[Federal Register Volume 85, Number 102 (Wednesday, May 27, 2020)]
[Rules and Regulations]
[Pages 31677-31690]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-11366]
[[Page 31677]]
-----------------------------------------------------------------------
DEPARTMENT OF HOMELAND SECURITY
Coast Guard
33 CFR Part 155
[Docket No. USCG-2018-0493]
RIN 1625-AC50
Person in Charge of Fuel Transfers
AGENCY: Coast Guard, DHS.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Coast Guard is amending the requirements regulating
personnel permitted to serve as a person in charge (PIC) of fuel oil
transfers on an inspected vessel by adding the option of using a letter
of designation (LOD) in lieu of a Merchant Mariner Credential (MMC)
with a Tankerman-PIC endorsement. Obtaining an MMC with a Tankerman-PIC
endorsement is now optional for PICs of fuel oil transfers on inspected
vessels. This change is not limited to towing vessels, but one effect
of this rule is that a PIC currently using the LOD option on an
uninspected towing vessel may continue to do so once the vessel
receives its Certificate of Inspection.
DATES: This final rule is effective May 27, 2020. CG-MMC Policy Letter
01-17 is cancelled effective May 27, 2020.
ADDRESSES: To view comments on the notice of proposed rulemaking and
documents mentioned in this preamble as being available in the docket,
go to http://www.regulations.gov, type USCG-2018-0493 in the ``SEARCH''
box and click ``SEARCH.'' Click on Open Docket Folder on the line
associated with this rule.
FOR FURTHER INFORMATION CONTACT: For information about this document
call or email Cathleen Mauro, Office of Merchant Mariner Credentialing
(CG-MMC-1), Coast Guard; telephone 202-372-1449, email
[email protected].
SUPPLEMENTARY INFORMATION:
Table of Contents for Preamble
I. Abbreviations
II. Basis and Purpose, and Regulatory History
III. Discussion of Comments
A. Decades-Long Use of LODs which focus on fuel oil transfers
B. Safety and environmental concerns and restricted-endorsement
policy letter
C. Miscellaneous
D. No changes to regulatory text
IV. Discussion of the Rule
A. Amendments to Sec. 155.710(e)
B. Amendments to Sec. 155.715
C. This rule only addresses fuel oil transfers, not LNG fuel
transfers
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
G. Taking of Private Property
H. Civil Justice Reform
I. Protection of Children
J. Indian Tribal Governments
K. Energy Effects
L. Technical Standards
M. Environment
I. Abbreviations
CFR Code of Federal Regulations
COI Certificate of Inspection
DHS Department of Homeland Security
FR Federal Register
LOD Letter of designation
MERPAC Merchant Marine Personnel Advisory Committee
MISLE Marine Information for Safety and Law Enforcement
MMC Merchant Mariner Credential
MPH Miles per hour
NMC National Maritime Center
NPRM Notice of proposed rulemaking
OMB Office of Management and Budget
PIC Person in charge
Sec. Section
STCW International Convention of Standards of Training Certification
and Watchkeeping for Seafarers
TSAC Towing Safety Advisory Committee
TWIC Transportation Worker Identification Card
U.S.C. United States Code
VSO Vessel Security Officer
II. Basis and Purpose, and Regulatory History
As we stated in the notice of proposed rulemaking (NPRM) published
on August 14, 2019 (84 FR 40329), the Coast Guard established the
option of using a letter of designation (LOD) for uninspected vessels
in 1998.\1\ The LOD designates the holder as a person in charge (PIC)
of the transfer of fuel oil and states that the holder has received
sufficient formal instruction from the operator or agent of the vessel
to ensure his or her ability to safely and adequately carry out the
duties and responsibilities of the PIC.\2\ When establishing the LOD
option, we stated that the formal instruction required by this option
should ensure that personnel acting as PICs of fuel oil transfers have
the ability to safely and adequately carry out their duties and
responsibilities while minimizing the risks of pollution from fuel oil
spills.\3\
---------------------------------------------------------------------------
\1\ See Qualifications for Tankerman and for Persons in Charge
of Transfers of Dangerous Liquids and Liquefied Gases final rule (63
FR 35822, July 1, 1998).
\2\ 33 CFR 155.715.
\3\ 63 FR 35822, 35825, July 1, 1998.
---------------------------------------------------------------------------
Thousands of towing vessels are currently transitioning from being
uninspected vessels to becoming inspected vessels.\4\ While this rule
is not limited to towing vessels, it will allow a PIC currently using
the LOD option on one of those uninspected towing vessels to continue
to use that option to perform the same fuel oil transfers once the
vessel becomes an inspected vessel. This transition happens when the
vessel is issued a certificate of inspection (COI).
---------------------------------------------------------------------------
\4\ See 46 CFR 136.202, and discussion in this document's
Regulatory Analysis regarding the number of towing vessels making
this transition.
---------------------------------------------------------------------------
This rule only addresses transfers of fuel oil. The PIC
requirements in 33 CFR 155.710(a), (b) and (f) for vessels transferring
cargo remain unchanged.
Executive Orders 12866 (Regulatory Planning and Review) and 13777
(Enforcing the Regulatory Reform Agenda) direct us to eliminate
unnecessary regulatory burdens.\5\ We believe that the LOD option
provides a level of safety and protection for fuel oil transfers
equivalent to the Tankerman-PIC option, while eliminating the burden of
obtaining and maintaining a Merchant Mariner Credential (MMC). By
adding this LOD alternative, individuals on inspected vessels now have
an option that was previously only available to individuals on
uninspected vessels.
---------------------------------------------------------------------------
\5\ See Section 1(b)(11) and Section 1, respectively.
---------------------------------------------------------------------------
As discussed in the NPRM,\6\ the Coast Guard tasked the Merchant
Marine Personnel Advisory Committee (MERPAC) and the Towing Safety
Advisory Committee (TSAC) to review existing PIC requirements for
vessel fuel transfers and to make recommendations for amendments. The
Coast Guard reviewed the recommendations from both TSAC and MERPAC and
agreed with MERPAC's broader recommendation that all inspected vessels
should have the option of using an LOD to satisfy the requirement for
designating the PIC of fuel transfers. This final rule is consistent
with MERPAC's recommendation and provides the relief sought for towing
vessels in the TSAC recommendation.
---------------------------------------------------------------------------
\6\ 84 FR 40329, 40332, August 14, 2019.
---------------------------------------------------------------------------
In March 2017, the Coast Guard issued CG-MMC Policy Letter No. 01-
17 titled, ``Guidelines for Issuing Endorsements for Tankerman-PIC
Restricted to Fuel Transfers on Towing Vessels.'' \7\ As we stated in
the NPRM,\8\ this policy eased some of the requirements for obtaining
an MMC
[[Page 31678]]
with a Tankerman PIC endorsement, but it did not completely relieve the
burden of obtaining the credential or maintaining the endorsement
through the renewal process every 5 years and it only addresses
inspected towing vessels--not other inspected vessels.
---------------------------------------------------------------------------
\7\ U.S. Coast Guard, Guidelines for Issuing Endorsements for
Tankermen PIC Restricted to Fuel Transfers on Towing Vessels (Mar.
10, 2017), https://www.dco.uscg.mil/Portals/9/NMC/pdfs/announcements/2017/cg-mmc_policy_letter_01-17_final_3_9_17-date.pdf.
\8\ 84 FR 40329, 40332, August 14, 2019.
---------------------------------------------------------------------------
Authority under Subtitle II and Chapter 700 of Title 46 United
States Code, specifically 46 U.S.C. 3306 and 70034, has been delegated
to the Coast Guard and allows us to establish and amend regulations for
a person in charge (PIC) of fuel oil transfers. This rule is authorized
by Subtitle II provisions to regulate lightering (46 U.S.C. 3715) and
personnel qualifications for all inspected vessels, including nontank
vessels (46 U.S.C. 3703), and by 46 U.S.C. chapter 700 provisions
regarding waterfront safety, including protection of navigable waters
and the resources therein (46 U.S.C. 70011).
We are making this rule effective upon publication because it
relieves a restriction and 5 U.S.C. 553(d)(1) does not require us to
wait 30 days before we make such rules effective. This rule relieves a
restriction by allowing an LOD to be used to designate a PIC on an
inspected vessel. Also, we find good cause under 5 U.S.C. 553(d)(3) for
making this rule effective upon publication because it would be
contrary to the public interest not to do so. Currently, under
provisions in 46 CFR 136.202, thousands of uninspected towing vessels
are becoming inspected towing vessels. Making this rule effective May
27, 2020 will enable more persons with an LOD currently serving as a
PIC on an uninspected towing vessel to continue to do so without
obtaining an MMC endorsement once that same vessel becomes an inspected
vessel.
III. Discussion of Comments
The Coast Guard received 10 written submissions during the 62-day
comment period that ended October 15, 2019.
A common theme for those who supported the proposed rule, was that
the vessel-specific training for an LOD is more practicable and
appropriate for fuel oil transfers compared to the broader, cargo-
transfer focused training for a Tankerman-PIC endorsement. Those who
opposed the proposed rule generally viewed it as a change that would
lower safety and environmental standards.
The Coast Guard summarizes and addresses the comments below.
A. Decades-Long Use of LODs Which Focus on Fuel Oil Transfers
1. LODs have been used safely for more than 2 decades: One
commenter stated that the LOD option has been safely used on
uninspected vessels for more than 2 decades and is a highly regulated
process that ensures mariners serving as a PIC of fuel oil transfers
are properly trained. The commenter noted that when vessel operators
issue an LOD, they certify that the holder has received sufficient
formal training and instruction to safely and adequately carry out the
duties and responsibilities of transferring fuel oil as required by
regulation. The commenter pointed out that ``33 CFR 156.120 details 28
individual elements in the fuel transfer process that a PIC must
understand and conduct, and that 33 CFR 156.150 requires documentation
of each fuel transfer, including a signed declaration from the PIC
certifying that each of those requirements was completed.'' They
assessed the LOD option as providing an equivalent level of safety and
environmental stewardship when compared to MMCs with a Restricted
Tankerman-PIC endorsement.
Response: We concur that LOD requirements are detailed, and that
the operator or agent of the vessel must certify that the holder has
received sufficient formal instruction to safely and adequately carry
out these detailed requirements. While this formal instruction is
received from the operator or agent of the vessel(s) identified in the
LOD, the detailed requirements in 33 CFR 156.120 and 156.150 are
standardized for any PIC engaged in fuel oil transfers.
2. LODs allow for vessel-specific training focused on fuel oil
transfers: One commenter noted that the LOD option creates important
regulatory relief, allows for increased flexibility, and broadens the
scope of available mariners to serve as a PIC for fuel oil transfers on
inspected vessels. The commenter stated that it allows for a focus on
vessel-specific training regarding fuel oil transfers, which can vary
widely across the diverse nationwide marine fleet, and views this
specialization in training as a positive addition, going above and
beyond the requirements of a more general endorsement. Another
commenter noted that a feature of the LOD is that it keeps scrutiny of
training and oversight at the vessel level and that the commenter's
company issues vessel specific LODs.
Response: The Coast Guard concurs that the LOD option tends to
focus training on fuel oil transfers for a specific vessel or a fleet
of vessels that the LOD holder will be authorized to serve on as a PIC.
The requirements in Sec. 155.715 specify that formal instruction is
provided by the operator or agent of the vessel or vessels identified
in the LOD.
B. Safety and Environmental Concerns and Restricted-Endorsement Policy
Letter
1. Some warn that restricted endorsement may increase risk level
while some want endorsement continued: One commenter noted the cost
burden \9\ to unlicensed deckhands of obtaining an endorsement for a
Tankerman-PIC Restricted to Fuel Transfers on Towing Vessels created by
Policy Letter 01-17, but warned that this restricted endorsement may
increase risk levels. This commenter wrote that Policy Letter 01-17
waives training requirements (for approved firefighting and tankship
course), while allowing uncredentialed deckhands with LODs \10\ to
become credentialed mariners who may demand higher pay rates. The
commenter observed that once a person uses a vessel-specific LOD to
qualify for an MMC with an endorsement for Tankerman-PIC Restricted to
Fuel Transfers on Towing Vessels, as allowed by Policy Letter 01-17,
they are free to work as a PIC on other towing vessels even if that
vessel is quite different from the vessel for which they held an LOD.
---------------------------------------------------------------------------
\9\ The evaluation ($95) and issuance ($45) fees are described
in 46 CFR 10.219, in the Table 1 to Sec. [thinsp]10.219(a) row for
MMC with rating endorsement: Original endorsement for qualified
rating.
\10\ The commenter is correct that the policy letter does not
require applicants to have previously held mariner credentials.
Applicants must be at least 18 years old and hold a valid
Transportation Worker Identification Card (TWIC) or have enrolled
for one. An alternative to holding an LOD, would be to ``provide
evidence of participation, under the supervision of someone
designated as PIC of a fuel transfer, in at least five fuel
transfers on Towing Vessels during the preceding 5 years.''
---------------------------------------------------------------------------
Another commenter requested that we retain the option for mariners
to obtain and renew endorsements as Tankerman-PIC Restricted to Fuel
Transfers on Towing Vessels. They viewed this option as providing
equivalent levels of safety and environmental stewardship as the LOD
option and stated that keeping the restricted endorsement option would
allow maximum flexibility for mariners and their employers. They also
noted that mariners who have obtained an MMC with the restricted
Tankerman-PIC endorsement may wish to maintain that credential for
professional development reasons.
Response: With respect to concerns about Policy Letter 01-17, this
rule
[[Page 31679]]
provides more complete relief from the existing Sec. 155.710(e)
requirement than Policy Letter 01-17 does, and it does so without
waiving any training requirements for obtaining an MMC PIC endorsement.
With this rule's addition of an LOD option, there are now two avenues
to qualify as a PIC for the transfer of fuel oil: (1) Hold a valid MMC
with either an officer or Tankerman-PIC endorsement; or (2) use the new
option for inspected vessels of designating a PIC with an LOD as
described in 33 CFR 155.715. Therefore, we are cancelling Policy Letter
01-17 effective May 27, 2020. The Coast Guard supports mariners
pursuing professional development but, for the reason stated above, we
are cancelling Policy Letter 01-17 upon publication of this rule.
2. Perceived decline in both safety and protection of the
environment: One commenter opposed the proposed rule and stated that he
sees too many accidents and spills from untrained crews that go
unreported. The commenter stated that as a crew member he has seen a
serious decline in safety and an increase in small accidents in the
last few years, including 14-hour-work days in violation of STCW \11\
watch hours. The commenter said that companies offer low wages and are
not willing to pay a meaningful wage to trained and competent workers.
The commenter did not directly attribute the reduced level of safety to
LODs.
---------------------------------------------------------------------------
\11\ STCW stands for the International Convention of Standards
of Training Certification and Watchkeeping for Seafarers.
---------------------------------------------------------------------------
Another commenter wrote that easing PIC requirements was ``caving
to pressure from industry'' and unfair to those who have already
completed approved training to obtain a Tankerman-PIC endorsement. The
commenter stated there is no substitute for loading-and-discharging
training service requirements and recommended a PIC-Fueling endorsement
for those who bunker and transfer aboard smaller, previously
uninspected vessels. Additionally, the commenter stated that there has
been a rise in accidents in the inland industry in the last few years.
In suggesting a caving-to-industry trend, the commenter referenced
recently issued gap-closure \12\ training requirements and indicated
they disadvantaged U.S. mariners compared to foreign mariners. The
commenter referenced the Deepwater Horizon accident as an example of
why cutting costs to industry by lowering standards that provided
safety to mariners and protection for the environment is dangerous.
---------------------------------------------------------------------------
\12\ Gap-closing training refers to requirements in 46 CFR
11.305 to 11.321 and 11.325 to 11.335, included in a 2013 final rule
entitled ``Implementation of the Amendments to the International
Convention on Standards of Training, Certification and Watchkeeping
for Seafarers, 1978 [STCW Convention], and Changes to National
Endorsements'' (78 FR 77795, 77805, December 24, 2013). These
training requirements were implemented to ensure mariners with
existing STCW endorsements met the requirements of the 2010
amendments to the STCW Convention. Mariners had to complete this
training before January 1, 2017, to maintain the validity of their
STCW endorsements.
---------------------------------------------------------------------------
Response: The requirements for an MMC endorsement and a LOD have
remained unchanged for many years, so the requisite training has not
changed. We see no correlation, therefore, between the commenters'
reference to either an increase in accidents in recent years or a
reduced level of safety, and the requirements regulating personnel
permitted to serve as a PIC of fuel oil transfers on an inspected
vessel. To the extent the commenter may be concerned about the
endorsement for a Tankerman-PIC Restricted to Fuel Transfers on Towing
Vessels introduced in 2017, effective May 27, 2020 we are cancelling
the CG-MMC Policy Letter 01-17 enabling that restricted endorsement.
Personnel designated as PICs through the use of an LOD are required
to receive formal instruction from the operator or agent of the vessel,
sufficient to ensure his or her ability to safely and adequately carry
out the duties and responsibilities of the PIC.\13\ These duties
include understanding discharge (spill) reporting procedures.\14\ Any
individual who witnesses a spill or other reportable marine casualty
should report that casualty to the Coast Guard. Enforcement of casualty
reporting and applicable STCW requirements will continue independent of
this regulatory initiative. The influence of market forces on how much
is paid to those with a Tankerman-PIC endorsement or that have received
sufficient formal instruction to obtain an LOD is beyond the scope of
this rulemaking.
---------------------------------------------------------------------------
\13\ 33 CFR 155.715.
\14\ 33 CFR 156.120(w)(10).
---------------------------------------------------------------------------
As for the second commenter, this rule, which is supported by
recommendations of the MERPAC and the TSAC, does not change the
requirements for having a designated PIC as described in 33 CFR
155.700, the process for obtaining a Tankerman-PIC endorsement in 46
CFR part 13, subpart B, or the requirements for an LOD in 33 CFR
155.715. To qualify for a Tankerman-PIC endorsement, applicants must
present evidence of supervised participation in at least five cargo
loadings and five cargo discharges. While experience with cargo
transfers is not required for an LOD, formal instruction is required.
The holder of an LOD is required to receive sufficient formal
instruction from the operator or agent of the vessel to ensure his or
her ability to safely and adequately carry out the duties and
responsibilities of the PIC described in 33 CFR 156.120 (requirements
for transfer) and 156.150 (Declaration of inspection).
The recommendation for a PIC-Fueling endorsement for those who
bunker and transfer aboard smaller, previously uninspected vessels
warrants future consideration, but that recommendation is beyond the
scope of this rulemaking.
C. Miscellaneous
1. Make changes proposed by NPRM effective faster by issuing a
policy letter: One commenter, who referenced a method for training new
deckhands so they can qualify for their vessel-specific LOD,
recommended that we implement the LOD option via a policy letter
pending the effective date of this rule.
Response: We appreciate the concern and another commenter's concern
about making the LOD option available as soon as possible, and we are
making this rule effective upon publication. After we publish a rule,
normally there is a 30-day waiting period before we can make it
effective, but under 5 U.S.C. 553(d)(1) this waiting period does not
apply to rules that relieve a restriction. Starting May 27, 2020, this
rule will begin relieving a restriction by allowing an LOD to be used
to designate a PIC on an inspected vessel.
2. Let Tankerman-Engineer endorsement serve to satisfy Sec.
155.710(e) requirements: One commenter noted that the commenter's
employer requires all officers, even engineers with no involvement in
cargo transfers (on a tankship), to maintain a Tankerman-PIC
endorsement. Even though 33 CFR 155.710(e) permits engineering officers
to serve as PICs, the commenter suggests that we specifically add the
Tankerman-Engineer endorsement as an option in addition to the
Tankerman-PIC endorsement to satisfy the requirement in Sec.
155.710(e). Observing that not all vessels subject to PIC requirements
are oil tankers--making it difficult or impossible to satisfy tankship
or self-propelled-tank-vessel-loading-and-discharging service
requirements to obtain a Tankerman-PIC endorsement--the commenter wants
the Coast Guard to ensure that the classroom requirements for the
Tankerman-Engineer endorsement focus on fuel and bunker transfers.
Finally, the commenter stated that if a PIC on a
[[Page 31680]]
ship is required to have a Tankerman endorsement (PIC or Engineer) to
maintain responsibility for the transfer, the person working aboard the
transferring barge should also be endorsed and educated to the same
level of care.
Response: The suggestion to modify the training requirements for
the Tankerman-Engineer endorsement to focus on fuel and bunker
transfers--and to add the Tankerman-Engineer as a means to satisfy
Sec. 155.710(e)--warrants future consideration but is beyond the scope
of this rulemaking. The LOD option that this rule makes available,
however, enables those who are not able to satisfy Tankerman-PIC
endorsement service requirements to obtain formal instructions on fuel
oil transfers so they may serve as a PIC on the vessel(s) identified in
the LOD.
Regarding transfers from bunker barges, they are considered cargo
transfers and the PIC on a tank barge required to be inspected under 46
U.S.C. 3703, would need to meet requirements in 33 CFR 155.710(b).
Those requirements include the option of having a Tankerman-PIC (Barge)
endorsement in order to serve as the PIC of a cargo transfer. The
requirements for a Tankerman-PIC (Barge) endorsement include experience
on tank vessels.
3. Request to extend use of LODs to drilling fluids and other
offshore-supply-vessel cargos: Two commenters requested that the Coast
Guard extend the use of the LOD for fuel transfers to transfers of
drilling fluids and other cargos for Offshore Supply Vessels (OSVs).
They stated that offshore oil and gas industry is serviced by a fleet
of OSVs that not only routinely load and offload excess fuel, but also
supply drilling fluids. They viewed the cargo systems of OSVs as no
more complicated or dangerous than its fuel oil systems and stated that
harmful nature of drilling fluids did not measure up to the harmful
nature of fuel oil.
Response: Extending the use of an LOD to non-fuel-oil transfers is
beyond the scope of this rulemaking. The NPRM was clear regarding the
scope of this rulemaking. We are amending 33 CFR 155.710(e), which only
applies to fuel oil transfers. Drilling fluids are categorized as
cargo, and therefore, would not qualify as a fuel oil transfer.
Moreover, drilling fluids \15\ may contain oil and under 46 CFR
125.110(e) we treat such fluids the same as oil cargo.
---------------------------------------------------------------------------
\15\ As defined in 40 CFR 435.11(l), drilling fluid is the
circulating fluid used in the rotary drilling of wells.
---------------------------------------------------------------------------
D. No Changes to Regulatory Text
We did not make any changes from the proposed rule based on the
comments we received on the NPRM. The regulatory text of the final rule
is the same as what we proposed in the NPRM.
IV. Discussion of the Rule
This final rule amends 33 CFR 155.710(e), which sets forth the
provisions for the qualifications of the PIC of any fuel oil transfer
requiring a Declaration of Inspection. This rule does not change the
existing requirements for the PIC on uninspected vessels, and the
requirements for vessels transferring cargo also remains unchanged.
This rule provides inspected vessels two options for meeting
requirements to serve as the PIC of a fuel oil transfer. Vessel
operators may comply with the current inspected vessel requirement of
having a PIC with a valid MMC with either an officer or Tankerman-PIC
endorsement or use the new option for inspected vessels of designating
a PIC with an LOD as described in 33 CFR 155.715.
A. Amendments to Sec. 155.710(e)
This rule revises the text of 33 CFR 155.710(e)(1) so that
requirements for inspected and uninspected vessels are combined in that
paragraph. Paragraph (e)(1)(i) presents the MMC endorsement options and
paragraph (e)(1)(ii) presents the LOD option. This rule also
redesignates the remaining paragraphs in that section and amends a
reference in the redesignated paragraph regarding tank barges to
reflect our removal of paragraph (e)(2).
With respect to MMCs, this rule removes obsolete terminology such
as merchant mariner ``licenses'' and ``Merchant Mariner Documents.''
The Coast Guard ceased issuing those types of documents in 2009 when we
transitioned to the streamlined MMC. Also, the rule clarifies the first
sentence of Sec. 155.710(e) by changing ``shall verify'' to ``must
verify.''
B. Amendments to Sec. 155.715
In Sec. 155.715, this rule changes the reference to Sec.
155.710(e)(2) so that it refers to Sec. 155.710(e)(1) instead. This
change reflects our amendments to Sec. 155.710(e). Also, to remove a
long-standing conflict of referring to the same letter as both ``letter
of instruction'' and ``letter of designation,'' this rule amends the
reference to a letter of instruction by simply referring to it as ``the
letter referenced in Sec. 155.710(e)(1).''
This letter has become known by the title we gave it in the Sec.
155.715 heading, ``letter of designation.'' Section 155.715 requires
the letter to designate the holder as a PIC of the transfer of fuel oil
and to state that the holder has received sufficient formal instruction
from the operator or agent of the vessel to ensure his or her ability
to safely and adequately carry out the duties and responsibilities of
the PIC described in 33 CFR 156.120 and 156.150. Changing our reference
to it as ``the letter referenced in Sec. 155.710(e)(1)'' does not
change any of those requirements, but it does make it clear that
``letter of designation'' is the correct way to refer to the letter
referenced in Sec. 155.710(e) that must satisfy the requirements of
Sec. 155.715.
C. This Rule Only Addresses Fuel Oil Transfers, Not LNG Fuel Transfers
This rule does not apply to liquefied natural gas (LNG) fuel
transfers. Both Sec. Sec. 155.710(e) and 155.715 apply solely to the
transfer of ``fuel oil.'' Fuel oil means any oil used to fuel the
propulsion and auxiliary machinery of the ship carrying the fuel.\16\
---------------------------------------------------------------------------
\16\ As provided in Sec. 155.110, this 33 CFR 151.05 definition
of ``fuel oil'' applies to Sec. Sec. 155.710 and 155.715.
---------------------------------------------------------------------------
V. Regulatory Analyses
We developed this rule after considering numerous statutes and
Executive orders related to rulemaking. The regulatory text of this
rule is unchanged, and the analysis for it is not substantively changed
from what we proposed in the NPRM. We updated three figures used in the
analysis to reflect changes realized after we published the NPRM. We
update the number of towing vessel inspections completed to reflect
inspections conducted from July through October 2019. We updated the
total population of towing vessels to reflect knowledge gained from
recent inspections. We also revised the assumed turnover rate of 30
percent following additional analysis of data we obtained from the
National Maritime Center.
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,
[[Page 31681]]
and of promoting flexibility. Executive Order 13771 (Reducing
Regulation and Controlling Regulatory Costs) directs agencies to reduce
regulation and control regulatory costs and provides that ``for every
one new regulation issued, at least two prior regulations be identified
for elimination, and that the cost of planned regulations be prudently
managed and controlled through a budgeting process.''
The Office of Management and Budget (OMB) has not designated this
rule a significant regulatory action under section 3(f) of Executive
Order 12866. Accordingly, OMB has not reviewed it. DHS considers this
rule to be an Executive Order 13771 deregulatory action. See the OMB
Memorandum titled ``Guidance Implementing Executive Order 13771, titled
`Reducing Regulation and Controlling Regulatory Costs''' (April 5,
2017). Details on the estimated cost savings of this rule can be found
in the rule's regulatory analysis (RA) that follows.
We received no public comments on the estimated unit costs of the
proposed rule, so we retained these estimates for this analysis;
however, because our estimated population changed due to a revised
turnover rate, the total estimated cost savings changed from the NPRM.
We received additional data to update estimates in our assessment of
the proposed rule. Updating estimates with new data does not alter the
methodology demonstrated in the preliminary regulatory analysis;
therefore, we adopt the methodology of the preliminary analysis for the
proposed rule as final.
This final rule is necessary to provide a less burdensome method of
designating who may serve as the PIC of a fuel oil transfer on an
inspected vessel by extending the LOD option to inspected vessels. The
individuals expected to take advantage of this deregulatory action are
the same individuals currently qualified as a PIC with an LOD on an
uninspected towing vessel once the vessel receives its Certificate of
Inspection. We estimate the total cost savings of the final rule over a
10-year period of analysis to be about $266,767,725, discounted at 7
percent. We estimate the annualized cost savings to be about
$37,981,722, discounted at 7 percent.
Table 1--Summary of Impacts of the Final Rule
------------------------------------------------------------------------
Category Summary
------------------------------------------------------------------------
Applicability................ Extend the LOD option described in 33 CFR
155.710(e)(2) to inspected vessels for
fuel oil transfers. This will allow PIC
designation to be fulfilled by an LOD
rather than an MMC with an officer or
Tankerman-PIC endorsement.
Affected Population.......... The 11,540 individuals on 5,770 vessels
that transfer fuel oil and that have a
capacity to carry at least 250 barrels
or that receive fuel oil from a vessel
with a capacity to carry at least 250
barrels.
Cost Savings (2018 $ 10-year period of analysis: $266,767,725.
Discounted at 7%). Annualized: $37,981,722.
Cost Savings (2016 $ Perpetual period of analysis:
Discounted at 7% and $26,323,316.
discounted back to 2016).
------------------------------------------------------------------------
Affected Population
(1) Vessel Population.
Section 155.700 of 33 CFR requires each operator or agent of a
vessel with a capacity of 250 barrels or more that engages in the
transfer of fuel oil on the navigable waters or contiguous zone of the
United States to designate the PIC of each transfer of fuel oil to or
from the vessel. The affected population for this deregulatory action
is a subset of all inspected vessels subject to the PIC requirements in
33 CFR 155.710(e)(1). The recent change from uninspected to inspected
status makes subchapter M vessels uniquely impacted by the MMC
requirement. The Coast Guard is not aware of other inspected vessel
populations that would likely make use of this rule.
The total population is subject to change while inspections are
ongoing. In the time since the analysis described in the NPRM, another
194 COIs were issued to towing vessels.\17\ Table 2 shows the effect of
the increased number of COIs. Through information gathered during
ongoing inspections, TVNCOE revised the total population of inspected
towing vessels expected to qualify under subchapter M by the end of the
inspection period, adding 30 vessels and increasing the expected total
from 5,740 to 5,770 vessels.\18\
---------------------------------------------------------------------------
\17\ Monthly numbers of inspections completed from July 2018
through October 2019 provided on October 21, 2019 by the National
Towing Vessel Coordinator of the Office of Commercial Vessel
Compliance.
\18\ The Towing Vessel National Center of Expertise (TVNCOE)
estimated the increase of 30 vessels after discovering and
correcting pervasive errors in which vessels are classified as
Subchapter M vessels in the Marine Information for Safety and Law
Enforcement (MISLE) database.
Table 2--Projection of Subchapter M Vessels Obtaining a COI
------------------------------------------------------------------------
New Total subchapter M
Year COIs inspected vessels
------------------------------------------------------------------------
2018..................................... 253 253
2019..................................... 1,177 1,430
2020..................................... 2,031 3,461
2021..................................... 1,236 4,697
2022..................................... 1,073 5,770
------------------------------------------------------------------------
(2) Individual Population.
We assume each vessel from the affected population to have at least
two individuals able to serve as a PIC to ensure that at least one of
them is available for duty at any point in a 24-hour period.\19\ From
the population of 5,770 vessels, each carrying two PICs, we obtain an
affected population of individuals equal to 11,540. The population of
5,770 becomes constant in Year 3 of the analysis period or in 2022 and
thereafter, once all affected vessels are inspected.
---------------------------------------------------------------------------
\19\ Information collection request (ICR), ``Waste Management
Plans, Refuse Discharge Logs, and Letters of Instruction for Certain
Persons-in-Charge (PIC) and Great Lakes Dry Cargo Residue
Recordkeeping'' OMB control number 1625-0072.
---------------------------------------------------------------------------
In the proposed rule, we assumed an individual turnover rate of 30
percent from an approved collection of information.\20\ In the interim,
we were able to obtain more recent data that indicates a current
turnover rate of 32.55 percent. For this analysis, we used data from
the National Maritime Center (NMC) for individuals obtaining MMCs with
issue dates from April 2009 to March 2020 and expiration dates from
August 2009 to March 2025 \21\ to update
[[Page 31682]]
the turnover rate. In the data from NMC, every MMC issued and every
mariner has a unique identifying number such that sorting by mariner
reference number shows all the MMCs for that mariner.
---------------------------------------------------------------------------
\20\ See page 84 FR 40335 of NPRM and page 4 of supporting
statement for ICR 1625-0072.
\21\ As per 46 CFR 10.205. An MMC is valid for a period of 5
years. The issue date of a renewal can be postdated by up to 8
months from the time of application to allow for maximum time on the
renewed MMC. A future issue date (for example, March 2020) indicates
that a mariner renewed an MMC before it expired so the date was set
for a period not exceeding 8 months closest to the expiration of the
current MMC to maximize the validity period.
---------------------------------------------------------------------------
After cleaning the data for duplicates and printing errors (where
the NMC issued a second credential with a new ID number within the same
validity period), we applied a formula that marks each MMC as either
renewed, not renewed, or ineligible to renew. We marked any MMC with an
expiration date after July 18, 2019 (when the data was downloaded) as
ineligible to renew. Otherwise, we assumed an MMC is renewed if the
issue date is within 2,190 days of the previous MMC's issue date.\22\
The period of 2,190 days is equivalent to 6 years (6 years x 365 days
in a standard calendar year), which represents the validity period of 5
years plus a year-long grace period wherein a mariner cannot use the
expiring MMC but could renew that MMC without having to retake the
required formal training from the beginning. For example, an MMC issued
in April 2009 would be eligible for renewal in March 2014. If there is
no new MMC issued by March 2015, we assume that the mariner left the
marine industry or otherwise no longer requires an MMC (turned over) in
2015. We then tabulate how many MMCs in each calendar year were
eligible to renew, how many of those eligible were renewed, and how
many of those eligible were not renewed to produce a turnover
percentage as shown below in Table 3.
---------------------------------------------------------------------------
\22\ {If(prior issue date <= [issues date + (365 x
6)],``Renewed'', ``Not''),``Not''{time}
Table 3--Estimation of Turnover Rate
----------------------------------------------------------------------------------------------------------------
MMCs eligible MMCs not
Year to renew MMCs renewed renewed Rate of turnover
A B C = ((C/A) x 100)
----------------------------------------------------------------------------------------------------------------
2016......................................... 1,111 754 357 32.13%
2017......................................... 1,069 721 348 32.55%
2018......................................... 998 669 329 32.97%
------------------------------------------------------------------
Average.................................. .............. .............. .............. 32.55%
----------------------------------------------------------------------------------------------------------------
We use a three-year average of turnover rates from the last three
full calendar years to mirror the methodology used in the periodic
renewal of a collection of information. As in the NPRM, the resulting
rate of 32.55 percent turnover assumes that any mariner lost to
turnover in a given year is replaced by a mariner with an original MMC
in order to maintain a stable population of mariners able to serve the
total population of vessels. Apart from this updated turnover rate, we
retained the methodology for calculating renewals from the NPRM. All
calculations using the turnover rate use the unrounded figure for
accuracy, any replications using a rounded turnover rate will slightly
differ from the calculations shown with the unrounded turnover rate.
In table 4 below, we calculated renewals by multiplying the total
number of original MMCs in a given starting year by the probability
that an individual would still be employed as a PIC after five years.
Where [(1-0.3255)[supcaret](5-1) = (0.6745[supcaret]4)] is the
approximate probability of remaining, (0.6745) given a turnover rate of
0.3255, compounded for each year after the first year of having the MMC
in the 5 years before renewal. We show the application of the
calculation below in Table 4. For Year 4, this is equivalent to 105 =
[506 x (0.6745[supcaret]4)]. For Year 5, this is equivalent to 521 =
[2,519 x (0.6745[supcaret]4)]. For Year 6, this is equivalent to 1,033
= [4,993 x (0. 0.6745[supcaret]4)]. For Year 7, this is equivalent to
978= [4,725 x (0.6745[supcaret]4)]. For Year 8, this is equivalent to
1,077 = [5,204 x (0.6745[supcaret]4)]. For Year 9 and all subsequent
years, renewals become 777 = [3,756 x (0.6745[supcaret]4)].
Table 4--Summary of Affected Population
--------------------------------------------------------------------------------------------------------------------------------------------------------
Total Original Original Total
Calendar year Effective year affected MMCs needed New COIs MMCs from MMCs from original Renewals
vessels new COIs Turnover MMCs
--------------------------------------------------------------------------------------------------------------------------------------------------------
2018................................ ....................... 253 506 253 506 0 506 0
2019................................ ....................... 1,430 2,860 1,177 2,354 165 2,519 0
2020................................ Year 1................. 3,461 6,922 2,031 4,062 931 4,993 0
2021................................ Year 2................. 4,697 9,394 1,236 2,472 2,253 4,725 0
2022................................ Year 3................. 5,770 11,540 1,073 2,146 3,058 5,204 0
2023................................ Year 4................. 5,770 11,540 0 0 3,756 3,756 105
2024................................ Year 5................. 5,770 11,540 0 0 3,756 3,756 521
2025................................ Year 6................. 5,770 11,540 0 0 3,756 3,756 1,033
2026................................ Year 7................. 5,770 11,540 0 0 3,756 3,756 978
2027................................ Year 8................. 5,770 11,540 0 0 3,756 3,756 1,077
2028................................ Year 9................. 5,770 11,540 0 0 3,756 3,756 777
2029................................ Year 10................ 5,770 11,540 0 0 3,756 3,756 777
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: We rounded the numbers in the table for readability, but we did not round the turnover rate in our calculations. Additionally, the values in each
column are not additive.
[[Page 31683]]
While we do not count cost savings for original MMCs obtained
before 2020, we counted cost savings for avoided renewals of those MMCs
since the renewal would occur after the effective year of the final
rule, 2020.
Cost Savings to Industry
Cost savings from this rule come from the avoided cost of obtaining
an MMC for individuals that are able to use an LOD to qualify as a PIC
rather than obtaining an MMC. All of the components of the average cost
are unchanged and include tuition for Basic Fire Fighting and Dangerous
Liquids, application fees, security screening fee, travel, and the
opportunity cost of the time to attend training for an applicant. The
renewal cost of $220 is also unchanged from the NPRM and includes
application fees and security screening fee. As a result, the total
average cost for an individual to obtain an original MMC is $8,958,
which is the same estimate we used in the NPRM. Below is the analysis
for estimating this total cost as it appeared in the NPRM.
As of May 2019, the average cost of a Basic Fire Fighting course is
$731.31 and ranges in length from 2 to 5 days depending on whether it
is offered as a separate module or as part of the International
Convention on Standards of Training, Certification, and Watchkeeping
for Seafarers Basic Training. We assume an average course length of 27
hours, which would require 4 days of training. Similarly, the average
cost of a Dangerous Liquids course is $985.62 with almost all offerings
being 5 days in duration with an average of 38 hours of training. The
length of the training in days assumes an 8-hour day, and that any part
of an additional day would be considered a full day's opportunity cost
in order to account for travel (that is, a mariner would not be able to
leave training at noon and return to work). Because very few of the
training facilities offer both courses--and none of the training
facilities offer the courses concurrently--mariners would need to
schedule each training course separately. See table 5 below for the
summary of course costs.
Table 5--Average Course Costs
----------------------------------------------------------------------------------------------------------------
Length (days
Course Tuition Length (days) rounded) Length (hours)
----------------------------------------------------------------------------------------------------------------
Basic Fire Fighting............................. $731.31 3.27 4 27
Dangerous Liquids............................... 985.62 4.80 5 38
---------------------------------------------------------------
Summary..................................... 1,716.93 8.07 9 65
----------------------------------------------------------------------------------------------------------------
In addition, 46 CFR 10.219 prescribes the fees for obtaining an MMC
with a Tankerman-PIC endorsement. This includes an evaluation fee of
$95 and an issuance fee of $45. Every 5 years there is a cost to renew
the credential with the endorsement, which includes a $50 evaluation
fee and a $45 issuance fee.\23\ For the original issuance and renewal,
there is a security screening expense of $125.25.\24\
---------------------------------------------------------------------------
\23\ From 46 CFR 10.219(a), Table 1--Fees. Using column
``Evaluation then the fee is . . .'' and rows ``Original endorsement
for ratings other than qualified ratings'' and ``Renewal endorsement
for ratings other than qualified ratings.''
\24\ Transportation Security Administration 30-Day notice.
[Docket No. TSA-2006-24191] Revision of Agency Information
Collection Activity Under OMB Review: Transportation Worker
Identification Credential (TWIC[supreg]) Program (82 FR 14521, March
21, 2017).
---------------------------------------------------------------------------
The Coast Guard assumes varying modes of travel for mariners
getting to and from approved training based on the distribution of
travel modes derived in the Vessel Security Officer (VSO) Interim
Rule.\25\ The percentages below in table 6 reflect the same percentages
from the VSO rule.\26\ In further analysis, we use the average cost per
mariner weighted by the distribution of travel type.\27\ We estimate
the total travel cost of the mariners to be about $103,374,546,
undiscounted. We estimate the average travel cost for a mariner to be
about $8,958, undiscounted.
---------------------------------------------------------------------------
\25\ 73 FR 29060, May 20, 2008, ``Implementation of Vessel
Security Officer Training and Certification Requirements-
International Convention on Standards of Training, Certification and
Watchkeeping for Seafarers, 1978, as Amended'' rule corrected June
17, 2008 (73 FR 34190).
\26\ See Table 4.--TOTAL NATIONAL SHARE OR PERCENTAGE OF--Total
National Share of Percentage of VSOs THAT WILL COMMUTE, DRIVE/LODGE,
AND FLY/LODGE That Will Commute, Drive/Lodge, and Fly/Lodge in 73 FR
29060, 29065.
\27\ We use the average cost because the distribution in travel
does not change in any given year. If the actual locations of
individuals used to develop the baseline was known, then we could
base the distribution on actual travel. However, this information is
not known and could not be known for every individual in each year.
Table 6--Distribution of Training Costs by Mode of Transportation
----------------------------------------------------------------------------------------------------------------
Affected
Mode of transport Distribution mariner Cost (2018
(%) population USD)
----------------------------------------------------------------------------------------------------------------
Commute......................................................... 26.50 3,058 $27,214,180
Drive/Lodge..................................................... 16.70 1,927 $15,672,417
Fly/Lodge....................................................... 56.80 6,555 $60,487,949
-----------------------------------------------
Total....................................................... 100 11,540 $103,374,546
-----------------------------------------------
Average Cost per Mariner................................ .............. .............. $8,958
----------------------------------------------------------------------------------------------------------------
Note: Totals may not sum due to independent rounding.
In table 7, we show the unit costs that comprise the total costs to
individuals in table 9. Each method of travel has a different cost,
while the costs of training courses and MMC applications are the same
for all travel types. The total cost per mariner includes the fixed
costs of the two approved training courses and travel costs. As travel
costs are highly
[[Page 31684]]
variable, we obtained the most recent cost figures for travel and
lodging, available from either 2017 or 2018, as described in the source
reference column.
Table 7--Unit Travel Cost Estimates (adjusted to 2018 USD)
------------------------------------------------------------------------
Item Unit cost Source reference
------------------------------------------------------------------------
Opportunity cost of applicant $60.66........... The total opportunity
time. cost of time is the
base wage multiplied
by the loaded wage
factor to obtain
total compensation
including non-wage
benefits. $39.61 is
the mean wage
estimate from the
2019 National
Occupation
Employment and Wage
Statistics for
Captains, Mates, and
Pilots of Water
Vessels (53-5021)
https://www.bls.gov/oes/2018/may/oes535021.htm. The
loaded wage factor
of (33.11/21.62) is
obtained by dividing
the total
compensation by
wages and salaries
for full-time
transportation
workers. These are
annual averages of
quarterly data
series
CMU2010000520610D
and
CMU2020000520610D
respectively,
obtained from BLS
Employer Cost for
Employee
Compensation https://www.bls.gov/data/.
Driving Mileage (rate per $0.58............ ``Privately Owned
mile). Vehicle Mileage
Reimbursement
Rates'' from GSA
tables published on
January 1, 2019
https://www.gsa.gov/travel/plan-book/transportation-airfare-rates-pov-rates/privately-owned-vehicle-pov-mileage-reimbursement-rates.
Non-Commuting Driving Time.... 100 mile/27.08 For a mariner who
mph commuting would drive/lodge to
speed. the school 100 miles
round trip, we
divide 100 miles by
the average
commuting speed of
27.08 miles per hour
(mph). We obtained
27.08 mph from the
Federal Highway
Administration's
Summary of Travel
Trends, 2017. https://www.fhwa.dot.gov/policyinformation/documents/2017_nhts_summary_travel_trends.pdf page
79
Round-trip Air-Fare........... $346............. From the U.S
Department of
Transportation,
Bureau of
Transportation
Statistics. Average
price of a round-
trip airfare for
2018 in unadjusted
dollars. https://www.bts.gov/sites/bts.dot.gov/files/Annual%20Fares%201995-2018.xlsx.
Round-trip Airport Transfer... $61.28........... We used the cost of a
round-trip airport
transfer from a
Coast Guard interim
rule, ``Validation
of Merchant
Mariners' Vital
Information and
Issuance of Coast
Guard Merchant
Mariner's Licenses
and Certificates of
Registry'',
published on January
13, 2006 (71 FR
2154). Figure found
in table 4, page
2,160. A later
figure could not be
found so this figure
was adjusted for
inflation using the
GDP deflator factor
of 1.23 times the
original cost of
$50. The round-trip
airport transfer
cost is based on
research of the
average private and
public transfer
costs, including
taxi or car rental
costs associated
with U.S. airports
and regional
destinations. It is
not a mathematical
or rigorous
estimate, but an
average transfer
cost based on
information
available from
associations and
trade groups,
airports, transit
authorities, and
governments.
Flying Excursion Time......... 16 hours......... A mariner that would
fly/lodge in order
to attend a training
course or school
would incur an
opportunity cost of
flying. We assume
the total air
excursion time of 16
hours, equivalent to
two days of travel.
Incidentals and Meals (per $64.57........... Obtained from the
diem). Composite of General
Services
Administration's
domestic per diem
rates for meals/
incidentals (https://www.gsa.gov/travel/plan-book/per-diem-rates rates) in training
site and REC cities
for January 2018.
Taxes ARE included
in the M&IE rate per
FAQ #12 https://www.gsa.gov/travel/plan-book/per-diem-rates/frequently-asked-questions-per-diem#12.
Lodging (per night)........... $142.16.......... Obtained from the
Composite of General
Services
Administration's
domestic per diem
rates for lodging
(https://www.gsa.gov/travel/plan-book/per-diem-rates) training
site, and REC cities
for January 2018.
Taxes are not
automatically
included, so lodging
taxes and state
sales taxes were
added to the lodging
per diem.
------------------------------------------------------------------------
Table 8, ``MMC Costs for Mariners,'' shows how the above unit costs
for travel and tuition contribute to the total average cost per
mariner. The average cost of $8,957.93 is for each mariner expected to
obtain an original MMC.
[[Page 31685]]
Tuition costs and travel costs do not apply for renewal if a mariner
served at least 90 days of service during the preceding 5 years.\28\ If
a mariner cannot fulfill that service requirement, we assume that they
turnover and must complete the requirements for an original MMC. The
Coast Guard estimates the average travel cost for a mariner that
commutes to approved training is about $8,899.05. The average travel
cost for a mariner that drives and stays overnight for approved
training is about $8,132.31. Finally, we estimate the average travel
cost for a mariner that flies and stays overnight for approved training
to be about $9,228.15. This cost analysis uses an average because the
distribution of travel is constant year to year.
---------------------------------------------------------------------------
\28\ See 46 CFR 13.120 Renewal of tankerman endorsement.
Table 8--MMC Costs for Mariners
----------------------------------------------------------------------------------------------------------------
Training cost by travel mode
Category Derivation Amount -----------------------------------------------
Commuting Drive/Lodge Fly/Lodge
----------------------------------------------------------------------------------------------------------------
Tuition....................... Average price of $1,716.93 $1,716.93 $1,716.93 $1,716.93
$731.31 for
Basic
Firefighting,
and $985.62 for
Dangerous
Liquids.
MMC Fees...................... $95 evaluation 140.00 140.00 140.00 140.00
fee.
$45 issuance fee
Security Screening Fee........ $125.25......... 125.25 125.25 125.25 125.25
Round-trip Airfare............ 346.00.......... 346.00 NA NA 346.00
Round-trip Airport transfer... 61.28........... 61.28 NA NA 61.28
Lodging....................... 142.16 per 1,279.45 NA 1,279.45 1,279.45
lodging night x
9 lodging
nights.
Commuting Meals & Incidental $48.43 per diem 435.86 435.86 NA NA
Expenses. x 9 training
days
(equivalent to
75% of full per
diem).
Non-Commuting Meals & $64.57 per diem 645.71 NA 645.71 645.71
Incidental Expenses. x (7 training
days) + $48.43
x (4 first and
last days of
travel 75% of
total).
Commuting Motor Vehicle Costs. 100-mile commute 522.00 522.00 NA NA
x $0.58 per
mile x 9
training days.
Non-Commuting Motor Vehicle 100-mile round- 58.00 NA 58.00 NA
Costs. trip x $0.58
per mile.
Training Time (Opportunity 65 hrs. training 3,942.95 3,942.95 3,942.95 3,942.95
Cost). x loaded hourly
wage.
Commuting Driving Time (100-mile round 2,016.05 2,016.05 NA NA
(Opportunity Cost). trip / 27 mph
commuting
speed) x loaded
hourly wage x 9
days.
One Non-Commuting Driving Time (100-mile round 224.01 NA 224.01 NA
(Opportunity Cost). trip / 27 mph
commuting
speed) x loaded
hourly wage.
One Flying Time (Opportunity 16 hours x 970.57 NA NA 970.57
Cost). loaded hourly
wage.
---------------------------------------------------------------
Total Cost per Mariner.... ................ .............. 8,899.05 8,132.31 9,228.15
----------------------------------------------------------------------------------------------------------------
We estimate the cost to individuals to generate a present-value
discounted cost savings of about $265,559,822 over a 10-year period of
analysis, in 2018 dollars using a 7-percent discount rate. We estimate
annualized cost savings to be about $37,809,744, using a 7-percent
discount rate. In table 9, we show how the individual costs apply to
the affected population, reflected in the number of original MMCs and
renewals, to generate the total cost savings.
Table 9--Estimated Cost Savings to Individuals
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Total cost Renewal
Original of fee + Total annual Total annual Grand total Grand total Grand total
Calendar year MMCs original Renewals security cost of new cost of annual cost annual cost annual cost
MMC screening MMCs renewals discounted 7% discounted 3%
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
2018............................................................ 506 .......... .......... .......... .............. .............. .............. .............. ..............
2019............................................................ 2,519 .......... .......... .......... .............. .............. .............. .............. ..............
2020............................................................ 4,993 $8,958 .......... .......... $44,726,583 .............. $44,726,583 $41,800,544 $43,423,867
2021............................................................ 4,725 8,958 .......... .......... 42,327,834 .............. 42,327,834 36,970,769 39,898,043
2022............................................................ 5,204 8,958 .......... .......... 46,615,639 .............. 46,615,639 38,052,248 42,659,914
2023............................................................ 3,756 8,958 105 $220 33,649,426 $23,066 33,672,491 25,688,582 29,917,572
2024............................................................ 3,756 8,958 521 220 33,649,426 114,814 33,764,240 24,073,436 29,125,330
2025............................................................ 3,756 8,958 1,033 220 33,649,426 227,602 33,877,028 22,573,694 28,371,477
2026............................................................ 3,756 8,958 978 220 33,649,426 215,396 33,864,821 21,089,309 27,535,199
2027............................................................ 3,756 8,958 1,077 220 33,649,426 237,215 33,886,641 19,722,333 26,750,427
2028............................................................ 3,756 8,958 777 220 33,649,426 171,233 33,820,659 18,396,198 25,920,719
2029............................................................ 3,756 8,958 777 220 33,649,426 171,233 33,820,659 17,192,708 25,165,747
-------------------------------------------------------------------------------------------------------------------------------
Total....................................................... .......... .......... .......... .......... .............. .............. 370,376,595 265,559,822 318,768,294
Annualized.............................................. .......... .......... .......... .......... .............. .............. .............. 37,809,744 37,369,369
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Totals may not sum due to independent rounding; we do not round the turnover rate in our calculations, which carries throughout the table.
Cost Incurred To Prepare Letter of Designation
While the use of an LOD saves the individual approved training
costs, the actual letter of designation still takes time to prepare.
Using the time estimate from the existing collection of information for
PICs, we assume the preparation of a letter takes approximately 10
minutes at a loaded hourly wage of $53.39 for a cost of about
$8.92.\29\ Over a 10-year period of analysis, we estimate the total
discounted cost of writing LODs to be about $263,603 in 2018 dollars,
using a
[[Page 31686]]
7 percent discount rate. We estimate the annualized cost to be about
$37,531, using a 7 percent discount rate.
---------------------------------------------------------------------------
\29\ From OMB Control Number 1625-0072 (ICR 201803-1625-007) -
0.167 hours equals approximately 10 minutes from Table 12.3 in
Appendix A of ICR 201803-1625-007 (OMB Control Number 1625-0072)
last updated in 2018. $34.86 is the mean hourly wage estimate from
the 2018 National Occupation Employment and Wage Statistics for
Compliance Officers (13-1041) https://www.bls.gov/oes/2018/may/oes131041.htm. The loaded wage factor of ($33.11/$21.62) is obtained
by dividing the total compensation by wages and salaries for full-
time transportation workers. These are annual averages of quarterly
data series CMU2010000520610D and CMU2020000520610D respectively,
obtained from BLS Employer Cost for Employee Compensation (https://www.bls.gov/data/).
Table 10--Estimated Costs Incurred to Prepare Letter of Designation
----------------------------------------------------------------------------------------------------------------
Individuals Cost of Total annual Grand total Grand total
Year needing a new preparing LOD cost of annual cost annual cost
LOD per Mariner preparing LOD discounted 7% discounted 3%
----------------------------------------------------------------------------------------------------------------
1............................... 4,993 $8.92 $44,515 $41,603 $43,218
2............................... 4,725 8.92 42,127 36,796 39,709
3............................... 5,204 8.92 46,395 37,872 42,458
4............................... 3,756 8.92 33,490 25,549 29,756
5............................... 3,756 8.92 33,490 23,878 28,889
6............................... 3,756 8.92 33,490 22,316 28,047
7............................... 3,756 8.92 33,490 20,856 27,231
8............................... 3,756 8.92 33,490 19,492 26,437
9............................... 3,756 8.92 33,490 18,216 25,667
10.............................. 3,756 8.92 33,490 17,025 24,920
-------------------------------------------------------------------------------
Total....................... .............. .............. 367,468 263,603 316,333
Annualized.............. .............. .............. .............. 37,531 37,084
----------------------------------------------------------------------------------------------------------------
Note: Totals may not sum due to independent rounding; we do not round the turnover rate in our calculations,
which carries throughout the table.
Cost Savings to Government
Without this deregulatory action, the Coast Guard would need to
evaluate the MMC applications that would be submitted if an MMC with a
Tankerman PIC endorsement were still required to serve as a PIC for
fuel oil transfers. The avoided cost per MMC application is 55 minutes
of review by a GS-8 employee for an avoided cost of about $44.92. As
shown in table 11, over a 10-year period of analysis, we estimate the
Coast Guard would save a discounted amount of about $1,471,506 in 2018
dollars, using a 7 percent discount rate. We estimate the annualized
savings amount to be about $209,509, using a 7 percent discount rate.
Table 11--Estimated Cost Savings to Coast Guard of the Final Rule
--------------------------------------------------------------------------------------------------------------------------------------------------------
Cost of Cost of Grand total Grand total
Effective year Original MMC reviewing Renewals reviewing Grand total annual cost annual cost
applications original MMC renewed MMC annual cost discounted 7% discounted 3%
--------------------------------------------------------------------------------------------------------------------------------------------------------
1....................................... 4,993 $44.92 .............. .............. $224,267 $209,595 $217,735
2....................................... 4,725 44.92 .............. .............. 212,239 185,378 200,056
3....................................... 5,204 44.92 .............. .............. 233,739 190,801 213,904
4....................................... 3,756 44.92 105 44.92 173,428 132,307 154,089
5....................................... 3,756 44.92 521 44.92 192,139 136,992 165,741
6....................................... 3,756 44.92 1,033 44.92 215,140 143,357 180,177
7....................................... 3,756 44.92 978 44.92 212,651 132,428 172,905
8....................................... 3,756 44.92 1,077 44.92 217,101 126,355 171,381
9....................................... 3,756 44.92 777 44.92 203,645 110,769 156,077
10...................................... 3,756 44.92 777 44.92 203,645 103,523 151,531
---------------------------------------------------------------------------------------------------------------
Total............................... .............. .............. .............. .............. 2,087,993 1,471,506 1,783,594
Annualized...................... .............. .............. .............. .............. .............. 209,509 209,092
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Totals may not sum due to independent rounding; we do not round the turnover rate in our calculations, which carries throughout the table.
Net Cost Savings
Using a perpetual period of analysis, the Coast Guard estimates the
total annualized cost savings of the final rule to be $26,323,316 in
2016 dollars, using a 7 percent discount rate and discounted back to
2016 assuming implementation begins in 2020. The total cost savings is
the sum of the cost savings to individuals no longer obtaining MMCs,
shown in table 9, and the time cost savings to the Coast Guard, shown
in table 11, of no longer reviewing MMCs. Net cost savings are the
total cost savings minus the costs incurred, shown in table 12. We
estimate the net cost savings of this final rule over a 10-year period
of analysis to be about $266,767,725 in 2018 dollars, using a 7 percent
discount rate.
Table 12--Estimated Net Cost Savings of the Final Rule
----------------------------------------------------------------------------------------------------------------
Net cost Annualized
Cost savings Costs incurred savings cost savings
----------------------------------------------------------------------------------------------------------------
Grand Total..................................... $372,464,588 $367,468 $372,097,120 ..............
[[Page 31687]]
Discounted, 7%.................................. 267,031,327 263,603 266,767,725 $37,981,722
Discounted, 3%.................................. 320,551,888 316,333 320,235,556 37,541,376
----------------------------------------------------------------------------------------------------------------
Alternatives
We considered three alternatives in this final rule, including the
preferred alternative. The first alternative is to let the policy
letter expire and continue to require formal training for Tankerman-PIC
for any fuel oil transfer. The second alternative is to continue to
issue limited endorsement MMCs with Tankerman-PIC Restricted to Fuel
Oil Transfers on Towing Vessels. The third, and preferred, alternative
is extend use of an LOD to qualify as a PIC for fuel oil transfers to
inspected vessels.
(1) MMC with officer or Tankerman-PIC endorsement (No Limited
Endorsement).
Continue to require inspected vessels with a fuel oil capacity of
250 barrels or more--or that obtain fuel oil from a vessel with a fuel
oil capacity of 250 barrels or more--to have an individual holding an
MMC with either an officer or Tankerman-PIC endorsement designated as
the PIC of any fuel oil transfer. Under this alternative, any
designated PIC of a fuel oil transfer would be required to hold an MMC
with an officer or Tankerman-PIC endorsement, without a limited
endorsement for fuel oil transfers.
The Coast Guard rejected this alternative because it does not
generate more benefits than the preferred alternative and there are no
cost savings associated with it and it would not meet the Coast Guard's
goal of reducing regulations under Executive Order 13771. Individuals
would still bear the cost of obtaining an MMC, and after a vessel
receives its COI, individuals previously qualified as PIC through the
LOD options would not be able to be designated as a PIC until they
obtain their MMC.
(2) Continue to Issue Limited Endorsement MMCs with Tankerman-PIC
Restricted to Fuel Oil Transfers on Towing Vessels.
Under this alternative the Coast Guard would continue to utilize
the CG-MMC Policy Letter 01-17 to issue MMC endorsements for Tankerman-
PIC Restricted to Fuel Transfers on Towing Vessels. Under this
continued action alternative, the existing policy letter would continue
to provide a means for individuals on towing vessels previously
designated as PIC of a fuel oil transfer using an LOD to be issued a
limited endorsement Tankerman-PIC restricted to Fuel Transfers.
Although one commenter on the NPRM requested that the limited
endorsement be continued in addition to the use of the LOD, the Coast
Guard rejected this alternative because while it achieves similar
benefits as the preferred alternative, it provides neither a full
solution nor an adequate long-term alternative for designating the PIC
of a fuel oil transfer--and it is more costly than the preferred
alternative. The policy letter only applies to one industry segment,
and individuals who obtain an MMC according to the policy letter would
still incur the cost of renewing their credential every 5 years.
(3) Preferred Alternative--new regulatory action allowing use of
LODs for inspected vessels.
Under this alternative, the Coast Guard would provide the option
for inspected vessels to designate the PIC of a fuel oil transfer
utilizing an LOD. Under a new regulatory action, the Coast Guard would
provide flexibility to all inspected vessels in how they designate the
PIC of a fuel oil transfer. This is the preferred alternative because
it relieves a regulatory burden for individuals who would have to
obtain and renew a credential while also providing flexibility to
industries--and it tends to provide the benefit of vessel specific
training.
B. Small Entities
Under the Regulatory Flexibility Act, 5 U.S.C. 601-612, we have
considered whether this rule would have a significant economic impact
on a substantial number of small entities. The term ``small entities''
comprises small businesses, not-for-profit organizations that are
independently owned and operated and are not dominant in their fields,
and governmental jurisdictions with populations of less than 50,000. We
received no comments on the threshold analysis of the proposed rule,
therefore we adopt the preliminary analysis as final.
Our analysis of the impacts on small entities from the NPRM has not
changed; we present this analysis for the final rule below.
In lieu of current revenue figures that may be distorted by ongoing
inspections, for this analysis we use the small entity impact analysis
of the 2016 Subchapter M rule, which we assume will be closely
representative of revenues after the inspection period is over. The
2016 rule's small entity impact analysis used a sample of 304 vessels
from the initially estimated population of 5,509.\30\ Of the 304
vessels, about 59 percent were owned or operated by a small entity. We
assume the same number of small entities would be impacted going
forward but will know better once inspections are completed and all
fleets resume active status. As this is a deregulatory action, most of
the impact is cost savings to individuals, who do not qualify as small
entities. The only impact to small entities is the cost imposed to
industry as the time cost of preparing the LOD.
---------------------------------------------------------------------------
\30\ See 81 FR 40003, June 20, 2016.
---------------------------------------------------------------------------
The Coast Guard found the average annual cost to be $75.91 based on
the known fleet sizes of all towing vessel entities. For this analysis,
we make the most conservative assumption that entities would need to
prepare LODs for their entire fleet every year and compare that to the
revenue of the lowest earning fleet.
The average annual unit cost takes the number of vessels in a
fleet--multiplied by the cost of preparing a letter, $8.92, and
multiplied by 2--to account for each of the two PICs needed per vessel.
This average varies by the number of vessels in an entity's fleet, see
the distribution below. Note that the number of vessels in a fleet does
not correlate with company size; a small business may have a large
fleet or a large business may have a small fleet. On average, the cost
incurred per entity is $75.91, which is on average 0.0152 percent of
total annual revenues.\31\
---------------------------------------------------------------------------
\31\ While fleet size is known for all 1,295 entities covering
the entire affected population of vessels, revenues are known only
for a sample of 183 vessels of the original 5,509 vessels, data from
the original FRFA of Inspection of Towing Vessels final rule (81 FR
40003). In Table 14, ``Average cost'' is based on the entire
population of entities for which the total annual revenues are
known, ``Average Cost as a % of Total revenue'' is based only on
entities for whom revenue is known.
[[Page 31688]]
Table 13--Estimated Average Cost of the Final Rule on Small Entities by Fleet Size
----------------------------------------------------------------------------------------------------------------
Average cost
Fleet size category Description Number of Average cost as % of total
entities revenue
----------------------------------------------------------------------------------------------------------------
Small_1............................... Entity with only one 611 $17.83 0.0011
vessel.
Small_2-5............................. Entity with 2 to 5 571 52.25 0.0037
vessels.
Medium................................ Entity with 6 to 25 179 194.05 0.0292
vessels.
Large................................. Entity with > 25 vessels 32 873.17 0.0072
Average............................... All fleet sizes......... .............. 75.91 0.0152
----------------------------------------------------------------------------------------------------------------
In the most conservative case, for a medium-sized fleet owned by
the entity with the lowest revenue amount in the sample--which would
have the highest possible cost as percentage of total revenues for the
affected population--the cost imposed by this rule is still less than 1
percent of total revenues. In this conservative example, the entity's
estimated annual cost would be approximately $321 for a fleet of 18
vessels, 0.76 percent of their $42,000 annual revenue amount.\32\ On
average, the cost incurred is less than a quarter of one percent of
revenues.
---------------------------------------------------------------------------
\32\ The value of $42,000 comes from the original FRFA of 81 FR
40003, June 20, 2016.
Table 14--Distribution of Revenue Impacts on Small Entities
----------------------------------------------------------------------------------------------------------------
Percentage of small
Percent revenue impact Average annual impact Small entities with entities with known
known revenue revenue (%)
----------------------------------------------------------------------------------------------------------------
<1%............................... $75.91 183 100
1-3%.............................. 75.91 0 0
>3%............................... 75.91 0 0
----------------------------------------------------------------------------------------------------------------
Since the most conservative case shows that the impact of this rule
would be less than 1 percent of total annual revenues, we assume that
the impact will be less than 1 percent of total annual revenues for 100
percent of the small entities in our sample size. Therefore, the Coast
Guard certifies under 5 U.S.C. 605(b) that this rule will not have a
significant economic impact on a substantial number of small entities.
C. Assistance for Small Entities
Under section 213(a) of the Small Business Regulatory Enforcement
Fairness Act of 1996, Public Law 104-121, we offer to assist small
entities in understanding this rule so that they can better evaluate
its effects on them and participate in the rulemaking. The Coast Guard
will not retaliate against small entities that question or complain
about this rule or any policy or action of the Coast Guard.
Small businesses may send comments on the actions of Federal
employees who enforce, or otherwise determine compliance with, Federal
regulations to the Small Business and Agriculture Regulatory
Enforcement Ombudsman and the Regional Small Business Regulatory
Fairness Boards. The Ombudsman evaluates these actions annually and
rates each agency's responsiveness to small business. If you wish to
comment on actions by employees of the Coast Guard, call 1-888-REG-FAIR
(1-888-734-3247).
D. Collection of Information
The Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520) requires
the U.S. Coast Guard to consider the impact of paperwork and other
information collection burdens imposed on the public. Under 44 U.S.C.
3506(c)(1)(B)(iii)(V) and 5 CFR 1320.8(b)(3)(vi), an agency may not
collect or sponsor the collection of information, nor may it impose an
information collection requirement unless it displays a currently valid
Office of Management and Budget (OMB) control number.
The collection of information under this final rule falls under the
same collection of information already required for letters of
designation described in OMB Control Number 1625-0072. This final rule
does not change the content of responses, nor the estimated burden of
each response, but does increase the number of annual respondents and
responses from 190 to 3,756.
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
collections, a description of those who must collect the information,
and an estimate of the total annual burden follow. The estimate covers
the time for reviewing instructions, searching existing sources of
data, gathering and maintaining the data needed, and completing and
reviewing the collection.
Title: Waste Management Plans, Refuse Discharge Logs, and Letters
of Designation \33\ for Certain Persons-in-Charge (PIC) and Great Lakes
Dry Cargo Residue Recordkeeping.
---------------------------------------------------------------------------
\33\ As stated in the Discussion of the Rule section, this rule
is amending 33 CFR 155.715 to make it clear that the letter that has
been referred to as both a ``Letter of Instruction'' and a ``Letter
of Designation'' should consistently be called a ``Letter of
Designation.'' We are amending the title of this collection of
information to reflect that change.
---------------------------------------------------------------------------
OMB Control Number: 1625-0072
Summary of the Collection of Information: The Letter of
Designation, which is issued by the operator or agent of a vessel,
designates the holder as the PIC for the transfer of fuel oil and
documents that the holder has received sufficient formal instruction
from the operator or agent of the vessel to meet the requirements of 33
CFR 155.715. As amended by this rule, Sec. 155.710(e) will now permit
LODs to be used on inspected vessels in addition to uninspected
vessels.
Need for Information: This information is needed to ensure that:
(1) Certain U.S. vessels develop and maintain a waste plan; (2) certain
U.S. vessels maintain refuse discharge records; (3) certain individuals
that act
[[Page 31689]]
as fuel oil transfer PIC receive an LOD for both vessel safety and
prevention of pollution; and (4) certain Great Lakes vessels conduct
dry cargo residue recordkeeping.
Use of Information: To ensure that fuel oil transfer competency
standards are met, all PICs on uninspected or inspected vessels must
carry a Letter of Designation if they do not hold an MMC with either an
officer endorsement or a Tankerman-PIC endorsement.
Description of Respondents: Compliance officers for entities
conducting transfers of fuel oil and needing to designate a PIC of such
transfers.
Number of Respondents: The currently OMB-approved number of
respondents is 190, we are requesting an increase of 3,566 respondents
for a total of 3,756. The reason for the increase is the number of PICs
who choose the LOD option, or 11,540 PICs multiplied by the attrition
rate of 0.3255, or PICs who leave the industry over a given period of
time.
Burden of Response: 0.167 hours per response.
Estimate of Total Annual Burden: The currently OMB-approved burden
hours is 32, we are requesting an increase of 595 hours (11,540 PICs x
0.3255 x 0.167 hours, the time it takes for a PIC to create a letter of
instruction) for a total of 627 hours. The reason for the increase is
due to the increase in the number of PICs who choose the LOD option.
As required by 44 U.S.C. 3507(d), we will submit a copy of this
rule to OMB for its review of the collection of information. You are
not required to respond to a collection of information unless it
displays a currently valid OMB control number.
We received no comments on this collection of information, so we
are updating the population numbers as necessary and are adopting the
collection of information from the NPRM as final.
E. Federalism
A rule has implications for federalism under Executive Order 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 rule under Executive Order 13132 and
have determined that it is consistent with the fundamental federalism
principles and preemption requirements described in Executive Order
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 all of the categories covered in 46 U.S.C. 3306, 3703, 7101, and
8101 (design, construction, alteration, repair, maintenance, operation,
equipping, personnel qualification, and manning of vessels), as well as
the reporting of casualties and any other category in which Congress
intended the Coast Guard to be the sole source of a vessel's
obligations, are within the field foreclosed from regulation by the
States. See the Supreme Court's decision in United States v. Locke and
Intertanko v. Locke, 529 U.S. 89, 120 S.Ct. 1135 (2000). This rule, as
promulgated under 46 U.S.C. 3306 and 3703, concerns personnel
qualifications because it will amend requirements for who may serve as
the PIC of fuel oil transfers on inspected vessels. Therefore, because
the States may not regulate within these categories, this rule is
consistent with the fundamental federalism principles and preemption
requirements described in Executive Order 13132.
F. Unfunded Mandates
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. Although this rule will not result
in such expenditure, we do discuss the effects of this rule elsewhere
in this preamble.
G. Taking of Private Property
This rule will not cause a taking of private property or otherwise
have taking implications under Executive Order 12630 (Governmental
Actions and Interference with Constitutionally Protected Property
Rights).
H. Civil Justice Reform
This rule meets applicable standards in sections 3(a) and 3(b)(2)
of Executive Order 12988 (Civil Justice Reform) to minimize litigation,
eliminate ambiguity, and reduce burden.
I. Protection of Children
We have analyzed this rule under Executive Order 13045 (Protection
of Children from Environmental Health Risks and Safety Risks). This
rule is not an economically significant rule and will not create an
environmental risk to health or risk to safety that might
disproportionately affect children.
J. Indian Tribal Governments
This rule does not have tribal implications under Executive Order
13175 (Consultation and Coordination with Indian Tribal Governments),
because it will not have a substantial direct effect on one or more
Indian tribes, on the relationship between the Federal Government and
Indian tribes, or on the distribution of power and responsibilities
between the Federal Government and Indian tribes.
K. Energy Effects
We have analyzed this rule under Executive Order 13211 (Actions
Concerning Regulations That Significantly Affect Energy Supply,
Distribution, or Use). We have determined that it is not a
``significant energy action'' under that order because it is not a
``significant regulatory action'' under Executive Order 12866 and is
not likely to have a significant adverse effect on the supply,
distribution, or use of energy.
L. Technical Standards and Incorporation by Reference
The National Technology Transfer and Advancement Act, codified as a
note to 15 U.S.C. 272, directs agencies to use voluntary consensus
standards in their regulatory activities unless the agency provides
Congress, through OMB, with an explanation of why using these standards
would be inconsistent with applicable law or otherwise impractical.
Voluntary consensus standards are technical standards (for example,
specifications of materials, performance, design, or operation; test
methods; sampling procedures; and related management systems practices)
that are developed or adopted by voluntary consensus standards bodies.
This rule does not use technical standards. Therefore, we did not
consider the use of voluntary consensus standards.
M. Environment
We have analyzed this rule under Department of Homeland Security
Management Directive 023-01, Rev. 1, associated implementing
instructions, and Environmental Planning COMDTINST 5090.1 (series),
which guide the Coast Guard in complying with the National
Environmental Policy Act of 1969 (42 U.S.C. 4321-4370f), and have made
a 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 Record of Environmental Consideration supporting
this determination is available in the docket. For instructions
[[Page 31690]]
on locating the docket, see the ADDRESSES section of this preamble.
This rule is categorically excluded under paragraph L56 of Appendix A,
Table 1 of DHS Instruction Manual 023-01-001-01, Rev. 01. Paragraph L56
pertains to the training, qualifying, licensing, and disciplining of
maritime personnel. This rule involves letters of designation to assign
PICs of fuel oil transfers on inspected vessels.
List of Subjects in 33 CFR Part 155
Alaska, Hazardous substances, Oil pollution, Reporting, and
recordkeeping requirements.
For the reasons discussed in the preamble, the Coast Guard amends
part 155 as follows:
PART 155--OIL OR HAZARDOUS MATERIAL POLLUTION PREVENTION
REGULATIONS FOR VESSELS
0
1. The authority citation for part 155 is revised to read as follows:
Authority: 3 U.S.C. 301 through 303; 33 U.S.C. 1321(j),
1903(b), 2735; 46 U.S.C 3306, 3703, 70011, 70034; E.O. 12777, 56 FR
54757, 3 CFR, 1991 Comp., p. 351; Department of Homeland Security
Delegation No. 0170.1. Section 155.1020 also issued under section
316 of Pub. L. 114-120. Section 155.480 also issued under section
4110(b) of Pub. L. 101-380.
Note: Additional requirements for vessels carrying oil or
hazardous materials are contained in 46 CFR parts 30 through 40,
150, 151, and 153
0
2. Amend Sec. 155.710 as follows:
0
a. In paragraph (e) introductory text, remove the word ``shall'' and
add in its place the word ``must'';
0
b. Revise paragraph (e)(1);
0
c. Remove paragraph (e)(2);
0
d. Redesignate paragraphs (e)(3) and (4) as paragraphs (e)(2) and (3),
respectively; and
0
e. In newly redesignated paragraph (e)(2), remove the text ``or (2)''.
The revision reads as follows:
Sec. 155.710 Qualifications of person in charge.
* * * * *
(e) * * *
(1) On each inspected vessel required by 46 CFR chapter I to have
an officer aboard, and on each uninspected vessel, either:
(i) Holds a valid merchant mariner credential issued under 46 CFR
chapter I, subchapter B, with an endorsement as master, mate, pilot,
engineer, or operator aboard that vessel, or holds a valid merchant
mariner credential endorsed as Tankerman-PIC; or
(ii) Carries a letter satisfying the requirements of Sec. 155.715
and designating him or her as a PIC, unless equivalent evidence is
immediately available aboard the vessel or at his or her place of
employment.
* * * * *
Sec. 155.715 [Amended]
0
3. In Sec. 155.715, remove the text ``letter of instruction required
in Sec. 155.710(e)(2)'' and add in its place the text ``letter
referenced in Sec. 155.710(e)(1)''.
Dated: May 21, 2020.
R.V. Timme,
Rear Admiral, U.S. Coast Guard, Assistant Commandant for Prevention
Policy.
[FR Doc. 2020-11366 Filed 5-26-20; 8:45 am]
BILLING CODE 9110-04-P