Updated Document Submission Process for Compliance With Electronic Records Mandate, 101490-101500 [2024-29555]
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Federal Register / Vol. 89, No. 241 / Monday, December 16, 2024 / Rules and Regulations
2024 (89 FR 89459 (FRL–8524–02–
OCSPP)) to address two errors where
EPA inadvertently omitted important
text within the amendatory instructions:
1. The first error appears in
amendatory instruction 15a, which
directs the OFR to revise paragraph
(e)(5) in 40 CFR 745.225, however, since
the set-out text for paragraph (e)(5) does
not include the subordinate paragraphs
to paragraph (e)(5), the instruction
should direct the OFR to revise the
introductory text of paragraph (e)(5).
2. The second error appears in
amendatory instruction 17b, which
directs the OFR to revise paragraph
(e)(8)(v) of 40 CFR 745.227, however,
since the set-out text for paragraph
(e)(8)(v) does not include the
subordinate paragraphs to paragraph
(e)(8)(v), the instruction should direct
the OFR to revise the introductory text
of paragraph (e)(8)(v).
Correction
In FR Doc. 2024–25070, appearing on
page 89416 in the Federal Register of
November 12, 2024, the following
correction is made:
§ 745.225
[Corrected]
■ 1. On page 89459, in the first
column, correct instruction 15a to read
as follows:
‘‘■ a. Revising paragraphs (b)(1)
introductory text, (c)(13)(vi), (c)(14)(iii),
(d)(1)(vi), (d)(3)(xi), (d)(4)(v), (d)(7)(v),
(e)(5) introductory text, and (f)(2);’’
§ 745.227
[Corrected]
■ 2. On page 89460, in the first
column, correct instruction 17b to read
as follows:
‘‘■ b. Revising paragraphs (c)(2)(i),
(iv) and (v), (d)(3) and (5), (d)(6)(ii),
(d)(7), (e)(4)(ii) and (vii), (e)(8)
introductory text, (e)(8)(i) through (v),
(vii) and (viii), (e)(9) introductory text,
(e)(9)(ii) and (iii), and (e)(10)(iv) and
(v);’’
Dated: December 6, 2024.
Michal Freedhoff,
Assistant Administrator, Office of Chemical
Safety and Pollution Prevention.
[FR Doc. 2024–29423 Filed 12–13–24; 8:45 am]
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DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
46 CFR Part 67
[Docket No. USCG–2023–0584]
RIN 1625–AC93
Updated Document Submission
Process for Compliance With
Electronic Records Mandate
Coast Guard, DHS.
Final rule.
AGENCY:
ACTION:
The Coast Guard is issuing a
final rule to update regulations that
reflect the Coast Guard National Vessel
Documentation Center’s processes and
capabilities, as well as align regulations
with statutory reporting timelines. The
processes noted pertain to electronic file
submissions, requirements for
submission of original build evidence,
and return of existing Certificates of
Documentation (CODs). In addition, the
time period related to reporting changes
to COD information is updated to align
with statute.
DATES: This final rule is effective
January 15, 2025.
ADDRESSES: To view documents
mentioned in this preamble as being
available in the docket, go to
www.regulations.gov, type USCG–2023–
0584 in the search box, and click
‘‘Search.’’ Next, in the Document Type
column, select ‘‘Supporting & Related
Material.’’
SUMMARY:
For
information about this document, call or
email Mr. Ronald (Sam) Teague, Coast
Guard National Vessel Documentation
Center; telephone (304) 271–2506, email
ronald.s.teague@uscg.mil.
SUPPLEMENTARY INFORMATION:
FOR FURTHER INFORMATION CONTACT:
Table of Contents for Preamble
I. Abbreviations
II. Basis and Purpose, and Regulatory History
III. Background and Discussion of Rule
IV. Regulatory Analyses
A. Regulatory Planning and Review
B. Small Entities
C. Assistance for Small Entities
D. Collection of Information
E. Federalism
F. Administrative Procedure Act
G. Unfunded Mandates
H. Taking of Private Property
I. Civil Justice Reform
J. Protection of Children
K. Indian Tribal Governments
L. Energy Effects
M. Technical Standards
N. Environment
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I. Abbreviations
Builder’s Certificate Builder’s Certification
and First Transfer of Title (form CG–1261)
CFR Code of Federal Regulations
CGAA 2018 Frank LoBiondo Coast Guard
Authorization Act of 2018
COD Certificate of Documentation
CY Calendar year
DHS Department of Homeland Security
Fax Facsimile
FR Federal Register
FTE Full-time equivalent
GS General Schedule
NARA National Archives and Records
Administration
NPRM Notice of proposed rulemaking
NVDC U.S. Coast Guard National Vessel
Documentation Center
OMB Office of Management and Budget
OPM Office of Personnel Management
PDF Portable document format
§ Section
U.S.C. United States Code
YoY Year-over-year
YTD Year-to-date
II. Basis and Purpose, and Regulatory
History
Section 2103 of Title 46 of the United
States Code (U.S.C.) gives the Secretary
of the Department in which the Coast
Guard is operating broad regulatory
authority to carry out the provisions of
46 U.S.C. subtitle II (Vessels and
Seamen), where vessel documentation
provisions in 46 U.S.C. chapter 121 are
located. The Secretary’s authority is
delegated to the Coast Guard by the
Department of Homeland Security
(DHS) Delegation No. 00170.1, Revision
No. 01.4, paragraph II (92)(a).
The Coast Guard did not publish a
notice of proposed rulemaking (NPRM)
before this rule. As explained in Section
IV.F Administrative Procedure Act of
this preamble, the Coast Guard finds
that this rule is exempt from notice and
comment as a procedural rule under 5
U.S.C. 553(b)(A) and for good cause
under 5 U.S.C. 553(b)(B).
III. Background and Discussion of Rule
In 2007, the Coast Guard amended
vessel documentation regulations to
eliminate the requirement to provide
certain original documents to the U.S.
Coast Guard National Vessel
Documentation Center (NVDC) for
recording and eliminated the additional
fee for filing by facsimile (fax).1
Currently, Coast Guard regulations
allow the filing of instruments, such as
Bills of Sale, Deeds of Gifts, Mortgages,
and Notices of Claim of Lien, to the
NVDC by paper submission or
electronically. Regulations on the
1 Vessel Documentation; Recording of
Instruments direct final rule, 72 FR 42310, Aug. 2,
2007; and confirmation of effective date, 72 FR
58762, Oct. 17, 2007.
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electronic means for filing specify two
technologies: via fax or Portable
Document Format (PDF) attachment(s)
to electronic mail.
This rule removes references to the
specific electronic filing methodologies
of PDF and faxing and revises the
regulations with more general terms to
capture other electronic filing options. It
also removes referencing a specific
technology that is no longer a part of
NVDC’s current process, because the
system provided to and used by the
NVDC does not support fax capabilities.
Electronic filing is not mandatory.
With this rule, vessel owners retain the
ability to file paper records with the
Coast Guard. Historically, paper records
that were scanned and uploaded into
the system were ultimately archived
with the Federal Records Center, in
accordance with National Archives and
Records Administration (NARA)
requirements. The NVDC still scans and
uploads paper records, but, NARA, with
few exceptions, stopped accepting paper
records as of January 1, 2023. See
Transition to Electronic Records, OMB
and NARA Memorandum M–19–21
(June 28, 2019).2 NARA does recognize
a possible exception for records of
intrinsic historic value to its rule on no
longer accepting paper documents. See
Federal Records Management: Digitizing
Permanent Records and Reviewing
Records Schedules, 88 FR 28410,
28412–13 (May 4, 2023) and Guidance
on OMB and NARA Memorandum
Transition to Electronic Records, NARA
Bulletin 2020–01 (September 30, 2020).3
However, that exception would not
apply to the vast majority of NVDC
records, if any. Therefore, paper records
currently submitted to the NVDC are
shelved for up to 2 years awaiting
destruction by the Coast Guard.
In response to NARA’s paper
processing change, the NVDC is
maximizing electronic filing capabilities
to reduce the need to digitize physical
submissions, store the submissions, and
ultimately destroy them. Additionally,
more general language in the regulations
allows the Coast Guard and affected
vessel owners to take advantage of
developing technologies as they become
available for electronic submission of
instruments.
Currently, 46 CFR 67.99 requires
original vessel build evidence. Without
the ability to send original documents to
NARA, the NVDC is required to either
mail the form CG–1261, the original
2 https://www.archives.gov/files/records-mgmt/
policy/m-19-21-transition-to-federal-records.pdf
(accessed December 10, 2024).
3 https://www.archives.gov/records-mgmt/
bulletins/2020/2020-01 (accessed December 10,
2024).
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Builder’s Certification and First Transfer
of Title (hereafter ‘‘Builder’s
Certificate’’), to the vessel owner, or
shred the document. The NVDC
currently accepts copies of other
original documents and ceased
requiring vessel owners to submit
original evidence of build as of July 1,
2022. In line with this practice, the
Coast Guard is amending 46 CFR 67.99
to remove the requirement for original
evidence of build documents.
In addition, 46 CFR 67.141(a)(4),
67.167(a), and 67.169(b) currently
require an outstanding Certificate of
Documentation (COD) be submitted as
part of the application procedure for
COD replacement, exchange, or
deletion. This rulemaking removes this
requirement.
On December 4, 2018, Congress
enacted the Frank LoBiondo Coast
Guard Authorization Act of 2018 (CGAA
2018). Section 512 of the CGAA 2018
amended 46 U.S.C. 12105(e)(3)(A) 4 to
require vessel owners to notify the Coast
Guard no later than 30 days after each
change in information that the issuance
of a COD for the vessel is based on if
it occurs before the expiration of the
certificate. The Coast Guard previously
revised 46 CFR 67.319 to reflect this
statutory change (86 FR 5022, Jan. 19,
2021). With this final rule, the Coast
Guard amends 46 CFR 67.113(e) and
67.321 to also extend, from 10 to 30
days, the time that a vessel owner has
to report a change of a managing
owner’s address to the NVDC.
This rulemaking will benefit vessel
owners in the form of greater
clarification by codifying current policy
and practice at the NVDC of not
requiring vessel owners to mail original
build evidence and instruments. In
addition, Coast Guard regulations will
accurately reflect current statutory
periods for vessel owners to submit
changes to their address used to apply
for a COD. The Coast Guard will also
benefit from greater clarity, as this final
rule harmonizes the CFR with current
practices.
IV. Regulatory Analyses
We developed this rule after
considering numerous statutes and
Executive orders related to rulemaking.
Below, we summarize our analyses
based on these statutes or Executive
orders.
A. Regulatory Planning and Review
Executive Orders 12866 (Regulatory
Planning and Review), as amended by
Executive Order 14094 (Modernizing
Regulatory Review), and 13563
4 Public
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101491
(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 costs and benefits, reducing
costs, harmonizing rules, and promoting
flexibility.
The Office of Management and Budget
(OMB) has not designated this rule a
significant regulatory action under
section 3(f) of Executive Order 12866, as
amended by Executive Order 14094.
Accordingly, OMB has not reviewed
this regulatory action. A regulatory
analysis follows.
Summary of Regulatory Analysis
As discussed in Section III,
Background and Discussion of Rule, in
this preamble, the NVDC no longer
sends or receives faxes, leaving PDF
attachment to email as the only
electronic means of submission. Since
July 1 of 2022, the Coast Guard ceased
requiring vessel owners to submit
original Builder’s Certificates to the
NVDC, and NVDC began accepting
copies of the original certificate.5 To
better implement this change, the Coast
Guard is maximizing electronic filing
capabilities, although vessel owners will
retain the option to submit paper
records to the Coast Guard.
Additionally, more general language in
the regulations allows the Coast Guard
to take advantage of developing
technologies as they become available
for electronic submission of records.
To provide a comprehensive analysis
covering both of these programmatic
changes with implementation of the
final rule, the Coast Guard utilizes two
baselines, a pre-program change
baseline that represents the state of the
world without the program change in
2022 and a ‘‘no action’’ baseline that
represents the state of the world without
the regulation. According to federal
guidelines, the economic impact of the
rule should be accounted for in the
period in which the changes occur. The
rulemaking aligns regulations with
current industry practice, which existed
prior to the rulemaking. Therefore, the
economic impact of the rule, which
normally includes costs, cost-savings,
5 https://www.dco.uscg.mil/Portals/9/
DCO%20Documents/NVDC/Change%20in%20
Requirements%20for%20Original%20
Build%20Certificate.pdf?ver=qOU5UxE1bvviJMo75ZCmA%3D%3D (accessed December 10,
2024).
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Federal Register / Vol. 89, No. 241 / Monday, December 16, 2024 / Rules and Regulations
and benefits, will be attributed to the
‘‘pre-program change’’ baseline.
The ‘‘pre-program’’ baseline is used to
measure the economic impacts of the
program changes (a timespan that
includes events beginning in 2022
through 2033), and the ‘‘no action’’
baseline is used to measure the impacts
of the final rule (a projected 10-year
period, which includes events
beginning in 2024 through 2033).
Tables 1 and 2 present the overall
impacts for both baselines.
TABLE 1—SUMMARY OF THE AFFECTED POPULATION, COSTS, COST-SAVINGS, AND BENEFITS
Program change impacts
(‘‘no action’’ baseline)
Category
Final rule impacts compared to ‘‘no action’’ baseline
Applicability ...........................
July 1, 2022: the Coast Guard began accepting copies of Builder’s Certificates and other documents through electronic
means, primarily email with PDF attachments.
Affected Population ..............
Original Evidence of Build Documents: Approximately 20,068 Initial COD applications are expected to be submitted to the
NVDC annually over the next 10 years. Additionally, this population includes the 18,336 and 17,558 applicants who submitted
to NVDC in 2022 and 2023, respectively.
Electronic Record Submissions: On average, this change applies
to the entire population of NVDC customers, estimated at
161,587 6 COD holders over the next 10 years. Additionally,
this population includes the 213,087 and 174,343 applicants
who submitted to NVDC in 2022 and 2023, respectively.
Return of CODs: On average, this change applies to the population of NVDC customers who submit a COD other than an Initial COD, estimated at 141,519 COD holders over the next 10
years. Additionally, this population includes the 194,751 and
156,785 applicants who submitted to NVDC in 2022 and 2023,
respectively.
Additional costs were not imposed by a program change to accepting electronic versions of a Builder’s Certificate, among
other documents, since July 1 of 2022.
Costs ....................................
Cost-savings (in 2023 dollars, 2% discount rate) *.
Electronic Records—Industry: Estimated annualized cost-savings
of approximately $14,914 in 2023 dollars, discounted at 2 percent.
Electronic Records—Government: Estimated annualized cost savings of approximately $208,985 in 2023 dollars, discounted at 2
percent.
Estimated total annualized cost-savings of approximately
$223,899 in 2023 dollars, discounted at 2 percent.
Benefits .................................
Electronic Records—Industry: The electronic submission of evidence of build benefits industry by reducing the burden to the
public of printing and mailing paper records to the NVDC.
Electronic Records—Government: Government benefits by reducing the need to digitize original physical applications, store the
submissions, and ultimately shred or send evidence of build
documents back to vessel owners.
Original Evidence of Build Documents: Amends 46 CFR 67.99(a)
and reflects current processes and capabilities at the NVDC,
eliminating the requirement for vessel owners to submit original
evidence of build documents and allowing copies.
Reporting Period: Amends 46 CFR 67.113(e) and 67.321 to extend the time, from 10 days to 30 days, in which a vessel
owner must notify the NVDC of a change of address, or when
information submitted for the issuance of a COD changes.
Electronic Record Submissions: Amends 46 CFR 67.209, 67.218
and 67.219 to eliminate restrictions on electronic submission
options.
Return of CODs: Amends 46 CFR 67.167(a) and 67.171(b), and
deletes 67.169(b) and 141(a)(4), which requires applicants to
return original CODs upon application for a replacement or exchange of COD.
Original Build Evidence: Approximately 20,068 Initial COD applications are expected to be submitted to the NVDC annually
over the next 10 years.
Reporting Period: On average, this change applies to the entire
population of NVDC customers, estimated at 161,587 COD
holders over the next 10 years.
Electronic Record Submissions: On average, this change applies
to the entire population of NVDC customers, estimated at
161,587 COD holders over the next 10 years.
Return of CODs: On average, this change applies to the population of NVDC customers who submit a COD other than an Initial COD, estimated at 141,519 COD holders over the next 10
years.
This final rule does not impose any new costs to industry by
amending 46 CFR 67.99(a) and harmonizing CFR language
with current procedures at NVDC, as the NVDC has accepted
electronic versions of a Builder’s Certificate, among other documents, since July 1 of 2022. The option of submitting an original document to the NVDC by mail is preserved in this final
rule.
This final rule does not impose any new cost savings beyond
those attributable to the program change. The opportunity for
cost saving to industry began in July 2022, when vessels owners no longer had to submit original evidence of build documents to the Coast Guard. The cost savings of this new practice were incurred even without a new regulation codifying the
practice. Therefore, all cost savings in this analysis are assigned to the program change in 2022.
Additionally, there are no estimated cost savings to industry or
Government associated with amending 46 CFR 67.113(e) and
67.321.
Reporting Period—Industry: There are no qualitative or quantitative benefits. However, industry is given an increase in the
allotted time provided to vessel owners in which they must notify the NVDC of any changes to the issuance of their COD,
from 10 to 30 days.
Reporting Period—Government: There are no qualitative benefits
to Government from extending the period in which vessel owners must notify the NVDC of any changes to the issuance of
their COD from 10 to 30 days.
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* Totals may not add due to rounding.
6 Estimates for total COD applicants are not used
in the estimation of cost savings. Total COD
applications were estimated using a 5-year moving
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average, and similar to methods described below for
the affected population methodology, we applied a
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growth rate to estimate future years and an annual
average.
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101493
TABLE 2—BASELINE MATRIX—CHANGES BETWEEN THE FINAL RULE AND THE CFR BY BASELINE
Subpart
Description of change
Type of change
‘‘No action’’
baseline impact
§ 67.99(a) ........
Revises the text, ‘‘Evidence of the facts of build
may be either a completed original form CG–
1261 or other original document. . .’’ to ‘‘Evidence of the facts of build may be a copy of
either the original, completed form CG–1261
(Builder’s Certification and First Transfer of
Title), or other document. . .’’.
Economic (pre-programmatic
change baseline)
and Editorial.
§ 67.113(e) ......
Update ‘‘within 10 days’’ to ‘‘within 30 days,’’ in
accordance with 67.319.
Remove ‘‘(4) If the application is for replacement of a mutilated document or exchange of
documentation, the outstanding Certificate of
Documentation.’’.
Remove .’’. . send or deliver the Certificate to
the National Vessel Documentation Center,
and . . .’’.
Remove ‘‘b) When application for replacement
of a Certificate of Documentation is required
because the Certificate has been mutilated,
the existing Certificate must be physically
given up to the National Vessel Documentation Center.’’.
Remove ‘‘or deliver the original Certificate of
Documentation to the National Vessel Documentation Center together with.’’.
Remove reference to 67.218 and 67.219 ...........
PDF filing—edit to reference ‘‘electronic filing.’’ ..
67.219 is eliminated entirely ...............................
Replaces the word ‘‘shall’’ with ‘‘must,’’ and the
number ‘‘10’’ with ‘‘30.’’.
Editorial ..................
The Coast Guard began receiving electronic
copies of documents in July of 2022. This immediately reduced the cost to vessel owners
and operators of the previous requirement to
mail in original documents.
Estimated annualized cost-savings to industry of
approximately $14,165 in 2023 dollars, discounted at 2%.
Estimated annualized cost-savings to Government of approximately $198,501 in 2023 dollars, discounted at 2%.
Total annualized cost-savings of approximately
$212,666 in 2023 dollars, discounted at 2%.
No economic impact ............................................
No economic impact.
Editorial ..................
No economic impact ............................................
No economic impact.
Editorial ..................
No economic impact ............................................
No economic impact.
Editorial ..................
No economic impact. ...........................................
No economic impact.
Editorial ..................
No economic impact ............................................
No economic impact.
Editorial
Editorial
Editorial
Editorial
No
No
No
No
No
No
No
No
§ 67.141(a)(4) ..
§ 67.167(a) ......
§ 67.169(b) ......
§ 67.171(b) ......
§ 67.209
§ 67.218
§ 67.219
§ 67.321
...........
...........
...........
...........
Affected Population/Methodology
Every application for an Initial COD
submitted to the NVDC must include
evidence of build in the form of a
Builder’s Certificate or other original
documentation containing the same
information. Given that a Builder’s
Certificate, or other original
documentation containing the same
..................
..................
..................
..................
economic
economic
economic
economic
impact
impact
impact
impact
information, must be submitted to the
NVDC with every Initial COD
application, for our analysis, the
number of applications for Initial CODs
submitted to the NVDC is used
interchangeably with the number of
Builder’s Certificates submitted to the
NVDC.
Table 3 displays the number of Initial
COD applications submitted to the
‘‘Final rule’’
impact
............................................
............................................
............................................
............................................
No economic impact.
economic
economic
economic
economic
impact.
impact.
impact.
impact.
NVDC for Commercial (b), Fishing (c),
and Recreational Vessels (d), beginning
in calendar year (CY) 2018, and ending
in CY 2023. The sum of these categories
will be considered ‘‘Industry’’ for
purposes of this rule. The sum of
columns (b), (c), and (d) yields the total
Initial COD applications submitted to
the NVDC per calendar year (e), where
(e) = (b) + (c) + (d).
TABLE 3—INITIAL CODS APPLICATIONS (e) SUBMITTED TO THE NVDC FOR COMMERCIAL (b), FISHING (c), AND
RECREATIONAL VESSELS (d)
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2018
2019
2020
2021
2022
2023
Year
Commercial
Fishing
Recreational
Initial COD
applications
(a)
(b)
(c)
(d)
(e) = (b) + (c) + (d)
...............................................................................................
...............................................................................................
...............................................................................................
...............................................................................................
...............................................................................................
...............................................................................................
Methodology—Affected Population
Our methodology begins with
establishing an affected population
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3,010
3,161
3,559
3,790
3,159
3,269
444
450
439
466
456
471
growth rate, to help project Initial COD
applicants for an additional 10 years.
Table 4 illustrates the year-over-year
(YoY) change for each vessel category,
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12,444
12,811
15,510
15,798
14,721
13,818
15,898
16,422
19,508
20,054
18,336
17,558
calculated as the percentage change
within each series, over the most recent
5 years’ worth of data.
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TABLE 4—PERCENTAGE CHANGE OF INITIAL COD APPLICATIONS BETWEEN CY 2018 AND CY 2023
Year
Commercial
Fishing
Recreational
Initial COD
applications
(a)
(b)
(c)
(d)
(e)
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
...............................................................................................................
........................
5.0
12.6
6.5
¥16.6
3.5
........................
1.4
-2.4
6.2
¥2.1
3.3
........................
2.9
21.1
1.9
¥6.8
¥6.1
..........................
3.3
18.8
2.8
¥8.6
¥4.2
Average Growth ......................................................................................
........................
........................
........................
* 2.4
2018
2019
2020
2021
2022
2023
* Average Growth figure is rounded. Therefore, totals may not sum due to rounding.
As we can see from Table 4, the range
in growth between CY 2018 and CY
2023 across all vessel categories
fluctuated from a –16.6 percent YoY
decline in Commercial vessels (b)
during CY 2022, to a 21.1 percent YoY
growth for Recreational vessels (d) in
CY 2020. However, each series has
grown over time on average;
approximately 2.2 percent for
Commercial vessels (b), 1.2 percent for
Fishing vessels (c), and 2.6 percent for
Recreational vessels (d). The average
growth rate for all Initial COD
applications is estimated at 2.4 percent.
This figure is used to forecast the Initial
COD applications for years 2024–2033.
Projecting Initial CODs from 2024 to
2033, Table 5 shows the average number
of Initial COD applications for the next
10 years, derived by applying the 2.4
percent growth rate measured in Table
4. We take the average annual estimate
of Initial COD applications and use that
number to represent the affected
population for Initial COD applications
for each year from 2024–2033 for both
the pre-program change baseline and the
‘‘no action’’ baseline. Here, the baselines
are treated equally, as we don’t
anticipate the final rule to induce a
change in applications.
TABLE 5—INITIAL CODS PROJECTIONS FOR THE NEXT 10-YEARS
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
Year
Commercial
Fishing
Recreational
Initial COD
applications
(a)
(b)
(c)
(d)
(e) = (b) + (c) + (d)
...............................................................................................
...............................................................................................
...............................................................................................
...............................................................................................
...............................................................................................
...............................................................................................
...............................................................................................
...............................................................................................
...............................................................................................
...............................................................................................
3,348
3,429
3,512
3,596
3,683
3,772
3,863
3,957
4,052
4,150
482
494
506
518
531
544
557
570
584
598
14,152
14,494
14,844
15,202
15,569
15,945
16,331
16,725
17,129
17,543
17,982
18,416
18,861
19,317
19,783
20,261
20,751
21,252
21,765
22,291
Average 2024–2033 ...............................................................
........................
........................
........................
20,068
Methodology—Industry and
Government Cost Savings
With a value for the average Initial
COD applications for future years, we
can begin estimating cost savings for all
years, by multiplying the annual
affected population no longer needing to
submit a Builder’s Certificate by the
opportunity cost of either postage to
industry, and time and wages to assess
the documents by the Federal
Government. Table 6 provides a list of
key inputs used to estimate cost savings
including the postage rate for assessing
industry savings and time and wages
associated with government savings.
TABLE 6—INPUTS FOR INDUSTRY AND GOVERNMENT COST-SAVINGS
[2022–2033]
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Inputs
HR equivalent
Government:
12-minute Process Time ........................................................................................................................................................
Hourly Wage ..........................................................................................................................................................................
Load Factor ............................................................................................................................................................................
GDP Deflator (2023) ..............................................................................................................................................................
Total Wage Rate ....................................................................................................................................................................
Industry:
Postage Submission Cost ......................................................................................................................................................
Percent of Submission ...........................................................................................................................................................
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0.2 Hour.
$24.88.
1.75.
1.092.
$47.64.
$0.68.
100%.
Federal Register / Vol. 89, No. 241 / Monday, December 16, 2024 / Rules and Regulations
lotter on DSK11XQN23PROD with RULES1
Cost savings to industry is calculated
as the product of the estimated average
number of Builder’s Certificates that the
Coast Guard no longer expects to be
submitted by mail annually, and the
price of a standard, stamped, letter-sized
envelope bought through the United
States Postal Service (USPS). For years
2024 through 2033, the estimated
average affected population is
approximately 20,068 Initial COD
applications submitted yearly, assuming
100 percent electronic submission rate.
Additionally, according to the USPS,
the cost of purchasing a standard,
stamped, letter-sized envelope is
approximately $0.68.7 To estimate the
average annualized cost savings per
form not mailed to the NVDC, we
multiply the estimated annual affected
population of Initial CODs by the cost
of mailing each form. For example, for
a given future year, we multiply the
average 20,068 Initial COD applications
by avoided postage of $0.68, to estimate
an annual cost savings of $13,646.
Cost savings to government is
calculated as the product of the
estimated average number of Initial COD
applications that the Coast Guard no
longer expects to receive in the mail
annually, and the 12 minutes it takes to
process mailed-in forms, or 0.2 hours,
and the total wage rate of a GS–5
employee at $47.64 per hour (the total
wage rate is equal to the hourly wage
multiplied by the load rate).
To explain more about Government
savings estimates, in general, once a
Builder’s Certificate paper copy is
received by the NVDC, General
Schedule (GS)-5 personnel must first
locate and open the mail, put it in the
mail tray, classify and sort it, and scan
each Builder’s Certificate into the Coast
Guard’s database. Once the application
has been processed, the documents will
be shelved at NVDC’s file room and
await destruction. According to our
subject matter expert at NVDC, this
process takes approximately 12 minutes
per batch of paper copies, or 0.2 hours’
worth of time for GS–5 employees (12
÷ 60 = 0.2 hrs.).
According to the Office of Personnel
Management (OPM) salary table
published for CY 2024, which is the
official publication for Federal
Government employees’ salaries and
wages, the average hourly wage-rate in
the Washington DC metropolitan area
7 https://www.usps.com/business/prices.htm
(accessed December 10, 2024).
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for a GS–5 employee at the step 5 level
is approximately $24.88.8
To account for the employee benefits
to which employees are typically
entitled, we use the Congressional
Budget Office (CBO)’s Comparing the
Compensation of Federal and PrivateSector Employees, 2011 to 2015 9 study
to derive a load factor. This is a onetime study conducted by the CBO that
compared the wages and salaries
between Federal Government and
private sector employees.
Multiplying a benefit factor 10 by the
estimated average hourly wage-rate for
GS–5 employees, $24.88, yields a
loaded wage-rate of approximately
$47.64. As stated earlier, the process of
receiving, sorting, logging, storing, and
destroying or returning a Builder’s
Certificate is estimated at approximately
0.2 hours’ of labor time for a GS–5
employee. Multiplying this value by the
estimated loaded hourly wage-rate,
$47.64, yields a total of $9.53 of avoided
cost per form not processed by the
NVDC ($47.64 × 0.2 hrs. = $9.53).
The NVDC expects an average annual
reduction in burden of approximately
20,068 Builder’s Certificate paper
copies. The product of this value, and
the opportunity cost per form, $9.53,
yields an estimated annual average
undiscounted cost-savings of
approximately $191,248. That is, 20,068
× $9.53 = $191,248.
Methodology—Time Value Formulation
Lastly, with respect to time value
considerations, all savings figures are
discounted by the number of years into
the future considered under this
8 https://www.opm.gov/policy-data-oversight/payleave/salaries-wages/salary-tables/24Tables/html/
DCB_h.aspx (accessed December 10, 2024).
9 Congressional Budget Office, Comparing the
Compensation of Federal and Private-Sector
Employees, 2011 to 2015.’’ https://www.cbo.gov/
system/files/115th-congress-2017-2018/reports/
52637-federalprivatepay.pdf (accessed December
10, 2024).
10 We divide the Total Compensation for
employees in the Federal Government with some
college as presented in Table 4—Federal and
Private Sector Total Compensation, $56.30, by the
average Wage for an employee in the Federal
Government with some college, $32.10 in Table 2—
Federal and Private-Sector Wages, by Workers’
Educational Attainment. Dividing the Federal
Sector Total Compensation value, $56.30, by the
Federal Sector Wages for an employee with some
college, $32.10, yields a load factor of 1.75, $56.30
÷ $32.10 = 1.75.
Source: Congressional Budget Office, ‘‘Comparing
the Compensation of Federal and Private-Sector
Employees, 2011 to 2015.’’ https://www.cbo.gov/
system/files/115th-congress-2017-2018/reports/
52637-federalprivatepay.pdf (accessed December
10, 2024).
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101495
economic analysis, as well as for years
2022 and 2023.11 For the 2 previous
years, we discount using multiplication
in replacement of division and assign
period numbers 1 and 0, respectively.
Present valuation is then calculated by
multiplying the previous year value by
one (1) plus the discount rate,
exponentiating the year-period. For
years 2024, and all years forward, we
assign corresponding period number 1,
2, 3 . . . sequentially, and apply the
standard present value formula,
dividing future values by one (1) plus
the discount rate raised to the
corresponding year-period.
Cost-Benefit Analysis From the Program
Change (2022–2033)
Costs
We found no costs associated with or
imposed by program changes to accept
electronic versions of a Builder’s
Certificate, among other documents,
starting on July 1 of 2022. Applicants
have been able to submit documents
electronically, or by mail, and the
option of submitting an original
document to the NVDC by mail is
preserved in this final rule. We assume
the time it takes to prepare an electronic
version versus a hard copy to be the
same.
Cost Savings—Undiscounted and
Discounted Savings to Industry
Using the inputs described in the
methodology section, in table 7 we
display the estimated undiscounted and
discounted cost-savings to industry. The
discounted figures are calculated as the
product of the anticipated Initial COD
applications expected to be submitted to
the NVDC (from tables 3 and 5), and the
cost of a standard, stamped envelope,
determined at $0.68 per submission
(Table 6). This figure is then discounted
for a 10-year period.12 Including years
2022 (initial year of the programmatic
change) and 2023, the Coast Guard
estimates total cost savings to industry
of approximately $147,236 in 2023
dollars, discounted at 2 percent.
11 Net Present Value (NPV) is used to estimate the
future value of money in terms of the present value.
Money can be invested at annual returns for future
income, which means the value of money spent in
the future may be less than if that money had been
invested instead. NPV allows us to calculate how
much the total expenditures are worth discounted
backwards to the present, so we can estimate the
true value of the money expended or saved.
12 For future years, the discount formula: Yearly
Cost-Savings/(1+.02) ∧ Year Number.
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TABLE 7—UNDISCOUNTED AND DISCOUNTED COST-SAVINGS FOR INDUSTRY
Year
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
Initial COD
applications
Undiscounted
cost-savings
2% Discount 13
.............................................................................................................
.............................................................................................................
.............................................................................................................
.............................................................................................................
.............................................................................................................
.............................................................................................................
.............................................................................................................
.............................................................................................................
.............................................................................................................
.............................................................................................................
.............................................................................................................
.............................................................................................................
1
0
1
2
3
4
5
6
7
8
9
10
18,336
17,558
20,068
20,068
20,068
20,068
20,068
20,068
20,068
20,068
20,068
20,068
$12,468
11,939
13,646
13,646
13,646
13,646
13,646
13,646
13,646
13,646
13,646
13,646
$12,718
11,939
13,379
13,116
12,859
12,607
12,360
12,117
11,880
11,647
11,419
11,195
Total ......................................................................................................
....................
..........................
160,870
147,236
Annualized Equivalent Cost .................................................................
....................
..........................
..........................
14,914
Undiscounted and Discounted Cost
Savings to Government
return as many paper Builder’s
Certificates. In addition to years 2022,
and 2023, the Coast Guard estimates
that, from 2024 to 2033, the Government
will not need to process, store, or
destroy, on average, approximately
The Government did incur cost
savings under changes during the preprogrammatic baseline period by not
having to process, store, and shred or
20,068 Initial COD paper instruments
annually in the future.
As shown in table 8, the Coast Guard
estimates total cost savings to the
Government of approximately
$2,063,232 in 2023 dollars, discounted
at 2 percent.
TABLE 8—UNDISCOUNTED AND DISCOUNTED COST-SAVINGS FOR GOVERNMENT
Year
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
Undiscounted
cost-savings
2% Discount
.............................................................................................................
.............................................................................................................
.............................................................................................................
.............................................................................................................
.............................................................................................................
.............................................................................................................
.............................................................................................................
.............................................................................................................
.............................................................................................................
.............................................................................................................
.............................................................................................................
.............................................................................................................
1
0
1
2
3
4
5
6
7
8
9
10
18,336
17,558
20,068
20,068
20,068
20,068
20,068
20,068
20,068
20,068
20,068
20,068
$174,723
167,309
191,226
191,226
191,226
191,226
191,226
191,226
191,226
191,226
191,226
191,226
178,217
167,309
187,477
183,801
180,197
176,664
173,200
169,803
166,474
163,210
160,010
156,872
Total ......................................................................................................
....................
..........................
2,254,294
2,063,232
Annualized Equivalent Cost .................................................................
....................
..........................
..........................
208,985
Over a 12-year period, the
programmatic changes will save the
Government approximately $2,063,232
when discounted at 2 percent.
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Initial COD
applications
Total Undiscounted and Discounted
Cost Savings—Industry and Government
As presented in table 9, the estimated
total cost savings for both industry and
Government is approximately
$2,210,468, in 2023 dollars, discounted
at 2 percent.
13 Discount total for a year is calculated with the
following formula: (Undiscounted cost savings *
discount rate) ∧ number of years from present.
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101497
TABLE 9—TOTAL UNDISCOUNTED AND DISCOUNTED COST-SAVINGS
Year
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
Undiscounted
cost-savings
2% Discount
.............................................................................................................
.............................................................................................................
.............................................................................................................
.............................................................................................................
.............................................................................................................
.............................................................................................................
.............................................................................................................
.............................................................................................................
.............................................................................................................
.............................................................................................................
.............................................................................................................
.............................................................................................................
1
0
1
2
3
4
5
6
7
8
9
10
18,336
17,558
20,068
20,068
20,068
20,068
20,068
20,068
20,068
20,068
20,068
20,068
$187,191
179,248
204,872
204,872
204,872
204,872
204,872
204,872
204,872
204,872
204,872
204,872
$190,935
179,248
200,855
196,917
193,056
189,271
185,559
181,921
178,354
174,857
171,428
168,067
Total ......................................................................................................
....................
..........................
2,415,164
2,210,468
Annualized Equivalent Cost .................................................................
....................
..........................
..........................
223,899
Benefits
In addition to cost savings above,
industry applicants likely experience
additional qualitative benefits of
increased flexibility and ease with the
option for electronic submission of
Initial COD applications.
Additionally, programmatic changes
benefit Government by reducing the
need to digitize original physical
applications, store the submissions, and
ultimately shred or send evidence of
build documents back to vessel owners.
Cost-Benefit Analysis From the No
Action Baseline (2024–2033)
Costs—All Provisions
This final rule does not impose any
new costs to industry or the
Government by amending 46 CFR
67.99(a), 67.113(e), 67.321, 67.99(a), or
67.113(e); that is, the allowance for
evidence of build copies, or for the
extension from 10 to 30 days of
notification for changes in ownership or
address.
Cost Savings—Electronic Records
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Initial COD
applications
As shown under the previous
sections, the final rule does not produce
additional cost savings beyond those
attributable to the programmatic
changes which occurred in 2022, when
the NVDC ceased requiring vessel
owners to submit original evidence of
build documents. The opportunity for
cost saving to industry and Government
began in 2022, following the NVDC’s
acceptance of electronic submission of
documents and copies. Therefore, all
cost savings in this analysis are assigned
to the program change of 2022.
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Cost Savings—Reporting Period
There are no quantifiable cost savings
to industry or the Government by
amending 46 CFR 67.113(e) and 67.321,
which extends the time, from 10 to 30
days, in which a vessel owner must
notify the Coast Guard for a change of
address or when information submitted
for the issuance of a COD changes.
Benefits—All Provisions
This final rule eliminates confusion
among the regulated public as it
reconciles language in regulations with
current procedures at the NVDC, which
has been accepting electronic versions
of Builder’s Certificates since July 1 of
2022.
Industry benefits from the increased
period to notify the Coast Guard of any
changes to their COD by an additional
20 days. The Coast Guard considers this
a qualitative benefit because it increases
the flexibility to the affected population
by extending the time in which vessel
owners must notify the Coast Guard of
any changes to their COD.
No new qualitative benefits will occur
to Government by amending § 67.113(e),
which extends the reporting period by
which vessel owners must notify the
NVDC when information submitted for
the issuance of a COD changes, from 10
to 30 days.
Alternatives
Alternative (1). The Coast Guard takes
no action. The Coast Guard considered
not updating 46 CFR part 67. However,
since July 1 of 2022, NVDC has accepted
electronic means of submission of build
evidence. Therefore, taking no action
implies preserving the mismatch
between regulations and the NVDC’s
current procedures. This would cause
confusion among the regulated public.
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Alternative (2). The Coast Guard
considered requiring paper submission
via mail delivery for vessel owners to
obtain a COD and other documents.
This alternative would have reverted the
NVDC to a previous practice of
receiving and issuing documents
through mail submission. This
alternative was rejected because it was
more expensive and less convenient
than electronic submission, for both the
NVDC and vessel owners. The time
required for mailing submissions and
documents, in addition to the expense
of postage and added wages for
personnel to process the forms, made
this a less desirable alternative.
Alternative (3). The Coast Guard
considered creating a web portal on the
NVDC website, to allow vessel owners
to submit documents directly into a
database. This would save time over
electronic submission via email.
However, a web portal must be built by
C5I, the command organization that
controls NVDC resources, and they
currently do not have the means to
create a web portal for document
submission. This alternative is,
therefore, unfeasible.
B. Small Entities
The Regulatory Flexibility Act of 1980
(RFA), 5 U.S.C. 601–612,14 requires
federal agencies to consider the
potential impact on small entities when
they issue a rule after being required to
first publish a general NPRM. Under 5
U.S.C. 604(a), a regulatory flexibility
analysis is not required for this final
rule because, under 5 U.S.C. 553(b)(A)
and (B), we are not required to publish
14 https://www.govinfo.gov/content/pkg/USCODE2022-title5/pdf/USCODE-2022-title5-partI-chap6sec601.pdf (accessed December 10, 2024).
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a general NPRM. This final rule is
exempt from notice and comment
requirements for the reasons stated in
Section IV. F. Administrative Procedure
Act. Therefore, we did not conduct a
regulatory flexibility analysis for this
rule.
C. Assistance for Small Entities
Under section 213(a) of the Small
Business Regulatory Enforcement
Fairness Act of 1996, Public Law 104–
121, we offer to assist small entities in
understanding this rule so that they can
better evaluate its effects on them and
participate in the rulemaking. The Coast
Guard will not retaliate against small
entities that question or complain about
this rule or any policy or action of the
Coast Guard.
Small businesses may send comments
on the actions of Federal employees
who enforce, or otherwise determine
compliance with, Federal regulations to
the Small Business and Agriculture
Regulatory Enforcement Ombudsman
and the Regional Small Business
Regulatory Fairness Boards. The
Ombudsman evaluates these actions
annually and rates each agency’s
responsiveness to small business. If you
wish to comment on actions by
employees of the Coast Guard, call 1–
888–REG–FAIR (1–888–734–3247).
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D. Collection of Information
This rule calls for no new or revised
collection of information under the
Paperwork Reduction Act of 1995, 44
U.S.C. 3501–3520. We estimate the time
burden to submit paper versus
electronic copies to be the same.
E. Federalism
A rule has implications for federalism
under Executive Order 13132
(Federalism) if it has a substantial direct
effect on States, on the relationship
between the National Government and
the States, or on the distribution of
power and responsibilities among the
various levels of government. We have
analyzed this rule under Executive
Order 13132 and have determined that
it is consistent with the fundamental
federalism principles and preemption
requirements described in Executive
Order 13132. Our analysis follows.
It is well settled that States may not
regulate in categories reserved for
regulation by the Coast Guard. It is also
well settled that all the categories
covered in 46 U.S.C. 3306, 3703, 7101,
and 8101 (design, construction,
alteration, repair, maintenance,
operation, equipping, personnel
qualification, and manning of vessels),
as well as the reporting of casualties and
any other category in which Congress
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intended the Coast Guard to be the sole
source of a vessel’s obligations, are
within the field foreclosed from
regulation by the States. See the
Supreme Court’s decision in United
States v. Locke and Intertanko v. Locke,
529 U.S. 89, 120 S.Ct. 1135 (2000). This
rule implements changes to the federal
vessel documentation requirements of
46 U.S.C. chapter 121, over which
Congress clearly has granted the Coast
Guard, via delegation from the
Secretary, exclusive authority.
Therefore, because the States may not
regulate within these categories, this
rule is consistent with the fundamental
federalism principles and preemption
requirements described in Executive
Order 13132.
While it is well settled that States may
not regulate in categories in which
Congress intended the Coast Guard to be
the sole source of a vessel’s obligations,
the Coast Guard recognizes the key role
that State and local governments may
have in making regulatory
determinations.
F. Administrative Procedure Act
The Coast Guard believes that this
rule should be exempt from notice and
comment rulemaking requirements as a
rule of procedure under 5 U.S.C.
553(b)(A) and for good cause under 5
U.S.C. 553(b)(B).
Rules are procedural if they are
‘‘primarily directed toward improving
the efficient and effective operations of
an agency.’’ Mendoza v. Perez, 754 F.3d
1002, 1023 (D.C. Cir. 2014) (quoting
Batterton v. Marshall, 648 F.2d 694, 702
n.34 (D.C.C. 1980). The purpose of the
exception is ‘‘to ensure that agencies
retain latitude in organizing their
internal operations.’’ Mendoza, 754 F.3d
at 1023 (quoting Batterton, 648 F.2d at
707); accord Bowen, 834 F.2d at 1047.
Moreover, ‘‘the critical feature of a rule
that satisfies the so-called procedural
exception is that it covers agency
actions that do not themselves alter the
rights or interests of parties, although it
may alter the manner in which the
parties present themselves or their
viewpoints to the agency.’’ James V.
Hurson Assocs., Inc. v. Glickman, 229
F.3d 277, 280 (D.C. Cir. 2000) (internal
quotation marks omitted).
Here, because the rule modifies the
procedures and means for the
submission of files, the rule is primarily
directed toward improving the efficient
and effective operations of the
submission process. See Mendoza, 754
F.3d at 1023. By expanding the
electronic means by which parties may
submit documentation, this rule
conforms Coast Guard acceptance of
documentation with the ways in which
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Sfmt 4700
parties typically submit documentation.
This expansion improves the efficiency
of the document submission process for
evidence of build and CODs. The other
changes made by this rule—enabling
customers to submit copies of original
documents during the Initial COD
application; removing the requirement
to return paper CODs to the NVDC
during the COD replacement, exchange,
or deletion process; and increasing the
time to report changes in information
that a COD is based on, from 10 to 30
days—streamline the file submission
process and enhance the Coast Guard’s
ability to comprehensively accept, track,
store, and adjudicate vessel
documentation. Additionally, these
changes are mere housekeeping
initiatives that codify the NVDC’s
current policies, procedures, and
practices to align with OMB’s policy to
move federal agencies to an electronic
environment. Finally, the rule in no way
alters the substantive rights of parties.
The rule does not affect the substantive
standards by which the Coast Guard
makes determinations or otherwise
impact agency officials’ discretion. The
rule has no impact on the outcome of
NVDC determinations to issue or not
issue a vessel owner a COD. Indeed, the
updated provisions increase access to
the COD submission process by
lessening submission requirements,
maintaining the option to submit paper
documentation, and merely codifying
current practice and policy. In sum, the
rule is exempt from notice-andcomment as a rule of procedure under
5 U.S.C. 553(b)(A).
The Coast Guard also believes the
good cause exception under 5 U.S.C.
553(b)(B) to notice-and-comment
rulemaking applies. Section 553(b)(B)
provides an exception from the notice
and comment requirements when an
agency finds, for good cause, that notice
and comment are ‘‘impracticable,
unnecessary, or contrary to the public
interest.’’ As explained above, the
changes do not affect the rights or
interests of regulated parties and indeed
are less restrictive. Moreover, the rule
merely updates the procedure for vessel
owners to present information
electronically while still maintaining
paper and existing electronic means of
submission. The replacement of the
specific fax submission option with an
open-ended electronic submission
allowance is not only inconsequential
but also conforms the submission
process to modern modalities of
document submission actually used by
the public. Accordingly, because the
changes made by the rule are
insignificant in nature and impact, and
E:\FR\FM\16DER1.SGM
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Federal Register / Vol. 89, No. 241 / Monday, December 16, 2024 / Rules and Regulations
inconsequential to the public, the Coast
Guard believes there exists good cause
to exempt the rule from notice-andcomment rulemaking under 5 U.S.C.
553(b)(B).
G. Unfunded Mandates
The Unfunded Mandates Reform Act
of 1995, 2 U.S.C. 1531–1538, requires
Federal agencies to assess the effects of
their discretionary regulatory actions. In
particular, the Act addresses actions
that may result in the expenditure by a
State, local, or Tribal government, in the
aggregate, or by the private sector of
$100,000,000 (adjusted for inflation) or
more in any one year. Although this rule
will not result in such expenditure, we
do discuss the effects of this rule
elsewhere in this preamble.
H. Taking of Private Property
This rule will not cause a taking of
private property or otherwise have
taking implications under Executive
Order 12630 (Governmental Actions and
Interference with Constitutionally
Protected Property Rights).
I. Civil Justice Reform
This rule meets applicable standards
in sections 3(a) and 3(b)(2) of Executive
Order 12988 (Civil Justice Reform) to
minimize litigation, eliminate
ambiguity, and reduce burden.
J. Protection of Children
We have analyzed this rule under
Executive Order 13045 (Protection of
Children from Environmental Health
Risks and Safety Risks). This rule is not
an economically significant rule and
will not create an environmental risk to
health or risk to safety that might
disproportionately affect children.
K. 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.
lotter on DSK11XQN23PROD with RULES1
L. Energy Effects
We have analyzed this rule under
Executive Order 13211 (Actions
Concerning Regulations That
Significantly Affect Energy Supply,
Distribution, or Use). We have
determined that it is not a ‘‘significant
energy action’’ under that order because
it is not a ‘‘significant regulatory action’’
under Executive Order 12866 and is not
VerDate Sep<11>2014
16:32 Dec 13, 2024
Jkt 265001
likely to have a significant adverse effect
on the supply, distribution, or use of
energy.
M. Technical Standards and
Incorporation by Reference
The National Technology Transfer
and Advancement Act, codified as a
note to 15 U.S.C. 272, directs agencies
to use voluntary consensus standards in
their regulatory activities unless the
agency provides Congress, through
OMB, with an explanation of why using
these standards would be inconsistent
with applicable law or otherwise
impractical. Voluntary consensus
standards are technical standards (e.g.,
specifications of materials, performance,
design, or operation; test methods;
sampling procedures; and related
management systems practices) that are
developed or adopted by voluntary
consensus standards bodies.
This final rule does not use technical
standards. Therefore, we did not
consider the use of voluntary consensus
standards.
N. Environment
We have analyzed this rule under
Department of Homeland Security
Management Directive 023–01, Rev. 1,
associated implementing instructions,
and Environmental Planning
COMDTINST 5090.1 (series), which
guide the Coast Guard in complying
with the National Environmental Policy
Act of 1969 (42 U.S.C. 4321–4370f), and
have made a determination that this
action is one of a category of actions that
do not individually or cumulatively
have a significant effect on the human
environment. A Record of
Environmental Consideration
supporting this determination is
available in the docket. For instructions
on locating the docket, see the
ADDRESSES section of this preamble.
This rule is categorically excluded
under paragraph A3 and L54 of
Appendix A, Table 1 of DHS Instruction
Manual 023–01–001–01, Rev 1.
Paragraph A3 pertains to ‘‘promulgation
of rules of a strictly administrative or
procedural nature;’’ and those that
‘‘interpret or amend an existing
regulation without changing its
environmental effect.’’ Paragraph L54
pertains to regulations that are editorial
or procedural. This rule updates 46 CFR
part 67 to reflect the NVDC’s current
processes and capabilities, particularly
regarding electronic files. The changes
include removing the requirement for
‘‘original’’ documents provided for
evidence of the facts of build. The rule
eliminates references to specific
electronic means of submission of
documents, as NVDC systems can no
PO 00000
Frm 00037
Fmt 4700
Sfmt 4700
101499
longer accept physical faxes or
electronic faxes. Finally, the rule
harmonizes regulations on the length of
time that a vessel owner has to report
changes in information that a COD is
based on, from 10 days to 30 days with
statutory requirements.
List of Subjects in 46 CFR Part 67
Reporting and recordkeeping
requirements, Vessels.
For the reasons discussed in the
preamble, the Coast Guard amends 46
CFR part 67 as follows:
PART 67—DOCUMENTATION OF
VESSELS
1. The authority citation is revised to
read as follows:
■
Authority: 14 U.S.C. 664; 31 U.S.C. 9701;
42 U.S.C. 9118; 46 U.S.C. 2103, 2104, 2107,
12102, 12103, 12104, 12105, 12106, 12113,
12133, 12139; DHS Delegation 00170.1,
Revision No. 01.4.
2. Amend § 67.99 by revising
paragraph (a) introductory text to read
as follows:
■
§ 67.99
Evidence of build.
(a) Evidence of the facts of build may
be a copy of either the original,
completed form CG–1261 (Builder’s
Certification and First Transfer of Title),
or other document containing the same
information, executed by a person
having personal knowledge of the facts
of build because that person:
*
*
*
*
*
§ 67.113
[Amended]
3. Amend § 67.113 in paragraph (e) by
removing the number ‘‘10’’ and adding
in its place the number ‘‘30’’.
■ 4. Amend § 67.141 by revising
paragraph (a) to read as follows:
■
§ 67.141
Application procedure; all cases.
*
*
*
*
*
(a) Submit the following to the
National Vessel Documentation Center:
(1) Application for Initial Issue,
Exchange, or Replacement of Certificate
of Documentation; or Redocumentation
(form CG–1258);
(2) Title evidence, if applicable; and
(3) Mortgagee consent on form CG–
4593, if applicable.
*
*
*
*
*
■ 5. Amend § 67.167 by revising
paragraph (a) to read as follows:
§ 67.167 Requirement for exchange of
Certificate of Documentation.
(a) When application for exchange of
the Certificate of Documentation is
required upon the occurrence of one or
more of the events described in
paragraph (b), (c), or (d) of this section,
E:\FR\FM\16DER1.SGM
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Federal Register / Vol. 89, No. 241 / Monday, December 16, 2024 / Rules and Regulations
or the owner of the vessel chooses to
apply for exchange of the Certificate
pursuant to paragraph (e) of this section,
the owner must apply for an exchange
of the Certificate in accordance with
subpart K of this part.
*
*
*
*
*
§ 67.169
[Amended]
§ 67.321 Requirement to report change of
address of managing owner.
Upon the change of address of the
managing owner of a documented
vessel, the managing owner must report
the change of address to the National
Vessel Documentation Center within 30
days of its occurrence.
Dated: December 11, 2024.
W.R. Arguin,
Rear Admiral, U.S. Coast Guard, Assistant
Commandant for Prevention Policy.
6. Amend § 67.169 by removing and
reserving paragraph (b).
■ 7. Amend § 67.171 by revising
paragraph (b) to read as follows:
■
[FR Doc. 2024–29555 Filed 12–13–24; 8:45 am]
§ 67.171 Deletion; requirement and
procedure.
BILLING CODE 9110–04–P
*
*
*
*
*
(b) Where a cause for deletion arises
for any reason under paragraphs (a)(1)
through (6) of this section, the owner
must send to the National Vessel
Documentation Center a statement
setting forth the reason(s) deletion is
required.
*
*
*
*
*
■ 8. Revise § 67.209 to read as follows:
§ 67.209 No original instrument
requirement.
A copy of the original signed and
acknowledged instrument must be
presented. The copy may be delivered to
the National Vessel Documentation
Center or transmitted electronically in
accordance with the procedures in
§ 67.218 of this part. Signatures may be
affixed manually or digitally.
■ 9. Revise § 67.218 to read as follows:
lotter on DSK11XQN23PROD with RULES1
§ 67.218 Optional electronic filing of
applications and instruments.
■
■
[Removed]
10. Remove § 67.219.
11. Revise § 67.321 to read as follows:
VerDate Sep<11>2014
16:32 Dec 13, 2024
Jkt 265001
47 CFR Part 4
[PS Docket Nos. 15–80 and 13–75, ET
Docket No. 04–35; FCC 22–88; PS Docket
Nos. 23–5 and 15–80, WC Docket No. 18–
336; FCC 23–57; FR ID 267131]
Disruptions to Communications;
Improving 911 Reliability; Ensuring the
Reliability and Resiliency of the 988
Suicide & Crisis Lifeline; Rules
Concerning Disruptions to
Communications; Implementation of
the National Suicide Hotline
Improvement Act of 2018
Federal Communications
Commission.
ACTION: Final rule; announcement of
effective date.
AGENCY:
In this document, the Federal
Communications Commission (‘‘FCC’’
or ‘‘Commission’’) announces that the
Office of Management and Budget
(OMB) has approved, for a period of
three years, the information collection
associated with the Commission’s
Second Report and Order in PS Docket
Nos. 15–80 and 13–75, ET Docket No.
04–35, FCC 22–88 (2022 Second Report
and Order), and the Commission’s
Report and Order in PS Docket Nos. 23–
5 and 15–80, WC Docket No. 18–336,
FCC 23–57 (2023 Report and Order).
This document is consistent with the
2022 Second Report and Order and
2023 Report and Order, which stated
that the Commission would publish a
document in the Federal Register
announcing the effective date of the new
information collection requirements.
DATES: The amendments to 47 CFR 4.9
(amendatory instruction 3) published at
88 FR 9756, February 15, 2023, and the
amendments to 47 CFR 4.9 (amendatory
instruction 4) published at 89 FR 2503,
January 16, 2024, are effective April 15,
2025.
FOR FURTHER INFORMATION CONTACT:
SUMMARY:
(a) Any instrument identified as
eligible for filing and recording under
§ 67.200 may be submitted using
electronic filing. The method(s) or
address(es) to be used for electronic
filing may be obtained from the National
Vessel Documentation Center’s website.
If the instrument submitted for filing
pertains to a vessel that is not a
currently documented vessel, a
completed Application for Initial Issue,
Exchange, or Replacement Certificate of
Documentation, or Return to
Documentation (form CG–1258) (or a
letter application for deletion from
documentation) must already be on file
with the National Vessel Documentation
Center or must be submitted
electronically with the instrument being
filed.
(b) If the filing of any instrument is
terminated for any cause under
§ 67.217(a), the instrument will be
returned to the submitter.
§ 67.219
FEDERAL COMMUNICATIONS
COMMISSION
PO 00000
Frm 00038
Fmt 4700
Sfmt 4700
Tara Shostek, Attorney Advisor,
Public Safety and Homeland Security
Bureau, at (202) 418–8130, or by email,
at tara.shostek@fcc.gov.
For additional information concerning
the Paperwork Reduction Act
information collection requirements,
contact Nicole Ongele at (202) 418–2991
or via email: Nicole.Ongele@fcc.gov.
SUPPLEMENTARY INFORMATION: This
document announces that, on November
5, 2024, OMB approved, until November
30, 2027, the information collection
requirements adopted in (i) the
Commission’s Second Report and Order
(2022 Second Report and Order) in PS
Docket Nos. 15–80 and 13–75, ET
Docket No. 04–35, FCC 22–88, adopted
on November 17, 2022, and released on
November 18, 2022, and, (ii) the
Commission’s Report and Order (2023
Report and Order) in PS Docket Nos.
23–5 and 15–80, WC Docket No. 18–
336, FCC 23–57, adopted on July 20,
2023, and released on July 21, 2023.
In the 2022 Second Report and Order,
the Commission adopted rule
amendments to 47 CFR 4.9 (by revising
paragraphs (a)(4) and (c)(2)(iv); adding a
heading for paragraph (e); and revising
paragraphs (e)(1)(v), (f)(4), (g)(1)(i), and
(h)) that required review by OMB
pursuant to the Paperwork Reduction
Act (PRA). Those amendments were
included in the Final Rules section of
2022 Second Report and Order with an
amendatory instruction that they be
delayed indefinitely (because they
required OMB approval before they
could be made effective). The 2023
Report and Order also adopted
amendments to 47 CFR 4.9 (by revising
paragraphs (a)(4), (c)(2)(iv), (e)(1)(v),
(f)(4), and (g)(1)(i) and adding paragraph
(i)) that required review by OMB
pursuant to the PRA. Those
amendments were included in the Final
Rules section of 2023 Report and Order
with an amendatory instruction that
they be delayed indefinitely (because
they required OMB approval before they
could be made effective). The
amendments to § 4.9 adopted in the
2023 Report and Order are additive to
and to not conflict with the
amendments to § 4.9 adopted in the
2022 Second Report and Order.
The amendments identified herein
adopted in the 2022 Second Report and
Order and 2023 Report and Order were
submitted for OMB review as a single
information collection. Because OMB
has approved this information
collection, the Commission is setting an
effective date for the above-cited rule
revisions of 120 days following
publication of this document in the
Federal Register.
E:\FR\FM\16DER1.SGM
16DER1
]]>Agencies
[Federal Register Volume 89, Number 241 (Monday, December 16, 2024)]
[Rules and Regulations]
[Pages 101490-101500]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-29555]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF HOMELAND SECURITY
Coast Guard
46 CFR Part 67
[Docket No. USCG-2023-0584]
RIN 1625-AC93
Updated Document Submission Process for Compliance With
Electronic Records Mandate
AGENCY: Coast Guard, DHS.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Coast Guard is issuing a final rule to update regulations
that reflect the Coast Guard National Vessel Documentation Center's
processes and capabilities, as well as align regulations with statutory
reporting timelines. The processes noted pertain to electronic file
submissions, requirements for submission of original build evidence,
and return of existing Certificates of Documentation (CODs). In
addition, the time period related to reporting changes to COD
information is updated to align with statute.
DATES: This final rule is effective January 15, 2025.
ADDRESSES: To view documents mentioned in this preamble as being
available in the docket, go to www.regulations.gov, type USCG-2023-0584
in the search box, and click ``Search.'' Next, in the Document Type
column, select ``Supporting & Related Material.''
FOR FURTHER INFORMATION CONTACT: For information about this document,
call or email Mr. Ronald (Sam) Teague, Coast Guard National Vessel
Documentation Center; telephone (304) 271-2506, email
[email protected].
SUPPLEMENTARY INFORMATION:
Table of Contents for Preamble
I. Abbreviations
II. Basis and Purpose, and Regulatory History
III. Background and Discussion of Rule
IV. Regulatory Analyses
A. Regulatory Planning and Review
B. Small Entities
C. Assistance for Small Entities
D. Collection of Information
E. Federalism
F. Administrative Procedure Act
G. Unfunded Mandates
H. Taking of Private Property
I. Civil Justice Reform
J. Protection of Children
K. Indian Tribal Governments
L. Energy Effects
M. Technical Standards
N. Environment
I. Abbreviations
Builder's Certificate Builder's Certification and First Transfer of
Title (form CG-1261)
CFR Code of Federal Regulations
CGAA 2018 Frank LoBiondo Coast Guard Authorization Act of 2018
COD Certificate of Documentation
CY Calendar year
DHS Department of Homeland Security
Fax Facsimile
FR Federal Register
FTE Full-time equivalent
GS General Schedule
NARA National Archives and Records Administration
NPRM Notice of proposed rulemaking
NVDC U.S. Coast Guard National Vessel Documentation Center
OMB Office of Management and Budget
OPM Office of Personnel Management
PDF Portable document format
Sec. Section
U.S.C. United States Code
YoY Year-over-year
YTD Year-to-date
II. Basis and Purpose, and Regulatory History
Section 2103 of Title 46 of the United States Code (U.S.C.) gives
the Secretary of the Department in which the Coast Guard is operating
broad regulatory authority to carry out the provisions of 46 U.S.C.
subtitle II (Vessels and Seamen), where vessel documentation provisions
in 46 U.S.C. chapter 121 are located. The Secretary's authority is
delegated to the Coast Guard by the Department of Homeland Security
(DHS) Delegation No. 00170.1, Revision No. 01.4, paragraph II (92)(a).
The Coast Guard did not publish a notice of proposed rulemaking
(NPRM) before this rule. As explained in Section IV.F Administrative
Procedure Act of this preamble, the Coast Guard finds that this rule is
exempt from notice and comment as a procedural rule under 5 U.S.C.
553(b)(A) and for good cause under 5 U.S.C. 553(b)(B).
III. Background and Discussion of Rule
In 2007, the Coast Guard amended vessel documentation regulations
to eliminate the requirement to provide certain original documents to
the U.S. Coast Guard National Vessel Documentation Center (NVDC) for
recording and eliminated the additional fee for filing by facsimile
(fax).\1\ Currently, Coast Guard regulations allow the filing of
instruments, such as Bills of Sale, Deeds of Gifts, Mortgages, and
Notices of Claim of Lien, to the NVDC by paper submission or
electronically. Regulations on the
[[Page 101491]]
electronic means for filing specify two technologies: via fax or
Portable Document Format (PDF) attachment(s) to electronic mail.
---------------------------------------------------------------------------
\1\ Vessel Documentation; Recording of Instruments direct final
rule, 72 FR 42310, Aug. 2, 2007; and confirmation of effective date,
72 FR 58762, Oct. 17, 2007.
---------------------------------------------------------------------------
This rule removes references to the specific electronic filing
methodologies of PDF and faxing and revises the regulations with more
general terms to capture other electronic filing options. It also
removes referencing a specific technology that is no longer a part of
NVDC's current process, because the system provided to and used by the
NVDC does not support fax capabilities.
Electronic filing is not mandatory. With this rule, vessel owners
retain the ability to file paper records with the Coast Guard.
Historically, paper records that were scanned and uploaded into the
system were ultimately archived with the Federal Records Center, in
accordance with National Archives and Records Administration (NARA)
requirements. The NVDC still scans and uploads paper records, but,
NARA, with few exceptions, stopped accepting paper records as of
January 1, 2023. See Transition to Electronic Records, OMB and NARA
Memorandum M-19-21 (June 28, 2019).\2\ NARA does recognize a possible
exception for records of intrinsic historic value to its rule on no
longer accepting paper documents. See Federal Records Management:
Digitizing Permanent Records and Reviewing Records Schedules, 88 FR
28410, 28412-13 (May 4, 2023) and Guidance on OMB and NARA Memorandum
Transition to Electronic Records, NARA Bulletin 2020-01 (September 30,
2020).\3\ However, that exception would not apply to the vast majority
of NVDC records, if any. Therefore, paper records currently submitted
to the NVDC are shelved for up to 2 years awaiting destruction by the
Coast Guard.
---------------------------------------------------------------------------
\2\ https://www.archives.gov/files/records-mgmt/policy/m-19-21-transition-to-federal-records.pdf (accessed December 10, 2024).
\3\ https://www.archives.gov/records-mgmt/bulletins/2020/2020-01
(accessed December 10, 2024).
---------------------------------------------------------------------------
In response to NARA's paper processing change, the NVDC is
maximizing electronic filing capabilities to reduce the need to
digitize physical submissions, store the submissions, and ultimately
destroy them. Additionally, more general language in the regulations
allows the Coast Guard and affected vessel owners to take advantage of
developing technologies as they become available for electronic
submission of instruments.
Currently, 46 CFR 67.99 requires original vessel build evidence.
Without the ability to send original documents to NARA, the NVDC is
required to either mail the form CG-1261, the original Builder's
Certification and First Transfer of Title (hereafter ``Builder's
Certificate''), to the vessel owner, or shred the document. The NVDC
currently accepts copies of other original documents and ceased
requiring vessel owners to submit original evidence of build as of July
1, 2022. In line with this practice, the Coast Guard is amending 46 CFR
67.99 to remove the requirement for original evidence of build
documents.
In addition, 46 CFR 67.141(a)(4), 67.167(a), and 67.169(b)
currently require an outstanding Certificate of Documentation (COD) be
submitted as part of the application procedure for COD replacement,
exchange, or deletion. This rulemaking removes this requirement.
On December 4, 2018, Congress enacted the Frank LoBiondo Coast
Guard Authorization Act of 2018 (CGAA 2018). Section 512 of the CGAA
2018 amended 46 U.S.C. 12105(e)(3)(A) \4\ to require vessel owners to
notify the Coast Guard no later than 30 days after each change in
information that the issuance of a COD for the vessel is based on if it
occurs before the expiration of the certificate. The Coast Guard
previously revised 46 CFR 67.319 to reflect this statutory change (86
FR 5022, Jan. 19, 2021). With this final rule, the Coast Guard amends
46 CFR 67.113(e) and 67.321 to also extend, from 10 to 30 days, the
time that a vessel owner has to report a change of a managing owner's
address to the NVDC.
---------------------------------------------------------------------------
\4\ Public Law 115-282, 132 Stat. 4192.
---------------------------------------------------------------------------
This rulemaking will benefit vessel owners in the form of greater
clarification by codifying current policy and practice at the NVDC of
not requiring vessel owners to mail original build evidence and
instruments. In addition, Coast Guard regulations will accurately
reflect current statutory periods for vessel owners to submit changes
to their address used to apply for a COD. The Coast Guard will also
benefit from greater clarity, as this final rule harmonizes the CFR
with current practices.
IV. Regulatory Analyses
We developed this rule after considering numerous statutes and
Executive orders related to rulemaking. Below, we summarize our
analyses based on these statutes or Executive orders.
A. Regulatory Planning and Review
Executive Orders 12866 (Regulatory Planning and Review), as amended
by Executive Order 14094 (Modernizing Regulatory 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 costs and
benefits, reducing costs, harmonizing rules, and promoting flexibility.
The Office of Management and Budget (OMB) has not designated this
rule a significant regulatory action under section 3(f) of Executive
Order 12866, as amended by Executive Order 14094. Accordingly, OMB has
not reviewed this regulatory action. A regulatory analysis follows.
Summary of Regulatory Analysis
As discussed in Section III, Background and Discussion of Rule, in
this preamble, the NVDC no longer sends or receives faxes, leaving PDF
attachment to email as the only electronic means of submission. Since
July 1 of 2022, the Coast Guard ceased requiring vessel owners to
submit original Builder's Certificates to the NVDC, and NVDC began
accepting copies of the original certificate.\5\ To better implement
this change, the Coast Guard is maximizing electronic filing
capabilities, although vessel owners will retain the option to submit
paper records to the Coast Guard. Additionally, more general language
in the regulations allows the Coast Guard to take advantage of
developing technologies as they become available for electronic
submission of records.
---------------------------------------------------------------------------
\5\ https://www.dco.uscg.mil/Portals/9/DCO%20Documents/NVDC/Change%20in%20Requirements%20for%20Original%20Build%20Certificate.pdf?ver=qOU5UxE1-bvviJMo75ZCmA%3D%3D (accessed December 10, 2024).
---------------------------------------------------------------------------
To provide a comprehensive analysis covering both of these
programmatic changes with implementation of the final rule, the Coast
Guard utilizes two baselines, a pre-program change baseline that
represents the state of the world without the program change in 2022
and a ``no action'' baseline that represents the state of the world
without the regulation. According to federal guidelines, the economic
impact of the rule should be accounted for in the period in which the
changes occur. The rulemaking aligns regulations with current industry
practice, which existed prior to the rulemaking. Therefore, the
economic impact of the rule, which normally includes costs, cost-
savings,
[[Page 101492]]
and benefits, will be attributed to the ``pre-program change''
baseline.
The ``pre-program'' baseline is used to measure the economic
impacts of the program changes (a timespan that includes events
beginning in 2022 through 2033), and the ``no action'' baseline is used
to measure the impacts of the final rule (a projected 10-year period,
which includes events beginning in 2024 through 2033).
Tables 1 and 2 present the overall impacts for both baselines.
---------------------------------------------------------------------------
\6\ Estimates for total COD applicants are not used in the
estimation of cost savings. Total COD applications were estimated
using a 5-year moving average, and similar to methods described
below for the affected population methodology, we applied a growth
rate to estimate future years and an annual average.
Table 1--Summary of the Affected Population, Costs, Cost-Savings, and
Benefits
------------------------------------------------------------------------
Final rule
Program change impacts compared
Category impacts (``no to ``no action''
action'' baseline) baseline
------------------------------------------------------------------------
Applicability.................... July 1, 2022: the Original Evidence
Coast Guard began of Build
accepting copies Documents:
of Builder's Amends 46 CFR
Certificates and 67.99(a) and
other documents reflects current
through processes and
electronic means, capabilities at
primarily email the NVDC,
with PDF eliminating the
attachments. requirement for
vessel owners to
submit original
evidence of
build documents
and allowing
copies.
Reporting Period:
Amends 46 CFR
67.113(e) and
67.321 to extend
the time, from
10 days to 30
days, in which a
vessel owner
must notify the
NVDC of a change
of address, or
when information
submitted for
the issuance of
a COD changes.
Electronic Record
Submissions:
Amends 46 CFR
67.209, 67.218
and 67.219 to
eliminate
restrictions on
electronic
submission
options.
Return of CODs:
Amends 46 CFR
67.167(a) and
67.171(b), and
deletes
67.169(b) and
141(a)(4), which
requires
applicants to
return original
CODs upon
application for
a replacement or
exchange of COD.
Affected Population.............. Original Evidence Original Build
of Build Evidence:
Documents: Approximately
Approximately 20,068 Initial
20,068 Initial COD applications
COD applications are expected to
are expected to be submitted to
be submitted to the NVDC
the NVDC annually annually over
over the next 10 the next 10
years. years.
Additionally, Reporting Period:
this population On average, this
includes the change applies
18,336 and 17,558 to the entire
applicants who population of
submitted to NVDC NVDC customers,
in 2022 and 2023, estimated at
respectively. 161,587 COD
Electronic Record holders over the
Submissions: On next 10 years.
average, this Electronic Record
change applies to Submissions: On
the entire average, this
population of change applies
NVDC customers, to the entire
estimated at population of
161,587 \6\ COD NVDC customers,
holders over the estimated at
next 10 years. 161,587 COD
Additionally, holders over the
this population next 10 years.
includes the Return of CODs:
213,087 and On average, this
174,343 change applies
applicants who to the
submitted to NVDC population of
in 2022 and 2023, NVDC customers
respectively. who submit a COD
Return of CODs: On other than an
average, this Initial COD,
change applies to estimated at
the population of 141,519 COD
NVDC customers holders over the
who submit a COD next 10 years.
other than an
Initial COD,
estimated at
141,519 COD
holders over the
next 10 years.
Additionally,
this population
includes the
194,751 and
156,785
applicants who
submitted to NVDC
in 2022 and 2023,
respectively.
Costs............................ Additional costs This final rule
were not imposed does not impose
by a program any new costs to
change to industry by
accepting amending 46 CFR
electronic 67.99(a) and
versions of a harmonizing CFR
Builder's language with
Certificate, current
among other procedures at
documents, since NVDC, as the
July 1 of 2022. NVDC has
accepted
electronic
versions of a
Builder's
Certificate,
among other
documents, since
July 1 of 2022.
The option of
submitting an
original
document to the
NVDC by mail is
preserved in
this final rule.
Cost-savings (in 2023 dollars, 2% Electronic This final rule
discount rate) *. Records--Industry does not impose
: Estimated any new cost
annualized cost- savings beyond
savings of those
approximately attributable to
$14,914 in 2023 the program
dollars, change. The
discounted at 2 opportunity for
percent. cost saving to
Electronic industry began
Records--Governme in July 2022,
nt: Estimated when vessels
annualized cost owners no longer
savings of had to submit
approximately original
$208,985 in 2023 evidence of
dollars, build documents
discounted at 2 to the Coast
percent. Guard. The cost
Estimated total savings of this
annualized cost- new practice
savings of were incurred
approximately even without a
$223,899 in 2023 new regulation
dollars, codifying the
discounted at 2 practice.
percent. Therefore, all
cost savings in
this analysis
are assigned to
the program
change in 2022.
Additionally,
there are no
estimated cost
savings to
industry or
Government
associated with
amending 46 CFR
67.113(e) and
67.321.
Benefits......................... Electronic Reporting Period--
Records--Industry Industry: There
: The electronic are no
submission of qualitative or
evidence of build quantitative
benefits industry benefits.
by reducing the However,
burden to the industry is
public of given an
printing and increase in the
mailing paper allotted time
records to the provided to
NVDC. vessel owners in
Electronic which they must
Records--Governme notify the NVDC
nt: Government of any changes
benefits by to the issuance
reducing the need of their COD,
to digitize from 10 to 30
original physical days.
applications, Reporting Period--
store the Government:
submissions, and There are no
ultimately shred qualitative
or send evidence benefits to
of build Government from
documents back to extending the
vessel owners. period in which
vessel owners
must notify the
NVDC of any
changes to the
issuance of
their COD from
10 to 30 days.
------------------------------------------------------------------------
* Totals may not add due to rounding.
[[Page 101493]]
Table 2--Baseline Matrix--Changes Between the Final Rule and the CFR by Baseline
----------------------------------------------------------------------------------------------------------------
Description of ``No action''
Subpart change Type of change baseline impact ``Final rule'' impact
----------------------------------------------------------------------------------------------------------------
Sec. 67.99(a)..... Revises the text, Economic (pre- The Coast Guard No economic impact.
``Evidence of the programmatic began receiving
facts of build may change baseline) electronic copies
be either a and Editorial. of documents in
completed original July of 2022. This
form CG-1261 or immediately
other original reduced the cost
document. . .'' to to vessel owners
``Evidence of the and operators of
facts of build may the previous
be a copy of requirement to
either the mail in original
original, documents.
completed form CG- Estimated
1261 (Builder's annualized cost-
Certification and savings to
First Transfer of industry of
Title), or other approximately
document. . .''. $14,165 in 2023
dollars,
discounted at 2%.
Estimated
annualized cost-
savings to
Government of
approximately
$198,501 in 2023
dollars,
discounted at 2%.
Total annualized
cost-savings of
approximately
$212,666 in 2023
dollars,
discounted at 2%.
Sec. 67.113(e).... Update ``within 10 Editorial.......... No economic impact. No economic impact.
days'' to ``within
30 days,'' in
accordance with
67.319.
Sec. 67.141(a)(4). Remove ``(4) If the Editorial.......... No economic impact. No economic impact.
application is for
replacement of a
mutilated document
or exchange of
documentation, the
outstanding
Certificate of
Documentation.''.
Sec. 67.167(a).... Remove .''. . send Editorial.......... No economic impact. No economic impact.
or deliver the
Certificate to the
National Vessel
Documentation
Center, and . .
.''.
Sec. 67.169(b).... Remove ``b) When Editorial.......... No economic impact. No economic impact.
application for
replacement of a
Certificate of
Documentation is
required because
the Certificate
has been
mutilated, the
existing
Certificate must
be physically
given up to the
National Vessel
Documentation
Center.''.
Sec. 67.171(b).... Remove ``or deliver Editorial.......... No economic impact. No economic impact.
the original
Certificate of
Documentation to
the National
Vessel
Documentation
Center together
with.''.
Sec. 67.209....... Remove reference to Editorial.......... No economic impact. No economic impact.
67.218 and 67.219.
Sec. 67.218....... PDF filing--edit to Editorial.......... No economic impact. No economic impact.
reference
``electronic
filing.''.
Sec. 67.219....... 67.219 is Editorial.......... No economic impact. No economic impact.
eliminated
entirely.
Sec. 67.321....... Replaces the word Editorial.......... No economic impact. No economic impact.
``shall'' with
``must,'' and the
number ``10'' with
``30.''.
----------------------------------------------------------------------------------------------------------------
Affected Population/Methodology
Every application for an Initial COD submitted to the NVDC must
include evidence of build in the form of a Builder's Certificate or
other original documentation containing the same information. Given
that a Builder's Certificate, or other original documentation
containing the same information, must be submitted to the NVDC with
every Initial COD application, for our analysis, the number of
applications for Initial CODs submitted to the NVDC is used
interchangeably with the number of Builder's Certificates submitted to
the NVDC.
Table 3 displays the number of Initial COD applications submitted
to the NVDC for Commercial (b), Fishing (c), and Recreational Vessels
(d), beginning in calendar year (CY) 2018, and ending in CY 2023. The
sum of these categories will be considered ``Industry'' for purposes of
this rule. The sum of columns (b), (c), and (d) yields the total
Initial COD applications submitted to the NVDC per calendar year (e),
where (e) = (b) + (c) + (d).
Table 3--Initial CODs Applications (e) Submitted to the NVDC for Commercial (b), Fishing (c), and Recreational
Vessels (d)
----------------------------------------------------------------------------------------------------------------
Year Commercial Fishing Recreational Initial COD applications
(a) (b) (c) (d) (e) = (b) + (c) + (d)
----------------------------------------------------------------------------------------------------------------
2018.................................. 3,010 444 12,444 15,898
2019.................................. 3,161 450 12,811 16,422
2020.................................. 3,559 439 15,510 19,508
2021.................................. 3,790 466 15,798 20,054
2022.................................. 3,159 456 14,721 18,336
2023.................................. 3,269 471 13,818 17,558
----------------------------------------------------------------------------------------------------------------
Methodology--Affected Population
Our methodology begins with establishing an affected population
growth rate, to help project Initial COD applicants for an additional
10 years. Table 4 illustrates the year-over-year (YoY) change for each
vessel category, calculated as the percentage change within each
series, over the most recent 5 years' worth of data.
[[Page 101494]]
Table 4--Percentage Change of Initial COD Applications Between CY 2018 and CY 2023
----------------------------------------------------------------------------------------------------------------
Initial COD
Year Commercial Fishing Recreational applications
(a) (b) (c) (d) (e)
----------------------------------------------------------------------------------------------------------------
2018........................................... .............. .............. .............. ...............
2019........................................... 5.0 1.4 2.9 3.3
2020........................................... 12.6 -2.4 21.1 18.8
2021........................................... 6.5 6.2 1.9 2.8
2022........................................... -16.6 -2.1 -6.8 -8.6
2023........................................... 3.5 3.3 -6.1 -4.2
----------------------------------------------------------------
Average Growth............................. .............. .............. .............. * 2.4
----------------------------------------------------------------------------------------------------------------
* Average Growth figure is rounded. Therefore, totals may not sum due to rounding.
As we can see from Table 4, the range in growth between CY 2018 and
CY 2023 across all vessel categories fluctuated from a -16.6 percent
YoY decline in Commercial vessels (b) during CY 2022, to a 21.1 percent
YoY growth for Recreational vessels (d) in CY 2020. However, each
series has grown over time on average; approximately 2.2 percent for
Commercial vessels (b), 1.2 percent for Fishing vessels (c), and 2.6
percent for Recreational vessels (d). The average growth rate for all
Initial COD applications is estimated at 2.4 percent. This figure is
used to forecast the Initial COD applications for years 2024-2033.
Projecting Initial CODs from 2024 to 2033, Table 5 shows the
average number of Initial COD applications for the next 10 years,
derived by applying the 2.4 percent growth rate measured in Table 4. We
take the average annual estimate of Initial COD applications and use
that number to represent the affected population for Initial COD
applications for each year from 2024-2033 for both the pre-program
change baseline and the ``no action'' baseline. Here, the baselines are
treated equally, as we don't anticipate the final rule to induce a
change in applications.
Table 5--Initial CODs Projections for the Next 10-Years
----------------------------------------------------------------------------------------------------------------
Year Commercial Fishing Recreational Initial COD applications
(a) (b) (c) (d) (e) = (b) + (c) + (d)
----------------------------------------------------------------------------------------------------------------
2024.................................. 3,348 482 14,152 17,982
2025.................................. 3,429 494 14,494 18,416
2026.................................. 3,512 506 14,844 18,861
2027.................................. 3,596 518 15,202 19,317
2028.................................. 3,683 531 15,569 19,783
2029.................................. 3,772 544 15,945 20,261
2030.................................. 3,863 557 16,331 20,751
2031.................................. 3,957 570 16,725 21,252
2032.................................. 4,052 584 17,129 21,765
2033.................................. 4,150 598 17,543 22,291
-------------------------------------------------------------------------
Average 2024-2033................. .............. .............. .............. 20,068
----------------------------------------------------------------------------------------------------------------
Methodology--Industry and Government Cost Savings
With a value for the average Initial COD applications for future
years, we can begin estimating cost savings for all years, by
multiplying the annual affected population no longer needing to submit
a Builder's Certificate by the opportunity cost of either postage to
industry, and time and wages to assess the documents by the Federal
Government. Table 6 provides a list of key inputs used to estimate cost
savings including the postage rate for assessing industry savings and
time and wages associated with government savings.
Table 6--Inputs for Industry and Government Cost-Savings
[2022-2033]
------------------------------------------------------------------------
Inputs HR equivalent
------------------------------------------------------------------------
Government:
12-minute Process Time.................. 0.2 Hour.
Hourly Wage............................. $24.88.
Load Factor............................. 1.75.
GDP Deflator (2023)..................... 1.092.
Total Wage Rate......................... $47.64.
Industry:
Postage Submission Cost................. $0.68.
Percent of Submission................... 100%.
------------------------------------------------------------------------
[[Page 101495]]
Cost savings to industry is calculated as the product of the
estimated average number of Builder's Certificates that the Coast Guard
no longer expects to be submitted by mail annually, and the price of a
standard, stamped, letter-sized envelope bought through the United
States Postal Service (USPS). For years 2024 through 2033, the
estimated average affected population is approximately 20,068 Initial
COD applications submitted yearly, assuming 100 percent electronic
submission rate. Additionally, according to the USPS, the cost of
purchasing a standard, stamped, letter-sized envelope is approximately
$0.68.\7\ To estimate the average annualized cost savings per form not
mailed to the NVDC, we multiply the estimated annual affected
population of Initial CODs by the cost of mailing each form. For
example, for a given future year, we multiply the average 20,068
Initial COD applications by avoided postage of $0.68, to estimate an
annual cost savings of $13,646.
---------------------------------------------------------------------------
\7\ https://www.usps.com/business/prices.htm (accessed December
10, 2024).
---------------------------------------------------------------------------
Cost savings to government is calculated as the product of the
estimated average number of Initial COD applications that the Coast
Guard no longer expects to receive in the mail annually, and the 12
minutes it takes to process mailed-in forms, or 0.2 hours, and the
total wage rate of a GS-5 employee at $47.64 per hour (the total wage
rate is equal to the hourly wage multiplied by the load rate).
To explain more about Government savings estimates, in general,
once a Builder's Certificate paper copy is received by the NVDC,
General Schedule (GS)-5 personnel must first locate and open the mail,
put it in the mail tray, classify and sort it, and scan each Builder's
Certificate into the Coast Guard's database. Once the application has
been processed, the documents will be shelved at NVDC's file room and
await destruction. According to our subject matter expert at NVDC, this
process takes approximately 12 minutes per batch of paper copies, or
0.2 hours' worth of time for GS-5 employees (12 / 60 = 0.2 hrs.).
According to the Office of Personnel Management (OPM) salary table
published for CY 2024, which is the official publication for Federal
Government employees' salaries and wages, the average hourly wage-rate
in the Washington DC metropolitan area for a GS-5 employee at the step
5 level is approximately $24.88.\8\
---------------------------------------------------------------------------
\8\ https://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/salary-tables/24Tables/html/DCB_h.aspx (accessed
December 10, 2024).
---------------------------------------------------------------------------
To account for the employee benefits to which employees are
typically entitled, we use the Congressional Budget Office (CBO)'s
Comparing the Compensation of Federal and Private-Sector Employees,
2011 to 2015 \9\ study to derive a load factor. This is a one-time
study conducted by the CBO that compared the wages and salaries between
Federal Government and private sector employees.
---------------------------------------------------------------------------
\9\ Congressional Budget Office, Comparing the Compensation of
Federal and Private-Sector Employees, 2011 to 2015.'' https://www.cbo.gov/system/files/115th-congress-2017-2018/reports/52637-federalprivatepay.pdf (accessed December 10, 2024).
---------------------------------------------------------------------------
Multiplying a benefit factor \10\ by the estimated average hourly
wage-rate for GS-5 employees, $24.88, yields a loaded wage-rate of
approximately $47.64. As stated earlier, the process of receiving,
sorting, logging, storing, and destroying or returning a Builder's
Certificate is estimated at approximately 0.2 hours' of labor time for
a GS-5 employee. Multiplying this value by the estimated loaded hourly
wage-rate, $47.64, yields a total of $9.53 of avoided cost per form not
processed by the NVDC ($47.64 x 0.2 hrs. = $9.53).
---------------------------------------------------------------------------
\10\ We divide the Total Compensation for employees in the
Federal Government with some college as presented in Table 4--
Federal and Private Sector Total Compensation, $56.30, by the
average Wage for an employee in the Federal Government with some
college, $32.10 in Table 2--Federal and Private-Sector Wages, by
Workers' Educational Attainment. Dividing the Federal Sector Total
Compensation value, $56.30, by the Federal Sector Wages for an
employee with some college, $32.10, yields a load factor of 1.75,
$56.30 / $32.10 = 1.75.
Source: Congressional Budget Office, ``Comparing the
Compensation of Federal and Private-Sector Employees, 2011 to
2015.'' https://www.cbo.gov/system/files/115th-congress-2017-2018/reports/52637-federalprivatepay.pdf (accessed December 10, 2024).
---------------------------------------------------------------------------
The NVDC expects an average annual reduction in burden of
approximately 20,068 Builder's Certificate paper copies. The product of
this value, and the opportunity cost per form, $9.53, yields an
estimated annual average undiscounted cost-savings of approximately
$191,248. That is, 20,068 x $9.53 = $191,248.
Methodology--Time Value Formulation
Lastly, with respect to time value considerations, all savings
figures are discounted by the number of years into the future
considered under this economic analysis, as well as for years 2022 and
2023.\11\ For the 2 previous years, we discount using multiplication in
replacement of division and assign period numbers 1 and 0,
respectively. Present valuation is then calculated by multiplying the
previous year value by one (1) plus the discount rate, exponentiating
the year-period. For years 2024, and all years forward, we assign
corresponding period number 1, 2, 3 . . . sequentially, and apply the
standard present value formula, dividing future values by one (1) plus
the discount rate raised to the corresponding year-period.
---------------------------------------------------------------------------
\11\ Net Present Value (NPV) is used to estimate the future
value of money in terms of the present value. Money can be invested
at annual returns for future income, which means the value of money
spent in the future may be less than if that money had been invested
instead. NPV allows us to calculate how much the total expenditures
are worth discounted backwards to the present, so we can estimate
the true value of the money expended or saved.
---------------------------------------------------------------------------
Cost-Benefit Analysis From the Program Change (2022-2033)
Costs
We found no costs associated with or imposed by program changes to
accept electronic versions of a Builder's Certificate, among other
documents, starting on July 1 of 2022. Applicants have been able to
submit documents electronically, or by mail, and the option of
submitting an original document to the NVDC by mail is preserved in
this final rule. We assume the time it takes to prepare an electronic
version versus a hard copy to be the same.
Cost Savings--Undiscounted and Discounted Savings to Industry
Using the inputs described in the methodology section, in table 7
we display the estimated undiscounted and discounted cost-savings to
industry. The discounted figures are calculated as the product of the
anticipated Initial COD applications expected to be submitted to the
NVDC (from tables 3 and 5), and the cost of a standard, stamped
envelope, determined at $0.68 per submission (Table 6). This figure is
then discounted for a 10-year period.\12\ Including years 2022 (initial
year of the programmatic change) and 2023, the Coast Guard estimates
total cost savings to industry of approximately $147,236 in 2023
dollars, discounted at 2 percent.
---------------------------------------------------------------------------
\12\ For future years, the discount formula: Yearly Cost-
Savings/(1+.02) [supcaret] Year Number.
[[Page 101496]]
Table 7--Undiscounted and Discounted Cost-Savings for Industry
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
Year Initial COD Undiscounted 2% Discount \13\
applications cost-savings
----------------------------------------------------------------------------------------------------------------
2022........................................... 1 18,336 $12,468 $12,718
2023........................................... 0 17,558 11,939 11,939
2024........................................... 1 20,068 13,646 13,379
2025........................................... 2 20,068 13,646 13,116
2026........................................... 3 20,068 13,646 12,859
2027........................................... 4 20,068 13,646 12,607
2028........................................... 5 20,068 13,646 12,360
2029........................................... 6 20,068 13,646 12,117
2030........................................... 7 20,068 13,646 11,880
2031........................................... 8 20,068 13,646 11,647
2032........................................... 9 20,068 13,646 11,419
2033........................................... 10 20,068 13,646 11,195
---------------------------------------------------
Total...................................... ........... ............... 160,870 147,236
---------------------------------------------------
Annualized Equivalent Cost................. ........... ............... ............... 14,914
----------------------------------------------------------------------------------------------------------------
Undiscounted and Discounted Cost Savings to Government
---------------------------------------------------------------------------
\13\ Discount total for a year is calculated with the following
formula: (Undiscounted cost savings * discount rate) [supcaret]
number of years from present.
---------------------------------------------------------------------------
The Government did incur cost savings under changes during the pre-
programmatic baseline period by not having to process, store, and shred
or return as many paper Builder's Certificates. In addition to years
2022, and 2023, the Coast Guard estimates that, from 2024 to 2033, the
Government will not need to process, store, or destroy, on average,
approximately 20,068 Initial COD paper instruments annually in the
future.
As shown in table 8, the Coast Guard estimates total cost savings
to the Government of approximately $2,063,232 in 2023 dollars,
discounted at 2 percent.
Table 8--Undiscounted and Discounted Cost-Savings for Government
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
Year Initial COD Undiscounted 2% Discount
applications cost-savings
----------------------------------------------------------------------------------------------------------------
2022........................................... 1 18,336 $174,723 178,217
2023........................................... 0 17,558 167,309 167,309
2024........................................... 1 20,068 191,226 187,477
2025........................................... 2 20,068 191,226 183,801
2026........................................... 3 20,068 191,226 180,197
2027........................................... 4 20,068 191,226 176,664
2028........................................... 5 20,068 191,226 173,200
2029........................................... 6 20,068 191,226 169,803
2030........................................... 7 20,068 191,226 166,474
2031........................................... 8 20,068 191,226 163,210
2032........................................... 9 20,068 191,226 160,010
2033........................................... 10 20,068 191,226 156,872
---------------------------------------------------
Total...................................... ........... ............... 2,254,294 2,063,232
---------------------------------------------------
Annualized Equivalent Cost................. ........... ............... ............... 208,985
----------------------------------------------------------------------------------------------------------------
Over a 12-year period, the programmatic changes will save the
Government approximately $2,063,232 when discounted at 2 percent.
Total Undiscounted and Discounted Cost Savings--Industry and Government
As presented in table 9, the estimated total cost savings for both
industry and Government is approximately $2,210,468, in 2023 dollars,
discounted at 2 percent.
[[Page 101497]]
Table 9--Total Undiscounted and Discounted Cost-Savings
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
Year Initial COD Undiscounted 2% Discount
applications cost-savings
----------------------------------------------------------------------------------------------------------------
2022........................................... 1 18,336 $187,191 $190,935
2023........................................... 0 17,558 179,248 179,248
2024........................................... 1 20,068 204,872 200,855
2025........................................... 2 20,068 204,872 196,917
2026........................................... 3 20,068 204,872 193,056
2027........................................... 4 20,068 204,872 189,271
2028........................................... 5 20,068 204,872 185,559
2029........................................... 6 20,068 204,872 181,921
2030........................................... 7 20,068 204,872 178,354
2031........................................... 8 20,068 204,872 174,857
2032........................................... 9 20,068 204,872 171,428
2033........................................... 10 20,068 204,872 168,067
----------------------------------------------------------------
Total...................................... ........... ............... 2,415,164 2,210,468
----------------------------------------------------------------
Annualized Equivalent Cost................. ........... ............... ............... 223,899
----------------------------------------------------------------------------------------------------------------
Benefits
In addition to cost savings above, industry applicants likely
experience additional qualitative benefits of increased flexibility and
ease with the option for electronic submission of Initial COD
applications.
Additionally, programmatic changes benefit Government by reducing
the need to digitize original physical applications, store the
submissions, and ultimately shred or send evidence of build documents
back to vessel owners.
Cost-Benefit Analysis From the No Action Baseline (2024-2033)
Costs--All Provisions
This final rule does not impose any new costs to industry or the
Government by amending 46 CFR 67.99(a), 67.113(e), 67.321, 67.99(a), or
67.113(e); that is, the allowance for evidence of build copies, or for
the extension from 10 to 30 days of notification for changes in
ownership or address.
Cost Savings--Electronic Records
As shown under the previous sections, the final rule does not
produce additional cost savings beyond those attributable to the
programmatic changes which occurred in 2022, when the NVDC ceased
requiring vessel owners to submit original evidence of build documents.
The opportunity for cost saving to industry and Government began in
2022, following the NVDC's acceptance of electronic submission of
documents and copies. Therefore, all cost savings in this analysis are
assigned to the program change of 2022.
Cost Savings--Reporting Period
There are no quantifiable cost savings to industry or the
Government by amending 46 CFR 67.113(e) and 67.321, which extends the
time, from 10 to 30 days, in which a vessel owner must notify the Coast
Guard for a change of address or when information submitted for the
issuance of a COD changes.
Benefits--All Provisions
This final rule eliminates confusion among the regulated public as
it reconciles language in regulations with current procedures at the
NVDC, which has been accepting electronic versions of Builder's
Certificates since July 1 of 2022.
Industry benefits from the increased period to notify the Coast
Guard of any changes to their COD by an additional 20 days. The Coast
Guard considers this a qualitative benefit because it increases the
flexibility to the affected population by extending the time in which
vessel owners must notify the Coast Guard of any changes to their COD.
No new qualitative benefits will occur to Government by amending
Sec. 67.113(e), which extends the reporting period by which vessel
owners must notify the NVDC when information submitted for the issuance
of a COD changes, from 10 to 30 days.
Alternatives
Alternative (1). The Coast Guard takes no action. The Coast Guard
considered not updating 46 CFR part 67. However, since July 1 of 2022,
NVDC has accepted electronic means of submission of build evidence.
Therefore, taking no action implies preserving the mismatch between
regulations and the NVDC's current procedures. This would cause
confusion among the regulated public.
Alternative (2). The Coast Guard considered requiring paper
submission via mail delivery for vessel owners to obtain a COD and
other documents. This alternative would have reverted the NVDC to a
previous practice of receiving and issuing documents through mail
submission. This alternative was rejected because it was more expensive
and less convenient than electronic submission, for both the NVDC and
vessel owners. The time required for mailing submissions and documents,
in addition to the expense of postage and added wages for personnel to
process the forms, made this a less desirable alternative.
Alternative (3). The Coast Guard considered creating a web portal
on the NVDC website, to allow vessel owners to submit documents
directly into a database. This would save time over electronic
submission via email. However, a web portal must be built by C5I, the
command organization that controls NVDC resources, and they currently
do not have the means to create a web portal for document submission.
This alternative is, therefore, unfeasible.
B. Small Entities
The Regulatory Flexibility Act of 1980 (RFA), 5 U.S.C. 601-612,\14\
requires federal agencies to consider the potential impact on small
entities when they issue a rule after being required to first publish a
general NPRM. Under 5 U.S.C. 604(a), a regulatory flexibility analysis
is not required for this final rule because, under 5 U.S.C. 553(b)(A)
and (B), we are not required to publish
[[Page 101498]]
a general NPRM. This final rule is exempt from notice and comment
requirements for the reasons stated in Section IV. F. Administrative
Procedure Act. Therefore, we did not conduct a regulatory flexibility
analysis for this rule.
---------------------------------------------------------------------------
\14\ https://www.govinfo.gov/content/pkg/USCODE-2022-title5/pdf/USCODE-2022-title5-partI-chap6-sec601.pdf (accessed December 10,
2024).
---------------------------------------------------------------------------
C. Assistance for Small Entities
Under section 213(a) of the Small Business Regulatory Enforcement
Fairness Act of 1996, Public Law 104-121, we offer to assist small
entities in understanding this rule so that they can better evaluate
its effects on them and participate in the rulemaking. The Coast Guard
will not retaliate against small entities that question or complain
about this rule or any policy or action of the Coast Guard.
Small businesses may send comments on the actions of Federal
employees who enforce, or otherwise determine compliance with, Federal
regulations to the Small Business and Agriculture Regulatory
Enforcement Ombudsman and the Regional Small Business Regulatory
Fairness Boards. The Ombudsman evaluates these actions annually and
rates each agency's responsiveness to small business. If you wish to
comment on actions by employees of the Coast Guard, call 1-888-REG-FAIR
(1-888-734-3247).
D. Collection of Information
This rule calls for no new or revised collection of information
under the Paperwork Reduction Act of 1995, 44 U.S.C. 3501-3520. We
estimate the time burden to submit paper versus electronic copies to be
the same.
E. Federalism
A rule has implications for federalism under Executive Order 13132
(Federalism) if it has a substantial direct effect on States, on the
relationship between the National Government and the States, or on the
distribution of power and responsibilities among the various levels of
government. We have analyzed this rule under Executive Order 13132 and
have determined that it is consistent with the fundamental federalism
principles and preemption requirements described in Executive Order
13132. Our analysis follows.
It is well settled that States may not regulate in categories
reserved for regulation by the Coast Guard. It is also well settled
that all the categories covered in 46 U.S.C. 3306, 3703, 7101, and 8101
(design, construction, alteration, repair, maintenance, operation,
equipping, personnel qualification, and manning of vessels), as well as
the reporting of casualties and any other category in which Congress
intended the Coast Guard to be the sole source of a vessel's
obligations, are within the field foreclosed from regulation by the
States. See the Supreme Court's decision in United States v. Locke and
Intertanko v. Locke, 529 U.S. 89, 120 S.Ct. 1135 (2000). This rule
implements changes to the federal vessel documentation requirements of
46 U.S.C. chapter 121, over which Congress clearly has granted the
Coast Guard, via delegation from the Secretary, exclusive authority.
Therefore, because the States may not regulate within these categories,
this rule is consistent with the fundamental federalism principles and
preemption requirements described in Executive Order 13132.
While it is well settled that States may not regulate in categories
in which Congress intended the Coast Guard to be the sole source of a
vessel's obligations, the Coast Guard recognizes the key role that
State and local governments may have in making regulatory
determinations.
F. Administrative Procedure Act
The Coast Guard believes that this rule should be exempt from
notice and comment rulemaking requirements as a rule of procedure under
5 U.S.C. 553(b)(A) and for good cause under 5 U.S.C. 553(b)(B).
Rules are procedural if they are ``primarily directed toward
improving the efficient and effective operations of an agency.''
Mendoza v. Perez, 754 F.3d 1002, 1023 (D.C. Cir. 2014) (quoting
Batterton v. Marshall, 648 F.2d 694, 702 n.34 (D.C.C. 1980). The
purpose of the exception is ``to ensure that agencies retain latitude
in organizing their internal operations.'' Mendoza, 754 F.3d at 1023
(quoting Batterton, 648 F.2d at 707); accord Bowen, 834 F.2d at 1047.
Moreover, ``the critical feature of a rule that satisfies the so-called
procedural exception is that it covers agency actions that do not
themselves alter the rights or interests of parties, although it may
alter the manner in which the parties present themselves or their
viewpoints to the agency.'' James V. Hurson Assocs., Inc. v. Glickman,
229 F.3d 277, 280 (D.C. Cir. 2000) (internal quotation marks omitted).
Here, because the rule modifies the procedures and means for the
submission of files, the rule is primarily directed toward improving
the efficient and effective operations of the submission process. See
Mendoza, 754 F.3d at 1023. By expanding the electronic means by which
parties may submit documentation, this rule conforms Coast Guard
acceptance of documentation with the ways in which parties typically
submit documentation. This expansion improves the efficiency of the
document submission process for evidence of build and CODs. The other
changes made by this rule--enabling customers to submit copies of
original documents during the Initial COD application; removing the
requirement to return paper CODs to the NVDC during the COD
replacement, exchange, or deletion process; and increasing the time to
report changes in information that a COD is based on, from 10 to 30
days--streamline the file submission process and enhance the Coast
Guard's ability to comprehensively accept, track, store, and adjudicate
vessel documentation. Additionally, these changes are mere housekeeping
initiatives that codify the NVDC's current policies, procedures, and
practices to align with OMB's policy to move federal agencies to an
electronic environment. Finally, the rule in no way alters the
substantive rights of parties. The rule does not affect the substantive
standards by which the Coast Guard makes determinations or otherwise
impact agency officials' discretion. The rule has no impact on the
outcome of NVDC determinations to issue or not issue a vessel owner a
COD. Indeed, the updated provisions increase access to the COD
submission process by lessening submission requirements, maintaining
the option to submit paper documentation, and merely codifying current
practice and policy. In sum, the rule is exempt from notice-and-comment
as a rule of procedure under 5 U.S.C. 553(b)(A).
The Coast Guard also believes the good cause exception under 5
U.S.C. 553(b)(B) to notice-and-comment rulemaking applies. Section
553(b)(B) provides an exception from the notice and comment
requirements when an agency finds, for good cause, that notice and
comment are ``impracticable, unnecessary, or contrary to the public
interest.'' As explained above, the changes do not affect the rights or
interests of regulated parties and indeed are less restrictive.
Moreover, the rule merely updates the procedure for vessel owners to
present information electronically while still maintaining paper and
existing electronic means of submission. The replacement of the
specific fax submission option with an open-ended electronic submission
allowance is not only inconsequential but also conforms the submission
process to modern modalities of document submission actually used by
the public. Accordingly, because the changes made by the rule are
insignificant in nature and impact, and
[[Page 101499]]
inconsequential to the public, the Coast Guard believes there exists
good cause to exempt the rule from notice-and-comment rulemaking under
5 U.S.C. 553(b)(B).
G. Unfunded Mandates
The Unfunded Mandates Reform Act of 1995, 2 U.S.C. 1531-1538,
requires Federal agencies to assess the effects of their discretionary
regulatory actions. In particular, the Act addresses actions that may
result in the expenditure by a State, local, or Tribal government, in
the aggregate, or by the private sector of $100,000,000 (adjusted for
inflation) or more in any one year. Although this rule will not result
in such expenditure, we do discuss the effects of this rule elsewhere
in this preamble.
H. Taking of Private Property
This rule will not cause a taking of private property or otherwise
have taking implications under Executive Order 12630 (Governmental
Actions and Interference with Constitutionally Protected Property
Rights).
I. Civil Justice Reform
This rule meets applicable standards in sections 3(a) and 3(b)(2)
of Executive Order 12988 (Civil Justice Reform) to minimize litigation,
eliminate ambiguity, and reduce burden.
J. Protection of Children
We have analyzed this rule under Executive Order 13045 (Protection
of Children from Environmental Health Risks and Safety Risks). This
rule is not an economically significant rule and will not create an
environmental risk to health or risk to safety that might
disproportionately affect children.
K. 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.
L. Energy Effects
We have analyzed this rule under Executive Order 13211 (Actions
Concerning Regulations That Significantly Affect Energy Supply,
Distribution, or Use). We have determined that it is not a
``significant energy action'' under that order because it is not a
``significant regulatory action'' under Executive Order 12866 and is
not likely to have a significant adverse effect on the supply,
distribution, or use of energy.
M. Technical Standards and Incorporation by Reference
The National Technology Transfer and Advancement Act, codified as a
note to 15 U.S.C. 272, directs agencies to use voluntary consensus
standards in their regulatory activities unless the agency provides
Congress, through OMB, with an explanation of why using these standards
would be inconsistent with applicable law or otherwise impractical.
Voluntary consensus standards are technical standards (e.g.,
specifications of materials, performance, design, or operation; test
methods; sampling procedures; and related management systems practices)
that are developed or adopted by voluntary consensus standards bodies.
This final rule does not use technical standards. Therefore, we did
not consider the use of voluntary consensus standards.
N. Environment
We have analyzed this rule under Department of Homeland Security
Management Directive 023-01, Rev. 1, associated implementing
instructions, and Environmental Planning COMDTINST 5090.1 (series),
which guide the Coast Guard in complying with the National
Environmental Policy Act of 1969 (42 U.S.C. 4321-4370f), and have made
a determination that this action is one of a category of actions that
do not individually or cumulatively have a significant effect on the
human environment. A Record of Environmental Consideration supporting
this determination is available in the docket. For instructions on
locating the docket, see the ADDRESSES section of this preamble. This
rule is categorically excluded under paragraph A3 and L54 of Appendix
A, Table 1 of DHS Instruction Manual 023-01-001-01, Rev 1. Paragraph A3
pertains to ``promulgation of rules of a strictly administrative or
procedural nature;'' and those that ``interpret or amend an existing
regulation without changing its environmental effect.'' Paragraph L54
pertains to regulations that are editorial or procedural. This rule
updates 46 CFR part 67 to reflect the NVDC's current processes and
capabilities, particularly regarding electronic files. The changes
include removing the requirement for ``original'' documents provided
for evidence of the facts of build. The rule eliminates references to
specific electronic means of submission of documents, as NVDC systems
can no longer accept physical faxes or electronic faxes. Finally, the
rule harmonizes regulations on the length of time that a vessel owner
has to report changes in information that a COD is based on, from 10
days to 30 days with statutory requirements.
List of Subjects in 46 CFR Part 67
Reporting and recordkeeping requirements, Vessels.
For the reasons discussed in the preamble, the Coast Guard amends
46 CFR part 67 as follows:
PART 67--DOCUMENTATION OF VESSELS
0
1. The authority citation is revised to read as follows:
Authority: 14 U.S.C. 664; 31 U.S.C. 9701; 42 U.S.C. 9118; 46
U.S.C. 2103, 2104, 2107, 12102, 12103, 12104, 12105, 12106, 12113,
12133, 12139; DHS Delegation 00170.1, Revision No. 01.4.
0
2. Amend Sec. 67.99 by revising paragraph (a) introductory text to
read as follows:
Sec. 67.99 Evidence of build.
(a) Evidence of the facts of build may be a copy of either the
original, completed form CG-1261 (Builder's Certification and First
Transfer of Title), or other document containing the same information,
executed by a person having personal knowledge of the facts of build
because that person:
* * * * *
Sec. 67.113 [Amended]
0
3. Amend Sec. 67.113 in paragraph (e) by removing the number ``10''
and adding in its place the number ``30''.
0
4. Amend Sec. 67.141 by revising paragraph (a) to read as follows:
Sec. 67.141 Application procedure; all cases.
* * * * *
(a) Submit the following to the National Vessel Documentation
Center:
(1) Application for Initial Issue, Exchange, or Replacement of
Certificate of Documentation; or Redocumentation (form CG-1258);
(2) Title evidence, if applicable; and
(3) Mortgagee consent on form CG-4593, if applicable.
* * * * *
0
5. Amend Sec. 67.167 by revising paragraph (a) to read as follows:
Sec. 67.167 Requirement for exchange of Certificate of
Documentation.
(a) When application for exchange of the Certificate of
Documentation is required upon the occurrence of one or more of the
events described in paragraph (b), (c), or (d) of this section,
[[Page 101500]]
or the owner of the vessel chooses to apply for exchange of the
Certificate pursuant to paragraph (e) of this section, the owner must
apply for an exchange of the Certificate in accordance with subpart K
of this part.
* * * * *
Sec. 67.169 [Amended]
0
6. Amend Sec. 67.169 by removing and reserving paragraph (b).
0
7. Amend Sec. 67.171 by revising paragraph (b) to read as follows:
Sec. 67.171 Deletion; requirement and procedure.
* * * * *
(b) Where a cause for deletion arises for any reason under
paragraphs (a)(1) through (6) of this section, the owner must send to
the National Vessel Documentation Center a statement setting forth the
reason(s) deletion is required.
* * * * *
0
8. Revise Sec. 67.209 to read as follows:
Sec. 67.209 No original instrument requirement.
A copy of the original signed and acknowledged instrument must be
presented. The copy may be delivered to the National Vessel
Documentation Center or transmitted electronically in accordance with
the procedures in Sec. 67.218 of this part. Signatures may be affixed
manually or digitally.
0
9. Revise Sec. 67.218 to read as follows:
Sec. 67.218 Optional electronic filing of applications and
instruments.
(a) Any instrument identified as eligible for filing and recording
under Sec. 67.200 may be submitted using electronic filing. The
method(s) or address(es) to be used for electronic filing may be
obtained from the National Vessel Documentation Center's website. If
the instrument submitted for filing pertains to a vessel that is not a
currently documented vessel, a completed Application for Initial Issue,
Exchange, or Replacement Certificate of Documentation, or Return to
Documentation (form CG-1258) (or a letter application for deletion from
documentation) must already be on file with the National Vessel
Documentation Center or must be submitted electronically with the
instrument being filed.
(b) If the filing of any instrument is terminated for any cause
under Sec. 67.217(a), the instrument will be returned to the
submitter.
Sec. 67.219 [Removed]
0
10. Remove Sec. 67.219.
0
11. Revise Sec. 67.321 to read as follows:
Sec. 67.321 Requirement to report change of address of managing
owner.
Upon the change of address of the managing owner of a documented
vessel, the managing owner must report the change of address to the
National Vessel Documentation Center within 30 days of its occurrence.
Dated: December 11, 2024.
W.R. Arguin,
Rear Admiral, U.S. Coast Guard, Assistant Commandant for Prevention
Policy.
[FR Doc. 2024-29555 Filed 12-13-24; 8:45 am]
BILLING CODE 9110-04-P
