[Federal Register Volume 88, Number 218 (Tuesday, November 14, 2023)]
[Rules and Regulations]
[Pages 77896-77902]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-25024]
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DEPARTMENT OF HOMELAND SECURITY
Coast Guard
46 CFR Part 67
[Docket No. USCG-2023-0305]
RIN 1625-AC87
Multi-Year Certificate of Documentation for Recreational Vessel
Owners
AGENCY: Coast Guard, DHS.
ACTION: Final rule.
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SUMMARY: The Coast Guard is issuing a final rule for recreational
vessel owners to select a recreational vessel endorsement on a
Certificate of Documentation (COD) with a validity of 1, 2, 3, 4, or 5
years. Currently, our regulations require that a COD will be effective
for a 5-year period. Congress passed, and the President signed, the
self-executing National Defense Authorization Act of 2022 (2022 Act),
which directs the Coast Guard to issue recreational vessel CODs for 1,
2, 3, 4, or 5 years. By updating the Code of Federal Regulations (CFR)
to reflect this change, this final rule harmonizes the requirements of
the 2022 Act, aligns CFR text with current Coast Guard policy, and
provides vessel owners' statutorily directed option to select the
validity period of their COD that best suits their individual needs.
DATES: This final rule is effective December 14, 2023.
ADDRESSES: To view documents mentioned in this preamble as being
available in the docket, go to www.regulations.gov, type USCG-2023-0305
in the search box, and click ``Search.'' Next, in the Document Type
column, select ``Supporting & Related Material.''
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
2021 final rule Certificate of Documentation--5 Year Renewal Fees
final rule
2022 Act National Defense Authorization Act for Fiscal Year 2022
CFR Code of Federal Regulations
COD Certificate of Documentation
DHS Department of Homeland Security
FR Federal Register
NPRM Notice of proposed rulemaking
NVDC 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 3511 of the
National Defense Authorization Act for Fiscal Year 2022 (Pub. L. 117-
81, 135 Stat. 2238) (2022 Act), which the President signed on December
27, 2021. The 2022 Act directed the Coast Guard to allow an owner of a
vessel with only a recreational endorsement to choose a Certificate of
Documentation (COD) validity period of 1, 2, 3, 4, or 5 years.
The Coast Guard finds that good cause exists under the
Administrative Procedure Act, Title 5 of the United States Code
(U.S.C.), Section 553, to issue a final rule and dispense with notice
and comment procedures. Prior notice and opportunity to comment on this
rule are unnecessary under 5 U.S.C. 553(b)(B) because Section 3511 of
the 2022 Act provides the Coast Guard no discretion in adopting the
specific timeframes for issuance or renewal of recreational vessel
CODs. Section 3511 of the 2022 Act does not allow for alternatives. It
does not permit the Coast Guard to decide upon a different timeframe
for renewal, choose to adopt a different renewal period, or respond to
public comments by modifying the substance of the rule. Therefore,
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. It should be
noted that the Coast Guard has already implemented the requirements of
Section 3511 of the
[[Page 77897]]
2022 Act and is presently issuing multi-year CODs to recreational
vessels of at least 5 net tons. In addition, this good cause applies to
formatting changes, for clarity, to the fee table in title 46 of the
Code of Federal Regulations (CFR) section 67.550. These changes have no
substantive effect on the public.
III. Background
Before 2019, the Coast Guard issued CODs for a validity period of 1
year only. Section 512 of the Frank LoBiondo Coast Guard Authorization
Act of 2018 (2018 Act) (Pub. L. 115-282, 132 Stat. 4275), codified at
46 U.S.C. 12105, specified that, in 2022, recreational vessels would be
issued CODs with a validity period of 5 years. The 2018 Act provided a
phase-in period, January 2019 through December 2021, during which
recreational vessel owners could select an effective period for CODs
for recreational vessels between 1 and 5 years.\1\ In January 2021, the
Coast Guard published a final rule titled ``Certificate of
Documentation--5 Year Renewal Fees'' (hereafter the ``2021 final
rule'') implementing those changes (86 FR 5022).\2\
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\1\ https://www.congress.gov/115/plaws/publ282/PLAW-115publ282.pdf (last visited 04/26/2023).
\2\ https://www.federalregister.gov/documents/2021/01/19/2021-00526/certificate-of-documentation-5-year-renewal-fees (last visited
04/26/2023).
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The purpose of this final rule is to meet the Congressional mandate
contained in Section 3511 of the 2022 Act, wherein Congress determined
that the Coast Guard shall allow the issuance of a recreational
endorsement on CODs with a validity period of 1, 2, 3, 4, or 5 years,
instead of the previously mandated period of 5 years.
IV. Discussion of the Rule
The 2022 Act authorizes the owner or operator of a recreational
vessel to choose a period of effectiveness between 1 and 5 years for a
certificate of documentation for a recreational vessel or the renewal
thereof. This rule will bring current Coast Guard regulations in line
with this self-executing provision of the 2022 Act. As discussed in
section III., Background, the 2018 Act created a multi-year COD phase-
in period in anticipation of moving to a 5-year-only validity period
for recreational vessel CODs. This 5-year-only COD validity period was
anticipated to go into effect on January 1, 2022. However, Congress
determined that preserving a multi-year choice of the validity period
was in the best interest of recreational vessel owners. As such, the
2022 Act was signed by the President in December 2021, and the 5-year-
only COD that was to go into effect on January 1, 2022, was never
implemented by the Coast Guard. Instead, the Coast Guard carried out
Congress' desire to continue to allow recreational vessel owners and
operators the ability to choose a 1-, 2-, 3-, 4-, or 5-year COD.
The Coast Guard made the public aware of this fact on the home page
of the website for the National Vessel Documentation Center (NVDC),
which processes vessel COD applications and renewals.\3\ Additionally,
the ability to select from multiple validity periods for recreational
vessel CODs is still present in NVDC instruction documentation,\4\ the
initial application form CG-1258,\5\ and the renewal form CG-1280.\6\
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\3\ https://www.dco.uscg.mil/Our-Organization/Deputy-for-Operations-Policy-and-Capabilities-DCO-D/National-Vessel-Documentation-Center/ (last visited 04/26/2023).
\4\ https://www.dco.uscg.mil/Portals/9/DCO%20Documents/NVDC/COD%20RENEWAL.pdf (last visited 04/23/2023).
\5\ https://www.dco.uscg.mil/Portals/9/DCO%20Documents/NVDC/CG-1258.pdf?ver=MPJjdit5LaS5B0_IFJv_1A%3d%3d (last visited 04/26/2023).
\6\ https://www.dco.uscg.mil/Portals/9/DCO%20Documents/NVDC/CG-1280_Renewal_of_Certificate_Of_Documentation.pdf?ver=WPHaCWFat5gjwLZ4nFiplA%3d%3d (last visited 04/23/2023).
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Currently, 46 CFR 67.163(a) states that recreational endorsements
on a COD are valid for 5 years. In line with the 2022 Act, the Coast
Guard amends this section to reflect that recreational endorsements on
CODs can be valid for 1, 2, 3, 4, or 5 years. Additionally, the Coast
Guard is editing paragraph (c) of Sec. 67.163 to reflect that
recreational endorsements on CODs can be valid for 1, 2, 3, 4, or 5
years. This is necessary for continuity, given the references to this
section. The Coast Guard is also amending 46 CFR 67.163(b) to remove
the word ``original'', as ``original'' is not relevant when referring
to the CG-1280 Vessel Renewal Notification Application for Renewal.
Furthermore, the Coast Guard amends Sec. 67.317 to reflect that
recreational endorsements can be renewed for 1, 2, 3, 4, or 5 years.
This amendment is necessary to ensure consistency with regulatory text
in this section.
Lastly, the Coast Guard revises Table 1 to Sec. 67.550. As
recreational vessel CODs will continue to have a multi-year validity
period, this change is necessary to reflect both the 2022 Act and the
supporting regulatory text for this section. We deleted occurrences of
``through December 31, 2021'' as it references a phase-in period that
has passed. Other formatting updates include separating commercial and
recreational applications into two categories, moving notes to the end
of the table, adding dollar signs in the ``Fee'' column, and deleting
the ``Reference'' column as it is not used to calculate the fee
amounts. The revised table layout will make it easier to distinguish
application fees for commercial vessels from those for recreational
vessels. It will also match the table of fees available to the public
on NVDC's website. These changes are merely editorial in nature and
will not change fee amounts or make any other substantive changes.
V. Regulatory Analyses
We developed this rule after considering numerous statutes and
Executive orders related to the 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), as amended
by Executive Order 14094 (Modernizing Regulatory 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.
The Office of Management and Budget (OMB) has not designated this
rule a significant regulatory action under section 3(f) of Executive
Order 12866, as amended by Executive Order 14094. Accordingly, OMB has
not reviewed this regulatory action. A regulatory analysis follows.
Background
As discussed in section III., Background, the 2018 Act allowed for
a phase-in period of 1, 2, 3, 4, or 5 years for CODs, but would have
required strictly 5-year CODs as of January 1, 2022. However, in
December of 2021, Congress passed the 2022 Act, which instructed the
Coast Guard to amend the 2021 final rule to reflect a continuation of
multi-year issuance for recreational vessel CODs; this effectively
removed the strict 5-year COD requirement that was established under
the 2018 Act and was codified under the 2021 final rule.
[[Page 77898]]
The Coast Guard Authorization Act of 2018 and the 2021 Final Rule
As previously discussed, the 2018 Act and the 2021 final rule would
have provided COD holders with recreational endorsements the ability to
request or renew documentation on a multi-year basis between 2019 and
2021. Beginning in January of 2022, according to the 2021 final rule,
COD holders with recreational endorsements could have only requested or
renew documentation for a period of 5 years. To provide clarity and
assist in the discussion of the impacts of this final rule, a summary
of the economic impacts for the 2021 final rule follows:
Table 1--Applicability, Impact and Costs or Cost-Savings of the 2021
Final Rule
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Category Summary
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Applicability................ To reflect regulatory changes brought by
the 2018 Act (Pub. L. 115-282), which
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.
Affected Population.......... 162,647 vessels.
Benefits..................... The restructuring of CODs from an annual
renewal to a 5-year renewal period would
have reduced industry's annual time
burden for submitting CODs applications.
In addition, the Government would have
benefited due to a reduction in the
number of applications processed
annually.
Cost savings (in 2022 Estimated annualized cost-savings of
dollars, 7% discount rate) *. about $5.9 million to Industry at 7-
percent discount rate.
Federal Government annualized cost-
savings of about $8.4 million at 7-
percent discount rate.
Total annualized cost-savings of about
$14.3 million.
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* Totals may not add due to rounding.
2022 Act
The primary purpose of this final rule is to harmonize 46 CFR part
67 with current statutory requirements under the 2022 Act, as it
pertains to recreational vessel owners who seek CODs on a multi-year
basis. In effect, this final rule continues the phase-in period
provision specified under the 2018 Act and the 2021 final rule, while
removing the 5-year-only COD requirement from the CFR. As such, the
impacts provided below are the result of the 2022 Act. We provide two
tables that capture the changes in the CFR and economic impacts from
the 2022 Act. Table 2 below presents the baseline matrix, which lists
the changes between this final rule and the current language under the
CFR, while table 5 summarizes the applicability, impact, costs or cost-
savings, and benefits associated to the 2022 Act.
Table 2--Baseline Matrix--Changes Between This Multiyear Final Rule and the 2021 Final Rule
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Subpart Description of change Type of change Economic impact
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67.163(a).............. Adds ``1, 2, 3, 4, or'' to Editorial....................... No economic impact.
the first paragraph (a).
67.163(b).............. Removes ``an original'' from Editorial....................... No economic impact.
the second paragraph (b).
67.163(c).............. Replaces ``A certificate of Editorial/Economic.............. An estimated cost-
documentation for a savings to the public
recreational vessel and the of $8.3 million
renewal of such a annually in 2022 U.S.
certificate shall be dollars, discounted at
effective for a 5-year 7-percent.
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'' with ``A
Certificate of
Documentation for a
recreational vessel and the
renewal of such a
certificate will be
effective for 1, 2, 3, 4,
or 5 years for such a
Certificate of
Documentation for such
vessel or the renewal
thereof''.
67.317(a).............. Replaces ``must'' with Editorial....................... No economic impact.
``can'' from the first
paragraph (a).
67.317(a).............. Adds ``for a period of '' Editorial....................... No economic impact.
within the first paragraph
(a).
67.317(a).............. Removes ``every'' from the Editorial....................... No economic impact.
first paragraph (a).
67.317(a).............. Adds ``for a period of 1, 2, Editorial....................... No economic impact.
3, 4, or'' to the first
paragraph (a).
67.550................. Table 1 to 67.550 replaced Editorial....................... No economic impact.
with revised version,
editorial changes only to
harmonize with Fee Table
from NVDC website.
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Final Rule Costs
The fundamental purpose of this final rule is to codify the 2022
Act; therefore, this final rule does not add any new costs to the
Government or the public, nor does it impose any new burden to either
entity.
Final Rule Benefits
By amending current language in the CFR to reflect the provisions
and requirements specified under the 2022 Act, the Coast Guard
harmonizes 46 CFR part 67 with the 2022 Act. Confusion regarding the
validity period for a recreational vessel COD will be eliminated, as
the CFR will accurately reflect the law and NVDC policy. See table 3
below for a summary of impacts of this final rule.
[[Page 77899]]
Table 3--Applicability, Impact and Costs or Cost-Savings of the 2022 Act
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Affected
Description population Costs Cost-savings Benefits
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The Coast Guard chooses to adopt 38,927 This final rule This final rule The harmonization
this final rule and continue to recreational will not impose will yield an in language
allow COD documentation for 1, vessels owners any new costs to estimated cost- between the CFR
2, 3, 4, or 5 years at vessel and operators of Government or the savings to the and the 2022 Act
owners' discretion. at least 5 net public. public of $8.3 eliminates
The CFR is amended to reflect tons who were million annually confusion among
current statutory language and issued or renewed in 2022 U.S. the public or any
practice. CODs for 5 years dollars, potentially
in 2022. discounted at 7%, affected entity.
by removing the 5-
year only COD
restriction.
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Affected Population
To determine the affected population for the 2022 Act and this
final rule, it is helpful to first understand the distribution of
multi-year CODs that vessel owners have been selecting. As noted in
section III., Background, the NVDC has continued to offer multi-year
COD expiration dates, which is in line with the 2022 Act. We obtained
data from the NVDC, which processes vessel COD applications and
renewals. As seen in table 4 below, this data consists of the number of
CODs issued each year from 2019 to 2022. Table 6 also displays the
validity period of CODs issued during this timeframe, ranging from 1,
2, 3, 4, or 5 years. For example, in 2019, the Coast Guard issued
165,599 recreational vessel CODs, of which the vast majority, 153,195,
were 1-year CODs, 6,447 were 2-year CODs, 1,398 were 3-year CODs, and
so on. We can use this information to track the pattern of consumer
choices regarding the multi-year COD options.
Table 4--Cross-Tabulation of Recreational Vessel CODs Issued by Year and Validity Period
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Total CODs 1 Year 2 Years 3 Years 4 Years 5 Years
Year issued validity validity validity validity validity
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2019.............................. 165,599 153,195 6,447 1,398 665 3,894
2020.............................. 163,771 148,491 7,497 1,617 632 5,534
2021.............................. 158,610 127,851 13,184 3,927 1,768 11,880
2022.............................. 143,944 81,776 6,942 2,398 2,021 50,807
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We note from table 4 that, as we progress from 2019 to 2022, the
number of 2,- 3,- and 4-year CODs remains relatively stable and only
accounts for a small percentage of total recreational vessel CODs
issued each year. We assume that vessel owners selected these duration
terms for their CODs because they determined that this was their best
and preferred choice. However, this trend does not hold for 1-year and
5-year CODs. We note that, from 2019 to 2022, the trend shifts
significantly away from 1-year CODs and increases significantly to 5-
year CODs. According to subject matter experts (SMEs), the nearly 5-
fold increase in CODs issued with a validity period of 5 years in 2022
can be attributed to 46 CFR 67.163, Renewal of endorsement, paragraph
(a), which states the COD validity period for recreational vessels to
be 5 years: ``Endorsements on Certificates of Documentation are valid
for 1 year, except for Recreational Endorsements on Certificates of
Documentation, which are valid for 5 years.''
The Coast Guard was mandated by the 2018 Act to implement a 5-year
COD for recreational vessel owners, followed by a 3-year, multi-year
COD phase-in period. The 2022 Act mandated that the Coast Guard
continue to offer the multi-year COD. Therefore, our estimated affected
population is calculated as the difference in CODs issued to
recreational vessel owners and operators in 2022 with a validity period
of 5 years, and the number of CODs issued in 2021 with the same
validity period, which totals 38,927 (50,807-11,880 = 38,927). This is
the estimate of recreational vessel owners who could transition off a
5-year validity period for recreational vessel CODs once this final
rule is implemented.
2022 Act Costs
The 2022 Act does not add any new cost to Government or the public.
None of the requirements of the 2022 Act imposes any additional
burdens. From a renewal standpoint, recreational vessel owners continue
to have the choice to renew on a multi-year basis at their discretion,
consistent with the 2018 Act. The Coast Guard is not amending user fees
associated with CODs and is continuing with the $26 fee per validity-
year for the COD as previously established.
2022 Act Cost-Savings
Although the NVDC has continued to process multi-year CODs, the
NVDC has been receiving complaints from vessel owners that private
companies have been sending out 5-year-only marketing notices, and that
those companies could process this documentation for an additional fee.
The NVDC has noted that these individuals assumed that this was their
only choice, as 46 CFR part 67 has not been updated to reflect current
NVDC practices. Customer have complained to the NVDC that outside
companies were charging them an additional fee to process the
documentation. The NVDC has noted that the average additional fee that
these companies charged has been approximately $212.\7\ These same
customer complaints to the NVDC stated that they only used the outside
companies because they were under the impression that they had no other
choice. We use this estimate, multiplied by the affected population
estimate above, to estimate the annual cost savings that recreational
vessel owners will incur as we expect these customers to now process
their documentation directly with NVDC.
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\7\ Estimate is based in review of complaints submitted by
vessel owners to the Better Business Bureau (BBB), https://www.bbb.org/us/ca/chino-hills/profile/ship-register/us-vessel-documentation-inc-1066-850028757/complaints, and information
provided by SME and the NVDC.
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Although the NVDC does not keep track of the number of COD renewals
requested by third-party companies on
[[Page 77900]]
behalf of individual vessel owners, based on extensive discussions with
SMEs, the Coast Guard believes that the vast majority of the estimated
affected population who renewed CODs with a 5-year validity period in
2022 did so primarily through the use of third-party firms, who, in
turn, directed customers to the CFR.
As shown in table 5, the economic impact of the 2022 Act is an
estimated annual cost-savings of approximately $8.3 million annually in
2022 U.S. dollars, discounted at 7-percent. This estimate is derived
from an estimated affected population of 38,927 recreational vessels
(of at least 5 net tons) owners, multiplied by the $212 fee.
Table 5--10-Years Undiscounted and Discounted Cost-Savings to the Public
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Undiscounted
Year cost-savings 7% Discount 3% Discount
----------------------------------------------------------------------------------------------------------------
2022............................................................ $8,252,524 $7,712,639 $8,012,159
2023............................................................ 8,252,524 7,208,074 7,778,795
2024............................................................ 8,252,524 6,736,518 7,552,229
2025............................................................ 8,252,524 6,295,811 7,332,261
2026............................................................ 8,252,524 5,883,936 7,118,700
2027............................................................ 8,252,524 5,499,005 6,911,359
2028............................................................ 8,252,524 5,139,257 6,710,057
2029............................................................ 8,252,524 4,803,044 6,514,619
2030............................................................ 8,252,524 4,488,826 6,324,872
2031............................................................ 8,252,524 4,195,165 6,140,653
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Total....................................................... 82,525,240 57,962,275 70,395,704
-----------------------------------------------
Annualized.................................................. .............. 8,252,524 8,252,524
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* Totals may not sum due to rounding.
2022 Act Benefits
The 2022 Act preserves consumer choice in selecting a COD-validity
timeframe, allowing vessel owners to maximize their welfare based on
their own individualized choice matrix. Finally, confusion regarding
the validity period for a recreational vessel COD will be eliminated,
as the CFR will accurately reflect the law and NVDC policy.
Alternatives
As stated in the Summary and regulatory text, the 2022 Act is a
legislatively mandated and self-executing law promulgated by Congress.
Hence, the Coast Guard does not have any discretionary action upon its
enactment. The Coast Guard is promulgating this final rule to ensure
that CFR regulations concur and comply with the 2022 Act. Therefore, no
alternatives were considered for this rulemaking.
B. Small Entities
The Regulatory Flexibility Act of 1980 (RFA), 5 U.S.C. 601-612,
requires federal agencies to consider the potential impact on small
entities when they issue a rule after being required to first publish a
general notice of proposed rulemaking. Under 5 U.S.C. 604(a), a
regulatory flexibility analysis is not required for this final rule
under provision in 5 U.S.C. 553(b)(B), because Section 3511 of the 2022
Act provides the Coast Guard no discretion in adopting the specific
timeframes for renewal of recreational vessel CODs. We are not required
to publish a general notice of a proposed rulemaking; therefore, we did
not conduct a regulatory flexibility analysis for this rule.
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. If this rule
would affect your small business, organization, or governmental
jurisdiction and you have questions concerning its provisions or
options for compliance, please call or email 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 rule calls for no new or revised collection of information
under the Paperwork Reduction Act of 1995, 44 U.S.C. 3501-3520. The OMB
Control Number for the Coast Guard's Vessel Documentation collection is
1625-0027. As this final rule codifies current COD options for
recreational vessel owners, and we expect no change in the average
number of annual submissions, there is no change to the OMB-approved
collection.
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), and any
other category in which Congress intended the Coast Guard to be
[[Page 77901]]
the sole source of a vessel's obligations, are within the field
foreclosed from regulation by the States. See United States v. Locke,
529 U.S. 89 (2000) (finding that the states are foreclosed from
regulating tank vessels); see also Ray v. Atlantic Richfield Co., 435
U.S. 151, 157 (1978) (State regulation is preempted where ``the scheme
of federal regulation may be so pervasive as to make reasonable the
inference that Congress left no room for the States to supplement it
[or where] the Act of Congress may touch a field in which the federal
interest is so dominant that the federal system will be assumed to
preclude enforcement of state laws on the same subject'' (citations
omitted)). 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 these categories, 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.
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 (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
decided 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 meets the criteria for categorical exclusion L54 and L57
in Appendix A, Table 1 of DHS Instruction Manual 023-01-001-01, Rev. 1.
Categorical exclusion L54 pertains to regulations that are editorial or
procedural. Categorical exclusion L57 pertains to regulations
concerning documentation of vessels. This rule involves allowing
recreational vessel owners to select a recreational vessel endorsement
on a Certificate of Documentation (COD) with a validity of 1, 2, 3, 4,
or 5 years. This rule is not part of a larger action, and it will not
result in significant impacts to the human environment. The purpose of
this final rule is to meet the Congressional mandate contained in
Section 3511 of the National Defense Authorization Act of 2022.
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 is revised to read as follows:
Authority: 14 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; DHS Delegation 00170.1, Revision No. 01.3.
0
2. Amend Sec. 67.163 by:
0
a. In paragraph (a) introductory text, revising the first sentence.
0
b. In paragraph (b), removing the text ``an original'' and adding, in
its place, the text ``a''; and
0
c. Revising paragraph (c).
The revisions reads as follows:
Sec. 67.163 Renewal of endorsement.
(a) * * * Endorsements on Certificates of Documentation are valid
for 1 year, except for Recreational Endorsements on Certificates of
Documentation, which are valid for 1, 2, 3, 4, or 5 years. * * *
* * * * *
[[Page 77902]]
(c) Requirement for renewal of recreational endorsements. A
Certificate of Documentation for a recreational vessel and the renewal
of such a certificate will be effective for 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 removing the text ``must be
renewed every'' and add, in its place, the text ``can be renewed for a
period of 1, 2, 3, 4, or''.
0
4. Amend Sec. 67.550 by revising Revise Table 1 to read as follows:
Sec. 67.550 Fee table.
* * * * *
Table 1 to Sec. 67.550--Fees
------------------------------------------------------------------------
Activity Fee
------------------------------------------------------------------------
Commercial Applications:
COM Initial Certificate of Documentation (COD) (1 $133.00
Year Only).........................................
COM Exchange of Certificate of Documentation (COD) 84.00
(1 Year Only)......................................
COM Return of Vessel to Documentation (1 Year Only). 84.00
COM Replacement of Lost or Mutilated COD............ 50.00
COM Approval of Exchange of COD requiring Mortgagee 24.00
consent............................................
COM Trade Endorsements: (\1\)
COM Coastwise Endorsement....................... 29.00
COM Coastwise Bowaters Endorsement.............. 29.00
COM Fishery Endorsement......................... 12.00
COM Registry Endorsement........................ None
COM Recreational Endorsement.................... None
COM Evidence of Deletion from Documentation......... 15.00
COM Renewal of Certificate of Documentation (COD) (1- 26.00
Year Only).........................................
COM Late Renewal.................................... \2\ 5.00
Recreational Applications:
REC Initial Certificate of Documentation (COD) (1- \3\ 133.00
Year)..............................................
REC Exchange of Certificate of Documentation (COD) \3\ 84.00
(1-Year)...........................................
REC Return of Vessel to Documentation (COD) (1-Year) \3\ 84.00
REC Replacement of Lost or Mutilated COD............ 50.00
REC Approval of Exchange of COD requiring Mortgagee 24.00
consent............................................
REC Evidence of Deletion from Documentation......... 15.00
REC Renewal of Certificate of Documentation (1-Year) 26.00
2-Year Expiration............................... 52.00
3-Year Expiration............................... 78.00
4-Year Expiration............................... 104.00
5-Year Expiration............................... 130.00
REC Late Renewal.................................... \2\ 5.00
Waivers:
Original Build Evidence............................. 15.00
Bill of Sale Eligible for Filing and Recording...... 15.00
Miscellaneous Applications:
Wrecked Vessel Determination........................ 555.00
New Vessel Determination............................ 166.00
Rebuild Determination--Preliminary or Final......... 450.00
Filing and Recording:
Bill of Sale and Instruments in Nature of Bill of \4\ 8.00
Sale...............................................
Mortgages and Related Instruments................... \4\ 4.00
Notice of Claim of Lien and Related Instruments..... \4\ 8.00
Certificate of Compliance:
Certificate of Compliance (46 CFR Part 68).......... 55.00
Miscellaneous:
Abstract of Title (CG-1332)......................... 25.00
Certificate of Ownership (CG-1330).................. 125.00
Attachment for each vessel with same data....... 10.00
Certified Copy of Recorded Instrument............... 4.00
Certified Copy of Certificate of Documentation...... 4.00
Copy of instrument or document...................... (\5\)
------------------------------------------------------------------------
\1\ When multiple trade endorsements are requested on the same
application, only the single highest applicable fee will be charged,
resulting in a maximum endorsement fee of $29.00. This does not apply
to recreational endorsements.
\2\ Late renewal fee is in addition to the cost of the endorsement
sought.
\3\ 2-5 Year Expiration (Additional Fee Required--$26.00/year).
\4\ Per page.
\5\ Fees will be calculated in accordance with 6 CFR part 5, subpart A.
Dated: November 6, 2023.
W.R. Arguin,
Rear Admiral, U.S. Coast Guard, Assistant Commandant for Prevention
Policy.
[FR Doc. 2023-25024 Filed 11-13-23; 8:45 am]
BILLING CODE 9110-04-P