' In some cases, SBA classifies businesses on a standard either
based on the number of employees or annual revenues.\4\ We found that
no small government jurisdictions or non-profits own any of the U.S.
vessels affected by this proposed rule.
---------------------------------------------------------------------------

    \4\ Readers can access small entity information online at http://www.sba.gov/size/indextableofsize.html.
---------------------------------------------------------------------------

    We found that 19 of the 41 (46 percent) affected companies are
small entities and the remaining companies are not small, based on
SBA's size standards. We found 11 different NAICS codes represent the
19 small entities with the NAICS code 488330, ``Navigational Services
to Shipping'', representing 8 of the 19 small entities or 42 percent of
them.
    We estimate the initial cost to each classed vessel owner and
operator to be about $102.60 [$1,100/11 classed U.S vessel owners and
operators that have their vessels classed by a class society + $28.60
(11 classed vessels x $2.60)/11 (cost for crewmembers of 11 classed
U.S. vessel owners and operators to post the certificate divided by the
number of U.S. classed vessel owners and operators. Again, in the sixth
year, these 11 classed U.S. vessel owners and operators would incur
this cost)]. In the second, third, seventh, and eighth year, 11 classed
vessel U.S. vessel owners and operators would incur this same cost. The
eight U.S. vessel owners who own vessels that are not classed would
only incur a cost of $2.60 per vessel in the each of the years
described above or the first (two vessels) through the third year
(three vessels in the second and third year each) and sixth (the same
two vessels as in the first year) through the eighth year (the same
three vessels as in the second and third year in the seventh and eighth
year each) of the analysis period.
    Of the 19 small entities, 16 had annual revenue information (the
remaining three small entities only had employee information). Of the
16, 12 are classed, which means four (12/3 years for the phase-in
period) would incur the $102.60 in the initial year and again in the
second and third year and for reissuance of the certificate again in
the sixth, seventh, and eighth year of the analysis period. The four
that are not classed would only incur the cost of posting the
certificate of $2.60 in each year described above (or essentially one
in the first year and second year and again in the sixth and seventh
year when the certificate is reissued and two in the third year and
again in the eighth year when the certificate is reissued). All 16
small entities or 100 percent would have an annual revenue impact of
less than 1 percent in the initial year and in the second, third,
sixth, seventh, and eighth year of the analysis period. Thus, the
estimated impact on the affected entities is not a significant economic
impact.
    Based on the preceding analysis, the Coast Guard certifies under 5
U.S.C. 605(b) that this proposed rule would not have a significant
economic impact on a substantial number of small entities. If you think
that your business, organization, or governmental jurisdiction
qualifies as a small entity and that this rule would have a significant
economic impact on it, please submit a comment to the Docket Management
Facility at the address under ADDRESSES. In your comment, explain why
you think it qualifies and how and to what degree this proposed rule
would economically affect it.

C. Assistance for Small Entities

    Under section 213(a) of the Small Business Regulatory Enforcement
Fairness Act of 1996, Public Law 104-121, we want to assist small
entities in understanding this proposed rule so that they can better
evaluate its effects on them and participate in the rulemaking. If the
proposed rule would affect your small business, organization, or
governmental jurisdiction and you have questions concerning its
provisions or options for compliance, please consult CDR Todd Howard
using the contact information given in the FOR FURTHER INFORMATION
CONTACT section of this proposed rule. The Coast Guard will not
retaliate against small entities that question or complain about this
rule or any policy or action of the Coast Guard.
    Small businesses may send comments on the actions of Federal
employees who enforce, or otherwise determine compliance with, Federal
regulations to the Small Business and Agriculture Regulatory
Enforcement Ombudsman and the Regional Small Business Regulatory
Fairness Boards. The Ombudsman evaluates these actions annually and
rates each agency's responsiveness to small business. If you wish to
comment on actions by employees of the Coast Guard, call 1-888-REG-FAIR
(1-888-734-3247).

D. Collection of Information

    The Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520) requires
that the Coast Guard consider the impact of paperwork and other
information collection burdens imposed on the

public. According to the 1995 amendments to the Paperwork Reduction
Act, an agency may not collect or sponsor the collection of
information, nor may it impose an information collection requirement
unless it displays a currently valid OMB control number.
    This action contains proposed amendments to the existing
information collection requirements previously approved under OMB
Control Number 1625-0017.
    As defined in 5 CFR 1320.3(c), ``collection of information''
comprises reporting, recordkeeping, monitoring, posting, labeling, and
other similar actions. The title and description of the information
collections, a description of those who must collect the information,
and an estimate of the total annual burden follow. The estimate covers
the time for reviewing instructions, searching existing sources of
data, gathering and maintaining the data needed, and completing and
reviewing the collection.
    The summary of revised 1625-0017 collection follows:
    Title: Various International Agreement Safety Certificates.
    OMB Control Number: 1625-0017.
    Summary of the Collection of Information: The International
Convention for the Safety of Life at Sea (SOLAS) is a product of the
International Maritime Organization (IMO), an agency of the United
Nations. SOLAS applies to all mechanically propelled cargo and tank
vessels of 500 or more gross tons (GT), and to all mechanically
propelled passenger vessels carrying more than 12 passengers that
engage in international voyages. By IMO's definition, an
``international voyage'' means a voyage from a country to which the
Convention applies to a port outside the country, or vice versa. The
United States, represented by the U.S. Coast Guard, was a major
contributor and proponent of the 1974 Convention (SOLAS 74). President
Carter's Executive Order 12234 (September 3, 1980), noted that SOLAS 74
was signed at London on November 1, 1974, proclaimed by the President
of the United States on January 28, 1980, and entered into force for
the United States on May 25, 1980.
    SOLAS 1974 currently requires one or more of the following
certificates to be carried on onboard certain passenger and cargo ships
engaged in international voyages (46 CFR 2.01-25):

(1) Passenger Ship Safety Certificate and Record
(2) Cargo Ship Safety Construction Certificate
(3) Cargo Ship Safety Equipment Certificate and Record
(4) Cargo Ship Safety Radio Certificate (issued by Federal
Communications Commission (FCC))
(5) Nuclear Passenger Ship Safety Certificate
(6) Nuclear Cargo Ship Safety Certificate
(7) Safety Management Certificate
(8) International Ship Security Certificate
(9) High-Speed Craft Safety Certificate

    The Coast Guard is adding the Polar Ship Certificate to the list of
certificates that it can issue.
    Need for Information: In June of 2015, in resolutions MSC.384(94)
and MEPC.264(68), the International Maritime Organization (IMO) adopted
the International Code for Ships Operating in Polar Waters (Polar
Code). The Polar Code raises the safety standards for commercial ships
operating in or transiting through Arctic and Antarctic waters as well
as enhances environmental protection for polar waters that include
coastal communities in the U.S. Arctic. As a signatory to the
International Convention for the Safety of Life at Sea (SOLAS), the
United States has a treaty obligation to ensure compliance with SOLAS
requirements.
    All mechanically propelled passenger vessels carrying more than 12
passengers that engage in international voyages and all mechanically
propelled cargo vessels of more than 500 gross tons that engage in
international voyages within polar waters as defined by the Polar Code
would be required to have the Polar Ship Certificate. The Polar Ship
Certificate is valid for 5 years.
    The purpose of this rulemaking is to ensure that marine inspectors
could issue certificates required by the Polar Code and that these
certificates are being carried on all applicable vessels. Additionally,
this rulemaking will add the Polar Ship Certificate to the list of
certificates that classification societies could issue on behalf of the
Coast Guard-in consideration of hazards and conditions unique to polar
waters and a potential increase in traffic in Arctic and Antarctic
waters. These additional hazards include navigation in ice and low
temperatures, high latitude communications and navigation, remoteness
from response resources, and limited hydrographic charting.
    We calculate the hour burden on an annual basis, which takes into
account the reissuance of the certificate every fifth year. The
estimated burden is 1/10 of an hour or 6 minutes. About 8 vessels (41
total vessels/5 years) annually equates to 48 minutes or 0.8 hours for
the hour burden. Or equivalently, 13 classed and unclassed U.S. vessels
(11 classed and 2 unclassed) x 6 minutes in the first and sixth years +
14 classed unclassed U.S vessels (11 classed and 3 unclassed) x 6
minutes in the second, third, seventh and eighth year for a total of
492 minutes divided by 82 vessels (13 in the first and sixth years and
14 in the second, third, seventh, and eighth year of the analysis
period. Recall, because vessel owners and operators would have 3 years
to obtain a certificate, we divided the population essentially into
thirds, 13 in the first and sixth years and 14 in the second, third,
and seventh and eighth years).
    Proposed use of Information: The Polar Ship Certificate attests
that the vessel has met applicable requirements of SOLAS to the
satisfaction of the U.S. Government. Without the certificate, U.S.-
flagged vessels could be detained in foreign ports as being unsafe.
    Description of the Respondents: Respondents are the owner, agent,
Master, operator, or person in charge of a U.S.-flagged vessel that
transits in polar waters.
    Number of Respondents: The existing OMB-approved number of
respondents is 413. This proposed rule would not change the number of
respondents because the vessel population that would be affected is a
subset of the existing number of respondents; this proposed rule is not
adding new respondents to this collection.
    Frequency of Response: The existing OMB-approved number of
responses is 912. This proposed rule would increase the number of
responses by 14 annually (41 vessels/3-year renewal period) to 926.
    Burden of Response: The existing OMB-approved burden of response is
6 minutes, or 0.1 hours, or the time it takes for a crewmember of a
vessel to post the Polar Ship Certificate onboard the vessel.
    Estimate of Total Annual Burden: The existing OMB-approved total
annual burden is 94 hours. This proposed rule would increase the burden
hours annually by one hour. The estimated total annual burden would now
be 95 hours annually.
    As required by 44 U.S.C. 3507(d), we will submit a copy of this
proposed rule to OMB for its review of the COI.
    We ask for public comment on the proposed COI to help us determine
how useful the information is; whether it can help us perform our
functions better; whether it is readily available elsewhere; how
accurate our estimate of the burden of collection is; how valid our
methods for determining burden

are; how we can improve the quality, usefulness, and clarity of the
information; and how we can minimize the burden of collection.
    If you submit comments on the COI, submit them both to OMB and to
the Docket Management Facility where indicated under the ADDRESSES
section of this proposed rule, by the date under the DATES section.
    You need not respond to a COI unless it displays a currently valid
control number from OMB. Before the Coast Guard could enforce the COI
requirements in this proposed rule, OMB would need to approve the Coast
Guard's request to collect this information.

E. Federalism

    A rule has implications for federalism under Executive Order 13132
(``Federalism'') if it has a substantial direct effect on States, on
the relationship between the national government and the States, or on
the distribution of power and responsibilities among the various levels
of government. We have analyzed this proposed rule under Executive
Order 13132 and have determined that it is consistent with the
fundamental federalism principles and preemption requirements as
described in Executive Order 13132. Our analysis is explained below.
    It is well settled that States may not regulate in categories
reserved for regulation by the Coast Guard. It is also well settled
that Coast Guard regulations regarding vessel design, construction,
alteration, repair, maintenance, operation, equipping, personnel
qualification, and manning issued under the authority of 46 U.S.C.
3306, 3703, 7101, and 8101 are within fields foreclosed from regulation
by the States. See United States v. Locke, 529 U.S. 89, 90 (2000)
(stating ``Congress has left no room for state regulation of these
matters.''). This rule adds the Polar Ship Certificate to the list of
certificates required, if applicable, by the SOLAS. Additionally, this
rule adds this certificate to the list of SOLAS certificates that
recognized classification societies are authorized to issue on behalf
of the Coast Guard. The issuance of international certificates is
within the sole purview of the Coast Guard to regulate pursuant to 46
U.S.C. 3306, 3703, 7101, and 8101; Executive Order 12234; and the
principles discussed in Locke. Thus, the regulations are consistent
with the principles for federalism and preemption requirements in
Executive Order 13132.
    While it is settled that States may not regulate in categories in
which Congress intended the Coast Guard to be the sole source of a
vessel's obligations, the Coast Guard recognizes the key role that
State and local governments may have in making regulatory
determination. Additionally, for rules with federalism implications and
preemptive effect, Executive Order 13132 specifically directs agencies
to consult with State and local governments during the rulemaking
process. If you believe this rule has implications for federalism under
Executive Order 13132, please contact the person listed in the FOR
FURTHER INFORMATION section of this preamble.

F. Unfunded Mandates Reform Act

    The Unfunded Mandates Reform Act of 1995, 2 U.S.C. 1531-1538,
requires Federal agencies to assess the effects of their discretionary
regulatory actions. In particular, the Act addresses actions that may
result in the expenditure by a State, local, or tribal government, in
the aggregate, or by the private sector of $100,000,000 (adjusted for
inflation) or more in any one year. Though this proposed rule would not
result in such an expenditure, we do discuss the effects of this rule
elsewhere in this preamble.

G. Taking of Private Property

    This proposed rule would not cause a taking of private property or
otherwise have taking implications under Executive Order 12630
(``Governmental Actions and Interference with Constitutionally
Protected Property Rights'').

H. Civil Justice Reform

    This proposed rule meets applicable standards in sections 3(a) and
3(b)(2) of Executive Order 12988, (``Civil Justice Reform''), to
minimize litigation, eliminate ambiguity, and reduce burden.

I. Protection of Children

    We have analyzed this proposed rule under Executive Order 13045
(``Protection of Children from Environmental Health Risks and Safety
Risks''). This rule is not an economically significant rule and would
not create an environmental risk to health or risk to safety that might
disproportionately affect children.

J. Indian Tribal Governments

    This proposed rule does not have tribal implications under
Executive Order 13175 (``Consultation and Coordination with Indian
Tribal Governments''), because it would not have a substantial direct
effect on one or more Indian tribes, on the relationship between the
Federal Government and Indian tribes, or on the distribution of power
and responsibilities between the Federal Government and Indian tribes.

K. Energy Effects

    We have analyzed this proposed rule under Executive Order 13211
(``Actions Concerning Regulations That Significantly Affect Energy
Supply, Distribution, or Use''). We have determined that it is not a
``significant energy action'' under that order because it is not a
``significant regulatory action'' under Executive Order 12866 and is
not likely to have a significant adverse effect on the supply,
distribution, or use of energy.

L. Technical Standards

    The National Technology Transfer and Advancement Act, codified as a
note to 15 U.S.C. 272, directs agencies to use voluntary consensus
standards in their regulatory activities unless the agency provides
Congress, through OMB, with an explanation of why using these standards
would be inconsistent with applicable law or otherwise impractical.
Voluntary consensus standards are technical standards (e.g.,
specifications of materials, performance, design, or operation; test
methods; sampling procedures; and related management systems practices)
that are developed or adopted by voluntary consensus standards bodies.
    This proposed rule does not use technical standards. Therefore, we
did not consider the use of voluntary consensus standards.

M. Environment

    We have analyzed this proposed rule under Department of Homeland
Security Management Directive 023-01 and Commandant Instruction
M16475.lD, which guide the Coast Guard in complying with the National
Environmental Policy Act of 1969, 42 U.S.C. 4321-4370f, and have made a
preliminary determination that this action is one of a category of
actions that do not individually or cumulatively have a significant
effect on the human environment. A preliminary environmental analysis
checklist supporting this determination is available in the docket
where indicated under the ``Public Participation and Request for
Comments'' section of this preamble. This proposed rule involves: (1)
Adding a Polar Ship Certificate to the list of certificates required,
if applicable, by SOLAS; and (2) adding the Polar Ship Certificate to
the list of SOLAS certificates that recognized classification societies
may issue on behalf of the Coast Guard. These

proposed actions constitute editorial or procedural changes concerning
vessel documentation requirements (i.e., issuance of Polar Ship
Certificates) and the delegation of authority for issuing such
certificates. Thus, this proposed rule is likely to be categorically
excluded under section 2.B.2 and figure 2-1, paragraphs (34)(a), (b),
and (d) of the Instruction. This proposed rule would promote the Coast
Guard's maritime safety and environmental protection missions. We seek
any comments or information that may lead to the discovery of a
significant environmental impact from this proposed rule.

List of Subjects

46 CFR Part 2

    Marine Safety, Reporting and recordkeeping requirements, Vessels.

46 CFR Part 8

    Administrative practice and procedure, Organization and functions
(Government agencies), Reporting and recordkeeping requirements,
Vessels.

    For the reasons discussed in the preamble, the Coast Guard proposes
to amend 46 CFR parts 2 and 8 as follows:

Title 46--Shipping

PART 2--VESSEL INSPECTIONS

0
1. The authority citation for 46 CFR part 2 continues to read as
follows:

    Authority:  Sec. 622, Pub. L. 111-281; 33 U.S.C. 1903; 43 U.S.C.
1333; 46 U.S.C. 2103, 2110, 3306, 3703; E.O. 12234, 45 FR 58801, 3
CFR, 1980 Comp., p. 277, sec. 1-105; Department of Homeland Security
Delegation No. 0170.1(II)(77), (90), (92)(a), (92)(b).

Sec.  2.01-6  [Amended]

0
2. In Sec.  2.01-6(a)(1), after the words ``passengers in U.S. ports''
and before the words ``holds a valid'', remove the word ``and''; and
after the text ``Passenger Ship Safety Certificate'', add the text ``,
and, if applicable, holds a valid Polar Ship Certificate''.
0
3. Amend Sec.  2.01-25 by adding paragraphs (a)(1)(x) and (a)(2)(x) to
read as follows:

Sec.  2.01-25  International Convention for Safety of Life at Sea,
1974.

    (a) * * *
    (1) * * *
    (x) Polar Ship Certificate.
    (2) * * *
    (x) Polar Ship Certificate.
* * * * *

PART 8--VESSEL INSPECTION ALTERNATIVES

0
4. The authority citation for 46 CFR part 8 continues to read as
follows:

    Authority:  33 U.S.C. 1903, 1904, 3803 and 3821; 46 U.S.C. 3103,
3306, 3316, and 3703; Department of Homeland Security Delegation No.
0170.1 and Aug. 8, 2011 Delegation of Authority, Anti-Fouling
Systems.

0
5. Amend Sec.  8.320 as follows:
0
a. In paragraph (b)(13), remove the word ``and'';
0
b. In paragraph (b)(14), remove the text ``.''; and add, in its place,
the text ``; and''; and
0
c. Add new paragraph (b)(15) to read as follows:

Sec.  8.320  Classification society authorization to issue
international certificates.

* * * * *
    (b) * * *
    (15) Polar Ship Certificate.
* * * * *

    Dated: November 16, 2016.
F.J. Sturm,
Acting Director, Commercial Regulations and Standards, U.S. Coast
Guard.
[FR Doc. 2016-27989 Filed 11-21-16; 8:45 am]
 BILLING CODE 9110-04-P


[Federal Register Volume 83, Number 60 (Wednesday, March 28, 2018)]
[Rules and Regulations]
[Pages 13187-13190]
[FR Doc No: 2018-06127]

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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Part 165

[Docket Number USCG-2018-0086]
RIN 1625-AA00

Safety Zone; Pensacola Bay, Pensacola, FL

AGENCY: Coast Guard, DHS.

ACTION: Temporary final rule.

-----------------------------------------------------------------------

SUMMARY: The Coast Guard is establishing a temporary safety zone for
all navigable waters on Pensacola Bay within 100 yards of each vessel
participating in the Tall Ships Pensacola marine event and parade in
Pensacola, FL and within 100 yards of the Port of Pensacola for the
duration of the marine event and parade. This rule is necessary to
provide for the safety of life and property on these navigable waters
during the Tall Ships Pensacola marine event. This rule will prohibit
persons and vessels from entering the safety zone unless specifically
authorized by the Captain of the Port Sector Mobile (COTP) or a
designated representative.

DATES: This rule is effective from 8 a.m. on April 12, 2018 through 8
p.m. on April 15, 2018.

ADDRESSES: To view documents mentioned in this preamble as being
available in the docket, go to http://

www.regulations.gov, type USCG-2018-0086 in the ``SEARCH'' box and
click ``SEARCH.'' Click on Open Docket Folder on the line associated
with this rule.

FOR FURTHER INFORMATION CONTACT: If you have questions on this rule,
call or email Lieutenant Kyle D. Berry, Sector Mobile, Waterways
Management Division, U.S. Coast Guard; telephone<PHONE_NUMBER>, email
[email protected].

SUPPLEMENTARY INFORMATION:

I. Table of Abbreviations

BNM Broadcast Notice to Mariners
CFR Code of Federal Regulations
COTP Captain of the Port Sector Mobile
DHS Department of Homeland Security
FR Federal Register
NPRM Notice of proposed rulemaking
Sec.  Section
U.S.C. United States Code

II. Background Information and Regulatory History

    The sponsor for the Tall Ships Pensacola marine event submitted an
application for a marine event permit for the event that will take
place from 8 a.m. on April 12, 2018 through 8 p.m. on April 15, 2018.
The Captain of the Port Sector Mobile (COTP) has determined a safety
zone is necessary to protect the public from the potential hazards
associated with the tall ships during the organized parade, public
tours, and sailings of these tall ships. In response, on February 22,
2018 the Coast Guard published a notice of proposed rulemaking (NPRM)
titled Safety Zone; Pensacola Bay, Pensacola, FL (83 FR 7644). There we
stated why we issued the NPRM, and invited comments on our proposed
regulatory action related to this Tall Ships Pensacola marine event.
During the comment period that ended March 9, 2018, we received zero
comments.
    Under 5 U.S.C. 553(d)(3), the Coast Guard finds that good cause
exists for making this rule effective less than 30 days after
publication in the Federal Register. Delaying the effective date of
this rule would be impracticable because immediate action is needed to
respond to the potential safety hazards associated with the Tall Ships
Pensacola Marine Event.

III. Legal Authority and Need for Rule

    The Coast Guard is issuing this rule under authority in 33 U.S.C.
1231. The COTP has determined that potential hazards associated with
the tall ships during the organized parade, public tours, and sailings
of these tall ships on April 12, 2018 through April 15, 2018 will be a
safety concern for any vessels or persons in the vicinity of waters on
Pensacola Bay within 100 yards of each vessel participating in the Tall
Ships Pensacola marine event and parade in Pensacola, FL and within 100
yards of the Port of Pensacola for the duration of the marine event and
parade. This rule is needed to protect the public, mariners, and
vessels from the potential hazards associated with the tall ships
during the organized parade, public tours, and sailings of these tall
ships.

IV. Discussion of the Rule

    As noted above, we received no comments on our NPRM published on
February 22, 2018. There are no substantive changes to the regulatory
text of this rule from the proposed NPRM. There is one technical
amendment in the regulatory text of this rule, which corrects the
paragraph numbering in Sec.  165.T08-0086(c).
    This rule establishes a temporary safety zone on Pensacola Bay
within 100 yards of each vessel participating in the Tall Ships
Pensacola marine event from 8 a.m. on April 12, 2018 through 8 p.m. on
April 15, 2018, covering each vessel from when the vessel arrives at
Pensacola, FL, when moored at the Port of Pensacola, 30[deg]24'07.2''
N, 87[deg]12'44.7'' W, when underway in parade from position
30[deg]24'07.2'' N, 87[deg]12'44.7'' W to 30[deg]19'52.6'' N,
87[deg]18'31.5'' W, and when the vessel departs Pensacola, FL. The
Coast Guard also is establishing a temporary safety zone on Pensacola
Bay within 100 yards of the Port of Pensacola for the duration of the
Tall Ships Pensacola marine event from 8 a.m. on April 12, 2018 through
8 p.m. on April 15, 2018. This rule is needed to provide for the safety
of life and property on these navigable waters during the Tall Ship
Pensacola marine event. This rule restricts transit into, through, and
within the zone unless specifically authorized by the COTP or a
designated representative. No vessel or person is permitted to enter
the zone without obtaining permission from the COTP or a designated
representative. A designated representative may be a Patrol Commander
(PATCOM). The PATCOM may be aboard either a Coast Guard or Coast Guard
Auxiliary vessel. The PATCOM may be contacted on Channel 16 VHF-FM
(156.8 MHz) by the call sign ``PATCOM''. All persons and vessels not
registered with the sponsor as participants or official patrol vessels
are considered spectators. The ``official patrol vessels'' consist of
any Coast Guard, state, or local law enforcement and sponsor provided
vessels assigned or approved by the COTP or a designated representative
to patrol the zone.
    Spectator vessels desiring to transit the zone may do so only with
prior approval of the COTP or a designated representative and when so
directed by that officer must be operated at a minimum safe navigation
speed in a manner which will not endanger any other vessels. No
spectator vessel shall anchor, block, loiter, or impede the through
transit of official patrol vessels in the zone during the effective
dates and times, unless cleared for entry by or through the COTP or a
designated representative. Any spectator vessel may anchor outside the
zone, but may not anchor in, block, or loiter in a navigable channel.
Spectator vessels may be moored to a waterfront facility within the
zone in such a way that they shall not interfere with the progress of
the event. Such mooring must be complete at least 30 minutes prior to
the establishment of the zone and remain moored through the duration of
the event.
    The COTP or a designated representative may forbid and control the
movement of all vessels in the zone. When hailed or signaled by an
official patrol vessel, a vessel shall come to an immediate stop and
comply with the directions given. Failure to do so may result in
expulsion from the zone, citation for failure to comply, or both.
    The COTP or a designated representative may terminate the operation
of any vessel at any time it is deemed necessary for the protection of
life or property. The COTP or a designated representative will
terminate enforcement of the safety zone at the conclusion of the
event.

V. Regulatory Analyses

    We developed this rule after considering numerous statutes and
Executive Orders related to rulemaking. Below we summarize our analyses
based on a number of these statutes and Executive orders, and we
discuss First Amendment rights of protectors.

A. Regulatory Planning and Review

    Executive Orders 12866 and 13563 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. Executive Order 13771 directs agencies to control
regulatory costs through a budgeting process. This rule has not been
designated a ``significant regulatory action,'' under Executive Order
12866. Accordingly, this rule has not been reviewed by the Office of
Management and Budget (OMB), and pursuant to OMB guidance it is exempt

from the requirements of Executive Order 13771.
    This regulatory action determination is based on size, location,
and duration of the proposed rulemaking. This safety zone will take
place on a small area of Pensacola Bay, lasting for only four days from
April 12, 2018 through April 15, 2018. Additionally, the Coast Guard
will issue Broadcast Notices to Mariners via VHF-FM marine channel 16
about the safety zone so that waterway users may plan accordingly for
transits during this restriction, and the rule will allow vessels to
seek permission from the COTP or a designated representative to enter
the zone.

B. Small Entities

    The Regulatory Flexibility Act of 1980, 5 U.S.C. 601-612, as
amended, requires Federal agencies to consider the potential impact of
regulations on small entities during rulemaking. The term ``small
entities'' comprises small businesses, not-for-profit organizations
that are independently owned and operated and are not dominant in their
fields, and governmental jurisdictions with populations of less than
50,000. The Coast Guard certifies under 5 U.S.C. 605(b) that this rule
will not have a significant economic impact on a substantial number of
small entities.
    While some owners or operators of vessels intending to transit the
safety zone may be small entities, for the reasons stated in section
V.A above, this rule will not have a significant economic impact on any
vessel owner or operator.
    Under section 213(a) of the Small Business Regulatory Enforcement
Fairness Act of 1996 (Pub. L. 104-121), we want to assist small
entities in understanding this rule. If the rule would affect your
small business, organization, or governmental jurisdiction and you have
questions concerning its provisions or options for compliance, please
contact the person listed in the FOR FURTHER INFORMATION CONTACT
section.
    Small businesses may send comments on the actions of Federal
employees who enforce, or otherwise determine compliance with, Federal
regulations to the Small Business and Agriculture Regulatory
Enforcement Ombudsman and the Regional Small Business Regulatory
Fairness Boards. The Ombudsman evaluates these actions annually and
rates each agency's responsiveness to small business. If you wish to
comment on actions by employees of the Coast Guard, call 1-888-REG-FAIR
(1-888-734-3247). The Coast Guard will not retaliate against small
entities that question or complain about this rule or any policy or
action of the Coast Guard.

C. Collection of Information

    This rule will not call for a new collection of information under
the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520).

D. Federalism and Indian Tribal Governments

    A rule has implications for federalism under Executive Order 13132,
Federalism, if it has a substantial direct effect on the States, on the
relationship between the national government and the States, or on the
distribution of power and responsibilities among the various levels of
government. We have analyzed this rule under that Order and have
determined that it is consistent with the fundamental federalism
principles and preemption requirements described in Executive Order
13132.
    Also, this rule does not have tribal implications under Executive
Order 13175, Consultation and Coordination with Indian Tribal
Governments, because it does not have a substantial direct effect on
one or more Indian tribes, on the relationship between the Federal
Government and Indian tribes, or on the distribution of power and
responsibilities between the Federal Government and Indian tribes. If
you believe this rule has implications for federalism or Indian tribes,
please contact the person listed in the FOR FURTHER INFORMATION CONTACT
section above.

E. Unfunded Mandates Reform Act

    The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538)
requires Federal agencies to assess the effects of their discretionary
regulatory actions. In particular, the Act addresses actions that may
result in the expenditure by a State, local, or tribal government, in
the aggregate, or by the private sector of $100,000,000 (adjusted for
inflation) or more in any one year. Though this rule will not result in
such expenditure, we do discuss the effects of this rule elsewhere in
this preamble.

F. Environment

    We have analyzed this rule under Department of Homeland Security
Directive 023-01 and Commandant Instruction M16475.1D, which guide the
Coast Guard in complying with the National Environmental Policy Act of
1969 (42 U.S.C. 4321-4370f), and have determined that this action is
one of a category of actions that do not individually or cumulatively
have a significant effect on the human environment. This rule involves
a safety zone on Pensacola Bay within 100 yards of the Port of
Pensacola and within 100 yards of any vessel participating in the Tall
Ships Pensacola marine event and parade from April 12, 2018 through
April 15, 2018. It is categorically excluded from further review under
paragraph L60 of Appendix A, Table 1 of DHS Instruction Manual 023-01-
001-01, Rev. 01. A Record of Environmental Consideration (REC)
supporting this determination is available in the docket where
indicated under ADDRESSES.

G. Protest Activities

    The Coast Guard respects the First Amendment rights of protesters.
Protesters are asked to contact the person listed in the FOR FURTHER
INFORMATION CONTACT section to coordinate protest activities so that
your message can be received without jeopardizing the safety or
security of people, places or vessels.

List of Subjects 33 CFR Part 165

    Harbors, Marine safety, Navigation (water), Reporting and
recordkeeping requirements, Security measures, Waterways.

    For the reasons discussed in the preamble, the Coast Guard amends
33 CFR part 165 as follows:

PART 165--REGULATED NAVIGATION AREAS AND LIMITED ACCESS AREAS

0
1. The authority citation for part 165 continues to read as follows:

    Authority: 33 U.S.C. 1231; 50 U.S.C. 191; 33 CFR 1.05-1; 6.04-1,
6.04-6, and 160.5; Department of Homeland Security Delegation No.
0170.1.

0
2. Add Sec.  165.T08-0086 to read as follows:

Sec.  165.T08-0086  Safety Zone; Pensacola Bay, Pensacola, FL.

    (a) Location. The following area is a safety zone: All navigable
waters of the Pensacola Bay within 100 yards of each vessel
participating in the Tall Ships Pensacola marine event and parade and
within 100 yards of the Port of Pensacola, 30[deg]24'07.2'' N,
87[deg]12'44.7'' W, Pensacola, FL.
    (b) Enforcement period. This section is effective from 8 a.m. on
April 12, 2018 through 8 p.m. on April 15, 2018.
    (c) Regulations. (1) In accordance with the general regulations in
Sec.  165.23, entry into, transiting through, or exiting from this area
is prohibited unless authorized by the Captain of the Port Sector
Mobile (COTP) or a designated representative. A designated
representative may be a Patrol Commander (PATCOM). The PATCOM may be
aboard either a Coast

Guard or Coast Guard Auxiliary vessel. The PATCOM may be contacted on
Channel 16 VHF-FM (156.8 MHz) by the call sign ``PATCOM''.
    (2) Persons or vessels seeking to enter into or transit through the
zone must request permission from the COTP or a designated
representative. They may be contacted on VHF-FM channels 16 or by
telephone at<PHONE_NUMBER>.
    (3) If permission is granted, all persons and vessels must comply
with the instructions of the COTP or designated representative.
    (4) All persons and vessels not registered with the event sponsor
as participants or official patrol vessels are considered spectators.
The ``official patrol vessels'' consist of any Coast Guard, state, or
local law enforcement and sponsor provided vessels assigned or approved
by the COTP to patrol the regulated area.
    (5) Spectator vessels desiring to transit the regulated area may do
so only with prior approval of the COTP or a designated representative
and when so directed by that officer will be operated at a minimum safe
navigation speed in a manner that will not endanger participants in the
zone or any other vessels.
    (6) No spectator vessel shall anchor, block, loiter, or impede the
through transit of participants or official patrol vessels in the
regulated area during the effective dates and times, unless cleared for
entry by or through an official patrol vessel.
    (7) Any spectator vessel may anchor outside the regulated area, but
may not anchor in, block, or loiter in a navigable channel. Spectator
vessels may be moored to a waterfront facility within the regulated
area in such a way that they shall not interfere with the progress of
the event. Such mooring must be complete at least 30 minutes prior to
the establishment of the regulated area and remain moored through the
duration of the event.
    (8) The COTP or a designated representative may forbid and control
the movement of all vessels in the regulated area. When hailed or
signaled by an official patrol vessel, a vessel shall come to an
immediate stop and comply with the directions given. Failure to do so
may result in expulsion from the area, citation for failure to comply,
or both.
    (9) The COTP or a designated representative may terminate the event
or the operation of any vessel at any time it is deemed necessary for
the protection of life or property.
    (10) The Patrol Commander will terminate enforcement of the safety
zone at the conclusion of the event.
    (d) Informational broadcasts. The COTP or a designated
representative will inform the public through Broadcast Notices to
Mariners of the enforcement period for the temporary safety zone as
well as any changes in the planned schedule.

    Dated: March 20, 2018.
M.R. Mclellan,
Captain, U.S. Coast Guard, Captain of the Port Sector Mobile.
[FR Doc. 2018-06127 Filed 3-27-18; 8:45 am]
 BILLING CODE 9110-04-P