Higher Volume Port Area-State of Washington, 26212-26221 [2018-12081]
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Federal Register / Vol. 83, No. 109 / Wednesday, June 6, 2018 / Rules and Regulations
Obstruction angle
relative ship’s
headings
Vessel
Number
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USS CHARLESTON .............................................................
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LCS 18 ..................................................................................
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72° thru 74°.
286° thru 288°.
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27. * * *
Obstruction angle
relative ship heading
Vessel
Number
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USS CHARLESTON .............................................................
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LCS 18 ..................................................................................
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47° thru 59°.
301° thru 313°.
TABLE FIVE
Forward
masthead
light not in forward
quarter of ship.
annex I, sec. 3(a)
After
mast-head
light less
than 1⁄2 ship’s
length aft of
forward
masthead
light. annex I,
sec. 3(a)
Percentage
horizontal
separation
attained
Vessel
Number
Masthead
lights not over all
other lights and
obstructions.
annex I,
sec. 2(f)
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USS CHARLESTON ..................................
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LCS 18 .............
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X
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X
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15.2
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Approved: May 24, 2018.
Christopher J. Spain,
Deputy Assistant Judge Advocate General
(Admiralty and Maritime Law), Acting.
Dated: May 31, 2018.
E.K. Baldini,
Lieutenant Commander, Judge Advocate
General’s Corps, U.S. Navy, Federal Register
Liaison Officer.
[FR Doc. 2018–12136 Filed 6–5–18; 8:45 am]
BILLING CODE 3810–FF–P
DEPARTMENT OF HOMELAND
SECURITY
Fuca and Puget Sound, in Washington.
This rulemaking is required to make the
Code of Federal Regulations consistent
with statute, and is related to the Coast
Guard’s maritime stewardship
(environmental protection) mission.
DATES: This final rule is effective July 6,
2018.
ADDRESSES: Documents mentioned in
this preamble as being available in the
docket are part of docket USCG–2011–
0576, which is available at https://
www.regulations.gov.
If
you have questions on this rule, call or
email Mr. Christopher Friese, CG–MER–
1, Coast Guard; telephone 202–372–
1227, email Christopher.R.Friese@
uscg.mil.
FOR FURTHER INFORMATION CONTACT:
Coast Guard
33 CFR Part 155
[Docket No. USCG–2011–0576]
SUPPLEMENTARY INFORMATION:
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RIN 1625–AB75
Table of Contents for Preamble
Higher Volume Port Area–State of
Washington
I. Abbreviations
II. Basis and Purpose
III. Regulatory History
IV. Background
V. Discussion of Comments on the Notice of
Proposed Rulemaking
VI. Discussion of the Rule
VII. Regulatory Analyses
A. Regulatory Planning and Review
Coast Guard, DHS.
Final rule.
AGENCY:
ACTION:
The Coast Guard is redefining
the boundaries of the existing higher
volume port area in the Strait of Juan de
SUMMARY:
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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
CGAA 2010 Coast Guard Authorization Act
of 2010 (Pub. L. 111–281, 124 Stat. 2905,
Oct. 15, 2010)
CGAA 2015 Coast Guard Authorization Act
of 2015 (Pub. L. 114–120, 130 Stat. 27, Feb.
8, 2016)
CFR Code of Federal Regulations
COMDTINST Commandant Instruction
CRF Capital recovery factor
FR Federal Register
GSA General Services Administration
HVPA Higher volume port area
MISLE Marine Information for Safety and
Law Enforcement
NAICS North American Industry
Classification System
NPRM Notice of proposed rulemaking
NSFCC National Strike Force Coordination
Center
OMB Office of Management and Budget
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OSRO Oil spill removal organization
Pub. L. Public Law
SBA Small Business Administration
Stat. Statute
U.S.C. United States Code
VRP Vessel response plan
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II. Basis and Purpose
The purpose of this rule is to align the
list of higher volume port areas (HVPAs)
in 33 CFR 155.1020 with statutory
changes made to the State of
Washington’s higher volume port area,
the Washington HVPA. Section 316 of
the Coast Guard Authorization Act of
2015 (CGAA 2015) expanded the
Washington HVPA.1 The Washington
HVPA had included the Strait of Juan de
Fuca seaward of Port Angeles, but
section 316 expanded it immediately to
an area seaward of Cape Flattery, which
is where the Strait of Juan de Fuca joins
the Pacific Ocean. Regulations in 33
CFR 155.1020 still reflect the prior, Port
Angeles location. Therefore, this
rulemaking updates the Code of Federal
Regulations (CFR) to match the statutory
requirement already in force.
This rule is issued in accordance with
section 316 of the CGAA 2015. The legal
basis to update the CFR is Title 33 of the
United States Code (U.S.C.) section 1231
and 1321(j), which require the Secretary
of the department in which the Coast
Guard is operating to issue regulations
necessary for implementing the Ports
and Waterways Safety Act, and require
the President to issue regulations
mandating response plans and other
measures to protect against oil and
hazardous substance spills. The
President’s authority under 33 U.S.C.
1321(j) is delegated to the Secretary by
Executive Order 12777, and the
Secretary’s authority is delegated to the
Coast Guard by DHS Delegation No.
0170.1(II)(70), (73), and (80).
III. Regulatory History
On October 15, 2010, the Coast Guard
Authorization Act of 2010 (CGAA 2010)
directed the Coast Guard to initiate a
rulemaking to modify the definition of
‘‘higher volume port area’’ in 33 CFR
155.1020, to expand the Washington
HVPA past Cape Flattery.2 On December
7, 2011, the Coast Guard published a
notification 3 announcing our intent to
comply with the mandate in section 710
of the CGAA 2010. On May 22, 2015,
the Coast Guard published a notice of
proposed rulemaking (NPRM) 4 to revise
the boundaries of the existing HVPA in
the Strait of Juan de Fuca and Puget
1 Public
2 Public
Law 114–120, 130 Stat. 27 (2016).
Law 111–281, section 710, 124 Stat. 2986
(2010).
3 76 FR 76299.
4 80 FR 29582.
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Sound. The NPRM had a 90-day
comment period that closed on August
20, 2015. No public meeting was
requested, and none was held.
After the close of the NPRM comment
period, the CGAA 2015 expanded the
HVPA immediately without requiring
rulemaking before the change took
effect. The Coast Guard applies the
requirements of the expanded HVPA of
the CGAA 2015 and has done so since
the effective date of the Act. Although
rulemaking is not required to implement
the statute, a conforming change to the
CFR is still necessary to ensure the
regulations align with the statute. In this
final rule, the Coast Guard is making
conforming changes and responding to
public comments received on the
proposed rule. In Section V of this
preamble, we discuss the comments that
we received and how we addressed
them.
IV. Background
Oil or hazardous material pollution
prevention regulations for U.S. and
foreign vessels operating in U.S. waters,
appear in Coast Guard regulations at 33
CFR part 155. Those regulations require
a vessel response plan (VRP) describing
measures that the vessel owner or
operator has taken or will take to
mitigate or respond to an oil spill from
the vessel. The VRP must demonstrate
the vessel’s ability, following a spill, to
secure response resources within given
time periods. These measures typically
include the services of nearby response
resources under a contract between the
vessel’s owner or operator and an oil
spill removal organization (OSRO) that
owns the response resources. The
regulations provide for three different
timeframes within which a combination
of required response resources must
arrive on the scene, which are described
as Tiers 1, 2, and 3.
In 33 CFR part 155, subparts D
(petroleum oil as cargo), F (animal fat or
vegetable oil as cargo), G (nonpetroleum oil as cargo), and J
(petroleum oil as fuel or secondary
cargo) all share the same definition of
‘‘higher volume port area.’’ Required
response times are significantly reduced
in HVPAs. For example, Tier 1 response
times for an oil tanker within an HVPA
are half of that required for the same
vessel operating in open ocean. As
defined in 33 CFR 155.1020, the Strait
of Juan de Fuca and Puget Sound, WA,
constitute one of the 14 HVPAs
designated around the country.
Since 1996, 33 CFR 155.1020 has
defined the seaward boundary of the
Washington HVPA as an arc 50 nautical
miles seaward of the entrance to Port
Angeles, WA. Port Angeles is
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approximately 62 nautical miles inland
from the Pacific Ocean entrance to the
Strait of Juan de Fuca, at Cape Flattery,
WA, and therefore the Washington
HVPA, as defined in 33 CFR 155.1020,
did not include any Pacific Ocean
waters. Section 710 of the CGAA 2010
required the Coast Guard to initiate a
rulemaking to relocate the HVPA’s arc
so that it extended seaward from Cape
Flattery, not Port Angeles. This added
50 nautical miles of Pacific Ocean water
and an additional 12 nautical miles in
the western portion of the Strait of Juan
de Fuca.5
V. Discussion of Comments on the
Notice of Proposed Rulemaking
We received comments on our NPRM
from five sources: An environmental
group, two state environmental
agencies, an Indian tribal council, and
an individual resident of the region.
These public comments could not
anticipate the 2015 legislation that was
enacted after the close of the comment
period in August 2015, and which
overwrote the 2010 legislation that
prompted the Coast Guard to issue the
NPRM. However, the Coast Guard
addresses all the public comments here
in order to improve clarity and foster
better relationships with stakeholders.
Legislative intent. The tribal council
explained its role in developing the
2010 legislation mandating this
rulemaking, and said the purpose of the
legislation was to ‘‘enhance oil spill
response capacity in the Strait of Juan
de Fuca, commensurate with the history
of oil spills in this region, the sensitivity
of the area’s natural resources and the
risk for future spills from increasing
tank and non-tank vessel traffic.’’ The
council asserted that the NPRM did not
reflect this intent in the proposed
regulatory text.
Response: We acknowledge the
council’s role in developing the 2010
legislation. However, the text of section
710 is unambiguously limited to the
expansion of the HVPA. Section 316 of
CGAA 2015 expanded the Washington
HVPA without the need for the Coast
Guard to conduct a rulemaking. Neither
Act gave the Coast Guard discretion to
choose a different size or location for
the Washington HVPA, or provided
other direction regarding this HVPA.
Adequacy of response resources. The
environmental group, one of the state
environmental agencies, the tribal
council, and the local resident all
expressed concern that expansion of the
5 Waters discussed in this preamble are shown on
National Oceanic and Atmospheric Administration
chart 18460 (Cape Flattery, WA) and chart 18465
(Port Angeles, WA).
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HVPA would reduce the ability of
OSROs to respond adequately to oil or
other hazardous substance spills
throughout the HVPA. The local
resident and the state environmental
agency said we did not provide
sufficient details on how we will
implement the expanded HVPA. The
same group asked us to coordinate with
governmental agencies and regional and
tribal groups to collectively determine
how best to balance response assets in
the HVPA. The environmental group
and the resident expressed concern over
the potential impact of anticipated
increases in the number of vessels
carrying those substances in the HVPA.
Response: Title 33 CFR part 155 does
not allow the Coast Guard to direct
OSROs where equipment must be
staged, or require OSROs to purchase
any additional equipment. The Coast
Guard requires that OSROs demonstrate
their ability to respond adequately to a
spill within an HVPA’s response
timelines. Thus, there is no provision to
coordinate with governmental agencies
and regional and tribal groups to
collectively determine how best to
balance response assets in the HVPA.
The Coast Guard National Strike
Force Coordination Center (NSFCC)
verifies OSRO capability through
Preparedness Assessment Visits and
response time calculations. The same
method is used in classifying all OSROs.
Two OSROs are currently classified for
coverage in the HVPA. Vessel owners or
operators need only reference the
classified OSRO in their VRP. If an
owner or operator chooses to use a nonclassified OSRO, then they must list all
the equipment and describe how they
meet the requirements in appendix B to
33 CFR part 155. All VRPs receive the
same detailed review for response
adequacy to ensure the vessel’s
readiness for response in the geographic
area it is operating.
We acknowledge the concerns of
commenters with regard to reduced
response capabilities throughout the
HVPA. This rulemaking in no way
reduces or changes any response
requirements that currently exist.
Implementation of the revised HVPA
does not change the requirement of
vessel owners and operators to identify
classified OSROs or identify their own
equipment sufficient to meet part 155
appendix B requirements. This is
required in order for the vessel to
receive an approved VRP necessary for
operating in the HVPA.
We also acknowledge concerns about
increased vessel transits and, it is
implied, a higher likelihood of spills.
VRPs are for response planning
purposes. Consistent with the National
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Planning Criteria, they are evaluated
using the worst-case discharge from a
single vessel.
Pre-NPRM tribal consultation. The
tribal council ‘‘strongly disagree[s]’’
with our analysis of Executive Order
13175 (Indian Tribal Governments)
requirements, which concluded that, for
this rulemaking, tribal consultation is
not required by the Executive Order.
The council says we should have
consulted with it because of our shared
trust responsibility for the commenter’s
treaty protected area.
Response: The Coast Guard enjoys a
close working relationship with many
tribal governments, including the
council represented by the commenter.
The Coast Guard welcomes ongoing
communications and informal
consultation, as well as suggestions for
improving communications with tribes.
The consultation described in section
5(b) of Executive Order 13175 is
triggered by a regulation that has tribal
implications and imposes substantial
direct compliance costs on Indian tribal
governments. Section 5(b) Executive
Order 13175 also only requires
consultation when the regulation being
developed ‘‘is not required by statute.’’
In this case, section 710 of CGAA 2010
required that the Coast Guard
promulgate a regulation to expand the
Washington HVPA. As discussed above,
however, after the close of the NPRM
comment period, section 316 of CGAA
2015 expanded the Washington HVPA
by statutory mandate. Therefore, the
Coast Guard maintains that the
consultation described in Executive
Order 13175 does not apply. As noted,
however, we do not believe that the
absence of Executive Order 13175
consultation prevents the Coast Guard
from receiving and incorporating input
from tribal governments. In the 5 years
between the 2010 legislation and the
2015 publication of the NPRM, the
Coast Guard met or spoke with tribal
representatives about the Washington
HVPA expansion. We appreciated the
input and look forward to continued
collaboration with the tribal
representatives.
Future tribal consultation. The tribal
council asked us to enter into
government-to-government consultation
after the rule is adopted, and to develop
a protocol for consultation and
coordination going forward. The council
also suggested that we consult with the
State of Washington to ‘‘establish a
harmonized view about how industry
and OSROs will be expected to comply
with the HVPA shift.’’
Response: The Coast Guard invites
communication and dialogue with tribal
councils in order to maintain a positive
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working relationship. The Coast Guard’s
Thirteenth District, in particular, values
its longstanding and ongoing
relationship with the Makah Tribal
Council. The Thirteenth District meets
with tribes, and will continue to meet
with tribes, to discuss a variety of
issues. The involvement of local units
like the Thirteenth District is essential
for ensuring the Coast Guard’s proper
understanding of stakeholder input, and
the Thirteenth District is best positioned
to work with the council, through their
longstanding and ongoing relationship
as memorialized in their 2013
Memorandum of Agreement, on any
implementation arrangements that are
appropriate for discussion with the
public. Although the process described
in Executive Order 13175 is not the
appropriate mechanism for consultation
and coordination after the rule becomes
final, the Coast Guard is committed to
addressing concerns raised by our
regulations and their implementation.
As described above, this rule makes
no changes to the requirements for
planholders or for classifying OSROs, so
we do not anticipate a shift in
implementation process. Through
existing practices, the NSFCC confirms
that classified OSROs meet their
regulatory responsibilities. Owners or
operators using non-classified OSROs
must describe in their VRP how they
meet appendix B requirements.
Although we do not see a specific need
for formal consultation with the State of
Washington, the Thirteenth Coast Guard
District maintains open lines of
communication with the State. The
Coast Guard will continue to work with
its Federal, State, local, and tribal
partners to ensure response readiness
following publication of this final rule.
Additional resources and Neah Bay
restaging. One of the state
environmental agencies said that the
expanded HVPA ‘‘should result in the
acquisition and staging of additional
equipment that is capable of open water
recovery and storage in Neah Bay.’’ The
State agency also said that, in approving
VRPs and evaluating OSROs identified
by those VRPs, we should consider
whether they reflect the restaging of
response assets in Neah Bay. The tribal
council said our rule should ensure that
‘‘additional equipment is purchased and
staged in a geographic location to
promptly respond to a spill in the
western reaches of the expanded HVPA,
without adversely impacting responses’’
elsewhere in the HVPA, and said Neah
Bay is the ‘‘logical and appropriate’’
staging area for additional response
equipment, which should be rated for
an open-ocean environment.
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Response: While Neah Bay may be a
logical and appropriate location for the
staging of response equipment, other
locations may also be logical and
appropriate. The Coast Guard does not
direct OSROs to where equipment must
be staged, or require OSROs to purchase
any additional equipment. The Coast
Guard requires that OSROs demonstrate
their ability to respond adequately to a
spill within an HVPA’s response
timelines.
Benefits. One of the state
environmental agencies and the tribal
council asked what basis we had for
stating in the NPRM 6 that of 283 spills
of oil or other hazardous substances in
the affected area between 1995 and
2013, we could identify no spill
response that would have benefitted
from the HVPA’s expansion. The
council cited three oil spills that
adversely affected the tribe including
the General Meigs, the Nestucca, and
the Tenyo Maru. The agency and the
council both noted that we did not ask
them for information that might have
changed that conclusion. The council
expressed concern over ‘‘the limited
historical oil spill data’’ used in our
analysis, and ‘‘formally request[ed]’’
that we conduct ‘‘a more rigorous
analysis of historical oil spills’’ and give
the commenter the ‘‘opportunity to
review the Coast Guard’s methodology
regarding’’ what effect HVPA expansion
might have had on the response to
previous spills.
Response: Although Congress
expanded the HVPA after these
comments were submitted, making our
spill analysis redundant, it may be
helpful to explain the context for our
regulatory analyses. The statement
referred to by these commenters
appeared in the ‘‘regulatory analyses’’
for the NPRM.7 As explained in the
NPRM, based on information from Coast
Guard personnel who have experience
in casualty case investigations and
analysis, we found none of the 283 cases
or spills that would have benefited from
the HVPA expansion. As for the three
spills cited by the council, we cannot
conclude that the expanded HVPA
would have mitigated the damage
caused by those incidents. The 33 CFR
part 155 regulations do not apply to a
warship or naval auxiliary vessel such
as the troopship General Meigs.8 The
Nestucca and Tenyo Maru incidents did
not occur within the existing or
expanded bounds of the HVPA. We
6 NPRM,
80 FR 29582 at 29586, col. 3 (May 22,
2015).
7 NPRM, 80 FR 29582 at 29586–29587 (May 22,
2015).
8 33 CFR 155.100(b)(1).
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were therefore unable to use these
incidents in our benefit analysis for this
rulemaking.
VI. Discussion of the Rule
This rule is substantively unchanged
from what we proposed in the NPRM.
It expands the boundaries of the
Washington HVPA in the CFR to make
those boundaries consistent with
section 316 of the CGAA 2015. The old
definition of ‘‘higher volume port area’’
in 33 CFR 155.1020 includes any water
area within 50 nautical miles seaward of
the entrance to the Strait of Juan De
Fuca at Port Angeles, WA to and
including Cape Flattery, WA. In order to
align the regulations with section 316 of
the CGAA 2015, we are amending that
definition by striking ‘‘Port Angeles,
WA’’ and inserting ‘‘Cape Flattery, WA’’
in its place.
Port Angeles lies about 62 nautical
miles east of the entrance to the Strait
of Juan de Fuca. By moving the arc so
that it centers on Cape Flattery, which
lies at the entrance to the Strait, the
redefined Washington HVPA will cover
an additional 50 nautical miles of
Pacific Ocean water, while continuing
to cover all the waters now included
within the current HVPA. The larger
Washington HVPA may affect the time
and resources needed to respond to an
oil spill from a vessel because it is
harder and more time-consuming to
transit rough Pacific Ocean waters than
it is to transit the sheltered waters of the
Strait and the Sound. We discuss these
possibilities in more detail in the
Regulatory Analyses section that
follows.
This rule also makes two editorial
changes in 33 CFR 155.1020. First, we
correct the spelling of ‘‘Strait of Juan De
Fuca’’ to ‘‘Strait of Juan de Fuca.’’
Second, we add a note to paragraph (13)
of the definition of ‘‘higher volume port
area’’ to highlight that the western
boundary of the Washington HVPA in
33 CFR part 155 differs from that in 33
CFR part 154 for facilities transferring
oil or hazardous materials in bulk. The
difference stems from section 316 of the
CGAA 2015 (Pub. L. 114–120) and the
statutory language that specifically
addresses the definition in 33 CFR part
155. The statutory expansion in the
CGAA 2015 is not written to address 33
CFR part 154, and therefore 33 CFR
subchapter O will contain two differing
definitions of ‘‘higher volume port area’’
for the Straits of Juan de Fuca.
VII. Regulatory Analyses
We developed this final rule after
considering numerous statutes and
Executive orders related to this
rulemaking. Below we summarize our
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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.
As this rule is not a significant
regulatory action, this rule is exempt
from the requirements of Executive
Order 13771. See OMB’s Memorandum
‘‘Guidance Implementing Executive
Order 13771, Titled ‘Reducing
Regulation and Controlling Regulatory
Costs’’’ (April 5, 2017). A regulatory
analysis follows.
We received no public comments on
the estimated costs of the proposed rule,
nor did we receive any additional
information or data that alters our
assessment of the proposed rule.
However, we received two public
comments on the benefit analysis
presented in the proposed rule
regarding the same topic. We presented
our full response to these two public
comments in section V of this preamble.
Because no casualty case mentioned in
one of the comments would have
benefited from the expanded HVPA, we
also determined that our assessment of
the benefits of the proposed rule
remains unchanged. Therefore, we
adopt the preliminary regulatory
analysis for the proposed rule as final.
A summary of that analysis follows.
This final rule is needed to conform
Coast Guard regulations to the statutory
changes made by section 316 of CGAA
2015. Currently, the CFR says the
Washington HVPA boundary is
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measured from Port Angeles in a 50
nautical mile seaward arc westward to
the Pacific Ocean. This final rule will
amend the definition of the term
‘‘higher volume port area’’ to match the
relocated point at which the seaward arc
is measured from Port Angeles to Cape
Flattery, WA, an approximately 62
nautical mile westward shift. As a
result, the Washington HVPA will cover
an additional 50 nautical miles of open
ocean and an additional 12 nautical
miles in the western portion of the Strait
of Juan de Fuca. A VRP must list the
OSRO provider that the vessel owner or
operator has contracted with and
stipulate the vessel’s ability to secure
response resources within specific
regulatory timeframes (Tiers 1, 2, and 3)
in the event of an oil spill. This final
rule will codify the changes delineated
in the CGAA 2015 and it will not
require changes to VRPs.
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Affected Population
Part 155 of 33 CFR directly applies to
and regulates vessel owners and
operators. The final rule has the
potential to impact vessel response
planholders covering vessels that transit
the Washington HVPA and OSROs that
provide response resources in the event
of an oil spill. Based on the Coast
Guard’s review of VRPs, two OSROs
may be impacted by the final rule. One
OSRO has about 500 response resource
contracts and the other OSRO has about
650 contracts with planholders that own
vessels that call on the expanded
Washington HVPA. For the OSRO that
has 500 contracts, about 3 percent or 15
of those contracts are with U.S.
planholders; for the OSRO that has 650
contracts, about 2 percent or 13 of those
contracts are with U.S. planholders.
Costs
Vessel owners and operators will not
need to revise or modify a current VRP
to take into account the expansion of the
HVPA. Current VRPs already specify
one or both of the OSROs that provide
response resources to vessel owners and
operators in the affected waters. Vessel
owners and operators must only list the
NSFCC-classified OSRO by name and
include the contact information for each
OSRO in the VRP; no other information
or details regarding the geographic
location of response equipment are
required in the VRP.
In addition to identifying the OSRO in
the VRP, vessel owners and operators
must ensure the availability of response
resources from the OSRO through a
contract or other approved means.
Depending on how the contract
language is formulated, a contract may
need to be modified to reflect the
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change in the HVPA geographical
definition. For example, one OSRO
provided information which stated that
contracts will need to be modified
slightly to incorporate the geographic
change of the expanded HVPA, while
the other OSRO provided information
which stated that no changes or
modifications to existing contracts are
necessary on the part of either OSRO or
the planholders. For the purpose of this
analysis, we estimate costs to modify a
contract for the planholders of the
OSRO that stated that changes are
necessary. This OSRO has about 500
planholders with written contractual
agreements to secure response resource
services in the event of an oil spill; of
this amount, only about 3 percent or 15,
are with U.S. planholders. Based on
information we obtained from industry
in formulating the Nontank Vessel
Response Plan final rule (78 FR 60100),
it will take a general and operations
manager approximately 2 hours of
planholder time to amend the contract
and send the contract to the OSRO for
approval. If a plan preparer amends the
contract on behalf of the planholder, we
estimate it will take the same amount of
time. We found that 36 percent of
planholders perform this work
internally and 64 percent hire a plan
preparer to perform this work on their
behalf. The amendment of a contract is
a one-time cost; we estimate little or no
submission cost for planholders because
nearly 100 percent of contracts are
submitted by email to the responsible
OSRO.
Accounting for planholders who
perform the work internally and using
the Bureau of Labor Statistics (BLS) May
2016 National Industry-Specific
Occupational Employment and Wage
Estimates for General and Operations
Manager (Occupation Code 11–1021),
we obtain a mean hourly wage rate of
$73.98. We then use BLS’ 2016
Employer Cost for Employee
Compensation databases to calculate
and apply a load factor of 1.52 to obtain
a loaded hourly labor rate of about
$112.45 for this occupation.9 For plan
9 Information can be viewed at https://
www.bls.gov/oes/2016/may/naics3_483000.htm.
Once on this page, scroll down to review the wage
rate for 11–1021, General and Operations Manager
with a mean hourly wage of $73.98. A loaded labor
rate is what a company pays per hour to employ
a person, not the hourly wage. The loaded labor rate
includes the cost of benefits (health insurance,
vacation, etc.). The load factor for wages is
calculated by dividing total compensation by wages
and salaries. For this analysis, we used BLS’
Employer Cost for Employee Compensation/
Transportation and Materials Moving Occupations,
Private Industry report (Series IDs,
CMU2010000520000D and CMU2020000520000D
for all workers using the multi-screen data search).
Using 2016 Q4 (Quarter 4) data, we divide the total
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Frm 00014
Fmt 4700
Sfmt 4700
preparers, we obtained publicly
available fully loaded billing rates for
senior regulatory consultants and
program managers from three
environmental service companies using
the General Services Administration’s
(GSA) Federal Acquisition eLibrary for
service contracts.10 We took the average
of these three rates to obtain a fully
loaded hourly wage rate of $145.11[we
used three labor categories: Senior
Regulatory Consultant with a wage rate
of $184.22 for contract number GS–10F–
0263U (page number 16), Program
Manager with a wage rate of $115.86 for
contract number GS–10F–0074T (page
number 4), and Senior Project Manager
with a wage rate of $135.25 for contract
number GS–10F–0335R (page number
32)]. Of about 500 planholders who
have contracts with this OSRO, only
about 15 are U.S. planholders. Of the 15
U.S. planholders, about 36 percent will
amend the contract internally. We
estimate the one-time cost to these
planholders is about $1,214 ($112.45 ×
2 hours × 500 planholders × 0.03 × 0.36,
rounded). For the remaining 64 percent
of U.S. planholders who have plan
preparers amend the contracts on their
behalf, we estimate the one-time cost is
about $2,786 ($145.11 × 2 hours × 500
planholders × 0.03 × 0.64, rounded); the
total combined estimated one-time cost
to U.S. planholders to amend the
contracts is about $4,001, rounded and
undiscounted. We estimate the average
one-time or initial cost for each U.S.
planholder to amend a contract is about
$267 ($4,001/15 U.S. planholders). We
estimate the 10-year discounted cost is
about $3,739 using a 7 percent discount
rate and the annualized cost is about
$532.
The remaining 485 planholders are
foreign. For 36 percent of them who will
amend the contracts internally, we
compensation amount of $28.15 by the wage and
salary amount of $18.53 to get the load factor of
1.52. See the following website, https://www.bls.gov/
ncs/ect/data.htm. Once on this page, scroll down to
‘‘Pay and Benefits’’ and click the multi-screen data
search button to access the database, ‘‘Employer
Cost for Employee Compensation.’’ We used the
mean hourly wage rate of $73.98 and multiplied by
1.52 to obtain a loaded hourly wage rate of about
$112.45.
10 GSA Contract GS–10F–0263U accessed 05/24/
2017, https://www.gsaadvantage.gov/ref_text/
GS10F0263U/0ME78D.2QP6TJ_GS-10F-0263U_
GSAADVANTAGEYR6.PDF; GSA Contract GS–
10F–0074T accessed 05/24/2017, https://www.
gsaelibrary.gsa.gov/ElibMain/contractorInfo.do?
contractNumber=GS-10F-0074T&contractorName=
ENVIRONMENTAL+MANAGEMENT+SERVICES+
INC&executeQuery=YES (once at the GSA eLibrary
web page, the reader must use the hyperlink labeled
‘‘Contractor T&Cs/Pricelist’’ to obtain the wage rate
used in this analysis), and https://www.
gsaadvantage.gov/ref_text/GS10F0335R/0OMBPD.
3723M6_GS-10F-0335R_ENVCOSTMGMTTANDC
071315.PDF; accessed 05/24/2017.
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estimate the one-time cost is about
$39,268 ($112.45 × 2 hours × 485
planholders × 0.36, rounded). For the
remaining 64 percent of foreign
planholders who have a plan preparer
amend the contracts on their behalf, we
estimate the one-time cost is about
$90,084 ($145.11 × 2 hours × 485
planholders × 0.64, rounded); combined
the total estimated one-time cost to
foreign planholders to amend the
contracts is about $129,352, rounded, or
about $267 per planholder ($129,352/
485 foreign planholders).
The final category of potential costs
relates to the OSROs’ abilities to meet
the specified response times in the new
geographic area of the HVPA. Based on
information provided to the Coast
Guard, one OSRO stated that additional
response equipment will not be required
and capital expenditures will not be
necessary as a result of the expanded
HVPA under current Coast Guard OSRO
classification guidelines. Based on data
from the other OSRO, we estimate that
total initial capital costs could be as
high as $5.5 million for temporary
storage equipment and warehousing
with annual capital recurring costs of
approximately $250,000 for equipment
maintenance, and up to $1 million for
barge recertification (included in the
$5.5 million estimate), warehousing,
and other necessary resource
equipment. However, we lack
independent methods to verify these
estimates. Moreover, the actual costs the
OSRO may incur depend considerably
on how they choose to comply with our
regulations, which give OSROs
substantial flexibility with respect to
pre-positioning response resources.
To the extent one OSRO will incur
additional costs due to this final rule
(such as increased capitalization costs),
we expect that these costs are generally
passed onto their VRP planholders
equally, although the OSRO that
provided this information conceded that
this was speculative at this point due to
the uncertainty of expenditures that
may be needed as described below.
Using the highest value of capital costs
provided to us of $5.5 million, we use
the capital recovery cost factor to
determine the amount needed annually
to recover this payout since we assume
the OSRO will finance the expenditures
and attempt to recapture them equally
over the life of the equipment. The
capital recovery factor (CRF), or ratio as
it is often referred to, is the ratio of a
constant annuity to the present value of
the annuity over a given period of time
using an acceptable discount rate, as in
this case, 7 percent. The ratio also
includes the general life expectancy of
the investment and can be simply
described as the ‘‘share of the net cost
that must be recovered each year to
‘repay the cost of the fixed input at the
end of its useful life.’ ’’ 11 If we use a
standard life expectancy of 20 years, we
calculate the net amount that must be
recovered by the OSRO annually is
about $519,161, undiscounted (The
capital recovery factor is written as:
where i is the discount rate and n is the
number of years or the life expectancy
of the investment).12 If we assume this
cost is distributed equally over the 650
planholders (U.S. and foreign
planholders who own vessels that
transit the HVPA) under contract with
this OSRO, the amount needed to be
recovered by the OSRO to recapture this
initial investment is estimated is about
$800 (rounded from $798.71) from each
planholder annually, most likely in the
form of higher retainer fees. However,
only about 2 percent, or 13 of the 650
planholders are U.S. planholders.
Therefore, for the 13 U.S. planholders,
we estimate the total capital cost of this
final rule is about $10,400 (650
planholders × 0.02 × $800) annually,
undiscounted, in addition to annual
maintenance costs of about $385 per
planholder ($250,000/650 planholders),
undiscounted, in years 2 through 10 of
the analysis period. We estimate the
total 10-year discounted cost to the 13
U.S. planholders is about $75,390 using
a 7 percent discount rate (the 10-year
discounted cost is estimated is about
$91,624 using a 3 percent discount rate)
and the annualized cost is about
$10,741.
For all 28 U.S. planholders, we
estimate the total initial-year cost is
about $14,401 ($4,001 + $10,400),
undiscounted. We estimate the total
annual recurring cost is about $10,785
($10,400 + $385), undiscounted (see
Table 1 for further details).
It follows that the remaining 637
planholders are foreign. Again, if we
assume this OSRO passes along its
capital cost in the form of higher
retainer fees to foreign planholders, we
estimate the total capital cost of this
final rule to foreign planholders is about
$509,600 (637 × $800) annually,
undiscounted, in addition to annual
maintenance costs of about $245,000
(637 × $385), undiscounted, in years 2
through 10 of the analysis period. We
estimate the total 10-year discounted
cost to foreign planholders is about $3.6
million using a 7 percent discount rate
(the 10-year discounted cost is
estimated is about $4.3 million using a
3 percent discount rate). As stated
earlier, we neither have knowledge of
the OSROs billing structure nor how
costs are distributed among planholders,
although in our discussion with one
OSRO, we learned that the composition
of a planholder’s vessel fleet affects the
amount of the retainer fee because
vessels such as nontank ships require
different response resources as opposed
to towing vessels, for example.
Table 1 summarizes the total
estimated cost of the final rule to 28
U.S. planholders over a 10-year period
of analysis.
TABLE 1—SUMMARY OF ESTIMATED COSTS OF THE FINAL RULE TO U.S. PLANHOLDERS
[7 Percent discount rate, 10-year period of analysis, 2017 dollars]
Year
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Undiscounted
1
2
3
4
...............................................................
...............................................................
...............................................................
...............................................................
11 See https://web.stanford.edu/group/FRI/
indonesia/courses/manuals/pam/pam-book/
Output/chap9.html.
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$4,001
0
0
0
Discounted
OSRO equipment and other
capital costs for 13 U.S.
planholders
Undiscounted
Undiscounted
$3,739
0
0
0
Frm 00015
Fmt 4700
Sfmt 4700
Discounted
Discounted
$10,400
10,785
10,785
10,785
12 We calculate the value of the numerator to be
about 0.27 and the value of the denominator to be
about 2.87, rounded. The CRF is then calculated to
be about 0.0944. Multiplying by the initial
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Total costs
$9,720
9,420
8,804
8,228
$14,401
10,785
10,785
10,785
$13,459
9,420
8,804
8,228
investment of $5.5 million, we obtain an annualized
recovery amount of about $519,161 rounded, or the
annualized amount the OSRO must recover to repay
for its initial investment.
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Update contracts for 15 U.S.
planholders
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TABLE 1—SUMMARY OF ESTIMATED COSTS OF THE FINAL RULE TO U.S. PLANHOLDERS—Continued
[7 Percent discount rate, 10-year period of analysis, 2017 dollars]
Update contracts for 15 U.S.
planholders
OSRO equipment and other
capital costs for 13 U.S.
planholders
Year
Undiscounted
Total costs
Undiscounted
Discounted
Undiscounted
Discounted
Discounted
5 ...............................................................
6 ...............................................................
7 ...............................................................
8 ...............................................................
9 ...............................................................
10 .............................................................
0
0
0
0
0
0
0
0
0
0
0
0
10,785
10,785
10,785
10,785
10,785
10,785
7,690
7,187
6,716
6,277
5,866
5,483
10,785
10,785
10,785
10,785
10,785
10,785
7,690
7,187
6,716
6,277
5,866
5,483
Total ..................................................
Annualized .................................
........................
........................
3,739
532
........................
........................
75,390
10,734
........................
........................
79,129
11,266
Totals may not sum due to independent rounding.
As Table 1 shows, for 15 U.S.
planholders who may need to revise
their contracts, we estimate the 10-year
discounted cost of the final rule is about
$3,739 at a 7 percent discount rate
(using a 3 percent discount rate, we
estimate the 10-year discounted cost is
about $3,884). We estimate the
annualized cost is about $532 for these
15 planholders.
For the OSRO that may incur capital
costs as a result of this final rule and
pass these costs along to its 13 U.S.
planholders, we estimate the 10-year
discounted cost is about $75,390 at a 7
percent discount rate (using a 3 percent
discount rate, we estimate the 10-year
discounted cost is about $91,624). We
estimate the annualized cost is about
$10,734 at a 7 percent discount rate for
these 13 planholders.
We estimate the total present
discounted cost of the final rule to all
28 U.S. planholders about $79,129 at a
7 percent discount rate (using a 3
percent discount rate, is we estimate the
total 10-year discounted cost is about
$95,509). We estimate the annualized
cost is about $11,266 at a 7 percent
discount rate.
We do not anticipate that this final
rule will impose new costs on the Coast
Guard or require the Coast Guard to
expend additional resources because we
do not expect any changes are required
to the VRPs of vessels in the HVPA.
daltland on DSKBBV9HB2PROD with RULES
Alternatives
Due to the specific nature of section
710(a) of the CGAA 2010 and section
316 of the CGAA 2015, we are limited
in the alternative approaches we can use
to comply with Congress’ intent. We
considered three alternatives (including
the preferred alternative) in the
development of the final rule: (1) Revise
33 CFR 155.1020 by striking ‘‘Port
Angeles, WA’’ in the definition of
‘‘higher volume port area’’ of that
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section and inserting ‘‘Cape Flattery,
WA’’; (2) revise 33 CFR 155.1020 by
striking ‘‘50 nautical miles’’ in the
definition of ‘‘higher volume port area’’
and inserting ‘‘110 nautical miles’’; and
(3) take no action. The Regulatory
Analyses section further discusses the
analysis of the preferred alternative (i.e.,
express adoption of the wording from
section 710(a)) in comparison with other
regulatory approaches considered.
Analysis of Alternatives
We considered three alternatives
(including the preferred alternative) in
the development of this final rule. The
key factors that we evaluated in
considering each alternative included:
(1) The degree to which the alternative
comported with the congressional
mandate in section 710 of the CGAA
2010; (2) what benefits, if any, are
derived, such as enhancement of
personal and environmental safety and
security; and (3) cost effectiveness. The
alternatives considered are as follows:
Alternative 1: Revise 33 CFR 155.1020
by striking ‘‘Port Angeles, WA’’ in the
definition of ‘‘higher volume port area’’
of that section and inserting ‘‘Cape
Flattery, WA.’’ Since 1996, 33 CFR
155.1020 has defined the seaward
boundary of the Washington HVPA as
an arc 50 nautical miles seaward of the
entrance to Port Angeles, WA. The
change will relocate the arc’s center to
Cape Flattery, covering approximately
50 additional nautical miles of open
ocean.
Alternative 2: Revise 33 CFR 155.1020
by striking ‘‘50 nautical miles’’ in the
definition of ‘‘higher volume port area’’
and inserting ‘‘110 nautical miles.’’ This
change would affect the other 13 HVPAs
throughout the United States because
the level of response resources required
would cause significantly reduced
response times resulting from a 110mile outward shift of the existing
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Frm 00016
Fmt 4700
Sfmt 4700
HVPAs from their entrances. A shift of
this distance would require the
purchasing and positioning of heavier
and more expensive equipment such as
oceangoing tugs and barges. In addition,
OSROs would incur considerable costs
of potentially retrofitting existing
HVPAs with shoreside docks. Since this
would include all HVPAs, the economic
impact on the response resource
industry, as a whole, would be greater
as opposed to a single HVPA.
Furthermore, this option would be
inconsistent with the existing
boundaries of the expanded HVPA in
section 710(a) of CGAA 2010 (Pub. L.
111–281, 124 Stat. 2905) as amended by
section 316 of the CGAA 2015.
Alternative 3: Take no action. This
option was not selected as it would not
implement the intent of section 316 of
the CGAA 2015, which specifically
requires the Coast Guard to implement
the modified definition of the term
‘‘higher volume port area’’ by striking
‘‘Port Angeles, WA’’ and inserting
‘‘Cape Flattery, WA.’’ It also precludes
the protection intended by Congress for
the waters at the entrance to and in the
Strait of Juan de Fuca.
We chose Alternative 1, which
codifies the regulation directly and
specifically implements section 316 of
the CGAA 2015 as described earlier. We
rejected Alternative 2, because it would
result in different HVPA boundaries in
regulation and statute and adds burden,
both in the Puget Sound region and in
the other HVPAs throughout the United
States. We rejected Alternative 3, the
‘‘no action’’ alternative, because it
would not implement section 316.
Benefits
We did not identify any historic cases
that could support the development of
quantifiable benefits associated with
this final rule. Using the Coast Guard’s
Marine Information for Safety and Law
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Enforcement (MISLE) database with
casualty cases transferred from MISLE’s
predecessor, the Marine Safety
Management System database, we
examined 283 spill cases from 1995 to
2013, beginning with the first spills that
appeared in our database for this
geographic region. We also examined
378 additional cases from 2014 through
2016. Based on information from Coast
Guard personnel who have experience
in casualty case investigations and
analysis, we found no cases or spills
that would have definitively benefitted
from the expanded HVPA.
Qualitatively, oil spills are likely to
result in a negative impact to the
ecosystem and the economy of the
surrounding area. These social welfare
effects are not accounted for solely by
the amount of oil spilled into the water.
In many cases, the scope of the impact
is contingent on the vulnerability and
resiliency of the affected area. Due to
the sensitivity or vulnerability of a
location, a barrel of spilled oil may not
have the same impact in one area as it
would in another. Depending on the
ecosystem, VRPs could mitigate impacts
to habitats that house multiple species.
An area with an ecosystem that is
damaged as a result of previous
environmental incidents or damaged
due to the cumulative effects of
environmental injuries over time can be
expected to have higher benefits from
oil spill mitigation.
The primary benefit of this final rule
is to ensure that in the event of a spill,
adequate response resources are
available and can be mobilized within
the expanded HVPA. This will ensure a
timely response by vessel owners and
operators and the OSROs in an effort to
reduce the likelihood, and mitigate the
impact of an oil spill on the marine
environment that might occur in the
expanded HVPA.
B. Small Entities
Under the Regulatory Flexibility Act
(5 U.S.C. 601–612), we have considered
whether this final rule will have 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.
Regarding vessel owners and
operators, as previously discussed, this
final rule will codify the requirements
in the CGAA 2015 of an expanded
HVPA, and it will not require vessel
owners and operators to make changes
to VRPs. Therefore, owners and
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operators of vessels that transit the
HVPA will not incur additional VRP
modification costs as a result of this
final rule. However, as assumed earlier
for the purpose of this analysis, if
contracts would need to be modified, as
stated by one OSRO on the part of the
planholders, U.S. planholders will bear
some costs of this final rule as shown
earlier in the ‘‘Costs’’ portion of section
VII. A. of this preamble. We estimate
that each of the 15 U.S. planholders will
incur an average one-time cost of about
$267 to amend its contract with the
OSRO.
Also, regarding capital costs, it is
unclear whether or how these costs
impact vessel owners and operators
without knowledge of the OSROs’
billing structures. Additionally,
proprietary information is not available
that would allow us to determine the
distribution of costs among many vessel
owners and operators contracting with
each OSRO. Nevertheless, in our earlier
analysis, if we assume capital costs are
incurred by one of the OSROs and we
assume this cost would be passed along
equally to U.S. planholders in the form
of higher retainer fees, we estimate each
of the 13 U.S. planholders will incur an
annual cost of about $800 from one
particular OSRO in addition to $385 in
maintenance costs in years 2 through 10
of the analysis period for a total
planholder cost of about $1,185 in years
2 through 10 of the analysis period.
We assume for the purpose of this
analysis that the two OSROs that
provide response resource capabilities
to the HVPA in Puget Sound may incur
costs from this final rule and may likely
pass along these costs to planholders in
the form of higher retainer fees or
planholders may incur one-time costs to
amend their contracts with one of the
OSROs. Using the North American
Industry Classification System (NAICS)
codes for businesses and the Small
Business Administration’s (SBA) size
standards for small businesses, we
determined the size of each OSRO. One
OSRO has a primary NAICS code of
541618 with an SBA size standard of
$15 million, which is under the
subsector group 541 of the NAICS code
with the description of ‘‘Professional,
Scientific, and Technical Services.’’ The
other OSRO has a primary NAICS code
of 562998 with an SBA size standard of
$7.5 million, which is under the
subsector group 562 of the NAICS code
with the description of ‘‘Waste
Management and Remediation
Services.’’ Based on the information
discussed earlier in this section and
annual revenue data from publicly
available and proprietary sources,
PO 00000
Frm 00017
Fmt 4700
Sfmt 4700
26219
Manta and ReferenceUSA, neither
OSRO is considered to be small.
There are about 1,400 U.S.
planholders that have either a tank,
nontank, or combined VRP. Based on
the affected population of this final rule
relative to the size of the industry as a
whole, in this case U.S. VRP owners
(planholders), this final rule will
potentially affect 28 or about 2 percent
of the total population of U.S.
planholders in the United States. As
described earlier and dependent upon
the OSRO considered, we estimate a
U.S. planholder may incur an annual
cost between $385 and $1,185 in years
2 through 10 of the analysis period (and
between $267 and $800 in the initial
year because we assume maintenance
costs are not incurred in the initial year
of the analysis period) as a result of this
final rule. Therefore, the Coast Guard
certifies under 5 U.S.C. 605(b) that this
rule will not have a significant
economic impact on a substantial
number of small entities.
C. Assistance for Small Entities
Under section 213(a) of the Small
Business Regulatory Enforcement
Fairness Act of 1996,13 we want to assist
small entities in understanding this
final rule so that they can better
evaluate its effects on them and
participate in the rulemaking. If the
final rule will affect your small
business, organization, or governmental
jurisdiction and you have questions
concerning its provisions or options for
compliance, please consult Mr.
Christopher Friese (see FOR FURTHER
INFORMATION CONTACT). 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 will call for no new
collection of information under the
Paperwork Reduction Act of 1995.14
13 Public
14 44
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Law 104–121.
U.S.C. 3501–3520.
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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 that Order and have
determined that it is consistent with the
fundamental federalism principles and
preemption requirements described in
Executive Order 13132. Our analysis is
explained below.
As noted earlier in the preamble, this
rule implements section 710 of the
CGAA 2010, as amended by section 316
of the CGAA 2015, which specifically
directs the Coast Guard to amend 33
CFR 155.1020 by removing ‘‘Port
Angeles, WA’’ and replacing it with
‘‘Cape Flattery, WA.’’ This rule carries
out the Congressional mandate by
amending the regulations to reflect this
required change. Furthermore, this rule
does not appear to have a substantial
direct effect upon the laws or
regulations of the State of Washington.
Additionally, nothing in this rule
preempts or prohibits state removal
activities related to the discharge of oil
or hazardous substances under the
Federal Water Pollution Control Act.15
Therefore, this rule is consistent with
the fundamental federalism principles
and preemption requirements described
in Executive Order 13132.
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F. Unfunded Mandates Reform Act
The Unfunded Mandates Reform Act
of 1995 16 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.
Although this final 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 final 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 final rule meets applicable
standards in sections 3(a) and 3(b)(2) of
I. Protection of Children
We have analyzed this final rule
under Executive Order 13045
(Protection of Children from
Environmental Health Risks and Safety
Risks). This rule is not an economically
significant rule and will 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 will 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. We
discuss Executive Order 13175 in more
detail in section V of this preamble.
K. Energy Effects
We have analyzed this final 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 17 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 will 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 final rule does not use technical
standards. Therefore, we did not
consider the use of voluntary consensus
standards.
15 Section
16 2
311, codified at 33 U.S.C. 1321(o).
U.S.C. 1531–1538.
Executive Order 12988 (Civil Justice
Reform) to minimize litigation,
eliminate ambiguity, and reduce
burden.
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M. Environment
We have analyzed this final rule
under Department of Homeland
Security Management Directive 023–01
and Commandant Instruction
M16475.lD (COMDTINST M16475.1D),
which guide the Coast Guard in
complying with the National
Environmental Policy Act of 1969,18
and have made a determination that this
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 is categorically
excluded under section 6(b) of the
‘‘Appendix to National Environmental
Policy Act: Coast Guard Procedures for
Categorical Exclusions, Notice of Final
Agency Policy.’’ 19 This rule involves
Congressionally-mandated regulations
designed to protect the environment,
specifically, regulations implementing
the requirements of the Act (redefining
and enlarging the boundaries of the
existing Washington HVPA in the Strait
of Juan de Fuca and Puget Sound).
List of Subjects in 33 CFR Part 155
Alaska, Hazardous substances, Oil
pollution, Reporting and recordkeeping
requirements.
For the reasons discussed in the
preamble, the Coast Guard amends 33
CFR part 155 as follows:
Title 33—Navigation and Navigable
Waters
PART 155—OIL OR HAZARDOUS
MATERIAL POLLUTION PREVENTION
REGULATIONS FOR VESSELS
1. The authority citation for part 155
is revised to read as follows:
■
Authority: 3 U.S.C. 301 through 303; 33
U.S.C. 1225, 1231, 1321(j), 1903(b), 2735;
E.O. 12777, 56 FR 54757, 3 CFR, 1991 Comp.,
p. 351; Department of Homeland Security
Delegation No. 0170.1. Section 155.1020 also
issued under section 316 of Pub. L. 114–120.
Section 155.480 also issued under section
4110(b) of Pub. L. 101–380.
2. In § 155.1020, paragraph (13) of the
definition of ‘‘Higher volume port area’’:
■ a. Remove the words ‘‘Strait of Juan
De Fuca at Port Angeles’’ and add in
their place the words ‘‘Strait of Juan de
Fuca at Cape Flattery’’.
■ b. Add a note to read as follows:
■
§ 155.1020
Definitions.
*
*
*
18 42
17 15
PO 00000
U.S.C. 272 note.
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*
*
U.S.C. 4321–4370f.
FR 48244 (July 23, 2002).
06JNR1
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Higher volume port area * * *
(13) * * *
FOR FURTHER INFORMATION CONTACT:
Note 1 to paragraph (13) of this definition:
The western boundary of the Strait of Juan
de Fuca higher volume port area in this part
differs from that in § 154.1020 of this chapter.
The difference stems from section 316(b) of
the Coast Guard Authorization Act of 2015
(Pub. L. 114–120), which expands only the
definition in this part.
*
*
*
*
*
Dated: May 31, 2018.
Dana S. Tulis,
Director of Incident Management and
Preparedness Policy.
[FR Doc. 2018–12081 Filed 6–5–18; 8:45 am]
BILLING CODE 9110–04–P
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 52
daltland on DSKBBV9HB2PROD with RULES
[EPA–R03–OAR–2017–0739; FRL–9978–98–
Region 3]
Maria A. Pino, (215) 814–2181, or by
email at pino.maria@epa.gov.
SUPPLEMENTARY INFORMATION:
I. Background
On March 12, 2018 (83 FR 10650),
EPA published a notice of proposed
rulemaking (NPR) for the
Commonwealth of Pennsylvania. In the
NPR, EPA proposed approval of
Pennsylvania’s certification that
Pennsylvania’s SIP-approved emissions
statement regulation meets the
emissions statement requirement of
section 182(a)(3)(B) of the CAA for the
2008 ozone NAAQS. The formal SIP
revision was submitted by
Pennsylvania, through the Pennsylvania
Department of the Environmental
Protection (PADEP), on November 3,
2017.
II. Summary of SIP Revision and EPA
Analysis
In Pennsylvania’s November 3, 2017
SIP revision submittal, Pennsylvania
Approval and Promulgation of Air
states that the existing, SIP-approved
Quality Implementation Plans; PA;
rule found at 25 Pa. Code 135.21,
Emissions Statement Requirement for
‘‘Emissions Statements,’’ satisfies CAA
the 2008 Ozone Standard
section 182(a)(3)(B) for the 2008 ozone
AGENCY: Environmental Protection
NAAQS. Under CAA section
Agency (EPA).
182(a)(3)(B), states are required to have
an emission statements rule for ozone
ACTION: Final rule.
nonattainment areas. In addition, states
SUMMARY: The Environmental Protection in the ozone transport region are
Agency (EPA) is approving a state
required to have an emission statement
implementation plan (SIP) revision
rule statewide, including for attainment
submitted by the Commonwealth of
areas. See CAA sections 182(a)(3)(B),
Pennsylvania. This SIP revision fulfills
182(f), and 184(b)(2). EPA previously
Pennsylvania’s emissions statement
approved Pennsylvania’s emissions
requirement for the 2008 ozone national statement rule for the 1979 1-hour ozone
ambient air quality standard (NAAQS).
standard, 25 Pa. Code 135.21, into the
EPA is approving these revisions in
Pennsylvania SIP. See 60 FR 2881
accordance with the requirements of the (January 12, 1995). EPA has determined
Clean Air Act (CAA).
that 25 Pa. Code 135.21, which is
DATES: This final rule is effective on July currently in the Pennsylvania SIP, is
6, 2018.
appropriate to address the emissions
ADDRESSES: EPA has established a
statement requirement for the 2008
docket for this action under Docket ID
ozone NAAQS. Therefore, EPA is
Number EPA–R03–OAR–2017–0739. All approving this SIP revision that certifies
documents in the docket are listed on
that 25 Pa. Code 135.21 is adequate to
the https://www.regulations.gov website. satisfy the emissions statement
Although listed in the index, some
requirement for the 2008 ozone NAAQS.
information is not publicly available,
Other specific requirements of the
e.g., confidential business information
Pennsylvania’s emissions statement rule
(CBI) or other information whose
and the rationale for EPA’s proposed
disclosure is restricted by statute.
action are explained in the NPR and
Certain other material, such as
will not be restated here.
copyrighted material, is not placed on
III. Public Comments
the internet and will be publicly
EPA received twenty-three public
available only in hard copy form.
comments on our March 12, 2018 NPR
Publicly available docket materials are
proposing to approve Pennsylvania’s
available through https://
November 3, 2017 submittal. All
www.regulations.gov, or please contact
the person identified in the FOR FURTHER comments received were not specific to
this action, and thus are not addressed
INFORMATION CONTACT section for
here.
additional availability information.
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26221
IV. Final Action
EPA is approving the Commonwealth
of Pennsylvania’s November 3, 2017 SIP
revision submittal, which addresses the
2008 8-hour ozone NAAQS emissions
statement requirement, as a revision to
the Pennsylvania SIP.
V. Statutory and Executive Order
Reviews
A. General Requirements
Under the CAA, the Administrator is
required to approve a SIP submission
that complies with the provisions of the
CAA and applicable federal regulations.
42 U.S.C. 7410(k); 40 CFR 52.02(a).
Thus, in reviewing SIP submissions,
EPA’s role is to approve state choices,
provided that they meet the criteria of
the CAA. Accordingly, this action
merely approves state law as meeting
federal requirements and does not
impose additional requirements beyond
those imposed by state law. For that
reason, this action:
• Is not a ‘‘significant regulatory
action’’ subject to review by the Office
of Management and Budget under
Executive Orders 12866 (58 FR 51735,
October 4, 1993) and 13563 (76 FR 3821,
January 21, 2011);
• Is not an Executive Order 13771 (82
FR 9339, February 2, 2017) regulatory
action because SIP approvals are
exempted under Executive Order 12866.
• Does not impose an information
collection burden under the provisions
of the Paperwork Reduction Act (44
U.S.C. 3501 et seq.);
• Is certified as not having a
significant economic impact on a
substantial number of small entities
under the Regulatory Flexibility Act (5
U.S.C. 601 et seq.);
• Does not contain any unfunded
mandate or significantly or uniquely
affect small governments, as described
in the Unfunded Mandates Reform Act
of 1995 (Pub. L. 104–4);
• Does not have federalism
implications as specified in Executive
Order 13132 (64 FR 43255, August 10,
1999);
• Is not an economically significant
regulatory action based on health or
safety risks subject to Executive Order
13045 (62 FR 19885, April 23, 1997);
• Is not a significant regulatory action
subject to Executive Order 13211 (66 FR
28355, May 22, 2001);
• Is not subject to requirements of
section 12(d) of the National
Technology Transfer and Advancement
Act of 1995 (15 U.S.C. 272 note) because
application of those requirements would
be inconsistent with the CAA; and
• Does not provide EPA with the
discretionary authority to address, as
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[Federal Register Volume 83, Number 109 (Wednesday, June 6, 2018)]
[Rules and Regulations]
[Pages 26212-26221]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-12081]
=======================================================================
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DEPARTMENT OF HOMELAND SECURITY
Coast Guard
33 CFR Part 155
[Docket No. USCG-2011-0576]
RIN 1625-AB75
Higher Volume Port Area-State of Washington
AGENCY: Coast Guard, DHS.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Coast Guard is redefining the boundaries of the existing
higher volume port area in the Strait of Juan de Fuca and Puget Sound,
in Washington. This rulemaking is required to make the Code of Federal
Regulations consistent with statute, and is related to the Coast
Guard's maritime stewardship (environmental protection) mission.
DATES: This final rule is effective July 6, 2018.
ADDRESSES: Documents mentioned in this preamble as being available in
the docket are part of docket USCG-2011-0576, which is available at
https://www.regulations.gov.
FOR FURTHER INFORMATION CONTACT: If you have questions on this rule,
call or email Mr. Christopher Friese, CG-MER-1, Coast Guard; telephone
202-372-1227, email [email protected].
SUPPLEMENTARY INFORMATION:
Table of Contents for Preamble
I. Abbreviations
II. Basis and Purpose
III. Regulatory History
IV. Background
V. Discussion of Comments on the Notice of Proposed Rulemaking
VI. Discussion of the Rule
VII. 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
CGAA 2010 Coast Guard Authorization Act of 2010 (Pub. L. 111-281,
124 Stat. 2905, Oct. 15, 2010)
CGAA 2015 Coast Guard Authorization Act of 2015 (Pub. L. 114-120,
130 Stat. 27, Feb. 8, 2016)
CFR Code of Federal Regulations
COMDTINST Commandant Instruction
CRF Capital recovery factor
FR Federal Register
GSA General Services Administration
HVPA Higher volume port area
MISLE Marine Information for Safety and Law Enforcement
NAICS North American Industry Classification System
NPRM Notice of proposed rulemaking
NSFCC National Strike Force Coordination Center
OMB Office of Management and Budget
[[Page 26213]]
OSRO Oil spill removal organization
Pub. L. Public Law
SBA Small Business Administration
Stat. Statute
U.S.C. United States Code
VRP Vessel response plan
II. Basis and Purpose
The purpose of this rule is to align the list of higher volume port
areas (HVPAs) in 33 CFR 155.1020 with statutory changes made to the
State of Washington's higher volume port area, the Washington HVPA.
Section 316 of the Coast Guard Authorization Act of 2015 (CGAA 2015)
expanded the Washington HVPA.\1\ The Washington HVPA had included the
Strait of Juan de Fuca seaward of Port Angeles, but section 316
expanded it immediately to an area seaward of Cape Flattery, which is
where the Strait of Juan de Fuca joins the Pacific Ocean. Regulations
in 33 CFR 155.1020 still reflect the prior, Port Angeles location.
Therefore, this rulemaking updates the Code of Federal Regulations
(CFR) to match the statutory requirement already in force.
---------------------------------------------------------------------------
\1\ Public Law 114-120, 130 Stat. 27 (2016).
---------------------------------------------------------------------------
This rule is issued in accordance with section 316 of the CGAA
2015. The legal basis to update the CFR is Title 33 of the United
States Code (U.S.C.) section 1231 and 1321(j), which require the
Secretary of the department in which the Coast Guard is operating to
issue regulations necessary for implementing the Ports and Waterways
Safety Act, and require the President to issue regulations mandating
response plans and other measures to protect against oil and hazardous
substance spills. The President's authority under 33 U.S.C. 1321(j) is
delegated to the Secretary by Executive Order 12777, and the
Secretary's authority is delegated to the Coast Guard by DHS Delegation
No. 0170.1(II)(70), (73), and (80).
III. Regulatory History
On October 15, 2010, the Coast Guard Authorization Act of 2010
(CGAA 2010) directed the Coast Guard to initiate a rulemaking to modify
the definition of ``higher volume port area'' in 33 CFR 155.1020, to
expand the Washington HVPA past Cape Flattery.\2\ On December 7, 2011,
the Coast Guard published a notification \3\ announcing our intent to
comply with the mandate in section 710 of the CGAA 2010. On May 22,
2015, the Coast Guard published a notice of proposed rulemaking (NPRM)
\4\ to revise the boundaries of the existing HVPA in the Strait of Juan
de Fuca and Puget Sound. The NPRM had a 90-day comment period that
closed on August 20, 2015. No public meeting was requested, and none
was held.
---------------------------------------------------------------------------
\2\ Public Law 111-281, section 710, 124 Stat. 2986 (2010).
\3\ 76 FR 76299.
\4\ 80 FR 29582.
---------------------------------------------------------------------------
After the close of the NPRM comment period, the CGAA 2015 expanded
the HVPA immediately without requiring rulemaking before the change
took effect. The Coast Guard applies the requirements of the expanded
HVPA of the CGAA 2015 and has done so since the effective date of the
Act. Although rulemaking is not required to implement the statute, a
conforming change to the CFR is still necessary to ensure the
regulations align with the statute. In this final rule, the Coast Guard
is making conforming changes and responding to public comments received
on the proposed rule. In Section V of this preamble, we discuss the
comments that we received and how we addressed them.
IV. Background
Oil or hazardous material pollution prevention regulations for U.S.
and foreign vessels operating in U.S. waters, appear in Coast Guard
regulations at 33 CFR part 155. Those regulations require a vessel
response plan (VRP) describing measures that the vessel owner or
operator has taken or will take to mitigate or respond to an oil spill
from the vessel. The VRP must demonstrate the vessel's ability,
following a spill, to secure response resources within given time
periods. These measures typically include the services of nearby
response resources under a contract between the vessel's owner or
operator and an oil spill removal organization (OSRO) that owns the
response resources. The regulations provide for three different
timeframes within which a combination of required response resources
must arrive on the scene, which are described as Tiers 1, 2, and 3.
In 33 CFR part 155, subparts D (petroleum oil as cargo), F (animal
fat or vegetable oil as cargo), G (non-petroleum oil as cargo), and J
(petroleum oil as fuel or secondary cargo) all share the same
definition of ``higher volume port area.'' Required response times are
significantly reduced in HVPAs. For example, Tier 1 response times for
an oil tanker within an HVPA are half of that required for the same
vessel operating in open ocean. As defined in 33 CFR 155.1020, the
Strait of Juan de Fuca and Puget Sound, WA, constitute one of the 14
HVPAs designated around the country.
Since 1996, 33 CFR 155.1020 has defined the seaward boundary of the
Washington HVPA as an arc 50 nautical miles seaward of the entrance to
Port Angeles, WA. Port Angeles is approximately 62 nautical miles
inland from the Pacific Ocean entrance to the Strait of Juan de Fuca,
at Cape Flattery, WA, and therefore the Washington HVPA, as defined in
33 CFR 155.1020, did not include any Pacific Ocean waters. Section 710
of the CGAA 2010 required the Coast Guard to initiate a rulemaking to
relocate the HVPA's arc so that it extended seaward from Cape Flattery,
not Port Angeles. This added 50 nautical miles of Pacific Ocean water
and an additional 12 nautical miles in the western portion of the
Strait of Juan de Fuca.\5\
---------------------------------------------------------------------------
\5\ Waters discussed in this preamble are shown on National
Oceanic and Atmospheric Administration chart 18460 (Cape Flattery,
WA) and chart 18465 (Port Angeles, WA).
---------------------------------------------------------------------------
V. Discussion of Comments on the Notice of Proposed Rulemaking
We received comments on our NPRM from five sources: An
environmental group, two state environmental agencies, an Indian tribal
council, and an individual resident of the region. These public
comments could not anticipate the 2015 legislation that was enacted
after the close of the comment period in August 2015, and which
overwrote the 2010 legislation that prompted the Coast Guard to issue
the NPRM. However, the Coast Guard addresses all the public comments
here in order to improve clarity and foster better relationships with
stakeholders.
Legislative intent. The tribal council explained its role in
developing the 2010 legislation mandating this rulemaking, and said the
purpose of the legislation was to ``enhance oil spill response capacity
in the Strait of Juan de Fuca, commensurate with the history of oil
spills in this region, the sensitivity of the area's natural resources
and the risk for future spills from increasing tank and non-tank vessel
traffic.'' The council asserted that the NPRM did not reflect this
intent in the proposed regulatory text.
Response: We acknowledge the council's role in developing the 2010
legislation. However, the text of section 710 is unambiguously limited
to the expansion of the HVPA. Section 316 of CGAA 2015 expanded the
Washington HVPA without the need for the Coast Guard to conduct a
rulemaking. Neither Act gave the Coast Guard discretion to choose a
different size or location for the Washington HVPA, or provided other
direction regarding this HVPA.
Adequacy of response resources. The environmental group, one of the
state environmental agencies, the tribal council, and the local
resident all expressed concern that expansion of the
[[Page 26214]]
HVPA would reduce the ability of OSROs to respond adequately to oil or
other hazardous substance spills throughout the HVPA. The local
resident and the state environmental agency said we did not provide
sufficient details on how we will implement the expanded HVPA. The same
group asked us to coordinate with governmental agencies and regional
and tribal groups to collectively determine how best to balance
response assets in the HVPA. The environmental group and the resident
expressed concern over the potential impact of anticipated increases in
the number of vessels carrying those substances in the HVPA.
Response: Title 33 CFR part 155 does not allow the Coast Guard to
direct OSROs where equipment must be staged, or require OSROs to
purchase any additional equipment. The Coast Guard requires that OSROs
demonstrate their ability to respond adequately to a spill within an
HVPA's response timelines. Thus, there is no provision to coordinate
with governmental agencies and regional and tribal groups to
collectively determine how best to balance response assets in the HVPA.
The Coast Guard National Strike Force Coordination Center (NSFCC)
verifies OSRO capability through Preparedness Assessment Visits and
response time calculations. The same method is used in classifying all
OSROs. Two OSROs are currently classified for coverage in the HVPA.
Vessel owners or operators need only reference the classified OSRO in
their VRP. If an owner or operator chooses to use a non-classified
OSRO, then they must list all the equipment and describe how they meet
the requirements in appendix B to 33 CFR part 155. All VRPs receive the
same detailed review for response adequacy to ensure the vessel's
readiness for response in the geographic area it is operating.
We acknowledge the concerns of commenters with regard to reduced
response capabilities throughout the HVPA. This rulemaking in no way
reduces or changes any response requirements that currently exist.
Implementation of the revised HVPA does not change the requirement of
vessel owners and operators to identify classified OSROs or identify
their own equipment sufficient to meet part 155 appendix B
requirements. This is required in order for the vessel to receive an
approved VRP necessary for operating in the HVPA.
We also acknowledge concerns about increased vessel transits and,
it is implied, a higher likelihood of spills. VRPs are for response
planning purposes. Consistent with the National Planning Criteria, they
are evaluated using the worst-case discharge from a single vessel.
Pre-NPRM tribal consultation. The tribal council ``strongly
disagree[s]'' with our analysis of Executive Order 13175 (Indian Tribal
Governments) requirements, which concluded that, for this rulemaking,
tribal consultation is not required by the Executive Order. The council
says we should have consulted with it because of our shared trust
responsibility for the commenter's treaty protected area.
Response: The Coast Guard enjoys a close working relationship with
many tribal governments, including the council represented by the
commenter. The Coast Guard welcomes ongoing communications and informal
consultation, as well as suggestions for improving communications with
tribes. The consultation described in section 5(b) of Executive Order
13175 is triggered by a regulation that has tribal implications and
imposes substantial direct compliance costs on Indian tribal
governments. Section 5(b) Executive Order 13175 also only requires
consultation when the regulation being developed ``is not required by
statute.'' In this case, section 710 of CGAA 2010 required that the
Coast Guard promulgate a regulation to expand the Washington HVPA. As
discussed above, however, after the close of the NPRM comment period,
section 316 of CGAA 2015 expanded the Washington HVPA by statutory
mandate. Therefore, the Coast Guard maintains that the consultation
described in Executive Order 13175 does not apply. As noted, however,
we do not believe that the absence of Executive Order 13175
consultation prevents the Coast Guard from receiving and incorporating
input from tribal governments. In the 5 years between the 2010
legislation and the 2015 publication of the NPRM, the Coast Guard met
or spoke with tribal representatives about the Washington HVPA
expansion. We appreciated the input and look forward to continued
collaboration with the tribal representatives.
Future tribal consultation. The tribal council asked us to enter
into government-to-government consultation after the rule is adopted,
and to develop a protocol for consultation and coordination going
forward. The council also suggested that we consult with the State of
Washington to ``establish a harmonized view about how industry and
OSROs will be expected to comply with the HVPA shift.''
Response: The Coast Guard invites communication and dialogue with
tribal councils in order to maintain a positive working relationship.
The Coast Guard's Thirteenth District, in particular, values its
longstanding and ongoing relationship with the Makah Tribal Council.
The Thirteenth District meets with tribes, and will continue to meet
with tribes, to discuss a variety of issues. The involvement of local
units like the Thirteenth District is essential for ensuring the Coast
Guard's proper understanding of stakeholder input, and the Thirteenth
District is best positioned to work with the council, through their
longstanding and ongoing relationship as memorialized in their 2013
Memorandum of Agreement, on any implementation arrangements that are
appropriate for discussion with the public. Although the process
described in Executive Order 13175 is not the appropriate mechanism for
consultation and coordination after the rule becomes final, the Coast
Guard is committed to addressing concerns raised by our regulations and
their implementation.
As described above, this rule makes no changes to the requirements
for planholders or for classifying OSROs, so we do not anticipate a
shift in implementation process. Through existing practices, the NSFCC
confirms that classified OSROs meet their regulatory responsibilities.
Owners or operators using non-classified OSROs must describe in their
VRP how they meet appendix B requirements. Although we do not see a
specific need for formal consultation with the State of Washington, the
Thirteenth Coast Guard District maintains open lines of communication
with the State. The Coast Guard will continue to work with its Federal,
State, local, and tribal partners to ensure response readiness
following publication of this final rule.
Additional resources and Neah Bay restaging. One of the state
environmental agencies said that the expanded HVPA ``should result in
the acquisition and staging of additional equipment that is capable of
open water recovery and storage in Neah Bay.'' The State agency also
said that, in approving VRPs and evaluating OSROs identified by those
VRPs, we should consider whether they reflect the restaging of response
assets in Neah Bay. The tribal council said our rule should ensure that
``additional equipment is purchased and staged in a geographic location
to promptly respond to a spill in the western reaches of the expanded
HVPA, without adversely impacting responses'' elsewhere in the HVPA,
and said Neah Bay is the ``logical and appropriate'' staging area for
additional response equipment, which should be rated for an open-ocean
environment.
[[Page 26215]]
Response: While Neah Bay may be a logical and appropriate location
for the staging of response equipment, other locations may also be
logical and appropriate. The Coast Guard does not direct OSROs to where
equipment must be staged, or require OSROs to purchase any additional
equipment. The Coast Guard requires that OSROs demonstrate their
ability to respond adequately to a spill within an HVPA's response
timelines.
Benefits. One of the state environmental agencies and the tribal
council asked what basis we had for stating in the NPRM \6\ that of 283
spills of oil or other hazardous substances in the affected area
between 1995 and 2013, we could identify no spill response that would
have benefitted from the HVPA's expansion. The council cited three oil
spills that adversely affected the tribe including the General Meigs,
the Nestucca, and the Tenyo Maru. The agency and the council both noted
that we did not ask them for information that might have changed that
conclusion. The council expressed concern over ``the limited historical
oil spill data'' used in our analysis, and ``formally request[ed]''
that we conduct ``a more rigorous analysis of historical oil spills''
and give the commenter the ``opportunity to review the Coast Guard's
methodology regarding'' what effect HVPA expansion might have had on
the response to previous spills.
---------------------------------------------------------------------------
\6\ NPRM, 80 FR 29582 at 29586, col. 3 (May 22, 2015).
---------------------------------------------------------------------------
Response: Although Congress expanded the HVPA after these comments
were submitted, making our spill analysis redundant, it may be helpful
to explain the context for our regulatory analyses. The statement
referred to by these commenters appeared in the ``regulatory analyses''
for the NPRM.\7\ As explained in the NPRM, based on information from
Coast Guard personnel who have experience in casualty case
investigations and analysis, we found none of the 283 cases or spills
that would have benefited from the HVPA expansion. As for the three
spills cited by the council, we cannot conclude that the expanded HVPA
would have mitigated the damage caused by those incidents. The 33 CFR
part 155 regulations do not apply to a warship or naval auxiliary
vessel such as the troopship General Meigs.\8\ The Nestucca and Tenyo
Maru incidents did not occur within the existing or expanded bounds of
the HVPA. We were therefore unable to use these incidents in our
benefit analysis for this rulemaking.
---------------------------------------------------------------------------
\7\ NPRM, 80 FR 29582 at 29586-29587 (May 22, 2015).
\8\ 33 CFR 155.100(b)(1).
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VI. Discussion of the Rule
This rule is substantively unchanged from what we proposed in the
NPRM. It expands the boundaries of the Washington HVPA in the CFR to
make those boundaries consistent with section 316 of the CGAA 2015. The
old definition of ``higher volume port area'' in 33 CFR 155.1020
includes any water area within 50 nautical miles seaward of the
entrance to the Strait of Juan De Fuca at Port Angeles, WA to and
including Cape Flattery, WA. In order to align the regulations with
section 316 of the CGAA 2015, we are amending that definition by
striking ``Port Angeles, WA'' and inserting ``Cape Flattery, WA'' in
its place.
Port Angeles lies about 62 nautical miles east of the entrance to
the Strait of Juan de Fuca. By moving the arc so that it centers on
Cape Flattery, which lies at the entrance to the Strait, the redefined
Washington HVPA will cover an additional 50 nautical miles of Pacific
Ocean water, while continuing to cover all the waters now included
within the current HVPA. The larger Washington HVPA may affect the time
and resources needed to respond to an oil spill from a vessel because
it is harder and more time-consuming to transit rough Pacific Ocean
waters than it is to transit the sheltered waters of the Strait and the
Sound. We discuss these possibilities in more detail in the Regulatory
Analyses section that follows.
This rule also makes two editorial changes in 33 CFR 155.1020.
First, we correct the spelling of ``Strait of Juan De Fuca'' to
``Strait of Juan de Fuca.'' Second, we add a note to paragraph (13) of
the definition of ``higher volume port area'' to highlight that the
western boundary of the Washington HVPA in 33 CFR part 155 differs from
that in 33 CFR part 154 for facilities transferring oil or hazardous
materials in bulk. The difference stems from section 316 of the CGAA
2015 (Pub. L. 114-120) and the statutory language that specifically
addresses the definition in 33 CFR part 155. The statutory expansion in
the CGAA 2015 is not written to address 33 CFR part 154, and therefore
33 CFR subchapter O will contain two differing definitions of ``higher
volume port area'' for the Straits of Juan de Fuca.
VII. Regulatory Analyses
We developed this final rule after considering numerous statutes
and Executive orders related to this 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. As this rule is not
a significant regulatory action, this rule is exempt from the
requirements of Executive Order 13771. See OMB's Memorandum ``Guidance
Implementing Executive Order 13771, Titled `Reducing Regulation and
Controlling Regulatory Costs''' (April 5, 2017). A regulatory analysis
follows.
We received no public comments on the estimated costs of the
proposed rule, nor did we receive any additional information or data
that alters our assessment of the proposed rule. However, we received
two public comments on the benefit analysis presented in the proposed
rule regarding the same topic. We presented our full response to these
two public comments in section V of this preamble. Because no casualty
case mentioned in one of the comments would have benefited from the
expanded HVPA, we also determined that our assessment of the benefits
of the proposed rule remains unchanged. Therefore, we adopt the
preliminary regulatory analysis for the proposed rule as final. A
summary of that analysis follows.
This final rule is needed to conform Coast Guard regulations to the
statutory changes made by section 316 of CGAA 2015. Currently, the CFR
says the Washington HVPA boundary is
[[Page 26216]]
measured from Port Angeles in a 50 nautical mile seaward arc westward
to the Pacific Ocean. This final rule will amend the definition of the
term ``higher volume port area'' to match the relocated point at which
the seaward arc is measured from Port Angeles to Cape Flattery, WA, an
approximately 62 nautical mile westward shift. As a result, the
Washington HVPA will cover an additional 50 nautical miles of open
ocean and an additional 12 nautical miles in the western portion of the
Strait of Juan de Fuca. A VRP must list the OSRO provider that the
vessel owner or operator has contracted with and stipulate the vessel's
ability to secure response resources within specific regulatory
timeframes (Tiers 1, 2, and 3) in the event of an oil spill. This final
rule will codify the changes delineated in the CGAA 2015 and it will
not require changes to VRPs.
Affected Population
Part 155 of 33 CFR directly applies to and regulates vessel owners
and operators. The final rule has the potential to impact vessel
response planholders covering vessels that transit the Washington HVPA
and OSROs that provide response resources in the event of an oil spill.
Based on the Coast Guard's review of VRPs, two OSROs may be impacted by
the final rule. One OSRO has about 500 response resource contracts and
the other OSRO has about 650 contracts with planholders that own
vessels that call on the expanded Washington HVPA. For the OSRO that
has 500 contracts, about 3 percent or 15 of those contracts are with
U.S. planholders; for the OSRO that has 650 contracts, about 2 percent
or 13 of those contracts are with U.S. planholders.
Costs
Vessel owners and operators will not need to revise or modify a
current VRP to take into account the expansion of the HVPA. Current
VRPs already specify one or both of the OSROs that provide response
resources to vessel owners and operators in the affected waters. Vessel
owners and operators must only list the NSFCC-classified OSRO by name
and include the contact information for each OSRO in the VRP; no other
information or details regarding the geographic location of response
equipment are required in the VRP.
In addition to identifying the OSRO in the VRP, vessel owners and
operators must ensure the availability of response resources from the
OSRO through a contract or other approved means. Depending on how the
contract language is formulated, a contract may need to be modified to
reflect the change in the HVPA geographical definition. For example,
one OSRO provided information which stated that contracts will need to
be modified slightly to incorporate the geographic change of the
expanded HVPA, while the other OSRO provided information which stated
that no changes or modifications to existing contracts are necessary on
the part of either OSRO or the planholders. For the purpose of this
analysis, we estimate costs to modify a contract for the planholders of
the OSRO that stated that changes are necessary. This OSRO has about
500 planholders with written contractual agreements to secure response
resource services in the event of an oil spill; of this amount, only
about 3 percent or 15, are with U.S. planholders. Based on information
we obtained from industry in formulating the Nontank Vessel Response
Plan final rule (78 FR 60100), it will take a general and operations
manager approximately 2 hours of planholder time to amend the contract
and send the contract to the OSRO for approval. If a plan preparer
amends the contract on behalf of the planholder, we estimate it will
take the same amount of time. We found that 36 percent of planholders
perform this work internally and 64 percent hire a plan preparer to
perform this work on their behalf. The amendment of a contract is a
one-time cost; we estimate little or no submission cost for planholders
because nearly 100 percent of contracts are submitted by email to the
responsible OSRO.
Accounting for planholders who perform the work internally and
using the Bureau of Labor Statistics (BLS) May 2016 National Industry-
Specific Occupational Employment and Wage Estimates for General and
Operations Manager (Occupation Code 11-1021), we obtain a mean hourly
wage rate of $73.98. We then use BLS' 2016 Employer Cost for Employee
Compensation databases to calculate and apply a load factor of 1.52 to
obtain a loaded hourly labor rate of about $112.45 for this
occupation.\9\ For plan preparers, we obtained publicly available fully
loaded billing rates for senior regulatory consultants and program
managers from three environmental service companies using the General
Services Administration's (GSA) Federal Acquisition eLibrary for
service contracts.\10\ We took the average of these three rates to
obtain a fully loaded hourly wage rate of $145.11[we used three labor
categories: Senior Regulatory Consultant with a wage rate of $184.22
for contract number GS-10F-0263U (page number 16), Program Manager with
a wage rate of $115.86 for contract number GS-10F-0074T (page number
4), and Senior Project Manager with a wage rate of $135.25 for contract
number GS-10F-0335R (page number 32)]. Of about 500 planholders who
have contracts with this OSRO, only about 15 are U.S. planholders. Of
the 15 U.S. planholders, about 36 percent will amend the contract
internally. We estimate the one-time cost to these planholders is about
$1,214 ($112.45 x 2 hours x 500 planholders x 0.03 x 0.36, rounded).
For the remaining 64 percent of U.S. planholders who have plan
preparers amend the contracts on their behalf, we estimate the one-time
cost is about $2,786 ($145.11 x 2 hours x 500 planholders x 0.03 x
0.64, rounded); the total combined estimated one-time cost to U.S.
planholders to amend the contracts is about $4,001, rounded and
undiscounted. We estimate the average one-time or initial cost for each
U.S. planholder to amend a contract is about $267 ($4,001/15 U.S.
planholders). We estimate the 10-year discounted cost is about $3,739
using a 7 percent discount rate and the annualized cost is about $532.
---------------------------------------------------------------------------
\9\ Information can be viewed at https://www.bls.gov/oes/2016/may/naics3_483000.htm. Once on this page, scroll down to review the
wage rate for 11-1021, General and Operations Manager with a mean
hourly wage of $73.98. A loaded labor rate is what a company pays
per hour to employ a person, not the hourly wage. The loaded labor
rate includes the cost of benefits (health insurance, vacation,
etc.). The load factor for wages is calculated by dividing total
compensation by wages and salaries. For this analysis, we used BLS'
Employer Cost for Employee Compensation/Transportation and Materials
Moving Occupations, Private Industry report (Series IDs,
CMU2010000520000D and CMU2020000520000D for all workers using the
multi-screen data search). Using 2016 Q4 (Quarter 4) data, we divide
the total compensation amount of $28.15 by the wage and salary
amount of $18.53 to get the load factor of 1.52. See the following
website, https://www.bls.gov/ncs/ect/data.htm. Once on this page,
scroll down to ``Pay and Benefits'' and click the multi-screen data
search button to access the database, ``Employer Cost for Employee
Compensation.'' We used the mean hourly wage rate of $73.98 and
multiplied by 1.52 to obtain a loaded hourly wage rate of about
$112.45.
\10\ GSA Contract GS-10F-0263U accessed 05/24/2017, https://www.gsaadvantage.gov/ref_text/GS10F0263U/0ME78D.2QP6TJ_GS-10F-0263U_GSAADVANTAGEYR6.PDF; GSA Contract GS-10F-0074T accessed 05/24/
2017, https://www.gsaelibrary.gsa.gov/ElibMain/contractorInfo.do?contractNumber=GS-10F-0074T&contractorName=ENVIRONMENTAL+MANAGEMENT+SERVICES+INC&executeQuery=YES (once at the GSA eLibrary web page, the reader must use the
hyperlink labeled ``Contractor T&Cs/Pricelist'' to obtain the wage
rate used in this analysis), and https://www.gsaadvantage.gov/ref_text/GS10F0335R/0OMBPD.3723M6_GS-10F-0335R_ENVCOSTMGMTTANDC071315.PDF; accessed 05/24/2017.
---------------------------------------------------------------------------
The remaining 485 planholders are foreign. For 36 percent of them
who will amend the contracts internally, we
[[Page 26217]]
estimate the one-time cost is about $39,268 ($112.45 x 2 hours x 485
planholders x 0.36, rounded). For the remaining 64 percent of foreign
planholders who have a plan preparer amend the contracts on their
behalf, we estimate the one-time cost is about $90,084 ($145.11 x 2
hours x 485 planholders x 0.64, rounded); combined the total estimated
one-time cost to foreign planholders to amend the contracts is about
$129,352, rounded, or about $267 per planholder ($129,352/485 foreign
planholders).
The final category of potential costs relates to the OSROs'
abilities to meet the specified response times in the new geographic
area of the HVPA. Based on information provided to the Coast Guard, one
OSRO stated that additional response equipment will not be required and
capital expenditures will not be necessary as a result of the expanded
HVPA under current Coast Guard OSRO classification guidelines. Based on
data from the other OSRO, we estimate that total initial capital costs
could be as high as $5.5 million for temporary storage equipment and
warehousing with annual capital recurring costs of approximately
$250,000 for equipment maintenance, and up to $1 million for barge
recertification (included in the $5.5 million estimate), warehousing,
and other necessary resource equipment. However, we lack independent
methods to verify these estimates. Moreover, the actual costs the OSRO
may incur depend considerably on how they choose to comply with our
regulations, which give OSROs substantial flexibility with respect to
pre-positioning response resources.
To the extent one OSRO will incur additional costs due to this
final rule (such as increased capitalization costs), we expect that
these costs are generally passed onto their VRP planholders equally,
although the OSRO that provided this information conceded that this was
speculative at this point due to the uncertainty of expenditures that
may be needed as described below. Using the highest value of capital
costs provided to us of $5.5 million, we use the capital recovery cost
factor to determine the amount needed annually to recover this payout
since we assume the OSRO will finance the expenditures and attempt to
recapture them equally over the life of the equipment. The capital
recovery factor (CRF), or ratio as it is often referred to, is the
ratio of a constant annuity to the present value of the annuity over a
given period of time using an acceptable discount rate, as in this
case, 7 percent. The ratio also includes the general life expectancy of
the investment and can be simply described as the ``share of the net
cost that must be recovered each year to `repay the cost of the fixed
input at the end of its useful life.' '' \11\ If we use a standard life
expectancy of 20 years, we calculate the net amount that must be
recovered by the OSRO annually is about $519,161, undiscounted (The
capital recovery factor is written as:
---------------------------------------------------------------------------
\11\ See https://web.stanford.edu/group/FRI/indonesia/courses/manuals/pam/pam-book/Output/chap9.html.
[GRAPHIC] [TIFF OMITTED] TR06JN18.000
where i is the discount rate and n is the number of years or the life
expectancy of the investment).\12\ If we assume this cost is
distributed equally over the 650 planholders (U.S. and foreign
planholders who own vessels that transit the HVPA) under contract with
this OSRO, the amount needed to be recovered by the OSRO to recapture
this initial investment is estimated is about $800 (rounded from
$798.71) from each planholder annually, most likely in the form of
higher retainer fees. However, only about 2 percent, or 13 of the 650
planholders are U.S. planholders. Therefore, for the 13 U.S.
planholders, we estimate the total capital cost of this final rule is
about $10,400 (650 planholders x 0.02 x $800) annually, undiscounted,
in addition to annual maintenance costs of about $385 per planholder
($250,000/650 planholders), undiscounted, in years 2 through 10 of the
analysis period. We estimate the total 10-year discounted cost to the
13 U.S. planholders is about $75,390 using a 7 percent discount rate
(the 10-year discounted cost is estimated is about $91,624 using a 3
percent discount rate) and the annualized cost is about $10,741.
---------------------------------------------------------------------------
\12\ We calculate the value of the numerator to be about 0.27
and the value of the denominator to be about 2.87, rounded. The CRF
is then calculated to be about 0.0944. Multiplying by the initial
investment of $5.5 million, we obtain an annualized recovery amount
of about $519,161 rounded, or the annualized amount the OSRO must
recover to repay for its initial investment.
---------------------------------------------------------------------------
For all 28 U.S. planholders, we estimate the total initial-year
cost is about $14,401 ($4,001 + $10,400), undiscounted. We estimate the
total annual recurring cost is about $10,785 ($10,400 + $385),
undiscounted (see Table 1 for further details).
It follows that the remaining 637 planholders are foreign. Again,
if we assume this OSRO passes along its capital cost in the form of
higher retainer fees to foreign planholders, we estimate the total
capital cost of this final rule to foreign planholders is about
$509,600 (637 x $800) annually, undiscounted, in addition to annual
maintenance costs of about $245,000 (637 x $385), undiscounted, in
years 2 through 10 of the analysis period. We estimate the total 10-
year discounted cost to foreign planholders is about $3.6 million using
a 7 percent discount rate (the 10-year discounted cost is estimated is
about $4.3 million using a 3 percent discount rate). As stated earlier,
we neither have knowledge of the OSROs billing structure nor how costs
are distributed among planholders, although in our discussion with one
OSRO, we learned that the composition of a planholder's vessel fleet
affects the amount of the retainer fee because vessels such as nontank
ships require different response resources as opposed to towing
vessels, for example.
Table 1 summarizes the total estimated cost of the final rule to 28
U.S. planholders over a 10-year period of analysis.
Table 1--Summary of Estimated Costs of the Final Rule to U.S. Planholders
[7 Percent discount rate, 10-year period of analysis, 2017 dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
Update contracts for 15 U.S. OSRO equipment and other Total costs
planholders capital costs for 13 U.S. -------------------------------
Year -------------------------------- planholders
-------------------------------- Undiscounted Discounted
Undiscounted Discounted Undiscounted Discounted
--------------------------------------------------------------------------------------------------------------------------------------------------------
1....................................................... $4,001 $3,739 $10,400 $9,720 $14,401 $13,459
2....................................................... 0 0 10,785 9,420 10,785 9,420
3....................................................... 0 0 10,785 8,804 10,785 8,804
4....................................................... 0 0 10,785 8,228 10,785 8,228
[[Page 26218]]
5....................................................... 0 0 10,785 7,690 10,785 7,690
6....................................................... 0 0 10,785 7,187 10,785 7,187
7....................................................... 0 0 10,785 6,716 10,785 6,716
8....................................................... 0 0 10,785 6,277 10,785 6,277
9....................................................... 0 0 10,785 5,866 10,785 5,866
10...................................................... 0 0 10,785 5,483 10,785 5,483
-----------------------------------------------------------------------------------------------
Total............................................... .............. 3,739 .............. 75,390 .............. 79,129
Annualized...................................... .............. 532 .............. 10,734 .............. 11,266
--------------------------------------------------------------------------------------------------------------------------------------------------------
Totals may not sum due to independent rounding.
As Table 1 shows, for 15 U.S. planholders who may need to revise
their contracts, we estimate the 10-year discounted cost of the final
rule is about $3,739 at a 7 percent discount rate (using a 3 percent
discount rate, we estimate the 10-year discounted cost is about
$3,884). We estimate the annualized cost is about $532 for these 15
planholders.
For the OSRO that may incur capital costs as a result of this final
rule and pass these costs along to its 13 U.S. planholders, we estimate
the 10-year discounted cost is about $75,390 at a 7 percent discount
rate (using a 3 percent discount rate, we estimate the 10-year
discounted cost is about $91,624). We estimate the annualized cost is
about $10,734 at a 7 percent discount rate for these 13 planholders.
We estimate the total present discounted cost of the final rule to
all 28 U.S. planholders about $79,129 at a 7 percent discount rate
(using a 3 percent discount rate, is we estimate the total 10-year
discounted cost is about $95,509). We estimate the annualized cost is
about $11,266 at a 7 percent discount rate.
We do not anticipate that this final rule will impose new costs on
the Coast Guard or require the Coast Guard to expend additional
resources because we do not expect any changes are required to the VRPs
of vessels in the HVPA.
Alternatives
Due to the specific nature of section 710(a) of the CGAA 2010 and
section 316 of the CGAA 2015, we are limited in the alternative
approaches we can use to comply with Congress' intent. We considered
three alternatives (including the preferred alternative) in the
development of the final rule: (1) Revise 33 CFR 155.1020 by striking
``Port Angeles, WA'' in the definition of ``higher volume port area''
of that section and inserting ``Cape Flattery, WA''; (2) revise 33 CFR
155.1020 by striking ``50 nautical miles'' in the definition of
``higher volume port area'' and inserting ``110 nautical miles''; and
(3) take no action. The Regulatory Analyses section further discusses
the analysis of the preferred alternative (i.e., express adoption of
the wording from section 710(a)) in comparison with other regulatory
approaches considered.
Analysis of Alternatives
We considered three alternatives (including the preferred
alternative) in the development of this final rule. The key factors
that we evaluated in considering each alternative included: (1) The
degree to which the alternative comported with the congressional
mandate in section 710 of the CGAA 2010; (2) what benefits, if any, are
derived, such as enhancement of personal and environmental safety and
security; and (3) cost effectiveness. The alternatives considered are
as follows:
Alternative 1: Revise 33 CFR 155.1020 by striking ``Port Angeles,
WA'' in the definition of ``higher volume port area'' of that section
and inserting ``Cape Flattery, WA.'' Since 1996, 33 CFR 155.1020 has
defined the seaward boundary of the Washington HVPA as an arc 50
nautical miles seaward of the entrance to Port Angeles, WA. The change
will relocate the arc's center to Cape Flattery, covering approximately
50 additional nautical miles of open ocean.
Alternative 2: Revise 33 CFR 155.1020 by striking ``50 nautical
miles'' in the definition of ``higher volume port area'' and inserting
``110 nautical miles.'' This change would affect the other 13 HVPAs
throughout the United States because the level of response resources
required would cause significantly reduced response times resulting
from a 110-mile outward shift of the existing HVPAs from their
entrances. A shift of this distance would require the purchasing and
positioning of heavier and more expensive equipment such as oceangoing
tugs and barges. In addition, OSROs would incur considerable costs of
potentially retrofitting existing HVPAs with shoreside docks. Since
this would include all HVPAs, the economic impact on the response
resource industry, as a whole, would be greater as opposed to a single
HVPA. Furthermore, this option would be inconsistent with the existing
boundaries of the expanded HVPA in section 710(a) of CGAA 2010 (Pub. L.
111-281, 124 Stat. 2905) as amended by section 316 of the CGAA 2015.
Alternative 3: Take no action. This option was not selected as it
would not implement the intent of section 316 of the CGAA 2015, which
specifically requires the Coast Guard to implement the modified
definition of the term ``higher volume port area'' by striking ``Port
Angeles, WA'' and inserting ``Cape Flattery, WA.'' It also precludes
the protection intended by Congress for the waters at the entrance to
and in the Strait of Juan de Fuca.
We chose Alternative 1, which codifies the regulation directly and
specifically implements section 316 of the CGAA 2015 as described
earlier. We rejected Alternative 2, because it would result in
different HVPA boundaries in regulation and statute and adds burden,
both in the Puget Sound region and in the other HVPAs throughout the
United States. We rejected Alternative 3, the ``no action''
alternative, because it would not implement section 316.
Benefits
We did not identify any historic cases that could support the
development of quantifiable benefits associated with this final rule.
Using the Coast Guard's Marine Information for Safety and Law
[[Page 26219]]
Enforcement (MISLE) database with casualty cases transferred from
MISLE's predecessor, the Marine Safety Management System database, we
examined 283 spill cases from 1995 to 2013, beginning with the first
spills that appeared in our database for this geographic region. We
also examined 378 additional cases from 2014 through 2016. Based on
information from Coast Guard personnel who have experience in casualty
case investigations and analysis, we found no cases or spills that
would have definitively benefitted from the expanded HVPA.
Qualitatively, oil spills are likely to result in a negative impact
to the ecosystem and the economy of the surrounding area. These social
welfare effects are not accounted for solely by the amount of oil
spilled into the water. In many cases, the scope of the impact is
contingent on the vulnerability and resiliency of the affected area.
Due to the sensitivity or vulnerability of a location, a barrel of
spilled oil may not have the same impact in one area as it would in
another. Depending on the ecosystem, VRPs could mitigate impacts to
habitats that house multiple species. An area with an ecosystem that is
damaged as a result of previous environmental incidents or damaged due
to the cumulative effects of environmental injuries over time can be
expected to have higher benefits from oil spill mitigation.
The primary benefit of this final rule is to ensure that in the
event of a spill, adequate response resources are available and can be
mobilized within the expanded HVPA. This will ensure a timely response
by vessel owners and operators and the OSROs in an effort to reduce the
likelihood, and mitigate the impact of an oil spill on the marine
environment that might occur in the expanded HVPA.
B. Small Entities
Under the Regulatory Flexibility Act (5 U.S.C. 601-612), we have
considered whether this final rule will have 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.
Regarding vessel owners and operators, as previously discussed,
this final rule will codify the requirements in the CGAA 2015 of an
expanded HVPA, and it will not require vessel owners and operators to
make changes to VRPs. Therefore, owners and operators of vessels that
transit the HVPA will not incur additional VRP modification costs as a
result of this final rule. However, as assumed earlier for the purpose
of this analysis, if contracts would need to be modified, as stated by
one OSRO on the part of the planholders, U.S. planholders will bear
some costs of this final rule as shown earlier in the ``Costs'' portion
of section VII. A. of this preamble. We estimate that each of the 15
U.S. planholders will incur an average one-time cost of about $267 to
amend its contract with the OSRO.
Also, regarding capital costs, it is unclear whether or how these
costs impact vessel owners and operators without knowledge of the
OSROs' billing structures. Additionally, proprietary information is not
available that would allow us to determine the distribution of costs
among many vessel owners and operators contracting with each OSRO.
Nevertheless, in our earlier analysis, if we assume capital costs are
incurred by one of the OSROs and we assume this cost would be passed
along equally to U.S. planholders in the form of higher retainer fees,
we estimate each of the 13 U.S. planholders will incur an annual cost
of about $800 from one particular OSRO in addition to $385 in
maintenance costs in years 2 through 10 of the analysis period for a
total planholder cost of about $1,185 in years 2 through 10 of the
analysis period.
We assume for the purpose of this analysis that the two OSROs that
provide response resource capabilities to the HVPA in Puget Sound may
incur costs from this final rule and may likely pass along these costs
to planholders in the form of higher retainer fees or planholders may
incur one-time costs to amend their contracts with one of the OSROs.
Using the North American Industry Classification System (NAICS) codes
for businesses and the Small Business Administration's (SBA) size
standards for small businesses, we determined the size of each OSRO.
One OSRO has a primary NAICS code of 541618 with an SBA size standard
of $15 million, which is under the subsector group 541 of the NAICS
code with the description of ``Professional, Scientific, and Technical
Services.'' The other OSRO has a primary NAICS code of 562998 with an
SBA size standard of $7.5 million, which is under the subsector group
562 of the NAICS code with the description of ``Waste Management and
Remediation Services.'' Based on the information discussed earlier in
this section and annual revenue data from publicly available and
proprietary sources, Manta and ReferenceUSA, neither OSRO is considered
to be small.
There are about 1,400 U.S. planholders that have either a tank,
nontank, or combined VRP. Based on the affected population of this
final rule relative to the size of the industry as a whole, in this
case U.S. VRP owners (planholders), this final rule will potentially
affect 28 or about 2 percent of the total population of U.S.
planholders in the United States. As described earlier and dependent
upon the OSRO considered, we estimate a U.S. planholder may incur an
annual cost between $385 and $1,185 in years 2 through 10 of the
analysis period (and between $267 and $800 in the initial year because
we assume maintenance costs are not incurred in the initial year of the
analysis period) as a result of this final rule. Therefore, the Coast
Guard certifies under 5 U.S.C. 605(b) that this rule will not have a
significant economic impact on a substantial number of small entities.
C. Assistance for Small Entities
Under section 213(a) of the Small Business Regulatory Enforcement
Fairness Act of 1996,\13\ we want to assist small entities in
understanding this final rule so that they can better evaluate its
effects on them and participate in the rulemaking. If the final rule
will affect your small business, organization, or governmental
jurisdiction and you have questions concerning its provisions or
options for compliance, please consult Mr. Christopher Friese (see FOR
FURTHER INFORMATION CONTACT). 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.
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\13\ Public Law 104-121.
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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 will call for no new collection of information
under the Paperwork Reduction Act of 1995.\14\
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\14\ 44 U.S.C. 3501-3520.
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[[Page 26220]]
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 that Order and have
determined that it is consistent with the fundamental federalism
principles and preemption requirements described in Executive Order
13132. Our analysis is explained below.
As noted earlier in the preamble, this rule implements section 710
of the CGAA 2010, as amended by section 316 of the CGAA 2015, which
specifically directs the Coast Guard to amend 33 CFR 155.1020 by
removing ``Port Angeles, WA'' and replacing it with ``Cape Flattery,
WA.'' This rule carries out the Congressional mandate by amending the
regulations to reflect this required change. Furthermore, this rule
does not appear to have a substantial direct effect upon the laws or
regulations of the State of Washington. Additionally, nothing in this
rule preempts or prohibits state removal activities related to the
discharge of oil or hazardous substances under the Federal Water
Pollution Control Act.\15\ Therefore, this rule is consistent with the
fundamental federalism principles and preemption requirements described
in Executive Order 13132.
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\15\ Section 311, codified at 33 U.S.C. 1321(o).
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F. Unfunded Mandates Reform Act
The Unfunded Mandates Reform Act of 1995 \16\ 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. Although this final rule will not
result in such an expenditure, we do discuss the effects of this rule
elsewhere in this preamble.
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\16\ 2 U.S.C. 1531-1538.
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G. Taking of Private Property
This final 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 final 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 final rule under Executive Order 13045
(Protection of Children from Environmental Health Risks and Safety
Risks). This rule is not an economically significant rule and will 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 will 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. We discuss Executive
Order 13175 in more detail in section V of this preamble.
K. Energy Effects
We have analyzed this final 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 \17\ 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 will 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.
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\17\ 15 U.S.C. 272 note.
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This final rule does not use technical standards. Therefore, we did
not consider the use of voluntary consensus standards.
M. Environment
We have analyzed this final rule under Department of Homeland
Security Management Directive 023-01 and Commandant Instruction
M16475.lD (COMDTINST M16475.1D), which guide the Coast Guard in
complying with the National Environmental Policy Act of 1969,\18\ and
have made a determination that this 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 is
categorically excluded under section 6(b) of the ``Appendix to National
Environmental Policy Act: Coast Guard Procedures for Categorical
Exclusions, Notice of Final Agency Policy.'' \19\ This rule involves
Congressionally-mandated regulations designed to protect the
environment, specifically, regulations implementing the requirements of
the Act (redefining and enlarging the boundaries of the existing
Washington HVPA in the Strait of Juan de Fuca and Puget Sound).
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\18\ 42 U.S.C. 4321-4370f.
\19\ 67 FR 48244 (July 23, 2002).
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List of Subjects in 33 CFR Part 155
Alaska, Hazardous substances, Oil pollution, Reporting and
recordkeeping requirements.
For the reasons discussed in the preamble, the Coast Guard amends
33 CFR part 155 as follows:
Title 33--Navigation and Navigable Waters
PART 155--OIL OR HAZARDOUS MATERIAL POLLUTION PREVENTION
REGULATIONS FOR VESSELS
0
1. The authority citation for part 155 is revised to read as follows:
Authority: 3 U.S.C. 301 through 303; 33 U.S.C. 1225, 1231,
1321(j), 1903(b), 2735; E.O. 12777, 56 FR 54757, 3 CFR, 1991 Comp.,
p. 351; Department of Homeland Security Delegation No. 0170.1.
Section 155.1020 also issued under section 316 of Pub. L. 114-120.
Section 155.480 also issued under section 4110(b) of Pub. L. 101-
380.
0
2. In Sec. 155.1020, paragraph (13) of the definition of ``Higher
volume port area'':
0
a. Remove the words ``Strait of Juan De Fuca at Port Angeles'' and add
in their place the words ``Strait of Juan de Fuca at Cape Flattery''.
0
b. Add a note to read as follows:
Sec. 155.1020 Definitions.
* * * * *
[[Page 26221]]
Higher volume port area * * *
(13) * * *
Note 1 to paragraph (13) of this definition: The western
boundary of the Strait of Juan de Fuca higher volume port area in
this part differs from that in Sec. 154.1020 of this chapter. The
difference stems from section 316(b) of the Coast Guard
Authorization Act of 2015 (Pub. L. 114-120), which expands only the
definition in this part.
* * * * *
Dated: May 31, 2018.
Dana S. Tulis,
Director of Incident Management and Preparedness Policy.
[FR Doc. 2018-12081 Filed 6-5-18; 8:45 am]
BILLING CODE 9110-04-P