Sometimes persistence pays off. In May 2026, the U.S. Coast Guard updated a work instruction for laid up and inactive vessels that provided much needed direction for determining if a small passenger vessel built before 1996 returning to service following a period where the certificate of inspection (COI) was surrendered or not maintained could be re-certificated as an existing vessel. Until this update, owners were generally told that if their COI lapses for any reason, their vessel would need to meet new regulations to be re-certificated. That is simply not true, and the revised work instruction backs up what has been my interpretation of the regulations since 1996.
One sentence in the revised work instruction sums up the clarity PVA has been seeking for years:
“A previously certificated vessel does not automatically qualify as an ‘existing’ vessel, nor does it automatically become a ‘new’ one when returning to service.” [Emphasis added]
Existing Or New Vessel?
When the subchapter T regulations were updated and Subchapter K was created in 1996, there were provisions for existing vessels to be grandfathered especially where construction and arrangement, machinery, and electrical installations were concerned. The Coast Guard determined it was not practical physically or economically to require a fleet of 5,600 vessels to meet the new regulations. Updates to firefighting and lifesaving were addressed over a phase-in period of three to five years.
Determining if a small passenger vessel is a new or existing vessel has direct bearing on what regulations are applicable. As such, a couple definitions out of 46 CFR 115.400 (Subchapter K) and 175.400 (Subchapter T) are in order.
“Existing vessel” means a vessel that is not a new vessel.
New vessel means a vessel:
- The initial construction of which began on or after March 11, 1996;
- Which was issued an initial certificate of inspection on or after Sept. 11, 1996;
- Which underwent a major conversion that was initiated on or after March 11, 1996; or
- Which underwent a major conversion that was completed and for which an amended Certificate of Inspection was issued on or after Sept. 11, 1996.
So, it is clear to me and has been the argument during numerous reconsideration and appeals cases, that if the vessel held a Certificate of Inspection (COI) before the dates in 1996 above, it should be treated as an existing vessel when brought back into service unless it underwent a “major conversion.” There are other considerations which are covered below where a small passenger vessel returning to service may be required to meet new regulations.
Yet another definition.
“Major conversion” means a conversion of a vessel that, as determined by the commandant:
- Substantially changes the dimensions or carrying capacity of the vessel;
- Changes the type of vessel;
- Substantially prolongs the life of the vessel; or
- Otherwise so changes the vessel that it is essentially a new vessel.
The commandant has delegated the responsibility of determining a major conversion to the commanding officer of the Marine Safety Center (MSC). Only the MSC can make a major conversion determination. It is important that a vessel owner or operator engage the Coast Guard early in the process of refit or modifications to a vessel.
Some examples where a major conversion determination could be made include:
- Converting a non-passenger carrying vessel to a passenger or small passenger vessel
- Adding a mid-body
- Gutting a vessel and replacing/updating all components
Previous Confusion
The Coast Guard’s Marine Safety Manual, Volume II, provides language cited in the work instruction stating “A vessel whose COI has lapsed may be required to meet inspection for certification requirements as a new vessel as determined to be appropriate by the OCMI. Per reference (b) [the Marine Safety Manual], the OCMI may require a formerly certificated vessel to be inspected as a new vessel.” This has resulted in OCMIs defaulting to the new vessel determination more often than not.
Fortunately, we now have qualifying language that follows the above guidance “A previously certificated vessel does not automatically qualify as an ‘existing’ vessel, nor does it automatically become a ‘new’ one when returning to service. This status will be determined by the OCMI, who will consider all relevant factors, particularly structural modifications or extended periods out of service.”
Returning A Vessel To Passenger Service
If the owner or operator of a vessel with a previously surrendered or lapsed COI seeks to return the vessel to service, they need to submit an Application for Inspection of U.S. Vessel (Form CG-3752) to the local OCMI and schedule a Coast Guard Marine Inspector to attend the vessel. If the vessel has a new owner, that owner should notify the local OCMI of the change in ownership.
The local OCMI will determine applicable standards prior to issuing of a new COI. According to the revised work instruction, when determining the applicability of existing or new standards for a previously laid-up vessel, the local OCMI should consider the following:
- Existing or planned modifications that may result in the determination of a major conversion, per 46 U.S.C. § 2101;
- Status of unserviceable equipment and whether it can be replaced “in kind”;
- Applicability of new requirements for “all vessels,” regardless of build date;
- Any law, regulation, or Coast Guard policy that requires the application of current standards; and
- If it is practicable for the alterations or modifications to meet current requirements.
In some past instances, the local OCMI has allowed a vessel to be modified such that only the newly added components (deck, bulkheads, machinery, etc.) need to meet new regulations, while the rest of the vessel can maintain existing vessel status. This has been a good compromise and is consistent with the revised work instruction.
Changes/Alterations In Laid-Up Status?
The Coast Guard needs to know what was done to the vessel, if anything, while not certificated. Did the previous owner go down to Home Depot and re-wire the boat with Romex cable, move bulkheads, and wood panel the interior like a 1970s den?
If alterations were made during laid up status, the local OCMI will coordinate with the owner and MSC to determine if the owner must submit any plans to the Coast Guard for review or approval to demonstrate compliance with applicable standards as determined by the OCMI prior to recertification.
If the owner or operator of a vessel requests multi-service endorsements that were not on the pre-laid up COI, the vessel will have to meet current regulatory standards for each inspection subchapter (e.g., Subchapters M or T) that was not previously endorsed on the COI.
Replacement In-Kind
As stated above, the OCMI will consider the ability unserviceable equipment to be replaced “in kind.” The revised work instruction in footnote 11 defines replacement in kind as follows:
“Replacement in kind means replacement of equipment or components that have the same technical specifications as the original item and provide the same service. If the replacement item upgrades the system in any way, the change is not a replacement in kind.”
This definition is taken from 46 CFR 136.110. The Coast Guard refers to this general definition of “replacement in kind” for all vessels covered in the work instruction, including passenger and small passenger vessels.
Replacing equipment in kind has the advantage of not needing to submit plans to the OCMI or MSC. However, swapping out a 25 GPM Jabsco bilge pump with a 44 GPM Jabsco pump is not replacement in kind. Putting a higher output electric motor on the end of an existing prime mover is not replacement in kind.
Conclusion
We hope to see more determinations made by local OCMIs consistent with the new clarified guidance so we can spend less time working through the reconsideration and appeals process. Unlike other inspection Subchapters, Subchapters K and T provide clear regulatory footing for an operator to bring a small passenger vessel back into certification under the regulations she was built and certified to prior to going out of service.
Eric Christensen is the PVA Director of Regulatory Affairs & Risk Management