Marine Casualty Reporting Property Damage Thresholds, 11889-11902 [2018-05467]
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agency promulgating the rule must
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however, exempts from section 801 the
following types of rules: Rules of
particular applicability; rules relating to
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rules of agency organization, procedure,
or practice that do not substantially
affect the rights or obligations of nonagency parties. 5 U.S.C. 804(3). Because
this is a rule of particular applicability,
EPA is not required to submit a rule
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section 801.
C. Petitions for Judicial Review
Under section 307(b)(1) of the CAA,
petitions for judicial review of this
action must be filed in the United States
Court of Appeals for the appropriate
circuit by May 18, 2018. Filing a
petition for reconsideration by the
Administrator of this final rule does not
affect the finality of this action for the
purposes of judicial review nor does it
extend the time within which a petition
for judicial review may be filed, and
shall not postpone the effectiveness of
such rule or action. This action
pertaining to removal of source-specific
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(See section 307(b)(2).)
List of Subjects in 40 CFR Part 52
Environmental protection, Air
pollution control, Carbon monoxide,
Incorporation by reference, Lead,
Nitrogen dioxide, Ozone, Particulate
matter, Reporting and recordkeeping
requirements, Sulfur oxides, Volatile
organic compounds.
Dated: March 6, 2018.
Cosmo Servidio,
Regional Administrator, Region III.
40 CFR part 52 is amended as follows:
PART 52—APPROVAL AND
PROMULGATION OF
IMPLEMENTATION PLANS
1. The authority citation for part 52
continues to read as follows:
■
Corp,’’ ‘‘International Mill Service, Inc,’’
and ‘‘Columbian Chemicals Company.’’
[FR Doc. 2018–05404 Filed 3–16–18; 8:45 am]
BILLING CODE 6560–50–P
DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
46 CFR Part 4
[Docket No. USCG–2016–0748]
RIN 1625–AC33
Marine Casualty Reporting Property
Damage Thresholds
Coast Guard, DHS.
Final rule.
AGENCY:
ACTION:
The Coast Guard is amending
the monetary property damage
threshold amounts for reporting a
marine casualty and for reporting a type
of marine casualty called a ‘‘serious
marine incident.’’ The original
regulations that set these dollar
threshold amounts were written in the
1980s and have not been updated since
that time. Because the monetary
thresholds for reporting have not kept
pace with inflation, vessel owners and
operators have been required to report
relatively minor casualties.
Additionally, the original regulations
require mandatory drug and alcohol
testing following a serious marine
incident. As a result, vessel owners and
operators are conducting testing for
casualties that are less significant than
those intended to be captured by the
original regulations. Updating the
original regulations will reduce the
burden on vessel owners and operators,
and will also reduce the amount of
Coast Guard resources expended to
investigate these incidents.
DATES: This final rule is effective April
18, 2018.
FOR FURTHER INFORMATION CONTACT: For
information about this document, call or
email LCDR Baxter B. Smoak, CG–INV,
Coast Guard; telephone 202–372–1223,
email Baxter.B.Smoak@uscg.mil.
SUPPLEMENTARY INFORMATION:
SUMMARY:
Table of Contents for Preamble
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Authority: 42 U.S.C. 7401 et seq.
Subpart XX—West Virginia
§ 52.2520
[Amended]
2. In § 52.2520, the table in paragraph
(d) is amended by removing the entries
for ‘‘Mountaineer Carbon Co,’’
‘‘Standard Lafarge,’’ ‘‘Follansbee Steel
■
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I. Abbreviations
II. Background, Basis, and Purpose
III. Regulatory History
IV. Discussion of Final Rule
V. Discussion of Comments and Changes
A. Dollar Threshold Amounts for Reporting
Marine Casualties
B. Dollar Threshold Amounts for Reporting
SMIs
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C. Periodic Adjustments of the Threshold
Amounts for Reporting Marine
Casualties and SMIs
D. Loss of Marine Casualty Data
E. Amending the Dollar Amount
Thresholds for Outer Continental Shelf
Casualty Reporting in Title 33 of the CFR
F. Use of the CPI–U to Determine Reporting
Threshold Amounts
G. Nonsubstantive Changes to Reflect
Updated CG–2692, Report of Marine
Casualty, Commercial Diving Casualty,
or OCS-related Casualty
VI. Regulatory Analyses
A. Regulatory Planning and Review
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
I. Abbreviations
BLS Bureau of Labor Statistics
CFR Code of Federal Regulations
COI Collection of Information
CPI–U Consumer Price Index for All Urban
Consumers
DHS Department of Homeland Security
MISLE Marine Information for Safety and
Law Enforcement
NPRM Notice of Proposed Rulemaking
OCMI Officer in Charge, Marine Inspection
OCS Outer Continental Shelf
OMB Office of Management and Budget
PVA Passenger Vessel Association
RA Regulatory analysis
SMI Serious marine incident
SNPRM Supplemental notice of proposed
rulemaking.
U.S.C. United States Code
§ Section symbol
II. Background, Basis, and Purpose
Pursuant to 46 U.S.C. 6101, the Coast
Guard is required to prescribe
regulations on marine casualty reporting
and the manner of reporting. Based on
this authority, we developed regulations
in part 4 of title 46 of the Code of
Federal Regulations (CFR) that
included, among other criteria,
monetary property damage threshold
amounts for reporting a ‘‘serious marine
incident’’ 1 (SMI) and for reporting a
marine casualty.2 The original
regulations setting these property
damage threshold amounts were
developed in the 1980s, and they have
not been updated since that time. With
this final rule, we update the dollar
threshold amounts for property damage
1 46
2 46
CFR 4.03–2.
CFR 4.05–1.
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in 46 CFR 4.03–2(a)(3) and 4.05–1(a)(7)
to account for inflation.
As described in greater detail in the
notice of proposed rulemaking (NPRM),
there is Coast Guard and stakeholder
consensus that the 1980s property
damage monetary threshold amounts
listed in 46 CFR 4.03–2 and 4.05–1 have
not kept pace with inflation.3 Over time,
this has resulted in the reporting of a
greater number of casualties involving
relatively minor property damage. It was
never our intent to require owners or
operators to notify us of casualties
involving relatively minor property
damage. Consequently, we are
amending the property damage
monetary threshold amounts to
eliminate the reporting of insignificant
property damage incidents.
Additionally, because the regulations
require mandatory drug and alcohol
testing following an SMI, current
regulations require chemical testing of
crewmembers for casualties that reach a
minimum threshold of $100,000 in
property damage. Because of cost
increases caused by inflation, however,
casualties that result in property damage
between $100,000 and $200,000 are no
longer representative of a ‘‘serious’’
incident. The lack of inflation updates
to our marine casualty regulations has
resulted in an additional administrative
and financial burden on vessel owners
and operators, as well as on Coast Guard
resources used to investigate these
incidents.
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III. Regulatory History
On January 23, 2017, the Coast Guard
published an NPRM with request for
comments. No public meeting was
requested, and none was held.
IV. Discussion of Final Rule
This final rule changes the reportable
marine casualty property damage
threshold amount in 46 CFR 4.05–
1(a)(7) from $25,000 to $75,000. In the
NPRM, we proposed to make this
threshold $72,000, but chose $75,000 for
reasons explained in the next section of
this preamble. This final rule also
changes the SMI property damage
threshold in 46 CFR 4.03–2(a)(3) from
$100,000 to $200,000. This change is the
same as that proposed in the NPRM.
With the dollar amount thresholds
updated to account for inflation, we
expect there will be a decrease in the
number of commercial vessel casualties
reported to the Coast Guard. The
updates in this final rule will also likely
decrease the number of casualties that
fall within the definition of an SMI, and
thereby reduce the number of chemical
3 82
FR 7755, page 7756.
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tests administered following an SMI that
results in $100,000.01 to $200,000
worth of property damage. However,
mandatory chemical testing will still be
required if the property damage meets
the updated dollar threshold amount (in
excess of $200,000) established in this
final rule. Our intent in setting a dollar
amount threshold in our marine
casualty reporting regulation and within
the definition of ‘‘serious marine
incident’’ was, and remains, to ensure
that the Coast Guard is aware of those
incidents that could be indicative of
more serious problems that may be
averted in the future with timely
intervention.
We expect that this final rule will
result in an estimated annual cost
savings to industry of $40,809 due to a
reduction in the hourly burden of
reporting and recordkeeping for both
marine casualties and SMIs, and an
estimated annual cost savings of $4,751
for chemical testing for marine
casualties designated as SMIs. This final
rule will also result in cost savings to
the Coast Guard by reducing the hourly
burden costs to investigate marine
casualties, as well as the costs
associated with processing marine
casualty forms. As a result, the maritime
industry and Coast Guard resources will
be able to focus their efforts on higher
consequence incidents.
Finally, this final rule makes several
nonsubstantive changes throughout 46
CFR part 4 to account for Office of
Management and Budget (OMB)approved updates to forms that the
maritime industry uses to report on
marine casualties and SMIs. The Coast
Guard provides further detail of these
non-substantive changes below in Part
V.G, Discussion of Comments and
Changes.
V. Discussion of Comments and
Changes
We received 45 public comments. The
comments were from individuals
representing 25 private companies and
6 trade associations, and 1 anonymous
source. Two of these private companies
had two individuals submit comments
on their behalf, and 11 individuals
representing one of the other private
companies submitted separate letters.
Additionally, one of the trade
associations submitted two identical
letters from the same individual. We
reviewed and took into consideration all
45 comments. The majority of
commenters agreed with the NPRM that
the current dollar thresholds for
reporting marine casualties and SMIs
are outdated and should be increased.
Some commenters agreed with each of
the increased dollar threshold amounts
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proposed in the NPRM. Other
commenters recommended increasing
the proposed dollar threshold amount
for reporting a marine casualty; of this
group, most also recommended
increasing the proposed dollar threshold
amount for reporting an SMI. Still
others recommended including a means
to periodically adjust or revise the
dollar threshold amounts to make sure
they continue to stay current. One
commenter recommended that the Coast
Guard include within the docket
‘‘examples of the casualties which will
no longer be reported’’ as a result of the
increase in the dollar threshold amount
for property damage. Another
commenter suggested that the proposal
to increase the dollar threshold amounts
for reporting casualties and SMIs be
extended to the Outer Continental Shelf
(OCS) regulations in 33 CFR part 146, so
that the reporting threshold amounts in
both CFR titles will be ‘‘standardized.’’
Finally, one commenter suggested that
our method of calculating the
inflationary adjustment using the
Consumer Price Index for All Urban
Consumers (CPI–U) yielded outdated
figures, and that there may be other
reference indices that would produce
more accurate results.
We have grouped these comments
into the following categories:
• Dollar Threshold Amounts for
Reporting Marine Casualties;
• Dollar Threshold Amounts for
Reporting SMIs;
• Periodic Adjustments of the
Threshold Amounts for Reporting
Marine Casualties and SMIs;
• Loss of Marine Casualty Data;
• Amending the Dollar Amount
Thresholds for Outer Continental Shelf
Casualty Reporting in Title 33 of the
CFR; and
• Use of the CPI–U to Determine
Reporting Threshold Amounts.
A detailed discussion of these
comments and our responses follows.
A. Dollar Threshold Amounts for
Reporting Marine Casualties
Four commenters agreed with the
increased dollar threshold amounts
exactly as proposed in the NPRM. Of the
four commenters, three had additional
comments unrelated to the specific
dollar threshold amounts. Those
comments are addressed in the
following discussions and responses.
One commenter recommended
increasing the proposed dollar threshold
amount of $72,000 for a marine casualty
to a ‘‘more memorable figure of $75,000
or $100,000.’’
Coast Guard Response: We agree with
the commenters that $75,000 and
$100,000 represent figures that are
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easier to remember than $72,000.
However, we do not agree with
changing the property damage threshold
to $100,000. As we explained in the
NPRM, the Coast Guard, in arriving at
the proposed threshold amount of
$72,000, calculated the inflation
adjustment factor using the CPI–U.
Changing the threshold amount to
$100,000 would not be consistent with
our intent to update the reporting
threshold based on the rate of inflation
experienced since implementation of
the original rule. Changing the dollar
threshold to $75,000, however, is
consistent with that intent and, as the
commenter noted, is an easier dollar
figure to remember. Additionally, based
on our casualty data, we believe that the
difference in reporting data between
$72,000 and $75,000 will be negligible
and, for the reasons explained in the
Regulatory Analysis (RA) section of this
final rule (Section VI), the affected
population of this rule remains
unchanged from the NPRM. In this final
rule, therefore, we have changed the
marine casualty reporting threshold for
property damage to $75,000.
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B. Dollar Threshold Amounts for
Reporting SMIs
Thirty-six commenters recommended
increasing the proposed dollar threshold
amount for reporting an SMI to
$400,000, citing suggestions from the
Passenger Vessel Association (PVA). In
support of its recommendation for the
Coast Guard to change the dollar
amount of an SMI from the proposed
$200,000 to $400,000, the PVA explains
that the 1:4 ratio between the existing
dollar amount threshold for marine
casualty reporting ($25,000) and the
existing dollar amount threshold for a
‘‘serious marine incident’’ ($100,000)
should be maintained under the final
rule.
Coast Guard Response: We do not
agree with the 1:4 ratio suggested by the
PVA and their members. While the
original thresholds did have a 1:4 ratio,
this relationship was not by design, nor
was it our intention to tie the threshold
numbers together in this manner or to
suggest that a 1:4 ratio is optimal and
should be maintained. Changing the
property damage threshold amount to
$400,000 for an SMI, as recommended
by the commenters and the PVA, would
not be consistent with our intent to
update the threshold amount based on
the rate of inflation experienced since
implementation of the original rule.
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C. Periodic Adjustments of the
Threshold Amounts for Reporting
Marine Casualties and SMIs
Thirty-seven commenters
recommended including in the final
rule a provision for periodically
adjusting both threshold amounts to
account for inflation, so that the Coast
Guard will not be required to initiate
future rulemakings to update the
threshold amounts. Of these, one
commenter pointed out that the Coast
Guard was ‘‘using the same CPI–U
numbers to calculate and revise the
damage thresholds that they currently
employ for their civil penalty
adjustments.’’ Therefore, the commenter
suggested, we should include in the
final rule a provision to ‘‘revise [the
dollar threshold amounts for both a
marine casualty and an SMI] using the
same rate increase schedule as those for
civil penalty updates.’’
Coast Guard Response: We do not
plan to establish automatic, periodic
inflation adjustments to these property
damage threshold amounts because the
cost increase due to annual inflation
may be too insignificant to warrant an
adjustment every year. Frequent
adjustments could also lead to
confusion in what is to be reported.
Additionally, the maritime industry
may also be burdened with updating
training and operational materials. We
recognize, however, that these dollar
amount thresholds should be reviewed
more frequently than in the past to
account for annual inflation. To that
end, we will incorporate a 5-year
evaluation period in our internal
Mission Management System audits to
ensure that the Coast Guard reviews the
appropriateness of these dollar
threshold amounts on a regular,
recurring basis.
D. Loss of Marine Casualty Data
One anonymous commenter did not
express support for or opposition to the
NPRM, but was concerned that an
increase in the dollar threshold amounts
would mean a loss of data for those
casualties whose property damage
amounts fall below the proposed
thresholds. For those casualties, the
commenter believed the Coast Guard
would not have the necessary
information to identify problems that
may need attention. The commenter
recommended that the Coast Guard
‘‘provide supplemental information to
the docket which provides examples of
the casualties which will no longer be
reported,’’ and stated that this
information should be available to the
public ‘‘because it was the data the
Coast Guard used to determine that the
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11891
current thresholds are not adequate and
would clearly convey what type of data
would no longer need to be reported.’’
Coast Guard Response: We
understand and appreciate the
commenter’s concerns. However, we are
changing the reporting thresholds only
as they relate to property damage. We
feel that the various types of reportable
casualties detailed in 46 CFR 4.05–1
ensure we are made aware of those
incidents that could indicate more
serious problems and that may be
averted in the future with timely
intervention. These include groundings,
bridge allisions, loss of propulsion or
steering, certain equipment failures,
incidents resulting in significant harm
to the environment, fire or flooding that
adversely affects the vessel’s
seaworthiness or fitness for service,
injuries beyond first aid, and loss of
life—regardless of property damage cost.
Nevertheless, we understand that, under
this final rule, there will be casualties
that involve property damage alone that
will no longer be reported to the Coast
Guard. An example of such a casualty
would be if a vessel allides with a pier,
and the resulting initial estimated
property damage to the vessel and pier
structure is any amount between
$25,000.01 and $75,000. Assuming no
pollution, deaths, injuries, or other
reportable criteria is met, this casualty
would no longer be a reportable marine
casualty under this final rule. In
reviewing historical data from the Coast
Guard’s Marine Information for Safety
and Law Enforcement (MISLE) database,
we are confident that the casualties
reported that involve only property
damage under $75,000 are relatively
minor in nature when compared to all
other reportable marine casualties. A
specific example that epitomizes this
occurred aboard a moored foreign
containership. In this reportable marine
casualty, a container being loaded by a
longshoreman using a shore-side crane
struck the forward mast of the vessel,
resulting in over $66,000 in damage.
Under this final rule, a relatively minor
incident like this will no longer be
reported to the Coast Guard.
E. Amending the Dollar Amount
Thresholds for Outer Continental Shelf
Casualty Reporting in Title 33 of the
CFR
One commenter, speaking on behalf of
the International Association of Drilling
Contractors, recommended that the
increased dollar threshold amount for
reporting a marine casualty, as proposed
in the NPRM, also be applied to OCS
facilities under 33 CFR part 146. If the
Coast Guard makes the proposed
changes only in 46 CFR part 4, and not
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also in 33 CFR part 146, the commenter
stated that the Coast Guard would
‘‘appear to be penalizing’’ OCS facilities,
which would continue to be required to
report under the original dollar
threshold amount of $25,000. The
commenter referred to a ‘‘second related
rulemaking (USCG–2013–1057) in
progress that proposes to broaden the
regulatory requirements for reporting
marine casualties on the U.S. OCS,’’ and
suggested that the Coast Guard review
the marine casualty dollar threshold
amounts in both 33 and 46 CFR ‘‘with
a view towards standardization.’’
Coast Guard Response: The
commenter is correct that, because this
final rule is limited to vessels (see 46
CFR 4.03–1 and 4.05–1), it does not
affect the reporting threshold for OCS
facilities. Changing the $25,000 casualty
damage threshold amount applicable to
OCS facilities is not within the scope of
the rule we proposed, and we think it
is important to finalize the changes for
vessels rather than delay them in order
to propose changes for OCS facilities.
However, we acknowledge the validity
of the commenter’s concern, and we
will consider amending the threshold
reporting amount applicable to OCS
facilities in a future rulemaking.
F. Use of the CPI–U To Determine
Reporting Threshold Amounts
One commenter who was generally
supportive of the NPRM stated that the
method we used to calculate
inflationary adjustment by comparing
the average CPI–U for the base years
with the average CPI–U for 2015 yielded
outdated information. The commenter
pointed out that the U.S. Bureau of
Labor Statistics (BLS) inflation
calculator, available online at the BLS
website, allows users to compare base
year values to values for 2017.
Therefore, the commenter contends, the
threshold amount for reporting a marine
casualty as proposed in the NPRM is
‘‘already outdated by two years.’’ The
commenter recommended raising the
threshold amounts for a marine casualty
and an SMI to $100,000 and $400,000,
respectively.
Coast Guard Response: As stated
previously, we agree that since the
NPRM was published, more recent
CPI–U data is available. However, we
disagree with using the CPI–U BLS
calculator to update to 2017. When
using the BLS calculator to update to
2017, the calculator updates to the last
available month of 2017 data. The
CPI–U could have an unusual increase
or decrease in 1 month that is not
representative of the overall trend in the
CPI–U over the full year. We take an
average of the 12 months of CPI–U data
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for the latest full year of data to better
represent the overall trend in CPI–U. We
disagree with using 2017 data because it
would provide an incomplete year of
data. The last full year of CPI–U data
available at the time of analysis was
2016. We have updated this final rule in
a way that encompasses the 2016
CPI–U data.
Thirty-six commenters, citing
suggestions from the PVA,
recommended increasing the threshold
for reporting marine casualties to
$100,000, stating that the proposed
figure of $72,000 ‘‘is already outdated
because the (Coast Guard’s) calculation
used 2015 as the year inputted into the
CPI–U BLS calculator.’’ The PVA and
many of these commenters also
expressed the belief that the CPI–U may
not be the right index to use and that the
$100,000 threshold reflects real, but
non-CPI cost, ‘‘inflation’’ because of
overtime and seasonality of repairs.
Coast Guard Response: While we
agree that more recent CPI–U data is
available since the publication of the
NPRM, we decline to use 2017 data
when computing the inflation
adjustment factor using the BLS CPI–U
calculator because doing so would
provide an incomplete year of data. The
last full year of CPI–U data is 2016, and
using 2016 data instead of 2015 data
does not result in an inflation-adjusted
amount larger than the $75,000 figure
already discussed. Specifically, if we
calculate the inflation adjustment by
comparing the average CPI–U for the
base year 1980 (82.408) with the average
CPI–U for 2016 (240.007), we find a
resultant inflation adjustment factor of
1.912.4 This inflation adjustment factor
represents how much inflation has
occurred since 1980. We multiply this
inflation adjustment factor of 1.912 by
the current threshold of $25,000 to
calculate the raw inflation increment of
$47,800. We then add this raw inflation
to the original penalty of $25,000, which
results in a threshold of $72,800. When
rounding to the nearest thousand, this
results in a revised threshold of $73,000.
Accordingly, for the reasons mentioned
above and in response to public
comment, we are rounding to the
nearest $5,000 to attain a more
memorable dollar amount of $75,000.
The PVA states in its comment that it
was not able to identify a single index
that best fits the maritime industry. We
agree that there is not a source that best
fits the maritime industry. Because of
this, we use the CPI–U to adjust the
monetary property thresholds. The CPI
is the most widely used and accepted
4 CPI Detailed Report, Data for December 2016,
Table 24. https://www.bls.gov/cpi/cpid1512.pdf.
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index produced by the BLS to measure
the average change over time in prices
paid by urban consumers for a market
basket of goods and services. Among
other uses, the CPI serves as an
economic indicator of the effectiveness
of government economic policy, as a
means of adjusting income payments,
such as Social Security and military
benefits, and automatic wage increases
in the private sector, and as a means of
adjusting Federal income tax brackets.5
The specific CPI the Coast Guard uses
is the unadjusted All Items CPI–U. The
CPI–U is the ‘‘broadest and most
comprehensive CPI’’ and, using
unadjusted data, is more appropriate for
this purpose because seasonally
adjusted CPI data is subject to revision
for up to 5 years after their original
release, making such data difficult to
use for adjustment purposes.6 The CPI–
U represents about 89 percent of the
total U.S. population and is based on
the expenditures of all families in urban
areas,7 which includes almost all
residents of urban or metropolitan areas,
such as professionals, the selfemployed, the poor, the unemployed,
and retired persons, as well as urban
wage earners and clerical workers.
G. Nonsubstantive Changes To Reflect
Updated CG–2692, Report of Marine
Casualty, Commercial Diving Casualty,
or OCS-Related Casualty
Finally, after publication of the
NPRM, we realized that we failed to
include within the NPRM’s proposed
changes updates to the CG–2692 forms
that OMB approved on September 29,
2016. OMB’s approval was preceded by
two Federal Register notices in which
the Coast Guard sought public comment
to these changes.8 The changes to Form
CG–2692 involved revising its title and
moving certain sections to two new
addendum forms. In this final rule,
therefore, we are making nonsubstantive
changes throughout 46 CFR part 4 to
reflect the recently approved updates to
the CG–2692 forms.9 Because the
changes to the CG–2692 forms are nonsubstantive, and a separate opportunity
to comment on the forms was provided
through the OMB approval process that
is now complete, the Coast Guard finds
5 BLS, Chapter 17: The Consumer Price Index,
page 5, https://www.bls.gov/opub/hom/pdf/
homch17.pdf.
6 BLS, Consumer Price Index Frequently Asked
Questions, https://www.bls.gov/cpi/questions-andanswers.htm#Question_13.
7 BLS, How To Use the Consumer Price Index for
Escalation, https://www.bls.gov/cpi/factsheets/
escalation.htm.
8 80 FR 64430 and 81 FR 5774.
9 This final rule makes nonsubstantive changes to
sections 4.05–10, 4.05–12, 4.06–3, 4.06–5, 4.06–30,
and 4.06–60.
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that good cause exists under 5 U.S.C.
553(b)(B) to bypass prior notice and
comment on the nonsubstantive changes
to 46 CFR part 4 in this final rule.
VI. Regulatory Analyses
We developed this final rule after
considering numerous statutes and
Executive orders related to rulemaking.
Below we summarize our analyses
based on these statutes or Executive
orders.
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, OMB has not reviewed it.
OMB considers this rule to be an
Executive Order 13771 deregulatory
action. See OMB’s Memorandum
‘‘Guidance Implementing Executive
Order 13771, Titled ‘Reducing
Regulation and Controlling Regulatory
Costs’ ’’ (April 5, 2017). An RA follows.
In the NPRM, we proposed to revise
the dollar threshold amount for
reporting a marine casualty from
$25,000 to $72,000. After considering
11893
public comments, we decided to
increase the dollar threshold amount to
$75,000. This RA incorporates the new
threshold amount. We reviewed the
incident investigation data from the
Coast Guard’s MISLE database used to
estimate the affected population, and
found from 2012 through 2014, there
were a total of four marine casualty
reports where the only outcome was
property damage of $72,000.01 through
$75,000. After accounting for rounding,
these four additional marine casualty
reports over the three year period were
not substantial enough to change the
approximately 5.3 percent of the 5,967
(or 316) fewer marine casualty reports
we expect will be required per year after
implementation of this final rule.
Therefore, the affected population of
this final rule remains unchanged from
that of the NPRM.
We also updated the wage rates using
BLS 2016 data. Table 1 summarizes the
changes from the NPRM to this final
rule, and the resultant impact on the
RA.
TABLE 1—SUMMARY OF CHANGES FROM NPRM TO FINAL RULE
Element of the analysis
NPRM
Final rule
Replace reportable marine casualty threshold.
Water transportation worker wage
rate.
Replaced $25,000 with $72,000 ...
Replaced $25,000 with $75,000 ...
No impact.
$47.60, using May 2015 and 2016
1st quarter BLS data.
$50.84, using May 2016 and 2016
4th quarter BLS data.
Increased industry costs and resulting industry benefits.
This RA provides an evaluation of the
economic impacts associated with this
final rule. Under this final rule, the
Coast Guard is updating the reportable
marine casualty dollar threshold in
§ 4.05–1(a)(7) of 46 CFR from $25,000 to
$75,000, and the reportable SMI dollar
threshold in § 4.03–2(a)(3) of 46 CFR
from $100,000 to $200,000, to account
for inflation, as discussed in Section IV
Resulting impact on RA
of this final rule. Table 2 provides a
summary of the affected population,
costs, and benefits after implementation
of this final rule.
TABLE 2—SUMMARY OF THE IMPACTS OF THE FINAL RULE
Category
Summary
Applicability .....................................
Replace the reportable marine casualty dollar threshold of $25,000 with $75,000.
Replace the SMI dollar threshold of $100,000 with $200,000.
Owners, agents, masters, operators, or persons in charge involved in a marine casualty and crewmembers
who are required to undergo chemical testing.
Annual average of 316 vessel owners, operators, or their representatives reporting a marine casualty, 21
marine employers reporting an SMI and submitting chemical testing results to the Coast Guard, and an
average of 32 vessel crewmembers will no longer be required to complete chemical testing.
No quantitative costs.
$45,560 annualized and $319,994 10-year present value monetized industry benefits (cost savings) (7%
discount rate).
$637,688 annualized and $4,478,854 10-year present value monetized government benefits (cost savings)
(7% discount rate).
Total of industry and government benefits: $683,248 annualized and $4,798,848 10-year present value
monetized combined benefits (cost savings) (7% discount rate).
Affected Population .........................
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Costs ...............................................
Benefits (Cost Savings) ..................
Affected Population
This final rule affects the owners,
agents, masters, operators, or persons in
charge of a commercial vessel who,
pursuant to 46 CFR 4.05–1, are required
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to notify the Coast Guard whenever a
vessel is involved in a marine casualty
and whenever crewmembers, pursuant
to 46 CFR 4.06–3, are required to
complete chemical testing following an
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SMI. Specifically, the regulations in this
final rule affect those individuals who
would have completed the necessary
forms (CG–2692 series) to report a
marine casualty where the only outcome
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was property damage of $25,000.01
through $75,000, or an SMI with
property damage of $100,000.01 through
$200,000 (CG–2692 series,
supplemented with an appended SMI
written report (CG–2692B)).10
We used incident investigation data
from the Coast Guard’s MISLE database
from 2012 through 2014 11 to estimate
the average number of vessel
crewmembers affected by this final rule.
From 2012 through 2014, we found
there was an average of 5,967 reports of
a marine casualty per year, with one
individual per vessel, who we assume to
be a vessel crewmember, completing
each report. An average of 271, or 4.5
percent of the annual 5,967 marine
casualty reports, involved an SMI.
Of the 5,967 marine casualty reports,
5.3 percent were for a reportable marine
casualty where the only outcome was
property damage of $25,000.01 through
$75,000. Therefore, we expect that an
average of 316 fewer reports of marine
casualties will be required per year
(5,967 reports × 5.3 percent, rounded).
Vessel owners and operators benefit
from a reduction in the time burden
associated with a crewmember no
longer having to prepare and submit the
required marine casualty reporting
paperwork.
Of the 271 casualty reports that
involved an SMI, 7.9 percent were cases
in which the sole outcome of the SMI
was property damage of $100,000.01
through $200,000. Based on that annual
average, the revisions in this final rule
will result in a reduction of 21 SMI
written reports (CG–2692B) per year due
to the change to the monetary threshold
amount for an SMI involving property
damage (271 reports × 7.9 percent,
rounded). Because property damage of
$100,000.01 through $200,000 exceeds
the threshold for a reportable marine
casualty, the forms for a marine casualty
report (CG–2692 series) will still need to
be completed under this final rule.
However, marine employers will no
longer be required to complete the
additional paperwork required for an
SMI written report (CG–2692B).
Consequently, marine employers benefit
10 ‘‘Report of Required Chemical Drug and
Alcohol Testing Following a Serious Marine
Incident.’’ See, 46 CFR 4.05–10.
11 This 3-year time period was used to be
consistent with the existing Collection of
Information, entitled ‘‘Report of Marine Casualty &
Chemical Testing of Commercial Vessel Personnel,’’
which has OMB Control Number 1625–0001.
Furthermore, as it often takes years to close the
cases, 2014 is the most recent complete year of
closed cases.
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from a reduction in the time burden
associated with an SMI written report
(CG–2692B), as well as cost savings
associated with chemical testing.
Benefit or Cost Savings to Industry
The benefit or cost savings to industry
is the difference between the current
baseline cost to industry and the cost to
industry after implementation of this
final rule.
Current Reporting Cost to Industry for
CG–2692 and CG–2692B
To estimate the benefit to industry,
we first estimate the current cost to
industry. The cost to industry includes
costs for reporting and recordkeeping
for a reportable marine casualty and the
costs for chemical testing for marine
casualties designated as SMIs. The
reporting and recordkeeping costs for
marine casualties include the time to
complete the forms (CG–2692 series) for
a marine casualty, the time for 10
percent of the forms to be internally
reviewed before submission, and the
time to complete the additional SMI
written report (CG–2692B) pursuant to
46 CFR 4.06–60(a) when a marine
casualty is designated as an SMI. The
time estimates and wage rates for
reporting and recordkeeping are taken
from the existing Collection of
Information (COI), entitled ‘‘Marine
Casualty Information & Periodic
Chemical Drug and Alcohol Testing of
Commercial Vessel Personnel,’’ which
has OMB Control Number 1625–0001.12
We use the same time estimates and
wage rates in this analysis to maintain
consistency and to capture the changes
resulting from this final rule.
An average of 5,967 marine casualty
reports are submitted annually by vessel
owners or operators. For each reportable
marine casualty, we estimated in the
existing COI that it takes 1 hour for a
vessel crewmember to complete the
necessary forms (CG–2692 series). We
estimated in the existing COI that the
position of vessel crewmember is
analogous to a government employee at
the grade level of a GS–03. The fully
loaded wage rate for a GS–03 is $26 per
hour, according to Commandant
Instruction 7310.1P, ‘‘Reimbursable
12 Existing Collection of Information, ‘‘Marine
Casualty Information & Periodic Chemical Drug and
Alcohol Testing of Commercial Vessel Personnel’’,
OMB Control Number 1625–0001, Docket Number
USCG–2015–0910, can be found at https://
www.federalregister.gov/documents/2015/10/23/
2015-27019/information-collection-request-tooffice-of-management-and-budget-omb-controlnumber-1625-0001.
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Standard Rates.’’ 13 We use this version
to maintain consistency with the
existing COI 1625–0001. The annual
baseline cost to complete the current
5,967 CG–2692 series forms is $155,142
(5,967 marine casualty reports × $26).
We estimate that it takes, on average,
1 hour to complete the CG–2692 series
of forms. However, we received public
comments in 2011 on the existing COI
number 1625–0001 that stated that
completing Form CG–2692 takes more
than 1 hour, and one commenter stated
that it can take up to 8 to 12 hours to
complete the form.14 The reason for this
difference is that some entities choose to
have the forms reviewed by shoreside
personnel, such as an attorney, prior to
submission to the Coast Guard. We
adjusted our burden estimate to account
for this additional layer of review. To
account for this additional time, 10
percent of the forms submitted have 10
hours of additional burden. The
additional time reflects internal review
by individuals employed by the vessel
owner or operator in addition to the
vessel crewmember who completes the
form. The additional reviewers may be
shoreside representatives, port
engineers, and attorneys, among others.
We estimate that the wage rate for this
added review is done by personnel
analogous to a government employee at
the grade level of a GS–14. The fully
loaded wage rate for a GS–14 is $101 per
hour, per Commandant Instruction
7310.1P. The total annual cost of this
additional time is $602,970 (597 marine
casualty reports × 10 additional burden
hours × $101).
When a marine casualty is designated
as an SMI, the marine employer must
also complete a ‘‘Report of Mandatory
Chemical Testing Following A Serious
Marine Incident Involving Vessels in
Commercial Service’’ (Form CG–2692B).
(See 46 CFR 4.06–60.) We estimate that
it takes 0.5 hours for a marine employer
analogous to a government employee at
the grade level of a GS–03 to complete
this form. The annual cost to complete
CG–2692B is $3,523 (271 SMI reports ×
0.5 hours × $26 per hour wage rate).
Table 3 shows a summary of the
current industry costs for reporting and
recordkeeping.
13 Out of Government Rate for GS–03. Hourly
Rates for Personnel ($), Enclosure (2) to
Commandant Instruction 7310.1P.
14 Docket ID: USCG–2011–0710. Comments can
be found at https://www.regulations.gov/
docket?D=USCG-2011-0710.
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11895
TABLE 3—CURRENT ANNUAL INDUSTRY COSTS FOR REPORTING AND RECORDKEEPING
Crewmembers/
responses
Requirement
Burden hours
per response
Annual hour
burden
Wage rate
Annual cost
burden
Written report of marine casualty .......................................
Additional Burden for 10% of Respondents .......................
SMI written report ...............................................................
5,967
597
271
1.0
10.0
0.5
5,967
5,970
136
$26
101
26
$155,142
602,970
3,523
Totals ...........................................................................
.........................
........................
12,073
........................
761,635
As mentioned earlier in this final rule,
when a marine casualty is designated as
an SMI, the crewmembers involved are
required to take a chemical test
pursuant to 46 CFR 4.06–3. The marine
employer incurs costs for the actual
costs of the chemical test and the time
it takes for a crewmember to take the
chemical test. The actual cost of the
chemical test includes the costs of the
chemical test collection kits, collector
fees, Coast Guard alcohol-testing swabs,
and overnight mailing. These costs can
vary, but on average, the actual
chemical test costs approximately $100
per test.15 The number of vessel
crewmembers required to take a
chemical test can vary depending on the
circumstances of the SMI. We analyzed
the casualty reports that involved an
SMI from MISLE data and found an
average of 1.5 crewmembers per SMI
were required to take a chemical test.
We used an estimate of 1.5
crewmembers to estimate the costs of
chemical testing to account for the
variation in crewmembers involved in
SMIs. With an average of 271 SMIs per
year, the current annual cost for the
actual chemical tests is $40,650 (271
SMIs × average of 1.5 crewmembers ×
$100 per test).
In addition to the cost of the chemical
tests, there is a cost associated with the
time it takes a vessel crewmember to
complete the chemical test. We estimate
that it takes 1 hour for a crewmember
to complete the chemical test.16 We
obtained the wage rate of the
crewmember from BLS, using
Occupational Series 53–5000, Water
Transportation Workers (May 2016).
The BLS reports that the mean hourly
wage rate for a water transportation
worker is $33.45.17 To account for
employee benefits, we use a load factor
of 1.52, which we calculated from 2016
4th quarter BLS data.18 The loaded wage
for a crewmember is estimated at $50.84
($33.45 wage rate × 1.52 load factor).
The cost of the time for a crewmember
to take the chemical test is $20,666 (271
SMIs × average of 1.5 crewmembers × 1
hour burden × $50.84 wage rate).
Therefore, the current annual cost to
industry for chemical testing is $61,316
(see table 4). Adding the costs for
chemical testing of $61,316 to the cost
for reporting and recordkeeping of
$761,635 (see table 3), brings the current
total annual cost to industry to
$822,951.
TABLE 4—CURRENT ANNUAL INDUSTRY COSTS FOR CHEMICAL TESTING
SMIs per year
Average
crewmembers
tested per
SMI
Cost of testing
procedures
Hours to take
test
Wage rate
Total cost
of testing
procedures
271 .......................................................................................
1.5
$100
1
$50.84
$61,316
Total Reporting Costs to Industry After
Implementation of the Final Rule
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Increasing the dollar threshold
amount for a reportable marine casualty
involving property damage, as well as
the dollar threshold amount for property
damage within the definition of a
‘‘serious marine incident,’’ reduces the
number of marine casualty responses by
5.3 percent, and the number of SMIs by
7.9 percent, annually. The burden hours
per response remain the same, but we
estimate that the total number of
responses decreases to 5,651 for marine
15 Most marine employers use a consortium that
simplifies and reduces the costs per test and also
assists in managing a company’s drug-testing
program. There are variables associated with the
cost of testing, as costs can vary depending on the
number of personnel included in a plan and the
type of testing plan adopted by a particular
company. Based on discussions with industry and
Coast Guard medical testing, contract data that are
not publically available, we estimated testing costs
of $79 and $114. We are, therefore, using an average
cost of $100 for this analysis [($79 + $114)/2,
rounded].
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casualties and 250 for SMIs, resulting in
316 fewer reported marine casualties
and 21 fewer SMIs. The following
sections replicate the calculation of
marine casualty reporting and chemical
testing, but reflect the reduced number
of reports and testing under the revised
thresholds.
For each reportable marine casualty,
we estimate that it takes 1 hour for a
vessel crewmember to complete all parts
of the necessary forms at a wage rate of
$26. We estimate that the cost to
complete the reduced number of marine
casualty forms is $146,926 (5,651
marine casualty reports × $26).
In addition to the time needed to
complete the marine casualty forms,
some of the forms require additional
processing time. The additional
processing time reflects internal review
by individuals employed by the vessel
owner or operator, in addition to the
time needed by the vessel crewmember
who completes the form. The additional
reviewers may be shoreside
representatives, port engineers, or
attorneys, among others. To account for
16 Hourly estimate is from Coast Guard subject
matter experts, and takes into account that these are
not planned tests, but instead are emergent tests—
required as a result of accidents—that must be taken
no later than 32 hours after the incident.
17 Mean wage, https://www.bls.gov/oes/2016/
may/naics3_483000.htm. Because the crewmembers
taking the chemical testing could be anyone from
a junior deck officer up to a Master/Captain/Chief
Engineer, we use the broader Water Transportation
Worker (53–5000).
18 Employer Costs for Employee Compensation
provides information on the employer
compensation and can be found in Table 9 at
https://www.bls.gov/news.release/archives/ecec_
03172017.pdf. https://data.bls.gov/data/. The loaded
wage factor is equal to the total compensation of
$28.15 divided by the wages and salary of $18.53.
Values for the total compensation, wages, and
salary are for all private industry workers in the
transportation and material moving occupations,
2016 4th quarter.
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this time, 10 percent 19 of the forms
submitted (565 forms) have 10 hours of
additional burden, and the wage rate for
this added review will be done by
personnel analogous to a government
employee at the grade level of a GS–14.
We estimate that the total cost of this
additional time after the
implementation of this final rule is
$570,650 (565 marine casualty reports ×
10 additional burden hours × $101).
As mentioned earlier in this final rule,
when a marine casualty is designated as
an SMI, the marine employer must
complete an SMI written report (CG–
2692B). We estimate that it takes 0.5
hours for a marine employer analogous
to a government employee at a grade
level of a GS–03 to complete this form.20
We estimate that the cost to complete
the additional forms for an SMI after
implementation of this final rule is
$3,250 (250 SMI reports × 0.5 hours ×
$26 per hour wage rate).
Table 5 shows a summary of the
industry costs after implementation of
this final rule.
TABLE 5—ANNUAL INDUSTRY COSTS FOR REPORTING AND RECORDKEEPING WITH REVISED REPORTING THRESHOLDS
Crewmembers/
responses
Requirement
Burden hours
per response
Annual hour
burden
Wage rate
Annual cost
burden
Written report of marine casualty .......................................
Additional Burden for 10% of Respondents .......................
SMI written report ...............................................................
5,651
565
250
1.0
10.0
0.5
5,651
5,650
125
$26
101
26
$146,926
570,650
3,250
Totals ...........................................................................
.........................
........................
11,426
........................
720,826
The marine employer incurs the
actual costs of the chemical test and the
wage burden it takes for a crewmember
to complete the chemical test. On
average, each chemical test costs
approximately $100. We use an estimate
of 1.5 crewmembers to estimate the
costs of chemical testing to account for
the variation in crewmembers involved
in SMIs. With an average of 250 SMIs
per year, the annual cost after
implementation of this final rule for the
actual chemical tests is $37,500 (250
SMIs × average of 1.5 crewmembers ×
$100 per test).
In addition to the cost of the chemical
tests, there is a cost associated with the
time it takes a vessel crewmember to
complete the chemical test. We estimate
that it takes 1 hour for a crewmember
to complete the chemical test at a
loaded wage rate of $50.84 per hour. We
estimate that the cost of the time for a
crewmember to take the chemical test
under this final rule is $19,065 (250
SMIs × average of 1.5 crewmembers × 1
hour burden × $50.84 wage rate).
Therefore, the annual cost to industry
for chemical testing after
implementation of this final rule is
$56,565 (see table 6). Adding the costs
for chemical testing of $56,565 to the
cost for reporting and recordkeeping of
$720,826 (see table 5) brings the
estimated total annual cost to industry
to $777,391.
TABLE 6—ANNUAL INDUSTRY COSTS FOR CHEMICAL TESTING AFTER IMPLEMENTATION OF THE FINAL RULE
SMIs per year
Average
crewmembers
tested per
SMI
Cost of testing
procedures
Hours to take
test
Wage rate
Total cost
of testing
procedures
250
1.5
$100
1
$50.84
$56,565
The annual burden of reporting
marine casualties and SMIs under the
current dollar amount thresholds is
$822,951. The annual burden of
reporting under the new thresholds is
$777,391. Therefore, we estimate that
the annual cost savings or benefit to
industry after implementation of this
final rule is $45,560. Table 7 shows a
summary of the annual current industry
cost burden, the annual industry cost
burden after implementation of the final
rule, and the annual cost savings
resulting from implementation of this
final rule.
TABLE 7—TOTAL ANNUAL COST SAVINGS TO INDUSTRY BY REQUIREMENT AFTER IMPLEMENTATION OF THE FINAL RULE
Current annual industry cost burden
Requirement
Annual
industry
cost burden after
implementation
of final rule
Annual
industry cost
savings after
implementation
of final rule
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Written report of marine casualty ..............................................................................
Additional burden for 10% of respondents ................................................................
SMI written report ......................................................................................................
Testing procedures ....................................................................................................
$155,142
602,970
3,523
61,316
$146,926
570,650
3,250
56,565
$8,216
32,320
273
4,751
Total ....................................................................................................................
822,951
777,391
45,560
19 Docket ID: USCG–2011–0710, https://
www.regulations.gov/docket?D=USCG-2011-0710.
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20 The wage rate for a marine employer to
complete Form CG–2692B and to report chemical
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number 1625–0001.
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The total 10-year undiscounted
industry cost savings of this final rule is
$455,600. Table 8 shows the 10-year
estimated discounted cost savings to
industry to be $319,994, with an
11897
annualized cost savings of $45,560,
using a 7-percent discount rate.
TABLE 8—TOTAL ESTIMATED COST SAVINGS OR INDUSTRY BENEFITS OF THE FINAL RULE OVER A 10-YEAR PERIOD OF
ANALYSIS
[Discounted costs at 7 and 3 percent]
Total
undiscounted
costs
Year
Total, discounted
7%
3%
1 ...................................................................................................................................................
2 ...................................................................................................................................................
3 ...................................................................................................................................................
4 ...................................................................................................................................................
5 ...................................................................................................................................................
6 ...................................................................................................................................................
7 ...................................................................................................................................................
8 ...................................................................................................................................................
9 ...................................................................................................................................................
10 .................................................................................................................................................
$45,560
45,560
45,560
45,560
45,560
45,560
45,560
45,560
45,560
45,560
$42,579
39,794
37,191
34,758
32,484
30,359
28,372
26,516
24,782
23,160
$44,233
42,945
41,694
40,479
39,300
38,156
37,044
35,965
34,918
33,901
Total ......................................................................................................................................
455,600
319,994
388,636
Annualized .....................................................................................................................
........................
45,560
45,560
Benefits or Cost Savings to Government
The benefit to the Federal
Government is the difference between
the baseline current cost to the Coast
Guard and the cost to the Coast Guard
after implementation of this final rule.
Current Costs to Government
We first estimated the current costs to
the Coast Guard, which include the cost
to investigate a marine casualty and the
cost of processing marine casualty
forms. Because an SMI is a type of
marine casualty, the estimate for the
cost of the investigation and the
processing of the casualty forms
includes those incidents that constitute
an SMI. Reportable marine casualties
are investigated by the Coast Guard.
Some investigations may be more
complex than others, depending on the
incident. The Coast Guard reviewed the
CG–741 (Coast Guard Office of Shore
processes an average of 5,967 marine
casualty reports per year. To maintain
consistency and capture the changes
due to this final rule, the time estimates
and wage rates for processing the forms
are taken from the existing COI 1625–
0001. For each reportable marine
casualty, we estimate that it takes 1 hour
by a Lieutenant Junior Grade (LTJG; O–
2) to process the forms (CG–2692 series),
including auditing at a local field
investigation office and the entry of
pertinent information into Coast Guard’s
MISLE system. The fully loaded wage
rate for an O–2 is $68 per hour, per
Commandant Instruction 7310.1P. Table
9 shows the current annual cost for the
Coast Guard to process reportable
marine casualties to be $405,756 (5,967
reportable marine casualties × 1 burden
hour × $68 wage rate). We estimate that
the total current annual cost to the
Federal Government is $12,041,406.
Forces) Sector Staffing Model to
estimate the average number of hours
per investigation across all incident
types. The Sector Staffing Model assigns
a total hourly effort for the type of
incident (e.g., allision, grounding,
collision) that is matched against MISLE
data, which then provides the resource
needs for each Coast Guard Sector. We
estimate that, across all types of
incidents, these investigations take an
average of 25 hours for a Lieutenant (LT;
O–3) to complete. There is an average of
5,967 marine casualty cases per year.
The fully loaded wage rate for an O–3
is $78 per hour, per Commandant
Instruction 7310.1P. Table 9 shows the
current annual cost of investigations to
be $11,635,650 (5,967 reportable marine
casualties × 25 burden hours × $78 wage
rate).
The Coast Guard must process the
forms submitted for each reportable
marine casualty, and currently
TABLE 9—CURRENT ANNUAL GOVERNMENT COSTS
Reportable
marine
casualties
Cost category
Burden hours
per response
Annual hours
Wage rate
Annual cost
5,967
5,967
25
1
149,175
5,967
$78
68
$11,635,650
405,756
Total ..............................................................................
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Investigation .........................................................................
Processing marine casualty reports ....................................
........................
........................
........................
........................
12,041,406
Under this final rule, increasing the
dollar amount threshold for property
damage reduces the number of
reportable marine casualties by 5.3
percent, resulting in 316 fewer
reportable marine casualties. The
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burden hours per response for
investigations and processing marine
casualty reports remains the same, but
the average number of reportable marine
casualties decreases to 5,651 per year.
We estimate that it takes an average of
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25 hours for an O–3 to complete and
investigate and 1 hour for an O–2 to
process the forms for each reportable
marine casualty. Table 10 shows the
annual cost for the Coast Guard to
complete investigations under this final
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rule to be $11,019,450 (5,651 reportable
marine casualties × 25 hour burden ×
$78). The annual cost to process
reportable marine casualties after
implementation of this final rule is
$384,268 (5,651 reportable marine
casualties × 1 hour burden × $68). We
estimate that the total annual cost to the
Federal Government is $11,403,718 after
implementation of this final rule.
TABLE 10—ESTIMATED ANNUAL GOVERNMENT COSTS AFTER IMPLEMENTATION OF THE FINAL RULE
Reportable
marine
casualties
Cost category
Burden hours
per response
Annual hours
Wage rate
Annual cost
Investigation .........................................................................
Processing marine casualty report ......................................
5,651
5,651
25
1
141,275
5,651
$78
68
$11,019,450
384,268
Total ..............................................................................
........................
........................
........................
........................
11,403,718
The current annual cost to the Coast
Guard to process marine casualty
reports is $12,041,406. The annual cost
to the Coast Guard after implementation
of this final rule is $11,403,718.
Therefore, the annual Federal
Government benefit of reducing those
reportable marine casualties that
involve property damage alone is
$637,688. This reduction, however, does
not result in a need for fewer Coast
Guard investigators, as the existing
investigators will be able to focus efforts
on higher consequence incidents. We
estimate the total undiscounted cost
savings or benefit of this final rule to the
Federal Government to be $6,376,880
over the 10-year period of analysis.
Table 11 shows the total estimated 10year discounted cost savings to the
Federal Government to be $4,478,854,
with an annualized cost savings of
$637,688, using a 7-percent discount
rate.
TABLE 11—TOTAL ESTIMATED COST SAVINGS OR GOVERNMENT BENEFITS OF THE FINAL RULE OVER A 10-YEAR PERIOD
OF ANALYSIS
[Discounted costs at 7 and 3 percent]
Total
undiscounted
costs
Year
Total discounted costs
7%
3%
1 ...................................................................................................................................................
2 ...................................................................................................................................................
3 ...................................................................................................................................................
4 ...................................................................................................................................................
5 ...................................................................................................................................................
6 ...................................................................................................................................................
7 ...................................................................................................................................................
8 ...................................................................................................................................................
9 ...................................................................................................................................................
10 .................................................................................................................................................
$637,688
637,688
637,688
637,688
637,688
637,688
637,688
637,688
637,688
637,688
$595,970
556,981
520,543
486,489
454,663
424,918
397,120
371,140
346,860
324,168
$619,115
601,082
583,575
566,578
550,075
534,054
518,499
503,397
488,735
474,500
Total ......................................................................................................................................
6,376,880
4,478,854
5,439,608
Annualized .....................................................................................................................
........................
637,688
637,688
Total Cost Savings or Benefits of the
Final Rule
Table 12 presents the total estimated
benefits or cost savings of the final rule
using 7- and 3-percent discount rates.
We estimate the total 10-year (industry
and Federal Government) undiscounted
cost savings of this final rule to be
$6,832,480. We estimate the total 10year discounted cost savings of this final
rule to be $4,798,848, and the
annualized cost savings to be $683,248,
using a 7-percent discount rate. Using a
perpetual period of analysis, we
estimate the total annualized cost
savings of the final rule is $596,775 in
2016 dollars, using a 7 percent discount
rate.
TABLE 12—TOTAL ESTIMATED COST SAVINGS OR BENEFITS OF THE FINAL RULE OVER A 10-YEAR PERIOD OF ANALYSIS
[Discounted benefits at 7 and 3 percent]
Total
undiscounted
costs
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Year
1
2
3
4
5
6
7
8
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
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$683,248
683,248
683,248
683,248
683,248
683,248
683,248
683,248
E:\FR\FM\19MRR1.SGM
19MRR1
Total, discounted
7%
3%
$638,550
596,775
557,734
521,247
487,146
455,277
425,493
397,657
$663,348
644,027
625,269
607,057
589,376
572,209
555,543
539,362
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11899
TABLE 12—TOTAL ESTIMATED COST SAVINGS OR BENEFITS OF THE FINAL RULE OVER A 10-YEAR PERIOD OF
ANALYSIS—Continued
[Discounted benefits at 7 and 3 percent]
Total
undiscounted
costs
Year
Total, discounted
7%
3%
9 ...................................................................................................................................................
10 .................................................................................................................................................
683,248
683,248
371,642
347,329
523,653
508,401
Total ......................................................................................................................................
6,832,480
4,798,848
5,828,244
Annualized .....................................................................................................................
........................
683,248
683,248
B. Small Entities
Under the Regulatory Flexibility Act,
5 U.S.C. 601–612, we have considered
whether this final rule has a significant
economic impact on a substantial
number of small entities. The term
‘‘small entities’’ comprises small
businesses, not-for-profit organizations
that are independently owned and
operated and are not dominant in their
fields, and governmental jurisdictions
with populations of less than 50,000.
This final rule reduces the burden on
industry by increasing the property
damage dollar threshold amount within
the definition of ‘‘SMI’’ and for
reporting a marine casualty incident.
There is no effect on any crewmember,
owner, or operator of a vessel that does
not have a reportable marine casualty or
serious marine incident. There is no
effect on any crewmember, owner, or
operator of a vessel that has a marine
casualty with property damage less than
or equal to $25,000, or an SMI with
damage less than or equal to $100,000,
as these individuals currently do not
have to report the casualty and will not
have to do so under this final rule.
There is no effect on any crewmember,
owner, or operator of a vessel that has
a marine casualty with property damage
greater than $75,000, or an SMI with
property damage greater than $200,000,
as these individuals must currently
report such casualties and perform
chemical testing, and will continue to
be required to do so under this final
rule.
This final rule does not impose any
direct costs on any specific industry.
The only affected individuals are
owners or operators of those vessels that
would have been involved in a marine
casualty where the only outcome is
property damage of $25,000.01 through
$75,000, or an SMI where the only
outcome is property damage of
$100,000.01 through $200,000. These
entities, which would have incurred
costs to report these casualties or
conduct chemical testing, will be
positively affected by this final rule
because of the increase in the monetized
threshold amounts.
As discussed in Section VI.A,
Regulatory Planning and Review, of this
final rule, we expect that an average of
approximately 316 fewer reports of
marine casualties will be required per
year, with one individual per vessel
who we assume to be a vessel
crewmember completing each report.
We assume the 316 marine casualty
reports occur on 316 separate vessels. It
is possible a vessel could have multiple
incidents in one year, resulting in
multiple marine casualty reports, but for
this analysis we assume the 316 fewer
reports are ascribed to 316 separate
vessels. We compared this affected
population to the total population that
could have a marine casualty and be
required to prepare and submit marine
casualty reporting paperwork. We used
the MISLE Vessel Population data to
estimate the total population that will
be affected. We found that the current
total population of vessels that could
have a marine casualty and be required
to submit paperwork is 209,475.21
Therefore, the 316 fewer vessels
preparing marine casualty paperwork
represents 0.15 percent of the total
population.
The owners or operators of these 316
vessels benefit from a reduction in time
burden associated with a crewmember
no longer having to prepare and submit
the required marine casualty reporting
paperwork. Table 7 in Section VI
summarizes the annual cost savings to
industry by requirement. Table 13
shows these annual cost savings and the
vessel population we estimated will
benefit from each reduction in
paperwork or testing requirement.
TABLE 13—MAXIMUM POTENTIAL COST SAVINGS PER VESSEL PER INCIDENT
Total annual
cost savings
Requirement
Vessel
population
Maximum
potential
cost savings
per vessel
$8,216
32,320
273
4,751
316
32
21
21
$26
1,010
13
226
Totals ....................................................................................................................................
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Written report of marine casualty ................................................................................................
Additional Burden for 10% of Respondents ................................................................................
SMI written report ........................................................................................................................
Testing Procedures ......................................................................................................................
45,560
........................
1,275
21 Population data were pulled from MISLE on
9/28/2016. The population is for commercial
vessels that are active and in-service. The
population includes commercial fishing vessels,
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fish processing vessels, freight barges, industrial
vessels, mobile offshore drilling units, offshore
supply vessels, oil recovery vessels, passenger
(inspected and uninspected) vessels, passenger
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barges (inspected and uninspected), public freights,
public tankships/barges, unclassified public
vessels, research vessels, school ships, tank barges,
tank ships, and towing vessels.
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The total cost savings per vessel for
the population of 316 vessels benefiting
from this final rule will vary depending
on the requirements. For example, we
estimate that 32 of the vessels (10
percent of population, rounded) will
have savings due to a reduction in
marine casualty reports ($26), and an
additional savings for the additional
burden of reviewing the paperwork
($1,010), in any given year. Therefore, a
one-time savings will be $1,036 for a
vessel with only these two
requirements. The minimum savings is
$26 for a vessel that has only the
requirement of preparing and
submitting the marine casualty report. If
a vessel would have had to complete all
the requirements in table 13, the
maximum cost savings is $1,275. This
maximum cost savings will be for a
vessel with a marine casualty
designated as an SMI that completed
additional paperwork and reported the
chemical test results to the Officer in
Charge, Marine Inspection (OCMI).
Therefore, the owner or operator of the
316 vessels affected by this final rule
would have to have maximum annual
revenues of $2,600 to $127,500 for this
final rule to have a positive impact
greater than 1 percent.
Therefore, pursuant to section 605(b)
of the Regulatory Flexibility Act, 5
U.S.C. 605(b), the Coast Guard certifies
that this final rule will not have a
significant economic impact on a
substantial number of small entities
because the increase in the monetized
property damage threshold amounts
reduces the reporting burden on
crewmembers or vessel owners or
operators who complete the marine
casualty reports or perform the required
chemical testing, as described above.
This final rule reduces the hourly
burden associated with marine casualty
reporting and chemical testing and will
not adversely affect small entities as
defined by the Small Business
Administration in 13 CFR 121.201.
C. Assistance for Small Entities
Under section 213(a) of the Small
Business Regulatory Enforcement
Fairness Act of 1996, Public Law 104–
121, we offer to assist small entities in
understanding this rule so that they can
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
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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 final rule calls for a collection of
information under the Paperwork
Reduction Act of 1995 (44 U.S.C. 3501–
3520). As defined in 5 CFR 1320.3(c),
‘‘collection of information’’ comprises
reporting, recordkeeping, monitoring,
posting, labeling, and other similar
actions. The title and description of the
information collection, a description of
those who must collect the information,
and an estimate of the total annual
burden follow.
Under the provisions of the final rule,
the Coast Guard will collect information
from ship personnel who are involved
in marine casualties resulting in more
than $75,000 in property damage, and
serious marine incidents resulting in
more than $200,000 in property damage.
This requirement amends an existing
collection of information by effectively
reducing the number of instances
requiring information to be collected
under OMB control number 1625–0001.
Title: Report of Marine Casualty &
Chemical Testing of Commercial Vessel
Personnel.
OMB Control Number: 1625–0001.
Summary of the Collection of
Information: This final rule requires
responses such as the preparation of
written notification by completing Form
CG–2692 (series), and the processing of
records. We use this information to
identify pertinent safety lessons and to
initiate appropriate steps for reducing
the likelihood of similar accidents in the
future. The collection of information
will aid the regulated public in assuring
safe practices.
Need for Information: These reporting
requirements permit the Coast Guard to
initiate the investigation of marine
casualties as required by 46 U.S.C. 6301,
in order to determine the causes of
casualties and whether existing safety
standards are adequate, or whether new
laws or regulations need to be
developed. Receipt of a marine casualty
report is often the only way in which
the Coast Guard becomes aware of a
marine casualty. It is therefore a
necessary first step that provides the
Coast Guard with the opportunity to
determine the extent to which a casualty
will be investigated.
Proposed Use of Information: In the
short term, the information provided in
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the report may also trigger corrective
safety actions addressing immediate
hazards or defective conditions, further
investigations of mariner conduct or
professional competence, or civil or
criminal enforcement actions by the
Coast Guard, other Federal agencies, or
state and local authorities. In the long
term, information contained in the
report becomes part of the MISLE
marine casualty database at Coast Guard
Headquarters. The Coast Guard uses the
information in the MISLE database to
identify safety problems and long term
trends, publish casualty summaries and
annual statistics for public use, establish
whether additional safety oversight or
regulation is needed, measure the
effectiveness of existing regulatory
programs, and better focus limited Coast
Guard marine safety resources.
Description of the Respondents: The
respondents are those owners, agents,
masters, operators, or persons in charge
that notify the nearest Sector Office,
Marine Inspection Office, or Coast
Guard Group Office whenever a vessel
is involved in a marine casualty.
Specifically, this final rule affects those
vessel crewmembers and marine
employers who completed the necessary
forms to report a marine casualty where
the only outcome was property damage
of $25,000.01 through $75,000, or an
SMI with property damage of
$100,000.01 through $200,000 (CG–2692
series).
Number of Respondents: We estimate
that the number of respondents affected
by this rule will be 5,651 per year. This
is a decrease of 316 respondents from an
OMB-approved number of respondents
of 5,967 per year that complete the CG–
2692 series forms (a subset of the total
respondents in COI 1625–0001). We
estimate that 250 of these marine
casualty respondents fall under the
category of SMI respondents and would
have been required to fill out an
additional SMI written report (CG–
2692B). This is a decrease of 21
respondents per year from 271
respondents.
Frequency of Response: The
notification response is required only if
a marine casualty occurs as defined in
46 CFR 4.03–2 and 46 CFR 4.05–1.
Burden of Response: For each
response, we estimate that it takes 1
hour for a vessel crewmember to
complete all of the necessary forms
(CG–2692 series). In addition, some
marine casualty forms may undergo
additional processing by the
respondents. To account for this
additional time, 10 percent of the forms
submitted have 10 hours of additional
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burden.22 When a marine casualty is
designated as an SMI, the marine
employer must also complete an SMI
written report (CG–2692B). We estimate
that it takes 0.5 hours for a respondent
to complete an SMI written report (CG–
2692B)
Estimate of Total Annual Burden: We
estimate that the number of responses
will decrease by 316 per year. At 1 hour
per response, the reduced burden for
submitting the responses will be 316
hours. In addition, 10 percent of these
responses would have required
additional processing of 10 hours per
response, for a reduction of an
additional 320 burden hours.23 We
estimate that 21 of the responses would
have been designated as an SMI. At 0.5
hours per SMI, the burden will be
reduced by 11 hours (rounded).
Therefore, this final rule decreases the
total annual burden by 647 hours.24
This action contains amendments to
the existing information collection
requirements previously approved
under OMB Control Number 1625–0001.
As required by 44 U.S.C. 3507(d), we
will submit a copy of this final rule to
OMB for its review of the collection of
information.
nshattuck on DSK9F9SC42PROD with RULES
E. Federalism
A rule has implications for federalism
under Executive Order 13132
(‘‘Federalism’’) if it has a substantial
direct effect on 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 Executive Order 13132
and have determined that it does not
have implications for federalism. Our
analysis follows.
It is well settled that States may not
regulate in categories reserved for
22 The Coast Guard estimates that it takes up to
1 hour to complete Form CG–2692 (series).
However, we received public comments in 2013 on
COI number 1625–0001 stating that some
submitters take more time—up to 8 to 12 hours—
to complete the form. Docket ID: USCG–2011–0710,
https://www.regulations.gov/docket?D=USCG-20110710. The reason for this difference is that some
entities have the form(s) reviewed by shore-side
personnel, such as an attorney, prior to submission
to the Coast Guard. The practice of having a form
reviewed by an attorney is not required by Coast
Guard regulation. While we believe that this does
not typically occur, we adjusted our burden
estimate to account for the added review.
23 Due to rounding in the estimates, the current
burden for the additional review is 5,970 hours. The
burden under this final rule is 5,650 hours, which
is a reduction of 320 hours.
24 The current annual burden in COI 1625–0001
for completing the marine casualty forms, the
additional processing for some respondents, and the
time to complete the SMI forms is 12,073 hours.
The annual burden under this final rule is 11,426
hours, a reduction of 647 hours.
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11901
regulation by the Coast Guard. It is also
well settled that all of the categories
covered in 46 U.S.C. 3306, 3703, 7101,
and 8101 (design, construction,
alteration, repair, maintenance,
operation, equipping, personnel
qualification, and manning of vessels),
as well as the reporting of casualties and
any other category in which Congress
intended the Coast Guard to be the sole
source of a vessel’s obligations, are
within the field foreclosed from
regulation by the States. (See the
Supreme Court’s decision in United
States v. Locke and Intertanko v. Locke,
529 U.S. 89, 120 S.Ct. 1135 (2000).)
Because the States may not regulate
within this category, preemption under
Executive Order 13132 is not an issue.
or on the distribution of power and
responsibilities between the Federal
Government and Indian tribes.
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.
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
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
does not use technical standards.
Therefore, we did not consider the use
of voluntary consensus standards.
G. Taking of Private Property
This rule will not cause a taking of
private property or otherwise have
taking implications under Executive
Order 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 Executive
Order 12988, (‘‘Civil Justice Reform’’), to
minimize litigation, eliminate
ambiguity, and reduce burden.
I. Protection of Children
We have analyzed this rule under
Executive Order 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 Executive Order
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,
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K. Energy Effects
We have analyzed this rule under
Executive Order 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 Executive Order 12866 and is not
likely to have a significant adverse effect
on the supply, distribution, or use of
energy.
L. Technical Standards
M. Environment
We have analyzed this rule under
Department of Homeland Security
Management Directive 023–01 and
Commandant Instruction M16475.lD
(COMDTINST M164751D), 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 that do not
individually or cumulatively have a
significant effect on the human
environment. A Record of
Environmental Consideration
supporting this determination is
available in the docket where indicated
under the ADDRESSES section of this
preamble. This rule involves regulations
concerning marine casualties and
updates the monetary threshold
amounts for a reportable marine
casualty as well as the definition of an
SMI relative to property damage. Thus,
this action is categorically excluded
under Section 2.b.2, figure 2–1,
paragraph (34)(d) of COMDTINST
M164751D.
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List of Subjects in 46 CFR Part 4
Administrative practice and
procedure, Drug testing, Investigations,
Marine safety, National Transportation
Safety Board, Nuclear vessels, Radiation
protection, Reporting and recordkeeping
requirements, Safety, Transportation.
For the reasons discussed in the
preamble, the Coast Guard amends 46
CFR part 4 as follows:
PART 4—MARINE CASUALTIES AND
INVESTIGATIONS
1. The authority citation for part 4
continues to read as follows:
■
Authority: 33 U.S.C. 1231; 43 U.S.C. 1333;
46 U.S.C. 2103, 2303a, 2306, 6101, 6301, and
6305; 50 U.S.C. 198; Department of
Homeland Security Delegation No. 0170.1.
Subpart 4.40 issued under 49 U.S.C.
1903(a)(1)(E).
§ 4.03–2
[Amended]
2. In § 4.03–2(a)(3), remove the text
‘‘$100,000’’ and add, in its place, the
text ‘‘$200,000’’.
[Amended]
3. In § 4.05–1(a)(7), remove the text
‘‘$25,000’’ and add, in its place, the text
‘‘$75,000’’.
■ 4. In § 4.05–10, revise paragraph (a) to
read as follows:
■
§ 4.05–10
casualty.
Written report of marine
nshattuck on DSK9F9SC42PROD with RULES
(a) The owner, agent, master, operator,
or person in charge must, within 5 days,
file a written report of any marine
casualty required to be reported under
§ 4.05–1. This written report is in
addition to the immediate notice
VerDate Sep<11>2014
14:37 Mar 16, 2018
§ 4.05–12 Alcohol or drug use by
individuals directly involved in casualties.
Jkt 244001
*
*
*
*
(b) In the written report (Forms CG–
2692 and CG–2692B) submitted for the
casualty, the marine employer must
include information that—
*
*
*
*
*
(d) If an individual directly involved
in a casualty refuses to submit to, or
cooperate in, the administration of a
timely chemical test, when directed by
a law enforcement officer or by the
marine employer, this fact must be
noted in the official log book, if carried,
and in the written report (Forms CG–
2692 and CG–2692B), and shall be
admissible as evidence in any
administrative proceeding.
its place, the text ‘‘Forms CG–2692 and
CG–2692B’’.
§ 4.06–5
[Amended]
7. In § 4.06–5(b), remove the text
‘‘form CG–2692B’’ and add, in its place,
the text ‘‘Forms CG–2692 and CG–
2692B’’.
■
§ 4.06–30
[Amended]
8. In § 4.06–30(b), remove the text
‘‘(Report of Required Chemical Drug and
Alcohol Testing Following a Serious
Marine Incident)’’ and add, in its place,
the text ‘‘(Report of Mandatory
Chemical Testing Following a Serious
Marine Incident Involving Vessels in
Commercial Service)’’.
■
§ 4.06–60
[Amended]
9. Amend § 4.06–60 as follows:
a. In § 4.06–60(a), remove the text
‘‘(Report of Required Chemical Drug and
Alcohol Testing Following a Serious
Marine Incident)’’ and add, in its place,
the text ‘‘(Report of Mandatory
Chemical Testing Following a Serious
Marine Incident Involving Vessels in
Commercial Service)’’; and
■ b. In § 4.06–60(b), remove the text
‘‘(Report of Marine Casualty, Injury or
Death)’’ and add, in its place, the text
‘‘(Report of Marine Casualty,
Commercial Diving Casualty, or OCSRelated Casualty)’’.
■
*
■
§ 4.05–1
required by § 4.05–1. This written report
must be delivered to a Coast Guard
Sector Office or Marine Inspection
Office. It must be provided on Form
CG–2692 (Report of Marine Casualty,
Commercial Diving Casualty, or OCSRelated Casualty), and supplemented as
necessary by appended Forms CG–
2692A (Barge Addendum), CG–2692B
(Report of Mandatory Chemical Testing
Following a Serious Marine Incident
Involving Vessels in Commercial
Service), CG–2692C (Personnel Casualty
Addendum), and/or CG–2692D
(Involved Persons and Witnesses
Addendum).
*
*
*
*
*
■ 5. Revise § 4.05–12(b) introductory
text and (d) to read as follows:
■
§ 4.06–3
Dated: March 8, 2018.
Jennifer F. Williams,
Captain, U.S. Coast Guard, Director of
Inspections and Compliance.
[Amended]
6. In § 4.06–3(a)(3) and (b)(2), remove
the text ‘‘form CG–2692B’’ and add, in
■
PO 00000
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Sfmt 9990
[FR Doc. 2018–05467 Filed 3–16–18; 8:45 am]
BILLING CODE 9110–04–P
E:\FR\FM\19MRR1.SGM
19MRR1
]]>Agencies
[Federal Register Volume 83, Number 53 (Monday, March 19, 2018)]
[Rules and Regulations]
[Pages 11889-11902]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-05467]
=======================================================================
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DEPARTMENT OF HOMELAND SECURITY
Coast Guard
46 CFR Part 4
[Docket No. USCG-2016-0748]
RIN 1625-AC33
Marine Casualty Reporting Property Damage Thresholds
AGENCY: Coast Guard, DHS.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Coast Guard is amending the monetary property damage
threshold amounts for reporting a marine casualty and for reporting a
type of marine casualty called a ``serious marine incident.'' The
original regulations that set these dollar threshold amounts were
written in the 1980s and have not been updated since that time. Because
the monetary thresholds for reporting have not kept pace with
inflation, vessel owners and operators have been required to report
relatively minor casualties. Additionally, the original regulations
require mandatory drug and alcohol testing following a serious marine
incident. As a result, vessel owners and operators are conducting
testing for casualties that are less significant than those intended to
be captured by the original regulations. Updating the original
regulations will reduce the burden on vessel owners and operators, and
will also reduce the amount of Coast Guard resources expended to
investigate these incidents.
DATES: This final rule is effective April 18, 2018.
FOR FURTHER INFORMATION CONTACT: For information about this document,
call or email LCDR Baxter B. Smoak, CG-INV, Coast Guard; telephone 202-
372-1223, email [email protected].
SUPPLEMENTARY INFORMATION:
Table of Contents for Preamble
I. Abbreviations
II. Background, Basis, and Purpose
III. Regulatory History
IV. Discussion of Final Rule
V. Discussion of Comments and Changes
A. Dollar Threshold Amounts for Reporting Marine Casualties
B. Dollar Threshold Amounts for Reporting SMIs
C. Periodic Adjustments of the Threshold Amounts for Reporting
Marine Casualties and SMIs
D. Loss of Marine Casualty Data
E. Amending the Dollar Amount Thresholds for Outer Continental
Shelf Casualty Reporting in Title 33 of the CFR
F. Use of the CPI-U to Determine Reporting Threshold Amounts
G. Nonsubstantive Changes to Reflect Updated CG-2692, Report of
Marine Casualty, Commercial Diving Casualty, or OCS-related Casualty
VI. Regulatory Analyses
A. Regulatory Planning and Review
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
I. Abbreviations
BLS Bureau of Labor Statistics
CFR Code of Federal Regulations
COI Collection of Information
CPI-U Consumer Price Index for All Urban Consumers
DHS Department of Homeland Security
MISLE Marine Information for Safety and Law Enforcement
NPRM Notice of Proposed Rulemaking
OCMI Officer in Charge, Marine Inspection
OCS Outer Continental Shelf
OMB Office of Management and Budget
PVA Passenger Vessel Association
RA Regulatory analysis
SMI Serious marine incident
SNPRM Supplemental notice of proposed rulemaking.
U.S.C. United States Code
Sec. Section symbol
II. Background, Basis, and Purpose
Pursuant to 46 U.S.C. 6101, the Coast Guard is required to
prescribe regulations on marine casualty reporting and the manner of
reporting. Based on this authority, we developed regulations in part 4
of title 46 of the Code of Federal Regulations (CFR) that included,
among other criteria, monetary property damage threshold amounts for
reporting a ``serious marine incident'' \1\ (SMI) and for reporting a
marine casualty.\2\ The original regulations setting these property
damage threshold amounts were developed in the 1980s, and they have not
been updated since that time. With this final rule, we update the
dollar threshold amounts for property damage
[[Page 11890]]
in 46 CFR 4.03-2(a)(3) and 4.05-1(a)(7) to account for inflation.
---------------------------------------------------------------------------
\1\ 46 CFR 4.03-2.
\2\ 46 CFR 4.05-1.
---------------------------------------------------------------------------
As described in greater detail in the notice of proposed rulemaking
(NPRM), there is Coast Guard and stakeholder consensus that the 1980s
property damage monetary threshold amounts listed in 46 CFR 4.03-2 and
4.05-1 have not kept pace with inflation.\3\ Over time, this has
resulted in the reporting of a greater number of casualties involving
relatively minor property damage. It was never our intent to require
owners or operators to notify us of casualties involving relatively
minor property damage. Consequently, we are amending the property
damage monetary threshold amounts to eliminate the reporting of
insignificant property damage incidents.
---------------------------------------------------------------------------
\3\ 82 FR 7755, page 7756.
---------------------------------------------------------------------------
Additionally, because the regulations require mandatory drug and
alcohol testing following an SMI, current regulations require chemical
testing of crewmembers for casualties that reach a minimum threshold of
$100,000 in property damage. Because of cost increases caused by
inflation, however, casualties that result in property damage between
$100,000 and $200,000 are no longer representative of a ``serious''
incident. The lack of inflation updates to our marine casualty
regulations has resulted in an additional administrative and financial
burden on vessel owners and operators, as well as on Coast Guard
resources used to investigate these incidents.
III. Regulatory History
On January 23, 2017, the Coast Guard published an NPRM with request
for comments. No public meeting was requested, and none was held.
IV. Discussion of Final Rule
This final rule changes the reportable marine casualty property
damage threshold amount in 46 CFR 4.05-1(a)(7) from $25,000 to $75,000.
In the NPRM, we proposed to make this threshold $72,000, but chose
$75,000 for reasons explained in the next section of this preamble.
This final rule also changes the SMI property damage threshold in 46
CFR 4.03-2(a)(3) from $100,000 to $200,000. This change is the same as
that proposed in the NPRM.
With the dollar amount thresholds updated to account for inflation,
we expect there will be a decrease in the number of commercial vessel
casualties reported to the Coast Guard. The updates in this final rule
will also likely decrease the number of casualties that fall within the
definition of an SMI, and thereby reduce the number of chemical tests
administered following an SMI that results in $100,000.01 to $200,000
worth of property damage. However, mandatory chemical testing will
still be required if the property damage meets the updated dollar
threshold amount (in excess of $200,000) established in this final
rule. Our intent in setting a dollar amount threshold in our marine
casualty reporting regulation and within the definition of ``serious
marine incident'' was, and remains, to ensure that the Coast Guard is
aware of those incidents that could be indicative of more serious
problems that may be averted in the future with timely intervention.
We expect that this final rule will result in an estimated annual
cost savings to industry of $40,809 due to a reduction in the hourly
burden of reporting and recordkeeping for both marine casualties and
SMIs, and an estimated annual cost savings of $4,751 for chemical
testing for marine casualties designated as SMIs. This final rule will
also result in cost savings to the Coast Guard by reducing the hourly
burden costs to investigate marine casualties, as well as the costs
associated with processing marine casualty forms. As a result, the
maritime industry and Coast Guard resources will be able to focus their
efforts on higher consequence incidents.
Finally, this final rule makes several nonsubstantive changes
throughout 46 CFR part 4 to account for Office of Management and Budget
(OMB)-approved updates to forms that the maritime industry uses to
report on marine casualties and SMIs. The Coast Guard provides further
detail of these non-substantive changes below in Part V.G, Discussion
of Comments and Changes.
V. Discussion of Comments and Changes
We received 45 public comments. The comments were from individuals
representing 25 private companies and 6 trade associations, and 1
anonymous source. Two of these private companies had two individuals
submit comments on their behalf, and 11 individuals representing one of
the other private companies submitted separate letters. Additionally,
one of the trade associations submitted two identical letters from the
same individual. We reviewed and took into consideration all 45
comments. The majority of commenters agreed with the NPRM that the
current dollar thresholds for reporting marine casualties and SMIs are
outdated and should be increased. Some commenters agreed with each of
the increased dollar threshold amounts proposed in the NPRM. Other
commenters recommended increasing the proposed dollar threshold amount
for reporting a marine casualty; of this group, most also recommended
increasing the proposed dollar threshold amount for reporting an SMI.
Still others recommended including a means to periodically adjust or
revise the dollar threshold amounts to make sure they continue to stay
current. One commenter recommended that the Coast Guard include within
the docket ``examples of the casualties which will no longer be
reported'' as a result of the increase in the dollar threshold amount
for property damage. Another commenter suggested that the proposal to
increase the dollar threshold amounts for reporting casualties and SMIs
be extended to the Outer Continental Shelf (OCS) regulations in 33 CFR
part 146, so that the reporting threshold amounts in both CFR titles
will be ``standardized.'' Finally, one commenter suggested that our
method of calculating the inflationary adjustment using the Consumer
Price Index for All Urban Consumers (CPI-U) yielded outdated figures,
and that there may be other reference indices that would produce more
accurate results.
We have grouped these comments into the following categories:
Dollar Threshold Amounts for Reporting Marine Casualties;
Dollar Threshold Amounts for Reporting SMIs;
Periodic Adjustments of the Threshold Amounts for
Reporting Marine Casualties and SMIs;
Loss of Marine Casualty Data;
Amending the Dollar Amount Thresholds for Outer
Continental Shelf Casualty Reporting in Title 33 of the CFR; and
Use of the CPI-U to Determine Reporting Threshold Amounts.
A detailed discussion of these comments and our responses follows.
A. Dollar Threshold Amounts for Reporting Marine Casualties
Four commenters agreed with the increased dollar threshold amounts
exactly as proposed in the NPRM. Of the four commenters, three had
additional comments unrelated to the specific dollar threshold amounts.
Those comments are addressed in the following discussions and
responses.
One commenter recommended increasing the proposed dollar threshold
amount of $72,000 for a marine casualty to a ``more memorable figure of
$75,000 or $100,000.''
Coast Guard Response: We agree with the commenters that $75,000 and
$100,000 represent figures that are
[[Page 11891]]
easier to remember than $72,000. However, we do not agree with changing
the property damage threshold to $100,000. As we explained in the NPRM,
the Coast Guard, in arriving at the proposed threshold amount of
$72,000, calculated the inflation adjustment factor using the CPI-U.
Changing the threshold amount to $100,000 would not be consistent with
our intent to update the reporting threshold based on the rate of
inflation experienced since implementation of the original rule.
Changing the dollar threshold to $75,000, however, is consistent with
that intent and, as the commenter noted, is an easier dollar figure to
remember. Additionally, based on our casualty data, we believe that the
difference in reporting data between $72,000 and $75,000 will be
negligible and, for the reasons explained in the Regulatory Analysis
(RA) section of this final rule (Section VI), the affected population
of this rule remains unchanged from the NPRM. In this final rule,
therefore, we have changed the marine casualty reporting threshold for
property damage to $75,000.
B. Dollar Threshold Amounts for Reporting SMIs
Thirty-six commenters recommended increasing the proposed dollar
threshold amount for reporting an SMI to $400,000, citing suggestions
from the Passenger Vessel Association (PVA). In support of its
recommendation for the Coast Guard to change the dollar amount of an
SMI from the proposed $200,000 to $400,000, the PVA explains that the
1:4 ratio between the existing dollar amount threshold for marine
casualty reporting ($25,000) and the existing dollar amount threshold
for a ``serious marine incident'' ($100,000) should be maintained under
the final rule.
Coast Guard Response: We do not agree with the 1:4 ratio suggested
by the PVA and their members. While the original thresholds did have a
1:4 ratio, this relationship was not by design, nor was it our
intention to tie the threshold numbers together in this manner or to
suggest that a 1:4 ratio is optimal and should be maintained. Changing
the property damage threshold amount to $400,000 for an SMI, as
recommended by the commenters and the PVA, would not be consistent with
our intent to update the threshold amount based on the rate of
inflation experienced since implementation of the original rule.
C. Periodic Adjustments of the Threshold Amounts for Reporting Marine
Casualties and SMIs
Thirty-seven commenters recommended including in the final rule a
provision for periodically adjusting both threshold amounts to account
for inflation, so that the Coast Guard will not be required to initiate
future rulemakings to update the threshold amounts. Of these, one
commenter pointed out that the Coast Guard was ``using the same CPI-U
numbers to calculate and revise the damage thresholds that they
currently employ for their civil penalty adjustments.'' Therefore, the
commenter suggested, we should include in the final rule a provision to
``revise [the dollar threshold amounts for both a marine casualty and
an SMI] using the same rate increase schedule as those for civil
penalty updates.''
Coast Guard Response: We do not plan to establish automatic,
periodic inflation adjustments to these property damage threshold
amounts because the cost increase due to annual inflation may be too
insignificant to warrant an adjustment every year. Frequent adjustments
could also lead to confusion in what is to be reported. Additionally,
the maritime industry may also be burdened with updating training and
operational materials. We recognize, however, that these dollar amount
thresholds should be reviewed more frequently than in the past to
account for annual inflation. To that end, we will incorporate a 5-year
evaluation period in our internal Mission Management System audits to
ensure that the Coast Guard reviews the appropriateness of these dollar
threshold amounts on a regular, recurring basis.
D. Loss of Marine Casualty Data
One anonymous commenter did not express support for or opposition
to the NPRM, but was concerned that an increase in the dollar threshold
amounts would mean a loss of data for those casualties whose property
damage amounts fall below the proposed thresholds. For those
casualties, the commenter believed the Coast Guard would not have the
necessary information to identify problems that may need attention. The
commenter recommended that the Coast Guard ``provide supplemental
information to the docket which provides examples of the casualties
which will no longer be reported,'' and stated that this information
should be available to the public ``because it was the data the Coast
Guard used to determine that the current thresholds are not adequate
and would clearly convey what type of data would no longer need to be
reported.''
Coast Guard Response: We understand and appreciate the commenter's
concerns. However, we are changing the reporting thresholds only as
they relate to property damage. We feel that the various types of
reportable casualties detailed in 46 CFR 4.05-1 ensure we are made
aware of those incidents that could indicate more serious problems and
that may be averted in the future with timely intervention. These
include groundings, bridge allisions, loss of propulsion or steering,
certain equipment failures, incidents resulting in significant harm to
the environment, fire or flooding that adversely affects the vessel's
seaworthiness or fitness for service, injuries beyond first aid, and
loss of life--regardless of property damage cost. Nevertheless, we
understand that, under this final rule, there will be casualties that
involve property damage alone that will no longer be reported to the
Coast Guard. An example of such a casualty would be if a vessel allides
with a pier, and the resulting initial estimated property damage to the
vessel and pier structure is any amount between $25,000.01 and $75,000.
Assuming no pollution, deaths, injuries, or other reportable criteria
is met, this casualty would no longer be a reportable marine casualty
under this final rule. In reviewing historical data from the Coast
Guard's Marine Information for Safety and Law Enforcement (MISLE)
database, we are confident that the casualties reported that involve
only property damage under $75,000 are relatively minor in nature when
compared to all other reportable marine casualties. A specific example
that epitomizes this occurred aboard a moored foreign containership. In
this reportable marine casualty, a container being loaded by a
longshoreman using a shore-side crane struck the forward mast of the
vessel, resulting in over $66,000 in damage. Under this final rule, a
relatively minor incident like this will no longer be reported to the
Coast Guard.
E. Amending the Dollar Amount Thresholds for Outer Continental Shelf
Casualty Reporting in Title 33 of the CFR
One commenter, speaking on behalf of the International Association
of Drilling Contractors, recommended that the increased dollar
threshold amount for reporting a marine casualty, as proposed in the
NPRM, also be applied to OCS facilities under 33 CFR part 146. If the
Coast Guard makes the proposed changes only in 46 CFR part 4, and not
[[Page 11892]]
also in 33 CFR part 146, the commenter stated that the Coast Guard
would ``appear to be penalizing'' OCS facilities, which would continue
to be required to report under the original dollar threshold amount of
$25,000. The commenter referred to a ``second related rulemaking (USCG-
2013-1057) in progress that proposes to broaden the regulatory
requirements for reporting marine casualties on the U.S. OCS,'' and
suggested that the Coast Guard review the marine casualty dollar
threshold amounts in both 33 and 46 CFR ``with a view towards
standardization.''
Coast Guard Response: The commenter is correct that, because this
final rule is limited to vessels (see 46 CFR 4.03-1 and 4.05-1), it
does not affect the reporting threshold for OCS facilities. Changing
the $25,000 casualty damage threshold amount applicable to OCS
facilities is not within the scope of the rule we proposed, and we
think it is important to finalize the changes for vessels rather than
delay them in order to propose changes for OCS facilities. However, we
acknowledge the validity of the commenter's concern, and we will
consider amending the threshold reporting amount applicable to OCS
facilities in a future rulemaking.
F. Use of the CPI-U To Determine Reporting Threshold Amounts
One commenter who was generally supportive of the NPRM stated that
the method we used to calculate inflationary adjustment by comparing
the average CPI-U for the base years with the average CPI-U for 2015
yielded outdated information. The commenter pointed out that the U.S.
Bureau of Labor Statistics (BLS) inflation calculator, available online
at the BLS website, allows users to compare base year values to values
for 2017. Therefore, the commenter contends, the threshold amount for
reporting a marine casualty as proposed in the NPRM is ``already
outdated by two years.'' The commenter recommended raising the
threshold amounts for a marine casualty and an SMI to $100,000 and
$400,000, respectively.
Coast Guard Response: As stated previously, we agree that since the
NPRM was published, more recent CPI-U data is available. However, we
disagree with using the CPI-U BLS calculator to update to 2017. When
using the BLS calculator to update to 2017, the calculator updates to
the last available month of 2017 data. The CPI-U could have an unusual
increase or decrease in 1 month that is not representative of the
overall trend in the CPI-U over the full year. We take an average of
the 12 months of CPI-U data for the latest full year of data to better
represent the overall trend in CPI-U. We disagree with using 2017 data
because it would provide an incomplete year of data. The last full year
of CPI-U data available at the time of analysis was 2016. We have
updated this final rule in a way that encompasses the 2016 CPI-U data.
Thirty-six commenters, citing suggestions from the PVA, recommended
increasing the threshold for reporting marine casualties to $100,000,
stating that the proposed figure of $72,000 ``is already outdated
because the (Coast Guard's) calculation used 2015 as the year inputted
into the CPI-U BLS calculator.'' The PVA and many of these commenters
also expressed the belief that the CPI-U may not be the right index to
use and that the $100,000 threshold reflects real, but non-CPI cost,
``inflation'' because of overtime and seasonality of repairs.
Coast Guard Response: While we agree that more recent CPI-U data is
available since the publication of the NPRM, we decline to use 2017
data when computing the inflation adjustment factor using the BLS CPI-U
calculator because doing so would provide an incomplete year of data.
The last full year of CPI-U data is 2016, and using 2016 data instead
of 2015 data does not result in an inflation-adjusted amount larger
than the $75,000 figure already discussed. Specifically, if we
calculate the inflation adjustment by comparing the average CPI-U for
the base year 1980 (82.408) with the average CPI-U for 2016 (240.007),
we find a resultant inflation adjustment factor of 1.912.\4\ This
inflation adjustment factor represents how much inflation has occurred
since 1980. We multiply this inflation adjustment factor of 1.912 by
the current threshold of $25,000 to calculate the raw inflation
increment of $47,800. We then add this raw inflation to the original
penalty of $25,000, which results in a threshold of $72,800. When
rounding to the nearest thousand, this results in a revised threshold
of $73,000. Accordingly, for the reasons mentioned above and in
response to public comment, we are rounding to the nearest $5,000 to
attain a more memorable dollar amount of $75,000.
---------------------------------------------------------------------------
\4\ CPI Detailed Report, Data for December 2016, Table 24.
https://www.bls.gov/cpi/cpid1512.pdf.
---------------------------------------------------------------------------
The PVA states in its comment that it was not able to identify a
single index that best fits the maritime industry. We agree that there
is not a source that best fits the maritime industry. Because of this,
we use the CPI-U to adjust the monetary property thresholds. The CPI is
the most widely used and accepted index produced by the BLS to measure
the average change over time in prices paid by urban consumers for a
market basket of goods and services. Among other uses, the CPI serves
as an economic indicator of the effectiveness of government economic
policy, as a means of adjusting income payments, such as Social
Security and military benefits, and automatic wage increases in the
private sector, and as a means of adjusting Federal income tax
brackets.\5\ The specific CPI the Coast Guard uses is the unadjusted
All Items CPI-U. The CPI-U is the ``broadest and most comprehensive
CPI'' and, using unadjusted data, is more appropriate for this purpose
because seasonally adjusted CPI data is subject to revision for up to 5
years after their original release, making such data difficult to use
for adjustment purposes.\6\ The CPI-U represents about 89 percent of
the total U.S. population and is based on the expenditures of all
families in urban areas,\7\ which includes almost all residents of
urban or metropolitan areas, such as professionals, the self-employed,
the poor, the unemployed, and retired persons, as well as urban wage
earners and clerical workers.
---------------------------------------------------------------------------
\5\ BLS, Chapter 17: The Consumer Price Index, page 5, https://www.bls.gov/opub/hom/pdf/homch17.pdf.
\6\ BLS, Consumer Price Index Frequently Asked Questions,
https://www.bls.gov/cpi/questions-and-answers.htm#Question_13.
\7\ BLS, How To Use the Consumer Price Index for Escalation,
https://www.bls.gov/cpi/factsheets/escalation.htm.
---------------------------------------------------------------------------
G. Nonsubstantive Changes To Reflect Updated CG-2692, Report of Marine
Casualty, Commercial Diving Casualty, or OCS-Related Casualty
Finally, after publication of the NPRM, we realized that we failed
to include within the NPRM's proposed changes updates to the CG-2692
forms that OMB approved on September 29, 2016. OMB's approval was
preceded by two Federal Register notices in which the Coast Guard
sought public comment to these changes.\8\ The changes to Form CG-2692
involved revising its title and moving certain sections to two new
addendum forms. In this final rule, therefore, we are making
nonsubstantive changes throughout 46 CFR part 4 to reflect the recently
approved updates to the CG-2692 forms.\9\ Because the changes to the
CG-2692 forms are non-substantive, and a separate opportunity to
comment on the forms was provided through the OMB approval process that
is now complete, the Coast Guard finds
[[Page 11893]]
that good cause exists under 5 U.S.C. 553(b)(B) to bypass prior notice
and comment on the nonsubstantive changes to 46 CFR part 4 in this
final rule.
---------------------------------------------------------------------------
\8\ 80 FR 64430 and 81 FR 5774.
\9\ This final rule makes nonsubstantive changes to sections
4.05-10, 4.05-12, 4.06-3, 4.06-5, 4.06-30, and 4.06-60.
---------------------------------------------------------------------------
VI. Regulatory Analyses
We developed this final rule after considering numerous statutes
and Executive orders related to rulemaking. Below we summarize our
analyses based on these statutes or Executive orders.
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, OMB has not reviewed it. OMB considers this
rule to be an Executive Order 13771 deregulatory action. See OMB's
Memorandum ``Guidance Implementing Executive Order 13771, Titled
`Reducing Regulation and Controlling Regulatory Costs' '' (April 5,
2017). An RA follows.
In the NPRM, we proposed to revise the dollar threshold amount for
reporting a marine casualty from $25,000 to $72,000. After considering
public comments, we decided to increase the dollar threshold amount to
$75,000. This RA incorporates the new threshold amount. We reviewed the
incident investigation data from the Coast Guard's MISLE database used
to estimate the affected population, and found from 2012 through 2014,
there were a total of four marine casualty reports where the only
outcome was property damage of $72,000.01 through $75,000. After
accounting for rounding, these four additional marine casualty reports
over the three year period were not substantial enough to change the
approximately 5.3 percent of the 5,967 (or 316) fewer marine casualty
reports we expect will be required per year after implementation of
this final rule. Therefore, the affected population of this final rule
remains unchanged from that of the NPRM.
We also updated the wage rates using BLS 2016 data. Table 1
summarizes the changes from the NPRM to this final rule, and the
resultant impact on the RA.
Table 1--Summary of Changes From NPRM to Final Rule
----------------------------------------------------------------------------------------------------------------
Element of the analysis NPRM Final rule Resulting impact on RA
----------------------------------------------------------------------------------------------------------------
Replace reportable marine casualty Replaced $25,000 with Replaced $25,000 with No impact.
threshold. $72,000. $75,000.
Water transportation worker wage rate $47.60, using May 2015 $50.84, using May 2016 Increased industry
and 2016 1st quarter and 2016 4th quarter costs and resulting
BLS data. BLS data. industry benefits.
----------------------------------------------------------------------------------------------------------------
This RA provides an evaluation of the economic impacts associated
with this final rule. Under this final rule, the Coast Guard is
updating the reportable marine casualty dollar threshold in Sec. 4.05-
1(a)(7) of 46 CFR from $25,000 to $75,000, and the reportable SMI
dollar threshold in Sec. 4.03-2(a)(3) of 46 CFR from $100,000 to
$200,000, to account for inflation, as discussed in Section IV of this
final rule. Table 2 provides a summary of the affected population,
costs, and benefits after implementation of this final rule.
Table 2--Summary of the Impacts of the Final Rule
------------------------------------------------------------------------
Category Summary
------------------------------------------------------------------------
Applicability..................... Replace the reportable marine
casualty dollar threshold of
$25,000 with $75,000.
Replace the SMI dollar threshold of
$100,000 with $200,000.
Affected Population............... Owners, agents, masters, operators,
or persons in charge involved in a
marine casualty and crewmembers who
are required to undergo chemical
testing.
Annual average of 316 vessel owners,
operators, or their representatives
reporting a marine casualty, 21
marine employers reporting an SMI
and submitting chemical testing
results to the Coast Guard, and an
average of 32 vessel crewmembers
will no longer be required to
complete chemical testing.
Costs............................. No quantitative costs.
Benefits (Cost Savings)........... $45,560 annualized and $319,994 10-
year present value monetized
industry benefits (cost savings)
(7% discount rate).
$637,688 annualized and $4,478,854
10-year present value monetized
government benefits (cost savings)
(7% discount rate).
Total of industry and government
benefits: $683,248 annualized and
$4,798,848 10-year present value
monetized combined benefits (cost
savings) (7% discount rate).
------------------------------------------------------------------------
Affected Population
This final rule affects the owners, agents, masters, operators, or
persons in charge of a commercial vessel who, pursuant to 46 CFR 4.05-
1, are required to notify the Coast Guard whenever a vessel is involved
in a marine casualty and whenever crewmembers, pursuant to 46 CFR 4.06-
3, are required to complete chemical testing following an SMI.
Specifically, the regulations in this final rule affect those
individuals who would have completed the necessary forms (CG-2692
series) to report a marine casualty where the only outcome
[[Page 11894]]
was property damage of $25,000.01 through $75,000, or an SMI with
property damage of $100,000.01 through $200,000 (CG-2692 series,
supplemented with an appended SMI written report (CG-2692B)).\10\
---------------------------------------------------------------------------
\10\ ``Report of Required Chemical Drug and Alcohol Testing
Following a Serious Marine Incident.'' See, 46 CFR 4.05-10.
---------------------------------------------------------------------------
We used incident investigation data from the Coast Guard's MISLE
database from 2012 through 2014 \11\ to estimate the average number of
vessel crewmembers affected by this final rule. From 2012 through 2014,
we found there was an average of 5,967 reports of a marine casualty per
year, with one individual per vessel, who we assume to be a vessel
crewmember, completing each report. An average of 271, or 4.5 percent
of the annual 5,967 marine casualty reports, involved an SMI.
---------------------------------------------------------------------------
\11\ This 3-year time period was used to be consistent with the
existing Collection of Information, entitled ``Report of Marine
Casualty & Chemical Testing of Commercial Vessel Personnel,'' which
has OMB Control Number 1625-0001. Furthermore, as it often takes
years to close the cases, 2014 is the most recent complete year of
closed cases.
---------------------------------------------------------------------------
Of the 5,967 marine casualty reports, 5.3 percent were for a
reportable marine casualty where the only outcome was property damage
of $25,000.01 through $75,000. Therefore, we expect that an average of
316 fewer reports of marine casualties will be required per year (5,967
reports x 5.3 percent, rounded). Vessel owners and operators benefit
from a reduction in the time burden associated with a crewmember no
longer having to prepare and submit the required marine casualty
reporting paperwork.
Of the 271 casualty reports that involved an SMI, 7.9 percent were
cases in which the sole outcome of the SMI was property damage of
$100,000.01 through $200,000. Based on that annual average, the
revisions in this final rule will result in a reduction of 21 SMI
written reports (CG-2692B) per year due to the change to the monetary
threshold amount for an SMI involving property damage (271 reports x
7.9 percent, rounded). Because property damage of $100,000.01 through
$200,000 exceeds the threshold for a reportable marine casualty, the
forms for a marine casualty report (CG-2692 series) will still need to
be completed under this final rule. However, marine employers will no
longer be required to complete the additional paperwork required for an
SMI written report (CG-2692B). Consequently, marine employers benefit
from a reduction in the time burden associated with an SMI written
report (CG-2692B), as well as cost savings associated with chemical
testing.
Benefit or Cost Savings to Industry
The benefit or cost savings to industry is the difference between
the current baseline cost to industry and the cost to industry after
implementation of this final rule.
Current Reporting Cost to Industry for CG-2692 and CG-2692B
To estimate the benefit to industry, we first estimate the current
cost to industry. The cost to industry includes costs for reporting and
recordkeeping for a reportable marine casualty and the costs for
chemical testing for marine casualties designated as SMIs. The
reporting and recordkeeping costs for marine casualties include the
time to complete the forms (CG-2692 series) for a marine casualty, the
time for 10 percent of the forms to be internally reviewed before
submission, and the time to complete the additional SMI written report
(CG-2692B) pursuant to 46 CFR 4.06-60(a) when a marine casualty is
designated as an SMI. The time estimates and wage rates for reporting
and recordkeeping are taken from the existing Collection of Information
(COI), entitled ``Marine Casualty Information & Periodic Chemical Drug
and Alcohol Testing of Commercial Vessel Personnel,'' which has OMB
Control Number 1625-0001.\12\ We use the same time estimates and wage
rates in this analysis to maintain consistency and to capture the
changes resulting from this final rule.
---------------------------------------------------------------------------
\12\ Existing Collection of Information, ``Marine Casualty
Information & Periodic Chemical Drug and Alcohol Testing of
Commercial Vessel Personnel'', OMB Control Number 1625-0001, Docket
Number USCG-2015-0910, can be found at https://www.federalregister.gov/documents/2015/10/23/2015-27019/information-collection-request-to-office-of-management-and-budget-omb-control-number-1625-0001.
---------------------------------------------------------------------------
An average of 5,967 marine casualty reports are submitted annually
by vessel owners or operators. For each reportable marine casualty, we
estimated in the existing COI that it takes 1 hour for a vessel
crewmember to complete the necessary forms (CG-2692 series). We
estimated in the existing COI that the position of vessel crewmember is
analogous to a government employee at the grade level of a GS-03. The
fully loaded wage rate for a GS-03 is $26 per hour, according to
Commandant Instruction 7310.1P, ``Reimbursable Standard Rates.'' \13\
We use this version to maintain consistency with the existing COI 1625-
0001. The annual baseline cost to complete the current 5,967 CG-2692
series forms is $155,142 (5,967 marine casualty reports x $26).
---------------------------------------------------------------------------
\13\ Out of Government Rate for GS-03. Hourly Rates for
Personnel ($), Enclosure (2) to Commandant Instruction 7310.1P.
---------------------------------------------------------------------------
We estimate that it takes, on average, 1 hour to complete the CG-
2692 series of forms. However, we received public comments in 2011 on
the existing COI number 1625-0001 that stated that completing Form CG-
2692 takes more than 1 hour, and one commenter stated that it can take
up to 8 to 12 hours to complete the form.\14\ The reason for this
difference is that some entities choose to have the forms reviewed by
shoreside personnel, such as an attorney, prior to submission to the
Coast Guard. We adjusted our burden estimate to account for this
additional layer of review. To account for this additional time, 10
percent of the forms submitted have 10 hours of additional burden. The
additional time reflects internal review by individuals employed by the
vessel owner or operator in addition to the vessel crewmember who
completes the form. The additional reviewers may be shoreside
representatives, port engineers, and attorneys, among others. We
estimate that the wage rate for this added review is done by personnel
analogous to a government employee at the grade level of a GS-14. The
fully loaded wage rate for a GS-14 is $101 per hour, per Commandant
Instruction 7310.1P. The total annual cost of this additional time is
$602,970 (597 marine casualty reports x 10 additional burden hours x
$101).
---------------------------------------------------------------------------
\14\ Docket ID: USCG-2011-0710. Comments can be found at https://www.regulations.gov/docket?D=USCG-2011-0710.
---------------------------------------------------------------------------
When a marine casualty is designated as an SMI, the marine employer
must also complete a ``Report of Mandatory Chemical Testing Following A
Serious Marine Incident Involving Vessels in Commercial Service'' (Form
CG-2692B). (See 46 CFR 4.06-60.) We estimate that it takes 0.5 hours
for a marine employer analogous to a government employee at the grade
level of a GS-03 to complete this form. The annual cost to complete CG-
2692B is $3,523 (271 SMI reports x 0.5 hours x $26 per hour wage rate).
Table 3 shows a summary of the current industry costs for reporting
and recordkeeping.
[[Page 11895]]
Table 3--Current Annual Industry Costs for Reporting and Recordkeeping
----------------------------------------------------------------------------------------------------------------
Crewmembers/ Burden hours Annual hour Annual cost
Requirement responses per response burden Wage rate burden
----------------------------------------------------------------------------------------------------------------
Written report of marine 5,967 1.0 5,967 $26 $155,142
casualty.......................
Additional Burden for 10% of 597 10.0 5,970 101 602,970
Respondents....................
SMI written report.............. 271 0.5 136 26 3,523
-------------------------------------------------------------------------------
Totals...................... .............. .............. 12,073 .............. 761,635
----------------------------------------------------------------------------------------------------------------
As mentioned earlier in this final rule, when a marine casualty is
designated as an SMI, the crewmembers involved are required to take a
chemical test pursuant to 46 CFR 4.06-3. The marine employer incurs
costs for the actual costs of the chemical test and the time it takes
for a crewmember to take the chemical test. The actual cost of the
chemical test includes the costs of the chemical test collection kits,
collector fees, Coast Guard alcohol-testing swabs, and overnight
mailing. These costs can vary, but on average, the actual chemical test
costs approximately $100 per test.\15\ The number of vessel crewmembers
required to take a chemical test can vary depending on the
circumstances of the SMI. We analyzed the casualty reports that
involved an SMI from MISLE data and found an average of 1.5 crewmembers
per SMI were required to take a chemical test. We used an estimate of
1.5 crewmembers to estimate the costs of chemical testing to account
for the variation in crewmembers involved in SMIs. With an average of
271 SMIs per year, the current annual cost for the actual chemical
tests is $40,650 (271 SMIs x average of 1.5 crewmembers x $100 per
test).
---------------------------------------------------------------------------
\15\ Most marine employers use a consortium that simplifies and
reduces the costs per test and also assists in managing a company's
drug-testing program. There are variables associated with the cost
of testing, as costs can vary depending on the number of personnel
included in a plan and the type of testing plan adopted by a
particular company. Based on discussions with industry and Coast
Guard medical testing, contract data that are not publically
available, we estimated testing costs of $79 and $114. We are,
therefore, using an average cost of $100 for this analysis [($79 +
$114)/2, rounded].
---------------------------------------------------------------------------
In addition to the cost of the chemical tests, there is a cost
associated with the time it takes a vessel crewmember to complete the
chemical test. We estimate that it takes 1 hour for a crewmember to
complete the chemical test.\16\ We obtained the wage rate of the
crewmember from BLS, using Occupational Series 53-5000, Water
Transportation Workers (May 2016). The BLS reports that the mean hourly
wage rate for a water transportation worker is $33.45.\17\ To account
for employee benefits, we use a load factor of 1.52, which we
calculated from 2016 4th quarter BLS data.\18\ The loaded wage for a
crewmember is estimated at $50.84 ($33.45 wage rate x 1.52 load
factor). The cost of the time for a crewmember to take the chemical
test is $20,666 (271 SMIs x average of 1.5 crewmembers x 1 hour burden
x $50.84 wage rate). Therefore, the current annual cost to industry for
chemical testing is $61,316 (see table 4). Adding the costs for
chemical testing of $61,316 to the cost for reporting and recordkeeping
of $761,635 (see table 3), brings the current total annual cost to
industry to $822,951.
---------------------------------------------------------------------------
\16\ Hourly estimate is from Coast Guard subject matter experts,
and takes into account that these are not planned tests, but instead
are emergent tests--required as a result of accidents--that must be
taken no later than 32 hours after the incident.
\17\ Mean wage, https://www.bls.gov/oes/2016/may/naics3_483000.htm. Because the crewmembers taking the chemical
testing could be anyone from a junior deck officer up to a Master/
Captain/Chief Engineer, we use the broader Water Transportation
Worker (53-5000).
\18\ Employer Costs for Employee Compensation provides
information on the employer compensation and can be found in Table 9
at https://www.bls.gov/news.release/archives/ecec_03172017.pdf.
https://data.bls.gov/data/. The loaded wage factor is equal to the
total compensation of $28.15 divided by the wages and salary of
$18.53. Values for the total compensation, wages, and salary are for
all private industry workers in the transportation and material
moving occupations, 2016 4th quarter.
Table 4--Current Annual Industry Costs for Chemical Testing
--------------------------------------------------------------------------------------------------------------------------------------------------------
Average Total cost of
SMIs per year crewmembers Cost of testing Hours to take Wage rate testing
tested per SMI procedures test procedures
--------------------------------------------------------------------------------------------------------------------------------------------------------
271................................................................ 1.5 $100 1 $50.84 $61,316
--------------------------------------------------------------------------------------------------------------------------------------------------------
Total Reporting Costs to Industry After Implementation of the Final
Rule
Increasing the dollar threshold amount for a reportable marine
casualty involving property damage, as well as the dollar threshold
amount for property damage within the definition of a ``serious marine
incident,'' reduces the number of marine casualty responses by 5.3
percent, and the number of SMIs by 7.9 percent, annually. The burden
hours per response remain the same, but we estimate that the total
number of responses decreases to 5,651 for marine casualties and 250
for SMIs, resulting in 316 fewer reported marine casualties and 21
fewer SMIs. The following sections replicate the calculation of marine
casualty reporting and chemical testing, but reflect the reduced number
of reports and testing under the revised thresholds.
For each reportable marine casualty, we estimate that it takes 1
hour for a vessel crewmember to complete all parts of the necessary
forms at a wage rate of $26. We estimate that the cost to complete the
reduced number of marine casualty forms is $146,926 (5,651 marine
casualty reports x $26).
In addition to the time needed to complete the marine casualty
forms, some of the forms require additional processing time. The
additional processing time reflects internal review by individuals
employed by the vessel owner or operator, in addition to the time
needed by the vessel crewmember who completes the form. The additional
reviewers may be shoreside representatives, port engineers, or
attorneys, among others. To account for
[[Page 11896]]
this time, 10 percent \19\ of the forms submitted (565 forms) have 10
hours of additional burden, and the wage rate for this added review
will be done by personnel analogous to a government employee at the
grade level of a GS-14. We estimate that the total cost of this
additional time after the implementation of this final rule is $570,650
(565 marine casualty reports x 10 additional burden hours x $101).
---------------------------------------------------------------------------
\19\ Docket ID: USCG-2011-0710, https://www.regulations.gov/docket?D=USCG-2011-0710.
---------------------------------------------------------------------------
As mentioned earlier in this final rule, when a marine casualty is
designated as an SMI, the marine employer must complete an SMI written
report (CG-2692B). We estimate that it takes 0.5 hours for a marine
employer analogous to a government employee at a grade level of a GS-03
to complete this form.\20\ We estimate that the cost to complete the
additional forms for an SMI after implementation of this final rule is
$3,250 (250 SMI reports x 0.5 hours x $26 per hour wage rate).
---------------------------------------------------------------------------
\20\ The wage rate for a marine employer to complete Form CG-
2692B and to report chemical test results to the OCMI is taken from
existing COI number 1625-0001.
---------------------------------------------------------------------------
Table 5 shows a summary of the industry costs after implementation
of this final rule.
Table 5--Annual Industry Costs for Reporting and Recordkeeping With Revised Reporting Thresholds
----------------------------------------------------------------------------------------------------------------
Crewmembers/ Burden hours Annual hour Annual cost
Requirement responses per response burden Wage rate burden
----------------------------------------------------------------------------------------------------------------
Written report of marine 5,651 1.0 5,651 $26 $146,926
casualty.......................
Additional Burden for 10% of 565 10.0 5,650 101 570,650
Respondents....................
SMI written report.............. 250 0.5 125 26 3,250
-------------------------------------------------------------------------------
Totals...................... .............. .............. 11,426 .............. 720,826
----------------------------------------------------------------------------------------------------------------
The marine employer incurs the actual costs of the chemical test
and the wage burden it takes for a crewmember to complete the chemical
test. On average, each chemical test costs approximately $100. We use
an estimate of 1.5 crewmembers to estimate the costs of chemical
testing to account for the variation in crewmembers involved in SMIs.
With an average of 250 SMIs per year, the annual cost after
implementation of this final rule for the actual chemical tests is
$37,500 (250 SMIs x average of 1.5 crewmembers x $100 per test).
In addition to the cost of the chemical tests, there is a cost
associated with the time it takes a vessel crewmember to complete the
chemical test. We estimate that it takes 1 hour for a crewmember to
complete the chemical test at a loaded wage rate of $50.84 per hour. We
estimate that the cost of the time for a crewmember to take the
chemical test under this final rule is $19,065 (250 SMIs x average of
1.5 crewmembers x 1 hour burden x $50.84 wage rate). Therefore, the
annual cost to industry for chemical testing after implementation of
this final rule is $56,565 (see table 6). Adding the costs for chemical
testing of $56,565 to the cost for reporting and recordkeeping of
$720,826 (see table 5) brings the estimated total annual cost to
industry to $777,391.
Table 6--Annual Industry Costs for Chemical Testing After Implementation of the Final Rule
--------------------------------------------------------------------------------------------------------------------------------------------------------
Average Total cost of
SMIs per year crewmembers Cost of testing Hours to take Wage rate testing
tested per SMI procedures test procedures
--------------------------------------------------------------------------------------------------------------------------------------------------------
250................................................................ 1.5 $100 1 $50.84 $56,565
--------------------------------------------------------------------------------------------------------------------------------------------------------
The annual burden of reporting marine casualties and SMIs under the
current dollar amount thresholds is $822,951. The annual burden of
reporting under the new thresholds is $777,391. Therefore, we estimate
that the annual cost savings or benefit to industry after
implementation of this final rule is $45,560. Table 7 shows a summary
of the annual current industry cost burden, the annual industry cost
burden after implementation of the final rule, and the annual cost
savings resulting from implementation of this final rule.
Table 7--Total Annual Cost Savings to Industry by Requirement After Implementation of the Final Rule
----------------------------------------------------------------------------------------------------------------
Annual industry
Current annual Annual industry cost savings
Requirement industry cost cost burden after after
burden implementation of implementation of
final rule final rule
----------------------------------------------------------------------------------------------------------------
Written report of marine casualty...................... $155,142 $146,926 $8,216
Additional burden for 10% of respondents............... 602,970 570,650 32,320
SMI written report..................................... 3,523 3,250 273
Testing procedures..................................... 61,316 56,565 4,751
--------------------------------------------------------
Total.............................................. 822,951 777,391 45,560
----------------------------------------------------------------------------------------------------------------
[[Page 11897]]
The total 10-year undiscounted industry cost savings of this final
rule is $455,600. Table 8 shows the 10-year estimated discounted cost
savings to industry to be $319,994, with an annualized cost savings of
$45,560, using a 7-percent discount rate.
Table 8--Total Estimated Cost Savings or Industry Benefits of the Final Rule Over a 10-Year Period of Analysis
[Discounted costs at 7 and 3 percent]
----------------------------------------------------------------------------------------------------------------
Total Total, discounted
Year undiscounted -------------------------------
costs 7% 3%
----------------------------------------------------------------------------------------------------------------
1............................................................... $45,560 $42,579 $44,233
2............................................................... 45,560 39,794 42,945
3............................................................... 45,560 37,191 41,694
4............................................................... 45,560 34,758 40,479
5............................................................... 45,560 32,484 39,300
6............................................................... 45,560 30,359 38,156
7............................................................... 45,560 28,372 37,044
8............................................................... 45,560 26,516 35,965
9............................................................... 45,560 24,782 34,918
10.............................................................. 45,560 23,160 33,901
-----------------------------------------------
Total....................................................... 455,600 319,994 388,636
-----------------------------------------------
Annualized.............................................. .............. 45,560 45,560
----------------------------------------------------------------------------------------------------------------
Benefits or Cost Savings to Government
The benefit to the Federal Government is the difference between the
baseline current cost to the Coast Guard and the cost to the Coast
Guard after implementation of this final rule.
Current Costs to Government
We first estimated the current costs to the Coast Guard, which
include the cost to investigate a marine casualty and the cost of
processing marine casualty forms. Because an SMI is a type of marine
casualty, the estimate for the cost of the investigation and the
processing of the casualty forms includes those incidents that
constitute an SMI. Reportable marine casualties are investigated by the
Coast Guard. Some investigations may be more complex than others,
depending on the incident. The Coast Guard reviewed the CG-741 (Coast
Guard Office of Shore Forces) Sector Staffing Model to estimate the
average number of hours per investigation across all incident types.
The Sector Staffing Model assigns a total hourly effort for the type of
incident (e.g., allision, grounding, collision) that is matched against
MISLE data, which then provides the resource needs for each Coast Guard
Sector. We estimate that, across all types of incidents, these
investigations take an average of 25 hours for a Lieutenant (LT; O-3)
to complete. There is an average of 5,967 marine casualty cases per
year. The fully loaded wage rate for an O-3 is $78 per hour, per
Commandant Instruction 7310.1P. Table 9 shows the current annual cost
of investigations to be $11,635,650 (5,967 reportable marine casualties
x 25 burden hours x $78 wage rate).
The Coast Guard must process the forms submitted for each
reportable marine casualty, and currently processes an average of 5,967
marine casualty reports per year. To maintain consistency and capture
the changes due to this final rule, the time estimates and wage rates
for processing the forms are taken from the existing COI 1625-0001. For
each reportable marine casualty, we estimate that it takes 1 hour by a
Lieutenant Junior Grade (LTJG; O-2) to process the forms (CG-2692
series), including auditing at a local field investigation office and
the entry of pertinent information into Coast Guard's MISLE system. The
fully loaded wage rate for an O-2 is $68 per hour, per Commandant
Instruction 7310.1P. Table 9 shows the current annual cost for the
Coast Guard to process reportable marine casualties to be $405,756
(5,967 reportable marine casualties x 1 burden hour x $68 wage rate).
We estimate that the total current annual cost to the Federal
Government is $12,041,406.
Table 9--Current Annual Government Costs
----------------------------------------------------------------------------------------------------------------
Reportable
Cost category marine Burden hours Annual hours Wage rate Annual cost
casualties per response
----------------------------------------------------------------------------------------------------------------
Investigation................... 5,967 25 149,175 $78 $11,635,650
Processing marine casualty 5,967 1 5,967 68 405,756
reports........................
-------------------------------------------------------------------------------
Total....................... .............. .............. .............. .............. 12,041,406
----------------------------------------------------------------------------------------------------------------
Under this final rule, increasing the dollar amount threshold for
property damage reduces the number of reportable marine casualties by
5.3 percent, resulting in 316 fewer reportable marine casualties. The
burden hours per response for investigations and processing marine
casualty reports remains the same, but the average number of reportable
marine casualties decreases to 5,651 per year. We estimate that it
takes an average of 25 hours for an O-3 to complete and investigate and
1 hour for an O-2 to process the forms for each reportable marine
casualty. Table 10 shows the annual cost for the Coast Guard to
complete investigations under this final
[[Page 11898]]
rule to be $11,019,450 (5,651 reportable marine casualties x 25 hour
burden x $78). The annual cost to process reportable marine casualties
after implementation of this final rule is $384,268 (5,651 reportable
marine casualties x 1 hour burden x $68). We estimate that the total
annual cost to the Federal Government is $11,403,718 after
implementation of this final rule.
Table 10--Estimated Annual Government Costs After Implementation of the Final Rule
----------------------------------------------------------------------------------------------------------------
Reportable
Cost category marine Burden hours Annual hours Wage rate Annual cost
casualties per response
----------------------------------------------------------------------------------------------------------------
Investigation................... 5,651 25 141,275 $78 $11,019,450
Processing marine casualty 5,651 1 5,651 68 384,268
report.........................
-------------------------------------------------------------------------------
Total....................... .............. .............. .............. .............. 11,403,718
----------------------------------------------------------------------------------------------------------------
The current annual cost to the Coast Guard to process marine
casualty reports is $12,041,406. The annual cost to the Coast Guard
after implementation of this final rule is $11,403,718. Therefore, the
annual Federal Government benefit of reducing those reportable marine
casualties that involve property damage alone is $637,688. This
reduction, however, does not result in a need for fewer Coast Guard
investigators, as the existing investigators will be able to focus
efforts on higher consequence incidents. We estimate the total
undiscounted cost savings or benefit of this final rule to the Federal
Government to be $6,376,880 over the 10-year period of analysis. Table
11 shows the total estimated 10-year discounted cost savings to the
Federal Government to be $4,478,854, with an annualized cost savings of
$637,688, using a 7-percent discount rate.
Table 11--Total Estimated Cost Savings or Government Benefits of the Final Rule Over a 10-Year Period of
Analysis
[Discounted costs at 7 and 3 percent]
----------------------------------------------------------------------------------------------------------------
Total Total discounted costs
Year undiscounted -------------------------------
costs 7% 3%
----------------------------------------------------------------------------------------------------------------
1............................................................... $637,688 $595,970 $619,115
2............................................................... 637,688 556,981 601,082
3............................................................... 637,688 520,543 583,575
4............................................................... 637,688 486,489 566,578
5............................................................... 637,688 454,663 550,075
6............................................................... 637,688 424,918 534,054
7............................................................... 637,688 397,120 518,499
8............................................................... 637,688 371,140 503,397
9............................................................... 637,688 346,860 488,735
10.............................................................. 637,688 324,168 474,500
-----------------------------------------------
Total....................................................... 6,376,880 4,478,854 5,439,608
-----------------------------------------------
Annualized.............................................. .............. 637,688 637,688
----------------------------------------------------------------------------------------------------------------
Total Cost Savings or Benefits of the Final Rule
Table 12 presents the total estimated benefits or cost savings of
the final rule using 7- and 3-percent discount rates. We estimate the
total 10-year (industry and Federal Government) undiscounted cost
savings of this final rule to be $6,832,480. We estimate the total 10-
year discounted cost savings of this final rule to be $4,798,848, and
the annualized cost savings to be $683,248, using a 7-percent discount
rate. Using a perpetual period of analysis, we estimate the total
annualized cost savings of the final rule is $596,775 in 2016 dollars,
using a 7 percent discount rate.
Table 12--Total Estimated Cost Savings or Benefits of the Final Rule Over a 10-Year Period of Analysis
[Discounted benefits at 7 and 3 percent]
----------------------------------------------------------------------------------------------------------------
Total Total, discounted
Year undiscounted -------------------------------
costs 7% 3%
----------------------------------------------------------------------------------------------------------------
1............................................................... $683,248 $638,550 $663,348
2............................................................... 683,248 596,775 644,027
3............................................................... 683,248 557,734 625,269
4............................................................... 683,248 521,247 607,057
5............................................................... 683,248 487,146 589,376
6............................................................... 683,248 455,277 572,209
7............................................................... 683,248 425,493 555,543
8............................................................... 683,248 397,657 539,362
[[Page 11899]]
9............................................................... 683,248 371,642 523,653
10.............................................................. 683,248 347,329 508,401
-----------------------------------------------
Total....................................................... 6,832,480 4,798,848 5,828,244
-----------------------------------------------
Annualized.............................................. .............. 683,248 683,248
----------------------------------------------------------------------------------------------------------------
B. Small Entities
Under the Regulatory Flexibility Act, 5 U.S.C. 601-612, we have
considered whether this final rule has a significant economic impact on
a substantial number of small entities. The term ``small entities''
comprises small businesses, not-for-profit organizations that are
independently owned and operated and are not dominant in their fields,
and governmental jurisdictions with populations of less than 50,000.
This final rule reduces the burden on industry by increasing the
property damage dollar threshold amount within the definition of
``SMI'' and for reporting a marine casualty incident. There is no
effect on any crewmember, owner, or operator of a vessel that does not
have a reportable marine casualty or serious marine incident. There is
no effect on any crewmember, owner, or operator of a vessel that has a
marine casualty with property damage less than or equal to $25,000, or
an SMI with damage less than or equal to $100,000, as these individuals
currently do not have to report the casualty and will not have to do so
under this final rule. There is no effect on any crewmember, owner, or
operator of a vessel that has a marine casualty with property damage
greater than $75,000, or an SMI with property damage greater than
$200,000, as these individuals must currently report such casualties
and perform chemical testing, and will continue to be required to do so
under this final rule.
This final rule does not impose any direct costs on any specific
industry. The only affected individuals are owners or operators of
those vessels that would have been involved in a marine casualty where
the only outcome is property damage of $25,000.01 through $75,000, or
an SMI where the only outcome is property damage of $100,000.01 through
$200,000. These entities, which would have incurred costs to report
these casualties or conduct chemical testing, will be positively
affected by this final rule because of the increase in the monetized
threshold amounts.
As discussed in Section VI.A, Regulatory Planning and Review, of
this final rule, we expect that an average of approximately 316 fewer
reports of marine casualties will be required per year, with one
individual per vessel who we assume to be a vessel crewmember
completing each report. We assume the 316 marine casualty reports occur
on 316 separate vessels. It is possible a vessel could have multiple
incidents in one year, resulting in multiple marine casualty reports,
but for this analysis we assume the 316 fewer reports are ascribed to
316 separate vessels. We compared this affected population to the total
population that could have a marine casualty and be required to prepare
and submit marine casualty reporting paperwork. We used the MISLE
Vessel Population data to estimate the total population that will be
affected. We found that the current total population of vessels that
could have a marine casualty and be required to submit paperwork is
209,475.\21\ Therefore, the 316 fewer vessels preparing marine casualty
paperwork represents 0.15 percent of the total population.
---------------------------------------------------------------------------
\21\ Population data were pulled from MISLE on 9/28/2016. The
population is for commercial vessels that are active and in-service.
The population includes commercial fishing vessels, fish processing
vessels, freight barges, industrial vessels, mobile offshore
drilling units, offshore supply vessels, oil recovery vessels,
passenger (inspected and uninspected) vessels, passenger barges
(inspected and uninspected), public freights, public tankships/
barges, unclassified public vessels, research vessels, school ships,
tank barges, tank ships, and towing vessels.
---------------------------------------------------------------------------
The owners or operators of these 316 vessels benefit from a
reduction in time burden associated with a crewmember no longer having
to prepare and submit the required marine casualty reporting paperwork.
Table 7 in Section VI summarizes the annual cost savings to industry by
requirement. Table 13 shows these annual cost savings and the vessel
population we estimated will benefit from each reduction in paperwork
or testing requirement.
Table 13--Maximum Potential Cost Savings per Vessel per Incident
----------------------------------------------------------------------------------------------------------------
Maximum
Total annual Vessel potential cost
Requirement cost savings population savings per
vessel
----------------------------------------------------------------------------------------------------------------
Written report of marine casualty............................... $8,216 316 $26
Additional Burden for 10% of Respondents........................ 32,320 32 1,010
SMI written report.............................................. 273 21 13
Testing Procedures.............................................. 4,751 21 226
-----------------------------------------------
Totals...................................................... 45,560 .............. 1,275
----------------------------------------------------------------------------------------------------------------
[[Page 11900]]
The total cost savings per vessel for the population of 316 vessels
benefiting from this final rule will vary depending on the
requirements. For example, we estimate that 32 of the vessels (10
percent of population, rounded) will have savings due to a reduction in
marine casualty reports ($26), and an additional savings for the
additional burden of reviewing the paperwork ($1,010), in any given
year. Therefore, a one-time savings will be $1,036 for a vessel with
only these two requirements. The minimum savings is $26 for a vessel
that has only the requirement of preparing and submitting the marine
casualty report. If a vessel would have had to complete all the
requirements in table 13, the maximum cost savings is $1,275. This
maximum cost savings will be for a vessel with a marine casualty
designated as an SMI that completed additional paperwork and reported
the chemical test results to the Officer in Charge, Marine Inspection
(OCMI). Therefore, the owner or operator of the 316 vessels affected by
this final rule would have to have maximum annual revenues of $2,600 to
$127,500 for this final rule to have a positive impact greater than 1
percent.
Therefore, pursuant to section 605(b) of the Regulatory Flexibility
Act, 5 U.S.C. 605(b), the Coast Guard certifies that this final rule
will not have a significant economic impact on a substantial number of
small entities because the increase in the monetized property damage
threshold amounts reduces the reporting burden on crewmembers or vessel
owners or operators who complete the marine casualty reports or perform
the required chemical testing, as described above. This final rule
reduces the hourly burden associated with marine casualty reporting and
chemical testing and will not adversely affect small entities as
defined by the Small Business Administration in 13 CFR 121.201.
C. Assistance for Small Entities
Under section 213(a) of the Small Business Regulatory Enforcement
Fairness Act of 1996, Public Law 104-121, we offer to assist small
entities in understanding this rule so that they can 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 final rule calls for a collection of information under the
Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520). As defined in 5
CFR 1320.3(c), ``collection of information'' comprises reporting,
recordkeeping, monitoring, posting, labeling, and other similar
actions. The title and description of the information collection, a
description of those who must collect the information, and an estimate
of the total annual burden follow.
Under the provisions of the final rule, the Coast Guard will
collect information from ship personnel who are involved in marine
casualties resulting in more than $75,000 in property damage, and
serious marine incidents resulting in more than $200,000 in property
damage. This requirement amends an existing collection of information
by effectively reducing the number of instances requiring information
to be collected under OMB control number 1625-0001.
Title: Report of Marine Casualty & Chemical Testing of Commercial
Vessel Personnel.
OMB Control Number: 1625-0001.
Summary of the Collection of Information: This final rule requires
responses such as the preparation of written notification by completing
Form CG-2692 (series), and the processing of records. We use this
information to identify pertinent safety lessons and to initiate
appropriate steps for reducing the likelihood of similar accidents in
the future. The collection of information will aid the regulated public
in assuring safe practices.
Need for Information: These reporting requirements permit the Coast
Guard to initiate the investigation of marine casualties as required by
46 U.S.C. 6301, in order to determine the causes of casualties and
whether existing safety standards are adequate, or whether new laws or
regulations need to be developed. Receipt of a marine casualty report
is often the only way in which the Coast Guard becomes aware of a
marine casualty. It is therefore a necessary first step that provides
the Coast Guard with the opportunity to determine the extent to which a
casualty will be investigated.
Proposed Use of Information: In the short term, the information
provided in the report may also trigger corrective safety actions
addressing immediate hazards or defective conditions, further
investigations of mariner conduct or professional competence, or civil
or criminal enforcement actions by the Coast Guard, other Federal
agencies, or state and local authorities. In the long term, information
contained in the report becomes part of the MISLE marine casualty
database at Coast Guard Headquarters. The Coast Guard uses the
information in the MISLE database to identify safety problems and long
term trends, publish casualty summaries and annual statistics for
public use, establish whether additional safety oversight or regulation
is needed, measure the effectiveness of existing regulatory programs,
and better focus limited Coast Guard marine safety resources.
Description of the Respondents: The respondents are those owners,
agents, masters, operators, or persons in charge that notify the
nearest Sector Office, Marine Inspection Office, or Coast Guard Group
Office whenever a vessel is involved in a marine casualty.
Specifically, this final rule affects those vessel crewmembers and
marine employers who completed the necessary forms to report a marine
casualty where the only outcome was property damage of $25,000.01
through $75,000, or an SMI with property damage of $100,000.01 through
$200,000 (CG-2692 series).
Number of Respondents: We estimate that the number of respondents
affected by this rule will be 5,651 per year. This is a decrease of 316
respondents from an OMB-approved number of respondents of 5,967 per
year that complete the CG-2692 series forms (a subset of the total
respondents in COI 1625-0001). We estimate that 250 of these marine
casualty respondents fall under the category of SMI respondents and
would have been required to fill out an additional SMI written report
(CG-2692B). This is a decrease of 21 respondents per year from 271
respondents.
Frequency of Response: The notification response is required only
if a marine casualty occurs as defined in 46 CFR 4.03-2 and 46 CFR
4.05-1.
Burden of Response: For each response, we estimate that it takes 1
hour for a vessel crewmember to complete all of the necessary forms
(CG-2692 series). In addition, some marine casualty forms may undergo
additional processing by the respondents. To account for this
additional time, 10 percent of the forms submitted have 10 hours of
additional
[[Page 11901]]
burden.\22\ When a marine casualty is designated as an SMI, the marine
employer must also complete an SMI written report (CG-2692B). We
estimate that it takes 0.5 hours for a respondent to complete an SMI
written report (CG-2692B)
---------------------------------------------------------------------------
\22\ The Coast Guard estimates that it takes up to 1 hour to
complete Form CG-2692 (series). However, we received public comments
in 2013 on COI number 1625-0001 stating that some submitters take
more time--up to 8 to 12 hours--to complete the form. Docket ID:
USCG-2011-0710, https://www.regulations.gov/docket?D=USCG-2011-0710.
The reason for this difference is that some entities have the
form(s) reviewed by shore-side personnel, such as an attorney, prior
to submission to the Coast Guard. The practice of having a form
reviewed by an attorney is not required by Coast Guard regulation.
While we believe that this does not typically occur, we adjusted our
burden estimate to account for the added review.
---------------------------------------------------------------------------
Estimate of Total Annual Burden: We estimate that the number of
responses will decrease by 316 per year. At 1 hour per response, the
reduced burden for submitting the responses will be 316 hours. In
addition, 10 percent of these responses would have required additional
processing of 10 hours per response, for a reduction of an additional
320 burden hours.\23\ We estimate that 21 of the responses would have
been designated as an SMI. At 0.5 hours per SMI, the burden will be
reduced by 11 hours (rounded). Therefore, this final rule decreases the
total annual burden by 647 hours.\24\
---------------------------------------------------------------------------
\23\ Due to rounding in the estimates, the current burden for
the additional review is 5,970 hours. The burden under this final
rule is 5,650 hours, which is a reduction of 320 hours.
\24\ The current annual burden in COI 1625-0001 for completing
the marine casualty forms, the additional processing for some
respondents, and the time to complete the SMI forms is 12,073 hours.
The annual burden under this final rule is 11,426 hours, a reduction
of 647 hours.
---------------------------------------------------------------------------
This action contains amendments to the existing information
collection requirements previously approved under OMB Control Number
1625-0001. As required by 44 U.S.C. 3507(d), we will submit a copy of
this final rule to OMB for its review of the collection of information.
E. Federalism
A rule has implications for federalism under Executive Order 13132
(``Federalism'') if it has a substantial direct effect on 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 Executive Order 13132
and have determined that it does not have implications for federalism.
Our analysis follows.
It is well settled that States may not regulate in categories
reserved for regulation by the Coast Guard. It is also well settled
that all of the categories covered in 46 U.S.C. 3306, 3703, 7101, and
8101 (design, construction, alteration, repair, maintenance, operation,
equipping, personnel qualification, and manning of vessels), as well as
the reporting of casualties and any other category in which Congress
intended the Coast Guard to be the sole source of a vessel's
obligations, are within the field foreclosed from regulation by the
States. (See the Supreme Court's decision in United States v. Locke and
Intertanko v. Locke, 529 U.S. 89, 120 S.Ct. 1135 (2000).) Because the
States may not regulate within this category, preemption under
Executive Order 13132 is not an issue.
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 Executive Order 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 Executive Order 12988, (``Civil Justice Reform''), to minimize
litigation, eliminate ambiguity, and reduce burden.
I. Protection of Children
We have analyzed this rule under Executive Order 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 Executive Order
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 Executive Order 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 Executive Order 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 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 does not use technical standards. Therefore, we did not
consider the use of voluntary consensus standards.
M. Environment
We have analyzed this rule under Department of Homeland Security
Management Directive 023-01 and Commandant Instruction M16475.lD
(COMDTINST M164751D), 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 that do
not individually or cumulatively have a significant effect on the human
environment. A Record of Environmental Consideration supporting this
determination is available in the docket where indicated under the
ADDRESSES section of this preamble. This rule involves regulations
concerning marine casualties and updates the monetary threshold amounts
for a reportable marine casualty as well as the definition of an SMI
relative to property damage. Thus, this action is categorically
excluded under Section 2.b.2, figure 2-1, paragraph (34)(d) of
COMDTINST M164751D.
[[Page 11902]]
List of Subjects in 46 CFR Part 4
Administrative practice and procedure, Drug testing,
Investigations, Marine safety, National Transportation Safety Board,
Nuclear vessels, Radiation protection, Reporting and recordkeeping
requirements, Safety, Transportation.
For the reasons discussed in the preamble, the Coast Guard amends
46 CFR part 4 as follows:
PART 4--MARINE CASUALTIES AND INVESTIGATIONS
0
1. The authority citation for part 4 continues to read as follows:
Authority: 33 U.S.C. 1231; 43 U.S.C. 1333; 46 U.S.C. 2103,
2303a, 2306, 6101, 6301, and 6305; 50 U.S.C. 198; Department of
Homeland Security Delegation No. 0170.1. Subpart 4.40 issued under
49 U.S.C. 1903(a)(1)(E).
Sec. 4.03-2 [Amended]
0
2. In Sec. 4.03-2(a)(3), remove the text ``$100,000'' and add, in its
place, the text ``$200,000''.
Sec. 4.05-1 [Amended]
0
3. In Sec. 4.05-1(a)(7), remove the text ``$25,000'' and add, in its
place, the text ``$75,000''.
0
4. In Sec. 4.05-10, revise paragraph (a) to read as follows:
Sec. 4.05-10 Written report of marine casualty.
(a) The owner, agent, master, operator, or person in charge must,
within 5 days, file a written report of any marine casualty required to
be reported under Sec. 4.05-1. This written report is in addition to
the immediate notice required by Sec. 4.05-1. This written report must
be delivered to a Coast Guard Sector Office or Marine Inspection
Office. It must be provided on Form CG-2692 (Report of Marine Casualty,
Commercial Diving Casualty, or OCS-Related Casualty), and supplemented
as necessary by appended Forms CG-2692A (Barge Addendum), CG-2692B
(Report of Mandatory Chemical Testing Following a Serious Marine
Incident Involving Vessels in Commercial Service), CG-2692C (Personnel
Casualty Addendum), and/or CG-2692D (Involved Persons and Witnesses
Addendum).
* * * * *
0
5. Revise Sec. 4.05-12(b) introductory text and (d) to read as
follows:
Sec. 4.05-12 Alcohol or drug use by individuals directly involved in
casualties.
* * * * *
(b) In the written report (Forms CG-2692 and CG-2692B) submitted
for the casualty, the marine employer must include information that--
* * * * *
(d) If an individual directly involved in a casualty refuses to
submit to, or cooperate in, the administration of a timely chemical
test, when directed by a law enforcement officer or by the marine
employer, this fact must be noted in the official log book, if carried,
and in the written report (Forms CG-2692 and CG-2692B), and shall be
admissible as evidence in any administrative proceeding.
Sec. 4.06-3 [Amended]
0
6. In Sec. 4.06-3(a)(3) and (b)(2), remove the text ``form CG-2692B''
and add, in its place, the text ``Forms CG-2692 and CG-2692B''.
Sec. 4.06-5 [Amended]
0
7. In Sec. 4.06-5(b), remove the text ``form CG-2692B'' and add, in
its place, the text ``Forms CG-2692 and CG-2692B''.
Sec. 4.06-30 [Amended]
0
8. In Sec. 4.06-30(b), remove the text ``(Report of Required Chemical
Drug and Alcohol Testing Following a Serious Marine Incident)'' and
add, in its place, the text ``(Report of Mandatory Chemical Testing
Following a Serious Marine Incident Involving Vessels in Commercial
Service)''.
Sec. 4.06-60 [Amended]
0
9. Amend Sec. 4.06-60 as follows:
0
a. In Sec. 4.06-60(a), remove the text ``(Report of Required Chemical
Drug and Alcohol Testing Following a Serious Marine Incident)'' and
add, in its place, the text ``(Report of Mandatory Chemical Testing
Following a Serious Marine Incident Involving Vessels in Commercial
Service)''; and
0
b. In Sec. 4.06-60(b), remove the text ``(Report of Marine Casualty,
Injury or Death)'' and add, in its place, the text ``(Report of Marine
Casualty, Commercial Diving Casualty, or OCS-Related Casualty)''.
Dated: March 8, 2018.
Jennifer F. Williams,
Captain, U.S. Coast Guard, Director of Inspections and Compliance.
[FR Doc. 2018-05467 Filed 3-16-18; 8:45 am]
BILLING CODE 9110-04-P
