81 FR 63420 - Requirements for Vessels With Registry Endorsements or Foreign-Flagged Vessels That Perform Certain Aquaculture Support Operations
DEPARTMENT OF HOMELAND SECURITY
Coast Guard Federal Register Volume 81, Issue 179 (September 15, 2016)
Coast Guard
Federal Register Volume 81, Issue 179 (September 15, 2016)
| Page Range | 63420-63427 | |
| FR Document | 2016-22097 |
[Federal Register Volume 81, Number 179 (Thursday, September 15, 2016)] [Rules and Regulations] [Pages 63420-63427] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-22097] ----------------------------------------------------------------------- DEPARTMENT OF HOMELAND SECURITY Coast Guard 46 CFR Part 106 [Docket No. USCG-2015-0086] RIN 1625-AC23 Requirements for Vessels With Registry Endorsements or Foreign- Flagged Vessels That Perform Certain Aquaculture Support Operations AGENCY: Coast Guard, DHS. ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: The Coast Guard is amending its regulations to implement Subsection 901(c) of the Coast Guard Authorization Act of 2010, which grants the Secretary of the U.S. Department of Transportation (DOT) the authority to issue a waiver allowing a documented vessel with only a registry endorsement or a foreign-flagged vessel to be used in certain aquaculture operations. Specifically, those operations include the treatment and/or protection of aquaculture fish from disease, parasitic infestation, or other threats to their health. The new part establishes the requirement for an owner or operator of a vessel that is issued a waiver allowing the vessel to conduct aquaculture support operations by the Secretary of DOT to notify the Coast Guard that the vessel owner or operator has been issued such a waiver. The part also establishes operational and geographic requirements for vessels that are issued such a waiver. DATES: This final rule is effective October 17, 2016. ADDRESSES: Documents mentioned in this preamble are part of docket USCG-2015-0086. To view public comments or documents mentioned in this preamble as being available in the docket, go to the Federal eRulemaking Portal at http://www.regulations.gov, type the docket number in the ``SEARCH'' box and click ``SEARCH.'' Click on Open Docket Folder on the line associated with this rulemaking. FOR FURTHER INFORMATION CONTACT: For information about this document, call or email Mr. David Belliveau, Fishing Vessels Division (CG-CVC-3), U.S. Coast Guard; telephone 202-372-1247, email [email protected]. SUPPLEMENTARY INFORMATION: Table of Contents for Preamble I. Abbreviations II. Regulatory History III. Basis and Purpose IV. Background V. Discussion of Comments and Changes VI. Regulatory Analyses A. Regulatory Planning and Review B. Small Entities C. Assistance for Small Entities D. Collection of Information E. Federalism F. Unfunded Mandates Reform Act G. Taking of Private Property H. Civil Justice Reform I. Protection of Children J. Indian Tribal Governments K. Energy Effects L. Technical Standards M. Environment I. Abbreviations BLS U.S. Bureau of Labor Statistics CBP U.S. Customs and Border Protection CFR Code of Federal Regulations CGAA Coast Guard Authorization Act of 2010 COD Certificate of Documentation DHS U.S. Department of Homeland Security DOT U.S. Department of Transportation E.O. Executive Order FR Federal Register MARAD Maritime Administration NAICS North American Industry Classification System NPRM Notice of proposed rulemaking OMB Office of Management and Budget Pub. L. Public Law RA Regulatory Analysis SNPRM Supplemental notice of proposed rulemaking U.S.C. United States Code II. Regulatory History On July 30, 2015, we published a notice of proposed rulemaking (NPRM) entitled ``Requirements for Vessels With Registry Endorsements or Foreign-Flagged Vessels That Perform Certain Aquaculture Support Operations'' in the Federal Register (FR) (80 FR 45491). We received one submission with three comments on the proposed rule. No public meeting was requested and none was held. III. Basis and Purpose Under Title 46 of United States Code (U.S.C.) 12102(d)(1), the Secretary of the U.S. Department of Transportation (DOT) may issue an ``Aquaculture Support Operations Waiver'' to allow a documented vessel with only a registry endorsement or a foreign-flagged vessel to be used in operations that treat aquaculture fish for or protect aquaculture fish from disease, parasitic infestation, or other threats to their health if the Secretary finds, after publishing a notice in the Federal Register, that a suitable vessel of the United States is not available to perform those services.\1\ --------------------------------------------------------------------------- \1\ These services are generally performed by ``wellboats'' (commonly understood as fishing and housing facility vessels) that pump fish out of their pens and into the vessels' fish holds. The fish hold is full of sea water and while the fish are inside the fish hold, a metered dose of de-lousing chemical is added to the fish hold. The water is then circulated vigorously to ensure complete mixing of the de-lousing agent. Upon completion of the treatment cycle, the fish are returned to their pens. --------------------------------------------------------------------------- In this final rule, the Coast Guard is amending 46 CFR subchapter I--Cargo and Miscellaneous Vessels, by adding a new part 106 that establishes the requirement for an owner or operator of a vessel that is issued an Aquaculture Support Operations Waiver by the Maritime Administration (MARAD),\2\ for the purpose of conducting certain aquaculture support operations, to notify the Coast Guard that such a waiver has been issued. This new part also establishes operational and geographic requirements for a vessel that is issued such a waiver. --------------------------------------------------------------------------- \2\ On October 14, 2014, the Secretary of Transportation delegated the authority to administer paragraph 901(c)(1) of the CGAA to the Maritime Administrator, MARAD. --------------------------------------------------------------------------- IV. Background On May 27, 2010, U.S. Customs and Border Protection (CBP) ruled that aquaculture activities constitute ``engag[ing] in the fisheries,'' and is thus within the meaning of 46 U.S.C. 108, for which a vessel must possess a Certificate of Documentation (COD) endorsed pursuant to 46 U.S.C. 12113 (see CBP ruling HQ H105735).\3\ Title 46 U.S.C. 12113 limits employment in the fisheries to a vessel issued a COD with a fishery endorsement. This effectively disqualifies any foreign-flagged vessel from carrying out these activities. --------------------------------------------------------------------------- \3\ This ruling is available online from CBP by going to http://rulings.cbp.gov/, entering ``HQ H105735'' in the ``Search'' box and clicking ``Go''. --------------------------------------------------------------------------- Section 901 of the Coast Guard Authorization Act of 2010 (CGAA) (Pub. L. 111-281) amended 46 U.S.C. 12102 by adding subsection (d). Pursuant to 46 U.S.C. 12102(d)(1), the Secretary of DOT may issue an Aquaculture Support Operations Waiver allowing a documented vessel with a registry endorsement or a foreign-flagged vessel to be used in operations that treat or protect aquaculture fish from disease, [[Page 63421]] parasitic infestation, or other threats to their health if the Secretary finds, after publishing a notice in the Federal Register, that a suitable vessel of the United States is not available that could perform those services. This rule is necessary to implement the Coast Guard's rulemaking responsibility as prescribed by 901(c)(2) of the CGAA. In that paragraph, Congress directed the Secretary of the U.S. Department of Homeland Security (DHS), the department under which the Coast Guard operates, to promulgate regulations that are necessary and appropriate to implement subsection 901(c). It also authorizes the Secretary of DHS to ``grant interim permits pending the issuance of such regulations upon receipt of applications containing the required information.'' Through this rule, we are establishing the requirement that an owner or operator of a vessel who is issued an Aquaculture Support Operations Waiver by MARAD for the purpose of conducting certain aquaculture support operations must notify the Coast Guard that such a waiver has been issued. This rule also establishes operational and geographic requirements for vessels that are issued such waivers. V. Discussion of Comments and Changes One commenter submitted three comments for our consideration. These comments are available for viewing in the public docket for this rulemaking, where indicated under ADDRESSES. Below, we summarize these comments and our responses to them. A. The commenter states that instead of putting the notification burden on the owner/operator, the responsibility to notify the Coast Guard that an Aquaculture Support Operations Waiver has been issued for a particular vessel should rest with the DOT. The commenter states that having DOT notify the Coast Guard that DOT has issued an Aquaculture Support Operations Waiver is more efficient and practical than having the owner/operator notify the Coast Guard and that doing so would also reduce the risk of communication error or delay. We do not agree. First, it is important to note that the statute does not require MARAD to notify the Coast Guard that it has issued an Aquaculture Support Operations Waiver for an otherwise unqualified vessel to conduct aquaculture support operations in U.S. waters. Second, while the Coast Guard may expect MARAD to provide notification to the Coast Guard that it has issued an Aquaculture Support Operations Waiver, we cannot control the timing of MARAD's notification to the Coast Guard. It also benefits the owner/operator of a vessel to have full control over when to notify the Coast Guard that he or she has received an Aquaculture Support Operations Waiver because it facilitates faster notification and eliminates the potential for administrative delay. Accordingly, if an owner/operator wants to be sure that the Coast Guard is notified of his or her vessel's Aquaculture Support Operations Waiver before conducting aquaculture support operations in U.S. waters, it benefits the owner/operator to notify the Coast Guard because it removes the risk of administrative delay that could result in the Coast Guard not receiving notification before the vessel engages in aquaculture support operations. Prompt notification is necessary to ensure that the Coast Guard does not expend resources unnecessarily by deploying assets to conduct a law enforcement boarding to determine the eligibility of a vessel with only a registry endorsement or a foreign-flagged vessel to engage in aquaculture support operations in U.S. waters. As discussed earlier, CBP ruled that aquaculture support activities constitute engaging in the fisheries, for which a vessel must possess a COD with a fishery endorsement. This effectively disqualifies any U.S. vessel without a ``fisheries'' endorsement or any foreign-flagged vessel from carrying out these activities without an Aquaculture Support Operations Waiver issued by MARAD. The notification requirement, therefore, is necessary for the Coast Guard's maritime domain awareness which, in turn, will help streamline the Coast Guard's law enforcement activities. Additionally, placing the notification requirement on the owner/ operator (the waiver-applicant), is not unprecedented. The ``Small Vessel Waiver Program'' is a program administered by MARAD. Under that program, MARAD has the authority to grant waivers of the U.S. build requirements for foreign-built vessels to operate in the United States as commercial passenger vessels. Under the Small Vessel Waiver Program, at the time that MARAD issues a waiver to the applicant, MARAD informs the applicant of the need to notify the Coast Guard's National Vessel Documentation Center that a waiver has been issued which, in turn, makes the vessel eligible to receive a coastwise trade endorsement on the vessel's Certificate of Documentation. 46 CFR 388.6(a)(2) (MARAD requirement); 46 CFR 67.7 (Coast Guard COD requirement). Placing the responsibility for notifying the Coast Guard that an owner/operator has received a waiver from MARAD to engage in aquaculture support operations is consistent with the notification responsibility provided under an existing, similarly administered MARAD program. B. The commenter next states that the requirement to limit the vessel's aquaculture support operations to the geographic area identified in DOT's Aquaculture Support Operations Waiver lacks rationale and imposes a restriction not contemplated in the statute. We agree that the statute does not impose any restrictions regarding the geographic area within which a vessel may conduct aquaculture support operations. However, a vessel's geographic operational area is a factor in MARAD's analysis of whether there are any U.S. vessels available to perform those operations. Therefore, the requirement to conduct aquaculture support operations within the geographic area identified in MARAD's Aquaculture Support Operations Waiver, serves to uphold the terms of the waiver, which is issued, in large part, based upon the representations (including operational geographic representations \4\) of the owner/operator. --------------------------------------------------------------------------- \4\ Since 2010, in every application for an interim permit that the Coast Guard has received [eight as of November 2015], the applicant has identified, in general terms, the geographic area in which the vessel would be conducting aquaculture support operations. This same geographic area of operations information was, in turn, also provided to MARAD for the purpose of aiding MARAD in its U.S. vessel availability analysis. --------------------------------------------------------------------------- In the interest of providing flexibility consistent with the statute and the geographical limits of the Aquaculture Support Operations Waiver, however, the Coast Guard will accept waivers for operations in multiple locations. Accordingly, if an owner/operator anticipates that the vessel's aquaculture support operations will occur in several geographic locations, then the owner/operator can list those locations in its Aquaculture Support Operations Waiver application to MARAD to aid MARAD in its analysis of whether there are any suitable U.S.-flagged vessels available to conduct aquaculture support operations in those identified areas. The Coast Guard has revised Sec. 106.120(a)(2) to reflect the possibility that a waiver may allow operations in more than one location. Because this change is a logical outgrowth of the NPRM, a supplemental notice of proposed rulemaking (SNPRM) is unnecessary. Further opportunity for public comment would only serve to delay completion of this rulemaking. Thus, we find good cause under 5 U.S.C. 553(b)(B) to proceed with [[Page 63422]] publication of this final rule without an SNPRM. C. Lastly, the commenter inquires whether the regulations in this rulemaking represent the completion of the Coast Guard's rulemaking obligations under subsection 901(c) of the CGAA. At this time, the Coast Guard does not expect to engage in further rulemaking to implement subsection 901(c).However, as prescribed in paragraph 901(c)(1), the Secretary of DOT was provided the discretionary authority to issue waivers allowing documented vessels with registry endorsements or foreign-flagged vessels to be used in aquaculture support operations when suitable vessels of the United States are not available that could perform those services. As noted above, on October 14, 2014, the Secretary of DOT delegated the authority to administer paragraph 901(c)(1) of the CGAA to the Maritime Administrator. Accordingly, we defer to MARAD on the process associated with the application for, and the issuance of, an Aquaculture Support Operations Waiver. D. After publication of the NPRM, we determined that the wording of the ``Penalties'' section of the proposed regulation, Sec. 106.125, raised an unintended ambiguity by providing that a vessel owner, operator, or charterer not operating a vessel as required in this part is subject to penalty under 46 U.S.C. 12151. We believe this wording may be incorrectly interpreted to mean that there can only be a violation if the vessel is not operating. We are, therefore, making a minor change to Sec. 106.125 in this final rule to remove that unintended ambiguity by amending the section to provide that violation of this part is subject to the civil penalties set forth under 46 U.S.C. 12151. In addition to removing the unintended ambiguity, this wording is consistent with 46 U.S.C. 12151 and is also consistent with other Coast Guard regulations. See, for example, 46 CFR 4.06-70 and 46 CFR 16.115. Because this change is a logical outgrowth of the NPRM, an SNPRM is unnecessary. In addition, an SNPRM is unnecessary because the change is a non-substantive clarification. Further opportunity for public comment would only serve to delay completion of this rulemaking. Thus, we find good cause under 5 U.S.C. 553(b)(B) to proceed with publication of this final rule without an SNPRM. Additionally, in light of the Secretary of Transportation's delegation to MARAD to administer the Aquaculture Support Operations Waiver program, we are changing the nomenclature from ``DOT'' to ``MARAD'' in Sec. 106.115 and Sec. 106.120 to more accurately reflect the issuing authority for aquaculture waivers. Because this change is a logical outgrowth of the proposed rule, an SNPRM is unnecessary. For the same reasons discussed earlier, we find good cause under 5 U.S.C. 553(b)(B) to proceed with publication of this final rule without an SNPRM. VI. Regulatory Analyses We developed this rule after considering numerous statutes and executive orders (E.O.s) related to rulemaking. Below we summarize our analyses based on these statutes or E.O.s. A. Regulatory Planning and Review Executive Orders 12866, Regulatory Planning and Review, and 13563, Improving Regulation and Regulatory Review, direct agencies to assess the costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, distributive impacts, and equity). Executive Order 13563 emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. This rule is not a significant regulatory action under subsection 3(f) of E.O. 12866 as supplemented by E.O. 13563. The Office of Management and Budget has not reviewed it under E.O. 12866. We developed an analysis of the costs and benefits of the rule to ascertain its probable impacts on industry. A final Regulatory Analysis (RA) follows. This RA provides an evaluation of the economic impacts associated with this final rule. The table that follows provides a summary of the rule's costs and benefits. Table 1--Summary of the Rule's Impacts ------------------------------------------------------------------------ Category Summary ------------------------------------------------------------------------ Applicability.......................... Owners or operators of vessels that are issued an Aquaculture Support Operations Waiver allowing a documented vessel with only a registry endorsement or a foreign- flagged vessel to be used in operations that treat aquaculture fish. Affected Population.................... 2 vessels. Costs to Industry and Government ($, 7% 10-year: $819.65. discount rate). Annualized: $116.70. Unquantified Benefits.................. Allows the Coast Guard to readily identify vessels with waivers to perform certain aquaculture support operations. ------------------------------------------------------------------------ Wellboats (or live fish carriers) were especially affected by CBP's ruling (HQ H105735) that aquaculture activities constitute ``engaging in the fisheries'' and are thus within the meaning of 46 U.S.C. 108, for which a vessel must possess a Certificate of Documentation endorsed pursuant to 46 U.S.C. 12113. Wellboats are highly specialized vessels that are used to treat farmed salmon. The wellboats are designed to service large inventories of farmed salmon during the salt-water grow- out phase and are specially equipped to protect the fish onboard the vessel. Direct treatment aboard a wellboat is currently the most efficient and effective method to treat salmon. If left untreated, salmon inventories can be destroyed and the industry can lose revenue. There are only a few coastwise qualified wellboats suitable and available for this work. This is why a considered Aquaculture Support Operations Waiver process that would allow inclusion of foreign-flagged wellboats is necessary. Through this rulemaking, the Coast Guard is amending its regulations to implement subsection 901(c) of the CGAA. Under that provision, the Secretary of DOT has the authority to issue a waiver allowing a documented vessel with only a registry endorsement or a foreign-flagged vessel to be used in certain aquaculture support operations that treat or protect aquaculture fish from disease, parasitic infestation, or other threats to their health if, after posting a notice in the Federal Register, [[Page 63423]] the Secretary of DOT determines that no suitable U.S.-flagged vessel is available. Under this rule, a vessel owner or operator of a vessel who has been issued a waiver by MARAD to perform aquaculture support operations will be required to notify and provide a copy of the waiver to the Coast Guard. Through this rulemaking, we are also establishing operational and geographic requirements for a vessel that is issued a waiver by MARAD to perform aquaculture support operations. For more information on these requirements, refer to Sec. 106.120 Operational and Geographic Requirements. No changes were made in the RA of this final rule as a result of public comments. The only change in this final rule's RA is that we updated the labor rates to reflect the most recent available wage data. Affected Population The Coast Guard determined the affected population based on the number of Aquaculture Support Operations Waiver requests from vessel owners and operators. Since the 2010 CBP ruling, only one entity has applied for waivers for foreign-flagged wellboats to treat salmon. This U.S. entity operates two foreign-flagged wellboats, and we anticipate that this entity will continue to apply for Aquaculture Support Operations Waivers in the future. Therefore, this rule is expected to affect one U.S. entity that operates two vessels. Depending on the growth of the salmon aquaculture industry, there is the potential for the number of affected vessels to increase in the future. However, current trends indicate no increase in growth in the salmon aquaculture industry. Therefore, we did not consider, in this analysis, an annual increase in the number of Aquaculture Support Operations Waivers that would be submitted to the Coast Guard. Costs In this rule, owners or operators of foreign-flagged vessels, which are issued waivers by MARAD to conduct certain aquaculture support operations, must notify the Coast Guard that such waivers have been issued. The costs of this rule include the costs to the industry to provide copies of the Aquaculture Support Operations Waivers and the costs to the Government to process the information. Aquaculture Support Operations Waivers will be issued on an annual basis per DOT requirements. Owners or operators of the vessels are required to provide copies of these waivers to the Coast Guard annually. Waivers are issued individually for each vessel involved in aquaculture support operations, and therefore, costs are estimated on a per vessel basis. Industry Costs The Coast Guard estimates it will take 0.5 hours for a legal secretary to copy and send each Aquaculture Support Operations Waiver to the Coast Guard, via postal mail and electronic mail. The wage rate for a legal assistant was obtained from the U.S. Bureau of Labor Statistics (BLS), using Occupational Series 23-2011, Paralegals and Legal Assistants (May 2014). BLS reports that the mean hourly rate for a legal assistant is $24.92.\5\ To account for employee benefits, we use the load factor of 1.43, which we calculated from June 2014 BLS data.\6\ The loaded wage rate for a legal assistant is estimated at $35.70 per hour ($24.92 wage rate x 1.43 load factor). The expected cost to industry to provide copies of the Aquaculture Support Operations Waiver is $35.70 ($35.70 x 0.5 hours x 2 vessels). The total 10-year undiscounted industry cost of this final rule is $357. Table 2 shows the total 10-year cost of two affected vessels to be $250.74 and annualized cost of $35.70, both discounted at 7 percent. --------------------------------------------------------------------------- \5\ Mean wage, http://www.bls.gov/oes/2014/may/oes232011.htm. \6\ Employer Costs for Employee Compensation news release text provides information on the employer compensation, and can be found at http://www.bls.gov/schedule/archives/ecec_nr.htm. Table 2--Total 10-Year Cost to Industry ---------------------------------------------------------------------------------------------------------------- Discount rate Year Undiscounted ------------------------------- costs 7% 3% ---------------------------------------------------------------------------------------------------------------- 1............................................................... $35.70 $33.36 $34.66 2............................................................... 35.70 31.18 33.65 3............................................................... 35.70 29.14 32.67 4............................................................... 35.70 27.24 31.72 5............................................................... 35.70 25.45 30.80 6............................................................... 35.70 23.79 29.90 7............................................................... 35.70 22.23 29.03 8............................................................... 35.70 20.78 28.18 9............................................................... 35.70 19.42 27.36 10.............................................................. 35.70 18.15 26.56 ----------------------------------------------- Total....................................................... 357.00 250.74 304.53 Annualized...................................................... .............. 35.70 35.70 ---------------------------------------------------------------------------------------------------------------- Note: Total may not add due to rounding. Government Costs The Coast Guard estimates it will take 0.5 hours per vessel for Coast Guard personnel at the GS-13 level to record the information from the Aquaculture Support Operations Waivers. The fully loaded wage rate for a GS-13 is $81, per Commandant Instruction 7310.1Q.\7\ The total cost for the Coast Guard is $81 [(0.5 hours x $81) x 2 vessels]. The total 10-year undiscounted Government cost of this final rule is $810. Table 3 shows the total Government 10-year discounted cost at $568.91, and the annualized cost at $81, both discounted at 7 percent. --------------------------------------------------------------------------- \7\ See http://www.uscg.mil/directives/ci/7000-7999/CI_7310_1Q.pdf. [[Page 63424]] Table 3--Total Government Cost ---------------------------------------------------------------------------------------------------------------- Discount rate Year Undiscounted ------------------------------- costs 7% 3% ---------------------------------------------------------------------------------------------------------------- 1............................................................... $81.00 $75.70 $78.64 2............................................................... 81.00 70.75 76.35 3............................................................... 81.00 66.12 74.13 4............................................................... 81.00 61.79 71.97 5............................................................... 81.00 57.75 69.87 6............................................................... 81.00 53.97 67.84 7............................................................... 81.00 50.44 65.86 8............................................................... 81.00 47.14 63.94 9............................................................... 81.00 44.06 62.08 10.............................................................. 81.00 41.18 60.27 ----------------------------------------------- Total....................................................... 810.00 568.91 690.95 Annualized...................................................... .............. 81.00 81.00 ---------------------------------------------------------------------------------------------------------------- Note: Total may not add due to rounding. Table 4 displays the total costs on an undiscounted basis, and discounted at 7 percent and 3 percent interest rates, respectively. The total 10-year undiscounted cost of this rule is $1,167. The total 10- year (industry and government) discounted cost of this final rule is $819.65 and the annualized cost is $116.70, both discounted at 7 percent. Table 4--Total Costs of the Rule ---------------------------------------------------------------------------------------------------------------- Total Total, discounted Year undiscounted ------------------------------- costs 7% 3% ---------------------------------------------------------------------------------------------------------------- 1............................................................... $116.70 $109.07 $113.30 2............................................................... 116.70 101.93 110.00 3............................................................... 116.70 95.26 106.80 4............................................................... 116.70 89.03 103.69 5............................................................... 116.70 83.21 100.67 6............................................................... 116.70 77.76 97.73 7............................................................... 116.70 72.67 94.89 8............................................................... 116.70 67.92 92.12 9............................................................... 116.70 63.48 89.44 10.............................................................. 116.70 59.32 86.84 ----------------------------------------------- Total....................................................... 1,167.00 819.65 995.47 Annualized...................................................... .............. 116.70 116.70 ---------------------------------------------------------------------------------------------------------------- Note: Total may not add due to rounding. Benefits This rule does not provide any quantitative benefits. However, it does have a qualitative benefit. It provides the Coast Guard with greater maritime domain awareness through the requirement that an owner or operator of a vessel who has received an Aquaculture Support Operations Waiver from MARAD must submit a copy of the waiver to the Coast Guard. The requirement to submit a copy of the waiver to the Coast Guard will ensure that appropriate Coast Guard officials are aware that foreign-flagged vessels or vessels with only registry endorsements are conducting aquaculture support activities in U.S waters pursuant to an Aquaculture Support Operations Waiver issued by DOT under the authority of 46 U.S.C. 12102(d)(1). B. Small Entities Under the Regulatory Flexibility Act, 5 U.S.C. 601-612, we have considered whether this rule would have a significant economic impact on a substantial number of small entities. The term ``small entities'' comprises small businesses, not-for-profit organizations that are independently owned and operated and are not dominant in their fields, and governmental jurisdictions with populations of less than 50,000. There is one U.S. entity that operates two foreign-flagged vessels that would be affected by this rulemaking at this time. This entity is neither a not-for-profit nor a governmental organization. The North American Industry Classification System (NAICS) for this entity is 424460, Fish and Seafood Merchant Wholesalers. An entity with this NAICS code is considered a small entity if it has less than 100 employees. Using the small entity definition for the NAICS code, we determined the entity is classified as a small entity, since this entity has 40 employees. Table 5 shows information on the U.S. entity classified as a small entity by NAICS code, and the small entity standard size established by the Small Business Administration. [[Page 63425]] Table 5--NAICS Code and Small Entities Size Standards ---------------------------------------------------------------------------------------------------------------- NAICS code Description Small business size standard ---------------------------------------------------------------------------------------------------------------- 424460........................ Fish and Seafood Merchant Less than 100 employees. Wholesalers. ---------------------------------------------------------------------------------------------------------------- We reviewed business revenue data provided by a publicly available source \8\ and found that this entity has annual revenue estimated at $4,800,000. Therefore, the expected burden on the company from this rulemaking is estimated at less than 0.001 percent of total annual revenue. --------------------------------------------------------------------------- \8\ MANTA (http://www.manta.com/) is an online business service directory and search engine that provides business revenue and size data. --------------------------------------------------------------------------- Therefore, the Coast Guard certifies under 5 U.S.C. 605(b) that this rule will not have a significant economic impact on a substantial number of small entities. C. Assistance for Small Entities Under subsection 213(a) of the Small Business Regulatory Enforcement Fairness Act of 1996, Public Law 104-121, we offered to assist small entities in understanding this rule so that they 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 a new collection of information under the Paperwork Reduction Act of 1995, 44 U.S.C. 3501-3520. This collection is explained below under Estimate of Total Annual Burden. As defined in 5 CFR 1320.3(c), ``collection of information'' comprises reporting, recordkeeping, monitoring, posting, labeling, and other, similar actions. The title and description of the information collection, a description of those who must collect the information, and an estimate of the total annual burden follow. The estimate covers the time for reviewing instructions, searching existing sources of data, gathering and maintaining the data needed, and completing and reviewing the collection. Under the provisions of the rule, an owner or operator of a vessel who is issued an Aquaculture Support Operations Waiver to conduct certain aquaculture support operations must notify the Coast Guard that such a waiver has been issued. Title: Requirements for Vessels that Perform Certain Aquaculture Support Operations. OMB Control Number: 1625-0126. Summary of the Collection of Information: An owner or operator of a vessel who is issued a waiver to conduct certain aquaculture support operations must notify the Coast Guard that such a waiver has been issued. Need for Information: This information is necessary to ensure that appropriate Coast Guard officials are aware that foreign-flagged vessels or documented vessels with only registry endorsements are conducting aquaculture support activities in U.S. waters pursuant to an Aquaculture Support Operations Waiver issued by DOT under the authority of 46 U.S.C. 12102(d)(1). Use of Information: The Coast Guard would use this information to enhance its maritime domain awareness and to streamline its law enforcement activities by ensuring that Coast Guard law enforcement officials are aware that foreign-flagged vessels or vessels with only a registry endorsement are conducting aquaculture support activities in U.S. waters pursuant to an Aquaculture Support Operations Waiver issued by DOT under the authority of 46 U.S.C. 12102(d)(1). Description of the Respondents: The respondents are owners or operators of vessels that are issued Aquaculture Support Operations Waivers by MARAD to conduct certain aquaculture support operations. Number of Respondents: The number of respondents is one per year. Frequency of Response: Aquaculture Support Operations Waivers are issued on an annual basis, so the frequency of response is one response per vessel, per year. Burden of Response: The estimated burden for each respondent is 0.5 hours per vessel to copy Aquaculture Support Operations Waivers and send information to the Coast Guard. Estimate of Total Annual Burden: There is currently one entity operating two vessels that have been issued Aquaculture Support Operations Waivers. The total annual burden would be 1 hour (0.5 hours x 2 vessels). Assuming this task is performed by a legal assistant at a loaded hourly rate of $35.70, the annual cost burden for this requirement is $35.70 ($35.70 loaded wage rate x 1 total entity hours). You are not required to respond to a collection of information unless it displays a currently valid OMB control number. OMB has not yet completed its review of this collection. Therefore, we are not making 46 CFR 106.115 effective until OMB completes action on our information collection request, at which time we will publish a Federal Register notice describing OMB's action and, if OMB grants approval, notifying you when that provision takes effect. E. Federalism A rule has implications for federalism under E.O. 13132, Federalism, if it has a substantial direct effect on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government. We have analyzed this rule under that order and have determined that it is consistent with the fundamental federalism principles and preemption requirements as described in E.O. 13132. Our analysis is explained below. This rule implements subsection 901(c) of the CGAA. Subsection 901(c) amends section 12102 of chapter 121 of 46 U.S.C. by adding a waiver of certain Federal vessel documentation requirements for vessels performing aquaculture support operations. In paragraph 901(c)(2), Congress granted the Coast Guard, via delegation from the Secretary, exclusive authority to promulgate regulations that are necessary and appropriate for permitting nonqualified vessels to perform certain aquaculture support operations. Therefore, 46 CFR part 106 is established within a field foreclosed from State or local regulation. In light of the analysis above, this rule is consistent with the principles of federalism and preemption requirements in E.O. 13132. [[Page 63426]] F. Unfunded Mandates Reform Act The Unfunded Mandates Reform Act of 1995, 2 U.S.C. 1531-1538, requires Federal agencies to assess the effects of their discretionary regulatory actions. In particular, the Act addresses actions that may result in the expenditure by a State, local, or tribal government, in the aggregate, or by the private sector of $100,000,000 (adjusted for inflation) or more in any one year. Though this rule will not result in such an expenditure, we do discuss the effects of this rule elsewhere in this preamble. G. Taking of Private Property This rule will not cause a taking of private property or otherwise have taking implications under E.O. 12630, Governmental Actions and Interference with Constitutionally Protected Property Rights. H. Civil Justice Reform This rule meets applicable standards in sections 3(a) and 3(b)(2) of E.O. 12988, Civil Justice Reform, to minimize litigation, eliminate ambiguity, and reduce burden. I. Protection of Children We have analyzed this rule under E.O. 13045, Protection of Children from Environmental Health Risks and Safety Risks. This rule is not an economically significant rule and would not create an environmental risk to health or risk to safety that might disproportionately affect children. J. Indian Tribal Governments This rule does not have tribal implications under E.O. 13175, Consultation and Coordination with Indian Tribal Governments, because it would not have a substantial direct effect on one or more Indian tribes, on the relationship between the Federal Government and Indian tribes, or on the distribution of power and responsibilities between the Federal Government and Indian tribes. K. Energy Effects We have analyzed this rule under E.O. 13211, Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use. We have determined that it is not a ``significant energy action'' under that order because it is not a ``significant regulatory action'' under E.O. 12866 and is not likely to have a significant adverse effect on the supply, distribution, or use of energy. L. Technical Standards The National Technology Transfer and Advancement Act, codified as a note to 15 U.S.C. 272, directs agencies to use voluntary consensus standards in their regulatory activities unless the agency provides Congress, through OMB, with an explanation of why using these standards would be inconsistent with applicable law or otherwise impractical. Voluntary consensus standards are technical standards (e.g., specifications of materials, performance, design, or operation; test methods; sampling procedures; and related management systems practices) that are developed or adopted by voluntary consensus standards bodies. This rule does not use technical standards. Therefore, we did not consider the use of voluntary consensus standards. M. Environment We have analyzed this rule under Department of Homeland Security Management Directive 023-01 and Commandant Instruction M16475.lD, which guide the Coast Guard in complying with the National Environmental Policy Act of 1969, 42 U.S.C. 4321-4370f, and have determined that it is one of a category of actions that do not individually or cumulatively have a significant effect on the human environment. A final environmental analysis checklist supporting this determination is available in the docket. This rule is categorically excluded under section 2.B.2, figure 2-1, paragraphs 34(a) and 34(d) of the Instruction. These paragraphs respectively pertain to promulgation of regulations that are editorial or procedural in nature, and those concerning vessel documentation requirements. This rule entails a minor regulatory change pertaining to vessels used in certain aquaculture operations and the Coast Guard's notification requirements for those vessels. Specifically, DOT has the authority to issue waivers allowing a documented vessel with a registry endorsement or a foreign-flagged vessel to be used in aquaculture support activities. The new part establishes the requirement for an owner or operator of a vessel that is issued a waiver to notify the Coast Guard. The part also establishes operational and geographic requirements for vessels that are issued such a waiver. List of Subjects in 46 CFR Part 106 Aquaculture operations, Coastwise, Fishing vessels, Registry endorsement, Waiver. 0 For the reasons discussed in the preamble, the Coast Guard amends 46 CFR by adding part 106 to read as follows: Title 46--Shipping PART 106--REQUIREMENTS FOR NONQUALIFIED VESSELS THAT PERFORM CERTAIN AQUACULTURE SUPPORT OPERATIONS Sec. 106.100 Purpose. 106.105 Applicability. 106.110 Definitions. 106.115 Notification requirements. 106.120 Operational and geographic requirements. 106.125 Penalties. Authority: Sec. 901(c)(2), Pub. L. 111-281, 124 Stat. 2905, Title IX; Department of Homeland Security Delegation No. 0170.1. Sec. 106.100 Purpose. The regulations in this part implement 46 U.S.C. 12102(d). Sec. 106.105 Applicability. The regulations in this part apply to a documented vessel with only a registry endorsement or a foreign-flagged vessel that has been issued an Aquaculture Support Operations Waiver by the Department of Transportation (DOT) under 46 U.S.C. 12102(d)(1), for the purpose of conducting aquaculture support operations. Sec. 106.110 Definitions. Aquaculture support operations means activities that treat aquaculture fish for or protect aquaculture fish from disease, parasitic infestation, or other threats to their health. Sec. 106.115 Notification requirements. (a) Prior to operating in U.S. waters, a vessel owner, operator, or charterer that has been issued an Aquaculture Support Operations Waiver by DOT's Maritime Administration (MARAD) to conduct aquaculture support operations must notify the Coast Guard in writing of its status. The notification must include the following information: (1) The vessel(s) name(s); (2) The vessel's official and/or International Maritime Organization number; (3) The geographic location within the waters of the United States where the vessel(s) will conduct treatment operations; (4) The period of time during which the Aquaculture Support Operations Waiver for the vessel(s) is approved including: (i) The start date (MM/DD/YYYY); and (ii) The expiration date (MM/DD/YYYY); and (5) A copy of the MARAD-issued Aquaculture Support Operations Waiver. [[Page 63427]] (b) Written notification must be made to the Commandant (CG-CVC), ATTN: Office of Commercial Vessel Compliance, U.S. Coast Guard Stop 7501, 2703 Martin Luther King Jr. Avenue SE., Washington, DC 20593- 7501, or by email to [email protected]. Sec. 106.120 Operational and geographic requirements. (a) Vessels with a MARAD-issued Aquaculture Support Operations Waiver, issued under 46 U.S.C. 12102(d)(1), for the purpose of performing aquaculture support operations are subject to the following restrictions: (1) Commercial operations in U.S. waters other than operations that treat or protect aquaculture fish are prohibited; (2) While conducting aquaculture support operations, vessels will operate solely within the geographic location(s) identified in the waiver issued by MARAD; and (3) Vessels will not conduct aquaculture support operations beyond the period of time approved in the waiver issued by MARAD. (b) Vessels conducting aquaculture support operations will, at all times, maintain a copy of the waiver issued by MARAD on board the vessel as proof of its eligibility to conduct aquaculture support operations. Sec. 106.125 Penalties. A person who violates any requirement prescribed by the regulations in this part is subject to penalty under 46 U.S.C. 12151. Dated: September 9, 2016. V.B. Gifford, Jr., Captain, U.S. Coast Guard, Director of Inspections and Compliance. [FR Doc. 2016-22097 Filed 9-14-16; 8:45 am] BILLING CODE 9110-04-P
![63420 Federal Register / Vol. 81, No. 179 / Thursday, September 15, 2016 / Rules and Regulations
safety zone is unnecessary or Click on Open Docket Folder on the line Support Operations Waiver’’ to allow a
impractical for the purpose of maritime associated with this rulemaking. documented vessel with only a registry
security. FOR FURTHER INFORMATION CONTACT: For endorsement or a foreign-flagged vessel
(f) Penalties. Vessels or persons information about this document, call or to be used in operations that treat
violating this rule are subject to the email Mr. David Belliveau, Fishing aquaculture fish for or protect
penalties set forth in 33 U.S.C. 1232 and Vessels Division (CG–CVC–3), U.S. aquaculture fish from disease, parasitic
50 U.S.C. 192. Coast Guard; telephone 202–372–1247, infestation, or other threats to their
Dated: August 17, 2016. email David.J.Belliveau@uscg.mil. health if the Secretary finds, after
James B. Pruett, publishing a notice in the Federal
SUPPLEMENTARY INFORMATION:
Register, that a suitable vessel of the
Captain, U.S. Coast Guard, Captain of the
Port, Guam. Table of Contents for Preamble United States is not available to perform
I. Abbreviations
those services.1
[FR Doc. 2016–22228 Filed 9–14–16; 8:45 am]
II. Regulatory History In this final rule, the Coast Guard is
BILLING CODE 9110–04–P
III. Basis and Purpose amending 46 CFR subchapter I—Cargo
IV. Background and Miscellaneous Vessels, by adding a
V. Discussion of Comments and Changes new part 106 that establishes the
DEPARTMENT OF HOMELAND
VI. Regulatory Analyses requirement for an owner or operator of
SECURITY
A. Regulatory Planning and Review a vessel that is issued an Aquaculture
B. Small Entities Support Operations Waiver by the
Coast Guard
C. Assistance for Small Entities Maritime Administration (MARAD),2 for
D. Collection of Information the purpose of conducting certain
46 CFR Part 106 E. Federalism
aquaculture support operations, to
[Docket No. USCG–2015–0086] F. Unfunded Mandates Reform Act
G. Taking of Private Property notify the Coast Guard that such a
RIN 1625–AC23 H. Civil Justice Reform waiver has been issued. This new part
I. Protection of Children also establishes operational and
Requirements for Vessels With J. Indian Tribal Governments geographic requirements for a vessel
Registry Endorsements or Foreign- K. Energy Effects that is issued such a waiver.
Flagged Vessels That Perform Certain L. Technical Standards
M. Environment IV. Background
Aquaculture Support Operations
On May 27, 2010, U.S. Customs and
AGENCY: Coast Guard, DHS. I. Abbreviations
Border Protection (CBP) ruled that
ACTION: Final rule. BLS U.S. Bureau of Labor Statistics aquaculture activities constitute
CBP U.S. Customs and Border Protection ‘‘engag[ing] in the fisheries,’’ and is thus
SUMMARY: The Coast Guard is amending CFR Code of Federal Regulations within the meaning of 46 U.S.C. 108, for
its regulations to implement Subsection CGAA Coast Guard Authorization Act of which a vessel must possess a
901(c) of the Coast Guard Authorization 2010
Certificate of Documentation (COD)
Act of 2010, which grants the Secretary COD Certificate of Documentation
endorsed pursuant to 46 U.S.C. 12113
of the U.S. Department of DHS U.S. Department of Homeland
Security (see CBP ruling HQ H105735).3 Title 46
Transportation (DOT) the authority to U.S.C. 12113 limits employment in the
issue a waiver allowing a documented DOT U.S. Department of Transportation
E.O. Executive Order fisheries to a vessel issued a COD with
vessel with only a registry endorsement FR Federal Register a fishery endorsement. This effectively
or a foreign-flagged vessel to be used in MARAD Maritime Administration disqualifies any foreign-flagged vessel
certain aquaculture operations. NAICS North American Industry from carrying out these activities.
Specifically, those operations include Classification System Section 901 of the Coast Guard
the treatment and/or protection of NPRM Notice of proposed rulemaking Authorization Act of 2010 (CGAA) (Pub.
aquaculture fish from disease, parasitic OMB Office of Management and Budget L. 111–281) amended 46 U.S.C. 12102
infestation, or other threats to their Pub. L. Public Law
by adding subsection (d). Pursuant to 46
health. The new part establishes the RA Regulatory Analysis
SNPRM Supplemental notice of proposed U.S.C. 12102(d)(1), the Secretary of DOT
requirement for an owner or operator of may issue an Aquaculture Support
rulemaking
a vessel that is issued a waiver allowing U.S.C. United States Code Operations Waiver allowing a
the vessel to conduct aquaculture documented vessel with a registry
support operations by the Secretary of II. Regulatory History endorsement or a foreign-flagged vessel
DOT to notify the Coast Guard that the On July 30, 2015, we published a to be used in operations that treat or
vessel owner or operator has been notice of proposed rulemaking (NPRM) protect aquaculture fish from disease,
issued such a waiver. The part also entitled ‘‘Requirements for Vessels With
establishes operational and geographic Registry Endorsements or Foreign- 1 These services are generally performed by
requirements for vessels that are issued Flagged Vessels That Perform Certain ‘‘wellboats’’ (commonly understood as fishing and
such a waiver. housing facility vessels) that pump fish out of their
Aquaculture Support Operations’’ in the pens and into the vessels’ fish holds. The fish hold
DATES: This final rule is effective Federal Register (FR) (80 FR 45491). We is full of sea water and while the fish are inside the
October 17, 2016. received one submission with three fish hold, a metered dose of de-lousing chemical is
ADDRESSES: Documents mentioned in comments on the proposed rule. No added to the fish hold. The water is then circulated
vigorously to ensure complete mixing of the de-
this preamble are part of docket USCG– public meeting was requested and none lousing agent. Upon completion of the treatment
2015–0086. To view public comments
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was held. cycle, the fish are returned to their pens.
or documents mentioned in this 2 On October 14, 2014, the Secretary of
preamble as being available in the III. Basis and Purpose Transportation delegated the authority to
docket, go to the Federal eRulemaking Under Title 46 of United States Code administer paragraph 901(c)(1) of the CGAA to the
Maritime Administrator, MARAD.
Portal at http://www.regulations.gov, (U.S.C.) 12102(d)(1), the Secretary of the 3 This ruling is available online from CBP by
type the docket number in the U.S. Department of Transportation going to http://rulings.cbp.gov/, entering ‘‘HQ
‘‘SEARCH’’ box and click ‘‘SEARCH.’’ (DOT) may issue an ‘‘Aquaculture H105735’’ in the ‘‘Search’’ box and clicking ‘‘Go’’.
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![Federal Register / Vol. 81, No. 179 / Thursday, September 15, 2016 / Rules and Regulations 63421
parasitic infestation, or other threats to the timing of MARAD’s notification to Guard that an owner/operator has
their health if the Secretary finds, after the Coast Guard. received a waiver from MARAD to
publishing a notice in the Federal It also benefits the owner/operator of engage in aquaculture support
Register, that a suitable vessel of the a vessel to have full control over when operations is consistent with the
United States is not available that could to notify the Coast Guard that he or she notification responsibility provided
perform those services. has received an Aquaculture Support under an existing, similarly
This rule is necessary to implement Operations Waiver because it facilitates administered MARAD program.
the Coast Guard’s rulemaking faster notification and eliminates the B. The commenter next states that the
responsibility as prescribed by 901(c)(2) potential for administrative delay. requirement to limit the vessel’s
of the CGAA. In that paragraph, Accordingly, if an owner/operator wants aquaculture support operations to the
Congress directed the Secretary of the to be sure that the Coast Guard is geographic area identified in DOT’s
U.S. Department of Homeland Security notified of his or her vessel’s Aquaculture Support Operations Waiver
(DHS), the department under which the Aquaculture Support Operations Waiver lacks rationale and imposes a restriction
Coast Guard operates, to promulgate before conducting aquaculture support not contemplated in the statute. We
regulations that are necessary and operations in U.S. waters, it benefits the agree that the statute does not impose
appropriate to implement subsection owner/operator to notify the Coast any restrictions regarding the
901(c). It also authorizes the Secretary of Guard because it removes the risk of geographic area within which a vessel
DHS to ‘‘grant interim permits pending administrative delay that could result in may conduct aquaculture support
the issuance of such regulations upon the Coast Guard not receiving operations. However, a vessel’s
receipt of applications containing the notification before the vessel engages in geographic operational area is a factor in
required information.’’ Through this aquaculture support operations. MARAD’s analysis of whether there are
rule, we are establishing the Prompt notification is necessary to any U.S. vessels available to perform
requirement that an owner or operator ensure that the Coast Guard does not those operations. Therefore, the
of a vessel who is issued an Aquaculture expend resources unnecessarily by requirement to conduct aquaculture
Support Operations Waiver by MARAD deploying assets to conduct a law support operations within the
for the purpose of conducting certain enforcement boarding to determine the geographic area identified in MARAD’s
aquaculture support operations must eligibility of a vessel with only a registry Aquaculture Support Operations
notify the Coast Guard that such a endorsement or a foreign-flagged vessel Waiver, serves to uphold the terms of
waiver has been issued. This rule also to engage in aquaculture support the waiver, which is issued, in large
establishes operational and geographic operations in U.S. waters. part, based upon the representations
requirements for vessels that are issued As discussed earlier, CBP ruled that (including operational geographic
such waivers. aquaculture support activities constitute representations 4) of the owner/operator.
engaging in the fisheries, for which a In the interest of providing flexibility
V. Discussion of Comments and vessel must possess a COD with a
Changes consistent with the statute and the
fishery endorsement. This effectively geographical limits of the Aquaculture
One commenter submitted three disqualifies any U.S. vessel without a Support Operations Waiver, however,
comments for our consideration. These ‘‘fisheries’’ endorsement or any foreign- the Coast Guard will accept waivers for
comments are available for viewing in flagged vessel from carrying out these operations in multiple locations.
the public docket for this rulemaking, activities without an Aquaculture Accordingly, if an owner/operator
where indicated under ADDRESSES. Support Operations Waiver issued by
anticipates that the vessel’s aquaculture
Below, we summarize these comments MARAD. The notification requirement,
support operations will occur in several
and our responses to them. therefore, is necessary for the Coast
A. The commenter states that instead geographic locations, then the owner/
Guard’s maritime domain awareness
of putting the notification burden on the operator can list those locations in its
which, in turn, will help streamline the
owner/operator, the responsibility to Aquaculture Support Operations Waiver
Coast Guard’s law enforcement
notify the Coast Guard that an application to MARAD to aid MARAD
activities.
Aquaculture Support Operations Waiver Additionally, placing the notification in its analysis of whether there are any
has been issued for a particular vessel requirement on the owner/operator (the suitable U.S.-flagged vessels available to
should rest with the DOT. The waiver-applicant), is not unprecedented. conduct aquaculture support operations
commenter states that having DOT The ‘‘Small Vessel Waiver Program’’ is in those identified areas. The Coast
notify the Coast Guard that DOT has a program administered by MARAD. Guard has revised § 106.120(a)(2) to
issued an Aquaculture Support Under that program, MARAD has the reflect the possibility that a waiver may
Operations Waiver is more efficient and authority to grant waivers of the U.S. allow operations in more than one
practical than having the owner/ build requirements for foreign-built location. Because this change is a logical
operator notify the Coast Guard and that vessels to operate in the United States outgrowth of the NPRM, a supplemental
doing so would also reduce the risk of as commercial passenger vessels. Under notice of proposed rulemaking (SNPRM)
communication error or delay. the Small Vessel Waiver Program, at the is unnecessary. Further opportunity for
We do not agree. First, it is important time that MARAD issues a waiver to the public comment would only serve to
to note that the statute does not require applicant, MARAD informs the delay completion of this rulemaking.
MARAD to notify the Coast Guard that applicant of the need to notify the Coast Thus, we find good cause under 5
it has issued an Aquaculture Support Guard’s National Vessel Documentation U.S.C. 553(b)(B) to proceed with
Operations Waiver for an otherwise Center that a waiver has been issued 4 Since 2010, in every application for an interim
unqualified vessel to conduct which, in turn, makes the vessel eligible
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permit that the Coast Guard has received [eight as
aquaculture support operations in U.S. to receive a coastwise trade of November 2015], the applicant has identified, in
waters. Second, while the Coast Guard endorsement on the vessel’s Certificate general terms, the geographic area in which the
may expect MARAD to provide of Documentation. 46 CFR 388.6(a)(2) vessel would be conducting aquaculture support
operations. This same geographic area of operations
notification to the Coast Guard that it (MARAD requirement); 46 CFR 67.7 information was, in turn, also provided to MARAD
has issued an Aquaculture Support (Coast Guard COD requirement). Placing for the purpose of aiding MARAD in its U.S. vessel
Operations Waiver, we cannot control the responsibility for notifying the Coast availability analysis.
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![Federal Register / Vol. 81, No. 179 / Thursday, September 15, 2016 / Rules and Regulations 63423
the Secretary of DOT determines that no and we anticipate that this entity will Waivers are issued individually for each
suitable U.S.-flagged vessel is available. continue to apply for Aquaculture vessel involved in aquaculture support
Under this rule, a vessel owner or Support Operations Waivers in the operations, and therefore, costs are
operator of a vessel who has been issued future. Therefore, this rule is expected estimated on a per vessel basis.
a waiver by MARAD to perform to affect one U.S. entity that operates
aquaculture support operations will be two vessels. Depending on the growth of Industry Costs
required to notify and provide a copy of the salmon aquaculture industry, there The Coast Guard estimates it will take
the waiver to the Coast Guard. Through is the potential for the number of 0.5 hours for a legal secretary to copy
this rulemaking, we are also establishing affected vessels to increase in the future. and send each Aquaculture Support
operational and geographic However, current trends indicate no
Operations Waiver to the Coast Guard,
requirements for a vessel that is issued increase in growth in the salmon
via postal mail and electronic mail. The
a waiver by MARAD to perform aquaculture industry. Therefore, we did
wage rate for a legal assistant was
aquaculture support operations. For not consider, in this analysis, an annual
obtained from the U.S. Bureau of Labor
more information on these increase in the number of Aquaculture
Statistics (BLS), using Occupational
requirements, refer to § 106.120 Support Operations Waivers that would
be submitted to the Coast Guard. Series 23–2011, Paralegals and Legal
Operational and Geographic
Assistants (May 2014). BLS reports that
Requirements. Costs
No changes were made in the RA of the mean hourly rate for a legal assistant
this final rule as a result of public In this rule, owners or operators of is $24.92.5 To account for employee
comments. The only change in this final foreign-flagged vessels, which are issued benefits, we use the load factor of 1.43,
rule’s RA is that we updated the labor waivers by MARAD to conduct certain which we calculated from June 2014
rates to reflect the most recent available aquaculture support operations, must BLS data.6 The loaded wage rate for a
wage data. notify the Coast Guard that such waivers legal assistant is estimated at $35.70 per
have been issued. The costs of this rule hour ($24.92 wage rate × 1.43 load
Affected Population include the costs to the industry to factor). The expected cost to industry to
The Coast Guard determined the provide copies of the Aquaculture provide copies of the Aquaculture
affected population based on the Support Operations Waivers and the Support Operations Waiver is $35.70
number of Aquaculture Support costs to the Government to process the ($35.70 × 0.5 hours × 2 vessels). The
Operations Waiver requests from vessel information. Aquaculture Support total 10-year undiscounted industry cost
owners and operators. Since the 2010 Operations Waivers will be issued on an of this final rule is $357. Table 2 shows
CBP ruling, only one entity has applied annual basis per DOT requirements. the total 10-year cost of two affected
for waivers for foreign-flagged wellboats Owners or operators of the vessels are vessels to be $250.74 and annualized
to treat salmon. This U.S. entity required to provide copies of these cost of $35.70, both discounted at 7
operates two foreign-flagged wellboats, waivers to the Coast Guard annually. percent.
TABLE 2—TOTAL 10-YEAR COST TO INDUSTRY
Discount rate
Undiscounted
Year costs 7% 3%
1 ................................................................................................................................................... $35.70 $33.36 $34.66
2 ................................................................................................................................................... 35.70 31.18 33.65
3 ................................................................................................................................................... 35.70 29.14 32.67
4 ................................................................................................................................................... 35.70 27.24 31.72
5 ................................................................................................................................................... 35.70 25.45 30.80
6 ................................................................................................................................................... 35.70 23.79 29.90
7 ................................................................................................................................................... 35.70 22.23 29.03
8 ................................................................................................................................................... 35.70 20.78 28.18
9 ................................................................................................................................................... 35.70 19.42 27.36
10 ................................................................................................................................................. 35.70 18.15 26.56
Total ...................................................................................................................................... 357.00 250.74 304.53
Annualized ................................................................................................................................... ........................ 35.70 35.70
Note: Total may not add due to rounding.
Government Costs Support Operations Waivers. The fully year undiscounted Government cost of
The Coast Guard estimates it will take loaded wage rate for a GS–13 is $81, per this final rule is $810. Table 3 shows the
0.5 hours per vessel for Coast Guard Commandant Instruction 7310.1Q.7 The total Government 10-year discounted
personnel at the GS–13 level to record total cost for the Coast Guard is $81 [(0.5 cost at $568.91, and the annualized cost
the information from the Aquaculture hours × $81) × 2 vessels]. The total 10- at $81, both discounted at 7 percent.
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5 Mean wage, http://www.bls.gov/oes/2014/may/ 6 Employer Costs for Employee Compensation 7 See http://www.uscg.mil/directives/ci/7000-
oes232011.htm. news release text provides information on the 7999/CI_7310_1Q.pdf.
employer compensation, and can be found at http://
www.bls.gov/schedule/archives/ecec_nr.htm.
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![Federal Register / Vol. 81, No. 179 / Thursday, September 15, 2016 / Rules and Regulations 63427
(b) Written notification must be made operations are subject to the following maintain a copy of the waiver issued by
to the Commandant (CG–CVC), ATTN: restrictions: MARAD on board the vessel as proof of
Office of Commercial Vessel (1) Commercial operations in U.S. its eligibility to conduct aquaculture
Compliance, U.S. Coast Guard Stop waters other than operations that treat support operations.
7501, 2703 Martin Luther King Jr. or protect aquaculture fish are
prohibited; § 106.125 Penalties.
Avenue SE., Washington, DC 20593–
7501, or by email to CG-CVC-3@ (2) While conducting aquaculture A person who violates any
support operations, vessels will operate requirement prescribed by the
uscg.mil.
solely within the geographic location(s) regulations in this part is subject to
§ 106.120 Operational and geographic identified in the waiver issued by penalty under 46 U.S.C. 12151.
requirements. MARAD; and
(3) Vessels will not conduct Dated: September 9, 2016.
(a) Vessels with a MARAD-issued aquaculture support operations beyond V.B. Gifford, Jr.,
Aquaculture Support Operations the period of time approved in the Captain, U.S. Coast Guard, Director of
Waiver, issued under 46 U.S.C. waiver issued by MARAD. Inspections and Compliance.
12102(d)(1), for the purpose of (b) Vessels conducting aquaculture [FR Doc. 2016–22097 Filed 9–14–16; 8:45 am]
performing aquaculture support support operations will, at all times, BILLING CODE 9110–04–P
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Document Created: 2018-02-09 13:18:28
Document Modified: 2018-02-09 13:18:28
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Rules and Regulations | |
| Action | Final rule. | |
| Dates | This final rule is effective October 17, 2016. | |
| Contact | For information about this document, call or email Mr. David Belliveau, Fishing Vessels Division (CG-CVC-3), U.S. Coast Guard; telephone 202-372-1247, email [email protected] | |
| FR Citation | 81 FR 63420 | |
| RIN Number | 1625-AC23 | |
| CFR Associated | Aquaculture Operations; Coastwise; Fishing Vessels; Registry Endorsement and Waiver |
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