JANUARY 2016 NEWSLETTER TABLE OF CONTENTS

OMSA 2016 Membership Renewal 2 OMSA Members Approve Board of Directors with New Addition 2 Regulatory Deadlines 3 US Coast Guard News 4 National Maritime Center News 5 Other News 6 International News 7 OMSA Regulatory Summary 8 Louisiana Governor John Bel Edwards Gives Keynote Speech at OMSA General Membership Meeting 9 Ad Valorum Tax Credit for OSV’s At Risk in Governor’s Proposed Budget 9 Non-Profit Group Releases Anti-Jones Act Report 10 Senator John McCain Files Anti-Jones Act Amendment to Omnibus Energy Bill 10 Capitol Hill Visits and Crawfish - Come to Washington D.C. With OMSA! 10 Save the Date – 2nd Quarter OMSA Membership Meeting – Wednesday, April 27, 2016 11 OMSA Member Website News 11 Newsletter Sponsor: Advanced Logistics, LLC 12 Newsletter Sponsor: Kongsberg Maritime 13 OMSA Newsletter Sponsorship Opportunities 14 2016 OMSA Meetings & Events Calendar 15

OMSA 2016 Membership Renewal By: Ashley Smith

It’s that time of year! As a reminder, OMSA Membership runs from January 1 – December 31. The membership renewal and auto-invoicing emails went to the company ACCOUNT HOLDERS - the ONLY person who can complete the online renewal process. If you are the company Account Holder, or point of contact for renewals, and have not received an email from me, please let me know.

OMSA membership renewal is ONLINE and the invoice is auto-generated. Please remember: · Your membership renewal invoice should be generated and paid prior to January 1, 2016. · If dues are not paid in full by January 31, 2016 a 10% penalty fee will be added. · If dues are still not paid by March 31, 2016, your membership will be dropped. · In order to reinstate your membership after being dropped, all past dues must be paid and the OMSA Board of Directors must approve the renewal. Thank you in advance for your attention to this matter. Please don’t hesitate to contact me with any additional questions or concerns!

OMSA Members Approve Board of Directors with New Addition By: Aaron Smith

On Wednesday, January 27, 2016 OMSA held its 1st Quarter General Membership Meeting. At this meeting the Association’s Members voted to confirm the following individuals to the OMSA Board of Directors for an additional two year term.

Mr. Ben Bordelon, Mr. Kenny Nelkin, Mr. Barry Graham, Mr. Lee Orgeron, Mr. Shane Guidry, Mr. Court Ramsay, and Mr. Todd Hornbeck, Mr. Lynn Strahan.

Additionally, Mr. Blake Miguez was elected to his first term as a member of the OMSA Board of Directors. Mr. Miguez is President and CEO of SeaTran Marine, LLC and a lifelong resident of Iberia Parish. Mr. Miguez is also a lifelong member of the offshore service industry having worked alongside his father Steve and grandfather J.O. Neuville (founder of Neuville Boat Works).

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Mr. Miguez is also a Member of the Louisiana House of Representatives, representing District 49 in Baton Rouge. In this role, Mr. Miguez represents portions of Iberia and Vermilion Parishes, he has held this office since February 2015. Mr. Miguez grew up a competitive shooter paving the way for him to become the champion in the state of Louisiana, U.S. National, and World Handgun Champion. He has been featured on the History Channel’s Shooting USA, Sportmans Channel’s Hot Shots, and Pursuit Channel’s Trigger Time. The OMSA staff greatly appreciates Mr. Miguez’s willingness to serve our organization and looks forward to working with him.

Regulatory Deadlines By: Richard Wells

12/21/15 Oil Liability Limits increased (See details in US Coast Guard News below). 01/01/16 IMO MARPOL Annex VI compliance with Tier III NOX emission standard by diesel engines

installed on ships built on or after 1/1/16 operating in the North American or the U.S. Caribbean Sea Emission Control Area (ECA).

01/20/16 Domestic Passenger vessels must install VHF-FM DSC radios unless in Alaskan waters. (See more details in link above and US Coast Guard News below).

02/26/16 All vessels (primarily those under 200 tons) must replace existing life floats with IBAs or Liferafts (Installation is on hold pending final passage of H.R. 4188 Coast Guard Authorization Act of 2015 See section 301 of the Authorization Act link for details. For now, just send an email/fax/letter to the OCMI that issued the vessel COI saying “We are aware of the contents of CVC Policy Letter 15-05. We are actively planning our response, but are awaiting final action on H. R. 4188 before executing our plans.” Send this acknowledgement to the OCMI by February 26, 2016, unless OMSA announces otherwise before then.)

03/01/16 Expanded AIS carriage compliance deadline. 12/31/16 Deadline for existing STCW mariners to submit gap closing training or apply for original or

upgrades to STCW credentials under the pre-2010 STCW amendment requirements. mid-2017 IMO Ballast Water Management Convention expected to be in effect (initial reports that the BWM

Convention had been ratified were premature).

Also see the more comprehensive Regulatory Summary attached to this newsletter.

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U.S. Coast Guard News

By: Richard Wells

In case you were distracted by the holiday celebrations and didn’t see them last month, we are repeating the two short-notice regulatory changes that were initially published in December. VHF-FM Radio Upgrades - The Coast Guard issued CG-CVC Policy Letter 15-06 to advise the maritime industry that all inspected vessels carrying more than 6 passengers must upgrade the required FM radio on that vessel to include Digital Selective Calling (DSC) capability. If not already in compliance, these vessels must comply by January 20, 2016. The letter is applicable to vessels operating on the coastal waters of the United States:

• Excluding: Alaska • Including: Hawaii; Puerto Rico; Guam; the Virgin Islands of the United States; and the Northern Mariana

Islands of Saipan, Tinian, and Rota.

The Policy Letter is located at: www.uscg.mil/hq/cgcvc/cvc/policy/policy_letters/CVC/CG-CVC_pol15-06.pdf Oil Liability Limits Increased - The USCG published a final rule increasing the limits of liability for vessels (over 300 gross tons), deepwater ports, and onshore facilities, under the Oil Pollution Act of 1990, to reflect increases in the Consumer Price Index. In addition, this final rule clarifies applicability of the OPA 90 vessel limits of liability to edible oil cargo tank vessels and tank vessels designated as oil spill response vessels. See full details at: https://federalregister.gov/a/2015-29519 and check with the organization providing your evidence of financial responsibility under 33 CFR 138.80 to ensure you have the correct coverage immediately. USCG Homeport site upgrade and downtime – The USCG Homeport Internet Portal was established in 2005 to facilitate compliance with the requirements in the Maritime Transportation Security Act of 2002, for secure information dissemination, advanced collaboration, electronic submission, and approval for vessel and facility security plans, and complex electronic and telecommunication notification capabilities. The Coast Guard will launch Homeport 2.0 on January 29, 2016 in order to provide a better user experience and improve the security of user information. Upgrades will include fewer site navigation menus and more efficient and secure search functions. Although most features will be available as soon as the new site launches, user access to a few areas will be interrupted. Details of Homeport specific feature downtime and suggested alternative access are at: www.uscg.mil/hq/cg5/cg544/docs/Homeport%20Application%20Deployment%20Schedule.pdf and http://mariners.coastguard.dodlive.mil/2015/11/27/11272015-homeport-2-0-news-andinformation/? utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+MaritimeComm ons+%28Maritime+Commons%29

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USCG Proceedings - The USCG has posted the Proceedings of the Marine Safety & Security Council at http://www.uscg.mil/proceedings/. This edition is entitled "Improving Maritime Safety". USCG Grants Oilers 12-hour Credit – Due to the efforts of the OMSA membership, S. 2444, the “Howard Coble Coast Guard and Maritime Transportation Act of 2014” corrected the text in 46 U.S.C. 8104 that limited the service of Oilers to no more than 8 hours in a day. But the National Maritime Center still could not give Oilers credit for working a 12-hour day until 46 CFR 15.705 was also amended to match the law. The USCG has now published a Final Rule to make this change. The rule allows oilers serving on offshore support vessels, towing vessels, and barges, while on voyages of less than 600 miles, to be divided into at least two watches. The change will increase the sea service credit these mariners may earn for each 12-hour period of work from one day to one and a half days. The rule went into effect on January 25, 2016. GPS Interference Warning - The USCG has posted a Navigational Safety Alert at www.uscg.mil/hq/cg5/cg545/alerts/0116.pdf reminding mariners of the dangers of relying solely upon global navigation satellite systems (GNSS), such as GPS, for navigation and positioning. These systems are subject to natural, accidental, and intentional interference. The USCG reminds commercial vessel operators, that should your navigation or other equipment onboard (e.g. AIS) be impaired as a result of a disruption or interference, this should be reported to the nearest U.S. Coast Guard Captain of the Port, District Commander or Vessel Traffic Center as soon as possible; and, await further directions (per 33 CFR 164.53). 2016 Light List Availability – The electronic version of the 2016 Light List as well as the weekly corrections are now available from the USCG Navigation Center web site at: www.navcen.uscg.gov/?pageName=lightLists. The US Government no longer prints or sells paper versions of the Light List. Paper versions of the Light List may be available for purchase from nautical publication vendors if needed. 2016 Random Drug Testing Rate - The USCG has set the calendar year 2016 minimum random drug testing rate at 25 percent of covered crewmembers. The minimum random drug testing rate is effective January 1, 2016 through December 31, 2016. Marine employers must submit their 2015 Management Information System (MIS) reports no later than March 15, 2016. This low testing rate is a result of positive random drug test results for mariners below 1% as reported on the 2014 MIS reports. Good work! Details are at: www.gpo.gov/fdsys/pkg/FR-2016-01-12/html/2016-00341.htm

National Maritime Center News

By: Richard Wells Mariner Credential Submission – The USCG National Maritime Center (NMC) posted a reminder that all applications for a Merchant Mariner Credential or Medical Certificate must be submitted to a Regional Examination Center (REC) only. The NMC is seeing an increase in applications sent to places other than an REC

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recently. All Merchant Mariner Credential and Medical Certificate applications (CG-719 series) may be submitted electronically, by mail, fax, or in person at any REC. Applications not submitted via an REC may be returned to the applicant for proper routing. For procedures on submitting an application, or to find the nearest REC, please visit the NMC website and click the REC button, Additional details are available at: www.uscg.mil/nmc/announcements/pdfs/mmc_and_mc_application_submittal_notice.pdf Medical Examination Form Extension - The USCG National Maritime Center (NMC) issued a notice at www.uscg.mil/nmc/announcements/pdfs/med_cert_apps_719k.pdf stating that, until further notice, it will continue to accept applications for medical certificates submitted via form CG-719K Rev (01-09) with an expiration date of June 30, 2012. Previous policy was to only accept this version of these forms if signed by a doctor before December 31, 2015. NMC Performance Report - The USCG National Maritime Center (NMC) released their Merchant Mariner Credential (MMC) Performance Report for December. The number of applications in processing increased to 2,784. The number of new applications was higher than the number of credentials issued. Average total gross processing time is unchanged at 41 days. Mariners may submit renewal applications 6 to 8 months before expiration as the new MMC issuance date will match the expiration date of the current MMC (no license creep). Normally the number of MMC applications submitted for processing increases from December to late spring due to Maritime Academy graduates and charter boat operators applying for MMCs for use in the summer. In addition 2016 will see increased numbers of applications due to the STCW gap closing requirements that must be met before 2017. So OMSA urges mariners holding USCG MMCs that expire in 2016 to apply extra early for renewal of your credentials. Go to: http://www.uscg.mil/nmc/reports/performance/pdfs/2015/performance_2015.pdf for full details. NMC Med Cert Performance Report – The NMC is also reporting their performance issuing mariner medical certificates. Full details are at: http://www.uscg.mil/nmc/reports/performance/pdfs/2015/PerformanceReport_MEDCERTS.pdf

Other News By: Richard Wells

MARAD Small Shipyard Grant Program - The Maritime Administration (MARAD) announced that under the Small Shipyard Grant Program, there is $4.9 million available for grants for capital and related improvements to qualified shipyard facilities that will be effective in fostering efficiency, competitive operations, and quality ship construction, repair, and reconfiguration. Applications must be received by February 16, 2016. Full details are at: www.gpo.gov/fdsys/pkg/FR-2016-01-06/pdf/2015-33315.pdf and the limitations and provisions should be carefully studied.

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International News By: Richard Wells

IMO BWM Convention NOT Ratified – Despite the IMO Secretary General’s announcement last month that the Ballast Water Management (BWM) Convention will enter into force worldwide, the IMO has now confirmed that the Convention is still short of the required tonnage to go into effect. However, Panama has announced that they intend to ratify the BWM Convention in the next few months. Panama will provide sufficient tonnage to put the Convention into effect, presumably in early to mid-2017. OMSA members are reminded that the USCG Ballast Water regulations that went into effect in 2014 differ from the IMO requirements in that the USCG testing and approval process for BWM equipment is significantly different than the IMO requirements. For this reason, very careful research is suggested before deciding on what BWM equipment to install on a vessel operating outside US waters to avoid having to replace that BWM system when returning to US waters. Please see additional details in article “Coast Guard Posts Blog Series on Ballast Water Management” in the December 2015 OMSA newsletter. ICS Crew Guidelines - Maritime employers and labor have joined forces to publish new ‘Guidance on Eliminating Shipboard Harassment and Bullying’. The Guidelines, developed by the International Chamber of Shipping (ICS) and the International Transport Workers’ Federation (ITF), can be downloaded from the OMSA website at: https://d3lut3gzcpx87s.cloudfront.net/down/eJwFwQ0KgCAMBtAbbaLLoNt8!YNRprRB0Ol7r5nNjVmP61TDY6SB0PGNG69SGp2XiHWPgC@VO!8kiNScSqSZ6w!yKRTG/guidance-on-eliminating-shipboard-harassment-bullying.pdf

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OMSA Regulatory Summary

(rev 01/28/16)

Pending Significant Vessel Rulemakings

2016 IMO Ballast Water Convention ratification. In effect mid-2017

2016? USCG TWIC Reader Final Rule (FR)

2016? USCG Subchapter M (Towing Vessel Inspection) FR

2016? USCG Commercial Diving on the OCS Supplemental Notice of Proposed Rule Makin g NPRM) or FR

2016? USCG SEMS for OCS vessels NPRM

2016? USCG Training of Personnel on MOU & OSV on the OCS NPRM

2016? USCG Design, operation, training, & manning standards for vessels using DP on the US OCS NPRM

2016? USCG Subchapter N (OCS Ops) regulation update NPRM

2017? USCG Subchapter L (OSV) regulation updates NPRM

????? US Senate Ratification of ILO Maritime Labor Convention

Recent/Upcoming Vessel Compliance Deadlines

12/21/15 USCG OPA-90 Oil Spill liability limits increased

01/20/16 USCG Domestic Passenger vessels must install VHF-FM DSC radios, unless in Alaskan waters

01/01/16 IMO Bridge Navigational Watch Alarm System (BNWAS) Existing SOLAS cargo vessels (built before 7/1/02) 3000+ GT 1/1/16, 500–3000 GT 1/1/17,150–500 GT 1/1/18 Delay per MSC.350(92)

01/01/16 IMO MARPOL Annex VI compliance with Tier III NOx emission standard by diesel engines in ships built on or after 1 /1/16 and are operating in the North American (Gulf of Mex) or the U.S. Caribbean Sea ECA

02/22/16 USCG revised BWM Reporting & Recordkeeping FR effective

02/26/16 USCG All Vessels equipped with life floats must replace existing life floats with IBAs or Liferafts (On hold, pending Congressional action may change this. Contact OMSA before purchasing liferafts.)

03/01/16 USCG AIS expansion Final Rule (FR) <A self-propelled commercial vessel of 65 feet or more in length, or a towing vessel of 26 feet or more in length and more than 600 horsepower must now carry AIS>

01/01/17 IMO STCW 2010 Amendments & USCG STCW FR in force <STCW gap closing training deadline>

01/01/17 IMO Polar Code effective for new ships

01/01/17 IMO Code of Safety for Ships using Gases or other Low-flashpoint Fuels (IGF Code) effective for new ships

Early 2017 ILO MLC06 proof of financial responsibility for seafarer abandonment, disability or death now required

Mid-2017 IMO Ballast Water Management (BWM) Convention expected to be in effect

12/18/17 EPA sVGP effective (small commercial vessel less than 79 feet) <delayed from 2014>

01/01/18 IMO Polar Code effective for existing ships at next intermediate or renewal survey

07/01/18 IMO ECDIS Existing cargo ship over 10000 GT installed by first survey after 7/1/18

01/01/19 USCG MMC national endorsement grandfather period ends

01/01/20 IMO MARPOL new vessel equipment containing HCFCs (which include R22, R123, R401A, R401B, R402A, R402B, R408A, and R409A) are prohibited

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Louisiana Governor John Bel Edwards Gives Keynote Speech at OMSA General

Membership Meeting By: Sarah Branch

Newly-elected Louisiana Governor John Bel Edwards (D-Amite) spoke to the OMSA 1st Quarter General Membership Meeting on Wednesday, January 27, 2016. Mr. Edwards spoke about his hope and excitement for the future of Louisiana, the importance of job training, and the budgetary shortfalls facing the state. The Governor did not hide the fact that his budget proposal would cause the taxes of the offshore vessel industry to increase. While this proposal is unpopular with the OMSA Membership and will be opposed by the Association during the upcoming special legislative session, the OMSA staff is grateful that the Governor agreed to speak to our members and talk honestly about the challenges facing our state. We look forward to working with the Governor over the course of his term and seeking ways we can find common ground with him. Again, OMSA greatly appreciates Governor Edwards taking the time to speak and pledging to work with us to figure out a solution that makes sense for the offshore vessel industry and Louisiana.

Ad Valorum Tax Credit for OSV’s At Risk in Governor’s Proposed Budget

By: Sarah Branch

On January 19, the Governor John Bel Edwards (D-Amite); Secretary of Revenue Kimberly Robinson; and Commissioner of Administration Jay Dardenne outlined their proposal to fill a $750 million hole in current Fiscal Year’s budget (year ending June 2016), and an additional $1.9 Billion deficit for the coming Fiscal Year. As feared, the Governor proposed a “suspension” of the state credit for parish ad valorem tax on offshore vessels. What is not yet clear is the meaning of “suspension,” as there are many ways this term can be defined. OMSA is seeking clarity on this issue and will update the membership as the issue develops. Additionally, the Governor’s proposal includes a reduction in the refundable credit for coming fiscal years. This suspension/reduction in the state credit will most certainly adversely effect all offshore vessel operators sailing out of Louisiana. OMSA has developed a working group comprised of certified public accountants (CPA’s), attorneys, and other tax professionals to create an informed defense of our tax credit. For more information on this group or its efforts, please contact OMSA President Aaron Smith.

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Non-Profit Group Releases Anti-Jones Act Report

By: Sarah Branch A new non-profit called The Alliance for Innovation and Infrastructure (Aii) released a report entitled The Jones Act: Protectionism vs. Global Trade on January 19, 2016, that argues the Jones Act “severely restricts an otherwise perfect opportunity to improve the U.S. trade imbalance and generate economic growth.” The report is riddled with fabrications, blatant factual errors, and almost humorous misunderstandings of our industry. What is not funny is that this group is well-financed and obviously intent on taking down the Jones Act. As a member of the American Maritime Partnership (AMP), OMSA are demanding a retraction of the report and have taken steps to ensure all major media outlets and Congressional offices understand what little worth this report carries. We hope this step shall ensure the report is thoroughly discredited and debunked before it can influence policy or public opinion. To read AMP’s response to the Aii report in Maritime Executive, please go here. To read Aii’s white paper, please go here.

Senator John McCain Files Anti-Jones Act Amendment to Omnibus Energy Bill By: Sarah Branch

As part of the omnibus energy bill (S. 2012, the Energy and Policy Modernization Act of 2015 currently being considered by the U.S. Senate, Senator John McCain (R-AZ) has submitted an anti-Jones Act amendment that would eliminate the U.S. build requirement for an “oil or gas tanker vessel.” The amendment is one of more than 200 filed for consideration on the energy bill that could be voted on as early as next week. Senator Maria Cantwell (D-WA) and Senator Lisa Murkowski (R-AK) are sponsors of the bill and have both pledged to oppose support the amendment. OMSA has engaged with multiple Senators and their staffs to ask that they also oppose Senator McCain’s amendment. We will provide updates as the bill goes through the Senate.

Capitol Hill Visits and Crawfish - Come to Washington D.C. With OMSA!

By: Sarah Branch

The OMSA staff and Board of Directors are going to Washington D.C. on April 19th for our annual Capitol Hill visits and to host our crawfish boil for Members of Congress and we want YOU to join us! Perhaps more than ever, with the state of our industry, it is so important to be politically active. Conducting small, intimate meetings with Congressmen and Senators to educate them on the domestic maritime sector, the Jones Act and other issues is vital to the survival of our industry. The more members that attend, the more meetings we can get with Members of Congress. Each individual will take part in four to five meetings throughout the day, in small groups of five to six participants. The OMSA staff

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hosts a full breakfast the morning of for participants, complete with a briefing of bios of each Member of Congress and talking points. Everyone will be well-prepared for their meetings and will be assigned a group leader to ensure everyone gets to where they need to be. To end the busy day, we host a crawfish boil with 22-25 Members of Congress attending, along with their staff, other members of industry and the Coast Guard. This invitation only event will be held at the Bullpen from 6:00-8:00 p.m. Our boil is another great opportunity to mingle with lawmakers and staff in a relaxed atmosphere – and the food and drink is great! If you are interested in participating in Hill visits and our boil, please contact Sarah Branch and Ashley Smith.

Save the Date: 2nd Quarter OMSA Membership Meeting – Wednesday, April 27, 2016

By: Ashley Smith Pleas save the date for the 1st Quarter OMSA Membership Meeting to take place on Wednesday April 27, 2016 in New Orleans, LA. Detailed information, including registration, hotel and agenda items, will be sent in the upcoming weeks. If you have any further questions, please don’t hesitate to contact me directly.

OMSA Member Website News By: Ashley Smith

Is your company holding a seminar or luncheon that you would like to notify the OMSA membership of? Are you looking to buy/sell equipment? Is there a position available in your company, or are you looking to hire? If the answer is YES to any of the above, log on to the OMSA website, click “News & Events” at the top and then “Community” and under “Discussion” start your conversation!

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2016 OMSA MEETINGS & EVENTS SCHEDULE

• Wednesday, January 20 – 1st Quarter Board of Directors Meeting BY INVITATION ONLY

• Wednesday, January 27 – 1st Quarter Membership Meeting Hotel TBD – New Orleans, LA

• Monday, April 18 – 2nd Quarter Board of Directors Meeting BY INVITATION ONLY

• Wednesday, April 27 – 2nd Quarter Membership Meeting Marriott New Orleans Convention Center – New Orleans, LA

• Friday, May 6 – Spring Golf Tournament Lakewood Golf Club – New Orleans, LA

• Friday, June 3 - Saturday, June 4 – OMSA Fishing Rodeo Location TBD – Grand Isle, LA

• Wednesday, July 13 – 3rd Quarter Board of Directors Meeting BY INVITATION ONLY

• Thursday, July 21 – 3rd Quarter Member Call-In

• Wednesday, September 28 – 4th Quarter Membership Meeting Hotel TBD – New Orleans, LA

• Wednesday, October 19 – 4th Quarter Board of Directors Meeting BY INVITATION ONLY

• Friday, October 28 – Fall Golf Tournament Atchafalaya at Idlewild – Patterson, LA

• November – OMSA/Tulane Legal Forum Hotel TBD – New Orleans, LA

• Friday, December 9 – OMSA’s Christmas Bash Hotel TBD – New Orleans, LA

**Please note, dates are subject to change prior to the official invitation and registration links that will be sent to membership.

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