REPORT OF THE VCER WG & STANDING COMMITTEE ON CONSTRUCTION AND EQUIPMENT

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1 REPORT OF THE VCER WG & STANDING COMMITTEE ON CONSTRUCTION AND EQUIPMENT The meeting of both the VCER working group (WG) and the Standing Committee on Construction and Equipment was held on Thursday, April 21, 2016, and was chaired by Luc Tremblay, Transport Canada Marine Safety and Security (TCMSS). 1. INTRODUCTION AND APPROVAL OF AGENDA The chair commenced the meeting, and requested everyone to sign the attendance sheet in order to be added to the mailing list. The agenda items were then reviewed, and a question was put forth by a representative of BC Ferries concerning alternate compliance. The chair noted that this question will be addressed in the Construction and Equipment Standing Committee section, after presentation of the Vessel Construction and Equipment Regulations working group. The agenda was subsequently adopted without amendment. 2. UPDATE ON THE PROPOSED VESSEL CONSTRUCTION AND EQUIPMENT REGULATIONS (VCER) DEVELOPMENT Following adoption of the agenda, TCMSS provided an update on the proposed Vessel Construction and Equipment Regulations (VCER) file. A brief background on these proposed regulations was provided, which noted that the proposed VCER will update and consolidate a number of existing regulations and standards into a single, comprehensive set of regulatory requirements concerning the construction of new vessels and the alteration of existing vessels. Where possible, the proposed VCER will incorporate existing international conventions, codes and resolutions, as well as existing classification society rules. The primary regulatory approach to be used is the incorporation of documents by reference (IBR). All relevant documents will be incorporated by reference into the proposed VCER, as amended from time to time. In this way, the proposed regulations will remain current, since any updates to the referenced documents will be reflected automatically. With IBR, the proposed VCER will incorporate a number of international instruments, as well as Canadian modifications to these instruments, which include: the SOLAS Convention, the International Code on Intact Stability, the Code of Safety for Special Purpose Ships, etc.

2 TCMSS noted that the impact of the proposed VCER on domestic vessels will be minimal, as the primary focus will be on the construction of new vessels and existing vessels undergoing major modifications. Accordingly, the proposed regulations will apply to the following Canadian vessel types: (1) Passenger vessels and cargo vessels of more than 500 GT subject to the SOLAS Convention (i.e. embarking on international voyages); (2) Domestic passenger vessels of 24 meters in length and above, and; (3) Domestic cargo vessels of 24 meters in length and above. In terms of the current status of this regulatory project, TCMSS noted that the provisions of existing regulations and instruments of relevance are being reviewed and consolidated, as appropriate, into the proposed regulations. This analysis is focusing on: (1) Relevant international conventions and related instruments; (2) Regulations of other administrations; (3) Classification society rules; and (4) Transport Canada and industry standards. It was also noted that at the 2015 spring CMAC and afterwards, to help identify topics of concern, marine stakeholders were consulted for comments on the proposed drafting instructions and the proposed draft of the Canadian Supplement to SOLAS. Though some comments were received, TCMSS would like to re-circulate these documents to receive additional comments, as stakeholder input is a crucial component of the regulatory development process. TCMSS then put forth a proposed timeline for the VCER project: (1) Re-circulate the drafts of the proposed VCER drafting instructions and the Canadian Supplement to obtain additional stakeholder comments. This re-circulation will allow for an 8-week comment period from the initial date of recirculation; (2) Conduct consultation workshops with specific industry segments, to be held throughout 2016, and; (3) Commence co-drafting of the proposed regulations with TC drafting lawyers. The goal is to commence drafting before the end of 2016, though it was made clear that this goal is contingent on the regulatory priorities of the department. Finally, the chair reiterated that a stakeholder comment sheet, along with the proposed VCER Drafting Instructions and the draft Canadian Supplement, will be recirculated to all VCER WG and Standing Committee participants via , for their input. 3. REVIEW OF THE DRAFT PROPOSED DRAFTING INSTRUCTIONS FOR THE PROPOSED VCER The chair presented an overview of the proposed drafting instructions (DIs) for the proposed VCER. The VCER DIs are one of two main documents that TCMSS will publish for this regulation, with the other document being the Canadian supplement to SOLAS (also known as a Transport Publication or TP ). The DIs provide the legal framework of the regulation, and are given to the Department of Justice so they may write the official version of the regulation, which will be published in the Canada Gazette. He noted that it is the Department of Justice that ultimately writes the regulations, and that the Canadian Supplement, in the form of a Technical Publication

3 (TP) document, is drafted and published by Transport Canada. The Canadian Supplement provides modifications to SOLAS in order to accommodate the realities of the domestic fleet. Additionally, the concept of IBR was re-explained, as this regulatory approach will be applied in the proposed VCER. Essentially, IBR allows for any amendments to IMO instruments referred to within the regulations to be automatically incorporated into the regulations when the amendments come into force (which is the final step after the amendments have been adopted). Similarly, IBR allows for any updates to Canadian Supplements referred to within the regulations to be automatically incorporated into the regulations. It was noted that a provision exists in the proposed draft regulations which highlights the shared jurisdiction and regulatory responsibility between Natural Resources Canada (NRCAN) and TCMSS when dealing with vessels involved in exploratory drilling for resources. Thus, further consultation with NRCAN regarding the draft proposed VCER is required for exploratory drilling vessels. The chair proceeded section by section through the proposed DIs, explaining the purpose/function of each one. The first was the administration section, where all the sub-parts were quickly reviewed and described. For example, it was explained that the first section titled Interpretation provides a list of definitions and interpretive clauses, and explains the meaning of various words and expressions used within the regulation. Additionally, the sections on Grandfathering and the Limitations on Grandfathering were presented. For the Grandfathering section, it was explained that this grandfathering concept functions mostly as a middle solution for vessels that are transferring to the Canadian Registry, between either accepting a vessel as is or treating it as a new vessel. With the grandfathering clause, vessels may be accepted into the registry which meet the requirements that were in place up to ten (10) years ago, which is similar in practice to other marine administrations, such as Denmark. In terms of the Limitations on Grandfathering section, it was explained that the limitations would concern vessels which had been subject to major modifications, which will be assessed on a case by case basis. It was further clarified that any such limitations on grandfathering would typically apply to the specific parts of the vessel that have been subject to the major modification. Therefore, the vessel parts that were affected by the modification would be subject to the proposed VCER, not the whole vessel. It was noted that clauses applicable to current vessels are mostly related to operational or maintenance procedures, such as lifesaving procedures. After the administrative section was reviewed, Part 1, which comprises the technical section of the VCER, was presented. It was noted that Part 1 of the proposed VCER concerns the incorporation of SOLAS chapters. This section also contains provisions which introduce a new set of Canadian modifications for the new version of TP 7301 (i.e. the stability standard). The new version of TP 7301 will have less content, since a

4 large part of what is in the current version is already existing in the IS Code, with a few exceptions. For the new version, only these exceptions to the IS Code will remain. It was stated that the main technical content of the proposed VCER involves Chapter II- 1 and Chapter III of SOLAS. Chapter II-1 concerns construction requirements for a vessel s structure, subdivision and stability, machinery and electrical installations. Chapter III concerns requirements for lifesaving appliances and arrangements. The rest of the incorporated SOLAS chapters in the proposed VCER are addressing specific issues, and are either incorporated in whole or in part. The chair noted that the proposed regulations only incorporate elements from SOLAS chapters that are purely construction and equipment related. Since a number of SOLAS chapters contain a mix of construction and operational elements, partial incorporation is frequently warranted. For example, Chapter VII of SOLAS concerns the carriage of dangerous goods, and will be incorporated in part. The main element of this chapter that is being incorporated is the IGC Code for gas carriers. The rest of Chapter VII is mostly operational in nature, not construction-related, and so are not incorporated into the proposed regulations. Another example is Chapter X of SOLAS, which deals with safety measures for highspeed crafts. This chapter is also partially incorporated (approximately 60%), as only the parts which deal with construction and equipment for high-speed craft are relevant to the proposed VCER. In terms of the domestic application of the Polar Code, which is Chapter XIV of SOLAS, the construction elements of the Chapter XIV will not be incorporated into the proposed VCER. Rather, it will be addressed as a stand-alone regulation. This is due to a timing issue, as the Polar Code will need to be incorporated quickly into the domestic regime, and the coming-into force of the proposed VCER will take a bit of time. Part 2 of the proposed VCER addresses elements that do not exist in SOLAS. For example, this section concerns specific Canadian requirements for elevators, towing equipment, etc. Part 3 describes the construction requirements for crew accommodation spaces. Currently, construction requirements for these spaces are in 4 different places: the Crew Accommodation Regulations, the Towboat Crew Accommodation Regulations, the Marine Occupational Health and Safety Regulations, and the Maritime Labour Convention (via indirect incorporation). The intent with the proposed VCER is to have all these requirements in one regulation. In terms of the Maritime Labour Convention, the intent is to incorporate these requirements, but to apply Canadian modifications when needed. Part 4 is administrative in nature, and details the consequential amendments, repealed regulations (which are the regulations which will become obsolete once the VCER comes into force) and the coming into force date of the proposed regulations. The consequential amendments outlines the modifications to a number of current regulations that will occur (such as the MOSH regulations, the Load Line regulations, etc.), in order to avoid conflicting requirements and update the reference sections.

5 In terms of repeals, this part lists the 6 regulations which will be rendered obsolete once the proposed VCER comes into force (i.e. the Hull Construction regulations, the Marine Machinery regulations, etc.). A representative of BC Ferries asked if the proposed VCER will have sections which will address specific vessels, in order to consider the specific differences and needs of the various industry sectors and their vessel types. The chair responded that the intent is not to have a section for each vessel. The proposed VCER requirements will be applicable in general, and therefore mostly common to all vessel types, with a few exceptions. In order to determine these exceptions, TC plans to hold industry specific focus groups in order to address issues specific to certain vessel types. The chair responded that the intent is not to have a section for each vessel type, because most of the requirements are common to all vessels. However, TCMSS intends to have discussions with each industry sector to ensure that any particularities which need to be addressed are captured. TCMSS expects the end result of these consultations to lead to a few modifications within the proposed VCER, but not to result in the addition of sections for specific vessels. A representative from the Carran group asked how the IGF Code will be addressed in the proposed regulations. The chair responded that the IGF Code, which will come into force in January 2017, is already incorporated by reference into the proposed VCER, as the IGF Code is a part of the SOLAS Chapter II-1 A representative of Algoma asked for clarification about whether the damage stability and permanent means of access requirements will apply to non-solas vessels. The chair responded that there will be certain non-solas vessels to which these requirements will not be applicable, such as the Short Sea Shipping vessels (also known as Lakers). 4. REVIEW OF THE DRAFT PROPOSED CANADIAN MODIFICATIONS TO SOLAS TCMSS presented a brief overview of the draft proposed Canadian modifications to SOLAS (i.e. the Canadian Supplement) that are associated with the proposed VCER. TCMSS proceeded section by section through the Canadian Supplement, and highlighted a number of examples to enhance stakeholder understanding of the Canadian Supplement. For instance, TCMSS noted that for regulation 13 of SOLAS, which concerns watertight doors below the bulkhead deck, SOLAS describes only one type of watertight door known as a sliding door. The current domestic regulations allows for more types of watertight doors, so this SOLAS requirement will be adjusted by the Canadian

6 modification to fit the realities of the domestic regulatory regime. Another modification relates to external openings in cargo vessels (i.e. 15-1). This modification consists of an addition to the current requirements of SOLAS. Although this modification is not required by SOLAS, TCMSS intends to continue to require it, as it has been an important part of the domestic regulatory regime for some time. Other modifications to SOLAS deal with bilge pumping arrangements (i.e. 35-1). For example, in the current domestic Marine Machinery regulations, which outline bilge pumping requirements, vessels are separated into various groups (or categories) which have varying levels of associated requirements based on a number of criteria (i.e. vessel size, proximity to shore). Canadian modifications to bilge pumping arrangement requirements outlined in SOLAS will bring the requirements in line with what is currently outlined in the domestic regulatory regime. In terms of regulation 42, the modification brings the associated electrical standard requirements in line with the current requirements of the Canadian regulatory regime (specifically, the electric standards TP 127). The chair also noted, as a sub-point to regulation 42, that it involves clarification of the damage area location, in terms of clarifying intent and expectations. Regulation 7, which concerns personal flotation devices, was modified as it presented a possible contradiction for the Canadian fleet. SOLAS requires a fixed amount of lifejackets, whereas in the current domestic regulation, the clause states everyone must have properly fitting lifejackets. In addition, it is stated that the operator is ultimately responsible for ensuring that everyone on-board must have a properly fitting lifejacket. The modification associated with regulation 20 entails a transition clause regarding life raft requirements. In the current regulations for lifesaving equipment, there is a provision that predates the change in SOLAS, and which allows, in certain specified cases, life rafts to be extended to 2 years between service. Currently, IMO has put forth a new standard for the life rafts, and created a category of life rafts that are tested and certified (or type approved ) for extended service. The chair noted that this is a transitional clause which will continue to allow our previous 2-year time period for certain cases, but will gradually align with the SOLAS requirement that a life raft must be certified for extended service in the future. A representative from ABS asked what will happen with TP 15211, to which Luc Tremblay replied that TP will ultimately disappear when the VCER comes into force. A representative from BC Ferries asked if specifications related to a safe return to port should be included. The chair responded that this would entail an amendment to

7 Chapter II-2 of SOLAS, and that it is a good point worth consideration on TCMSS s end. 5. REGULATORY UPDATE AND REVIEW OF DRAFTING INSTRUCTIONS VESSEL FIRE SAFETY REGULATIONS The chair presented a status update on the Vessel Fire Safety Regulations (VFSR), noting that these regulations were pre-published in the Canada Gazette Part I (CG1) on February 6th, 2016, with a 60 day comment period allotted to stakeholders for input on the proposed regulations. The deadline for the 60 day comment period was April 6th, The chair gave a brief overview of the regulation s structure, noting that the VFSR are applicable to vessels 24 meters in length and above, as well as vessels that are between 15 GT and 24 meters in length. The structure of the VFSR is as follows: Part 1 concerns vessels above 24 meters in length; Part 2 deals with reduced structural fire protection requirements for certain vessels above 24 meters; Part 3 concerns vessels between 15 GT and 24 meters in length; and Part 4 entails the administrative aspects of the regulations. It was noted that, since pre-publication in CG1, changes have been written into the regulation with input from the Department of Justice, and are currently being reviewed by the jurilinguists. The VFSR will then be examined by legal reviewers, and TC will subsequently address any further questions from the Department of Justice. The final step will be to obtain Treasury Board approval to proceed to publication in Canada Gazette Part 2, which will bring the VFSR into force on the date of publication. It is expected that the Vessel Fire Safety Regulations should receive Treasury Board approval for final publication in CG2 publication by Fall Attendees will be notified before publication of the Vessel Fire Safety Regulations in CG2. The chair then proceeded to review the changes to the VFSR, which were based on stakeholder comments that TC received following publication of the VFSR in CG1, as well as other needed changes that TC identified. For example, it was noted that the definition for Air Cushion Vessels was removed from all parts of the regulation, since it is a type of highspeed craft and a definition is already provided for high-speed craft. Additional examples of proposed changes include, but are not limited to, the following: A clarification involving the removal of details about an attachment procedure for fire insulation and the inclusion of a reference to the approval certificate, in addition to the manufacturer s instructions (reference 1.3); removal of Canadian modifications to SOLAS regarding trunks and ducts due to new SOLAS requirements (i.e. amendment to SOLAS regulation 9.7) which now mirror existing Canadian modifications, thereby eliminating the need for these modifications (items 113 and 124); and a clarification involving ventilation requirements for cargo vessels which notes that this requirement

8 applies to stairways serving more than one deck (item 123.3). TCMSS also reviewed certain stakeholder comments and proposed changes which were not retained, and explained the reasons for this non-retention. For example, one stakeholder s concern of an overlap between the VFSR and the Hull Construction Regulations does not actually present a concern, as the Hull Construction Regulations will be repealed with the coming-into-force of the VFSR. A representative of BC Ferries asked if requirements related to a safe return to port are included in either the VCER or the VFSR, as per Chapters II-1 and II-2 of SOLAS. The chair responded that safe return to port requirements need to be in both the VCER and the VFSR, because it is present SOLAS Chapters II-1 and II-2. However, it will remain clear that these requirements will not be applied to vessels with a Near Coastal Voyage 2 (NC2) voyage classification. 6. UPDATE ON IMO WORK RELATING TO CONSTRUCTION AND EQUIPMENT TCMSS provided an update on the work items being conducted at IMO. It was explained that international marine conventions, codes and other instruments are ultimately drafted by the IMO, although input from stakeholders (such as TC) is considered. It was also noted that since most domestic marine safety regulations are based on IMO instruments, with modifications as appropriate, it is important for stakeholders to be aware of the work items occurring at this international level. The IMO work items that were presented related to construction and equipment issues that are handled by the Marine Safety Committee (MSC) and its sub-committees, such as the Sub- Committee on Ship Systems and Equipment (SSE); the Sub-Committee on Ship Design and Construction (SDC); and, the Sub-Committee on Carriage of Cargoes and Containers (CCC). It was explained that the MSC meets 3 times every 2 years, and each of the sub-committees meet once a year. An overview of the work done at the Ship Design and Construction (SDC) sub-committee was provided. SDC 3 was held in January 2016, with the next meeting (SDC 4) scheduled for February 13-17, The relevant work items of SDC 3 included (but were not limited to): Draft amendments to part B of the 2008 IS Code on Towing, Lifting and Anchor Handling Operations were agreed upon and will be submitted to MSC 96 for approval; Amendments to SOLAS chapter II-1 and associated guidelines on damage control drills for passenger ships (i.e. draft amendments to SOLAS chapter II-1 on subdivision and damage stability regulations were completed and slated for approval at MSC 96, etc.);

9 Development of draft Guidelines on Safe Return to Port for Passenger Ships (i.e. draft revised guidelines were finalized by the working group, and this update of MSC.1/Circ.1400 will be submitted to MSC 96 for approval); Guidelines for the Use of Fibre Reinforced Plastic within Ship Structures (i.e. correspondence group was established to assist the development of interim guidelines for the use of Fibre Reinforced Plastic (FRP) elements within ship structures. The group will report back to SDC4); Amendments to SOLAS and FSS Code to make evacuation analysis mandatory for new passenger ships, and review of the recommendation on evacuation analysis for new and existing passenger ships, which included: o A discussion on the methods and criteria used to ensure the accuracy of the evacuation analysis; o An agreement that changes should not apply to passenger vessels which conduct voluntary evacuation analysis as mandated by SOLAS, or to other passenger vessels which conduct voluntary evacuation analysis in accordance with previous MSC Circulars; o The scheduling of a discussion on the definition of open deck area for SDC 4. A representative of BCCTS asked what evacuation analysis is currently used by TCMSS, and if a brief description, as well as how to access more info about the strategy, could be provided. The chair responded that for vessels subject to the current regulations of the Canada Shipping Act, there is no mandatory evacuation analysis. There is a performance requirement based on the two steps of evacuation, which are (1) evacuation, and (2) abandonment. It is mandatory that each of these steps must be completed in 30 minutes. Abandonment time is based on the specification of equipment used to abandon the vessel (i.e. the capacity of chutes, slides, etc.). The prescribed evacuation time of 30 minutes is based on travel time needed to reach the muster station from the initial evacuation signal. However, there is no evacuation method specified in the current Canadian regulations. Most new vessels built in the past 3 years have been constructed to the Alternative Regime, and if these vessels are subject to the SOLAS regime, they will be subject to the IMO circular for evacuation analysis. Development of safety standards for the carriage of more than 12 industrial personnel on board vessels engaged in international voyages: o Expert group made eight (8) recommendations for consideration at MSC 96 (e.g. Amendments of existing Special Purpose Ship Code, Consider industrial personnel as passengers with special risk profiles, etc.); Development of guidelines for offshore service craft used in wind farm service. The most recent Ship Systems and Equipment (SSE) sub-committee s meeting was held inmarch The next SSE meeting will likely be held in March The agenda work itemsof the March 2016 meeting included (but were not limited to):

10 Development of requirements for onboard lifting appliances and winches (in progress); Development of requirements for periodic servicing and maintenance of lifeboats and rescue boats, launching appliances and release gear (work completed, item slated for adoption at MSC 96); Revision of requirements for escape route signs and equipment location markings in SOLAS and related instruments; Revision of SOLAS regulations II-1/13 and II-1/13-1 and other related regulations for new ships (to be addressed at SSE 4). The sub-committee on Carriage of Cargoes and Containers (CCC) met in September 2015 to continue the work on the development of the international code of safety for ships using gases or other low-flashpoint fuels (IGF Code). The next CCC meeting will likely be held in September The agenda work items of the September 2015 meeting included (but were not limited to): Amendments to the IGF Code and development of guidelines for low-flashpoint fuels; The consideration of other low flashpoint fuels, with accompanying amendments to the IGF Code as necessary: o This next phase of development for the IGF Code will take into account the need to consider future proposals for the inclusion of additional fuels in the Code (ex: other low flash-point fuels such as methanol, ethanol, etc.). The target completion year for both these items is A summary of selected agenda items of the Marine Safety Committee held in June 2015 (MSC 95) was also presented. The items of the MSC 95 meeting included (but were not limited to): The International Code of Safety for Ships using Gases or other Low-flashpoint Fuels (IGF Code): o MSC 95 adopted IGF Code, which will enter in force on January 1st, 2017; The International Code for Ships Operating in Polar Waters (Polar Code): o MSC 95 continued the development of guidelines for a Methodology for Determining Limitations for Operation in Ice; o These IMO guidelines include the Polar Operational Limit Assessment Risk Indexing System (POLARIS); Testing arrangements for watertight compartments: o MSC did not approve the draft guidelines proposed by IACS and decided there was no need to amend SOLAS Regulation II-1/11. This work item is now considered to be closed; Draft amendments to SOLAS regulation II-1/22: o Approval obtained (in principal) for the amendment to II-1/22 regarding watertight doors that may be left open (i.e. deleted paragraph 22.4);

11 o Approved obtained, in principle, for guidance related to watertight doors on passenger ships which may be opened during navigation. A number of additional approvals were obtained, which include: Approval of MSC.1/Circ.1514 on Performance standard, functional requirements and system requirements for the assessment of smoke management systems; Approval of MSC.1/Circ.1515 on Revised design guidelines and operational recommendations for ventilation systems in ro-ro cargo spaces; Approval of MSC.1/Circ.1516 on Amendments to the revised guidelines for the maintenance and inspection of fire protection systems and appliance (MSC.1/Circ.1432) (which involve amendments related to the maintenance and testing of water mist, water spray and sprinkler systems). The selected agenda items for the next MSC meeting, scheduled for May 2016, were presented, which include: Proposed working groups on: o passenger ship safety; o goal-based standards; o carriage of industrial personnel; Adoption of amendments to SOLAS: o Chapter II-2 reg.13 Mandatory evacuation analysis; o Chapter II-2 reg.18 and FSS Code chapter 17 Helicopter facilities. Approval of the draft amendments to SOLAS chapter II-1 on subdivision and damage stability regulations. Approval (in principle) of the draft amendments to part B of the 2008 IS Code regarding vessels engaged in lifting and towing operations, including escort towing. Approval of MSC Circulars: o Unified interpretations of SOLAS chapter II-2; o Unified interpretations of chapters 5, 6 and 9 of the FSS Code; o Unified interpretations of SOLAS regulations III/6.4 and III/6.5, and section 7.2 of the LSA Code. Carriage of industrial personnel and the consideration of the options developed by members of SDC 3. The Chair concluded by encouraging stakeholders to provide their comments and input on the potential domestic impact of the IMO work items, in order for Canadian interests to be taken into account at the international level. It was also reiterated that it is important for the Canadian maritime industry to stay current with the work being done at IMO, as Canadian regulations increasingly incorporate IMO requirements as amended from time to time, both for Convention vessels and, to a notable extent, for Non- Convention domestic vessels.

12 7. PRESENTATION OF DRAFT INTERIM POLICY ON IGF CODE TCMSS then presented a first draft of TC s proposed interim policy related to the IGF Code, which is based on LNG policy. It was noted that the IMO completed work on the IGF Code last year, but the Code has not yet come into force internationally, as it is scheduled to do so on January 1st, Nationally, the IGF Code will not be in force until TCMSS has amended the relevant regulations. Therefore, in the interim, TC will adopt a policy that explains how to apply the IGF Code in Canada. This interim policy essentially states that the IGF Code can be used for domestic vessels, and outlines the necessary steps for application of the IGF Code to domestic vessels. The chair proceeded to go through the draft policy document, section by section. The first section describes the objective of the proposed policy, which concerns applying the IGF Code to Canadian vessels which are, for the most part, over 24 meters in length. The second section describes the policy statement, which outlines the regulatory prohibitions against LNG (or other low-flashpoint fuels) that are currently in place for Canadian vessels under the domestic regime (i.e. Marine Machinery Regulations). This section also explains that TC will accept, through the Marine Technical Review Board (MTRB), the use of all low-flashpoint fuels, if the IGF Code is followed alongside the other elements detailed in the interim policy s Annex (e.g. Canadian modifications). It then outlines the process for obtaining authorization (which is the same as the process for the Alternative Regime). Basically, until the relevant Canadian regulations are amended, the only way to obtain authorization is ultimately through an MTRB application, in addition to the application of IGF Code criteria and Canadian modifications in the policy s Annex. The third section deals with the scope of the proposed policy, which lists the types of vessels that this policy would apply to. The policy is mostly intended for vessels above 24 meters in length, though vessels below 24 meters could possibly apply this policy. However, vessels below 24 meters wanting to apply this policy will need to be assessed on a case by case basis. This policy will also apply to both new and existing vessels. For new vessels, the application is straightforward, as these vessels will be required to apply the SOLAS regime (the IGF Code is based on the assumption that the vessel is SOLAS compliant). For existing vessels which are converted to be able to use lowflashpoint fuels, the policy will not require the vessel to be reconstructed in order to be compliant with SOLAS. The technical details of how to address this particular scenario is described in the policy s Annex. The rest of the sections of the draft policy were quickly reviewed by the chair, and covered additional administrative points, such as authority, responsibility, other relevant documents, background information, definitions and date of application (which indicates when the policy will come into effect). The chair noted that, as this is

13 a first draft of the policy, stakeholder comments will be sought both internally and externally. Thus, no date of application has been set at this point. Once all comments have been received and considered, subsequent adjustments will be made if deemed necessary. After any such changes are implemented, the policy will then go through the formal approval process at TCMSS before being officially published. The technical annex of the policy was then reviewed, which contains clarifications and additions to the IGF Code criteria. The first part of the annex concerns existing vessels, and outlines a number of requirements. For example, it specifies that the machinery of existing vessels must meet the IGF Code requirements. It also notes that the converted space where the LNG system components are located must meet SOLAS Convention requirements for firefighting (Chapter II-2), and contains an exhaustive list of the spaces where Chapter II-2 requirements need to be applied. The annex also details requirements for vessels that have undergone conversions, such as undergoing vessel inclination tests afterwards. Additional sections of the annex consist of (but are not limited to): a formal addressment of uncertainties in the IGF Code; details concerning the risk assessment which is required by the Code (where the methodology of the risk assessment must be acceptable to the Recognized Organization); and training requirements for crew (which draws upon the STCW Convention). The floor was then opened for questions and comments. A representative of BC Ferries asked if it would be possible to make it more clear that that section 3.12 of the technical appendix involves modifications to the IGF Code. The chair responded that it is indeed clear that this section is a modification to the IGF Code, since it is listed in Part B of the annex, which is exclusively concerned with Canadian modifications to the IGF Code. A representative of the CSA group noted that industry is now seeing vessels that use their gases as both fuel and cargo, and asked for a clarification about which code addresses this scenario. The chair responded that this situation is already covered by the IGC code, which contains a provision about vessels which use cargo as fuel. A representative of Seaspan Ferries, inquired about section 6.5 of the IGF, concerning portable tank units on deck, and if there will be any related amendments. The chair responded that this scenario is different from bunkering. This representative of Seaspan Ferries then inquired about how TC will progress with further development of this interim policy, and if TC will be seeking input. The chair answered that TC will indeed be circulating the draft interim policy for input, and that the official process for stakeholder comments will be similar to the one used for regulations, where the draft policy will be circulated to both internal and external stakeholders with a requirement for comments by a specified time period. 8. OTHER BUSINESS

14 TCMSS discussed the BSI renewal project, and noted that TCMSS is now proceeding with Phase 2 of the project. A review was conducted to identify any outstanding BSI decisions that should be renewed under the MTRB regime to maintain an equivalency or exemption of a current regulatory requirement. Following this review, ARs should submit their application for a decision renewal no later than September 1st As of January 15, 2017, decisions issued under the BSI regime will not be applicable as an equivalency or exemption of the regulatory requirements for the vessel operations. The vessel may be subject to enforcement measures if not in compliance, or exempted, with regulations. TCMSS then discussed applications for renewal requirements and noted the intended changes to the process and program that are slated to be implemented by end of year. These changes would introduce a three (3) tier process, with Tier I being the stream involving simple applications and a simple template. Tier II is considered to be midstream as it involves applications which contain some moderate deviations/complications, and thus require input from regional panels. Tier III involves complex deviations requiring thorough examination and assessment. 9. TENTATIVE AGENDA ITEMS FOR THE NEXT NATIONAL CMAC MEETING TC encouraged the group to submit proposed agenda items for the next national CMAC meeting. The meeting was adjourned at 12:00.

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