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Statement of Need: The Coast Guard proposes to amend its regulations to implement changes to its interim rule published on June 26, 1997. These proposed amendments go beyond changes found in the interim rule and seek to more fully incorporate the requirements of the International Convention on Standards of Training, Certification and Watchkeeping for Seafarers, 1978, as amended (STCW) in the requirements for the credentialing of United States merchant mariners. The new changes are primarily substantive and: (1) Are necessary to continue to give full and complete effect to the STCW Convention; (2) Incorporate lessons learned from implementation of the STCW through the interim rule and through policy letters and NVICs; and (3) Attempt to clarify regulations that have generated confusion among USCG offices and industry.

Summary of the Legal Basis: The authority for the Coast Guard to prescribe, change, revise, or amend these regulations is provided under 46 U.S.C. 2103 and 46 U.S.C. chapters 71 and 73; and Department of Homeland Security Delegation No. 0170.1

Alternatives: For each proposed change, the Coast Guard has considered various alternatives. We considered using policy statements, but they are not enforceable. We also considered taking no action, but this does not support the Coast Guard’s fundamental safety and security mission. Additionally, we considered comments made during our 1997 rulemaking to formulate our alternatives. When we analyzed issues, such as license progression and tonnage equivalency, the alternatives chosen were those that most closely met the requirements of STCW.

Anticipated Costs and Benefits: We estimate the non-discounted first-year and annual recurring costs of this proposed rule to be $14.6 million and $11.4 million, respectively. We estimate the annualized cost over a ten-year period to be at $11.9 million per year at either a seven percent or a three percent discount rate. We estimate the total discounted ten-year cost of this rulemaking to be $83.8 million at a seven percent discount rate and $101.1 million at a three percent discount rate. The primary benefit of this rulemaking is to specify seafarer training.

Risks: The ultimate goal of the regulation is to increase safety and facilitate consistency of the United States regulations with International Maritime Organization guidelines and requirements.