Offshore Supply Vessels of at Least 6,000 GT ITC

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.

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: 202-493-2251.

(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 202-366-9329.

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 202-372-1360. 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

Anne.Besser@uscg.mil,

telephone 202-372-1362. If you have questions on viewing or submitting material to the docket, call Cheryl Collins, Program Manager, Docket Operations, telephone 202-366-9826.

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 § 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 § 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 § 125.100, the Coast Guard has consistently understood this phrase to be synonymous with “major conversion,” which is a defined term in § 125.160. A review of past major conversion determinations conducted for OSVs since 1997 confirmed that the Coast Guard reads “major alteration” in § 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 § 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 § 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 § 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 § 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 § 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 § 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 § 125.105 also requires large OSVs to obtain an International Load Line Certificate, and the Coast Guard added a paragraph to existing § 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 § 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 § 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 § 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 § 125.110, we also inserted a reference to new § 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 § 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 § 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 § 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 § 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 § 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 § 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 § 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 § 125.120 already addresses the carriage of NLS for OSVs of less than 6,000 GT ITC, the new § 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 § 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 § 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 § 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 §§ 131.320, 131.530, and 131.535. Further, § 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 § 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 § 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 § 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 § 127.220.

Existing § 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 § 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 § 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 § 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° C (140° 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° C (110° 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 § 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 § 129.110 by redesignating the existing text as paragraph (b), and adding a new paragraph (a). This rule also makes a conforming change to § 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 § 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 § 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 §§ 130.140 and 130.400 with the phrase, “Except as provided in § 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 §§ 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 § 132.100); portable and semiportable fire extinguishers (see new § 132.200); and firefighter's protective clothing and personal safety equipment (see new § 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 § 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 § 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 °C (140 °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 § 15.810(b)(4), which had applied to OSVs of 100 gross tons or more, and redesignates § 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 § 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 § 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 § 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 § 90.05-20 in Subchapter I to conform to § 125.100 by inserting provisions for large OSVs grandfathered under § 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 § 125.100(e)). These vessels are subject to Subchapter I.

This rule makes similar changes to the definition of OSV at § 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 § 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 §§ 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 § 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 § 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 § 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 § 111.05-20 to specify that large OSVs designed to carry flammable or combustible liquid cargoes with closed-cup flashpoints not exceeding 60 °C (140 °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 § 111.105-31(f) and IEC 60092-502 Regulation 4.2.2.7; 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 4.2.2.11 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 4.2.2.8, and we adopted an 8-meter zone to account for this. These modifications appear in new § 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 §§ 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 4.2.2.11 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, § 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 § 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 § 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 § 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 § 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.

4

2013 Proxy Material and 2012 Annual Report

http://ir.hornbeckoffshore.com/phoenix.zhtml?c=132245&p=irol-reportsannual.

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.

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

Subject

Sections

Coast Guard action

Origination of standard

Deviation from standard

Cost impact and justification

Inspections

2.10-25

Modifies definition of OSV as directed by the Act

Not Applicable

Not Applicable

No additional cost. Administrative change to implement statutory mandate change to definition to allow OSVs > 6,000 GT ITC.

Table 4—Changes to 46 CFR Part 15—Manning Requirements

Subject

Sections

Coast Guard action

Origination of standard

Deviation from standard

Cost impact and justification

Watches

15.705

Requirement directed by the Act

Requirements for the minimum number of watches were derived from existing Coast Guard regulations (46 CFR 15.705 and 15.1111)

Extends exception to the number of watches required to large OSVs, provided that the officers and crew are in compliance with the work hours and rest period requirements found in 46 CFR 15.1111

No impact. This provision provides the same flexibilities currently allowed to smaller OSVs under the current regulatory regime to OSVs greater than 6,000 GT ITC.

Mates

15.810

Requirement directed by the Act

Requirements for minimum number of mates were derived from existing Coast Guard regulations (46 CFR 15.810)

Amends existing Coast Guard regulation by requiring OSVs greater than 6,000 GT ITC to have two mates on voyages under 600 miles and three mates on voyages of at least 600 miles. Manning requirements will not change for OSVs less than 6,000 GT ITC

No impact. Similar sized vessels, such as 100% of OSVs between 5,000 and 6,000 GT ITC, are already meeting this requirement in order to provide multipurpose services, services which requires an additional mate.

Engineers

15.825

NOSAC recommendation

Requirements for the minimum number of assistant engineers were derived from existing Coast Guard regulations (46 CFR 15.825)

Amends existing Coast Guard regulation by requiring large OSVs approved for the use of automated systems to carry at least one assistant engineer, as recommended by NOSAC

No additional cost. Similar sized vessels, such as 100% of OSVs between 5,000 and 6,000 GT ITC, are already meeting this requirement in order to provide services more typically performed by tank and cargo vessels.

Table 5—Changes to 46 CFR Part 61—Periodic Tests and Inspections

Subject

Sections

Coast Guard action

Origination of standard

Deviation from standard

Cost impact and justification

Test procedure details

61.40-10

Administrative change of Coast Guard approval to the Marine Safety Center

Requirements in existing CFR originally called for other test techniques to be approved by the Commandant of CG-ENG

Other test techniques must now be approved by the Commanding Officer of the Marine Safety Center

No additional cost as this is administrative.

Table 6—Changes to 46 CFR Part 62—Vital System Automation

Subject

Sections

Coast Guard action

Origination of standard

Deviation from standard

Cost impact and justification

Applicability

62.01-5

Change to clarify applicability to include large OSVs

Requirements for vital system automation were derived from existing Coast Guard regulations

Adds large OSVs to list of vessels that must comply with existing requirements in 46 CFR part 62

No additional cost. Similar sized existing vessels, such as 100% of OSVs between 5,000 to 6,000 GT ITC, voluntarily agreed to be certificated by classification societies and participate in the Alternate Compliance Program (ACP). While there are some gaps between class rules and the provisions in 46 CFR part 62, they are closed through supplemental provisions required of vessels operating under the ACP.

Table 7—Changes to 46 CFR Part 90—General Provisions

Subject

Sections

Coast Guard action

Origination of standard

Deviation from standard

Cost impact and justification

Applicability to OSVs

90.05-20

Defines applicability of Subchapter I for existing OSVs

Not Applicable

Not Applicable

No additional cost. Definition.

Definitions of offshore supply vessels

90.10-40

Defines new and existing OSVs

Not Applicable

Not Applicable

No additional cost. Definition.

Table 8—Changes to 46 CFR part 110—General Provisions

Subject

Sections

Coast Guard action

Origination of standard

Deviation from standard

Cost impact and justification

Incorporation by reference

110.10-1

Incorporates industry standards into Title 46

Requirements for electrical engineering within hazardous locations were derived from existing Coast Guard regulations (46 CFR 110.10-1)

Amends existing Coast Guard regulation by codifying alternative industry accepted standards, which have been approved for similar large vessels

No additional cost. Similar sized existing vessels, such as 100% of OSVs between 3,000 to 6,000 GT ITC, voluntarily agreed to be certificated by classification societies and participate in the ACP, whose rules align with the requirements in 46 CFR 110.10-1. Provides industry with flexibility by incorporating alternative industry standards.

Definitions

110.15-1

Introduces definitions used in 110.25-1

Not Applicable

Not Applicable

No additional cost. Definition.

Plans and information required for new construction

110.25-1

Requirement for plans that identify hazardous location information

Requirements for hazardous locations in new builds were derived from existing Coast Guard regulations (46 CFR 110.25-1)

Clarifies information required in plans for OSVs of at least 6,000 GT ITC. Requires plan to include equipment identification number, equipment use, parameters of systems, equipment locations, installation details, and certificate of testing

Potential cost savings. This information was already required of existing plans, but was often not provided until follow up reviews. This provision will expedite the process by more explicitly delineating the required information up front.

Table 9—Changes to 46 CFR Part 111—Electric Systems General Requirements

Subject

Sections

Coast Guard action

Origination of standard

Deviation from standard

Cost impact and justification

Flammable or Combustible liquids and grounded distribution systems on OSVs

111.05-20

Specifies ground distribution system requirement.

Requirements for ground distribution system were derived from existing international standards and Coast Guard regulations (SOLAS and 46 CFR 111.05-19)

None

No additional cost. Incorporates international and Coast Guard standards expected to be used given industry practice and desire to compete for work in international markets.

Hazardous Locations on OSVs

111.106-1, 111.106-3, 111.106-5, 111.106-7, 111.106-9, 111.106-11, 111.106-13, 111.106-15, and 111.106-17

Requires owners of OSVs with hazardous locations to choose a standard that addresses the wide ranging services that the vessel performs

Requirements for electrical installations inside hazardous locations were derived from existing national and international standards (National Electric Code standards and International Electrotechnical Commission 60092-505)

There are no deviations from standard if the vessel follows the national standard. However, two changes were made to the international standard. The first change appears in 111.106-9, and enlarges Zone 1 to an area of 8-meters. The other modification to the international standard is made in 111.106-13 (b). This modification will not allow enclosed spaces to be reclassified based upon mechanical ventilation.

No additional cost. Provides flexibility by allowing choice of standards expected to be used given current industry practice and desire to compete for work in international markets.

Requirements for cable and wiring between machinery spaces and hazardous locations were derived from existing international and Coast Guard regulations (International Electrotechnical Commission 60092-505 and 46 CFR 153.461 and 154.1205)

None

No additional cost. Incorporates international and Coast Guard standards expected to be used given current industry practice and desire to compete for work in international markets.

Table 10—Changes to 46 CFR part 125—General

Subject

Sections

Coast Guard action

Origination of standard

Deviation from standard

Cost impact and justification

Applicability

125.100

Requirement directed by the Act

Not Applicable

Not Applicable

No additional cost. Administrative to meet statutory mandate.

Tonnage Measurement

125.103

Administrative changes made by the Coast Guard to implement the Act

Not Applicable

Not Applicable

No additional cost. Administrative to meet statutory mandate.

International certificates for OSVs of at least 6,000 GT ITC

125.105

Requires large OSV to obtain international certificates that indicate compliance with SOLAS, MARPOL, and ICLL

Requires OSVs to hold certificates that signify compliance with international standards (SOLAS—Cargo Ship Safety Construction, Cargo Ship Safety Equipment and Safety Management Certificates; MARPOL—International Oil Pollution Prevention and International Air Pollution Prevention; ICLL—International Load Line Certificate

None

No additional cost. Incorporates international standard expected to be used given industry practice and desire to compete for work in international markets. Similar sized existing vessels, such as 100% of OSVs 3,000 to 6,000 GT ITC, voluntarily agreed to comply with the requirements in this provision in order to compete in international markets.

Carriage of flammable or combustible liquid cargoes in bulk

125.110

Requires carriage of oil on large OSVs to meet existing Title 33 requirements

Double hull (oil cargo tank offset) requirements were derived from existing Coast Guard regulations (33 CFR 157.10d)

None

Any changes in the cargo capacity and configuration can be accommodated in the design stage of the new vessel with no or minimal, non-quantifiable cost.

13

Oil fuel tank protection

125.115

Requirement directed by the Act

Requirements for oil fuel tank protection were derived from existing international standards (MARPOL Annex I—Regulation 12A)

Deviates from existing international standard by requiring compliance without regards to whether the OSV will be engaged in coastwise or international trade

No additional cost. Similar sized existing vessels, such as 100% of OSVs 3,000 to 6,000 GT ITC, already comply with the requirements in this provision.

Carriage of noxious liquid substances in bulk by OSVs less than 6,000 GT ITC (500 GRT if GT ITC is not assigned) and least 6,000 GT ITC (500 GRT if GT ITC is not assigned)

125.120 and 125.125

Administrative—sets applicability for carriage of NLS in bulk to demarcation requirements and incorporates existing 46 CFR 98.30 and interpretation of IMO Res A.673 from CG-522 Policy Letter 09-01

Requirements for carriage of noxious liquid substances in bulk were derived from existing international standards and Coast Guard regulations (MARPOL Annex II, IMO Resolution A.673(16), and 33 CFR part 151 and 46 CFR part 163)

Deviates from existing international standards by codifying parts of CG-522 Policy Letter 09-01, Rev. 1, which was published April 5, 2010. These modifications will allow applicable vessels carry NLS in bulk in its integral and fixed independent tanks

No additional cost. Incorporates interpretation of international standard from existing policy letter. This will create flexibility for large OSVs where they might otherwise have been deemed in violation of MARPOL Annex II.

Loadlines

125.140

Requires large OSVs to be assigned an international load line in accordance with the ICLL

Requirements for load lines were derived from existing international standards (International Convention of Load Lines)

None

No additional cost. Incorporates international standard expected to be used given industry practice and desire to compete for work in international markets.

Lifesaving systems

125.150

Requires large OSVs to meet existing lifesaving requirements of Title 46 CFR and SOLAS

Lifesaving requirements for OSVSs of at least 6,000 GT ITC were derived from existing international standards and Coast Guard regulations (SOLAS and 46 CFR 199)

None

No additional cost. Incorporates international standard and requirements for similar vessels expected to be used given industry practice and desire to compete for work in international markets. Similar sized existing vessels, such as 100% of OSVs 3,000 to 6,000 GT ITC, voluntarily agreed to comply with the requirements in this provision in order to compete in international markets.

13

Impact is negligible because the carriage of oil-based mud is also covered by requirements for the carriage of noxious liquid substances (46 CFR 125.120). Because of the various chemical components within the muds, nearly all mud carried by larger OSVs is authorized only if the vessel complies with international pollution prevention standards (IMO Resolution A.673(16)), which already requires minimum distances for cargo from the outer hull.

Table 11—Changes to 46 CFR Part 126—Inspection and Certification

Subject

Sections

Coast Guard

action

Origination of

standard

Deviation

from standard

Cost impact and justification

Carriage of offshore workers

126.170

Increases large OSV carriage capacity of offshore workers

Existing regulation precludes carriage of more than 36 offshore workers. In removing this ban, requirements for the carriage of offshore workers were derived from existing international standards (IMO Code of Safety for Special Purpose Ships (SPS Code))

Modifies existing SPS Code by requiring vessels authorized to carry more than 36 offshore workers to carry the minimum amount of primary lifesaving for cargo vessel equipment as defined in SOLAS

No additional cost. Provides industry flexibility by continuing to allow vessels authorized to carry less than 36 offshore workers to meet standards required of a cargo vessel. Creates opportunity for vessels to carry more than 36 offshore workers, but would require increasing protection using internationally accepted approach to offset growing potential consequence. For vessels authorized to carry more than 36 offshore workers, the Coast Guard would require the vessel design meet a standard that is between the standard required of cargo vessels and that of passenger vessels. This flexibility takes into account the attributes and skill-sets of the passengers, and offers OSVs a less stringent standard as a result.

Table 12—Changes to 46 CFR Part 127—Construction and Arrangements

Subject

Sections

Coast Guard

action

Origination of

standard

Deviation

from standard

Cost impact and justification

Classification Society Standards

127.200

Requires OSVs be classed by an authorized class society

Meeting classification society requirements is consistent with existing international standards (SOLAS Chapter II-1, Regulation 3-1) and existing Coast Guard regulations (46 CFR 8.320)

None

No additional cost. Incorporates industry & international standards expected to be used given industry practice and desire to compete for work in international markets. Similar sized existing vessels, such as 100% of OSVs 3,000 to 6,000 GT ITC, voluntarily agreed to comply with the requirements in this provision in order to compete in international markets.

Structural fire protection

127.225

Requires SOLAS compliance.

Requirements for structural fire protection were derived from existing international standards (SOLAS)

Deviates from SOLAS by restricting large OSVs to only use the non-combustible materials (Method IC) option in SOLAS. This is consistent with existing U.S. regulations for other large vessels (46 CFR subchapters D, H, and I)

No additional cost. Incorporates existing US interpretation of international standard. An existing OSV would already be required to meet this requirement under the existing regulatory regime if it wished to perform these services.

Subdivision and stability

127.230

Requires SOLAS compliance.

Subdivision and stability requirements were derived from existing international standards and Coast Guard regulations (SOLAS and 46 CFR 127.230)

Amends existing Coast Guard regulation (46 CFR 127.230) by adding in clause (b). This clause exempts OSVs of 80 meters or more in length from being required to comply existing CFR stability requirement, since these large OSVs have to meet SOLAS stability requirements as described in 46 CFR 125.105

No additional cost. This modification exempts large OSVs from being required to comply with this provision.

Construction and arrangements for OSVs carrying more than 36 offshore workers

127.600, 127.620, 127.630, 127.640, and 127.650

Requirements developed by the Coast Guard to provide safety to persons in addition to the crew as directed by the Act

Damage stability requirements were derived from existing international standards (SOLAS Chapter II-1, parts B-1, B-2, and B-4, and Regulation II-1/35-1)

None

No additional cost. Incorporates existing international standards for given vessel characteristics and operations. Similar sized existing vessels, such as 100% of OSVs 3,000 to 6,000 GT ITC, already comply with the requirements in this provision.

Marine engineering requirements were derived from international standards (SOLAS Regulation II-1/29.6.1.1)

None

No additional cost. Incorporates existing international standards for given vessel characteristics and operations. Similar sized existing vessels, such as 100% of OSVs 3,000 to 6,000 GT ITC, voluntarily agreed to comply with the requirements in this provision in order to compete in international markets.

Electrical installation requirements were derived from international standards (SOLAS Regulation II-1/42)

None

No additional cost. Incorporates existing international standards for given vessel characteristics and operations. Similar sized existing vessels, such as 100% of OSVs 3,000 to 6,000 GT ITC, voluntarily agreed to comply with the requirements in this provision in order to compete in international markets.

Fire-protection requirements were derived from international standards (SOLAS Chapter II-2)

None

No additional cost. Incorporates existing international standards for given vessel characteristics and operations. Similar sized existing vessels, such as 100% of OSVs 3,000 to 6,000 GT ITC, voluntarily agreed to comply with the requirements in this provision in order to compete in international markets.

Table 13—Changes to 46 CFR Part 128—Marine Engineering: Equipment and Systems

Subject

Sections

Coast Guard action

Origination of standard

Deviation from standard

Cost impact and justification

Equipment and systems

128.110

Incorporates requirements of existing 46 CFR Subchapter F

Marine engineering requirements for equipment and systems for large OSVs were derived from existing Coast Guard regulations (46 CFR Subchapter F)

Removes OSVs of at least 6,000 GT ITC from being exempt from having to comply with the requirements in 46 Subchapter F in their entirety

No additional cost. Similar sized existing vessels, such as 100% of OSVs between 3,000 and 6,000 GT ITC, voluntarily agreed to be certificated by classification societies whose rules align with the revised requirements in Subchapter F.

Fuel

128.310

Incorporates requirements of existing 46 CFR Subchapter F and SOLAS

Fuel requirements were derived from existing Coast Guard regulations (46 CFR 128.310)

Modifies existing provision by requiring large OSVs to use fuel having a flashpoint of at least 60° C (140° F), instead of being required to meet the existing standard, which will still be used for OSVs under 6,000 GT ITC, of 43° C (110° F)

No additional cost. Similar sized existing vessels, such as 100% of OSVs between 3,000 and 6,000 GT ITC, voluntarily agreed to comply with SOLAS and the higher flashpoint requirement in order to obtain international certifications.

Table 14—Changes to 46 CFR Part 129—Electrical Installations

Subject

Sections

Coast Guard action

Origination of standard

Deviation from standard

Cost impact and justification

Applicability

129.110

Implements existing Subchapter J of this chapter

Requirements for electrical installations were derived from existing Coast Guard regulations (46 CFR Subchapter J, Chapter I)

Removes OSVs of at least 6,000 GT ITC from being exempt from having to comply with the requirements in 46 Subchapter J in their entirety

No additional cost. Similar sized existing vessels, such as 100% of OSVs between 3,000 and 6,000 GT ITC, voluntarily agreed to be certificated by classification societies whose rules align with the requirements in the revised Subchapter J.

Power Sources for OSVs

129.315

Implements existing Subchapter J of this chapter

Requirements for power sources were derived from existing Coast Guard regulations (46 CFR Subchapter J, Chapter I)

Modifies existing regulation to ensure that OSVs less than 6,000 GT ITC will still be exempt from being required to comply with some parts of 46 Subchapter J

No additional cost. 100% of OSVs between 3,000 and 6,000 GT ITC voluntarily agreed to be certificated by classification societies whose rules align with the requirements in revised 46 CFR 129.315.

Overfill Protection

129.570

Implements existing Subchapter D of this chapter

Requirements for alarms were derived from existing Coast Guard regulations (46 CFR 33.25-1)

Compliance with existing standard will now be required of large OSVs, in addition to tank vessels

No additional cost. Incorporates industry & international standards expected to be used given industry practice and desire to compete for work in international markets. Similar sized existing vessels, such as 100% of OSVs between 3,000 and 6,000 GT ITC, voluntarily agreed to comply with SOLAS and MARPOL. These international standards align with the requirements in this provision.

Table 15—Changes to 46 CFR Part 130—Vessel Control, and Miscellaneous Equipment and Systems

Subject

Sections

Coast Guard action

Origination of standard

Deviation from standard

Cost impact and justification

Steering and automated systems

130.140 and 130.400

Points to existing 46 CFR requirements

Steering and automated systems requirements were derived from existing Coast Guard regulations (46 CFR 130.140)

Modifies existing regulation to ensure that only OSVs under 6,000 GT ITC must comply with the requirements in this provision. OSVs of at least 6,000 GT ITC are directed to 46 CFR 128.110

No additional cost. Administrative clarification of applicability of existing regulations.

Table 16—Changes to 46 CFR Part 131—Operations

Subject

Sections

Coast Guard

action

Origination of

standard

Deviation from

standard

Cost impact and

justification

Maneuvering Characteristics

131.990

Existing SOLAS and 46 CFR requirements

Maneuvering capability requirements were derived from existing Coast Guard regulations (46 CFR Subchapter I)

Expands applicability of existing regulations to include large OSVs

No additional cost. Incorporates standard expected to be used given current industry practice and desire to compete for work in international markets. Similar sized existing vessels, such as 100% of OSVs 3,000 to 6,000 GT ITC, already comply with the requirements in this provision.

Table 17—Changes to 46 CFR Part 132—Fire-Protection Equipment

Subject

Sections

Coast Guard

action

Origination of

standard

Deviation from

standard

Cost impact and

justification

Fire pump, extinguishers, and emergency outfits

132.100, 132.200, and 132.365

Implements existing 46 CFR requirements

Requirements for fire pumps, extinguishers, and emergency outfits were derived from existing international standards (SOLAS Chapter II-2) and Coast Guard regulations (46 CFR 125.105)

Adds new provision to clarify applicable U.S. requirements for fire pumps, fire hoses, and nozzles, portable and semiportable fire extinguishers, and firefighter's protective clothing and personal safety equipment

No additional cost. Incorporates existing U.S. interpretation of international standard. Similar sized existing vessels, such as 100% of OSVs 3,000 to 6,000 GT ITC, voluntarily comply with the requirements in this provision in order to compete in international markets.

Added requirements for carriage of low flashpoint flammable or combustible cargo

132.390

Requires 46 CFR 76, and 46 CFR 161.002

Requirements for carriage of low flashpoint flammable or combustible cargo and fire-protection equipment were derived from existing Coast Guard regulations (46 CFR 76 and 161.002)

Deviates from existing CFR by requiring that large OSVs also comply with cargo area and cargo-pump room fire-extinguishing systems requirements that are currently only required of tank vessels

No additional cost. Incorporates standard expected to be used given industry practice and desire to compete for work in international markets. An existing OSV would already be required to meet this requirement under the existing regulatory regime if it wished to perform these services.

Table 18—Changes to 46 CFR Part 134—Added Provisions for Liftboats

Subject

Sections

Coast Guard

action

Origination of

standard

Deviation from

standard

Cost impact and

justification

Applicability

134.100

Liftboats are regulated under Subchapter L; this requires large liftboats to obtain Coast Guard approval

Requirements for liftboats were derived from existing Coast Guard regulations (46 CFR 134.100)

Modifies existing applicability of provision to allow the construction of large liftboats on a case-by-case basis, which must be approved by the Commandant (CG-5PS)

No additional cost, as the construction of liftboats of at least 6,000 GT ITC are not affected by this rulemaking.

Table 19—Changes to 46 CFR Part 174—Special Rules Pertaining to Specific Vessel Types

Subject

Sections

Coast Guard

action

Origination of

standard

Deviation from

standard

Cost impact and

justification

Applicability

174.180

Administrative change conforms to Part 127

Requirements for stability for OSVs under 6,000 GT ITC were derived from existing Coast Guard regulations (46 CFR part 174)

Modifies existing regulations to exempt large OSVs from being required to meet the stability requirements in 46 CFR Subpart G. Instead, large OSVs will be subject to the SOLAS stability requirements discussed earlier in this RA

No additional cost. Administrative change clarifies that large OSVs are excluded from certain requirements.

Benefits of the Interim Rule

In the Act, Congress removed the tonnage limit on vessels certificated under subchapter L as OSVs, and directed the Coast Guard to implement regulations for the safe carriage of oil, hazardous substances, and individuals in addition to the crew on OSVs of at least 6,000 GT ITC. However, the provisions in the Act allow ship owners and operators to construct vessels that can operate as OSVs, by meeting subchapter I and additional requirements from design basis agreements, during the period between the effective date of the Act and the effective date of this rulemaking provided they obtain Coast Guard approval. This process creates regulatory inefficiencies as there are no large OSV subchapter L-specific standards and regulatory flexibilities for industry to reference, which could result in construction and design delays. First, industry must submit a proposed design to begin the process, and each time a change to the vessel's design is made, the process must start over as the company must resubmit a new design letter. After this step has been completed, industry must then wait for the design basis to be approved before beginning construction of the vessel. According to a Coast Guard subject matter expert, this design basis process can take, at a minimum, 30 days to complete, with additional time taken for the company to respond to the draft design basis agreements. However, it is likely that, based on the complexity of the design of OSVs of at least 6,000 GT ITC, this process would take the Coast Guard much longer to complete.

Accordingly, the Coast Guard developed this interim rule to rectify this lack of transparent standards to ensure consistent design, construction, and operation of OSVs, as well as to comply with the Act.

On top of rectifying this lack of transparent standards, it is expected that this rule will reduce costs overall. Because vessels approved under the 617(f)(3) interim process are approved under a case-by-case basis, a substantial amount of resources are used throughout the approval process.

Issuance of this interim rule would streamline the construction process by removing this case-by-case process and replacing it with transparent requirements that all newly constructed vessels wishing to be certificated as large OSVs must adhere to. This is expected to significantly reduce costs.

Therefore, this rule will replace government's existing ad hoc processes and requirements with a more streamlined and predictable system, thereby reducing resources and, consequently, costs.

Table 20—Beneficial Impacts of Interim Rule

Subject

Sections

Beneficial impacts

46 CFR part 2—Vessel Inspections

Inspections

2.10-25

Fulfills statutory mandate by modifying the definition of OSV to remove size ceiling.

46 CFR part 15—Manning Requirements

Watches

15.705

Provides flexibility by implementing exception that allows for 2 watches on short voyages. According to an OCMI from the Eighth District, a navigation watch has an average wage of $44.37 per hour. This exception could result in cost savings for owners and operators of large OSVs engaged on a voyage of less than 600 miles, as these owners and operators may employ one fewer navigational watch on voyages of this length.

Mates

15.810

Provides flexibility by lowering manning requirements for OSVs less than 6,000 GT ITC and OSVs of at least 6,000 GT ITC. For OSVs less than 6,000 GT ITC, the number of required credentialed mates on voyages less than 600 miles decreases from two to one, and for voyages of at least 600 miles from three to two. Further, for OSVs of at least 6,000 GT ITC, the number of required credentialed mates on voyages less than 600 miles decreases from three to two. The number of required mates on voyages of at least 600 miles remains the same. According to an OCMI from the Eighth District, a navigation watch has an average wage of $44.37 per hour. This exception will therefore result in cost savings for owners and operators of OSVs of all sizes, since owners and operators may employ fewer navigation watches depending on the size of the OSV and on the voyage length.

Engineers

15.825

Ensures that sufficient engineering personnel are onboard to be able to respond to shipboard emergencies and equipment failure. Provision retains existing OCMI authorities.

46 CFR part 61—-Periodic Tests and Inspections

Test procedure details

61.40-10

Administrative change that will provide the Coast Guard Headquarters with more flexibility regarding the use of its resources.

46 CFR part 62—-Vital System Automation

Applicability

62.01-5

Change that will provide transparency to industry and government officials for use in the approval process.

46 CFR part 90—General Provisions

Applicability to OSVs

90.05-20

Contains criteria for grandfathering OSVs and sets the applicability of Subchapter I for OSVs that pre-dated the creation of Subchapter L.

Definitions of offshore supply vessels

90.10-40

Clarifies terms relating to tonnage measurement.

Changes to 46 CFR part 110—General Provisions

Incorporation by reference

110.10-1

Provides for use of industry standard as alternative to use of approved equipment.

Definitions

110.15-1

Clarifies definitions.

Plans and information required for new construction

110.25-1

Requires plans consistent with other similarly sized vessels, while also adding option of using international standards. Plans must include information on the equipment, intrinsically safe systems, installation details, and/or approved control drawings, and testing certificates or listing by an independent laboratory or an IECEx Certificate of Conformity to ensure existing levels of safety in hazardous locations.

46 CFR part 111—Electric Systems General Requirements

Flammable or Combustible liquids and grounded distribution systems on OSVs

111.05-20

Clarifies requirements for large OSVs, which will provide more transparency to industry and government officials for use in the approval process. Permits the use of grounded distribution systems on large OSVs designed to carry flammable or combustible liquids under certain conditions to maintain safety. Aligns standards with international requirements, thereby creating a universal standard which will enable vessels to more easily compete for work on international market.

Hazardous Locations on OSVs

111.106-1, 111.106-3, 111.106-5, 111.106-7, 111.106-9, 111.106-11, 111.106-13, 111.106-15, and 111.106-17

Clarifies requirements for large OSVs, which will provide more transparency to industry and government officials for use in the approval process. Provides flexibility as to the choice of a standard that addresses the wide ranging services that the vessel performs and enhances the safety of personnel and vessels. List of standards is expanded from existing Subchapter L, thereby increasing options for industry.

46 CFR part 125—General

Applicability

125.100

Fulfills statutory mandate by implementing the Act.

Tonnage Measurement

125.103

Fulfills statutory mandate by implementing the Act.

International certificates for OSVs of at least 6,000 GT ITC

125.105

Requires large OSVs to obtain all applicable international convention certificates in areas such as safety and pollution prevention. Use of international certificate enables industry to simultaneously comply with U.S. requirements and obtain certificates needed to compete for work on international market.

Carriage of flammable or combustible liquid cargoes in bulk

125.110

Clarifies requirements for large OSVs, which will provide more transparency to industry and government officials for use in the approval process. Provides enhanced level of environmental protection to the large volumes of oil and oil-based cargoes large OSVs are capable of carrying, applying requirements for similar vessels and systems.

Oil fuel tank protection

125.115

Clarifies requirements for large OSVs, which will provide more transparency to industry and government officials for use in the approval process.

Carriage of noxious liquid substances in bulk by OSVs less than 6,000 GT ITC (500 GRT if GT ITC is not assigned) and least 6,000 GT ITC (500 GRT if GT ITC is not assigned)

125.120 and 125.125

Clarifies requirements for large OSVs, which will provide more transparency to industry and government officials for use in the approval process. Requirements mirror those for similar vessels and systems.

Loadlines

125.140

Aligns standards with international requirements, thereby creating a universal standard which will enable vessels to more easily compete for work on international market.

Lifesaving systems

125.150

Aligns standards with international requirements, thereby creating a universal standard which will enable vessels to more easily compete for work on international market and ensures that vessels with a larger number of personnel on board have sufficient safety and survivability.

46 CFR part 126—Inspection and Certification

Carriage of offshore workers

126.170

Allows large OSVs to carry more personnel and thereby increase revenue while ensuring protection scales with number of personnel.

46 CFR part 127—Construction and Arrangements

Classification Society Standards

127.200

Incorporates industry and international standards expected to be used given industry practice and desire to compete for work on international markets.

Structural fire protection

127.225

Requires traditional US standard while maintaining alignment with international requirements, thereby using a universal standard which will enable vessels to more easily compete for work on international market, while ensuring that vessels with a larger number of personnel on board have sufficient safety and survivability.

Subdivision and stability

127.230

Uses international standard for stability, thus enabling vessels to compete for work on international market and ensuring that vessels with larger numbers of personnel on board have sufficient safety and survivability.

Construction and arrangements for OSVs carrying more than 36 offshore workers

127.600, 127.620, 127.630, 127.640, and 127.650

Allows large OSVs to carry more personnel and thereby increase revenue while ensuring protection scales with number of personnel.

46 CFR part 128—Marine Engineering: Equipment and Systems

Equipment and systems

128.110

Clarifies requirements for large OSVs, which will provide more transparency to industry and government officials for use in the approval process. Provides enhanced level of safety and environmental protection to the larger and more complex systems large OSVs are expected to utilize, applying requirements for similar vessels and systems.

Fuel

128.310

Clarifies requirements for large OSVs, which will provide more transparency to industry and government officials for use in the approval process.

46 CFR part 129—Electrical Installations

Applicability

129.110

Clarifies that existing rules for OSVs still apply.

Power Sources for OSVs

129.315

Clarifies that existing rules for OSVs still apply.

Overfill Protection

129.570

Clarifies that existing rules for OSVs still apply.

46 CFR part 130—Vessel Control, and Miscellaneous Equipment and Systems

Steering and automated systems

130.140 and 130.400

Clarifies that existing rules for OSVs still apply.

46 CFR part 131—Operations

Maneuvering Characteristics

131.990

Requires maneuvering characteristics in accordance with similar size vessels to enhance safety. Requirements match international requirements, thus enabling vessels to compete for work on international market.

46 CFR part 132—Fire-Protection Equipment

Fire pump, extinguishers, and emergency outfits

132.100, 132.200, and 132.365

Clarifies that existing rules for OSVs still apply.

Added requirements for carriage of low flashpoint flammable or combustible cargo

132.390

Clarifies requirements for large OSVs, which will provide more transparency to industry and government officials for use in the approval process. The fire-detection requirements are intended to be consistent with other fire-detection installations on U.S. inspected vessels to enhance safety. Aligns standards with international requirements, thereby creating a universal standard which will enable vessels to more easily compete for work on international market,

46 CFR part 134—Added Provisions for Liftboats

Applicability

134.100

Clarifies that liftboats are not impacted by these regulatory changes.

46 CFR part 174—Special Rules Pertaining to Specific Vessel Types

Applicability

174.180

Excludes large OSVs from certain existing domestic stability criteria to conform to this rule's use of SOLAS stability criteria that enhance the safety of personnel and vessels within the mandates of the Act as directed by Congress. Reduces regulatory burden by letting vessels use international requirements and thus compete for work on international market without having to comply with multiple sets of requirements.

Alternatives

When creating this interim rule, the Coast Guard considered several alternatives. As discussed elsewhere, the preferred alternative closely follows the actual and mandatory language of the Act and does not incorporate substantive discretionary elements. Further, the preferred alternative minimizes cost while maximizing cost savings that would accrue to industry and government as a result of implementation of an interim rule.

The alternatives considered are as follows.

Alternative 1: Preferred Alternative

The analysis for this alternative is discussed in detail previously in this rule.

Alternative 2: No Action Alternative

In this alternative, the Coast Guard would not issue an interim rule, but instead continue to use the interim process outlined in 617(f)(3) of the Act.

Instead of incorporating by reference industry and international standards, this alternative would continue to rely on a case-by-case process to approve the construction of new vessels over 6,000

GT ITC. This would continue to result in regulatory inefficiencies in the approval process and long delays in the construction and design of new vessels. Finally, by making the requirements of large OSVs explicit and transparent, regulatory uncertainty and confusion are potentially reduced.

Therefore, because the benefits of this alternative were less than that of the preferred alternative, the Coast Guard rejected this alternative.

Alternative 3: Issuance of Proposed Alternative as an NPRM

In this alternative, the Coast Guard would require all of the provisions in the preferred alternative, but would propose the alternative as an NPRM instead of as an interim rule.

Because the provisions in the preferred alternative are derived either directly from existing regulatory and technical standards from Titles 33 and 46 of the CFR or developed and rooted from current domestic and international standards that industry already voluntarily complies with, the Coast Guard rejected this provision, as it would only delay potential cost savings that could accrue from immediate implementation.

Alternative 4: Adoption of International Standards Only

In this alternative, the Coast Guard would require that vessels meet international standards only. Coast Guard considered and adopted international standards for many requirements. However, for a limited number of areas, Coast Guard found that international standards needed to be supplemented to provide consistency with already in place domestic standards and to ensure safe operations and design.

The Coast Guard rejected the alternative of adopting only international standards as, in some limited cases, the international standards are not consistent with existing domestic standards or need further clarification where details are left to the satisfaction of the administration. In addition, for several requirements, Coast Guard offers industry the flexibility of a choice of standards. This flexibility would be lost if Coast Guard adopted only international standards.

B. Small Entities

Under the Regulatory Flexibility Act (5 U.S.C. 601-612), we have considered whether this interim 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 governmen

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