NVIC 02-95: Alternate Compliance Program guidance and changes

Commandant 2703 Martin Luther King Jr Ave SE United States Coast Guard Stop 7501 Washington, DC 20593-7501 Staff Symbol: CG-CVC-4 Phone: (202) 372-1208 Email: FlagStateControl@uscg.mil COMDTPUB P16700.4 NVIC 02-95, CH-3 02 OCT 2018 NAVIGATION AND VESSEL INSPECTION CIRCULAR (NVIC) NO. 02-95, CH-3 Subj: THE ALTERNATE COMPLIANCE PROGRAM (ACP)

U.S. Coast Guard's The Alternate Compliance Program (ACP) — PURPOSE. This Notice publishes change three to NVIC 02-95, The Alternate Compliance

Program (ACP).

U.S. Coast Guard's The Alternate Compliance Program (ACP) — ACTION. Vessel owners and operators, or their representatives, are encouraged to take

advantage of the procedures and guidelines detailed in this Circular, as amended. Area Commanders, District Commanders, Sector Commanders, Commanding Officer Marine Safety Center (MSC), and Officers in Charge, Marine Inspection (OCMIs) are encouraged to apprise industry representatives of this Circular, as amended, and apply its provisions appropriately. This Circular will be distributed by electronic means only and is available at www.dco.uscg.mil/Our- Organization/NVIC.

U.S. Coast Guard's The Alternate Compliance Program (ACP) — DIRECTIVES AFFECTED. The Alternate Compliance Program (ACP), NVIC 02-95,

Change-2 is superseded.

U.S. Coast Guard's The Alternate Compliance Program (ACP) — DISCUSSION. Under the ACP, the majority of vessel statutory certification and services are

performed by Recognized Organizations (RO) on behalf of the U.S. Coast Guard.1 The primary purpose of this change is to align the ACP with applicable International Maritime Organization (IMO) instruments, including the provisions of the International Code for Recognized Organizations (RO Code). The RO Code became effective on January 1, 2015, and serves as an international standard and consolidated instrument containing minimum criteria against which organizations are assessed towards authorization and oversight guidelines by flag States. Additionally, this change incorporates various policies and related provisions consistent with the Commandant’s Final Action Memo (FAM) on the sinking of the S.S. EL FARO. 1 The ACP is authorized by 33 U.S.C. 3316 and implemented under 46 CFR part 8 and various Coast Guard policies. DISTRIBUTION – SDL No. 162 a b c d e f g h i j k l m n o p q r s t u v w x y z A B X X X X C X X X D E X F G H NAVIGATION AND VESSEL INSPECTION CIRCULAR (NVIC) NO. 02-95, CH-3

U.S. Coast Guard's The Alternate Compliance Program (ACP) — ENCLOSURES. Enclosures (1) through (4) provide guidance to assist Companies, ROs, and

Coast Guard personnel in executing the ACP. Enclosure (1), Alternate Compliance Program (ACP) Fundamentals, broadly discusses the authority, background, vessel eligibility, inspection/survey, and required documentation of the ACP. Enclosure (2), Responsibilities of the Company, contains provisions related to the obligations of the Company in maintaining vessels in a continuous state of compliance, implementing an effective Safety Management System (SMS), scheduling surveys and exams, addressing port state control detentions, payment of user fees, and reporting of marine casualties. Enclosure (3), Responsibilities of Recognized Organizations (ROs), clarifies the policies and procedures related to the mandatory requirements that an RO shall fulfill when performing statutory certification and services on behalf of the Coast Guard. Enclosure (4), Responsibilities of the Coast Guard, discusses the Coast Guard’s oversight program and those functions that have been retained by the Coast Guard.

U.S. Coast Guard's The Alternate Compliance Program (ACP) — DISCLAIMER. This NVIC constitutes guidance and is not a substitute for applicable legal

requirements, nor is it, in itself, a regulation. It neither imposes nor intends to impose legally binding requirements on any party. It represents the Coast Guard’s current thinking on this topic and may assist industry, mariners, the public, and the Coast Guard, as well as other federal and state regulators, in applying statutory and regulatory requirements. A Company may use an alternative approach for demonstrating compliance with the standards of the ACP if the Coast Guard determines that the approach will satisfy the relevant provisions of the program, although this will not exempt the Company from complying with applicable United States law and regulations. If a Company wants to discuss an alternative approach, while not required, it may contact the Coast Guard Office of Commercial Vessel Compliance (CG-CVC) at FlagStateControl@uscg.mil.

U.S. Coast Guard's The Alternate Compliance Program (ACP) — MAJOR CHANGES.

a) Aligned procedures and terminology with the RO Code. Since domestic regulations predate the RO Code, for the purposes of this NVIC, the term “RO”, as defined in the RO Code, includes Authorized Classification Societies (ACSs) as defined in 46 CFR 8.100 that are authorized to participate in the ACP under 46 CFR 8.420, and where those same ROs are delegated authority under 33 CFR part 96, subpart D. b) Integrated ACP program management with the Coast Guard’s Mission Management System (MMS), which is an International Standards Organization (ISO) 9001 based Quality Management System (QMS) in order to support key Coast Guard internal business processes, information flows, reporting, and data analytics. c) Incorporated other procedures and instructions including the ACP Tactics, Techniques, and Procedures (TTP) and various MMS documents (e.g., MMS Work Instructions), which focus on individual aspects of the ACP and facilitate more frequent programmatic updates. OCMIs, participating Companies, and ROs are encouraged to reference these products for additional guidance on ACP processes and administration. The ACP TTP and MMS Work Instructions are available on the CG-CVC webpage. d) Accepted that transfers of vessel classification may be completed under the provisions of NAVIGATION AND VESSEL INSPECTION CIRCULAR (NVIC) NO. 02-95, CH-3 International Association of Classification Societies Procedural Requirement 1A (IACS PR 1A), Procedure for Transfer of Class (series). e) Provided details on the Coast Guard’s Fleet Risk Index for vessels enrolled in the ACP. f) Removed provision for involuntary disenrollment from the ACP.

U.S. Coast Guard's The Alternate Compliance Program (ACP) — QUESTIONS. Questions or concerns regarding this policy may be directed to CG-CVC at

FlagStateControl@uscg.mil.

U.S. Coast Guard's The Alternate Compliance Program (ACP) — RECORDS MANAGEMENT CONSIDERATIONS. This Circular has been thoroughly

reviewed during the directives clearance process, and it has been determined there are no further records scheduling requirements, in accordance with Federal Records Act, 44 U.S.C. 3101 et seq., National Archives and Records Administration (NARA) requirements, and Information and Life Cycle Management Manual, COMDTINST M5212.12 (series). This policy does not have any significant or substantial change to existing records management requirements.

U.S. Coast Guard's The Alternate Compliance Program (ACP) — ENVIRONMENTAL ASPECT AND IMPACT CONSIDERATIONS.

a) The development of this NVIC and the general policies contained within it have been thoroughly reviewed by the originating office in conjunction with the Office of Environmental Management, Commandant (CG-47). This NVIC is categorically excluded under current Department of Homeland Security (DHS) categorical exclusion (CATEX) A3 from further environmental analysis in accordance with "Implementation of the National Environmental Policy Act (NEPA)”, DHS Instruction Manual 023-01- 001-01 (series). b) This NVIC will not have any of the following: significant cumulative impacts on the human environment; substantial controversy or substantial change to existing environmental conditions; or inconsistencies with any Federal, State, or local laws or administrative determinations relating to the environment. All future specific actions resulting from the general policy in this NVIC must be individually evaluated for compliance with the National Environmental Policy Act (NEPA), Department of Homeland Security (DHS) and Coast Guard NEPA policy, and compliance with all other applicable environmental mandates.

U.S. Coast Guard's The Alternate Compliance Program (ACP) — FORMS. None.

J.P. NADEAU Rear Admiral, U.S. Coast Guard Assistant Commandant, Prevention Policy NAVIGATION AND VESSEL INSPECTION CIRCULAR (NVIC) NO. 02-95, CH-3 Enclosures: (1) Alternate Compliance Program (ACP) Fundamentals (2) Responsibilities of the Company (3) Responsibilities of Recognized Organizations (ROs) (4) Responsibilities of the Coast Guard