[Federal Register Volume 86, Number 11 (Tuesday, January 19, 2021)]
[Rules and Regulations]
[Pages 5022-5033]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-00526]


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

DEPARTMENT OF HOMELAND SECURITY

Coast Guard

46 CFR Part 67

[Docket No. USCG-2020-0215]
RIN 1625-AC26


Certificate of Documentation--5 Year Renewal Fees

AGENCY: Coast Guard, DHS.

ACTION: Final rule.

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

SUMMARY: The Coast Guard is issuing a final rule extending the validity 
of a recreational vessel endorsement on a Certificate of Documentation 
(COD) from 1 to 5 years. Congress passed and the President signed the 
Frank LoBiondo Coast Guard Authorization Act of 2018, which requires 
the Coast Guard to issue recreational vessel CODs for 5 years. By 
updating the Code of Federal Regulations to reflect this change, the 
Coast Guard anticipates this final rule to harmonize with the 
requirements of the 2018 Act that decreased the burden on recreational 
vessel owners by requiring COD renewals every 5 years rather than 
annually.

DATES: This final rule is effective February 18, 2021.

ADDRESSES: To view documents mentioned in this preamble as being 
available in the docket, go to https://www.regulations.gov, type USCG-
2020-0215 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 Mr. Ronald Teague, Department of Homeland Security, U.S. 
Coast Guard, National Vessel Documentation Center, 792 T J Jackson 
Drive, Falling Waters, WV 25419; telephone 304 271-2506; email 
[email protected].

SUPPLEMENTARY INFORMATION:

Table of Contents for Preamble

I. Abbreviations
II. Basis and Purpose, and Regulatory History
III. Background
IV. Discussion of the Rule
V. Regulatory Analyses
    A. Regulatory Planning and Review
    B. Small Entities
    C. Assistance for Small Entities
    D. Collection of Information
    E. Federalism
    F. Unfunded Mandates
    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

2018 Act Frank LoBiondo Coast Guard Authorization Act of 2018 (Pub. 
L. 115-282, 132 Stat. 4192)
BLS Bureau of Labor Statistics
CFR Code of Federal Regulations
COD Certificate of Documentation
DHS Department of Homeland Security
FR Federal Register
NPRM Notice of proposed rulemaking
NVDC U.S. Coast Guard National Vessel Documentation Center
OMB Office of Management and Budget
Sec.  Section
SME Subject matter expert
U.S.C. United States Code

II. Basis and Purpose, and Regulatory History

    The legal basis for this final rule is found in Section 512 of the 
Frank LoBiondo Coast Guard Authorization Act of 2018 (2018 Act) (Pub. 
L. 115-282, 132 Stat. 4192) (the 2018 Act), which the President signed 
on December 4, 2018. The 2018 Act directed the Coast Guard to do the 
following: (1) Make Certificates of Documentation (CODs) for 
recreational vessels of at least five

[[Page 5023]]

net tons \1\ effective for 5 years; and (2) require owners of 
recreational vessel of at least five net tons to notify the Coast Guard 
of each change in the information on which the issuance of the COD is 
based. Vessel owners must report each change of information that occurs 
before expiration of the certificate not later than 30 days after such 
change. This rulemaking is issued under authority found in Title 46 of 
the United States Code (U.S.C.) 2103.
---------------------------------------------------------------------------

    \1\ 46 U.S.C. 12103 provides, in pertinent part, ``Except as 
otherwise provided, a certificate of documentation for a vessel may 
be issued under this chapter only if the vessel is--. . .(2) at 
least 5 net tons as measured under part J of this subtitle; . . .''
---------------------------------------------------------------------------

    The Coast Guard finds that good cause exists under the 
Administrative Procedure Act, 5 U.S.C. 553, to dispense with notice and 
comment procedures. Prior notice and opportunity to comment on this 
rule are unnecessary under 5 U.S.C. 553(b)(3)(B) because Section 512 of 
the 2018 Act provides the Coast Guard no discretion in adopting the 
specific time frames for renewal of recreational vessel CODs. The 2018 
Act does not allow for alternatives. It does not permit the Coast Guard 
to decide upon a different time frame for renewal, choose to adopt a 
different renewal period, or respond to public comments by modifying 
the substance of the rule. Soliciting public comment on the correct 
time period for COD renewal for a recreational vessel, or on the 
decision to update the regulations to comport with the statutory 
mandate, is unnecessary and would in fact be futile.\2\ It should be 
noted that the Coast Guard has already implemented the requirements of 
Section 512 of the 2018 Act and is presently issuing multi-year CODs to 
recreational vessels of at least 5 net tons.
---------------------------------------------------------------------------

    \2\ See Metzenbaum v. Federal Energy Regulatory Commission, 675 
F. 2d 1282, 1291 (D.C. Cir. 1982) (finding notice and comment 
unnecessary for nondiscretionary acts where notice and comment 
``might even have been contrary to the public interest, given the 
expense that would have been involved in a futile gesture.'') 
(internal quotation marks omitted).
---------------------------------------------------------------------------

III. Background

    Section 512 of the 2018 Act directs how the Coast Guard must 
administer its certificate of documentation program, and this rule 
conforms sections in Title 46 of the Code of Federal Regulations (CFR) 
part 67 to reflect what is now the law. As described above, the Coast 
Guard finds that good cause exists to forego notice and comment 
rulemaking because the statute provides the Coast Guard with no 
discretion to exercise in response to comments. Accordingly, the Coast 
Guard did not issue a notice of proposed rulemaking. This final rule 
only amends the regulations so that they are in agreement with the 
requirements already in the law.
    The purpose of this final rule is to meet the Congressional mandate 
contained in Section 512 of the 2018 Act, in which Congress requires 
the Coast Guard to issue recreational endorsements on CODs with a 
validity of 5 years. Additionally, the 2018 Act directs the Coast Guard 
to establish phased user fees for 5-, 4-, 3-, 2-, and 1-year 
recreational endorsements. After the phase-in period is complete, on 
December 31, 2021, applicants will only be able to apply for a 5-year 
recreational endorsement.
    In accordance with 46 U.S.C. 12105(e)(2)(C), the cost of the user 
fee will be calculated by multiplying 5 years by the recently 
established $26 annual fee, for a total of $130.\3\ The 5-year fee is 
consistent with statute and will ensure that the Coast Guard collects 
the appropriate user fees, consistent with the cost to provide the 
service. The new fee for a 5-year recreational endorsement will be in 
addition to the fee collected for initial and exchanges of CODs.
---------------------------------------------------------------------------

    \3\ See 79 FR 47015, 47106 (Aug. 12, 2014).
---------------------------------------------------------------------------

    Lastly, this final rule repeats the requirement in the 2018 Act for 
vessel owners to notify the Coast Guard of each change in the 
information on which the issuance of the COD for the vessel is based, 
before the expiration of the COD and no later than 30 days after the 
change. The COD will terminate upon the expiration of the 30-day period 
if the owner has not notified the Coast Guard of changes within the 30-
day timeframe.

IV. Discussion of the Rule

    On March 3, 2015, the Coast Guard published a request for comments, 
specifically seeking input on increasing the validity period for 
renewing CODs, methods for doing so, and possibly updating the fee for 
services (80 FR 11361). We received 2,844 comments in response to our 
notice, largely in support of a multiyear registration option. However, 
our request for comments was superseded by section 311 of the Coast 
Guard Authorization Act of 2015 (Pub. L. 114-120), and again by the 
Frank LoBiondo Coast Guard Authorization Act of 2018 (Pub. L. 115-282), 
which specifically directed the Coast Guard to change the validity 
period of CODs for recreational vessels to a 5-year option only, after 
a 3-year phase-in period during which vessel owners could choose 1, 2, 
3, 4, or 5 years.
    There are no maritime safety or security reasons to change the 
recreational vessel COD validity from 1 year to 5. However, Congress 
determined that a change in the validity was in the best interest of 
recreational vessel owners, and the Coast Guard is required to recoup 
the costs of providing a service.\4\ To ensure the appropriate user 
fees are collected for 5-year CODs, the Coast Guard will collect fees 
consistent with the annual cost multiplied by 5, as required by section 
512 of the 2018 Act.
---------------------------------------------------------------------------

    \4\ 46 U.S.C. 2110.
---------------------------------------------------------------------------

    Currently, 46 CFR 67.163(a) states that all endorsements on a COD, 
including commercial vessel CODs, are valid for 1 year. In this final 
rule, the Coast Guard is amending this section to reflect what is 
already stated in the 2018 Act: That only commercial vessel CODs are 
valid for one 1 year, and that recreational endorsements are valid for 
5 years. Additionally, the amendment clarifies that a vessel with both 
recreational and commercial endorsements must renew annually. The Coast 
Guard is also amending Sec.  67.163(b) to reflect the appropriate 
renewal application, as the currently listed form no longer exists. 
Lastly, as the 2018 Act requires, the Coast Guard is adding paragraph 
(c) to Sec.  67.163 to establish the 5-year renewal requirement and 
inform recreational vessel owners that they have the option to renew 
recreational endorsements for durations of 1, 2, 3, 4, or 5 years 
during the phase-in period. The ability for the owner to select 
validity is only in effect from January 1, 2019, to December 31, 2021.
    The Coast Guard is amending Sec.  67.317 to reflect that 
recreational endorsements must be renewed every 5 years. The Coast 
Guard is also amending Sec.  67.319 to reflect that an owner of a 
vessel that has a change of information on which the issuance of the 
COD of the vessel is based must notify the Coast Guard of the change of 
information within 30 days, as is required by section 512 of the 2018 
Act. Furthermore, the Coast Guard is amending this section to reflect 
that the vessel's COD will be terminated if the owner fails to notify 
the Coast Guard within 30 days of any changes on which the issuance of 
the COD is based. The Coast Guard is also amending Sec.  67.515 to 
remove the word ``annual'' in describing endorsement renewals.
    Finally, the Coast Guard is amending table 1 to Sec.  67.550 to 
reflect the appropriate fee for a 5-year recreational endorsement, and 
the fees associated with the owner choosing to have a certificate 
issued or renewed for 1, 2, 3,

[[Page 5024]]

4, or 5 years from January 1, 2019, to December 31, 2021.

V. Regulatory Analyses

    We developed this final rule to reflect current law, in accordance 
with numerous statutes and Executive orders related to rulemaking. 
Below, we summarize our analyses based on these statutes or Executive 
orders.

A. Regulatory Planning and Review

    Executive Orders 12866 (Regulatory Planning and Review) and 13563 
(Improving Regulation and Regulatory Review) direct agencies to assess 
the costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, of reducing costs, of harmonizing rules, and of promoting 
flexibility. Executive Order 13771 (Reducing Regulation and Controlling 
Regulatory Costs) directs agencies to reduce regulation and control 
regulatory costs and provides that ``for every one new regulation 
issued, at least two prior regulations be identified for elimination, 
and that the cost of planned regulations be prudently managed and 
controlled through a budgeting process.''
    The Office of Management and Budget (OMB) has not designated this 
rule a ``significant regulatory action'' under section 3(f) of 
Executive Order 12866. Accordingly, 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 final 
rule can be found in the rule's regulatory analysis (RA) that follows.
    Following guidance in OMB Circular A-4, we assess the impacts of 
this rule against a no-action baseline as well as a pre-statutory 
baseline. The no-action baseline is an assessment against what the 
world would be like if the rule is not adopted. The pre-statutory 
baseline is an assessment against what the world would be like if the 
relevant statute had not been adopted.
    This final rule will codify requirements in the 2018 Act that 
established a new schedule for the renewal of CODs for owners of 
recreational vessels of at least 5 net tons. Since the final rule does 
not add any new requirements beyond what is already required and 
implemented under the 2018 Act, under a no-action baseline, its total 
impacts on costs, cost savings, and benefits is zero.
    We also present impacts of the final rule based on a pre-statutory 
baseline. In other words, in the analysis that follows, we present the 
impacts of the 2018 Act by comparing the requirements of this rule to a 
baseline prior to implementation of the 2018 Act.
Summary of Impacts (Pre-Statutory Baseline)
    Prior to the 2018 Act, CODs were effective for one year. The 2018 
Act, codified by this rule, creates savings due to a reduction in the 
time necessary for the submission and approval of COD renewals. We 
anticipate that approximately 165,309 recreational vessel owners will 
be affected annually. In addition, the Government will be affected 
because the number of annual renewals the Coast Guard processes will 
decline. We estimate that the industry for recreational vessel owners 
of vessels of at least 5 net tons will see a savings of $696,727 
annualized over 10 years, and the Coast Guard will reduce spending on 
administrating COD renewals by an annualized amount of approximately 
$997,345. Both cost savings are in $2018, discounted at 7 percent. We 
estimate the annualized cost savings to industry and the Government 
combined to be approximately $1.7 million, discounted at 7 percent.
    Table 1 presents a summary of the economic impacts. We provide a 
detailed description of the estimates in the next section of this 
analysis.

                                     Table 1--Summary of the Economic Impact
                                            [Pre-statutory baseline]
----------------------------------------------------------------------------------------------------------------
                                      Affected
          Description                population            Cost           Cost savings           Benefits
----------------------------------------------------------------------------------------------------------------
Require owners of recreational   Estimated average  The 2018 Act will  The affected       The restructuring of
 vessels of at least 5 net tons   annual             not impose any     industry will      CODs from an annual
 to renew CODs every 5 years,     population over    cost burden on     see a 10-year      renewal to a 5-year
 thereby making CODs effective    a 10-year period   industry.          annualized         renewal period will
 for a 5-year term instead of a   of analysis of                        savings of         reduce the industry's
 1-year term.                     owners of                             $696,727. In       annual time burden
                                  recreational                          addition, the      for submitting COD
                                  vessels affected                      government will    applications. In
                                  by the 2018 Act                       see a 10-year      addition, the
                                  (and codified by                      annualized         Government will
                                  this regulation)                      savings of         benefit due to a
                                  is 165,309                            $997,345; both     reduction in the
                                  vessels.                              estimates are      amount of
                                                                        discounted at 7    applications
                                                                        percent.           processed annually.
Vessel owners are currently      Recreational       No cost. This is   There are no       There are no benefits
 required to update changes       vessel owners      clarifying a       savings            associated with this
 that impact information          impacted by the    requirement to     associated with    provision, other than
 attested to on the COD. Since    2018 Act would     keep COD           this provision.    clarifying when
 the 2018 Act requires renewal    be affected by     information                           changes to COD
 every 5 years instead of         the provision in   current and will                      information must be
 annually, a provision within     Sec.   67.319 of   not impose any                        addressed.
 this final rule is clarifying    this final rule.   cost burden.
 that owners need to amend any
 changes to CODs within 30 days
 of said changes occurring.
The fee schedule in Table 1 in   The affected       No cost. This      No savings. This   There are no benefits
 Sec.   67.550 provides owners    population is      clarifies          is clarification   associated with the
 with information about the       those owners       information        only.              updated table. It is
 applicable fees for obtaining    under 46 CFR       about the fees                        updating the cost
 the CODs for their vessels.      part 67, subpart   associated with                       schedule to account
                                  Y.                 CODs.                                 for the change to a 5-
                                                                                           year renewal.
----------------------------------------------------------------------------------------------------------------

    The 2018 Act requires owners of recreational vessels of at least 5 
net tons to renew their CODs every 5 years. Owners were to begin phase-
in starting January 1 of 2019.
Population
    We estimate that there are an average of 162,647 recreational 
vessels in

[[Page 5025]]

service in a given year that have a COD. The certification and 
documentation of recreational vessels comes with rights as well as 
responsibilities that entitle vessel owners the protection under the 
U.S. flag.
    There are two reasons for documenting a recreational vessel. The 
first reason is voluntary, for qualified recreational vessels that are 
at least 5 net tons, thereby granting them protection under the U.S. 
flag. The second reason is to satisfy mortgage lender requirements.
    Documenting recreational vessels occurs according to five criteria:
    (1) As a result of the initial documentation of a newly produced 
vessel (not documented);
    (2) As a result of the initial documentation of a newly acquired 
existing vessel, not previously documented;
    (3) As an exchange of the vessel from one party to another;
    (4) As a reinstatement or replacement of a vessel; or
    (5) As a return to documentation of a vessel.
    The data used to formulate the affected population is provided by 
the Coast Guard's National Vessel Documentation Center (NVDC), which is 
the approving authority for the issuance of CODs. The NVDC provides 
CODs according to the criteria presented above. The information we 
present in this analysis uses NVDC data for the affected population 
over a 5-year period, from 2013 to 2017.\5\ Based on this data, we 
estimate the average existing number of owners obtaining CODs in a 
given year to be 162,309, of which 7,402 (or 4.6 percent) are initial 
CODs. We assume this is the number of CODs that would have been renewed 
annually in the absence of the 2018 Act.
---------------------------------------------------------------------------

    \5\ Information pertaining to the historical data can be found 
in the Appendix, under the supporting documents in the docket, where 
indicated in the ADDRESSES portion of the preamble. The data for 
2013 to 2017 is as follows: 171,293; 160,669; 156,552; 155,221; 
167,810.
---------------------------------------------------------------------------

    To estimate the number of CODs for new vessels entering into use 
each year, we use the NVDC data to estimate the number of new owners 
requesting initial CODs as a percent of total CODs. We base our 
estimate on 4.6 percent, as this represents the average increase of 
CODs (7,402 [average number of initial CODs] divided by 162,309 
[average total number of CODs]).
    The number of new vessels entering into use will vary slightly 
every year. However, based on historical data, we can expect their 
average annual rate to converge to a steady figure. Assuming this 
subset (new vessel CODs) of initial CODs is, on average, consistent 
with the average increase of the total COD population (4.6 percent 
annually), we can then assume that, on an annual basis, 338 new vessels 
owners will request CODs each year (7,402 average initial CODs 
multiplied by 4.6 percent). We then add 338 to 162,309 to obtain 
162,647, the average total population of CODs. We use this total 
population estimate to derive the number of CODs that will not need to 
renew as a result of the 2018 Act (which is codified by this 
regulation). As is presented in the cost savings section below, this 
annual estimate varies per year according to the five different annual 
certification criteria and the 3-year phase-in period.
Cost Savings
Industry Assessment
    As a result of the 2018 Act, the Coast Guard will no longer require 
owners of recreational vessels to renew their CODs annually. Therefore, 
the 2018 Act will not impose any cost; only cost savings will be 
realized by the affected population.
    As of January 1, 2019, owners have been able to select a renewal 
period of multiple years, up to a limit of 5 years. This cost savings 
assessment outlines the Coast Guard's anticipated industry adaptation 
of moving to a 5-year renewal period.
    The 2018 Act provides that vessel owners will have 3 years 
(starting January 1, 2019 and ending December 31, 2021) to select a 
timeframe for COD renewal that does not exceed 5 years. Hence, vessel 
owners can choose any timeframe from 1 to 5 years during this 3-year 
period. Beginning January 1, 2022, all recreational CODs will be 
renewed with a validity period of 5 years. Therefore, in order to 
formulate the best approximation of how owners will select their 
renewal periods during the phase-in period, we make the assumption that 
equal portions of the affected population selected a renewal period of 
1 to 5 years in 2019.
    Since the Coast Guard is unable to determine individual preferences 
regarding how owners will choose a renewal term during the phase-in 
period, our methodology anticipates cost savings throughout a 10-year 
period of analysis (2019-2028).\6\ We begin by acknowledging that all 
active CODs had to be renewed in 2019. Therefore, when renewing or 
receiving an initial COD in 2019, all made a decision as to when they 
would renew their next COD. Accordingly, for the first year of the 10-
year assessment period, 2019, no one within the affected population 
received any savings.\7\ Therefore, savings begin in 2020.
---------------------------------------------------------------------------

    \6\ The Coast Guard has collected 2019 data about the behavior 
of owners towards selecting a new renewal period. However, the data 
was too incomplete to formulate an accurate representation of the 
affected population's choices in that year. In addition, because 
2019 is the only year for which the Coast Guard has information, 
this data does not provide enough information (statistically) to 
develop a trend analysis to project actual changes in behavior. 
Therefore, we have elected to proceed with analyzing this regulatory 
assessment by equally dividing the affected population over a 5-year 
period, resulting in 80% of the annual population not renewing their 
CODs in a given year.
    \7\ Further information can be found in the Appendix, under 
supporting documents in the docket, where indicated in the ADDRESSES 
portion of the preamble.

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

[[Page 5026]]

    To conduct this assessment, we create five subcategories (divided 
equally) of the affected population, and assign each category a 
specific year for renewal. Any owner who selects a timeframe for 
renewal greater than 2 years, or beyond 2021 (60 percent of the 
affected population), will have their follow-on renewals occurring 
every 5 years after their initial renewal choice. However, we assume 
that those who select a timeframe of 1 or 2 years (which we refer to as 
groups A and B), will not necessarily renew their CODs in 5 years. 
Since groups A and B have chosen the option of renewing in 1 or 2 
years, which falls within the phase-in period, they will be given 
another opportunity to select a renewal period of 1 to 5 years at the 
time of their renewal.\8\ Since groups A and B will, again, have the 
option of selecting a renewal period of 1 to 5 years, we again 
partition, within each group, equal portions of owners selecting 1 to 5 
years renewal. Once an individual in group A and B selects a renewal 
period that goes beyond 2021, their follow-up renewal will occur on a 
5-year renewal cycle. In Table 2 we present a summary outline as to how 
we estimate the number of non-renewals occurring during a 10-year 
period of analysis. Further details about how we estimated the number 
of renewals and avoided renewals can be found in the Appendix, under 
supporting documents in the docket, where indicated in the ADDRESSES 
portion of the preamble.
---------------------------------------------------------------------------

    \8\ Because we are unable to determine how or why owners make 
their financial decisions, we assume that groups A and B are not 
inclined to make a long-term commitment (beyond year 2021) due to 
projected or un-projected future financial plans. Therefore, we 
assume that short-term financial decisions will direct them to 
select a shorter term of 1 or 2 years. For the years following 2021, 
we assume renewals will be conducted every 5 years. For this 
illustrative analysis, we break down the renewals in equal annual 
portions over the five-year period. However, the Coast Guard 
recognizes that renewal numbers could vary over the 5-year period 
for several reasons, including the possibility the owners could get 
rid of their vessels prior to the renewal term.

                              Table 2--Summary of Potential Non-Renewing COD Population Over 10-Year Period of Analysis \9\
                                                                [Pre-statutory baseline]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                       Potential non-renewing population
                                                     ---------------------------------------------------------------------------------------------------
                                                             Phase-in period                                5-year renewal period
                                                     ---------------------------------------------------------------------------------------------------
                                                        2019      2020      2021      2022      2023      2024      2025      2026      2027      2028
--------------------------------------------------------------------------------------------------------------------------------------------------------
COD applications under the baseline (A).............   162,647   162,647   162,647   162,647   162,647   162,647   162,647   162,647   162,647   162,647
COD applications under the 2018 Act (B).............   162,647    32,867    39,441    47,329    47,329    47,329    14,800     8,226    47,667    47,667
Avoided COD applications (A-B)......................         0   129,780   123,206   115,317   115,317   115,317   147,846   154,421   114,978   114,979
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Values may not add due to rounding.

    The summary in Table 2 provides an approach as to how industry may 
react to the changes in the renewal process. In addition, it provides 
the affected population, which serves as a basis for cost savings 
throughout the 10-year period of analysis.
---------------------------------------------------------------------------

    \9\ An expanded population matrix appears in the appendix, which 
can be found in the supporting documents in the docket, where 
indicated under the ADDRESSES portion of this preamble.
---------------------------------------------------------------------------

    All savings realized will be administrative, from the perspective 
of vessel owners and the Government. Because the 2018 Act changed 
annual renewals to a 5-year renewal period, owners will spend less time 
submitting paperwork for renewing their CODs. In addition to the 
savings that owners will receive, the industry as a whole will see a 
reduction in paperwork (see Paperwork Reduction Act in section V. D of 
the preamble to this final rule).
    In order to obtain a wage rate for our calculations, to determine 
the amount of savings incurred by this rulemaking, we first identify 
the individual(s) who submit the renewal form (CG-1280) to the Coast 
Guard. Using the 2018 wage rate data from the Bureau of Labor 
Statistics (BLS) website, we obtain the employee wage that most 
resembles the persons tasked with renewing CODs as Transportation 
Employment, Storage and Distribution Managers (OES code 11-3071). The 
mean hourly wage rate associated with this profession, as reported by 
BLS, is $49.45 per hour.\10\ In order to account for employee benefits, 
we apply a load factor to the mean hourly wage rate. We calculate the 
load factor from BLS's Employer Cost for Employee Compensation survey 
and apply it to the mean hourly wage rate to obtain a fully loaded wage 
rate, which more accurately represents the employers' cost per hour for 
employees' work.\11\ The load factor we used for this economic 
assessment is 1.52.\12\ The loaded mean hourly wage rate we used to 
assess the savings estimates is calculated at $75.16 ($49.45 multiplied 
by 1.52).
---------------------------------------------------------------------------

    \10\ Information about the wage rates for Transportation, 
Storage and Distribution Managers (11-3071) can be found at https://www.bls.gov/oes/2018/may/oes113071.htm.
    \11\ A loaded wage rate is what a company pays per hour to 
employ a person, not the hourly wage the employee receives. The 
loaded wage rate includes the cost of benefits (health insurance, 
vacation, etc.).
    \12\ From the BLS, Employer Cost for Employee Compensation 
survey. The load factor for wages is calculated by dividing total 
compensation by wages and salaries. For this report, we used the 
Transportation and Materials Moving Occupations, Private Industry 
report (Series IDs, CMU2010000520000D and CMU2020000520000D for 
Total Compensation and Wages and Salaries, respectively, not 
seasonally adjusted) for all workers using the multi-screen data 
search. Using 2018 4th quarter data, we divide $29.53/$19.42 to 
obtain a load factor of 1.52. See https://data.bls.gov/cgi-bin/dsrv?cm.
---------------------------------------------------------------------------

    From the Supporting Statement for Vessels Documentation collection 
of information (OMB Control No. 1625-0027), we obtain the amount of 
time (or time burden) necessary for filling out the renewal 
documentation as 5 minutes. Applicants may submit the renewal form CG 
1280 through regular postal service or through the internet. For the 
proportion of those submitting form CG-1280 through the internet, 
annual renewal is about 28 percent \13\ of the affected population, 
while the remaining 72 percent continue utilizing the postal service 
for their submissions. We estimate that the cost of submitting a 
renewal form via postal service is 0.55 cents (the cost of a first-
class postage stamp), while those who submit the form through the 
internet incur no additional mailing costs. There are no associated 
savings with submitting the form online, as we assume that for those 
choosing that method, internet service is an established part of 
business operations.
---------------------------------------------------------------------------

    \13\ The NVDC provided their assessment on renewal submissions 
that will be received via internet.

[[Page 5027]]



          Table 3--Summary of Values Used To Formulate Savings
                        [Pre-statutory baseline]
------------------------------------------------------------------------
                                       Burden hours        HR equivalent
------------------------------------------------------------------------
From collection of information.  5 Min..................            0.08
YR-2018........................  Hourly Wage............          $49.45
                                 Load Rate..............            1.52
                                 Total Wage Rate........          $75.16
                                 Submission Cost........        ** $0.55
                                 Percent of Submission..            100%
                                 Letter Carrier.........             72%
                                 Via Internet...........             28%
------------------------------------------------------------------------
** This cost is only associated with submission of the renewal
  documentation via letter carrier.

    We estimate the savings of this 10-year assessment by combining the 
information found in Tables 2 and 3. From Table 2, we anticipate how 
industry will react to changes in the certification renewal process. 
Therefore, the calculations for determining savings are as follows: 
Since the number of affected population throughout the 10-year 
assessment is not uniform, we utilize a sample year to explain how we 
obtain savings. From table 2, we use the year 2024 as an example. We 
estimate the number of the affected population for 2024 not renewing 
their CODs to be about 115,317. The amount of cost savings associated 
with not having to fill out the request for certification, per person, 
is estimated at $6.01 ($75.16 loaded wage rate multiplied by 0.08 time 
burden associated with filling out documentation). Multiplying the 
affected population in 2024 by the potential savings of $6.01 due to 
the reduction in time burden results in administrative savings for that 
year of $693,061. We then account for the cost of submitting the 
application, at $0.55 for 72 percent of the population in that year, 
adding an additional cost savings of about $45,666 (72 percent of 
115,317 [the affected population in 2024] equals 83,029 multiplied by 
$0.55 [the cost of a first-class stamp]). The resulting total cost 
savings for year 2024 is approximately $738,723 (non-discounted). Table 
4 provides a 10-year summary of cost savings that industry will 
realize.

                    Table 4--Summary of 10-Year Assessment of Industry Cost Savings, in $2018
                                            [Pre-statutory baseline]
----------------------------------------------------------------------------------------------------------------
                                                                Cost savings non-  Cost savings    Cost savings
                             Year                                  discounted      discounted 3%   discounted 7%
----------------------------------------------------------------------------------------------------------------
2019..........................................................              No savings in first year
                                                               -------------------------------------------------
2020..........................................................          $831,371        $783,647        $726,151
2021..........................................................           789,251         722,277         644,264
2022..........................................................           738,721         656,344         563,566
2023..........................................................           738,723         637,229         526,700
2024..........................................................           738,723         618,669         492,243
2025..........................................................           947,104         770,082         589,809
2026..........................................................           989,211         780,892         575,730
2027..........................................................           736,549         564,504         400,634
2028..........................................................           736,558         548,069         374,429
                                                               -------------------------------------------------
    Total.....................................................         7,246,212       6,081,712       4,893,526
----------------------------------------------------------------------------------------------------------------
    Annualized................................................  ................         712,962         696,727
----------------------------------------------------------------------------------------------------------------
Note: Values may not add due to rounding.

    Summarizing Table 4, we note that industry will not incur any cost 
savings during the first year of our assessment, since the entire 
affected population had to renew in 2019 and, in that year, make a 
determination regarding their next renewal date.\14\ However, after the 
first year, industry will begin to realize savings due to the extended 
renewal period provided by the 2018 Act. We estimate that the total 10-
year savings is $4.9 million, and the annualized savings is $0.697 
million, both discounted at 7 percent.
---------------------------------------------------------------------------

    \14\ In 2019, all CODs were still affected by pre-mandated 
regulations, which means all CODs were renewed. For more information 
on the distribution of the population, please see the Appendix in 
the docket.
---------------------------------------------------------------------------

Government Assessment
    The 2018 Act also affects the Federal government by reducing the 
amount of renewal applications it will process in a given year. The 
anticipated reduction in the administration of renewal applications is 
correlated to the anticipated reduction in the number of the affected 
population renewing their CODs in a given year. The Government's 
reduction in approved certification will follow the data found in Table 
2.
    The COD approval is a two-phase process, in which the Government 
initiates, as a courtesy, the renewal process, and then, in the 
processing phase, issues the CODs to vessel owners. The first phase, 
initiating a request for vessel owners to renew their annual CODs, is 
accomplished by sending CG-1280 Vessel Renewal Notification Application 
for Renewal mailers to vessel owners approximately 45 days prior to the 
expiration date of their current CODs. The first step of this phase is 
to determine who is eligible for renewal and to remind current COD 
holders that their COD is expiring

[[Page 5028]]

within 45 days. Once that is accomplished, all material relating to 
renewal notices, to include metered mail, is processed and sent to 
vessel owners. In the second step, the Government receives the 
application packet from owners, which is reviewed and approved prior to 
issuance of the COD.
    The Government employees assigned the duties of initiating renewal 
notices are classified as GS-5 and GS-7-employees. Subject matter 
experts (SMEs) estimate the individual cost of sending a renewal notice 
at approximately $3.05.\15\ To estimate the annual reduction in cost to 
the Government, we multiply the individual cost of annual notifications 
by the number of vessel owners not submitting annual renewals in a 
given year. Table 5 shows the estimated cost savings, per year, that 
the Government will realize from a reduction in the annual number of 
notifications sent out to owners of recreational vessels.
---------------------------------------------------------------------------

    \15\ The NVDC provided the information pertaining to government 
expenditure from a draft study they commissioned through an 
independent third party. At the time of publishing this assessment, 
the document has not been made available to the public.

  Table 5--Estimated Government Savings for Initiating COD Renewals in
                                  $2018
                        [Pre-statutory baseline]
------------------------------------------------------------------------
                                           Estimated       Government
                 Year                    reduction in     savings  non-
                                         applications      discounted
------------------------------------------------------------------------
2019..................................               0                 0
2020..................................         129,780          $395,829
2021..................................         123,205           375,775
2022..................................         115,317           351,717
2023..................................         115,317           351,718
2024..................................         115,317           351,718
2025..................................         147,846           450,932
2026..................................         154,419           470,979
2027..................................         114,978           350,683
2028..................................         114,979           350,687
                                       ---------------------------------
  Total...............................  ..............         3,450,039
------------------------------------------------------------------------
Note: Values may not add due to rounding.

    The second phase of the process involves the Government receiving 
the renewal applications from vessel owners, processing those 
applications, and then issuing the CODs. The Government employees 
responsible for reviewing the applications and granting CODs are also 
classified as GS-5 and GS-7 employees. According to data provided by 
the SME, it takes a GS-5 9 minutes to process a renewal application, at 
a cost of $5.40 per renewal.\16\ Additionally, it takes a GS-7 
approximately 1 minute to approve a COD, at a cost of $0.72 per renewal 
request.\17\ The individual cost of finalizing the renewal process, to 
include mailing the certificates, is estimated at $6.12 per 
renewal.\18\ The savings that the Government will realize from 
approving and issuing CODs will be the number of owners not submitting 
COD renewals in a given year. Table 6 shows the estimated savings, 
annually, that the Government will realize from a reduction in 
processing renewal applications.
---------------------------------------------------------------------------

    \16\ The NVDC provided the information pertaining to government 
expenditure from a draft study they commissioned from an independent 
third party. At the time of publishing this assessment, the document 
has not been made available to the public.
    \17\ Ibid.
    \18\ The estimated cost was obtained by combining the 
administrative cost of a Clerk 1, $5.40 ($.60 wage per minute 
multiplied by 9 minutes of administrative time), and a Clerk 2, $.72 
($.72 wage rate per minute multiplied by 1 minute of administrative 
time). Total administrative cost burden is $6.12 ($5.40 plus $.72) 
per applicant.

  Table 6--Estimated Government Saving for Processing and Granting COD
                            Renewals in $2018
                        [Pre-statutory baseline]
------------------------------------------------------------------------
                                           Estimated
                                         reduction in   Cost savings non-
                 Year                    applications      discounted
                                           received
------------------------------------------------------------------------
2019..................................               0                 0
2020..................................         129,780          $794,254
2021..................................         123,205           754,015
2022..................................         115,317           705,740
2023..................................         115,317           705,743
2024..................................         115,317           705,743
2025..................................         147,846           904,820
2026..................................         154,419           945,047
2027..................................         114,978           703,665
2028..................................         114,979           703,674
                                       ---------------------------------
  Total...............................  ..............         6,922,700
------------------------------------------------------------------------
Note: Values may not add due to rounding.

    We estimate the 10-year combined (initial phase and processing 
phase) cost savings that the Government will realize at $10,372,739 
(non-discounted). We estimate the total discounted cost savings at 
$7,004,938, and annualized cost savings of $997,345, both discounted at 
7 percent. Table 7 shows the total estimated Government cost savings 
over the 10-year period of analysis.

                            Table 7--Estimated Total Government Cost Saving, in $2018
                                            [Pre-statutory baseline]
----------------------------------------------------------------------------------------------------------------
                                                                 Non-discounted
                             Year                                 cost savings          3%              7%
----------------------------------------------------------------------------------------------------------------
2019..........................................................                No savings first year
                                                               -------------------------------------------------
2020..........................................................        $1,190,083      $1,121,766      $1,039,464
2021..........................................................         1,129,790       1,033,917         922,245
2022..........................................................         1,057,457         939,536         806,729
2023..........................................................         1,057,461         912,175         753,955
2024..........................................................         1,057,461         885,606         704,631
2025..........................................................         1,355,752       1,102,350         844,294
2026..........................................................         1,416,026       1,117,824         824,140
2027..........................................................         1,054,348         808,070         573,496
2028..........................................................         1,054,361      784,543.93         535,984
                                                               -------------------------------------------------
    Total.....................................................        10,372,739       8,705,792       7,004,938
----------------------------------------------------------------------------------------------------------------
    Annualized................................................  ................       1,020,584         997,345
----------------------------------------------------------------------------------------------------------------
Note: Values may not add due to rounding.


[[Page 5029]]

    The total 10-year combined (industry and Government) cost savings 
is estimated at $17,618,951, non-discounted, with an annualized savings 
of $1,694,073, discounted at 7 percent. Table 8 provides the total 
annual estimated cost savings that the Act will provide to the affected 
stakeholders.

                                      Table 8--Total Cost Savings in $2018
                                            [Pre-statutory baseline]
----------------------------------------------------------------------------------------------------------------
                                                   Vessel owners
                      Year                        not submitting   Cost savings         3%              7%
                                                     renewals
----------------------------------------------------------------------------------------------------------------
2019............................................                     No savings in first year
                                                 ---------------------------------------------------------------
2020............................................         129,780      $2,021,453      $1,905,414      $1,765,616
2021............................................         123,205       1,919,041       1,756,194       1,566,509
2022............................................         115,317       1,796,178       1,595,881       1,370,295
2023............................................         115,317       1,796,184       1,549,404       1,280,655
2024............................................         115,317       1,796,184       1,504,276       1,196,874
2025............................................         147,846       2,302,856       1,872,433       1,434,103
2026............................................         154,419       2,405,237       1,898,716       1,399,870
2027............................................         114,978       1,790,897       1,372,574         974,129
2028............................................         114,979       1,790,920       1,332,612         910,413
                                                 ---------------------------------------------------------------
    Total.......................................  ..............      17,618,951      14,787,504      11,898,463
----------------------------------------------------------------------------------------------------------------
    Annualized..................................  ..............  ..............       1,733,546       1,694,073
----------------------------------------------------------------------------------------------------------------
Note: Values may not add due to rounding.

    In addition to estimating the normal savings for this rule, we use 
the perpetual period of analysis for observing the long-term affect 
this assessment will have on the affected population. Therefore, we 
estimate the total annualized cost savings of the 2018 Act at $1.49 
million in 2016 dollars, using a 7-percent discount rate.
Final Rule Regulatory Impacts
    As previously stated, under a no-action baseline, this final rule 
produces no impact on the regulated industry. The rule is merely 
harmonizing current practices implemented by the 2018 Authorization Act 
with 46 CFR part 67. The impacts presented above are measured against a 
pre-statutory baseline and represent the result of the 2018 Act, which 
this rule codifies.
Alternatives
    The Coast Guard did not examine any alternatives for this final 
rule as this rule is mandated by Congress under the Coast Guard 
Authorization Act of 2018. The 2018 Act requires that Coast Guard issue 
recreational Certificates of Documentation with a validity of 5 years, 
thereby reducing the amount of annual reporting burden vessel owners 
incur each year. The Coast Guard is promulgating this rule to comply 
with statute and may not adopt a different renewal period or pursue any 
other alternatives.

B. Small Entities

    The term ``small entities'' comprises small businesses, not-for-
profit organizations that are independently owned and operated and are 
not dominant in their fields, and governmental jurisdictions with 
populations of less than 50,000. This rule is not preceded by a notice 
of proposed rulemaking and is, therefore, exempt from the requirements 
of the Regulatory Flexibility Act (5 U.S.C. 601-612). The Regulatory 
Flexibility Act does not apply when notice and comment rulemaking is 
not required.

C. Assistance for Small Entities

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

D. Collection of Information

    This final rule codifies the 2018 Act, which results in a change to 
an existing collection of information under the Paperwork Reduction Act 
of 1995, 44 U.S.C. 3501-3520. As defined in 5 CFR 1320.3(c), 
``collection of information'' comprises reporting, recordkeeping, 
monitoring, posting, labeling, and other similar actions. The title and 
description of the information 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: Vessel Documentation.
    OMB Control Number: 1625-0027.
    Summary of the Collection of Information: This final rule, by 
harmonizing with the 2018 Act, modifies the existing Certification of 
Documentation (COD) reporting and recordkeeping requirements in Sec.  
67.163(c), which will amend current reporting. The current regulation 
requires owners of recreational vessels of at least 5 net tons to renew 
their CODs annually. This final rule will codify current industry 
practice as of January 1, 2019 and will require

[[Page 5030]]

recreational vessel owners to convert from an annual renewal period to 
a 5-year renewal period.
    Need for Information: The information is being collected for two 
reasons: (1) The documenting of a U.S. vessel comes with rights as well 
as responsibilities, which entitle the vessel owners protection under 
the U.S. flag; (2) vessel documentation is a requirement in satisfying 
mortgage lender requirements.
    Proposed Use of Information: The collection of this information is 
maintained by the Coast Guard as a matter of record for identifying 
vessels that will be entitled to protection under U.S. flag. In 
addition, the certification of a vessel is an obligation to be 
performed by the vessel owners as part of a financial agreement they 
have entered into with a mortgage company.
    Description of the Respondents: The respondents are the owners of 
recreational vessels of at least 5 net tons that choose to document 
their vessels or are required to document their vessels due to 
financial obligations, which a financial institution may require when a 
borrower takes out a loan for the purchase of a vessel.
    Number of Respondents: The total number of respondents affected is 
estimated at 162,309, plus an estimated average of 338 new vessels 
obtaining CODs each year.
    Frequency of Response: The final rule codifies the 2018 Act that 
converts the annual renewal of CODs to a 5-year renewal, reducing the 
frequency of responses in any given year. From January 1, 2019 to 
December 31, 2021, owners are allowed to choose their 1 to 5-year 
renewal period. As of January 1, 2022, owners will only be allowed to 
apply for 5-year CODs. However, during the first year (2019), 100 
percent (162,647) of the affected population sought COD renewals for 
their vessels. From 2020 on, we take the anticipated annual 9-year 
average to estimate the potential reduction in frequency of responses 
required from this information collection request. Hence, we estimate 
the average number of responses annually will be reduced from 189,614 
to 63,930.
    Burden of Response: This final rule codifies the 2018 Act and, as a 
result, will reduce the burden of renewing annual CODs to a 5-year 
renewal period. Therefore, reduction in time for submitting renewal 
application forms will decrease by approximately 10,061 hours.
    Estimate of Total Annual Burden: The annual reduction in burden is 
estimated as follows:
    (a) Annual reduction in burden resulting from converting annual 
reporting requirement for recreational vessel of at least 5 net tons to 
a 5-year renewal period: The final rule codifies the 2018 Act that will 
reduce the number of CODs requested and approved annually. We estimate 
that it takes 5 min (0.08 equivalent hours) to send in a vessel 
documentation renewal. We estimate the total average annual burden or 
hour reduction for those vessel owners who will not be required to 
renew their documentation to be 10,054 hours (125,684 * 0.08 hours).
    (b) The total reduction in annual burden hours due to the 
conversion from an annual renewal to a 5-year renewal period: This 
final rule will result in an estimated average annual reduction in 
total burden hours in the collection of information from 11,373 to 
1,319.
    As required by 44 U.S.C. 3507(d), we will submit a copy of this 
final 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.

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.
    As explained in Sections II and III above, this rulemaking is 
needed to conform the regulations to the existing law as amended by the 
2018 Act. The 2018 Act requires the Coast Guard to issue CODs for 
recreational vessels with a period of validity of 5 years, following a 
phase-in period. The 2018 Act prescribes how the cost of the renewal of 
such a recreational endorsement must be calculated in both the phase-in 
period and thereafter. It also requires vessel owners to notify the 
Coast Guard of each change in the information on which the issuance of 
the COD for the vessel is based, before the expiration of the COD and 
no later than 30 days after the change. The 2018 Act also requires that 
a COD will terminate upon the expiration of the 30-day period if the 
owner has not notified the Coast Guard of changes within the 30-day 
timeframe.
    Documentation under chapter 121 of title 46, United States Code, 
including under 46 U.S.C. 12105 as amended by the 2018 Act (see 
amendments described in the preceding paragraph), is the means by which 
the Federal government allows a vessel to operate in certain trades, 
establishes vessel nationality, and enables a vessel to be subject to 
preferred mortgages. It is well settled that States may not regulate in 
categories reserved by Congress for regulation by the Coast Guard. It 
also is well settled that all the categories regulated under 46 U.S.C. 
2103, 3103, 3306, 3703, 4102, 4502, 7101, and 8101 (design, 
construction, alteration, repair, maintenance, operation, equipping, 
personnel qualification, and manning of vessels), as well as 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 implements changes made by Congress to the 
comprehensive federal vessel documentation requirements of 46 U.S.C. 
ch. 121, over which Congress clearly has granted the Coast Guard, via 
delegation from the Secretary, exclusive authority. Therefore, because 
the States may not regulate within this category, this rule is 
consistent with the fundamental federalism principles and preemption 
requirements described in Executive Order 13132.
    While it is well settled that States may not regulate in categories 
in which Congress intended the Coast Guard to be the sole source of a 
vessel's obligations, the Coast Guard recognizes the key role that 
State and local governments may have in making regulatory 
determinations. The Coast Guard values the input of State and local 
governments in such matters.

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

[[Page 5031]]

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

    The National Technology Transfer and Advancement Act, codified as a 
note to 15 U.S.C. 272, directs agencies to use voluntary consensus 
standards in their regulatory activities unless the agency provides 
Congress, through OMB, with an explanation of why using these standards 
would be inconsistent with applicable law or otherwise impractical. 
Voluntary consensus standards are technical standards (e.g., 
specifications of materials, performance, design, or operation; test 
methods; sampling procedures; and related management systems practices) 
that are developed or adopted by voluntary consensus standards bodies.
    This rule 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 on 
locating the docket, see the ADDRESSES section of this preamble. This 
rule is categorically excluded under paragraph L57 of Appendix A, Table 
1 of DHS Instruction Manual 023-01-001-01, Rev 1. Paragraph L56 
pertains to documentation of vessels. This rule involves extending the 
validity of a recreational vessel endorsement on a Certificate of 
Documentation.

List of Subjects in 46 CFR Part 67

    Reporting and recordkeeping requirements, Vessels.

    For the reasons discussed in the preamble, the Coast Guard amends 
46 CFR part 67 as follows:

PART 67--DOCUMENTATION OF VESSELS

0
1. The authority citation for part 67 continues to read as follows:

    Authority:  4 U.S.C. 664; 31 U.S.C. 9701; 42 U.S.C. 9118; 46 
U.S.C. 2103, 2104, 2107, 12102, 12103, 12104, 12105, 12106, 12113, 
12133, 12139; Department of Homeland Security Delegation No. 0170.1.

0
2. Amend Sec.  67.163 by:
0
a. Revising paragraph (a) introductory text;
0
b. Revising paragraph (b); and
0
c. Adding paragraph (c).
    The revisions and addition read as follows:


Sec.  67.163   Renewal of endorsement.

    (a) Requirement for renewal of endorsement. Endorsements on 
Certificates of Documentation are valid for 1 year, except for 
Recreational Endorsements on Certificates of Documentation, which are 
valid for 5 years. However, a Certificate of Documentation with a 
Recreational Endorsement and a Commercial Endorsement will only be 
valid for 1 year. Prior to the expiration of an endorsement, the owner 
of a vessel, which is not exempt from the requirement for documentation 
under paragraph (c) of Sec.  67.9, must apply for renewal of the 
endorsement(s) by complying with paragraph (b) of this section. The 
owner of a vessel exempt from the requirement for documentation under 
paragraph (c) of Sec.  67.9 must either:
* * * * *
    (b) Renewal application. The owner of a vessel must apply for 
renewal of each endorsement by executing an original Vessel Renewal 
Notification, Application for Renewal (CG-1280) certifying that the 
information contained in the Certificate of Documentation and any 
endorsement(s) thereon remains accurate, and that the Certificate has 
not been lost, mutilated, or wrongfully withheld. The completed CG-1280 
must be sent to the Director, National Vessel Documentation Center.
    (c) Requirement for renewal of recreational endorsements. A 
certificate of documentation for a recreational vessel and the renewal 
of such a certificate shall be effective for a 5-year period. During 
the period beginning January 1, 2019, and ending December 31, 2021, the 
owner of a recreational vessel may choose a period of effectiveness of 
1, 2, 3, 4, or 5 years for such a certificate of documentation for such 
vessel or the renewal thereof.


Sec.  67.317   [Amended]

0
3. In Sec.  67.317 amend paragraph (a) by adding, after the 
introductory phrase, ``Except as provided in paragraph (b) of this 
section,'' the text ``and except for recreational endorsements, which 
must be renewed every 5 years,''.

0
4. Revise Sec.  67.319 to read as follows:


Sec.  67.319  Requirement to report change in vessel status and 
surrender Certificate of Documentation.

    (a) The owner of a vessel must notify the Coast Guard of each 
change in the information on which the issuance of the Certificate of 
Documentation for the vessel is based that occurs before the expiration 
of the certificate under this subsection, by no later than 30 days 
after such change.
    (b) The Certificate of Documentation for a vessel is terminated 
upon the expiration of the 30-day period if the owner has not notified 
the Coast Guard of such change before the end of the period.


Sec.  67.515   [Amended]

0
5. In Sec.  67.515, remove the word ``annual''.

0
6. Revise Sec.  67.550 to read as follows:

[[Page 5032]]

Sec.  67.550   Fee table.

    The fees charged under subpart Y are as set forth in Table 1 to 
67.550.

                         Table 1 to 67.550--Fees
------------------------------------------------------------------------
           Activity                     Reference               Fee
------------------------------------------------------------------------
Applications:
    Initial Certificate of      Subpart K...............         $133.00
     Documentation.
    Exchange of Certificate of  ......do................           84.00
     Documentation.
    Return of vessel to         ......do................           84.00
     documentation.
    Replacement of lost or      ......do................           50.00
     mutilated Certificate of
     Documentation.
    Approval of exchange of     ......do................           24.00
     Certificate of
     Documentation requiring
     mortgagee consent.
    Trade endorsement(s):
        Coastwise endorsement.  Subpart B...............           29.00
        Coastwise Boaters       46 CFR part 68..........           29.00
         endorsement.
        Fishery endorsement...  ......do................           12.00
        Registry endorsement..  ......do................            none
        Recreational            ......do................  ..............
         endorsement.
        Recreational vessel     ........................          130.00
         endorsements (5-year).
        Through December 31,    ........................  ..............
         2021:.
            4-year              ........................          104.00
             recreational
             vessel
             endorsement.
            3-year              ........................           78.00
             recreational
             vessel
             endorsement.
            2-year              ........................           52.00
             recreational
             vessel
             endorsement.
            1-year              ........................           26.00
             recreational
             vessel
             endorsement.
------------------------------------------------------------------------
Note 1: When multiple trade endorsements are requested on the same
 application, the single highest applicable endorsement fee will be
 charged, resulting in a maximum endorsement fee of $29.00. This does
 not apply to recreational endorsements.
------------------------------------------------------------------------
    Evidence of deletion from   Subpart L...............           15.00
     documentation.
    Renewal fee...............  ......do................           26.00
        Commercial vessel       ......do................           26.00
         endorsements (annual).
        Recreational vessel     ........................          130.00
         endorsements (5-year).
        Through December 31,
         2021:
            4-year              ........................          104.00
             recreational
             vessel
             endorsement.
            3-year              ........................           78.00
             recreational
             vessel
             endorsement.
            2-year              ........................           52.00
             recreational
             vessel
             endorsement.
            1-year              ........................           26.00
             recreational
             vessel
             endorsement.
    Late renewal fee..........  ......do................        \1\ 5.00
Waivers:
    Original build evidence...  Subpart F...............           15.00
    Bill of sale eligible for   Subpart E...............           15.00
     filing and recording.
Miscellaneous applications:
    Wrecked vessel              Subpart J...............          555.00
     determination.
    New vessel determination..  Subpart M...............          166.00
    Rebuild determination--     ......do................          450.00
     preliminary or final.
Filing and recording:
    Bills of sale and           Subpart P...............        \2\ 8.00
     instruments in nature of
     bills of sale.
    Mortgages and related       Subpart Q...............        \2\ 4.00
     instruments.
    Notice of claim of lien     Subpart R...............        \2\ 8.00
     and related instruments.
Certificate of compliance:
    Certificate of compliance.  46 CFR part 68..........           55.00
Miscellaneous:
    Abstract of Title.........  Subpart T...............           25.00
    Certificate of ownership..  ......do................          125.00
        Attachment for each     ......do................           10.00
         additional vessel
         with same ownership
         and encumbrance data.
    Copy of instrument or       (\3\)...................           (\3\)
     document.
------------------------------------------------------------------------
\1\ Late renewal fee is in addition to the cost of the endorsement
  sought.
\2\ Per page.
\3\ Fees will be calculated in accordance with 6 CFR part 5, subpart A.


    Dated: January 8, 2021.
R.V. Timme,
Rear Admiral, U.S. Coast Guard,Assistant Commandant for Prevention 
Policy.
[FR Doc. 2021-00526 Filed 1-15-21; 8:45 am]
BILLING CODE 9110-04-P