82_FR_49944 82 FR 49737 - Recreational Boat Flotation Standards-Update of Outboard Engine Weight Test Requirements

82 FR 49737 - Recreational Boat Flotation Standards-Update of Outboard Engine Weight Test Requirements

DEPARTMENT OF HOMELAND SECURITY
Coast Guard

Federal Register Volume 82, Issue 207 (October 27, 2017)

Page Range49737-49745
FR Document2017-23384

The Coast Guard finalizes, without change, an interim rule to update the table of outboard engine weights used in calculating safe loading capacities and required amounts of flotation material. The engine weight table was last updated in 1984, and the Coast Guard Authorization Act of 2015 requires that the Coast Guard update the table to reflect a specific standard. Finalizing the interim rule will acknowledge the two public comments received, and contribute to public awareness of and certainty about the June 1, 2018, effective date.

Federal Register, Volume 82 Issue 207 (Friday, October 27, 2017)
[Federal Register Volume 82, Number 207 (Friday, October 27, 2017)]
[Rules and Regulations]
[Pages 49737-49745]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-23384]



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Rules and Regulations
                                                Federal Register
________________________________________________________________________

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Federal Register / Vol. 82, No. 207 / Friday, October 27, 2017 / 
Rules and Regulations

[[Page 49737]]



DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Part 183

[Docket No. USCG-2016-1012]
RIN 1625-AC37


Recreational Boat Flotation Standards--Update of Outboard Engine 
Weight Test Requirements

AGENCY: Coast Guard, DHS.

ACTION: Final rule.

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

SUMMARY: The Coast Guard finalizes, without change, an interim rule to 
update the table of outboard engine weights used in calculating safe 
loading capacities and required amounts of flotation material. The 
engine weight table was last updated in 1984, and the Coast Guard 
Authorization Act of 2015 requires that the Coast Guard update the 
table to reflect a specific standard. Finalizing the interim rule will 
acknowledge the two public comments received, and contribute to public 
awareness of and certainty about the June 1, 2018, effective date.

DATES: This final rule is effective on June 1, 2018.

ADDRESSES: Comments and materials received from the public, as well as 
documents mentioned in this preamble as being available in the docket, 
are part of docket USCG-2016-1012 and are available using the Federal 
eRulemaking Portal. You can find this docket on the Internet by going 
to http://www.regulations.gov, inserting USCG-2016-1012 in the 
``Search'' box, and then clicking ``Search.''

FOR FURTHER INFORMATION CONTACT: For information about this document 
call or email Mr. Jeffrey Ludwig, Coast Guard; telephone 202-372-1061, 
email [email protected].

SUPPLEMENTARY INFORMATION: 

Table of Contents for Preamble

I. Abbreviations
II. Basis and Purpose
III. Regulatory History
IV. Background
V. Discussion of the Rule
VI. Discussion of Comments and Changes
VII. Regulatory Analyses
    A. Regulatory Planning and Review
    B. Small Entities
    C. Assistance for Small Entities
    D. Collection of Information
    E. Federalism
    F. Unfunded Mandates Reform Act
    G. Taking of Private Property
    H. Civil Justice Reform
    I. Protection of Children
    J. Indian Tribal Governments
    K. Energy Effects
    L. Technical Standards
    M. Environment

I. Abbreviations

ABYC American Boat and Yacht Council
ABYC S-30 American Boat and Yacht Council S-30--Outboard Engines and 
Related Equipment Weights
CGAA Coast Guard Authorization Act of 2015 (Pub. L. 114-120, 130 
Stat. 27; Feb. 8, 2016)
CFR Code of Federal Regulations
DHS Department of Homeland Security
E.O. Executive Order
FR Federal Register
FRFA Final Regulatory Flexibility Analysis
MIC Manufacturer Identification Code
NAICS North American Industry Classification System
NBSAC National Boating Safety Advisory Council
NMMA National Marine Manufacturers Association
OMB Office of Management and Budget
Pub. L. Public Law
RA Regulatory analysis
Sec.  Section symbol
SBA Small Business Administration
U.S.C. United States Code

II. Basis and Purpose

    Section 308 of the Coast Guard Authorization Act of 2015 (Pub. L. 
114-120, 130 Stat. 27) (CGAA) requires the Coast Guard to issue 
regulations, not later than 180 days after enactment, updating Table 4 
of subpart H in Title 33 of the Code of Federal Regulations (CFR) part 
183 to reflect the American Boat and Yacht Council S-30--Outboard 
Engines and Related Equipment Weights (ABYC S-30) standard.
    Additionally, 46 U.S.C. 4302(b), which provides authority for 33 
CFR part 183, requires the effective date for rules issued under that 
provision be delayed at least 180 days after publication, but not more 
than 2 years for cases involving major product design, retooling, or 
changes in the manufacturing process. Section 4302(b) also requires 
consultation with the National Boating Safety Advisory Council 
(NBSAC).\1\ Because this rule amends regulations issued pursuant to 
section 4302, the 180-day delay is appropriate to provide manufacturers 
with time to adjust their operations to comply with the new standard. 
The Coast Guard has implemented that delay of effective date in this 
final rule.
---------------------------------------------------------------------------

    \1\ The NBSAC recommended to the Coast Guard in 2000 that the 
weight table be updated (Resolution number 2000-66-05), and 
discussed the replacement of Table 4 with the ABYC standard at their 
April 2016 meeting.
---------------------------------------------------------------------------

III. Regulatory History

    On April 5, 2017, the Coast Guard published an interim rule with 
request for comments (82 FR 16512). We received two public comments on 
the interim rule. No public meeting was requested, and none was held.

IV. Background

    Congress has authorized the Coast Guard to prescribe regulations 
establishing minimum safety standards for recreational vessels and 
associated equipment. In 1977, the Coast Guard established flotation 
requirements for boats less than 20 feet in length, and established a 
weight table (Table 4 of subpart H in 33 CFR part 183) used to assist 
the boat manufacturer in determining the amount of flotation to be 
included in a boat's design and construction.
    Table 4 was last updated in 1984, but the size and weight of 
outboard engines have evolved over the years to the point that Table 4 
no longer accurately represents the weights of outboard engines 
available on the market.
    The American Boat and Yacht Council (ABYC) is a non-profit 
organization that develops voluntary safety standards for the design, 
construction, maintenance, and repair of recreational boats. Among the 
voluntary safety standards that ABYC develops and updates on a regular 
basis is S-30--Outboard Engines and Related Equipment Weights (ABYC S-
30). This standard reflects the current state of marine outboard engine 
weights.

[[Page 49738]]

V. Discussion of the Rule

    This rulemaking adopts the current ABYC S-30 to replace Table 4 of 
subpart H in 33 CFR part 183. The current ABYC S-30 is dated July 2012, 
and was the standard in effect on the date of enactment of the CGAA.
    In the CFR, Table 4 applies to monohull outboard boats that are 
less than 20 feet in length, which includes recreational vessels as 
well as some commercial fishing vessels. Table 4 is also used 
indirectly for flotation requirements for survival craft covered by 46 
CFR part 25 (uninspected vessels), 46 CFR part 117 (small passenger 
vessels carrying more than 150 passengers), 46 CFR part 141 (towing 
vessels) and 46 CFR part 180 (small passenger vessels under 100 gross 
tons). Changing the figures in Table 4, as required by the CGAA, will 
require more flotation in each new boat, to support the weight of 
heavier engines.
    The interim rule removed Table 4 and replaced it with a new section 
(section 183.75) in subpart E of part 183. That section contains the 
table of the ABYC S-30 standard and its corresponding footnotes. The 
Coast Guard made minor edits to the footnotes developed by ABYC to 
accommodate the location of the table in the CFR and to reflect the 
removal of Table 4. We also made conforming changes to several sections 
that referenced Table 4.
    Finalizing the rule will acknowledge the public comments received, 
and contribute to public awareness of and certainty about the June 1, 
2018, effective date.

VI. Discussion of Comments and Changes

    The Coast Guard received two public comments in response to the 
interim rule. One commenter was supportive of the changes made in the 
interim rule. The other comment stated that in addition to small boat 
flotation, other factors that contribute to boat safety should be 
considered. The Coast Guard agrees that other factors can contribute to 
boat safety. However, they are outside of the scope of this rulemaking, 
in which we are focused on the requirements of the CGAA and the ABYC S-
30 standard. This final rule makes no changes to the interim rule.

VII. Regulatory Analyses

    We developed this rule after considering numerous statutes and 
Executive Orders (E.O.s) related to rulemaking. Below we summarize our 
analyses based on these statutes or E.O.s.

A. Regulatory Planning and Review

    Executive Orders 12866 (``Regulatory Planning and Review'') and 
13563 (``Improving Regulation and Regulatory Review'') direct agencies 
to assess the costs and benefits of available regulatory alternatives 
and, if regulation is necessary, to select regulatory approaches that 
maximize net benefits (including potential economic, environmental, 
public health and safety effects, distributive impacts, and equity). 
Executive Order 13563 emphasizes the importance of quantifying both 
costs and benefits, of reducing costs, of harmonizing rules, and of 
promoting flexibility. Executive Order 13771 (``Reducing Regulation and 
Controlling Regulatory Costs'') directs agencies to reduce regulation 
and control regulatory costs and provides that ``for every one new 
regulation issued, at least two prior regulations be identified for 
elimination, and that the cost of planned regulations be prudently 
managed and controlled through a budgeting process.''
    The Office of Management and Budget (OMB) has not designated this 
rule a significant regulatory action under section 3(f) of Executive 
Order 12866. Accordingly, the Office of Management and Budget (OMB) has 
not reviewed it. As this rule is not a significant regulatory action, 
this rule is exempt from the requirements of Executive Order 13771. See 
OMB's Memorandum ``Guidance Implementing Executive Order 13771, Titled 
`Reducing Regulation and Controlling Regulatory Costs''' (April 5, 
2017). A regulatory analysis (RA) follows. This RA is unchanged from 
the RA included in the interim rule (82 FR 16512; April 5, 2017).
    This RA provides an evaluation of the economic impacts associated 
with this final rule. The Coast Guard is issuing a final rule to 
implement section 308 of the CGAA. The CGAA mandates that the Coast 
Guard issue regulations to amend Table 4 of subpart H in 33 CFR part 
183 to reflect the standards in ABYC S-30. Consequently, 100 percent of 
the costs of this rule are due to a Congressional mandate and the Coast 
Guard has no discretion to adopt a different standard that would lower 
the cost of this rule. Changes in the design and construction of modern 
outboard engines necessitate a change in the table of outboard engine 
weights used in calculating safe loading capacities and required 
amounts of flotation material in the Safe Loading and Flotation 
Standards found in 33 CFR part 183, subparts G and H.
    Table 1 of this document provides a summary of the affected 
population, costs, and benefits of this rule.

                                Table 1--Summary of the Impacts of the Final Rule
----------------------------------------------------------------------------------------------------------------
                              Category                                                  Summary
----------------------------------------------------------------------------------------------------------------
Applicability.......................................................  Update Table 4 of subpart H in 33 CFR part
                                                                       183 with ABYC S-30.
Affected Population.................................................  1,427 manufacturers of monohull outboard
                                                                       boats of less than 20 feet in length.
Costs to Industry ($, 7% discount rate).............................  10-year: $6,624,488.
                                                                      Annualized: $943,178.
Unquantified Benefits...............................................  Creates uniformity by aligning all boats
                                                                       to the same standard.
                                                                      Brings those boats not currently in
                                                                       compliance with ABYC S-30 to a higher
                                                                       level of safety than the standard
                                                                       currently in regulation.
----------------------------------------------------------------------------------------------------------------

Affected Population
    This final rule adopts the current ABYC S-30 to replace Table 4 of 
subpart H in 33 CFR part 183. Table 4 applies to monohull outboard 
boats that are less than 20 feet in length, including recreational 
vessels and some commercial fishing vessels.
    Table 4 is also used indirectly for flotation requirements for 
survival craft covered by 46 CFR part 25 (uninspected vessels), 46 CFR 
part 117 (small passenger vessels carrying more than 150 passengers), 
46 CFR part 141 (towing vessels), and 46 CFR part 180 (small passenger 
vessels under 100 gross tons). Small passenger vessels are required to 
carry certain survival craft, depending on their route and 
construction, in order to have the capacity to evacuate a certain 
percentage of the number of people on board. These survival craft are 
generally life rafts or floats, which do not have engines and are not 
impacted by this final rule. However, small passenger

[[Page 49739]]

vessels could voluntarily carry a small boat that can be used to carry 
some of the passengers, thereby reducing the number of other survival 
craft they are required to carry (46 CFR 117.200(b) and 46 CFR 
180.200(b)). Because this is a voluntary option available for these 
vessels, we do not include them in our analysis. However, we do note 
that if the uninspected vessels, small passenger vessels carrying more 
than 150 passengers, towing vessels, or small passenger vessels under 
100 gross tons choose to carry a small boat on board that does not meet 
ABYC S-30 standard, they could be indirectly affected by this final 
rule. Because this final rule applies only to new boats manufactured 
after June 1, 2018, any small passenger vessels already carrying small 
boats subject to Table 4 of subpart H are not affected. If they choose 
to replace their small boat with a boat built after June 1, 2018, they 
may be indirectly affected if the manufacturer passes the costs of this 
final rule on to the consumers. We account for the direct costs to 
manufacturers in this analysis.
    The final rule affects manufacturers that produce monohull outboard 
boats that are less than 20 feet in length and that are not currently 
building boats to ABYC S-30 standard. The Coast Guard used the list of 
active Manufacturer Identification Code (MIC) holders, as required by 
33 CFR 181 subpart C, to determine the affected population. This list 
represents all recreational boat MICs that are currently active. We 
then removed any MICs that will not be affected by this rule from the 
list of manufacturers. This includes: (1) Manufacturers with multiple 
MICs; (2) MICs belonging to manufacturers that only build boats greater 
than 20 feet in length; (3) MICs belonging to manufacturers that do not 
build monohull outboard boats; and (4) MICs belonging to manufacturers 
that only produce boats exempted from this regulation by 33 CFR 
183.201(b), including sailboats, canoes, kayaks, inflatable boats, 
submersibles, surface effect vessels, amphibious vessels, and 
raceboats. We found there are no more than 1,519 affected manufacturers 
that produce monohull outboard boats that are less than 20 feet in 
length.
    Some of these 1,519 monohull manufacturers are currently in 
compliance with ABYC S-30 standard, and therefore will not incur 
additional costs because of this rule. The National Marine 
Manufacturers Association (NMMA) requires its members to build boats to 
the ABYC standard.\2\ These NMMA builders produce about 85 percent of 
the recreational boats built each year.\3\ We found 92 monohull 
manufacturers that are currently NMMA members and therefore we assume 
they are in compliance. We assume the remaining 1,427 monohull 
manufacturers are not compliant with the current voluntary standard and 
will be affected by this rule.
---------------------------------------------------------------------------

    \2\ See Michael Vatalaro, What ``NMMA-Certified'' Really Means, 
BoatUS, Feb. 2014, http://www.boatus.com/magazine/2014/february/what-nnma-certified-means.asp.
    \3\ Id.
---------------------------------------------------------------------------

Costs to Industry
    This final rule adopts the current ABYC S-30, to replace Table 4 of 
subpart H. This change will increase costs to 1,427 monohull 
manufacturers that are assumed to be not in compliance. The increase in 
the weight table figures will require an additional 1 to 2 cubic feet 
of flotation to be added to each boat manufactured after the effective 
date of June 1, 2018. We estimate the foam for the additional flotation 
will cost an average of $10 per boat.\4\ Some manufacturers may need to 
make minor adjustments such as enclosing an aft seat and adding foam 
under the seat to accommodate the additional foam in the boats. 
Therefore, Coast Guard uses an estimate of $50 per boat to account for 
the foam and any minor adjustments that may be necessary.\5\ 
Manufacturers could incur costs related to determining where to put the 
additional flotation on a vessel, but we believe redesign costs would 
not be needed as the additional flotation material is minimal and the 
placement of the material is fairly standard. The manufacturers are 
already required to add flotation to boats, so there will be no costs 
for new equipment, facilities, or retrofitting of facilities.
---------------------------------------------------------------------------

    \4\ The $10 estimate is based on 2 LB Density Urethane Foam 
estimates from US Composites (http://www.uscomposites.com/foam.html) 
and conversations with manufacturers. Foam prices vary based on the 
size of the kits. The cost of kits range from a 2 cubic foot kit 
cost of $22.50 ($11.25 per cubic foot) to $264 for a 40 cubic foot 
kit ($6.60 per cubic foot). Conversations with manufacturers 
confirmed $10 is a reasonable average estimate for adding 1 to 2 
cubic feet of additional flotation, that takes into account the 
varying costs based on the size of kits purchased and that 
manufacturers may pay less than the listed prices based on their 
purchasing agreements with the suppliers.
    \5\ Based on discussions with manufacturers, the additional $40 
estimate is to cover the cost of enclosing a rear seat to add 
flotation foam under it or to add small chambers, especially on open 
aluminum boats, to accommodate the additional flotation foam.
---------------------------------------------------------------------------

    To estimate the total cost to industry, we then estimated the total 
number of outboard boats less than 20 feet in length manufactured per 
year by the monohull manufacturers that are not in compliance. The 
Coast Guard used data from the NMMA's 2015 Recreational Boating 
Statistical Abstract \6\ to estimate the total affected outboard boats. 
The NMMA breaks down outboard boat sales by two hull materials: 
Fiberglass and aluminum. The NMMA estimates that in 2015, 51,300 
fiberglass outboard boats and 104,500 aluminum outboard boats were 
sold. Of these boats sold, 42.7 percent of the fiberglass outboard 
boats and 60.4 percent of the aluminum outboard boats were less than 20 
feet in length. Multiplying the percentage market share of boats less 
than 20 feet by the total sales of boats by material, we found there 
were 21,905 fiberglass boats and 63,118 aluminum outboard boats less 
than 20 feet sold in 2015 (see Table 2).
---------------------------------------------------------------------------

    \6\ A summary of the NMMA abstract is available at https://www.nmma.org/statistics/publications/statistical-abstract. The full 
report is available for purchase through NMMA. The Coast Guard used 
data from Powerboat Sales Trends, Table 1: Outboard boats: Estimated 
sales by hull market; Table 2: Fiberglass outboard boats: Estimated 
market share by length; and Table 3: Aluminum outboard boats: 
Estimated market share by length.

[[Page 49740]]



                    Table 2--Total Sales and Market Share of Outboard Boats by Material Type
----------------------------------------------------------------------------------------------------------------
                                                                                    Percentage
                                                                                   market share   Total outboard
                    Outboard boat by material                        Estimated    outboard boats    boats less
                                                                    total sales    less than 20    than 20 feet
                                                                                       feet        sold in 2015
----------------------------------------------------------------------------------------------------------------
Fiberglass......................................................          51,300            42.7          21,905
Aluminum........................................................         104,500            60.4          63,118
                                                                 -----------------------------------------------
    Total.......................................................         155,800  ..............          85,023
----------------------------------------------------------------------------------------------------------------

    The total 85,023 outboard boats less than 20 feet that were sold in 
2015 were produced by a mix of manufacturers that are already in 
compliance with the ABYC S-30 standard and manufacturers that are not 
in compliance and will be impacted by this rule. The NMMA estimates 
that around 85 percent of the boats sold in the United States are 
already in compliance with the ABYC S-30 standard. Therefore, the Coast 
Guard estimates 15 percent of the total outboard boats less than 20 
feet sold were produced by manufacturers not in compliance with the 
ABYC standard. These 12,753 boats (15 percent of the 85,023 outboard 
boats less than 20 feet, rounded) will require $50 of additional 
flotation materials to align with the new standard.
    To estimate the affected outboard boats over the 10-year period of 
analysis, we used NMMA data to forecast future boat building 
production.\7\ The NMMA anticipates annual production will rise through 
at least 2018 before leveling off into at least early 2019. The NMMA 
does not have estimates for production past 2019. Since the NMMA 
anticipates production will plateau once it reaches the levels of 
production estimated in 2019, the Coast Guard assumes production will 
hold at 2019 levels. Production could decrease or increase, resulting 
in higher or lower industry costs, but for the purposes of this 
analysis we assume production remains constant past 2019. Table 3 shows 
our baseline affected population, the forecasted percentage increases 
over the previous year estimated by NMMA, and the resulting number of 
affected outboard boats.\8\
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    \7\ Production forecasts are internal NMMA estimates that were 
provided to the Coast Guard on 9/7/2016.
    \8\ Forecasted percentages for 2016 and 2019 were given in NMMA 
data. Forecasted percentages for years 2017 and 2018 were calculated 
from NMMA's forecasted annual production index. For 2017, the 
affected outboard boats manufactured annually are calculated as [1 + 
((170.1-147.6)/147.6)] * 14,232 = 16,402, rounded. For 2018, the 
affected outboard boats manufactured annually are calculated as [1 + 
(185.8-170.1)/170.1] * 16,402, rounded.

               Table 3--Forecasted Affected Outboard Boats
------------------------------------------------------------------------
                                            Forecasted       Affected
                                            percentage    outboard boats
                  Year                     increase over   manufactured
                                           previous year     annually
------------------------------------------------------------------------
2015....................................  ..............          12,753
2016....................................            11.6          14,232
2017....................................            15.2          16,402
2018....................................             9.2          17,916
2019....................................             6.1          19,009
2020+...................................             0.0          19,009
------------------------------------------------------------------------

    As this final rule will be effective June 1, 2018, any outboard 
boats manufactured after this date will need to be in compliance with 
ABYC S-30 standard. The Coast Guard anticipates most manufacturers will 
begin making the necessary changes at the beginning of 2018. All 
manufacturers will be in compliance by June 1, 2018 of Year 1, which 
corresponds with the 2018 estimated affected outboard boats in Table 3. 
We estimate there will be 17,916 affected outboard boats in Year 1 and 
19,009 affected outboard boats in Years 2 through 10. Table 4 
summarizes the estimated affected population of outboard boats that we 
used to estimate the 10-year costs of this final rule.

         Table 4--Ten-Year Projection of Affected Outboard Boats
------------------------------------------------------------------------
                                                             Affected
                          Year                            outboard boats
------------------------------------------------------------------------
1.......................................................          17,916
2.......................................................          19,009
3.......................................................          19,009
4.......................................................          19,009
5.......................................................          19,009
6.......................................................          19,009
7.......................................................          19,009
8.......................................................          19,009
9.......................................................          19,009
10......................................................          19,009
------------------------------------------------------------------------

    We then multiplied the projected number of affected outboard boats 
each year in Table 4 by the estimated cost per boat of $50. Table 5 
shows the total costs of this final rule on an undiscounted basis, and 
discounted at 7 and 3 percent.

                                       Table 5--Total Costs of Final Rule
----------------------------------------------------------------------------------------------------------------
                                                                       Total             Total, discounted
                              Year                                 undiscounted  -------------------------------
                                                                       costs            7%              3%
----------------------------------------------------------------------------------------------------------------
1...............................................................        $895,800        $837,196        $869,709
2...............................................................         950,450         830,160         895,890
3...............................................................         950,450         775,850         869,796
4...............................................................         950,450         725,094         844,463
5...............................................................         950,450         677,658         819,867
6...............................................................         950,450         633,325         795,987
7...............................................................         950,450         591,892         772,803
8...............................................................         950,450         553,171         750,294
9...............................................................         950,450         516,982         728,441
10..............................................................         950,450         483,161         707,224
                                                                 -----------------------------------------------

[[Page 49741]]

 
    Total.......................................................       9,449,850       6,624,488       8,054,473
                                                                 -----------------------------------------------
        Annualized..............................................  ..............         943,178         944,230
----------------------------------------------------------------------------------------------------------------

    The total 10-year undiscounted cost of this final rule is 
$9,449,850. The total 10-year discounted cost of this final rule is 
$6,624,488 and the annualized cost is $943,178, both discounted at 7 
percent. The manufacturers of outboard boats less than 20 feet in 
length not in compliance with ABYC S-30 standard will bear these costs. 
However, it is possible that manufacturers may pass these costs onto 
the recreational boat owners by incorporating the additional costs of 
this final rule into the sales price. The sale price of the affected 
boats can range from $3,000 through $50,000. If we use an average of 
$26,500 per boat, the $50 average cost per boat represents 0.2 percent 
of the sales price. However, 85 percent of the boats sold in the United 
States are already in compliance and include this cost of floatation in 
the sales prices.
Benefits
    This rule does not provide any quantitative benefits. However, it 
does have qualitative benefits. This rule creates uniformity by 
aligning all boats to the same standard. The ABYC S-30 provides a 
higher level of safety than that provided by the standard currently in 
the regulation. Requiring all boats less than 20 feet in length that 
currently do not meet ABYC S-30 standard weights to comply with that 
standard will improve the buoyancy of these boats, and therefore, 
improve their operational safety.

B. Small Entities

    In accordance with the Regulatory Flexibility Act (5 U.S.C. 601-
612), the Coast Guard prepared this Final Regulatory Flexibility 
Analysis (FRFA) that examines the impacts of the final rule on small 
entities (5 U.S.C. 601 et seq.). We recognize that a FRFA is not 
required for a final rule that was not preceded by a general notice of 
proposed rulemaking. We are including an analysis of the final rule 
requirements on small entities for informational purposes.
    A small entity may be: A small independent business, defined as 
independently owned and operated, is organized for profit, and is not 
dominant in its field per the Small Business Act (5 U.S.C. 632); a 
small not-for-profit organization (any not-for-profit enterprise which 
is independently owned and operated and is not dominant in its field); 
or a small governmental jurisdiction (locality with fewer than 50,000 
people) per the Regulatory Flexibility Act (RFA), 5 U.S.C. 601-612.
    A FRFA addresses the following:
    (1) A statement of the need for, and objectives of, the rule;
    (2) A statement of the significant issues raised by the public 
comments in response to the initial regulatory flexibility analysis, a 
statement of the assessment of the agency of such issues, and a 
statement of any changes made in the interim final rule as a result of 
such comments;
    (3) The response of the agency to any comments filed by the Chief 
Counsel for Advocacy of the Small Business Administration in response 
to the interim final rule, and a detailed statement of any change made 
to the interim final rule in the final rule as a result of the 
comments;
    (4) A description of and an estimate of the number of small 
entities to which the rule will apply or an explanation of why no such 
estimate is available;
    (5) A description of the projected reporting, recordkeeping and 
other compliance requirements of the rule, including an estimate of the 
classes of small entities which will be subject to the requirement and 
the type of professional skills necessary for preparation of the report 
or record; and
    (6) A description of the steps the agency has taken to minimize the 
significant economic impact on small entities consistent with the 
stated objectives of applicable statutes, including a statement of the 
factual, policy, and legal reasons for selecting the alternative 
adopted in the final rule and why each one of the other significant 
alternatives to the rule considered by the agency which affect the 
impact on small entities was rejected.
    1. A statement of the need for, and objectives of, the rule.
    Section 308 of the CGAA requires the Coast Guard to issue 
regulations updating Table 4 of subpart H in Title 33 CFR part 183 to 
reflect the ABYC S-30 standard.
    Congress has authorized the Coast Guard to prescribe regulations 
establishing minimum safety standards for recreational vessels and 
associated equipment. In 1977, the Coast Guard established flotation 
requirements for boats less than 20 feet in length, and established a 
weight table (Table 4 of subpart H in 33 CFR part 183) used to assist 
the boat manufacturer in determining the amount of flotation to be 
included in a boat's design and construction.
    Table 4 was last updated in 1984, but the size and weight of 
outboard engines has evolved over the years to the point where Table 4 
no longer accurately represents the weights of outboard engines 
available on the market. Changes in the design and construction of 
modern outboard engines necessitate a change in the table of outboard 
engine weights used in calculating safe loading capacities and required 
amounts of flotation material in the Safe Loading and Flotation 
Standards found in 33 CFR part 183, subparts G and H.
    2. A statement of the significant issues raised by the public 
comments in response to the initial regulatory flexibility analysis, a 
statement of the assessment of the agency of such issues, and a 
statement of any changes made in the interim final rule as a result of 
the comments.
    The Coast Guard did not receive any comments on the initial 
regulatory flexibility analysis.
    3. The response of the agency to any comments filed by the Chief 
Counsel for Advocacy of the Small Business Administration in response 
to the interim final rule, and a detailed statement of any change made 
to the interim final rule in the final rule as a result of the 
comments.
    The Coast Guard did not receive any comments from the Small 
Business Administration's (SBA) Office of Advocacy regarding the impact 
that the interim final rule would have on small entities.
    4. A description of and an estimate of the number of small entities 
to which the rule will apply or an explanation of why no such estimate 
is available.

[[Page 49742]]

    This final rule affects manufacturers that produce monohull 
outboard boats that are less than 20 feet in length that are not 
currently building boats to ABYC S-30 standard.
    Based on Coast Guard's list of active MIC holders, we estimate this 
final rule will affect 1,427 U.S. companies. We researched the number 
of employees and revenue of these companies using proprietary and 
public business databases.\9\ We then measured company size data using 
the SBA's business size standards to assess how many companies in this 
industry may be small entities.\10\ The SBA provides business size 
standards for all sectors of the North American Industry Classification 
System (NAICS).\11\
---------------------------------------------------------------------------

    \9\ Data sources: ReferenceUSA (www.referenceusagov.com) and 
Manta (www.manta.com).
    \10\ ``Small entities'' include small businesses that meet the 
Small Business Administration size standard for small business 
concerns at 13 CFR 121.201, small governmental jurisdictions with a 
population of less than 50,000, and small organizations that are 
independently owned not-for-profit enterprises and which are not 
dominant in their field. See 5 U.S.C. 601(3)-(5).
    \11\ SBA size standards are matched to NAICS, effective February 
26, 2016. See Contracting: Table of Small Business Size Standards, 
https://www.sba.gov/content/small-business-size-standards.
---------------------------------------------------------------------------

    Using a random sample of companies out of the total population of 
1,427 affected U.S. companies, we researched 749 companies and found 
company-specific revenue and employment information and data on 388 of 
them.\12\ We assumed that the remaining 361 companies (for which the 
revenue and employment information was unavailable) are small entities 
for the purpose of this analysis. Of the 388 companies for which 
revenue and employment information was available, we found three 
entities that exceeded the small entity thresholds for their relevant 
NAICS code. The remaining 385 companies are small entities as defined 
by the SBA thresholds. Adding these small entities to the companies 
without revenue and employment information, we estimate a total of 746 
of the companies are small entities. Using the results of this random 
sample, we calculated the fraction of small entities by dividing the 
total small entities by the sample size. Therefore, we estimate that 
99.6 percent of all monohull companies not currently building to ABYC 
S-30 standard fall below the threshold for small businesses. Table 6 
summarizes the findings of our small entity threshold analysis.
---------------------------------------------------------------------------

    \12\ Using a 95 percent confidence level, a sample size of 385 
companies is sufficient. Our research started with a random sample 
of 749 companies that yielded 388 entities for which requisite 
information was found.

       Table 6--Number of Companies and Small Entities Researched
------------------------------------------------------------------------
                                                            Number of
                       Category                             companies
------------------------------------------------------------------------
(a) Sample Size.......................................               749
(b) Without Revenue or Employment Data................               361
(c ) With Revenue or Employee Data....................               388
(d) Exceeded Small Entity Threshold...................                 3
(e) Below the Small Business Threshold................               385
Total Small Entities, (b) + (e).......................               746
Total, (a)............................................               749
Fraction Small Entities...............................             99.6%
------------------------------------------------------------------------

    Our analysis of the available company information revealed 64 
primary NAICS codes. Table 7 displays the NAICS codes of the small 
entities found in our sample.

                                Table 7--NAICS Codes of Identified Small Entities
----------------------------------------------------------------------------------------------------------------
                                                         Count of                                    SBA size
                Title                   NAICS code       companies      SBA size  standard type      threshold
----------------------------------------------------------------------------------------------------------------
Boat Building.......................          336612             151  Employees.................           1,000
Boat Dealers........................          441222              56  Revenue...................     $32,500,000
Other Personal and Household Goods            811490              32  Revenue...................      $7,500,000
 Repair and Maintenance.
Marinas.............................          713930              28  Revenue...................      $7,500,000
All Other Support Services..........          561990              14  Revenue...................     $11,000,000
Mineral Wool Manufacturing..........          327993              11  Employees.................           1,500
Commercial and Industrial Machinery           811310               8  Revenue...................      $7,500,000
 and Equipment (except Automotive
 and Electronic) Repair and
 Maintenance.
All Other Miscellaneous                       339999               5  Employees.................             500
 Manufacturing.
Fabricated Structural Metal                   332312               4  Employees.................             500
 Manufacturing.
New Single-family Housing                     236115               3  Revenue...................     $36,500,000
 Construction (Except For-Sale
 Builders).
All Other Plastics Product                    326199               3  Employees.................             750
 Manufacturing.
Sporting and Recreational Goods and           423910               3  Employees.................             100
 Supplies Merchant Wholesalers.
Other Miscellaneous Durable Goods             423990               3  Employees.................             100
 Merchant Wholesalers.
Other Building Material Dealers.....          444190               3  Revenue...................     $20,500,000
Engineering Services................          541330               3  Revenue...................     $15,000,000
All Other Business Support Services.          561499               3  Revenue...................     $15,000,000
Site Preparation Contractors........          238910               2  Revenue...................     $15,000,000
Sheet Metal Work Manufacturing......          332322               2  Employees.................             500
Special Die and Tool, Die Set, Jig            333514               2  Employees.................             500
 and Fixture Manufacturing.
Travel Trailer and Camper                     336214               2  Employees.................           1,000
 Manufacturing.
Wholesale Trade Agents and Brokers..          425120               2  Employees.................             100
All Other Miscellaneous Store                 453998               2  Revenue...................      $7,500,000
 Retailers (except Tobacco Stores).
Museums.............................          712110               2  Revenue...................     $27,500,000
Hunting and Trapping................          114210               1  Revenue...................      $5,500,000
Water Supply and Irrigation Systems.          221310               1  Revenue...................     $27,500,000

[[Page 49743]]

 
Commercial and Institutional                  236220               1  Revenue...................     $36,500,000
 Building Construction.
Other Heavy and Civil Engineering             237990               1  Revenue...................     $36,500,000
 Construction.
Plumbing, Heating, and Air-                   238220               1  Revenue...................     $15,000,000
 Conditioning Contractors.
All Other Specialty Trade                     238990               1  Revenue...................     $15,000,000
 Contractors.
Fabric Coating Mills................          313320               1  Employees.................           1,000
Other Millwork (including Flooring).          321918               1  Employees.................             500
Plastics Material and Resin                   325211               1  Employees.................           1,250
 Manufacturing.
Fertilizer (Mixing Only)                      325314               1  Employees.................             500
 Manufacturing.
All Other Miscellaneous Nonmetallic           327999               1  Employees.................             500
 Mineral Product Manufacturing.
Alumina Refining and Primary                  331313               1  Employees.................           1,000
 Aluminum Production.
Aluminum Sheet, Plate and Foil                331315               1  Employees.................           1,250
 Manufacturing.
Other Aluminum Rolling, Drawing, and          331318               1  Employees.................             750
 Extruding.
Plate Work Manufacturing............          332313               1  Employees.................             750
Farm Machinery and Equipment                  333111               1  Employees.................           1,250
 Manufacturing.
Overhead Traveling Crane, Hoist and           333923               1  Employees.................           1,250
 Monorail System Manufacturing.
All Other Miscellaneous General               333999               1  Employees.................             500
 Purpose Machinery Manufacturing.
Other Communications Equipment                334290               1  Employees.................             750
 Manufacturing.
Truck Trailer Manufacturing.........          336212               1  Employees.................           1,000
Motor Vehicle Steering and                    336330               1  Employees.................           1,000
 Suspension Components (except
 Spring) Manufacturing.
Ship Building and Repairing.........          336611               1  Employees.................           1,250
All Other Transportation Equipment            336999               1  Employees.................           1,000
 Manufacturing.
Sporting and Athletic Goods                   339920               1  Employees.................             750
 Manufacturing.
Hobby, Toy and Game Stores..........          451120               1  Revenue...................     $27,500,000
Scenic and Sightseeing                        487210               1  Revenue...................      $7,500,000
 Transportation, Water.
Navigational Services to Shipping...          488330               1  Revenue...................     $38,500,000
Miscellaneous Intermediation........          523910               1  Revenue...................     $38,500,000
Recreational Goods Rental...........          532292               1  Revenue...................      $7,500,000
Landscape Architectural Services....          541320               1  Revenue...................      $7,500,000
Industrial Design Services..........          541420               1  Revenue...................      $7,500,000
Graphic Design Services.............          541430               1  Revenue...................      $7,500,000
Administrative Management and                 541611               1  Revenue...................     $15,000,000
 General Management Consulting
 Services.
Other Management Consulting Services          541618               1  Revenue...................     $15,000,000
All Other Professional, Scientific            541990               1  Revenue...................     $15,000,000
 and Technical Services.
Landscaping Services................          561730               1  Revenue...................      $7,500,000
All Other Miscellaneous Schools and           611699               1  Revenue...................     $11,000,000
 Instruction.
Emergency and Other Relief Services.          624230               1  Revenue...................     $32,500,000
Fitness and Recreational Sports               713940               1  Revenue...................      $7,500,000
 Centers.
RV (Recreational Vehicle) Parks and           721211               1  Revenue...................      $7,500,000
 Campgrounds.
Civic and Social Organizations......          813410               1  Revenue...................      $7,500,000
----------------------------------------------------------------------------------------------------------------

    Revenue Impacts of the Final Rule. To determine the impacts of the 
final rule on small monohull manufacturers, we used information on 
revenues or employee size as available on business directory Web 
sites.\13\
---------------------------------------------------------------------------

    \13\ As indicated by either the revenue or employee data for 
businesses, we use ReferenceUSA (www.referenceusagov.com) and Manta 
(www.manta.com).
---------------------------------------------------------------------------

    As discussed in the ``Cost to Industry'' section of the RA, we 
estimate that there are 17,916 outboard boats less than 20 feet 
produced by manufacturers annually that will require additional 
flotation materials to align with this final rule in Year 1. Coast 
Guard does not have information on the market share of the small entity 
manufacturers and the number of boats they produce each year. 
Therefore, we assume each manufacturer consistently produces the same 
number of boats each year and that each manufacturer has the same 
market share. With 1,427 affected U.S. companies, this is an average of 
about 13 outboard boats per manufacturer (rounded). In Years 2 through 
10, the Coast Guard estimates there are 19,009 outboard boats affected, 
at an average of about 13 outboard boats per manufacturer (19,009 boats 
divided by 1,427 manufacturers, rounded). At an estimated cost of $50 
per outboard boat, the average total cost per manufacturer is $650 in 
Years 1 through 10. Table 8 summarizes the average costs per 
manufacturer of the final rule by year.

                                                   Table 8--Final Rule Average Costs per Manufacturer
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                  Average outboard
                         Year(s)                           Affected outboard  Manufacturers not  boats produced by  Cost per outboard   Average cost per
                                                                 boats          in compliance       manufacturer          boats           manufacturer
--------------------------------------------------------------------------------------------------------------------------------------------------------
1........................................................             17,916              1,427                 13                $50               $650
2-10.....................................................             19,009              1,427                 13                 50                650
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Next, we compared the average cost per manufacturer to the revenue 
of the manufacturers in our sample. As shown in Table 6, we found 
revenue or company data for 385 small entities. We found revenue 
information for 371 of these small entities, and we were only able to 
find employee data for 14 entities. Therefore, we could not compare the 
cost per manufacturer to the revenues for the 14 entities with only 
employee data. Table 9 summarizes the results. In Years 1 through 10, 
94.6 percent of the affected manufacturers will incur a cost of 1

[[Page 49744]]

percent or less of revenue in any given year, while 0.3 percent will 
incur a cost impact of greater than 10 percent of revenue.

                   Table 9--Final Rule Revenue Impacts
------------------------------------------------------------------------
                                        Number of          Percent of
           Impact range                  affected           affected
                                      manufacturers      manufacturers
------------------------------------------------------------------------
0% < Impact <= 1%.................                352               94.9
1% < Impact <= 3%.................                 17                4.6
3% < Impact <= 5%.................                  1                0.3
5% < Impact <= 10%................                  0                  0
>= 10%............................                  1                0.3
                                   -------------------------------------
    Total.........................                371                100
------------------------------------------------------------------------

    5. A description of the projected reporting, recordkeeping and 
other compliance requirements of the rule, including an estimate of the 
classes of small entities which will be subject to the requirement and 
the type of professional skills necessary for preparation of the report 
or record.
    This rule calls for no new collection of information under the 
Paperwork Reduction Act of 1995, 44 U.S.C. 3501-3520.
    6. A description of the steps the agency has taken to minimize the 
significant economic impact on small entities consistent with the 
stated objectives of applicable statutes, including a statement of the 
factual, policy, and legal reasons for selecting the alternative 
adopted in the final rule and why each one of the other significant 
alternatives to the rule considered by the agency which affect the 
impact on small entities was rejected.
    This final rule implements section 308 of CGAA. The CGAA mandates 
the update of Table 4 in 33 CFR part 183. As such, the Coast Guard has 
no discretion to offer alternatives that minimize the impact on small 
entities while accomplishing the stated objective of the statute. To 
ease implementation of this requirement, the Coast Guard is delaying 
the effective date until June 1, 2018, so that the new requirements 
will apply only to boat manufacturers who build boats after that date.
    Small businesses may send comments on the actions of Federal 
employees who enforce, or otherwise determine compliance with, Federal 
regulations to the Small Business and Agriculture Regulatory 
Enforcement Ombudsman and the Regional Small Business Regulatory 
Fairness Boards. The Ombudsman evaluates these actions annually and 
rates each agency's responsiveness to small business. If you wish to 
comment on actions by employees of the Coast Guard, call 1-888-REG-FAIR 
(1-888-734-3247).

C. Assistance for Small Entities

    Under section 213(a) of the Small Business Regulatory Enforcement 
Fairness Act of 1996, Public Law 104-121, we offered to assist small 
entities in understanding this rule so that they could better evaluate 
its effects on them and participate in the rulemaking. The Coast Guard 
will not retaliate against small entities that question or complain 
about this rule or any policy or action of the Coast Guard.
    Small businesses may send comments on the actions of Federal 
employees who enforce, or otherwise determine compliance with, Federal 
regulations to the Small Business and Agriculture Regulatory 
Enforcement Ombudsman and the Regional Small Business Regulatory 
Fairness Boards. The Ombudsman evaluates these actions annually and 
rates each agency's responsiveness to small business. If you wish to 
comment on actions by employees of the Coast Guard, call 1-888-REG-FAIR 
(1-888-734-3247).

D. Collection of Information

    This rule calls for no new collection of information under the 
Paperwork Reduction Act of 1995, 44 U.S.C. 3501-3520.

E. Federalism

    A rule has implications for federalism under Executive Order 13132 
(``Federalism''), if it has a substantial direct effect on the States, 
on the relationship between the national government and the States, or 
on the distribution of power and responsibilities among the various 
levels of government. We have analyzed this rule under E.O. 13132 and 
have determined that it is consistent with the fundamental federalism 
principles and requirements described in Executive Order 13132. Our 
analysis is explained below.
    Congress directed the Coast Guard to ``establish minimum safety 
standards for recreational vessels'' (46 U.S.C. 4302). This rulemaking 
revises regulations issued pursuant to that statute and Congress has 
expressly limited States from regulating in this field, as specified in 
46 U.S.C. 4306. Under 46 U.S.C. 4306, ``a State or political 
subdivision of a State may not establish, continue in effect, or 
enforce a law or regulation establishing a recreational vessel or 
associated or equipment performance or other safety standard . . . that 
is not identical to a regulation prescribed under'' 46 U.S.C. 4302. As 
a result, States or local governments are expressly prohibited from 
regulating within this category unless the regulation is identical to 
regulation prescribed under 46 U.S.C. 4302 or an exemption is granted 
under 46 U.S.C. 4305. Therefore, the rule is consistent with the 
principles of federalism and preemption requirements in Executive Order 
13132.

F. Unfunded Mandates Reform Act

    The Unfunded Mandates Reform Act of 1995, 2 U.S.C. 1531-1538, 
requires Federal agencies to assess the effects of their discretionary 
regulatory actions. In particular, the Act addresses actions that may 
result in the expenditure by a State, local, or tribal government, in 
the aggregate, or by the private sector of $100,000,000 (adjusted for 
inflation) or more in any one year. Though this rule will not result in 
such an expenditure, we do discuss the effects of this rule elsewhere 
in this preamble.

G. Taking of Private Property

    This rule will not cause a taking of private property or otherwise 
have taking implications under E.O. 12630 (``Governmental Actions and 
Interference with Constitutionally Protected Property Rights'').

[[Page 49745]]

H. Civil Justice Reform

    This rule meets applicable standards in sections 3(a) and 3(b)(2) 
of E.O. 12988, (``Civil Justice Reform''), to minimize litigation, 
eliminate ambiguity, and reduce burden.

I. Protection of Children

    We have analyzed this rule under E.O. 13045 (``Protection of 
Children from Environmental Health Risks and Safety Risks''). This rule 
is not an economically significant rule and would not create an 
environmental risk to health or risk to safety that might 
disproportionately affect children.

J. Indian Tribal Governments

    This rule does not have tribal implications under E.O. 13175 
(``Consultation and Coordination with Indian Tribal Governments''), 
because it would not have a substantial direct effect on one or more 
Indian tribes, on the relationship between the Federal Government and 
Indian tribes, or on the distribution of power and responsibilities 
between the Federal Government and Indian tribes.

K. Energy Effects

    We have analyzed this rule under E.O. 13211 (``Actions Concerning 
Regulations That Significantly Affect Energy Supply, Distribution, or 
Use''). We have determined that it is not a ``significant energy 
action'' under that order because it is not a ``significant regulatory 
action'' under E.O. 12866 and is not likely to have a significant 
adverse effect on the supply, distribution, or use of energy.

L. Technical Standards

    The National Technology Transfer and Advancement Act, codified as a 
note to 15 U.S.C. 272, directs agencies to use voluntary consensus 
standards in their regulatory activities unless the agency provides 
Congress, through OMB, with an explanation of why using these standards 
would be inconsistent with applicable law or otherwise impractical. 
Voluntary consensus standards are technical standards (e.g., 
specifications of materials, performance, design, or operation; test 
methods; sampling procedures; and related management systems practices) 
that are developed or adopted by voluntary consensus standards bodies.
    This rule uses a voluntary consensus standard: The current ABYC S-
30.

M. Environment

    We have analyzed this rule under Department of Homeland Security 
Management Directive 023-01 and Commandant Instruction M16475.lD, which 
guide the Coast Guard in complying with the National Environmental 
Policy Act of 1969 (42 U.S.C. 4321-4370f), and have concluded that this 
action is one of a category of actions which do not individually or 
cumulatively have a significant effect on the human environment. This 
final rule is categorically excluded under section 2.B.2, figure 2-1, 
paragraphs (34)(d) and (e) of the Instruction and under section 6(a) of 
the ``Appendix to National Environmental Policy Act: Coast Guard 
Procedures for Categorical Exclusions, Notice of Final Agency Policy'' 
(67 FR 48243, July 23, 2002). This final rule involves the safe loading 
capacity and required amount of flotation material for certain 
recreational boats, which concerns equipping of vessels, as well as 
equipment and vessel operation safety standards. This rule supports the 
Coast Guard's maritime safety mission. A Record of Environmental 
Consideration (REC) supporting this determination is available in the 
docket as discussed in the ADDRESSES section of this rule.

List of Subjects in 33 CFR Part 183

    Marine safety.

0
For the reasons discussed in the preamble, the interim rule amending 33 
CFR part 183 that was published at 82 FR 16512 on April 5, 2017, is 
adopted as a final rule without change.

    Dated: October 23, 2017.
Jennifer F. Williams,
Captain, U.S. Coast Guard, Director of Inspections and Compliance.
[FR Doc. 2017-23384 Filed 10-26-17; 8:45 am]
 BILLING CODE 9110-04-P



                                                                                                                                                                                                        49737

                                                  Rules and Regulations                                                                                         Federal Register
                                                                                                                                                                Vol. 82, No. 207

                                                                                                                                                                Friday, October 27, 2017



                                                  This section of the FEDERAL REGISTER                    Table of Contents for Preamble                        publication, but not more than 2 years
                                                  contains regulatory documents having general                                                                  for cases involving major product
                                                                                                          I. Abbreviations
                                                  applicability and legal effect, most of which                                                                 design, retooling, or changes in the
                                                                                                          II. Basis and Purpose
                                                  are keyed to and codified in the Code of                                                                      manufacturing process. Section 4302(b)
                                                                                                          III. Regulatory History
                                                  Federal Regulations, which is published under
                                                                                                          IV. Background                                        also requires consultation with the
                                                  50 titles pursuant to 44 U.S.C. 1510.                   V. Discussion of the Rule                             National Boating Safety Advisory
                                                                                                          VI. Discussion of Comments and Changes                Council (NBSAC).1 Because this rule
                                                  The Code of Federal Regulations is sold by
                                                                                                          VII. Regulatory Analyses
                                                  the Superintendent of Documents.                                                                              amends regulations issued pursuant to
                                                                                                             A. Regulatory Planning and Review
                                                                                                             B. Small Entities                                  section 4302, the 180-day delay is
                                                                                                             C. Assistance for Small Entities                   appropriate to provide manufacturers
                                                  DEPARTMENT OF HOMELAND                                     D. Collection of Information                       with time to adjust their operations to
                                                  SECURITY                                                   E. Federalism                                      comply with the new standard. The
                                                                                                             F. Unfunded Mandates Reform Act                    Coast Guard has implemented that delay
                                                  Coast Guard                                                G. Taking of Private Property                      of effective date in this final rule.
                                                                                                             H. Civil Justice Reform
                                                  33 CFR Part 183                                            I. Protection of Children                          III. Regulatory History
                                                                                                             J. Indian Tribal Governments
                                                                                                             K. Energy Effects                                    On April 5, 2017, the Coast Guard
                                                  [Docket No. USCG–2016–1012]
                                                                                                             L. Technical Standards                             published an interim rule with request
                                                                                                             M. Environment                                     for comments (82 FR 16512). We
                                                  RIN 1625–AC37
                                                                                                          I. Abbreviations                                      received two public comments on the
                                                  Recreational Boat Flotation                                                                                   interim rule. No public meeting was
                                                                                                          ABYC American Boat and Yacht Council
                                                  Standards—Update of Outboard                            ABYC S–30 American Boat and Yacht                     requested, and none was held.
                                                  Engine Weight Test Requirements                           Council S–30—Outboard Engines and                   IV. Background
                                                                                                            Related Equipment Weights
                                                  AGENCY:  Coast Guard, DHS.                              CGAA Coast Guard Authorization Act of                   Congress has authorized the Coast
                                                  ACTION: Final rule.                                       2015 (Pub. L. 114–120, 130 Stat. 27; Feb.
                                                                                                                                                                Guard to prescribe regulations
                                                                                                            8, 2016)
                                                  SUMMARY:    The Coast Guard finalizes,                  CFR Code of Federal Regulations                       establishing minimum safety standards
                                                  without change, an interim rule to                      DHS Department of Homeland Security                   for recreational vessels and associated
                                                  update the table of outboard engine                     E.O. Executive Order                                  equipment. In 1977, the Coast Guard
                                                  weights used in calculating safe loading                FR Federal Register                                   established flotation requirements for
                                                                                                          FRFA Final Regulatory Flexibility Analysis            boats less than 20 feet in length, and
                                                  capacities and required amounts of                      MIC Manufacturer Identification Code
                                                  flotation material. The engine weight                                                                         established a weight table (Table 4 of
                                                                                                          NAICS North American Industry                         subpart H in 33 CFR part 183) used to
                                                  table was last updated in 1984, and the                   Classification System
                                                  Coast Guard Authorization Act of 2015                   NBSAC National Boating Safety Advisory                assist the boat manufacturer in
                                                  requires that the Coast Guard update the                  Council                                             determining the amount of flotation to
                                                  table to reflect a specific standard.                   NMMA National Marine Manufacturers                    be included in a boat’s design and
                                                  Finalizing the interim rule will                          Association                                         construction.
                                                  acknowledge the two public comments                     OMB Office of Management and Budget
                                                                                                                                                                  Table 4 was last updated in 1984, but
                                                                                                          Pub. L. Public Law
                                                  received, and contribute to public                      RA Regulatory analysis                                the size and weight of outboard engines
                                                  awareness of and certainty about the                    § Section symbol                                      have evolved over the years to the point
                                                  June 1, 2018, effective date.                           SBA Small Business Administration                     that Table 4 no longer accurately
                                                  DATES: This final rule is effective on                  U.S.C. United States Code                             represents the weights of outboard
                                                  June 1, 2018.                                                                                                 engines available on the market.
                                                                                                          II. Basis and Purpose
                                                  ADDRESSES: Comments and materials                                                                               The American Boat and Yacht
                                                                                                             Section 308 of the Coast Guard
                                                  received from the public, as well as                                                                          Council (ABYC) is a non-profit
                                                                                                          Authorization Act of 2015 (Pub. L. 114–
                                                  documents mentioned in this preamble                                                                          organization that develops voluntary
                                                                                                          120, 130 Stat. 27) (CGAA) requires the
                                                  as being available in the docket, are part                                                                    safety standards for the design,
                                                                                                          Coast Guard to issue regulations, not
                                                  of docket USCG–2016–1012 and are                                                                              construction, maintenance, and repair of
                                                                                                          later than 180 days after enactment,
                                                  available using the Federal eRulemaking                                                                       recreational boats. Among the voluntary
                                                                                                          updating Table 4 of subpart H in Title
                                                  Portal. You can find this docket on the                                                                       safety standards that ABYC develops
                                                                                                          33 of the Code of Federal Regulations
                                                  Internet by going to http://                                                                                  and updates on a regular basis is S–30—
                                                                                                          (CFR) part 183 to reflect the American
                                                  www.regulations.gov, inserting USCG–                                                                          Outboard Engines and Related
                                                                                                          Boat and Yacht Council S–30—
asabaliauskas on DSKBBXCHB2PROD with RULES




                                                  2016–1012 in the ‘‘Search’’ box, and                                                                          Equipment Weights (ABYC S–30). This
                                                                                                          Outboard Engines and Related
                                                  then clicking ‘‘Search.’’                                                                                     standard reflects the current state of
                                                                                                          Equipment Weights (ABYC S–30)
                                                  FOR FURTHER INFORMATION CONTACT: For                    standard.                                             marine outboard engine weights.
                                                  information about this document call or                    Additionally, 46 U.S.C. 4302(b),
                                                  email Mr. Jeffrey Ludwig, Coast Guard;                  which provides authority for 33 CFR                      1 The NBSAC recommended to the Coast Guard

                                                  telephone 202–372–1061, email                                                                                 in 2000 that the weight table be updated
                                                                                                          part 183, requires the effective date for             (Resolution number 2000–66–05), and discussed
                                                  Jeffrey.A.Ludwig@uscg.mil.                              rules issued under that provision be                  the replacement of Table 4 with the ABYC standard
                                                  SUPPLEMENTARY INFORMATION:                              delayed at least 180 days after                       at their April 2016 meeting.



                                             VerDate Sep<11>2014   16:30 Oct 26, 2017   Jkt 244001   PO 00000   Frm 00001   Fmt 4700   Sfmt 4700   E:\FR\FM\27OCR1.SGM   27OCR1


                                                  49738                   Federal Register / Vol. 82, No. 207 / Friday, October 27, 2017 / Rules and Regulations

                                                  V. Discussion of the Rule                                                rule. One commenter was supportive of              cost of planned regulations be prudently
                                                     This rulemaking adopts the current                                    the changes made in the interim rule.              managed and controlled through a
                                                  ABYC S–30 to replace Table 4 of                                          The other comment stated that in                   budgeting process.’’
                                                  subpart H in 33 CFR part 183. The                                        addition to small boat flotation, other               The Office of Management and Budget
                                                  current ABYC S–30 is dated July 2012,                                    factors that contribute to boat safety             (OMB) has not designated this rule a
                                                  and was the standard in effect on the                                    should be considered. The Coast Guard              significant regulatory action under
                                                  date of enactment of the CGAA.                                           agrees that other factors can contribute           section 3(f) of Executive Order 12866.
                                                     In the CFR, Table 4 applies to                                        to boat safety. However, they are outside          Accordingly, the Office of Management
                                                  monohull outboard boats that are less                                    of the scope of this rulemaking, in                and Budget (OMB) has not reviewed it.
                                                  than 20 feet in length, which includes                                   which we are focused on the                        As this rule is not a significant
                                                  recreational vessels as well as some                                     requirements of the CGAA and the                   regulatory action, this rule is exempt
                                                  commercial fishing vessels. Table 4 is                                   ABYC S–30 standard. This final rule                from the requirements of Executive
                                                  also used indirectly for flotation                                       makes no changes to the interim rule.              Order 13771. See OMB’s Memorandum
                                                  requirements for survival craft covered                                  VII. Regulatory Analyses                           ‘‘Guidance Implementing Executive
                                                  by 46 CFR part 25 (uninspected vessels),                                                                                    Order 13771, Titled ‘Reducing
                                                  46 CFR part 117 (small passenger                                           We developed this rule after                     Regulation and Controlling Regulatory
                                                  vessels carrying more than 150                                           considering numerous statutes and                  Costs’’’ (April 5, 2017). A regulatory
                                                  passengers), 46 CFR part 141 (towing                                     Executive Orders (E.O.s) related to                analysis (RA) follows. This RA is
                                                  vessels) and 46 CFR part 180 (small                                      rulemaking. Below we summarize our                 unchanged from the RA included in the
                                                  passenger vessels under 100 gross tons).                                 analyses based on these statutes or                interim rule (82 FR 16512; April 5,
                                                  Changing the figures in Table 4, as                                      E.O.s.                                             2017).
                                                  required by the CGAA, will require                                       A. Regulatory Planning and Review                     This RA provides an evaluation of the
                                                  more flotation in each new boat, to                                                                                         economic impacts associated with this
                                                                                                                              Executive Orders 12866 (‘‘Regulatory
                                                  support the weight of heavier engines.                                                                                      final rule. The Coast Guard is issuing a
                                                     The interim rule removed Table 4 and                                  Planning and Review’’) and 13563
                                                                                                                           (‘‘Improving Regulation and Regulatory             final rule to implement section 308 of
                                                  replaced it with a new section (section                                                                                     the CGAA. The CGAA mandates that the
                                                  183.75) in subpart E of part 183. That                                   Review’’) direct agencies to assess the
                                                                                                                           costs and benefits of available regulatory         Coast Guard issue regulations to amend
                                                  section contains the table of the ABYC
                                                                                                                           alternatives and, if regulation is                 Table 4 of subpart H in 33 CFR part 183
                                                  S–30 standard and its corresponding
                                                                                                                           necessary, to select regulatory                    to reflect the standards in ABYC S–30.
                                                  footnotes. The Coast Guard made minor
                                                                                                                           approaches that maximize net benefits              Consequently, 100 percent of the costs
                                                  edits to the footnotes developed by
                                                                                                                           (including potential economic,                     of this rule are due to a Congressional
                                                  ABYC to accommodate the location of
                                                                                                                           environmental, public health and safety            mandate and the Coast Guard has no
                                                  the table in the CFR and to reflect the
                                                                                                                           effects, distributive impacts, and                 discretion to adopt a different standard
                                                  removal of Table 4. We also made
                                                                                                                           equity). Executive Order 13563                     that would lower the cost of this rule.
                                                  conforming changes to several sections
                                                                                                                           emphasizes the importance of                       Changes in the design and construction
                                                  that referenced Table 4.
                                                     Finalizing the rule will acknowledge                                  quantifying both costs and benefits, of            of modern outboard engines necessitate
                                                  the public comments received, and                                        reducing costs, of harmonizing rules,              a change in the table of outboard engine
                                                  contribute to public awareness of and                                    and of promoting flexibility. Executive            weights used in calculating safe loading
                                                  certainty about the June 1, 2018,                                        Order 13771 (‘‘Reducing Regulation and             capacities and required amounts of
                                                  effective date.                                                          Controlling Regulatory Costs’’) directs            flotation material in the Safe Loading
                                                                                                                           agencies to reduce regulation and                  and Flotation Standards found in 33
                                                  VI. Discussion of Comments and                                           control regulatory costs and provides              CFR part 183, subparts G and H.
                                                  Changes                                                                  that ‘‘for every one new regulation                   Table 1 of this document provides a
                                                    The Coast Guard received two public                                    issued, at least two prior regulations be          summary of the affected population,
                                                  comments in response to the interim                                      identified for elimination, and that the           costs, and benefits of this rule.

                                                                                                          TABLE 1—SUMMARY OF THE IMPACTS OF THE FINAL RULE
                                                                              Category                                                                                   Summary

                                                  Applicability ........................................................   Update Table 4 of subpart H in 33 CFR part 183 with ABYC S–30.
                                                  Affected Population ............................................         1,427 manufacturers of monohull outboard boats of less than 20 feet in length.
                                                  Costs to Industry ($, 7% discount rate) .............                    10-year: $6,624,488.
                                                                                                                           Annualized: $943,178.
                                                  Unquantified Benefits .........................................          Creates uniformity by aligning all boats to the same standard.
                                                                                                                           Brings those boats not currently in compliance with ABYC S–30 to a higher level of safety than
                                                                                                                             the standard currently in regulation.



                                                  Affected Population                                                         Table 4 is also used indirectly for             required to carry certain survival craft,
                                                                                                                           flotation requirements for survival craft          depending on their route and
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                                                    This final rule adopts the current                                     covered by 46 CFR part 25 (uninspected             construction, in order to have the
                                                  ABYC S–30 to replace Table 4 of                                          vessels), 46 CFR part 117 (small                   capacity to evacuate a certain
                                                  subpart H in 33 CFR part 183. Table 4                                    passenger vessels carrying more than               percentage of the number of people on
                                                  applies to monohull outboard boats that                                  150 passengers), 46 CFR part 141                   board. These survival craft are generally
                                                  are less than 20 feet in length, including                               (towing vessels), and 46 CFR part 180              life rafts or floats, which do not have
                                                  recreational vessels and some                                            (small passenger vessels under 100 gross           engines and are not impacted by this
                                                  commercial fishing vessels.                                              tons). Small passenger vessels are                 final rule. However, small passenger


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                                                                    Federal Register / Vol. 82, No. 207 / Friday, October 27, 2017 / Rules and Regulations                                                      49739

                                                  vessels could voluntarily carry a small                 than 1,519 affected manufacturers that                   additional foam in the boats. Therefore,
                                                  boat that can be used to carry some of                  produce monohull outboard boats that                     Coast Guard uses an estimate of $50 per
                                                  the passengers, thereby reducing the                    are less than 20 feet in length.                         boat to account for the foam and any
                                                  number of other survival craft they are                   Some of these 1,519 monohull                           minor adjustments that may be
                                                  required to carry (46 CFR 117.200(b)                    manufacturers are currently in                           necessary.5 Manufacturers could incur
                                                  and 46 CFR 180.200(b)). Because this is                 compliance with ABYC S–30 standard,                      costs related to determining where to
                                                  a voluntary option available for these                  and therefore will not incur additional                  put the additional flotation on a vessel,
                                                  vessels, we do not include them in our                  costs because of this rule. The National                 but we believe redesign costs would not
                                                  analysis. However, we do note that if                   Marine Manufacturers Association
                                                                                                                                                                   be needed as the additional flotation
                                                  the uninspected vessels, small                          (NMMA) requires its members to build
                                                                                                                                                                   material is minimal and the placement
                                                  passenger vessels carrying more than                    boats to the ABYC standard.2 These
                                                                                                          NMMA builders produce about 85                           of the material is fairly standard. The
                                                  150 passengers, towing vessels, or small
                                                                                                          percent of the recreational boats built                  manufacturers are already required to
                                                  passenger vessels under 100 gross tons
                                                                                                          each year.3 We found 92 monohull                         add flotation to boats, so there will be
                                                  choose to carry a small boat on board
                                                                                                          manufacturers that are currently NMMA                    no costs for new equipment, facilities,
                                                  that does not meet ABYC S–30 standard,
                                                  they could be indirectly affected by this               members and therefore we assume they                     or retrofitting of facilities.
                                                  final rule. Because this final rule applies             are in compliance. We assume the                            To estimate the total cost to industry,
                                                  only to new boats manufactured after                    remaining 1,427 monohull                                 we then estimated the total number of
                                                  June 1, 2018, any small passenger                       manufacturers are not compliant with                     outboard boats less than 20 feet in
                                                  vessels already carrying small boats                    the current voluntary standard and will                  length manufactured per year by the
                                                  subject to Table 4 of subpart H are not                 be affected by this rule.                                monohull manufacturers that are not in
                                                  affected. If they choose to replace their               Costs to Industry                                        compliance. The Coast Guard used data
                                                  small boat with a boat built after June                                                                          from the NMMA’s 2015 Recreational
                                                  1, 2018, they may be indirectly affected                   This final rule adopts the current
                                                                                                          ABYC S–30, to replace Table 4 of                         Boating Statistical Abstract 6 to estimate
                                                  if the manufacturer passes the costs of                                                                          the total affected outboard boats. The
                                                                                                          subpart H. This change will increase
                                                  this final rule on to the consumers. We                                                                          NMMA breaks down outboard boat sales
                                                                                                          costs to 1,427 monohull manufacturers
                                                  account for the direct costs to                                                                                  by two hull materials: Fiberglass and
                                                                                                          that are assumed to be not in
                                                  manufacturers in this analysis.                                                                                  aluminum. The NMMA estimates that in
                                                     The final rule affects manufacturers                 compliance. The increase in the weight
                                                                                                          table figures will require an additional                 2015, 51,300 fiberglass outboard boats
                                                  that produce monohull outboard boats
                                                                                                          1 to 2 cubic feet of flotation to be added               and 104,500 aluminum outboard boats
                                                  that are less than 20 feet in length and
                                                                                                          to each boat manufactured after the                      were sold. Of these boats sold, 42.7
                                                  that are not currently building boats to
                                                                                                          effective date of June 1, 2018. We                       percent of the fiberglass outboard boats
                                                  ABYC S–30 standard. The Coast Guard
                                                                                                          estimate the foam for the additional                     and 60.4 percent of the aluminum
                                                  used the list of active Manufacturer
                                                                                                          flotation will cost an average of $10 per                outboard boats were less than 20 feet in
                                                  Identification Code (MIC) holders, as
                                                                                                          boat.4 Some manufacturers may need to                    length. Multiplying the percentage
                                                  required by 33 CFR 181 subpart C, to
                                                                                                          make minor adjustments such as                           market share of boats less than 20 feet
                                                  determine the affected population. This
                                                                                                          enclosing an aft seat and adding foam                    by the total sales of boats by material,
                                                  list represents all recreational boat MICs
                                                                                                          under the seat to accommodate the                        we found there were 21,905 fiberglass
                                                  that are currently active. We then
                                                  removed any MICs that will not be                                                                                boats and 63,118 aluminum outboard
                                                                                                            2 See Michael Vatalaro, What ‘‘NMMA-Certified’’
                                                  affected by this rule from the list of                  Really Means, BoatUS, Feb. 2014, http://
                                                                                                                                                                   boats less than 20 feet sold in 2015 (see
                                                  manufacturers. This includes: (1)                       www.boatus.com/magazine/2014/february/what-              Table 2).
                                                  Manufacturers with multiple MICs; (2)                   nnma-certified-means.asp.
                                                                                                            3 Id.                                                     5 Based on discussions with manufacturers, the
                                                  MICs belonging to manufacturers that                      4 The $10 estimate is based on 2 LB Density            additional $40 estimate is to cover the cost of
                                                  only build boats greater than 20 feet in                Urethane Foam estimates from US Composites               enclosing a rear seat to add flotation foam under it
                                                  length; (3) MICs belonging to                           (http://www.uscomposites.com/foam.html) and              or to add small chambers, especially on open
                                                  manufacturers that do not build                         conversations with manufacturers. Foam prices            aluminum boats, to accommodate the additional
                                                  monohull outboard boats; and (4) MICs                   vary based on the size of the kits. The cost of kits     flotation foam.
                                                                                                          range from a 2 cubic foot kit cost of $22.50 ($11.25
                                                  belonging to manufacturers that only                    per cubic foot) to $264 for a 40 cubic foot kit ($6.60
                                                                                                                                                                      6 A summary of the NMMA abstract is available

                                                  produce boats exempted from this                        per cubic foot). Conversations with manufacturers        at https://www.nmma.org/statistics/publications/
                                                  regulation by 33 CFR 183.201(b),                        confirmed $10 is a reasonable average estimate for       statistical-abstract. The full report is available for
                                                  including sailboats, canoes, kayaks,                    adding 1 to 2 cubic feet of additional flotation, that   purchase through NMMA. The Coast Guard used
                                                                                                          takes into account the varying costs based on the        data from Powerboat Sales Trends, Table 1:
                                                  inflatable boats, submersibles, surface                 size of kits purchased and that manufacturers may        Outboard boats: Estimated sales by hull market;
                                                  effect vessels, amphibious vessels, and                 pay less than the listed prices based on their           Table 2: Fiberglass outboard boats: Estimated
                                                  raceboats. We found there are no more                   purchasing agreements with the suppliers.                market share by length; and Table 3: Aluminum
                                                                                                                                                                   outboard boats: Estimated market share by length.
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                                                  49740                      Federal Register / Vol. 82, No. 207 / Friday, October 27, 2017 / Rules and Regulations

                                                                                  TABLE 2—TOTAL SALES AND MARKET SHARE OF OUTBOARD BOATS BY MATERIAL TYPE
                                                                                                                                                                                                                                    Percentage               Total outboard
                                                                                                                                                                                                                                   market share
                                                                                                                                                                                                          Estimated total                                      boats less
                                                                                                       Outboard boat by material                                                                                                  outboard boats
                                                                                                                                                                                                               sales                                          than 20 feet
                                                                                                                                                                                                                                   less than 20               sold in 2015
                                                                                                                                                                                                                                       feet

                                                  Fiberglass ....................................................................................................................................                  51,300                          42.7             21,905
                                                  Aluminum .....................................................................................................................................                  104,500                          60.4             63,118

                                                         Total ......................................................................................................................................             155,800         ........................          85,023



                                                     The total 85,023 outboard boats less                                       2019 levels. Production could decrease                                      which corresponds with the 2018
                                                  than 20 feet that were sold in 2015 were                                      or increase, resulting in higher or lower                                   estimated affected outboard boats in
                                                  produced by a mix of manufacturers                                            industry costs, but for the purposes of                                     Table 3. We estimate there will be
                                                  that are already in compliance with the                                       this analysis we assume production                                          17,916 affected outboard boats in Year
                                                  ABYC S–30 standard and manufacturers                                          remains constant past 2019. Table 3                                         1 and 19,009 affected outboard boats in
                                                  that are not in compliance and will be                                        shows our baseline affected population,                                     Years 2 through 10. Table 4 summarizes
                                                  impacted by this rule. The NMMA                                               the forecasted percentage increases over                                    the estimated affected population of
                                                  estimates that around 85 percent of the                                       the previous year estimated by NMMA,                                        outboard boats that we used to estimate
                                                  boats sold in the United States are                                           and the resulting number of affected                                        the 10-year costs of this final rule.
                                                  already in compliance with the ABYC                                           outboard boats.8
                                                  S–30 standard. Therefore, the Coast                                                                                                                        TABLE 4—TEN-YEAR PROJECTION OF
                                                  Guard estimates 15 percent of the total                                           TABLE 3—FORECASTED AFFECTED                                                 AFFECTED OUTBOARD BOATS
                                                  outboard boats less than 20 feet sold                                                    OUTBOARD BOATS
                                                  were produced by manufacturers not in                                                                                                                                        Year                             Affected
                                                  compliance with the ABYC standard.                                                                      Forecasted                  Affected                                                               outboard boats
                                                  These 12,753 boats (15 percent of the                                                                   percentage               outboard boats
                                                                                                                                      Year              increase over               manufactured            1 ............................................          17,916
                                                  85,023 outboard boats less than 20 feet,                                                              previous year                 annually              2 ............................................          19,009
                                                  rounded) will require $50 of additional
                                                                                                                                                                                                            3 ............................................          19,009
                                                  flotation materials to align with the new                                     2015 ..........        ........................                 12,753
                                                                                                                                                                                                            4 ............................................          19,009
                                                  standard.                                                                     2016 ..........                         11.6                    14,232
                                                                                                                                                                                                            5 ............................................          19,009
                                                                                                                                2017 ..........                         15.2                    16,402
                                                     To estimate the affected outboard                                          2018 ..........                           9.2                   17,916      6 ............................................          19,009
                                                  boats over the 10-year period of                                              2019 ..........                           6.1                   19,009      7 ............................................          19,009
                                                  analysis, we used NMMA data to                                                2020+ ........                            0.0                   19,009      8 ............................................          19,009
                                                  forecast future boat building                                                                                                                             9 ............................................          19,009
                                                  production.7 The NMMA anticipates                                                As this final rule will be effective June                                10 ..........................................           19,009
                                                  annual production will rise through at                                        1, 2018, any outboard boats
                                                  least 2018 before leveling off into at                                        manufactured after this date will need                                        We then multiplied the projected
                                                  least early 2019. The NMMA does not                                           to be in compliance with ABYC S–30                                          number of affected outboard boats each
                                                  have estimates for production past 2019.                                      standard. The Coast Guard anticipates                                       year in Table 4 by the estimated cost per
                                                  Since the NMMA anticipates production                                         most manufacturers will begin making                                        boat of $50. Table 5 shows the total
                                                  will plateau once it reaches the levels of                                    the necessary changes at the beginning                                      costs of this final rule on an
                                                  production estimated in 2019, the Coast                                       of 2018. All manufacturers will be in                                       undiscounted basis, and discounted at 7
                                                  Guard assumes production will hold at                                         compliance by June 1, 2018 of Year 1,                                       and 3 percent.

                                                                                                                               TABLE 5—TOTAL COSTS OF FINAL RULE
                                                                                                                                                                                                              Total                          Total, discounted
                                                                                                                        Year                                                                              undiscounted
                                                                                                                                                                                                              costs                        7%                     3%

                                                  1 ...................................................................................................................................................         $895,800                   $837,196               $869,709
                                                  2 ...................................................................................................................................................          950,450                    830,160                895,890
                                                  3 ...................................................................................................................................................          950,450                    775,850                869,796
                                                  4 ...................................................................................................................................................          950,450                    725,094                844,463
                                                  5 ...................................................................................................................................................          950,450                    677,658                819,867
                                                  6 ...................................................................................................................................................          950,450                    633,325                795,987
                                                  7 ...................................................................................................................................................          950,450                    591,892                772,803
                                                  8 ...................................................................................................................................................          950,450                    553,171                750,294
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                                                  9 ...................................................................................................................................................          950,450                    516,982                728,441
                                                  10 .................................................................................................................................................           950,450                    483,161                707,224


                                                    7 Production forecasts are internal NMMA                                       8 Forecasted percentages for 2016 and 2019 were                          calculated as [1 + ((170.1¥147.6)/147.6)] * 14,232
                                                  estimates that were provided to the Coast Guard on                            given in NMMA data. Forecasted percentages for                              = 16,402, rounded. For 2018, the affected outboard
                                                  9/7/2016.                                                                     years 2017 and 2018 were calculated from NMMA’s                             boats manufactured annually are calculated as [1 +
                                                                                                                                forecasted annual production index. For 2017, the                           (185.8¥170.1)/170.1] * 16,402, rounded.
                                                                                                                                affected outboard boats manufactured annually are



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                                                                          Federal Register / Vol. 82, No. 207 / Friday, October 27, 2017 / Rules and Regulations                                                                                  49741

                                                                                                                TABLE 5—TOTAL COSTS OF FINAL RULE—Continued
                                                                                                                                                                                                           Total                  Total, discounted
                                                                                                                     Year                                                                              undiscounted
                                                                                                                                                                                                           costs                 7%               3%

                                                       Total ......................................................................................................................................           9,449,850          6,624,488       8,054,473

                                                              Annualized .....................................................................................................................        ........................    943,178             944,230



                                                     The total 10-year undiscounted cost of                                  Business Act (5 U.S.C. 632); a small not-                                    33 CFR part 183 to reflect the ABYC S–
                                                  this final rule is $9,449,850. The total                                   for-profit organization (any not-for-                                        30 standard.
                                                  10-year discounted cost of this final rule                                 profit enterprise which is independently                                        Congress has authorized the Coast
                                                  is $6,624,488 and the annualized cost is                                   owned and operated and is not                                                Guard to prescribe regulations
                                                  $943,178, both discounted at 7 percent.                                    dominant in its field); or a small                                           establishing minimum safety standards
                                                  The manufacturers of outboard boats                                        governmental jurisdiction (locality with                                     for recreational vessels and associated
                                                  less than 20 feet in length not in                                         fewer than 50,000 people) per the                                            equipment. In 1977, the Coast Guard
                                                  compliance with ABYC S–30 standard                                         Regulatory Flexibility Act (RFA), 5                                          established flotation requirements for
                                                  will bear these costs. However, it is                                      U.S.C. 601–612.                                                              boats less than 20 feet in length, and
                                                  possible that manufacturers may pass                                          A FRFA addresses the following:                                           established a weight table (Table 4 of
                                                  these costs onto the recreational boat                                        (1) A statement of the need for, and                                      subpart H in 33 CFR part 183) used to
                                                  owners by incorporating the additional                                     objectives of, the rule;                                                     assist the boat manufacturer in
                                                  costs of this final rule into the sales                                       (2) A statement of the significant                                        determining the amount of flotation to
                                                  price. The sale price of the affected                                      issues raised by the public comments in                                      be included in a boat’s design and
                                                  boats can range from $3,000 through                                        response to the initial regulatory                                           construction.
                                                  $50,000. If we use an average of $26,500                                   flexibility analysis, a statement of the                                        Table 4 was last updated in 1984, but
                                                  per boat, the $50 average cost per boat                                    assessment of the agency of such issues,                                     the size and weight of outboard engines
                                                  represents 0.2 percent of the sales price.                                 and a statement of any changes made in                                       has evolved over the years to the point
                                                  However, 85 percent of the boats sold in                                   the interim final rule as a result of such                                   where Table 4 no longer accurately
                                                  the United States are already in                                           comments;                                                                    represents the weights of outboard
                                                  compliance and include this cost of                                           (3) The response of the agency to any                                     engines available on the market.
                                                  floatation in the sales prices.                                            comments filed by the Chief Counsel for                                      Changes in the design and construction
                                                                                                                             Advocacy of the Small Business                                               of modern outboard engines necessitate
                                                  Benefits                                                                   Administration in response to the                                            a change in the table of outboard engine
                                                    This rule does not provide any                                           interim final rule, and a detailed                                           weights used in calculating safe loading
                                                  quantitative benefits. However, it does                                    statement of any change made to the                                          capacities and required amounts of
                                                  have qualitative benefits. This rule                                       interim final rule in the final rule as a                                    flotation material in the Safe Loading
                                                  creates uniformity by aligning all boats                                   result of the comments;                                                      and Flotation Standards found in 33
                                                  to the same standard. The ABYC S–30                                           (4) A description of and an estimate                                      CFR part 183, subparts G and H.
                                                  provides a higher level of safety than                                     of the number of small entities to which                                        2. A statement of the significant issues
                                                  that provided by the standard currently                                    the rule will apply or an explanation of                                     raised by the public comments in
                                                  in the regulation. Requiring all boats                                     why no such estimate is available;                                           response to the initial regulatory
                                                  less than 20 feet in length that currently                                    (5) A description of the projected                                        flexibility analysis, a statement of the
                                                  do not meet ABYC S–30 standard                                             reporting, recordkeeping and other                                           assessment of the agency of such issues,
                                                  weights to comply with that standard                                       compliance requirements of the rule,                                         and a statement of any changes made in
                                                  will improve the buoyancy of these                                         including an estimate of the classes of                                      the interim final rule as a result of the
                                                  boats, and therefore, improve their                                        small entities which will be subject to                                      comments.
                                                  operational safety.                                                        the requirement and the type of                                                 The Coast Guard did not receive any
                                                                                                                             professional skills necessary for                                            comments on the initial regulatory
                                                  B. Small Entities
                                                                                                                             preparation of the report or record; and                                     flexibility analysis.
                                                    In accordance with the Regulatory                                           (6) A description of the steps the                                           3. The response of the agency to any
                                                  Flexibility Act (5 U.S.C. 601–612), the                                    agency has taken to minimize the                                             comments filed by the Chief Counsel for
                                                  Coast Guard prepared this Final                                            significant economic impact on small                                         Advocacy of the Small Business
                                                  Regulatory Flexibility Analysis (FRFA)                                     entities consistent with the stated                                          Administration in response to the
                                                  that examines the impacts of the final                                     objectives of applicable statutes,                                           interim final rule, and a detailed
                                                  rule on small entities (5 U.S.C. 601 et                                    including a statement of the factual,                                        statement of any change made to the
                                                  seq.). We recognize that a FRFA is not                                     policy, and legal reasons for selecting                                      interim final rule in the final rule as a
                                                  required for a final rule that was not                                     the alternative adopted in the final rule                                    result of the comments.
                                                  preceded by a general notice of                                            and why each one of the other                                                   The Coast Guard did not receive any
                                                  proposed rulemaking. We are including                                      significant alternatives to the rule                                         comments from the Small Business
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                                                  an analysis of the final rule                                              considered by the agency which affect                                        Administration’s (SBA) Office of
                                                  requirements on small entities for                                         the impact on small entities was                                             Advocacy regarding the impact that the
                                                  informational purposes.                                                    rejected.                                                                    interim final rule would have on small
                                                    A small entity may be: A small                                              1. A statement of the need for, and                                       entities.
                                                  independent business, defined as                                           objectives of, the rule.                                                        4. A description of and an estimate of
                                                  independently owned and operated, is                                          Section 308 of the CGAA requires the                                      the number of small entities to which
                                                  organized for profit, and is not                                           Coast Guard to issue regulations                                             the rule will apply or an explanation of
                                                  dominant in its field per the Small                                        updating Table 4 of subpart H in Title                                       why no such estimate is available.


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                                                  49742                        Federal Register / Vol. 82, No. 207 / Friday, October 27, 2017 / Rules and Regulations

                                                    This final rule affects manufacturers                                                North American Industry Classification                                       385 companies are small entities as
                                                  that produce monohull outboard boats                                                   System (NAICS).11                                                            defined by the SBA thresholds. Adding
                                                  that are less than 20 feet in length that                                                 Using a random sample of companies                                        these small entities to the companies
                                                  are not currently building boats to                                                    out of the total population of 1,427                                         without revenue and employment
                                                  ABYC S–30 standard.                                                                    affected U.S. companies, we researched                                       information, we estimate a total of 746
                                                                                                                                         749 companies and found company-                                             of the companies are small entities.
                                                    Based on Coast Guard’s list of active                                                specific revenue and employment
                                                  MIC holders, we estimate this final rule                                                                                                                            Using the results of this random sample,
                                                                                                                                         information and data on 388 of them.12                                       we calculated the fraction of small
                                                  will affect 1,427 U.S. companies. We                                                   We assumed that the remaining 361
                                                  researched the number of employees                                                                                                                                  entities by dividing the total small
                                                                                                                                         companies (for which the revenue and
                                                  and revenue of these companies using                                                                                                                                entities by the sample size. Therefore,
                                                                                                                                         employment information was
                                                  proprietary and public business                                                        unavailable) are small entities for the                                      we estimate that 99.6 percent of all
                                                  databases.9 We then measured company                                                   purpose of this analysis. Of the 388                                         monohull companies not currently
                                                  size data using the SBA’s business size                                                companies for which revenue and                                              building to ABYC S–30 standard fall
                                                  standards to assess how many                                                           employment information was available,                                        below the threshold for small
                                                  companies in this industry may be small                                                we found three entities that exceeded                                        businesses. Table 6 summarizes the
                                                  entities.10 The SBA provides business                                                  the small entity thresholds for their                                        findings of our small entity threshold
                                                  size standards for all sectors of the                                                  relevant NAICS code. The remaining                                           analysis.

                                                                                                        TABLE 6—NUMBER OF COMPANIES AND SMALL ENTITIES RESEARCHED
                                                                                                                                                                                                                                                                Number of
                                                                                                                                                        Category                                                                                                companies

                                                  (a) Sample Size ...............................................................................................................................................................................                       749
                                                  (b) Without Revenue or Employment Data .....................................................................................................................................                                          361
                                                  (c ) With Revenue or Employee Data .............................................................................................................................................                                      388
                                                  (d) Exceeded Small Entity Threshold ..............................................................................................................................................                                      3
                                                  (e) Below the Small Business Threshold ........................................................................................................................................                                       385
                                                  Total Small Entities, (b) + (e) ..........................................................................................................................................................                            746
                                                  Total, (a) ..........................................................................................................................................................................................                 749
                                                  Fraction Small Entities .....................................................................................................................................................................                       99.6%



                                                    Our analysis of the available company                                                codes of the small entities found in our
                                                  information revealed 64 primary NAICS                                                  sample.
                                                  codes. Table 7 displays the NAICS
                                                                                                                      TABLE 7—NAICS CODES OF IDENTIFIED SMALL ENTITIES
                                                                                                                                                                                                                          Count of           SBA size             SBA size
                                                                                                                       Title                                                                            NAICS code       companies         standard type          threshold

                                                  Boat Building .................................................................................................................................            336612               151    Employees .........            1,000
                                                  Boat Dealers ..................................................................................................................................            441222                56    Revenue ............     $32,500,000
                                                  Other Personal and Household Goods Repair and Maintenance ................................................                                                 811490                32    Revenue ............      $7,500,000
                                                  Marinas ..........................................................................................................................................         713930                28    Revenue ............      $7,500,000
                                                  All Other Support Services ............................................................................................................                    561990                14    Revenue ............     $11,000,000
                                                  Mineral Wool Manufacturing .........................................................................................................                       327993                11    Employees .........            1,500
                                                  Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Re-                                                                   811310                 8    Revenue ............      $7,500,000
                                                     pair and Maintenance.
                                                  All Other Miscellaneous Manufacturing ........................................................................................                             339999                  5   Employees .........              500
                                                  Fabricated Structural Metal Manufacturing ...................................................................................                              332312                  4   Employees .........              500
                                                  New Single-family Housing Construction (Except For-Sale Builders) ..........................................                                               236115                  3   Revenue ............     $36,500,000
                                                  All Other Plastics Product Manufacturing .....................................................................................                             326199                  3   Employees .........              750
                                                  Sporting and Recreational Goods and Supplies Merchant Wholesalers .....................................                                                    423910                  3   Employees .........              100
                                                  Other Miscellaneous Durable Goods Merchant Wholesalers .......................................................                                             423990                  3   Employees ........               100
                                                  Other Building Material Dealers ....................................................................................................                       444190                  3   Revenue ............     $20,500,000
                                                  Engineering Services ....................................................................................................................                  541330                  3   Revenue ............     $15,000,000
                                                  All Other Business Support Services ............................................................................................                           561499                  3   Revenue ............     $15,000,000
                                                  Site Preparation Contractors .........................................................................................................                     238910                  2   Revenue ............     $15,000,000
                                                  Sheet Metal Work Manufacturing ..................................................................................................                          332322                  2   Employees .........              500
                                                  Special Die and Tool, Die Set, Jig and Fixture Manufacturing ....................................................                                          333514                  2   Employees .........              500
                                                  Travel Trailer and Camper Manufacturing ....................................................................................                               336214                  2   Employees .........            1,000
                                                  Wholesale Trade Agents and Brokers ..........................................................................................                              425120                  2   Employees .........              100
                                                  All Other Miscellaneous Store Retailers (except Tobacco Stores) ..............................................                                             453998                  2   Revenue ............      $7,500,000
                                                  Museums .......................................................................................................................................            712110                  2   Revenue ............     $27,500,000
                                                  Hunting and Trapping ....................................................................................................................                  114210                  1   Revenue ............      $5,500,000
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                                                  Water Supply and Irrigation Systems ...........................................................................................                            221310                  1   Revenue ............     $27,500,000

                                                    9 Data sources: ReferenceUSA                                                         population of less than 50,000, and small                                    www.sba.gov/content/small-business-size-
                                                  (www.referenceusagov.com) and Manta                                                    organizations that are independently owned not-for-                          standards.
                                                  (www.manta.com).                                                                       profit enterprises and which are not dominant in                               12 Using a 95 percent confidence level, a sample
                                                    10 ‘‘Small entities’’ include small businesses that                                  their field. See 5 U.S.C. 601(3)–(5).                                        size of 385 companies is sufficient. Our research
                                                  meet the Small Business Administration size                                               11 SBA size standards are matched to NAICS,                               started with a random sample of 749 companies
                                                  standard for small business concerns at 13 CFR                                         effective February 26, 2016. See Contracting: Table                          that yielded 388 entities for which requisite
                                                  121.201, small governmental jurisdictions with a                                       of Small Business Size Standards, https://                                   information was found.



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                                                                              Federal Register / Vol. 82, No. 207 / Friday, October 27, 2017 / Rules and Regulations                                                                                       49743

                                                                                                      TABLE 7—NAICS CODES OF IDENTIFIED SMALL ENTITIES—Continued
                                                                                                                                                                                                                   Count of           SBA size           SBA size
                                                                                                                    Title                                                                         NAICS code      companies         standard type        threshold

                                                  Commercial and Institutional Building Construction .....................................................................                             236220                 1   Revenue ............   $36,500,000
                                                  Other Heavy and Civil Engineering Construction .........................................................................                             237990                 1   Revenue ............   $36,500,000
                                                  Plumbing, Heating, and Air-Conditioning Contractors ..................................................................                               238220                 1   Revenue ............   $15,000,000
                                                  All Other Specialty Trade Contractors ..........................................................................................                     238990                 1   Revenue ............   $15,000,000
                                                  Fabric Coating Mills .......................................................................................................................         313320                 1   Employees .........          1,000
                                                  Other Millwork (including Flooring) ...............................................................................................                  321918                 1   Employees .........            500
                                                  Plastics Material and Resin Manufacturing ...................................................................................                        325211                 1   Employees .........          1,250
                                                  Fertilizer (Mixing Only) Manufacturing ..........................................................................................                    325314                 1   Employees .........            500
                                                  All Other Miscellaneous Nonmetallic Mineral Product Manufacturing ..........................................                                         327999                 1   Employees .........            500
                                                  Alumina Refining and Primary Aluminum Production ...................................................................                                 331313                 1   Employees .........          1,000
                                                  Aluminum Sheet, Plate and Foil Manufacturing ...........................................................................                             331315                 1   Employees .........          1,250
                                                  Other Aluminum Rolling, Drawing, and Extruding ........................................................................                              331318                 1   Employees .........            750
                                                  Plate Work Manufacturing .............................................................................................................               332313                 1   Employees .........            750
                                                  Farm Machinery and Equipment Manufacturing ...........................................................................                               333111                 1   Employees .........          1,250
                                                  Overhead Traveling Crane, Hoist and Monorail System Manufacturing ......................................                                             333923                 1   Employees .........          1,250
                                                  All Other Miscellaneous General Purpose Machinery Manufacturing ..........................................                                           333999                 1   Employees .........            500
                                                  Other Communications Equipment Manufacturing .......................................................................                                 334290                 1   Employees .........            750
                                                  Truck Trailer Manufacturing ..........................................................................................................               336212                 1   Employees ........           1,000
                                                  Motor Vehicle Steering and Suspension Components (except Spring) Manufacturing ...............                                                       336330                 1   Employees .........          1,000
                                                  Ship Building and Repairing ..........................................................................................................               336611                 1   Employees .........          1,250
                                                  All Other Transportation Equipment Manufacturing ......................................................................                              336999                 1   Employees .........          1,000
                                                  Sporting and Athletic Goods Manufacturing .................................................................................                          339920                 1   Employees ........             750
                                                  Hobby, Toy and Game Stores ......................................................................................................                    451120                 1   Revenue ............   $27,500,000
                                                  Scenic and Sightseeing Transportation, Water ............................................................................                            487210                 1   Revenue ............    $7,500,000
                                                  Navigational Services to Shipping ................................................................................................                   488330                 1   Revenue ............   $38,500,000
                                                  Miscellaneous Intermediation ........................................................................................................                523910                 1   Revenue ............   $38,500,000
                                                  Recreational Goods Rental ...........................................................................................................                532292                 1   Revenue ............    $7,500,000
                                                  Landscape Architectural Services .................................................................................................                   541320                 1   Revenue ............    $7,500,000
                                                  Industrial Design Services .............................................................................................................             541420                 1   Revenue ............    $7,500,000
                                                  Graphic Design Services ...............................................................................................................              541430                 1   Revenue ............    $7,500,000
                                                  Administrative Management and General Management Consulting Services .............................                                                   541611                 1   Revenue ............   $15,000,000
                                                  Other Management Consulting Services ......................................................................................                          541618                 1   Revenue ............   $15,000,000
                                                  All Other Professional, Scientific and Technical Services ............................................................                               541990                 1   Revenue ............   $15,000,000
                                                  Landscaping Services ...................................................................................................................             561730                 1   Revenue ............    $7,500,000
                                                  All Other Miscellaneous Schools and Instruction .........................................................................                            611699                 1   Revenue ............   $11,000,000
                                                  Emergency and Other Relief Services ..........................................................................................                       624230                 1   Revenue ............   $32,500,000
                                                  Fitness and Recreational Sports Centers .....................................................................................                        713940                 1   Revenue ............    $7,500,000
                                                  RV (Recreational Vehicle) Parks and Campgrounds ...................................................................                                  721211                 1   Revenue ............    $7,500,000
                                                  Civic and Social Organizations .....................................................................................................                 813410                 1   Revenue ............    $7,500,000



                                                     Revenue Impacts of the Final Rule. To                                           final rule in Year 1. Coast Guard does                                     (rounded). In Years 2 through 10, the
                                                  determine the impacts of the final rule                                            not have information on the market                                         Coast Guard estimates there are 19,009
                                                  on small monohull manufacturers, we                                                share of the small entity manufacturers                                    outboard boats affected, at an average of
                                                  used information on revenues or                                                    and the number of boats they produce                                       about 13 outboard boats per
                                                  employee size as available on business                                             each year. Therefore, we assume each                                       manufacturer (19,009 boats divided by
                                                  directory Web sites.13                                                             manufacturer consistently produces the                                     1,427 manufacturers, rounded). At an
                                                     As discussed in the ‘‘Cost to Industry’’                                        same number of boats each year and that                                    estimated cost of $50 per outboard boat,
                                                  section of the RA, we estimate that there                                          each manufacturer has the same market                                      the average total cost per manufacturer
                                                  are 17,916 outboard boats less than 20
                                                                                                                                     share. With 1,427 affected U.S.                                            is $650 in Years 1 through 10. Table 8
                                                  feet produced by manufacturers
                                                                                                                                     companies, this is an average of about                                     summarizes the average costs per
                                                  annually that will require additional
                                                                                                                                     13 outboard boats per manufacturer                                         manufacturer of the final rule by year.
                                                  flotation materials to align with this

                                                                                                               TABLE 8—FINAL RULE AVERAGE COSTS PER MANUFACTURER
                                                                                                                                                                                                 Average outboard
                                                                                                                          Affected outboard                   Manufacturers not                                        Cost per outboard          Average cost per
                                                                             Year(s)                                                                                                             boats produced by
                                                                                                                                boats                          in compliance                                                 boats                 manufacturer
                                                                                                                                                                                                   manufacturer

                                                  1 .............................................................                             17,916                               1,427                          13                     $50                   $650
                                                  2–10 .......................................................                                19,009                               1,427                          13                      50                    650



                                                    Next, we compared the average cost                                               found revenue information for 371 of                                       the revenues for the 14 entities with
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                                                  per manufacturer to the revenue of the                                             these small entities, and we were only                                     only employee data. Table 9
                                                  manufacturers in our sample. As shown                                              able to find employee data for 14                                          summarizes the results. In Years 1
                                                  in Table 6, we found revenue or                                                    entities. Therefore, we could not                                          through 10, 94.6 percent of the affected
                                                  company data for 385 small entities. We                                            compare the cost per manufacturer to                                       manufacturers will incur a cost of 1

                                                    13 As indicated by either the revenue or employee                                (www.referenceusagov.com) and Manta
                                                  data for businesses, we use ReferenceUSA                                           (www.manta.com).



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                                                  49744                     Federal Register / Vol. 82, No. 207 / Friday, October 27, 2017 / Rules and Regulations

                                                  percent or less of revenue in any given                                     impact of greater than 10 percent of
                                                  year, while 0.3 percent will incur a cost                                   revenue.

                                                                                                                            TABLE 9—FINAL RULE REVENUE IMPACTS
                                                                                                                                                                                                                         Number of        Percent of
                                                                                                                        Impact range                                                                                      affected         affected
                                                                                                                                                                                                                        manufacturers    manufacturers

                                                  0% < Impact ≤ 1% .......................................................................................................................................                         352              94.9
                                                  1% < Impact ≤ 3% .......................................................................................................................................                          17               4.6
                                                  3% < Impact ≤ 5% .......................................................................................................................................                           1               0.3
                                                  5% < Impact ≤ 10% .....................................................................................................................................                            0                 0
                                                  ≥ 10% ...........................................................................................................................................................                  1               0.3

                                                        Total ......................................................................................................................................................               371                100



                                                    5. A description of the projected                                         employees of the Coast Guard, call 1–                                            Congress directed the Coast Guard to
                                                  reporting, recordkeeping and other                                          888–REG–FAIR (1–888–734–3247).                                                ‘‘establish minimum safety standards for
                                                  compliance requirements of the rule,                                                                                                                      recreational vessels’’ (46 U.S.C. 4302).
                                                                                                                              C. Assistance for Small Entities
                                                  including an estimate of the classes of                                                                                                                   This rulemaking revises regulations
                                                  small entities which will be subject to                                       Under section 213(a) of the Small                                           issued pursuant to that statute and
                                                  the requirement and the type of                                             Business Regulatory Enforcement                                               Congress has expressly limited States
                                                  professional skills necessary for                                           Fairness Act of 1996, Public Law 104–                                         from regulating in this field, as specified
                                                  preparation of the report or record.                                        121, we offered to assist small entities                                      in 46 U.S.C. 4306. Under 46 U.S.C.
                                                    This rule calls for no new collection                                     in understanding this rule so that they
                                                                                                                                                                                                            4306, ‘‘a State or political subdivision of
                                                  of information under the Paperwork                                          could better evaluate its effects on them
                                                                                                                                                                                                            a State may not establish, continue in
                                                  Reduction Act of 1995, 44 U.S.C. 3501–                                      and participate in the rulemaking. The
                                                                                                                                                                                                            effect, or enforce a law or regulation
                                                  3520.                                                                       Coast Guard will not retaliate against
                                                                                                                              small entities that question or complain                                      establishing a recreational vessel or
                                                    6. A description of the steps the                                                                                                                       associated or equipment performance or
                                                  agency has taken to minimize the                                            about this rule or any policy or action
                                                                                                                              of the Coast Guard.                                                           other safety standard . . . that is not
                                                  significant economic impact on small                                                                                                                      identical to a regulation prescribed
                                                                                                                                Small businesses may send comments
                                                  entities consistent with the stated                                                                                                                       under’’ 46 U.S.C. 4302. As a result,
                                                                                                                              on the actions of Federal employees
                                                  objectives of applicable statutes,                                                                                                                        States or local governments are
                                                                                                                              who enforce, or otherwise determine
                                                  including a statement of the factual,                                                                                                                     expressly prohibited from regulating
                                                                                                                              compliance with, Federal regulations to
                                                  policy, and legal reasons for selecting                                                                                                                   within this category unless the
                                                                                                                              the Small Business and Agriculture
                                                  the alternative adopted in the final rule
                                                                                                                              Regulatory Enforcement Ombudsman                                              regulation is identical to regulation
                                                  and why each one of the other
                                                                                                                              and the Regional Small Business                                               prescribed under 46 U.S.C. 4302 or an
                                                  significant alternatives to the rule
                                                                                                                              Regulatory Fairness Boards. The                                               exemption is granted under 46 U.S.C.
                                                  considered by the agency which affect
                                                                                                                              Ombudsman evaluates these actions                                             4305. Therefore, the rule is consistent
                                                  the impact on small entities was
                                                                                                                              annually and rates each agency’s                                              with the principles of federalism and
                                                  rejected.
                                                                                                                              responsiveness to small business. If you                                      preemption requirements in Executive
                                                    This final rule implements section                                        wish to comment on actions by
                                                  308 of CGAA. The CGAA mandates the                                                                                                                        Order 13132.
                                                                                                                              employees of the Coast Guard, call 1–
                                                  update of Table 4 in 33 CFR part 183.                                       888–REG–FAIR (1–888–734–3247).                                                F. Unfunded Mandates Reform Act
                                                  As such, the Coast Guard has no
                                                  discretion to offer alternatives that                                       D. Collection of Information                                                    The Unfunded Mandates Reform Act
                                                  minimize the impact on small entities                                         This rule calls for no new collection                                       of 1995, 2 U.S.C. 1531–1538, requires
                                                  while accomplishing the stated                                              of information under the Paperwork                                            Federal agencies to assess the effects of
                                                  objective of the statute. To ease                                           Reduction Act of 1995, 44 U.S.C. 3501–                                        their discretionary regulatory actions. In
                                                  implementation of this requirement, the                                     3520.                                                                         particular, the Act addresses actions
                                                  Coast Guard is delaying the effective                                                                                                                     that may result in the expenditure by a
                                                  date until June 1, 2018, so that the new                                    E. Federalism                                                                 State, local, or tribal government, in the
                                                  requirements will apply only to boat                                           A rule has implications for federalism                                     aggregate, or by the private sector of
                                                  manufacturers who build boats after that                                    under Executive Order 13132                                                   $100,000,000 (adjusted for inflation) or
                                                  date.                                                                       (‘‘Federalism’’), if it has a substantial                                     more in any one year. Though this rule
                                                    Small businesses may send comments                                        direct effect on the States, on the                                           will not result in such an expenditure,
                                                  on the actions of Federal employees                                         relationship between the national                                             we do discuss the effects of this rule
                                                  who enforce, or otherwise determine                                         government and the States, or on the                                          elsewhere in this preamble.
                                                  compliance with, Federal regulations to                                     distribution of power and
asabaliauskas on DSKBBXCHB2PROD with RULES




                                                  the Small Business and Agriculture                                          responsibilities among the various                                            G. Taking of Private Property
                                                  Regulatory Enforcement Ombudsman                                            levels of government. We have analyzed
                                                  and the Regional Small Business                                             this rule under E.O. 13132 and have                                              This rule will not cause a taking of
                                                  Regulatory Fairness Boards. The                                             determined that it is consistent with the                                     private property or otherwise have
                                                  Ombudsman evaluates these actions                                           fundamental federalism principles and                                         taking implications under E.O. 12630
                                                  annually and rates each agency’s                                            requirements described in Executive                                           (‘‘Governmental Actions and
                                                  responsiveness to small business. If you                                    Order 13132. Our analysis is explained                                        Interference with Constitutionally
                                                  wish to comment on actions by                                               below.                                                                        Protected Property Rights’’).


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                                                                    Federal Register / Vol. 82, No. 207 / Friday, October 27, 2017 / Rules and Regulations                                         49745

                                                  H. Civil Justice Reform                                 which guide the Coast Guard in                        exemption from the requirement of a
                                                    This rule meets applicable standards                  complying with the National                           tolerance. This regulation eliminates the
                                                  in sections 3(a) and 3(b)(2) of E.O.                    Environmental Policy Act of 1969 (42                  need to establish a maximum
                                                  12988, (‘‘Civil Justice Reform’’), to                   U.S.C. 4321–4370f), and have concluded                permissible level for residues of Bacillus
                                                  minimize litigation, eliminate                          that this action is one of a category of              amyloliquefaciens strain F727 under
                                                  ambiguity, and reduce burden.                           actions which do not individually or                  FFDCA.
                                                                                                          cumulatively have a significant effect on
                                                  I. Protection of Children                               the human environment. This final rule                DATES: This regulation is effective
                                                                                                          is categorically excluded under section               October 27, 2017. Objections and
                                                     We have analyzed this rule under E.O.
                                                                                                          2.B.2, figure 2–1, paragraphs (34)(d) and             requests for hearings must be received
                                                  13045 (‘‘Protection of Children from
                                                                                                          (e) of the Instruction and under section              on or before December 26, 2017, and
                                                  Environmental Health Risks and Safety
                                                                                                          6(a) of the ‘‘Appendix to National                    must be filed in accordance with the
                                                  Risks’’). This rule is not an
                                                                                                          Environmental Policy Act: Coast Guard                 instructions provided in 40 CFR part
                                                  economically significant rule and would
                                                                                                          Procedures for Categorical Exclusions,                178 (see also Unit I.C. of the
                                                  not create an environmental risk to
                                                                                                                                                                SUPPLEMENTARY INFORMATION).
                                                  health or risk to safety that might                     Notice of Final Agency Policy’’ (67 FR
                                                  disproportionately affect children.                     48243, July 23, 2002). This final rule                ADDRESSES:    The docket for this action,
                                                                                                          involves the safe loading capacity and                identified by docket identification (ID)
                                                  J. Indian Tribal Governments                            required amount of flotation material for             number EPA–HQ–OPP–2016–0348, is
                                                     This rule does not have tribal                       certain recreational boats, which                     available at http://www.regulations.gov
                                                  implications under E.O. 13175                           concerns equipping of vessels, as well                or at the Office of Pesticide Programs
                                                  (‘‘Consultation and Coordination with                   as equipment and vessel operation                     Regulatory Public Docket (OPP Docket)
                                                  Indian Tribal Governments’’), because it                safety standards. This rule supports the              in the Environmental Protection Agency
                                                  would not have a substantial direct                     Coast Guard’s maritime safety mission.                Docket Center (EPA/DC), West William
                                                  effect on one or more Indian tribes, on                 A Record of Environmental                             Jefferson Clinton Bldg., Rm. 3334, 1301
                                                  the relationship between the Federal                    Consideration (REC) supporting this                   Constitution Ave. NW., Washington, DC
                                                  Government and Indian tribes, or on the                 determination is available in the docket              20460–0001. The Public Reading Room
                                                  distribution of power and                               as discussed in the ADDRESSES section of              is open from 8:30 a.m. to 4:30 p.m.,
                                                  responsibilities between the Federal                    this rule.                                            Monday through Friday, excluding legal
                                                  Government and Indian tribes.                                                                                 holidays. The telephone number for the
                                                                                                          List of Subjects in 33 CFR Part 183
                                                  K. Energy Effects                                                                                             Public Reading Room is (202) 566–1744,
                                                                                                            Marine safety.                                      and the telephone number for the OPP
                                                     We have analyzed this rule under E.O.                ■ For the reasons discussed in the                    Docket is (703) 305–5805. Please review
                                                  13211 (‘‘Actions Concerning                             preamble, the interim rule amending 33                the visitor instructions and additional
                                                  Regulations That Significantly Affect                   CFR part 183 that was published at 82                 information about the docket available
                                                  Energy Supply, Distribution, or Use’’).                 FR 16512 on April 5, 2017, is adopted                 at http://www.epa.gov/dockets.
                                                  We have determined that it is not a                     as a final rule without change.
                                                  ‘‘significant energy action’’ under that                                                                      FOR FURTHER INFORMATION CONTACT:
                                                  order because it is not a ‘‘significant                   Dated: October 23, 2017.                            Robert McNally, Biopesticides and
                                                  regulatory action’’ under E.O. 12866 and                Jennifer F. Williams,                                 Pollution Prevention Division (7511P),
                                                  is not likely to have a significant                     Captain, U.S. Coast Guard, Director of                Office of Pesticide Programs,
                                                  adverse effect on the supply,                           Inspections and Compliance.                           Environmental Protection Agency, 1200
                                                  distribution, or use of energy.                         [FR Doc. 2017–23384 Filed 10–26–17; 8:45 am]          Pennsylvania Ave. NW., Washington,
                                                                                                          BILLING CODE 9110–04–P                                DC 20460–0001; main telephone
                                                  L. Technical Standards                                                                                        number: (703) 305–7090; email address:
                                                     The National Technology Transfer                                                                           BPPDFRNotices@epa.gov.
                                                  and Advancement Act, codified as a                      ENVIRONMENTAL PROTECTION                              SUPPLEMENTARY INFORMATION:
                                                  note to 15 U.S.C. 272, directs agencies                 AGENCY
                                                  to use voluntary consensus standards in                                                                       I. General Information
                                                  their regulatory activities unless the                  40 CFR Part 180                                       A. Does this action apply to me?
                                                  agency provides Congress, through
                                                                                                          [EPA–HQ–OPP–2016–0348; FRL–9968–40]
                                                  OMB, with an explanation of why using                                                                            You may be potentially affected by
                                                  these standards would be inconsistent                   Bacillus amyloliquefaciens Strain                     this action if you are an agricultural
                                                  with applicable law or otherwise                        F727; Exemption From the                              producer, food manufacturer, or
                                                  impractical. Voluntary consensus                        Requirement of a Tolerance                            pesticide manufacturer. The following
                                                  standards are technical standards (e.g.,                                                                      list of North American Industrial
                                                  specifications of materials, performance,               AGENCY:  Environmental Protection                     Classification System (NAICS) codes is
                                                  design, or operation; test methods;                     Agency (EPA).                                         not intended to be exhaustive, but rather
                                                  sampling procedures; and related                        ACTION: Final rule.                                   provides a guide to help readers
                                                  management systems practices) that are                                                                        determine whether this document
                                                  developed or adopted by voluntary                       SUMMARY:   This regulation establishes an             applies to them. Potentially affected
                                                  consensus standards bodies.                             exemption from the requirement of a                   entities may include:
asabaliauskas on DSKBBXCHB2PROD with RULES




                                                     This rule uses a voluntary consensus                 tolerance for residues of Bacillus                       • Crop production (NAICS code 111).
                                                  standard: The current ABYC S–30.                        amyloliquefaciens strain F727 in or on
                                                                                                          all food commodities when used in                        • Animal production (NAICS code
                                                  M. Environment                                          accordance with label directions and                  112).
                                                    We have analyzed this rule under                      good agricultural practices. Marrone Bio                 • Food manufacturing (NAICS code
                                                  Department of Homeland Security                         Innovations submitted a petition to EPA               311).
                                                  Management Directive 023–01 and                         under the Federal Food, Drug, and                        • Pesticide manufacturing (NAICS
                                                  Commandant Instruction M16475.lD,                       Cosmetic Act (FFDCA), requesting an                   code 32532).


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Document Created: 2017-10-27 02:06:37
Document Modified: 2017-10-27 02:06:37
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
DatesThis final rule is effective on June 1, 2018.
ContactFor information about this document call or email Mr. Jeffrey Ludwig, Coast Guard; telephone 202-372-1061, email [email protected]
FR Citation82 FR 49737 
RIN Number1625-AC37

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