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Federal Register: September 6, 2005 (Volume 70, Number 171)] [Rules and Regulations] [Page 52906-52916] From the Federal Register Online via GPO Access [wais.access.gpo.gov] [DOCID:fr06se05-8] DEPARTMENT OF COMMERCE National Oceanic and Atmospheric Administration 15 CFR Part 995 Docket No: 040608174-5098-03] RIN 0648-0508 Certification Requirements for Distributors of NOAA Electronic Navigational Charts/NOAA Hydrographic Products AGENCY: National Ocean Service (NOS), National Oceanic and AtmosphericAdministration (NOAA), Department of Commerce (DOC). ACTION: Final rule. SUMMARY: The National Oceanic and Atmospheric Administration (NOAA) is promulgating certification requirements with standards for applicants who want to redistribute NOAA Electronic Navigational Charts (NOAA ENCs®) as official data. Two types of certification are offered. The first type, ``Certified NOAA ENC Distributor'' (CED), covers NOAA ENC downloading, exact copying, and redistribution of those copies. The second type, ``Certified NOAA ENC Value Added Distributor'' (CEVAD), permits reformatting official NOAA ENCs into a System Electronic Navigational Chart (SENC) using type-approved software, and distribution of that SENC. NOAA intends by this action to assure that, though redistributed, quality official NOAA ENC data is offered to the public in support of safe navigation on U.S. waters. DATES: Effective Date: October 6, 2005. The incorporation by reference of certain publications in this rule is approved by the Director of the Federal Register as of October 6, 2005. ADDRESSES: Comments in writing should be submitted to Director, Office of Coast Survey, National Ocean Service, NOAA (N/CS), 1315 East West Highway, Silver Spring, MD 20910. Written comments may be faxed to (301) 713-4516. Comments by e-mail should be submitted to ECDIS@noaa.gov. FOR FURTHER INFORMATION CONTACT: Captain John Lowell, Chief, Marine Chart Division, Office of Coast Survey, NOS/NOAA, (301) 713-2724 or please click Here for NOAA's Nautical Chart Product Inquiry page. SUPPLEMENTARY INFORMATION: Discussion of Comments Received and Changes Made On October 15, 2004, a notice of proposed rulemaking entitled ``Certification Requirements for Distributors of NOAA Electronic Navigational Charts/NOAA Hydrographic Products'' was published in the Federal Register (69 FR 61165), and comments were solicited. Four sets of comments were received. The substance of the comments and the resulting changes made to the regulation are summarized below. One set of comments stated that the Certification Requirements for Distributors of NOAA Electronic Navigational Charts/NOAA Hydrographic Products was an inappropriate activity for NOAA. In response, NOAA cites the Hydrographic Services Improvement Act of 1998, as amended (codified at 33 U.S.C. 892b), under which this program was established. The comments further suggested that a substantial fee structure would be appropriate for the program. Again, NOAA refers to the enabling legislation that limits the fees NOAA may charge. A second set of comments offered that Sec. 995.8, ``Alterations,'' appeared to permit NOAA to change program regulations without following the Administrative Procedure Act that allows for public comment. NOAA's intent is to follow those procedures in executing this section, but stating so in the rule is redundant with NOAA's obligation under the Administrative Procedure Act. The section was deleted from the regulations to eliminate confusion. The comment also suggested that in Sec. 995.15(a), the first sentence, ``NOAA reserves the right to audit certified distributors'' be deleted as redundant with Sec. 995.14. NOAA deleted the sentence. A third set of comments received contained two recommendations. The first was that NOAA should use the ISO 19379 standard to certify privately made Electronic Chart Systems (ECS) databases and the second was that NOAA should eliminate the limitation in the proposed rule that prevents the use of ISO 19379 certified electronic charts for mandated chart carriage. Related to the recommendations was a set of comments. As to the comment/recommendation that NOAA might adopt an existing standard such as ISO 19379 for certifying privately made ECS databases, NOAA recognizes this opportunity, and acknowledges this possibility in a separate rule, entitled: Quality Assurance and Certification Program for NOAA Hydrographic Products, in the Federal Register dated January 5, 2005 (70 FR 693). With this rule for distribution of official NOAA ENCs, NOAA does not intend to certify privately made ECS databases, but only to allow for the redistribution of official NOAA ENCs, while retaining their official status. As to the comment that NOAA's policy of not certifying privately made ECS databases would deny adequate electronic chart coverage to support the mandatory carriage of electronic charts, which the Coast Guard has been directed to implement, NOAA sees no concern, and this was not the purpose of this rulemaking. NOAA already provides 100 percent coverage of its area of responsibility with official raster navigational charts (one type of electronic chart), 45 percent coverage with official electronic navigational charts (a second type of electronic chart) with completion of the full suite scheduled during 2007, and the U.S. Army Corps of Engineers anticipates completing full coverage of primary and secondary inland river routes with official electronic charts during 2007, thus serving vessels that carry 90 percent of the inland river shipping tonnage. Also, while the Coast Guard must promulgate electronic chart carriage regulations by January 1, 2007, the effective date of those regulations, exactly which vessels are to be covered, and what waivers may be issued is left to their discretion. NOAA, the Corps of Engineers, and the Coast Guard will continue to coordinate closely to ensure that electronic chart carriage is not mandated before official charts are available. Another comment stated that since the proposed rule did not provide a means to certify privately made ECS databases for meeting chart carriage regulations, it closes the markets to private companies for equipping non-SOLAS, regulated vessels and thus was contrary to the Regulatory Flexibility Act. Such certification is beyond the intent of this rule, which is merely to certify distributors of official NOAA ENCs. Further, the final rule does not take away regulated vessels as a market for privately made electronic charts. Privately made charts have never been accepted as meeting chart carriage regulations, but may be carried as an aid to navigation. This situation will continue under the final rule. In any case, because NOAA provides official electronic charts at no cost, the commercially-viable market for private charts aboard regulated vessels would be small, thus causing little impact on small businesses. Finally, the number of companies that NOAA estimates might be affected is few (approximately 3 to 9), not all of which may be small businesses. Thus, the rule does not appear to rise to the level of causing a significant economic impact on a [[Page 52907]] substantial number of small businesses. If any impact is made on the industry it would provide a benefit to all participating entities by allowing certified businesses to sell a new product that is considered as having official NOAA ENC data in it, with the phrase ``Certified NOAA ENC Distributor'' or ``Certified NOAA ENC Value Added Distributor'' on products and marketing materials. NOAA appreciates that a nation-wide supply of electronic charts for ECS is important and so, in addition to these requirements, NOAA has promulgated a rule for Quality Assurance and Certification Program for NOAA Hydrographic Products, (70 FR 693, Jan. 5, 2005). That program supports companies in making and selling electronic charts into the non-regulated market, which is two orders of magnitude larger than the regulated market and provides additional commercial opportunities for private companies while preserving the safety of navigation. The last set of comments had twelve recommendations, as follows: One comment recommended that the title be changed to: ``PART 995-- Certification Requirements for Distributors of NOAA Electronic Navigational Charts.'' NOAA is leaving the title in its present wording for the possibility of future products. One comment recommended that we move and clarify the definition of ``Distributor'' versus ``Value Added Distributor.'' Each term has a specific definition as it applies to the section where it appears in the regulation. NOAA believes that it is necessary to maintain the difference between the two types of distributors. One comment recommended a clarification between the certification of a distributor, the certification of a process, and the certification of a product, so that the end user would be able to identify if the product is suitable for navigation and meets Federal chart carriage requirements. For clarification, NOAA is certifying two types of distributors who may redistribute official NOAA ENC data and have it remain as official Federal data, which can be used to meet Federal carriage requirements. While NOAA is not certifying processes the distributors use to produce their end product, the rule requires them to follow accepted industry standards as noted in this rule if the entity wishes to have a product with data in it that complies with Federal carriage requirements. NOAA believes the revised rule clarifies these concerns. One comment recommended that NOAA revise language where the rule mandates different outcomes for the same procedure simply because of who performed it. NOAA revised a portion of Sec. 995.1(c) to read: ``Any entity may continue to download from an official NOAA ENC® Web site and use NOAA ENCs for any purpose. As long as it is not redistributed, that ENC will still be considered as official Federal data. If the NOAA ENC is successfully imported unaltered into a type- approved system, it will comply with Federal nautical chart carriage requirements.'' NOAA additionally clarified Sec. 995.1 by providing examples illustrating when NOAA ENCs will or will not meet Federal chart carriage regulation. One comment recommended that the rule should require any commercially redistributed official ENC or derived product from an uncertified entity to notify the user that the product does not meet federal chart carriage requirements. Instead of adding language to the rule, NOAA will add to the Agreement Statement on the NOAA ENC Web site, which the entity must accept in order to download any official NOAA ENCs. The statement will have words to the effect that: ``Any entity that is not a certified NOAA ENC distributor, agrees that it will not redistribute NOAA ENCs as official data for the purpose of complying with Federal chart carriage requirements. The certification requirements and application can be found at: (inset hyper link). The final rule as published in Federal Register (insert number and page), can be found at (inset hyper link).'' A second statement will read, ``By clicking on the link below to proceed to download the NOAA ENCs, the user acknowledges having read and agreed to the above terms and conditions.'' One comment recommended that NOAA charge fees for all costs incurred in the certification process, including resubmissions of revised requests that were initially unacceptable. NOAA added language in the fee section of the rule to include resubmissions. One comment recommended that NOAA strike a redundant sentence, in Sec. 995.15 (a), which was done. One comment recommended that NOAA should reserve the right, to the extent practicable, to require the recall of all redistributed ENCs and derived products that were produced during a period of non-compliance. NOAA does not believe that it is appropriate to require product recall while the distributor is under investigation. However, NOAA revised Sec. 995.15, Termination of certification, to read: ``CED or CEVAD shall notify all recipients of its products that its certification has been revoked and that the product may no longer be valid for use. In addition, the CED or CEVAD shall provide the dates of non-compliance.'' One comment stated that NOAA cannot regulate that CEDs or CEVADs ensure that the user (of its products) has a sufficient level of knowledge. NOAA agreed and revised Sec. 995.22 to read: ``CED or CEVAD shall provide some form of product training and education materials to the customer to ensure that the end user has a sufficient level of information about the intended use of the derived product and what is needed to properly use it (e.g., requires certain equipment).'' One comment recommended that NOAA strike all of Sec. 995.24 (a)(4) Additional data. NOAA chose not to delete Sec. 995.24(a)(4) for liability reasons. One comment recommended that NOAA provide an up-to-date listing on the Office of Coast Survey (OCS) Web site of certified ENC distributors and their certified products. NOAA will provide this list. One comment recommended that NOAA require that a certification statement accompany the NOAA logo when used on hydrographic products. NOAA added in Sec. 995. 24 language that the CED/CEVAD should provide documentation to clarify to the user the suitability of use of product, the type and content of the files, when non-NOAA data is included, and any time delays for distribution of the data. Due to NOAA's re-examination of Sec. 995.15, NOAA determined that the section required changes to best serve and protect the CED/CEVAD throughout the termination process. NOAA revised the termination process to provide the CED/CEVAD with clearer guidelines for responding to a notification of potential termination administrative tracking and response time of its claim, add final action language, and provide an opportunity for the CED or CEVAD to resubmit a request for certification if terminated. One change to Sec. 995.15, added to the information collection associated with the Paperwork Reduction Act. NOAA added that CED's or CEVAD's comments to OCS in response to a notification of potential termination shall contain at least: identification and contact information of the CED or CEVAD; a statement that CED or CEVAD is responding to an initial written notification of potential termination by OCS; and a thorough but concise argument as to why CED or CEVAD believes that its certification should not be terminated. [[Page 52908]] Electronic Access A digital copy of this published rule for certification requirements for NOAA ENC redistribution, with application templates, is accessible via the Internet at NOAA's Web site: http://nauticalcharts.noaa.gov/mcd/enc/index.htm . Background NOAA produces electronic navigational charts (ENCs) as one of its products under its Nautical Charting Program. Official NOAA ENCs, which conform to International Hydrographic Organization (IHO) standards, may be used in a typeyapproved display system, such as an Electronic Chart Display and Information System (ECDIS), to comply with Federal nautical chart carriage requirements administered by the Coast Guard. NOAA distributes these official ENCs to the public for free over its Web site on the Internet. Part 995 in the Code of Federal Regulations establishes the requirements by which entities may be certified to download, redistribute, repackage, or in some cases reformat, official NOAA ENCs and retain their official status. No other processes result in redistributed NOAA ENC® products that comply with Federal chart carriage requirements. NOAA developed these certification requirements under the authority of Section 104 of the Hydrographic Services Improvement Act Amendments of 2002, 33 U.S.C. 892b(b)(1). NOAA also developed these requirements to ensure the quality and content of official NOAA ENCs remains intact throughout the redistribution process. To obtain a written copy of the certification requirements for NOAA ENC distribution, refer to ADDRESSES section or visit the Internet at NOAA's Web site: http://nauticalcharts.noaa.gov/mcd/enc/index.htm. In addition to the rules set forth in the NOAA certification process, if the Value Added Distributor converts NOAA ENC data to other formats, it will need to comply with the IHO Technical Resolution A3.11 published in M-3 Resolutions of the IHO, Chapter A, Section 3. This resolution is available from the IHO Web site: http://www.iho.shom.fr. Also, for reference, it is advised that distributors be familiar with the International Electrotechnical Commission (IEC) Publication 61174 and the IHO Special Publication S57 and S58. IEC Publication 61174 is the basis for type-approval specifications related to operational methods of testing and required test results for an International Maritime Organization (IMO) compliant ECDIS. The IEC Publication 61174 can be ordered from the IEC Web site: http://www.iec.ch. The IHO Special Publication S57 includes a description of the data structure and format to be used for the exchange of ENC data, product specification for the production of ENC data, and an updating profile. The IHO Special Publication S58 includes recommended ENC validation checks. The IHO Special Publication S57 and S58 are available at the IHO Web site: http://www.iho.shom.fr. Classification A. Executive Order 12866 This rule has been determined to be not significant for the purposes of Executive Order 12866. B. Regulatory Flexibility Act The Chief Counsel for Regulation of the Department of Commerce certified to the Chief Counsel for Advocacy of the Small Business Administration that this rule will not have a significant economic impact on a substantial number of small entities. The purpose of this rule is to provide the procedures and requirements necessary for an entity to be certified as ``Certified NOAA ENC Distributor'' or ``Certified NOAA ENC Value Added Distributor.'' This certification process is voluntary. Only those applicants who wish to redistribute NOAA ENC data as official Federal data with the phrase ``Certified NOAA ENC Distributor'' or ``Certified NOAA ENC Value Added Distributor'' on products and marketing materials need to apply. NOAA developed this certification process under the authority of 33 U.S.C. 892b(b)(1). The Small Business Administration guideline to separate small from large businesses is $4 million for Mapmaking firms and $5 million for Navigational Services to Shipping and Other Support Activities for Water Transportation. NOAA is unable to determine the total number of small entities that will be affected by this rule, as it does not specifically track this type of information. However, based upon knowledge of the nature of the industry, NOAA believes the majority of the entities affected will be small businesses. Public comments were received that the proposed rule does not certify privately produced electronic nautical charts for use by certain classes of regulated vessels. In response, NOAA reaffirmed that such an action would be beyond the scope of the rule being promulgated here. NOAA's intent with this rule is only to certify entities that wish to redistribute its NOAA ENCs as official Federal data and for meeting a set of requirements rather than certifying them for a particular use. One comment stated that the proposed rule's limitation to use electronic charts on ECDIS closes the markets for all non-SOLAS vessels in the United States and thus was contrary to the Regulatory Flexibility Act. Certified official NOAA ENCs are not limited in their use by NOAA, nor does NOAA have the authority to make the determination of suitability of use. The determination of suitability of Federal carriage requirements for certain classes of vessels lies with the Coast Guard. NOAA believes that this rule is in the public interest and that it does not remove a market for privately made electronic charts since they never have been certified for regulatory carriage and do not have that market. Also, because NOAA and the Corps of Engineers give away for free official electronic charts for meeting carriage requirements, it appears that the portion of the market that this rule does not make readily accessible to private charts would be small. Finally, the number of companies that NOAA estimates might be affected is few (approximately 3 to 9), not all of which may be small entities. Thus the rule does not appear to rise to the level of causing a significant, negative economic impact on a substantial number of small businesses, and thus does not violate the Regulatory Flexibility Act. On the contrary, it should provide a benefit to all participating entities. NOAA appreciates that a nation-wide supply of electronic charts for ECS is important and so in union with these requirements, NOAA offers another proposed rule for Quality Assurance and Certification Program for NOAA Hydrographic Products, (69 FR 61172, Oct. 15, 2004). That program supports companies in making and selling electronic charts into the non-regulated market, which is two orders of magnitude larger than the regulated market and provides additional commercial opportunities for private companies while preserving the safety of navigation. The total estimated economic impact to small entities associated with startup costs, software and equipment upgrades, the application process, reporting, recordkeeping, and compliance requirements is not expected to amount to sums greater than $5,228 per entity annually. However, NOAA does not believe this cost will have a negative impact on small companies, as the [[Page 52909]] estimated costs incurred should be offset through the benefits in increased sales of the product because of its ``certified'' status. Also, NOAA requires only bi-annual reporting and recordkeeping, balancing the burden to the distributor, with the assurance of maintaining safe navigation through data quality verification for public safety. And, to lessen the economic impact, the duration of certification will be five years from the date of issuance. It is anticipated the effects of this rule will be largely positive to small entities, with potential economic benefits. This rule will allow certified businesses to sell a new product that is considered as having official NOAA ENC data in it, with the phrase ``Certified NOAA ENC Distributor'' or ``Certified NOAA ENC Value Added Distributor'' on products and marketing materials. Under this rule, Federal regulation and reporting will be extremely limited, startup costs should be minimal and there is no charge to small businesses for this official product, which they could resell for profit. C. Paperwork Reduction Act This rule contains collection-of-information requirements subject to the Paperwork Reduction Act (PRA). The following requirements have been approved by OMB under control number 0648-0508: 1. A written request and application for certification. 2. Submission of a registry of customers receiving NOAA ENC data. 3. Notification when the CRC checksum value does not match the value in the CATALOG.031 file. 4. Compression/decompression and encryption/decryption software and documentation for testing. 5. A distribution report describing when NOAA ENC files were downloaded and when they were distributed to end users. 6. A label on products to identify data that are NOAA ENCs. 7. Report of any errors detected during the conversion process that apparently originate in the NOAA ENC files. 8. An application for reconsideration of termination. The total estimate of burden hours annually for all distributors is 536 hours. The total estimate of burden hours per distributor is approximately 60 hours a year. These estimates include the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, completing and reviewing the collection of information, sending the initial application to OCS to become a certified distributor, and sending the bi-annual reports to OCS. Notwithstanding any other provision of the law, no person is required to respond to, nor shall any person be subject to a penalty for failure to comply with, a collection of information subject to the requirements of the PRA, unless that collection of information displays a currently valid OMB Control Number. There are no duplicative, overlapping, or conflicting Federal rules associated with this rule. List of Subjects in 15 CFR Part 995 Administrative practice and procedure, Incorporated by reference, Navigation (water), Navigational charts. 0 For the reasons stated in the preamble, NOS amends 15 CFR chapter IX by adding to subchapter F, part 995 to read as follows: Subchapter F--Quality Assurance and Certification Requirements for NOAA Hydrographic Products and Services PART 995--CERTIFICATION REQUIREMENTS FOR DISTRIBUTORS OF NOAA HYDROGRAPHICPRODUCTS Subpart A--General Sec. 995.1 Purpose and scope. 995.2 Incorporation by reference. 995.3 Availability of other publications. 995.4 Definitions. 995.5 Abbreviations. 995.6 Fees. 995.7 Liability. Subpart B--Certification and Procedures Sec. 995.10 Correspondence and applications. 995.11 Government review and approval. 995.12 Certification designation. 995.13 Transfer of certification. 995.14 Auditing. 995.15 Termination of certification. 995.16 Term of certification. Subpart C--Requirements for Certified Distributors and Value Added Distributors of NOAA ENC Products Sec. 995.20 General. 995.21 Registry of data users. 995.22 Training of data users. 995.23 Acquisition of data. 995.24 Distribution of data. 995.25 Quality management system. 995.26 Conversion of NOAA ENC files to other formats. 995.27 Format validation software testing. 995.28 Use of NOAA emblem. 995.29 Limitation on endorsements. Appendix A To Subpart C of Part 995--Certification Application Templates Authority: 33 U.S.C. 892b(b)(1). Subpart A--General Sec. 995.1 Purpose and scope. (a) The National Oceanic and Atmospheric Administration (NOAA) produces electronic navigational charts (ENCs) as one of its products under its Nautical Charting Program. According to Federal regulations, official NOAA ENCs® meet nautical chart carriage requirements when used in a type-approved display system, such as an Electronic Chart Display and Information System (ECDIS). NOAA distributes these official ENCs to the public for free over its Web site on the Internet. This Part establishes the requirements by which entities may be certified to download, redistribute, repackage, or in some cases reformat, official NOAA ENCs and retain the NOAA ENC's official status. When a NOAA ENC® retains its official status, it will comply with Federal chart carriage requirements. These requirements for re- distributing NOAA ENC data or incorporating it into value-added navigational products are to ensure the quality and content of official NOAA ENCs remains intact throughout the redistribution process. No other processes result in redistributed NOAA ENC products that comply with Federal chart carriage requirements. (b) Two types of certification are offered. The first type, ``Certified NOAA ENC Distributor'' (CED), covers NOAA ENC downloading, exact copying, and redistribution of those copies. The second type, ``Certified NOAA ENC Value Added Distributor'' (CEVAD), permits reformatting official NOAA ENCs into a System Electronic Navigational Chart (SENC) using type-approved software, and distribution of that SENC. Both types of certification permit, but do not require, compression, encryption, and packaging with other data. Because NOAA ENC® data is the primary concern of this rule, and it is mandatory for certification that the official NOAA ENCs remain unaltered for positional accuracy and informational content, NOAA is, in effect, certifying that a CED's or CEVAD's products contain official NOAA ENC data, and therefore meets chart carriage requirements. (c) Any entity may continue to download from an official NOAA ENC® Web site and use NOAA ENCs for any purpose. As long as it is not redistributed, that ENC will still be considered as official Federal data. If the NOAA ENC is successfully imported unaltered into a type-approved system, it will comply with Federal nautical chart carriage requirements. While without certification anyone can [[Page 52910]] download an official NOAA ENC for any use, if a NOAA ENC® is redistributed by an uncertified entity to another entity, the NOAA ENC is no longer considered as official Federal data and thus does not comply with Federal chart carriage requirements. An example follows. (1) One example is if an uncertified individual downloads a NOAA ENC and uses it according to Federal requirements, that individual will be meeting Federal chart carriage requirements. If an uncertified tug boat company has 9 boats in its fleet and an individual on one of the boats downloads a NOAA ENC and uses it according to Federal requirements that individual will be meeting Federal chart carriage requirements. However, if that same uncertified tug boat company downloads a NOAA ENC and redistributes it to its 9 boats, the NOAA ENC will not be considered official Federal data and therefore the 9 boats will not be meeting Federal carriage requirements. The company should become a CED or CEVAD under this part in order to be able to redistribute NOAA ENC's and retain the official status of those ENC's. (2) To reiterate, NOAA ENCs must not be redistributed by an uncertified entity if the end output needs to have official NOAA ENCs in it that will comply with Federal carriage requirements. Any company, entity or individual must be certified if the goal is to redistribute NOAA ENCs and have those NOAA ENCs remain as official Federal data and as such continue to meet Federal carriage requirements administered by the Coast Guard. Sec. 995.2 Incorporation by reference. Certain material listed in this section is incorporated by reference with the approval of the Director of the Federal Register under 5 U.S.C. 552(a) and 1 CFR part 51. The materials listed in this section are incorporated | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||