82_FR_7768 82 FR 7755 - Marine Casualty Reporting Property Damage Thresholds

82 FR 7755 - Marine Casualty Reporting Property Damage Thresholds

DEPARTMENT OF HOMELAND SECURITY
Coast Guard

Federal Register Volume 82, Issue 13 (January 23, 2017)

Page Range7755-7766
FR Document2017-01323

The Coast Guard proposes to amend the monetary property damage threshold amounts for reporting a marine casualty, and for reporting a type of marine casualty called a ``serious marine incident'' (SMI). The initial regulations setting these dollar threshold amounts were promulgated in the early1980s and they have not been updated. Because the monetary thresholds for reporting have not kept pace with inflation, relatively minor casualties must be reported. Additionally, the regulations require mandatory drug and alcohol testing following an SMI; consequently, testing is being conducted for casualties that are less significant than those intended to be captured by the original regulations. Updating the regulations will reduce the burden on vessel owners and operators, and will also reduce the amount of Coast Guard resources expended to investigate these incidents.

Federal Register, Volume 82 Issue 13 (Monday, January 23, 2017)
[Federal Register Volume 82, Number 13 (Monday, January 23, 2017)]
[Proposed Rules]
[Pages 7755-7766]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-01323]


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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

46 CFR Part 4

[Docket No. USCG-2016-0748]
RIN 1625-AC33


Marine Casualty Reporting Property Damage Thresholds

AGENCY: Coast Guard, DHS.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Coast Guard proposes to amend the monetary property damage 
threshold amounts for reporting a marine casualty, and for reporting a 
type of marine casualty called a ``serious marine incident'' (SMI). The 
initial regulations setting these dollar threshold amounts were 
promulgated in the early1980s and they have not been updated. Because 
the monetary thresholds for reporting have not kept pace with 
inflation, relatively minor casualties must be reported. Additionally, 
the regulations require mandatory drug and alcohol testing following an 
SMI; consequently, testing is being conducted for casualties that are 
less significant than those intended to be captured by the original 
regulations. Updating the regulations will reduce the burden on vessel 
owners and operators, and will also reduce the amount of Coast Guard 
resources expended to investigate these incidents.

DATES: Comments and related material must be submitted to the online 
docket via http://www.regulations.gov, or reach the Docket Management 
Facility, on or before March 24, 2017.
    Comments sent to the Office of Management and Budget (OMB) on 
collection of information must reach OMB on or before March 24, 2017.

ADDRESSES: Submit comments using one of the listed methods, and see 
SUPPLEMENTARY INFORMATION section below for more information on public 
comments.
    Collection of information. You must submit any comments on the 
collection of information discussed in Section IV of this preamble both 
to the Coast Guard's docket and to the Office of Information and 
Regulatory Affairs (OIRA) in the White House Office of Management and 
Budget. OIRA submissions can use one of the listed methods.
     Email (preferred)[email protected] (include 
the docket number and ``Attention: Desk Officer for Coast Guard, DHS'' 
in the subject line of the email).
     Fax--202-395-6566.
     Mail--Office of Information and Regulatory Affairs, Office 
of Management and Budget, 725 17th Street NW., Washington, DC 20503, 
ATTN: Desk Officer, U.S. Coast Guard.

FOR FURTHER INFORMATION CONTACT: For information about this document, 
call or email CDR Randy Waddington, CG-INV, Coast Guard; telephone 202-
372-1029, email [email protected].

SUPPLEMENTARY INFORMATION: 

Table of Contents for Preamble

I. Public Participation and Request for Comments
II. Abbreviations
III. Background, Basis, and Purpose
IV. Discussion of Proposed Rule
V. Regulatory Analyses
    A. Regulatory Planning and Review
    B. Small Entities
    C. Assistance for Small Entities
    D. Collection of Information
    E. Federalism
    F. Unfunded Mandates Reform Act
    G. Taking of Private Property
    H. Civil Justice Reform
    I. Protection of Children
    J. Indian Tribal Governments

[[Page 7756]]

    K. Energy Effects
    L. Technical Standards
    M. Environment

I. Public Participation and Request for Comments

    We view public participation as essential to effective rulemaking, 
and we will consider all comments and material received during the 
comment period. Your comment can help shape the outcome of this 
rulemaking. If you submit a comment, please include the docket number 
for this rulemaking, indicate the specific section of this document to 
which each comment applies, and provide a reason for each suggestion or 
recommendation.
    We encourage you to submit comments through the Federal eRulemaking 
Portal at http://www.regulations.gov. If your material cannot be 
submitted using http://www.regulations.gov, contact the person in the 
FOR FURTHER INFORMATION CONTACT section of this document for alternate 
instructions. Documents mentioned in this notice of proposed rulemaking 
(NPRM), and all public comments, are in our online docket at http://www.regulations.gov and can be viewed by following that Web site's 
instructions. Additionally, if you go to the online docket and sign up 
for email alerts, you will be notified when comments are posted or a 
final rule is published.
    We accept anonymous comments. All comments received will be posted 
without change to http://www.regulations.gov and will include any 
personal information you have provided. For more about privacy and the 
docket, you may review a Privacy Act notice regarding the Federal 
Docket Management System in the March 24, 2005, issue of the Federal 
Register (70 FR 15086).
    We are not planning to hold a public meeting but will consider 
doing so if public comments indicate a meeting would be helpful. We 
would issue a separate Federal Register notice to announce the date, 
time, and location of such a meeting.

II. Abbreviations

BLS Bureau of Labor Statistics
CFR Code of Federal Regulations
CPI-U Consumer Price Index for All Urban Consumers
DHS Department of Homeland Security
E.O. Executive Order
FR Federal Register
MISLE Marine Information for Safety and Law Enforcement
NVIC Navigation and Vessel Inspection Circular
OCMI Officer in Charge, Marine Inspection
OMB Office of Management and Budget
SMI Serious marine incident
Sec.  Section symbol
U.S.C. United States Code

III. Background, Basis, and Purpose

    Pursuant to 46 U.S.C. 6101, the Coast Guard is required to 
prescribe regulations on marine casualty reporting and the manner of 
reporting. Based on this authority, we promulgated regulations in part 
4 of Title 46 of the Code of Federal Regulations (CFR) that included, 
among other criteria, monetary property damage threshold amounts for 
reporting a ``serious marine incident'' \1\ and for reporting a marine 
casualty.\2\ The original regulations setting these property damage 
threshold amounts were promulgated in the 1980s and they have not since 
been updated. In this NPRM, the Coast Guard proposes to update the 
dollar threshold amounts for property damage in 46 CFR 4.03-2(a)(3) and 
4.05-1(a)(7) to account for inflation.
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    \1\ 46 CFR 4.03-2.
    \2\ 46 CFR 4.05-1.
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    In 2013 through 2014, Coast Guard undertook a review of marine 
casualty reporting requirements during our development of Navigation 
and Vessel Inspection Circular (NVIC) 01-15, resulting in a Federal 
Register notice \3\ requesting public comment on the draft NVIC 01-15. 
Several commenters from industry and the public noted that property 
damage threshold amounts for reported marine casualties and serious 
marine incidents (SMIs) had not been updated to reflect inflation and 
supported an inflation adjustment to the thresholds. Furthermore, in 
response to a task to examine the Coast Guard's marine casualty 
reporting requirements, the Coast Guard's Towing Vessel Safety Advisory 
Committee recommended that we amend the monetary thresholds in 46 CFR 
part 4 to account for inflation.\4\
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    \3\ 79 FR 2466 (January 14, 2014).
    \4\ Towing Safety Advisory Committee, Task 13-09, 
Recommendations for Improvement of Marine Casualty Reporting Final 
Report. This report is accessible at https://homeport.uscg.mil/tsac.
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    There is Coast Guard and stakeholder consensus that the early 1980s 
property damage monetary threshold amounts listed in 46 CFR 4.03-2 and 
4.05-1 have not kept pace with inflation. Over time, this has resulted 
in the reporting of a greater number casualties involving relatively 
minor property damage. As was explained in the 1980 interim final rule, 
``the Coast Guard's selection of a monetary value as a reporting 
criterion is based upon the premise that increased repair costs are 
indicative of the increased seriousness of a marine casualty [. . .] 
The monetary damage criterion has been chosen as the most effective 
method of ensuring that only the more serious casualties are 
reported.'' (45 FR 77439, 77440). Accordingly, it has never been our 
intent to require owners or operators to notify us of casualties 
involving relatively minor property damage; consequently, we are 
amending the property damage monetary threshold amounts in order to 
eliminate the reporting of insignificant property damage incidents. The 
marine casualty reports impacted by this NPRM are those marine 
casualties where the only outcome was property damage in the amount of 
$25,000.01 through $72,000. Additionally, because the regulations 
require mandatory drug and alcohol testing following an SMI, current 
regulations require chemical testing for casualties that reach a 
minimum threshold of $100,000 in property damage. Due to cost increases 
caused by inflation, however, casualties that result in property damage 
between $100,000 and $200,000 are no longer representative of a 
``serious'' casualty. The lack of inflation updates to our marine 
casualty regulations has resulted in an additional administrative and 
financial burden on vessel owners and operators, as well as on Coast 
Guard resources used to investigate these incidents. This NPRM would 
result in an estimated annual cost savings of $40,809 to industry due 
to a reduction in the hourly burden of reporting and recordkeeping for 
both marine casualties and SMIs, and a reduction in an estimated annual 
cost savings of $4,649 for chemical testing for marine casualties 
designated as SMIs. This NPRM would result in Coast Guard cost savings 
by reducing the hourly burden costs to investigate marine casualties as 
well as the costs associated with processing marine casualty forms.
    As a result of updating the dollar amount thresholds to account for 
inflation, we anticipate there would be a decrease in the number of 
commercial vessel casualties reported to the Coast Guard. The changes 
proposed by this NPRM would also likely decrease the number of 
casualties that fall within the current definition of an SMI, and 
thereby reduce the amount of chemical tests administered following an 
SMI that result in property damage of $100,000.01 through $200,000. 
However mandatory chemical testing would still be required if the 
property damage meets the revised dollar threshold amount (in excess of 
$200,000) proposed by this NPRM. The intent of setting a dollar amount 
threshold in our marine casualty reporting regulation and within the 
definition of ``serious

[[Page 7757]]

marine incident'' is to ensure that the Coast Guard is aware of those 
incidents that could be indicative of more serious problems and that 
may be averted in the future with timely intervention.
    These proposed changes would provide a benefit for both the marine 
industry and the Coast Guard because they would reduce the hourly 
burden or eliminate the marine casualty reporting requirements for 
incidents involving property damage between the existing and proposed 
thresholds, and reduce SMI chemical testing requirements for incidents 
involving property damage in the range of $100,000 through $200,000. As 
a result, the marine industry and Coast Guard resources would be able 
to focus efforts on higher consequence incidents.

IV. Discussion of Proposed Rule

    The Coast Guard proposes to amend 46 CFR 4.03-2 and 4.05-1. The 
proposed changes would replace the existing reportable marine casualty 
property damage threshold amount of $25,000 with $72,000 in 46 CFR part 
4.05-1(a) (7), and replace the SMI property damage threshold of 
$100,000 with $200,000 in 46 CFR part 4.03-2(a) (3). These threshold 
amounts are being updated to account for inflation.
    The Coast Guard determined the inflation adjustment factor using 
the change in the Consumer Price Index for All Urban Consumers (CPI-U) 
from the original dollar thresholds set in 1980 for marine casualty 
property damage and 1988 for SMI property damage. The CPI-U is 
calculated and published by the U.S. Department of Labor, Bureau of 
Labor Statistics, \5\ and uses the period of 1982 to 1984 as the base 
level where the CPI-U = 100. We calculated the inflation adjustment by 
comparing the average CPI-U for the base years (82.408 in 1980 and 
118.258 in 1988) with the average CPI-U for 2015 (237.017). This 
resulted in an inflation adjustment factor of 1.876 \6\ for the marine 
casualty dollar threshold and a factor of 1.004 \7\ for the SMI dollar 
threshold.
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    \5\ CPI Detailed Report December 2015, Table 24. http://www.bls.gov/cpi/cpid1512.pdf.
    \6\ (237.017 - 82.408)/82.408 = 1.876.
    \7\ (237.017 - 118.258)/118.258 = 1.004.
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    For the marine casualty reporting threshold, we multiplied the 
inflation adjustment factor of 1.876 by the current threshold of 
$25,000 to calculate the raw inflation increment of $46,900, resulting 
in a total revised threshold of $72,000 (25,000 + $46,900 rounded to 
the nearest thousand).
    For the SMI dollar threshold, we multiplied the inflation 
adjustment factor of 1.004 by the current threshold of $100,000 to 
calculate the raw inflation increment of $100,400, resulting in a total 
revised threshold of $200,000 (100,000 + $100,400 rounded to the 
nearest thousand).

V. Regulatory Analyses

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

A. Regulatory Planning and Review

    Executive Orders 12866 (``Regulatory Planning and Review'') and 
13563 (``Improving Regulation and Regulatory Review'') direct agencies 
to assess the costs and benefits of available regulatory alternatives 
and, if regulation is necessary, to select regulatory approaches that 
maximize net benefits (including potential economic, environmental, 
public health and safety effects, distributive impacts, and equity). 
Executive Order 13563 emphasizes the importance of quantifying both 
costs and benefits, of reducing costs, of harmonizing rules, and of 
promoting flexibility. This NPRM has not been designated a 
``significant regulatory action,'' under section 3(f) of Executive 
Order 12866. Accordingly, the rule has not been reviewed by the Office 
of Management and Budget.
    This Regulatory Analysis provides an evaluation of the economic 
impacts associated with this NPRM. The Coast Guard proposes to amend 
two sections in part 4 of Title 46 of the CFR, 46 CFR 4.03-2 and 4.05-
1. Under this NPRM, the Coast Guard proposes to replace the reportable 
marine casualty dollar threshold of $25,000 with $72,000 in 46 CFR part 
4.05-1(a) (7), and replace the SMI dollar threshold of $100,000 with 
$200,000 in 46 CFR part 4.03-2(a) (3) to update the thresholds to 
account for inflation, as discussed in Section IV of this NPRM. Table 1 
provides a summary of the affected population, costs, and benefits 
after implementation of this NPRM.

               Table 1--Summary of the Impacts of the NPRM
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             Category                              Summary
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Applicability.....................  Replace the reportable marine
                                     casualty dollar threshold of
                                     $25,000 with $72,000.
                                    Replace the SMI dollar threshold of
                                     $100,000 with $200,000. Owners,
                                     agents, masters, operators, or
                                     persons in charge involved in a
                                     marine casualty and crewmembers who
                                     are required to undergo chemical
                                     testing.
Affected Population...............  Annual average of 316 vessel owners,
                                     operators, or their representatives
                                     reporting a marine casualty, 21
                                     marine employers reporting an SMI,
                                     and average of 32 vessel
                                     crewmembers completing chemical
                                     testing would no longer be required
                                     to report these incidents to the
                                     Coast Guard.
Costs.............................  No quantitative costs.
Benefits..........................  $45,458 annualized and $319,281 10-
                                     year present value monetized
                                     industry benefits (cost savings)
                                     (7% discount rate).
                                    $637,688 annualized and $4,478,854
                                     10-year present value monetized
                                     Government benefits (cost savings)
                                     (7% discount rate).
                                    Total of industry and Government
                                     benefits: $683,146 annualized and
                                     $4,798,134 10-year present value
                                     monetized combined benefits (cost
                                     savings) (7% discount rate).
------------------------------------------------------------------------

Affected Population
    We expect that this NPRM would affect the owners, agents, masters, 
operators, or persons in charge of a commercial vessel who, pursuant to 
46 CFR 4.05-1, are required to notify the nearest Sector Office 
whenever a vessel is involved in a marine casualty. Specifically, the 
proposed regulations in this NPRM would affect those individuals who 
would have completed the necessary forms (CG-2692 series) to report a 
marine casualty where the only outcome was property damage of 
$25,000.01 through $72,000, or an SMI

[[Page 7758]]

with property damage of $100,000.01 through $200,000 (CG-2692 series, 
supplemented with an appended SMI written report (CG-2692B).\8\
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    \8\ ``Report of Required Chemical Drug and Alcohol Testing 
Following a Serious Marine Incident.'' See, 46 CFR 4.05-10.
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    We used incident investigation data from the Coast Guard's Marine 
Information for Safety and Law Enforcement (MISLE) system from 2012 
through 2014 \9\ to estimate the average number of vessel crewmembers 
affected by this NPRM. From 2012 through 2014, we found there was an 
average of 5,967 reports of a marine casualty per year, with one 
individual per vessel who we assume to be a vessel crewmember 
completing each report. An average of 271, or 4.5 percent of the annual 
5,967 marine casualty reports, involved an SMI.
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    \9\ This 3-year time period was used to be consistent with the 
existing Collection of Information, entitled ``Report of Marine 
Casualty & Chemical Testing of Commercial Vessel Personnel,'' which 
has OMB Control Number 1625-0001.
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    Of the 5,967 marine casualty reports, approximately 5.3 percent 
were for a reportable marine casualty where the only outcome was 
property damage of $25,000.01 through $72,000. Therefore, we expect 
that an average of approximately 316 fewer reports of marine casualties 
would be required per year. Vessel owners and operators would benefit 
from a reduction in the time burden associated with a crewmember no 
longer having to prepare and submit the required marine casualty 
reporting paperwork.
    Of the 271 casualty reports that involved an SMI, approximately 7.9 
percent (21 out of 271) were ones in which the sole outcome of the SMI 
was property damage of $100,000.01 through $200,000. Based on that 
annual average, the amendments proposed in this NPRM would likely 
result in a reduction of about 21 SMI written reports (CG-2692B) per 
year due to the proposed change to the monetary threshold amount for an 
SMI involving property damage. Because property damage of $100,000.01 
through $200,000 exceeds the threshold for a reportable marine 
casualty, the forms for a marine casualty report (CG-2692 series) would 
still need to be completed. However, marine employers would no longer 
be required to complete the additional paperwork required for an SMI 
written report (CG-2692B). Consequently, marine employers would benefit 
from a reduction in the time burden associated with an SMI written 
report (CG-2692B) as well as cost savings associated with chemical 
savings.
Benefits or Cost Savings to Industry
    The benefit or cost savings to industry is the difference between 
the current baseline cost to industry and the cost to industry after 
implementation of this NPRM.

Current Reporting Cost to Industry for CG-2692 and CG-2692B

    To estimate the benefit to industry, we first estimate the current 
cost to industry. The cost to industry includes costs for reporting and 
recordkeeping for a reportable marine casualty and the costs for 
chemical testing for marine casualties designated as SMIs. The 
reporting and recordkeeping costs for marine casualties include the 
time to complete the forms (CG-2692 series) for a marine casualty, the 
time for approximately 10 percent of the forms to be internally 
reviewed before submission, and the time to complete the additional SMI 
written report (CG-2692B) pursuant to 46 CFR 4.06-60(a) if a marine 
casualty is designated as an SMI. The time estimates and wage rates for 
reporting and recordkeeping are taken from the existing Collection of 
Information, entitled ``Report of Marine Casualty & Chemical Testing of 
Commercial Vessel Personnel,'' which has OMB Control Number 1625-
0001.\10\ We use the same time estimates and wage rates in this 
analysis to maintain consistency and to capture the changes due to this 
NPRM.
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    \10\ Existing Collection of Information, ``Report of Marine 
Casualty & Chemical Testing of Commercial Vessel Personnel'', OMB 
Control Number 1625-0001, Docket Number USCG-2015-0910, can be found 
at https://www.federalregister.gov/documents/2015/10/23/2015-27019/information-collection-request-to-office-of-management-and-budget-omb-control-number-1625-0001.
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    An average of 5,967 marine casualty reports are submitted annually 
by vessel owners or operators. For each reportable marine casualty, the 
existing Collection of Information estimates that it takes about 1 hour 
for a vessel crewmember to complete the necessary forms (CG-2692 
series). The existing Collection of Information also estimates that the 
position of vessel crewmember is analogous to a government employee at 
the grade level of a GS-03. The fully loaded wage rate for a GS-03 is 
$26 per hour, according to Commandant Instruction 7310.1P, 
``Reimbursable Standard Rates.'' \11\ The annual baseline cost to 
complete the current 5,967 CG-2692 series forms would be $155,142 
(5,967 marine casualty reports x $26).
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    \11\ Out of Government Rate for GS-03. Hourly Rates for 
Personnel ($), Enclosure (2) to Commandant Instruction 7310.1P. We 
use this version to maintain consistency with the existing COI 1625-
0001.
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    We estimate that it takes, on average, 1 hour to complete the CG-
2692 series forms. However, we received public comments in 2011 on 
existing COI number 1625-0001 stating that completing the CG-2692 form 
takes more than one hour and one commenter stated that it can take up 
to 8 to 12 hours to complete the form.\12\ The reason for this 
difference is that some entities choose to have the forms reviewed by 
shore-side personnel, such as an attorney prior to submission to the 
Coast Guard. We adjusted our burden estimate to account for the 
additional layer of review. To account for this additional time, 10 
percent of the forms submitted would have 10 hours of additional 
burden. The additional time reflects internal review by individuals 
employed by the owner or operator in addition to the vessel crewmember 
who completes the form. The additional reviewers may be shoreside 
representatives, port engineers, and attorneys, among others. We 
estimate the wage rate for this added review is done by personnel 
analogous to a government employee at the grade level of a GS-14. The 
fully loaded wage rate for a GS-14 is $101 per hour, per Commandant 
Instruction 7310.1P. The total annual cost of this additional time is 
$602,970 (597 marine casualty reports x 10 additional burden hours x 
$101).
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    \12\ Docket ID: USCG-2011-0710. Comments can be found at https://www.regulations.gov/docket?D=USCG-2011-0710.
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    When a marine casualty is designated as an SMI, the marine employer 
must also complete an SMI written report (CG-2692B). (See 46 CFR 4.06-
60.) We estimate that it takes about 0.5 hours for a marine employer 
analogous to a government employee at the grade level of a GS-03 to 
complete this form. The annual cost to complete an SMI written report 
(CG-2692B) is about $3,523 (271 SMI reports x 0.5 hours x $26 per hour 
wage rate).
    Table 2 shows a summary of the current industry costs for reporting 
and recordkeeping.

[[Page 7759]]



                     Table 2--Current Annual Industry Costs for Reporting and Recordkeeping
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                                   Crewmembers/    Burden hours     Annual hour                     Annual cost
           Requirement               responses     per response       burden         Wage rate        burden
----------------------------------------------------------------------------------------------------------------
Written report of marine                   5,967               1           5,967             $26        $155,142
 casualty.......................
Additional Burden for 10% of                 597              10           5,970             101         602,970
 Respondents....................
SMI written report..............             271             0.5             136              26           3,523
                                 -------------------------------------------------------------------------------
    Totals......................  ..............  ..............          12,073  ..............         761,635
----------------------------------------------------------------------------------------------------------------
* Estimates may not sum due to independent rounding.

    As mentioned earlier in this NPRM, when a marine casualty is 
designated as an SMI, the crewmembers involved are required to take a 
chemical test pursuant to 46 CFR 4.06-3. The marine employer incurs 
costs for the actual costs of the chemical test and the time it takes 
for a crewmember to take the chemical test. The actual cost of the 
chemical test includes the costs of the chemical test collection kits, 
collector fees, Coast Guard alcohol-testing swabs, and costs of 
overnight mailing. These costs can vary, but on average, the actual 
chemical test costs approximately $100 per test.\13\ Each vessel 
crewmember involved in an SMI is required to take a chemical test. The 
number of vessel crewmembers required to take a chemical test can vary 
depending on the circumstances of the SMI. We analyzed the casualty 
reports that involved an SMI from MISLE and found an average of 1.5 
crewmembers per SMI were required to take a chemical test. We used an 
estimate of 1.5 crewmembers to estimate the costs of chemical testing 
to account for the variation in crewmembers involved in SMIs. With an 
average of 271 SMIs per year, the current annual cost for the actual 
chemical tests is $40,650 (271 SMIs x average of 1.5 crewmembers x $100 
per test).
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    \13\ Most marine employers use a consortium that simplifies and 
reduces the costs per test and also assists in managing a company's 
drug-testing program. There are variables associated with the cost 
of testing, as costs can vary depending on the number of personnel 
included in a plan and the type of testing plan adopted by a 
particular company. Based on discussions with industry and Coast 
Guard medical testing contract data that is not publically 
available, we estimated testing costs of $79 and $114. We are, 
therefore, using an average cost of $100 for this analysis 
[($79+$114)/2, rounded].
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    In addition to the cost of the chemical tests, there is a cost 
associated with the time it takes a vessel crewmember to complete the 
chemical test. We estimate that it takes 1 hour for a crewmember to 
complete the chemical test.\14\ We obtained the wage rate of the 
crewmember from the U.S. Bureau of Labor Statistics (BLS), using 
Occupational Series 53-5000, Water Transportation Workers (May 2015). 
The BLS reports that the mean hourly wage rate for a water 
transportation worker is $31.11.\15\ To account for employee benefits, 
we use a load factor of 1.53, which we calculated from 2016 first 
quarter BLS data.\16\ The loaded wage for a crewmember is estimated at 
$47.60 ($31.11 wage rate x 1.53 load factor). The cost of the time for 
a crewmember to take the chemical test is $19,349 (271 SMIs x average 
of 1.5 crewmembers x 1 hour burden x $47.60 wage rate). Therefore, the 
current annual cost to industry for chemical testing is $59,999 (see 
Table 3). Adding the costs for chemical testing of $59,999 to the cost 
for reporting and recordkeeping of $761,635 (see Table 2), brings the 
current total annual cost to industry to $821,634.
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    \14\ Hourly estimate is from Coast Guard subject matter experts, 
and takes into account that these are not planned tests, but instead 
are emergent tests--required as a result of accidents--that must be 
taken no later than 32 hours after the incident.
    \15\ Mean wage, http://www.bls.gov/oes/2015/may/oes_nat.htm
    \16\ Employer Costs for Employee Compensation provides 
information on the employer compensation and can be found at http://data.bls.gov/data/. The loaded wage factor is equal to the total 
compensation of $27.61 divided by the wages and salary of $18.05. 
Values for the total compensation and wages and salary are for all 
private industry workers in the transportation and material moving 
occupations, 2016 1st quarter.

                           Table 3--Current Annual Industry Costs for Chemical Testing
----------------------------------------------------------------------------------------------------------------
                                      Average         Cost of                                      Total cost of
          SMIs per year             crewmembers       testing      Hours to take     Wage rate        testing
                                  tested per SMI    procedures         test                         procedures
----------------------------------------------------------------------------------------------------------------
271.............................             1.5            $100               1          $47.60         $59,999
----------------------------------------------------------------------------------------------------------------

Total Reporting Costs to Industry After Implementation of the NPRM

    Increasing the dollar threshold amount for a reportable marine 
casualty involving property damage, as well as the dollar threshold 
amount for property damage within the definition of a ``serious marine 
incident,'' would reduce the number of marine casualty responses by 5.3 
percent, and the number of SMIs by 7.9 percent, annually. The burden 
hours per response would remain the same, but we estimate that the 
total number of responses would decrease to 5,651 for marine casualties 
and 250 for SMIs, resulting in 316 fewer reported marine casualties and 
21 fewer SMIs. The following sections replicate the calculation of 
marine casualty reporting and chemical testing, but reflect the reduced 
number of reports and testing under the revised thresholds.
    For each reportable marine casualty, we estimate that it takes 
about 1 hour for a vessel crewmember to complete all parts of the 
necessary forms at a wage rate of $26. We estimate that the cost to 
complete the reduced number of marine casualty forms would be $146,926 
(5,651 marine casualty reports x $26).
    In addition to the time to complete the forms, some of the marine 
casualty forms would require additional processing time. The additional 
processing time reflects internal review by individuals employed by the 
owner or operator, in addition to the time needed by the vessel 
crewmember who completes the form. The additional reviewers may be 
shoreside representatives, port engineers, or attorneys, among others. 
To account for

[[Page 7760]]

this time, 10 percent \17\ of the forms submitted (565 forms) would 
have 10 hours of additional burden, and the wage rate for this added 
review would be done by personnel analogous to a government employee at 
the grade level of a GS-14. We estimate that the total cost of this 
additional time after the implementation of this NPRM would be $570,650 
(565 marine casualty reports x 10 additional burden hours x $101).
---------------------------------------------------------------------------

    \17\ Docket ID: USCG-2011-0710, https://www.regulations.gov/docket?D=USCG-2011-0710.
---------------------------------------------------------------------------

    As mentioned earlier in this NPRM, when a marine casualty is 
designated as an SMI, the marine employer must complete an SMI written 
report (CG-2692B). We estimate that it takes about 0.5 hours for a 
marine employer analogous to a government employee at a grade level of 
a GS-03 to complete this form.\18\ We estimate that the cost to 
complete the additional forms for an SMI after implementation of this 
NPRM would be $3,250 (250 SMI reports x 0.5 hours x $26 per hour wage 
rate).
---------------------------------------------------------------------------

    \18\ The wage rate for a marine employer to complete the form 
CG-2692B and to report chemical test results to the OCMI is taken 
from existing COI number 1625-0001.
---------------------------------------------------------------------------

    Table 4 shows a summary of the industry costs after implementation 
of this NPRM.

        Table 4--Annual Industry Costs for Reporting and Recordkeeping With Revised Reporting Thresholds
----------------------------------------------------------------------------------------------------------------
                                   Crewmembers/    Burden hours     Annual hour                     Annual cost
           Requirement               responses     per response       burden         Wage rate        burden
----------------------------------------------------------------------------------------------------------------
Written report of marine                   5,651               1           5,651             $26        $146,926
 casualty.......................
Additional Burden for 10% of                 565              10           5,650             101         570,650
 Respondents....................
SMI written report..............             250             0.5             125              26           3,250
                                 -------------------------------------------------------------------------------
    Totals......................  ..............  ..............          11,426  ..............         720,826
----------------------------------------------------------------------------------------------------------------
Note: Estimates may not sum due to independent rounding.

    The marine employer incurs the actual costs of the chemical test as 
well as the wage burden it takes for a crewmember to complete the 
chemical test. On average, each chemical test costs approximately $100. 
We use an estimate of 1.5 crewmembers to estimate the costs of chemical 
testing to account for the variation in crewmembers involved in SMIs. 
With an average of 250 SMIs per year, the annual cost after 
implementation of this NPRM for the actual chemical tests is $37,500 
(250 SMIs x average of 1.5 crewmembers x $100 per test).
    In addition to the cost of the chemical tests, there is a cost 
associated with the time it takes a vessel crewmember to complete the 
chemical test. We estimate that it takes 1 hour for a crewmember to 
complete the chemical test at a loaded wage rate of $47.60 per hour. We 
estimate that the cost of the time for a crewmember to take the 
chemical test under the NPRM would be $17,850 (250 SMIs x average of 
1.5 crewmembers x 1 hour burden x $47.60 wage rate). Therefore, the 
annual cost to industry for chemical testing after implementation of 
this NPRM would be $55,350 (see Table 5). Adding the costs for chemical 
testing of $55,350 to the cost for reporting and recordkeeping of 
$720,826 (see Table 4) brings the estimated total annual cost to 
industry to $776,176, if this NPRM is implemented.

              Table 5--Annual Industry Costs for Chemical Testing After Implementation of the NPRM
----------------------------------------------------------------------------------------------------------------
                                      Average         Cost of                                      Total cost of
          SMIs per year             Crewmembers       testing      Hours to take     Wage Rate        testing
                                  tested per SMI    procedures         test                         procedures
----------------------------------------------------------------------------------------------------------------
250.............................             1.5            $100               1          $47.60         $55,350
----------------------------------------------------------------------------------------------------------------

    The current annual burden of reporting marine casualties and SMIs 
under the current dollar amount thresholds is $821,634. The annual 
burden of reporting under the proposed new thresholds would be 
$776,176. Therefore, we estimate that the annual cost savings or 
benefit to industry after implementation of this NPRM would be $45,458. 
Table 6 shows a summary of the annual current industry cost burden, the 
annual industry cost burden after implementation of the NPRM, and the 
annual cost savings resulting from implementation of this NPRM.

         Table 6--Total Annual Cost Savings to Industry by Requirement After Implementation of the NPRM
----------------------------------------------------------------------------------------------------------------
                                                                                      Annual          Annual
                                                                  Current annual   industry cost   industry cost
                           Requirement                             industry cost   burden after    savings after
                                                                      burden      implementation  implementation
                                                                                      of NPRM         of NPRM
----------------------------------------------------------------------------------------------------------------
Written report of marine casualty...............................        $155,142        $146,926          $8,216
Additional burden for 10% of respondents........................         602,970         570,650          32,320
SMI written report..............................................           3,523           3,250             273
Testing procedures..............................................          59,999          55,350           4,649
                                                                 -----------------------------------------------
    Total.......................................................         821,634         776,176          45,458
----------------------------------------------------------------------------------------------------------------


[[Page 7761]]

    The total 10-year undiscounted industry cost savings of this NPRM 
would be $454,584. Table 7 shows the 10-year estimated discounted cost 
savings to industry to be about $319,281 with an annualized cost 
savings of approximately $45,458 using a 7-percent discount rate.

    Table 7--Total Estimated Cost Savings or Industry Benefits of the NPRM Over a 10-year Period of Analysis
                                      [Discounted Costs at 7 and 3 Percent]
----------------------------------------------------------------------------------------------------------------
                                                                       Total             Total, discounted
                              Year                                 undiscounted  -------------------------------
                                                                       costs            7%              3%
----------------------------------------------------------------------------------------------------------------
1...............................................................         $45,458         $42,484         $44,134
2...............................................................          45,458          39,705          42,849
3...............................................................          45,458          37,108          41,601
4...............................................................          45,458          34,680          40,389
5...............................................................          45,458          32,411          39,213
6...............................................................          45,458          30,291          38,071
7...............................................................          45,458          28,309          36,962
8...............................................................          45,458          26,457          35,885
9...............................................................          45,458          24,726          34,840
10..............................................................          45,458          23,109          33,825
                                                                 -----------------------------------------------
    Total.......................................................         454,584         319,281         387,769
    Annualized..................................................  ..............          45,458          45,458
----------------------------------------------------------------------------------------------------------------

Benefits or Cost Savings to Government

    The benefit to the Federal Government is the difference between the 
baseline current cost to the Coast Guard and the cost to the Coast 
Guard after implementation of this NPRM.

Current Costs to Government

    We first estimated the current costs to the Coast Guard, which 
include the cost to investigate a marine casualty and the cost of 
processing marine casualty forms. Because an SMI is a type of marine 
casualty, the estimate for the cost of the investigation and the 
processing of the casualty forms includes those incidents that 
constitute an SMI. Reportable marine casualties are investigated by the 
Coast Guard. Some investigations may be more complex than others, 
depending on the incident. The Coast Guard reviewed the CG-741 (Coast 
Guard Office of Shore Forces) Sector Staffing Model to estimate the 
average number of hours per investigation across all incident types. 
The Sector Staffing Mode assigns a total hourly effort for the type of 
incident (e.g., allision, grounding, collision) that is matched against 
MISLE data, which then provides the resource needs for each sector. The 
Coast Guard estimates that, across all types of incidents, these 
investigations take an average of 25 hours for a Lieutenant (LT; O-3) 
to complete. There is an average of 5,967 marine casualty cases per 
year. The fully loaded wage rate for an O-3 is $78 per hour, per 
Commandant Instruction 7310.1P. As shown in Table 8, the current annual 
cost of investigations is $11,635,650 (5,967 reportable marine 
casualties x 25 burden hours x $78 wage rate).
    The Coast Guard must process the forms submitted for each 
reportable marine casualty. The Coast Guard currently processes an 
average of 5,967 marine casualty reports per year. To maintain 
consistency and capture the changes to this NPRM, the time estimates 
and wage rates for processing the forms are taken from the existing COI 
1625-0001. For each reportable marine casualty, we estimate that it 
takes about 1 hour by a Lieutenant Junior Grade (LTJG; O-2) to process 
the forms (CG-2692 series), including auditing at a local field 
investigation office and the entry of pertinent information into Coast 
Guard's MISLE system. The fully loaded wage rate for an O-2 is $68 per 
hour, per Commandant Instruction 7310.1P. As shown in Table 8, the 
current annual cost for the Coast Guard to process reportable marine 
casualties is $405,756 (5,967 reportable marine casualties x 1 burden 
hour x $68 wage rate). We estimate that the total current annual cost 
to the Federal Government would be $12,041,406.

                                    Table 8--Current Annual Government Costs
----------------------------------------------------------------------------------------------------------------
                                    Reportable
          Cost category               marine       Burden hours    Annual hours      Wage rate      Annual cost
                                    casualties     per response
----------------------------------------------------------------------------------------------------------------
Investigation...................           5,967              25         149,175             $78     $11,635,650
Processing marine casualty                 5,967               1           5,967              68         405,756
 reports........................
                                 -------------------------------------------------------------------------------
    Total.......................  ..............  ..............  ..............  ..............      12,041,406
----------------------------------------------------------------------------------------------------------------

    Under this NPRM, increasing the dollar amount threshold for 
property damage would reduce the number of reportable marine casualties 
by 5.3 percent, resulting in 316 fewer reportable marine casualties. 
The burden hours per response for investigations and processing marine 
casualty reports would remain the same, but the average number of 
reportable marine casualties would decrease to 5,651 per year. We 
estimate that it takes an average of 25 hours for an O-3 to complete 
and investigate and about 1 hour for an O-2 to process the forms for 
each reportable marine casualty. As shown in Table 9, the annual cost 
for the Coast Guard to complete

[[Page 7762]]

investigations under the NPRM would be approximately $11,019,450 (5,651 
reportable marine casualties x 25 hour burden x $78). The annual cost 
to process reportable marine casualties after implementation of this 
NPRM would be approximately $384,268 (5,651 reportable marine 
casualties x 1 hour burden x $68). We estimate that the total annual 
cost to the Federal Government would be approximately $11,403,718 after 
implementation of this NPRM.

                   Table 9--Estimated Annual Government Costs After Implementation of the NPRM
----------------------------------------------------------------------------------------------------------------
                                    Reportable
          Cost category               marine       Burden hours    Annual hours      Wage rate      Annual cost
                                    casualties     per response
----------------------------------------------------------------------------------------------------------------
Investigation...................           5,651              25         141,275             $78     $11,019,450
Processing marine casualty                 5,651               1           5,651              68         384,268
 report.........................
                                 -------------------------------------------------------------------------------
    Total.......................  ..............  ..............  ..............  ..............      11,403,718
----------------------------------------------------------------------------------------------------------------

    The current annual cost to the Coast Guard to process marine 
casualty reports is $12,041,406. The annual cost to the Coast Guard 
after implementation of this NPRM would be approximately $11,403,718. 
Therefore, the annual Federal Government benefit of reducing those 
reportable marine casualties that involve property damage alone would 
be $637,688. Though this reduction does not result in a need for fewer 
Coast Guard investigators, the existing investigators would be able to 
focus on higher priority investigations. We estimate the total 
undiscounted cost savings or benefit of this NPRM to the Federal 
Government to be $6,376,880 over the 10-year period of analysis. Table 
10 shows the total estimated 10-year discounted cost savings to the 
Federal Government to be $4,478,854, with an annualized cost savings of 
$637,688 using a 7-percent discount rate.

   Table 10--Total Estimated Cost Savings or Government Benefits of the NPRM Over a 10-Year Period of Analysis
                                      [Discounted costs at 7 and 3 percent]
----------------------------------------------------------------------------------------------------------------
                                                                       Total             Total, discounted
                              Year                                 undiscounted  -------------------------------
                                                                       costs            7%              3%
----------------------------------------------------------------------------------------------------------------
1...............................................................        $637,688        $595,970        $619,115
2...............................................................         637,688         556,981         601,082
3...............................................................         637,688         520,543         583,575
4...............................................................         637,688         486,489         566,578
5...............................................................         637,688         454,663         550,075
6...............................................................         637,688         424,918         534,054
7...............................................................         637,688         397,120         518,499
8...............................................................         637,688         371,140         503,397
9...............................................................         637,688         346,860         488,735
10..............................................................         637,688         324,168         474,500
                                                                 -----------------------------------------------
    Total.......................................................       6,376,880       4,478,854       5,439,608
    Annualized..................................................  ..............         637,688         637,688
----------------------------------------------------------------------------------------------------------------

Total Benefits of the NPRM
    Table 11 presents the total estimated benefits or cost savings of 
the NPRM using 7- and 3-percent discount rates. We estimate the total 
10-year (industry and Federal Government) undiscounted cost savings of 
this NPRM to be about $6,831,464. We estimate the total 10-year 
discounted cost savings of this NPRM to be about $4,798,134 and the 
annualized benefit to be about $683,146 using a 7-percent discount 
rate.

                Table 11--Total Estimated Benefits of the NPRM Over a 10-Year Period of Analysis
                                    [Discounted benefits at 7 and 3 percent]
----------------------------------------------------------------------------------------------------------------
                                                                       Total             Total, discounted
                              Year                                 undiscounted  -------------------------------
                                                                       costs            7%              3%
----------------------------------------------------------------------------------------------------------------
1...............................................................        $683,146        $638,455        $663,249
2...............................................................         683,146         596,687         643,931
3...............................................................         683,146         557,651         625,176
4...............................................................         683,146         521,169         606,967
5...............................................................         683,146         487,074         589,288
6...............................................................         683,146         455,209         572,124
7...............................................................         683,146         425,429         555,461
8...............................................................         683,146         397,597         539,282

[[Page 7763]]

 
9...............................................................         683,146         371,586         523,575
10..............................................................         683,146         347,277         508,325
                                                                 -----------------------------------------------
    Total.......................................................       6,831,464       4,798,134       5,827,377
    Annualized..................................................  ..............         683,146         683,146
----------------------------------------------------------------------------------------------------------------

B. Small Entities

    Under the Regulatory Flexibility Act, 5 U.S.C. 601-612, we have 
considered whether this NPRM would have a significant economic impact 
on a substantial number of small entities. The term ``small entities'' 
comprises small businesses, not-for-profit organizations that are 
independently owned and operated and are not dominant in their fields, 
and governmental jurisdictions with populations of less than 50,000.
    This NPRM reduces the burden on industry by increasing the 
monetized threshold amounts for reporting a marine casualty incident 
and an SMI. There is no effect on any crewmember, owner, or operator of 
a vessel that does not have a reportable marine casualty or serious 
marine incident. There is no effect on any crewmember, owner, or 
operator of a vessel that has a marine casualty with property damage 
less than or equal to $25,000, or an SMI with damage less than or equal 
to $100,000, as these individuals currently do not have to report the 
casualty and would not have to do so under this NPRM. There is no 
effect on any crewmember, owner, or operator of a vessel that has a 
marine casualty with property damage greater than $72,000, or an SMI 
with property damage greater than $200,000, as these individuals must 
currently report such casualties and perform chemical testing, and 
would continue to be required to do so under this NPRM.
    This NPRM would not impose any direct costs on any specific 
industry. The only affected individuals are owners or operators of 
those vessels that would be involved in a marine casualty where the 
only outcome is property damage of $25,000.01 through $72,000, or an 
SMI where the only outcome is property damage of $100,000.01 through 
$200,000. These entities, which would have incurred costs to report 
these casualties or conduct chemical testing, would be positively 
impacted from this NPRM because of the increase in the monetized 
threshold amounts.
    As discussed in Section V of this NPRM, we expect that an average 
of approximately 316 fewer reports of marine casualties would be 
required per year, with one individual per vessel who we assume to be a 
vessel crewmember completing each report. We assume the 316 marine 
casualty reports occur on 316 separate vessels. It is possible a vessel 
could have multiple incidents in one year, resulting in multiple marine 
casualty reports, but for this analysis we assume the 316 fewer reports 
are ascribed to 316 separate vessels. We compared this affected 
population to the total population that could have a marine casualty 
and be required to prepare and submit marine casualty reporting 
paperwork. We used the MISLE Vessel Population data to estimate the 
total population that could be impacted. We found the current total 
population of vessels that could have a marine casualty and be required 
to submit paperwork is 209,475.\19\ Therefore, the 316 fewer vessels 
preparing marine casualty paperwork represents 0.15 percent of the 
total population.
---------------------------------------------------------------------------

    \19\ Population data was pulled from MISLE on 9/28/2016. The 
population is for commercial vessels that are active and in-service. 
The population includes commercial fishing vessels, fish processing 
vessels, freight barges, industrial vessels, mobile offshore 
drilling units, offshore supply vessels, oil recovery, passenger 
(inspected and uninspected), passenger barges (inspected and 
uninspected), public freights, public tankship/barges, unclassified 
public vessels, research vessels, school ships, tank barges, tank 
ships, and towing vessels.
---------------------------------------------------------------------------

    The owners or operators of these 316 vessels would benefit from a 
reduction in time burden associated with a crewmember no longer having 
to prepare and submit the required marine casualty reporting paperwork. 
Table 6 in Section V summarizes the annual cost savings to industry by 
requirement. Table 13 below shows these annual cost savings, as well as 
the vessel population we estimated would benefit from each reduction in 
paperwork or testing requirement.

                        Table 13--Maximum Potential Cost Savings per Vessel per Incident
----------------------------------------------------------------------------------------------------------------
                                                                                                      Maximum
                                                                   Total annual       Vessel         potential
                           Requirement                             cost savings     population     cost savings
                                                                                                    per vessel
----------------------------------------------------------------------------------------------------------------
Written report of marine casualty...............................          $8,216             316             $26
Additional Burden for 10% of Respondents........................          32,320              32           1,010
SMI written report..............................................             273              21              13
Testing Procedures..............................................           4,649              21             221
                                                                 -----------------------------------------------
    Totals......................................................          45,458  ..............           1,270
----------------------------------------------------------------------------------------------------------------

    The total cost savings per vessel for the population of 316 vessels 
benefiting from this NPRM will vary depending on the requirements. For 
example, we estimate that 32 of the vessels (10 percent of population, 
rounded) would have savings due to a reduction in marine casualty 
reports ($26) and an additional savings for the additional

[[Page 7764]]

burden of reviewing the paperwork ($1,010) in any given year. 
Therefore, a one-time savings could be $1,036 for a vessel with only 
these two requirements. The minimum savings would be $26 for a vessel 
that only had the requirement of preparing and submitting the marine 
casualty report. If a vessel would have had to complete all the 
requirements in Table 13, the maximum cost savings would be $1,270. 
This maximum cost savings would be for a vessel with a marine casualty 
designated as an SMI that completed additional paperwork and reported 
the chemical test results to the OCMI. Therefore, the owner or operator 
of the 316 vessels impacted by this NPRM would have to have maximum 
annual revenues of $2,600 to $127,000 for this NPRM to have a positive 
impact greater than 1 percent.
    Therefore, pursuant to section 605(b) of the Regulatory Flexibility 
Act, 5 U.S.C. 605(b), the Coast Guard certifies that this NPRM would 
not have a significant economic impact on a substantial number of small 
entities because the increase in the monetized property damage 
threshold amounts reduces the reporting burden on crewmembers or vessel 
owners or operators who complete the marine casualty reports or perform 
the required chemical testing, as described above. This NPRM would 
reduce the hour burden associated with marine casualty reporting and 
chemical testing and would not adversely impact small entities as 
defined by the SBA in 13 CFR. 121.201. If you think that your business, 
organization, or governmental jurisdiction qualifies as a small entity 
and that this NPRM would have a significant economic impact on it, 
please submit a comment to the Docket Management Facility at the 
address under the ADDRESSES section of this NPRM. In your comment, 
explain why you think it qualifies and how and to what degree this NPRM 
would economically affect it.

C. Assistance for Small Entities

    Under section 213(a) of the Small Business Regulatory Enforcement 
Fairness Act of 1996, Public Law 104-121, we want to assist small 
entities in understanding this NPRM so that they can better evaluate 
its effects on them and participate in the rulemaking. If you think 
that the NPRM would affect your small business, organization, or 
governmental jurisdiction and you have questions concerning its 
provisions or options for compliance, please consult with the Coast 
Guard personnel listed under the FOR FURTHER INFORMATION CONTACT 
section of this NPRM. The Coast Guard will not retaliate against small 
entities that question or complain about this rule or any policy or 
action of the Coast Guard.
    Small businesses may send comments on the actions of Federal 
employees who enforce, or otherwise determine compliance with, Federal 
regulations to the Small Business and Agriculture Regulatory 
Enforcement Ombudsman and the Regional Small Business Regulatory 
Fairness Boards. The Ombudsman evaluates these actions annually and 
rates each agency's responsiveness to small business. If you wish to 
comment on actions by employees of the Coast Guard, call 1-888-REG-FAIR 
(1-888-734-3247).

D. Collection of Information

    This NPRM would call for a collection of information under the 
Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520). As defined in 5 
CFR 1320.3(c), ``collection of information'' comprises reporting, 
recordkeeping, monitoring, posting, labeling, and other similar 
actions. The title and description of the information collection, a 
description of those who must collect the information, and an estimate 
of the total annual burden follow.
    Under the provisions of the NPRM, the Coast Guard would collect 
information from ship personnel who are involved in marine casualties 
resulting in more than $72,000 in property damage, and serious marine 
incidents resulting in more than $200,000 in property damage. This 
proposed requirement would amend an existing collection of information 
by effectively reducing the number of instances requiring information 
to be collected under OMB control number 1625-0001.
    Title: Report of Marine Casualty & Chemical Testing of Commercial 
Vessel Personnel.
    OMB Control Number: 1625-0001.
    Summary of the Collection of Information: This NPRM would require 
responses such as the preparation of written notification in the form 
of CG-2692 (series), and the processing of records. We use this 
information to identify pertinent safety lessons and to initiate 
appropriate steps for reducing the likelihood of similar accidents in 
the future. The collection of information would aid the regulated 
public in assuring safe practices.
    Need for Information: These reporting requirements permit the Coast 
Guard to initiate the immediate investigation of marine casualties as 
required by 46 U.S.C. 6301, in order to determine the causes of 
casualties and whether existing safety standards are adequate, or 
whether new laws or regulations need to be developed. Receipt of a 
marine casualty report is often the only way in which the Coast Guard 
becomes aware of a marine casualty. It is therefore a necessary first 
step that provides the Coast Guard with the opportunity to determine 
the extent to which a casualty will be investigated.
    Proposed Use of Information: In the short term, the information 
provided in the report may also trigger corrective safety actions 
addressing immediate hazards or defective conditions, further 
investigations of mariner conduct or professional competence, or civil 
or criminal enforcement actions by the Coast Guard, other Federal 
agencies, or state and local authorities. In the long term, information 
contained in the report becomes part of the MISLE marine casualty 
database at Coast Guard Headquarters. The Coast Guard uses this 
information in MISLE to identify safety problems and long term trends, 
publish casualty summaries and annual statistics for public use, 
establish whether additional safety oversight or regulation is needed, 
measure the effectiveness of existing regulatory programs, and better 
focus limited Coast Guard marine safety resources.
    Description of the Respondents: The respondents are those owners, 
agents, masters, operators, or persons in charge that notify the 
nearest Sector Office, Marine Inspection Office, or Coast Guard Group 
Office whenever a vessel is involved in a marine casualty. 
Specifically, this NPRM would affect those vessel crewmembers and 
marine employers who completed the necessary forms to report a marine 
casualty where the only outcome was property damage of $25,000.01 
through $72,000, or an SMI with property damage of $100,000.01 through 
$200,000 (CG-2692 series).
    Number of Respondents: We estimate the number of respondents would 
be 5,651 per year. This is a decrease of 316 respondents from an OMB-
approved number of respondents of 5,967 per year. We estimate 250 of 
these marine casualty respondents would fall under the category of SMI 
respondents and be required to fill out an additional SMI written 
report (CG-2692B). This is a decrease of 21 respondents per year from 
271 respondents.
    Frequency of Response: The notification response would be required 
only if a marine casualty occurs as defined in 46 CFR 4.03-2 and 46 CFR 
4.05-1.
    Burden of Response: For each response, we estimate that it takes 
about 1 hour for a vessel crewmember to complete all of the necessary 
forms

[[Page 7765]]

(CG-2692 series). In addition, some marine casualty forms may undergo 
additional processing by the respondents. To account for this 
additional time, 10 percent of the forms submitted would have 10 hours 
of additional burden.\20\ When a marine casualty is designated as an 
SMI, the marine employer must also complete an SMI written report (CG-
2692B). We estimate that it takes about 0.5 hours for a respondent to 
complete an SMI written report (CG-2692B).
---------------------------------------------------------------------------

    \20\ The Coast Guard estimates that it takes up to 1 hour to 
complete Form CG-2692 (series). However, we received public comments 
in 2013 on COI number 1625-0001 stating that some submitters take 
more time--up to 8 to 12 hours--to complete the form. Docket ID: 
USCG-2011-0710, https://www.regulations.gov/docket?D=USCG-2011-0710. 
The reason for this difference is that some entities have the 
form(s) reviewed by shore-side personnel, such as an attorney, prior 
to submission to the Coast Guard. The practice of having a form 
reviewed by an attorney is not required by Coast Guard regulation. 
While we believe that this does not typically occur, we adjusted our 
burden estimate to account for the added review.
---------------------------------------------------------------------------

    Estimate of Total Annual Burden: We estimate that the number of 
responses would decrease by 316 per year. At 1 hour per response, the 
reduced burden for submitting the responses would be 316 hours. In 
addition, 10 percent of these responses would have required additional 
processing of 10 hours per response, for a reduction of an additional 
320 burden hours.\21\ We estimate 21 of the responses would have been 
designated as an SMI. At 0.5 hours per SMI, the burden would be reduced 
by 11 hours (rounded). Therefore, this NPRM would decrease the total 
annual burden by 647 hours.\22\
---------------------------------------------------------------------------

    \21\ Due to rounding in the estimates, the current burden for 
the additional review is 5,970 hours. The burden under this NPRM is 
5,650 hours, which is a reduction of 320 hours.
    \22\ The current annual burden in COI 1625-0001 for completing 
the marine casualty forms, the additional processing for some 
respondents, and the time to complete the SMI forms is 12,073 hours. 
The annual burden under this NPRM is 11,426 hours, a reduction of 
647 hours.
---------------------------------------------------------------------------

    As required by 44 U.S.C. 3507(d), we will submit a copy of this 
NPRM to OMB for its review of the collection of information.
    We ask for public comment on the proposed collection of information 
to help us determine how useful the information is, whether it can help 
us perform our functions better, whether it is readily available 
elsewhere, how accurate our estimate of the burden of collection is' 
how valid our methods for determining burden are, how we can improve 
the quality, usefulness, and clarity of the information, and how we can 
minimize the burden of collection.
    If you submit comments on the collection of information, submit 
them both to OMB and to the Docket Management Facility where indicated 
under the ADDRESSES section of this NPRM, by the date under the DATES 
section.
    You are not required to respond to a collection of information 
unless it displays a currently valid control number from OMB. Before 
the Coast Guard could enforce the collection of information 
requirements in this NPRM, OMB would need to approve the Coast Guard's 
request to collect this information.

E. Federalism

    A rule has implications for federalism under E.O. 13132 
(``Federalism'') if it has a substantial direct effect on States, on 
the relationship between the national government and the States, or on 
the distribution of power and responsibilities among the various levels 
of government. We have analyzed this NPRM under E.O. 13132 and have 
determined that it is consistent with the fundamental federalism 
principles and preemption requirements as described in E.O.13132. Our 
analysis follows.
    It is well settled that States may not regulate in categories 
reserved for regulation by the Coast Guard. It is also well settled 
that Coast Guard regulations promulgated under the authority of 46 
U.S.C. 6101 are within a field foreclosed from regulation by the 
States. See U.S. v. Locke, 529 U.S. 89, 115-16 (2000) (stating 
``Congress intended that the Coast Guard regulations be the sole source 
of a vessel's [marine casualty] reporting obligations.'').
    This NPRM would change the property damage threshold amounts for 
reporting marine casualties and serious marine incidents, which is 
within the sole purview of the Coast Guard to regulate pursuant to 46 
U.S.C. 6101 and the principles discussed in Locke. Thus, the proposed 
regulations are consistent with the principles of federalism and 
preemption requirements in E.O. 13132.
    While it is settled that States may not regulate in categories in 
which Congress intended the Coast Guard to be the sole source of a 
vessel's obligations, we recognize the key role that State and local 
governments may have in making regulatory determinations. Additionally, 
for rules with federalism implications and preemptive effect, E.O 13132 
specifically directs agencies to consult with State and local 
governments during the rulemaking process. If you believe this NPRM has 
implications for federalism under E.O. 13132, please contact the person 
listed in the FOR FURTHER INFORMATION section of this preamble.

F. Unfunded Mandates Reform Act

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

G. Taking of Private Property

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

H. Civil Justice Reform

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

I. Protection of Children

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

J. Indian Tribal Governments

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

K. Energy Effects

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

L. Technical Standards

    The National Technology Transfer and Advancement Act, codified as a

[[Page 7766]]

note to 15 U.S.C. 272, directs agencies to use voluntary consensus 
standards in their regulatory activities unless the agency provides 
Congress, through OMB, with an explanation of why using these standards 
would be inconsistent with applicable law or otherwise impractical. 
Voluntary consensus standards are technical standards (e.g., 
specifications of materials, performance, design, or operation; test 
methods; sampling procedures; and related management systems practices) 
that are developed or adopted by voluntary consensus standards bodies.
    This NPRM does not use technical standards. Therefore, we did not 
consider the use of voluntary consensus standards.

M. Environment

    We have analyzed this NPRM under Department of Homeland Security 
Management Directive 023-01 and Commandant Instruction M16475.1D, which 
guide the Coast Guard in complying with the National Environmental 
Policy Act of 1969, 42 U.S.C. 4321-4370f, and we have made a 
preliminary determination that this action is one of a category of 
actions that do not individually or cumulatively have a significant 
effect on the human environment. A preliminary environmental analysis 
checklist supporting this categorical exclusion determination is 
available in the docket where indicated under the ``Public 
Participation and Request for Comments'' section of this preamble.
    This NPRM involves regulations concerning marine casualties and 
proposes to update the monetary threshold amounts for a reportable 
marine casualty as well as the definition of an SMI relative to 
property damage. Thus, we expect that this NPRM would likely be 
categorically excluded under Section 2.b.2 and figure 2-1, paragraph 
34(d) of the Instruction. We seek any comments or information that may 
lead to the discovery of a significant environmental impact from this 
NPRM.

List of Subjects in 46 CFR Part 4

    Administrative practice and procedure, Drug testing, 
Investigations, Marine safety, National Transportation Safety Board, 
Nuclear vessels, Radiation protection, Reporting and recordkeeping 
requirements, Safety, Transportation.

    For the reasons discussed in the preamble, the Coast Guard proposes 
to amend 46 CFR part 4 as follows:

TITLE 46--SHIPPING

PART 4--MARINE CASUALTIES AND INVESTIGATIONS

0
1. The authority citation for part 4 continues to read as follows:

    Authority: 33 U.S.C. 1231; 43 U.S.C. 1333; 46 U.S.C. 2103, 
2303a, 2306, 6101, 6301, and 6305; 50 U.S.C. 198; Department of 
Homeland Security Delegation No. 0170.1. Subpart 4.40 issued under 
49 U.S.C. 1903(a)(1)(E).

0
2. In Sec.  4.03-2, revise paragraph (a) (3) to read as follows:


Sec.  4.03-2  Serious marine incident.

    (a) * * *
    (3) Damage to property, as defined in Sec.  4.05-1(a)(7) of this 
part, in excess of $200,000;
* * * * *
0
3. In Sec.  4.05-1, revise paragraph (a)(7) to read as follows:


Sec.  4.05-1  Notice of marine casualty.

    (a) * * *
    (7) An occurrence causing property-damage in excess of $72,000, 
this damage including the cost of labor and material to restore the 
property to its condition before the occurrence, but not including the 
cost of salvage, cleaning, gas-freeing, drydocking, or demurrage.
* * * * *

    Dated: January 13, 2017.
V.B. Gifford,
Captain, U.S. Coast Guard, Director of Inspections and Compliance.
[FR Doc. 2017-01323 Filed 1-19-17; 8:45 am]
 BILLING CODE 9110-04-P



                                                                            Federal Register / Vol. 82, No. 13 / Monday, January 23, 2017 / Proposed Rules                                                   7755

                                                    an appointment or to request copies of                  as the amendatory instructions and the                 following an SMI; consequently, testing
                                                    comments or other materials.                            amendatory regulatory text set forth in                is being conducted for casualties that
                                                                                                            the temporary rule on this subject                     are less significant than those intended
                                                    Regulatory Flexibility Act, Paperwork
                                                                                                            published in the Rules and Regulations                 to be captured by the original
                                                    Reduction Act, and Executive Order
                                                                                                            section of this issue of the Federal                   regulations. Updating the regulations
                                                    12866
                                                                                                            Register].                                             will reduce the burden on vessel owners
                                                      Since the regulatory text proposed in                                                                        and operators, and will also reduce the
                                                    this notice of proposed rulemaking is                   PART 27—IMPORTATION OF                                 amount of Coast Guard resources
                                                    identical to that contained in the                      DISTILLED SPIRITS, WINES, AND                          expended to investigate these incidents.
                                                    companion temporary rule published                      BEER                                                   DATES: Comments and related material
                                                    elsewhere in this issue of the Federal                                                                         must be submitted to the online docket
                                                                                                            ■ 3. The authority citation for part 27
                                                    Register, the analyses contained in the                                                                        via http://www.regulations.gov, or reach
                                                                                                            continues to read as follows:
                                                    preamble of the temporary rule                                                                                 the Docket Management Facility, on or
                                                    concerning the Regulatory Flexibility                     Authority: 5 U.S.C. 552(a), 19 U.S.C. 81c,
                                                                                                            1202; 26 U.S.C. 5001, 5007, 5008, 5010, 5041,          before March 24, 2017.
                                                    Act, the Paperwork Reduction Act, and                                                                             Comments sent to the Office of
                                                                                                            5051, 5054, 5061, 5121, 5122–5124, 5201,
                                                    Executive Order 12866 also apply to this                5205, 5207, 5232, 5273, 5301, 5313, 5382,              Management and Budget (OMB) on
                                                    proposed rule.                                          5555, 6109, 7805.                                      collection of information must reach
                                                    Drafting Information                                    ■ 4. [The proposed amendatory                          OMB on or before March 24, 2017.
                                                                                                            instructions and the proposed                          ADDRESSES: Submit comments using one
                                                      Dana Register and Kara Fontaine of
                                                    the Regulations and Rulings Division                    regulatory text for part 27 are the same               of the listed methods, and see
                                                                                                            as the amendatory instructions and the                 SUPPLEMENTARY INFORMATION section
                                                    drafted this document with the
                                                    assistance of other Alcohol and Tobacco                 amendatory regulatory text set forth in                below for more information on public
                                                    Tax and Trade Bureau personnel.                         the temporary rule on this subject                     comments.
                                                                                                            published in the Rules and Regulations                    Collection of information. You must
                                                    List of Subjects                                        section of this issue of the Federal                   submit any comments on the collection
                                                    27 CFR Part 24                                          Register].                                             of information discussed in Section IV
                                                                                                                                                                   of this preamble both to the Coast
                                                      Administrative practice and                             Signed: December 7, 2016.
                                                                                                                                                                   Guard’s docket and to the Office of
                                                    procedure, Cider, Claims, Electronic                    John J. Manfreda,
                                                                                                                                                                   Information and Regulatory Affairs
                                                    funds transfers, Excise taxes, Exports,                 Administrator.                                         (OIRA) in the White House Office of
                                                    Food additives, Fruit juices, Hard Cider,                 Approved: January 4, 2017.                           Management and Budget. OIRA
                                                    Labeling, Liquors, Packaging and                        Timothy E. Skud,                                       submissions can use one of the listed
                                                    containers, Reporting and recordkeeping                 Deputy Assistant Secretary (Tax, Trade and             methods.
                                                    requirements, Research, Scientific                      Tariff Policy).                                           • Email (preferred)—oira_
                                                    equipment, Spices and flavorings,                       [FR Doc. 2017–00334 Filed 1–19–17; 8:45 am]            submission@omb.eop.gov (include the
                                                    Surety bonds, Vinegar, Warehouses,                      BILLING CODE 4810–31–P                                 docket number and ‘‘Attention: Desk
                                                    Wine.                                                                                                          Officer for Coast Guard, DHS’’ in the
                                                    27 CFR Part 27                                                                                                 subject line of the email).
                                                                                                            DEPARTMENT OF HOMELAND                                    • Fax—202–395–6566.
                                                      Alcohol and alcoholic beverages,                                                                                • Mail—Office of Information and
                                                                                                            SECURITY
                                                    Beer, Cosmetics, Customs duties and                                                                            Regulatory Affairs, Office of
                                                    inspections, Electronic funds transfers,                Coast Guard                                            Management and Budget, 725 17th
                                                    Excise taxes, Imports, Labeling, Liquors,                                                                      Street NW., Washington, DC 20503,
                                                    Packaging and containers, Reporting                     46 CFR Part 4                                          ATTN: Desk Officer, U.S. Coast Guard.
                                                    and Recordkeeping requirements, Wine.
                                                                                                            [Docket No. USCG–2016–0748]                            FOR FURTHER INFORMATION CONTACT: For
                                                    Proposed Amendments to the                                                                                     information about this document, call or
                                                    Regulations                                             RIN 1625–AC33                                          email CDR Randy Waddington, CG–INV,
                                                      For the reasons discussed in the                                                                             Coast Guard; telephone 202–372–1029,
                                                                                                            Marine Casualty Reporting Property
                                                    preamble, TTB proposes to amend 27                                                                             email HQS-PF-fldr-CG-INV@
                                                                                                            Damage Thresholds
                                                    CFR chapter I, parts 24 and 27 as                                                                              uscg.dhs.gov.
                                                    follows:                                                AGENCY:   Coast Guard, DHS.                            SUPPLEMENTARY INFORMATION:
                                                                                                            ACTION:   Notice of proposed rulemaking.
                                                    PART 24—WINE                                                                                                   Table of Contents for Preamble
                                                                                                            SUMMARY:   The Coast Guard proposes to
                                                                                                                                                                   I. Public Participation and Request for
                                                    ■ 1. The authority citation for part 24                 amend the monetary property damage                           Comments
                                                    continues to read as follows:                           threshold amounts for reporting a                      II. Abbreviations
                                                      Authority: 5 U.S.C. 552(a); 26 U.S.C. 5001,
                                                                                                            marine casualty, and for reporting a type              III. Background, Basis, and Purpose
                                                    5008, 5041, 5042, 5044, 5061, 5062, 5121,               of marine casualty called a ‘‘serious                  IV. Discussion of Proposed Rule
                                                    5122–5124, 5173, 5206, 5214, 5215, 5351,                marine incident’’ (SMI). The initial                   V. Regulatory Analyses
                                                    5353, 5354, 5356, 5357, 5361, 5362, 5364–               regulations setting these dollar                          A. Regulatory Planning and Review
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                                                    5373, 5381–5388, 5391, 5392, 5511, 5551,                threshold amounts were promulgated in                     B. Small Entities
                                                    5552, 5661, 5662, 5684, 6065, 6091, 6109,               the early1980s and they have not been                     C. Assistance for Small Entities
                                                    6301, 6302, 6311, 6651, 6676, 7302, 7342,               updated. Because the monetary                             D. Collection of Information
                                                    7502, 7503, 7606, 7805, 7851; 31 U.S.C. 9301,                                                                     E. Federalism
                                                                                                            thresholds for reporting have not kept                    F. Unfunded Mandates Reform Act
                                                    9303, 9304, 9306.                                       pace with inflation, relatively minor                     G. Taking of Private Property
                                                    ■ 2. [The proposed amendatory                           casualties must be reported.                              H. Civil Justice Reform
                                                    instructions and the proposed                           Additionally, the regulations require                     I. Protection of Children
                                                    regulatory text for part 24 are the same                mandatory drug and alcohol testing                        J. Indian Tribal Governments



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                                                    7756                    Federal Register / Vol. 82, No. 13 / Monday, January 23, 2017 / Proposed Rules

                                                       K. Energy Effects                                    SMI Serious marine incident                            effective method of ensuring that only
                                                       L. Technical Standards                               § Section symbol                                       the more serious casualties are
                                                       M. Environment                                       U.S.C. United States Code                              reported.’’ (45 FR 77439, 77440).
                                                    I. Public Participation and Request for                                                                        Accordingly, it has never been our
                                                                                                            III. Background, Basis, and Purpose
                                                    Comments                                                                                                       intent to require owners or operators to
                                                                                                               Pursuant to 46 U.S.C. 6101, the Coast               notify us of casualties involving
                                                       We view public participation as                      Guard is required to prescribe                         relatively minor property damage;
                                                    essential to effective rulemaking, and                  regulations on marine casualty reporting               consequently, we are amending the
                                                    we will consider all comments and                       and the manner of reporting. Based on                  property damage monetary threshold
                                                    material received during the comment                    this authority, we promulgated                         amounts in order to eliminate the
                                                    period. Your comment can help shape                     regulations in part 4 of Title 46 of the               reporting of insignificant property
                                                    the outcome of this rulemaking. If you                  Code of Federal Regulations (CFR) that                 damage incidents. The marine casualty
                                                    submit a comment, please include the                    included, among other criteria,                        reports impacted by this NPRM are
                                                    docket number for this rulemaking,                      monetary property damage threshold                     those marine casualties where the only
                                                    indicate the specific section of this                   amounts for reporting a ‘‘serious marine               outcome was property damage in the
                                                    document to which each comment                          incident’’ 1 and for reporting a marine                amount of $25,000.01 through $72,000.
                                                    applies, and provide a reason for each                  casualty.2 The original regulations                    Additionally, because the regulations
                                                    suggestion or recommendation.                           setting these property damage threshold                require mandatory drug and alcohol
                                                       We encourage you to submit                           amounts were promulgated in the 1980s                  testing following an SMI, current
                                                    comments through the Federal                            and they have not since been updated.                  regulations require chemical testing for
                                                    eRulemaking Portal at http://                           In this NPRM, the Coast Guard proposes                 casualties that reach a minimum
                                                    www.regulations.gov. If your material                   to update the dollar threshold amounts                 threshold of $100,000 in property
                                                    cannot be submitted using http://                       for property damage in 46 CFR 4.03–                    damage. Due to cost increases caused by
                                                    www.regulations.gov, contact the person                 2(a)(3) and 4.05–1(a)(7) to account for                inflation, however, casualties that result
                                                    in the FOR FURTHER INFORMATION                          inflation.                                             in property damage between $100,000
                                                    CONTACT section of this document for                       In 2013 through 2014, Coast Guard                   and $200,000 are no longer
                                                    alternate instructions. Documents                       undertook a review of marine casualty                  representative of a ‘‘serious’’ casualty.
                                                    mentioned in this notice of proposed                    reporting requirements during our                      The lack of inflation updates to our
                                                    rulemaking (NPRM), and all public                       development of Navigation and Vessel                   marine casualty regulations has resulted
                                                    comments, are in our online docket at                   Inspection Circular (NVIC) 01–15,                      in an additional administrative and
                                                    http://www.regulations.gov and can be                   resulting in a Federal Register notice 3
                                                                                                                                                                   financial burden on vessel owners and
                                                    viewed by following that Web site’s                     requesting public comment on the draft
                                                                                                                                                                   operators, as well as on Coast Guard
                                                    instructions. Additionally, if you go to                NVIC 01–15. Several commenters from
                                                                                                                                                                   resources used to investigate these
                                                    the online docket and sign up for email                 industry and the public noted that
                                                                                                                                                                   incidents. This NPRM would result in
                                                    alerts, you will be notified when                       property damage threshold amounts for
                                                                                                                                                                   an estimated annual cost savings of
                                                    comments are posted or a final rule is                  reported marine casualties and serious
                                                                                                                                                                   $40,809 to industry due to a reduction
                                                    published.                                              marine incidents (SMIs) had not been
                                                                                                                                                                   in the hourly burden of reporting and
                                                       We accept anonymous comments. All                    updated to reflect inflation and
                                                                                                                                                                   recordkeeping for both marine
                                                    comments received will be posted                        supported an inflation adjustment to the
                                                                                                                                                                   casualties and SMIs, and a reduction in
                                                    without change to http://                               thresholds. Furthermore, in response to
                                                                                                            a task to examine the Coast Guard’s                    an estimated annual cost savings of
                                                    www.regulations.gov and will include
                                                                                                            marine casualty reporting requirements,                $4,649 for chemical testing for marine
                                                    any personal information you have
                                                                                                            the Coast Guard’s Towing Vessel Safety                 casualties designated as SMIs. This
                                                    provided. For more about privacy and
                                                                                                            Advisory Committee recommended that                    NPRM would result in Coast Guard cost
                                                    the docket, you may review a Privacy
                                                                                                            we amend the monetary thresholds in                    savings by reducing the hourly burden
                                                    Act notice regarding the Federal Docket
                                                                                                            46 CFR part 4 to account for inflation.4               costs to investigate marine casualties as
                                                    Management System in the March 24,
                                                                                                               There is Coast Guard and stakeholder                well as the costs associated with
                                                    2005, issue of the Federal Register (70
                                                                                                            consensus that the early 1980s property                processing marine casualty forms.
                                                    FR 15086).
                                                       We are not planning to hold a public                 damage monetary threshold amounts                         As a result of updating the dollar
                                                    meeting but will consider doing so if                   listed in 46 CFR 4.03–2 and 4.05–1 have                amount thresholds to account for
                                                    public comments indicate a meeting                      not kept pace with inflation. Over time,               inflation, we anticipate there would be
                                                    would be helpful. We would issue a                      this has resulted in the reporting of a                a decrease in the number of commercial
                                                    separate Federal Register notice to                     greater number casualties involving                    vessel casualties reported to the Coast
                                                    announce the date, time, and location of                relatively minor property damage. As                   Guard. The changes proposed by this
                                                    such a meeting.                                         was explained in the 1980 interim final                NPRM would also likely decrease the
                                                                                                            rule, ‘‘the Coast Guard’s selection of a               number of casualties that fall within the
                                                    II. Abbreviations                                       monetary value as a reporting criterion                current definition of an SMI, and
                                                    BLS Bureau of Labor Statistics                          is based upon the premise that                         thereby reduce the amount of chemical
                                                    CFR Code of Federal Regulations                         increased repair costs are indicative of               tests administered following an SMI that
                                                    CPI-U Consumer Price Index for All Urban                the increased seriousness of a marine                  result in property damage of
                                                      Consumers                                             casualty [. . .] The monetary damage                   $100,000.01 through $200,000. However
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                                                    DHS Department of Homeland Security                     criterion has been chosen as the most                  mandatory chemical testing would still
                                                    E.O. Executive Order                                                                                           be required if the property damage
                                                    FR Federal Register                                       1 46 CFR 4.03–2.                                     meets the revised dollar threshold
                                                    MISLE Marine Information for Safety and                   2 46 CFR 4.05–1.
                                                      Law Enforcement
                                                                                                                                                                   amount (in excess of $200,000)
                                                                                                              3 79 FR 2466 (January 14, 2014).
                                                    NVIC Navigation and Vessel Inspection                     4 Towing Safety Advisory Committee, Task 13–
                                                                                                                                                                   proposed by this NPRM. The intent of
                                                      Circular                                              09, Recommendations for Improvement of Marine
                                                                                                                                                                   setting a dollar amount threshold in our
                                                    OCMI Officer in Charge, Marine Inspection               Casualty Reporting Final Report. This report is        marine casualty reporting regulation
                                                    OMB Office of Management and Budget                     accessible at https://homeport.uscg.mil/tsac.          and within the definition of ‘‘serious


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                                                                                   Federal Register / Vol. 82, No. 13 / Monday, January 23, 2017 / Proposed Rules                                                               7757

                                                    marine incident’’ is to ensure that the                               CPI–U is calculated and published by                     (‘‘Improving Regulation and Regulatory
                                                    Coast Guard is aware of those incidents                               the U.S. Department of Labor, Bureau of                  Review’’) direct agencies to assess the
                                                    that could be indicative of more serious                              Labor Statistics, 5 and uses the period of               costs and benefits of available regulatory
                                                    problems and that may be averted in the                               1982 to 1984 as the base level where the                 alternatives and, if regulation is
                                                    future with timely intervention.                                      CPI–U = 100. We calculated the                           necessary, to select regulatory
                                                       These proposed changes would                                       inflation adjustment by comparing the                    approaches that maximize net benefits
                                                    provide a benefit for both the marine                                 average CPI–U for the base years (82.408                 (including potential economic,
                                                    industry and the Coast Guard because                                  in 1980 and 118.258 in 1988) with the                    environmental, public health and safety
                                                    they would reduce the hourly burden or                                average CPI–U for 2015 (237.017). This                   effects, distributive impacts, and
                                                    eliminate the marine casualty reporting                               resulted in an inflation adjustment
                                                                                                                                                                                   equity). Executive Order 13563
                                                    requirements for incidents involving                                  factor of 1.876 6 for the marine casualty
                                                                                                                                                                                   emphasizes the importance of
                                                    property damage between the existing                                  dollar threshold and a factor of 1.004 7
                                                                                                                          for the SMI dollar threshold.                            quantifying both costs and benefits, of
                                                    and proposed thresholds, and reduce                                                                                            reducing costs, of harmonizing rules,
                                                    SMI chemical testing requirements for                                   For the marine casualty reporting
                                                                                                                          threshold, we multiplied the inflation                   and of promoting flexibility. This NPRM
                                                    incidents involving property damage in
                                                                                                                          adjustment factor of 1.876 by the current                has not been designated a ‘‘significant
                                                    the range of $100,000 through $200,000.
                                                                                                                          threshold of $25,000 to calculate the                    regulatory action,’’ under section 3(f) of
                                                    As a result, the marine industry and
                                                    Coast Guard resources would be able to                                raw inflation increment of $46,900,                      Executive Order 12866. Accordingly,
                                                    focus efforts on higher consequence                                   resulting in a total revised threshold of                the rule has not been reviewed by the
                                                    incidents.                                                            $72,000 (25,000 + $46,900 rounded to                     Office of Management and Budget.
                                                                                                                          the nearest thousand).                                      This Regulatory Analysis provides an
                                                    IV. Discussion of Proposed Rule                                         For the SMI dollar threshold, we                       evaluation of the economic impacts
                                                      The Coast Guard proposes to amend                                   multiplied the inflation adjustment
                                                                                                                                                                                   associated with this NPRM. The Coast
                                                    46 CFR 4.03–2 and 4.05–1. The                                         factor of 1.004 by the current threshold
                                                                                                                                                                                   Guard proposes to amend two sections
                                                                                                                          of $100,000 to calculate the raw
                                                    proposed changes would replace the                                                                                             in part 4 of Title 46 of the CFR, 46 CFR
                                                                                                                          inflation increment of $100,400,
                                                    existing reportable marine casualty                                                                                            4.03–2 and 4.05–1. Under this NPRM,
                                                                                                                          resulting in a total revised threshold of
                                                    property damage threshold amount of                                                                                            the Coast Guard proposes to replace the
                                                                                                                          $200,000 (100,000 + $100,400 rounded
                                                    $25,000 with $72,000 in 46 CFR part                                                                                            reportable marine casualty dollar
                                                                                                                          to the nearest thousand).
                                                    4.05–1(a) (7), and replace the SMI                                                                                             threshold of $25,000 with $72,000 in 46
                                                    property damage threshold of $100,000                                 V. Regulatory Analyses                                   CFR part 4.05–1(a) (7), and replace the
                                                    with $200,000 in 46 CFR part 4.03–2(a)                                  We developed this NPRM after                           SMI dollar threshold of $100,000 with
                                                    (3). These threshold amounts are being                                considering numerous statutes and                        $200,000 in 46 CFR part 4.03–2(a) (3) to
                                                    updated to account for inflation.                                     Executive Orders (E.O.s) related to                      update the thresholds to account for
                                                      The Coast Guard determined the                                      rulemaking. Below we summarize our                       inflation, as discussed in Section IV of
                                                    inflation adjustment factor using the                                 analyses based on these statutes or                      this NPRM. Table 1 provides a summary
                                                    change in the Consumer Price Index for                                E.O.s.                                                   of the affected population, costs, and
                                                    All Urban Consumers (CPI–U) from the
                                                                                                                          A. Regulatory Planning and Review                        benefits after implementation of this
                                                    original dollar thresholds set in 1980 for
                                                    marine casualty property damage and                                     Executive Orders 12866 (‘‘Regulatory                   NPRM.
                                                    1988 for SMI property damage. The                                     Planning and Review’’) and 13563

                                                                                                                    TABLE 1—SUMMARY OF THE IMPACTS OF THE NPRM
                                                                           Category                                                                                       Summary

                                                    Applicability .............................................      Replace the reportable marine casualty dollar threshold of $25,000 with $72,000.
                                                                                                                     Replace the SMI dollar threshold of $100,000 with $200,000. Owners, agents, masters, operators, or
                                                                                                                       persons in charge involved in a marine casualty and crewmembers who are required to undergo
                                                                                                                       chemical testing.
                                                    Affected Population .................................            Annual average of 316 vessel owners, operators, or their representatives reporting a marine casualty,
                                                                                                                       21 marine employers reporting an SMI, and average of 32 vessel crewmembers completing chem-
                                                                                                                       ical testing would no longer be required to report these incidents to the Coast Guard.
                                                    Costs .......................................................    No quantitative costs.
                                                    Benefits ...................................................     $45,458 annualized and $319,281 10-year present value monetized industry benefits (cost savings)
                                                                                                                       (7% discount rate).
                                                                                                                     $637,688 annualized and $4,478,854 10-year present value monetized Government benefits (cost
                                                                                                                       savings) (7% discount rate).
                                                                                                                     Total of industry and Government benefits: $683,146 annualized and $4,798,134 10-year present
                                                                                                                       value monetized combined benefits (cost savings) (7% discount rate).
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                                                    Affected Population                                                   CFR 4.05–1, are required to notify the                   individuals who would have completed
                                                                                                                          nearest Sector Office whenever a vessel                  the necessary forms (CG–2692 series) to
                                                       We expect that this NPRM would                                     is involved in a marine casualty.                        report a marine casualty where the only
                                                    affect the owners, agents, masters,                                   Specifically, the proposed regulations in                outcome was property damage of
                                                    operators, or persons in charge of a                                  this NPRM would affect those                             $25,000.01 through $72,000, or an SMI
                                                    commercial vessel who, pursuant to 46
                                                      5 CPI Detailed Report December 2015, Table 24.                        6 (237.017   – 82.408)/82.408 = 1.876.                   7 (237.017   – 118.258)/118.258 = 1.004.
                                                    http://www.bls.gov/cpi/cpid1512.pdf.



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                                                    7758                    Federal Register / Vol. 82, No. 13 / Monday, January 23, 2017 / Proposed Rules

                                                    with property damage of $100,000.01                     reduction in the time burden associated                Instruction 7310.1P, ‘‘Reimbursable
                                                    through $200,000 (CG–2692 series,                       with an SMI written report (CG–2692B)                  Standard Rates.’’ 11 The annual baseline
                                                    supplemented with an appended SMI                       as well as cost savings associated with                cost to complete the current 5,967 CG–
                                                    written report (CG–2692B).8                             chemical savings.                                      2692 series forms would be $155,142
                                                       We used incident investigation data
                                                                                                            Benefits or Cost Savings to Industry                   (5,967 marine casualty reports × $26).
                                                    from the Coast Guard’s Marine                                                                                     We estimate that it takes, on average,
                                                    Information for Safety and Law                             The benefit or cost savings to industry             1 hour to complete the CG–2692 series
                                                    Enforcement (MISLE) system from 2012                    is the difference between the current                  forms. However, we received public
                                                    through 2014 9 to estimate the average                  baseline cost to industry and the cost to              comments in 2011 on existing COI
                                                    number of vessel crewmembers affected                   industry after implementation of this                  number 1625–0001 stating that
                                                    by this NPRM. From 2012 through 2014,                   NPRM.                                                  completing the CG–2692 form takes
                                                    we found there was an average of 5,967                  Current Reporting Cost to Industry for                 more than one hour and one commenter
                                                    reports of a marine casualty per year,                  CG–2692 and CG–2692B                                   stated that it can take up to 8 to 12 hours
                                                    with one individual per vessel who we                                                                          to complete the form.12 The reason for
                                                    assume to be a vessel crewmember                          To estimate the benefit to industry,
                                                                                                                                                                   this difference is that some entities
                                                    completing each report. An average of                   we first estimate the current cost to
                                                                                                                                                                   choose to have the forms reviewed by
                                                    271, or 4.5 percent of the annual 5,967                 industry. The cost to industry includes
                                                                                                                                                                   shore-side personnel, such as an
                                                    marine casualty reports, involved an                    costs for reporting and recordkeeping
                                                                                                                                                                   attorney prior to submission to the Coast
                                                    SMI.                                                    for a reportable marine casualty and the
                                                                                                                                                                   Guard. We adjusted our burden estimate
                                                       Of the 5,967 marine casualty reports,                costs for chemical testing for marine
                                                                                                                                                                   to account for the additional layer of
                                                    approximately 5.3 percent were for a                    casualties designated as SMIs. The
                                                                                                                                                                   review. To account for this additional
                                                    reportable marine casualty where the                    reporting and recordkeeping costs for
                                                                                                                                                                   time, 10 percent of the forms submitted
                                                    only outcome was property damage of                     marine casualties include the time to
                                                                                                                                                                   would have 10 hours of additional
                                                    $25,000.01 through $72,000. Therefore,                  complete the forms (CG–2692 series) for
                                                                                                                                                                   burden. The additional time reflects
                                                    we expect that an average of                            a marine casualty, the time for
                                                                                                                                                                   internal review by individuals
                                                    approximately 316 fewer reports of                      approximately 10 percent of the forms
                                                                                                                                                                   employed by the owner or operator in
                                                    marine casualties would be required per                 to be internally reviewed before
                                                                                                                                                                   addition to the vessel crewmember who
                                                    year. Vessel owners and operators                       submission, and the time to complete
                                                                                                                                                                   completes the form. The additional
                                                    would benefit from a reduction in the                   the additional SMI written report (CG–
                                                                                                                                                                   reviewers may be shoreside
                                                    time burden associated with a                           2692B) pursuant to 46 CFR 4.06–60(a) if
                                                                                                                                                                   representatives, port engineers, and
                                                    crewmember no longer having to                          a marine casualty is designated as an
                                                                                                                                                                   attorneys, among others. We estimate
                                                    prepare and submit the required marine                  SMI. The time estimates and wage rates
                                                                                                                                                                   the wage rate for this added review is
                                                    casualty reporting paperwork.                           for reporting and recordkeeping are
                                                       Of the 271 casualty reports that                                                                            done by personnel analogous to a
                                                                                                            taken from the existing Collection of
                                                    involved an SMI, approximately 7.9                                                                             government employee at the grade level
                                                                                                            Information, entitled ‘‘Report of Marine
                                                    percent (21 out of 271) were ones in                                                                           of a GS–14. The fully loaded wage rate
                                                                                                            Casualty & Chemical Testing of
                                                    which the sole outcome of the SMI was                                                                          for a GS–14 is $101 per hour, per
                                                                                                            Commercial Vessel Personnel,’’ which
                                                    property damage of $100,000.01 through                                                                         Commandant Instruction 7310.1P. The
                                                                                                            has OMB Control Number 1625–0001.10
                                                    $200,000. Based on that annual average,                                                                        total annual cost of this additional time
                                                                                                            We use the same time estimates and
                                                    the amendments proposed in this NPRM                                                                           is $602,970 (597 marine casualty reports
                                                                                                            wage rates in this analysis to maintain
                                                    would likely result in a reduction of                                                                          × 10 additional burden hours × $101).
                                                                                                            consistency and to capture the changes
                                                    about 21 SMI written reports (CG–                       due to this NPRM.                                         When a marine casualty is designated
                                                    2692B) per year due to the proposed                       An average of 5,967 marine casualty                  as an SMI, the marine employer must
                                                    change to the monetary threshold                        reports are submitted annually by vessel               also complete an SMI written report
                                                    amount for an SMI involving property                    owners or operators. For each reportable               (CG–2692B). (See 46 CFR 4.06–60.) We
                                                    damage. Because property damage of                      marine casualty, the existing Collection               estimate that it takes about 0.5 hours for
                                                    $100,000.01 through $200,000 exceeds                    of Information estimates that it takes                 a marine employer analogous to a
                                                    the threshold for a reportable marine                   about 1 hour for a vessel crewmember                   government employee at the grade level
                                                    casualty, the forms for a marine casualty               to complete the necessary forms (CG–                   of a GS–03 to complete this form. The
                                                    report (CG–2692 series) would still need                2692 series). The existing Collection of               annual cost to complete an SMI written
                                                    to be completed. However, marine                        Information also estimates that the                    report (CG–2692B) is about $3,523 (271
                                                    employers would no longer be required                   position of vessel crewmember is                       SMI reports × 0.5 hours × $26 per hour
                                                    to complete the additional paperwork                    analogous to a government employee at                  wage rate).
                                                    required for an SMI written report (CG–                 the grade level of a GS–03. The fully                     Table 2 shows a summary of the
                                                    2692B). Consequently, marine                            loaded wage rate for a GS–03 is $26 per                current industry costs for reporting and
                                                    employers would benefit from a                          hour, according to Commandant                          recordkeeping.

                                                      8 ‘‘Report of Required Chemical Drug and Alcohol        10 Existing Collection of Information, ‘‘Report of     11 Out of Government Rate for GS–03. Hourly

                                                    Testing Following a Serious Marine Incident.’’ See,     Marine Casualty & Chemical Testing of Commercial       Rates for Personnel ($), Enclosure (2) to
                                                    46 CFR 4.05–10.                                         Vessel Personnel’’, OMB Control Number 1625–           Commandant Instruction 7310.1P. We use this
                                                      9 This 3-year time period was used to be              0001, Docket Number USCG–2015–0910, can be             version to maintain consistency with the existing
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                                                    consistent with the existing Collection of              found at https://www.federalregister.gov/              COI 1625–0001.
                                                    Information, entitled ‘‘Report of Marine Casualty &     documents/2015/10/23/2015-27019/information-             12 Docket ID: USCG–2011–0710. Comments can

                                                    Chemical Testing of Commercial Vessel Personnel,’’      collection-request-to-office-of-management-and-        be found at https://www.regulations.gov/
                                                    which has OMB Control Number 1625–0001.                 budget-omb-control-number-1625-0001.                   docket?D=USCG-2011-0710.




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                                                                                     Federal Register / Vol. 82, No. 13 / Monday, January 23, 2017 / Proposed Rules                                                                                         7759

                                                                                     TABLE 2—CURRENT ANNUAL INDUSTRY COSTS FOR REPORTING AND RECORDKEEPING
                                                                                                                                                  Crewmembers/                Burden hours               Annual hour                                  Annual cost
                                                                                      Requirement                                                                                                                             Wage rate
                                                                                                                                                    responses                 per response                 burden                                       burden

                                                    Written report of marine casualty .......................................                                     5,967                            1             5,967                       $26         $155,142
                                                    Additional Burden for 10% of Respondents .......................                                                597                           10             5,970                       101          602,970
                                                    SMI written report ...............................................................                              271                          0.5               136                        26            3,523

                                                          Totals ...........................................................................      .........................   ........................         12,073      ........................       761,635
                                                       * Estimates may not sum due to independent rounding.


                                                       As mentioned earlier in this NPRM,                                       that involved an SMI from MISLE and                                       Transportation Workers (May 2015).
                                                    when a marine casualty is designated as                                     found an average of 1.5 crewmembers                                       The BLS reports that the mean hourly
                                                    an SMI, the crewmembers involved are                                        per SMI were required to take a                                           wage rate for a water transportation
                                                    required to take a chemical test                                            chemical test. We used an estimate of                                     worker is $31.11.15 To account for
                                                    pursuant to 46 CFR 4.06–3. The marine                                       1.5 crewmembers to estimate the costs                                     employee benefits, we use a load factor
                                                    employer incurs costs for the actual                                        of chemical testing to account for the                                    of 1.53, which we calculated from 2016
                                                    costs of the chemical test and the time                                     variation in crewmembers involved in                                      first quarter BLS data.16 The loaded
                                                    it takes for a crewmember to take the                                       SMIs. With an average of 271 SMIs per                                     wage for a crewmember is estimated at
                                                    chemical test. The actual cost of the                                       year, the current annual cost for the                                     $47.60 ($31.11 wage rate × 1.53 load
                                                    chemical test includes the costs of the                                     actual chemical tests is $40,650 (271
                                                                                                                                                                                                          factor). The cost of the time for a
                                                    chemical test collection kits, collector                                    SMIs × average of 1.5 crewmembers ×
                                                                                                                                                                                                          crewmember to take the chemical test is
                                                    fees, Coast Guard alcohol-testing swabs,                                    $100 per test).
                                                    and costs of overnight mailing. These                                         In addition to the cost of the chemical                                 $19,349 (271 SMIs × average of 1.5
                                                    costs can vary, but on average, the                                         tests, there is a cost associated with the                                crewmembers × 1 hour burden × $47.60
                                                    actual chemical test costs approximately                                    time it takes a vessel crewmember to                                      wage rate). Therefore, the current
                                                    $100 per test.13 Each vessel                                                complete the chemical test. We estimate                                   annual cost to industry for chemical
                                                    crewmember involved in an SMI is                                            that it takes 1 hour for a crewmember                                     testing is $59,999 (see Table 3). Adding
                                                    required to take a chemical test. The                                       to complete the chemical test.14 We                                       the costs for chemical testing of $59,999
                                                    number of vessel crewmembers required                                       obtained the wage rate of the                                             to the cost for reporting and
                                                    to take a chemical test can vary                                            crewmember from the U.S. Bureau of                                        recordkeeping of $761,635 (see Table 2),
                                                    depending on the circumstances of the                                       Labor Statistics (BLS), using                                             brings the current total annual cost to
                                                    SMI. We analyzed the casualty reports                                       Occupational Series 53–5000, Water                                        industry to $821,634.
                                                                                                  TABLE 3—CURRENT ANNUAL INDUSTRY COSTS FOR CHEMICAL TESTING
                                                                                                                                                      Average                     Cost of                                                              Total cost
                                                                                                                                                                                                          Hours to
                                                                                      SMIs per year                                                crewmembers                    testing                                     Wage rate                of testing
                                                                                                                                                                                                          take test
                                                                                                                                                  tested per SMI                procedures                                                            procedures

                                                    271 .......................................................................................                       1.5                     $100                     1                $47.60            $59,999



                                                    Total Reporting Costs to Industry After                                     marine casualties and 250 for SMIs,                                       casualty forms would be $146,926
                                                    Implementation of the NPRM                                                  resulting in 316 fewer reported marine                                    (5,651 marine casualty reports × $26).
                                                                                                                                casualties and 21 fewer SMIs. The                                            In addition to the time to complete
                                                       Increasing the dollar threshold
                                                                                                                                following sections replicate the                                          the forms, some of the marine casualty
                                                    amount for a reportable marine casualty
                                                                                                                                calculation of marine casualty reporting                                  forms would require additional
                                                    involving property damage, as well as
                                                    the dollar threshold amount for property                                    and chemical testing, but reflect the                                     processing time. The additional
                                                    damage within the definition of a                                           reduced number of reports and testing                                     processing time reflects internal review
                                                    ‘‘serious marine incident,’’ would                                          under the revised thresholds.                                             by individuals employed by the owner
                                                    reduce the number of marine casualty                                          For each reportable marine casualty,                                    or operator, in addition to the time
                                                    responses by 5.3 percent, and the                                           we estimate that it takes about 1 hour                                    needed by the vessel crewmember who
                                                    number of SMIs by 7.9 percent,                                              for a vessel crewmember to complete all                                   completes the form. The additional
                                                    annually. The burden hours per                                              parts of the necessary forms at a wage                                    reviewers may be shoreside
                                                    response would remain the same, but                                         rate of $26. We estimate that the cost to                                 representatives, port engineers, or
                                                    we estimate that the total number of                                        complete the reduced number of marine                                     attorneys, among others. To account for
                                                    responses would decrease to 5,651 for
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                                                      13 Most marine employers use a consortium that                            $79 and $114. We are, therefore, using an average                           16 Employer Costs for Employee Compensation

                                                    simplifies and reduces the costs per test and also                          cost of $100 for this analysis [($79+$114)/2,                             provides information on the employer
                                                    assists in managing a company’s drug-testing                                rounded].                                                                 compensation and can be found at http://
                                                    program. There are variables associated with the                              14 Hourly estimate is from Coast Guard subject
                                                                                                                                                                                                          data.bls.gov/data/. The loaded wage factor is equal
                                                    cost of testing, as costs can vary depending on the                         matter experts, and takes into account that these are                     to the total compensation of $27.61 divided by the
                                                    number of personnel included in a plan and the                              not planned tests, but instead are emergent tests—
                                                                                                                                                                                                          wages and salary of $18.05. Values for the total
                                                    type of testing plan adopted by a particular                                required as a result of accidents—that must be taken
                                                                                                                                no later than 32 hours after the incident.                                compensation and wages and salary are for all
                                                    company. Based on discussions with industry and
                                                    Coast Guard medical testing contract data that is not                         15 Mean wage, http://www.bls.gov/oes/2015/may/                          private industry workers in the transportation and
                                                    publically available, we estimated testing costs of                         oes_nat.htm                                                               material moving occupations, 2016 1st quarter.




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                                                    7760                             Federal Register / Vol. 82, No. 13 / Monday, January 23, 2017 / Proposed Rules

                                                    this time, 10 percent 17 of the forms                                       $570,650 (565 marine casualty reports ×                                    a grade level of a GS–03 to complete this
                                                    submitted (565 forms) would have 10                                         10 additional burden hours × $101).                                        form.18 We estimate that the cost to
                                                    hours of additional burden, and the                                           As mentioned earlier in this NPRM,                                       complete the additional forms for an
                                                    wage rate for this added review would                                       when a marine casualty is designated as                                    SMI after implementation of this NPRM
                                                    be done by personnel analogous to a                                         an SMI, the marine employer must                                           would be $3,250 (250 SMI reports × 0.5
                                                    government employee at the grade level                                      complete an SMI written report (CG–                                        hours × $26 per hour wage rate).
                                                    of a GS–14. We estimate that the total                                      2692B). We estimate that it takes about                                      Table 4 shows a summary of the
                                                    cost of this additional time after the                                      0.5 hours for a marine employer                                            industry costs after implementation of
                                                    implementation of this NPRM would be                                        analogous to a government employee at                                      this NPRM.

                                                        TABLE 4—ANNUAL INDUSTRY COSTS FOR REPORTING AND RECORDKEEPING WITH REVISED REPORTING THRESHOLDS
                                                                                                                                                  Crewmembers/                 Burden hours               Annual hour                                    Annual
                                                                                      Requirement                                                                                                                              Wage rate
                                                                                                                                                    responses                  per response                 burden                                     cost burden

                                                    Written report of marine casualty .......................................                                     5,651                            1              5,651                       $26           $146,926
                                                    Additional Burden for 10% of Respondents .......................                                                565                           10              5,650                       101            570,650
                                                    SMI written report ...............................................................                              250                          0.5                125                        26              3,250

                                                          Totals ...........................................................................      .........................   ........................          11,426      ........................         720,826
                                                       Note: Estimates may not sum due to independent rounding.


                                                      The marine employer incurs the                                            SMIs × average of 1.5 crewmembers ×                                        hour burden × $47.60 wage rate).
                                                    actual costs of the chemical test as well                                   $100 per test).                                                            Therefore, the annual cost to industry
                                                    as the wage burden it takes for a                                             In addition to the cost of the chemical                                  for chemical testing after
                                                    crewmember to complete the chemical                                         tests, there is a cost associated with the                                 implementation of this NPRM would be
                                                    test. On average, each chemical test                                        time it takes a vessel crewmember to                                       $55,350 (see Table 5). Adding the costs
                                                    costs approximately $100. We use an                                         complete the chemical test. We estimate                                    for chemical testing of $55,350 to the
                                                    estimate of 1.5 crewmembers to estimate                                     that it takes 1 hour for a crewmember                                      cost for reporting and recordkeeping of
                                                    the costs of chemical testing to account                                    to complete the chemical test at a                                         $720,826 (see Table 4) brings the
                                                    for the variation in crewmembers                                            loaded wage rate of $47.60 per hour. We                                    estimated total annual cost to industry
                                                    involved in SMIs. With an average of                                        estimate that the cost of the time for a
                                                                                                                                                                                                           to $776,176, if this NPRM is
                                                    250 SMIs per year, the annual cost after                                    crewmember to take the chemical test
                                                                                                                                                                                                           implemented.
                                                    implementation of this NPRM for the                                         under the NPRM would be $17,850 (250
                                                    actual chemical tests is $37,500 (250                                       SMIs × average of 1.5 crewmembers × 1

                                                                      TABLE 5—ANNUAL INDUSTRY COSTS FOR CHEMICAL TESTING AFTER IMPLEMENTATION OF THE NPRM
                                                                                                                                                      Average                                                                                          Total cost of
                                                                                                                                                                              Cost of testing            Hours to take
                                                                                      SMIs per year                                                Crewmembers                                                                Wage Rate                  testing
                                                                                                                                                                               procedures                    test
                                                                                                                                                   tested per SMI                                                                                      procedures

                                                    250 .......................................................................................                       1.5                     $100                      1                $47.60              $55,350



                                                      The current annual burden of                                              new thresholds would be $776,176.                                          the annual current industry cost burden,
                                                    reporting marine casualties and SMIs                                        Therefore, we estimate that the annual                                     the annual industry cost burden after
                                                    under the current dollar amount                                             cost savings or benefit to industry after                                  implementation of the NPRM, and the
                                                    thresholds is $821,634. The annual                                          implementation of this NPRM would be                                       annual cost savings resulting from
                                                    burden of reporting under the proposed                                      $45,458. Table 6 shows a summary of                                        implementation of this NPRM.

                                                           TABLE 6—TOTAL ANNUAL COST SAVINGS TO INDUSTRY BY REQUIREMENT AFTER IMPLEMENTATION OF THE NPRM
                                                                                                                                                                                                                                Annual                     Annual
                                                                                                                                                                                                                             industry cost
                                                                                                                                                                                                         Current annual                                 industry cost
                                                                                                                                                                                                                             burden after
                                                                                                                  Requirement                                                                             industry cost                                 savings after
                                                                                                                                                                                                                             implementa-
                                                                                                                                                                                                             burden                                     implementa-
                                                                                                                                                                                                                                  tion                 tion of NPRM
                                                                                                                                                                                                                               of NPRM

                                                    Written report of marine casualty ................................................................................................                        $155,142               $146,926                 $8,216
                                                    Additional burden for 10% of respondents ..................................................................................                                602,970                570,650                 32,320
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                                                    SMI written report ........................................................................................................................                  3,523                  3,250                    273
                                                    Testing procedures ......................................................................................................................                   59,999                 55,350                  4,649

                                                          Total ......................................................................................................................................         821,634                 776,176                45,458



                                                     17 Docket ID: USCG–2011–0710, https://                                       18 The wage rate for a marine employer to                                chemical test results to the OCMI is taken from
                                                    www.regulations.gov/docket?D=USCG-2011-0710.                                complete the form CG–2692B and to report                                   existing COI number 1625–0001.



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                                                                                      Federal Register / Vol. 82, No. 13 / Monday, January 23, 2017 / Proposed Rules                                                                                                    7761

                                                      The total 10-year undiscounted                                              10-year estimated discounted cost                                             approximately $45,458 using a 7-
                                                    industry cost savings of this NPRM                                            savings to industry to be about $319,281                                      percent discount rate.
                                                    would be $454,584. Table 7 shows the                                          with an annualized cost savings of

                                                           TABLE 7—TOTAL ESTIMATED COST SAVINGS OR INDUSTRY BENEFITS OF THE NPRM OVER A 10-YEAR PERIOD OF
                                                                                                      ANALYSIS
                                                                                                                                         [Discounted Costs at 7 and 3 Percent]

                                                                                                                                                                                                                 Total                            Total, discounted
                                                                                                                          Year                                                                               undiscounted
                                                                                                                                                                                                                 costs                          7%                   3%

                                                    1 ...................................................................................................................................................              $45,458                    $42,484             $44,134
                                                    2 ...................................................................................................................................................               45,458                     39,705              42,849
                                                    3 ...................................................................................................................................................               45,458                     37,108              41,601
                                                    4 ...................................................................................................................................................               45,458                     34,680              40,389
                                                    5 ...................................................................................................................................................               45,458                     32,411              39,213
                                                    6 ...................................................................................................................................................               45,458                     30,291              38,071
                                                    7 ...................................................................................................................................................               45,458                     28,309              36,962
                                                    8 ...................................................................................................................................................               45,458                     26,457              35,885
                                                    9 ...................................................................................................................................................               45,458                     24,726              34,840
                                                    10 .................................................................................................................................................                45,458                     23,109              33,825

                                                           Total ......................................................................................................................................                454,584                    319,281             387,769
                                                           Annualized ............................................................................................................................          ........................               45,458              45,458



                                                    Benefits or Cost Savings to Government                                        estimate the average number of hours                                          marine casualty reports per year. To
                                                       The benefit to the Federal                                                 per investigation across all incident                                         maintain consistency and capture the
                                                    Government is the difference between                                          types. The Sector Staffing Mode assigns                                       changes to this NPRM, the time
                                                    the baseline current cost to the Coast                                        a total hourly effort for the type of                                         estimates and wage rates for processing
                                                    Guard and the cost to the Coast Guard                                         incident (e.g., allision, grounding,                                          the forms are taken from the existing
                                                    after implementation of this NPRM.                                            collision) that is matched against MISLE                                      COI 1625–0001. For each reportable
                                                                                                                                  data, which then provides the resource                                        marine casualty, we estimate that it
                                                    Current Costs to Government                                                   needs for each sector. The Coast Guard                                        takes about 1 hour by a Lieutenant
                                                      We first estimated the current costs to                                     estimates that, across all types of                                           Junior Grade (LTJG; O–2) to process the
                                                    the Coast Guard, which include the cost                                       incidents, these investigations take an                                       forms (CG–2692 series), including
                                                    to investigate a marine casualty and the                                      average of 25 hours for a Lieutenant (LT;                                     auditing at a local field investigation
                                                    cost of processing marine casualty                                            O–3) to complete. There is an average of                                      office and the entry of pertinent
                                                    forms. Because an SMI is a type of                                            5,967 marine casualty cases per year.                                         information into Coast Guard’s MISLE
                                                    marine casualty, the estimate for the                                         The fully loaded wage rate for an O–3                                         system. The fully loaded wage rate for
                                                    cost of the investigation and the                                             is $78 per hour, per Commandant                                               an O–2 is $68 per hour, per
                                                    processing of the casualty forms                                              Instruction 7310.1P. As shown in Table                                        Commandant Instruction 7310.1P. As
                                                    includes those incidents that constitute                                      8, the current annual cost of                                                 shown in Table 8, the current annual
                                                    an SMI. Reportable marine casualties                                          investigations is $11,635,650 (5,967                                          cost for the Coast Guard to process
                                                    are investigated by the Coast Guard.                                          reportable marine casualties × 25                                             reportable marine casualties is $405,756
                                                    Some investigations may be more                                               burden hours × $78 wage rate).                                                (5,967 reportable marine casualties × 1
                                                    complex than others, depending on the                                            The Coast Guard must process the                                           burden hour × $68 wage rate). We
                                                    incident. The Coast Guard reviewed the                                        forms submitted for each reportable                                           estimate that the total current annual
                                                    CG–741 (Coast Guard Office of Shore                                           marine casualty. The Coast Guard                                              cost to the Federal Government would
                                                    Forces) Sector Staffing Model to                                              currently processes an average of 5,967                                       be $12,041,406.

                                                                                                                       TABLE 8—CURRENT ANNUAL GOVERNMENT COSTS
                                                                                                                                                        Reportable                Burden hours
                                                                                       Cost category                                                     marine                                              Annual hours                 Wage rate               Annual cost
                                                                                                                                                                                  per response
                                                                                                                                                        casualties

                                                    Investigation .........................................................................                         5,967                            25                149,175                           $78      $11,635,650
                                                    Processing marine casualty reports ....................................                                         5,967                             1                  5,967                            68          405,756

                                                           Total ..............................................................................      ........................    ........................   ........................   ........................     12,041,406
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                                                      Under this NPRM, increasing the                                             burden hours per response for                                                 an average of 25 hours for an O–3 to
                                                    dollar amount threshold for property                                          investigations and processing marine                                          complete and investigate and about 1
                                                    damage would reduce the number of                                             casualty reports would remain the same,                                       hour for an O–2 to process the forms for
                                                    reportable marine casualties by 5.3                                           but the average number of reportable                                          each reportable marine casualty. As
                                                    percent, resulting in 316 fewer                                               marine casualties would decrease to                                           shown in Table 9, the annual cost for
                                                    reportable marine casualties. The                                             5,651 per year. We estimate that it takes                                     the Coast Guard to complete



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                                                    7762                              Federal Register / Vol. 82, No. 13 / Monday, January 23, 2017 / Proposed Rules

                                                    investigations under the NPRM would                                            after implementation of this NPRM                                              Government would be approximately
                                                    be approximately $11,019,450 (5,651                                            would be approximately $384,268                                                $11,403,718 after implementation of this
                                                    reportable marine casualties × 25 hour                                         (5,651 reportable marine casualties × 1                                        NPRM.
                                                    burden × $78). The annual cost to                                              hour burden × $68). We estimate that
                                                    process reportable marine casualties                                           the total annual cost to the Federal

                                                                                TABLE 9—ESTIMATED ANNUAL GOVERNMENT COSTS AFTER IMPLEMENTATION OF THE NPRM
                                                                                                                                                          Reportable                Burden hours
                                                                                        Cost category                                                      marine                                              Annual hours                 Wage rate               Annual cost
                                                                                                                                                                                    per response
                                                                                                                                                          casualties

                                                    Investigation .........................................................................                           5,651                            25                141,275                           $78      $11,019,450
                                                    Processing marine casualty report ......................................                                          5,651                             1                  5,651                            68          384,268

                                                           Total ..............................................................................        ........................    ........................   ........................   ........................     11,403,718



                                                      The current annual cost to the Coast                                         involve property damage alone would                                            Federal Government to be $6,376,880
                                                    Guard to process marine casualty                                               be $637,688. Though this reduction                                             over the 10-year period of analysis.
                                                    reports is $12,041,406. The annual cost                                        does not result in a need for fewer Coast                                      Table 10 shows the total estimated 10-
                                                    to the Coast Guard after implementation                                        Guard investigators, the existing                                              year discounted cost savings to the
                                                    of this NPRM would be approximately                                            investigators would be able to focus on                                        Federal Government to be $4,478,854,
                                                    $11,403,718. Therefore, the annual                                             higher priority investigations. We                                             with an annualized cost savings of
                                                    Federal Government benefit of reducing                                         estimate the total undiscounted cost                                           $637,688 using a 7-percent discount
                                                    those reportable marine casualties that                                        savings or benefit of this NPRM to the                                         rate.

                                                        TABLE 10—TOTAL ESTIMATED COST SAVINGS OR GOVERNMENT BENEFITS OF THE NPRM OVER A 10-YEAR PERIOD OF
                                                                                                    ANALYSIS
                                                                                                                                           [Discounted costs at 7 and 3 percent]

                                                                                                                                                                                                                                                            Total,
                                                                                                                                                                                                                   Total                                 discounted
                                                                                                                           Year                                                                                undiscounted
                                                                                                                                                                                                                   costs                          7%                   3%

                                                    1 ...................................................................................................................................................              $637,688                   $595,970             $619,115
                                                    2 ...................................................................................................................................................               637,688                    556,981              601,082
                                                    3 ...................................................................................................................................................               637,688                    520,543              583,575
                                                    4 ...................................................................................................................................................               637,688                    486,489              566,578
                                                    5 ...................................................................................................................................................               637,688                    454,663              550,075
                                                    6 ...................................................................................................................................................               637,688                    424,918              534,054
                                                    7 ...................................................................................................................................................               637,688                    397,120              518,499
                                                    8 ...................................................................................................................................................               637,688                    371,140              503,397
                                                    9 ...................................................................................................................................................               637,688                    346,860              488,735
                                                    10 .................................................................................................................................................                637,688                    324,168              474,500

                                                           Total ......................................................................................................................................               6,376,880                  4,478,854             5,439,608
                                                           Annualized ............................................................................................................................            ........................             637,688               637,688



                                                    Total Benefits of the NPRM                                                     We estimate the total 10-year (industry                                        year discounted cost savings of this
                                                      Table 11 presents the total estimated                                        and Federal Government) undiscounted                                           NPRM to be about $4,798,134 and the
                                                    benefits or cost savings of the NPRM                                           cost savings of this NPRM to be about                                          annualized benefit to be about $683,146
                                                    using 7- and 3-percent discount rates.                                         $6,831,464. We estimate the total 10-                                          using a 7-percent discount rate.

                                                                             TABLE 11—TOTAL ESTIMATED BENEFITS OF THE NPRM OVER A 10-YEAR PERIOD OF ANALYSIS
                                                                                                                                         [Discounted benefits at 7 and 3 percent]

                                                                                                                                                                                                                                                            Total,
                                                                                                                                                                                                                   Total                                 discounted
                                                                                                                           Year                                                                                undiscounted
                                                                                                                                                                                                                   costs                          7%                   3%
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                                                    1   ...................................................................................................................................................            $683,146                   $638,455             $663,249
                                                    2   ...................................................................................................................................................             683,146                    596,687              643,931
                                                    3   ...................................................................................................................................................             683,146                    557,651              625,176
                                                    4   ...................................................................................................................................................             683,146                    521,169              606,967
                                                    5   ...................................................................................................................................................             683,146                    487,074              589,288
                                                    6   ...................................................................................................................................................             683,146                    455,209              572,124
                                                    7   ...................................................................................................................................................             683,146                    425,429              555,461
                                                    8   ...................................................................................................................................................             683,146                    397,597              539,282



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                                                                                      Federal Register / Vol. 82, No. 13 / Monday, January 23, 2017 / Proposed Rules                                                                                                    7763

                                                                TABLE 11—TOTAL ESTIMATED BENEFITS OF THE NPRM OVER A 10-YEAR PERIOD OF ANALYSIS—Continued
                                                                                                                                       [Discounted benefits at 7 and 3 percent]

                                                                                                                                                                                                                                                          Total,
                                                                                                                                                                                                                 Total                                 discounted
                                                                                                                          Year                                                                               undiscounted
                                                                                                                                                                                                                 costs                          7%                    3%

                                                    9 ...................................................................................................................................................             683,146                     371,586              523,575
                                                    10 .................................................................................................................................................              683,146                     347,277              508,325

                                                           Total ......................................................................................................................................             6,831,464                  4,798,134             5,827,377
                                                           Annualized ............................................................................................................................          ........................             683,146               683,146



                                                    B. Small Entities                                                             greater than $72,000, or an SMI with                                          multiple marine casualty reports, but for
                                                       Under the Regulatory Flexibility Act,                                      property damage greater than $200,000,                                        this analysis we assume the 316 fewer
                                                    5 U.S.C. 601–612, we have considered                                          as these individuals must currently                                           reports are ascribed to 316 separate
                                                    whether this NPRM would have a                                                report such casualties and perform                                            vessels. We compared this affected
                                                    significant economic impact on a                                              chemical testing, and would continue to                                       population to the total population that
                                                    substantial number of small entities.                                         be required to do so under this NPRM.                                         could have a marine casualty and be
                                                    The term ‘‘small entities’’ comprises                                            This NPRM would not impose any                                             required to prepare and submit marine
                                                    small businesses, not-for-profit                                              direct costs on any specific industry.                                        casualty reporting paperwork. We used
                                                    organizations that are independently                                          The only affected individuals are                                             the MISLE Vessel Population data to
                                                    owned and operated and are not                                                owners or operators of those vessels that                                     estimate the total population that could
                                                    dominant in their fields, and                                                 would be involved in a marine casualty                                        be impacted. We found the current total
                                                    governmental jurisdictions with                                               where the only outcome is property                                            population of vessels that could have a
                                                    populations of less than 50,000.                                              damage of $25,000.01 through $72,000,                                         marine casualty and be required to
                                                       This NPRM reduces the burden on                                            or an SMI where the only outcome is                                           submit paperwork is 209,475.19
                                                    industry by increasing the monetized                                          property damage of $100,000.01 through                                        Therefore, the 316 fewer vessels
                                                    threshold amounts for reporting a                                             $200,000. These entities, which would                                         preparing marine casualty paperwork
                                                    marine casualty incident and an SMI.                                          have incurred costs to report these                                           represents 0.15 percent of the total
                                                    There is no effect on any crewmember,                                         casualties or conduct chemical testing,
                                                                                                                                                                                                                population.
                                                    owner, or operator of a vessel that does                                      would be positively impacted from this
                                                    not have a reportable marine casualty or                                      NPRM because of the increase in the                                             The owners or operators of these 316
                                                    serious marine incident. There is no                                          monetized threshold amounts.                                                  vessels would benefit from a reduction
                                                    effect on any crewmember, owner, or                                              As discussed in Section V of this                                          in time burden associated with a
                                                    operator of a vessel that has a marine                                        NPRM, we expect that an average of                                            crewmember no longer having to
                                                    casualty with property damage less than                                       approximately 316 fewer reports of                                            prepare and submit the required marine
                                                    or equal to $25,000, or an SMI with                                           marine casualties would be required per                                       casualty reporting paperwork. Table 6 in
                                                    damage less than or equal to $100,000,                                        year, with one individual per vessel                                          Section V summarizes the annual cost
                                                    as these individuals currently do not                                         who we assume to be a vessel                                                  savings to industry by requirement.
                                                    have to report the casualty and would                                         crewmember completing each report.                                            Table 13 below shows these annual cost
                                                    not have to do so under this NPRM.                                            We assume the 316 marine casualty                                             savings, as well as the vessel population
                                                    There is no effect on any crewmember,                                         reports occur on 316 separate vessels. It                                     we estimated would benefit from each
                                                    owner, or operator of a vessel that has                                       is possible a vessel could have multiple                                      reduction in paperwork or testing
                                                    a marine casualty with property damage                                        incidents in one year, resulting in                                           requirement.

                                                                                               TABLE 13—MAXIMUM POTENTIAL COST SAVINGS PER VESSEL PER INCIDENT
                                                                                                                                                                                                                                                                   Maximum
                                                                                                                                                                                                             Total annual                  Vessel                   potential
                                                                                                                    Requirement                                                                              cost savings                 population              cost savings
                                                                                                                                                                                                                                                                   per vessel

                                                    Written report of marine casualty ................................................................................................                                  $8,216                           316                 $26
                                                    Additional Burden for 10% of Respondents ................................................................................                                           32,320                            32               1,010
                                                    SMI written report ........................................................................................................................                            273                            21                  13
                                                    Testing Procedures ......................................................................................................................                            4,649                            21                 221

                                                           Totals ....................................................................................................................................                   45,458        ........................            1,270
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                                                       The total cost savings per vessel for                                      the requirements. For example, we                                             have savings due to a reduction in
                                                    the population of 316 vessels benefiting                                      estimate that 32 of the vessels (10                                           marine casualty reports ($26) and an
                                                    from this NPRM will vary depending on                                         percent of population, rounded) would                                         additional savings for the additional

                                                      19 Population data was pulled from MISLE on 9/                              vessels, freight barges, industrial vessels, mobile                           public freights, public tankship/barges, unclassified
                                                    28/2016. The population is for commercial vessels                             offshore drilling units, offshore supply vessels, oil                         public vessels, research vessels, school ships, tank
                                                    that are active and in-service. The population                                recovery, passenger (inspected and uninspected),                              barges, tank ships, and towing vessels.
                                                    includes commercial fishing vessels, fish processing                          passenger barges (inspected and uninspected),



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                                                    7764                    Federal Register / Vol. 82, No. 13 / Monday, January 23, 2017 / Proposed Rules

                                                    burden of reviewing the paperwork                       Coast Guard will not retaliate against                 or whether new laws or regulations
                                                    ($1,010) in any given year. Therefore, a                small entities that question or complain               need to be developed. Receipt of a
                                                    one-time savings could be $1,036 for a                  about this rule or any policy or action                marine casualty report is often the only
                                                    vessel with only these two                              of the Coast Guard.                                    way in which the Coast Guard becomes
                                                    requirements. The minimum savings                         Small businesses may send comments                   aware of a marine casualty. It is
                                                    would be $26 for a vessel that only had                 on the actions of Federal employees                    therefore a necessary first step that
                                                    the requirement of preparing and                        who enforce, or otherwise determine                    provides the Coast Guard with the
                                                    submitting the marine casualty report. If               compliance with, Federal regulations to                opportunity to determine the extent to
                                                    a vessel would have had to complete all                 the Small Business and Agriculture                     which a casualty will be investigated.
                                                    the requirements in Table 13, the                       Regulatory Enforcement Ombudsman                          Proposed Use of Information: In the
                                                    maximum cost savings would be $1,270.                   and the Regional Small Business                        short term, the information provided in
                                                    This maximum cost savings would be                      Regulatory Fairness Boards. The                        the report may also trigger corrective
                                                    for a vessel with a marine casualty                     Ombudsman evaluates these actions                      safety actions addressing immediate
                                                    designated as an SMI that completed                     annually and rates each agency’s                       hazards or defective conditions, further
                                                    additional paperwork and reported the                   responsiveness to small business. If you               investigations of mariner conduct or
                                                    chemical test results to the OCMI.                      wish to comment on actions by                          professional competence, or civil or
                                                    Therefore, the owner or operator of the                 employees of the Coast Guard, call 1–                  criminal enforcement actions by the
                                                    316 vessels impacted by this NPRM                       888–REG–FAIR (1–888–734–3247).                         Coast Guard, other Federal agencies, or
                                                    would have to have maximum annual                                                                              state and local authorities. In the long
                                                                                                            D. Collection of Information
                                                    revenues of $2,600 to $127,000 for this                                                                        term, information contained in the
                                                    NPRM to have a positive impact greater                     This NPRM would call for a collection               report becomes part of the MISLE
                                                    than 1 percent.                                         of information under the Paperwork                     marine casualty database at Coast Guard
                                                      Therefore, pursuant to section 605(b)                 Reduction Act of 1995 (44 U.S.C. 3501–                 Headquarters. The Coast Guard uses this
                                                    of the Regulatory Flexibility Act, 5                    3520). As defined in 5 CFR 1320.3(c),                  information in MISLE to identify safety
                                                    U.S.C. 605(b), the Coast Guard certifies                ‘‘collection of information’’ comprises                problems and long term trends, publish
                                                    that this NPRM would not have a                         reporting, recordkeeping, monitoring,                  casualty summaries and annual
                                                    significant economic impact on a                        posting, labeling, and other similar                   statistics for public use, establish
                                                    substantial number of small entities                    actions. The title and description of the              whether additional safety oversight or
                                                    because the increase in the monetized                   information collection, a description of               regulation is needed, measure the
                                                    property damage threshold amounts                       those who must collect the information,                effectiveness of existing regulatory
                                                    reduces the reporting burden on                         and an estimate of the total annual                    programs, and better focus limited Coast
                                                    crewmembers or vessel owners or                         burden follow.                                         Guard marine safety resources.
                                                    operators who complete the marine                          Under the provisions of the NPRM,                      Description of the Respondents: The
                                                    casualty reports or perform the required                the Coast Guard would collect                          respondents are those owners, agents,
                                                    chemical testing, as described above.                   information from ship personnel who                    masters, operators, or persons in charge
                                                    This NPRM would reduce the hour                         are involved in marine casualties                      that notify the nearest Sector Office,
                                                    burden associated with marine casualty                  resulting in more than $72,000 in                      Marine Inspection Office, or Coast
                                                    reporting and chemical testing and                      property damage, and serious marine                    Guard Group Office whenever a vessel
                                                    would not adversely impact small                        incidents resulting in more than                       is involved in a marine casualty.
                                                    entities as defined by the SBA in 13                    $200,000 in property damage. This                      Specifically, this NPRM would affect
                                                    CFR. 121.201. If you think that your                    proposed requirement would amend an                    those vessel crewmembers and marine
                                                    business, organization, or governmental                 existing collection of information by                  employers who completed the necessary
                                                    jurisdiction qualifies as a small entity                effectively reducing the number of                     forms to report a marine casualty where
                                                    and that this NPRM would have a                         instances requiring information to be                  the only outcome was property damage
                                                    significant economic impact on it,                      collected under OMB control number                     of $25,000.01 through $72,000, or an
                                                    please submit a comment to the Docket                   1625–0001.                                             SMI with property damage of
                                                    Management Facility at the address                         Title: Report of Marine Casualty &                  $100,000.01 through $200,000 (CG–2692
                                                    under the ADDRESSES section of this                     Chemical Testing of Commercial Vessel                  series).
                                                    NPRM. In your comment, explain why                      Personnel.                                                Number of Respondents: We estimate
                                                    you think it qualifies and how and to                      OMB Control Number: 1625–0001.                      the number of respondents would be
                                                    what degree this NPRM would                                Summary of the Collection of                        5,651 per year. This is a decrease of 316
                                                    economically affect it.                                 Information: This NPRM would require                   respondents from an OMB-approved
                                                                                                            responses such as the preparation of                   number of respondents of 5,967 per
                                                    C. Assistance for Small Entities                        written notification in the form of CG–                year. We estimate 250 of these marine
                                                      Under section 213(a) of the Small                     2692 (series), and the processing of                   casualty respondents would fall under
                                                    Business Regulatory Enforcement                         records. We use this information to                    the category of SMI respondents and be
                                                    Fairness Act of 1996, Public Law 104–                   identify pertinent safety lessons and to               required to fill out an additional SMI
                                                    121, we want to assist small entities in                initiate appropriate steps for reducing                written report (CG–2692B). This is a
                                                    understanding this NPRM so that they                    the likelihood of similar accidents in the             decrease of 21 respondents per year
                                                    can better evaluate its effects on them                 future. The collection of information                  from 271 respondents.
                                                    and participate in the rulemaking. If you               would aid the regulated public in                         Frequency of Response: The
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                                                    think that the NPRM would affect your                   assuring safe practices.                               notification response would be required
                                                    small business, organization, or                           Need for Information: These reporting               only if a marine casualty occurs as
                                                    governmental jurisdiction and you have                  requirements permit the Coast Guard to                 defined in 46 CFR 4.03–2 and 46 CFR
                                                    questions concerning its provisions or                  initiate the immediate investigation of                4.05–1.
                                                    options for compliance, please consult                  marine casualties as required by 46                       Burden of Response: For each
                                                    with the Coast Guard personnel listed                   U.S.C. 6301, in order to determine the                 response, we estimate that it takes about
                                                    under the FOR FURTHER INFORMATION                       causes of casualties and whether                       1 hour for a vessel crewmember to
                                                    CONTACT section of this NPRM. The                       existing safety standards are adequate,                complete all of the necessary forms


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                                                                            Federal Register / Vol. 82, No. 13 / Monday, January 23, 2017 / Proposed Rules                                              7765

                                                    (CG–2692 series). In addition, some                     both to OMB and to the Docket                          F. Unfunded Mandates Reform Act
                                                    marine casualty forms may undergo                       Management Facility where indicated                      The Unfunded Mandates Reform Act
                                                    additional processing by the                            under the ADDRESSES section of this                    of 1995, 2 U.S.C. 1531–1538, requires
                                                    respondents. To account for this                        NPRM, by the date under the DATES                      Federal agencies to assess the effects of
                                                    additional time, 10 percent of the forms                section.                                               their discretionary regulatory actions. In
                                                    submitted would have 10 hours of                          You are not required to respond to a                 particular, the Act addresses actions
                                                    additional burden.20 When a marine                      collection of information unless it                    that may result in the expenditure by a
                                                    casualty is designated as an SMI, the                   displays a currently valid control                     State, local, or tribal government, in the
                                                    marine employer must also complete an                   number from OMB. Before the Coast                      aggregate, or by the private sector of
                                                    SMI written report (CG–2692B). We                       Guard could enforce the collection of                  $100,000,000 (adjusted for inflation) or
                                                    estimate that it takes about 0.5 hours for              information requirements in this NPRM,                 more in any one year. Though this
                                                    a respondent to complete an SMI                         OMB would need to approve the Coast                    NPRM would not result in such an
                                                    written report (CG–2692B).                              Guard’s request to collect this                        expenditure, we do discuss the effects of
                                                       Estimate of Total Annual Burden: We                  information.                                           this NPRM elsewhere in this preamble.
                                                    estimate that the number of responses
                                                    would decrease by 316 per year. At 1                    E. Federalism                                          G. Taking of Private Property
                                                    hour per response, the reduced burden                      A rule has implications for federalism                 This NPRM would not cause a taking
                                                    for submitting the responses would be                   under E.O. 13132 (‘‘Federalism’’) if it                of private property or otherwise have
                                                    316 hours. In addition, 10 percent of                   has a substantial direct effect on States,             taking implications under E.O. 12630
                                                    these responses would have required                     on the relationship between the national               (‘‘Governmental Actions and
                                                    additional processing of 10 hours per                   government and the States, or on the                   Interference with Constitutionally
                                                    response, for a reduction of an                         distribution of power and                              Protected Property Rights’’).
                                                    additional 320 burden hours.21 We                       responsibilities among the various
                                                    estimate 21 of the responses would have                 levels of government. We have analyzed                 H. Civil Justice Reform
                                                    been designated as an SMI. At 0.5 hours                 this NPRM under E.O. 13132 and have                      This NPRM meets applicable
                                                    per SMI, the burden would be reduced                    determined that it is consistent with the              standards in sections 3(a) and 3(b)(2) of
                                                    by 11 hours (rounded). Therefore, this                  fundamental federalism principles and                  E.O. 12988, (‘‘Civil Justice Reform’’), to
                                                    NPRM would decrease the total annual                    preemption requirements as described                   minimize litigation, eliminate
                                                    burden by 647 hours.22                                  in E.O.13132. Our analysis follows.                    ambiguity, and reduce burden.
                                                       As required by 44 U.S.C. 3507(d), we                    It is well settled that States may not              I. Protection of Children
                                                    will submit a copy of this NPRM to                      regulate in categories reserved for
                                                    OMB for its review of the collection of                 regulation by the Coast Guard. It is also                 We have analyzed this NPRM under
                                                    information.                                            well settled that Coast Guard regulations              E.O. 13045 (‘‘Protection of Children
                                                       We ask for public comment on the                     promulgated under the authority of 46                  from Environmental Health Risks and
                                                    proposed collection of information to                   U.S.C. 6101 are within a field foreclosed              Safety Risks’’). This NPRM is not an
                                                    help us determine how useful the                        from regulation by the States. See U.S.                economically significant rule and would
                                                    information is, whether it can help us                  v. Locke, 529 U.S. 89, 115–16 (2000)                   not create an environmental risk to
                                                    perform our functions better, whether it                (stating ‘‘Congress intended that the                  health or risk to safety that might
                                                    is readily available elsewhere, how                     Coast Guard regulations be the sole                    disproportionately affect children.
                                                    accurate our estimate of the burden of                  source of a vessel’s [marine casualty]                 J. Indian Tribal Governments
                                                    collection is’ how valid our methods for                reporting obligations.’’).
                                                    determining burden are, how we can                                                                                This NPRM does not have tribal
                                                                                                               This NPRM would change the                          implications under E.O. 13175
                                                    improve the quality, usefulness, and                    property damage threshold amounts for
                                                    clarity of the information, and how we                                                                         (‘‘Consultation and Coordination with
                                                                                                            reporting marine casualties and serious                Indian Tribal Governments’’), because it
                                                    can minimize the burden of collection.                  marine incidents, which is within the
                                                       If you submit comments on the                                                                               would not have a substantial direct
                                                                                                            sole purview of the Coast Guard to                     effect on one or more Indian tribes, on
                                                    collection of information, submit them                  regulate pursuant to 46 U.S.C. 6101 and                the relationship between the Federal
                                                                                                            the principles discussed in Locke. Thus,               Government and Indian tribes, or on the
                                                       20 The Coast Guard estimates that it takes up to
                                                                                                            the proposed regulations are consistent                distribution of power and
                                                    1 hour to complete Form CG–2692 (series).
                                                    However, we received public comments in 2013 on         with the principles of federalism and                  responsibilities between the Federal
                                                    COI number 1625–0001 stating that some                  preemption requirements in E.O. 13132.                 Government and Indian tribes.
                                                    submitters take more time—up to 8 to 12 hours—             While it is settled that States may not
                                                    to complete the form. Docket ID: USCG–2011–0710,                                                               K. Energy Effects
                                                    https://www.regulations.gov/docket?D=USCG-2011-
                                                                                                            regulate in categories in which Congress
                                                    0710. The reason for this difference is that some       intended the Coast Guard to be the sole                   We have analyzed this NPRM under
                                                    entities have the form(s) reviewed by shore-side        source of a vessel’s obligations, we                   E.O. 13211 (‘‘Actions Concerning
                                                    personnel, such as an attorney, prior to submission     recognize the key role that State and
                                                    to the Coast Guard. The practice of having a form
                                                                                                                                                                   Regulations That Significantly Affect
                                                    reviewed by an attorney is not required by Coast
                                                                                                            local governments may have in making                   Energy Supply, Distribution, or Use’’).
                                                    Guard regulation. While we believe that this does       regulatory determinations. Additionally,               We have determined that this NPRM is
                                                    not typically occur, we adjusted our burden             for rules with federalism implications                 not a ‘‘significant energy action’’ under
                                                    estimate to account for the added review.               and preemptive effect, E.O 13132                       that order because it is not a ‘‘significant
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                                                       21 Due to rounding in the estimates, the current
                                                                                                            specifically directs agencies to consult               regulatory action’’ under E.O. 12866 and
                                                    burden for the additional review is 5,970 hours. The
                                                    burden under this NPRM is 5,650 hours, which is         with State and local governments during                is not likely to have a significant
                                                    a reduction of 320 hours.                               the rulemaking process. If you believe                 adverse effect on the supply,
                                                       22 The current annual burden in COI 1625–0001        this NPRM has implications for                         distribution, or use of energy.
                                                    for completing the marine casualty forms, the           federalism under E.O. 13132, please
                                                    additional processing for some respondents, and the
                                                                                                            contact the person listed in the FOR                   L. Technical Standards
                                                    time to complete the SMI forms is 12,073 hours.
                                                    The annual burden under this NPRM is 11,426             FURTHER INFORMATION section of this                       The National Technology Transfer
                                                    hours, a reduction of 647 hours.                        preamble.                                              and Advancement Act, codified as a


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                                                    7766                    Federal Register / Vol. 82, No. 13 / Monday, January 23, 2017 / Proposed Rules

                                                    note to 15 U.S.C. 272, directs agencies                 TITLE 46—SHIPPING                                      DATES:   Comments are due February 22,
                                                    to use voluntary consensus standards in                                                                        2017. Reply Comments are due March
                                                    their regulatory activities unless the                  PART 4—MARINE CASUALTIES AND                           24, 2017.
                                                    agency provides Congress, through                       INVESTIGATIONS                                         ADDRESSES: You may submit comments,
                                                    OMB, with an explanation of why using                   ■ 1. The authority citation for part 4                 identified by CG Docket No. 16–145 and
                                                    these standards would be inconsistent                   continues to read as follows:                          GN Docket No. 15–178, by any of the
                                                    with applicable law or otherwise                                                                               following methods:
                                                    impractical. Voluntary consensus
                                                                                                              Authority: 33 U.S.C. 1231; 43 U.S.C. 1333;              • Electronic Filers: Comments may be
                                                                                                            46 U.S.C. 2103, 2303a, 2306, 6101, 6301, and           filed electronically using the Internet by
                                                    standards are technical standards (e.g.,                6305; 50 U.S.C. 198; Department of
                                                    specifications of materials, performance,               Homeland Security Delegation No. 0170.1.
                                                                                                                                                                   accessing the Commission’s Electronic
                                                    design, or operation; test methods;                     Subpart 4.40 issued under 49 U.S.C.                    Comment Filing System (ECFS), through
                                                    sampling procedures; and related                        1903(a)(1)(E).                                         the Commission’s Web site http://
                                                    management systems practices) that are                                                                         apps.fcc.gov/ecfs/. Filers should follow
                                                                                                            ■ 2. In § 4.03–2, revise paragraph (a) (3)             the instructions provided on the Web
                                                    developed or adopted by voluntary                       to read as follows:                                    site for submitting comments. For ECFS
                                                    consensus standards bodies.
                                                                                                            § 4.03–2    Serious marine incident.                   filers, in completing the transmittal
                                                      This NPRM does not use technical                                                                             screen, filers should include their full
                                                                                                              (a) * * *
                                                    standards. Therefore, we did not                          (3) Damage to property, as defined in                name, U.S. Postal service mailing
                                                    consider the use of voluntary consensus                 § 4.05–1(a)(7) of this part, in excess of              address, and CG Docket No. 16–145 and
                                                    standards.                                              $200,000;                                              GN Docket No. 15–178.
                                                                                                                                                                      • Paper Filers: Parties who choose to
                                                    M. Environment                                          *     *      *     *    *
                                                                                                            ■ 3. In § 4.05–1, revise paragraph (a)(7)
                                                                                                                                                                   file by paper must file an original and
                                                       We have analyzed this NPRM under                     to read as follows:                                    one copy of each filing. If more than one
                                                    Department of Homeland Security                                                                                docket or rulemaking number appears in
                                                    Management Directive 023–01 and                         § 4.05–1    Notice of marine casualty.                 the caption of this proceeding, filers
                                                    Commandant Instruction M16475.1D,                         (a) * * *                                            must submit two additional copies for
                                                                                                              (7) An occurrence causing property-                  each additional docket or rulemaking
                                                    which guide the Coast Guard in
                                                                                                            damage in excess of $72,000, this                      number. Filings can be sent by hand or
                                                    complying with the National
                                                                                                            damage including the cost of labor and                 messenger delivery, by commercial
                                                    Environmental Policy Act of 1969, 42
                                                                                                            material to restore the property to its                overnight courier, or by first-class or
                                                    U.S.C. 4321–4370f, and we have made                                                                            overnight U.S. Postal Service mail. All
                                                                                                            condition before the occurrence, but not
                                                    a preliminary determination that this                   including the cost of salvage, cleaning,               filings must be addressed to the
                                                    action is one of a category of actions that             gas-freeing, drydocking, or demurrage.                 Commission’s Secretary, Office of the
                                                    do not individually or cumulatively                                                                            Secretary, Federal Communications
                                                                                                            *     *    *     *     *
                                                    have a significant effect on the human                                                                         Commission.
                                                    environment. A preliminary                                Dated: January 13, 2017.
                                                                                                                                                                      For detailed instructions for
                                                    environmental analysis checklist                        V.B. Gifford,                                          submitting comments and additional
                                                    supporting this categorical exclusion                   Captain, U.S. Coast Guard, Director of                 information on the rulemaking process,
                                                    determination is available in the docket                Inspections and Compliance.                            see the SUPPLEMENTARY INFORMATION
                                                    where indicated under the ‘‘Public                      [FR Doc. 2017–01323 Filed 1–19–17; 8:45 am]            section of this document.
                                                    Participation and Request for                           BILLING CODE 9110–04–P                                 FOR FURTHER INFORMATION CONTACT:
                                                    Comments’’ section of this preamble.                                                                           Michael Scott, Consumer and
                                                       This NPRM involves regulations                                                                              Governmental Affairs Bureau, at (202)
                                                                                                            FEDERAL COMMUNICATIONS                                 418–1264 or email Michael.Scott@
                                                    concerning marine casualties and
                                                                                                            COMMISSION                                             fcc.gov, or Suzy Rosen Singleton,
                                                    proposes to update the monetary
                                                    threshold amounts for a reportable                                                                             Consumer and Governmental Affairs
                                                                                                            47 CFR Parts 6, 7, 14, 64, and 67                      Bureau at (202) 510–9446 or email
                                                    marine casualty as well as the definition
                                                                                                            [CG Docket No. 16–145 and GN Docket No.                Suzanne.Singleton@fcc.gov.
                                                    of an SMI relative to property damage.
                                                                                                            15–178; FCC 16–169]                                    SUPPLEMENTARY INFORMATION: Pursuant
                                                    Thus, we expect that this NPRM would
                                                    likely be categorically excluded under                                                                         to 47 CFR 1.415, 1.419, interested
                                                                                                            Transition From TTY to Real-Time Text                  parties may file comments and reply
                                                    Section 2.b.2 and figure 2–1, paragraph                 Technology                                             comments on or before the dates
                                                    34(d) of the Instruction. We seek any
                                                                                                            AGENCY:  Federal Communications                        indicated in the DATES section.
                                                    comments or information that may lead
                                                                                                            Commission.                                            Comments may be filed using the
                                                    to the discovery of a significant
                                                                                                            ACTION: Proposed rule.                                 Commission’s ECFS. See Electronic
                                                    environmental impact from this NPRM.                                                                           Filing of Documents in Rulemaking
                                                    List of Subjects in 46 CFR Part 4                       SUMMARY:   In this document, the                       Proceedings, 63 FR 24121 (1998).
                                                                                                            Commission seeks comment on further                       • All hand-delivered or messenger-
                                                      Administrative practice and                           actions the Commission could                           delivered paper filings for the
                                                    procedure, Drug testing, Investigations,                undertake to continue the transition                   Commission’s Secretary must be
mstockstill on DSK3G9T082PROD with PROPOSALS




                                                    Marine safety, National Transportation                  from outdated text telephony (TTY)                     delivered to FCC Headquarters at 445
                                                    Safety Board, Nuclear vessels, Radiation                technology to a reliable and                           12th Street SW., Room TW–A325,
                                                    protection, Reporting and recordkeeping                 interoperable means of providing real-                 Washington, DC 20554. The filing hours
                                                    requirements, Safety, Transportation.                   time text (RTT) communication over                     are 8:00 a.m. to 7:00 p.m. All hand
                                                                                                            Internet Protocol (IP) enabled networks                deliveries must be held together with
                                                      For the reasons discussed in the                      and services for people who are deaf,                  rubber bands or fasteners. Any
                                                    preamble, the Coast Guard proposes to                   hard of hearing, deaf-blind, or have a                 envelopes must be disposed of before
                                                    amend 46 CFR part 4 as follows:                         speech disability.                                     entering the building.


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Document Created: 2017-01-20 01:29:48
Document Modified: 2017-01-20 01:29:48
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionNotice of proposed rulemaking.
DatesComments and related material must be submitted to the online docket via http://www.regulations.gov, or reach the Docket Management Facility, on or before March 24, 2017.
ContactFor information about this document, call or email CDR Randy Waddington, CG-INV, Coast Guard; telephone 202- 372-1029, email [email protected]
FR Citation82 FR 7755 
RIN Number1625-AC33
CFR AssociatedAdministrative Practice and Procedure; Drug Testing; Investigations; Marine Safety; National Transportation Safety Board; Nuclear Vessels; Radiation Protection; Reporting and Recordkeeping Requirements; Safety and Transportation

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