
[Federal Register Volume 82, Number 182 (Thursday, September 21, 2017)]
[Rules and Regulations]
[Pages 44108-44118]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-20155]


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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

46 CFR Parts 2 and 8

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


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

AGENCY: Coast Guard, DHS.

ACTION: Final rule.

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SUMMARY: This final rule adds the Polar Ship Certificate to a list of 
certificates that certain U.S. and foreign-flag ships will need to 
carry on board if they engage in international voyages in polar waters. 
This rule also enables the Coast Guard to authorize recognized 
classification societies to issue the Polar Ship Certificate on the 
Coast Guard's behalf. We are taking this action because the 
International Convention for Safety of Life at Sea (SOLAS) has been 
amended to require certain ships operating in Arctic or Antarctic 
waters to have a Polar Ship Certificate. This rule will help ensure 
that U.S.-flagged ships that need this certificate--commercial cargo 
ships greater than 500 gross tonnage and passenger ships carrying more 
than 12 passengers, that operate in polar waters as defined by SOLAS 
chapter XIV while engaged in international voyages--will be able to 
obtain it in a timely manner.

DATES: This final rule is effective October 23, 2017.

ADDRESSES: To view comments and material submitted in response to our 
proposed rule, as well as documents mentioned in this final rule 
preamble as being available in the docket, go to http://www.regulations.gov, type USCG-2016-0880 in the ``SEARCH'' box and 
click ``SEARCH.'' Then click on Open Docket Folder on the line 
associated with this rule.

FOR FURTHER INFORMATION CONTACT: For information about this document 
call or email Lieutenant Chris Rabalais, Systems Engineering Division 
(CG-ENG-3), Coast Guard; telephone 202-372-1485, email 
Christopher.P.Rabalais@uscg.mil.

SUPPLEMENTARY INFORMATION:

Table of Contents for Preamble

I. Abbreviations
II. Regulatory History
III. Basis, Purpose, and Background
IV. Discussion of Comments and Changes
V. Regulatory Analyses

[[Page 44109]]

    A. Regulatory Planning and Review
    B. Small Entities
    C. Assistance for Small Entities
    D. Collection of Information
    E. Federalism
    F. Unfunded Mandates Reform Act
    G. Taking of Private Property
    H. Civil Justice Reform
    I. Protection of Children
    J. Indian Tribal Governments
    K. Energy Effects
    L. Technical Standards
    M. Environment

I. Abbreviations

BLS Bureau of Labor Statistics
CFR Code of Federal Regulations
DHS Department of Homeland Security
E.O. Executive order
FR Federal Register
GT ITC Gross Tonnage International Tonnage Convention
IMO International Maritime Organization
MARPOL International Convention for the Prevention of Pollution from 
Ships, 1974
MEPC Marine Environment Protection Committee
MOA Memorandum of Agreement
MSC Maritime Safety Committee
NAICS North American Industry Classification System
OCMI Officer in Charge, Marine Inspection
OMB Office of Management and Budget
Polar Code International Code for Ships Operating in Polar Waters
RA Regulatory Assessment
SBA Small Business Administration
SOLAS International Convention for the Safety of Life at Sea
Sec.  Section
U.S.C. United States Code

II. Regulatory History

    Coast Guard regulations for inspecting and certificating vessels 
are located in subpart 2.01 of title 46 of the Code of Federal 
Regulations (46 CFR subpart 2.01). Section 2.01-6 in that subpart 
contains provisions for issuing certificates of compliance to foreign-
flagged vessels. Section 2.01-25 identifies certificates required by 
the International Convention for Safety of Life at Sea (SOLAS) on 
certain vessels engaged in international voyages. This section also 
lists SOLAS certificates the Coast Guard issues to vessels that meet 
applicable SOLAS requirements.
    Part 8 of 46 CFR contains Coast Guard regulations for vessel 
inspection alternatives. Specifically, 46 CFR 8.320 identifies 
international certificates that the Coast Guard may authorize 
recognized classification societies to issue on the Coast Guard's 
behalf.
    On November 22, 2016, we published a notice of proposed rulemaking 
(NPRM) in the Federal Register (81 FR 83786) entitled, ``Adding the 
Polar Ship Certificate to the List of SOLAS Certificates and 
Certificates Issued by Recognized Classification Societies.'' That NPRM 
proposed to amend 46 CFR 2.01-6, 2.01-25, and 8.320. We received two 
written submissions in response to the NPRM.

III. Basis, Purpose, and Background

    In 2014 and 2015, the International Maritime Organization (IMO) 
adopted the International Code for Ships Operating in Polar Waters 
(Polar Code) and added its requirements to two existing IMO 
Conventions--SOLAS, and the International Convention for the Prevention 
of Pollution from Ships (MARPOL)--in consideration of hazards and 
conditions unique to polar waters, and an expected increase in traffic 
in Arctic and Antarctic waters. These additional hazards include 
navigation in ice and low temperatures, high-latitude communications 
and navigation, remoteness from response resources, and limited 
hydrographic charting. Copies of the IMO Maritime Safety Committee and 
Marine Environment Protection Committee resolutions discussed in this 
paragraph are available in the docket.
    The Polar Code took effect on January 1, 2017, and applies to all 
vessels constructed on or after that date. Beginning on January 1, 
2018, the Polar Code will also start applying to existing vessels, 
based upon the date their SOLAS Certificates were issued.
    One of the requirements for ships subject to the Polar Code is to 
carry a Polar Ship Certificate pursuant to SOLAS. The Polar Ship 
Certificate attests that the vessel has met applicable requirements of 
SOLAS. As a signatory to this convention, under Article I of SOLAS, the 
United States has an obligation to ensure compliance with SOLAS 
requirements.
    This rule creates a certificate that newly constructed U.S.-flagged 
vessels, certified in accordance with SOLAS chapter I, will need in 
order to travel internationally within polar waters, beginning January 
1, 2017. Existing vessels will need the same certificate by their first 
intermediate or renewal survey after January 1, 2018. U.S.-flagged 
vessels that do not carry a Polar Ship Certificate risk detention, 
denial of entry, or expulsion from the polar waters of other States.
    This rulemaking is necessary to allow the Coast Guard to create the 
new Polar Ship Certificate and add it to the list of certificates 
required by SOLAS in 46 CFR part 2. Also, this rule allows the Coast 
Guard to authorize recognized classification societies to issue the 
Polar Ship Certificate on the Coast Guard's behalf under 46 CFR 8.320.
    Foreign-flagged vessels, certified in accordance with SOLAS chapter 
I and operating in polar waters, are also required to carry the Polar 
Ship Certificate. However, their certificates will be issued by the 
vessel's flag state, or a person or an organization authorized by that 
flag state to issue the certificate. The Coast Guard will examine 
foreign-flagged vessels during Port State Control boardings to ensure 
that they are properly certificated.
    The Coast Guard is authorized to regulate this subject matter under 
33 U.S.C. 1231; 46 U.S.C. 2103, 3306, 3316, and 3703; Department of 
Homeland Security Delegation No. 0170.1, and Executive Order 12234, 
``Enforcement of the Convention for the Safety of Life at Sea'' (45 FR 
58801, Sept. 5, 1980).

IV. Discussion of Comments and Changes

    We received two written submissions commenting on the proposed rule 
published on November 22, 2016 (81 FR 83786). The comments raised 
concerns about four specific items, which we address in this section of 
the preamble.

Applicability of the SOLAS Polar Code Provisions to U.S.-Flagged 
Vessels on Domestic Voyages

    One of the comments noted concerns about wording in the proposed 
rule that limits requirements to vessels engaged in international 
voyages. On this point, the comment also cited a December 2016 Coast 
Guard Polar Code policy letter (CG-CVC Policy Letter Letter 16-06, 
available in the docket), which states that U.S.-flag vessels operating 
on domestic voyages to ports or places in the U.S. Arctic do not need 
to meet the provisions of SOLAS chapter XIV,\1\ but must instead comply 
with applicable domestic requirements. The commenter concluded that 
this Coast Guard interpretation, reflected in the proposed rule, does 
not meet the intent of the IMO in implementation of the Polar Code.
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    \1\ SOLAS chapter XIV implements Part I-A, safety provisions, of 
the Polar Code.
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    We decline to expand the scope of the proposed rule. The proposed 
rule is consistent with our view that the SOLAS convention's authority 
is generally limited to vessels traveling internationally. Based on the 
intent of the SOLAS convention to ensure safe international shipping, 
and SOLAS certification as part of voluntary U.S. compliance programs, 
the United States will not require U.S.-flagged vessels operating on 
domestic routes through Arctic waters to obtain a Polar Ship 
Certificate.

[[Page 44110]]

Applicability of the SOLAS Polar Code Provisions in Antarctica

    A commenter raised concerns about the lack of clarity regarding the 
applicability of the Polar Code in Antarctica, given that these waters 
are not under the jurisdiction of the United States or any other 
nation. The Polar Code applies to ships engaged in international 
voyages that are also operating in polar waters. Polar waters include 
both the Arctic and Antarctic waters. Therefore, a U.S.-flagged vessel 
that is certified in accordance with SOLAS chapter I and is on an 
international voyage must have a Polar Ship Certificate if it enters 
Antarctic waters.

Time Estimates for Issuance of a Polar Ship Certificate

    The same commenter also questioned our burden hour estimate for the 
time required by classification societies to issue the Polar Ship 
Certificate. The commenter said that the estimate did not include time 
required for technical approvals or verification of compliance with 
provisions of the Polar Code.
    Cost estimates for verifications of compliance with the Polar Code 
were not included in the regulatory analysis because these hours are 
outside the scope of this rulemaking. This rulemaking addresses the 
issuance of a Polar Ship Certificate, not compliance with substantive 
safety and environmental provisions or surveys to evaluate compliance 
with those provisions.
    In our NPRM we used an estimate of 40 hours, which we obtained from 
a classification society and which includes administrative review, 
stamping the documents, and data input. The commenter, who also 
represents a classification society, gives a minimum time of 8 to 12 
hours for these tasks. We have retained the more conservative 40-hour 
estimate.
    The other hours the commenter discusses, 120 to 230 hours to 
complete approval work for new construction, risk assessments, and 
surveys, represent compliance aspects of the safety and environmental 
provisions of the Polar Code. Again, these compliance aspects are 
beyond the scope of this rulemaking.

Entry into Force of the SOLAS Polar Code Requirement for Certification

    One commenter stated that the language we used in the NPRM implied 
that all U.S.-flagged vessels subject to the Polar Code will be 
required to carry a Polar Ship Certificate by January 1, 2017.
    The January 1, 2017 date applies to vessels built on or after that 
date. Vessels built before that date need not comply until after 
January 1, 2018. Implementation for existing vessels is based on the 
first renewal or intermediate survey conducted after January 1, 2018. 
(See SOLAS chapter XIV, Reg. 2.2.) For the purposes of the Polar Code, 
the Cargo Ship Safety Construction or Passenger Ship Safety Certificate 
is typically the survey used to determine the implementation date for 
vessels built before January 1, 2017.
    We have made no changes from the proposed regulatory text. The 
regulatory text in this final rule is the same as we proposed in the 
NPRM.

V. Regulatory Analyses

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

A. Regulatory Planning and Review

    Executive Orders 12866 (Regulatory Planning and Review) and 13563 
(Improving Regulation and Regulatory Review) direct agencies to assess 
the costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). Executive 
Order 13563 emphasizes the importance of quantifying costs and 
benefits, reducing costs, harmonizing rules, and promoting flexibility. 
Executive Order 13771 (Reducing Regulation and Controlling Regulatory 
Costs) directs agencies to reduce regulation and control regulatory 
costs and provides that ``for every one new regulation issued, at least 
two prior regulations be identified for elimination, and that the cost 
of planned regulations be prudently managed and controlled through a 
budgeting process.''
    The Office of Management and Budget (OMB) has not designated this 
final rule a significant regulatory action under section 3(f) of 
Executive Order 12866. Accordingly, OMB has not reviewed it. Because 
this rule is not a significant regulatory action, this rule is exempt 
from the requirements of Executive Order 13771. See the OMB Memorandum 
titled Guidance Implementing Executive Order 13771, Titled ``Reducing 
Regulation and Controlling Regulatory Costs'' (April 5, 2017).
    Our regulatory analysis (RA) follows.
    We only received one comment on our estimates in the regulatory 
analysis of the proposed rule. That comment related to the number of 
hours used for the creation and issuance of the certificate. However, 
the commenter also mentioned some hour burdens that are not associated 
with the creation, review, and issuance of the Polar Ship certificate, 
and are beyond the scope of this rulemaking.
    In preamble section IV, Discussion of Comments and Changes, we 
discuss this public comment regarding our estimate of the time it takes 
a recognized classification society to create a polar certificate--
which includes reviewing, printing, stamping of the documents, and data 
input--and explain why we retained a more conservative estimate used in 
the NPRM as our primary estimate based on industry input. And as 
reflected in that discussion, we adopt the costs and benefits in the 
regulatory analysis of the proposed rule for this final rule.
    This final rule adds a new Polar Ship Certificate to the list of 
existing SOLAS certificates that SOLAS requires to be carried on board 
all U.S. and foreign-flagged vessels above 500 GT ITC (the 
International Convention on Tonnage Measurement of Ships 1969 or gross 
tonnage assigned under this system) \2\ or passenger ships carrying 
more than 12 passengers on international voyages operating in polar 
waters, generally above 60 degrees north latitude and below 60 degrees 
south latitude lines. The IMO adopted the Polar Code in 2014 and 2015 
to acknowledge that polar waters impose additional operating demands 
and risks.\3\ The United States is signatory to the SOLAS convention 
and has an obligation to ensure that all U.S.-flagged vessels certified 
in accordance with SOLAS chapter I that engage on international voyages 
carry a Polar Ship Certificate when operating in polar waters. Owners 
and operators of foreign-flagged vessels subject to SOLAS will have 
their Polar Ship Certificates issued by the ship's flag state or a 
person or an organization authorized by that flag state to issue the 
certificate.
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    \2\ This 500 GT ITC threshold comes from an exception in SOLAS 
Chapter 1 for ships that need to be certified in accordance with 
that chapter. Regulation 3 of Chapter I has an exception for cargo 
ships of less than 500 GT ITC.
    \3\ See Resolution MSC.385(94) and paragraph 7 of the Polar Code 
preamble in MSC.385(94)'s appendix. This resolution is available in 
the docket.
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    This rule amends 46 CFR part 2, ``Vessel Inspections,'' subpart 
2.01, ``Inspecting and Certificating of Vessels.'' Specifically, we are 
adding the Polar Ship Certificate to Sec.  2.01-6, ``Certificates 
issued to foreign vessels,'' and Sec.  2.01-25, ``International 
Convention for Safety of Life at Sea.''

[[Page 44111]]

This rule also amends 46 CFR part 8, ``Vessel Inspection 
Alternatives,'' subpart C, ``International Convention Certificate 
Issuance,'' Sec.  8.320, ``Classification Society Authorization to 
Issue International Certificates,'' at paragraph (b) to include the 
Polar Ship Certificate as one of the certificates that the Coast Guard 
may authorize a recognized classification society to issue on behalf of 
the Coast Guard.
Affected Population
    Since the Coast Guard published the NPRM, two vessels in our 
original population of 41 have been re-flagged and are no longer U.S.-
flagged vessels, and one vessel is no longer in service. In addition, 
this rule does not apply to domestic vessels that operate in polar 
waters if these vessels do not engage in international voyages. This 
was not distinguished in the analysis for the NPRM. Based on this 
factor and further analysis, the population of affected vessels is now 
estimated to be 23. This is the number of U.S.-flagged vessels that 
make international voyages in polar waters, which are generally above 
and below the 60 degree north and 60 degree south latitudes lines, 
respectively, over the past 5 years. This estimate is based on Coast 
Guard field data and Coast Guard databases such as the Marine 
Information for Safety and Law Enforcement, the Ship Arrival 
Notification System, and data from the Navigation Data Center.
    Of the 23 U.S.-flagged vessels that have transited polar waters 
during the 5-year period, some entered polar waters in the first year 
and not the following year, but returned in subsequent years. The 
opposite is also true; some vessels that did not transit polar waters 
in the first year of the data period did so in the following years of 
the data period.
    Recognized classification societies granted authority from the 
Coast Guard under provisions of 46 CFR 8.320(a) will issue the Polar 
Ship Certificate on behalf of the Coast Guard for U.S.-flagged vessels 
that are classed. Although multiple classification societies could 
request authorization to issue the Polar Ship Certificate on behalf of 
the Coast Guard, for the purpose of this analysis, the Coast Guard 
assumes that only one classification society will do so for the small 
number of classed U.S.-flagged vessels.
Cost Analysis
Classification Societies Cost
    This rule amends 46 CFR 8.320(b) to enable recognized 
classification societies to request authorization under Sec.  8.240(b), 
to issue the Polar Ship Certificate on behalf of the Coast Guard. As 
reflected in 46 CFR 2.01-25, vessels that are not classed can apply to 
the local Coast Guard Officer in Charge, Marine Inspection (OCMI) to 
request the Coast Guard to issue the Polar Ship Certificate.
    There are two cost elements associated with a classification 
society issuing a Polar Ship Certificate: The cost to review and return 
a signed copy of the Memorandum of Agreement (MOA) between the 
recognized classification society and the Coast Guard, and the cost to 
create the certificate once the MOA is approved by each party. As 
stated in 46 CFR 8.320(c), the Coast Guard will enter into an agreement 
with the classification society to issue international convention 
certificates such as the Polar Ship Certificate. In this situation, the 
MOA represents a delegation letter and is a standard document that 
allows a recognized classification society to issue the Polar Ship 
Certificate on behalf of the Coast Guard.
    Based on Coast Guard data from the Office of Design and Engineering 
Standards, we estimate it will take a recognized classification 
society's classification and documentation specialist 1 hour to review 
the MOA. There is no equivalent labor category in the Bureau of Labor 
Statistics' (BLS) Occupational Employment Statistics National Industry-
Specific Occupational Employment and Wage Estimates for May 2016, so we 
used the ``Business Operations Specialist, All Other'' (Occupation Code 
13-1199) category for Water Transportation with a North American 
Industry Classification System (NAICS) Code of 483000 as a 
representative occupation. The mean hourly wage rate for this 
occupation is $37.55. Because this is an unloaded hourly wage rate, we 
added a load factor to obtain a loaded hourly wage rate. We used BLS' 
May 2016 Employer Cost for Employee Compensation databases to calculate 
and apply a load factor of 1.52 to obtain a loaded hourly labor rate of 
about $57.08 for this occupation.\4\ We also estimate it will take a 
recognized classification society attorney 1 hour to review the MOA for 
legal sufficiency. Using the BLS' Occupational Employment Statistics 
National Occupational Employment and Wage Estimates for May 2016, we 
used the category ``Lawyers'' (Occupation Code 23-1011). The mean 
hourly wage for this occupation is $67.25. Because this is an unloaded 
hourly wage rate, we apply the same load factor of 1.52 as derived 
above to obtain a loaded hourly wage rate of about $102.22.
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    \4\ Information can be viewed at https://www.bls.gov/oes/2016/may/naics3_483000.htm. Once on this page scroll down to review the 
wage rate for 13-1199 Business Operations Specialists, All Other, 
with a mean hourly wage of $37.55. Please see https://www.bls.gov/oes/2016/may/oes231011.htm, for the mean hourly wage rate for a 
lawyer. A loaded labor rate is what a company pays per hour to 
employ a person, not the hourly wage. The loaded labor rate includes 
the cost of benefits (health insurance, vacation, etc.). The load 
factor for wages is calculated by dividing total compensation by 
wages and salaries. For this analysis, we used BLS' Employer Cost 
for Employee Compensation/Transportation and Materials Moving 
Occupations, Private Industry Report (Series IDs, CMU2010000520000D 
and CMU2020000520000D for all workers using the multi-screen data 
search). Using 2016 Q4 data for the cost of compensation and cost 
per hour worked, we divide the total compensation amount of $28.15 
by the wage and salary amount of $18.53 to obtain the load factor of 
about 1.52, rounded. See the following Web sites, https://beta.bls.gov/dataQuery/find?fq=survey:[oe]&s=popularity:D and 
https://data.bls.gov/cgi-bin/dsrv?cm Multiplying 1.52 by $37.55, we 
obtain a loaded hourly wage rate of about $57.08.
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    We estimate the one-time cost for the classification society to 
review the MOA to be about $162.30, undiscounted. This cost includes a 
$3 postage cost to mail the signed MOA to the Coast Guard for approval 
and signature [($57.08 x 1 hour) + ($102.22 x 1 hour) + $3 for 
postage].
    Based on a recognized classification society estimate, it will take 
approximately 40 hours to create and review the Polar Ship Certificate 
once the MOA is approved. We received a lower estimate of 8-to-12 hours 
from a commenter for work related to this task, but we are maintaining 
our more conservative 40-hour estimate we obtained from an industry 
source to specifically address hours needed to create and review the 
Polar Ship Certificate once the MOA is approved. As with the MOA, a 
classification and documentation specialist would create the 
certificate. We again used the ``Business Operations Specialist, All 
Other'' as a representative occupation. We estimate the one-time labor 
cost for a documentation specialist to create the certificate to be 
about $2,283.20 (40 hours \5\ x $57.08/hour), undiscounted. Because the 
certificate is presented to a vessel owner or operator during the 
normal course of a vessel survey, we did not estimate a cost for this 
action.
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    \5\ Based on an estimate provided by a recognized classification 
society to the U.S. Coast Guard.
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    We estimate the total undiscounted cost of the rule to a recognized 
classification society to be about $2,445.50 ($2,283.20 document 
development cost + $162.30 MOA review cost). See Table 1.

[[Page 44112]]

Vessel Cost
    There are two cost elements associated with vessel owners and 
operators: The fee a recognized classification society will charge a 
vessel owner or operator for issuing the certificate for U.S.-classed 
vessels only, and the cost associated with a crewmember posting the 
certificate onboard a vessel. Based on Coast Guard vessel data, 
approximately 22 percent, or about 5 out of the 23 U.S.-flagged 
vessels, are not classed by a recognized classification society.
    The requirement for the 23 existing ships is to have the 
certificate by their first renewal or intermediate exam after January 
1, 2018. This is a phased-in approach that will likely phase in the 
issuing of the certificates over a period of about 3 years. Therefore, 
the Coast Guard would issue the Polar Ship Certificate to vessel owners 
and operators of those 5 unclassed vessels as part of its routine 
inspection regime. A recognized classification society will issue the 
Polar Ship Certificate to the remaining 18 vessel owners and operators 
in the first, second, third, sixth, seventh, and eighth year of the 
analysis period.
    The Polar Ship Certificate is valid for a 5-year period and, after 
this time, the recognized classification society and the Coast Guard 
will issue a new Polar Ship Certificate to vessel owners and operators, 
depending upon whether a vessel is classed or not classed. Based on 
information from a recognized classification society, the cost to issue 
a Polar Ship Certificate is $100 if a recognized classification society 
issues the certificate (for 18 classed, U.S.-flagged vessels). The cost 
of the reissued Polar Ship Certificate is also $100; therefore, it will 
cost each U.S.-classed vessel owner and operator $100 after 5 years to 
renew the certificate, or in the sixth, seventh, and eighth year of the 
analysis period. We assume a 3-year phase-in period for owners and 
operators to obtain the certificates. For the purpose of this analysis, 
we assume 7 U.S.-flagged vessels owners and operators (6 classed and 1 
unclassed) will obtain a certificate in the first year and 8 (6 classed 
and 2 unclassed) U.S.-flagged vessel owners and operators will obtain 
one in the second and third years. For reissuance, again, we assume the 
same 7 vessel owners and operators will obtain a certificate in the 
sixth year and the same 8 vessel owners and operators will obtain one 
in the seventh and eighth years each; we divided the population 
accordingly to obtain even values.
    Vessel owners and operators will be required to post the 
certificate in a conspicuous area onboard the vessel with other 
applicable operating certificates. Based on the Office of Management 
and Budget's (OMB) approved collection of information entitled 
``Various International Agreement Safety Certificates,'' (OMB control 
number 1625-0017), a crewmember equivalent to a U.S. Coast Guard cadet 
will post the Polar Ship Certificate on board a vessel. Using the Coast 
Guard's Commandant Instruction 7310.1R for loaded hourly wages outside 
of the Government, the hourly wage rate of a person outside of the 
Government equivalent to a cadet is $29.00. We estimate it takes a 
crewmember about 6 minutes, or 0.1 hours, to post the Polar Ship 
Certificate at a labor cost of about $2.90 per vessel ($29.00 x 0.1 
hours). To post the Polar Ship Certificate, we estimate the total 
initial cost of the final rule to 7 U.S.-flagged vessel owners and 
operators to be about $20.30 (6 U.S. classed and 1 unclassed vessel x 
0.1 hours x $29.00), regardless of whether a recognized classification 
society or the Coast Guard issues the Polar Ship Certificate. Owners 
and operators of U.S.-flagged vessels will incur this cost again in the 
sixth year because a crewmember will review and post the reissued 
certificate for the same seven vessels.
    We estimate the initial cost of the rule to vessel owners and 
operators to be about $620.30 in the first year [(6 classed vessels x 
$100) + (6 classed vessels x $2.90 to post the certificate) + 1 
unclassed vessel x $2.90 to post the certificate)].\6\ The cost for the 
renewed certificate in the sixth year (or 5 years after the initial 
year) will also be $620.30 for these seven vessels. In the second, 
third, seventh, and eighth years, we estimate the cost for eight U.S.-
flagged vessel owners and operators to obtain and post a Polar Ship 
Certificate to be about $623.20 [(6 classed vessels x $100) + (6 
classed vessels x $2.90 to post the certificate) + (2 unclassed vessels 
in each of these years x $2.90 each year to post the certificate)]. See 
Table 1.
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    \6\ Vessel owners and operators for ships built on or after 
January 1, 2017, have been required to carry the Polar Ship 
Certificate before engaging in international voyages in polar 
waters. We have not identified any vessels that would be affected by 
this rule that were built after this date and we do not have data to 
project how many newly built vessels will be affected or required to 
carry a Polar Ship Certificate in the future.
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    We estimate the total 10-year undiscounted cost to be $3,733.40 for 
all 23 U.S.-flagged vessel owners and operators ($620.30 in the first 
and sixth year + $623.20 in the second, third, seventh, and eighth 
years of the analysis period). Table 1 shows the cost to both class 
society and vessel owners and operators for this rule.

                Table 1--Summary of Classification Society and Vessel Owners and Operators Costs
                                                 [Undiscounted]
----------------------------------------------------------------------------------------------------------------
             Cost item                 Unit cost          Labor rate            Hours            Total cost
----------------------------------------------------------------------------------------------------------------
Classification Society Certificate  ..............  $57.08...............              40  $2,283.20 (incurred
 Creation.                                                                                  in year 1).
Classification Society Review of    ..............  $102.22 (Attorney)...               1  $162.30 (incurred in
 MOA.                                                                                       year 1 and includes
                                                                                            $3 postage).
                                    ..............  $57.08 (Business                    1
                                                     Operations
                                                     Specialist).
Certificate Fee Charged to Vessel             $100  .....................  ..............  $600 (incurred in
 Owners and Operators.                                                                      years 1 through 3
                                                                                            and 6 through 8);
                                                                                            $1,800 for 18
                                                                                            classed vessels in
                                                                                            years 1 through 3
                                                                                            and 6 through 8.
Vessel Crewmember Reviews and       ..............  $27..................             0.1  $2.90 (incurred in
 Posts Certificate.                                                                         years 1 through 3
                                                                                            and 6 through 8);
                                                                                            $20.30 in years 1
                                                                                            and 6 and $23.20 in
                                                                                            years 2, 3, 7, and
                                                                                            8.
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[[Page 44113]]

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

    We estimate the initial undiscounted cost of the final rule to a 
recognized classification society and to 7 (6 classed and 1 unclassed 
vessels) U.S.-flagged vessel owners and operators to be about $3,065.80 
($2,283.20 for the classification society to create the certificate + 
$162.30 for the classification society to review the MOA + $600 fee 
charged by a classification society to issue the certificate to the 6 
classed vessel owners and operators + $20.30 for crewmembers of the 
seven classed and unclassed vessels to post the certificate). We 
estimate the total 10-year undiscounted cost of the rule to industry to 
be about $6,178.90 ($3,065.80 in the first year + $623.20 in the 
second, third, seventh, and, eighth years + $620.30 in the sixth year). 
See Table 2.
    We estimate the 10-year present value--or discounted cost--of the 
rule to industry to be between $5,082.42 and $5,652.42 at 7- and 3-
percent discount rates, respectively. We estimate the annualized cost 
to be between $723.62 and $662.64 at 7- and 3- percent discount rates, 
respectively. See Table 2.

                                  Table 2--Total Costs of the Rule to Industry
                   [10-Year period of analysis, 7 and 3 percent discount rates, 2017 dollars]
----------------------------------------------------------------------------------------------------------------
                                                                       Cost
                             Period                               (undiscounted)        7%              3%
----------------------------------------------------------------------------------------------------------------
1...............................................................       $3,065.80       $2,865.23       $2,976.50
2...............................................................          623.20          544.33          587.43
3...............................................................          623.20          508.72          570.32
4...............................................................  ..............  ..............  ..............
5...............................................................  ..............  ..............  ..............
6...............................................................          620.30          413.33          519.49
7...............................................................          623.20          388.10          506.72
8...............................................................          623.20          362.71          491.96
9...............................................................  ..............  ..............  ..............
10..............................................................  ..............  ..............  ..............
                                                                 -----------------------------------------------
    Total.......................................................         6178.90        5,082.42        5,652.42
        Annualized..............................................  ..............          723.62          662.64
----------------------------------------------------------------------------------------------------------------
Note: Totals may not sum due to independent rounding.

Government Costs
    There are three cost elements associated with this rule for the 
Coast Guard: (1) A one-time cost of creating the Polar Ship Certificate 
and issuing it (in the initial year, second, third, sixth, seventh, and 
eighth years) to a vessel owner or operator if a vessel is not classed 
by a class society; (2) reviewing the certificate onboard a vessel as 
part of the Coast Guard's routine inspection regime; and (3) a one-time 
cost of creating and sending the delegation letter or MOA to a 
classification society for signature.
    For the 5 U.S.-flagged vessels that are not classed by a recognized 
classification society, the Coast Guard will issue the Polar Ship 
Certificate in the first through the third years and the sixth through 
the eighth years. Because of the phase-in period, we divided the 5 
vessels evenly over 3 years. We determined that 1 vessel will receive 
its certificate in the first and sixth years, and 2 vessels will 
receive it in the second, third, seventh, and eighth year, with 
certificate reissuance occurring during the sixth, seventh, and eighth 
years. The two vessels in the second and third years are the same two 
vessels in the seventh and eighth years.
    Based on information from the Coast Guard's Office of Vessel 
Compliance, we estimate it takes Coast Guard personnel with the average 
equivalence of a GS-15 about 40 hours to create and review a Polar Ship 
Certificate. Using the Commandant Instruction 7310.1R, we used an 
average loaded hourly wage rate of $116.00. We estimate the one-time 
cost for the Coast Guard to create the Polar Ship Certificate to be 
about $4,640.00 (40 hours x $116.00 hour).
    Based on an OMB-approved collection of information (Control Number 
1625-0017), we estimate it takes a Coast Guard Officer the Officer in 
Charge Marine Inspection (OCMI), or more specifically, a Lieutenant 
with the rank of an O-3, about 30 minutes, or 0.5 hours per vessel, to 
review the Polar Ship Certificate for validity and correctness (the 
Coast Guard issues and reviews the certificate at the same time during 
its normal inspection regime). Using the Coast Guard's Commandant 
Instruction 7310.1R for loaded hourly wages, an O-3 has a loaded hourly 
wage rate of $79.00. Therefore, we estimate the total undiscounted cost 
to the Government to review the Polar Ship Certificate for all 23 
affected vessels to be about $908.50 ($79.00x 23 vessels x 0.5 hours), 
or about $39.50 per vessel.
    We use the same methodology noted earlier in this preamble with 
owners and operators obtaining certificates over a 3-year period (7 in 
the first and sixth year and 8 in the second, third, seventh and eighth 
year), with the sixth, seventh and eighth years being the renewal 
years. Again, 7 inspections (6 classed and 1 unclassed) will take place 
in the first and sixth year, and 8 (6 classed and 2 unclassed) in the 
second, third, seventh, and eighth year. We estimate the first year 
cost to the Government to review the certificate will be about $276.50 
(6 classed and 1 unclassed vessels x $39.50). The Government will incur 
this cost again in the sixth year when the certificate is reissued. In 
years

[[Page 44114]]

two, three, seven, and eight, the Government will incur a certificate 
review cost of about $316.00 (6 classed and 2 unclassed vessels x 
$39.50) in each of these years.
    The Coast Guard will also examine the certificates of foreign-
flagged vessels that enter U.S. ports in polar waters as part of its 
routine Port State Control vessel boardings. This will take place 
during routine Coast Guard examinations and for issuing certificates of 
compliance and is a part of the inspection process. Therefore, we do 
not estimate a cost to the Government.
    This final rule will also enable a recognized classification 
society to issue the Polar Ship Certificate on behalf of the Coast 
Guard. As a result, the Coast Guard and a recognized classification 
society will enter into an MOA that delegates authority to the 
classification society. This sets forth guidelines for cooperation 
between the Coast Guard and a classification society with respect to 
initial and subsequent inspections for certifications and periodic re-
inspections or examinations of vessels of the United States, as defined 
by 46 U.S.C. 116.
    Based on information from the Coast Guard's Office of Design and 
Engineering Standards, Coast Guard personnel with the average 
equivalence of a GS-15 will prepare the MOA for delivery to a 
classification society. Again, we used an average loaded hourly labor 
rate of $116.00 for a GS-15. We estimate it will take Government 
personnel about 6.25 hours to prepare and review the MOA. We estimate 
it will cost about $3 in postage for the Government to send the MOA to 
the classification society.
    We estimate the total cost incurred by the Government for the MOA 
to be about $725.00 plus $3 for postage, or a total cost of $728.00, 
undiscounted (6.25 hours x $116.00 for the loaded labor rate).
    We estimate the total initial cost to the Government to be about 
$5,644.50 ($4,640 to create and review the certificate, $276.50 to 
review the certificates for 6 classed and 1 unclassed U.S.-flagged 
vessels, and $728.00 for the MOA). We estimate the total 10-year 
undiscounted cost to the Government to be about $7,185.00 ($5,644.50 in 
the initial year + $316.00 in the second, third, seventh and eighth 
years + $276.50 in the sixth year). We estimate the 10-year present 
value, or discounted cost of the rule to the Government, to be between 
$6374.14 and $6,805.10, using 7- and 3- percent discount rates, 
respectively. We estimate the annualized cost to be between $907.53 and 
$797.76, using 7- and 3-percent discount rates, respectively. See Table 
3.

                               Table 3--Total Costs of the Rule to the Government
                   [10-Year period of analysis, 7 and 3 percent discount rates, 2017 dollars]
----------------------------------------------------------------------------------------------------------------
                                                                       Cost
                             Period                               (undiscounted)        7%              3%
----------------------------------------------------------------------------------------------------------------
1...............................................................        $5644.50       $5,275.23       $5,480.10
2...............................................................          316.00          276.01          297.86
3...............................................................          316.00          257.95          289.18
4...............................................................  ..............  ..............  ..............
5...............................................................  ..............  ..............  ..............
6...............................................................          276.50          184.24          231.56
7...............................................................          316.00          196.79          256.94
8...............................................................          316.00          183.91          249.45
9...............................................................  ..............  ..............  ..............
10..............................................................  ..............  ..............  ..............
                                                                 -----------------------------------------------
    Total.......................................................        7,185.00        6,374.14        6,805.10
        Annualized..............................................  ..............          907.53          797.76
----------------------------------------------------------------------------------------------------------------
Note: Totals may not sum due to independent rounding.

Total Cost of the Rule to Industry and Government
    We estimate the total 10-year combined undiscounted cost of the 
rule to industry and the Government to be about $13,364. We estimate 
the 10-year present value, or discounted cost of the rule to industry 
and the Government, to be between $11,457 and $12,458 at 7- and 3-
percent discount rates, respectively. We estimate the annualized cost 
to be between $1,631 and $1,460 using the same discount rates. See 
Table 4.

                        Table 4--Summary of Costs of the Rule to Industry and Government
                                   [10-Year period of analysis, 2017 dollars]
----------------------------------------------------------------------------------------------------------------
                  Type of cost                       Industry       Government      Total cost      Annualized
----------------------------------------------------------------------------------------------------------------
Undiscounted....................................       $6,178.90       $7,185.00      $13,363.90  ..............
7%..............................................        5,082.42        6,374.14       11,456.55        1,631.16
3%..............................................        5,652.42        6,805.10       12,457.51        1,460.40
----------------------------------------------------------------------------------------------------------------

Benefits
    The primary benefit of this rule is to ensure that vessel owners 
and operators have a valid Polar Ship Certificate on board the vessel. 
Without a Polar Ship Certificate, a vessel will be subject to 
deficiencies, detention, denial of entry, or expulsion from the polar 
waters of other port States. Adherence to SOLAS will ensure vessels are 
capable of operating in the hazards and adverse weather conditions 
unique to polar waters.
Alternatives
    When creating this rule, the Coast Guard considered several 
alternatives. The previous analysis represents the preferred 
alternative, which will help ensure that the United States fulfills its 
treaty obligations under SOLAS

[[Page 44115]]

regarding the Polar Ship Certificate, and that U.S.-flagged vessel 
owners and operators that operate vessels in polar waters will be able 
to obtain Polar Ship Certificates and thus operate more efficiently by 
avoiding the risk of potential negative actions against their vessel by 
foreign countries (such as, detentions, deficiencies, denial of entry, 
or expulsions) if their vessel does not have a Polar Ship Certificate 
on board.
Alternative 1: Preferred Alternative
    The analysis for this alternative appears in this, ``Regulatory 
Analysis,'' section of this preamble.
Alternative 2: No Action Alternative
    In this alternative, the United States would take no action to 
issue a Polar Ship Certificate. None of the costs itemized in the 
preferred alternative would be incurred, as a result. However, with 
this alternative, the United States would not be compliant with its 
international legal obligations as a signatory Government to the SOLAS 
Convention. Additionally, the lack of appropriate certifications would 
likely negatively impact U.S.-flagged vessels on international voyages 
in polar waters of other port States. U.S.-flagged vessels could 
potentially be subject to deficiencies, detentions, denial of entry, or 
expulsion from the polar waters of other port states due to the lack of 
proper certificates.
    Because the United States would not meet its international treaty 
obligations in this alternative, the Coast Guard rejects this 
alternative.
Alternative 3: Large Scale Regulatory Implementation of the Polar Code
    In this alternative, the Coast Guard would implement the entire 
Polar Code in one regulatory effort. This would create or modify 
regulations throughout 46 and 33 CFR. The affected vessels, operators, 
and the Government will also incur the costs and impacts of the 
implementation of the entire Polar Code from a single regulatory 
effort.
    The Coast Guard rejected this alternative because it would 
considerably delay the issuance of the certificate beyond the January 
1, 2017 effective date of the Polar Code. As stated previously, U.S.-
flagged vessels could potentially be subject to deficiencies, 
detentions, denial of entry, or expulsion from the polar waters of 
other port states due to the lack of proper certificates.
    By moving forward with Alternative 1, U.S.-flagged vessel owners 
and operators will be able to obtain a Polar Ship Certificate much 
sooner and thus operate more efficiently in polar waters of foreign 
nations by avoiding adverse consequences from not having the 
certificate on board.

B. Small Entities

    Under the Regulatory Flexibility Act (RFA), 5 U.S.C. 601-612, we 
have considered whether this rule will have a significant economic 
impact on a substantial number of small entities. The term ``small 
entities'' comprises small businesses, not-for-profit organizations 
that are independently owned and operated and are not dominant in their 
fields, and governmental jurisdictions with populations of less than 
50,000. In accordance with the Regulatory Flexibility Act (RFA) (5 
U.S.C. 601-612), the Coast Guard prepared this threshold analysis that 
examines the impacts of the rule on small entities.
    Based on our analysis of the entities affected by this rule, all of 
the 23 affected U.S.-flagged vessels are owned by U.S. entities. To 
determine which entities are small, we compiled the data used in this 
analysis from publicly available and proprietary sources such as Manta, 
ReferenceUSAGov, and Cortera, and from the affected entities' Web 
sites. We used available owner's business information to identify the 
entities' primary line of business as coded by the NAICS to find 
employee and revenue size information. We used this information to 
determine whether we should consider a business ``small'' by comparing 
it to the Small Business Administration's (SBA) ``Table of Small 
Business Size Standards Matched to North American Industry 
Classification System Codes.'' In some cases, SBA classifies businesses 
on a standard either based on the number of employees or annual 
revenues.\7\ We found that no small government jurisdictions or non-
profits own any of the U.S.-flagged vessels affected by this rule.
---------------------------------------------------------------------------

    \7\ Readers can access small entity information online at http://www.sba.gov/size/indextableofsize.html.
---------------------------------------------------------------------------

    We found that 12 companies own the 23 vessels that will be affected 
by this final rule. Of the 12 different companies, we found only one to 
be a small entity, or about 8 percent, based on SBA's table of small 
business size standards. The one small entity that we found has a 
primary NAICS code of 483111, or ``Deep Sea Freight Transportation.''
    We estimate the initial cost to each classed vessel owner and 
operator (small and not small) to be about $102.90 [$600/6 classed 
U.S.-flagged vessel owners and operators that have their vessels 
classed by a class society + $17.40 (6 classed vessels x $2.90)/6 (cost 
for crewmembers of 6 classed U.S.-flagged vessel owners and operators 
to post the certificate divided by the number of U.S.-classed vessel 
owners and operators. Again, in the sixth year, these 6 classed U.S.-
flagged vessel owners and operators will incur this cost)]. In the 
second and third years, the remaining 12 (6 each year) classed U.S.-
flagged vessel owners and operators will incur this same cost, and 
again in the renewal years of seven and eight. The 5 U.S.-flagged 
vessel owners who own unclassed vessels will only incur a cost of $2.90 
per vessel in the each of the years described above. These vessel 
owners and operators will incur the same cost in the first (one vessel) 
through third years (two vessels in the second and third year each) and 
sixth (the same vessel as in the first year) through eighth years (the 
same two vessels as in the second and third year in the seventh and 
eighth year each) of the analysis period. See Table 5.

  Table 5--Summary of Costs per Vessel Throughout the 10-Year Period of
                                Analysis
------------------------------------------------------------------------
                                     Classed U.S.-      Unclassed U.S.-
             Period                 flagged Vessels     flagged Vessels
------------------------------------------------------------------------
Initial and Sixth Year..........  6.................  1.
Years 2, 3, 7, and 8............  6 (each year).....  2 (each year).
Cost............................  $102.90 (each year  $2.90 (each year
                                   per vessel).        per vessel).
------------------------------------------------------------------------
Note: As described in the text, years six, seven, and eight are renewal
  years. The one unclassed U.S.-flagged vessel that received a
  certificate in the first year is the same vessel in the sixth year.
  The two unclassed U.S.- flagged vessels that receive a certificate in
  years two and three are the same ones in years seven and eight. The
  same rationale applies to classed U.S.-flagged vessels.


[[Page 44116]]

    Based on the databases that we searched, the only small entity that 
we found in our analysis did not have revenue information, but had 
employee information. This vessel owned by the small entity is a 
classed vessel, which means the owner of this vessel will incur a cost 
of $102.90 in the initial year and again in the sixth year of the 
analysis period when the reissuance of the certificate takes place. We 
believe the estimated impact on the affected entity is not a 
significant economic impact.
    Based on the preceding analysis and noting that the NPRM received 
no public comments suggesting this rule would be a significant economic 
impact on small entities, the Coast Guard certifies under 5 U.S.C. 
605(b) that this rule will not have a significant economic impact on a 
substantial number of small entities.

C. Assistance for Small Entities

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

D. Collection of Information

    The Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520) requires 
that the Coast Guard consider the impact of paperwork and other 
information collection burdens imposed on the public. According to the 
1995 amendments to the Paperwork Reduction Act, an agency may not 
collect or sponsor the collection of information, nor may it impose an 
information collection requirement unless it displays a currently valid 
OMB control number.
    This action amends the existing information collection requirements 
that were previously approved under OMB Control Number 1625-0017.
    As defined in 5 CFR 1320.3(c), ``collection of information'' 
comprises reporting, recordkeeping, monitoring, posting, labeling, and 
other similar actions. The title and description of the information 
collections, a description of those who must collect the information, 
and an estimate of the total annual burden follow. The estimate covers 
the time for reviewing instructions, searching existing sources of 
data, gathering and maintaining the data needed, and completing and 
reviewing the collection.
    The summary of revised 1625-0017 collection follows:
    Title: Various International Agreement Safety Certificates.
    OMB Control Number: 1625-0017.
    Summary of the Collection of Information: These Coast Guard-issued 
certificates are used as evidence of compliance with SOLAS by certain 
U.S.-flagged vessels on international voyages. Without the proper 
certificates or documents, a U.S. vessel could be detained in a foreign 
port. SOLAS applies to all mechanically propelled cargo and tank 
vessels of 500 or more GT ITC, and to all mechanically propelled 
passenger vessels carrying more than 12 passengers that engage in 
international voyages. By IMO's definition, an ``international voyage'' 
means a voyage from a country to which the Convention applies to a port 
outside the country, or vice versa.
    SOLAS currently requires one or more of the following certificates 
to be carried on onboard certain passenger and cargo ships engaged in 
international voyages (46 CFR 2.01-25):
    (1) Passenger Ship Safety Certificate and Record.
    (2) Cargo Ship Safety Construction Certificate.
    (3) Cargo Ship Safety Equipment Certificate and Record.
    (4) Cargo Ship Safety Radio Certificate (issued by Federal 
Communications Commission (FCC)).
    (5) Nuclear Passenger Ship Safety Certificate.
    (6) Nuclear Cargo Ship Safety Certificate.
    (7) Safety Management Certificate.
    (8) International Ship Security Certificate.
    (9) High-Speed Craft Safety Certificate.
    The Coast Guard is adding the Polar Ship Certificate to the list of 
certificates that it can issue.
    Need for Information: In 2014 and 2015, in resolutions MSC.385(94) 
and MEPC.264(68), IMO adopted the Polar Code. The Polar Code raises the 
safety standards for commercial ships operating in or transiting 
through polar waters, both Arctic and Antarctic, and enhances 
environmental protection for polar waters that include coastal 
communities in the U.S. Arctic. As a signatory to SOLAS, the United 
States has a treaty obligation to ensure compliance with SOLAS 
requirements.
    All mechanically propelled passenger vessels carrying more than 12 
passengers that engage in international voyages and all mechanically 
propelled cargo vessels of more than 500 GT ITC that engage in 
international voyages and operate within polar waters as defined by the 
Polar Code will be required to have the Polar Ship Certificate. The 
Polar Ship Certificate is valid for 5 years.
    The purpose of this rulemaking is to ensure that U.S. marine 
inspectors can issue certificates required by SOLAS Polar Code 
provisions and that these certificates are being carried on all covered 
vessels. Additionally, this rulemaking will add the Polar Ship 
Certificate to the list of certificates that classification societies 
can issue on behalf of the Coast Guard in consideration of hazards and 
conditions unique to polar waters and a potential increase in traffic 
in Arctic and Antarctic waters. These additional hazards include 
navigation in ice and low temperatures, high latitude communications 
and navigation, remoteness from response resources, and limited 
hydrographic charting.
    We calculate the hour burden on an annual basis to review and post 
the Polar Ship Certificate, which takes into account the reissuance of 
the certificate every fifth year. The estimated burden is 1/10 of an 
hour or 6 minutes. About 5 vessels (23 total vessels/5 years) annually 
equates to 30 minutes or 0.5 hours for the hour burden. Equivalently, 7 
classed and unclassed U.S.-flagged vessels (6 classed and 1 unclassed) 
x 6 minutes in the first and sixth years + 8 classed and unclassed 
U.S.-flagged vessels (6 classed and 2 unclassed) x 6 minutes in the 
second, third, seventh and eighth year for a total of 276 minutes 
divided by 46 vessels (7 in the first and sixth years and 8 in the 
second, third, seventh, and eighth year of the analysis period). 
Because vessel owners and operators will have 3 years to obtain a 
certificate, we divided the population essentially into thirds, with 7 
in the first and sixth years and 8 in the second, third, and seventh 
and eighth years.

[[Page 44117]]

    Proposed Use of Information: The Polar Ship Certificate attests 
that the vessel has met applicable requirements of SOLAS to the 
satisfaction of the U.S. Government. Without the certificate, U.S.-
flagged vessels could be detained in foreign ports as being unsafe.
    Description of the Respondents: Respondents are the owner, agent, 
Master, operator, or person in charge of a U.S.-flagged vessel that 
transits in polar waters while engaged in an international voyage.
    Number of Respondents: The existing OMB-approved number of 
respondents is 413. This rule will not change the number of respondents 
because the vessel population that will be affected is a subset of the 
existing number of respondents; this rule is not adding new respondents 
to this collection.
    Frequency of Response: The existing OMB-approved number of 
responses is 912. This rule will increase the number of responses by 
about 8 annually (23 vessels/3-year renewal period) to 920.
    Burden of Response: The existing OMB-approved burden of response is 
6 minutes, or 0.1 hours, or the time it takes for a crewmember of a 
vessel to post the Polar Ship Certificate onboard the vessel.
    Estimate of Total Annual Burden: The existing OMB-approved total 
annual burden is 94.4 hours. Due to rounding, this rule will increase 
the burden hours annually by one hour. The estimated total annual 
burden will be 95 hours annually.
    As required by 44 U.S.C. 3507(d), we will submit a copy of this 
rule to OMB for its review of the collection of information.
    You need not respond to a collection of information unless it 
displays a currently valid control number from OMB. Before the Coast 
Guard can enforce the collection of information requirements in this 
rule, OMB will have to approve the Coast Guard's request to collect 
this information.

E. Federalism

    A rule has implications for federalism under Executive Order 13132 
(``Federalism'') if it has a substantial direct effect on States, on 
the relationship between the national government and the States, or on 
the distribution of power and responsibilities among the various levels 
of government. We have analyzed this rule under Executive Order 13132 
and have determined that it is consistent with the fundamental 
federalism principles and preemption requirements as described in 
Executive Order 13132. Our analysis follows.
    It is well settled that States may not regulate in categories 
reserved for regulation by the Coast Guard. It is also well settled 
that Coast Guard regulations regarding vessel design, construction, 
alteration, repair, maintenance, operation, equipping, personnel 
qualification, and manning issued under the authority of 46 U.S.C. 
3306, 3703, 7101, and 8101 are within fields foreclosed from regulation 
by the States. See United States v. Locke, 529 U.S. 89, 90 (2000) 
(stating ``Congress has left no room for state regulation of these 
matters.''). This rule adds the Polar Ship Certificate to the list of 
certificates required, if applicable, by SOLAS. Also, this rule adds 
this certificate to the list of SOLAS certificates that the Coast Guard 
may authorize recognized classification societies to issue on behalf of 
the Coast Guard. The issuance of international certificates is within 
the sole purview of the Coast Guard to regulate pursuant to 46 U.S.C. 
3306, 3703, 7101, and 8101; 33 U.S.C. 1230 and 1231, Executive Order 
12234; and the principles discussed in Locke. Thus, the regulations are 
consistent with the principles for federalism and preemption 
requirements in Executive Order 13132.

F. Unfunded Mandates Reform Act

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

G. Taking of Private Property

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

H. Civil Justice Reform

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

I. Protection of Children

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

J. Indian Tribal Governments

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

K. Energy Effects

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

L. Technical Standards

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

M. Environment

    We have analyzed this rule under Department of Homeland Security 
Management Directive 023-01 and Commandant Instruction M16475.lD 
(COMDTINST M16475.1D), which guide the Coast Guard in complying with 
the National Environmental Policy Act of 1969 (42 U.S.C. 4321-4370f), 
and concluded that this action is one of a category of actions which do 
not individually or cumulatively have a significant effect on the human 
environment. A Record of Environmental Consideration

[[Page 44118]]

supporting this determination is available in the docket where 
indicated under the ADDRESSES section of this preamble.
    This rule involves: (1) Adding a Polar Ship Certificate to the list 
of certificates required, if applicable, by SOLAS; and (2) adding the 
Polar Ship Certificate to the list of SOLAS certificates that the Coast 
Guard is allowed to authorize recognized classification societies to 
issue on behalf of the Coast Guard. This action constitutes editorial 
or procedural changes concerning vessel documentation requirements 
(that is, issuance of Polar Ship Certificates) and the delegation of 
authority for issuing such certificates. Thus, as reflected in the 
Record of Environmental Consideration, this rule is categorically 
excluded under chapter 2, Section B, Paragraph 2 Categorical Exclusions 
(CEs) and Figure 2-1 (Coast Guard Categorical Exclusions), paragraphs 
(34)(a), (b), and (d) of COMDTINST M16475.1D. This rule promotes the 
Coast Guard's maritime safety and environmental protection missions.

List of Subjects

46 CFR Part 2

    Marine Safety, Reporting and recordkeeping requirements, Vessels.

46 CFR Part 8

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

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

Title 46--Shipping

PART 2--VESSEL INSPECTIONS

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

    Authority:  Sec. 622, Pub. L. 111-281; 33 U.S.C. 1231, 1903; 43 
U.S.C. 1333; 46 U.S.C. 2103, 2110, 3306, 3703; Department of 
Homeland Security Delegation No. 0170.1(II)(77), (90), (92)(a), 
(92)(b); E.O. 12234, 45 FR 58801, 3 CFR, 1980 Comp., p. 277, sec. 1-
105.


Sec.  2.01-6  [Amended]

0
2. In Sec.  2.01-6(a)(1), after the words ``passengers in U.S. ports'' 
and before the words ``holds a valid'', remove the word ``and''; and 
after the text ``Passenger Ship Safety Certificate'', add the text ``, 
and, if applicable, holds a valid Polar Ship Certificate''.

0
3. Amend Sec.  2.01-25 by adding paragraphs (a)(1)(x) and (a)(2)(x) to 
read as follows:


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

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

PART 8--VESSEL INSPECTION ALTERNATIVES

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

    Authority: 33 U.S.C. 1231, 1903, 1904, 3803 and 3821; 46 U.S.C. 
3103, 3306, 3316, and 3703; Department of Homeland Security 
Delegation No. 0170.1 and Aug. 8, 2011 Delegation of Authority, 
Anti-Fouling Systems.


0
5. Amend Sec.  8.320 as follows:
0
a. In paragraph (b)(13), remove the word ``and'';
0
b. In paragraph (b)(14), remove the period at the end of the paragraph 
and add, in its place, ``; and''; and
0
c. Add paragraph (b)(15).
    The addition reads as follows:


Sec.  8.320   Classification society authorization to issue 
international certificates.

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

    Dated: September 18, 2017.
J.G. Lantz,
Director, Commercial Regulations and Standards, U.S. Coast Guard.
[FR Doc. 2017-20155 Filed 9-20-17; 8:45 am]
 BILLING CODE 9110-04-P


