82_FR_52202 82 FR 51986 - Cranes and Derricks in Construction: Operator Certification Extension

82 FR 51986 - Cranes and Derricks in Construction: Operator Certification Extension

DEPARTMENT OF LABOR
Occupational Safety and Health Administration

Federal Register Volume 82, Issue 216 (November 9, 2017)

Page Range51986-51998
FR Document2017-24349

OSHA is delaying its deadline for employers to ensure that crane operators are certified by one year until November 10, 2018. OSHA is also extending its employer duty to ensure that crane operators are competent to operate a crane safely for the same one-year period.

Federal Register, Volume 82 Issue 216 (Thursday, November 9, 2017)
[Federal Register Volume 82, Number 216 (Thursday, November 9, 2017)]
[Rules and Regulations]
[Pages 51986-51998]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-24349]


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DEPARTMENT OF LABOR

Occupational Safety and Health Administration

29 CFR Part 1926

[Docket ID-OSHA-2007-0066]
RIN 1218-AC96


Cranes and Derricks in Construction: Operator Certification 
Extension

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

ACTION: Final rule.

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SUMMARY: OSHA is delaying its deadline for employers to ensure that 
crane operators are certified by one year until November 10, 2018. OSHA 
is also extending its employer duty to ensure that crane operators are 
competent to operate a crane safely for the same one-year period.

DATES: This final rule is effective on November 9, 2017.

ADDRESSES: In accordance with 28 U.S.C. 2112(a)(2), the Agency 
designates Ann Rosenthal, Associate Solicitor of Labor for Occupational 
Safety and Health, Office of the Solicitor, Room S-4004, U.S. 
Department of Labor, 200 Constitution Avenue NW., Washington, DC 20210, 
to receive petitions for review of the final rule.

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

SUPPLEMENTARY INFORMATION:

I. Background

A. Introduction

    OSHA is publishing this final rule to further extend by one year 
the employer duty to ensure the competency of crane operators involved 
in construction work. Previously this duty was scheduled to terminate 
on November 10, 2017, but now continues until November 10, 2018. OSHA 
also is further delaying the deadline for crane operator certification 
for one year from November 10, 2017, to November 10, 2018. As explained 
in more detail in the following Regulatory Background section, the 
extension and delay are necessary to provide sufficient time for OSHA 
to complete a related rulemaking to address issues with its existing 
Cranes and Derricks in Construction standard (29 CFR part 1926, subpart 
CC, referred to as ``the crane standard'' hereafter) (75 FR 47905).
    In establishing the effective date of this action, the Agency finds 
good cause pursuant to 5 U.S.C. 553(d)(3) of the Administrative 
Procedure Act that this rule be made effective on November 9, 2017, 
rather than delaying the effective date for 30 days after publication. 
The basis for this finding is that it is unnecessary to delay this 
effective date to provide an additional period of time for employers to 
comply with a new requirement because OSHA is extending the status quo. 
This final rule establishes no new burdens on the regulated community; 
rather, it further delays implementation of the crane operator 
certification requirements in the crane standard and further extends 
the employer duty in the crane standard to ensure the competency of 
crane operators, a duty that employers have been required to comply 
with since publication of the crane standard in 2010.

[[Page 51987]]

    OSHA also concludes that delaying the effective date of this 
extension rulemaking beyond November 9, 2017, would be contrary to the 
public interest and would significantly disrupt the construction 
industry. If the extension does not go into effect on November 9, 2017, 
the crane operator certification requirements in the 2010 crane 
standard would go into effect and the employer duty in the crane 
standard to ensure crane operator competency would end. As the Agency 
notes below in Section II.A (Extension of operator certification 
deadline), there is evidence in the record that many crane operators in 
the construction industry do not have the certification required by the 
crane standard and would be out of compliance with the standard. This 
would not be offset through the employer duty to ensure crane operator 
competency because that duty would no longer exist. Therefore, OSHA 
concludes that it is in the public interest to avoid such disruption by 
having this extension go into effect by November 9, 2017. Finally, OSHA 
notes that by delaying the operator certification deadline, OSHA is 
temporarily relieving the regulated community of a compliance duty, 
which under 5 U.S.C. 553(d)(1) is a separate basis for allowing a rule 
to become effective in less than 30 days.
    By delaying the deadline for employers to ensure that crane 
operators are certified until November 10, 2018, and by extending the 
employer duty to ensure that crane operators are competent until that 
same date, this rule will avoid disrupting the construction industry 
and allow OSHA time to complete a related crane standard rulemaking 
that will address these and other issues.
    In this preamble, OSHA cites to documents in Docket No. OSHA-2007-
0066, the docket for this rulemaking. To simplify these document cites, 
they start with ``ID'' followed by the last four digits of their full 
docket identification number. For example, if a document's full docket 
identification number is ID-OSHA-2007-0066-1234, the cite used in this 
preamble would be ID-1234. The docket is available at http://www.regulations.gov, the Federal eRulemaking Portal.

B. Summary of Economic Impact

    This final rule is not economically significant. OSHA is revising 
29 CFR 1926.1427(k) (competency assessment and training) to delay the 
deadline for compliance with the operator-certification requirement in 
the crane standard for one year, and to extend the existing employer 
duty to ensure crane operator competency for the same period. OSHA's 
final economic analysis shows that delaying the date for operator 
certification and extending the employer's assessment of crane operator 
competency, rather than following the current crane standard, will 
result in a net cost savings for the affected industries. Delaying the 
compliance date for operator certification results in estimated cost 
savings that exceed the estimated new costs for employers to continue 
to assess crane operators to ensure their competent operation of the 
equipment in accordance with Sec.  1926.1427(k). The detailed final 
economic analysis is in the ``Agency Determinations'' section of this 
preamble.

C. Regulatory Background

1. Operator Certification Options
    On August 9, 2010, OSHA published the final crane standard. OSHA 
developed the standard through a negotiated rulemaking process. The 
Agency established a Federal advisory committee, the Cranes and 
Derricks Negotiated Rulemaking Advisory Committee (C-DAC), to develop a 
draft proposed rule. C-DAC met in 2003 and 2004 and developed a draft 
proposed rule (which included the provisions concerning crane operator 
certification at issue in this rulemaking) that it provided to OSHA.
    The Agency initiated a Small Business Advocacy Review Panel in 2006 
and published the proposed rule for cranes in construction on October 
9, 2008 (73 FR 59713). It closely followed C-DAC's draft proposal (73 
FR 59718). OSHA received public comment on the proposal, and conducted 
a public hearing. Among many other provisions, OSHA's 2010 final rule 
incorporated, with minor changes, the four-option certification scheme 
that C-DAC had recommended and the Agency had proposed. Accordingly, in 
Sec.  1926.1427, OSHA requires employers to ensure that their crane 
operators complete at least one of the following:
    Option 1. Certification by an independent testing organization 
accredited by a nationally recognized accrediting organization;
    Option 2. Qualification by an employer's independently audited 
program;
    Option 3. Qualification by the U.S. military; or
    Option 4. Compliance with qualifying State or local licensing 
requirements (mandatory when applicable).
    The third-party certification option in Sec.  1926.1427(b)--Option 
1--is the only certification option that is ``portable,'' meaning any 
employer who employs an operator may rely on that operator's 
certification as evidence of compliance with the crane standard's 
operator certification requirement. This certification option also is 
the only one available to all employers; it is the option OSHA, and the 
parties that participated in the rulemaking, believed would be the one 
most widely used. In this regard, OSHA is not aware of an audited 
employer qualification program among construction industry employers 
(Option 2), and the crane standard limits the U.S. military crane 
operator certification programs (Option 3) to Federal employees of the 
Department of Defense or the armed services. While State and local 
governments certify some crane operators (Option 4), the vast majority 
of operators who become certified do so through Option 1--by third-
party testing organizations accredited by a nationally recognized 
accrediting organization.
    Under Option 1, an independent testing organization tests crane 
operators to determine if they warrant certification. Before a testing 
organization can issue operator certifications, Sec.  1926.1427(b)(1) 
of the crane standard provides that a nationally recognized accrediting 
organization must accredit the testing organizations. To accredit a 
testing organization, the accrediting agency must determine that the 
testing organization meets industry-recognized criteria for written 
testing materials, practical examinations, test administration, 
grading, facilities and equipment, and personnel. The testing 
organization must administer written and practical tests that:
     Assess the operator's knowledge and skills regarding 
subjects specified in the crane standard;
     provide different levels of certification based on 
equipment capacity and type;
     have procedures to retest applicants who fail; and
     have testing procedures for recertification.
    Section 1926.1427(b)(2) of the crane standard also specifies that, 
for the purposes of compliance with the crane standard, an operator is 
deemed qualified to operate a particular piece of equipment only if the 
operator is certified for that type and capacity of equipment or for 
higher-capacity equipment of that type. It further provides that, if no 
testing organization offers certification examinations for a particular 
equipment type and/or capacity, the operator is deemed qualified to 
operate that equipment if the operator is certified for the type/

[[Page 51988]]

capacity of equipment that is most similar to that equipment, and for 
which a certification examination is available.
2. Overview of Sec.  1926.1427(k) (Phase-In Provision)
    The crane standard published in 2010 replaced provisions in 29 CFR 
part 1926, subpart N--Cranes, Derricks, Hoists, Elevators, and 
Conveyors, of the construction safety standards. OSHA delayed the 
deadline for the operator certification requirement for four years, 
until November 10, 2014 (see Sec.  1926.1427(k)(1)). During this four-
year ``phase-in'' period, the crane standard imposed an employer duty 
to ensure that crane operators could safely operate equipment (see 
Sec.  1926.1727(k), Phase-in). Thus, pursuant to Sec.  
1926.1427(k)(2)(i), OSHA required employers to ``ensure that operators 
of equipment covered by this standard are competent to operate the 
equipment safely.'' Under Sec.  1926.1427(k)(2)(ii), employers must 
train and evaluate the operator when the operator ``assigned to operate 
machinery does not have the required knowledge or ability to operate 
the equipment safely.''
3. Post-Final Rule Developments
    After OSHA issued the crane standard, it continued to receive 
feedback from members of the regulated community and conducted 
stakeholder meetings on April 2 and 3, 2013, to give interested members 
of the public the opportunity to express their views. Participants 
included construction contractors, labor unions, crane manufacturers, 
crane rental companies, accredited testing organizations, one of the 
accrediting bodies, insurance companies, crane operator trainers, and 
military employers. Detailed notes of participants' comments are 
available at ID-0539. Various parties informed OSHA that, in their 
opinion, the operator certification option would not adequately ensure 
that crane operators could operate their equipment safely at a 
construction site. They said that a certified operator would need 
additional training, experience, and evaluation, beyond the training 
and evaluation required to obtain certification, to ensure that he or 
she could operate a crane safely.
    OSHA also received information that two (of a total of four) 
accredited testing organizations have been issuing certifications only 
by ``type'' of crane, rather than offering different certifications by 
``type and capacity'' of crane, as the crane standard requires. The two 
organizations later confirmed this (ID-0521, p. 109 and 246). As a 
result, those certifications do not meet the standard's requirements 
and operators who obtained certifications only from those organizations 
could not, under OSHA's crane standard, operate cranes on construction 
sites after November 10, 2014. Some stakeholders in the crane industry 
requested that OSHA remove the capacity requirement.
    Most of the participants in the stakeholder meetings expressed the 
opinion that an operator's certification by an accredited testing 
organization did not mean that the operator was fully competent or 
experienced to operate a crane safely on a construction work site. The 
participants likened operator certification to a new driver's license, 
or a learner's permit, to drive a car. Most participants said that the 
operator's employer should retain the responsibility to ensure that the 
operator was qualified for the particular crane work assigned. Some 
participants wanted certification to be, or viewed to be, sufficient to 
operate a crane safely. Stakeholders noted that operator certification 
was beneficial in establishing a minimum threshold of operator 
knowledge and familiarity with cranes.

D. Initial Extension of the Employer Assessment Duties and Deadline for 
Operator Certification

    On February 10, 2014, OSHA published a proposal to delay the 
deadline for operator certification by three additional years to 
November 10, 2017, and to extend the existing employer duty to ensure 
crane operator competency for the same period (79 FR 7611). OSHA 
conducted a public hearing on May 19, 2014. Representatives of the 
construction industry reiterated that requiring the certification of 
all operators and supplanting the employer duty would not ensure the 
competency of crane operators to safely operate cranes to do 
construction work. A representative of one of the testing organizations 
that certifies by capacity (and who had previously opposed removing the 
capacity requirement) conceded that OSHA should undergo a rulemaking to 
consider removing capacity from certification requirements.
    On September 26, 2014, OSHA published a final rule that delayed the 
operator certification deadline and extended the existing employer duty 
for three years to November 10, 2017, to provide time for OSHA to 
consider what regulatory approach it should take (79 FR 57785).

E. Consulting ACCSH--Draft Proposal for Revised Crane Operator 
Requirements

    With the additional three-year extension in place, OSHA began work 
on a rulemaking to address the issues raised by stakeholders. On March 
31 and April 1, 2015, the Agency consulted with the Advisory Committee 
on Construction Safety and Health (ACCSH) to solicit feedback from 
industry stakeholders on the draft regulatory text for a revised 
operator certification standard.\1\ Prior to the meeting, OSHA made 
available the draft regulatory text,\2\ an overview of the draft 
regulatory text,\3\ and a summary of the site visits with 
stakeholders.\4\ OSHA received many comments and suggestions for 
revising the regulatory text at the ACCSH meeting. Since that meeting, 
the Agency has worked to re-draft the regulatory text and preamble for 
the proposed rule. To ensure the Agency has enough time to propose and 
finalize the rulemaking, OSHA proposed this one-year extension of the 
certification requirement compliance date (82 FR 41184 (Aug. 30, 
2017)). As with the previous extensions, OSHA also proposed an 
extension of the existing employer assessment duty for the same time 
period (Id.). OSHA requested public comment on these proposals.
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    \1\ Transcript for March 31: https://www.osha.gov/doc/accsh/transcripts/accsh_20150331.pdf; transcript for April 1: https://www.osha.gov/doc/accsh/transcripts/accsh_20150401.pdf.
    \2\ https://www.osha.gov/doc/accsh/accshcrane.pdf.
    \3\ https://www.osha.gov/doc/accsh/proposed_crane.html.
    \4\ https://www.osha.gov/doc/accsh/summary_crane.html.
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II. Summary and Explanation of the Final Rule

    Commenters in their written remarks on the proposal to delay the 
operator certification deadline and extend the existing employer duty 
to November 10, 2018 focused on three issues arising from the Agency's 
proposed changes: (1) Whether to delay the date for crane operators to 
be certified; (2) whether to extend the employer duty to ensure crane 
operators are competent and safe; and (3) the length of time of an 
extension. This section examines these issues--in the order above--by 
first summarizing the comments and then explaining the Agency's 
decisions and determinations based on the record as a whole.

[[Page 51989]]

A. Extension of Operator Certification Deadline

    The majority of commenters supported the Agency's proposed 
extension of the deadline for crane operators to be certified (ID-0545, 
0561, 0563, 0566, 0572-575, 0578-582, 0584-585, 0588-597, 0599-614, 
0617-618, 0621, 0624-627, 0632-640, 0642-643, 0645-647, 0651, 0653, 
0656-660, 0662-664, 0666-667). Most agreed that an extension was 
necessary to give OSHA time to address the issues regarding crane 
operation raised after publication of the crane standard: Whether to 
remove capacity from the crane standard's certification requirements 
and the preservation of the employer's role in assessing operators for 
safe crane operation (ID-0561, 0563, 0578, 0597, 0604, 0618, 0632, 
0636, 0640, 0646-647, 0650-651, 0656, 0658, 0667). The National 
Commission for the Certification of Crane Operators (NCCCO) supports 
this rule ``only in response to OSHA's stated need to address these two 
issues.'' (ID-0632). In support of the extension, The International 
Union of Operating Engineers (IUOE) stated that they along with 
``contractors, insurers, trade associations, and third-party 
certification bodies agree on the problems OSHA has identified . . . 
that OSHA's `deemed qualified' language eliminates the employer's duty 
. . .'' and ``that certification by `capacity' should be eliminated 
from the regulatory requirements.'' (ID-0651). They conclude that 
``[t]here is widespread agreement in the industry regarding the 
necessity to postpone implementation of these two elements of the rule 
in order to correct them.'' (Id.).
    Some commenters asked OSHA to delay the compliance date of the 
certification requirements in order to alleviate confusion that exists 
in the industry regarding the crane operator certification 
requirements. (ID-0604, 0606, 0642, 0647, 0650-651). In support of the 
extension, the IUOE asked OSHA to ``move quickly to eliminate the cloud 
of uncertainty that has hung over this key safety measure for over a 
decade.'' (ID-0651). Edison Electrical Institute hopes that ``OSHA 
works to clarify and formulate the necessary requirements for operator 
certification and qualification under the final rule'' as ``[t]here are 
still many questions that require answers on the certification process 
and granting this extension will enable OSHA to continue its work with 
impacted parties to ensure compliance is met and clarity is achieved.'' 
(ID-0642). Imperial Crane Services, Inc., and the Chicago Crane Owners 
Association support the extension ``so that crane operator's 
proficiency/qualification can be further clarified in the existing 
cranes and derrick standard.'' (ID-0604).
    Commenters were also very concerned that without an extension of 
the operator certification requirements and the employer's duty, there 
would be significant disruption to the construction industry. (ID-0561, 
0580, 0605, 0611, 0618, 0626-627, 0636, 0640, 0643, 0646, 0650). In the 
2014 extension, OSHA noted that the record indicated that roughly two-
thirds of certified operators were certified by one of the 
organizations that does not offer certification by capacity. Thus, some 
of the commenters observed that with a majority of certified operators 
possessing a certification by crane type only, many employers of crane 
operators would be in violation of operating a crane under OSHA 
requirements and barred from operating a crane without the possibility 
of being cited by OSHA. The Texas Crane Owners Association asserts that 
without an extension, ``the obligations under [the crane standard] will 
undoubtedly disrupt the construction industry by creating a large 
number of crane operators without compliant certification.'' (ID-0646). 
The Associated General Contractors of America agrees that failure to 
delay the compliance date ``could potentially result in significant 
disruptions in the construction industry with the number of crane 
operators in possession of certifications that would be deemed 
noncompliant if the November 10, 2017, effective date remains in 
place.'' (ID-0640). Similarly, The Associated Builders and Contractors, 
Inc., (ABC) commented that ``many in the construction industry believe 
that without an extension the industry will face a future crane 
operator shortage. For the industry to continue to perform work without 
disruption, it is important an extension is granted.'' (ID-0650). 
``[W]ithout the proposed extension there will be a significant 
disruption to the industry come November 10, 2017,'' commented North 
America's Building Trades Unions, continuing that ``many operators will 
no longer be able to operate certain cranes because their current 
certifications are not by crane capacity as currently called for in the 
rule.'' (ID-0618).
    Commenters opposed to the extension of the certification deadline 
expressed concern that it would lead to unsafe worksites. (ID-0557, 
0562/0665 (duplicate comments), 0571, 0577, 0620, 0629, 0644, 0649, 
0652). Jack Pitt of Murray State University commented that if OSHA 
delayed the compliance date, ``then safety would not be a priority,'' 
continuing that it was his opinion that requiring certification 
immediately ``would eliminate quite a number of fatalities and 
injuries. . . .'' (ID-0665 and 0562). Chas Scott of Murray State 
University commented that ``[t]he longer the rule is delayed, the more 
fatalities that are likely to occur.'' (ID-0557).\5\
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    \5\ This commenter misinterpreted OSHA's previous benefits 
estimate, which stated that the cranes standard would prevent 22 
fatalities per year, as meaning that the enforcement of the operator 
certification requirement would alone prevent that number of 
fatalities. But as OSHA noted in the 2014 extension in response to 
similar assertions, in calculating the benefits from fatalities 
prevented ``OSHA did not identify individual components of the 
standard, but rather calculated the benefits of the entire cranes 
standard as a whole. OSHA did not separately itemize benefits 
accruing from the operator certification requirements.'' (79 FR 
57788, footnote 2).
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    In making their arguments about the impact of the certification 
deadline extension on safety, several of these comments equated crane 
operator training and crane operator certification. (ID-0571, 0577, 
0620, 0629, 0644, 0649, 0652). OSHA had previously addressed the same 
issue in its 2014 extension, pointing out that for the requirements for 
crane operator training at 29 CFR 1926.1427(f), like the other 
provisions from the crane standard except certification, are currently 
in effect and would not be impacted by any extension (see 79 FR 57788). 
Employers currently have, and will continue to have, a responsibility 
to ensure crane operators they employ are trained according to that 
standard.
    Other comments in opposition of the extension stated that employers 
have had enough time to make sure that their operators are certified, 
meeting the certification requirements of the 2010 final rule. (ID-
0542, 0551, 0556, 0558, 0568, 0583, 0587, 0615-616, 0622-623, 0630-631, 
0652, 0661). An anonymous commenter stated that ``[s]afety conscious 
construction employers know or should have known of this new operator 
certification requirement and have been given a substantial amount of 
time to comply,'' (ID-0551). Another commenter noted that employers of 
crane operators ``have had seven years to get the new certification.'' 
(ID-0661).
    Based on the record as a whole, OSHA finds the arguments in favor 
of delaying the operator certification deadline to be more persuasive. 
OSHA shares the commenters' concerns about a potential disruption to 
the industry that might occur if the majority of certified operators 
currently hold a form of certification that would not comply

[[Page 51990]]

with OSHA's standard. The impact on the industry would be particularly 
unwarranted in light of OSHA's public disclosure to ACCSH during the 
committee's meeting on March 31 and April 1, 2015, that the Agency 
intends to propose removing the capacity component of certification, 
which is the sole reason that most of these operator certifications 
would not comply with OSHA's standard. OSHA also acknowledges the 
commenters' point that while there has been time for more operators to 
become certified, many employers may have delayed in requiring their 
employees to be certified while they waited for OSHA to clarify the 
criteria for the certification so that they could avoid spending funds 
on a certification that would not meet OSHA's standard. To the extent 
that the Agency's actions have contributed to this uncertainty, OSHA 
agrees that it would not be fair to penalize employers by enforcing the 
certification requirement before completing the separate rulemaking to 
change that criteria. The additional one-year extension will provide 
the Agency with the time it needs to address those concerns.

B. Extension of the Existing Employer Duty

    The commenters who specifically addressed the extension of the 
existing employer assessment duty were unanimous in supporting the 
extension to ensure that employers retained responsibility for ensuring 
that their operators are competent to operate cranes. All of the 
comments opposed to the one-year extension focused entirely on 
certification and did not mention the employer duty.
    The North America's Building Trades Union commented that ``without 
the proposed extension there would not be an employer duty to ensure 
operators can safely operate equipment, which not only puts the 
operator at risk of fatality or injury, but also puts all construction 
workers around the equipment at risk as well as the general public on 
certain construction projects.'' (ID-0618). The IUOE argues that even 
if certification is required, ``[c]ertification alone . . . is simply 
insufficient in the absence of subsequent employer qualification to 
ensure that a crane operator is qualified to safely operate the crane 
to which he or she is assigned.'' (ID-0651).
    While OSHA is not prepared to make a determination whether 
certification alone is insufficient as the IUOE claims, OSHA agrees 
that in order to ensure safe and competent crane operations during the 
one-year extension, the employer duty must also be extended. Without an 
extension of the employer duty, the standard would have no requirement 
to ensure that crane operators know how to operate the crane safely 
during the operator certification extension. Therefore it is important 
that the Agency extend the employer duty while it engages in subsequent 
rulemaking.

C. Length of the Extensions

    Having determined that it is appropriate to delay the certification 
deadline and extend the employer duty to ensure operator competence, 
the remaining issue is the length of the extension. In the NPRM, OSHA 
proposed delaying the operator certification deadline and extending the 
existing employer duty for one year, until November 10, 2018. OSHA 
requested comment on the duration of the extension.
    The majority of comments support OSHA's proposed extension of the 
deadline for crane operator certification and the employer duty for one 
year. (ID-0545, 0561, 0563, 0566, 0572-575, 0578, 0580-582, 0585, 0588-
600, 0602-605, 0607-614, 0617-618, 0621, 0624-627, 0632-640, 0642-643, 
0645-647, 0651, 0653, 0656-660, 0662-6664, 0666-667). Some of these 
comments recommend that OSHA move as quickly as possible to address 
these rules. (ID-0605, 0618, 0632, 0651, 0656). NCCCO agrees with the 
Agency's proposed extension and ``urges OSHA to act with all speed to 
ultimately issue its Final Rule well within the extension on this 
vitally important safety issue. . . .'' (ID-0632). Jonathan Branton of 
Murray State University commented that ``this issue does not need to be 
pushed back any further than one year'' and it is ``OSHA's 
responsibility to not allow this to be further extended.'' (ID-0605). 
The IUOE asked the Agency to ``[p]lease do everything in your power to 
ensure that OSHA completes the process by November 2018.'' (ID-0651).
    Additionally, OSHA received comments recommending an extension of 
three years and an indefinite extension until OSHA addresses the 
certification issues raised by stakeholders after publication of the 
2010 final cranes and derricks standard.
    The National Propane Gas Association (NPGA) recommended delaying 
the deadline for the certification requirement and extending the 
employer duty ``at least three years'', arguing that ``if three years 
was not an adequate amount of time'' to address certification issues 
raised by stakeholders, ``it is not reasonable to presume one year is 
sufficient.'' (ID-0648). The NPGA continues that ``[w]e are concerned 
that the short delay is indicative of the agency's intent to conduct an 
expedited process . . . . an accelerated rulemaking would be 
antithetical to the purpose and spirit of public engagement in the 
regulatory process.'' (ID-0648). The National Association of Home 
Builders recommends that OSHA delay the deadline for the certification 
requirements and extend the employer duty another three years or 
indefinitely, arguing that ``OSHA needs to ensure the certification 
procedures will actually improve safety'' and not allowing enough time 
to address certification issues ``only hurts the workers and the 
regulated community with continually changing deadlines and 
requirements.'' (ID-0598). ABC also recommended that both the deadline 
for the certification requirement be delayed and the employer duty be 
extended indefinitely as recommended by ACCSH in 2014, arguing that a 
one year delay ``will not provide a sufficient amount of time for OSHA 
to complete a further rulemaking. . . . Limiting the amount of time the 
agency has to complete the rulemaking could lead to rushed and unclear 
regulations.'' (ID-0650).
    While OSHA appreciates the concern of some stakeholders that a one-
year extension is an insufficient amount of time to address the issues 
raised by the industry after publication of the crane standard, OSHA is 
not persuaded an extension longer than one year is necessary. OSHA had 
not even decided whether to pursue rulemaking when it finalized the 
three-year extension in 2014. The Agency needed time to determine what 
regulatory approach would be appropriate for addressing the concerns 
raised by stakeholders after publication of the crane standard. (79 FR 
7613). OSHA took time to make site visits and spoke to over 40 industry 
representatives about crane operator certification and operator 
competency. Using this information, OSHA drafted regulatory text that 
it presented to a special meeting of ACCSH on March 31, and April 1, 
2015, where several stakeholders had the opportunity to provide 
feedback to the Agency.\6\ OSHA has taken the information from that 
meeting and worked to develop a proposed rule addressing stakeholders' 
concerns. OSHA has nearly completed that proposed rule and intends to 
publish it for public comment shortly.
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    \6\ Transcript for March 31: https://www.osha.gov/doc/accsh/transcripts/accsh_20150331.pdf; transcript for April 1: https://www.osha.gov/doc/accsh/transcripts/accsh_20150401.pdf.
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    OSHA is in a different point of the process than it was three years 
ago and is confident that it will be able to

[[Page 51991]]

complete the rulemaking within the year extension without curtailing 
the opportunity for stakeholders and the general public to participate 
fully in the rulemaking process.
    The Agency rejects the calls for an indefinite extension for the 
same reasons that it rejected them in 2014. Failing to specify a 
compliance deadline for operator certification is likely to result in 
greater, not less, confusion. In addition, if OSHA does not designate a 
fixed period after which the certification requirements would 
automatically take effect, the Agency may face additional legal 
challenges to reinstating them. Moreover, OSHA has already dedicated a 
significant amount of time and resources to implementing the existing 
standard, including conducting an extensive negotiated rulemaking 
process before requiring that employers ensure their crane operators 
are certified. The Agency therefore finds it prudent and efficient to 
maintain the status quo for one more year while it considers additional 
rulemaking.
    The Agency must balance the rationale for an additional extension 
against the concerns raised by the other commenters who point out that 
any unnecessary delay in the operator certification requirement could 
prevent the Agency from obtaining the full safety benefit of the cranes 
standard. For example, if OSHA delayed the operator certification 
requirement for another three years but completed its rulemaking within 
nine months, then delaying the certification deadline would be clearly 
excessive and needlessly delay safety benefits. OSHA believes that 
given the progress it has made developing a rule addressing 
stakeholders' concerns regarding operator certification, a one-year 
extension of both the deadline for the certification requirement and 
the employer duty is appropriate.
    Therefore, OSHA has decided to delay the operator certification 
deadline for one year, until November 10, 2018, and to extend the 
employer duty to ensure that crane operators are competent to operate a 
crane safely for the same one-year period, as it proposed. The Agency 
received no comment on the text of its proposed revision to Sec.  
1926.1427(k), and the final rule adopts the provision as proposed.

D. Comments Outside the Scope of This Rulemaking

    OSHA received comments to this rulemaking that, in part or in 
whole, asked the agency to consider alternatives and revisions to the 
certification requirements from the 2010 final rule. (ID-0544, 0546, 
0548, 0549, 0555, 0564, 0567, 0598, 0606, 0639, 0646, 0648, 0651, 0655, 
0658, 0660, 0663, 0667). These comments, although related to operator 
certification and the employer duty, are outside the scope of this 
rulemaking and the narrowly tailored issue OSHA proposed: Whether the 
deadline for the operator certification requirements should be delayed 
and whether the employer duty to ensure safe and competent crane 
operation should be extended by one year.

III. Agency Determinations

A. Final Economic Analysis and Regulatory Flexibility Analysis

    When it issued the final cranes rule in 2010, OSHA prepared a final 
economic analysis (2010 FEA) as required by the Occupational Safety and 
Health Act of 1970 (OSH Act; 29 U.S.C. 651 et seq.) and Executive 
Orders 12866 (58 FR 51735) (Sept. 30, 1993) and 13563 (76 FR 3821 (Jan. 
21, 2011)). OSHA also published a Final Regulatory Flexibility Analysis 
as required by the Regulatory Flexibility Act (5 U.S.C. 601-612). On 
September 26, 2014, the Agency included a separate FEA (2014 FEA) when 
it published a final rule delaying until November 10, 2017, the 
deadline for all crane operators to become certified, and extending the 
employer duty to ensure operator competency for the same period (79 FR 
57785). The preliminary economic analysis for this crane rule extension 
(2017 PEA) was based on these documents along with further analysis and 
is the basis for this final economic analysis (FEA). There were no 
comments submitted to the record in response to the 2017 PEA that 
included data that could alter OSHA's analysis; therefore, this FEA is 
substantially the same as the 2017 PEA.
    Because OSHA estimates this rule will have a cost savings for 
employers of $4.4 million using a discount rate of 3 percent for the 
one year of the extension, this final rule is not economically 
significant within the meaning of Executive Order 12866, or a major 
rule under the Unfunded Mandates Reform Act or Section 804 of the Small 
Business Regulatory Enforcement Fairness Act of 1996 (5 U.S.C. 801 et 
seq.).
    This FEA focuses solely on costs, and not on any changes in safety 
and benefits resulting from delaying the certification deadline and 
extending the employer duties under Sec.  1926.1427(k)(2). As OSHA 
noted in its proposal, the Agency previously provided its assessment of 
the benefits of the cranes standard in the 2010 FEA. OSHA did not 
receive any comment on this approach or any request for additional 
analysis of benefits. As noted elsewhere in this preamble, the primary 
rationale for this final rule is to maintain the status quo--including 
preservation of the employer duty to ensure that crane operators are 
competent--while providing OSHA additional time to conduct rulemaking 
on the crane operator requirements in response to stakeholder concerns.
    Extending the employer's requirement to ensure an operator's 
competency during this period means taking the same approach of the 
previous extension: Continuing measures in existence since OSHA 
published the crane standard in 2010. As OSHA stated in the preamble to 
the 2010 final rule, the interim measures in paragraph (k) ``are not 
significantly different from requirements that were effective under 
subpart N of this part at former Sec.  1926.550, Sec.  1926.20(b)(4) 
(`the employer shall permit only those employees qualified by training 
or experience to operate equipment and machinery'), and Sec.  
1926.21(b)(2) (`the employer shall instruct each employee in the 
recognition and avoidance of unsafe conditions . . .')'' (75 FR 48027).
    Delaying the operator certification requirement defers a regulatory 
requirement and produces cost savings for employers. There will, 
however, be continuing employer costs for extending the requirement to 
assess operators under existing Sec.  1926.1427(k)(2); if OSHA does not 
extend these requirements, they will expire in November 2017 and 
employers would not have these costs after 2017. With the extension, 
these continuing employer costs will be offset by a reduction in 
expenses that employers would otherwise have been required to incur to 
ensure that their operators are certified before the existing November 
2017 deadline.
Overview
    In the following analysis, OSHA examines costs and savings to 
determine the net economic effect of the rule. By comparing the 
additional assessment costs to the certification cost savings across 
two scenarios--scenario 1 in which there is no extension of the 2017 
deadline, and scenario 2 in which there is an extension until 2018--
OSHA estimates that the extension will produce a net savings for 
employers of $4.4 million per year using a discount rate of 3 percent 
($5.2 million per year using an interest rate of 7 percent).\7\
---------------------------------------------------------------------------

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

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[[Page 51992]]

    OSHA's analysis follows the steps below to reach its estimate of an 
annual net $4.4 million in savings:
    (1) Estimate the annual assessment costs for employers;
    (2) Estimate the annual certification costs for employers; and
    (3) Estimate the year-by-year cost differential for delaying the 
certification deadline to 2018.\8\
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    \8\ Though this is a single year extension, the analysis needs 
to extend over several future years. For convenience, OSHA refers to 
the annual time period as a ``Certification Year'' (CY) in this 
economic analysis, which OSHA defines as ending November 10 of the 
calendar year; e.g., CY 2017 runs from November 10, 2016, to 
November 9, 2017.
---------------------------------------------------------------------------

    The methodology used here is substantially the same as used in the 
2014 extension FEA, and OSHA did not receive any comment on this 
methodology when it included it in the 2017 PEA. Below, Table 1 
summarizes these costs and the differentials across the two scenarios. 
The major differences are updated wages and a revised forecast of the 
composition of the operator pool across certification levels. The 2014 
FEA analysis addressed a 3-year extension, so it gradually increased 
the number of operators without any certification during that period. 
The model in this PEA addresses an extension of just a single year, so 
it holds the number of operators with each certification level 
constant. The latter significantly simplifies the analysis versus that 
presented in the 2014 FEA extension.
a. Annual Assessment Costs
    OSHA estimated the annual assessment costs using the following 
three steps: First, determine the unit costs of meeting this 
requirement; second, determine the number of assessments that employers 
will need to perform in any given year (this determination includes 
estimating the affected operator pool as a preliminary step); and 
finally, multiply the unit costs of meeting the requirement by the 
number of operators who must meet it in any given year.
    Unit assessment costs. OSHA's unit cost estimates for assessments 
take into account the time needed for the assessment, along with the 
wages of both the operator and the personnel who will perform the 
assessment. OSHA based the time requirements on crane operator 
certification exams currently offered by nationally accredited testing 
organizations. OSHA determined the time needed for various 
certification tests from the 2014 extension, drawing primarily from 
informal conversations with industry sources who participated in the 
public stakeholder meetings.
    The Agency estimates separate assessment costs for three types of 
affected operators, which together comprise all affected operators: 
Those who have a certificate that is in compliance with the existing 
cranes standard; those who have a certificate that is not in compliance 
with the existing cranes standard; and those who have no 
certificate.\9\ As it did in the previous extension, OSHA uses 
certification status as a proxy of competence in estimating the amount 
of assessment time needed for different operators. OSHA expects that an 
operator already certified to operate equipment of a particular type 
and capacity will require less assessment time than an operator 
certified by type but not capacity, who in turn will require less time 
than an operator who is not certified. In deriving these estimates, 
OSHA determined that operators who have a certificate that is compliant 
with the crane standard would have to complete a test that is the 
equivalent of the practical part of the standard crane operator test. 
The Agency estimates that it would take an operator one hour to 
complete this test. Operators who have a certificate that is not in 
compliance with the cranes standard would have to complete a test that 
is equivalent to both a written general test and a practical test of 
the standard crane operator test. OSHA estimated that the written 
general test would take 1.5 hours to complete, for a total test time of 
2.5 hours of testing for each operator (1.5 hours for the written 
general test and 1.0 hour for the practical test). Finally, operators 
with no certificate would have to complete a test that is equivalent to 
the standard written test for a specific crane type (also lasting 1.5 
hours), as well as the written general test and the practical test, for 
a total test time of 4.0 hours (1.5 hours for the test on a specific 
crane type, 1.5 hours for the written general test, and 1.0 hour for 
the practical test).
---------------------------------------------------------------------------

    \9\ OSHA is not making any determination about whether a 
specific certification complies with the requirements of the cranes 
standard. For the purposes of this analysis only, OSHA will treat 
certificates that do not include a multi-capacity component as not 
complying with the cranes standard, and certificates that include 
both a type and multi-capacity component as complying with the 
cranes standard.
---------------------------------------------------------------------------

    The wages used for the crane operator and assessor come from the 
BLS Occupational Employment Survey for May 2016 (BLS 2017a), which is 
an updated version of the same source used in the 2014 extension. From 
this survey a crane operator's (Standard Occupational Classification 
(SOC) 53-7021 Crane and Tower Operators) average hourly wage is $26.58. 
The full cost to the employer includes all benefits as well as the 
wage. From the BLS Employer Costs For Employee Compensation for 
December 2016 (BLS 2017b) the average percentage of benefits in total 
for the construction sector is 30.2 percent, giving a markup of the 
wage to the total compensation of 1.43 (1/(1 - 0.302)). Hence the 
``loaded'' total hourly cost of an operator is $38.08 (1.43 x $26.58), 
including a markup for benefits.\10\ Relying on the same sources, the 
wage of the assessor is estimated to be the same as the average wage of 
a construction supervisor (53-1031 First-Line Supervisors of 
Transportation and Material-Moving Machine and Vehicle Operators) of 
$28.75, while the total hourly cost is $41.19 (1.43 x $28.75). Below 
these total hourly costs will be referred to as the respective 
occupation's ``wage.'' For assessments performed by an employer of a 
prospective employee (i.e., a candidate), OSHA uses these same operator 
and assessor wages and the above testing times to estimate the cost of 
assessing prospective employees.
---------------------------------------------------------------------------

    \10\ Calculations in the text may not exactly match due to 
rounding for presentation purposes. All final costs are exact, with 
no rounding.
---------------------------------------------------------------------------

    Multiplying the wages of operators, assessors, and candidates by 
the time taken for each type of assessment provides the cost for each 
type of assessment. Hence, the cost of assessing an operator already 
holding a certificate that complies with the standard (both type and 
capacity) is one hour of both the operator's and assessor's time: 
$79.27 ($38.08 + $41.19). For an operator with a certificate for crane 
type only (not crane capacity), the assessment time is 2.5 hours for a 
cost of $198.17 (2.5 x ($38.08 + $41.19)). Finally, for an operator 
with no certificate, the assessment time is 4.0 hours for a cost of 
$317.48 (4.0 x ($38.08 + $41.19)). OSHA did not receive any comments on 
these unit cost estimates.
    Besides these assessment costs, OSHA notes that Sec.  
1926.1427(k)(2)(ii) requires employers to provide training to employees 
if they are not already competent to operate their assigned equipment. 
To determine whether an operator is competent, the employer must first 
perform an assessment. Only if an operator fails the assessment must 
the employer provide additional operator training required by Sec.  
1926.1427(k)(2)(ii).

[[Page 51993]]

    However, in determining this cost, OSHA made a distinction between 
a nonemployee candidate for an operator position and an operator who is 
currently an employee. For an employer assessing a nonemployee 
candidate, OSHA assumed, based on common industry practice, that the 
employer will not hire a nonemployee candidate who fails the 
assessment. In the second situation, an employee qualified to operate a 
crane fails an assessment for a crane that differs in type or capacity 
from the crane the employee currently operates. In this situation, the 
cost-minimizing action for the employer is not to assign the employee 
to that new type and/or capacity crane, thereby avoiding training 
costs. While the Agency acknowledges that there will be cases in which 
the employer will provide this training, it believes these costs to be 
minimal and, therefore, is not estimating costs for the training. OSHA 
made the same determinations in the 2017 PEA and did not receive public 
comment on them.
    Number of assessments and number of affected operators. The number 
of assessments is difficult to estimate due to the heterogeneity of the 
crane industry. Many operators work continuously for the same employer, 
already have had their assessment, and do not need reassessment, so the 
number of new assessments required by the cranes standard for these 
operators will be zero. Some companies will rent both a crane and an 
operator employed by the crane rental company to perform crane work, in 
which case the rental crane company is the operator's employer and 
responsible for operator assessment. In such cases there is no 
requirement for the contractor who is renting the crane service to 
conduct an additional operator assessment. Assuming that employers 
already comply with the assessment and training requirements of the 
existing Sec.  1926.1427(k)(2), employers only need to assess a subset 
of operators: New hires; employees who will operate equipment that 
differs by type and/or capacity from the equipment on which they 
received their current assessment; and operators who indicate that they 
no longer possess the required knowledge or skill necessary to operate 
the equipment.
    To calculate the estimated annual number of assessments, OSHA first 
estimated the current number of crane operators affected by the cranes 
standard. The 2014 FEA estimated 117,130 operators and this FEA also 
uses this estimate. The Agency solicited comment and additional data on 
this estimate but received none.
    For the purpose of determining the number of assessments required 
each year under this proposal, OSHA is relying on the 23 percent 
turnover rate for operators originally identified in the 2008 PEA for 
the crane rule and used most recently in the 2014 extension FEA (79 FR 
57793) and the 2017 PEA for this rule. OSHA requested comment on this 
rate, but received none.
    This turnover rate includes all types of operators who would 
require assessment: Operators moving between employers; operators 
moving between different types and/or capacities of equipment; and 
operators newly entering the occupation. OSHA estimated that 26,940 
assessments occur each year based on turnover (i.e., 117,130 operators 
x 0.23 turnover rate). In addition, just as it did with the previous 
extension, OSHA assumed that 15 percent of operators involved in 
assessments related to turnover would fail the first test 
administration and need reassessment (79 FR 57793). Therefore, OSHA 
added 4,041 reassessments (26,940 assessments x 0.15) to the number of 
reassessments resulting from turnover, for an annual total of 30,981 
assessments resulting from turnover and test failure (26,940 + 4,041).
    Annual assessment costs. OSHA must determine the annual base amount 
for the two scenarios: (1) Retaining the original 2017 deadline (status 
quo); and (2) delaying the deadline to 2018 (extension NPRM).
    The first part of the calculation is the same under both scenarios. 
Because the annual assessment costs vary by the different levels of 
assessment required (depending on the operator's existing level of 
certification), OSHA grouped the 117,130 operators subject to the crane 
standard into three classifications: Operators with a certificate that 
complies with the standard; operators with a certificate only for crane 
type; and operators with no certification. In order to simplify the 
estimation for this one-year extension (the 2014 extension was for 3 
years) and reflect the last hard data point the Agency has, the Agency 
is using a static crane operator pool and the composition of the base 
operator population used in the 2014 deadline extension: 15,000 crane 
operators currently have a certificate that complies with the existing 
cranes standard, 71,700 have a certificate for crane type only (but not 
capacity), leaving 30,430 crane operators with no crane certification 
(117,130 total operators - (15,000 operators with compliant 
certification + 71,700 operators with certification for type only)).
    Assuming the turnover rate of 23 percent and the failure rate of 15 
percent for turnover-related assessments are distributed proportionally 
across the three types of operators, then the number of assessments for 
operators with compliant certification is 3,968 ((0.23 + (0.23 x 0.15)) 
x 15,000), the number of assessments for operators with type-only 
certification is 18,965 ((0.23 + (0.23 x 0.15)) x 71,700), and the 
number of assessments for operators with no certification is 8,049 
((0.23 + (0.23 x 0.15)) x 30,430).
    Under scenario 2, there is an extension and employers would not 
certify all of their operators during CY 2017. OSHA estimated the CY 
2017 assessment costs for scenario 2 by multiplying the assessment 
numbers for each type of operator by the unit costs, resulting in a 
cost of $6,624,861 (($79.27 x 3,968) + ($198.17 x 18,965) + ($317.08 x 
8,049)). Under scenario 1, the employer-assessment requirement will be 
in effect for all of CY 2017, while employers would be gradually 
certifying all of their operators during CY 2017. As a result, the CY 
2017 assessment costs identified for scenario 2 would decrease to 
$4,540,348 from $6,624,861 in scenario 1. This is because, as compared 
to scenario 2, there will be more operators who will have a compliant 
certificate; and therefore, under the approach described above the 
employer assessment will require less time. This reduction in the 
estimated time; and therefore, unit cost, lowers the overall assessment 
cost (see discussion in the 2014 deadline extension FEA for more 
details about this methodology).
    Under both scenarios, once the certification requirement becomes 
effective, the employer duty to assess the crane operator no longer is 
in effect and so assessment costs are zero. Thus, in CY 2018, the 
assessment costs under scenario 1 would be zero. Under scenario 2, the 
assessment costs for CY 2018 would be the same as those under scenario 
1 for CY 2017, because employers would be gradually certifying 
operators over the course of that year.
b. Annual Certification Costs
    OSHA estimated the annual certification costs using the three 
steps: First, determine the unit costs of meeting this requirement; 
second, determine the number of affected operators; and, finally, 
multiply the unit costs of meeting the requirement by the number of 
operators who must meet them. In this FEA, following the same 
methodology as in the 2014 FEA, OSHA estimates that all certifications 
occur in the year prior to the deadline, hence in CY 2017 in scenario 
1, while in CY 2018

[[Page 51994]]

for the one-year extension in scenario 2. As in the annual assessment-
cost analysis described above, OSHA provides the calculations for CY 
2017 under the existing 2017 deadline (scenario 1), and then presents 
the certification costs for CY 2018 that result from OSHA's delay of 
the certification requirement to November 2018 (scenario 2).
    Unit certification costs. Unit certification costs vary across the 
three different types of operators in the operator pool (operators with 
compliant certification; operators with type-only certification; and 
operators with no certification). Among operators without certification 
there is a further distinction with different unit certification costs: 
Experienced operators without certification and operators who have only 
limited experience. As such, there are different unit certification 
costs for four different types of operators. There also are ongoing 
certification costs due to the following two conditions: The 
requirement for re-certification every five years and the need for some 
certified operators to obtain additional certification to operate a 
crane that differs by type and/or capacity from the crane on which they 
received their current certification.
    OSHA estimated these different unit certification costs using 
substantially the same unit-cost assumptions used in the FEA for the 
2010 cranes standard (and exactly the same as the FEA of the 2014 
deadline extension). In those previous FEAs, OSHA estimated that 
training and certification costs for an operator with only limited 
experience would consist of $1,500 for a 2-day course (including tests) 
and 18 hours of the operator's time, for a total cost of $2,185.44 
($1,500 + (18 hours x $38.08)) (see 75 FR 48096-48097). OSHA continues 
to use a cost of $250 for the tests taken without any training (a 
constant fixed fee irrespective of the number of tests (75 FR 48096)), 
and the same number of hours used for each test that it used in the 
assessment calculations provided above (which the Agency based on 
certification test times). Accordingly, OSHA estimates the cost of a 
certificate compliant with the crane standard for an operator who has a 
type-only certificate to be $345.20 (i.e., 1 type/capacity-specific 
written test at 1.5 hours and 1 practical test at 1.0 hours (2.5 hours 
total), plus the fixed $250 fee for the tests (2.5 hours x $38.08) + 
$250). For an experienced operator with no certificate, the cost is 
$402.32 (i.e., the same as the cost for an operator with a type-only 
certificate plus the cost of an added general written test of 1.5 hours 
(4.0 hours x $38.08) + $250)).\11\
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    \11\ There are no certification costs for operators who already 
have a certificate that complies with the cranes standard.
---------------------------------------------------------------------------

    For scenario 1, Sec.  1926.1427(b)(4) specifies that a certificate 
is valid for five years. OSHA estimates the recertification unit cost 
would be the same as the assessment for an operator with compliant 
certification (i.e., $79.27). In the 2014 extension, OSHA assumed that 
employers would pay a reduced fee for the recertification testing as 
opposed to the cost of a full first-time examination. Because OSHA 
lacked data on exactly how much the fee would be reduced, it used the 
assessment cost as a proxy for the cost of recertification (79 FR 
57794). OSHA did not receive any comment on that approach and is 
retaining it for this FEA.
    Finally, there will be certified operators who must obtain 
certification when assigned to a crane that differs by type and/or 
capacity from the crane on which they received their current 
certification. This situation requires additional training, but less 
training than required for a ``new'' operator with only limited 
experience. Accordingly, OSHA estimated the cost for these operators as 
one half of the cost of training and certifying a new operator, or 
$1,092.72 ($2,185.44/2).
    Number of certifications. After establishing the unit certification 
costs, OSHA had to determine how many certifications are necessary to 
ensure compliance with OSHA's standard. In doing so, the Agency uses 
the 5 percent new-hire estimate from the FEA discussed above to 
calculate the number of new operators; therefore, of the 117,130 
operators affected by the standard, 5,857 (0.05 x 117,130) would be new 
operators who would require two days for training and certification 
each year. As discussed earlier, OSHA estimated that 71,700 operators 
have type-only certification, 15,000 operators have certification that 
complies with the existing cranes standard, and the remaining 24,574 
operators (117,130 - (71,700 + 15,000 + 5,857)) are experienced 
operators without certification.
    Under scenario 1 (no extension), after all operators attain 
certification by November 2017 there will still be ongoing 
certification costs each year. With a constant total number of 
operators, the same number of operators (5,857) will be leaving the 
profession each year and will not require recertification when their 
current 5-year certification ends. This leaves 111,274 operators 
(117,130 - 5,857) who will need such periodic recertification. If we 
approximate the timing of requirements for recertification as 
distributed proportionally across years, then 20 percent of all 
operators with a 5-year certificate (22,255 operators (.20 x 111,274)) 
would require recertification each year.
    A final category of unit certification costs involves the 
continuing need for certified operators to obtain further certification 
when assigned to a crane that differs by type and/or capacity from the 
crane on which they received their current certification. This 
situation arises for both operators working for a single employer and 
operators switching employers.
    The operators who will not need multiple certifications in the 
post-deadline period are operators with certification who move to a new 
employer and operate a crane with the same type and capacity as the 
crane on which they received certification while with their previous 
employer. These operators will not need multiple certifications because 
operator certificates are portable across employers, as specified by 
the cranes standard (see Sec.  1926.1427(b)(3)). For an employer 
looking to hire an operator for a specific crane, this option will 
minimize cost, and OSHA assumes employers will choose this option when 
possible.
    After the certification deadline, OSHA estimates that each year 23 
percent of the 117,130 operators (26,940 = 0.23 x 117,130) will enter 
the workforce, change employers, or take on new positions that require 
one or more additional certifications to operate different types and/or 
capacities of cranes. Of these 26,940 operators, OSHA estimates 5 of 
the total 23 percent, or 5,857 (0.05 x 117,130), will result from new 
operators entering the occupation each year; 9 percent, or 10,542 (0.09 
x 117,130), will result from operators switching employers but 
operating a crane of the same type and capacity as the crane they 
operated previously (i.e., no certification needed because 
certification is portable in this case); and the remaining 9 percent, 
or 10,542, changing jobs or positions and requiring one or more 
additional certification to operate a crane that differs by type and/or 
capacity from the crane they operated previously. These percentages are 
identical to those in the 2014 FEA and the 2017 PEA.
    Annual certification costs. To estimate the annual base cost for 
the first scenario, OSHA calculates the certification costs for CY 2017 
because that is the remaining period before the existing deadline. The 
total cost for

[[Page 51995]]

certifying all operators in CY 2017 in accordance with the existing 
cranes standard using the above unit-cost estimates and numbers of 
operators is $47,436,368 ((71,700 operators with type-only 
certification x $345.20) + (24,574 experienced operators without 
certification x $402.32) + (5,857 operators with no experience or 
certification x $2,185.44)). The Agency, following the previous FEAs 
(75 FR 48096 and 79 FR 57795), annualized this cost for the five-year 
period during which operator certification remains effective, resulting 
in an annualized cost of $8,447,719. In section c below, OSHA uses this 
amount in calculating the annual certification costs under scenario 1.
    To determine the annual amount used in calculations for the second 
scenario (the extension to 2018), OSHA examines the costs in CY 2017 
because that is the first year with certification costs. All numbers 
are the same, just shifted forward a year, so the total cost for having 
all crane operators certified in CY 2018 is $47,436,368 (in 2018 
dollars).
c. Year-by-Year Cost Differential for Delaying the Certification 
Deadline to 2018 and Preserving the Employer Assessment Duty Over That 
Same Period
    The ultimate goal of this analysis is to determine the annualized 
cost differential between scenario 1 (the status quo) and scenario 2 
(the extensions of the certification date and the employer assessment 
duty), so the final part of this PEA compares the yearly assessment and 
certification costs employers will incur under the two scenarios. 
Because the assessment and certification costs change across years 
under each scenario, OSHA must compare the cost differential in each 
year separately to determine the annual cost savings for each year 
attributable to scenario 2. OSHA calculated the present value of each 
year's differential, which provides a consistent basis for comparing 
the cost differentials over the extended compliance period. OSHA then 
annualized the present value of each differential to identify an annual 
amount that accounts for the discounted costs over this period. Table 1 
below summarizes these calculations.
    Table 1 shows that assessment and certification costs are just 
shifted out another year. As noted earlier, OSHA estimated the overall 
cost differential between these two scenarios by calculating the 
difference in total (assessment and certification) costs each year 
across the two scenarios. The net employer cost savings in current 
dollars attributable to adopting the second scenario are, for each 
certification year: 2017, $18.2 million; 2018, $8.7 million; 2019-2021, 
$0; 2022, -$7.5 million.\12\
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    \12\ A positive cost differential indicates cost savings and a 
negative cost differential indicates net costs. Savings in the first 
two years is due to the lower cost of assessments versus 
certification. Then net costs in year 2022 are due to the last year 
of annualized certification costs for scenario 2, while this cost 
ends in year 2021 for scenario 1.

                                Table 1--Year-by-Year Cost Differential if OSHA Delays the Certification Deadline to 2018
--------------------------------------------------------------------------------------------------------------------------------------------------------
                  Certification year                           2017               2018           2019        2020        2021        2022        2023
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                      Operator Pool
--------------------------------------------------------------------------------------------------------------------------------------------------------
Scenario 1 (No Deadline Extension)
    Operators with Non-Compliant Certification........             71,700                  0           0           0           0           0           0
    Operators with Compliant Certification............             15,000            111,274     111,274     111,274     111,274     111,274     111,274
    Operators with No Certification...................             24,574                  0           0           0           0           0           0
    New Operators.....................................              5,857              5,857       5,857       5,857       5,857       5,857       5,857
Scenario 2 (Deadline Extension)
    Operators with Non-Compliant Certification........             71,700             71,700           0           0           0           0           0
    Operators with Compliant Certification............             15,000             15,000     111,274     111,274     111,274     111,274     111,274
    Operators with No Certification...................             24,574             24,574           0           0           0           0           0
    New Operators.....................................              5,857              5,857       5,857       5,857       5,857       5,857       5,857
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                          Costs
--------------------------------------------------------------------------------------------------------------------------------------------------------
Scenario 1 (No Deadline Extension)
    Total Assessment Costs............................          4,540,348                  0           0           0           0           0           0
    Total Certification Costs.........................         20,362,269         33,645,533  33,645,533  33,645,533  33,645,533  26,082,317  26,082,317
                                                       -------------------------------------------------------------------------------------------------
        Total Costs...................................         24,902,617         33,645,533  33,645,533  33,645,533  33,645,533  26,082,317  26,082,317
--------------------------------------------------------------------------------------------------------------------------------------------------------
Scenario 2 (Deadline Extension)
    Total Assessment Costs............................          6,624,861          4,540,348           0           0           0           0           0
    Total Certification Costs.........................                  0         20,362,269  33,645,533  33,645,533  33,645,533  33,645,533  26,082,317
                                                       -------------------------------------------------------------------------------------------------
        Total Costs...................................          6,624,861         24,902,617  33,645,533  33,645,533  33,645,533  33,645,533  26,082,317
                                                       -------------------------------------------------------------------------------------------------
            Cost Differential (Scenario 2-Scenario 1).       (18,277,756)        (8,742,916)  ..........  ..........  ..........   7,563,216  ..........
--------------------------------------------------------------------------------------------------------------------------------------------------------
Source: OSHA, ORA Calculations.

    OSHA next determined the present value of these cost differentials 
between the two scenarios. OSHA calculated the present value of future 
costs using two interest rates assumptions, 3 percent and 7 percent, 
which follow the OMB guidelines specified by Circular A-4. At an 
interest rate of 3 percent, the present value of the cost differentials 
for CY 2017 onwards results in an estimated savings of $20.2 million 
($21.3 million using the 7 percent rate). Finally, annualizing the 
present value over five years results in an annualized cost 
differential (i.e., net employer cost savings) of $4.4 million per year 
($5.2 million per year using the 7 percent rate).
    As a sensitivity analysis the Agency looked at including possible 
overhead costs. It is important to note that there is not one broadly 
accepted overhead rate and that the use of overhead to estimate the 
marginal costs of labor raises a number of issues that should be 
addressed before applying overhead costs to analyze the costs of any 
specific regulation. There are several approaches to look at the cost 
elements that fit the definition of overhead and there are a

[[Page 51996]]

range of overhead estimates currently used within the Federal 
government--for example, the Environmental Protection Agency has used 
17 percent,\13\ and government contractors have been reported to use an 
average of 77 percent.14 15 Some overhead costs, such as 
advertising and marketing, vary with output rather than with labor 
costs. Other overhead costs vary with the number of new employees. For 
example, rent or payroll processing costs may change little with the 
addition of 1 employee in a 500-employee firm, but those costs may 
change substantially with the addition of 100 employees. If an employer 
is able to rearrange current employees' duties to implement a rule, 
then the marginal share of overhead costs such as rent, insurance, and 
major office equipment (e.g., computers, printers, copiers) would be 
very difficult to measure with accuracy (e.g., computer use costs 
associated with 2 hours for rule familiarization by an existing 
employee).
---------------------------------------------------------------------------

    \13\ U.S. Environmental Protection Agency, ``Wage Rates for 
Economic Analyses of the Toxics Release Inventory Program,'' June 
10, 2002.
    \14\ Grant Thornton LLP, 2015 Government Contractor Survey. 
(https://www.grantthornton.com/~/media/content-page-files/public-
sector/pdfs/surveys/2015/Gov-Contractor-Survey.ashx).
    \15\ For a further example of overhead cost estimates, please 
see the Employee Benefits Security Administration's guidance at 
https://www.dol.gov/sites/default/files/ebsa/laws-and-regulations/rules-and-regulations/technical-appendices/labor-cost-inputs-used-in-ebsa-opr-ria-and-pra-burden-calculations-august-2016.pdf.
---------------------------------------------------------------------------

    If OSHA had included an overhead rate when estimating the marginal 
cost of labor, without further analyzing an appropriate quantitative 
adjustment, and adopted for these purposes an overhead rate of 17 
percent on base wages, as was done in a sensitivity analysis in the FEA 
in support of OSHA's 2016 final rule on Occupational Exposure to 
Respirable Crystalline Silica, the overhead costs would increase cost 
savings from $4.4 million to $4.5 million at a discount rate of 3 
percent, an increase of 1.8 percent, and would increase cost savings 
from $5.2 million to $5.3 million at a discount rate of 7 percent, an 
increase of 1.9 percent.
d. Certification of No Significant Impact on a Substantial Number of 
Small Entities
    Most employers will have savings resulting from the one-year 
extension, particularly employers that planned to pay for operator 
certification in the year before the existing 2017 deadline. The only 
entities likely to see a net cost will be entities that planned to hire 
an operator with compliant certification after November 10, 2017. 
Without the one-year extension, these entities will have no separate 
assessment duty, but under the one-year extension they will have the 
expense involved in assessing operator competency. As noted above, 
however, OSHA estimated the maximum cost for such an assessment (for 
operators with no certification) to be $317.08 per certified operator.
    Small businesses will, by definition, have few operators, and OSHA 
believes the $317.08 cost will be well below 1 percent of revenues, and 
well below 5 percent of profits, in any industry sector using cranes. 
OSHA does not consider such small amounts to represent a significant 
impact on small businesses in any industry sector. Hence, OSHA 
certifies this final rule will not have a significant impact on a 
substantial number of small entities. After providing relatively 
similar estimates in the 2014 FEA, OSHA made the same certification in 
the 2014 FEA and proposed the same certification in the 2017 PEA but 
did not receive any adverse comment on either the certification or its 
underlying rationale.

B. Paperwork Reduction Act

    The Paperwork Reduction Act (PRA) requires Federal agencies to 
obtain the Office of Management and Budget (OMB) approval of 
information collection requirements before an Agency can conduct or 
sponsor the information collection requirement; and to display the OMB 
control (approval number) (44 U.S.C. 3507(d)). Agencies submit an 
Information Collection Request (ICR), with paperwork analysis, to OMB 
seeking approval of their paperwork requirements. The information 
collection requirements in the Cranes and Derricks in Construction 
Standard (29 CFR part 1926, subpart CC) have been approved by OMB in 
the ICR titled Cranes and Derricks in Construction Standard (29 CFR 
part 1926, subpart CC), under OMB control Number 1218-0261. These 
paperwork requirements expire on February 28, 2020.
    In the August 30, 2017 NPRM, OSHA notified the public that the 
Agency believed the proposed Cranes and Derricks in Construction: 
Operator Certification Extension rule did not contain additional 
collection of information, and that OSHA did not believe it was 
necessary to submit a new (revised) ICR to OMB. OSHA instructed the 
public to submit comments on this determination to OMB and encouraged 
them to submit their comments to OSHA. No comments were received and 
OSHA has determined this final rule requires no additional collection 
of information or any permanent change to the collection program. As a 
result, the Agency did not submit an ICR to OMB.
    The Agency notes that a Federal agency generally cannot conduct or 
sponsor a collection of information, and the public is generally not 
required to respond to an information collection, unless it is approved 
by OMB under the PRA and displays a currently valid OMB Control Number. 
In addition, notwithstanding any other law, no person may generally be 
subject to penalty for failing to comply with a collection of 
information that does not display a valid Control Number.\16\
---------------------------------------------------------------------------

    \16\ See 5 CFR 1320.5(a) and 1320.6.
---------------------------------------------------------------------------

C. Federalism

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

[[Page 51997]]

provided these requirements are at least as effective in providing safe 
and healthful employment and places of employment as the requirements 
specified in this final rule.

D. State Plans

    When Federal OSHA promulgates a new standard or more stringent 
amendment to an existing standard, State Plans must either amend their 
standards to be ``at least as effective as'' the new standard or 
amendment, or show that an existing State standard covering this area 
is already ``at least as effective'' as the new Federal standard or 
amendment (29 CFR 1953.5(a)). State Plans adoption must be completed 
within six months of the promulgation date of the final Federal rule. 
When OSHA promulgates a new standard or amendment that does not impose 
additional or more stringent requirements than an existing standard, 
State Plans do not have to amend their standards, although OSHA may 
encourage them to do so.
    The amendment to OSHA's crane standard in this final rule only 
delays the deadline for operator certification requirements and does 
not impose any new requirements on employers. Accordingly, State Plans 
are not required to amend their standards to delay the deadline for 
their operator certification requirements, but they may do so if they 
so choose. If they choose to delay the deadline for their certification 
requirements, they also would need to include a corresponding extension 
of the employer duty to assess and train operators that is equivalent 
to Sec.  1926.1427(k)(2).

E. Unfunded Mandates Reform Act

    When OSHA issued the final rule for cranes and derricks in 
construction, it reviewed the rule according to the Unfunded Mandates 
Reform Act of 1995 (UMRA; 2 U.S.C. 1501 et seq.) and Executive Order 
13132 (64 FR 43255 (Aug. 10, 1999)). OSHA concluded that the final rule 
did not meet the definition of a ``Federal intergovernmental mandate'' 
under the UMRA because OSHA standards do not apply to State or local 
governments except in States that voluntarily adopt State Plans. OSHA 
further noted that the rule imposed costs of over $100 million per year 
on the private sector and; therefore, required review under the UMRA 
for those costs, but that its final economic analysis met that 
requirement.
    As discussed above in Section III.A (Final Economic Analysis and 
Regulatory Flexibility Analysis) of this preamble, this final rule does 
not impose any costs on private-sector employers beyond those costs 
already taken into account in the 2010 final rule for cranes and 
derricks in construction. Because OSHA reviewed the total costs of the 
2010 final rule under the UMRA, no further review of those costs is 
necessary. Therefore, for the purposes of the UMRA, OSHA certifies that 
this final rule does not mandate that State, local, or tribal 
governments adopt new, unfunded regulatory obligations, or increase 
expenditures by the private sector of more than $100 million in any 
year.

F. Consultation and Coordination With Indian Tribal Governments

    OSHA reviewed this final rule in accordance with Executive Order 
13175 (65 FR 67249) and determined that it does not have ``tribal 
implications'' as defined in that order. The rule does not have 
substantial direct effects on one or more Indian tribes, on the 
relationship between the Federal government and Indian tribes, or on 
the distribution of power and responsibilities between the Federal 
government and Indian tribes.

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

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

H. Legal Considerations

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

List of Subjects in 29 CFR Part 1926

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

    Signed at Washington, DC, on November 3, 2017.
Loren Sweatt,
Deputy Assistant Secretary of Labor for Occupational Safety and Health.

Amendments to Standards

    For the reasons stated in the preamble of this final rule, OSHA 
amends 29 CFR part 1926 as follows:

PART 1926--[AMENDED]

Subpart CC--Cranes and Derricks in Construction

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

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


0
2. Revise Sec.  1926.1427(k) to read as follows:

[[Page 51998]]

Sec.  1926.1427  Operator qualification and certification.

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

[FR Doc. 2017-24349 Filed 11-8-17; 8:45 am]
 BILLING CODE 4510-26-P



                                              51986            Federal Register / Vol. 82, No. 216 / Thursday, November 9, 2017 / Rules and Regulations

                                                (b) * * *                                                 (i) * * *                                           Constitution Avenue NW., Washington,
                                                (1) Items for use by the Cuban private                   Note 2 to paragraph (b)(3)(i): The policy of         DC 20210, to receive petitions for
                                              sector for private sector economic                      case-by-case review in this paragraph is                review of the final rule.
                                              activities, except for items that would be              intended to facilitate exports and reexports to         FOR FURTHER INFORMATION CONTACT:
                                              used to:                                                meet the needs of the Cuban people.                        General information and press
                                                (i) Primarily generate revenue for the                Accordingly, BIS generally will deny                    inquiries: Mr. Frank Meilinger, OSHA
                                              state; or                                               applications to export or reexport items for            Office of Communications: telephone:
                                                (ii) Contribute to the operation of the               use by state-owned enterprises, agencies, and           (202) 693–1999; email:
                                              state, including through the                            other organizations that primarily generate             Meilinger.Francis2@dol.gov.
                                              construction or renovation of state-                    revenue for the state, including those                     Technical inquiries: Mr. Vernon
                                              owned buildings.                                        engaged in tourism and those engaged in the
                                                                                                      extraction or production of minerals or other
                                                                                                                                                              Preston, Directorate of Construction:
                                                (2) Items sold directly to individuals                                                                        telephone: (202) 693–2020; fax: (202)
                                                                                                      raw materials. Applications for export or
                                              in Cuba for their personal use or their                 reexport of items destined to the Cuban                 693–1689; email: Preston.Vernon@
                                              immediate family’s personal use, other                  military, police, intelligence or security              dol.gov.
                                              than officials identified in paragraphs                 services also generally will be denied.                    Copies of this Federal Register
                                              (d)(4)(ii) or (iii) of this section.                    Additionally, pursuant to section 3(a) of the           document and news releases: Electronic
                                              *      *     *       *     *                            National Security Presidential Memorandum               copies of these documents are available
                                                (d) * * *                                             on Strengthening the Policy of the United               at OSHA’s Web page at http://
                                                (4) * * *                                             States Toward Cuba (NSPM), dated June 16,               www.osha.gov.
                                                (ii) Ministers and Vice-Ministers;                    2017, BIS generally will deny applications to
                                                                                                      export or reexport items for use by entities            SUPPLEMENTARY INFORMATION:
                                              members of the Council of State;
                                                                                                      or subentities identified by the Department of          I. Background
                                              members of the Council of Ministers;                    State in the Federal Register or at https://
                                              members and employees of the National                   www.state.gov/e/eb/tfs/spi/cuba/                        A. Introduction
                                              Assembly of People’s Power; members                     cubarestrictedlist/index.htm, unless such
                                              of any provincial assembly; local sector                                                                          OSHA is publishing this final rule to
                                                                                                      transactions are determined to be consistent
                                              chiefs of the Committees for the Defense                with sections 2 and 3(a)(iii) of the NSPM.              further extend by one year the employer
                                              of the Revolution; Director Generals and                                                                        duty to ensure the competency of crane
                                              sub-Director Generals and higher of all                 *      *        *      *       *                        operators involved in construction
                                              Cuban ministries and state agencies;                      Dated: November 6, 2017.                              work. Previously this duty was
                                              employees of the Ministry of the Interior               Richard E. Ashooh,
                                                                                                                                                              scheduled to terminate on November 10,
                                              (MININT); employees of the Ministry of                                                                          2017, but now continues until
                                                                                                      Assistant Secretary for Export
                                              Defense (MINFAR); secretaries and first                 Administration.
                                                                                                                                                              November 10, 2018. OSHA also is
                                              secretaries of the Confederation of Labor                                                                       further delaying the deadline for crane
                                                                                                      [FR Doc. 2017–24448 Filed 11–8–17; 8:45 am]
                                              of Cuba (CTC) and its component                                                                                 operator certification for one year from
                                                                                                      BILLING CODE 3510–33–P
                                              unions; chief editors, editors and deputy                                                                       November 10, 2017, to November 10,
                                              editors of Cuban state-run media                                                                                2018. As explained in more detail in the
                                              organizations and programs, including                                                                           following Regulatory Background
                                                                                                      DEPARTMENT OF LABOR                                     section, the extension and delay are
                                              newspapers, television, and radio; or
                                              members and employees of the Supreme                                                                            necessary to provide sufficient time for
                                                                                                      Occupational Safety and Health
                                              Court (Tribuno Supremo Nacional); and                                                                           OSHA to complete a related rulemaking
                                                                                                      Administration
                                                                                                                                                              to address issues with its existing
                                              *      *     *       *     *                                                                                    Cranes and Derricks in Construction
                                                                                                      29 CFR Part 1926
                                              PART 746—[AMENDED]                                                                                              standard (29 CFR part 1926, subpart CC,
                                                                                                      [Docket ID–OSHA–2007–0066]                              referred to as ‘‘the crane standard’’
                                              ■ 5. The authority citation for part 746                RIN 1218–AC96                                           hereafter) (75 FR 47905).
                                              continues to read as follows:                                                                                     In establishing the effective date of
                                                                                                      Cranes and Derricks in Construction:                    this action, the Agency finds good cause
                                                Authority: 50 U.S.C. 4601 et seq.; 50
                                              U.S.C. 1701 et seq.; 22 U.S.C. 287c; Sec 1503,          Operator Certification Extension                        pursuant to 5 U.S.C. 553(d)(3) of the
                                              Pub. L. 108–11, 117 Stat. 559; 22 U.S.C. 6004;                                                                  Administrative Procedure Act that this
                                              22 U.S.C. 7201 et seq.; 22 U.S.C. 7210; E.O.            AGENCY:  Occupational Safety and Health                 rule be made effective on November 9,
                                              12854, 58 FR 36587, 3 CFR, 1993 Comp., p.               Administration (OSHA), Labor.                           2017, rather than delaying the effective
                                              614; E.O. 12918, 59 FR 28205, 3 CFR, 1994               ACTION: Final rule.                                     date for 30 days after publication. The
                                              Comp., p. 899; E.O. 13222, 66 FR 44025, 3                                                                       basis for this finding is that it is
                                              CFR, 2001 Comp., p. 783; E.O. 13338, 69 FR              SUMMARY:   OSHA is delaying its deadline                unnecessary to delay this effective date
                                              26751, 3 CFR, 2004 Comp., p 168;                        for employers to ensure that crane                      to provide an additional period of time
                                              Presidential Determination 2003–23, 68 FR               operators are certified by one year until               for employers to comply with a new
                                              26459, 3 CFR, 2004 Comp., p. 320;                       November 10, 2018. OSHA is also
                                              Presidential Determination 2007–7, 72 FR
                                                                                                                                                              requirement because OSHA is extending
                                                                                                      extending its employer duty to ensure                   the status quo. This final rule
                                              1899, 3 CFR, 2006 Comp., p. 325; Notice of              that crane operators are competent to
                                              May 9, 2017, 82 FR 21909 (May 10, 2017);                                                                        establishes no new burdens on the
                                              Notice of August 15, 2017, 82 FR 39005
                                                                                                      operate a crane safely for the same one-                regulated community; rather, it further
                                              (August 16, 2017).                                      year period.                                            delays implementation of the crane
                                                                                                      DATES: This final rule is effective on                  operator certification requirements in
                                              ■ 6. Section 746.2 is amended by
nshattuck on DSK9F9SC42PROD with RULES




                                                                                                      November 9, 2017.                                       the crane standard and further extends
                                              revising Note 2 to Paragraph (b)(3)(i) to
                                              read as follows:                                        ADDRESSES: In accordance with 28                        the employer duty in the crane standard
                                                                                                      U.S.C. 2112(a)(2), the Agency designates                to ensure the competency of crane
                                              § 746.2   Cuba.                                         Ann Rosenthal, Associate Solicitor of                   operators, a duty that employers have
                                              *       *    *       *      *                           Labor for Occupational Safety and                       been required to comply with since
                                                  (b) * * *                                           Health, Office of the Solicitor, Room S–                publication of the crane standard in
                                                  (3) * * *                                           4004, U.S. Department of Labor, 200                     2010.


                                         VerDate Sep<11>2014   13:39 Nov 08, 2017   Jkt 244001   PO 00000   Frm 00014     Fmt 4700   Sfmt 4700   E:\FR\FM\09NOR1.SGM   09NOR1


                                                               Federal Register / Vol. 82, No. 216 / Thursday, November 9, 2017 / Rules and Regulations                                       51987

                                                 OSHA also concludes that delaying                    operator competency for the same                      meaning any employer who employs an
                                              the effective date of this extension                    period. OSHA’s final economic analysis                operator may rely on that operator’s
                                              rulemaking beyond November 9, 2017,                     shows that delaying the date for                      certification as evidence of compliance
                                              would be contrary to the public interest                operator certification and extending the              with the crane standard’s operator
                                              and would significantly disrupt the                     employer’s assessment of crane operator               certification requirement. This
                                              construction industry. If the extension                 competency, rather than following the                 certification option also is the only one
                                              does not go into effect on November 9,                  current crane standard, will result in a              available to all employers; it is the
                                              2017, the crane operator certification                  net cost savings for the affected                     option OSHA, and the parties that
                                              requirements in the 2010 crane standard                 industries. Delaying the compliance                   participated in the rulemaking, believed
                                              would go into effect and the employer                   date for operator certification results in            would be the one most widely used. In
                                              duty in the crane standard to ensure                    estimated cost savings that exceed the                this regard, OSHA is not aware of an
                                              crane operator competency would end.                    estimated new costs for employers to                  audited employer qualification program
                                              As the Agency notes below in Section                    continue to assess crane operators to                 among construction industry employers
                                              II.A (Extension of operator certification               ensure their competent operation of the               (Option 2), and the crane standard
                                              deadline), there is evidence in the                     equipment in accordance with                          limits the U.S. military crane operator
                                              record that many crane operators in the                 § 1926.1427(k). The detailed final                    certification programs (Option 3) to
                                              construction industry do not have the                   economic analysis is in the ‘‘Agency                  Federal employees of the Department of
                                              certification required by the crane                     Determinations’’ section of this                      Defense or the armed services. While
                                              standard and would be out of                            preamble.                                             State and local governments certify
                                              compliance with the standard. This                                                                            some crane operators (Option 4), the
                                              would not be offset through the                         C. Regulatory Background                              vast majority of operators who become
                                              employer duty to ensure crane operator                  1. Operator Certification Options                     certified do so through Option 1—by
                                              competency because that duty would no                                                                         third-party testing organizations
                                              longer exist. Therefore, OSHA                              On August 9, 2010, OSHA published                  accredited by a nationally recognized
                                              concludes that it is in the public interest             the final crane standard. OSHA                        accrediting organization.
                                              to avoid such disruption by having this                 developed the standard through a                        Under Option 1, an independent
                                              extension go into effect by November 9,                 negotiated rulemaking process. The                    testing organization tests crane
                                              2017. Finally, OSHA notes that by                       Agency established a Federal advisory                 operators to determine if they warrant
                                              delaying the operator certification                     committee, the Cranes and Derricks                    certification. Before a testing
                                              deadline, OSHA is temporarily relieving                 Negotiated Rulemaking Advisory                        organization can issue operator
                                              the regulated community of a                            Committee (C–DAC), to develop a draft                 certifications, § 1926.1427(b)(1) of the
                                              compliance duty, which under 5 U.S.C.                   proposed rule. C–DAC met in 2003 and                  crane standard provides that a
                                              553(d)(1) is a separate basis for allowing              2004 and developed a draft proposed                   nationally recognized accrediting
                                              a rule to become effective in less than                 rule (which included the provisions                   organization must accredit the testing
                                              30 days.                                                concerning crane operator certification               organizations. To accredit a testing
                                                 By delaying the deadline for                         at issue in this rulemaking) that it                  organization, the accrediting agency
                                              employers to ensure that crane operators                provided to OSHA.                                     must determine that the testing
                                              are certified until November 10, 2018,                     The Agency initiated a Small                       organization meets industry-recognized
                                              and by extending the employer duty to                   Business Advocacy Review Panel in                     criteria for written testing materials,
                                              ensure that crane operators are                         2006 and published the proposed rule                  practical examinations, test
                                              competent until that same date, this rule               for cranes in construction on October 9,              administration, grading, facilities and
                                              will avoid disrupting the construction                  2008 (73 FR 59713). It closely followed               equipment, and personnel. The testing
                                              industry and allow OSHA time to                         C–DAC’s draft proposal (73 FR 59718).                 organization must administer written
                                              complete a related crane standard                       OSHA received public comment on the                   and practical tests that:
                                              rulemaking that will address these and                  proposal, and conducted a public                        • Assess the operator’s knowledge
                                              other issues.                                           hearing. Among many other provisions,                 and skills regarding subjects specified in
                                                 In this preamble, OSHA cites to                      OSHA’s 2010 final rule incorporated,                  the crane standard;
                                              documents in Docket No. OSHA–2007–                      with minor changes, the four-option                     • provide different levels of
                                              0066, the docket for this rulemaking. To                certification scheme that C–DAC had                   certification based on equipment
                                              simplify these document cites, they start               recommended and the Agency had                        capacity and type;
                                              with ‘‘ID’’ followed by the last four                   proposed. Accordingly, in § 1926.1427,                  • have procedures to retest applicants
                                              digits of their full docket identification              OSHA requires employers to ensure that                who fail; and
                                              number. For example, if a document’s                    their crane operators complete at least                 • have testing procedures for
                                              full docket identification number is ID–                one of the following:                                 recertification.
                                              OSHA–2007–0066–1234, the cite used                         Option 1. Certification by an                        Section 1926.1427(b)(2) of the crane
                                              in this preamble would be ID–1234. The                  independent testing organization                      standard also specifies that, for the
                                              docket is available at http://                          accredited by a nationally recognized                 purposes of compliance with the crane
                                              www.regulations.gov, the Federal                        accrediting organization;                             standard, an operator is deemed
                                              eRulemaking Portal.                                        Option 2. Qualification by an                      qualified to operate a particular piece of
                                                                                                      employer’s independently audited                      equipment only if the operator is
                                              B. Summary of Economic Impact                           program;                                              certified for that type and capacity of
                                                This final rule is not economically                      Option 3. Qualification by the U.S.                equipment or for higher-capacity
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                                              significant. OSHA is revising 29 CFR                    military; or                                          equipment of that type. It further
                                              1926.1427(k) (competency assessment                        Option 4. Compliance with qualifying               provides that, if no testing organization
                                              and training) to delay the deadline for                 State or local licensing requirements                 offers certification examinations for a
                                              compliance with the operator-                           (mandatory when applicable).                          particular equipment type and/or
                                              certification requirement in the crane                     The third-party certification option in            capacity, the operator is deemed
                                              standard for one year, and to extend the                § 1926.1427(b)—Option 1—is the only                   qualified to operate that equipment if
                                              existing employer duty to ensure crane                  certification option that is ‘‘portable,’’            the operator is certified for the type/


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                                              51988            Federal Register / Vol. 82, No. 216 / Thursday, November 9, 2017 / Rules and Regulations

                                              capacity of equipment that is most                      the standard’s requirements and                       E. Consulting ACCSH—Draft Proposal
                                              similar to that equipment, and for which                operators who obtained certifications                 for Revised Crane Operator
                                              a certification examination is available.               only from those organizations could not,              Requirements
                                              2. Overview of § 1926.1427(k) (Phase-In                 under OSHA’s crane standard, operate
                                                                                                      cranes on construction sites after                       With the additional three-year
                                              Provision)                                                                                                    extension in place, OSHA began work
                                                                                                      November 10, 2014. Some stakeholders
                                                 The crane standard published in 2010                                                                       on a rulemaking to address the issues
                                                                                                      in the crane industry requested that
                                              replaced provisions in 29 CFR part                                                                            raised by stakeholders. On March 31
                                                                                                      OSHA remove the capacity requirement.
                                              1926, subpart N—Cranes, Derricks,                                                                             and April 1, 2015, the Agency consulted
                                              Hoists, Elevators, and Conveyors, of the                   Most of the participants in the                    with the Advisory Committee on
                                              construction safety standards. OSHA                     stakeholder meetings expressed the                    Construction Safety and Health
                                              delayed the deadline for the operator                   opinion that an operator’s certification              (ACCSH) to solicit feedback from
                                              certification requirement for four years,               by an accredited testing organization                 industry stakeholders on the draft
                                              until November 10, 2014 (see                            did not mean that the operator was fully              regulatory text for a revised operator
                                              § 1926.1427(k)(1)). During this four-year               competent or experienced to operate a                 certification standard.1 Prior to the
                                              ‘‘phase-in’’ period, the crane standard                 crane safely on a construction work site.
                                              imposed an employer duty to ensure                                                                            meeting, OSHA made available the draft
                                                                                                      The participants likened operator                     regulatory text,2 an overview of the draft
                                              that crane operators could safely operate               certification to a new driver’s license, or
                                              equipment (see § 1926.1727(k), Phase-                                                                         regulatory text,3 and a summary of the
                                                                                                      a learner’s permit, to drive a car. Most              site visits with stakeholders.4 OSHA
                                              in). Thus, pursuant to                                  participants said that the operator’s
                                              § 1926.1427(k)(2)(i), OSHA required                                                                           received many comments and
                                                                                                      employer should retain the                            suggestions for revising the regulatory
                                              employers to ‘‘ensure that operators of
                                                                                                      responsibility to ensure that the                     text at the ACCSH meeting. Since that
                                              equipment covered by this standard are
                                                                                                      operator was qualified for the particular             meeting, the Agency has worked to re-
                                              competent to operate the equipment
                                              safely.’’ Under § 1926.1427(k)(2)(ii),                  crane work assigned. Some participants                draft the regulatory text and preamble
                                              employers must train and evaluate the                   wanted certification to be, or viewed to              for the proposed rule. To ensure the
                                              operator when the operator ‘‘assigned to                be, sufficient to operate a crane safely.             Agency has enough time to propose and
                                              operate machinery does not have the                     Stakeholders noted that operator                      finalize the rulemaking, OSHA
                                              required knowledge or ability to operate                certification was beneficial in                       proposed this one-year extension of the
                                              the equipment safely.’’                                 establishing a minimum threshold of                   certification requirement compliance
                                                                                                      operator knowledge and familiarity with               date (82 FR 41184 (Aug. 30, 2017)). As
                                              3. Post-Final Rule Developments                         cranes.                                               with the previous extensions, OSHA
                                                 After OSHA issued the crane
                                              standard, it continued to receive                       D. Initial Extension of the Employer                  also proposed an extension of the
                                              feedback from members of the regulated                  Assessment Duties and Deadline for                    existing employer assessment duty for
                                              community and conducted stakeholder                     Operator Certification                                the same time period (Id.). OSHA
                                              meetings on April 2 and 3, 2013, to give                                                                      requested public comment on these
                                                                                                        On February 10, 2014, OSHA                          proposals.
                                              interested members of the public the
                                              opportunity to express their views.                     published a proposal to delay the
                                                                                                      deadline for operator certification by                II. Summary and Explanation of the
                                              Participants included construction                                                                            Final Rule
                                              contractors, labor unions, crane                        three additional years to November 10,
                                              manufacturers, crane rental companies,                  2017, and to extend the existing                         Commenters in their written remarks
                                              accredited testing organizations, one of                employer duty to ensure crane operator                on the proposal to delay the operator
                                              the accrediting bodies, insurance                       competency for the same period (79 FR                 certification deadline and extend the
                                              companies, crane operator trainers, and                 7611). OSHA conducted a public                        existing employer duty to November 10,
                                              military employers. Detailed notes of                   hearing on May 19, 2014.                              2018 focused on three issues arising
                                              participants’ comments are available at                 Representatives of the construction                   from the Agency’s proposed changes: (1)
                                              ID–0539. Various parties informed                       industry reiterated that requiring the                Whether to delay the date for crane
                                              OSHA that, in their opinion, the                        certification of all operators and                    operators to be certified; (2) whether to
                                              operator certification option would not                 supplanting the employer duty would                   extend the employer duty to ensure
                                              adequately ensure that crane operators                  not ensure the competency of crane                    crane operators are competent and safe;
                                              could operate their equipment safely at                 operators to safely operate cranes to do              and (3) the length of time of an
                                              a construction site. They said that a                   construction work. A representative of
                                              certified operator would need additional                                                                      extension. This section examines these
                                                                                                      one of the testing organizations that                 issues—in the order above—by first
                                              training, experience, and evaluation,                   certifies by capacity (and who had
                                              beyond the training and evaluation                                                                            summarizing the comments and then
                                                                                                      previously opposed removing the                       explaining the Agency’s decisions and
                                              required to obtain certification, to                    capacity requirement) conceded that
                                              ensure that he or she could operate a                                                                         determinations based on the record as a
                                                                                                      OSHA should undergo a rulemaking to                   whole.
                                              crane safely.                                           consider removing capacity from
                                                 OSHA also received information that
                                                                                                      certification requirements.
                                              two (of a total of four) accredited testing                                                                      1 Transcript for March 31: https://www.osha.gov/

                                              organizations have been issuing                           On September 26, 2014, OSHA                         doc/accsh/transcripts/accsh_20150331.pdf;
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                                              certifications only by ‘‘type’’ of crane,               published a final rule that delayed the               transcript for April 1: https://www.osha.gov/doc/
                                                                                                      operator certification deadline and                   accsh/transcripts/accsh_20150401.pdf.
                                              rather than offering different                                                                                   2 https://www.osha.gov/doc/accsh/
                                              certifications by ‘‘type and capacity’’ of              extended the existing employer duty for
                                                                                                                                                            accshcrane.pdf.
                                              crane, as the crane standard requires.                  three years to November 10, 2017, to                     3 https://www.osha.gov/doc/accsh/proposed_
                                              The two organizations later confirmed                   provide time for OSHA to consider what                crane.html.
                                              this (ID–0521, p. 109 and 246). As a                    regulatory approach it should take (79                   4 https://www.osha.gov/doc/accsh/summary_

                                              result, those certifications do not meet                FR 57785).                                            crane.html.



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                                                               Federal Register / Vol. 82, No. 216 / Thursday, November 9, 2017 / Rules and Regulations                                                  51989

                                              A. Extension of Operator Certification                  the Chicago Crane Owners Association                  that if OSHA delayed the compliance
                                              Deadline                                                support the extension ‘‘so that crane                 date, ‘‘then safety would not be a
                                                 The majority of commenters                           operator’s proficiency/qualification can              priority,’’ continuing that it was his
                                              supported the Agency’s proposed                         be further clarified in the existing cranes           opinion that requiring certification
                                              extension of the deadline for crane                     and derrick standard.’’ (ID–0604).                    immediately ‘‘would eliminate quite a
                                              operators to be certified (ID–0545, 0561,                  Commenters were also very                          number of fatalities and injuries. . . .’’
                                              0563, 0566, 0572–575, 0578–582, 0584–                   concerned that without an extension of                (ID–0665 and 0562). Chas Scott of
                                              585, 0588–597, 0599–614, 0617–618,                      the operator certification requirements               Murray State University commented
                                              0621, 0624–627, 0632–640, 0642–643,                     and the employer’s duty, there would be               that ‘‘[t]he longer the rule is delayed, the
                                              0645–647, 0651, 0653, 0656–660, 0662–                   significant disruption to the                         more fatalities that are likely to occur.’’
                                                                                                      construction industry. (ID–0561, 0580,                (ID–0557).5
                                              664, 0666–667). Most agreed that an
                                                                                                      0605, 0611, 0618, 0626–627, 0636, 0640,                  In making their arguments about the
                                              extension was necessary to give OSHA
                                                                                                      0643, 0646, 0650). In the 2014                        impact of the certification deadline
                                              time to address the issues regarding
                                                                                                      extension, OSHA noted that the record                 extension on safety, several of these
                                              crane operation raised after publication
                                                                                                      indicated that roughly two-thirds of                  comments equated crane operator
                                              of the crane standard: Whether to
                                                                                                      certified operators were certified by one             training and crane operator certification.
                                              remove capacity from the crane
                                                                                                      of the organizations that does not offer              (ID–0571, 0577, 0620, 0629, 0644, 0649,
                                              standard’s certification requirements
                                                                                                      certification by capacity. Thus, some of              0652). OSHA had previously addressed
                                              and the preservation of the employer’s
                                                                                                      the commenters observed that with a                   the same issue in its 2014 extension,
                                              role in assessing operators for safe crane
                                                                                                      majority of certified operators                       pointing out that for the requirements
                                              operation (ID–0561, 0563, 0578, 0597,                   possessing a certification by crane type
                                              0604, 0618, 0632, 0636, 0640, 0646–647,                                                                       for crane operator training at 29 CFR
                                                                                                      only, many employers of crane                         1926.1427(f), like the other provisions
                                              0650–651, 0656, 0658, 0667). The                        operators would be in violation of
                                              National Commission for the                                                                                   from the crane standard except
                                                                                                      operating a crane under OSHA                          certification, are currently in effect and
                                              Certification of Crane Operators                        requirements and barred from operating
                                              (NCCCO) supports this rule ‘‘only in                                                                          would not be impacted by any extension
                                                                                                      a crane without the possibility of being              (see 79 FR 57788). Employers currently
                                              response to OSHA’s stated need to                       cited by OSHA. The Texas Crane
                                              address these two issues.’’ (ID–0632). In                                                                     have, and will continue to have, a
                                                                                                      Owners Association asserts that without               responsibility to ensure crane operators
                                              support of the extension, The                           an extension, ‘‘the obligations under
                                              International Union of Operating                                                                              they employ are trained according to
                                                                                                      [the crane standard] will undoubtedly                 that standard.
                                              Engineers (IUOE) stated that they along                 disrupt the construction industry by
                                              with ‘‘contractors, insurers, trade                                                                              Other comments in opposition of the
                                                                                                      creating a large number of crane                      extension stated that employers have
                                              associations, and third-party                           operators without compliant
                                              certification bodies agree on the                                                                             had enough time to make sure that their
                                                                                                      certification.’’ (ID–0646). The                       operators are certified, meeting the
                                              problems OSHA has identified . . . that                 Associated General Contractors of
                                              OSHA’s ‘deemed qualified’ language                                                                            certification requirements of the 2010
                                                                                                      America agrees that failure to delay the              final rule. (ID–0542, 0551, 0556, 0558,
                                              eliminates the employer’s duty . . .’’                  compliance date ‘‘could potentially
                                              and ‘‘that certification by ‘capacity’                                                                        0568, 0583, 0587, 0615–616, 0622–623,
                                                                                                      result in significant disruptions in the              0630–631, 0652, 0661). An anonymous
                                              should be eliminated from the                           construction industry with the number
                                              regulatory requirements.’’ (ID–0651).                                                                         commenter stated that ‘‘[s]afety
                                                                                                      of crane operators in possession of                   conscious construction employers know
                                              They conclude that ‘‘[t]here is                         certifications that would be deemed
                                              widespread agreement in the industry                                                                          or should have known of this new
                                                                                                      noncompliant if the November 10, 2017,                operator certification requirement and
                                              regarding the necessity to postpone                     effective date remains in place.’’ (ID–
                                              implementation of these two elements                                                                          have been given a substantial amount of
                                                                                                      0640). Similarly, The Associated                      time to comply,’’ (ID–0551). Another
                                              of the rule in order to correct them.’’                 Builders and Contractors, Inc., (ABC)
                                              (Id.).                                                                                                        commenter noted that employers of
                                                                                                      commented that ‘‘many in the                          crane operators ‘‘have had seven years
                                                 Some commenters asked OSHA to                        construction industry believe that
                                              delay the compliance date of the                                                                              to get the new certification.’’ (ID–0661).
                                                                                                      without an extension the industry will                   Based on the record as a whole,
                                              certification requirements in order to                  face a future crane operator shortage.
                                              alleviate confusion that exists in the                                                                        OSHA finds the arguments in favor of
                                                                                                      For the industry to continue to perform               delaying the operator certification
                                              industry regarding the crane operator                   work without disruption, it is important
                                              certification requirements. (ID–0604,                                                                         deadline to be more persuasive. OSHA
                                                                                                      an extension is granted.’’ (ID–0650).                 shares the commenters’ concerns about
                                              0606, 0642, 0647, 0650–651). In support                 ‘‘[W]ithout the proposed extension there
                                              of the extension, the IUOE asked OSHA                                                                         a potential disruption to the industry
                                                                                                      will be a significant disruption to the
                                              to ‘‘move quickly to eliminate the cloud                                                                      that might occur if the majority of
                                                                                                      industry come November 10, 2017,’’
                                              of uncertainty that has hung over this                                                                        certified operators currently hold a form
                                                                                                      commented North America’s Building
                                              key safety measure for over a decade.’’                                                                       of certification that would not comply
                                                                                                      Trades Unions, continuing that ‘‘many
                                              (ID–0651). Edison Electrical Institute                  operators will no longer be able to                     5 This commenter misinterpreted OSHA’s
                                              hopes that ‘‘OSHA works to clarify and                  operate certain cranes because their                  previous benefits estimate, which stated that the
                                              formulate the necessary requirements                    current certifications are not by crane               cranes standard would prevent 22 fatalities per
                                              for operator certification and                          capacity as currently called for in the               year, as meaning that the enforcement of the
                                              qualification under the final rule’’ as                 rule.’’ (ID–0618).                                    operator certification requirement would alone
                                                                                                                                                            prevent that number of fatalities. But as OSHA
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                                              ‘‘[t]here are still many questions that                    Commenters opposed to the extension                noted in the 2014 extension in response to similar
                                              require answers on the certification                    of the certification deadline expressed               assertions, in calculating the benefits from fatalities
                                              process and granting this extension will                concern that it would lead to unsafe                  prevented ‘‘OSHA did not identify individual
                                              enable OSHA to continue its work with                   worksites. (ID–0557, 0562/0665                        components of the standard, but rather calculated
                                                                                                                                                            the benefits of the entire cranes standard as a
                                              impacted parties to ensure compliance                   (duplicate comments), 0571, 0577, 0620,               whole. OSHA did not separately itemize benefits
                                              is met and clarity is achieved.’’ (ID–                  0629, 0644, 0649, 0652). Jack Pitt of                 accruing from the operator certification
                                              0642). Imperial Crane Services, Inc., and               Murray State University commented                     requirements.’’ (79 FR 57788, footnote 2).



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                                              51990            Federal Register / Vol. 82, No. 216 / Thursday, November 9, 2017 / Rules and Regulations

                                              with OSHA’s standard. The impact on                     extension of the employer duty, the                   indicative of the agency’s intent to
                                              the industry would be particularly                      standard would have no requirement to                 conduct an expedited process . . . . an
                                              unwarranted in light of OSHA’s public                   ensure that crane operators know how                  accelerated rulemaking would be
                                              disclosure to ACCSH during the                          to operate the crane safely during the                antithetical to the purpose and spirit of
                                              committee’s meeting on March 31 and                     operator certification extension.                     public engagement in the regulatory
                                              April 1, 2015, that the Agency intends                  Therefore it is important that the                    process.’’ (ID–0648). The National
                                              to propose removing the capacity                        Agency extend the employer duty while                 Association of Home Builders
                                              component of certification, which is the                it engages in subsequent rulemaking.                  recommends that OSHA delay the
                                              sole reason that most of these operator                                                                       deadline for the certification
                                                                                                      C. Length of the Extensions
                                              certifications would not comply with                                                                          requirements and extend the employer
                                              OSHA’s standard. OSHA also                                 Having determined that it is                       duty another three years or indefinitely,
                                              acknowledges the commenters’ point                      appropriate to delay the certification                arguing that ‘‘OSHA needs to ensure the
                                              that while there has been time for more                 deadline and extend the employer duty                 certification procedures will actually
                                              operators to become certified, many                     to ensure operator competence, the                    improve safety’’ and not allowing
                                              employers may have delayed in                           remaining issue is the length of the                  enough time to address certification
                                              requiring their employees to be certified               extension. In the NPRM, OSHA                          issues ‘‘only hurts the workers and the
                                              while they waited for OSHA to clarify                   proposed delaying the operator                        regulated community with continually
                                              the criteria for the certification so that              certification deadline and extending the              changing deadlines and requirements.’’
                                              they could avoid spending funds on a                    existing employer duty for one year,                  (ID–0598). ABC also recommended that
                                              certification that would not meet                       until November 10, 2018. OSHA                         both the deadline for the certification
                                              OSHA’s standard. To the extent that the                 requested comment on the duration of                  requirement be delayed and the
                                              Agency’s actions have contributed to                    the extension.                                        employer duty be extended indefinitely
                                              this uncertainty, OSHA agrees that it                      The majority of comments support
                                                                                                                                                            as recommended by ACCSH in 2014,
                                              would not be fair to penalize employers                 OSHA’s proposed extension of the
                                                                                                                                                            arguing that a one year delay ‘‘will not
                                              by enforcing the certification                          deadline for crane operator certification
                                                                                                                                                            provide a sufficient amount of time for
                                              requirement before completing the                       and the employer duty for one year. (ID–
                                                                                                                                                            OSHA to complete a further
                                              separate rulemaking to change that                      0545, 0561, 0563, 0566, 0572–575, 0578,
                                                                                                                                                            rulemaking. . . . Limiting the amount
                                              criteria. The additional one-year                       0580–582, 0585, 0588–600, 0602–605,
                                                                                                                                                            of time the agency has to complete the
                                              extension will provide the Agency with                  0607–614, 0617–618, 0621, 0624–627,
                                                                                                                                                            rulemaking could lead to rushed and
                                              the time it needs to address those                      0632–640, 0642–643, 0645–647, 0651,
                                                                                                                                                            unclear regulations.’’ (ID–0650).
                                              concerns.                                               0653, 0656–660, 0662–6664, 0666–667).
                                                                                                                                                               While OSHA appreciates the concern
                                                                                                      Some of these comments recommend
                                              B. Extension of the Existing Employer                                                                         of some stakeholders that a one-year
                                                                                                      that OSHA move as quickly as possible
                                              Duty                                                                                                          extension is an insufficient amount of
                                                                                                      to address these rules. (ID–0605, 0618,
                                                                                                                                                            time to address the issues raised by the
                                                The commenters who specifically                       0632, 0651, 0656). NCCCO agrees with
                                                                                                                                                            industry after publication of the crane
                                              addressed the extension of the existing                 the Agency’s proposed extension and
                                                                                                                                                            standard, OSHA is not persuaded an
                                              employer assessment duty were                           ‘‘urges OSHA to act with all speed to
                                                                                                                                                            extension longer than one year is
                                              unanimous in supporting the extension                   ultimately issue its Final Rule well
                                                                                                                                                            necessary. OSHA had not even decided
                                              to ensure that employers retained                       within the extension on this vitally
                                                                                                                                                            whether to pursue rulemaking when it
                                              responsibility for ensuring that their                  important safety issue. . . .’’ (ID–0632).
                                                                                                      Jonathan Branton of Murray State                      finalized the three-year extension in
                                              operators are competent to operate
                                                                                                      University commented that ‘‘this issue                2014. The Agency needed time to
                                              cranes. All of the comments opposed to
                                                                                                      does not need to be pushed back any                   determine what regulatory approach
                                              the one-year extension focused entirely
                                                                                                      further than one year’’ and it is                     would be appropriate for addressing the
                                              on certification and did not mention the
                                                                                                      ‘‘OSHA’s responsibility to not allow this             concerns raised by stakeholders after
                                              employer duty.
                                                The North America’s Building Trades                   to be further extended.’’ (ID–0605). The              publication of the crane standard. (79
                                              Union commented that ‘‘without the                      IUOE asked the Agency to ‘‘[p]lease do                FR 7613). OSHA took time to make site
                                              proposed extension there would not be                   everything in your power to ensure that               visits and spoke to over 40 industry
                                              an employer duty to ensure operators                    OSHA completes the process by                         representatives about crane operator
                                              can safely operate equipment, which not                 November 2018.’’ (ID–0651).                           certification and operator competency.
                                              only puts the operator at risk of fatality                 Additionally, OSHA received                        Using this information, OSHA drafted
                                              or injury, but also puts all construction               comments recommending an extension                    regulatory text that it presented to a
                                              workers around the equipment at risk as                 of three years and an indefinite                      special meeting of ACCSH on March 31,
                                              well as the general public on certain                   extension until OSHA addresses the                    and April 1, 2015, where several
                                              construction projects.’’ (ID–0618). The                 certification issues raised by                        stakeholders had the opportunity to
                                              IUOE argues that even if certification is               stakeholders after publication of the                 provide feedback to the Agency.6 OSHA
                                              required, ‘‘[c]ertification alone . . . is              2010 final cranes and derricks standard.              has taken the information from that
                                              simply insufficient in the absence of                      The National Propane Gas Association               meeting and worked to develop a
                                              subsequent employer qualification to                    (NPGA) recommended delaying the                       proposed rule addressing stakeholders’
                                              ensure that a crane operator is qualified               deadline for the certification                        concerns. OSHA has nearly completed
                                              to safely operate the crane to which he                 requirement and extending the                         that proposed rule and intends to
                                              or she is assigned.’’ (ID–0651).                        employer duty ‘‘at least three years’’,               publish it for public comment shortly.
                                                                                                                                                               OSHA is in a different point of the
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                                                While OSHA is not prepared to make                    arguing that ‘‘if three years was not an
                                              a determination whether certification                   adequate amount of time’’ to address                  process than it was three years ago and
                                              alone is insufficient as the IUOE claims,               certification issues raised by                        is confident that it will be able to
                                              OSHA agrees that in order to ensure safe                stakeholders, ‘‘it is not reasonable to                  6 Transcript for March 31: https://www.osha.gov/
                                              and competent crane operations during                   presume one year is sufficient.’’ (ID–                doc/accsh/transcripts/accsh_20150331.pdf;
                                              the one-year extension, the employer                    0648). The NPGA continues that ‘‘[w]e                 transcript for April 1: https://www.osha.gov/doc/
                                              duty must also be extended. Without an                  are concerned that the short delay is                 accsh/transcripts/accsh_20150401.pdf.



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                                                               Federal Register / Vol. 82, No. 216 / Thursday, November 9, 2017 / Rules and Regulations                                                 51991

                                              complete the rulemaking within the                      0555, 0564, 0567, 0598, 0606, 0639,                   this approach or any request for
                                              year extension without curtailing the                   0646, 0648, 0651, 0655, 0658, 0660,                   additional analysis of benefits. As noted
                                              opportunity for stakeholders and the                    0663, 0667). These comments, although                 elsewhere in this preamble, the primary
                                              general public to participate fully in the              related to operator certification and the             rationale for this final rule is to
                                              rulemaking process.                                     employer duty, are outside the scope of               maintain the status quo—including
                                                 The Agency rejects the calls for an                  this rulemaking and the narrowly                      preservation of the employer duty to
                                              indefinite extension for the same                       tailored issue OSHA proposed: Whether                 ensure that crane operators are
                                              reasons that it rejected them in 2014.                  the deadline for the operator                         competent—while providing OSHA
                                              Failing to specify a compliance deadline                certification requirements should be                  additional time to conduct rulemaking
                                              for operator certification is likely to                 delayed and whether the employer duty                 on the crane operator requirements in
                                              result in greater, not less, confusion. In              to ensure safe and competent crane                    response to stakeholder concerns.
                                              addition, if OSHA does not designate a                  operation should be extended by one                      Extending the employer’s requirement
                                              fixed period after which the certification              year.                                                 to ensure an operator’s competency
                                              requirements would automatically take                                                                         during this period means taking the
                                              effect, the Agency may face additional                  III. Agency Determinations                            same approach of the previous
                                              legal challenges to reinstating them.                   A. Final Economic Analysis and                        extension: Continuing measures in
                                              Moreover, OSHA has already dedicated                    Regulatory Flexibility Analysis                       existence since OSHA published the
                                              a significant amount of time and                                                                              crane standard in 2010. As OSHA stated
                                              resources to implementing the existing                     When it issued the final cranes rule in
                                                                                                      2010, OSHA prepared a final economic                  in the preamble to the 2010 final rule,
                                              standard, including conducting an                                                                             the interim measures in paragraph (k)
                                              extensive negotiated rulemaking process                 analysis (2010 FEA) as required by the
                                                                                                      Occupational Safety and Health Act of                 ‘‘are not significantly different from
                                              before requiring that employers ensure                                                                        requirements that were effective under
                                              their crane operators are certified. The                1970 (OSH Act; 29 U.S.C. 651 et seq.)
                                                                                                      and Executive Orders 12866 (58 FR                     subpart N of this part at former
                                              Agency therefore finds it prudent and                                                                         § 1926.550, § 1926.20(b)(4) (‘the
                                              efficient to maintain the status quo for                51735) (Sept. 30, 1993) and 13563 (76
                                                                                                      FR 3821 (Jan. 21, 2011)). OSHA also                   employer shall permit only those
                                              one more year while it considers                                                                              employees qualified by training or
                                              additional rulemaking.                                  published a Final Regulatory Flexibility
                                                                                                      Analysis as required by the Regulatory                experience to operate equipment and
                                                 The Agency must balance the                                                                                machinery’), and § 1926.21(b)(2) (‘the
                                              rationale for an additional extension                   Flexibility Act (5 U.S.C. 601–612). On
                                                                                                      September 26, 2014, the Agency                        employer shall instruct each employee
                                              against the concerns raised by the other                                                                      in the recognition and avoidance of
                                              commenters who point out that any                       included a separate FEA (2014 FEA)
                                                                                                      when it published a final rule delaying               unsafe conditions . . .’)’’ (75 FR 48027).
                                              unnecessary delay in the operator                                                                                Delaying the operator certification
                                              certification requirement could prevent                 until November 10, 2017, the deadline
                                                                                                                                                            requirement defers a regulatory
                                              the Agency from obtaining the full                      for all crane operators to become
                                                                                                                                                            requirement and produces cost savings
                                              safety benefit of the cranes standard. For              certified, and extending the employer
                                                                                                                                                            for employers. There will, however, be
                                              example, if OSHA delayed the operator                   duty to ensure operator competency for
                                                                                                                                                            continuing employer costs for extending
                                              certification requirement for another                   the same period (79 FR 57785). The
                                                                                                                                                            the requirement to assess operators
                                              three years but completed its                           preliminary economic analysis for this
                                                                                                                                                            under existing § 1926.1427(k)(2); if
                                              rulemaking within nine months, then                     crane rule extension (2017 PEA) was
                                                                                                                                                            OSHA does not extend these
                                              delaying the certification deadline                     based on these documents along with
                                                                                                                                                            requirements, they will expire in
                                              would be clearly excessive and                          further analysis and is the basis for this
                                                                                                                                                            November 2017 and employers would
                                              needlessly delay safety benefits. OSHA                  final economic analysis (FEA). There
                                                                                                                                                            not have these costs after 2017. With the
                                              believes that given the progress it has                 were no comments submitted to the
                                                                                                                                                            extension, these continuing employer
                                              made developing a rule addressing                       record in response to the 2017 PEA that
                                                                                                                                                            costs will be offset by a reduction in
                                              stakeholders’ concerns regarding                        included data that could alter OSHA’s
                                                                                                                                                            expenses that employers would
                                              operator certification, a one-year                      analysis; therefore, this FEA is
                                                                                                                                                            otherwise have been required to incur to
                                              extension of both the deadline for the                  substantially the same as the 2017 PEA.
                                                                                                         Because OSHA estimates this rule                   ensure that their operators are certified
                                              certification requirement and the                                                                             before the existing November 2017
                                              employer duty is appropriate.                           will have a cost savings for employers
                                                                                                      of $4.4 million using a discount rate of              deadline.
                                                 Therefore, OSHA has decided to delay
                                              the operator certification deadline for                 3 percent for the one year of the                     Overview
                                              one year, until November 10, 2018, and                  extension, this final rule is not                        In the following analysis, OSHA
                                              to extend the employer duty to ensure                   economically significant within the                   examines costs and savings to determine
                                              that crane operators are competent to                   meaning of Executive Order 12866, or a                the net economic effect of the rule. By
                                              operate a crane safely for the same one-                major rule under the Unfunded                         comparing the additional assessment
                                              year period, as it proposed. The Agency                 Mandates Reform Act or Section 804 of                 costs to the certification cost savings
                                              received no comment on the text of its                  the Small Business Regulatory                         across two scenarios—scenario 1 in
                                              proposed revision to § 1926.1427(k), and                Enforcement Fairness Act of 1996 (5                   which there is no extension of the 2017
                                              the final rule adopts the provision as                  U.S.C. 801 et seq.).                                  deadline, and scenario 2 in which there
                                              proposed.                                                  This FEA focuses solely on costs, and
                                                                                                                                                            is an extension until 2018—OSHA
                                                                                                      not on any changes in safety and
                                              D. Comments Outside the Scope of This                                                                         estimates that the extension will
                                                                                                      benefits resulting from delaying the
                                              Rulemaking                                                                                                    produce a net savings for employers of
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                                                                                                      certification deadline and extending the
                                                                                                                                                            $4.4 million per year using a discount
                                                 OSHA received comments to this                       employer duties under
                                                                                                                                                            rate of 3 percent ($5.2 million per year
                                              rulemaking that, in part or in whole,                   § 1926.1427(k)(2). As OSHA noted in its
                                                                                                                                                            using an interest rate of 7 percent).7
                                              asked the agency to consider                            proposal, the Agency previously
                                              alternatives and revisions to the                       provided its assessment of the benefits                 7 As explained in the following discussion, OSHA
                                              certification requirements from the 2010                of the cranes standard in the 2010 FEA.               typically calculates the present value of future costs
                                              final rule. (ID–0544, 0546, 0548, 0549,                 OSHA did not receive any comment on                                                               Continued




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                                              51992            Federal Register / Vol. 82, No. 216 / Thursday, November 9, 2017 / Rules and Regulations

                                                OSHA’s analysis follows the steps                     tests from the 2014 extension, drawing                in the 2014 extension. From this survey
                                              below to reach its estimate of an annual                primarily from informal conversations                 a crane operator’s (Standard
                                              net $4.4 million in savings:                            with industry sources who participated                Occupational Classification (SOC) 53–
                                                (1) Estimate the annual assessment                    in the public stakeholder meetings.                   7021 Crane and Tower Operators)
                                              costs for employers;                                       The Agency estimates separate                      average hourly wage is $26.58. The full
                                                (2) Estimate the annual certification                 assessment costs for three types of                   cost to the employer includes all
                                              costs for employers; and                                affected operators, which together                    benefits as well as the wage. From the
                                                (3) Estimate the year-by-year cost                    comprise all affected operators: Those                BLS Employer Costs For Employee
                                              differential for delaying the certification             who have a certificate that is in                     Compensation for December 2016 (BLS
                                              deadline to 2018.8                                      compliance with the existing cranes                   2017b) the average percentage of
                                                The methodology used here is                          standard; those who have a certificate                benefits in total for the construction
                                              substantially the same as used in the                   that is not in compliance with the                    sector is 30.2 percent, giving a markup
                                              2014 extension FEA, and OSHA did not                    existing cranes standard; and those who               of the wage to the total compensation of
                                              receive any comment on this                             have no certificate.9 As it did in the                1.43 (1/(1 ¥ 0.302)). Hence the
                                              methodology when it included it in the                  previous extension, OSHA uses                         ‘‘loaded’’ total hourly cost of an operator
                                              2017 PEA. Below, Table 1 summarizes                     certification status as a proxy of                    is $38.08 (1.43 × $26.58), including a
                                              these costs and the differentials across                competence in estimating the amount of                markup for benefits.10 Relying on the
                                              the two scenarios. The major differences                assessment time needed for different                  same sources, the wage of the assessor
                                              are updated wages and a revised                         operators. OSHA expects that an                       is estimated to be the same as the
                                              forecast of the composition of the                      operator already certified to operate                 average wage of a construction
                                              operator pool across certification levels.              equipment of a particular type and                    supervisor (53–1031 First-Line
                                              The 2014 FEA analysis addressed a 3-                    capacity will require less assessment                 Supervisors of Transportation and
                                              year extension, so it gradually increased               time than an operator certified by type               Material-Moving Machine and Vehicle
                                              the number of operators without any                     but not capacity, who in turn will                    Operators) of $28.75, while the total
                                              certification during that period. The                   require less time than an operator who                hourly cost is $41.19 (1.43 × $28.75).
                                              model in this PEA addresses an                          is not certified. In deriving these                   Below these total hourly costs will be
                                              extension of just a single year, so it                  estimates, OSHA determined that                       referred to as the respective
                                              holds the number of operators with each                 operators who have a certificate that is              occupation’s ‘‘wage.’’ For assessments
                                              certification level constant. The latter                compliant with the crane standard                     performed by an employer of a
                                              significantly simplifies the analysis                   would have to complete a test that is the             prospective employee (i.e., a candidate),
                                              versus that presented in the 2014 FEA                   equivalent of the practical part of the               OSHA uses these same operator and
                                              extension.                                              standard crane operator test. The                     assessor wages and the above testing
                                              a. Annual Assessment Costs                              Agency estimates that it would take an                times to estimate the cost of assessing
                                                                                                      operator one hour to complete this test.              prospective employees.
                                                 OSHA estimated the annual                                                                                     Multiplying the wages of operators,
                                                                                                      Operators who have a certificate that is
                                              assessment costs using the following                                                                          assessors, and candidates by the time
                                                                                                      not in compliance with the cranes
                                              three steps: First, determine the unit                                                                        taken for each type of assessment
                                                                                                      standard would have to complete a test
                                              costs of meeting this requirement;                                                                            provides the cost for each type of
                                                                                                      that is equivalent to both a written
                                              second, determine the number of                                                                               assessment. Hence, the cost of assessing
                                                                                                      general test and a practical test of the
                                              assessments that employers will need to                                                                       an operator already holding a certificate
                                                                                                      standard crane operator test. OSHA
                                              perform in any given year (this                                                                               that complies with the standard (both
                                                                                                      estimated that the written general test
                                              determination includes estimating the                                                                         type and capacity) is one hour of both
                                                                                                      would take 1.5 hours to complete, for a
                                              affected operator pool as a preliminary                                                                       the operator’s and assessor’s time:
                                                                                                      total test time of 2.5 hours of testing for
                                              step); and finally, multiply the unit                                                                         $79.27 ($38.08 + $41.19). For an
                                                                                                      each operator (1.5 hours for the written
                                              costs of meeting the requirement by the                                                                       operator with a certificate for crane type
                                                                                                      general test and 1.0 hour for the
                                              number of operators who must meet it                                                                          only (not crane capacity), the
                                                                                                      practical test). Finally, operators with
                                              in any given year.                                                                                            assessment time is 2.5 hours for a cost
                                                 Unit assessment costs. OSHA’s unit                   no certificate would have to complete a
                                                                                                      test that is equivalent to the standard               of $198.17 (2.5 × ($38.08 + $41.19)).
                                              cost estimates for assessments take into                                                                      Finally, for an operator with no
                                              account the time needed for the                         written test for a specific crane type
                                                                                                      (also lasting 1.5 hours), as well as the              certificate, the assessment time is 4.0
                                              assessment, along with the wages of                                                                           hours for a cost of $317.48 (4.0 × ($38.08
                                              both the operator and the personnel                     written general test and the practical
                                                                                                      test, for a total test time of 4.0 hours (1.5         + $41.19)). OSHA did not receive any
                                              who will perform the assessment. OSHA                                                                         comments on these unit cost estimates.
                                              based the time requirements on crane                    hours for the test on a specific crane
                                                                                                      type, 1.5 hours for the written general                  Besides these assessment costs, OSHA
                                              operator certification exams currently                                                                        notes that § 1926.1427(k)(2)(ii) requires
                                              offered by nationally accredited testing                test, and 1.0 hour for the practical test).
                                                                                                         The wages used for the crane operator              employers to provide training to
                                              organizations. OSHA determined the                                                                            employees if they are not already
                                                                                                      and assessor come from the BLS
                                              time needed for various certification                                                                         competent to operate their assigned
                                                                                                      Occupational Employment Survey for
                                                                                                      May 2016 (BLS 2017a), which is an                     equipment. To determine whether an
                                              and benefits using two interest rate assumptions, 3
                                              percent and 7 percent, as recommended by OMB            updated version of the same source used               operator is competent, the employer
                                              Circular A–4 of September 17, 2003. All dollar                                                                must first perform an assessment. Only
                                              amounts unless otherwise stated are in 2016               9 OSHA is not making any determination about        if an operator fails the assessment must
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                                              dollars.                                                whether a specific certification complies with the    the employer provide additional
                                                8 Though this is a single year extension, the         requirements of the cranes standard. For the          operator training required by
                                              analysis needs to extend over several future years.     purposes of this analysis only, OSHA will treat
                                              For convenience, OSHA refers to the annual time         certificates that do not include a multi-capacity     § 1926.1427(k)(2)(ii).
                                              period as a ‘‘Certification Year’’ (CY) in this         component as not complying with the cranes
                                              economic analysis, which OSHA defines as ending         standard, and certificates that include both a type     10 Calculations in the text may not exactly match

                                              November 10 of the calendar year; e.g., CY 2017         and multi-capacity component as complying with        due to rounding for presentation purposes. All final
                                              runs from November 10, 2016, to November 9, 2017.       the cranes standard.                                  costs are exact, with no rounding.



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                                                               Federal Register / Vol. 82, No. 216 / Thursday, November 9, 2017 / Rules and Regulations                                       51993

                                                 However, in determining this cost,                      For the purpose of determining the                    Assuming the turnover rate of 23
                                              OSHA made a distinction between a                       number of assessments required each                   percent and the failure rate of 15
                                              nonemployee candidate for an operator                   year under this proposal, OSHA is                     percent for turnover-related assessments
                                              position and an operator who is                         relying on the 23 percent turnover rate               are distributed proportionally across the
                                              currently an employee. For an employer                  for operators originally identified in the            three types of operators, then the
                                              assessing a nonemployee candidate,                      2008 PEA for the crane rule and used                  number of assessments for operators
                                              OSHA assumed, based on common                           most recently in the 2014 extension FEA               with compliant certification is 3,968
                                              industry practice, that the employer will               (79 FR 57793) and the 2017 PEA for this               ((0.23 + (0.23 × 0.15)) × 15,000), the
                                              not hire a nonemployee candidate who                    rule. OSHA requested comment on this                  number of assessments for operators
                                              fails the assessment. In the second                     rate, but received none.                              with type-only certification is 18,965
                                              situation, an employee qualified to                        This turnover rate includes all types              ((0.23 + (0.23 × 0.15)) × 71,700), and the
                                              operate a crane fails an assessment for                 of operators who would require                        number of assessments for operators
                                              a crane that differs in type or capacity                assessment: Operators moving between                  with no certification is 8,049 ((0.23 +
                                              from the crane the employee currently                   employers; operators moving between                   (0.23 × 0.15)) × 30,430).
                                              operates. In this situation, the cost-                  different types and/or capacities of                     Under scenario 2, there is an
                                              minimizing action for the employer is                   equipment; and operators newly                        extension and employers would not
                                              not to assign the employee to that new                  entering the occupation. OSHA                         certify all of their operators during CY
                                              type and/or capacity crane, thereby                     estimated that 26,940 assessments occur               2017. OSHA estimated the CY 2017
                                              avoiding training costs. While the                      each year based on turnover (i.e.,                    assessment costs for scenario 2 by
                                              Agency acknowledges that there will be                  117,130 operators × 0.23 turnover rate).              multiplying the assessment numbers for
                                              cases in which the employer will                        In addition, just as it did with the                  each type of operator by the unit costs,
                                              provide this training, it believes these                previous extension, OSHA assumed that                 resulting in a cost of $6,624,861 (($79.27
                                              costs to be minimal and, therefore, is                  15 percent of operators involved in                   × 3,968) + ($198.17 × 18,965) + ($317.08
                                              not estimating costs for the training.                  assessments related to turnover would                 × 8,049)). Under scenario 1, the
                                              OSHA made the same determinations in                    fail the first test administration and                employer-assessment requirement will
                                              the 2017 PEA and did not receive public                 need reassessment (79 FR 57793).                      be in effect for all of CY 2017, while
                                              comment on them.                                        Therefore, OSHA added 4,041                           employers would be gradually certifying
                                                 Number of assessments and number                     reassessments (26,940 assessments ×                   all of their operators during CY 2017. As
                                              of affected operators. The number of                    0.15) to the number of reassessments                  a result, the CY 2017 assessment costs
                                              assessments is difficult to estimate due                resulting from turnover, for an annual                identified for scenario 2 would decrease
                                              to the heterogeneity of the crane                       total of 30,981 assessments resulting                 to $4,540,348 from $6,624,861 in
                                              industry. Many operators work                           from turnover and test failure (26,940 +              scenario 1. This is because, as compared
                                              continuously for the same employer,                     4,041).                                               to scenario 2, there will be more
                                              already have had their assessment, and                     Annual assessment costs. OSHA must                 operators who will have a compliant
                                              do not need reassessment, so the                        determine the annual base amount for                  certificate; and therefore, under the
                                              number of new assessments required by                   the two scenarios: (1) Retaining the                  approach described above the employer
                                              the cranes standard for these operators                 original 2017 deadline (status quo); and              assessment will require less time. This
                                              will be zero. Some companies will rent                  (2) delaying the deadline to 2018                     reduction in the estimated time; and
                                              both a crane and an operator employed                   (extension NPRM).                                     therefore, unit cost, lowers the overall
                                              by the crane rental company to perform                     The first part of the calculation is the           assessment cost (see discussion in the
                                              crane work, in which case the rental                    same under both scenarios. Because the                2014 deadline extension FEA for more
                                              crane company is the operator’s                         annual assessment costs vary by the                   details about this methodology).
                                              employer and responsible for operator                   different levels of assessment required                  Under both scenarios, once the
                                              assessment. In such cases there is no                   (depending on the operator’s existing                 certification requirement becomes
                                              requirement for the contractor who is                   level of certification), OSHA grouped                 effective, the employer duty to assess
                                              renting the crane service to conduct an                 the 117,130 operators subject to the                  the crane operator no longer is in effect
                                              additional operator assessment.                         crane standard into three classifications:            and so assessment costs are zero. Thus,
                                              Assuming that employers already                         Operators with a certificate that                     in CY 2018, the assessment costs under
                                              comply with the assessment and                          complies with the standard; operators                 scenario 1 would be zero. Under
                                              training requirements of the existing                   with a certificate only for crane type;               scenario 2, the assessment costs for CY
                                              § 1926.1427(k)(2), employers only need                  and operators with no certification. In               2018 would be the same as those under
                                              to assess a subset of operators: New                    order to simplify the estimation for this             scenario 1 for CY 2017, because
                                              hires; employees who will operate                       one-year extension (the 2014 extension                employers would be gradually certifying
                                              equipment that differs by type and/or                   was for 3 years) and reflect the last hard            operators over the course of that year.
                                              capacity from the equipment on which                    data point the Agency has, the Agency
                                                                                                      is using a static crane operator pool and             b. Annual Certification Costs
                                              they received their current assessment;
                                              and operators who indicate that they no                 the composition of the base operator                     OSHA estimated the annual
                                              longer possess the required knowledge                   population used in the 2014 deadline                  certification costs using the three steps:
                                              or skill necessary to operate the                       extension: 15,000 crane operators                     First, determine the unit costs of
                                              equipment.                                              currently have a certificate that                     meeting this requirement; second,
                                                 To calculate the estimated annual                    complies with the existing cranes                     determine the number of affected
                                              number of assessments, OSHA first                       standard, 71,700 have a certificate for               operators; and, finally, multiply the unit
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                                              estimated the current number of crane                   crane type only (but not capacity),                   costs of meeting the requirement by the
                                              operators affected by the cranes                        leaving 30,430 crane operators with no                number of operators who must meet
                                              standard. The 2014 FEA estimated                        crane certification (117,130 total                    them. In this FEA, following the same
                                              117,130 operators and this FEA also                     operators ¥ (15,000 operators with                    methodology as in the 2014 FEA, OSHA
                                              uses this estimate. The Agency solicited                compliant certification + 71,700                      estimates that all certifications occur in
                                              comment and additional data on this                     operators with certification for type                 the year prior to the deadline, hence in
                                              estimate but received none.                             only)).                                               CY 2017 in scenario 1, while in CY 2018


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                                              51994            Federal Register / Vol. 82, No. 216 / Thursday, November 9, 2017 / Rules and Regulations

                                              for the one-year extension in scenario 2.               written test of 1.5 hours (4.0 hours ×                need such periodic recertification. If we
                                              As in the annual assessment-cost                        $38.08) + $250)).11                                   approximate the timing of requirements
                                              analysis described above, OSHA                             For scenario 1, § 1926.1427(b)(4)                  for recertification as distributed
                                              provides the calculations for CY 2017                   specifies that a certificate is valid for             proportionally across years, then 20
                                              under the existing 2017 deadline                        five years. OSHA estimates the                        percent of all operators with a 5-year
                                              (scenario 1), and then presents the                     recertification unit cost would be the                certificate (22,255 operators (.20 ×
                                              certification costs for CY 2018 that                    same as the assessment for an operator                111,274)) would require recertification
                                              result from OSHA’s delay of the                         with compliant certification (i.e.,                   each year.
                                              certification requirement to November                   $79.27). In the 2014 extension, OSHA                     A final category of unit certification
                                              2018 (scenario 2).                                      assumed that employers would pay a                    costs involves the continuing need for
                                                 Unit certification costs. Unit                       reduced fee for the recertification testing           certified operators to obtain further
                                              certification costs vary across the three               as opposed to the cost of a full first-time           certification when assigned to a crane
                                              different types of operators in the                     examination. Because OSHA lacked                      that differs by type and/or capacity from
                                              operator pool (operators with compliant                 data on exactly how much the fee would                the crane on which they received their
                                              certification; operators with type-only                 be reduced, it used the assessment cost               current certification. This situation
                                              certification; and operators with no                    as a proxy for the cost of recertification            arises for both operators working for a
                                              certification). Among operators without                 (79 FR 57794). OSHA did not receive                   single employer and operators switching
                                              certification there is a further                        any comment on that approach and is                   employers.
                                              distinction with different unit                         retaining it for this FEA.                               The operators who will not need
                                              certification costs: Experienced                           Finally, there will be certified                   multiple certifications in the post-
                                              operators without certification and                     operators who must obtain certification               deadline period are operators with
                                              operators who have only limited                         when assigned to a crane that differs by              certification who move to a new
                                              experience. As such, there are different                type and/or capacity from the crane on                employer and operate a crane with the
                                              unit certification costs for four different             which they received their current                     same type and capacity as the crane on
                                              types of operators. There also are                      certification. This situation requires                which they received certification while
                                              ongoing certification costs due to the                  additional training, but less training                with their previous employer. These
                                              following two conditions: The                           than required for a ‘‘new’’ operator with             operators will not need multiple
                                              requirement for re-certification every                  only limited experience. Accordingly,                 certifications because operator
                                              five years and the need for some                        OSHA estimated the cost for these                     certificates are portable across
                                              certified operators to obtain additional                operators as one half of the cost of                  employers, as specified by the cranes
                                              certification to operate a crane that                   training and certifying a new operator,               standard (see § 1926.1427(b)(3)). For an
                                              differs by type and/or capacity from the                or $1,092.72 ($2,185.44/2).                           employer looking to hire an operator for
                                              crane on which they received their                         Number of certifications. After                    a specific crane, this option will
                                              current certification.                                  establishing the unit certification costs,            minimize cost, and OSHA assumes
                                                 OSHA estimated these different unit                  OSHA had to determine how many                        employers will choose this option when
                                              certification costs using substantially                 certifications are necessary to ensure                possible.
                                              the same unit-cost assumptions used in                  compliance with OSHA’s standard. In                      After the certification deadline, OSHA
                                              the FEA for the 2010 cranes standard                    doing so, the Agency uses the 5 percent               estimates that each year 23 percent of
                                              (and exactly the same as the FEA of the                 new-hire estimate from the FEA                        the 117,130 operators (26,940 = 0.23 ×
                                              2014 deadline extension). In those                      discussed above to calculate the number               117,130) will enter the workforce,
                                              previous FEAs, OSHA estimated that                      of new operators; therefore, of the                   change employers, or take on new
                                              training and certification costs for an                 117,130 operators affected by the                     positions that require one or more
                                              operator with only limited experience                   standard, 5,857 (0.05 × 117,130) would                additional certifications to operate
                                              would consist of $1,500 for a 2-day                     be new operators who would require                    different types and/or capacities of
                                              course (including tests) and 18 hours of                two days for training and certification               cranes. Of these 26,940 operators, OSHA
                                              the operator’s time, for a total cost of                each year. As discussed earlier, OSHA                 estimates 5 of the total 23 percent, or
                                              $2,185.44 ($1,500 + (18 hours × $38.08))                estimated that 71,700 operators have                  5,857 (0.05 × 117,130), will result from
                                              (see 75 FR 48096–48097). OSHA                           type-only certification, 15,000 operators             new operators entering the occupation
                                              continues to use a cost of $250 for the                 have certification that complies with the             each year; 9 percent, or 10,542 (0.09 ×
                                              tests taken without any training (a                     existing cranes standard, and the                     117,130), will result from operators
                                              constant fixed fee irrespective of the                  remaining 24,574 operators (117,130 ¥                 switching employers but operating a
                                              number of tests (75 FR 48096)), and the                                                                       crane of the same type and capacity as
                                                                                                      (71,700 + 15,000 + 5,857)) are
                                              same number of hours used for each test                                                                       the crane they operated previously (i.e.,
                                                                                                      experienced operators without
                                              that it used in the assessment                                                                                no certification needed because
                                                                                                      certification.
                                              calculations provided above (which the                     Under scenario 1 (no extension), after             certification is portable in this case);
                                              Agency based on certification test                      all operators attain certification by                 and the remaining 9 percent, or 10,542,
                                              times). Accordingly, OSHA estimates                     November 2017 there will still be                     changing jobs or positions and requiring
                                              the cost of a certificate compliant with                ongoing certification costs each year.                one or more additional certification to
                                              the crane standard for an operator who                  With a constant total number of                       operate a crane that differs by type and/
                                              has a type-only certificate to be $345.20               operators, the same number of operators               or capacity from the crane they operated
                                              (i.e., 1 type/capacity-specific written                 (5,857) will be leaving the profession                previously. These percentages are
                                              test at 1.5 hours and 1 practical test at               each year and will not require                        identical to those in the 2014 FEA and
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                                              1.0 hours (2.5 hours total), plus the                   recertification when their current 5-year             the 2017 PEA.
                                              fixed $250 fee for the tests (2.5 hours ×               certification ends. This leaves 111,274
                                                                                                                                                               Annual certification costs. To
                                              $38.08) + $250). For an experienced                                                                           estimate the annual base cost for the
                                                                                                      operators (117,130 ¥ 5,857) who will
                                              operator with no certificate, the cost is                                                                     first scenario, OSHA calculates the
                                              $402.32 (i.e., the same as the cost for an                11 There are no certification costs for operators   certification costs for CY 2017 because
                                              operator with a type-only certificate                   who already have a certificate that complies with     that is the remaining period before the
                                              plus the cost of an added general                       the cranes standard.                                  existing deadline. The total cost for


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                                                                   Federal Register / Vol. 82, No. 216 / Thursday, November 9, 2017 / Rules and Regulations                                                                                                     51995

                                              certifying all operators in CY 2017 in                                               numbers are the same, just shifted                                 cost savings for each year attributable to
                                              accordance with the existing cranes                                                  forward a year, so the total cost for                              scenario 2. OSHA calculated the present
                                              standard using the above unit-cost                                                   having all crane operators certified in                            value of each year’s differential, which
                                              estimates and numbers of operators is                                                CY 2018 is $47,436,368 (in 2018                                    provides a consistent basis for
                                              $47,436,368 ((71,700 operators with                                                  dollars).                                                          comparing the cost differentials over the
                                              type-only certification × $345.20) +                                                 c. Year-by-Year Cost Differential for                              extended compliance period. OSHA
                                              (24,574 experienced operators without                                                Delaying the Certification Deadline to                             then annualized the present value of
                                              certification × $402.32) + (5,857                                                    2018 and Preserving the Employer                                   each differential to identify an annual
                                              operators with no experience or                                                      Assessment Duty Over That Same                                     amount that accounts for the discounted
                                              certification × $2,185.44)). The Agency,                                             Period                                                             costs over this period. Table 1 below
                                              following the previous FEAs (75 FR                                                                                                                      summarizes these calculations.
                                                                                                                                      The ultimate goal of this analysis is to
                                              48096 and 79 FR 57795), annualized                                                                                                                         Table 1 shows that assessment and
                                                                                                                                   determine the annualized cost
                                              this cost for the five-year period during                                                                                                               certification costs are just shifted out
                                                                                                                                   differential between scenario 1 (the
                                              which operator certification remains                                                                                                                    another year. As noted earlier, OSHA
                                                                                                                                   status quo) and scenario 2 (the
                                              effective, resulting in an annualized cost                                           extensions of the certification date and                           estimated the overall cost differential
                                              of $8,447,719. In section c below, OSHA                                              the employer assessment duty), so the                              between these two scenarios by
                                              uses this amount in calculating the                                                  final part of this PEA compares the                                calculating the difference in total
                                              annual certification costs under scenario                                            yearly assessment and certification costs                          (assessment and certification) costs each
                                              1.                                                                                   employers will incur under the two                                 year across the two scenarios. The net
                                                 To determine the annual amount used                                               scenarios. Because the assessment and                              employer cost savings in current dollars
                                              in calculations for the second scenario                                              certification costs change across years                            attributable to adopting the second
                                              (the extension to 2018), OSHA examines                                               under each scenario, OSHA must                                     scenario are, for each certification year:
                                              the costs in CY 2017 because that is the                                             compare the cost differential in each                              2017, $18.2 million; 2018, $8.7 million;
                                              first year with certification costs. All                                             year separately to determine the annual                            2019–2021, $0; 2022, ¥$7.5 million.12
                                                             TABLE 1—YEAR-BY-YEAR COST DIFFERENTIAL IF OSHA DELAYS THE CERTIFICATION DEADLINE TO 2018
                                                                        Certification year                                                 2017                  2018                2019                  2020                 2021               2022           2023

                                                                                                                                                      Operator Pool

                                              Scenario 1 (No Deadline Extension)
                                                 Operators with Non-Compliant Certification ............                                          71,700                    0               0                     0                    0                 0               0
                                                 Operators with Compliant Certification ....................                                      15,000              111,274         111,274               111,274              111,274           111,274         111,274
                                                 Operators with No Certification ................................                                 24,574                    0               0                     0                    0                 0               0
                                                 New Operators .........................................................                           5,857                5,857           5,857                 5,857                5,857             5,857           5,857
                                              Scenario 2 (Deadline Extension)
                                                 Operators with Non-Compliant Certification ............                                          71,700                71,700              0                     0                    0                 0              0
                                                 Operators with Compliant Certification ....................                                      15,000                15,000        111,274               111,274              111,274           111,274        111,274
                                                 Operators with No Certification ................................                                 24,574                24,574              0                     0                    0                 0              0
                                                 New Operators .........................................................                           5,857                 5,857          5,857                 5,857                5,857             5,857          5,857

                                                                                                                                                           Costs

                                              Scenario 1 (No Deadline Extension)
                                                 Total Assessment Costs ..........................................                           4,540,348                      0             0                     0                    0                    0            0
                                                 Total Certification Costs ...........................................                      20,362,269             33,645,533    33,645,533            33,645,533           33,645,533           26,082,317   26,082,317

                                                         Total Costs ........................................................               24,902,617             33,645,533    33,645,533            33,645,533           33,645,533           26,082,317   26,082,317

                                              Scenario 2 (Deadline Extension)
                                                 Total Assessment Costs ..........................................                           6,624,861              4,540,348             0                     0                    0                    0            0
                                                 Total Certification Costs ...........................................                               0             20,362,269    33,645,533            33,645,533           33,645,533           33,645,533   26,082,317

                                                         Total Costs ........................................................                6,624,861             24,902,617    33,645,533            33,645,533           33,645,533           33,645,533   26,082,317

                                                               Cost Differential (Scenario 2 ¥ Scenario
                                                                 1) ............................................................          (18,277,756)             (8,742,916)   ..................    ..................   ..................    7,563,216   ..................
                                                Source: OSHA, ORA Calculations.



                                                OSHA next determined the present                                                   savings of $20.2 million ($21.3 million                            costs. It is important to note that there
                                              value of these cost differentials between                                            using the 7 percent rate). Finally,                                is not one broadly accepted overhead
                                              the two scenarios. OSHA calculated the                                               annualizing the present value over five                            rate and that the use of overhead to
                                              present value of future costs using two                                              years results in an annualized cost                                estimate the marginal costs of labor
                                              interest rates assumptions, 3 percent                                                differential (i.e., net employer cost                              raises a number of issues that should be
                                              and 7 percent, which follow the OMB                                                  savings) of $4.4 million per year ($5.2                            addressed before applying overhead
                                              guidelines specified by Circular A–4. At                                             million per year using the 7 percent                               costs to analyze the costs of any specific
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                                              an interest rate of 3 percent, the present                                           rate).                                                             regulation. There are several approaches
                                              value of the cost differentials for CY                                                 As a sensitivity analysis the Agency                             to look at the cost elements that fit the
                                              2017 onwards results in an estimated                                                 looked at including possible overhead                              definition of overhead and there are a
                                                12 A positive cost differential indicates cost                                     lower cost of assessments versus certification. Then               annualized certification costs for scenario 2, while
                                              savings and a negative cost differential indicates net                               net costs in year 2022 are due to the last year of                 this cost ends in year 2021 for scenario 1.
                                              costs. Savings in the first two years is due to the



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                                              51996            Federal Register / Vol. 82, No. 216 / Thursday, November 9, 2017 / Rules and Regulations

                                              range of overhead estimates currently                   after November 10, 2017. Without the                  information or any permanent change to
                                              used within the Federal government—                     one-year extension, these entities will               the collection program. As a result, the
                                              for example, the Environmental                          have no separate assessment duty, but                 Agency did not submit an ICR to OMB.
                                              Protection Agency has used 17                           under the one-year extension they will                  The Agency notes that a Federal
                                              percent,13 and government contractors                   have the expense involved in assessing                agency generally cannot conduct or
                                              have been reported to use an average of                 operator competency. As noted above,                  sponsor a collection of information, and
                                              77 percent.14 15 Some overhead costs,                   however, OSHA estimated the                           the public is generally not required to
                                              such as advertising and marketing, vary                 maximum cost for such an assessment                   respond to an information collection,
                                              with output rather than with labor costs.               (for operators with no certification) to be           unless it is approved by OMB under the
                                              Other overhead costs vary with the                      $317.08 per certified operator.                       PRA and displays a currently valid
                                              number of new employees. For example,                      Small businesses will, by definition,              OMB Control Number. In addition,
                                              rent or payroll processing costs may                    have few operators, and OSHA believes                 notwithstanding any other law, no
                                              change little with the addition of 1                    the $317.08 cost will be well below 1                 person may generally be subject to
                                              employee in a 500-employee firm, but                    percent of revenues, and well below 5                 penalty for failing to comply with a
                                              those costs may change substantially                    percent of profits, in any industry sector            collection of information that does not
                                              with the addition of 100 employees. If                  using cranes. OSHA does not consider                  display a valid Control Number.16
                                              an employer is able to rearrange current                such small amounts to represent a
                                                                                                                                                            C. Federalism
                                              employees’ duties to implement a rule,                  significant impact on small businesses
                                              then the marginal share of overhead                     in any industry sector. Hence, OSHA                     OSHA reviewed this final rule in
                                              costs such as rent, insurance, and major                certifies this final rule will not have a             accordance with the Executive Order on
                                              office equipment (e.g., computers,                      significant impact on a substantial                   Federalism (Executive Order 13132, 64
                                              printers, copiers) would be very difficult              number of small entities. After                       FR 43255, August 10, 1999), which
                                                                                                      providing relatively similar estimates in             requires that Federal agencies, to the
                                              to measure with accuracy (e.g.,
                                                                                                      the 2014 FEA, OSHA made the same                      extent possible, refrain from limiting
                                              computer use costs associated with 2
                                                                                                      certification in the 2014 FEA and                     State policy options, consult with States
                                              hours for rule familiarization by an
                                                                                                      proposed the same certification in the                prior to taking any actions that would
                                              existing employee).
                                                                                                      2017 PEA but did not receive any                      restrict State policy options, and take
                                                If OSHA had included an overhead
                                                                                                      adverse comment on either the                         such actions only when clear
                                              rate when estimating the marginal cost
                                                                                                      certification or its underlying rationale.            constitutional authority exists and the
                                              of labor, without further analyzing an
                                                                                                                                                            problem is national in scope. Executive
                                              appropriate quantitative adjustment,                    B. Paperwork Reduction Act                            Order 13132 provides for preemption of
                                              and adopted for these purposes an                          The Paperwork Reduction Act (PRA)                  State law only with the expressed
                                              overhead rate of 17 percent on base                     requires Federal agencies to obtain the               consent of Congress. Federal agencies
                                              wages, as was done in a sensitivity                     Office of Management and Budget                       must limit any such preemption to the
                                              analysis in the FEA in support of                       (OMB) approval of information                         extent possible.
                                              OSHA’s 2016 final rule on Occupational                  collection requirements before an                       Under Section 18 of the Occupational
                                              Exposure to Respirable Crystalline                      Agency can conduct or sponsor the                     Safety and Health Act of 1970 (OSH Act;
                                              Silica, the overhead costs would                        information collection requirement; and               29 U.S.C. 651 et seq.), Congress
                                              increase cost savings from $4.4 million                 to display the OMB control (approval                  expressly provides that States and U.S.
                                              to $4.5 million at a discount rate of 3                 number) (44 U.S.C. 3507(d)). Agencies                 territories may adopt, with Federal
                                              percent, an increase of 1.8 percent, and                submit an Information Collection                      approval, a plan for the development
                                              would increase cost savings from $5.2                   Request (ICR), with paperwork analysis,               and enforcement of occupational safety
                                              million to $5.3 million at a discount rate              to OMB seeking approval of their                      and health standards. OSHA refers to
                                              of 7 percent, an increase of 1.9 percent.               paperwork requirements. The                           such States and territories as ‘‘State Plan
                                              d. Certification of No Significant Impact               information collection requirements in                States.’’ Occupational safety and health
                                              on a Substantial Number of Small                        the Cranes and Derricks in Construction               standards developed by State Plan
                                              Entities                                                Standard (29 CFR part 1926, subpart CC)               States must be at least as effective in
                                                                                                      have been approved by OMB in the ICR                  providing safe and healthful
                                                Most employers will have savings                      titled Cranes and Derricks in                         employment and places of employment
                                              resulting from the one-year extension,                  Construction Standard (29 CFR part                    as the Federal standards. 29 U.S.C. 667.
                                              particularly employers that planned to                  1926, subpart CC), under OMB control                  Subject to these requirements, State
                                              pay for operator certification in the year              Number 1218–0261. These paperwork                     Plan States are free to develop and
                                              before the existing 2017 deadline. The                  requirements expire on February 28,                   enforce under State law their own
                                              only entities likely to see a net cost will             2020.                                                 requirements for safety and health
                                              be entities that planned to hire an                        In the August 30, 2017 NPRM, OSHA                  standards.
                                              operator with compliant certification                   notified the public that the Agency                     OSHA previously concluded from its
                                                 13 U.S. Environmental Protection Agency, ‘‘Wage
                                                                                                      believed the proposed Cranes and                      analysis that promulgation of subpart
                                              Rates for Economic Analyses of the Toxics Release
                                                                                                      Derricks in Construction: Operator                    CC complies with Executive Order
                                              Inventory Program,’’ June 10, 2002.                     Certification Extension rule did not                  13132 (75 FR 48128–29). In States
                                                 14 Grant Thornton LLP, 2015 Government               contain additional collection of                      without an OSHA-approved State Plan,
                                              Contractor Survey. (https://                            information, and that OSHA did not                    this final rule limits State policy options
                                              www.grantthornton.com/∼/media/content-page-             believe it was necessary to submit a new
                                              files/public-sector/pdfs/surveys/2015/Gov-
                                                                                                                                                            in the same manner as every standard
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                                              Contractor-Survey.ashx).                                (revised) ICR to OMB. OSHA instructed                 promulgated by OSHA. For State Plan
                                                 15 For a further example of overhead cost            the public to submit comments on this                 States, Section 18 of the OSH Act, as
                                              estimates, please see the Employee Benefits             determination to OMB and encouraged                   noted in the previous paragraph,
                                              Security Administration’s guidance at https://          them to submit their comments to                      permits State-Plan States to develop and
                                              www.dol.gov/sites/default/files/ebsa/laws-and-
                                              regulations/rules-and-regulations/technical-
                                                                                                      OSHA. No comments were received and                   enforce their own crane standards
                                              appendices/labor-cost-inputs-used-in-ebsa-opr-ria-      OSHA has determined this final rule
                                              and-pra-burden-calculations-august-2016.pdf.            requires no additional collection of                    16 See   5 CFR 1320.5(a) and 1320.6.



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                                                               Federal Register / Vol. 82, No. 216 / Thursday, November 9, 2017 / Rules and Regulations                                          51997

                                              provided these requirements are at least                employers beyond those costs already                  that workplace risk. See Industrial
                                              as effective in providing safe and                      taken into account in the 2010 final rule             Union Department, AFL–CIO v.
                                              healthful employment and places of                      for cranes and derricks in construction.              American Petroleum Institute, 448 U.S.
                                              employment as the requirements                          Because OSHA reviewed the total costs                 607 (1980). In the cranes rulemaking,
                                              specified in this final rule.                           of the 2010 final rule under the UMRA,                OSHA made such a determination with
                                                                                                      no further review of those costs is                   respect to the use of cranes and derricks
                                              D. State Plans
                                                                                                      necessary. Therefore, for the purposes of             in construction (75 FR 47913, 47920–
                                                 When Federal OSHA promulgates a                      the UMRA, OSHA certifies that this                    21). This final rule does not impose any
                                              new standard or more stringent                          final rule does not mandate that State,               new requirements on employers.
                                              amendment to an existing standard,                      local, or tribal governments adopt new,               Therefore, this final rule does not
                                              State Plans must either amend their                     unfunded regulatory obligations, or                   require an additional significant risk
                                              standards to be ‘‘at least as effective as’’            increase expenditures by the private                  finding (see Edison Electric Institute v.
                                              the new standard or amendment, or                       sector of more than $100 million in any               OSHA, 849 F.2d 611, 620 (D.C. Cir.
                                              show that an existing State standard                    year.                                                 1988)).
                                              covering this area is already ‘‘at least as                                                                      In addition to materially reducing a
                                              effective’’ as the new Federal standard                 F. Consultation and Coordination With
                                                                                                      Indian Tribal Governments                             significant risk, a safety standard must
                                              or amendment (29 CFR 1953.5(a)). State                                                                        be technologically feasible. See UAW v.
                                              Plans adoption must be completed                          OSHA reviewed this final rule in                    OSHA, 37 F.3d 665, 668 (D.C. Cir.
                                              within six months of the promulgation                   accordance with Executive Order 13175                 1994). A standard is technologically
                                              date of the final Federal rule. When                    (65 FR 67249) and determined that it                  feasible when the protective measures it
                                              OSHA promulgates a new standard or                      does not have ‘‘tribal implications’’ as              requires already exist, when available
                                              amendment that does not impose                          defined in that order. The rule does not              technology can bring the protective
                                              additional or more stringent                            have substantial direct effects on one or             measures into existence, or when that
                                              requirements than an existing standard,                 more Indian tribes, on the relationship               technology is reasonably likely to
                                              State Plans do not have to amend their                  between the Federal government and                    develop (see American Textile Mfrs.
                                              standards, although OSHA may                            Indian tribes, or on the distribution of              Institute v. OSHA, 452 U.S. 490, 513
                                              encourage them to do so.                                power and responsibilities between the                (1981); American Iron and Steel
                                                 The amendment to OSHA’s crane                        Federal government and Indian tribes.                 Institute v. OSHA, 939 F.2d 975, 980
                                              standard in this final rule only delays                                                                       (D.C. Cir. 1991)). In the 2010 Final
                                              the deadline for operator certification                 G. Executive Order 13771: Reducing
                                                                                                      Regulation and Controlling Regulatory                 Economic Analysis for the crane
                                              requirements and does not impose any                                                                          standard, OSHA found the standard to
                                              new requirements on employers.                          Costs
                                                                                                                                                            be technologically feasible (75 FR
                                              Accordingly, State Plans are not                           Consistent with E.O. 13771 (82 FR
                                                                                                                                                            48079). Therefore, this final rule is
                                              required to amend their standards to                    9339, February 3, 2017), OSHA has
                                                                                                                                                            technologically feasible as well because
                                              delay the deadline for their operator                   estimated the annualized cost savings
                                                                                                                                                            it does not require employers to
                                              certification requirements, but they may                over 10 years for this final rule to range
                                                                                                                                                            implement any additional protective
                                              do so if they so choose. If they choose                 from $4.4 million to $5.2 million,
                                                                                                                                                            measures; it simply extends the
                                              to delay the deadline for their                         depending on the discount rate. This
                                                                                                                                                            duration of existing requirements.
                                              certification requirements, they also                   final rule is considered an E.O. 13771
                                              would need to include a corresponding                   deregulatory action. Details on the                   List of Subjects in 29 CFR Part 1926
                                              extension of the employer duty to assess                estimated cost savings of this final rule               Construction industry, Cranes,
                                              and train operators that is equivalent to               can be found in the rule’s economic                   Derricks, Occupational safety and
                                              § 1926.1427(k)(2).                                      analysis.                                             health, Safety.
                                              E. Unfunded Mandates Reform Act                         H. Legal Considerations                                 Signed at Washington, DC, on November 3,
                                                When OSHA issued the final rule for                      The purpose of the Occupational                    2017.
                                              cranes and derricks in construction, it                 Safety and Health Act of 1970 (29 U.S.C.              Loren Sweatt,
                                              reviewed the rule according to the                      651 et seq.) is ‘‘to assure so far as                 Deputy Assistant Secretary of Labor for
                                              Unfunded Mandates Reform Act of 1995                    possible every working man and woman                  Occupational Safety and Health.
                                              (UMRA; 2 U.S.C. 1501 et seq.) and                       in the nation safe and healthful working              Amendments to Standards
                                              Executive Order 13132 (64 FR 43255                      conditions and to preserve our human
                                                                                                                                                              For the reasons stated in the preamble
                                              (Aug. 10, 1999)). OSHA concluded that                   resources.’’ 29 U.S.C. 651(b). To achieve
                                                                                                                                                            of this final rule, OSHA amends 29 CFR
                                              the final rule did not meet the definition              this goal, Congress authorized the
                                                                                                                                                            part 1926 as follows:
                                              of a ‘‘Federal intergovernmental                        Secretary of Labor to promulgate and
                                              mandate’’ under the UMRA because                        enforce occupational safety and health                PART 1926—[AMENDED]
                                              OSHA standards do not apply to State                    standards. 29 U.S.C. 654(b), 655(b). A
                                              or local governments except in States                   safety or health standard is a standard               Subpart CC—Cranes and Derricks in
                                              that voluntarily adopt State Plans.                     ‘‘which requires conditions, or the                   Construction
                                              OSHA further noted that the rule                        adoption or use of one or more
                                              imposed costs of over $100 million per                  practices, means, methods, operations,                ■ 1. The authority citation for subpart
                                              year on the private sector and; therefore,              or processes, reasonably necessary or                 CC of 29 CFR part 1926 continues to
                                              required review under the UMRA for                      appropriate to provide safe or healthful              read as follows:
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                                              those costs, but that its final economic                employment or places of employment.’’                   Authority: 40 U.S.C. 3701 et seq.; 29 U.S.C.
                                              analysis met that requirement.                          29 U.S.C. 652(8). A standard is                       653, 655, 657; and Secretary of Labor’s
                                                As discussed above in Section III.A                   reasonably necessary or appropriate                   Orders 5–2007 (72 FR 31159) or 1–2012 (77
                                              (Final Economic Analysis and                            within the meaning of Section 652(8)                  FR 3912), as applicable; and 29 CFR part
                                              Regulatory Flexibility Analysis) of this                when a significant risk of material harm              1911.
                                              preamble, this final rule does not                      exists in the workplace and the standard              ■ 2. Revise § 1926.1427(k) to read as
                                              impose any costs on private-sector                      would substantially reduce or eliminate               follows:


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                                              51998            Federal Register / Vol. 82, No. 216 / Thursday, November 9, 2017 / Rules and Regulations

                                              § 1926.1427 Operator qualification and                  Control), Office of the General Counsel,              general licenses: §§ 515.530, 515.534,
                                              certification.                                          tel.: 202–622–2410.                                   515.545, 515.560, 515.561, 515.564,
                                              *       *     *    *    *                               SUPPLEMENTARY INFORMATION:                            515.565, 515.566, 515.567, 515.572,
                                                 (k) Phase-in. (1) The provisions of this                                                                   515.573, 515.574, 515.576, 515.577,
                                              section became applicable on November                   Electronic Availability                               515.578, 515.581, 515.584, and 515.590.
                                              8, 2010, except for paragraphs (a)(2) and                 This document and additional                        OFAC has not incorporated this
                                              (f) of this section, which are applicable               information concerning OFAC are                       prohibition into certain general licenses
                                              November 10, 2018.                                      available from OFAC’s Web site                        in accordance with the exceptions
                                                 (2) When paragraph (a)(1) of this                    (www.treasury.gov/ofac).                              detailed in section 3(a)(iii) of the NSPM.
                                              section is not applicable, all of the
                                                                                                      Background                                            Travel and Related Transactions
                                              requirements in paragraphs (k)(2)(i) and
                                              (ii) of this section apply until November                  The Department of the Treasury                        Educational travel. In accordance
                                              10, 2018.                                               issued the Cuban Assets Control                       with section 3(b) of the NSPM, OFAC is
                                                 (i) The employer must ensure that                    Regulations, 31 CFR part 515 (the                     revising the categories of educational
                                              operators of equipment covered by this                  ‘‘Regulations’’), on July 8, 1963, under              travel currently set forth in
                                              standard are competent to operate the                   the Trading With the Enemy Act (50                    § 515.565(a)(1)–(6) to authorize travel
                                              equipment safely.                                       U.S.C. 4301–41). OFAC has amended                     that was permitted by regulation in
                                                 (ii) When an employee assigned to                    the Regulations on numerous occasions.                effect on January 27, 2011.
                                              operate machinery does not have the                     Today, OFAC, the Department of                           In addition, OFAC is adding the
                                              required knowledge or ability to operate                Commerce’s Bureau of Industry and                     requirement set forth in the NSPM that
                                              the equipment safely, the employer                      Security, and the Department of State                 certain categories of educational travel
                                              must train that employee prior to                       are taking coordinated actions to                     authorized by § 515.565(a), which were
                                              operating the equipment. The employer                   implement the NSPM, ‘‘Strengthening                   not permitted by regulation in effect on
                                              must ensure that each operator is                       the Policy of the United States Toward                January 27, 2011, take place under the
                                              evaluated to confirm that he/she                        Cuba,’’ signed by the President on June               auspices of an organization that is a
                                              understands the information provided                    16, 2017.                                             person subject to U.S. jurisdiction. This
                                              in the training.                                           OFAC is making amendments to the                   requirement is incorporated in
                                              [FR Doc. 2017–24349 Filed 11–8–17; 8:45 am]
                                                                                                      Regulations with respect to financial                 § 515.565(a)(2). The same provision also
                                                                                                      transactions, travel and related                      now will require that all travelers must
                                              BILLING CODE 4510–26–P
                                                                                                      transactions, educational activities,                 be accompanied by a person subject to
                                                                                                      support for the Cuban people, and                     U.S. jurisdiction who is an employee,
                                                                                                      certain other activities, as set forth                paid consultant, agent, or other
                                              DEPARTMENT OF THE TREASURY                              below.                                                representative of the sponsoring
                                              Office of Foreign Assets Control                                                                              organization, except in cases where the
                                                                                                      Financial Transactions
                                                                                                                                                            traveler is an employee, paid consultant,
                                                                                                         Restrictions on direct financial                   agent, or other representative traveling
                                              31 CFR Part 515                                         transactions with certain entities and                individually (not as part of a group), if
                                              Cuban Assets Control Regulations                        subentities. In accordance with section               the individual obtains a letter from the
                                                                                                      3(a)(i) of the NSPM, the State                        sponsoring organization. Such a letter
                                              AGENCY:  Office of Foreign Assets                       Department is publishing a list of                    must state that: (1) The individual is
                                              Control, Treasury.                                      entities and subentities that are under               traveling to Cuba as an employee, paid
                                              ACTION: Final rule.                                     the control of, or act for or on behalf of,           consultant, agent, or other
                                                                                                      the Cuban military, intelligence, or                  representative (including specifying the
                                              SUMMARY:    The Department of the                       security service or personnel, and with               responsibilities of the individual that
                                              Treasury’s Office of Foreign Assets                     which direct financial transactions                   make him or her a representative) of the
                                              Control (OFAC) is amending the Cuban                    would disproportionately benefit the                  sponsoring organization; (2) the
                                              Assets Control Regulations to                           Cuban military, intelligence, or security             individual is acting for or on behalf of,
                                              implement the National Security                         services or personnel at the expense of               or otherwise representing, the
                                              Presidential Memorandum (NSPM),                         the Cuban people or private enterprise                sponsoring organization; and (3) the
                                              ‘‘Strengthening the Policy of the United                in Cuba—the State Department’s List of                individual’s travel to Cuba is related to
                                              States Toward Cuba,’’ signed by the                     Restricted Entities and Subentities                   his or her role at the sponsoring
                                              President on June 16, 2017. These                       Associated with Cuba (‘‘Cuba Restricted               organization.
                                              amendments implement changes to the                     List’’). In accordance with section                      In addition, OFAC is adding a
                                              authorizations for travel to Cuba and                   3(a)(ii) of the NSPM, OFAC is adding                  ‘‘grandfathering’’ provision in
                                              related transactions and restrict certain               new § 515.209 to restrict direct financial            § 515.565(d) to authorize certain travel
                                              financial transactions. These                           transactions with entities and                        that previously was authorized where
                                              amendments also implement certain                       subentities listed on the Cuba Restricted             the traveler has already completed at
                                              technical and conforming changes.                       List. OFAC is making conforming edits                 least one travel-related transaction (such
                                              DATES: Effective: November 9, 2017.                     to § 515.421 to clarify that transactions             as purchasing a flight or reserving
                                              FOR FURTHER INFORMATION CONTACT: The                    ordinarily incident to licensed                       accommodation) prior to November 9,
                                              Department of the Treasury’s Office of                  transactions do not include direct                    2017.
                                              Foreign Assets Control: Assistant                       financial transactions with such entities                People-to-people educational travel.
nshattuck on DSK9F9SC42PROD with RULES




                                              Director for Licensing, tel.: 202–622–                  and subentities if the terms of the                   In accordance with section 3(b)(ii) of the
                                              2480, Assistant Director for Regulatory                 applicable general or specific license                NSPM, OFAC is amending § 515.565(b)
                                              Affairs, tel.: 202–622–4855, Assistant                  expressly exclude such direct financial               to require that people-to-people
                                              Director for Sanctions Compliance &                     transactions.                                         educational travel be conducted under
                                              Evaluation, tel.: 202–622–2490; or the                     In order to implement this                         the auspices of an organization that is
                                              Department of the Treasury’s Office of                  prohibition, OFAC is adding                           subject to U.S. jurisdiction and that
                                              the Chief Counsel (Foreign Assets                       corresponding language in the following               sponsors such exchanges to promote


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Document Created: 2018-10-25 10:29:31
Document Modified: 2018-10-25 10:29:31
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 November 9, 2017.
ContactGeneral information and press inquiries: Mr. Frank Meilinger, OSHA Office of Communications: telephone: (202) 693-1999; email: [email protected]
FR Citation82 FR 51986 
RIN Number1218-AC96
CFR AssociatedConstruction Industry; Cranes; Derricks; Occupational Safety and Health and Safety

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