Recreational Boat Flotation Standards-Update of Outboard Engine Weight Test Requirements, 16512-16522 [2017-06733]

Download as PDF 16512 Federal Register / Vol. 82, No. 64 / Wednesday, April 5, 2017 / Rules and Regulations sradovich on DSK3GMQ082PROD with RULES It is important to note that the distances set forth in MGN 371, MNG 543 and our MP Guidelines are not standards, regulations or requirements of any type, but rather are guidance for developers to consider at the outset of a proposal. For example, both MGN 371 and MGN 543 state ‘‘[t]his Guidance Note, as the name implies, is intended for the guidance of developers and others.’’ See p. 3 of both Notes. In similar language, the MP Guidelines states on p. 1 ‘‘[t]hese guidelines are provided to assist offshore developers and marine planners with their evaluation of the navigational impacts of any projects with multiple permanent fixed structures.’’ Furthermore, on p. 6 of the MP Guidelines, we state ‘‘[t]hese recommendations are based on generic deep draft vessel maneuvering characteristics and are consistent with existing European guidelines.’’ As discussed above, the Coast Guard will evaluate each proposed project based upon the actual risks identified in the Navigation Safety Risk Assessment, and not by rigidly applying recommended distances from the MP Guidelines or any other similar guidance. Because our guidelines are neither regulations nor standards that must be applied, and because we view MGN 543 as a simplification of its predecessor, MGN 371, we do not believe it is necessary or prudent to revise our MP Guidelines at this time. Navigation Corridors Various comments were received concerning navigation corridors. Some commenters said the navigation corridors were too large, or simply not necessary, whereas others said they were essential to preserve clear shipping lanes. Prior to the advent of offshore wind development, there was no need for a coordinated routing system along the entire Atlantic seaboard, and existing traffic separation schemes at the entrances to major ports were adequate to manage collision risks for commercial vessel traffic. As the potential for conflicting uses of the Atlantic Ocean has increased, the Coast Guard must evaluate options to reduce associated risks to navigation and the environment. The ACPARS identified the routes typically used by tug and barge traffic and deep draft ocean-going vessels. The identified navigation corridors in the final report simply reflect areas historically used by commercial vessels. The ACPARS report recommends that the navigation corridors should be considered during marine planning activities and incorporated into Regional Ocean Plans to ensure appropriate consideration is given to VerDate Sep<11>2014 16:35 Apr 04, 2017 Jkt 241001 shipping early in the project siting process. Some commenters have also suggested the Coast Guard apply the data and recommendations from the ACPARS to the marine planning process, and we agree with those comments. The ACPARS report also recommended that the Coast Guard use the identified navigation corridors to establish shipping safety fairways (areas where permanent structures are not permitted) or other appropriate ships’ routing measures. The Coast Guard is considering these recommendations, but has not yet determined if or how it may move forward on such routing measures. In the event the Coast Guard determines that shipping safety fairways or other routing measures must be further explored, it will engage all relevant stakeholders and ultimately commence a formal rulemaking process that will provide ample notice and opportunity for public and other stakeholder comment, and a thorough environmental review. Protection of Right Whales The Coast Guard received comments suggesting that offshore navigation corridors for deep draft traffic could endanger North Atlantic right whales if the corridors divert vessel traffic around wind farms into areas where these endangered whales tend to migrate. Although the offshore navigation corridors identified simply reflect existing vessel traffic patterns already in use, the Coast Guard would consult with National Oceanic and Atmospheric Administration, interagency partners and other stakeholders through the NEPA and marine planning processes as a necessary part of any action to formally establish routing measures associated with the ACPARS or particular wind farm proposals. Continued Public Outreach Some commenters recommended that the Coast Guard continue outreach efforts with affected states and federal agencies, the marine shipping industry, the wind energy industry and the general public, which could include participation in stakeholder outreach activities, public meetings, workshops and industry meetings and conferences. The Coast Guard concurs with the recommendation and will continue its outreach program through the Regional Planning Bodies. Summary For the foregoing reasons, the Coast Guard considers the ACPARS report to be complete and will not make changes to it at this time. PO 00000 Frm 00004 Fmt 4700 Sfmt 4700 This notification is issued under authority of 33 U.S.C. 1223(c) and 5 U.S.C. 552. Dated: March 31, 2017. Michael D. Emerson, Director, Marine Transportation Systems, U.S. Coast Guard. [FR Doc. 2017–06738 Filed 4–4–17; 8:45 am] BILLING CODE 9110–04–P DEPARTMENT OF HOMELAND SECURITY Coast Guard 33 CFR Part 183 [Docket No. USCG–2016–1012] RIN 1625–AC37 Recreational Boat Flotation Standards—Update of Outboard Engine Weight Test Requirements Coast Guard, DHS. Interim rule. AGENCY: ACTION: The Coast Guard is issuing this interim rule to update the table of outboard engine weights used in calculating safe loading capacities and required amounts of flotation material. The engine weight table was last updated in 1984, and the Coast Guard Authorization Act of 2015 requires that we update the table to reflect a specific standard. DATES: This interim rule is effective on June 1, 2018. Comments and related material must be submitted to the online docket via https://www.regulations.gov, or reach the Docket Management Facility, on or before July 5, 2017. ADDRESSES: You may submit comments identified by docket number USCG– 2016–1012 using the Federal eRulemaking Portal at https:// www.regulations.gov. See the ‘‘Public Participation and Request for Comments’’ portion of the SUPPLEMENTARY INFORMATION section for further instructions on submitting comments. FOR FURTHER INFORMATION CONTACT: For information about this document call or email Mr. Jeffrey Ludwig, Coast Guard; telephone 202–372–1061, email Jeffrey.A.Ludwig@uscg.mil. SUPPLEMENTARY INFORMATION: SUMMARY: Table of Contents for Preamble I. Abbreviations II. Basis and Purpose III. Regulatory History IV. Background V. Discussion of Rule VI. Regulatory Analyses A. Regulatory Planning and Review E:\FR\FM\05APR1.SGM 05APR1 Federal Register / Vol. 82, No. 64 / Wednesday, April 5, 2017 / Rules and Regulations B. Small Entities C. Assistance for Small Entities D. Collection of Information E. Federalism F. Unfunded Mandates Reform Act G. Taking of Private Property H. Civil Justice Reform I. Protection of Children J. Indian Tribal Governments K. Energy Effects L. Technical Standards M. Environment VII. Public Participation and Request for Comments amends regulations issued pursuant to section 4302 and the 180-day delay is appropriate. The delay provides manufacturers with time to adjust their operations to comply with the new standard. We have implemented that delay of effective date in this rule. I. Abbreviations sradovich on DSK3GMQ082PROD with RULES ABYC American Boat and Yacht Council ABYC S–30 American Boat and Yacht Council S–30—Outboard Engines and Related Equipment Weights CGAA Coast Guard Authorization Act of 2015 (Pub. L. 114–120, 130 Stat. 27; Feb. 8, 2016) CFR Code of Federal Regulations DHS Department of Homeland Security E.O. Executive Order FR Federal Register IRFA Initial Regulatory Flexibility Analysis MIC Manufacturer Identification Code NAICS North American Industry Classification System NBSAC National Boating Safety Advisory Council NMMA National Marine Manufacturers Association OMB Office of Management and Budget Pub. L. Public Law RA Regulatory analysis § Section symbol SBA Small Business Administration U.S.C. United States Code II. Basis and Purpose Section 308 of the Coast Guard Authorization Act of 2015 (Pub. L. 114– 120, 130 Stat. 27) (CGAA) requires the Coast Guard to issue regulations, not later than 180 days after enactment, updating Table 4 of subpart H in Title 33 of the Code of Federal Regulations (CFR) part 183 to reflect the American Boat and Yacht Council S–30— Outboard Engines and Related Equipment Weights (ABYC S–30) standard. Additionally, 46 U.S.C. 4302(b), which provides authority for 33 CFR part 183, requires the effective date for rules issued under that provision be delayed at least 180 days after publication, but not more than 2 years for cases involving major product design, retooling, or changes in the manufacturing process. It also requires consultation with the National Boating Safety Advisory Council (NBSAC).1 Although this rule is issued pursuant to CGAA and not 46 U.S.C. 4302, it 1 The NBSAC recommended to the Coast Guard in 2000 that the weight table be updated (Resolution number 2000–66–05), and discussed the replacement of Table 4 with the ABYC standard at their April 2016 meeting. VerDate Sep<11>2014 16:35 Apr 04, 2017 Jkt 241001 III. Regulatory History We did not publish a notice of proposed rulemaking before this interim rule. The Coast Guard finds good cause to forgo prior notice and opportunity to comment under 5 U.S.C. 553(b)(B), because section 308 of CGAA provides the Coast Guard no discretion in adopting the specific industry standard for engine weights. The Coast Guard may not decline to update the engine weight standards, choose to adopt a different standard, or respond to public comments by modifying the substance of the rule. Because the Act does not allow for alternatives; the Coast Guard may not adopt a different standard or modify the substance of the rule in response to public comments. Therefore, it was unnecessary and impracticable to provide the public with notice and opportunity to comment before publishing this interim rule. This rule also relocates the relevant table within the CFR, and makes similar administrative changes that have no substantive effect on the public. Because these changes do not create or change any rights or responsibilities for the public, prior notice and opportunity to comment are unnecessary under 5 U.S.C. 553(b)(B). However, the Coast Guard is interested in the public’s views on these changes. In addition, we are delaying the effective date of this rule until June 1, 2018, for two reasons: (1) To meet the intent of 46 U.S.C. 4302(b), as described earlier in this rule, and (2) to align with the recreational boat model year so that requirements do not change during a model year production run. The delay in effective date allows time for a postpublication comment period and for non-substantive changes if needed. Therefore, even though 5 U.S.C. 553 allows the Coast Guard to forgo notice and opportunity for comment prior to issuing this rule, we invite public comment on the interim rule. We will not have the authority to change the substance of the rule—for example, the specific weight standard used—in response to public comment, because that requirement is set in statute. However, we invite public comment on other aspects of the rule, such as changes we have made to crossreferences, and we may make changes after considering those comments. We believe this strikes the best balance PO 00000 Frm 00005 Fmt 4700 Sfmt 4700 16513 between satisfying the statute, putting a rule in place soon so that manufacturers can plan ahead, and allowing public comment to the extent we are permitted by CGAA. IV. Background Congress has authorized the Coast Guard to prescribe regulations establishing minimum safety standards for recreational vessels and associated equipment. In 1977, the Coast Guard established flotation requirements for boats less than 20 feet in length, and established a weight table (Table 4 of subpart H in 33 CFR part 183) used to assist the boat manufacturer in determining the amount of flotation to be included in a boat’s design and construction. Table 4 was last updated in 1984, but the size and weight of outboard engines has evolved over the years to the point that Table 4 no longer accurately represents the weights of outboard engines available on the market. The American Boat and Yacht Council (ABYC) is a non-profit organization that develops voluntary safety standards for the design, construction, maintenance, and repair of recreational boats. Among the voluntary safety standards that ABYC develops and updates on a regular basis is S–30— Outboard Engines and Related Equipment Weights (ABYC S–30). This standard reflects the current state of marine outboard engine weights. V. Discussion of Rule This rulemaking adopts the current ABYC S–30 to replace Table 4 of subpart H in 33 CFR part 183. The current ABYC S–30 is dated July 2012, and was the standard in effect on the date of enactment of the Act. In the CFR, Table 4 applies to monohull outboard boats that are less than 20 feet in length, which includes recreational vessels as well as some commercial fishing vessels. It is also used indirectly for flotation requirements for survival craft covered by 46 CFR part 25 (uninspected vessels), 46 CFR part 117 (small passenger vessels carrying more than 150 passengers), 46 CFR part 141 (towing vessels) and 46 CFR part 180 (small passenger vessels under 100 gross tons). Changing the figures in Table 4, as required by the Act, will require more flotation in each new boat, to support the weight of heavier engines. This rule removes Table 4 and replaces it with a new section in subpart E of part 183. That section contains the table of the ABYC S–30 standard and its corresponding footnotes. We made minor edits to the footnotes developed E:\FR\FM\05APR1.SGM 05APR1 16514 Federal Register / Vol. 82, No. 64 / Wednesday, April 5, 2017 / Rules and Regulations by ABYC to accommodate the location of the table in the CFR and to reflect the removal of Table 4. We also made conforming changes to several sections that referenced Table 4. VI. Regulatory Analyses We developed this rule after considering numerous statutes and Executive Orders (E.O.s) related to rulemaking. Below we summarize our analyses based on these statutes or E.O.s. A. Regulatory Planning and Review Executive Orders 12866 (‘‘Regulatory Planning and Review’’) and 13563 (‘‘Improving Regulation and Regulatory Review’’) direct agencies to assess the costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, distributive impacts, and equity). Executive Order 13563 emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. Executive Order 13771 (‘‘Reducing Regulation and Controlling Regulatory Costs’’) directs agencies to reduce regulation and control regulatory costs and provides that ‘‘for every one new regulation issued, at least two prior regulations be identified for elimination, and that the cost of planned regulations be prudently managed and controlled through a budgeting process.’’ The Office of Management and Budget (OMB) has not designated this rule a significant regulatory action under section 3(f) of Executive Order 12866. Accordingly, the Office of Management and Budget (OMB) has not reviewed it. As this rule is not a significant regulatory action, this rule is exempt from the requirements of Executive Order 13771. See OMB’s Memorandum titled ‘‘Interim Guidance Implementing Section 2 of the Executive Order of January 30, 2017 titled ‘Reducing Regulation and Controlling Regulatory Costs’ ’’ (February 2, 2017). A regulatory analysis (RA) follows. This RA provides an evaluation of the economic impacts associated with this interim rule. The Coast Guard is issuing an interim rule to implement section 308 of the CGAA. The CGAA mandates that the Coast Guard issue regulations to amend Table 4 of subpart H in 33 CFR part 183 to reflect the standards in ABYC S–30. Consequently, 100% of the costs of this rule are due to a Congressional mandate and the Coast Guard has no discretion to adopt a different standard that would lower the cost of this rule. Changes in the design and construction of modern outboard engines necessitate a change in the table of outboard engine weights used in calculating safe loading capacities and required amounts of flotation material in the Safe Loading and Flotation Standards found in 33 CFR part 183, subparts G and H. Table 1 of this document provides a summary of the affected population, costs, and benefits of this rule. TABLE 1—SUMMARY OF THE IMPACTS OF THE INTERIM RULE Category Summary Applicability .......................... Affected Population .............. Costs to Industry ($, 7% discount rate). Unquantified Benefits ........... Update Table 4 of subpart H in 33 CFR part 183 with ABYC S–30. 1,427 manufacturers of monohull outboard boats of less than 20 feet in length. 10-year: $6,624,488. Annualized: $943,178. Creates uniformity by aligning all boats to the same standard. Brings those boats not currently in compliance with ABYC S–30 to a higher level of safety than the standard currently in regulation. sradovich on DSK3GMQ082PROD with RULES Affected Population This interim rule will adopt the current ABYC S–30 to replace Table 4 of subpart H in 33 CFR part 183. Table 4 applies to monohull outboard boats that are less than 20 feet in length, including recreational vessels and some commercial fishing vessels. Table 4 is also used indirectly for flotation requirements for survival craft covered by 46 CFR part 25 (uninspected vessels), 46 CFR part 117 (small passenger vessels carrying more than 150 passengers), 46 CFR part 141 (towing vessels), and 46 CFR part 180 (small passenger vessels under 100 gross tons). Small passenger vessels are required to carry certain survival craft, depending on their route and construction, in order to have the capacity to evacuate a certain percentage of the number of people on board. These survival craft are generally life rafts or floats, which do not have engines and are not impacted by this interim rule. However, small passenger vessels could voluntarily carry a small VerDate Sep<11>2014 16:35 Apr 04, 2017 Jkt 241001 boat that can be used to carry some of the passengers, thereby reducing the number of other survival craft they are required to carry (46 CFR 117.200(b) and 46 CFR 180.200(b)). Because this is a voluntary option available for these vessels, we do not include them in our analysis. However, we do note that if the uninspected vessels, small passenger vessels carrying more than 150 passengers, towing vessels, or small passenger vessels under 100 gross tons choose to carry a small boat on board that does not meet ABYC S–30 standard, they could be indirectly affected by this interim rule. Because this interim rule applies only to new boats manufactured after June 1, 2018, any small passenger vessels already carrying small boats subject to Table 4 of subpart H will not be affected. If they choose to replace their small boat with a boat built after June 1, 2018, they may be indirectly affected if the manufacturer passes the costs of this interim rule on to the consumers. We account for the direct costs to manufacturers in this analysis. PO 00000 Frm 00006 Fmt 4700 Sfmt 4700 The interim rule will affect manufacturers that produce monohull outboard boats that are less than 20 feet in length and that are not currently building boats to ABYC S–30 standard. The Coast Guard used the list of active Manufacturer Identification Code (MIC) holders, as required by 33 CFR part 181, subpart C, to determine the affected population. This list represents all recreational boat MICs that are currently active. We then removed any MICs that will not be affected by this rule from the list of manufacturers. This includes: (1) Manufacturers with multiple MICs; (2) MICs belonging to manufacturers that only build boats greater than 20 feet in length; (3) MICs belonging to manufacturers that do not build monohull outboard boats; and (4) MICs belonging to manufacturers that only produce boats exempted from this regulation by 33 CFR 183.201(b), including sailboats, canoes, kayaks, inflatable boats, submersibles, surface effect vessels, amphibious vessels, and raceboats. We found there are no more E:\FR\FM\05APR1.SGM 05APR1 Federal Register / Vol. 82, No. 64 / Wednesday, April 5, 2017 / Rules and Regulations than 1,519 affected manufacturers that produce monohull outboard boats that are less than 20 feet in length. Some of these 1,519 monohull manufacturers are currently in compliance with ABYC S–30 standard, and therefore will not incur additional costs because of this rule. The National Marine Manufacturers Association (NMMA) requires its members to build boats to the ABYC standard.2 These NMMA builders produce about 85 percent of the recreational boats built each year.3 We found 92 monohull manufacturers that are currently NMMA members and therefore we assume they are in compliance. We assume the remaining 1,427 monohull manufacturers are not compliant with the current voluntary standard and will be affected by this rule. Costs to Industry This interim rule will adopt the current ABYC S–30, to replace Table 4 of subpart H. This change will increase costs to 1,427 monohull manufacturers that are assumed to be not in compliance. The increase in the weight table figures will require an additional 1 to 2 cubic feet of flotation to be added to each boat manufactured after the implementation date of June 1, 2018. We estimate the foam for the additional flotation will cost an average of $10 per boat.4 Some manufacturers may need to make minor adjustments such as enclosing an aft seat and adding foam under the seat to accommodate the additional foam in the boats. Therefore, Coast Guard uses an estimate of $50 per boat to account for the foam and any minor adjustments that may be necessary.5 Manufacturers could incur costs related to determining where to put the additional flotation on a vessel, but we believe redesign costs would not be needed as the additional flotation material is minimal and the placement of the material is fairly standard. The manufacturers are already required to add flotation to boats, so there will be no costs for new equipment, facilities, or retrofitting of facilities. 16515 To estimate the total cost to industry, we then estimated the total number of outboard boats less than 20 feet in length manufactured per year by the monohull manufacturers that are not in compliance. The Coast Guard used data from the NMMA’s 2015 Recreational Boating Statistical Abstract 6 to estimate the total affected outboard boats. The NMMA breaks down outboard boat sales by two hull materials: Fiberglass and aluminum. The NMMA estimates that in 2015, 51,300 fiberglass outboard boats and 104,500 aluminum outboard boats were sold. Of these boats sold, 42.7 percent of the fiberglass outboard boats and 60.4 percent of the aluminum outboard boats were less than 20 feet in length. Multiplying the percentage market share of boats less than 20 feet by the total sales of boats by material, we found there were 21,905 fiberglass boats and 63,118 aluminum outboard boats less than 20 feet sold in 2015 (see Table 2). TABLE 2—TOTAL SALES AND MARKET SHARE OF OUTBOARD BOATS BY MATERIAL TYPE Percentage market share outboard boats less than 20 feet Estimated total sales Outboard boat by material Total outboard boats less than 20 feet sold in 2015 Fiberglass ........................................................................................................................ Aluminum ......................................................................................................................... 51,300 104,500 42.7 60.4 21,905 63,118 Total .......................................................................................................................... 155,800 ............................ 85,023 sradovich on DSK3GMQ082PROD with RULES The total 85,023 outboard boats less than 20 feet that were sold in 2015 were produced by a mix of manufacturers that are already in compliance with the ABYC S–30 standard and manufacturers that are not in compliance and will be impacted by this rule. The NMMA estimates that around 85 percent of the boats sold in the United States are already in compliance with the ABYC S–30 standard. Therefore, the Coast Guard estimates 15 percent of the total outboard boats less than 20 feet sold were produced by manufacturers not in compliance with the ABYC standard. These 12,753 boats (15 percent of the 85,023 outboard boats less than 20 feet, rounded) will require $50 of additional flotation materials to align with the new standard. To estimate the affected outboard boats over our 10-year period of analysis, we used NMMA data to forecast future boat building production.7 The NMMA anticipates annual production will rise through at least 2018 before leveling off into at least early 2019. The NMMA does not have estimates for production past 2019. Since the NMMA anticipates production will plateau once it reaches the levels of production estimated in 2019, the Coast Guard assumes production will hold at 2019 levels. Production could decrease or increase, resulting in higher or lower industry costs, but for the purposes of this analysis we assume production remains constant past 2019. Table 3 shows our baseline affected population, the forecasted percentage increases over the previous year estimated by NMMA, and the resulting number of affected outboard boats.8 2 See Michael Vatalaro, What ‘‘NMMA-Certified’’ Really Means, BoatUS, Feb. 2014, https:// www.boatus.com/magazine/2014/february/whatnnma-certified-means.asp. 3 Id. 4 The $10 estimate is based on 2 LB Density Urethane Foam estimates from US Composites (https://www.uscomposites.com/foam.html) and conversations with manufacturers. Foam prices vary based on the size of the kits. The cost of kits range from a 2 cubic foot kit cost of $22.50 ($11.25 per cubic foot) to $264 for a 40 cubic foot kit ($6.60 per cubic foot). Conversations with manufacturers confirmed $10 is a reasonable average estimate for adding 1 to 2 cubic feet of additional flotation, that takes into account the varying costs based on the size of kits purchased and that manufacturers may pay less than the listed prices based on their purchasing agreements with the suppliers. 5 Based on discussions with manufacturers, the additional $40 estimate is to cover the cost of enclosing a rear seat to add flotation foam under it or to add small chambers, especially on open aluminum boats, to accommodate the additional flotation foam. 6 A summary of the NMMA abstract is available at https://www.nmma.org/statistics/publications/ statistical-abstract. The full report is available for purchase through NMMA. The Coast Guard used data from Powerboat Sales Trends, Table 1: Outboard boats: Estimated sales by hull market; Table 2: Fiberglass outboard boats: Estimated market share by length; and Table 3: Aluminum outboard boats: Estimated market share by length. 7 Production forecasts are internal NMMA estimates that were provided to the Coast Guard on 9/7/2016. 8 Forecasted percentages for 2016 and 2019 were given in NMMA data. Forecasted percentages for years 2017 and 2018 were calculated from NMMA’s forecasted annual production index. For 2017, the affected outboard boats manufactured annually are Continued VerDate Sep<11>2014 16:35 Apr 04, 2017 Jkt 241001 PO 00000 Frm 00007 Fmt 4700 Sfmt 4700 E:\FR\FM\05APR1.SGM 05APR1 16516 Federal Register / Vol. 82, No. 64 / Wednesday, April 5, 2017 / Rules and Regulations TABLE 3—FORECASTED AFFECTED OUTBOARD BOATS Year Forecasted percentage increase over previous year 2015 ................................................................................................................................................................. 2016 ................................................................................................................................................................. 2017 ................................................................................................................................................................. 2018 ................................................................................................................................................................. 2019 ................................................................................................................................................................. 2020+ ............................................................................................................................................................... ............................ 11.6 15.2 9.2 6.1 0.0 As this interim rule will be effective June 1, 2018, any outboard boats manufactured after this date will need to be in compliance with ABYC S–30 standard. The Coast Guard anticipates most manufacturers will begin making the necessary changes at the beginning of 2018. All manufacturers will be in compliance by June 1, 2018 of Year 1, which corresponds with the 2018 estimated affected outboard boats in Table 3. We estimate there will be 17,916 affected outboard boats in Year 1 and 19,009 affected outboard boats in Years 2 through 10. Table 4 summarizes the estimated affected population of outboard boats that we used to estimate the 10-year costs of this interim rule. Affected outboard boats manufactured annually TABLE 4—TEN-YEAR PROJECTION OF AFFECTED OUTBOARD BOATS—Continued TABLE 4—TEN-YEAR PROJECTION OF AFFECTED OUTBOARD BOATS Affected outboard boats Year Affected outboard boats Year 1 2 3 4 5 6 7 8 9 .................................................. .................................................. .................................................. .................................................. .................................................. .................................................. .................................................. .................................................. .................................................. 12,753 14,232 16,402 17,916 19,009 19,009 10 ................................................ 17,916 19,009 19,009 19,009 19,009 19,009 19,009 19,009 19,009 19,009 We then multiplied the projected number of affected outboard boats each year in Table 4 by the estimated cost per boat of $50. Table 5 shows the total costs of this interim rule on an undiscounted basis, and discounted at 7 and 3 percent. TABLE 5—TOTAL COSTS OF INTERIM RULE Total undiscounted costs Year Total, discounted 7% 3% 1 ................................................................................................................................................... 2 ................................................................................................................................................... 3 ................................................................................................................................................... 4 ................................................................................................................................................... 5 ................................................................................................................................................... 6 ................................................................................................................................................... 7 ................................................................................................................................................... 8 ................................................................................................................................................... 9 ................................................................................................................................................... 10 ................................................................................................................................................. $895,800 950,450 950,450 950,450 950,450 950,450 950,450 950,450 950,450 950,450 $837,196 830,160 775,850 725,094 677,658 633,325 591,892 553,171 516,982 483,161 $869,709 895,840 869,796 844,463 819,867 795,987 772,803 750,294 728,441 707,224 Total ...................................................................................................................................... Annualized ................................................................................................................................... 9,449,850 ........................ 6,624,488 943,178 8,054,473 944,230 sradovich on DSK3GMQ082PROD with RULES Note: Totals may not sum due to independent rounding. The total 10-year undiscounted cost of this interim rule is $9,449,850. The total 10-year discounted cost of this interim rule is $6,624,488 and the annualized cost is $943,178, both discounted at 7 percent. The manufacturers of outboard boats less than 20 feet in length not in compliance with ABYC S–30 standard will bear these costs. However, it is possible that manufacturers may pass these costs onto the recreational boat owners by incorporating the additional costs of this interim rule into the sales price. The sale price of the affected boats can range from $3,000 through $50,000. If we use an average of $26,500 per boat, the $50 average cost per boat represents 0.2 percent of the sales price. However, 85 percent of the boats sold in the United States are already in compliance and include this cost of floatation in the sales prices. calculated as [1 + ((170.1¥147.6)/147.6)] * 14,232 = 16,402, rounded. For 2018, the affected outboard boats manufactured annually are calculated as [1 + (185.8¥170.1)/170.1] * 16,402, rounded. VerDate Sep<11>2014 16:35 Apr 04, 2017 Jkt 241001 PO 00000 Frm 00008 Fmt 4700 Sfmt 4700 Benefits This rule does not provide any quantitative benefits. However, it does have qualitative benefits. This rule will create uniformity by aligning all boats to the same standard. The ABYC S–30 provides a higher level of safety than that provided by the standard currently in the regulation. Requiring all boats less than 20 feet in length that currently do not meet ABYC S–30 standard weights to comply with that standard E:\FR\FM\05APR1.SGM 05APR1 Federal Register / Vol. 82, No. 64 / Wednesday, April 5, 2017 / Rules and Regulations sradovich on DSK3GMQ082PROD with RULES will improve the buoyancy of these boats, and therefore, improve their safety. B. Small Entities In accordance with the Regulatory Flexibility Act (5 U.S.C. 601–612), the Coast Guard prepared this Initial Regulatory Flexibility Analysis (IRFA) that examines the impacts of the interim rule on small entities (5 U.S.C. 601 et seq.). We recognize that an IRFA is not required for an interim rule that was not preceded by a general notice of proposed rulemaking. We are including an analysis of the interim rule requirements on small entities for informational purposes. A small entity may be: a small independent business, defined as independently owned and operated, is organized for profit, and is not dominant in its field per the Small Business Act (5 U.S.C. 632); a small notfor-profit organization (any not-forprofit enterprise which is independently owned and operated and is not dominant in its field); or a small governmental jurisdiction (locality with fewer than 50,000 people) per the Regulatory Flexibility Act (RFA), 5 U.S.C. 601–612. An IRFA addresses the following: (1) A description of the reasons why action by the agency is being considered; (2) A succinct statement of the objectives of, and legal basis for, the rule; (3) A description of and, where feasible, an estimate of the number of small entities to which the rule will apply; (4) A description of the projected reporting, recordkeeping and other compliance requirements of the rule, including an estimate of the classes of small entities that will be subject to the requirement and the type of professional skills necessary for preparation of the report or record; (5) An identification, to the extent practicable, of all relevant Federal rules that may duplicate, overlap or conflict with the rule; and (6) A description of any significant alternatives to the rule that accomplish the stated objectives of applicable statutes and that minimize any significant economic impact of the rule on small entities. 1. A description of the reasons why action by the agency is being considered. Congress has authorized the Coast Guard to prescribe regulations establishing minimum safety standards for recreational vessels and associated equipment. In 1977, the Coast Guard VerDate Sep<11>2014 16:35 Apr 04, 2017 Jkt 241001 established flotation requirements for boats less than 20 feet in length, and established a weight table (Table 4 of subpart H in 33 CFR part 183) used to assist the boat manufacturer in determining the amount of flotation to be included in a boat’s design and construction. Table 4 was last updated in 1984, but the size and weight of outboard engines has evolved over the years to the point where Table 4 no longer accurately represents the weights of outboard engines available on the market. Changes in the design and construction of modern outboard engines necessitate a change in the table of outboard engine weights used in calculating safe loading capacities and required amounts of flotation material in the Safe Loading and Flotation Standards found in 33 CFR part 183, subparts G and H. 2. A succinct statement of the objective of, and legal basis for, the rule. Congress has authorized the Coast Guard to prescribe regulations establishing minimum safety standards for recreational vessels and associated equipment. Section 308 of the CGAA requires the Coast Guard to issue regulations updating Table 4 of subpart H in 33 CFR part 183 with ABYC S–30 not later than 180 days after enactment. This rulemaking will adopt the current ABYC S–30 to replace Table 4. The current ABYC S–30 is dated July 2012. Table 4 of subpart H applies to monohull outboard boats that are less than 20 feet in length, which includes recreational vessels as well as some commercial fishing vessels. It is also used indirectly for flotation requirements for survival craft covered by 46 CFR part 25 (uninspected vessels), 46 CFR part 117 (small passenger vessels carrying more than 150 passengers), 46 CFR part 141 (towing vessels), and 46 CFR part 180 (small passenger vessels under 100 gross tons). 3. A description of and, where feasible, an estimate of the number of small entities to which the rule will apply. This interim rule will affect manufacturers that produce monohull outboard boats that are less than 20 feet in length that are not currently building boats to ABYC S–30 standard. Based on Coast Guard’s list of active MIC holders, we estimate this interim rule will affect 1,427 U.S. companies. We researched the number of employees and revenue of these companies using proprietary and public business databases.9 We then measured company 9 Data sources: ReferenceUSA (www.referenceusagov.com) and Manta (www.manta.com). PO 00000 Frm 00009 Fmt 4700 Sfmt 4700 16517 size data using the Small Business Administration’s (SBA) business size standards to assess how many companies in this industry may be small entities.10 The SBA provides business size standards for all sectors of the North American Industry Classification System (NAICS).11 Using a random sample of companies out of the total population of 1,427 affected U.S. companies, we researched 749 companies and found companyspecific revenue and employment information and data on 388 of them.12 We assumed that the remaining 361 companies (for which the revenue and employment information was unavailable) are small entities for the purpose of this analysis. Of the 388 companies for which revenue and employment information was available, we found three entities that exceeded the small entity thresholds for their relevant NAICS code. The remaining 385 companies are small entities as defined by the SBA thresholds. Adding these small entities to the companies without revenue and employment information, we estimate a total of 746 of the companies are small entities. Using the results of this random sample, we calculated the fraction of small entities by dividing the total small entities by the sample size. Therefore, we estimate that 99.6 percent of all monohull companies not currently building to ABYC S–30 standard fall below the threshold for small businesses. Table 6 summarizes the findings of our small entity threshold analysis. TABLE 6—NUMBER OF COMPANIES AND SMALL ENTITIES RESEARCHED Category (a) Sample Size .......................... (b) Without Revenue or Employment Data ............................... (c ) With Revenue or Employee Data ......................................... Number of companies 749 361 388 10 ‘‘Small entities’’ include small businesses that meet the Small Business Administration size standard for small business concerns at 13 CFR 121.201, small governmental jurisdictions with a population of less than 50,000, and small organizations that are independently owned not-forprofit enterprises and which are not dominant in their field. See 5 U.S.C. 601(3)–(5). 11 SBA size standards are matched to NAICS, effective February 26, 2016. See Contracting: Table of Small Business Size Standards, Small Business Administration, https://www.sba.gov/content/ small-business-size-standards. 12 Using a 95 percent confidence level, a sample size of 385 companies is sufficient. Our research started with a random sample of 749 companies that yielded 388 entities for which requisite information was found. E:\FR\FM\05APR1.SGM 05APR1 16518 Federal Register / Vol. 82, No. 64 / Wednesday, April 5, 2017 / Rules and Regulations TABLE 6—NUMBER OF COMPANIES AND SMALL ENTITIES RESEARCHED—Continued Number of companies Category (d) Exceeded Small Entity Threshold ................................ (e) Below the Small Business Threshold ................................ 3 385 Our analysis of the available company TABLE 6—NUMBER OF COMPANIES AND SMALL ENTITIES RE- information revealed 64 primary NAICS codes. Table 7 displays the NAICS SEARCHED—Continued codes of the small entities found in our sample. Number of companies Category Total Small Entities, (b) + (e) ..................................... Total, (a) .............................. Fraction Small Entities ........ 746 749 99.6% TABLE 7—NAICS CODES OF IDENTIFIED SMALL ENTITIES sradovich on DSK3GMQ082PROD with RULES Title NAICS Code Boat Building ................................................................................................. Boat Dealers ................................................................................................. Other Personal and Household Goods Repair and Maintenance ................ Marinas ......................................................................................................... All Other Support Services ........................................................................... Mineral Wool Manufacturing ......................................................................... Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance. All Other Miscellaneous Manufacturing ........................................................ Fabricated Structural Metal Manufacturing ................................................... New Single-family Housing Construction (Except For-Sale Builders) .......... All Other Plastics Product Manufacturing ..................................................... Sporting and Recreational Goods and Supplies Merchant Wholesalers ..... Other Miscellaneous Durable Goods Merchant Wholesalers ...................... Other Building Material Dealers .................................................................... Engineering Services .................................................................................... All Other Business Support Services ........................................................... Site Preparation Contractors ........................................................................ Sheet Metal Work Manufacturing ................................................................. Special Die and Tool, Die Set, Jig and Fixture Manufacturing .................... Travel Trailer and Camper Manufacturing .................................................... Wholesale Trade Agents and Brokers .......................................................... All Other Miscellaneous Store Retailers (except Tobacco Stores) .............. Museums ...................................................................................................... Hunting and Trapping ................................................................................... Water Supply and Irrigation Systems ........................................................... Commercial and Institutional Building Construction ..................................... Other Heavy and Civil Engineering Construction ......................................... Plumbing, Heating, and Air-Conditioning Contractors .................................. All Other Specialty Trade Contractors .......................................................... Fabric Coating Mills ...................................................................................... Other Millwork (including Flooring) ............................................................... Plastics Material and Resin Manufacturing .................................................. Fertilizer (Mixing Only) Manufacturing .......................................................... All Other Miscellaneous Nonmetallic Mineral Product Manufacturing ......... Alumina Refining and Primary Aluminum Production .................................. Aluminum Sheet, Plate and Foil Manufacturing ........................................... Other Aluminum Rolling, Drawing, and Extruding ........................................ Plate Work Manufacturing ............................................................................ Farm Machinery and Equipment Manufacturing .......................................... Overhead Traveling Crane, Hoist and Monorail System Manufacturing ...... All Other Miscellaneous General Purpose Machinery Manufacturing .......... Other Communications Equipment Manufacturing ....................................... Truck Trailer Manufacturing .......................................................................... Motor Vehicle Steering and Suspension Components (except Spring) Manufacturing. Ship Building and Repairing ......................................................................... All Other Transportation Equipment Manufacturing ..................................... Sporting and Athletic Goods Manufacturing ................................................. Hobby, Toy and Game Stores ...................................................................... Scenic and Sightseeing Transportation, Water ............................................ Navigational Services to Shipping ................................................................ Miscellaneous Intermediation ....................................................................... Recreational Goods Rental ........................................................................... Landscape Architectural Services ................................................................ Industrial Design Services ............................................................................ Graphic Design Services .............................................................................. VerDate Sep<11>2014 16:35 Apr 04, 2017 Jkt 241001 PO 00000 Frm 00010 Fmt 4700 Sfmt 4700 Count of companies SBA size standard type SBA size threshold 336612 441222 811490 713930 561990 327993 811310 151 56 32 28 14 11 8 Employees ........ Revenue ........... Revenue ........... Revenue ........... Revenue ........... Employees ........ Revenue ........... 1,000 $32,500,000 $7,500,000 $7,500,000 $11,000,000 1,500 $7,500,000 339999 332312 236115 326199 423910 423990 444190 541330 561499 238910 332322 333514 336214 425120 453998 712110 114210 221310 236220 237990 238220 238990 313320 321918 325211 325314 327999 331313 331315 331318 332313 333111 333923 333999 334290 336212 336330 5 4 3 3 3 3 3 3 3 2 2 2 2 2 2 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Employees ........ Employees ........ Revenue ........... Employees ........ Employees ........ Employees ........ Revenue ........... Revenue ........... Revenue ........... Revenue ........... Employees ........ Employees ........ Employees ........ Employees ........ Revenue ........... Revenue ........... Revenue ........... Revenue ........... Revenue ........... Revenue ........... Revenue ........... Revenue ........... Employees ........ Employees ........ Employees ........ Employees ........ Employees ........ Employees ........ Employees ........ Employees ........ Employees ........ Employees ........ Employees ........ Employees ........ Employees ........ Employees ........ Employees ........ 500 500 $36,500,000 750 100 100 $20,500,000 $15,000,000 $15,000,000 $15,000,000 500 500 1,000 100 $7,500,000 $27,500,000 $5,500,000 $27,500,000 $36,500,000 $36,500,000 $15,000,000 $15,000,000 1,000 500 1,250 500 500 1,000 1,250 750 750 1,250 1,250 500 750 1,000 1,000 336611 336999 339920 451120 487210 488330 523910 532292 541320 541420 541430 1 1 1 1 1 1 1 1 1 1 1 Employees ........ Employees ........ Employees ........ Revenue ........... Revenue ........... Revenue ........... Revenue ........... Revenue ........... Revenue ........... Revenue ........... Revenue ........... 1,250 1,000 750 $27,500,000 $7,500,000 $38,500,000 $38,500,000 $7,500,000 $7,500,000 $7,500,000 $7,500,000 E:\FR\FM\05APR1.SGM 05APR1 Federal Register / Vol. 82, No. 64 / Wednesday, April 5, 2017 / Rules and Regulations 16519 TABLE 7—NAICS CODES OF IDENTIFIED SMALL ENTITIES—Continued Title NAICS Code Administrative Management and General Management Consulting Services. Other Management Consulting Services ...................................................... All Other Professional, Scientific and Technical Services ............................ Landscaping Services ................................................................................... All Other Miscellaneous Schools and Instruction ......................................... Emergency and Other Relief Services ......................................................... Fitness and Recreational Sports Centers ..................................................... RV (Recreational Vehicle) Parks and Campgrounds ................................... Civic and Social Organizations ..................................................................... Revenue Impacts of the Interim Rule. To determine the impacts of the interim rule on small monohull manufacturers, we used information on revenues or employee size as available on business directory Web sites.13 As discussed in the ‘‘Cost to Industry’’ section of the RA, we estimate that there are 17,916 outboard boats less than 20 feet produced by manufacturers annually that will require additional flotation materials to align with this Count of companies SBA size standard type SBA size threshold 541611 1 Revenue ........... $15,000,000 541618 541990 561730 611699 624230 713940 721211 813410 1 1 1 1 1 1 1 1 Revenue Revenue Revenue Revenue Revenue Revenue Revenue Revenue $15,000,000 $15,000,000 $7,500,000 $11,000,000 $32,500,000 $7,500,000 $7,500,000 $7,500,000 interim rule in Year 1. Coast Guard does not have information on the market share of the small entity manufacturers and the number of boats they produce each year. Therefore, we assume each manufacturer consistently produces the same number of boats each year and that each manufacturer has the same market share. With 1,427 affected U.S. companies, this is an average of about 13 outboard boats per manufacturer (rounded). In Years 2 through 10, the ........... ........... ........... ........... ........... ........... ........... ........... Coast Guard estimates there are 19,009 outboard boats affected, at an average of about 13 outboard boats per manufacturer (19,009 boats divided by 1,427 manufacturers, rounded). At an estimated cost of $50 per outboard boat, the average total cost per manufacturer is $650 in Years 1 through 10. Table 8 summarizes the average costs per manufacturer of the interim rule by year. TABLE 8—INTERIM RULE AVERAGE COSTS PER MANUFACTURER Affected outboard boats Year(s) 1 ........................................................................................... 2–10 ..................................................................................... Next, we compared the average cost per manufacturer to the revenue of the manufacturers in our sample. As shown in Table 6, we found revenue or company data for 385 small entities. We found revenue information for 371 of these small entities, and we were only Manufacturers not in compliance 17,916 19,009 Average outboard boats produced by manufacturer 1,427 1,427 able to find employee data for 14 entities. Therefore, we could not compare the cost per manufacturer to the revenues for the 14 entities with only employee data. Table 9 summarizes the results. In Years 1 through 10, 94.6 percent of the affected Cost per outboard boats 13 13 $50 50 Average cost per manufacturer $650 650 manufacturers will incur a cost of 1 percent or less of revenue in any given year, while 0.3 percent will incur a cost impact of greater than 10 percent of revenue. TABLE 9—INTERIM RULE REVENUE IMPACTS Number of affected manufacturers Impact range Percent of affected manufacturers 352 17 1 0 1 94.9 4.6 0.3 0 0.3 Total .............................................................................................................................................................. sradovich on DSK3GMQ082PROD with RULES 0% < Impact ≤ 1% ............................................................................................................................................... 1% < Impact ≤ 3% ............................................................................................................................................... 3% < Impact ≤ 5% ............................................................................................................................................... 5% < Impact ≤ 10% ............................................................................................................................................. ≥10% .................................................................................................................................................................... 371 100% 4. A description of the projected reporting, recordkeeping, and other compliance requirements of the rule, including an estimate of the classes of small entities which will be subject to the requirements and the type of professional skills necessary for preparation of the report or record. 13 As indicated by either the revenue or employee data for businesses, we use ReferenceUSA (www.referenceusagov.com) and Manta (www.manta.com). VerDate Sep<11>2014 16:35 Apr 04, 2017 Jkt 241001 PO 00000 Frm 00011 Fmt 4700 Sfmt 4700 This rule calls for no new collection of information under the Paperwork Reduction Act of 1995, 44 U.S.C. 3501– 3520. E:\FR\FM\05APR1.SGM 05APR1 16520 Federal Register / Vol. 82, No. 64 / Wednesday, April 5, 2017 / Rules and Regulations 5. An identification, to the extent practicable, of all relevant Federal rules which may duplicate, overlap or conflict with the rule. There are no relevant Federal rules that may duplicate, overlap, or conflict with this interim rule. 6. A description of any significant alternatives to the rule which accomplish the stated objectives of applicable statutes and which minimize any significant economic impact of the rule on small entities. This interim rule implements section 308 of CGAA. The CGAA mandates the update of Table 4 in 33 CFR part 183. As such, the Coast Guard has no discretion to offer alternatives that minimize the impact on small entities while accomplishing the stated objective of the statute. To ease implementation of this requirement, the Coast Guard is delaying the effective date until June 1, 2018, so that the new requirements will apply only to boat manufacturers who build boats after that date. 7. Conclusion. We are interested in the potential impacts from this interim rule on small businesses and we request public comment on these potential impacts. If you think that this interim rule will have a significant economic impact on you, your business, or your organization, please submit a comment to the docket at the address under ADDRESSES in the interim rule. In your comment, explain why, how, and to what degree you think this interim rule will have an economic impact on you. sradovich on DSK3GMQ082PROD with RULES C. Assistance for Small Entities Under section 213(a) of the Small Business Regulatory Enforcement Fairness Act of 1996, Public Law 104– 121, we offered to assist small entities in understanding this rule so that they could better evaluate its effects on them and participate in the rulemaking. The Coast Guard will not retaliate against small entities that question or complain about this rule or any policy or action of the Coast Guard. Small businesses may send comments on the actions of Federal employees who enforce, or otherwise determine compliance with, Federal regulations to the Small Business and Agriculture Regulatory Enforcement Ombudsman and the Regional Small Business Regulatory Fairness Boards. The Ombudsman evaluates these actions annually and rates each agency’s responsiveness to small business. If you wish to comment on actions by employees of the Coast Guard, call 1– 888–REG–FAIR (1–888–734–3247). VerDate Sep<11>2014 16:35 Apr 04, 2017 Jkt 241001 D. Collection of Information This rule calls for no new collection of information under the Paperwork Reduction Act of 1995, 44 U.S.C. 3501– 3520. E. Federalism A rule has implications for federalism under Executive Order 13132 (‘‘Federalism’’), if it has a substantial direct effect on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government. We have analyzed this rule under E.O. 13132 and have determined that it is consistent with the fundamental federalism principles and requirements described in Executive Order 13132. Our analysis is explained below. Congress directed the Coast Guard to ‘‘establish minimum safety standards for recreational vessels’’ (46 U.S.C. 4302). This regulation is issued pursuant to that statute and is preemptive of State law as specified in 46 U.S.C. 4306. Under 46 U.S.C. 4306, ‘‘a State or political subdivision of a State may not establish, continue in effect, or enforce a law or regulation establishing a recreational vessel or associated or equipment performance or other safety standard . . . that is not identical to a regulation prescribed under’’ 46 U.S.C. 4302. As a result, States or local governments are expressly prohibited from regulating within this category. Therefore, the rule is consistent with the principles of federalism and preemption requirements in Executive Order 13132. While it is well settled that States may not regulate in categories in which Congress intended the Coast Guard to be the sole source of a vessel’s obligations, the Coast Guard recognizes the key role that State and local governments may have in making regulatory determinations. Additionally, for rules with implications and preemptive effect, Executive Order 13132 specifically directs agencies to consult with State and local governments during the rulemaking process. If you believe this rule has implications for federalism under Executive Order 13132, please contact the person listed in the FOR FURTHER INFORMATION CONTACT section of this preamble. F. Unfunded Mandates Reform Act The Unfunded Mandates Reform Act of 1995, 2 U.S.C. 1531–1538, requires Federal agencies to assess the effects of their discretionary regulatory actions. In particular, the Act addresses actions that may result in the expenditure by a PO 00000 Frm 00012 Fmt 4700 Sfmt 4700 State, local, or tribal government, in the aggregate, or by the private sector of $100,000,000 (adjusted for inflation) or more in any one year. Though this rule will not result in such an expenditure, we do discuss the effects of this rule elsewhere in this preamble. G. Taking of Private Property This rule will not cause a taking of private property or otherwise have taking implications under E.O. 12630 (‘‘Governmental Actions and Interference with Constitutionally Protected Property Rights’’). H. Civil Justice Reform This rule meets applicable standards in sections 3(a) and 3(b)(2) of E.O. 12988, (‘‘Civil Justice Reform’’), to minimize litigation, eliminate ambiguity, and reduce burden. I. Protection of Children We have analyzed this rule under E.O. 13045 (‘‘Protection of Children from Environmental Health Risks and Safety Risks’’). This rule is not an economically significant rule and would not create an environmental risk to health or risk to safety that might disproportionately affect children. J. Indian Tribal Governments This rule does not have tribal implications under E.O. 13175 (‘‘Consultation and Coordination with Indian Tribal Governments’’), because it would not have a substantial direct effect on one or more Indian tribes, on the relationship between the Federal Government and Indian tribes, or on the distribution of power and responsibilities between the Federal Government and Indian tribes. K. Energy Effects We have analyzed this rule under E.O. 13211 (‘‘Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use’’). We have determined that it is not a ‘‘significant energy action’’ under that order because it is not a ‘‘significant regulatory action’’ under E.O. 12866 and is not likely to have a significant adverse effect on the supply, distribution, or use of energy. L. Technical Standards The National Technology Transfer and Advancement Act, codified as a note to 15 U.S.C. 272, directs agencies to use voluntary consensus standards in their regulatory activities unless the agency provides Congress, through OMB, with an explanation of why using these standards would be inconsistent with applicable law or otherwise E:\FR\FM\05APR1.SGM 05APR1 Federal Register / Vol. 82, No. 64 / Wednesday, April 5, 2017 / Rules and Regulations impractical. Voluntary consensus standards are technical standards (e.g., specifications of materials, performance, design, or operation; test methods; sampling procedures; and related management systems practices) that are developed or adopted by voluntary consensus standards bodies. This rule uses a voluntary consensus standard: the current ABYC S–30. M. Environment We have analyzed this rule under Department of Homeland Security Management Directive 023–01 and Commandant Instruction M16475.lD, which guide the Coast Guard in complying with the National Environmental Policy Act of 1969, 42 U.S.C. 4321–4370f, and have concluded that this action is one of a category of actions which do not individually or cumulatively have a significant effect on the human environment. An environmental analysis checklist and a categorical exclusion determination supporting this determination are available in the docket where indicated under the ‘‘Public Participation and Request for Comments’’ section of this preamble. This rule involves the safe loading capacity and required amount of flotation material for certain recreational boats, which concerns equipping of vessels, equipment and vessel operation safety standards. As such, this action is categorically excluded under section 2.B.2 and figure 2–1, paragraph (34)(d) and (e) of the Instruction and under section 6(a) of the ‘‘Appendix to National Environmental Policy Act: Coast Guard Procedures for Categorical Exclusions, Notice of Final Agency Policy’’ (67 FR 48243, July 23, 2002). VII. Public Participation and Request for Comments 16521 List of Subjects in 33 CFR Part 183 We view public participation as essential to effective rulemaking, and will consider all comments and material received during the comment period. Your comment can help shape the outcome of this rulemaking. If you submit a comment, please include the docket number for this rulemaking, indicate the specific section of this document to which each comment applies, and provide a reason for each suggestion or recommendation. We encourage you to submit comments through the Federal eRulemaking Portal at https:// www.regulations.gov. If your material cannot be submitted using https:// www.regulations.gov, contact the person in the FOR FURTHER INFORMATION CONTACT section of this document for alternate instructions. Documents mentioned in this interim rule, and all public comments, are in our online docket at https://www.regulations.gov and can be viewed by following that Web site’s instructions. Additionally, if you go to the online docket and sign up for email alerts, you will be notified when comments are posted or a final rule is published. We accept anonymous comments. All comments received will be posted without change to https:// www.regulations.gov and will include any personal information you have provided. For more about privacy and the docket, you may review a Privacy Act notice regarding the Federal Docket Management System in the March 24, 2005, issue of the Federal Register (70 FR 15086). Marine safety. For the reasons discussed in the preamble, the Coast Guard amends 33 CFR part 183 as follows: PART 183—BOATS AND ASSOCIATED EQUIPMENT 1. The authority citation for part 183 is revised to read as follows: ■ Authority: 46 U.S.C. 4302; Pub. L. 103– 206, 107 Stat. 2439; and Department of Homeland Security Delegation No. 0170.1, para. II, (92)(b). Subpart E is also authorized by Pub. L. 114–120, 130 Stat. 27. § 183.41 [Amended] 2. Amend § 183.41 as follows: ■ a. In paragraph (a)(1), remove the text ‘‘from table 4 of subpart H of this part’’ and add, in its place, the text ‘‘required by § 183.75’’; and ■ b. In paragraph (a)(2)(ii), remove the text ‘‘shown in table 4 of subpart H of this part’’ and add, in its place, the text ‘‘required by § 183.75’’. ■ 3. Add subpart E to read as follows: ■ Subpart E—Flotation and Safe Loading Requirements–Outboard Motor and Related Equipment Test Weights § 183.75 Applicability. Manufacturers of vessels to which this subpart applies must use test weights that are not less than the recommended weights set forth in Table 183.75. Table 183.75 details the weight (in pounds) of gasoline outboard engines and related equipment for various rated power (horsepower) ranges. TABLE 183.75—WEIGHTS (IN POUNDS) OF GASOLINE OUTBOARD ENGINES AND RELATED EQUIPMENT FOR VARIOUS RATED POWER (HORSEPOWER) RANGES Single engine installations Column number 1 2 sradovich on DSK3GMQ082PROD with RULES Engine power range (Horsepower) Dry weight 1 2 0.1–2.0 ............................. 2.1–3.9 ............................. 4.0–6.9 ............................. 7.0–10.9 ........................... 11.0–22.9 ......................... 23.0–34.9 ......................... 35.0–64.9 ......................... 65.0–94.9 ......................... 95.0–104.9 ....................... 105.0–144.9 ..................... 145.0–194.9 ..................... 195.0–209.9 ..................... 210.0–300.0 ..................... VerDate Sep<11>2014 3 16:35 Apr 04, 2017 Running weight 3 30 42 66 105 127 187 286 439 458 526 561 652 699 Jkt 241001 4 Swamped weight 4 32 44 69 110 133 196 300 461 481 552 589 685 734 PO 00000 Frm 00013 Controls & rigging 5 27 37 59 94 113 167 255 392 409 469 501 582 624 Fmt 4700 0 0 0 5 6 9 14 22 23 26 28 33 35 Sfmt 4700 7 8 9 6 5 Battery weight, dry Battery weight submerged Full portable fuel tank 6 Total weight Sum of columns 3,5,6,8) 0 0 0 20 45 45 45 45 45 45 45 45 45 E:\FR\FM\05APR1.SGM 0 0 0 11 25 25 25 25 25 25 25 25 25 05APR1 0 0 25 50 50 100 100 100 100 100 100 100 100 32 44 94 185 234 350 459 628 649 723 762 863 914 16522 Federal Register / Vol. 82, No. 64 / Wednesday, April 5, 2017 / Rules and Regulations TABLE 183.75—WEIGHTS (IN POUNDS) OF GASOLINE OUTBOARD ENGINES AND RELATED EQUIPMENT FOR VARIOUS RATED POWER (HORSEPOWER) RANGES—Continued Single engine installations Column number 1 2 Engine power range (Horsepower) 3 Running weight 3 Dry weight 1 2 300.1–350.0 ..................... 4 884 Swamped weight 4 928 7 8 9 6 Battery weight, dry Battery weight submerged Full portable fuel tank 6 Total weight Sum of columns 3,5,6,8) 5 Controls & rigging 5 789 44 45 25 100 1,117 Notes: 1 Dry weight is the manufacturer’s published weight for the shortest midsection increased by 10 percent to account for longer midsections and additional required hardware usually not included in published weights. This weight is intended to represent the heaviest model in each power category. For boats designed with a transom height of 20 inches or less, the weight in Column 2 may be reduced by 10 percent. Recalculate Columns 3, 4, and 9 as appropriate. 2 For diesel outboards, replace the value in Column 2 with the manufacturer’s published dry weight + 10 percent. 3 Running weight is the dry weight plus fluids (including 2-stroke oil) and the heaviest recommended propeller. Calculated as 5 percent of dry weight. 4 Swamped weight is 85 percent of running weight. 5 Rigging and controls include engine related hardware required to complete the installation (e.g., controls, cables, hydraulic hoses, steering pumps and cylinders). Calculated as 5 percent of dry weight. 6 If the boat is equipped with a permanent fuel system and is not intended to use a portable tank, the portable fuel tank weight may be omitted. § 183.220 [Amended] DEPARTMENT OF THE INTERIOR 4. Amend § 183.220 as follows: a. In paragraph (b)(2), remove the text ‘‘shown in Column 6 of Table 4’’ and add, in its place, the text ‘‘shown in Column 9 of Table 183.75’’; and ■ b. In paragraph (d), remove the text ‘‘specified in Columns 2 and 4 of Table 4 for the swamped weight of the motor and controls and for the submerged weight or’’ and add, in its place, the text ‘‘specified in Columns 4 and 7 of Table 183.75 for the swamped weight of the motor and controls and for the submerged weight of’’. ■ Fish and Wildlife Service ■ § 183.320 [Amended] 5. Amend § 183.320 as follows: a. In paragraph (b)(2), remove the text ‘‘shown in column 6 of Table 4’’ and add, in its place, the text, ‘‘shown in Column 9 of Table 183.75’’; and ■ b. In paragraph (d), remove the text ‘‘specified in Column 2 of Table 4’’ and add, in its place, the text ‘‘specified in Column 4 of Table 183.75’’. ■ ■ Table 4 to Subpart H of Part 183 [Removed] 6. Remove Table 4 to Subpart H of Part 183. sradovich on DSK3GMQ082PROD with RULES ■ Dated: March 29, 2017. V.B. Gifford, Captain, U.S. Coast Guard, Director of Inspections and Compliance. [FR Doc. 2017–06733 Filed 4–4–17; 8:45 am] BILLING CODE 9110–04–P VerDate Sep<11>2014 16:35 Apr 04, 2017 Jkt 241001 50 CFR Parts 15 and 17 [Docket No. FWS–HQ–ES–2015–0176; 4500030113] RIN 1018–BB29 Endangered and Threatened Wildlife and Plants; Removal of the ScarletChested Parrot and the Turquoise Parrot From the Federal List of Endangered and Threatened Wildlife Fish and Wildlife Service, Interior. ACTION: Final rule. AGENCY: We, the U.S. Fish and Wildlife Service (Service), are removing the scarlet-chested parrot (Neophema splendida) and the turquoise parrot (Neophema pulchella) from the Federal List of Endangered and Threatened Wildlife under the Endangered Species Act of 1973, as amended (Act). Our review of the status of these parrots shows that the threats have been eliminated or reduced and populations of both species are stable, with potential increases noted for the turquoise parrot in some areas. These species are not currently in danger of extinction, and are not likely to again become in danger of extinction within the foreseeable future in all or significant portions of their ranges. After the effective date of this final rule, the scarlet-chested and the turquoise parrots will remain protected under the provisions of the Convention on International Trade in Endangered Species of Wild Fauna and SUMMARY: PO 00000 Frm 00014 Fmt 4700 Sfmt 4700 Flora (CITES). To date, the scarletchested and turquoise parrots remain on the Approved List of Captive-bred Species under the Wild Bird Conservation Act of 1992 (WBCA). DATES: This rule becomes effective May 5, 2017. ADDRESSES: Comments and materials we received, as well as supporting documentation we used in preparing this rule, are available for public inspection at https:// www.regulations.gov under Docket No. FWS–HQ–ES–2015–0176. Comments, materials, and documentation that we considered in this rulemaking will be available by appointment during normal business hours at: U.S. Fish and Wildlife Service, MS: ES, 5275 Leesburg Pike, Falls Church, VA 22041–3803; telephone, 703–358–2171; facsimile, 703–358–1735. If you use a telecommunications device for the deaf (TDD), call the Federal Relay Service at 800–877–8339. FOR FURTHER INFORMATION CONTACT: Janine Van Norman, Chief, Branch of Foreign Species, Ecological Services, U.S. Fish and Wildlife Service, MS: ES, 5275 Leesburg Pike, Falls Church, VA 22041–3803; telephone, 703–358–2171; facsimile, 703–358–1735. If you use a telecommunications device for the deaf (TDD), call the Federal Relay Service at 800–877–8339. SUPPLEMENTARY INFORMATION: Executive Summary This document contains a final rule to remove the scarlet-chested parrot and the turquoise parrot from the Federal List of Endangered and Threatened Wildlife. E:\FR\FM\05APR1.SGM 05APR1

Agencies

[Federal Register Volume 82, Number 64 (Wednesday, April 5, 2017)]
[Rules and Regulations]
[Pages 16512-16522]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-06733]

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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Part 183

[Docket No. USCG-2016-1012]
RIN 1625-AC37

Recreational Boat Flotation Standards--Update of Outboard Engine
Weight Test Requirements

AGENCY: Coast Guard, DHS.

ACTION: Interim rule.

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SUMMARY: The Coast Guard is issuing this interim rule to update the
table of outboard engine weights used in calculating safe loading
capacities and required amounts of flotation material. The engine
weight table was last updated in 1984, and the Coast Guard
Authorization Act of 2015 requires that we update the table to reflect
a specific standard.

DATES: This interim rule is effective on June 1, 2018. Comments and
related material must be submitted to the online docket via https://www.regulations.gov, or reach the Docket Management Facility, on or
before July 5, 2017.

ADDRESSES: You may submit comments identified by docket number USCG-
2016-1012 using the Federal eRulemaking Portal at https://www.regulations.gov. See the ``Public Participation and Request for
Comments'' portion of the SUPPLEMENTARY INFORMATION section for further
instructions on submitting comments.

FOR FURTHER INFORMATION CONTACT: For information about this document
call or email Mr. Jeffrey Ludwig, Coast Guard; telephone 202-372-1061,
email Jeffrey.A.Ludwig@uscg.mil.

SUPPLEMENTARY INFORMATION:

Table of Contents for Preamble

I. Abbreviations
II. Basis and Purpose
III. Regulatory History
IV. Background
V. Discussion of Rule
VI. Regulatory Analyses
A. Regulatory Planning and Review

[[Page 16513]]

B. Small Entities
C. Assistance for Small Entities
D. Collection of Information
E. Federalism
F. Unfunded Mandates Reform Act
G. Taking of Private Property
H. Civil Justice Reform
I. Protection of Children
J. Indian Tribal Governments
K. Energy Effects
L. Technical Standards
M. Environment
VII. Public Participation and Request for Comments

I. Abbreviations

ABYC American Boat and Yacht Council
ABYC S-30 American Boat and Yacht Council S-30--Outboard Engines and
Related Equipment Weights
CGAA Coast Guard Authorization Act of 2015 (Pub. L. 114-120, 130
Stat. 27; Feb. 8, 2016)
CFR Code of Federal Regulations
DHS Department of Homeland Security
E.O. Executive Order
FR Federal Register
IRFA Initial Regulatory Flexibility Analysis
MIC Manufacturer Identification Code
NAICS North American Industry Classification System
NBSAC National Boating Safety Advisory Council
NMMA National Marine Manufacturers Association
OMB Office of Management and Budget
Pub. L. Public Law
RA Regulatory analysis
Sec. Section symbol
SBA Small Business Administration
U.S.C. United States Code

II. Basis and Purpose

Section 308 of the Coast Guard Authorization Act of 2015 (Pub. L.
114-120, 130 Stat. 27) (CGAA) requires the Coast Guard to issue
regulations, not later than 180 days after enactment, updating Table 4
of subpart H in Title 33 of the Code of Federal Regulations (CFR) part
183 to reflect the American Boat and Yacht Council S-30--Outboard
Engines and Related Equipment Weights (ABYC S-30) standard.
Additionally, 46 U.S.C. 4302(b), which provides authority for 33
CFR part 183, requires the effective date for rules issued under that
provision be delayed at least 180 days after publication, but not more
than 2 years for cases involving major product design, retooling, or
changes in the manufacturing process. It also requires consultation
with the National Boating Safety Advisory Council (NBSAC).\1\ Although
this rule is issued pursuant to CGAA and not 46 U.S.C. 4302, it amends
regulations issued pursuant to section 4302 and the 180-day delay is
appropriate. The delay provides manufacturers with time to adjust their
operations to comply with the new standard. We have implemented that
delay of effective date in this rule.
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\1\ The NBSAC recommended to the Coast Guard in 2000 that the
weight table be updated (Resolution number 2000-66-05), and
discussed the replacement of Table 4 with the ABYC standard at their
April 2016 meeting.
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III. Regulatory History

We did not publish a notice of proposed rulemaking before this
interim rule. The Coast Guard finds good cause to forgo prior notice
and opportunity to comment under 5 U.S.C. 553(b)(B), because section
308 of CGAA provides the Coast Guard no discretion in adopting the
specific industry standard for engine weights. The Coast Guard may not
decline to update the engine weight standards, choose to adopt a
different standard, or respond to public comments by modifying the
substance of the rule. Because the Act does not allow for alternatives;
the Coast Guard may not adopt a different standard or modify the
substance of the rule in response to public comments. Therefore, it was
unnecessary and impracticable to provide the public with notice and
opportunity to comment before publishing this interim rule.
This rule also relocates the relevant table within the CFR, and
makes similar administrative changes that have no substantive effect on
the public. Because these changes do not create or change any rights or
responsibilities for the public, prior notice and opportunity to
comment are unnecessary under 5 U.S.C. 553(b)(B). However, the Coast
Guard is interested in the public's views on these changes.
In addition, we are delaying the effective date of this rule until
June 1, 2018, for two reasons: (1) To meet the intent of 46 U.S.C.
4302(b), as described earlier in this rule, and (2) to align with the
recreational boat model year so that requirements do not change during
a model year production run. The delay in effective date allows time
for a post-publication comment period and for non-substantive changes
if needed.
Therefore, even though 5 U.S.C. 553 allows the Coast Guard to forgo
notice and opportunity for comment prior to issuing this rule, we
invite public comment on the interim rule. We will not have the
authority to change the substance of the rule--for example, the
specific weight standard used--in response to public comment, because
that requirement is set in statute. However, we invite public comment
on other aspects of the rule, such as changes we have made to cross-
references, and we may make changes after considering those comments.
We believe this strikes the best balance between satisfying the
statute, putting a rule in place soon so that manufacturers can plan
ahead, and allowing public comment to the extent we are permitted by
CGAA.

IV. Background

Congress has authorized the Coast Guard to prescribe regulations
establishing minimum safety standards for recreational vessels and
associated equipment. In 1977, the Coast Guard established flotation
requirements for boats less than 20 feet in length, and established a
weight table (Table 4 of subpart H in 33 CFR part 183) used to assist
the boat manufacturer in determining the amount of flotation to be
included in a boat's design and construction.
Table 4 was last updated in 1984, but the size and weight of
outboard engines has evolved over the years to the point that Table 4
no longer accurately represents the weights of outboard engines
available on the market.
The American Boat and Yacht Council (ABYC) is a non-profit
organization that develops voluntary safety standards for the design,
construction, maintenance, and repair of recreational boats. Among the
voluntary safety standards that ABYC develops and updates on a regular
basis is S-30--Outboard Engines and Related Equipment Weights (ABYC S-
30). This standard reflects the current state of marine outboard engine
weights.

V. Discussion of Rule

This rulemaking adopts the current ABYC S-30 to replace Table 4 of
subpart H in 33 CFR part 183. The current ABYC S-30 is dated July 2012,
and was the standard in effect on the date of enactment of the Act.
In the CFR, Table 4 applies to monohull outboard boats that are
less than 20 feet in length, which includes recreational vessels as
well as some commercial fishing vessels. It is also used indirectly for
flotation requirements for survival craft covered by 46 CFR part 25
(uninspected vessels), 46 CFR part 117 (small passenger vessels
carrying more than 150 passengers), 46 CFR part 141 (towing vessels)
and 46 CFR part 180 (small passenger vessels under 100 gross tons).
Changing the figures in Table 4, as required by the Act, will require
more flotation in each new boat, to support the weight of heavier
engines.
This rule removes Table 4 and replaces it with a new section in
subpart E of part 183. That section contains the table of the ABYC S-30
standard and its corresponding footnotes. We made minor edits to the
footnotes developed

[[Page 16514]]

by ABYC to accommodate the location of the table in the CFR and to
reflect the removal of Table 4. We also made conforming changes to
several sections that referenced Table 4.

VI. Regulatory Analyses

We developed this rule after considering numerous statutes and
Executive Orders (E.O.s) related to rulemaking. Below we summarize our
analyses based on these statutes or E.O.s.

A. Regulatory Planning and Review

Executive Orders 12866 (``Regulatory Planning and Review'') and
13563 (``Improving Regulation and Regulatory Review'') direct agencies
to assess the costs and benefits of available regulatory alternatives
and, if regulation is necessary, to select regulatory approaches that
maximize net benefits (including potential economic, environmental,
public health and safety effects, distributive impacts, and equity).
Executive Order 13563 emphasizes the importance of quantifying both
costs and benefits, of reducing costs, of harmonizing rules, and of
promoting flexibility. Executive Order 13771 (``Reducing Regulation and
Controlling Regulatory Costs'') directs agencies to reduce regulation
and control regulatory costs and provides that ``for every one new
regulation issued, at least two prior regulations be identified for
elimination, and that the cost of planned regulations be prudently
managed and controlled through a budgeting process.''
The Office of Management and Budget (OMB) has not designated this
rule a significant regulatory action under section 3(f) of Executive
Order 12866. Accordingly, the Office of Management and Budget (OMB) has
not reviewed it. As this rule is not a significant regulatory action,
this rule is exempt from the requirements of Executive Order 13771. See
OMB's Memorandum titled ``Interim Guidance Implementing Section 2 of
the Executive Order of January 30, 2017 titled `Reducing Regulation and
Controlling Regulatory Costs' '' (February 2, 2017). A regulatory
analysis (RA) follows.
This RA provides an evaluation of the economic impacts associated
with this interim rule. The Coast Guard is issuing an interim rule to
implement section 308 of the CGAA. The CGAA mandates that the Coast
Guard issue regulations to amend Table 4 of subpart H in 33 CFR part
183 to reflect the standards in ABYC S-30. Consequently, 100% of the
costs of this rule are due to a Congressional mandate and the Coast
Guard has no discretion to adopt a different standard that would lower
the cost of this rule. Changes in the design and construction of modern
outboard engines necessitate a change in the table of outboard engine
weights used in calculating safe loading capacities and required
amounts of flotation material in the Safe Loading and Flotation
Standards found in 33 CFR part 183, subparts G and H.
Table 1 of this document provides a summary of the affected
population, costs, and benefits of this rule.

Table 1--Summary of the Impacts of the Interim Rule
------------------------------------------------------------------------
Category Summary
------------------------------------------------------------------------
Applicability................ Update Table 4 of subpart H in 33 CFR
part 183 with ABYC S-30.
Affected Population.......... 1,427 manufacturers of monohull outboard
boats of less than 20 feet in length.
Costs to Industry ($, 7% 10-year: $6,624,488.
discount rate). Annualized: $943,178.
Unquantified Benefits........ Creates uniformity by aligning all boats
to the same standard.
Brings those boats not currently in
compliance with ABYC S-30 to a higher
level of safety than the standard
currently in regulation.
------------------------------------------------------------------------

Affected Population
This interim rule will adopt the current ABYC S-30 to replace Table
4 of subpart H in 33 CFR part 183. Table 4 applies to monohull outboard
boats that are less than 20 feet in length, including recreational
vessels and some commercial fishing vessels.
Table 4 is also used indirectly for flotation requirements for
survival craft covered by 46 CFR part 25 (uninspected vessels), 46 CFR
part 117 (small passenger vessels carrying more than 150 passengers),
46 CFR part 141 (towing vessels), and 46 CFR part 180 (small passenger
vessels under 100 gross tons). Small passenger vessels are required to
carry certain survival craft, depending on their route and
construction, in order to have the capacity to evacuate a certain
percentage of the number of people on board. These survival craft are
generally life rafts or floats, which do not have engines and are not
impacted by this interim rule. However, small passenger vessels could
voluntarily carry a small boat that can be used to carry some of the
passengers, thereby reducing the number of other survival craft they
are required to carry (46 CFR 117.200(b) and 46 CFR 180.200(b)).
Because this is a voluntary option available for these vessels, we do
not include them in our analysis. However, we do note that if the
uninspected vessels, small passenger vessels carrying more than 150
passengers, towing vessels, or small passenger vessels under 100 gross
tons choose to carry a small boat on board that does not meet ABYC S-30
standard, they could be indirectly affected by this interim rule.
Because this interim rule applies only to new boats manufactured after
June 1, 2018, any small passenger vessels already carrying small boats
subject to Table 4 of subpart H will not be affected. If they choose to
replace their small boat with a boat built after June 1, 2018, they may
be indirectly affected if the manufacturer passes the costs of this
interim rule on to the consumers. We account for the direct costs to
manufacturers in this analysis.
The interim rule will affect manufacturers that produce monohull
outboard boats that are less than 20 feet in length and that are not
currently building boats to ABYC S-30 standard. The Coast Guard used
the list of active Manufacturer Identification Code (MIC) holders, as
required by 33 CFR part 181, subpart C, to determine the affected
population. This list represents all recreational boat MICs that are
currently active. We then removed any MICs that will not be affected by
this rule from the list of manufacturers. This includes: (1)
Manufacturers with multiple MICs; (2) MICs belonging to manufacturers
that only build boats greater than 20 feet in length; (3) MICs
belonging to manufacturers that do not build monohull outboard boats;
and (4) MICs belonging to manufacturers that only produce boats
exempted from this regulation by 33 CFR 183.201(b), including
sailboats, canoes, kayaks, inflatable boats, submersibles, surface
effect vessels, amphibious vessels, and raceboats. We found there are
no more

[[Page 16515]]

than 1,519 affected manufacturers that produce monohull outboard boats
that are less than 20 feet in length.
Some of these 1,519 monohull manufacturers are currently in
compliance with ABYC S-30 standard, and therefore will not incur
additional costs because of this rule. The National Marine
Manufacturers Association (NMMA) requires its members to build boats to
the ABYC standard.\2\ These NMMA builders produce about 85 percent of
the recreational boats built each year.\3\ We found 92 monohull
manufacturers that are currently NMMA members and therefore we assume
they are in compliance. We assume the remaining 1,427 monohull
manufacturers are not compliant with the current voluntary standard and
will be affected by this rule.
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\2\ See Michael Vatalaro, What ``NMMA-Certified'' Really Means,
BoatUS, Feb. 2014, https://www.boatus.com/magazine/2014/february/what-nnma-certified-means.asp.
\3\ Id.
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Costs to Industry
This interim rule will adopt the current ABYC S-30, to replace
Table 4 of subpart H. This change will increase costs to 1,427 monohull
manufacturers that are assumed to be not in compliance. The increase in
the weight table figures will require an additional 1 to 2 cubic feet
of flotation to be added to each boat manufactured after the
implementation date of June 1, 2018. We estimate the foam for the
additional flotation will cost an average of $10 per boat.\4\ Some
manufacturers may need to make minor adjustments such as enclosing an
aft seat and adding foam under the seat to accommodate the additional
foam in the boats. Therefore, Coast Guard uses an estimate of $50 per
boat to account for the foam and any minor adjustments that may be
necessary.\5\ Manufacturers could incur costs related to determining
where to put the additional flotation on a vessel, but we believe
redesign costs would not be needed as the additional flotation material
is minimal and the placement of the material is fairly standard. The
manufacturers are already required to add flotation to boats, so there
will be no costs for new equipment, facilities, or retrofitting of
facilities.
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\4\ The $10 estimate is based on 2 LB Density Urethane Foam
estimates from US Composites (https://www.uscomposites.com/foam.html)
and conversations with manufacturers. Foam prices vary based on the
size of the kits. The cost of kits range from a 2 cubic foot kit
cost of $22.50 ($11.25 per cubic foot) to $264 for a 40 cubic foot
kit ($6.60 per cubic foot). Conversations with manufacturers
confirmed $10 is a reasonable average estimate for adding 1 to 2
cubic feet of additional flotation, that takes into account the
varying costs based on the size of kits purchased and that
manufacturers may pay less than the listed prices based on their
purchasing agreements with the suppliers.
\5\ Based on discussions with manufacturers, the additional $40
estimate is to cover the cost of enclosing a rear seat to add
flotation foam under it or to add small chambers, especially on open
aluminum boats, to accommodate the additional flotation foam.
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To estimate the total cost to industry, we then estimated the total
number of outboard boats less than 20 feet in length manufactured per
year by the monohull manufacturers that are not in compliance. The
Coast Guard used data from the NMMA's 2015 Recreational Boating
Statistical Abstract \6\ to estimate the total affected outboard boats.
The NMMA breaks down outboard boat sales by two hull materials:
Fiberglass and aluminum. The NMMA estimates that in 2015, 51,300
fiberglass outboard boats and 104,500 aluminum outboard boats were
sold. Of these boats sold, 42.7 percent of the fiberglass outboard
boats and 60.4 percent of the aluminum outboard boats were less than 20
feet in length. Multiplying the percentage market share of boats less
than 20 feet by the total sales of boats by material, we found there
were 21,905 fiberglass boats and 63,118 aluminum outboard boats less
than 20 feet sold in 2015 (see Table 2).
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\6\ A summary of the NMMA abstract is available at https://www.nmma.org/statistics/publications/statistical-abstract. The full
report is available for purchase through NMMA. The Coast Guard used
data from Powerboat Sales Trends, Table 1: Outboard boats: Estimated
sales by hull market; Table 2: Fiberglass outboard boats: Estimated
market share by length; and Table 3: Aluminum outboard boats:
Estimated market share by length.

Table 2--Total Sales and Market Share of Outboard Boats by Material Type
----------------------------------------------------------------------------------------------------------------
Percentage
market share Total outboard
Outboard boat by material Estimated total outboard boats boats less than
sales less than 20 20 feet sold in
feet 2015
----------------------------------------------------------------------------------------------------------------
Fiberglass................................................ 51,300 42.7 21,905
Aluminum.................................................. 104,500 60.4 63,118
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Total................................................. 155,800 ................ 85,023
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The total 85,023 outboard boats less than 20 feet that were sold in
2015 were produced by a mix of manufacturers that are already in
compliance with the ABYC S-30 standard and manufacturers that are not
in compliance and will be impacted by this rule. The NMMA estimates
that around 85 percent of the boats sold in the United States are
already in compliance with the ABYC S-30 standard. Therefore, the Coast
Guard estimates 15 percent of the total outboard boats less than 20
feet sold were produced by manufacturers not in compliance with the
ABYC standard. These 12,753 boats (15 percent of the 85,023 outboard
boats less than 20 feet, rounded) will require $50 of additional
flotation materials to align with the new standard.
To estimate the affected outboard boats over our 10-year period of
analysis, we used NMMA data to forecast future boat building
production.\7\ The NMMA anticipates annual production will rise through
at least 2018 before leveling off into at least early 2019. The NMMA
does not have estimates for production past 2019. Since the NMMA
anticipates production will plateau once it reaches the levels of
production estimated in 2019, the Coast Guard assumes production will
hold at 2019 levels. Production could decrease or increase, resulting
in higher or lower industry costs, but for the purposes of this
analysis we assume production remains constant past 2019. Table 3 shows
our baseline affected population, the forecasted percentage increases
over the previous year estimated by NMMA, and the resulting number of
affected outboard boats.\8\
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\7\ Production forecasts are internal NMMA estimates that were
provided to the Coast Guard on 9/7/2016.
\8\ Forecasted percentages for 2016 and 2019 were given in NMMA
data. Forecasted percentages for years 2017 and 2018 were calculated
from NMMA's forecasted annual production index. For 2017, the
affected outboard boats manufactured annually are calculated as [1 +
((170.1-147.6)/147.6)] * 14,232 = 16,402, rounded. For 2018, the
affected outboard boats manufactured annually are calculated as [1 +
(185.8-170.1)/170.1] * 16,402, rounded.

[[Page 16516]]

Table 3--Forecasted Affected Outboard Boats
------------------------------------------------------------------------
Forecasted Affected
percentage outboard boats
Year increase over manufactured
previous year annually
------------------------------------------------------------------------
2015................................ ................ 12,753
2016................................ 11.6 14,232
2017................................ 15.2 16,402
2018................................ 9.2 17,916
2019................................ 6.1 19,009
2020+............................... 0.0 19,009
------------------------------------------------------------------------

As this interim rule will be effective June 1, 2018, any outboard
boats manufactured after this date will need to be in compliance with
ABYC S-30 standard. The Coast Guard anticipates most manufacturers will
begin making the necessary changes at the beginning of 2018. All
manufacturers will be in compliance by June 1, 2018 of Year 1, which
corresponds with the 2018 estimated affected outboard boats in Table 3.
We estimate there will be 17,916 affected outboard boats in Year 1 and
19,009 affected outboard boats in Years 2 through 10. Table 4
summarizes the estimated affected population of outboard boats that we
used to estimate the 10-year costs of this interim rule.

Table 4--Ten-Year Projection of Affected Outboard Boats
------------------------------------------------------------------------
Affected
Year outboard
boats
------------------------------------------------------------------------
1........................................................... 17,916
2........................................................... 19,009
3........................................................... 19,009
4........................................................... 19,009
5........................................................... 19,009
6........................................................... 19,009
7........................................................... 19,009
8........................................................... 19,009
9........................................................... 19,009
10.......................................................... 19,009
------------------------------------------------------------------------

We then multiplied the projected number of affected outboard boats each
year in Table 4 by the estimated cost per boat of $50. Table 5 shows
the total costs of this interim rule on an undiscounted basis, and
discounted at 7 and 3 percent.

Table 5--Total Costs of Interim Rule
----------------------------------------------------------------------------------------------------------------
Total Total, discounted
Year undiscounted -------------------------------
costs 7% 3%
----------------------------------------------------------------------------------------------------------------
1............................................................... $895,800 $837,196 $869,709
2............................................................... 950,450 830,160 895,840
3............................................................... 950,450 775,850 869,796
4............................................................... 950,450 725,094 844,463
5............................................................... 950,450 677,658 819,867
6............................................................... 950,450 633,325 795,987
7............................................................... 950,450 591,892 772,803
8............................................................... 950,450 553,171 750,294
9............................................................... 950,450 516,982 728,441
10.............................................................. 950,450 483,161 707,224
-----------------------------------------------
Total....................................................... 9,449,850 6,624,488 8,054,473
Annualized...................................................... .............. 943,178 944,230
----------------------------------------------------------------------------------------------------------------
Note: Totals may not sum due to independent rounding.

The total 10-year undiscounted cost of this interim rule is $9,449,850.
The total 10-year discounted cost of this interim rule is $6,624,488
and the annualized cost is $943,178, both discounted at 7 percent. The
manufacturers of outboard boats less than 20 feet in length not in
compliance with ABYC S-30 standard will bear these costs. However, it
is possible that manufacturers may pass these costs onto the
recreational boat owners by incorporating the additional costs of this
interim rule into the sales price. The sale price of the affected boats
can range from $3,000 through $50,000. If we use an average of $26,500
per boat, the $50 average cost per boat represents 0.2 percent of the
sales price. However, 85 percent of the boats sold in the United States
are already in compliance and include this cost of floatation in the
sales prices.
Benefits
This rule does not provide any quantitative benefits. However, it
does have qualitative benefits. This rule will create uniformity by
aligning all boats to the same standard. The ABYC S-30 provides a
higher level of safety than that provided by the standard currently in
the regulation. Requiring all boats less than 20 feet in length that
currently do not meet ABYC S-30 standard weights to comply with that
standard

[[Page 16517]]

will improve the buoyancy of these boats, and therefore, improve their
safety.

B. Small Entities

In accordance with the Regulatory Flexibility Act (5 U.S.C. 601-
612), the Coast Guard prepared this Initial Regulatory Flexibility
Analysis (IRFA) that examines the impacts of the interim rule on small
entities (5 U.S.C. 601 et seq.). We recognize that an IRFA is not
required for an interim rule that was not preceded by a general notice
of proposed rulemaking. We are including an analysis of the interim
rule requirements on small entities for informational purposes.
A small entity may be: a small independent business, defined as
independently owned and operated, is organized for profit, and is not
dominant in its field per the Small Business Act (5 U.S.C. 632); a
small not-for-profit organization (any not-for-profit enterprise which
is independently owned and operated and is not dominant in its field);
or a small governmental jurisdiction (locality with fewer than 50,000
people) per the Regulatory Flexibility Act (RFA), 5 U.S.C. 601-612.
An IRFA addresses the following:
(1) A description of the reasons why action by the agency is being
considered;
(2) A succinct statement of the objectives of, and legal basis for,
the rule;
(3) A description of and, where feasible, an estimate of the number
of small entities to which the rule will apply;
(4) A description of the projected reporting, recordkeeping and
other compliance requirements of the rule, including an estimate of the
classes of small entities that will be subject to the requirement and
the type of professional skills necessary for preparation of the report
or record;
(5) An identification, to the extent practicable, of all relevant
Federal rules that may duplicate, overlap or conflict with the rule;
and
(6) A description of any significant alternatives to the rule that
accomplish the stated objectives of applicable statutes and that
minimize any significant economic impact of the rule on small entities.
1. A description of the reasons why action by the agency is being
considered.
Congress has authorized the Coast Guard to prescribe regulations
establishing minimum safety standards for recreational vessels and
associated equipment. In 1977, the Coast Guard established flotation
requirements for boats less than 20 feet in length, and established a
weight table (Table 4 of subpart H in 33 CFR part 183) used to assist
the boat manufacturer in determining the amount of flotation to be
included in a boat's design and construction.
Table 4 was last updated in 1984, but the size and weight of
outboard engines has evolved over the years to the point where Table 4
no longer accurately represents the weights of outboard engines
available on the market. Changes in the design and construction of
modern outboard engines necessitate a change in the table of outboard
engine weights used in calculating safe loading capacities and required
amounts of flotation material in the Safe Loading and Flotation
Standards found in 33 CFR part 183, subparts G and H.
2. A succinct statement of the objective of, and legal basis for,
the rule.
Congress has authorized the Coast Guard to prescribe regulations
establishing minimum safety standards for recreational vessels and
associated equipment. Section 308 of the CGAA requires the Coast Guard
to issue regulations updating Table 4 of subpart H in 33 CFR part 183
with ABYC S-30 not later than 180 days after enactment. This rulemaking
will adopt the current ABYC S-30 to replace Table 4. The current ABYC
S-30 is dated July 2012. Table 4 of subpart H applies to monohull
outboard boats that are less than 20 feet in length, which includes
recreational vessels as well as some commercial fishing vessels. It is
also used indirectly for flotation requirements for survival craft
covered by 46 CFR part 25 (uninspected vessels), 46 CFR part 117 (small
passenger vessels carrying more than 150 passengers), 46 CFR part 141
(towing vessels), and 46 CFR part 180 (small passenger vessels under
100 gross tons).
3. A description of and, where feasible, an estimate of the number
of small entities to which the rule will apply.
This interim rule will affect manufacturers that produce monohull
outboard boats that are less than 20 feet in length that are not
currently building boats to ABYC S-30 standard.
Based on Coast Guard's list of active MIC holders, we estimate this
interim rule will affect 1,427 U.S. companies. We researched the number
of employees and revenue of these companies using proprietary and
public business databases.\9\ We then measured company size data using
the Small Business Administration's (SBA) business size standards to
assess how many companies in this industry may be small entities.\10\
The SBA provides business size standards for all sectors of the North
American Industry Classification System (NAICS).\11\
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\9\ Data sources: ReferenceUSA (www.referenceusagov.com) and
Manta (www.manta.com).
\10\ ``Small entities'' include small businesses that meet the
Small Business Administration size standard for small business
concerns at 13 CFR 121.201, small governmental jurisdictions with a
population of less than 50,000, and small organizations that are
independently owned not-for-profit enterprises and which are not
dominant in their field. See 5 U.S.C. 601(3)-(5).
\11\ SBA size standards are matched to NAICS, effective February
26, 2016. See Contracting: Table of Small Business Size Standards,
Small Business Administration, https://www.sba.gov/content/small-business-size-standards.
---------------------------------------------------------------------------

Using a random sample of companies out of the total population of
1,427 affected U.S. companies, we researched 749 companies and found
company-specific revenue and employment information and data on 388 of
them.\12\ We assumed that the remaining 361 companies (for which the
revenue and employment information was unavailable) are small entities
for the purpose of this analysis. Of the 388 companies for which
revenue and employment information was available, we found three
entities that exceeded the small entity thresholds for their relevant
NAICS code. The remaining 385 companies are small entities as defined
by the SBA thresholds. Adding these small entities to the companies
without revenue and employment information, we estimate a total of 746
of the companies are small entities. Using the results of this random
sample, we calculated the fraction of small entities by dividing the
total small entities by the sample size. Therefore, we estimate that
99.6 percent of all monohull companies not currently building to ABYC
S-30 standard fall below the threshold for small businesses. Table 6
summarizes the findings of our small entity threshold analysis.
---------------------------------------------------------------------------

\12\ Using a 95 percent confidence level, a sample size of 385
companies is sufficient. Our research started with a random sample
of 749 companies that yielded 388 entities for which requisite
information was found.

Table 6--Number of Companies and Small Entities Researched
------------------------------------------------------------------------
Number of
Category companies
------------------------------------------------------------------------
(a) Sample Size............................................. 749
(b) Without Revenue or Employment Data...................... 361
(c ) With Revenue or Employee Data.......................... 388

[[Page 16518]]

(d) Exceeded Small Entity Threshold......................... 3
(e) Below the Small Business Threshold...................... 385
Total Small Entities, (b) + (e)......................... 746
Total, (a).............................................. 749
Fraction Small Entities................................. 99.6%
------------------------------------------------------------------------

Our analysis of the available company information revealed 64
primary NAICS codes. Table 7 displays the NAICS codes of the small
entities found in our sample.

Table 7--NAICS Codes of Identified Small Entities
----------------------------------------------------------------------------------------------------------------
Count of SBA size
Title NAICS Code companies SBA size standard type threshold
----------------------------------------------------------------------------------------------------------------
Boat Building...................... 336612 151 Employees.................. 1,000
Boat Dealers....................... 441222 56 Revenue.................... $32,500,000
Other Personal and Household Goods 811490 32 Revenue.................... $7,500,000
Repair and Maintenance.
Marinas............................ 713930 28 Revenue.................... $7,500,000
All Other Support Services......... 561990 14 Revenue.................... $11,000,000
Mineral Wool Manufacturing......... 327993 11 Employees.................. 1,500
Commercial and Industrial Machinery 811310 8 Revenue.................... $7,500,000
and Equipment (except Automotive
and Electronic) Repair and
Maintenance.
All Other Miscellaneous 339999 5 Employees.................. 500
Manufacturing.
Fabricated Structural Metal 332312 4 Employees.................. 500
Manufacturing.
New Single-family Housing 236115 3 Revenue.................... $36,500,000
Construction (Except For-Sale
Builders).
All Other Plastics Product 326199 3 Employees.................. 750
Manufacturing.
Sporting and Recreational Goods and 423910 3 Employees.................. 100
Supplies Merchant Wholesalers.
Other Miscellaneous Durable Goods 423990 3 Employees.................. 100
Merchant Wholesalers.
Other Building Material Dealers.... 444190 3 Revenue.................... $20,500,000
Engineering Services............... 541330 3 Revenue.................... $15,000,000
All Other Business Support Services 561499 3 Revenue.................... $15,000,000
Site Preparation Contractors....... 238910 2 Revenue.................... $15,000,000
Sheet Metal Work Manufacturing..... 332322 2 Employees.................. 500
Special Die and Tool, Die Set, Jig 333514 2 Employees.................. 500
and Fixture Manufacturing.
Travel Trailer and Camper 336214 2 Employees.................. 1,000
Manufacturing.
Wholesale Trade Agents and Brokers. 425120 2 Employees.................. 100
All Other Miscellaneous Store 453998 2 Revenue.................... $7,500,000
Retailers (except Tobacco Stores).
Museums............................ 712110 2 Revenue.................... $27,500,000
Hunting and Trapping............... 114210 1 Revenue.................... $5,500,000
Water Supply and Irrigation Systems 221310 1 Revenue.................... $27,500,000
Commercial and Institutional 236220 1 Revenue.................... $36,500,000
Building Construction.
Other Heavy and Civil Engineering 237990 1 Revenue.................... $36,500,000
Construction.
Plumbing, Heating, and Air- 238220 1 Revenue.................... $15,000,000
Conditioning Contractors.
All Other Specialty Trade 238990 1 Revenue.................... $15,000,000
Contractors.
Fabric Coating Mills............... 313320 1 Employees.................. 1,000
Other Millwork (including Flooring) 321918 1 Employees.................. 500
Plastics Material and Resin 325211 1 Employees.................. 1,250
Manufacturing.
Fertilizer (Mixing Only) 325314 1 Employees.................. 500
Manufacturing.
All Other Miscellaneous Nonmetallic 327999 1 Employees.................. 500
Mineral Product Manufacturing.
Alumina Refining and Primary 331313 1 Employees.................. 1,000
Aluminum Production.
Aluminum Sheet, Plate and Foil 331315 1 Employees.................. 1,250
Manufacturing.
Other Aluminum Rolling, Drawing, 331318 1 Employees.................. 750
and Extruding.
Plate Work Manufacturing........... 332313 1 Employees.................. 750
Farm Machinery and Equipment 333111 1 Employees.................. 1,250
Manufacturing.
Overhead Traveling Crane, Hoist and 333923 1 Employees.................. 1,250
Monorail System Manufacturing.
All Other Miscellaneous General 333999 1 Employees.................. 500
Purpose Machinery Manufacturing.
Other Communications Equipment 334290 1 Employees.................. 750
Manufacturing.
Truck Trailer Manufacturing........ 336212 1 Employees.................. 1,000
Motor Vehicle Steering and 336330 1 Employees.................. 1,000
Suspension Components (except
Spring) Manufacturing.
Ship Building and Repairing........ 336611 1 Employees.................. 1,250
All Other Transportation Equipment 336999 1 Employees.................. 1,000
Manufacturing.
Sporting and Athletic Goods 339920 1 Employees.................. 750
Manufacturing.
Hobby, Toy and Game Stores......... 451120 1 Revenue.................... $27,500,000
Scenic and Sightseeing 487210 1 Revenue.................... $7,500,000
Transportation, Water.
Navigational Services to Shipping.. 488330 1 Revenue.................... $38,500,000
Miscellaneous Intermediation....... 523910 1 Revenue.................... $38,500,000
Recreational Goods Rental.......... 532292 1 Revenue.................... $7,500,000
Landscape Architectural Services... 541320 1 Revenue.................... $7,500,000
Industrial Design Services......... 541420 1 Revenue.................... $7,500,000
Graphic Design Services............ 541430 1 Revenue.................... $7,500,000

[[Page 16519]]

Administrative Management and 541611 1 Revenue.................... $15,000,000
General Management Consulting
Services.
Other Management Consulting 541618 1 Revenue.................... $15,000,000
Services.
All Other Professional, Scientific 541990 1 Revenue.................... $15,000,000
and Technical Services.
Landscaping Services............... 561730 1 Revenue.................... $7,500,000
All Other Miscellaneous Schools and 611699 1 Revenue.................... $11,000,000
Instruction.
Emergency and Other Relief Services 624230 1 Revenue.................... $32,500,000
Fitness and Recreational Sports 713940 1 Revenue.................... $7,500,000
Centers.
RV (Recreational Vehicle) Parks and 721211 1 Revenue.................... $7,500,000
Campgrounds.
Civic and Social Organizations..... 813410 1 Revenue.................... $7,500,000
----------------------------------------------------------------------------------------------------------------

Revenue Impacts of the Interim Rule. To determine the impacts of
the interim rule on small monohull manufacturers, we used information
on revenues or employee size as available on business directory Web
sites.\13\
---------------------------------------------------------------------------

\13\ As indicated by either the revenue or employee data for
businesses, we use ReferenceUSA (www.referenceusagov.com) and Manta
(www.manta.com).
---------------------------------------------------------------------------

As discussed in the ``Cost to Industry'' section of the RA, we
estimate that there are 17,916 outboard boats less than 20 feet
produced by manufacturers annually that will require additional
flotation materials to align with this interim rule in Year 1. Coast
Guard does not have information on the market share of the small entity
manufacturers and the number of boats they produce each year.
Therefore, we assume each manufacturer consistently produces the same
number of boats each year and that each manufacturer has the same
market share. With 1,427 affected U.S. companies, this is an average of
about 13 outboard boats per manufacturer (rounded). In Years 2 through
10, the Coast Guard estimates there are 19,009 outboard boats affected,
at an average of about 13 outboard boats per manufacturer (19,009 boats
divided by 1,427 manufacturers, rounded). At an estimated cost of $50
per outboard boat, the average total cost per manufacturer is $650 in
Years 1 through 10. Table 8 summarizes the average costs per
manufacturer of the interim rule by year.

Table 8--Interim Rule Average Costs per Manufacturer
----------------------------------------------------------------------------------------------------------------
Average
Affected Manufacturers outboard boats Cost per Average cost
Year(s) outboard boats not in produced by outboard boats per
compliance manufacturer manufacturer
----------------------------------------------------------------------------------------------------------------
1............................... 17,916 1,427 13 $50 $650
2-10............................ 19,009 1,427 13 50 650
----------------------------------------------------------------------------------------------------------------

Next, we compared the average cost per manufacturer to the revenue
of the manufacturers in our sample. As shown in Table 6, we found
revenue or company data for 385 small entities. We found revenue
information for 371 of these small entities, and we were only able to
find employee data for 14 entities. Therefore, we could not compare the
cost per manufacturer to the revenues for the 14 entities with only
employee data. Table 9 summarizes the results. In Years 1 through 10,
94.6 percent of the affected manufacturers will incur a cost of 1
percent or less of revenue in any given year, while 0.3 percent will
incur a cost impact of greater than 10 percent of revenue.

Table 9--Interim Rule Revenue Impacts
------------------------------------------------------------------------
Number of Percent of
Impact range affected affected
manufacturers manufacturers
------------------------------------------------------------------------
0% < Impact <= 1%..................... 352 94.9
1% < Impact <= 3%..................... 17 4.6
3% < Impact <= 5%..................... 1 0.3
5% < Impact <= 10%.................... 0 0
>=10%................................. 1 0.3
---------------------------------
Total............................. 371 100%
------------------------------------------------------------------------

4. A description of the projected reporting, recordkeeping, and
other compliance requirements of the rule, including an estimate of the
classes of small entities which will be subject to the requirements and
the type of professional skills necessary for preparation of the report
or record.
This rule calls for no new collection of information under the
Paperwork Reduction Act of 1995, 44 U.S.C. 3501-3520.

[[Page 16520]]

5. An identification, to the extent practicable, of all relevant
Federal rules which may duplicate, overlap or conflict with the rule.
There are no relevant Federal rules that may duplicate, overlap, or
conflict with this interim rule.
6. A description of any significant alternatives to the rule which
accomplish the stated objectives of applicable statutes and which
minimize any significant economic impact of the rule on small entities.
This interim rule implements section 308 of CGAA. The CGAA mandates
the update of Table 4 in 33 CFR part 183. As such, the Coast Guard has
no discretion to offer alternatives that minimize the impact on small
entities while accomplishing the stated objective of the statute. To
ease implementation of this requirement, the Coast Guard is delaying
the effective date until June 1, 2018, so that the new requirements
will apply only to boat manufacturers who build boats after that date.
7. Conclusion.
We are interested in the potential impacts from this interim rule
on small businesses and we request public comment on these potential
impacts. If you think that this interim rule will have a significant
economic impact on you, your business, or your organization, please
submit a comment to the docket at the address under ADDRESSES in the
interim rule. In your comment, explain why, how, and to what degree you
think this interim rule will have an economic impact on you.

C. Assistance for Small Entities

Under section 213(a) of the Small Business Regulatory Enforcement
Fairness Act of 1996, Public Law 104-121, we offered to assist small
entities in understanding this rule so that they could better evaluate
its effects on them and participate in the rulemaking. The Coast Guard
will not retaliate against small entities that question or complain
about this rule or any policy or action of the Coast Guard.
Small businesses may send comments on the actions of Federal
employees who enforce, or otherwise determine compliance with, Federal
regulations to the Small Business and Agriculture Regulatory
Enforcement Ombudsman and the Regional Small Business Regulatory
Fairness Boards. The Ombudsman evaluates these actions annually and
rates each agency's responsiveness to small business. If you wish to
comment on actions by employees of the Coast Guard, call 1-888-REG-FAIR
(1-888-734-3247).

D. Collection of Information

This rule calls for no new collection of information under the
Paperwork Reduction Act of 1995, 44 U.S.C. 3501-3520.

E. Federalism

A rule has implications for federalism under Executive Order 13132
(``Federalism''), if it has a substantial direct effect on the States,
on the relationship between the national government and the States, or
on the distribution of power and responsibilities among the various
levels of government. We have analyzed this rule under E.O. 13132 and
have determined that it is consistent with the fundamental federalism
principles and requirements described in Executive Order 13132. Our
analysis is explained below.
Congress directed the Coast Guard to ``establish minimum safety
standards for recreational vessels'' (46 U.S.C. 4302). This regulation
is issued pursuant to that statute and is preemptive of State law as
specified in 46 U.S.C. 4306. Under 46 U.S.C. 4306, ``a State or
political subdivision of a State may not establish, continue in effect,
or enforce a law or regulation establishing a recreational vessel or
associated or equipment performance or other safety standard . . . that
is not identical to a regulation prescribed under'' 46 U.S.C. 4302. As
a result, States or local governments are expressly prohibited from
regulating within this category. Therefore, the rule is consistent with
the principles of federalism and preemption requirements in Executive
Order 13132.
While it is well settled that States may not regulate in categories
in which Congress intended the Coast Guard to be the sole source of a
vessel's obligations, the Coast Guard recognizes the key role that
State and local governments may have in making regulatory
determinations. Additionally, for rules with implications and
preemptive effect, Executive Order 13132 specifically directs agencies
to consult with State and local governments during the rulemaking
process. If you believe this rule has implications for federalism under
Executive Order 13132, please contact the person listed in the FOR
FURTHER INFORMATION CONTACT section of this preamble.

F. Unfunded Mandates Reform Act

The Unfunded Mandates Reform Act of 1995, 2 U.S.C. 1531-1538,
requires Federal agencies to assess the effects of their discretionary
regulatory actions. In particular, the Act addresses actions that may
result in the expenditure by a State, local, or tribal government, in
the aggregate, or by the private sector of $100,000,000 (adjusted for
inflation) or more in any one year. Though this rule will not result in
such an expenditure, we do discuss the effects of this rule elsewhere
in this preamble.

G. Taking of Private Property

This rule will not cause a taking of private property or otherwise
have taking implications under E.O. 12630 (``Governmental Actions and
Interference with Constitutionally Protected Property Rights'').

H. Civil Justice Reform

This rule meets applicable standards in sections 3(a) and 3(b)(2)
of E.O. 12988, (``Civil Justice Reform''), to minimize litigation,
eliminate ambiguity, and reduce burden.

I. Protection of Children

We have analyzed this rule under E.O. 13045 (``Protection of
Children from Environmental Health Risks and Safety Risks''). This rule
is not an economically significant rule and would not create an
environmental risk to health or risk to safety that might
disproportionately affect children.

J. Indian Tribal Governments

This rule does not have tribal implications under E.O. 13175
(``Consultation and Coordination with Indian Tribal Governments''),
because it would not have a substantial direct effect on one or more
Indian tribes, on the relationship between the Federal Government and
Indian tribes, or on the distribution of power and responsibilities
between the Federal Government and Indian tribes.

K. Energy Effects

We have analyzed this rule under E.O. 13211 (``Actions Concerning
Regulations That Significantly Affect Energy Supply, Distribution, or
Use''). We have determined that it is not a ``significant energy
action'' under that order because it is not a ``significant regulatory
action'' under E.O. 12866 and is not likely to have a significant
adverse effect on the supply, distribution, or use of energy.

L. Technical Standards

The National Technology Transfer and Advancement Act, codified as a
note to 15 U.S.C. 272, directs agencies to use voluntary consensus
standards in their regulatory activities unless the agency provides
Congress, through OMB, with an explanation of why using these standards
would be inconsistent with applicable law or otherwise

[[Page 16521]]

impractical. Voluntary consensus standards are technical standards
(e.g., specifications of materials, performance, design, or operation;
test methods; sampling procedures; and related management systems
practices) that are developed or adopted by voluntary consensus
standards bodies.
This rule uses a voluntary consensus standard: the current ABYC S-
30.

M. Environment

We have analyzed this rule under Department of Homeland Security
Management Directive 023-01 and Commandant Instruction M16475.lD, which
guide the Coast Guard in complying with the National Environmental
Policy Act of 1969, 42 U.S.C. 4321-4370f, and have concluded that this
action is one of a category of actions which do not individually or
cumulatively have a significant effect on the human environment. An
environmental analysis checklist and a categorical exclusion
determination supporting this determination are available in the docket
where indicated under the ``Public Participation and Request for
Comments'' section of this preamble. This rule involves the safe
loading capacity and required amount of flotation material for certain
recreational boats, which concerns equipping of vessels, equipment and
vessel operation safety standards. As such, this action is
categorically excluded under section 2.B.2 and figure 2-1, paragraph
(34)(d) and (e) of the Instruction and under section 6(a) of the
``Appendix to National Environmental Policy Act: Coast Guard Procedures
for Categorical Exclusions, Notice of Final Agency Policy'' (67 FR
48243, July 23, 2002).

VII. Public Participation and Request for Comments

We view public participation as essential to effective rulemaking,
and will consider all comments and material received during the comment
period. Your comment can help shape the outcome of this rulemaking. If
you submit a comment, please include the docket number for this
rulemaking, indicate the specific section of this document to which
each comment applies, and provide a reason for each suggestion or
recommendation.
We encourage you to submit comments through the Federal eRulemaking
Portal at https://www.regulations.gov. If your material cannot be
submitted using https://www.regulations.gov, contact the person in the
FOR FURTHER INFORMATION CONTACT section of this document for alternate
instructions. Documents mentioned in this interim rule, and all public
comments, are in our online docket at https://www.regulations.gov and
can be viewed by following that Web site's instructions. Additionally,
if you go to the online docket and sign up for email alerts, you will
be notified when comments are posted or a final rule is published.
We accept anonymous comments. All comments received will be posted
without change to https://www.regulations.gov and will include any
personal information you have provided. For more about privacy and the
docket, you may review a Privacy Act notice regarding the Federal
Docket Management System in the March 24, 2005, issue of the Federal
Register (70 FR 15086).

List of Subjects in 33 CFR Part 183

Marine safety.

For the reasons discussed in the preamble, the Coast Guard amends
33 CFR part 183 as follows:

PART 183--BOATS AND ASSOCIATED EQUIPMENT

0
1. The authority citation for part 183 is revised to read as follows:

Authority: 46 U.S.C. 4302; Pub. L. 103-206, 107 Stat. 2439; and
Department of Homeland Security Delegation No. 0170.1, para. II,
(92)(b). Subpart E is also authorized by Pub. L. 114-120, 130 Stat.
27.

Sec. 183.41 [Amended]

0
2. Amend Sec. 183.41 as follows:
0
a. In paragraph (a)(1), remove the text ``from table 4 of subpart H of
this part'' and add, in its place, the text ``required by Sec.
183.75''; and
0
b. In paragraph (a)(2)(ii), remove the text ``shown in table 4 of
subpart H of this part'' and add, in its place, the text ``required by
Sec. 183.75''.

0
3. Add subpart E to read as follows:

Subpart E--Flotation and Safe Loading Requirements-Outboard Motor
and Related Equipment Test Weights

Sec. 183.75 Applicability.

Manufacturers of vessels to which this subpart applies must use
test weights that are not less than the recommended weights set forth
in Table 183.75. Table 183.75 details the weight (in pounds) of
gasoline outboard engines and related equipment for various rated power
(horsepower) ranges.

Table 183.75--Weights (In Pounds) of Gasoline Outboard Engines and Related Equipment for Various Rated Power (Horsepower) Ranges
--------------------------------------------------------------------------------------------------------------------------------------------------------
Single engine installations
---------------------------------------------------------------------------------------------------------------------------------------------------------
Column number
---------------------------------------------------------------------------------------------------------------------------------------------------------
1 2 3 4 5 6 7 8 9
--------------------------------------------------------------------------------------------------------------------------------------------------------
Total
Battery Full weight
Engine power range (Horsepower) Dry weight Running Swamped Controls & Battery weight portable (Sum of
\1\ \2\ weight \3\ weight \4\ rigging \5\ weight, dry submerged fuel tank columns
\6\ 3,5,6,8)
--------------------------------------------------------------------------------------------------------------------------------------------------------
0.1-2.0......................................... 30 32 27 0 0 0 0 32
2.1-3.9......................................... 42 44 37 0 0 0 0 44
4.0-6.9......................................... 66 69 59 0 0 0 25 94
7.0-10.9........................................ 105 110 94 5 20 11 50 185
11.0-22.9....................................... 127 133 113 6 45 25 50 234
23.0-34.9....................................... 187 196 167 9 45 25 100 350
35.0-64.9....................................... 286 300 255 14 45 25 100 459
65.0-94.9....................................... 439 461 392 22 45 25 100 628
95.0-104.9...................................... 458 481 409 23 45 25 100 649
105.0-144.9..................................... 526 552 469 26 45 25 100 723
145.0-194.9..................................... 561 589 501 28 45 25 100 762
195.0-209.9..................................... 652 685 582 33 45 25 100 863
210.0-300.0..................................... 699 734 624 35 45 25 100 914

[[Page 16522]]

300.1-350.0..................................... 884 928 789 44 45 25 100 1,117
--------------------------------------------------------------------------------------------------------------------------------------------------------
Notes:
\1\ Dry weight is the manufacturer's published weight for the shortest midsection increased by 10 percent to account for longer midsections and
additional required hardware usually not included in published weights. This weight is intended to represent the heaviest model in each power
category. For boats designed with a transom height of 20 inches or less, the weight in Column 2 may be reduced by 10 percent. Recalculate Columns 3,
4, and 9 as appropriate.
\2\ For diesel outboards, replace the value in Column 2 with the manufacturer's published dry weight + 10 percent.
\3\ Running weight is the dry weight plus fluids (including 2-stroke oil) and the heaviest recommended propeller. Calculated as 5 percent of dry weight.
\4\ Swamped weight is 85 percent of running weight.
\5\ Rigging and controls include engine related hardware required to complete the installation (e.g., controls, cables, hydraulic hoses, steering pumps
and cylinders). Calculated as 5 percent of dry weight.
\6\ If the boat is equipped with a permanent fuel system and is not intended to use a portable tank, the portable fuel tank weight may be omitted.

Sec. 183.220 [Amended]

0
4. Amend Sec. 183.220 as follows:
0
a. In paragraph (b)(2), remove the text ``shown in Column 6 of Table
4'' and add, in its place, the text ``shown in Column 9 of Table
183.75''; and
0
b. In paragraph (d), remove the text ``specified in Columns 2 and 4 of
Table 4 for the swamped weight of the motor and controls and for the
submerged weight or'' and add, in its place, the text ``specified in
Columns 4 and 7 of Table 183.75 for the swamped weight of the motor and
controls and for the submerged weight of[hairsp]''.

Sec. 183.320 [Amended]

0
5. Amend Sec. 183.320 as follows:
0
a. In paragraph (b)(2), remove the text ``shown in column 6 of Table
4'' and add, in its place, the text, ``shown in Column 9 of Table
183.75''; and
0
b. In paragraph (d), remove the text ``specified in Column 2 of Table
4'' and add, in its place, the text ``specified in Column 4 of Table
183.75''.

Table 4 to Subpart H of Part 183 [Removed]

0
6. Remove Table 4 to Subpart H of Part 183.

Dated: March 29, 2017.
V.B. Gifford,
Captain, U.S. Coast Guard, Director of Inspections and Compliance.
[FR Doc. 2017-06733 Filed 4-4-17; 8:45 am]
BILLING CODE 9110-04-P

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