82_FR_41351 82 FR 41184 - Cranes and Derricks in Construction: Operator Certification Extension

82 FR 41184 - Cranes and Derricks in Construction: Operator Certification Extension

DEPARTMENT OF LABOR
Occupational Safety and Health Administration

Federal Register Volume 82, Issue 167 (August 30, 2017)

Page Range41184-41193
FR Document2017-18441

Under OSHA's standard for cranes and derricks used in construction work, crane operators are to be certified by November 10, 2017. Until that date, employers also have duties under the standard to ensure that crane operators are trained and competent to operate the crane safely. The Agency delayed the deadline for operator certification by three years to November 10, 2017, and extended the existing employer duties for the same period. The Agency is proposing to delay the deadline and extend the existing employer duty to ensure that operators of equipment covered by this standard are competent to operate the equipment safely for one year to November 17, 2018.

Federal Register, Volume 82 Issue 167 (Wednesday, August 30, 2017)
[Federal Register Volume 82, Number 167 (Wednesday, August 30, 2017)]
[Proposed Rules]
[Pages 41184-41193]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-18441]



[[Page 41184]]

=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF LABOR

Occupational Safety and Health Administration

29 CFR Part 1926

[Docket ID-OSHA-2007-0066]
RIN 1218-AC86


Cranes and Derricks in Construction: Operator Certification 
Extension

AGENCY: Occupational Safety and Health Administration (OSHA), Labor.

ACTION: Notice of proposed rulemaking.

-----------------------------------------------------------------------

SUMMARY: Under OSHA's standard for cranes and derricks used in 
construction work, crane operators are to be certified by November 10, 
2017. Until that date, employers also have duties under the standard to 
ensure that crane operators are trained and competent to operate the 
crane safely. The Agency delayed the deadline for operator 
certification by three years to November 10, 2017, and extended the 
existing employer duties for the same period. The Agency is proposing 
to delay the deadline and extend the existing employer duty to ensure 
that operators of equipment covered by this standard are competent to 
operate the equipment safely for one year to November 17, 2018.

DATES: Submit comments to this proposed rule, including comments to the 
information collection (paperwork) determination (described under the 
section titled ``Agency Determinations''), hearing requests, and other 
information by September 29, 2017. All submissions must bear a postmark 
or provide other evidence of the submission date.

ADDRESSES: Submit comments, hearing requests, and other material, 
identified by Docket No. OSHA-2007-0066, using any of the following 
methods:
    Electronically: Submit comments and attachments, as well as hearing 
requests and other information, electronically at http://www.regulations.gov, which is the Federal e-Rulemaking Portal. Follow 
the instructions online for submitting comments. Note that this docket 
may include several different Federal Register notices involving active 
rulemakings, so it is extremely important to select the correct notice 
or its ID number when submitting comments for this rulemaking. After 
accessing the docket (OSHA-2007-0066), check the ``proposed rule'' box 
in the column headed ``Document Type,'' find the document posted on the 
date of publication of this document, and click the ``Submit a 
Comment'' link. Additional instructions for submitting comments are 
available from the regulations.gov homepage.
    Facsimile: OSHA allows facsimile transmission of comments that are 
10 pages or fewer in length (including attachments). Fax these 
documents to the OSHA Docket Office at (202) 693-1648. OSHA does not 
require hard copies of these documents. Instead of transmitting 
facsimile copies of attachments that supplement these documents (e.g., 
studies, journal articles), commenters must submit these attachments to 
the OSHA Docket Office, Technical Data Center, Room N-2625, OSHA, U.S. 
Department of Labor, 200 Constitution Ave. NW., Washington, DC 20210. 
These attachments must clearly identify the sender's name, the date, 
subject, and the docket number (OSHA-2007-0066) so that the Docket 
Office can attach them to the appropriate document.
    Regular mail, express delivery, hand delivery, and messenger 
(courier) service: Submit comments and any additional material to the 
OSHA Docket Office, RIN No. 1218-AC86, Technical Data Center, Room N-
3508, OSHA, U.S. Department of Labor, 200 Constitution Ave. NW., 
Washington, DC 20210; telephone: (202) 693-2350. (OSHA's TTY number is 
(877) 889-5627). Contact the OSHA Docket Office for information about 
security procedures concerning delivery of materials by express 
delivery, hand delivery, and messenger service. The Docket Office will 
accept deliveries (express delivery, hand delivery, messenger service) 
during the Docket Office's normal business hours, 8:15 a.m. to 4:45 
p.m., e.s.t.
    Instructions: All submissions must include the Agency's name, the 
title of the rulemaking (Cranes and Derricks in Construction: Operator 
Certification Extension), and the docket number (i.e., OSHA Docket No. 
OSHA-2007-0066). OSHA will place comments and other material, including 
any personal information, in the public docket without revision, and 
the comments and other material will be available online at http://www.regulations.gov. Therefore, OSHA cautions commenters about 
submitting statements they do not want made available to the public, or 
submitting comments that contain personal information (either about 
themselves or others) such as Social Security numbers, birth dates, and 
medical data.
    Docket: To read or download comments or other material in the 
docket, go to http://www.regulations.gov or to the OSHA Docket Office 
at the above address. The electronic docket for this proposed rule 
established at http://www.regulations.gov contains most of the 
documents in the docket. However, some information (e.g., copyrighted 
material) is not available publicly to read or download through this 
Web site. All submissions, including copyrighted material, are 
available for inspection at the OSHA Docket Office. Contact the OSHA 
Docket Office for assistance in locating docket submissions.

FOR FURTHER INFORMATION CONTACT: 
    General information and press inquiries: Mr. Frank Meilinger, OSHA 
Office of Communications; telephone: (202) 693-1999; email: 
[email protected].
    Technical inquiries: Mr. Vernon Preston; telephone: (202) 693-2020; 
fax: (202) 693-1689; email: [email protected].
    Copies of this Federal Register notice and news releases: 
Electronic copies of these documents are available at OSHA's Web page 
at http://www.osha.gov.

SUPPLEMENTARY INFORMATION:

I. Summary and Explanation of the Proposed Amendments to the Standard

A. Introduction

    OSHA is publishing this Notice of Proposed Rulemaking to extend for 
one year the employer duty to ensure crane operator competency for 
construction work, from November 10, 2017, to November 10, 2018. OSHA 
also is proposing to delay the enforcement date for crane operator 
certification for one year from November 10, 2017, to November 10, 
2018. This would be the second delay of the enforcement date, which 
OSHA needs to address stakeholder concerns over the operator 
certification requirements in the 2010 cranes and derricks in 
construction standard.

B. Summary of Economic Impact

    This proposed rule is not economically significant. OSHA proposes 
to revise 29 CFR 1926.1427(k) (competency assessment and training) to 
delay the deadline for compliance with the operator certification 
requirement in its construction standard for cranes and derricks, and 
to extend the existing employer duties for the same period. OSHA's 
preliminary economic analysis shows that delaying the date for operator 
certification and employers' assessment of crane operators, rather than 
allowing both provisions to expire on November 10, 2017, will result in 
a net cost savings for the affected industries. Delaying the compliance 
date for operator certification results in estimated cost savings that 
exceed the estimated new costs for employers to continue to assess 
crane operators to

[[Page 41185]]

ensure their competent operation of the equipment in accordance with 
1926.1427(k). The detailed preliminary economic analysis is in the 
``Agency Determinations'' section of this preamble.

C. Background

1. Operator Certification Options
    OSHA developed the final rule for cranes and derricks in 
construction (29 CFR subpart CC, referred to as ``the crane standard'' 
hereafter) through a negotiated rulemaking process. OSHA established a 
federal advisory committee, the Cranes and Derricks Negotiated 
Rulemaking Advisory Committee (C-DAC), to develop a draft proposed 
rule. C-DAC met in 2003 and 2004 and developed a draft proposed rule 
(which included the provisions concerning crane operator certification 
at issue in this rulemaking) that it provided to OSHA. The rule OSHA 
subsequently proposed closely followed C-DAC's draft proposal (73 FR 
59718).
    The Agency initiated a Small Business Advocacy Review Panel in 
2006. The Agency published the proposed rule for cranes in construction 
in 2008, received public comment on the proposal, and conducted a 
public hearing. Among many other provisions, OSHA's final rule 
incorporated, with minor changes, the four-option certification scheme 
that C-DAC had recommended and the Agency had proposed. Accordingly, in 
Sec.  1926.1427, as originally promulgated, OSHA required employers to 
ensure that their crane operators are certified under at least one of 
four options by November 10, 2014:
    Option 1. Certification by an independent testing organization 
accredited by a nationally recognized accrediting organization;
    Option 2. Qualification by an employer's independently audited 
program;
    Option 3. Qualification by the U.S. military;
    Option 4. Compliance with qualifying state or local licensing 
requirements (where mandatory).
    The third-party certification option in Sec.  1926.1427(b)--Option 
1--is the only certification option that is ``portable,'' meaning that 
any employer who employs an operator may rely on that operator's 
certification as evidence of compliance with the crane standard's 
operator certification requirement. This certification option also is 
the only one that is available to all employers; it is the option that 
OSHA, and the parties that participated in the rulemaking, believed 
would be the one most widely used. In this regard, OSHA is not aware of 
an audited employer qualification program among construction industry 
employers (Option 2), and the crane standard limits the U.S. military 
crane operator certification programs (Option 3) to federal employees 
of the Department of Defense or the armed services. While state and 
local governments certify some crane operators (Option 4), the vast 
majority of operators who become certified do so through Option 1--by 
third-party testing organizations accredited by a nationally recognized 
accrediting organization.
    Under Option 1, a third party performs testing. Before a testing 
organization can issue operator certifications, paragraph 1427(b)(1) of 
the crane standard provides that a nationally recognized accrediting 
organization must accredit the testing organizations. To accredit a 
testing organization, the accrediting agency must determine that the 
testing organization meets industry-recognized criteria for written 
testing materials, practical examinations, test administration, 
grading, facilities and equipment, and personnel. The testing 
organization must administer written and practical tests that:
     Assess the operator's knowledge and skills regarding 
subjects specified in the crane standard;
     provide different levels of certification based on 
equipment capacity and type;
     have procedures to retest applicants who fail; and
     have testing procedures for recertification.
    Paragraph 1427(b)(2) of the final crane standard also specifies 
that, for the purposes of compliance with the crane standard, an 
operator is deemed qualified to operate a particular piece of equipment 
only if the operator is certified for that type and capacity of 
equipment or for higher-capacity equipment of that type. It further 
provides that, if no testing organization offers certification 
examinations for a particular equipment type and/or capacity, the 
operator is deemed qualified to operate that equipment if the operator 
is certified for the type/capacity of equipment that is most similar to 
that equipment, and for which a certification examination is available.
2. Overview of Sec.  1926.1427(k) (Phase-in Provision)
    The final crane standard replaced provisions in 29 CFR 1926 subpart 
N--Cranes, Derricks, Hoists, Elevators, and Conveyors, of the 
construction safety standards. Provisions for employers to ensure that 
operators of equipment, including cranes, are trained and qualified to 
safely operate that equipment are available elsewhere in the 
construction safety standards (see, for example, Sec.  1926.20(b)(4) 
and (f)(2)).
    OSHA delayed the effective date of the operator certification 
requirement for four years, until November 10, 2014 (see Sec.  
1427(k)(1)). To make sure that crane operators knew how to operate 
equipment safely during this phase-in period, the Agency required 
employers to ``ensure that operators of equipment covered by this 
standard are competent to operate the equipment safely'' (Sec.  
1926.1427(k)(2)(i)). When the operator ``assigned to operate machinery 
does not have the required knowledge or ability to operate the 
equipment safely,'' the standard requires employers to train and 
evaluate the operator (Sec.  1926.1427(k)(2)(ii)).
3. Post-Final Rule Developments
    After OSHA issued the final rule, it continued to receive feedback 
from members of the regulated community and conducted stakeholder 
meetings on April 2 and 3, 2013, to give interested members of the 
public the opportunity to express their views. Participants included 
construction contractors, labor unions, crane manufacturers, crane 
rental companies, accredited testing organizations, one of the 
accrediting bodies, insurance companies, crane operator trainers, and 
military employers. Detailed notes of participants' comments are 
available at OSHA-2007-0066-0539. Various parties informed OSHA that, 
in their opinion, the operator certification option would not 
adequately ensure that crane operators could operate their equipment 
safely. They said a certified operator would need additional training, 
experience, and evaluation, beyond the training and evaluation required 
to obtain certification, to ensure that he or she could operate a crane 
safely.
    OSHA also received information that two (of a total of four) 
accredited testing organizations have been issuing certifications only 
by ``type'' of crane, rather than by the ``type and capacity'' of 
crane, as the crane standard requires. As a result, those 
certifications do not meet the standard's requirements and operators 
who obtained certifications from only those organizations cannot, under 
OSHA's crane standard, operate cranes on construction sites after the 
new requirements become effective. Some stakeholders in the crane 
industry requested that OSHA remove the capacity requirement.
    Most of the participants in the stakeholder meetings expressed the

[[Page 41186]]

opinion that an operator's certification by an accredited testing 
organization did not mean that the operator was fully competent or 
experienced to operate a crane safely on a construction work site. The 
participants likened operator certification to a new driver's license, 
or a learner's permit, to drive a car. Most participants said that the 
operator's employer should retain the responsibility to ensure that the 
operator was qualified for the particular crane work assigned. Some 
participants wanted certification to be, or viewed to be, sufficient to 
operate a crane safely. Stakeholders noted that operator certification 
was beneficial in establishing a minimum threshold of operator 
knowledge and familiarity with cranes.

D. Three-Year Extension

    In order to address the issues raised by industry stakeholders 
after publication of the final rule, OSHA proposed a rule delaying the 
compliance date for the operator certification requirements of the 
crane standard, and extending the employer duty to ensure that the 
operator was qualified for the particular crane work assigned, by three 
years until November 10, 2014, (79 FR 7611). Subsequently, OSHA 
conducted a hearing on the rulemaking on May 19, 2014, gathering more 
comments on the proposed extension (OSHA-2007-0066-0521).
    On September 26, 2014, OSHA issued a final rule delaying the 
compliance date for operator certification for three years until 
November 10, 2017, (79 FR 57785). After publication of the final rule, 
OSHA began conducting site visits with a variety of stakeholders and 
the Agency drafted regulatory text with the purpose of addressing the 
capacity issue and the employer duty concerns.
    On March 31 and April 1, 2015, OSHA convened a special meeting of 
Advisory Committee on Construction Safety and Health in which both 
ACCSH members and non-member industry stakeholders provided feedback on 
the draft regulatory text.\1\ Prior to the meeting, OSHA made available 
the draft regulatory text,\2\ an overview of the draft regulatory 
text,\3\ and a summary of the site visits with stakeholders.\4\ OSHA 
received many comments and suggestions for revising the regulatory text 
at the ACCSH meeting. Since that meeting, the Agency has worked to re-
draft the regulatory text and preamble for the proposed rule. To ensure 
the Agency has enough time to propose and finalize the rulemaking, OSHA 
is proposing this one-year extension of the certification requirement 
compliance date. Just as with the previous extension, OSHA is also 
proposing an extension of the existing employer assessment duty for the 
same time period.
---------------------------------------------------------------------------

    \1\ Transcript for March 31: https://www.osha.gov/doc/accsh/transcripts/accsh_20150331.pdf; transcript for April 1: https://www.osha.gov/doc/accsh/transcripts/accsh_20150401.pdf.
    \2\ https://www.osha.gov/doc/accsh/accshcrane.pdf.
    \3\ https://www.osha.gov/doc/accsh/proposed_crane.html.
    \4\ https://www.osha.gov/doc/accsh/summary_crane.html.
---------------------------------------------------------------------------

E. Explanation of Proposed Action and Request for Comment

    The effective dates of the operator certification requirement and 
the other ``phase in'' of employer duties are in 29 CFR 
1926.1427(k)(1). The Agency is proposing to revise Sec.  1427(k)(1) to 
delay the deadline for operator certification by one year from November 
10, 2017, to November 10, 2018, to provide additional time for the 
Agency to propose and finalize a rulemaking that addresses 
stakeholders' concerns. The Agency also is proposing to extend the 
current employer duties in Sec.  1926.1427(k)(2)(i) and (ii) to ensure 
there is no reduction in worker protection during this three-year 
period. When OSHA included these employer duties in the final crane 
standard in 2010, these duties were to be a ``phase in'' to 
certification (75 FR 48027). By extending the date to November 10, 
2018, as proposed in this notice, the requirements would continue to 
serve that purpose and preserve the status quo.
    Without an extension, the certification requirements from the crane 
standard will prevent operators without certification by crane capacity 
from operating cranes, potentially disrupting the construction industry 
by creating a large number of crane operators without compliant 
certifications. Without the extension, after November 10, 2017, there 
would not be any duty for employers to ensure that their operators are 
competent to operate the equipment safely. This could diminish the 
effectiveness of the final rule which OSHA previously estimated to 
prevent 22 fatalities per year (75 FR 47914).
    OSHA seeks comment on this approach, including the duration of the 
proposed extension of the operator certification deadline and the 
existing employer duties. OSHA encourages commenters to include a 
rationale for any alternatives that they propose. OSHA also requests 
comment on the ``Agency Determinations'' section that follows, 
including the preliminary economic analysis, paperwork requirements, 
and other regulatory impacts of this rule on the regulated community.

II. Agency Determinations

A. Preliminary Economic Analysis and Regulatory Flexibility Analysis

    When it issued the final crane rule in 2010, OSHA prepared a final 
economic analysis (2010 FEA) as required by the Occupational Safety and 
Health Act of 1970 (OSH Act; 29 U.S.C. 651 et seq.) and Executive 
Orders 12866 (58 FR 51735) (Sept. 30, 1993) and 13563 (76 FR 3821 (Jan. 
21, 2011)). OSHA also published a Final Regulatory Flexibility Analysis 
as required by the Regulatory Flexibility Act (5 U.S.C. 601-612). On 
September 26, 2014, the Agency included a separate FEA (2014 FEA) when 
it published a final rule delaying until November 10, 2017, the 
deadline for all crane operators to become certified, and extending the 
employer duty to ensure operator competency for the same period (79 FR 
57785). The preliminary economic analysis (PEA) for this rulemaking 
relies on the methodology of the 2014 FEA, which in turn is based on 
estimates from the 2010 FEA, along with public comments and testimony 
and other documents in the 2014 rulemaking record. In this document 
OSHA has summarized some of the information from the 2014 FEA and noted 
where the current analysis differs from the previous FEA. Additional 
background on the analysis in this PEA may be found in the 2014 FEA.
    Because OSHA estimates this rule will have a cost savings for 
employers of $4.4 million using a discount rate of 3 percent for the 
one year of the extension, this final rule is not economically 
significant within the meaning of Executive Order 12866, or a major 
rule under the Unfunded Mandates Reform Act or Section 804 of the Small 
Business Regulatory Enforcement Fairness Act of 1996 (5 U.S.C. 801 et 
seq.).
    This PEA focuses solely on costs, and not on any changes in safety 
and benefits resulting from extending the certification deadline and 
the employer duties under Sec.  1926.1427(k)(2). OSHA previously 
provided its assessment of the benefits of the crane standard in the 
2014 FEA of that standard. As noted elsewhere in this preamble, the 
primary rationale for this proposal is to maintain the status quo--
including preservation of the employer duty to ensure that crane 
operators are competent--while providing OSHA additional time to 
conduct rulemaking on the crane

[[Page 41187]]

operator requirements in response to stakeholder concerns.
    Extending the employer's requirement to ensure an operator's 
competency during this period means taking the same approach of the 
previous extension: Continuing measures in existence since OSHA 
published the crane standard in 2010. As OSHA stated in the preamble to 
the 2010 final rule, the interim measures in paragraph (k) ``are not 
significantly different from requirements that were effective under 
subpart N of this part at former Sec.  1926.550, Sec.  1926.20(b)(4) 
(`the employer shall permit only those employees qualified by training 
or experience to operate equipment and machinery'), and Sec.  
1926.21(b)(2) (`the employer shall instruct each employee in the 
recognition and avoidance of unsafe conditions . . .')'' (75 FR 48027).
    Delaying the operator certification requirement defers a regulatory 
requirement and produces cost savings for employers. There will, 
however, be continuing employer costs for extending the requirement to 
assess operators under existing Sec.  1926.1427(k)(2); if OSHA does not 
extended these requirements, they will expire on November 10, 2017, and 
employers would not incur these costs after 2017. With the extension, 
these continuing employer costs will be offset by a reduction in 
expenses that employers would otherwise have been required to incur to 
ensure that their operators are certified before the existing November 
2017 deadline.
Overview
    In the following analysis, OSHA examines costs and savings to 
determine the net economic effect of the rule. By comparing the 
additional assessment costs to the certification cost savings across 
two scenarios--scenario 1 in which there is no extension of the 2017 
deadline, and scenario 2 in which there is an extension until 2018--
OSHA estimates that the extension will produce a net savings for 
employers of $4.4 million per year using a discount rate of 3 percent 
($5.2 million per year using an interest rate of 7 percent).\5\
---------------------------------------------------------------------------

    \5\ As explained in the following discussion, OSHA typically 
calculates the present value of future costs and benefits using two 
interest rate assumptions, 3% and 7%, as recommended by OMB Circular 
A-4 of September 17, 2003. All dollar amounts unless otherwise 
stated are in 2016 dollars.
---------------------------------------------------------------------------

    OSHA's analysis follows the steps below to reach its estimate of an 
annual net $4.4 million in savings:
    (1) Estimate the annual assessment costs for employers;
    (2) Estimate the annual certification costs for employers; and
    (3) Estimate the year-by-year cost differential for extending the 
certification deadline to 2018.\6\
---------------------------------------------------------------------------

    \6\ Though this is a single year extension, the analysis needs 
to extend over several future years. For convenience, OSHA refers to 
the annual time period as a ``Certification Year'' (CY) in this 
economic analysis, which OSHA defines as ending November 10 of the 
calendar year; e.g., CY 2017 runs from November 10, 2016, to 
November 9, 2017.
---------------------------------------------------------------------------

    The methodology used here is substantially the same as used in the 
2014 extension FEA. Table 1 below summarizes these costs and the 
differentials across the two scenarios. The major differences are 
updated wages and a revised forecast of the composition of the operator 
pool across certification levels. The 2014 FEA analysis addressed a 3-
year extension, so it gradually increased the number of operators 
without any certification during that period. The model in this PEA 
addresses an extension of just a single year, so it holds the number of 
operators with each certification level constant. The latter 
significantly simplifies the analysis versus that presented in the 2014 
FEA extension.
a. Annual Assessment Costs
    OSHA estimated the annual assessment costs using the following 
three steps: First, determine the unit costs of meeting this 
requirement; second, determine the number of assessments that employers 
will need to perform in any given year (this determination includes 
estimating the affected operator pool as a preliminary step); and 
finally, multiply the unit costs of meeting the requirement by the 
number of operators who must meet it in any given year.
    Unit assessment costs. OSHA's unit cost estimates for assessments 
take into account the time needed for the assessment, along with the 
wages of both the operator and the personnel who will perform the 
assessment. OSHA based the time requirements on crane operator 
certification exams currently offered by nationally accredited testing 
organizations. OSHA determined the time needed for various 
certification tests from the 2014 extension, drawing primarily from the 
public stakeholder meetings.
    The Agency estimates separate assessment costs for three types of 
affected operators, which together comprise all affected operators: 
Those who have a certificate that is in compliance with the existing 
crane standard; those who have a certificate that is not in compliance 
with the existing crane standard; and those who have no certificate.\7\ 
As it did in the previous extension, OSHA uses certification status as 
a proxy of competence in estimating the amount of assessment time 
needed for different operators. OSHA expects that an operator already 
certified to operate equipment of a particular type and capacity will 
require less assessment time than an operator certified by type but not 
capacity, who in turn will require less time than an operator who is 
not certified. In deriving these estimates, OSHA determined that 
operators who have a certificate that is compliant with the crane 
standard would have to complete a test that is the equivalent of the 
practical part of the standard crane operator test. The Agency 
estimates that it would take an operator one hour to complete this 
test. Operators who have a certificate that is not in compliance with 
the crane standard would have to complete a test that is equivalent to 
both a written general test and a practical test of the standard crane 
operator test. OSHA estimated that the written general test would take 
1.5 hours to complete, for a total test time of 2.5 hours of testing 
for each operator (1.5 hours for the written general test and 1.0 hour 
for the practical test). Finally, operators with no certificate would 
have to complete a test that is equivalent to the standard written test 
for a specific crane type (also lasting 1.5 hours), as well as the 
written general test and the practical test, for a total test time of 
4.0 hours (1.5 hours for the test on a specific crane type, 1.5 hours 
for the written general test, and 1.0 hour for the practical test).
---------------------------------------------------------------------------

    \7\ OSHA is not making any determination about whether a 
specific certification complies with the requirements of the crane 
standard. For the purposes of this analysis only, OSHA will treat 
certificates that do not include a multi-capacity component as not 
complying with the crane standard, and certificates that include 
both a type and multi-capacity component as complying with the crane 
standard.
---------------------------------------------------------------------------

    The wages used for the crane operator and assessor come from the 
BLS Occupational Employment Survey for May 2016 (BLS 2017a), which is 
an updated version of the same source used in the 2014 extension. From 
this survey a crane operator's (Standard Occupational Classification 
(SOC) 53-7021 Crane and Tower Operators) average hourly wage is $26.58. 
The full cost to the employer includes all benefits as well as the 
wage. From the BLS Employer Costs For Employee Compensation for 
December 2016 (BLS 2017b) the average percentage of benefits in total 
for the construction sector is 30.2%, giving a markup of the wage to 
the total compensation of 1.43

[[Page 41188]]

(1/(1-0.302)). Hence the ``loaded'' total hourly cost of an operator is 
$38.08 (1.43 x $26.58), including a markup for benefits.\8\ Relying on 
the same sources, the wage of the assessor is estimated to be the same 
as the average wage of a construction supervisor (53-1031 First-Line 
Supervisors of Transportation and Material-Moving Machine and Vehicle 
Operators) of $28.75, while the total hourly cost is $41.19 (1.43 x 
$28.75). Below these total hourly costs will be referred to as the 
respective occupation's ``wage.'' For assessments performed by an 
employer of a prospective employee (i.e., a candidate), OSHA uses these 
same operator and assessor wages and the above testing times to 
estimate the cost of assessing prospective employees.
---------------------------------------------------------------------------

    \8\ Calculations in the text may not exactly match due to 
rounding for presentation purposes. All final costs are exact, with 
no rounding.
---------------------------------------------------------------------------

    Multiplying the wages of operators, assessors, and candidates by 
the time taken for each type of assessment provides the cost for each 
type of assessment. Hence, the cost of assessing an operator already 
holding a certificate that complies with the standard (both type and 
capacity) is one hour of both the operator's and assessor's time: 
$79.27 ($38.08 + $41.19). For an operator with a certificate for crane 
type only (not crane capacity), the assessment time is 2.5 hours for a 
cost of $198.17 (2.5 x ($38.08 + $41.19)). Finally, for an operator 
with no certificate, the assessment time is 4.0 hours for a cost of 
$317.48 (4.0 x ($38.08 + $41.19)).
    Besides these assessment costs, OSHA notes that Sec.  
1427(k)(2)(ii) requires employers to provide training to employees if 
they are not already competent to operate their assigned equipment. To 
determine whether an operator is competent, the employer must first 
perform an assessment. Only if an operator fails the assessment must 
the employer provide additional operator training required by Sec.  
1427(k)(2)(ii).
    However, in determining this cost, OSHA made a distinction between 
a nonemployee candidate for an operator position and an operator who is 
currently an employee. For an employer assessing a nonemployee 
candidate, OSHA assumed, based on common industry practice, that the 
employer will not hire a nonemployee candidate who fails the 
assessment. In the second situation, an employee qualified to operate a 
crane fails a type and/or capacity assessment for a crane that differs 
from the crane the employee currently operates. In this situation, the 
cost-minimizing action for the employer is not to assign the employee 
to that type and/or capacity crane, thereby avoiding training costs. 
While the Agency acknowledges that there will be cases in which the 
employer will provide this training, it believes these costs to be 
minimal and, therefore, is not estimating costs for the training. OSHA 
made the same determinations in the 2014 PEA and did not receive public 
comment on them.
    Number of assessments and number of affected operators. The number 
of assessments is difficult to estimate due to the heterogeneity of the 
crane industry. Many operators work continuously for the same employer, 
already have had their assessment, and do not need reassessment, so the 
number of new assessments required by the crane standard for these 
operators will be zero. Some companies will rent both a crane and an 
operator employed by the crane rental company to perform crane work, in 
which case the rental crane company is the operator's employer and 
responsible for operator assessment. In such cases there is no 
requirement for the contractor who is renting the crane service to 
conduct an additional operator assessment. Assuming that employers 
already comply with the assessment and training requirements of the 
existing Sec.  1427(k)(2), employers only need to assess a subset of 
operators: New hires; employees who will operate equipment that differs 
by type and/or capacity from the equipment on which they received their 
current assessment; and operators who indicate they no longer possess 
the required knowledge or skill necessary to operate the equipment.
    To calculate the estimated annual number of assessments, OSHA first 
estimated the current number of crane operators affected by the crane 
standard. The 2014 FEA estimated 117,130 operators and this PEA also 
uses this estimate. The Agency solicits comment and additional data on 
this estimate.
    For the purpose of determining the number of assessments required 
each year under this proposal, OSHA is relying on the 23% turnover rate 
for operators originally identified in the 2008 PEA for the crane rule 
and used most recently in the extension 2014 FEA (79 FR 57793). This 
turnover rate includes all types of operators who would require 
assessment: Operators moving between employers; operators moving 
between different types and/or capacities of equipment; and operators 
newly entering the occupation. OSHA estimated that 26,940 assessments 
occur each year based on turnover (i.e., 117,130 operators x 0.23 
turnover rate). In addition, just as it did with the previous 
extension, OSHA assumed that 15% of operators involved in assessments 
related to turnover would fail the first test administration and need 
reassessment (79 FR 57793). Therefore, OSHA added 4,041 reassessments 
(26,940 assessments x 0.15) to the number of reassessments resulting 
from turnover, for an annual total of 30,981 assessments resulting from 
turnover and test failure (26,940 + 4,041).
    Annual assessment costs. OSHA must determine the annual base amount 
for the two scenarios: (1) Retaining the original 2017 deadline (status 
quo); and (2) extending the deadline to 2018 (NPRM).
    The first part of the calculation is the same under both scenarios. 
Because the annual assessment costs vary by the different levels of 
assessment required (depending on the operator's existing level of 
certification), OSHA grouped the 117,130 operators subject to the crane 
standard into three classifications: Operators with a certificate that 
complies with the standard; operators with a certificate only for crane 
type; and operators with no certification. In order to simplify the 
estimation for this one-year extension (the 2014 extension was for 3 
years) and reflect the last hard data point the Agency has, the Agency 
is using a static crane operator pool and the composition of the base 
operator population used in the 2014 deadline extension: 15,000 Crane 
operators currently have a certificate that complies with the existing 
crane standard, 71,700 have a certificate for crane type only (but not 
capacity), leaving 30,430 crane operators with no crane certification 
(117,130 total operators--(15,000 operators with compliant 
certification + 71,700 operators with certification for type only)).
    Assuming the turnover rate of 23% and the failure rate of 15% for 
turnover-related assessments are distributed proportionally across the 
three types of operators, then the number of assessments for operators 
with compliant certification is 3,968 ((0.23 + (0.23 x 0.15)) x 
15,000), the number of assessments for operators with type-only 
certification is 18,965 ((0.23 + (0.23 x 0.15)) x 71,700), and the 
number of assessments for operators with no certification is 8,049 
((0.23 + (0.23 x 0.15)) x 30,430).
    Under scenario 2 there is an extension and employers would not 
certify all of their operators during CY 2017. OSHA estimated the CY 
2017 assessment costs for scenario 2 by multiplying the assessment 
numbers for each type of

[[Page 41189]]

operator by the unit costs, resulting in a cost of $6,624,861 (($79.27 
x 3,968) + ($198.17 x 18,965) + ($317.08 x 8,049)). Under scenario 1, 
the employer-assessment requirement will be in effect for all of CY 
2017, while employers would be gradually certifying all of their 
operators during CY 2017. As a result, the CY 2017 assessment costs 
identified for scenario 2 would decrease to $4,540,348 from $6,624,861 
in scenario 1. This is because, as compared to scenario 2, there will 
be more operators who will have a compliant certificate, and therefore 
under the approach described above the employer assessment will require 
less time. This reduction in the estimated time, and therefore unit 
cost, lowers the overall assessment cost (see discussion in the 2014 
deadline extension FEA for more details about this methodology).
    Under both scenarios, once the 2010 rule comes into effect the 
employer duty to assess the crane operator no longer is in effect and 
so assessment costs are zero. Thus, in CY 2018, the assessment costs 
under scenario 1 would be zero. Under scenario 2, the assessment costs 
for CY 2018 would be the same as those under scenario 1 for CY 2017, 
because employers would be gradually certifying operators over the 
course of that year.
b. Annual Certification Costs
    OSHA estimated the annual certification costs using the three 
steps: first, determine the unit costs of meeting this requirement; 
second, determine the number of affected operators; and, finally, 
multiply the unit costs of meeting the requirement by the number of 
operators who must meet them. In this PEA, following the same 
methodology as in the 2014 FEA, OSHA estimates that all certifications 
occur in the year prior to the deadline, hence in CY 2017 in scenario 
1, while in CY2018 for the one-year extension in scenario 2. As in the 
annual assessment-cost analysis described above, OSHA provides the 
calculations for CY 2017 under the existing 2017 deadline (scenario 1), 
and then presents the certification costs for CY 2018 that would apply 
if OSHA extends the certification requirement to November 2018 
(scenario 2).
    Unit certification costs. Unit certification costs vary across the 
three different types of operators in the operator pool (operators with 
compliant certification; operators with type-only certification; and 
operators with no certification). Among operators without certification 
there is a further distinction with different unit certification costs: 
Experienced operators without certification and operators who have only 
limited experience. Therefore, there are different unit certification 
costs for four different types of operators. There also are ongoing 
certification costs due to the following two conditions: The 
requirement for re-certification every five years and the need for some 
certified operators to obtain additional certification to operate a 
crane that differs by type and/or capacity from the crane on which they 
received their current certification.
    OSHA estimated these different unit certification costs using 
substantially the same unit-cost assumptions used in the FEA for the 
2010 crane standard (and exactly the same as the FEA of the 2014 
deadline extension.) In those previous FEAs, OSHA estimated that 
training and certification costs for an operator with only limited 
experience would consist of $1,500 for a 2-day course (including tests) 
and 18 hours of the operator's time, for a total cost of $2,185.44 
($1,500 + (18 hours x $38.08)) (see 75 FR 48096-48097). OSHA continues 
to use a cost of $250 for the tests taken without any training (a 
constant fixed fee irrespective of the number of tests (75 FR 48096)), 
and the same number of hours used for each test that it used in the 
assessment calculations provided above (which the Agency based on 
certification test times). Accordingly, OSHA estimates the cost of a 
certificate compliant with the standard for an operator who has a type-
only certificate to be $345.20 (i.e., 1 type/capacity-specific written 
test at 1.5 hours and 1 practical test at 1.0 hours (2.5 hours total), 
plus the fixed $250 fee for the tests (2.5 hours x $38.08) + $250). For 
an experienced operator with no certificate, the cost is $402.32 (i.e., 
the same as the cost for an operator with a type-only certificate plus 
the cost of an added general written test of 1.5 hours (4.0 hours x 
$38.08) + $250)).\9\
---------------------------------------------------------------------------

    \9\ There are no certification costs for operators who already 
have a certificate that complies with the crane standard.
---------------------------------------------------------------------------

    For Scenario 1, Sec.  1926.1427(b)(4) specifies that a certificate 
is valid for five years. OSHA estimates the recertification unit cost 
would be the same as the assessment for an operator with compliant 
certification (i.e., $79.27). In the 2014 extension, OSHA assumed that 
employers would pay a reduced fee for the recertification testing as 
opposed to the cost of a full first-time examination. Because OSHA 
lacked data on exactly how much the fee would be reduced, it used the 
assessment cost as a proxy for the cost of recertification (79 FR 
57794). OSHA did not receive any comment on that approach and is 
retaining it for this rulemaking.
    Finally, there will be certified operators who must obtain 
certification when assigned to a crane that differs by type and/or 
capacity from the crane on which they received their current 
certification. This situation requires additional training, but less 
training than required for a ``new'' operator with only limited 
experience. Accordingly, OSHA estimated the cost for these operators as 
one half of the cost of training and certifying a new operator, or 
$1,092.72 ($2,185.44/2).
    Number of certifications. After establishing the unit certification 
costs, OSHA had to determine how many certifications are necessary to 
ensure compliance with OSHA's standard. In doing so, the Agency uses 
the 5% new-hire estimate from the FEA discussed above to calculate the 
number of new operators; therefore, of the 117,130 operators affected 
by the standard, 5,857 (0.05 x 117,130) would be new operators who 
would require two days for training and certification each year. As 
discussed earlier, OSHA estimated that 71,700 operators have type-only 
certification, 15,000 operators have certification that complies with 
the existing crane standard, and the remaining 24,574 operators 
(117,130 - (71,700 + 15,000 + 5,857)) are experienced operators without 
certification.

[[Page 41190]]

    Under scenario 1 (no extension), after all operators attain 
certification by November 2017 there will still be ongoing 
certification costs each year. With a constant total number of 
operators, the same number of operators (5,857) will be leaving the 
profession each year and will not require recertification when their 
current 5-year certification ends. This leaves 111,274 operators 
(117,130 - 5,857) who will need such periodic recertification. If we 
approximate the timing of requirements for recertification as 
distributed proportionally across years, then 20% of all operators with 
a 5-year certificate (22,255 operators (.20 x 111,274)) would require 
recertification each year.
    A final category of unit certification costs involves the 
continuing need for certified operators to obtain further certification 
when assigned to a crane that differs by type and/or capacity from the 
crane on which they received their current certification. This 
situation arises for both operators working for a single employer and 
operators switching employers.
    The operators who will not need multiple certifications in the 
post-deadline period are operators with certification who move to a new 
employer and operate a crane with the same type and capacity as the 
crane on which they received certification while with their previous 
employer. These operators will not need multiple certifications because 
operator certificates are portable across employers, as specified by 
the crane standard (see Sec.  1427(b)(3)). For an employer looking to 
hire an operator for a specific crane, this option will minimize cost, 
and OSHA assumes employers will choose this option when possible.
    After the certification deadline, OSHA estimates that each year 23% 
of the 117,130 operators (26,940 = 0.23 x 117,130) will enter the 
workforce, change employers, or take on new positions that require one 
or more additional certifications to operate different types and/or 
capacities of cranes. Of these 26,940 operators, OSHA estimates 5 of 
the total 23%, or 5,857 (0.05 x 117,130), will result from new 
operators entering the occupation each year; 9%, or 10,542 (0.09 x 
117,130), will result from operators switching employers but operating 
a crane of the same type and capacity as the crane they operated 
previously (i.e., no certification needed because certification is 
portable in this case); and the remaining 9%, or 10,542, changing jobs 
or positions and requiring one or more additional certification to 
operate a crane that differs by type and/or capacity from the crane 
they operated previously. These percentages are identical to those in 
the 2014 FEA.
    Annualized certification costs. To estimate the annual base cost 
for the first scenario, OSHA calculates the certification costs for CY 
2017 because that is the remaining period before the existing deadline. 
The total cost for certifying all operators in CY 2017 in accordance 
with the existing crane standard using the above unit-cost estimates 
and numbers of operators is $47,436,368 ((71,700 operators with type-
only certification x $345.20) + (24,574 experienced operators without 
certification x $402.32) + (5,857 operators with no experience or 
certification x $2,185.44)). The Agency, following the previous FEAs 
(75 FR 48096 and 79 FR 57795), annualized this cost for the five-year 
period during which operator certification remains effective, resulting 
in an annualized cost of $7,563,216. In section c below, OSHA uses this 
amount in calculating the annual certification costs under scenario 1.
    To determine the annual amount used in calculations for the second 
scenario (the extension to 2018), OSHA examines the costs in CY 2017 
because that is the first year with certification costs. All numbers 
are the same, just shifted forward a year, so the total cost for having 
all crane operators certified in CY 2018 is $47,436,368 (in 2018 
dollars).
c. Year-by-Year Cost Differential for Extending the Certification 
Deadline to 2018 and Preserving the Employer Assessment Duty Over That 
Same Period
    The ultimate goal of this analysis is to determine the annualized 
cost differential between scenario 1 (the status quo) and scenario 2 
(the extensions of the certification date and the employer assessment 
duty), so the final part of this PEA compares the yearly assessment and 
certification costs employers will incur under the two scenarios. 
Because the assessment and certification costs change across years 
under each scenario, OSHA must compare the cost differential in each 
year separately to determine the annual cost savings for each year 
attributable to scenario 2. OSHA calculated the present value of each 
year's differential, which provides a consistent basis for comparing 
the cost differentials over the extended compliance period. OSHA then 
annualized the present value of each differential to identify an annual 
amount that accounts for the discounted costs over this period. Table 1 
below summarizes these calculations.
    Table 1 shows that assessment and certification costs are just 
shifted out another year. As noted earlier, OSHA estimated the overall 
cost differential between these two scenarios by calculating the 
difference in total (assessment and certification) costs each year 
across the two scenarios. The net employer cost savings in current 
dollars attributable to adopting the second scenario are, for each 
certification year: 2017, $18.2 million; 2018, $8.7 million; 2019-2021, 
$0; 2022, - $7.5 million.\10\
---------------------------------------------------------------------------

    \10\ A positive cost differential indicates cost savings and a 
negative cost differential indicates net costs. Savings in the first 
two years are due to the lower cost of assessments versus 
certification. Then net costs in year 2022 are due to the last year 
of annualized certification costs for scenario 2, while this cost 
ends in year 2021 for scenario 1.

                               Table 1--Year-by-Year Cost Differential if OSHA Extends the Certification Deadline to 2018
--------------------------------------------------------------------------------------------------------------------------------------------------------
                    Certification Year                           2017           2018         2019         2020         2021         2022         2023
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                      Operator Pool
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                           Scenario 1 (no deadline extension)
--------------------------------------------------------------------------------------------------------------------------------------------------------
operators with non-compliant certification................          71,700            0            0            0            0            0            0
operators with compliant certification....................          15,000      111,274      111,274      111,274      111,274      111,274      111,274
operators with no certification...........................          24,574            0            0            0            0            0            0
new operators.............................................           5,857        5,857        5,857        5,857        5,857        5,857        5,857
--------------------------------------------------------------------------------------------------------------------------------------------------------

[[Page 41191]]

 
                                                             Scenario 2 (deadline extension)
--------------------------------------------------------------------------------------------------------------------------------------------------------
operators with non-compliant certification................          71,700       71,700            0            0            0            0            0
operators with compliant certification....................          15,000       15,000      111,274      111,274      111,274      111,274      111,274
operators with no certification...........................          24,574       24,574            0            0            0            0            0
new operators.............................................           5,857        5,857        5,857        5,857        5,857        5,857        5,857
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                          Costs
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                           Scenario 1 (no deadline extension)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Total assessment costs....................................       4,540,348            0            0            0            0            0            0
Total certification costs.................................      20,362,269   33,645,533   33,645,533   33,645,533   33,645,533   26,082,317   26,082,317
    Total costs...........................................      24,902,617   33,645,533   33,645,533   33,645,533   33,645,533   26,082,317   26,082,317
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                             Scenario 2 (deadline extension)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Total assessment costs....................................       6,624,861    4,540,348            0            0            0            0            0
Total certification costs.................................               0   20,362,269   33,645,533   33,645,533   33,645,533   33,645,533   26,082,317
    Total costs...........................................       6,624,861   24,902,617   33,645,533   33,645,533   33,645,533   33,645,533   26,082,317
        Cost Differential (Scenario 2 - Scenario 1).......    (18,277,756)  (8,742,916)  ...........  ...........  ...........    7,563,216  ...........
--------------------------------------------------------------------------------------------------------------------------------------------------------
Source: OSHA, ORA Calculations.

    OSHA next determined the present value of these cost differentials 
between the two scenarios. OSHA calculated the present value of future 
costs using two interest rates assumptions, 3 percent and 7 percent, 
which follow the OMB guidelines specified by Circular A-4. At an 
interest rate of 3 percent, the present value of the cost differentials 
for CY 2017 onwards results in an estimated savings of $20.2 million 
($21.3 million using the 7 percent rate). Finally, annualizing the 
present value over five years results in an annualized cost 
differential (i.e., net employer cost savings) of $4.4 million per year 
($5.2 million per year using the 7 percent rate).
    The Agency notes that it did not include an overhead labor cost in 
the Preliminary Economic Analysis (PEA) for this rule. It is important 
to note that there is not one broadly accepted overhead rate and that 
the use of overhead to estimate the marginal costs of labor raises a 
number of issues that should be addressed before applying overhead 
costs to analyze the costs of any specific regulation. There are 
several approaches to look at the cost elements that fit the definition 
of overhead and there are a range of overhead estimates currently used 
within the federal government--for example, the Environmental 
Protection Agency has used 17 percent,\11\ and government contractors 
have been reported to use an average of 77 percent.12 13 
Some overhead costs, such as advertising and marketing, may be more 
closely correlated with output rather than with labor. Other overhead 
costs vary with the number of new employees. For example, rent or 
payroll processing costs may change little with the addition of 1 
employee in a 500-employee firm, but those costs may change 
substantially with the addition of 100 employees. If an employer is 
able to rearrange current employees' duties to implement a rule, then 
the marginal share of overhead costs such as rent, insurance, and major 
office equipment (e.g., computers, printers, copiers) would be very 
difficult to measure with accuracy (e.g., computer use costs associated 
with 2 hours for rule familiarization by an existing employee).
---------------------------------------------------------------------------

    \11\ U.S. Environmental Protection Agency, ``Wage Rates for 
Economic Analyses of the Toxics Release Inventory Program,'' June 
10, 2002.
    \12\ Grant Thornton LLP, 2015 Government Contractor Survey. 
(https://www.grantthornton.com/~/media/content-page-files/public-
sector/pdfs/surveys/2015/Gov-Contractor-Survey.ashx.)
    \13\ For a further example of overhead cost estimates, please 
see the Employee Benefits Security Administration's guidance at 
https://www.dol.gov/sites/default/files/ebsa/laws-and-regulations/rules-and-regulations/technical-appendices/labor-cost-inputs-used-in-ebsa-opr-ria-and-pra-burden-calculations-august-2016.pdf.
---------------------------------------------------------------------------

    If OSHA had included an overhead rate when estimating the marginal 
cost of labor, without further analyzing an appropriate quantitative 
adjustment, and adopted for these purposes an overhead rate of 17 
percent on base wages, as was done in a sensitivity analysis in the FEA 
in support of OSHA's 2016 final rule on Occupational Exposure to 
Respirable Crystalline Silica, the overhead costs would increase cost 
savings from $4.4 million to $4.5 million at a discount rate of 3 
percent, an increase of 1.8 percent, and would increase cost savings 
from $5.2 million to $5.3 million at a discount rate of 7 percent, an 
increase of 1.9 percent.
d. Certification of No Significant Impact on a Substantial Number of 
Small Entities
    Most employers will have savings resulting from the one-year 
extension, particularly employers that planned to pay for operator 
certification in the year before the existing 2017 deadline. The only 
entities likely to see a net cost will be entities that planned to hire 
an operator with compliant certification after November 10, 2017. 
Without the one-year extension, these entities will have no separate 
assessment duty, but under the one-year extension they will have the 
expense involved in assessing operator competency. As noted above, 
however, OSHA estimated the maximum cost for such an assessment (for 
operators with no certification) to be $317.08 per certified operator.
    Small businesses will, by definition, have few operators, and OSHA 
believes the $317.08 cost will be well below 1% of revenues, and well 
below 5% of profits, in any industry sector using cranes. OSHA does not 
consider such small amounts to represent a significant impact on small 
businesses in any industry sector. Hence, OSHA certifies this final 
rule will not have a significant impact on a substantial number of 
small

[[Page 41192]]

entities. After providing relatively similar estimates in the 2014 FEA, 
OSHA made the same certification in the 2014 FEA and did not receive 
any adverse comment on either the certification or its underlying 
rationale.

B. Paperwork Reduction Act

    When OSHA issued the final rule on August 9, 2010, it submitted an 
Information Collection Request (ICR) to the Office of Management and 
Budget (OMB) titled Cranes and Derricks in Construction (29 CFR part 
1926, subpart CC).\14\ On November 1, 2010, OMB approved the ICR under 
OMB Control Number 1218-0261, with an expiration date of November 30, 
2013. On April, 25, 2017, OMB's approval of the ICR was extended to 
April 30, 2020.
---------------------------------------------------------------------------

    \14\ The ICR is available at ID-0425 at www.regulations.gov and 
at www.reginfo.gov (OMB Control Number 1218-0261).
---------------------------------------------------------------------------

    This proposed rule contains no collection of information needing 
OMB approval. OSHA welcomes commenters to submit their comments on this 
determination to the rulemaking docket (OSHA-2007-0066), along with 
their other comments on the proposed rule. For instructions on 
submitting these comments to the docket, see the sections of this 
Federal Register notice titled DATES and ADDRESSES.
    OSHA notes that a Federal agency cannot conduct or sponsor a 
collection of information unless OMB approves it under the Paperwork 
Reduction Act of 1995 (44 U.S.C. 3501 et seq.), and the agency displays 
a currently valid OMB control number. The public need not respond to a 
collection of information requirement unless the agency displays a 
currently valid OMB control number, and, notwithstanding any other 
provision of law, no person shall be subject to a penalty for failing 
to comply with a collection of information requirement if the 
requirement does not display a currently valid OMB control number.

C. Federalism

    OSHA reviewed this proposed rule in accordance with the Executive 
Order on Federalism (Executive Order 13132, 64 FR 43255, August 10, 
1999), which requires that Federal agencies, to the extent possible, 
refrain from limiting state policy options, consult with states prior 
to taking any actions that would restrict state policy options, and 
take such actions only when clear constitutional authority exists and 
the problem is national in scope. Executive Order 13132 provides for 
preemption of state law only with the expressed consent of Congress. 
Federal agencies must limit any such preemption to the extent possible.
    Under Section 18 of the Occupational Safety and Health Act of 1970 
(OSH Act; 29 U.S.C. 651 et seq.), Congress expressly provides that 
states and U.S. territories may adopt, with Federal approval, a plan 
for the development and enforcement of occupational safety and health 
standards. OSHA refers to such states and territories as ``State Plan 
States.'' Occupational safety and health standards developed by State 
Plan States must be at least as effective in providing safe and 
healthful employment and places of employment as the Federal standards. 
29 U.S.C. 667. Subject to these requirements, State Plan States are 
free to develop and enforce under state law their own requirements for 
safety and health standards.
    OSHA previously concluded from its analysis that promulgation of 
subpart CC complies with Executive Order 13132 (75 FR 48128-29). In 
states without an OSHA-approved State Plan, any standard developed from 
this proposed rule would limit state policy options in the same manner 
as every standard promulgated by OSHA. For State Plan States, Section 
18 of the OSH Act, as noted in the previous paragraph, permits State-
Plan States to develop and enforce their own crane standards provided 
these requirements are at least as effective in providing safe and 
healthful employment and places of employment as the requirements 
specified in this proposal.

D. State Plans

    When Federal OSHA promulgates a new standard or more stringent 
amendment to an existing standard, State Plans must amend their 
standards to reflect the new standard or amendment, or show OSHA why 
such action is unnecessary, e.g., because an existing state standard 
covering this area is ``at least as effective'' as the new Federal 
standard or amendment (29 CFR 1953.5(a)). The state standard must be at 
least as effective as the final Federal rule. State Plans must adopt 
the Federal standard or complete their own standard within six months 
of the promulgation date of the final Federal rule. When OSHA 
promulgates a new standard or amendment that does not impose additional 
or more stringent requirements than an existing standard, State Plans 
do not have to amend their standards, although OSHA may encourage them 
to do so. The 21 states and 1 U.S. territory with OSHA-approved 
occupational safety and health plans covering private sector and state 
and local government are: Alaska, Arizona, California, Hawaii, Indiana, 
Iowa, Kentucky, Maryland, Michigan, Minnesota, Nevada, New Mexico, 
North Carolina, Oregon, Puerto Rico, South Carolina, Tennessee, Utah, 
Vermont, Virginia, Washington, and Wyoming. Connecticut, Illinois, 
Maine, New Jersey, New York, and the Virgin Islands have OSHA-approved 
State Plans that apply to state and local government employees only.
    The proposed amendments to OSHA's crane standard preserve the 
status quo and would not impose any new requirements on employers. 
Accordingly, State Plans would not have to amend their standards to 
delay the effective date of their operator certification requirements, 
but they may do so if they so choose. However, if they choose to delay 
the effective date of their certification requirements, they also would 
need to include a corresponding extension of the employer duty to 
assess and train operators that is equivalent to Sec.  1427(k)(2).

E. Unfunded Mandates Reform Act

    When OSHA issued the final rule for cranes and derricks in 
construction, it reviewed the rule according to the Unfunded Mandates 
Reform Act of 1995 (UMRA; 2 U.S.C. 1501 et seq.) and Executive Order 
13132 (64 FR 43255 (Aug. 10, 1999). OSHA concluded that the final rule 
did not meet the definition of a ``Federal intergovernmental mandate'' 
under the UMRA because OSHA standards do not apply to state or local 
governments except in states that voluntarily adopt State Plans. OSHA 
further noted that the rule imposed costs of over $100 million per year 
on the private sector and, therefore, required review under the UMRA 
for those costs, but that its final economic analysis met that 
requirement.
    As discussed above in Section IV.A (Preliminary Economic Analysis 
and Regulatory Flexibility Analysis) of this preamble, this proposed 
extension does not impose any costs on private-sector employers beyond 
those costs already identified in the final rule for cranes and 
derricks in construction and the 2014 extension. Because OSHA reviewed 
the total costs of this final rule under the UMRA, no further review of 
those costs is necessary. Therefore, for the purposes of the UMRA, OSHA 
certifies that this proposed rule does not mandate that state, local, 
or tribal governments adopt new, unfunded regulatory obligations, or 
increase expenditures by the private sector of more than $100 million 
in any year.

[[Page 41193]]

F. Consultation and Coordination With Indian Tribal Governments

    OSHA reviewed this proposed rule in accordance with Executive Order 
13175 (65 FR 67249) and determined that it does not have ``tribal 
implications'' as defined in that order. As proposed, the rule does not 
have substantial direct effects 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.

G. Consultation With the Advisory Committee on Construction Safety and 
Health

    Under 29 CFR parts 1911 and 1912, OSHA must consult with the 
Advisory Committee on Construction Safety and Health (ACCSH or 
Committee), established pursuant to Section 107 of the Contract Work 
Hours and Safety Standards Act (40 U.S.C. 3701 et seq.), in setting 
standards for construction work. Specifically, Sec.  1911.10(a) 
requires the Assistant Secretary to provide the ACCSH with a draft 
proposed rule (along with pertinent factual information) and give the 
Committee an opportunity to submit recommendations. See also Sec.  
1912.3(a) (``[W]henever occupational safety or health standards for 
construction activities are proposed, the Assistant Secretary [for 
Occupational Safety and Health] shall consult the Advisory 
Committee'').
    On June 20, 2017, ACCSH unanimously recommended that OSHA delay, 
for one additional year until November 10, 2018, the compliance date 
for the crane operator certification and extend the employer duty for 
the same period. [Include citation to ACCSH docket, OSHA-2017-0007-
####]

H. Executive Order 13771: Reducing Regulation and Controlling 
Regulatory Costs

    Consistent with EO 13771 (82 FR 9339, February 3, 2017), OSHA has 
estimated the annualized cost savings over 10 years for this proposed 
rule to range from $4.4 million to $5.2 million, depending on the 
discount rate. This proposed rule is expected to be an EO 13771 
deregulatory action. Details on the estimated cost savings of this 
proposed rule can be found in the rule's economic analysis.

I. Legal Considerations

    The purpose of the Occupational Safety and Health Act of 1970 (29 
U.S.C. 651 et seq.) is ``to assure so far as possible every working man 
and woman in the nation safe and healthful working conditions and to 
preserve our human resources.'' 29 U.S.C. 651(b). To achieve this goal, 
Congress authorized the Secretary of Labor to promulgate and enforce 
occupational safety and health standards. 29 U.S.C. 654(b), 655(b). A 
safety or health standard is a standard ``which requires conditions, or 
the adoption or use of one or more practices, means, methods, 
operations, or processes, reasonably necessary or appropriate to 
provide safe or healthful employment or places of employment.'' 29 
U.S.C. 652(8). A standard is reasonably necessary or appropriate within 
the meaning of Section 652(8) when a significant risk of material harm 
exists in the workplace and the standard would substantially reduce or 
eliminate that workplace risk. See Industrial Union Department, AFL-CIO 
v. American Petroleum Institute, 448 U.S. 607 (1980). In the crane 
rulemaking, OSHA made such a determination with respect to the use of 
cranes and derricks in construction (75 FR 47913, 47920-21). This 
proposed rule does not impose any new requirements on employers. 
Therefore, this proposal does not require an additional significant 
risk finding (see Edison Electric Institute v. OSHA, 849 F.2d 611, 620 
(D.C. Cir. 1988)).
    In addition to materially reducing a significant risk, a safety 
standard must be technologically feasible. See UAW v. OSHA, 37 F.3d 
665, 668 (D.C. Cir. 1994). A standard is technologically feasible when 
the protective measures it requires already exist, when available 
technology can bring the protective measures into existence, or when 
that technology is reasonably likely to develop (see American Textile 
Mfrs. Institute v. OSHA, 452 U.S. 490, 513 (1981); American Iron and 
Steel Institute v. OSHA, 939 F.2d 975, 980 (D.C. Cir. 1991)). In the 
2010 Final Economic Analysis for the crane standard, OSHA found the 
standard to be technologically feasible (75 FR 48079). OSHA also found 
the previous extension to be technologically feasible (79 FR 57798). 
This proposed rule would, therefore, be technologically feasible as 
well because it would not require employers to implement any additional 
protective measures; it would simply extend the duration of existing 
requirements.

List of Subjects in 29 CFR Part 1926

    Construction industry, Cranes, Derricks, Occupational safety and 
health, Safety.

    Signed at Washington, DC, on August 25, 2017.
Loren Sweatt,
Deputy Assistant Secretary of Labor for Occupational Safety and Health.

Amendments to Standards

    For the reasons stated in the preamble of this proposed rule, OSHA 
proposes to amend 29 CFR part 1926 as follows:

PART 1926--[AMENDED]

Subpart CC--Cranes and Derricks in Construction

0
1. The authority citation for subpart CC of 29 CFR part 1926 continues 
to read as follows:

    Authority:  40 U.S.C. 3701 et seq.; 29 U.S.C. 653, 655, 657; and 
Secretary of Labor's Orders 5-2007 (72 FR 31159) or 1-2012 (77 FR 
3912), as applicable; and 29 CFR part 1911.

0
2. Amend Sec.  1926.1427 by revising paragraph (k) to read as follows:


Sec.  1926.1427  Operator qualification and certification.

* * * * *
    (k) Phase-in. (1) The provisions of this section became applicable 
on November 8, 2010, except for paragraphs (a)(2) and (f), which are 
applicable November 10, 2018.
    (2) When Sec.  1926.1427(a)(1) is not applicable, all of the 
requirements in paragraphs (k)(2)(i) and (ii) of this section apply 
until November 10, 2018.
    (i) The employer must ensure that operators of equipment covered by 
this standard are competent to operate the equipment safely.
    (ii) When an employee assigned to operate machinery does not have 
the required knowledge or ability to operate the equipment safely, the 
employer must train that employee prior to operating the equipment. The 
employer must ensure that each operator is evaluated to confirm that 
he/she understands the information provided in the training.

[FR Doc. 2017-18441 Filed 8-29-17; 8:45 am]
BILLING CODE 4510-26-P



                                                    41184               Federal Register / Vol. 82, No. 167 / Wednesday, August 30, 2017 / Proposed Rules

                                                    DEPARTMENT OF LABOR                                     comments are available from the                       the documents in the docket. However,
                                                                                                            regulations.gov homepage.                             some information (e.g., copyrighted
                                                    Occupational Safety and Health                             Facsimile: OSHA allows facsimile                   material) is not available publicly to
                                                    Administration                                          transmission of comments that are 10                  read or download through this Web site.
                                                                                                            pages or fewer in length (including                   All submissions, including copyrighted
                                                    29 CFR Part 1926                                        attachments). Fax these documents to                  material, are available for inspection at
                                                                                                            the OSHA Docket Office at (202) 693–                  the OSHA Docket Office. Contact the
                                                    [Docket ID–OSHA–2007–0066]
                                                                                                            1648. OSHA does not require hard                      OSHA Docket Office for assistance in
                                                    RIN 1218–AC86                                           copies of these documents. Instead of                 locating docket submissions.
                                                                                                            transmitting facsimile copies of                      FOR FURTHER INFORMATION CONTACT:
                                                    Cranes and Derricks in Construction:                    attachments that supplement these                        General information and press
                                                    Operator Certification Extension                        documents (e.g., studies, journal                     inquiries: Mr. Frank Meilinger, OSHA
                                                    AGENCY: Occupational Safety and Health                  articles), commenters must submit these               Office of Communications; telephone:
                                                    Administration (OSHA), Labor.                           attachments to the OSHA Docket Office,                (202) 693–1999; email:
                                                                                                            Technical Data Center, Room N–2625,                   Meilinger.Francis2@dol.gov.
                                                    ACTION: Notice of proposed rulemaking.
                                                                                                            OSHA, U.S. Department of Labor, 200                      Technical inquiries: Mr. Vernon
                                                    SUMMARY:    Under OSHA’s standard for                   Constitution Ave. NW., Washington, DC                 Preston; telephone: (202) 693–2020; fax:
                                                    cranes and derricks used in construction                20210. These attachments must clearly                 (202) 693–1689; email: Preston.Vernon@
                                                    work, crane operators are to be certified               identify the sender’s name, the date,                 dol.gov.
                                                    by November 10, 2017. Until that date,                  subject, and the docket number (OSHA–                    Copies of this Federal Register
                                                    employers also have duties under the                    2007–0066) so that the Docket Office                  notice and news releases: Electronic
                                                    standard to ensure that crane operators                 can attach them to the appropriate                    copies of these documents are available
                                                    are trained and competent to operate the                document.                                             at OSHA’s Web page at http://
                                                    crane safely. The Agency delayed the                       Regular mail, express delivery, hand               www.osha.gov.
                                                    deadline for operator certification by                  delivery, and messenger (courier)
                                                                                                                                                                  SUPPLEMENTARY INFORMATION:
                                                    three years to November 10, 2017, and                   service: Submit comments and any
                                                    extended the existing employer duties                   additional material to the OSHA Docket                I. Summary and Explanation of the
                                                    for the same period. The Agency is                      Office, RIN No. 1218–AC86, Technical                  Proposed Amendments to the Standard
                                                    proposing to delay the deadline and                     Data Center, Room N–3508, OSHA, U.S.
                                                                                                                                                                  A. Introduction
                                                    extend the existing employer duty to                    Department of Labor, 200 Constitution
                                                                                                            Ave. NW., Washington, DC 20210;                         OSHA is publishing this Notice of
                                                    ensure that operators of equipment
                                                                                                            telephone: (202) 693–2350. (OSHA’s                    Proposed Rulemaking to extend for one
                                                    covered by this standard are competent
                                                                                                            TTY number is (877) 889–5627). Contact                year the employer duty to ensure crane
                                                    to operate the equipment safely for one
                                                                                                            the OSHA Docket Office for information                operator competency for construction
                                                    year to November 17, 2018.
                                                                                                            about security procedures concerning                  work, from November 10, 2017, to
                                                    DATES: Submit comments to this                                                                                November 10, 2018. OSHA also is
                                                                                                            delivery of materials by express
                                                    proposed rule, including comments to                    delivery, hand delivery, and messenger                proposing to delay the enforcement date
                                                    the information collection (paperwork)                  service. The Docket Office will accept                for crane operator certification for one
                                                    determination (described under the                      deliveries (express delivery, hand                    year from November 10, 2017, to
                                                    section titled ‘‘Agency                                 delivery, messenger service) during the               November 10, 2018. This would be the
                                                    Determinations’’), hearing requests, and                Docket Office’s normal business hours,                second delay of the enforcement date,
                                                    other information by September 29,                      8:15 a.m. to 4:45 p.m., e.s.t.                        which OSHA needs to address
                                                    2017. All submissions must bear a                          Instructions: All submissions must                 stakeholder concerns over the operator
                                                    postmark or provide other evidence of                   include the Agency’s name, the title of               certification requirements in the 2010
                                                    the submission date.                                    the rulemaking (Cranes and Derricks in                cranes and derricks in construction
                                                    ADDRESSES: Submit comments, hearing                     Construction: Operator Certification                  standard.
                                                    requests, and other material, identified                Extension), and the docket number (i.e.,
                                                    by Docket No. OSHA–2007–0066, using                     OSHA Docket No. OSHA–2007–0066).                      B. Summary of Economic Impact
                                                    any of the following methods:                           OSHA will place comments and other                       This proposed rule is not
                                                       Electronically: Submit comments and                  material, including any personal                      economically significant. OSHA
                                                    attachments, as well as hearing requests                information, in the public docket                     proposes to revise 29 CFR 1926.1427(k)
                                                    and other information, electronically at                without revision, and the comments and                (competency assessment and training) to
                                                    http://www.regulations.gov, which is                    other material will be available online at            delay the deadline for compliance with
                                                    the Federal e-Rulemaking Portal. Follow                 http://www.regulations.gov. Therefore,                the operator certification requirement in
                                                    the instructions online for submitting                  OSHA cautions commenters about                        its construction standard for cranes and
                                                    comments. Note that this docket may                     submitting statements they do not want                derricks, and to extend the existing
                                                    include several different Federal                       made available to the public, or                      employer duties for the same period.
                                                    Register notices involving active                       submitting comments that contain                      OSHA’s preliminary economic analysis
                                                    rulemakings, so it is extremely                         personal information (either about                    shows that delaying the date for
                                                    important to select the correct notice or               themselves or others) such as Social                  operator certification and employers’
                                                    its ID number when submitting                           Security numbers, birth dates, and                    assessment of crane operators, rather
mstockstill on DSK30JT082PROD with PROPOSALS




                                                    comments for this rulemaking. After                     medical data.                                         than allowing both provisions to expire
                                                    accessing the docket (OSHA–2007–                           Docket: To read or download                        on November 10, 2017, will result in a
                                                    0066), check the ‘‘proposed rule’’ box in               comments or other material in the                     net cost savings for the affected
                                                    the column headed ‘‘Document Type,’’                    docket, go to http://www.regulations.gov              industries. Delaying the compliance
                                                    find the document posted on the date of                 or to the OSHA Docket Office at the                   date for operator certification results in
                                                    publication of this document, and click                 above address. The electronic docket for              estimated cost savings that exceed the
                                                    the ‘‘Submit a Comment’’ link.                          this proposed rule established at http://             estimated new costs for employers to
                                                    Additional instructions for submitting                  www.regulations.gov contains most of                  continue to assess crane operators to


                                               VerDate Sep<11>2014   18:16 Aug 29, 2017   Jkt 241001   PO 00000   Frm 00006   Fmt 4702   Sfmt 4702   E:\FR\FM\30AUP1.SGM   30AUP1


                                                                        Federal Register / Vol. 82, No. 167 / Wednesday, August 30, 2017 / Proposed Rules                                            41185

                                                    ensure their competent operation of the                 used. In this regard, OSHA is not aware               including cranes, are trained and
                                                    equipment in accordance with                            of an audited employer qualification                  qualified to safely operate that
                                                    1926.1427(k). The detailed preliminary                  program among construction industry                   equipment are available elsewhere in
                                                    economic analysis is in the ‘‘Agency                    employers (Option 2), and the crane                   the construction safety standards (see,
                                                    Determinations’’ section of this                        standard limits the U.S. military crane               for example, § 1926.20(b)(4) and (f)(2)).
                                                    preamble.                                               operator certification programs (Option                  OSHA delayed the effective date of
                                                                                                            3) to federal employees of the                        the operator certification requirement
                                                    C. Background                                           Department of Defense or the armed                    for four years, until November 10, 2014
                                                    1. Operator Certification Options                       services. While state and local                       (see § 1427(k)(1)). To make sure that
                                                                                                            governments certify some crane                        crane operators knew how to operate
                                                       OSHA developed the final rule for                                                                          equipment safely during this phase-in
                                                                                                            operators (Option 4), the vast majority of
                                                    cranes and derricks in construction (29                                                                       period, the Agency required employers
                                                                                                            operators who become certified do so
                                                    CFR subpart CC, referred to as ‘‘the                                                                          to ‘‘ensure that operators of equipment
                                                                                                            through Option 1—by third-party testing
                                                    crane standard’’ hereafter) through a                                                                         covered by this standard are competent
                                                                                                            organizations accredited by a nationally
                                                    negotiated rulemaking process. OSHA                                                                           to operate the equipment safely’’
                                                                                                            recognized accrediting organization.
                                                    established a federal advisory                            Under Option 1, a third party                       (§ 1926.1427(k)(2)(i)). When the operator
                                                    committee, the Cranes and Derricks                      performs testing. Before a testing                    ‘‘assigned to operate machinery does not
                                                    Negotiated Rulemaking Advisory                          organization can issue operator                       have the required knowledge or ability
                                                    Committee (C–DAC), to develop a draft                   certifications, paragraph 1427(b)(1) of               to operate the equipment safely,’’ the
                                                    proposed rule. C–DAC met in 2003 and                    the crane standard provides that a                    standard requires employers to train and
                                                    2004 and developed a draft proposed                     nationally recognized accrediting                     evaluate the operator
                                                    rule (which included the provisions                     organization must accredit the testing                (§ 1926.1427(k)(2)(ii)).
                                                    concerning crane operator certification                 organizations. To accredit a testing
                                                    at issue in this rulemaking) that it                                                                          3. Post-Final Rule Developments
                                                                                                            organization, the accrediting agency
                                                    provided to OSHA. The rule OSHA                         must determine that the testing                          After OSHA issued the final rule, it
                                                    subsequently proposed closely followed                  organization meets industry-recognized                continued to receive feedback from
                                                    C–DAC’s draft proposal (73 FR 59718).                   criteria for written testing materials,               members of the regulated community
                                                       The Agency initiated a Small                                                                               and conducted stakeholder meetings on
                                                                                                            practical examinations, test
                                                    Business Advocacy Review Panel in                                                                             April 2 and 3, 2013, to give interested
                                                                                                            administration, grading, facilities and
                                                    2006. The Agency published the                                                                                members of the public the opportunity
                                                                                                            equipment, and personnel. The testing
                                                    proposed rule for cranes in construction                                                                      to express their views. Participants
                                                                                                            organization must administer written
                                                    in 2008, received public comment on                                                                           included construction contractors, labor
                                                                                                            and practical tests that:
                                                    the proposal, and conducted a public                      • Assess the operator’s knowledge                   unions, crane manufacturers, crane
                                                    hearing. Among many other provisions,                   and skills regarding subjects specified in            rental companies, accredited testing
                                                    OSHA’s final rule incorporated, with                    the crane standard;                                   organizations, one of the accrediting
                                                    minor changes, the four-option                            • provide different levels of                       bodies, insurance companies, crane
                                                    certification scheme that C–DAC had                     certification based on equipment                      operator trainers, and military
                                                    recommended and the Agency had                          capacity and type;                                    employers. Detailed notes of
                                                    proposed. Accordingly, in § 1926.1427,                    • have procedures to retest applicants              participants’ comments are available at
                                                    as originally promulgated, OSHA                         who fail; and                                         OSHA–2007–0066–0539. Various
                                                    required employers to ensure that their                   • have testing procedures for                       parties informed OSHA that, in their
                                                    crane operators are certified under at                  recertification.                                      opinion, the operator certification
                                                    least one of four options by November                     Paragraph 1427(b)(2) of the final crane             option would not adequately ensure that
                                                    10, 2014:                                               standard also specifies that, for the                 crane operators could operate their
                                                       Option 1. Certification by an                        purposes of compliance with the crane                 equipment safely. They said a certified
                                                    independent testing organization                        standard, an operator is deemed                       operator would need additional
                                                    accredited by a nationally recognized                   qualified to operate a particular piece of            training, experience, and evaluation,
                                                    accrediting organization;                               equipment only if the operator is                     beyond the training and evaluation
                                                       Option 2. Qualification by an                        certified for that type and capacity of               required to obtain certification, to
                                                    employer’s independently audited                        equipment or for higher-capacity                      ensure that he or she could operate a
                                                    program;                                                equipment of that type. It further                    crane safely.
                                                       Option 3. Qualification by the U.S.                  provides that, if no testing organization                OSHA also received information that
                                                    military;                                               offers certification examinations for a               two (of a total of four) accredited testing
                                                       Option 4. Compliance with qualifying                 particular equipment type and/or                      organizations have been issuing
                                                    state or local licensing requirements                   capacity, the operator is deemed                      certifications only by ‘‘type’’ of crane,
                                                    (where mandatory).                                      qualified to operate that equipment if                rather than by the ‘‘type and capacity’’
                                                       The third-party certification option in              the operator is certified for the type/               of crane, as the crane standard requires.
                                                    § 1926.1427(b)—Option 1—is the only                     capacity of equipment that is most                    As a result, those certifications do not
                                                    certification option that is ‘‘portable,’’              similar to that equipment, and for which              meet the standard’s requirements and
                                                    meaning that any employer who                           a certification examination is available.             operators who obtained certifications
                                                    employs an operator may rely on that                                                                          from only those organizations cannot,
mstockstill on DSK30JT082PROD with PROPOSALS




                                                    operator’s certification as evidence of                 2. Overview of § 1926.1427(k) (Phase-in               under OSHA’s crane standard, operate
                                                    compliance with the crane standard’s                    Provision)                                            cranes on construction sites after the
                                                    operator certification requirement. This                   The final crane standard replaced                  new requirements become effective.
                                                    certification option also is the only one               provisions in 29 CFR 1926 subpart N—                  Some stakeholders in the crane industry
                                                    that is available to all employers; it is               Cranes, Derricks, Hoists, Elevators, and              requested that OSHA remove the
                                                    the option that OSHA, and the parties                   Conveyors, of the construction safety                 capacity requirement.
                                                    that participated in the rulemaking,                    standards. Provisions for employers to                   Most of the participants in the
                                                    believed would be the one most widely                   ensure that operators of equipment,                   stakeholder meetings expressed the


                                               VerDate Sep<11>2014   18:16 Aug 29, 2017   Jkt 241001   PO 00000   Frm 00007   Fmt 4702   Sfmt 4702   E:\FR\FM\30AUP1.SGM   30AUP1


                                                    41186                Federal Register / Vol. 82, No. 167 / Wednesday, August 30, 2017 / Proposed Rules

                                                    opinion that an operator’s certification                suggestions for revising the regulatory               economic analysis, paperwork
                                                    by an accredited testing organization                   text at the ACCSH meeting. Since that                 requirements, and other regulatory
                                                    did not mean that the operator was fully                meeting, the Agency has worked to re-                 impacts of this rule on the regulated
                                                    competent or experienced to operate a                   draft the regulatory text and preamble                community.
                                                    crane safely on a construction work site.               for the proposed rule. To ensure the
                                                                                                                                                                  II. Agency Determinations
                                                    The participants likened operator                       Agency has enough time to propose and
                                                    certification to a new driver’s license, or             finalize the rulemaking, OSHA is                      A. Preliminary Economic Analysis and
                                                    a learner’s permit, to drive a car. Most                proposing this one-year extension of the              Regulatory Flexibility Analysis
                                                    participants said that the operator’s                   certification requirement compliance                    When it issued the final crane rule in
                                                    employer should retain the                              date. Just as with the previous                       2010, OSHA prepared a final economic
                                                    responsibility to ensure that the                       extension, OSHA is also proposing an                  analysis (2010 FEA) as required by the
                                                    operator was qualified for the particular               extension of the existing employer                    Occupational Safety and Health Act of
                                                    crane work assigned. Some participants                  assessment duty for the same time                     1970 (OSH Act; 29 U.S.C. 651 et seq.)
                                                    wanted certification to be, or viewed to                period.
                                                                                                                                                                  and Executive Orders 12866 (58 FR
                                                    be, sufficient to operate a crane safely.               E. Explanation of Proposed Action and                 51735) (Sept. 30, 1993) and 13563 (76
                                                    Stakeholders noted that operator                        Request for Comment                                   FR 3821 (Jan. 21, 2011)). OSHA also
                                                    certification was beneficial in                                                                               published a Final Regulatory Flexibility
                                                    establishing a minimum threshold of                        The effective dates of the operator
                                                                                                            certification requirement and the other               Analysis as required by the Regulatory
                                                    operator knowledge and familiarity with                                                                       Flexibility Act (5 U.S.C. 601–612). On
                                                    cranes.                                                 ‘‘phase in’’ of employer duties are in 29
                                                                                                            CFR 1926.1427(k)(1). The Agency is                    September 26, 2014, the Agency
                                                    D. Three-Year Extension                                 proposing to revise § 1427(k)(1) to delay             included a separate FEA (2014 FEA)
                                                                                                            the deadline for operator certification by            when it published a final rule delaying
                                                       In order to address the issues raised
                                                                                                            one year from November 10, 2017, to                   until November 10, 2017, the deadline
                                                    by industry stakeholders after
                                                                                                            November 10, 2018, to provide                         for all crane operators to become
                                                    publication of the final rule, OSHA
                                                                                                            additional time for the Agency to                     certified, and extending the employer
                                                    proposed a rule delaying the
                                                                                                            propose and finalize a rulemaking that                duty to ensure operator competency for
                                                    compliance date for the operator
                                                                                                            addresses stakeholders’ concerns. The                 the same period (79 FR 57785). The
                                                    certification requirements of the crane
                                                                                                            Agency also is proposing to extend the                preliminary economic analysis (PEA) for
                                                    standard, and extending the employer
                                                                                                            current employer duties in                            this rulemaking relies on the
                                                    duty to ensure that the operator was
                                                                                                            § 1926.1427(k)(2)(i) and (ii) to ensure               methodology of the 2014 FEA, which in
                                                    qualified for the particular crane work
                                                                                                            there is no reduction in worker                       turn is based on estimates from the 2010
                                                    assigned, by three years until November
                                                                                                            protection during this three-year period.             FEA, along with public comments and
                                                    10, 2014, (79 FR 7611). Subsequently,
                                                                                                            When OSHA included these employer                     testimony and other documents in the
                                                    OSHA conducted a hearing on the
                                                                                                            duties in the final crane standard in                 2014 rulemaking record. In this
                                                    rulemaking on May 19, 2014, gathering
                                                                                                            2010, these duties were to be a ‘‘phase               document OSHA has summarized some
                                                    more comments on the proposed
                                                                                                            in’’ to certification (75 FR 48027). By               of the information from the 2014 FEA
                                                    extension (OSHA–2007–0066–0521).
                                                                                                            extending the date to November 10,                    and noted where the current analysis
                                                       On September 26, 2014, OSHA issued
                                                                                                            2018, as proposed in this notice, the                 differs from the previous FEA.
                                                    a final rule delaying the compliance
                                                                                                            requirements would continue to serve                  Additional background on the analysis
                                                    date for operator certification for three
                                                                                                            that purpose and preserve the status                  in this PEA may be found in the 2014
                                                    years until November 10, 2017, (79 FR
                                                                                                            quo.                                                  FEA.
                                                    57785). After publication of the final
                                                                                                               Without an extension, the                            Because OSHA estimates this rule
                                                    rule, OSHA began conducting site visits
                                                                                                            certification requirements from the                   will have a cost savings for employers
                                                    with a variety of stakeholders and the
                                                                                                            crane standard will prevent operators                 of $4.4 million using a discount rate of
                                                    Agency drafted regulatory text with the
                                                                                                            without certification by crane capacity               3 percent for the one year of the
                                                    purpose of addressing the capacity issue
                                                                                                            from operating cranes, potentially                    extension, this final rule is not
                                                    and the employer duty concerns.
                                                                                                            disrupting the construction industry by               economically significant within the
                                                       On March 31 and April 1, 2015,
                                                                                                            creating a large number of crane                      meaning of Executive Order 12866, or a
                                                    OSHA convened a special meeting of
                                                                                                            operators without compliant                           major rule under the Unfunded
                                                    Advisory Committee on Construction
                                                                                                            certifications. Without the extension,                Mandates Reform Act or Section 804 of
                                                    Safety and Health in which both ACCSH
                                                                                                            after November 10, 2017, there would                  the Small Business Regulatory
                                                    members and non-member industry
                                                                                                            not be any duty for employers to ensure               Enforcement Fairness Act of 1996 (5
                                                    stakeholders provided feedback on the
                                                                                                            that their operators are competent to                 U.S.C. 801 et seq.).
                                                    draft regulatory text.1 Prior to the                                                                            This PEA focuses solely on costs, and
                                                                                                            operate the equipment safely. This
                                                    meeting, OSHA made available the draft                                                                        not on any changes in safety and
                                                                                                            could diminish the effectiveness of the
                                                    regulatory text,2 an overview of the draft                                                                    benefits resulting from extending the
                                                                                                            final rule which OSHA previously
                                                    regulatory text,3 and a summary of the                                                                        certification deadline and the employer
                                                                                                            estimated to prevent 22 fatalities per
                                                    site visits with stakeholders.4 OSHA                                                                          duties under § 1926.1427(k)(2). OSHA
                                                                                                            year (75 FR 47914).
                                                    received many comments and                                 OSHA seeks comment on this                         previously provided its assessment of
                                                                                                            approach, including the duration of the               the benefits of the crane standard in the
mstockstill on DSK30JT082PROD with PROPOSALS




                                                       1 Transcript for March 31: https://www.osha.gov/

                                                    doc/accsh/transcripts/accsh_20150331.pdf;               proposed extension of the operator                    2014 FEA of that standard. As noted
                                                    transcript for April 1: https://www.osha.gov/doc/       certification deadline and the existing               elsewhere in this preamble, the primary
                                                    accsh/transcripts/accsh_20150401.pdf.                   employer duties. OSHA encourages                      rationale for this proposal is to maintain
                                                       2 https://www.osha.gov/doc/accsh/
                                                                                                            commenters to include a rationale for                 the status quo—including preservation
                                                    accshcrane.pdf.
                                                       3 https://www.osha.gov/doc/accsh/proposed_
                                                                                                            any alternatives that they propose.                   of the employer duty to ensure that
                                                    crane.html.                                             OSHA also requests comment on the                     crane operators are competent—while
                                                       4 https://www.osha.gov/doc/accsh/summary_            ‘‘Agency Determinations’’ section that                providing OSHA additional time to
                                                    crane.html.                                             follows, including the preliminary                    conduct rulemaking on the crane


                                               VerDate Sep<11>2014   18:16 Aug 29, 2017   Jkt 241001   PO 00000   Frm 00008   Fmt 4702   Sfmt 4702   E:\FR\FM\30AUP1.SGM   30AUP1


                                                                         Federal Register / Vol. 82, No. 167 / Wednesday, August 30, 2017 / Proposed Rules                                                    41187

                                                    operator requirements in response to                       (3) Estimate the year-by-year cost                  have no certificate.7 As it did in the
                                                    stakeholder concerns.                                    differential for extending the                        previous extension, OSHA uses
                                                       Extending the employer’s requirement                  certification deadline to 2018.6                      certification status as a proxy of
                                                    to ensure an operator’s competency                         The methodology used here is                        competence in estimating the amount of
                                                    during this period means taking the                                                                            assessment time needed for different
                                                                                                             substantially the same as used in the
                                                    same approach of the previous                                                                                  operators. OSHA expects that an
                                                                                                             2014 extension FEA. Table 1 below
                                                    extension: Continuing measures in                                                                              operator already certified to operate
                                                                                                             summarizes these costs and the
                                                    existence since OSHA published the                                                                             equipment of a particular type and
                                                                                                             differentials across the two scenarios.
                                                    crane standard in 2010. As OSHA stated                                                                         capacity will require less assessment
                                                                                                             The major differences are updated
                                                    in the preamble to the 2010 final rule,                                                                        time than an operator certified by type
                                                                                                             wages and a revised forecast of the
                                                    the interim measures in paragraph (k)                                                                          but not capacity, who in turn will
                                                                                                             composition of the operator pool across
                                                    ‘‘are not significantly different from                                                                         require less time than an operator who
                                                                                                             certification levels. The 2014 FEA
                                                    requirements that were effective under                                                                         is not certified. In deriving these
                                                    subpart N of this part at former                         analysis addressed a 3-year extension,
                                                                                                             so it gradually increased the number of               estimates, OSHA determined that
                                                    § 1926.550, § 1926.20(b)(4) (‘the                                                                              operators who have a certificate that is
                                                    employer shall permit only those                         operators without any certification
                                                                                                             during that period. The model in this                 compliant with the crane standard
                                                    employees qualified by training or                                                                             would have to complete a test that is the
                                                    experience to operate equipment and                      PEA addresses an extension of just a
                                                                                                             single year, so it holds the number of                equivalent of the practical part of the
                                                    machinery’), and § 1926.21(b)(2) (‘the                                                                         standard crane operator test. The
                                                    employer shall instruct each employee                    operators with each certification level
                                                                                                             constant. The latter significantly                    Agency estimates that it would take an
                                                    in the recognition and avoidance of                                                                            operator one hour to complete this test.
                                                    unsafe conditions . . .’)’’ (75 FR 48027).               simplifies the analysis versus that
                                                                                                             presented in the 2014 FEA extension.                  Operators who have a certificate that is
                                                       Delaying the operator certification                                                                         not in compliance with the crane
                                                    requirement defers a regulatory                          a. Annual Assessment Costs                            standard would have to complete a test
                                                    requirement and produces cost savings                                                                          that is equivalent to both a written
                                                    for employers. There will, however, be                      OSHA estimated the annual                          general test and a practical test of the
                                                    continuing employer costs for extending                  assessment costs using the following                  standard crane operator test. OSHA
                                                    the requirement to assess operators                      three steps: First, determine the unit                estimated that the written general test
                                                    under existing § 1926.1427(k)(2); if                     costs of meeting this requirement;                    would take 1.5 hours to complete, for a
                                                    OSHA does not extended these                             second, determine the number of                       total test time of 2.5 hours of testing for
                                                    requirements, they will expire on                        assessments that employers will need to               each operator (1.5 hours for the written
                                                    November 10, 2017, and employers                         perform in any given year (this                       general test and 1.0 hour for the
                                                    would not incur these costs after 2017.                  determination includes estimating the                 practical test). Finally, operators with
                                                    With the extension, these continuing                     affected operator pool as a preliminary               no certificate would have to complete a
                                                    employer costs will be offset by a                       step); and finally, multiply the unit                 test that is equivalent to the standard
                                                    reduction in expenses that employers                     costs of meeting the requirement by the               written test for a specific crane type
                                                    would otherwise have been required to                    number of operators who must meet it                  (also lasting 1.5 hours), as well as the
                                                    incur to ensure that their operators are                 in any given year.                                    written general test and the practical
                                                    certified before the existing November                      Unit assessment costs. OSHA’s unit                 test, for a total test time of 4.0 hours (1.5
                                                    2017 deadline.                                           cost estimates for assessments take into              hours for the test on a specific crane
                                                    Overview                                                 account the time needed for the                       type, 1.5 hours for the written general
                                                                                                             assessment, along with the wages of                   test, and 1.0 hour for the practical test).
                                                       In the following analysis, OSHA                                                                                The wages used for the crane operator
                                                                                                             both the operator and the personnel
                                                    examines costs and savings to determine                                                                        and assessor come from the BLS
                                                                                                             who will perform the assessment. OSHA
                                                    the net economic effect of the rule. By                                                                        Occupational Employment Survey for
                                                                                                             based the time requirements on crane
                                                    comparing the additional assessment                                                                            May 2016 (BLS 2017a), which is an
                                                                                                             operator certification exams currently
                                                    costs to the certification cost savings                                                                        updated version of the same source used
                                                                                                             offered by nationally accredited testing
                                                    across two scenarios—scenario 1 in                                                                             in the 2014 extension. From this survey
                                                                                                             organizations. OSHA determined the
                                                    which there is no extension of the 2017                                                                        a crane operator’s (Standard
                                                                                                             time needed for various certification
                                                    deadline, and scenario 2 in which there                                                                        Occupational Classification (SOC) 53–
                                                                                                             tests from the 2014 extension, drawing
                                                    is an extension until 2018—OSHA                                                                                7021 Crane and Tower Operators)
                                                                                                             primarily from the public stakeholder
                                                    estimates that the extension will                                                                              average hourly wage is $26.58. The full
                                                                                                             meetings.
                                                    produce a net savings for employers of                                                                         cost to the employer includes all
                                                    $4.4 million per year using a discount                      The Agency estimates separate
                                                                                                                                                                   benefits as well as the wage. From the
                                                    rate of 3 percent ($5.2 million per year                 assessment costs for three types of
                                                                                                                                                                   BLS Employer Costs For Employee
                                                    using an interest rate of 7 percent).5                   affected operators, which together
                                                                                                                                                                   Compensation for December 2016 (BLS
                                                       OSHA’s analysis follows the steps                     comprise all affected operators: Those
                                                                                                                                                                   2017b) the average percentage of
                                                    below to reach its estimate of an annual                 who have a certificate that is in
                                                                                                                                                                   benefits in total for the construction
                                                    net $4.4 million in savings:                             compliance with the existing crane
                                                                                                                                                                   sector is 30.2%, giving a markup of the
                                                       (1) Estimate the annual assessment                    standard; those who have a certificate
                                                                                                                                                                   wage to the total compensation of 1.43
                                                    costs for employers;                                     that is not in compliance with the
mstockstill on DSK30JT082PROD with PROPOSALS




                                                       (2) Estimate the annual certification                 existing crane standard; and those who                  7 OSHA is not making any determination about
                                                    costs for employers; and                                                                                       whether a specific certification complies with the
                                                                                                               6 Though this is a single year extension, the       requirements of the crane standard. For the
                                                      5 As explained in the following discussion, OSHA       analysis needs to extend over several future years.   purposes of this analysis only, OSHA will treat
                                                    typically calculates the present value of future costs   For convenience, OSHA refers to the annual time       certificates that do not include a multi-capacity
                                                    and benefits using two interest rate assumptions,        period as a ‘‘Certification Year’’ (CY) in this       component as not complying with the crane
                                                    3% and 7%, as recommended by OMB Circular A–             economic analysis, which OSHA defines as ending       standard, and certificates that include both a type
                                                    4 of September 17, 2003. All dollar amounts unless       November 10 of the calendar year; e.g., CY 2017       and multi-capacity component as complying with
                                                    otherwise stated are in 2016 dollars.                    runs from November 10, 2016, to November 9, 2017.     the crane standard.



                                               VerDate Sep<11>2014   18:16 Aug 29, 2017   Jkt 241001   PO 00000   Frm 00009   Fmt 4702   Sfmt 4702   E:\FR\FM\30AUP1.SGM   30AUP1


                                                    41188                Federal Register / Vol. 82, No. 167 / Wednesday, August 30, 2017 / Proposed Rules

                                                    (1/(1–0.302)). Hence the ‘‘loaded’’ total               cost-minimizing action for the employer               In addition, just as it did with the
                                                    hourly cost of an operator is $38.08                    is not to assign the employee to that                 previous extension, OSHA assumed that
                                                    (1.43 × $26.58), including a markup for                 type and/or capacity crane, thereby                   15% of operators involved in
                                                    benefits.8 Relying on the same sources,                 avoiding training costs. While the                    assessments related to turnover would
                                                    the wage of the assessor is estimated to                Agency acknowledges that there will be                fail the first test administration and
                                                    be the same as the average wage of a                    cases in which the employer will                      need reassessment (79 FR 57793).
                                                    construction supervisor (53–1031 First-                 provide this training, it believes these              Therefore, OSHA added 4,041
                                                    Line Supervisors of Transportation and                  costs to be minimal and, therefore, is                reassessments (26,940 assessments ×
                                                    Material-Moving Machine and Vehicle                     not estimating costs for the training.                0.15) to the number of reassessments
                                                    Operators) of $28.75, while the total                   OSHA made the same determinations in                  resulting from turnover, for an annual
                                                    hourly cost is $41.19 (1.43 × $28.75).                  the 2014 PEA and did not receive public               total of 30,981 assessments resulting
                                                    Below these total hourly costs will be                  comment on them.                                      from turnover and test failure (26,940 +
                                                    referred to as the respective                              Number of assessments and number                   4,041).
                                                    occupation’s ‘‘wage.’’ For assessments                  of affected operators. The number of                     Annual assessment costs. OSHA must
                                                    performed by an employer of a                           assessments is difficult to estimate due              determine the annual base amount for
                                                    prospective employee (i.e., a candidate),               to the heterogeneity of the crane                     the two scenarios: (1) Retaining the
                                                    OSHA uses these same operator and                       industry. Many operators work                         original 2017 deadline (status quo); and
                                                    assessor wages and the above testing                    continuously for the same employer,                   (2) extending the deadline to 2018
                                                    times to estimate the cost of assessing                 already have had their assessment, and                (NPRM).
                                                    prospective employees.                                  do not need reassessment, so the                         The first part of the calculation is the
                                                       Multiplying the wages of operators,                  number of new assessments required by                 same under both scenarios. Because the
                                                    assessors, and candidates by the time                   the crane standard for these operators                annual assessment costs vary by the
                                                    taken for each type of assessment                       will be zero. Some companies will rent                different levels of assessment required
                                                    provides the cost for each type of                      both a crane and an operator employed                 (depending on the operator’s existing
                                                    assessment. Hence, the cost of assessing                by the crane rental company to perform                level of certification), OSHA grouped
                                                    an operator already holding a certificate               crane work, in which case the rental                  the 117,130 operators subject to the
                                                    that complies with the standard (both                   crane company is the operator’s                       crane standard into three classifications:
                                                    type and capacity) is one hour of both                  employer and responsible for operator                 Operators with a certificate that
                                                    the operator’s and assessor’s time:                     assessment. In such cases there is no                 complies with the standard; operators
                                                    $79.27 ($38.08 + $41.19). For an                        requirement for the contractor who is                 with a certificate only for crane type;
                                                    operator with a certificate for crane type              renting the crane service to conduct an               and operators with no certification. In
                                                    only (not crane capacity), the                          additional operator assessment.                       order to simplify the estimation for this
                                                    assessment time is 2.5 hours for a cost                 Assuming that employers already                       one-year extension (the 2014 extension
                                                    of $198.17 (2.5 × ($38.08 + $41.19)).                   comply with the assessment and                        was for 3 years) and reflect the last hard
                                                    Finally, for an operator with no                        training requirements of the existing                 data point the Agency has, the Agency
                                                    certificate, the assessment time is 4.0                 § 1427(k)(2), employers only need to                  is using a static crane operator pool and
                                                    hours for a cost of $317.48 (4.0 × ($38.08              assess a subset of operators: New hires;              the composition of the base operator
                                                    + $41.19)).                                             employees who will operate equipment                  population used in the 2014 deadline
                                                       Besides these assessment costs, OSHA                 that differs by type and/or capacity from             extension: 15,000 Crane operators
                                                    notes that § 1427(k)(2)(ii) requires                    the equipment on which they received                  currently have a certificate that
                                                    employers to provide training to                        their current assessment; and operators               complies with the existing crane
                                                    employees if they are not already                       who indicate they no longer possess the               standard, 71,700 have a certificate for
                                                    competent to operate their assigned                     required knowledge or skill necessary to              crane type only (but not capacity),
                                                    equipment. To determine whether an                      operate the equipment.                                leaving 30,430 crane operators with no
                                                    operator is competent, the employer                        To calculate the estimated annual                  crane certification (117,130 total
                                                    must first perform an assessment. Only                  number of assessments, OSHA first                     operators—(15,000 operators with
                                                    if an operator fails the assessment must                estimated the current number of crane                 compliant certification + 71,700
                                                    the employer provide additional                         operators affected by the crane standard.             operators with certification for type
                                                    operator training required by                           The 2014 FEA estimated 117,130                        only)).
                                                    § 1427(k)(2)(ii).                                       operators and this PEA also uses this                    Assuming the turnover rate of 23%
                                                       However, in determining this cost,                   estimate. The Agency solicits comment                 and the failure rate of 15% for turnover-
                                                    OSHA made a distinction between a                       and additional data on this estimate.                 related assessments are distributed
                                                    nonemployee candidate for an operator                      For the purpose of determining the                 proportionally across the three types of
                                                    position and an operator who is                         number of assessments required each                   operators, then the number of
                                                    currently an employee. For an employer                  year under this proposal, OSHA is                     assessments for operators with
                                                    assessing a nonemployee candidate,                      relying on the 23% turnover rate for                  compliant certification is 3,968 ((0.23 +
                                                    OSHA assumed, based on common                           operators originally identified in the                (0.23 × 0.15)) × 15,000), the number of
                                                    industry practice, that the employer will               2008 PEA for the crane rule and used                  assessments for operators with type-
                                                    not hire a nonemployee candidate who                    most recently in the extension 2014 FEA               only certification is 18,965 ((0.23 + (0.23
                                                    fails the assessment. In the second
                                                                                                            (79 FR 57793). This turnover rate                     × 0.15)) × 71,700), and the number of
                                                                                                            includes all types of operators who                   assessments for operators with no
mstockstill on DSK30JT082PROD with PROPOSALS




                                                    situation, an employee qualified to
                                                    operate a crane fails a type and/or
                                                                                                            would require assessment: Operators                   certification is 8,049 ((0.23 + (0.23 ×
                                                    capacity assessment for a crane that
                                                                                                            moving between employers; operators                   0.15)) × 30,430).
                                                                                                            moving between different types and/or                    Under scenario 2 there is an extension
                                                    differs from the crane the employee
                                                                                                            capacities of equipment; and operators                and employers would not certify all of
                                                    currently operates. In this situation, the
                                                                                                            newly entering the occupation. OSHA                   their operators during CY 2017. OSHA
                                                      8 Calculations in the text may not exactly match      estimated that 26,940 assessments occur               estimated the CY 2017 assessment costs
                                                    due to rounding for presentation purposes. All final    each year based on turnover (i.e.,                    for scenario 2 by multiplying the
                                                    costs are exact, with no rounding.                      117,130 operators × 0.23 turnover rate).              assessment numbers for each type of


                                               VerDate Sep<11>2014   18:16 Aug 29, 2017   Jkt 241001   PO 00000   Frm 00010   Fmt 4702   Sfmt 4702   E:\FR\FM\30AUP1.SGM   30AUP1


                                                                        Federal Register / Vol. 82, No. 167 / Wednesday, August 30, 2017 / Proposed Rules                                                    41189

                                                    operator by the unit costs, resulting in                   Unit certification costs. Unit                     written test of 1.5 hours (4.0 hours ×
                                                    a cost of $6,624,861 (($79.27 × 3,968) +                certification costs vary across the three             $38.08) + $250)).9
                                                    ($198.17 × 18,965) + ($317.08 × 8,049)).                different types of operators in the                      For Scenario 1, § 1926.1427(b)(4)
                                                    Under scenario 1, the employer-                         operator pool (operators with compliant               specifies that a certificate is valid for
                                                    assessment requirement will be in effect                certification; operators with type-only               five years. OSHA estimates the
                                                    for all of CY 2017, while employers                     certification; and operators with no                  recertification unit cost would be the
                                                    would be gradually certifying all of their              certification). Among operators without               same as the assessment for an operator
                                                    operators during CY 2017. As a result,                  certification there is a further                      with compliant certification (i.e.,
                                                    the CY 2017 assessment costs identified                 distinction with different unit                       $79.27). In the 2014 extension, OSHA
                                                    for scenario 2 would decrease to                        certification costs: Experienced                      assumed that employers would pay a
                                                    $4,540,348 from $6,624,861 in scenario                  operators without certification and                   reduced fee for the recertification testing
                                                    1. This is because, as compared to                      operators who have only limited                       as opposed to the cost of a full first-time
                                                    scenario 2, there will be more operators                experience. Therefore, there are                      examination. Because OSHA lacked
                                                    who will have a compliant certificate,                  different unit certification costs for four           data on exactly how much the fee would
                                                    and therefore under the approach                        different types of operators. There also
                                                                                                                                                                  be reduced, it used the assessment cost
                                                    described above the employer                            are ongoing certification costs due to the
                                                                                                                                                                  as a proxy for the cost of recertification
                                                    assessment will require less time. This                 following two conditions: The
                                                                                                                                                                  (79 FR 57794). OSHA did not receive
                                                    reduction in the estimated time, and                    requirement for re-certification every
                                                                                                                                                                  any comment on that approach and is
                                                    therefore unit cost, lowers the overall                 five years and the need for some
                                                                                                                                                                  retaining it for this rulemaking.
                                                    assessment cost (see discussion in the                  certified operators to obtain additional
                                                    2014 deadline extension FEA for more                    certification to operate a crane that                    Finally, there will be certified
                                                    details about this methodology).                        differs by type and/or capacity from the              operators who must obtain certification
                                                                                                            crane on which they received their                    when assigned to a crane that differs by
                                                       Under both scenarios, once the 2010                                                                        type and/or capacity from the crane on
                                                                                                            current certification.
                                                    rule comes into effect the employer duty                   OSHA estimated these different unit                which they received their current
                                                    to assess the crane operator no longer is               certification costs using substantially               certification. This situation requires
                                                    in effect and so assessment costs are                   the same unit-cost assumptions used in                additional training, but less training
                                                    zero. Thus, in CY 2018, the assessment                  the FEA for the 2010 crane standard                   than required for a ‘‘new’’ operator with
                                                    costs under scenario 1 would be zero.                   (and exactly the same as the FEA of the               only limited experience. Accordingly,
                                                    Under scenario 2, the assessment costs                  2014 deadline extension.) In those                    OSHA estimated the cost for these
                                                    for CY 2018 would be the same as those                  previous FEAs, OSHA estimated that                    operators as one half of the cost of
                                                    under scenario 1 for CY 2017, because                   training and certification costs for an               training and certifying a new operator,
                                                    employers would be gradually certifying                 operator with only limited experience                 or $1,092.72 ($2,185.44/2).
                                                    operators over the course of that year.                 would consist of $1,500 for a 2-day                      Number of certifications. After
                                                    b. Annual Certification Costs                           course (including tests) and 18 hours of              establishing the unit certification costs,
                                                                                                            the operator’s time, for a total cost of              OSHA had to determine how many
                                                       OSHA estimated the annual                            $2,185.44 ($1,500 + (18 hours × $38.08))              certifications are necessary to ensure
                                                    certification costs using the three steps:              (see 75 FR 48096–48097). OSHA                         compliance with OSHA’s standard. In
                                                    first, determine the unit costs of meeting              continues to use a cost of $250 for the               doing so, the Agency uses the 5% new-
                                                    this requirement; second, determine the                 tests taken without any training (a                   hire estimate from the FEA discussed
                                                    number of affected operators; and,                      constant fixed fee irrespective of the                above to calculate the number of new
                                                    finally, multiply the unit costs of                     number of tests (75 FR 48096)), and the               operators; therefore, of the 117,130
                                                    meeting the requirement by the number                   same number of hours used for each test               operators affected by the standard, 5,857
                                                    of operators who must meet them. In                     that it used in the assessment                        (0.05 × 117,130) would be new operators
                                                    this PEA, following the same                            calculations provided above (which the                who would require two days for training
                                                    methodology as in the 2014 FEA, OSHA                    Agency based on certification test
                                                                                                                                                                  and certification each year. As
                                                    estimates that all certifications occur in              times). Accordingly, OSHA estimates
                                                                                                                                                                  discussed earlier, OSHA estimated that
                                                    the year prior to the deadline, hence in                the cost of a certificate compliant with
                                                                                                                                                                  71,700 operators have type-only
                                                    CY 2017 in scenario 1, while in CY2018                  the standard for an operator who has a
                                                                                                                                                                  certification, 15,000 operators have
                                                    for the one-year extension in scenario 2.               type-only certificate to be $345.20 (i.e.,
                                                                                                                                                                  certification that complies with the
                                                    As in the annual assessment-cost                        1 type/capacity-specific written test at
                                                                                                                                                                  existing crane standard, and the
                                                    analysis described above, OSHA                          1.5 hours and 1 practical test at 1.0
                                                                                                                                                                  remaining 24,574 operators (117,130 ¥
                                                    provides the calculations for CY 2017                   hours (2.5 hours total), plus the fixed
                                                                                                                                                                  (71,700 + 15,000 + 5,857)) are
                                                    under the existing 2017 deadline                        $250 fee for the tests (2.5 hours ×
                                                                                                                                                                  experienced operators without
                                                    (scenario 1), and then presents the                     $38.08) + $250). For an experienced
                                                                                                                                                                  certification.
                                                    certification costs for CY 2018 that                    operator with no certificate, the cost is
                                                    would apply if OSHA extends the                         $402.32 (i.e., the same as the cost for an              9 There are no certification costs for operators
                                                    certification requirement to November                   operator with a type-only certificate                 who already have a certificate that complies with
                                                    2018 (scenario 2).                                      plus the cost of an added general                     the crane standard.
mstockstill on DSK30JT082PROD with PROPOSALS




                                               VerDate Sep<11>2014   18:16 Aug 29, 2017   Jkt 241001   PO 00000   Frm 00011   Fmt 4702   Sfmt 4702   E:\FR\FM\30AUP1.SGM   30AUP1


                                                    41190                      Federal Register / Vol. 82, No. 167 / Wednesday, August 30, 2017 / Proposed Rules

                                                       Under scenario 1 (no extension), after                         positions that require one or more                      first year with certification costs. All
                                                    all operators attain certification by                             additional certifications to operate                    numbers are the same, just shifted
                                                    November 2017 there will still be                                 different types and/or capacities of                    forward a year, so the total cost for
                                                    ongoing certification costs each year.                            cranes. Of these 26,940 operators, OSHA                 having all crane operators certified in
                                                    With a constant total number of                                   estimates 5 of the total 23%, or 5,857                  CY 2018 is $47,436,368 (in 2018
                                                    operators, the same number of operators                           (0.05 × 117,130), will result from new                  dollars).
                                                    (5,857) will be leaving the profession                            operators entering the occupation each
                                                                                                                                                                              c. Year-by-Year Cost Differential for
                                                    each year and will not require                                    year; 9%, or 10,542 (0.09 × 117,130),
                                                    recertification when their current 5-year                                                                                 Extending the Certification Deadline to
                                                                                                                      will result from operators switching
                                                    certification ends. This leaves 111,274                                                                                   2018 and Preserving the Employer
                                                                                                                      employers but operating a crane of the
                                                    operators (117,130 ¥ 5,857) who will                                                                                      Assessment Duty Over That Same
                                                                                                                      same type and capacity as the crane
                                                    need such periodic recertification. If we                                                                                 Period
                                                                                                                      they operated previously (i.e., no
                                                    approximate the timing of requirements                            certification needed because                               The ultimate goal of this analysis is to
                                                    for recertification as distributed                                certification is portable in this case);                determine the annualized cost
                                                    proportionally across years, then 20% of                          and the remaining 9%, or 10,542,                        differential between scenario 1 (the
                                                    all operators with a 5-year certificate                           changing jobs or positions and requiring                status quo) and scenario 2 (the
                                                    (22,255 operators (.20 × 111,274)) would                          one or more additional certification to                 extensions of the certification date and
                                                    require recertification each year.                                operate a crane that differs by type and/               the employer assessment duty), so the
                                                       A final category of unit certification                         or capacity from the crane they operated                final part of this PEA compares the
                                                    costs involves the continuing need for                            previously. These percentages are                       yearly assessment and certification costs
                                                    certified operators to obtain further                             identical to those in the 2014 FEA.                     employers will incur under the two
                                                    certification when assigned to a crane                               Annualized certification costs. To                   scenarios. Because the assessment and
                                                    that differs by type and/or capacity from                         estimate the annual base cost for the                   certification costs change across years
                                                    the crane on which they received their                            first scenario, OSHA calculates the                     under each scenario, OSHA must
                                                    current certification. This situation                                                                                     compare the cost differential in each
                                                                                                                      certification costs for CY 2017 because
                                                    arises for both operators working for a                                                                                   year separately to determine the annual
                                                                                                                      that is the remaining period before the
                                                    single employer and operators switching                                                                                   cost savings for each year attributable to
                                                                                                                      existing deadline. The total cost for
                                                    employers.                                                                                                                scenario 2. OSHA calculated the present
                                                       The operators who will not need                                certifying all operators in CY 2017 in
                                                                                                                      accordance with the existing crane                      value of each year’s differential, which
                                                    multiple certifications in the post-
                                                                                                                      standard using the above unit-cost                      provides a consistent basis for
                                                    deadline period are operators with
                                                                                                                      estimates and numbers of operators is                   comparing the cost differentials over the
                                                    certification who move to a new
                                                    employer and operate a crane with the                             $47,436,368 ((71,700 operators with                     extended compliance period. OSHA
                                                    same type and capacity as the crane on                            type-only certification × $345.20) +                    then annualized the present value of
                                                    which they received certification while                           (24,574 experienced operators without                   each differential to identify an annual
                                                    with their previous employer. These                               certification × $402.32) + (5,857                       amount that accounts for the discounted
                                                    operators will not need multiple                                  operators with no experience or                         costs over this period. Table 1 below
                                                    certifications because operator                                   certification × $2,185.44)). The Agency,                summarizes these calculations.
                                                    certificates are portable across                                  following the previous FEAs (75 FR                         Table 1 shows that assessment and
                                                    employers, as specified by the crane                              48096 and 79 FR 57795), annualized                      certification costs are just shifted out
                                                    standard (see § 1427(b)(3)). For an                               this cost for the five-year period during               another year. As noted earlier, OSHA
                                                    employer looking to hire an operator for                          which operator certification remains                    estimated the overall cost differential
                                                    a specific crane, this option will                                effective, resulting in an annualized cost              between these two scenarios by
                                                    minimize cost, and OSHA assumes                                   of $7,563,216. In section c below, OSHA                 calculating the difference in total
                                                    employers will choose this option when                            uses this amount in calculating the                     (assessment and certification) costs each
                                                    possible.                                                         annual certification costs under scenario               year across the two scenarios. The net
                                                       After the certification deadline, OSHA                         1.                                                      employer cost savings in current dollars
                                                    estimates that each year 23% of the                                  To determine the annual amount used                  attributable to adopting the second
                                                    117,130 operators (26,940 = 0.23 ×                                in calculations for the second scenario                 scenario are, for each certification year:
                                                    117,130) will enter the workforce,                                (the extension to 2018), OSHA examines                  2017, $18.2 million; 2018, $8.7 million;
                                                    change employers, or take on new                                  the costs in CY 2017 because that is the                2019–2021, $0; 2022, ¥ $7.5 million.10

                                                                  TABLE 1—YEAR-BY-YEAR COST DIFFERENTIAL IF OSHA EXTENDS THE CERTIFICATION DEADLINE TO 2018
                                                                   Certification Year                              2017             2018               2019            2020            2021             2022             2023

                                                                                                                                         Operator Pool

                                                                                                                            Scenario 1 (no deadline extension)

                                                    operators with non-compliant certifi-
                                                      cation ................................................         71,700                  0              0               0                0                0                0
mstockstill on DSK30JT082PROD with PROPOSALS




                                                    operators with compliant certification ..                         15,000            111,274        111,274         111,274          111,274          111,274          111,274
                                                    operators with no certification ..............                    24,574                  0              0               0                0                0                0
                                                    new operators ......................................               5,857              5,857          5,857           5,857            5,857            5,857            5,857


                                                      10 A positive cost differential indicates cost                  lower cost of assessments versus certification. Then    annualized certification costs for scenario 2, while
                                                    savings and a negative cost differential indicates net            net costs in year 2022 are due to the last year of      this cost ends in year 2021 for scenario 1.
                                                    costs. Savings in the first two years are due to the



                                               VerDate Sep<11>2014        18:16 Aug 29, 2017        Jkt 241001   PO 00000   Frm 00012    Fmt 4702   Sfmt 4702   E:\FR\FM\30AUP1.SGM   30AUP1


                                                                               Federal Register / Vol. 82, No. 167 / Wednesday, August 30, 2017 / Proposed Rules                                                                           41191

                                                      TABLE 1—YEAR-BY-YEAR COST DIFFERENTIAL IF OSHA EXTENDS THE CERTIFICATION DEADLINE TO 2018—Continued
                                                                   Certification Year                              2017             2018                2019                   2020                   2021                2022            2023

                                                                                                                             Scenario 2 (deadline extension)

                                                    operators with non-compliant certifi-
                                                      cation ................................................         71,700            71,700                  0                     0                      0                  0                0
                                                    operators with compliant certification ..                         15,000            15,000            111,274               111,274                111,274            111,274          111,274
                                                    operators with no certification ..............                    24,574            24,574                  0                     0                      0                  0                0
                                                    new operators ......................................               5,857             5,857              5,857                 5,857                  5,857              5,857            5,857

                                                                                                                                             Costs

                                                                                                                            Scenario 1 (no deadline extension)

                                                    Total assessment costs .......................                 4,540,348               0                 0                      0                      0                     0             0
                                                    Total certification costs ........................            20,362,269      33,645,533        33,645,533             33,645,533             33,645,533            26,082,317    26,082,317
                                                        Total costs ....................................          24,902,617      33,645,533        33,645,533             33,645,533             33,645,533            26,082,317    26,082,317

                                                                                                                             Scenario 2 (deadline extension)

                                                    Total assessment costs .......................                 6,624,861       4,540,348                 0                      0                       0                    0             0
                                                    Total certification costs ........................                     0      20,362,269        33,645,533             33,645,533              33,645,533           33,645,533    26,082,317
                                                        Total costs ....................................           6,624,861      24,902,617        33,645,533             33,645,533              33,645,533           33,645,533    26,082,317
                                                             Cost Differential (Scenario 2
                                                                 ¥ Scenario 1) ....................              (18,277,756)    (8,742,916)       ....................   ....................   ....................    7,563,216   ....................
                                                       Source: OSHA, ORA Calculations.


                                                      OSHA next determined the present                                reported to use an average of 77                                    Exposure to Respirable Crystalline
                                                    value of these cost differentials between                         percent.12 13 Some overhead costs, such                             Silica, the overhead costs would
                                                    the two scenarios. OSHA calculated the                            as advertising and marketing, may be                                increase cost savings from $4.4 million
                                                    present value of future costs using two                           more closely correlated with output                                 to $4.5 million at a discount rate of 3
                                                    interest rates assumptions, 3 percent                             rather than with labor. Other overhead                              percent, an increase of 1.8 percent, and
                                                    and 7 percent, which follow the OMB                               costs vary with the number of new                                   would increase cost savings from $5.2
                                                    guidelines specified by Circular A–4. At                          employees. For example, rent or payroll                             million to $5.3 million at a discount rate
                                                    an interest rate of 3 percent, the present                        processing costs may change little with                             of 7 percent, an increase of 1.9 percent.
                                                    value of the cost differentials for CY                            the addition of 1 employee in a 500-
                                                                                                                      employee firm, but those costs may                                  d. Certification of No Significant Impact
                                                    2017 onwards results in an estimated
                                                                                                                      change substantially with the addition                              on a Substantial Number of Small
                                                    savings of $20.2 million ($21.3 million
                                                                                                                      of 100 employees. If an employer is able                            Entities
                                                    using the 7 percent rate). Finally,
                                                    annualizing the present value over five                           to rearrange current employees’ duties                                 Most employers will have savings
                                                    years results in an annualized cost                               to implement a rule, then the marginal                              resulting from the one-year extension,
                                                    differential (i.e., net employer cost                             share of overhead costs such as rent,                               particularly employers that planned to
                                                    savings) of $4.4 million per year ($5.2                           insurance, and major office equipment                               pay for operator certification in the year
                                                    million per year using the 7 percent                              (e.g., computers, printers, copiers)                                before the existing 2017 deadline. The
                                                    rate).                                                            would be very difficult to measure with                             only entities likely to see a net cost will
                                                      The Agency notes that it did not                                accuracy (e.g., computer use costs                                  be entities that planned to hire an
                                                    include an overhead labor cost in the                             associated with 2 hours for rule                                    operator with compliant certification
                                                    Preliminary Economic Analysis (PEA)                               familiarization by an existing                                      after November 10, 2017. Without the
                                                    for this rule. It is important to note that                       employee).                                                          one-year extension, these entities will
                                                    there is not one broadly accepted                                    If OSHA had included an overhead                                 have no separate assessment duty, but
                                                    overhead rate and that the use of                                 rate when estimating the marginal cost                              under the one-year extension they will
                                                    overhead to estimate the marginal costs                           of labor, without further analyzing an                              have the expense involved in assessing
                                                    of labor raises a number of issues that                           appropriate quantitative adjustment,                                operator competency. As noted above,
                                                    should be addressed before applying                               and adopted for these purposes an                                   however, OSHA estimated the
                                                    overhead costs to analyze the costs of                            overhead rate of 17 percent on base                                 maximum cost for such an assessment
                                                    any specific regulation. There are                                wages, as was done in a sensitivity                                 (for operators with no certification) to be
                                                    several approaches to look at the cost                            analysis in the FEA in support of                                   $317.08 per certified operator.
                                                    elements that fit the definition of                               OSHA’s 2016 final rule on Occupational                                 Small businesses will, by definition,
                                                    overhead and there are a range of                                                                                                     have few operators, and OSHA believes
                                                    overhead estimates currently used
                                                                                                                        12 Grant Thornton LLP, 2015 Government
                                                                                                                                                                                          the $317.08 cost will be well below 1%
mstockstill on DSK30JT082PROD with PROPOSALS




                                                                                                                      Contractor Survey. (https://www.grantthornton.                      of revenues, and well below 5% of
                                                    within the federal government—for                                 com/∼/media/content-page-files/public-sector/pdfs/
                                                    example, the Environmental Protection                             surveys/2015/Gov-Contractor-Survey.ashx.)                           profits, in any industry sector using
                                                    Agency has used 17 percent,11 and                                   13 For a further example of overhead cost                         cranes. OSHA does not consider such
                                                    government contractors have been                                  estimates, please see the Employee Benefits                         small amounts to represent a significant
                                                                                                                      Security Administration’s guidance at https://www.                  impact on small businesses in any
                                                                                                                      dol.gov/sites/default/files/ebsa/laws-and-
                                                      11 U.S. Environmental Protection Agency, ‘‘Wage                 regulations/rules-and-regulations/technical-
                                                                                                                                                                                          industry sector. Hence, OSHA certifies
                                                    Rates for Economic Analyses of the Toxics Release                 appendices/labor-cost-inputs-used-in-ebsa-opr-ria-                  this final rule will not have a significant
                                                    Inventory Program,’’ June 10, 2002.                               and-pra-burden-calculations-august-2016.pdf.                        impact on a substantial number of small


                                               VerDate Sep<11>2014        18:16 Aug 29, 2017        Jkt 241001   PO 00000   Frm 00013   Fmt 4702    Sfmt 4702       E:\FR\FM\30AUP1.SGM              30AUP1


                                                    41192               Federal Register / Vol. 82, No. 167 / Wednesday, August 30, 2017 / Proposed Rules

                                                    entities. After providing relatively                    must limit any such preemption to the                 Arizona, California, Hawaii, Indiana,
                                                    similar estimates in the 2014 FEA,                      extent possible.                                      Iowa, Kentucky, Maryland, Michigan,
                                                    OSHA made the same certification in                       Under Section 18 of the Occupational                Minnesota, Nevada, New Mexico, North
                                                    the 2014 FEA and did not receive any                    Safety and Health Act of 1970 (OSH Act;               Carolina, Oregon, Puerto Rico, South
                                                    adverse comment on either the                           29 U.S.C. 651 et seq.), Congress                      Carolina, Tennessee, Utah, Vermont,
                                                    certification or its underlying rationale.              expressly provides that states and U.S.               Virginia, Washington, and Wyoming.
                                                                                                            territories may adopt, with Federal                   Connecticut, Illinois, Maine, New
                                                    B. Paperwork Reduction Act                              approval, a plan for the development                  Jersey, New York, and the Virgin Islands
                                                      When OSHA issued the final rule on                    and enforcement of occupational safety                have OSHA-approved State Plans that
                                                    August 9, 2010, it submitted an                         and health standards. OSHA refers to                  apply to state and local government
                                                    Information Collection Request (ICR) to                 such states and territories as ‘‘State Plan           employees only.
                                                    the Office of Management and Budget                     States.’’ Occupational safety and health
                                                    (OMB) titled Cranes and Derricks in                     standards developed by State Plan                       The proposed amendments to OSHA’s
                                                    Construction (29 CFR part 1926, subpart                 States must be at least as effective in               crane standard preserve the status quo
                                                    CC).14 On November 1, 2010, OMB                         providing safe and healthful                          and would not impose any new
                                                    approved the ICR under OMB Control                      employment and places of employment                   requirements on employers.
                                                    Number 1218–0261, with an expiration                    as the Federal standards. 29 U.S.C. 667.              Accordingly, State Plans would not
                                                    date of November 30, 2013. On April,                    Subject to these requirements, State                  have to amend their standards to delay
                                                    25, 2017, OMB’s approval of the ICR                     Plan States are free to develop and                   the effective date of their operator
                                                    was extended to April 30, 2020.                         enforce under state law their own                     certification requirements, but they may
                                                      This proposed rule contains no                        requirements for safety and health                    do so if they so choose. However, if they
                                                    collection of information needing OMB                   standards.                                            choose to delay the effective date of
                                                    approval. OSHA welcomes commenters                        OSHA previously concluded from its                  their certification requirements, they
                                                    to submit their comments on this                        analysis that promulgation of subpart                 also would need to include a
                                                    determination to the rulemaking docket                  CC complies with Executive Order                      corresponding extension of the
                                                    (OSHA–2007–0066), along with their                      13132 (75 FR 48128–29). In states                     employer duty to assess and train
                                                    other comments on the proposed rule.                    without an OSHA-approved State Plan,                  operators that is equivalent to
                                                    For instructions on submitting these                    any standard developed from this                      § 1427(k)(2).
                                                    comments to the docket, see the sections                proposed rule would limit state policy
                                                                                                            options in the same manner as every                   E. Unfunded Mandates Reform Act
                                                    of this Federal Register notice titled
                                                    DATES and ADDRESSES.                                    standard promulgated by OSHA. For                       When OSHA issued the final rule for
                                                      OSHA notes that a Federal agency                      State Plan States, Section 18 of the OSH              cranes and derricks in construction, it
                                                    cannot conduct or sponsor a collection                  Act, as noted in the previous paragraph,              reviewed the rule according to the
                                                    of information unless OMB approves it                   permits State-Plan States to develop and              Unfunded Mandates Reform Act of 1995
                                                    under the Paperwork Reduction Act of                    enforce their own crane standards                     (UMRA; 2 U.S.C. 1501 et seq.) and
                                                    1995 (44 U.S.C. 3501 et seq.), and the                  provided these requirements are at least              Executive Order 13132 (64 FR 43255
                                                    agency displays a currently valid OMB                   as effective in providing safe and                    (Aug. 10, 1999). OSHA concluded that
                                                    control number. The public need not                     healthful employment and places of                    the final rule did not meet the definition
                                                    respond to a collection of information                  employment as the requirements                        of a ‘‘Federal intergovernmental
                                                    requirement unless the agency displays                  specified in this proposal.                           mandate’’ under the UMRA because
                                                    a currently valid OMB control number,                   D. State Plans                                        OSHA standards do not apply to state or
                                                    and, notwithstanding any other                                                                                local governments except in states that
                                                                                                               When Federal OSHA promulgates a
                                                    provision of law, no person shall be                                                                          voluntarily adopt State Plans. OSHA
                                                                                                            new standard or more stringent
                                                    subject to a penalty for failing to comply                                                                    further noted that the rule imposed
                                                                                                            amendment to an existing standard,
                                                    with a collection of information                                                                              costs of over $100 million per year on
                                                                                                            State Plans must amend their standards
                                                    requirement if the requirement does not                 to reflect the new standard or                        the private sector and, therefore,
                                                    display a currently valid OMB control                   amendment, or show OSHA why such                      required review under the UMRA for
                                                    number.                                                 action is unnecessary, e.g., because an               those costs, but that its final economic
                                                    C. Federalism                                           existing state standard covering this area            analysis met that requirement.
                                                                                                            is ‘‘at least as effective’’ as the new                 As discussed above in Section IV.A
                                                      OSHA reviewed this proposed rule in
                                                                                                            Federal standard or amendment (29 CFR                 (Preliminary Economic Analysis and
                                                    accordance with the Executive Order on
                                                                                                            1953.5(a)). The state standard must be at             Regulatory Flexibility Analysis) of this
                                                    Federalism (Executive Order 13132, 64
                                                                                                            least as effective as the final Federal               preamble, this proposed extension does
                                                    FR 43255, August 10, 1999), which
                                                                                                            rule. State Plans must adopt the Federal              not impose any costs on private-sector
                                                    requires that Federal agencies, to the
                                                                                                            standard or complete their own                        employers beyond those costs already
                                                    extent possible, refrain from limiting
                                                                                                            standard within six months of the                     identified in the final rule for cranes
                                                    state policy options, consult with states
                                                                                                            promulgation date of the final Federal                and derricks in construction and the
                                                    prior to taking any actions that would
                                                                                                            rule. When OSHA promulgates a new                     2014 extension. Because OSHA
                                                    restrict state policy options, and take
                                                                                                            standard or amendment that does not                   reviewed the total costs of this final rule
                                                    such actions only when clear
                                                                                                            impose additional or more stringent                   under the UMRA, no further review of
mstockstill on DSK30JT082PROD with PROPOSALS




                                                    constitutional authority exists and the
                                                                                                            requirements than an existing standard,               those costs is necessary. Therefore, for
                                                    problem is national in scope. Executive
                                                                                                            State Plans do not have to amend their                the purposes of the UMRA, OSHA
                                                    Order 13132 provides for preemption of
                                                                                                            standards, although OSHA may                          certifies that this proposed rule does not
                                                    state law only with the expressed
                                                                                                            encourage them to do so. The 21 states                mandate that state, local, or tribal
                                                    consent of Congress. Federal agencies
                                                                                                            and 1 U.S. territory with OSHA-                       governments adopt new, unfunded
                                                      14 The ICR is available at ID–0425 at                 approved occupational safety and health               regulatory obligations, or increase
                                                    www.regulations.gov and at www.reginfo.gov (OMB         plans covering private sector and state               expenditures by the private sector of
                                                    Control Number 1218–0261).                              and local government are: Alaska,                     more than $100 million in any year.


                                               VerDate Sep<11>2014   18:16 Aug 29, 2017   Jkt 241001   PO 00000   Frm 00014   Fmt 4702   Sfmt 4702   E:\FR\FM\30AUP1.SGM   30AUP1


                                                                        Federal Register / Vol. 82, No. 167 / Wednesday, August 30, 2017 / Proposed Rules                                                 41193

                                                    F. Consultation and Coordination With                   in the nation safe and healthful working                Signed at Washington, DC, on August 25,
                                                    Indian Tribal Governments                               conditions and to preserve our human                  2017.
                                                       OSHA reviewed this proposed rule in                  resources.’’ 29 U.S.C. 651(b). To achieve             Loren Sweatt,
                                                    accordance with Executive Order 13175                   this goal, Congress authorized the                    Deputy Assistant Secretary of Labor for
                                                    (65 FR 67249) and determined that it                    Secretary of Labor to promulgate and                  Occupational Safety and Health.
                                                    does not have ‘‘tribal implications’’ as                enforce occupational safety and health
                                                                                                            standards. 29 U.S.C. 654(b), 655(b). A                Amendments to Standards
                                                    defined in that order. As proposed, the
                                                    rule does not have substantial direct                   safety or health standard is a standard                 For the reasons stated in the preamble
                                                    effects on one or more Indian tribes, on                ‘‘which requires conditions, or the                   of this proposed rule, OSHA proposes to
                                                    the relationship between the Federal                    adoption or use of one or more                        amend 29 CFR part 1926 as follows:
                                                    government and Indian tribes, or on the                 practices, means, methods, operations,
                                                    distribution of power and                               or processes, reasonably necessary or                 PART 1926—[AMENDED]
                                                    responsibilities between the Federal                    appropriate to provide safe or healthful
                                                    government and Indian tribes.                           employment or places of employment.’’                 Subpart CC—Cranes and Derricks in
                                                    G. Consultation With the Advisory                       29 U.S.C. 652(8). A standard is                       Construction
                                                    Committee on Construction Safety and                    reasonably necessary or appropriate
                                                    Health                                                  within the meaning of Section 652(8)                  ■ 1. The authority citation for subpart
                                                                                                            when a significant risk of material harm              CC of 29 CFR part 1926 continues to
                                                       Under 29 CFR parts 1911 and 1912,
                                                    OSHA must consult with the Advisory                     exists in the workplace and the standard              read as follows:
                                                    Committee on Construction Safety and                    would substantially reduce or eliminate                 Authority: 40 U.S.C. 3701 et seq.; 29
                                                    Health (ACCSH or Committee),                            that workplace risk. See Industrial                   U.S.C. 653, 655, 657; and Secretary of Labor’s
                                                    established pursuant to Section 107 of                  Union Department, AFL–CIO v.                          Orders 5–2007 (72 FR 31159) or 1–2012 (77
                                                    the Contract Work Hours and Safety                      American Petroleum Institute, 448 U.S.                FR 3912), as applicable; and 29 CFR part
                                                    Standards Act (40 U.S.C. 3701 et seq.),                 607 (1980). In the crane rulemaking,                  1911.
                                                    in setting standards for construction                   OSHA made such a determination with
                                                                                                            respect to the use of cranes and derricks             ■ 2. Amend § 1926.1427 by revising
                                                    work. Specifically, § 1911.10(a) requires
                                                                                                            in construction (75 FR 47913, 47920–                  paragraph (k) to read as follows:
                                                    the Assistant Secretary to provide the
                                                    ACCSH with a draft proposed rule                        21). This proposed rule does not impose               § 1926.1427 Operator qualification and
                                                    (along with pertinent factual                           any new requirements on employers.                    certification.
                                                    information) and give the Committee an                  Therefore, this proposal does not
                                                                                                                                                                  *       *   *     *     *
                                                    opportunity to submit                                   require an additional significant risk
                                                    recommendations. See also § 1912.3(a)                   finding (see Edison Electric Institute v.                (k) Phase-in. (1) The provisions of this
                                                    (‘‘[W]henever occupational safety or                    OSHA, 849 F.2d 611, 620 (D.C. Cir.                    section became applicable on November
                                                    health standards for construction                       1988)).                                               8, 2010, except for paragraphs (a)(2) and
                                                    activities are proposed, the Assistant                                                                        (f), which are applicable November 10,
                                                                                                               In addition to materially reducing a
                                                    Secretary [for Occupational Safety and                                                                        2018.
                                                                                                            significant risk, a safety standard must
                                                    Health] shall consult the Advisory                                                                               (2) When § 1926.1427(a)(1) is not
                                                    Committee’’).                                           be technologically feasible. See UAW v.
                                                                                                            OSHA, 37 F.3d 665, 668 (D.C. Cir.                     applicable, all of the requirements in
                                                       On June 20, 2017, ACCSH
                                                                                                            1994). A standard is technologically                  paragraphs (k)(2)(i) and (ii) of this
                                                    unanimously recommended that OSHA
                                                    delay, for one additional year until                    feasible when the protective measures it              section apply until November 10, 2018.
                                                    November 10, 2018, the compliance                       requires already exist, when available                   (i) The employer must ensure that
                                                    date for the crane operator certification               technology can bring the protective                   operators of equipment covered by this
                                                    and extend the employer duty for the                    measures into existence, or when that                 standard are competent to operate the
                                                    same period. [Include citation to                       technology is reasonably likely to                    equipment safely.
                                                    ACCSH docket, OSHA–2017–0007–                           develop (see American Textile Mfrs.
                                                                                                                                                                     (ii) When an employee assigned to
                                                    ####]                                                   Institute v. OSHA, 452 U.S. 490, 513
                                                                                                                                                                  operate machinery does not have the
                                                                                                            (1981); American Iron and Steel
                                                    H. Executive Order 13771: Reducing                                                                            required knowledge or ability to operate
                                                                                                            Institute v. OSHA, 939 F.2d 975, 980
                                                    Regulation and Controlling Regulatory                                                                         the equipment safely, the employer
                                                                                                            (D.C. Cir. 1991)). In the 2010 Final
                                                    Costs                                                                                                         must train that employee prior to
                                                                                                            Economic Analysis for the crane
                                                      Consistent with EO 13771 (82 FR                       standard, OSHA found the standard to                  operating the equipment. The employer
                                                    9339, February 3, 2017), OSHA has                       be technologically feasible (75 FR                    must ensure that each operator is
                                                    estimated the annualized cost savings                   48079). OSHA also found the previous                  evaluated to confirm that he/she
                                                    over 10 years for this proposed rule to                 extension to be technologically feasible              understands the information provided
                                                    range from $4.4 million to $5.2 million,                (79 FR 57798). This proposed rule                     in the training.
                                                    depending on the discount rate. This                    would, therefore, be technologically                  [FR Doc. 2017–18441 Filed 8–29–17; 8:45 am]
                                                    proposed rule is expected to be an EO                   feasible as well because it would not                 BILLING CODE 4510–26–P
                                                    13771 deregulatory action. Details on                   require employers to implement any
                                                    the estimated cost savings of this
mstockstill on DSK30JT082PROD with PROPOSALS




                                                                                                            additional protective measures; it would
                                                    proposed rule can be found in the rule’s                simply extend the duration of existing
                                                    economic analysis.                                      requirements.
                                                    I. Legal Considerations
                                                                                                            List of Subjects in 29 CFR Part 1926
                                                       The purpose of the Occupational
                                                    Safety and Health Act of 1970 (29 U.S.C.                  Construction industry, Cranes,
                                                    651 et seq.) is ‘‘to assure so far as                   Derricks, Occupational safety and
                                                    possible every working man and woman                    health, Safety.


                                               VerDate Sep<11>2014   18:16 Aug 29, 2017   Jkt 241001   PO 00000   Frm 00015   Fmt 4702   Sfmt 9990   E:\FR\FM\30AUP1.SGM   30AUP1



Document Created: 2017-08-30 04:08:51
Document Modified: 2017-08-30 04:08:51
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionNotice of proposed rulemaking.
DatesSubmit comments to this proposed rule, including comments to the information collection (paperwork) determination (described under the section titled ``Agency Determinations''), hearing requests, and other information by September 29, 2017. All submissions must bear a postmark or provide other evidence of the submission date.
ContactGeneral information and press inquiries: Mr. Frank Meilinger, OSHA Office of Communications; telephone: (202) 693-1999; email: [email protected]
FR Citation82 FR 41184 
RIN Number1218-AC86
CFR AssociatedConstruction Industry; Cranes; Derricks; Occupational Safety and Health and Safety

2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR