New Irish legislation to facilitate growing needs of vessels in offshore energy projects

The proposed changes are set out in the Merchant Shipping (Investigation of Marine Accidents) Bill, which is currently at the third stage before Dáil Éireann, the lower house of the Irish Parliament.

To achieve carbon neutrality by 2050, Ireland must significantly expand its renewable energy sources, with a focus on offshore wind power. Numerous companies are planning to establish wind farms along Ireland’s coastline. The development and operation of offshore renewable energy (ORE) projects has driven up the needs for various offshore service vessels. A vital component of this effort is the classification of vessels that transport industrial personnel to these wind farms throughout their operational life.

The Bill has come at a critical juncture, as ORE projects have recently come under scrutiny for their health and safety protocols. This heightened attention, exemplified by incidents in places like Scotland, underscores the urgent need for comprehensive legislative measures to address and enhance safety standards within the industry.

The Bill aims to establish a new Marine Accident Investigation Unit (MAIU) within the Department of Transport. This unit will replace the Marine Casualty Investigation Board as the permanent authority for investigating marine accidents. Under the proposal, the MAIU will be empowered to conduct marine safety investigations involving vessels in Irish waters and Irish-flagged vessels globally.

Another important purpose of the Bill is to provide a clear regulatory framework to address the needs of modern vessels in the offshore service sector, including those transporting workers, commonly referred to as crew transfer vessels (CTVs), who will deploy infrastructure and service ORE projects.

Regulatory framework for offshore service vessels

Currently, there is no specific Irish legislation regulating offshore service vessels. The only reference to these vessels under Irish law is found in the European Union (Passenger Ship) Regulations 2019 (S.I. No. 676/2019), which implements EU Directive 2009/45/EC. This regulation exempts offshore service vessels from passenger ship requirements, placing them in a separate category. However, under current Irish law, these vessels are still classified as passenger ships or boats, and industrial personnel are considered passengers, which is inconsistent with international standards.

Chapter XV of the International Convention for the Safety of Life at Sea (SOLAS Convention), introduced by the International Maritime Organisation (IMO), sets standards for the construction and operation of offshore service vessels.

This includes the Industrial Personnel Code (IP Code), which establishes minimum safety standards for ships carrying industrial personnel and addresses specific maritime risks in the offshore and energy sectors, such as personnel transfers. These workers may be involved in various activities, including the construction, maintenance, and decommissioning of offshore facilities like wind farms, oil and gas installations, aquaculture, and ocean mining. Industrial personnel must meet specific requirements, such as holding a medical fitness certificate and completing basic sea training, which are not required for regular passengers.

The new Chapter XV and the IP Code were adopted at the IMO’s Maritime Safety Committee meeting in November 2022 and came into effect in July 2024, with Ireland supporting these amendments.

The Bill proposes to amend various merchant shipping Acts due to the new requirements for offshore service vessels, including:

• revising the definition of the SOLAS Convention to reflect the changes introduced by the new Chapter XV concerning the carriage of industrial personnel in the Merchant Shipping Act 1952;
• incorporating definitions relevant to offshore service vessels and eliminating the default classification of these vessels as passenger boats or ships in the Merchant Shipping Act 1992;
• modifying section 18 of the 1992 Act to create a new category of passenger boat for carrying fewer than 12 industrial personnel;
• amending the Merchant Shipping Act 2010 (the “2010 Act”) to update Chapter X of the SOLAS Convention regarding high-speed craft and to permit the establishment of rules for high-speed craft not covered by the SOLAS Convention;
• changing sections 57 and 58 of the 2010 Act to authorise the Minister for Transport to set regulations for safe manning levels for any type of vessel;
• and revising section 87 of the 2010 Act to update the definition of the Maritime Labour Convention, allowing for regulatory updates to align with the recent amendments to the Convention.

This will align Ireland with other countries following the SOLAS convention, establishing a benchmark for vessel inspections under Port State Control. Regulating and registering these vessels under the Irish flag could create job opportunities, particularly for domestic operations. It is also essential to develop a flexible framework to accommodate new technologies and emerging types of offshore service vessels. For example, Chapter XV and the IP Code provide a foundation of modular and adaptable standards that can be applied to different types of vessels and technologies, and updated as new technologies emerge.

Enforcement and compliance

Part 5 of the Bill grants the Minister for Transport the power to establish rules for the construction and operation of offshore service vessels and the carriage of industrial personnel. It also sets out offences related to non-compliance with these rules. The Marine Survey Office (MSO) is empowered to survey and inspect these vessels to ensure compliance with the legislation, issuing certificates to compliant vessels. The Bill also allows for periodic inspections and the suspension or revocation of certificates if a vessel fails to meet legal standards.

The Bill allows the detention of non-compliant offshore service vessels if deemed necessary to protect the vessel, the environment, or the health and safety of the crew. Detailed requirements for the construction and operation of these vessels will be specified in statutory instruments, with rules tailored to different classes of vessels based on factors such as their intended service, size, shape, speed, and voyage duration.

Costs associated with compliance

The updated regulatory regime is expected to have a financial impact on vessel owners as they take steps to comply with the new regulatory requirements. For example, offshore service vessels may need modifications or upgrades to meet new safety standards, and there will be costs related to regular surveys and certifications required to ensure compliance.

The training and operational costs will be increased under the new Bill. There will be additional training programmes for crew and industrial personnel to ensure they understand and follow the new safety protocols. Companies providing the offshore service vessels will also need to implement regular safety drills and exercises.  Costs will also occur in relation to inspections and certifications by the Marine Survey Office (MSO) and potential administrative fees for processing compliance documentation.

Benefits of the new regime

The passing of the Bill is expected to provide a number of benefits to those working in the offshore vessel sector. It is designed to bring better safety regulations for those working offshore in these prescribed roles as the offshore vessels will be surveyed in line with the international standards. Operators and owners of offshore service vessels will have greater certainty in relation to their compliance requirements when operating their offshore service vessels in Irish waters or for those who want to register their vessels under the Irish flag. It is also set to create an opportunity for Ireland to carve out a niche market in the offshore renewable energy sector for the servicing of offshore vessels that are Irish registered.

Co-written by Oisín Doyle and Shani Stallard of Pinsent Masons.