[Federal Register Volume 91, Number 124 (Tuesday, June 30, 2026)]
[Rules and Regulations]
[Pages 39465-39487]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2026-13137]


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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Parts 140 and 146

46 CFR Parts 4 and 109

[Docket No. USCG-2013-1057]
RIN 1625-AB99


Marine Casualty Reporting on the Outer Continental Shelf

AGENCY: Coast Guard, DHS.

ACTION: Final rule.

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SUMMARY: This final rule revises marine casualty reporting criteria for 
Outer Continental Shelf (OCS) activities to focus on characteristics of 
the involved entity rather than location of the casualty. It also 
raises the property damage dollar threshold (PDT) for reporting marine 
casualties involving fixed OCS facilities from $25,000 to $75,000 and 
aligns other OCS units with that threshold, consistency with the PDT 
for vessels in U.S. waters. The rule reduces costs to U.S. industry by 
$10,775 over 10 years and better harmonizes reporting requirements 
between U.S. and foreign floating offshore facilities, mobile offshore 
drilling units, and vessels engaged in OCS activities.

DATES: This final rule is effective July 30, 2026.

ADDRESSES: To view documents mentioned in this preamble as being 
available in the docket, go to https://www.regulations.gov, type USCG-
2013-1057 in the search box and click

[[Page 39466]]

``Search.'' Next, in the Document Type column, select ``Supporting & 
Related Material.''

FOR FURTHER INFORMATION CONTACT: For information about this document 
call or email Mr. David W. Deaver, Office of Investigations and 
Casualty Analysis, Coast Guard; telephone 202-527-2316, email 
[email protected].

SUPPLEMENTARY INFORMATION:

Table of Contents for Preamble

I. Abbreviations
II. Executive Summary
III. Basis, Purpose, and Regulatory History
IV. Background
V. Discussion of Comments and Changes from SNPRM
VI. Discussion of the Rule
VII. 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

BLS U.S. Bureau of Labor Statistics
BSEE Bureau of Safety and Environmental Enforcement
CFR Code of Federal Regulations
COI Collection of information
DHS Department of Homeland Security
FOF Floating OCS facility
FR Federal Register
FRFA Final Regulatory Flexibility Analysis
MISLE Marine Information for Safety and Law Enforcement
MODU Mobile offshore drilling unit
NAICS North American Industry Classification System
NCOE National Center of Expertise
NOSAC National Offshore Safety Advisory Committee
NPDES National Pollutant Discharge Elimination System
NPRM Notice of proposed rulemaking
OCMI Officers in Charge, Marine Inspection
OCS Outer Continental Shelf
OCSLA Outer Continental Shelf Lands Act
OMB Office of Management and Budget
PDT Property damage dollar threshold
RA Regulatory analysis
RCC Rescue Coordination Center
SNPRM Supplemental notice of proposed rulemaking
Secretary Secretary of the Department of Homeland Security
Sec.  Section
U.S.C. United States Code

II. Executive Summary

    There are currently two different marine casualty reporting regimes 
that apply to entities on the Outer Continental Shelf (OCS). One regime 
focuses on casualties involving U.S.-flagged vessels, and the other 
focuses on casualties involving foreign-flagged vessels and all 
entities fixed to the seabed. Placing various entities into one regime 
or the other has occurred over time; however, developments in 
technology have blurred the distinctions between the types of entities, 
and the law governing these entities has evolved. As a result, placing 
fixed or floating entities into one regime or the other reflects 
historical considerations instead of practical considerations.
    The primary purpose of this final rule is to harmonize 
applicability provisions for the two marine casualty reporting regimes 
under 46 CFR part 4 and 33 CFR subchapter N. To achieve that alignment, 
we also had to consider some of the changes in technology used on the 
OCS since the regulations for marine casualty reporting in 33 CFR 
subchapter N were first published in 1982.
    As a consequence of this realignment, we have grouped entities into 
two groups for reporting purposes. We categorize them roughly as fixed 
entities and floating entities. Floating entities include both U.S.- 
and foreign-flagged mobile offshore drilling units (MODUs), floating 
OCS facilities (FOFs), and vessels. Fixed entities include OCS 
facilities affixed to the OCS, such as U.S.- and foreign-flagged MODUs 
affixed to the seabed.
    This final rule makes those floating entities not already subject 
to existing reporting requirements found in 46 CFR part 4, subject to 
part 4. Part 4 of title 46 of the CFR, Marine Casualties and 
Investigations, already generally applies to casualties occurring on 
the U.S. navigable waters and to U.S.-flagged vessels involved in 
casualties wherever located.
    Finally, to harmonize the reporting threshold for fixed OCS 
facilities with the threshold for vessels, we are raising the property 
damage casualty reporting threshold for fixed OCS facilities from 
$25,000 to $75,000.00. The legal basis of this rulemaking is 43 U.S.C. 
1333(d)(1) and Department of Homeland Security (DHS) Delegation No. 
00170.1, Revision No. 01.4, paragraph 90.
    The economic impact of this final rule is a cost savings to U.S. 
industry of about $10,775 over a 10-year period in 2023 dollars and 
discounted to 7 percent, or $1,534 annualized. Because of this final 
rule's further application to foreign vessels, there is also a net cost 
of $94,977 to foreign industry over a 10-year period, or $13,523 
annualized. These net costs include the cost of increased reporting and 
cost savings from raising the property damage threshold. The cost of 
increased reporting is estimated at $107,218 for foreign industry over 
a 10-year period, or $15,265 annualized, and $26,107 to the U.S. 
Government over a 10-year period, or $3,717 annualized. Cost savings 
from raising the property damage threshold are estimated at $12,241 for 
foreign industry over a 10-year period, or $1,743 annualized. The 
affected population that will now report casualties under 46 CFR part 4 
includes 649 foreign-flagged entities, including MODUs, FOFs, and 
vessels; 1,385 fixed platforms will continue to report under 33 CFR 
part 146.

III. Basis, Purpose, and Regulatory History

    Through 43 U.S.C. 1333(d)(1), Congress authorizes the Secretary of 
the Department in which the Coast Guard is operating to promulgate and 
enforce reasonable regulations to promote the safety of life and 
property on artificial islands on the OCS, and on installations and 
other devices permanently or temporarily attached to the seabed of the 
OCS, as well as in waters adjacent to such artificial islands, 
installations, or devices. The Coast Guard operates under DHS except 
when it is operating as a service in the U.S. Navy per 14 U.S.C. 103, 
and it is presently operating in DHS. The Secretary of the Department 
of Homeland Security (Secretary) delegated their authority under 
section 1333(d)(1) to the Commandant of the Coast Guard through DHS 
Delegation No. 00170.1, Revision No. 01.4, paragraph 90.
    This rulemaking began with a notice of proposed rulemaking (NPRM) 
titled ``Marine Casualty Reporting on the Outer Continental Shelf,'' 
published on January 10, 2014 (79 FR 1780). In the NPRM, we explained 
our rationale for changing the criteria under which MODUs, FOFs, and 
vessels engaged in OCS activities report marine casualties, 
specifically to improve the Coast Guard's ability to capture data on 
casualties that occur on the U.S. OCS.
    Subsequently, we published a supplemental notice of proposed 
rulemaking (SNPRM) titled ``Marine Casualty Reporting on the Outer 
Continental Shelf'' \1\ with a 90-day comment period on June 14, 2023 
(88 FR 38765). The SNPRM, which completely replaced the 2014 NPRM, 
differed from the NPRM primarily in two ways. First, we decided not to 
pursue changing the casualty reporting requirement for fixed OCS 
facilities as we proposed in the NPRM. Second, we decided to propose 
increasing the property damage dollar reporting

[[Page 39467]]

threshold to $75,000, thereby aligning the threshold reporting 
requirements of title 33 of the CFR with those of title 46 of the CFR.
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    \1\ 88 FR 38765, June 14, 2023.
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    This final rule, which revises and finalizes the regulations 
detailed in the SNPRM, improves the regulatory scheme in two ways. 
First, this final rule enables the Coast Guard to collect more 
comprehensive data on casualties occurring on the OCS than the Coast 
Guard could previously. That, in turn, helps the Coast Guard better 
protect the safety of life and property on the OCS, and to account for 
changes in technology, which improves the Coast Guard's maritime domain 
awareness. Second, this final rule reduces the regulatory burden on 
fixed OCS facilities by raising the monetary property damage threshold 
for reporting a marine casualty from $25,000 to $75,000. Further 
details on the changes from the SNPRM to final rule are shown in table 
2.

IV. Background

    The Coast Guard's regulations in 33 CFR subchapter N \2\ apply to 
OCS facilities, such as FOFs and fixed OCS facilities, as well as to 
vessels, such as MODUs \3\ and to other units engaged in OCS 
activities. Among these regulations in subchapter N are regulations for 
reporting casualties on the OCS. These reside in 33 CFR part 146, 
Operations.
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    \2\ 33 CFR subchapter N consists of parts 140 through 147.
    \3\ Definitions of ``OCS facility,'' ``floating OCS facility,'' 
``fixed OCS facility,'' and ``MODU'' are provided in 33 CFR 140.10.
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Differences in Marine Casualty Reporting Regimes Before the Final Rule

    The owner, operator, or person in charge of a U.S.- or foreign-
flagged MODU, FOF, fixed OCS facility, or vessel must submit marine 
casualty reports according to the applicable regulations. Section 
146.30 of title 33 of the CFR applies to U.S. and foreign OCS 
facilities, including MODUs affixed to the seabed. Sections 146.301 and 
146.303 of title 33 of the CFR apply both to U.S. and foreign vessels, 
including MODUs that are engaged in OCS activities, but which are not 
affixed to the seabed. However, Sec. Sec.  146.301 and 146.303 do not 
apply to those U.S. vessels, including MODUs,\4\ which are already 
required to report marine casualties under 46 CFR subpart 4.05.
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    \4\ On December 14, 1987 (52 FR 47526, 47536), the Coast Guard 
amended 46 CFR 109.411 to require the owner, operator, or person in 
charge of a U.S. MODU to report accidents in accordance with 46 CFR 
part 4.
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    The criteria for reporting casualties are not identical between 
titles 33 and 46 of the CFR. The differences in these regulations stem 
from the fact that the original casualty reporting regulations in title 
33 of the CFR published on February 9, 1956 (21 FR 900) applied only to 
stationary artificial islands and fixed structures. On March 4, 1982 
(47 FR 9366), the Coast Guard extended the application of these 
regulations to floating facilities and vessels engaged in OCS 
activities to implement amendments to the Outer Continental Shelf Lands 
Act (OCSLA) (Pub. L. 95-372). However, the reporting criteria in 46 CFR 
part 4 do not align with the reporting criteria currently found in 33 
CFR part 146. As table 1 shows, the result of evolving the casualty 
reporting requirements on the OCS is that U.S. MODUs are regulated by 
two different reporting regimes, and the casualty reporting 
requirements for foreign MODUs are less stringent than those for U.S. 
MODUs.

                           Table 1--Coast Guard Marine Casualty Reporting Requirements
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                Topic                           33 CFR part 146                        46 CFR part 4
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Statutory authority..................  43 U.S.C. 1333...................  43 U.S.C. 1333; 46 U.S.C. 2103, 2303a,
                                                                           2306, 6101, 6301.
Applies to...........................  U.S. and foreign FOFs, fixed OCS   U.S. vessels and MODUs in any waters.
                                        facilities, and MODUs when in     Foreign vessels in U.S. waters.
                                        contact with the seabed, and
                                        vessels engaged in OCS
                                        activities.
Reportable casualties................  No similar requirement for vessel  Vessel in distress or loss of
                                        in distress.                       communication with vessel.
                                       Death............................  Death.
                                       Injuries to 5+ persons...........  Injury.
                                       Incapacitation > 72 hours........  No similar incapacitation requirement.
                                       Property damage > $25,000........  Property damage > $75,000.
                                       Damage affecting the usefulness    Grounding.
                                        of primary lifesaving or          Allision.
                                        firefighting equipment.
                                                                          Loss of--
                                                                           Main propulsion.
                                                                           Primary steering.
                                                                           Associated systems or
                                                                           components affecting maneuverability.
                                                                          Impairment of--
                                                                           Vessel operation.
                                                                           Vessel components.
                                                                           Cargo.
                                                                          Material or adverse impact to
                                                                           vessel's--
                                                                           Seaworthiness.
                                                                           Fitness for service.
                                                                           Fitness for route.
                                                                          * Examples--fire, flooding, failure of
                                                                           or damage to fire extinguishing,
                                                                           lifesaving, auxiliary power, and
                                                                           bilge pumping systems.
                                                                          Significant harm to the environment.
When to report.......................  As soon as possible..............  Immediately after addressing resultant
                                                                           safety concerns.
Subsequent reports...................  Within 10 days, describe possible  Within 5 days, written casualty report
                                        contributing factors.              required.
Alcohol/drug testing.................  Required.........................  Required.
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    Under 33 CFR 146.30, for facilities, and 33 CFR 146.303 for 
vessels, the owner, operator, or person in charge of an FOF, a fixed 
OCS facility, a MODU (when in contact with the seabed of the OCS for 
exploration or exploitation of subsea resources), or a vessel when 
engaged in OCS activities must report to the Coast Guard as soon as 
possible any casualties involving:
     Death;
     Injury to five or more persons in a single incident;
     Injury causing any person to be incapacitated for more 
than 72 hours;

[[Page 39468]]

     Damage affecting the usefulness of primary lifesaving or 
firefighting equipment; and
     Certain other property damage in excess of $25,000.
    The reporting party must follow up the initial report with a 
written report that contains a description of the factors that may have 
contributed to the casualty, including whether there is any evidence of 
alcohol or drug use by individuals directly involved in the casualty. 
The written report must be submitted on Coast Guard Form CG-2692 
``Report of Marine Casualty, Commercial Diving Casualty, or OCS-Related 
Casualty'' or in a narrative that supplies the same information as in 
the form. The CG-2692 form or narrative can be supplemented, as 
necessary, by appended Forms CG-2692 A ``Barge Addendum,'' CG-2692B 
``Report of Mandatory Chemical Testing Following a Serious Marine 
Incident Involving Vessels in Commercial Service,'' CG-2693C 
``Personnel Casualty Addendum,'' or CG-2692D ``Involved Persons and 
Witnesses Addendum.'' \5\
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    \5\ The CG-2692 form and other CG-2692 addendum forms are 
accessible at https://www.dco.uscg.mil/Our-Organization/Assistant-Commandant-for-Prevention-Policy-CG-5P/Inspections-Compliance-CG-5PC-/Office-of-Investigations-Casualty-Analysis/2692-Reporting-Forms-NVIC-01-15/; accessed 01/21/2026.
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    U.S. vessels operating anywhere and foreign vessels operating 
within the navigable waters of the United States are subject to the 
marine casualty reporting requirements found in 46 CFR part 4. The 
regulations in 46 CFR part 4 also apply to U.S. MODUs operating on the 
OCS because 46 CFR 109.411 requires U.S. MODUs to report casualties in 
accordance with 46 CFR part 4. U.S. FOFs also report casualties under 
46 CFR part 4. Part 4 of title 46 of the CFR does not apply to foreign 
MODUs, FOFs, or vessels operating on waters beyond the navigable waters 
of the United States, except for certain foreign tank vessels operating 
in the Exclusive Economic Zone. See 46 CFR 4.05-2(b).
    Under 46 CFR part 4, a vessel's owner, agent, master, operator, or 
person-in-charge must report any casualties to the Coast Guard, as 
required by 46 CFR 4.05-1. The initial marine casualty report required 
under 46 CFR 4.05-1 must be followed within 5 days by a written report 
on the CG-2692 form. See 46 CFR 4.05-10. Additionally, under 46 CFR 
4.05-12, the Coast Guard requires the marine employer to determine 
whether there is any evidence of alcohol or drug use by individuals 
directly involved in the casualty. This information can be included on 
the CG-2692 form or, as necessary, on a CG-2692B form. Reports for 
closed investigations of reportable marine casualties investigated by 
the Coast Guard from 2002 to the current year are publicly available at 
the USCG Maritime Information Exchange.\6\
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    \6\ https://cgmix.uscg.mil/IIR/Default.aspx. Users should select 
``Search IIR'' in the top left corner; accessed 01/21/2026.
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Need for Aligning Marine Casualty Reporting Regimes
    A fatal incident in 2010 that resulted in the largest oil spill in 
U.S. history illustrates the discrepancies between the two reporting 
regimes. On April 20, 2010, the foreign MODU Deepwater Horizon was 
performing drilling operations on the Macondo Well. That evening, an 
explosion and fire took 11 lives, injured 16 others, and severely 
crippled and sank the MODU. The casualty resulted in a continuous flow 
of hydrocarbons into the Gulf of America for 87 days, causing 
significant environmental damage to the Gulf of America.\7\
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    \7\ Report of Investigation into the Circumstances Surrounding 
the Explosion, Fire, Sinking and Loss of Eleven Crew Members Aboard 
the MOBILE OFFSHORE DRILLING UNIT DEEPWATER HORIZON In the GULF OF 
MEXICO April 20-22, 2010, Vol. I, MISLE Activity Number 3721503, 
dco.uscg.mil/Portals/9/OCSNCOE/Casualty-Information/DWH-Macondo/USCG-ROI-Deepwater-Horizon-Vol-I-Redacted.pdf?ver=2ezL6ldZjL6mCRGZE28pXQ%3d%3d; accessed 01/21/2026.
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    During their casualty analysis, the members of the Marine Board of 
Investigation for the Deepwater Horizon \8\ incident noted the 
inconsistencies between the marine casualty reporting criteria in 33 
CFR part 146 and 46 CFR part 4. In their accident report, the board 
members emphasized the disparate casualty reporting and chemical 
testing requirements between U.S. MODUs and foreign MODUs operating 
beyond navigable waterways of the United States.
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    \8\ Ibid.
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    The investigative team noted that the Deepwater Horizon had 
experienced a flooding and total loss of power events in 2008, but 
because of the marine casualty reporting criteria in 33 CFR subchapter 
N, the flooding and loss of power events were not considered reportable 
marine casualties that would have been reported to the Coast Guard. The 
investigative team stated in their report the following:

    Had Deepwater Horizon been required to report to the Coast Guard 
marine casualties described in 46 CFR 4.05-1, it would have had to 
report both 2008 incidents, which in turn likely would have led to 
the identification of the systemic failure of the vessel's work 
permit system. It also likely would have led to scrutiny of the 
vessel's SMS and a requirement that corrections be made. Reporting 
of marine casualties allows the Coast Guard to identify trends and 
safety issues across specific industries or types of vessels to be 
investigated, evaluated and addressed.\9\
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    \9\ Ibid.

    As a result of this investigation, the Commandant directed the 
Coast Guard to amend subchapter N to align reporting requirements 
between U.S.- and foreign-flagged MODUs engaged in OCS activities. The 
risks are similar for other floating entities and vessels engaged in 
OCS activities.
    U.S. MODUs, FOFs, and vessels engaged in OCS activities report 
casualties under 46 CFR part 4, while foreign MODUs, FOFs, and vessels 
engaged in OCS activities report casualties under 33 CFR part 146. The 
reporting criteria in 33 CFR part 146 includes fewer types of 
casualties than the reporting criteria in 46 CFR part 4. Thus, foreign 
MODUs, FOFs, and vessels engaged in OCS activity have a less 
comprehensive casualty-reporting regime than their U.S. counterparts. 
These differences are important in the offshore oil and gas 
exploration, development, and production industry because a lack of 
casualty data could hamper early detection of risks.
    As the coastal State with jurisdiction, we note that the reporting 
criteria under 46 CFR part 4 has the same casualty reporting standards 
for foreign MODUs, floating facilities, and vessels that engage in OCS 
activities as their U.S. counterparts. Additionally, having a uniform 
reporting standard for both U.S. and foreign MODUs, FOFs, and vessels 
that engage in OCS activities equalizes the regulatory burden.
    Further, the casualty reporting regulations in 33 CFR subchapter N 
and 46 CFR part 4 reflect neither technological developments nor 
present-day operations in the OCS industry since the Coast Guard 
updated marine casualty reporting requirements on the OCS in 1982. At 
that time, MODUs affixed to the seabed, such as jack-up units, 
conducted most of the oil and natural gas exploration on the OCS in 
waters to about 500 feet deep. Similarly, oil and gas companies erected 
fixed facilities to produce oil and natural gas because these types of 
facilities are feasible to the same 500-foot water depth.
    Over the past 30 years, the use of floating MODUs and facilities 
has become commonplace, as exploration and production activities moved 
into increasingly deeper waters of the OCS. Today, MODUs and FOFs 
operate in

[[Page 39469]]

waters deeper than 5,000 feet. They also operate much farther offshore, 
and, consequently, more distant from emergency assistance. These MODUs 
and floating facilities are more like ocean-going vessels than older 
MODUs or fixed OCS facilities grounded to the seabed.
    Therefore, in this final rule, as noted in the SNPRM and NPRM, the 
Coast Guard changes the criteria that foreign MODUs, FOFs, and vessels 
engaged in OCS activities will use to report casualties. This action 
will improve collection and analysis of casualty information on the OCS 
to help the Coast Guard and industry develop policies and procedures 
that prevent future marine casualties.
Raising the Property Damage Threshold
    In this final rule, as noted in the SNRPM, the Coast Guard raises 
the dollar threshold for reporting property damage under 33 CFR part 
146. The Coast Guard established the property damage threshold of 
$25,000 in 33 CFR part 146 through a final rule that published on March 
4, 1982 (47 FR 9366).
    The $25,000 threshold has not been changed in over 30 years and has 
not kept pace with inflation. Over time, this has resulted in reports 
of a greater number of casualties involving relatively minor property 
damage. In the regulatory analysis (RA), we address the reduction of 
regulatory burden from not having to report marine casualties with less 
than $75,000 in property damage.
    Until recently, a similar situation existed with reporting property 
damage under 46 CFR part 4. In that case, to account for inflation, the 
Coast Guard published a final rule titled ``Marine Casualty Reporting 
Property Damage Thresholds'' on March 19, 2018 (83 FR 11889) (hereafter 
the 2018 Final Rule). In that final rule, the Coast Guard raised the 
property damage reporting criteria in 46 CFR part 4 from $25,000 per 
incident to $75,000 based on the increase in the Consumer Price Index 
for all urban consumers between 1980 (82.408) and 2016 (240.007).\10\
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    \10\ 2016 was the most recent full year of data available at the 
time of the analysis for the final rule (83 FR 11889, March 19, 
2018). See CPI Detailed Report, Data for December 2016, Table 24, 
https://www.bls.gov/cpi/tables/historical-cpi-u-201710.pdf; accessed 
01/26/2026.
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    The original $25,000 threshold had not been selected arbitrarily. 
In the NPRM for the 2018 Final Rule, we quoted from a 1980 interim 
final rule to explain that ``the Coast Guard's selection of a monetary 
value as a reporting criterion is based upon the premise that increased 
repair costs are indicative of the increased seriousness of a marine 
casualty. . . . The monetary damage criterion has been chosen as the 
most effective method of ensuring that only the more serious casualties 
are reported.'' (45 FR 77439, 77440). Accordingly (as we had explained 
in the NPRM to the 2018 Final Rule), ``it has never been our intent to 
require owners or operators to notify us of casualties involving 
relatively minor property damage; consequently, we are amending the 
property damage monetary threshold amounts in order to eliminate the 
reporting of insignificant property damage incidents.'' (82 FR 7755, 
7756.)
    The Coast Guard believes the property damage threshold in 33 CFR 
part 146 should be consistent with the threshold in 46 CFR part 4. 
Accordingly, this final rule results in a $75,000 property damage 
dollar threshold (PDT) for OCS units, which has the practical effect of 
reducing confusion across regulatory frameworks. It amends 33 CFR part 
146 to apply this PDT increase to fixed OCS facilities and 46 CFR part 
4 to make MODUs, floating offshore facilities, and vessels operating on 
the OCS subject to reporting criteria already subject to that PDT.

V. Discussion of Comments and Changes From SNPRM

    The Coast Guard received 11 comment submissions from the SNPRM 
comment period.\11\ During the SNPRM's initial 90-day comment period, 
beginning on June 14, 2023, the Coast Guard received a comment 
requesting an extension of the comment period. The Coast Guard granted 
this request and, on September 12, 2023, published an extension of the 
comment period (88 FR 62491) for an additional 60 days until November 
13, 2023. These written submissions can be viewed in the docket 
following the instructions in the ADDRESSES section of the preamble. 
The Coast Guard appreciates the comments from the public, as these 
insights continue to inform Coast Guard actions and programs. We 
summarize the comments by topic and discuss our responses in the 
following paragraphs.
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    \11\ In the SNPRM, we responded to comments submitted during the 
NPRM comment period. See Section VII of the preamble to the SNPRM 
(Discussion of Comments on the 2014 NPRM), which begins at 88 FR 
38770.
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General Comments

    The Coast Guard received one comment requesting a comment period 
extension and a public meeting. The initial SNPRM comment period was 
set for 90 days, which we extended for an additional 60 days upon 
request. Because the comment period was 150 days, we determined a 
public meeting was unnecessary as 5 months is sufficient time for 
comments.\12\
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    \12\ 88 FR 62491, September 12, 2023.
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    We received another comment recommending we use input from the U.S. 
Coast Guard OCS National Center of Expertise (NCOE) when drafting 
rulemakings related to operations on the OCS. In line with the 
commenter's suggestion, the Coast Guard received input from the OCS 
NCOE when drafting this regulation.

Property Damage Threshold

    One commenter recommended keeping a $25,000 threshold for reporting 
property damage for continuity and consistency. Another commenter 
recommended increasing the reporting threshold from $75,000 to 
$250,000.
    The Coast Guard does not agree with keeping the threshold for 
reporting property damage at $25,000 or with raising it to $250,000. 
The purpose of updating the property damage threshold in 33 CFR part 
146 is to harmonize the reporting criteria across reporting protocols 
and neither of those two recommendations would result in consistent 
reporting criteria.
    As discussed in the 2018 Final Rule, the property damage threshold 
was initially set at $25,000 in the 1980s and that original $25,000 was 
selected as indicator that a marine casualty was serious enough to 
warrant an investigation. This 1980's property damage threshold has not 
kept pace with inflation, and over time, that has diminished its value 
as an indicator of the seriousness of a marine casualty and resulted in 
the reporting of casualties involving relatively minor property damage.
    Raising the property damage threshold in 33 CFR part 146 to 
$250,000 would increase the threshold well above the inflation amount. 
It would, moreover, not only fail to address the inconsistency in 
reporting criteria across different entities but actually exacerbate 
that inconsistency by setting the 33 CFR part 146 damage threshold well 
above that of a Serious Marine Incident under 46 CFR part 4. The 
threshold for a Serious Marine Incident was raised to $200,000 from 
$100,000 in the 2018 Final Rule to adjust that threshold for inflation 
and recalibrate that amount to reclaim its place as an indicator of 
serious marine incidents.
    Updating the property damage to $75,000 accounts for inflation, 
restores the dollar threshold to its role as an indicator of the 
seriousness of a marine

[[Page 39470]]

casualty, and it results in consistent reporting criteria across all 
entities reporting marine casualties to the Coast Guard. The change to 
the threshold in 46 CFR part 4 also addressed a concern expressed by 
NOSAC in its comment on the 2014 NPRM, that the property damage 
threshold for casualty reporting should be increased from $25,000 to 
account for inflation. We are, therefore, updating the reporting 
thresholds for reporting property damage due to marine casualties to 
$75,000.

Pollution

    We received two comments on reporting and investigating pollution 
spills. The first commenter stated that pollution spills must already 
be reported under the Clean Water Act \13\ and that requiring them to 
be reported as marine casualties with a CG-2692 form is duplicative and 
adds no value. The second commenter expressed concerns that there will 
be a significant increase in the number of marine casualty 
notifications that require a CG-2692 form due to only pollution spills 
and will increase the number of investigations being conducted. Both 
commenters state that there are conflicting requirements related to 
spill reporting between the Coast Guard, BSEE, and EPA, and that 
permitted discharge points (under the National Pollutant Discharge 
Elimination System (NPDES)) would now be required to be reported as 
marine casualties.
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    \13\ 33 U.S.C. 1321.
---------------------------------------------------------------------------

    The Coast Guard agrees that pollution spills are already required 
to be reported under the Clean Water Act. Those notifications are done 
through the National Response Center and are distributed to the Coast 
Guard, BSEE, and the EPA. They do not need to be reported to the Coast 
Guard separately as marine casualties because a report under existing 
regulations (33 CFR 153.203, 40 CFR 117.21, or 40 CFR part 302) for an 
occurrence exclusively involving significant harm to the environment 
satisfies the immediate notification requirement applicable to marine 
casualties.\14\ This final rule does not change that. Therefore, there 
is not a duplicative reporting requirement, and we do not anticipate 
there being an increase in the number of marine casualty reports due 
solely to pollution spills. This final rule does not change the 
requirements for the NPDES permit program and permitted discharge 
points are not considered to be a marine casualty; therefore, they are 
not required to be reported under this rule.
---------------------------------------------------------------------------

    \14\ 46 CFR 4.05-1(c).
---------------------------------------------------------------------------

Bureau of Safety and Environmental Enforcement (BSEE)

    One commenter expressed concerns regarding duplicative reporting to 
the Bureau of Safety and Environmental Enforcement (BSEE) and the Coast 
Guard and requested improvements to the incident reporting process. The 
same commenter expressed concerns about the transparency of 
interactions between the Coast Guard and BSEE related to incident 
investigations.
    While there is overlapping jurisdiction on the OCS, the Coast Guard 
and BSEE have a Memorandum of Understanding and multiple Memorandums of 
Agreement that address the agencies' responsibilities. The overarching 
Memorandum of Understanding identifies the roles and responsibilities 
of the two agencies for the oversight of OCS activities. The 
Memorandums of Agreement serve to provide more detailed explanations of 
how the agencies work to enhance collaboration, reduce redundancy, 
ensure consistency among the two agencies; they provide clarity to the 
regulated community and the public on the roles, responsibilities, and 
interaction between the two agencies.\15\ MOA OCS-05 is specific to 
incident investigations with BSEE. The Coast Guard and BSEE will 
continue working together to minimize duplicative work, as we explained 
in the SNPRM,\16\ but changing the incident reporting process or the 
manner in which the Coast Guard and BSEE interact is beyond the scope 
of this rulemaking.
---------------------------------------------------------------------------

    \15\ The Memorandum of Understanding and the Memorandums of 
Agreement can be found at https://www.bsee.gov/about-bsee/interagency; accessed 01/21/2026.
    \16\ 88 FR 38771, June 14, 2023.
---------------------------------------------------------------------------

Definitions and Terminology

    We received multiple comments about definitions and terminology. 
One comment pointed out language used in Section IX. Regulatory 
Analysis of the SNPRM, which referenced Coast Guard organizational 
units that no longer exist.
    The regulations have since been changed and current regulations 
refer to the current names of these organizational units. This final 
rule does not change the nomenclature of Coast Guard offices or units 
which receive reports for marine casualties.
    Another submission raised 15 issues on the terminology used in the 
SNPRM preamble as well as in the proposed regulatory text. We received 
five comments about terms and language used in Section VIII of the 
SNPRM, which detailed differences in proposed regulations between the 
NPRM and SNPRM. Many of these comments questioned if the Coast Guard 
proposed new acronyms and terms, such as floating entities, foreign 
FOF, and fixed platforms.
    The Coast Guard did not propose any new acronyms or terms. The only 
definition we had proposed to change in the NPRM was the definition of 
an FOF. Upon review, we agreed with the SNPRM comment that the proposed 
change to the definition of ``Floating OCS Facility'' blurred the 
distinction between a facility and a vessel. Therefore, we are not 
amending the definition of ``Floating OCS Facility,'' and we will keep 
the existing definition of FOF. However, this final rule will still 
require FOFs to report marine casualties per 46 CFR part 4 as they face 
similar risks as vessels. Fixed OCS units will continue to use the 
reporting requirements found in 33 CFR parts 140 and 146.
    As far as the language used in Section VIII of the SNPRM, referring 
to units as ``flagged'' was to provide more explanation and 
clarification. It was not associated with any additional regulatory 
definitions. For instance, we used ``foreign FOF'' as shorthand to 
identify that an FOF was not U.S.-flagged without introducing a new 
regulatory definition. It was not our intent to introduce new acronyms 
or terms.
    One commenter requested that the Coast Guard create a clear 
distinction between FOFs that are flagged, self-propelled, seagoing 
vessels, and non-vessel FOFs such as spars, tension leg platforms, and 
semi-submersible floating production units that are permanently moored, 
citing the CG-OES Policy Letter 01-22.\17\ The cited CG-OES Policy 
Letter 01-22 was issued to aid the OCMI in determining which floating 
OCS units ``are not vessels''; therefore, this commenter's request is 
beyond the scope of this rulemaking.
---------------------------------------------------------------------------

    \17\ CG-OES Policy Letter 01-22, DETERMINATION OF WHETHER A 
FLOATING OUTER CONTINENTAL SHELF FACILITY (FOF) IS A VESSEL, https://www.dco.uscg.mil/Portals/9/OCSNCOE/References/Policy-Letters/HQ/OES/CG-OES-PL-01-22.pdf?ver=7UOoM63qm50hvhXJ3WCojw%3d%3d; accessed 
01/21/2026.
---------------------------------------------------------------------------

    Another commenter expressed confusion regarding the distinctions 
between vessels and non-vessels in our references to FOFs and fixed OCS 
facilities. This commenter also requested aligning the degree of 
specificity required in the casualty reporting criteria in 33 CFR part 
146 and 46 CFR part 4. This commenter stated that when an OCS unit is 
considered a vessel, the casualty reporting regulations should be 
aligned as

[[Page 39471]]

proposed in the SNPRM. When an OCS unit was not considered a vessel but 
more appropriately described as either a fixed OCS facility or an FOF, 
the commenter felt the OCS unit should follow only the reporting 
requirements in 33 CFR part 146.
    The commenter stated that the risk profiles between FOFs and 
vessels are different, and that the application of vessel-based 
reporting requirements in 46 CFR part 4, as explained above, is not 
appropriate. Additionally, they stated that nearly all the vessel-based 
marine casualty criteria in 46 CFR part 4 are not applicable to FOFs, 
which are not vessels as determined by the Coast Guard Officers in 
Charge, Marine Inspection (OCMI). Another frequent request was to keep 
requirements for vessel FOFs in 46 CFR part 4 and requirements for non-
vessel FOFs in 33 CFR part 146.
    The Coast Guard agrees that there are distinctions between the 
different types of OCS units. However, the purpose of this final rule 
is to better align the reporting requirements for marine casualties 
found in 33 CFR subchapter N with those found in 46 CFR part 4. This 
final rule does not alter the reporting requirements found in 33 CFR 
part 146 for fixed OCS units as defined in 33 CFR part 140, except for 
raising the reporting threshold dollar amount to $75,000.
    FOFs are at risk of marine casualties similar to those that vessels 
are at risk of, such as flooding or loss of stability. These types of 
marine casualties are not currently accounted for in 33 CFR part 146. 
While some of the types of marine casualties identified in 46 CFR part 
4 may not be applicable to FOFs, the only requirement is to report the 
marine casualty, if it occurs.
    Lastly, we received one comment recommending we issue the National 
Offshore Safety Advisory Committee (NOSAC) a task statement for input 
on OCS terms and other definitions. We do not agree that it is 
necessary to issue NOSAC a task statement to review terms and 
definitions we proposed to change in the SNPRM because we are no longer 
amending terms or definitions in this final rule.

OCSLA and Subchapter N Updates

    We received four comments about the 2021 National Defense 
Authorization Act's OCSLA amendment that added ``including non-mineral 
energy resources'' to 43 U.S.C. 1333(a)(1). These comments recommended 
revising 33 CFR subchapter N to include this change. Another commenter 
suggested that the stated objective of this final rule could not be 
achieved without including non-mineral vessel activities on the OCS in 
the same reporting regime. This commenter also recommended withdrawing 
the SNPRM until all of subchapter N is updated.
    The Coast Guard appreciates all these comments; however, the OCSLA 
amendment and suggestions to update the entirety of subchapter N to 
include non-mineral vessel activities are separate topics that are 
beyond the scope of this rulemaking.

Data Validity and Affected Population Concerns

    Four comments questioned the validity of affected population data 
and Marine Information for Safety and Law Enforcement (MISLE) labeling 
being inconsistent when investigating OCS incidents. Another comment 
was about the integrity of MISLE data regarding industrial vessels.
    To address concerns that the affected population undercounted 
vessels, the Coast Guard cross referenced the population of reporting 
vessels that appear in MISLE casualty records with both MISLE 
population data and the OCS NCOE-maintained directory of FOFs. This 
cross-reference increases the total population count to 649 foreign 
vessels and prevents any double counting in the overall population of 
vessels that are labeled as industrial vessels. We continue to use 
MISLE as the source for the count of casualties as this is the primary 
record of reports made to the Coast Guard and has no private 
equivalent, making it the most appropriate source for the counts of 
casualties reported and population of reporting vessels.
    Another comment questioned the validity of the NOSAC report, given 
the date of the report. We agree with the commenter that the data in 
the NOSAC report reflected activity on the OCS at the time the NOSAC 
report was issued and that the data in the report may change. However, 
our analysis was intended to be based on a specific period of time and 
does not rely solely on the information found in the NOSAC report.\18\ 
So, for the purpose of this rulemaking, we reviewed and updated the 
analysis at each stage of the process and determined the analysis 
reflects the period from 2015 to 2022 when the data was collected, as 
detailed in the RA.
---------------------------------------------------------------------------

    \18\ A copy of NOSAC's report is included in the rulemaking 
docket, https://www.regulations.gov/document/USCG-2013-1057-0009; 
accessed 01/21/2026.
---------------------------------------------------------------------------

Cost Burden

    One commenter expressed concerns about the accuracy of the cost 
burden associated with creating a drug-testing program similar to the 
Department of Transportation's program.
    This final rule makes no change to the existing requirements in 46 
CFR parts 4 and 16 to report alcohol and drug testing as part of a 
marine casualty report.

VI. Discussion of the Rule

    This final rule aligns the marine casualty reporting requirements 
in 33 CFR part 146 with those found in 46 CFR part 4 to harmonize 
reporting requirements that apply to foreign and U.S. MODUs, FOFs, and 
vessels engaged in OCS activities. This final rule also raises the 
property damage threshold that triggers a casualty report from $25,000 
to $75,000 for fixed OCS facilities. These actions will also improve 
the collection and analysis of casualty information on the U.S. OCS to 
help the Coast Guard and industry develop policies and procedures that 
prevent future marine casualties. We discussed the section-by-section 
changes in the SNPRM.\19\ As noted above, we are not amending the 
definition of ``Floating OCS Facility'' in 33 CFR 140.10 as we had 
proposed to do. In other respects, however, the section-by-section 
discussion in the SNPRM applies to this final rule.
---------------------------------------------------------------------------

    \19\ See section VI (Discussion of the Supplemental Proposed 
Rule); 88 FR 38769, June 14, 2023.
---------------------------------------------------------------------------

VII. Regulatory Analyses

    We developed this final rule after considering 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. Executive Order 13563 emphasizes the importance of 
quantifying both costs and benefits, of reducing costs, of harmonizing 
rules, and of promoting flexibility. Executive Order 14192 (Unleashing 
Prosperity Through Deregulation) directs agencies to significantly 
reduce the private expenditures required to comply with Federal 
regulations and provides that ``any new incremental costs associated 
with new regulations shall, to the extent permitted by law, be offset 
by the elimination of existing costs associated with at least 10 prior 
regulations.''

[[Page 39472]]

    Two additional Executive orders promote the goals of Executive 
Order 13563: Executive Order 13609 (Promoting International Regulatory 
Cooperation) and Executive Order 13610 (Identifying and Reducing 
Regulatory Burdens). Executive Order 13609 targets international 
regulatory cooperation to reduce, eliminate, or prevent unnecessary 
differences in regulatory requirements. Executive Order 13610 aims to 
modernize the regulatory systems and reduce unjustified regulatory 
burdens and costs on the public.
    The Office of Management and Budget (OMB) has not designated this 
final rule a ``significant regulatory action,'' under section 3(f) of 
Executive Order 12866. Accordingly, OMB has not reviewed it.
    This final rule is considered an Executive Order 14192 deregulatory 
action. We estimate that this rule generates $0.0029 million dollars in 
annualized cost savings at a 7-percent discount rate, discounted 
relative to year 2024, over a perpetual time horizon.
    An RA follows.
    We summarize the differences between the SNPRM and final rule in 
table 2.

          Table 2--Summary of Changes From SNPRM to Final Rule
------------------------------------------------------------------------
                                      SNPRM              Final rule
------------------------------------------------------------------------
Affected Population.........  Soley used MISLE as   In addition to
                               a source for vessel   MISLE, we use the
                               population.           NCOE's directory of
                                                     FOFs to determine
                                                     the vessel
                                                     population.
Wages.......................  Wages from 2019 load  Wages and load
                               factors from          factors updated to
                               employer cost index.  2023.
------------------------------------------------------------------------

    In this final rule, as in the SNPRM, the Coast Guard amends 
regulations in which marine casualties, under 33 CFR subchapter N, are 
reported for foreign MODUs, FOFs, and vessels operating on the OCS. The 
amendments will close the gap between casualty reporting requirements 
for U.S. and foreign MODUs, FOFs, and vessels engaged in an OCS 
activity under the 46 CFR part 4 reporting requirements, which brings 
foreign entities to the same standard as U.S. entities. In addition to 
the change from the NPRM and as proposed in the SNPRM, the Coast Guard 
updates the property damage threshold from $25,000 to $75,000 for 
reporting under 33 CFR part 146 to align with the threshold in 46 CFR 
part 4, which was raised in the 2018 Final Rule,\20\ which, in turn, 
decreases the number of reports by U.S. industry and generates 
undiscounted cost savings of about $15,340 for the next 10 years. We 
summarize the impacts of the changes of this final rule in table 3.
---------------------------------------------------------------------------

    \20\ ``Marine Casualty Reporting Property Damage Thresholds'' 
(83 FR 11889, March 19, 2018).

           Table 3--Summary of the Impacts of This Final Rule
------------------------------------------------------------------------
             Category                              Summary
------------------------------------------------------------------------
Applicability.....................   Requires marine casualties,
                                     involving foreign MODUs, FOFs, and
                                     vessels engaged in OCS activities,
                                     to be reported under 46 CFR part 4
                                     as consistent with U.S. MODUs,
                                     FOFs, and vessels.
                                     Raises the monetary
                                     reportable marine casualty dollar
                                     threshold in 33 CFR part 146 from
                                     $25,000 to $75,000 to align with 46
                                     CFR part 4.
Affected Population...............  For marine casualties on MODUs,
                                     FOFs, and vessels currently
                                     required to be reported under 33
                                     CFR part 146:
                                     649 foreign MODUs, FOFs,
                                     and vessels will shift reporting to
                                     46 CFR part 4.
                                     1,385 fixed platforms will
                                     continue to report under 33 CFR
                                     part 146.
Total Costs (2023 dollars, 7%       Cost for U.S. Government:
 Discount Rate).                    10-Year: $26,107
                                    Annualized: $3,717
                                    Cost for Foreign Industry:
                                    10-Year: $107,218
                                    Annualized: $15,265
                                    On average, we anticipate an
                                     increase of 75 marine casualty
                                     reports annually.
Cost Saving to Industry (2023       Savings for U.S. industry:
 dollars, 7% Discount Rate).        10-Year: -$10,775
                                    Annualized: -$1,534
                                    Savings for Foreign Industry:
                                    10-Year: -$12,241.
                                    Annualized: -$1,743.
                                    Reduced reporting from raising the
                                     property damage threshold for a
                                     reportable marine casualty.
Net Cost (2023 dollars, 7%          Net Cost for Foreign Industry:
 Discount Rate).                    10-Year: $94,977.
                                    Annualized: $13,523.
Unquantified Benefits.............  Increases the Coast Guard's domain
                                     awareness through harmonization of
                                     marine casualty reporting
                                     requirements across CFR parts.
                                     Potential for risk mitigation if
                                     problems are identified before they
                                     develop into more serious
                                     accidents.
------------------------------------------------------------------------

    The OMB has not designated this rule a ``significant regulatory 
action,'' under section 3(f) of Executive Order 12866. Accordingly, OMB 
has not reviewed it.
Affected Population
    As in the SNPRM,\21\ the affected population comprises all foreign 
FOFs identified in the MISLE database as floating production systems 
and floating production storage offloading vessels, as well as various 
types of industrial vessels,\22\ MODUs, and lift boats. For this final 
rule, we use the index of FOFs from the Coast Guard's OCS NCOE.\23\

[[Page 39473]]

We provide transparency in table 4, which shows details on the affected 
population and addresses concerns that the population of industrial 
vessels in the MISLE database undercounts the affected population. 
Since the 2020 SNPRM, MISLE now distinguishes FOFs, so we listed those 
separately from industrial vessels to show that we did not undercount 
the population. We excluded types that did not have an oceangoing route 
under the assumption that they would not operate on the OCS.
---------------------------------------------------------------------------

    \21\ ``Marine Casualty Reporting on the Outer Continental 
Shelf'' (88 FR 38765, June 14, 2023).
    \22\ The following vessel types are excluded: cable laying, 
dredger, dredger barge, factory ship, fishing support vessel, 
floating dry dock, orbital launch, offshore service vessel, pilot 
vessel, radio ship, and seabed mining vessel. Supply vessels not 
listed as offshore service vessels and operating on an ocean route 
are included.
    \23\ https://www.dco.uscg.mil/OCSNCOE/FOF/Index/; accessed 01/
21/2026.

                      Table 4--Affected Population
------------------------------------------------------------------------
                                                   SNPRM      Final rule
                                                   (2020)       (2024)
------------------------------------------------------------------------
Moved to Report under 46 CFR Part 4
    Industrial Vessels (Foreign)..............          310          336
    Oil Supply Vessels (Foreign)..............            0            0
    MODUs (Foreign) *.........................          257          238
    Lift Boats (Foreign)......................           13           16
    FOFs (Foreign)............................            8           59
                                               -------------------------
        Total Foreign Vessels.................          588          649
                                               -------------------------
Updated Property Damage Threshold
    Fixed Platforms (All U.S.)................        1,754        1,385
------------------------------------------------------------------------
* This number reflects active MODUs as reported by MISLE. It does not
  necessarily show how many are actively drilling or in contact with the
  seabed.

Baseline Reporting
    Table 5 describes the different events that prompt reporting of a 
marine casualty under 33 CFR part 146 and 46 CFR part 4. Title 46 CFR 
part 4 has more casualty reporting triggers than 33 CFR part 146. 
Therefore, an FOF, MODU, or vessel will report more casualties under 46 
CFR part 4 than under 33 CFR part 146.

   Table 5--Current Coast Guard Marine Casualty Reporting Requirements
------------------------------------------------------------------------
              33 CFR Part 146                       46 CFR Part 4
------------------------------------------------------------------------
Death.....................................  Death.
Injuries to 5+ persons....................  Injury.
Incapacitation > 72 hours.................
Property damage > $25,000 (fixed            Property damage > $75,000.
 facilities only). (33 CFR 146.30 and       Grounding.
 146.303.).                                 Allision.
                                            Vessel in distress or loss
                                             of communication with
                                             vessel.
                                            Loss of--
                                             Main propulsion
                                             Primary steering
                                             Associated systems
                                             or components affecting
                                             maneuverability
                                            Impairment of--
                                             Vessel operation
                                             Vessel components
                                             Cargo
                                            Material or adverse impact
                                             to vessels'--
                                             Seaworthiness.
                                             Fitness for
                                             service.
                                             Fitness for route.
                                             Examples--fire,
                                             flooding, failure of or
                                             damage to fire
                                             extinguishing, lifesaving,
                                             auxiliary power, bilge
                                             pumping systems.
                                            Significant harm to the
                                             environment (defined in 46
                                             CFR 4.03-65).
                                            (46 CFR 4.04-1, 4.04-2, and
                                             4.05-1.)
------------------------------------------------------------------------

    Transferring marine casualty reporting of MODUs, FOFs, and vessels 
to 46 CFR part 4 will require an increase in the types of reportable 
casualties, including injury to fewer than five persons, grounding, 
stranding, foundering, flooding, collision, allision, explosion, fire, 
loss of propulsion, loss of steering, and impaired operations. There 
are already some voluntary submissions of marine casualty reports, 
which are not required under 33 CFR part 146, for incidents on foreign 
MODUs, FOFs, and vessels involving the criteria we mentioned 
previously. Even with a count of active foreign MODUs, FOFs, and 
vessels each year, we are unable to determine the number of incidents 
that were non-reportable under 33 CFR part 146 but would have been 
reportable under 46 CFR part 4. Without aligned reporting, we are 
unable to compare how often one type of incident occurs on foreign 
MODUs, FOFs, and vessels compared to their U.S. counterparts, while 
accounting for differences in the total population sizes, how much of 
those populations actively report, and general risk levels between the 
two populations.
    The reports for nonfatal types of incidents described as voluntary 
for foreign MODUs, FOFs, and vessels are mandatory for U.S. MODUs, 
FOFs, and vessels and will become mandatory for all flags with this 
final rule. We show the number of voluntary and mandatory marine 
casualty reports by flag type in table 6. From 2015 to 2022, MISLE 
recorded 258 total voluntary reports of casualties that met the 
reporting criteria under 46 CFR part 4 from a total of 163 uniquely 
identified foreign MODUs, FOFs, and vessels reporting under title 33 of 
the CFR. Table 6 shows the number of marine casualty reports from 
foreign MODUs, FOFs, and vessels that met the criteria for a reportable 
casualty under title 46 of the CFR but not under title 33 of the CFR, 
meaning those reports were submitted voluntarily. Table 7 shows the 
number of unique foreign MODUs, FOFs, and vessels that submitted 
voluntary reports in each year. These reports are unique only within 
each year; across the entire range from 2015 to 2022, there were 69 
unique entities, meaning 94 foreign MODUs, FOFs, or vessels submitted 
reports in multiple years.

[[Page 39474]]



                                         Table 6--Casualty Reports by Type From Foreign MODUs, FOFs, and Vessels
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                           2015     2016     2017     2018     2019     2020     2021     2022    Total   Annual average
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                     Casualties Reportable under Title 46 of the CFR
--------------------------------------------------------------------------------------------------------------------------------------------------------
Injury < 5 & > 0.......................................       47       23       24       43       21       19       23       13
Grounding..............................................        0        4        6        0        0        0        1        0
Allision...............................................        0        2        3        1        0        0        0        0
Stranding..............................................        0        0        0        0        0        0        0        0
Loss of Propulsion.....................................        1        1        0        0        0        0        0        0
Loss of Steering.......................................        0        0        3        0        0        1        0        0
Impaired Operation.....................................        0        0        0        0        0        1        3        1
Foundering.............................................        0        0        0        0        0        0        0        0
Flooding...............................................        0        0        3        0        0        0        0        0
Collision..............................................        1        0        0        0        0        1        2        1
Explosion..............................................        0        0        0        0        0        0        0        0
Fire...................................................        5        1        1        1        0        0        1        0
                                                        ------------------------------------------------------------------------------------------------
    Total..............................................       54       31       40       45       21       22       30       15      258           32.25
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                     Casualties Reportable under Title 33 of the CFR
--------------------------------------------------------------------------------------------------------------------------------------------------------
Fatality...............................................        3        0        1        1        0        2        1        1        9           1.125
--------------------------------------------------------------------------------------------------------------------------------------------------------


                      Table 7--Number of Unique Reporting Foreign MODUs, FOFs, and Vessels
----------------------------------------------------------------------------------------------------------------
                                                                                                      Annual
          2015              2016     2017     2018     2019     2020     2021     2022    Total       average
----------------------------------------------------------------------------------------------------------------
32......................       19       20       23       20       15       21       13      163          20.375
----------------------------------------------------------------------------------------------------------------

    Similarly, from 2015 to 2022, MISLE recorded 1,333 total reports 
from 830 identified U.S. MODUs, FOFs, and vessels that matched the 
reporting criteria for voluntary reports from foreign MODUs, FOFs, and 
vessels, although those types of reports are mandatory for U.S. MODUs, 
FOFs, and vessels. Table 8 shows the number of marine casualty reports 
from U.S. MODUs, FOFs, and vessels that met the criteria for a 
reportable casualty under title 46 of the CFR but not under title 33 of 
the CFR. Table 9 shows the number of unique U.S. MODUs, FOFs, and 
vessels that submitted reports in each year. These are unique only 
within each year, across the entire range from 2015 to 2022, there were 
574 unique entities, meaning 256 U.S. MODUs, FOFs, or vessels submitted 
reports in multiple years.

                                          Table 8--Casualty Reports by Type From U.S. MODUs, FOFs, and Vessels
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                       Grand     Annual
                                                                2015     2016     2017     2018     2019     2020     2021     2022    total    average
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                          Reportable under Title 46 of the CFR
--------------------------------------------------------------------------------------------------------------------------------------------------------
Injury < 5 & > 0............................................      118       94      116      115       99      126      132      124
Grounding...................................................        8       20       16        6       10        4        3        4
Allision....................................................       23       15       16       12       13       15        8       22
Stranding...................................................        0        0        0        0        0        0        0        0
Loss of Propulsion..........................................        4        3       12        5        3        0        0        0
Loss of Steering............................................        1        1        0        0        0        1        1        3
Impaired Operation..........................................        0        0        0        0        0       14       27       15
Foundering..................................................        0        0        0        0        0        0        0        0
Flooding....................................................       14       12       10        6       10        1        0        1
Collision...................................................        8        5        9        3        3        6       10        2
Explosion...................................................        0        0        0        0        0        0        0        0
Fire........................................................        5        3        1        2        2        4        2        5
                                                             -------------------------------------------------------------------------------------------
    Total...................................................      181      153      180      149      140      171      183      176    1,333    166.625
--------------------------------------------------------------------------------------------------------------------------------------------------------
Reportable under Title 33 of the CFR........................  .......  .......  .......  .......  .......  .......  .......  .......  .......  .........
Fatality....................................................        3        1        1        2        0        4        3        0       14       1.75
--------------------------------------------------------------------------------------------------------------------------------------------------------


[[Page 39475]]


                        Table 9--Number of Unique Reporting U.S. MODUs, FOFs, and Vessels
----------------------------------------------------------------------------------------------------------------
                                                                                                         Annual
            2015               2016     2017     2018     2019     2020     2021     2022     Total     average
----------------------------------------------------------------------------------------------------------------
107........................       95      114      102       80      115      109      108        830    103.750
----------------------------------------------------------------------------------------------------------------

    For marine casualty reports involving fatalities, which are 
mandatory for everyone, an average of 1.125 fatality reports from 2015 
to 2022 were submitted for foreign MODUs, FOFs, and vessels, compared 
to an average of 1.750 fatality reports submitted for U.S. MODUs, FOFs, 
and vessels. The 8-year average of fatality reports per reporting 
foreign MODUs, FOFs, and vessels is 0.055, which we calculated by 
dividing the annual average of casualties reportable under title 33 of 
the CFR shown in table 7 by the annual average shown in table 6 (1.125 
/ 20.375). The 8-year average of fatality reports per reporting U.S. 
MODU, FOF, and vessel is 0.017, which we calculated by dividing the 
annual average of casualties reportable under title 33 of the CFR shown 
in table 8 by the annual average shown in table 9 (1.75 / 103.75).
    Table 10 shows the 5-year average number of marine casualty reports 
per unique MODU, FOF, and vessel. We rounded the averages to two 
decimal places for presentation, but we did not round the averages in 
the calculations for the estimates in this analysis.

   Table 10--5-Year Average Casualty Reports per Unique MODU, FOF, and
                        Vessel, From 2014 to 2019
------------------------------------------------------------------------
                                                  Foreign        U.S.
------------------------------------------------------------------------
Average number of FOF, MODU, and vessels             20.375      103.750
 reporting annually...........................
Average number of nonfatality reports.........       32.250      166.625
Average number of fatality reports............        1.125        1.750
------------------------------------------------------------------------
* Ratios are sensitive to rounding and were not rounded in the
  calculations for the analysis.

    Currently, fatal marine casualty reports are mandatory for both 
populations while, in this sample, non-fatality marine casualty reports 
are voluntary for foreign MODUs, FOFs, and vessels.
Costs From Increased Reporting
    Under this final rule, the Coast Guard will require that owners and 
operators of foreign MODUs, FOFs, and vessels engaged in an OCS 
activity report marine casualties using the CG-2692 form under the 
reporting requirements of 46 CFR part 4, instead of the requirements 
under 33 CFR part 146. All U.S. entities already comply with these 
requirements. To estimate the potential increase in non-fatality marine 
casualty reports generated by foreign MODUs, FOFs, and vessels, the 
Coast Guard estimates how many marine casualty reports will be 
generated if the ratio of nonfatality marine casualty reports for the 
foreign population matched the ratio of nonfatality marine casualty 
reports of the U.S. population. The Coast Guard estimates this by 
taking the ratio of U.S. nonfatality reports to fatality reports, and 
foreign nonfatality reports to fatality reports and solving for foreign 
nonfatality reports as shown in equation (A). The Coast Guard believes 
that this is the best approximation available, given uncertainty about 
differences in the total population sizes, differences in the 
percentage of the active populations that report marine casualty 
reports, and differences in general risk levels of operations between 
the two populations.
[GRAPHIC] [TIFF OMITTED] TR30JN26.011

    Using the figures for average annual reports from table 10, we then 
apply the formula shown in equation (A), assuming that the total value 
of foreign nonfatality reports is unknown and that the 32.25 
nonfatality reports from foreign MODUs, FOFs, and vessels are voluntary 
but not equal to the total number of reports that will be realized 
under this final rule. The result is 107.1161 foreign nonfatality 
reports, the total number of nonfatality reports that would have been 
reported, if the proportion of foreign fatality reports was the same as 
U.S. fatality reports. We show the calculation of these 107.12, 
rounded, foreign nonfatality reports in the equations (B), (C), and 
(D).
[GRAPHIC] [TIFF OMITTED] TR30JN26.012


[[Page 39476]]


    In equation (B), we assume that the U.S. nonfatality reports equal 
166.625 as shown in Table 10, the average number of U.S. fatality 
reports equal 1.750, and the average number of foreign fatality reports 
equal 1.125. In equation (C), we begin solving the proportion for x by 
multiplying 166.625 by 1.125 and multiplying 1.750 by x, which results 
in 187.4531 = 1.750x. Finally, in equation (D), we divide 187.4531 by 
1.750, which equals 107.1161, the total number of estimated foreign 
nonfatality reports.
    Then, from this estimated number of foreign nonfatality reports we 
subtract the number of voluntary reports already received from the 
foreign population to get the marginal increase in marine casualty 
reports. This is the total of 107.1161 foreign nonfatality reports 
minus the 32.250 voluntary foreign nonfatality reports, for an increase 
of 74.8661 reports. Therefore, the Coast Guard assumes that by making 
the requirements for reporting nonfatal casualties by foreign MODUs, 
FOFs, and vessels the same as for U.S. MODUs, FOFs, and vessels, 
foreign MODUs, FOFs, and vessels will report an average of 75 more 
nonfatality reports per year, rounding 74.8661 up to the nearest whole 
number.
    Table 11 summarizes the annual cost of additional marine casualty 
reports submitted for foreign MODUs, FOFs, and vessels. The time burden 
and wage cost of generating marine casualty reports comes from the 
collection of information (COI) ``OMB Control No. 1625-0001, Report of 
Marine Casualty and Chemical Testing of Commercial Vessel Personnel.'' 
It lists the burden hour per response for a marine casualty report as 1 
hour, with a corresponding loaded hourly wage of $58.08, which is 
equivalent to the 2023 GS-3 Outside Government Wage of $34.24 with a 
load factor of 1.70 24 25 Instead of using the COI rate for 
this final rule, we use the 2023 U.S. Bureau of Labor Statistics (BLS) 
wage for captains, mates, and pilots of water vessels, which is a 
loaded hourly wage of $69.60.\26\ In the 2018 Final Rule updating the 
property damage threshold for 46 CFR part 4, the Coast Guard 
acknowledged industry comments that some particularly complex reports 
require additional review before submission to the Coast Guard. Thus, 
the Coast Guard uses the same adjustment for marine casualty reports 
under title 33 of the CFR and assumes that 10 percent of marine 
casualty reports have an additional burden-hour response of 10 hours, 
to account for internal company review conducted by lawyers or upper 
management. This assumption does not increase the number of marine 
casualty reports but increases the burden time for each marine casualty 
report; the total increase in reports is 75 and 8 of those reports will 
take 11 hours to prepare instead of 1 hour. For this final rule, we use 
the BLS wage for lawyers, which is a loaded hourly wage of $125.56.\27\
---------------------------------------------------------------------------

    \24\ See the Burden Calculation Worksheet at www.reginfo.gov/public/do/PRAViewDocument?ref_nbr=201903-1625-001; accessed 01/21/
2026.
    \25\ Casualty reports are reviewed at Coast Guard Headquarters 
and the 2020 Washington, DC locality wage of $34.24 for a GS-9, Step 
5, employee is used (www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/salary-tables/pdf/2023/DCB_h.pdf; accessed 01/21/
2026). The load factor is 1.70 (rounded) estimated by dividing 
$67.00 average total compensation per hour by $39.50 average hourly 
wage from tables 4 and 2, respectively, of the 2017 Congressional 
Budget Office report, ``Comparing the Compensation of Federal and 
Private-Sector Employees 2011-2015'' (www.cbo.gov/system/files/115th-congress-2017-2018/reports/52637-federalprivatepay.pdf; 
accessed 01/21/2026). The loaded wage is the mean wage multiplied by 
the load factor. The loaded wage, $58.08, equals $34.24 multiplied 
by 1.6962.
    \26\ The 2023 mean wage for captains, mates, and pilots of water 
vessels is $47.03 (www.bls.gov/oes/2023/may/oes535021.htm; accessed 
01/21/2026). The load factor is equal to the ratio of total 
compensation (CMU2010000520000D) over wages and salaries 
(CMU2020000520000D) from 2023 or $37.92 divided by $25.61, or 1.48. 
The loaded wage is the mean wage multiplied by the load factor. The 
loaded wage, $69.60, equals $47.03 multiplied by 1.48. Series are 
from the Bureau of Labor Statistics, Employer Cost for Employee 
Compensation for Private Industry Workers, Transportation and 
Material Moving.
    \27\ The 2023 mean wage for lawyers is $84.84 (www.bls.gov/oes/2023/may/oes231011.htm; accessed 01/21/2026). The load factor is 
equal to the ratio of total compensation (CMU2010000520000D) over 
wages and salaries (CMU2020000520000D) from 2023 or $37.92 divided 
by $25.61, or 1.48. The loaded wage is the mean wage multiplied by 
the load factor. The loaded wage, $125.56, equals $84.84 multiplied 
by 1.48. Series are from the Bureau of Labor Statistics, Employer 
Cost for Employee Compensation for Private Industry Workers, 
Transportation and Material Moving.

           Table 11--Annual Cost of Additional Casualty Reports From Foreign MODUs, FOFs, and Vessels
----------------------------------------------------------------------------------------------------------------
                                      Annual       Burden hours     Annual hour                     Annual cost
                                     responses     per response       burden         Wage rate      burden ($)
                                             (A)             (B)     (C) = (A) x             (D)     (E) = (C) x
                                                                             (B)                             (D)
----------------------------------------------------------------------------------------------------------------
Marine Casualty Report..........              75               1              75          $69.60          $5,220
Additional Burden for 10% of                   8              10              80          125.56          10,045
 Respondents *..................
                                 -------------------------------------------------------------------------------
    Total Annual Cost...........  ..............  ..............  ..............  ..............          15,265
----------------------------------------------------------------------------------------------------------------
* Note that these increased review times do not constitute separate marine casualty reports. Rather, they
  increase the total burden time of a single report. We have only 74 new reports, 8 of which will require 11
  total hours to prepare.

    Table 12 shows the annual costs across a 10-year period of 
analysis. This annual cost of $15,265 generates a total cost of 
$107,218 over a 10-year period in 2024 dollars discounted at 7 percent.

        Table 12--Cost to Foreign Industry Over a 10-Year Period
------------------------------------------------------------------------
                                                      Total, discounted
                                       Annual                ($)
              Year                  undiscounted   ---------------------
                                      cost ($)          3%         7%
------------------------------------------------------------------------
1...............................           $15,265    $14,821    $14,267
2...............................            15,265     14,389     13,333
3...............................            15,265     13,970     12,461

[[Page 39477]]

 
4...............................            15,265     13,563     11,646
5...............................            15,265     13,168     10,884
6...............................            15,265     12,785     10,172
7...............................            15,265     12,412      9,507
8...............................            15,265     12,051      8,885
9...............................            15,265     11,700      8,303
10..............................            15,265     11,359      7,760
                                 ---------------------------------------
    Total.......................           152,654    130,217    107,218
                                 ---------------------------------------
        Annualized..............  ................     15,265     15,265
------------------------------------------------------------------------

Cost Savings From Property Damage Threshold Update
    As a supplement to the reporting change for foreign MODUs, FOFs, 
and vessels in this final rule, the Coast Guard will also update the 
property damage threshold for reporting a marine casualty under 33 CFR 
146.30 from $25,000 to $75,000 to align it with the threshold listed in 
46 CFR 4.05-1. The threshold in 46 CFR part 4 was previously updated to 
$75,000 in the 2018 Final Rule.\28\ Raising the threshold for 
reportable property damage will decrease the number of marine 
casualties reported, since more damage will have to be incurred to meet 
the reportable threshold. The decrease in reports from the threshold 
update will mitigate the increase in reports generated by the cost 
section of this rulemaking. In the following analysis, we apply the 
updated damage threshold of $75,000 to reports submitted for fixed OCS 
facilities under 33 CFR part 146 as well as to the estimated increase 
of 75 marine casualty reports, which used the $25,000 threshold when 
reported. Fixed OCS facilities were not included in the analysis of the 
2018 Final Rule. So, the reduction in reports from fixed OCS reporting 
facilities was never estimated.\29\
---------------------------------------------------------------------------

    \28\ ``Marine Casualty Reporting Property Damage Thresholds'' 
(83 FR 11889, March 19, 2018).
    \29\ Ibid. See page 11891 of under ``E. Amending the Dollar 
Amount Thresholds for Outer Continental Shelf Casualty Reporting in 
Title 33 of the CFR.''
---------------------------------------------------------------------------

    To estimate the decrease in reports, the Coast Guard identified 
marine casualty reports submitted in the last 8 years that were 
generated because of property damage alone and would no longer meet the 
updated higher damage threshold for reporting. These are marine 
casualty reports with property damage between the threshold of $25,000 
and the threshold of $75,000. We did not include fatality or injury 
incidents, as these types of incidents are reportable regardless of 
property damage.
    The Coast Guard identified 41 total reports submitted for MODUs, 
FOFs, and vessels currently reporting under 33 CFR part 146, generated 
because of property damage between $25,000 and $75,000, and between 
$100,000 and $200,000 for serious marine incidents, for an 8-year 
average of 7 reports annually. We then apply the same assumption that 
10 percent of marine casualty reports have an additional burden hour 
response of 10 hours to account for additional review time. We use the 
same assumed burden hour and wage used above for marine casualty 
reports, with a corresponding loaded wage rate of $69.60. Table 13 
shows how these assumptions generate a total annual cost savings of 
about $1,743 that can be applied to the increased costs described in 
the Costs from Increased Reporting section to reduce net costs.

         Table 13--Decreased Reporting Costs for MODUs, FOFs, and Vessels Moving to Title 46 of the CFR
----------------------------------------------------------------------------------------------------------------
                                     Estimated
                                  responses that
                                  will no longer   Burden hours     Annual hour      Wage rate      Annual cost
                                  meet reporting   per response       burden                           saved
                                     threshold
                                             (A)             (B)     (C) = (A) x             (D)     (E) = (C) x
                                                                             (B)                             (D)
----------------------------------------------------------------------------------------------------------------
Decrease from Property Damage                (7)               1             (7)          $69.60           -$487
 Threshold......................
Additional Burden for 10% of                 (1)              10            (10)          125.56          -1,256
 Respondents....................
                                 -------------------------------------------------------------------------------
    Total Cost Saved............  ..............  ..............  ..............  ..............          -1,743
----------------------------------------------------------------------------------------------------------------

    Table 14 shows how this annual savings of -$1,743 generates -
$12,241 in cost savings over 10 years in 2023 dollars, discounted at 7 
percent.

[[Page 39478]]



                    Table 14--Cost Savings to MODUs, FOFs, and Vessels Over a 10-Year Period
----------------------------------------------------------------------------------------------------------------
                                                                     Annual            Total, discounted ($)
                             Year                                 undiscounted   -------------------------------
                                                                    cost ($)            3%              7%
----------------------------------------------------------------------------------------------------------------
1.............................................................           -$1,743         -$1,692         -$1,629
2.............................................................            -1,743          -1,643          -1,522
3.............................................................            -1,743          -1,595          -1,423
4.............................................................            -1,743          -1,549          -1,330
5.............................................................            -1,743          -1,503          -1,243
6.............................................................            -1,743          -1,460          -1,161
7.............................................................            -1,743          -1,417          -1,085
8.............................................................            -1,743          -1,376          -1,014
9.............................................................            -1,743          -1,336            -948
10............................................................            -1,743          -1,297            -886
                                                               -------------------------------------------------
    Total.....................................................           -17,429         -14,867         -12,241
                                                               -------------------------------------------------
        Annualized............................................  ................          -1,743          -1,743
----------------------------------------------------------------------------------------------------------------

    For fixed OCS facilities, we identified three reports generated 
because of property damage between $25,000 and $75,000, and between 
$100,000 and $200,000 for serious marine incidents, and applied the 
same assumption that 10 percent of marine casualty reports have an 
additional burden hour response of 10 hours to account for additional 
review time. Since we assume any fraction of a report will be a whole 
report, we round the 8-year average of 0.4 up to one report. Table 15 
shows how we use the same burden hour and wage assumptions as above to 
generate cost savings of $1,534 annualized, which reduces the net cost 
of this final rule.

                                      Table 15--Decreased Reporting Costs for Fixed OCS Facilities to U.S. Industry
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                Estimated
                                                             responses that
                                                                 will no     Rounding up to   Burden hours     Annual hour    Wage rate     Annual cost
                                                               longer meet    nearest whole   per response       burden          ($)         saved ($)
                                                                reporting        number
                                                                threshold
                                                                                        (A)             (B)     (C) = (A) x          (D)     (E) = (C) x
                                                                                                                        (B)                          (D)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Decrease from Property Damage Threshold....................              -4              -4               1              -4       $69.60           -$278
Additional Burden for 10% of Respondents...................            -0.4              -1              10             -10       125.56          -1,256
                                                            --------------------------------------------------------------------------------------------
    Total Cost Saved.......................................  ..............  ..............  ..............  ..............  ...........          -1,534
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Table 16 shows how this annualized cost-savings of $1,534 generates 
$10,775 in cost savings over a 10-year period.

 Table 16--Cost Savings to Fixed OCS Facilities Over a 10-Year Period to
                              U.S. Industry
------------------------------------------------------------------------
                                   Annual           Total, discounted
            Year                undiscounted   -------------------------
                                    cost             3%           7%
------------------------------------------------------------------------
1...........................           -$1,534      -$1,489      -$1,434
2...........................            -1,534       -1,446       -1,340
3...........................            -1,534       -1,404       -1,252
4...........................            -1,534       -1,363       -1,170
5...........................            -1,534       -1,323       -1,094
6...........................            -1,534       -1,285       -1,022
7...........................            -1,534       -1,247         -955
8...........................            -1,534       -1,211         -893
9...........................            -1,534       -1,176         -834
10..........................            -1,534       -1,141         -780
                             -------------------------------------------
    Total...................           -15,340      -13,086      -10,775
                             -------------------------------------------
    Annualized..............  ................       -1,534       -1,534
------------------------------------------------------------------------


[[Page 39479]]

    Together, these cost savings to industry total -$3,277 = 
($1,743+$1,534) annually. Table 17 shows how these annual savings 
generate $23,016 in cost savings in 2023 dollars to industry over 10 
years discounted at 7 percent, or $3,277 annualized. We estimate this 
final rule generates $0.0029 million dollars in annualized cost savings 
at a 7-percent discount rate, discounted relative to year 2024, over a 
perpetual time horizon.

       Table 17--Total Cost Savings to Foreign and U.S. Industries
------------------------------------------------------------------------
                                       Annual         Total, discounted
              Year                  undiscounted   ---------------------
                                       savings          3%         7%
------------------------------------------------------------------------
1...............................           -$3,277    -$3,181    -$3,063
2...............................            -3,277     -3,089     -2,862
3...............................            -3,277     -2,999     -2,675
4...............................            -3,277     -2,911     -2,500
5...............................            -3,277     -2,827     -2,336
6...............................            -3,277     -2,744     -2,184
7...............................            -3,277     -2,664     -2,041
8...............................            -3,277     -2,587     -1,907
9...............................            -3,277     -2,511     -1,782
10..............................            -3,277     -2,438     -1,666
                                 ---------------------------------------
    Total.......................           -32,769    -27,953    -23,016
                                 ---------------------------------------
    Annualized..................  ................     -3,277     -3,277
------------------------------------------------------------------------

Cost to the U.S. Government
    The increase of 75 marine casualty reports will be mitigated by a 
total decrease of 11 reports: 7 fewer reports from the increased 
property damage threshold for MODUs, FOFs, and vessels, and 4 fewer 
reports from the update to fixed OCS facilities for a net increase of 
64 reports (75-11). Following the methodology in appendix B of COI 
number 1625-0001, we do not assume that the 10 percent of reports that 
take longer to prepare for submission will take longer for the Coast 
Guard to review. The burden-hour established in the COI already 
accounts for variance in the time to review marine casualty reports of 
different complexity and severity.
    We assume there is 1 hour of processing time at a GS-9 wage of 
$58.08 for each marine casualty report.\30\ For the 64 additional 
responses, there is a total annual cost of $3,717, as shown in table 
18.
---------------------------------------------------------------------------

    \30\ Casualty reports are reviewed at Coast Guard Headquarters 
and the 2020 Washington, DC locality wage of $34.24 for a GS-9, Step 
5, employee is used (www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/salary-tables/pdf/2023/DCB_h.pdf; accessed 01/21/
2026). The load factor is 1.70 (rounded) estimated by dividing 
$67.00 average total compensation per hour by $39.50 average hourly 
wage from tables 4 and 2, respectively, of the 2017 Congressional 
Budget Office report, ``Comparing the Compensation of Federal and 
Private-Sector Employees 2011-2015'' (www.cbo.gov/system/files/115th-congress-2017-2018/reports/52637-federalprivatepay.pdf; 
accessed 01/21/2026). The loaded wage is the mean wage multiplied by 
the load factor. The loaded wage, $58.08, equals $34.24 multiplied 
by 1.6962.

                                      Table 18--Cost to the U.S. Government
----------------------------------------------------------------------------------------------------------------
                                                            Burden hours      Annual
                Cost category                   Reponses    per response      hours      Wage rate   Annual cost
----------------------------------------------------------------------------------------------------------------
Processing Marine Casualty Reports..........           64               1           64       $58.08       $3,717
                                             -------------------------------------------------------------------
    Total Annual Cost.......................  ...........  ..............  ...........  ...........        3,717
----------------------------------------------------------------------------------------------------------------

    Table 19 shows how the annualized cost of $3,717 generates a total 
cost of $26,107 over a 10-year period.

    Table 19--Total Cost to the U.S. Government Over a 10-Year Period
------------------------------------------------------------------------
                                                      Total, discounted
                                       Annual                ($)
              Year                  undiscounted   ---------------------
                                        cost            3%         7%
------------------------------------------------------------------------
1...............................            $3,717     $3,609     $3,474
2...............................             3,717      3,504      3,247
3...............................             3,717      3,402      3,034
4...............................             3,717      3,302      2,836
5...............................             3,717      3,206      2,650
6...............................             3,717      3,113      2,477
7...............................             3,717      3,022      2,315
8...............................             3,717      2,934      2,163

[[Page 39480]]

 
9...............................             3,717      2,849      2,022
10..............................             3,717      2,766      1,890
                                 ---------------------------------------
    Total.......................            37,170     31,707     26,107
                                 ---------------------------------------
    Annualized..................  ................      3,717      3,717
------------------------------------------------------------------------

Net Cost
    The net cost of this final rule is $15,705 = [($15,265 + $3,717) - 
$3,277]. Table 20 shows the sum of the net costs over 10 years for a 
total net cost of $110,309, or $15,705 annualized.

                   Table 20--Total Net Costs to Foreign and U.S. Industry and U.S. Government
----------------------------------------------------------------------------------------------------------------
                                                                                              Total, discounted
                                    Cost to     Cost to U.S.    Cost savings     Net cost            ($)
              Year                  industry   Government ($)    to industry       ($)     ---------------------
                                                                     ($)                        3%         7%
----------------------------------------------------------------------------------------------------------------
1...............................      $15,265          $3,717        $(3,277)      $15,705    $15,248    $14,678
2...............................       15,265           3,717         (3,277)       15,705     14,804     13,718
3...............................       15,265           3,717         (3,277)       15,705     14,373     12,820
4...............................       15,265           3,717         (3,277)       15,705     13,954     11,982
5...............................       15,265           3,717         (3,277)       15,705     13,548     11,198
6...............................       15,265           3,717         (3,277)       15,705     13,153     10,465
7...............................       15,265           3,717         (3,277)       15,705     12,770      9,781
8...............................       15,265           3,717         (3,277)       15,705     12,398      9,141
9...............................       15,265           3,717         (3,277)       15,705     12,037      8,543
10..............................       15,265           3,717         (3,277)       15,705     11,686      7,984
                                 -------------------------------------------------------------------------------
    Total.......................  ...........  ..............  ..............      157,055    133,971    110,309
                                 -------------------------------------------------------------------------------
    Annualized..................  ...........  ..............  ..............  ...........     15,705     15,705
----------------------------------------------------------------------------------------------------------------

Benefits
    Through this final rule, the Coast Guard updates casualty reporting 
regulations under 33 CFR part 146, issued in 1955, to keep up with 
technology and recognize that MODUs and FOFs are more like oceangoing 
vessels than the fixed OCS facilities the regulations were originally 
written to address. We harmonize reporting requirements for all foreign 
MODUs, FOFs, and vessels to the same reporting standards as their U.S. 
counterparts. By requiring foreign entities to report maritime 
incidents under a more stringent regime and aligning their costs with 
their U.S. counterparts, these changes will enhance consistency on the 
OCS; improve awareness in the maritime domain through more complete 
casualty data; and facilitate better contingency planning, risk 
evaluation, and trend identification.
    Coast Guard District, Area, Headquarters, District, and local 
offices, and the OCS NCOE analyze and share accident information. In 
addition, volume V of the Coast Guard ``Marine Safety Manual'' \31\ 
contains guidance about broad distribution of accident and inspection 
information when potentially hazardous or systemic problems are found 
with a vessel, operator, or type of equipment. This data helps the 
Coast Guard identify and address safety issues proactively while 
improving the accuracy of the Coast Guard's decision making and policy 
development. Therefore, we believe a qualitative benefit of this final 
rule will come from the Coast Guard receiving reports of casualties 
that we would not otherwise receive.
---------------------------------------------------------------------------

    \31\ www.uscg.mil/guidance; accessed 01/21/2026.
---------------------------------------------------------------------------

Alternatives Considered
(1) No Action
    Keeping current reporting requirements would perpetuate reporting 
requirement inconsistencies between foreign- and U.S. MODUs, FOFs, and 
vessels engaged in an OCS activity. The resulting information gap 
prevents the Coast Guard from maintaining domain awareness on the OCS. 
Under the status quo, near misses on foreign MODUs, FOFs, and vessels 
would continue to not be reported to the Coast Guard, unlike they are 
on U.S. MODUs, FOFs, and vessels.
    Although there is no increased reporting cost with this 
alternative, it perpetuates information gaps in the maritime domain. 
Therefore, the Coast Guard did not choose this alternative.
(2) Lower Reporting Requirements for U.S. MODUs, FOFs, and Vessels To 
Harmonize Reporting Requirements Under 33 CFR part 146
    Rather than alter foreign reporting to harmonize with reporting in 
46 CFR part 4, the Coast Guard could alter all U.S. reporting in 46 CFR 
part 4 to harmonize with 33 CFR part 146. This will reduce the types of 
triggers that generate a reportable marine casualty and likely decrease 
the number of reports submitted to the Coast Guard. While reduced 
reporting would be a cost saving to industry, it could also reduce the 
Coast Guard's maritime domain awareness and increase risk to maritime 
safety and the marine environment. This risk is exemplified in

[[Page 39481]]

the April 2011 U.S. Coast Guard Report of Investigation into the 
Circumstances Surrounding the Explosion, Fire, Sinking and Loss of 
Eleven Crew Members Aboard the Mobile Offshore Dilling Unit Deepwater 
Horizon in the Gulf of Mexico, April 20-22, 2020 (Volume I), which is 
available in the docket for this final rule. The Deepwater Horizon 
report notes on page 106 that ``[t]he Coast Guard casualty reporting 
regulations for foreign-flagged MODU's engaging in U.S. OCS activities 
are insufficient.''
    For instance, under this alternative, the Coast Guard would not 
receive reports from vessels about casualties such as the flooding and 
total loss of power events the Deepwater Horizon MODU experienced in 
2008, allision, collision, grounding, or significant harm to the 
environment. These types of casualties are often associated with 
injury, fatality, and property damage and losing awareness of these 
incidents would likely decrease safety on the OCS. This alternative 
would also undermine the Coast Guard's ability to provide effective 
oversight of rapidly developing technology and to help manage risks to 
personnel, property, and the environment as the energy development 
industry moves further offshore. In this environment, FOFs are typical 
and, as explained in Section V. Discussion of Comments and Changes from 
the SNPRM of this preamble, the current regulations in 33 CFR part 146 
were originally developed and applied to fixed OCS facilities operating 
closer to land. Therefore, the Coast Guard did not choose this 
alternative.
(3) Alter Reporting Requirements on Foreign MODUs, FOFs, and Vessels To 
Harmonize With Reporting Requirements Under 46 CFR Part 4 (Chosen 
Action)
    The impact of altering the reporting requirements on foreign MODUs, 
FOFs, and vessels engaged in an OCS activity to harmonize with 46 CFR 
part 4 is demonstrated in the previous analysis. The Coast Guard chose 
this alternative over no action or reducing reporting because it 
increases domain awareness at no additional cost to U.S. industry while 
not losing situational awareness on particular casualty types as with 
alternative two.

B. Small Entities

    Under the Regulatory Flexibility Act 5 U.S.C. 601-612, we have 
considered whether this final rule will have a significant economic 
impact on a substantial number of small entities. The term ``small 
entities'' comprises small businesses, not-for-profit organizations 
that are independently owned and operated and are not dominant in their 
fields, and governmental jurisdictions with populations of less than 
50,000.
    The analyses done in both the 2014 NPRM and the SNPRM showed that 
the estimated impacts of this rulemaking will not have a significant 
economic impact on a substantial number of small entities. In this 
final rule, we show that this continues to be true with the final 
estimated costs. Therefore, the Coast Guard certifies under 5 U.S.C. 
605(b) that this final rule will not have a significant economic impact 
on a substantial number of small entities.
    Operations on the OCS encompass many different North American 
Industry Classification System (NAICS) codes. In a random sample of 80 
foreign entities taken from a population of 99 operators for this 
regulatory analysis, 15 different NAICS codes applied.\32\ Therefore, 
the standard for a small business in this sample has a wide range, with 
revenue thresholds ranging from $16.5 million to $1,250 million, and 
employee thresholds ranging from 100 to 1,000 employees.
---------------------------------------------------------------------------

    \32\ Not all operators had an available NAICS code; those that 
did not were assumed to be small entities.

              Table 21--Applicable NAICS Codes of Operators
------------------------------------------------------------------------
                                           Number of
   NAICS code          Description         operators     Size standard
                                           classified
------------------------------------------------------------------------
114111.........  Finfish Fishing........            1  1,000 Employees.
212111.........  Oil & Gas Exploration              1  1,000 Employees.
                  and Services.
213111.........  Drilling Oil and Gas              11  1,000 Employees.
                  Wells.
213112.........  Support Activities for             4  $41,500,000.
                  Oil and Gas Operations.
236115.........  New Single-Family                  1  $39,500,000.
                  Housing Construction
                  (Excludes For-Sale
                  Builders).
237110.........  Water and Sewer Line               8  $39,500,000.
                  and Related Structures
                  Construction.
238910.........  Site Preparation                   1  $16,500,000.
                  Contractors.
333132.........  Oil and Gas Field                  2  $1,250,000,000.
                  Machinery and
                  Equipment
                  Manufacturing.
423990.........  Other Miscellaneous                1  100 Employees.
                  Durable Goods Merchant
                  Wholesalers.
424460.........  Fish & Seafood Merchant            1  100 Employees.
                  Wholesalers.
441222.........  Boat Dealers...........            2  $35,000,000.
524298.........  All Other Insurance                4  $16,500,000.
                  Related Activities.
541330.........  Engineering Services...            2  $16,500,000.
999990.........  Unclassified...........            1  N/A.
------------------------------------------------------------------------

    In this sample of 80 foreign entities, 63 had a known revenue or 
employee count. Of these 63 foreign entities, 24 had annual revenues 
less than the threshold for a small business of that NAICS code. Five 
entities had fewer employees than the threshold for a small business of 
that NAICS code. In total, 29 entities of the 80 (36 percent) were 
small businesses.
    The primary cost of this final rule will be the additional marine 
casualty reports submitted by foreign businesses operating foreign 
MODUs, FOFs, and vessels on the OCS. The Coast Guard estimates the 
total annual cost will be $20,354 from an increase of 75 reports. While 
this cost will be distributed across the entire industry, we do not 
know the exact distribution, since the number of marine casualty 
reports per operator depends on that operator's specific behavior, 
which can change over time. In the last 10 years, the average number of 
reports per owner was 1.03 (compared to the 5-year

[[Page 39482]]

average of 1.64 from table 4). Assuming that trend continues, no single 
operator will generate more than two additional reports (rounding up) 
under this final rule.
    For this small entity analysis, we show the possible impact of two 
reports per operator at $407. This assumes the total average cost per 
report is $203.54 ($20,354 divided by 75 reports) to account for 
variance in the complexity of a report. To have a significant impact on 
an individual company under SBA standards, the cost will need to 
represent more than 1 percent of an individual company's total revenue. 
In the sample of companies with known revenue, none had an impact over 
1 percent. The highest impact is 0.51 percent.

  Table 22--Entities Where Cost Represents More Than 1 Percent of Total
                                Revenues
------------------------------------------------------------------------
                                               With revenue
                                              impact greater     Total
                                                  than 1%
------------------------------------------------------------------------
Number of Operators........................                 0         80
% of small entities with known revenue.....                0%         24
% of entities with known revenue...........                0%         62
------------------------------------------------------------------------

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 final rule so that they can better 
evaluate its effects on them and participate in the rulemaking. The 
Coast Guard will not retaliate against small entities that question or 
complain about this final 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 calls for a revised 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.
    This action contains proposed amendments to the existing 
information collection requirements previously approved under OMB 
Control Number 1625-0001.\33\ This amendment will increase the number 
of affected facilities and the burden for the existing COI number as 
described below.
---------------------------------------------------------------------------

    \33\ www.reginfo.gov/public/do/PRAOMBHistory?ombControlNumber=1625-0001; accessed 01/21/2026.
---------------------------------------------------------------------------

    Title: Report of Marine Casualty Information and Chemical Testing 
of Commercial Vessel Personnel.
    OMB Control Number: 1625-0001.
    Summary of the COI: This collection requires responses such as the 
preparation of written notification by completing a CG-2692 (series) 
form and the processing of records. We use this information to identify 
pertinent safety lessons and to initiate appropriate steps for reducing 
the likelihood of similar accidents in the future. The COI will aid the 
regulated public in assuring safe practices.
    Need for Information: These reporting requirements permit the Coast 
Guard to investigate marine casualties, as required by 46 U.S.C. 6301, 
to determine the causes of casualties and whether existing safety 
standards are adequate or new laws or regulations need to be developed. 
Receipt of a marine casualty report is often the only way in which the 
Coast Guard becomes aware of a marine casualty. It is, therefore, a 
necessary first step that provides the Coast Guard with the opportunity 
to determine the extent to which a casualty will be investigated.
    Proposed Use of Information: In the short term, the information 
provided in the report may also trigger corrective safety actions 
addressing immediate hazards or defective conditions, further 
investigations of mariner conduct or professional competence, or civil 
or criminal enforcement actions by the Coast Guard, other Federal 
agencies, or State and local authorities. In the long term, the 
information contained in the report becomes part of the Coast Guard's 
MISLE database. The Coast Guard uses the information in the MISLE 
database to identify safety problems and long-term trends, publish 
casualty summaries and annual statistics for public use, determine 
whether additional safety oversight or regulation is needed, measure 
the effectiveness of existing regulatory programs, and better focus the 
Coast Guard's limited marine safety resources.
    Description of the Respondents: The respondents are the owners, 
agents, masters, operators, or persons in charge that notify the 
nearest Coast Guard Sector Office, Marine Safety Unit, Coast Guard 
District or Area Offices whenever a vessel or facility is involved in a 
marine casualty.
    Number of Respondents: We estimate an increase of 64 respondents 
for a written report of marine casualty. This increases the total 
number of respondents for reporting marine casualties from 5,617 to 
5,681.
    Frequency of Response: The notification response is required only 
if a marine casualty occurs as defined in 46 CFR 4.03-2 and 46 CFR 
4.05-1.
    Burden of Response: For each response, we estimate that it takes 1 
hour for a vessel crewmember to complete all the necessary forms (CG-
2692 series). In addition, some marine casualty forms may undergo 
additional processing by the respondents. To account for this 
additional time, 10 percent of the forms submitted have 10 hours of 
additional burden.\34\
---------------------------------------------------------------------------

    \34\ The Coast Guard estimates that it takes up to 1 hour to 
complete the necessary CG-2692 (series) form. However, we received 
public comments in 2013 on COI number 1625-0001 stating that some 
submitters take more time--up to 8 to 12 hours--to complete the 
form. See https://www.regulations.gov/docket/USCG-2011-0710; 
accessed 01/21/2026. The reason for this difference is that some 
entities have the form(s) reviewed by shore-side personnel, such as 
an attorney, prior to submission to the Coast Guard. The practice of 
having a form reviewed by an attorney is not required by Coast Guard 
regulation. While we believe that this does not typically occur, we 
have adjusted our burden estimate to account for the added review.

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

[[Page 39483]]

    Estimate of Total Annual Burden: We estimate an increase of 64 
respondents for the 1-hour response of a written report of marine 
casualty. This increases the total burden hours for reporting marine 
casualties from 5,617 to 5,681 hours.
    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 COI.
    You are not required to respond to a COI unless it displays a 
currently valid OMB control number. OMB has not yet completed its 
review of this collection. Before the Coast Guard may enforce new 
collection of information requirements introduced by this rule, OMB 
would need to approve the Coast Guard's request to collect that 
information. We will publish a Federal Register notice once OMB takes 
action on our request.

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 final 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.
    Congress specifically granted the authority to regulate artificial 
islands, installations, and other devices permanently or temporarily 
attached to the OCS and in the waters adjacent thereto as it relates to 
the safety of life to the Secretary of the Department in which the 
Coast Guard is operating. Section 1333(d)(1) of Title 43 U.S.C. states 
that the Secretary ``shall have the authority to promulgate and enforce 
such reasonable regulations with respect to lights and other warning 
devices, safety equipment, and other matters relating to the promotion 
of safety of life and property on the artificial islands, 
installations, and other devices . . . as he may deem necessary.''
    As this final rule will improve the Coast Guard's ability to 
collect and analyze casualty data for incidents on the OCS to maintain 
and improve safety of life on OCS installations, it falls within the 
scope of authority Congress granted exclusively to the Secretary. This 
authority has been delegated to the Coast Guard and is exercised in 
this rulemaking, and the States may not regulate within this category 
of marine casualty reporting. Therefore, this final rule is consistent 
with the principles of federalism and preemption requirements 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. Additionally, for rules with implications and 
preemptive effect, Executive Order 13132 specifically directs agencies 
to consult with State and local governments during the rulemaking 
process. If you believe this final rule will have implications for 
federalism under Executive Order 13132, please call or email the person 
listed in the FOR FURTHER INFORMATION CONTACT section of this preamble.

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 final 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 final 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 final 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 final rule under Executive Order 13045 
(Protection of Children from Environmental Health Risks and Safety 
Risks). This final 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 final 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 final 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 (for example, 
specifications of materials, performance, design, or operation; test 
methods; sampling procedures; and related management systems practices) 
that are developed or adopted by voluntary consensus standards bodies.
    This final rule does not use technical standards. Therefore, we did 
not consider the use of voluntary consensus standards.

M. Environment

    We have analyzed this final 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. 4321-4370(f), and have 
determined that this action is one of a category of actions that do not 
individually or cumulatively have a significant effect on the human 
environment. Our final 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 final rule is categorically excluded under paragraphs L54 and 
L57

[[Page 39484]]

of Appendix A, Table 1 of DHS Instruction Manual 023-01-001-01, Rev. 
1.\35\ Paragraph L54 pertains to regulations which are editorial or 
procedural. Paragraph L57 pertains to regulations concerning the 
manning, documentation, admeasurement, inspection, and equipping of 
vessels. This final rule involves changing the reporting criteria for 
certain casualties that occur on the OCS for foreign MODUs, FOFs, and 
vessels engaged in OCS activities, and better harmonizes the casualty 
reporting requirements with those in place for similar U.S. MODUs, 
FOFs, and vessels. These changes promote the Coast Guard's marine 
safety mission.
---------------------------------------------------------------------------

    \35\ https://www.fema.gov/sites/default/files/2020-07/fema_dhs_instruction-manual_023-01-001-01.pdf; accessed 01/21/2026.
---------------------------------------------------------------------------

List of Subjects

33 CFR Part 140

    Continental shelf, Investigations, Marine safety, Occupational 
safety and health, Penalties, Reporting and recordkeeping requirements.

33 CFR Part 146

    Continental shelf, Marine safety, Occupational safety and health, 
Reporting and recordkeeping requirements, Vessels.

46 CFR Part 4

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

46 CFR Part 109

    Marine safety, Occupational safety and health, Oil and gas 
exploration, Reporting and recordkeeping requirements, Vessels.

    For the reasons discussed in the preamble, the Coast Guard amends 
33 CFR parts 140 and 146 and 46 CFR parts 4 and 109 as follows:

Title 33--Navigation and Navigable Waters

PART 140--GENERAL

0
1. The authority citation for part 140 is revised to read as follows:

    Authority:  43 U.S.C. 1333, 1348, 1350, 1356; Department of 
Homeland Security Delegation No. 00170.1, Revision No. 01.4.


0
2. Revise Sec.  140.201 to read as follows:


Sec.  140.201   General.

    The Coast Guard investigates casualties occurring on the OCS 
including:
    (a) Casualties on floating OCS facilities, MODUs, and vessels as 
described in 46 CFR part 4;
    (b) Casualties on fixed OCS facilities as described in 33 CFR 
146.30;
    (c) Oil spillage exceeding 200 barrels of oil in one occurrence 
during a 30-day period; and
    (d) Other injuries, casualties, accidents, complaints of unsafe 
working conditions, fires, pollution, and incidents occurring as a 
result of OCS activities as the Officer in Charge, Marine Inspection, 
deems necessary to promote the safety of life or property or protect 
the marine environment.


Sec.  140.203   [Amended]

0
3. Amend Sec.  140.203 as follows:
0
a. In paragraph (b) introductory text, remove the text ``Geological 
Survey'' and add, in its place, the text ``Bureau of Safety and 
Environmental Enforcement''.
0
b. In paragraph (b)(3), remove the text ``examing'' and add, in its 
place, the text ``examining''.

PART 146--OPERATIONS

0
4. The authority citation for part 146 is revised to read as follows:

    Authority:  43 U.S.C. 1333, 1348, 1350, 1356; 46 U.S.C. 70001, 
70116; sec. 109, Pub. L. 109-347, 120 Stat. 1884; Department of 
Homeland Security Delegation No. 00170.1, Revision No. 01.4.


0
5. Revise Sec.  146.1 to read as follows:


Sec.  146.1   Applicability.

    Unless otherwise specified, the provisions of this subpart apply to 
OCS facilities except mobile offshore drilling units.

0
6. Revise Sec.  146.30 to read as follows:


Sec.  146.30   Notice of casualties.

    (a) The owner, operator, or person in charge of a fixed OCS 
facility must ensure that the Coast Guard is notified as soon as 
possible after a casualty occurs, and by the most rapid means 
available, of each casualty involving the facility which results in:
    (1) Death;
    (2) Injury to five or more persons in a single incident;
    (3) Damage affecting the usefulness of primary lifesaving or 
firefighting equipment;
    (4) Injury causing any person to be incapacitated for more than 72 
hours; or
    (5) Damage to the facility exceeding $75,000 resulting from a 
collision by a vessel with the facility.
    (b) The notice required by paragraph (a) of this section must 
identify the person giving the notice and the facility involved and 
describe, insofar as practicable, the nature of the casualty and the 
extent of injury to personnel and damage to property.
    (c) Damage costs referred to in paragraph (a)(5) of this section 
include the cost of labor and material to restore the facility to the 
service condition which existed prior to the casualty, but does not 
include the cost of salvage, cleaning, or gas freeing of the facility.
    (d) The owner, operator, or person in charge of any floating OCS 
facility must report casualties in accordance with 46 CFR part 4.
    (e) The owner, operator, or person in charge of a foreign floating 
OCS facility must include in the written casualty report required under 
46 CFR 4.05-12 information relating to alcohol or drug involvement.

0
7. Revise subpart D to read as follows:

Subpart D--Vessels, including MODUs--Notice of Casualty


Sec.
146.301 Applicability.
146.303 Notice and written report of casualties.


Sec.  146.301   Applicability.

    This subpart applies to vessels, including MODUs, engaged in OCS 
activities other than U.S. vessels already required to report marine 
casualties under 46 CFR part 4 or subpart D of 46 CFR part 109.


Sec.  146.303   Notice and written report of casualties.

    The owner, operator, or person in charge of a vessel, including a 
MODU, engaged in OCS activities must ensure compliance with the notice 
of casualty requirements in 46 CFR part 4.

Title 46--Shipping

PART 4--MARINE CASUALTIES AND INVESTIGATIONS

0
8. The authority citation for part 4 is revised to read as follows:

    Authority:  43 U.S.C. 1333; 46 U.S.C. 2103, 2303a, 2306, 6101, 
6301, 6305, 56311, and 70034; Department of Homeland Security 
Delegation No. 00170.1, Revision No. 01.4. Subpart 4.40 issued under 
49 U.S.C. 1903(a)(1)(E).


0
9. Revise Sec.  4.01-1 to read as follows:


Sec.  4.01-1   Scope of regulation.

    The regulations in this part govern marine casualty reporting, 
investigations of marine casualties, and submission of reports designed 
to

[[Page 39485]]

increase the likelihood of timely assistance to floating outer 
continental shelf (OCS) facilities, mobile offshore drilling units 
(MODUs), and other vessels in distress.

0
10. Revise Sec.  4.01-3(c) to read as follows:


Sec.  4.01-3   Reporting exclusion.

* * * * *
    (c) Vessels, floating OCS facilities, and MODUs are excluded from 
the requirements of Sec.  4.05-1(a)(5) and (6) with respect to the 
death or injury of shipyard or harbor workers when such accidents are 
not the result of either a reportable casualty (for example, collision) 
or a reportable equipment casualty (for example, cargo boom failure) 
and are subject to the reporting requirements of Occupational Safety 
and Health Administration (OSHA) under 29 CFR part 1904.
* * * * *

0
11. Add Sec.  4.03-0 to subpart 4.03 to read as follows:


Sec.  4.03-0   Definitions that apply to this subpart.

    This subpart contains terms defined for purposes of this part. 
Other definitions used in this part are in 33 CFR 140.10.

0
12. Revise Sec.  4.03-1 to read as follows:


Sec.  4.03-1   Marine casualty or accident.

    Marine casualty or accident means--
    (1) Any casualty or accident involving any vessel other than a 
public vessel that--
    (i) Occurs upon the navigable waters of the United States, its 
territories or possessions;
    (ii) Involves any U.S. vessel wherever such casualty or accident 
occurs; or
    (iii) With respect to a foreign tank vessel operating in waters 
subject to the jurisdiction of the United States, including the 
Exclusive Economic Zone (EEZ), involves significant harm to the 
environment or material damage affecting the seaworthiness or 
efficiency of the vessel.
    (2) Any casualty or accident involving a vessel, floating OCS 
facility, or MODU as defined in 33 CFR part 140, when they are engaged 
in an OCS activity.
    (3) The term ``marine casualty or accident'' applies to events 
including, but not limited to:
    (i) Any fall overboard, injury, or loss of life of any person;
    (ii) Grounding;
    (iii) Stranding;
    (iv) Foundering;
    (v) Flooding;
    (vi) Collision;
    (vii) Allision;
    (viii) Explosion;
    (ix) Fire;
    (x) Reduction or loss of electrical power, propulsion, or steering 
capabilities;
    (xi) Failures or occurrences, regardless of cause, which impair any 
aspect of operation, components, or cargo;
    (xii) Any other circumstance that might affect or impair 
seaworthiness, efficiency, or fitness for service or route;
    (xiii) Any incident involving significant harm to the environment;
    (xiv) Any occurrences of injury or loss of life to any person while 
diving from a vessel, and using underwater breathing apparatus; or
    (xv) Any incident described in Sec.  4.05-1(a).


Sec.  4.03-2   [Amended]

0
13. Amend Sec.  4.03-2 as follows:
0
a. In the introductory text, after the text ``vessel in commercial 
service'' add the text ``, floating OCS facility, or MODU as described 
in Sec.  4.03-1(1) and (2)''.
0
b. In paragraph (a)(2), after the text ``a vessel in commercial 
service,'' add the text ``floating OCS facility, or MODU,''.
0
c. In paragraph (a)(4), after the text ``vessel'' add the text ``or 
MODU''.

0
14. Revise Sec.  4.03-65(c)(1), (6), and (7), to read as follows:


Sec.  4.03-65   Significant harm to the environment.

* * * * *
    (c) * * *
    (1) Vessel, floating OCS facility, or MODU location and proximity 
to land or other navigational hazards;
* * * * *
    (6) The nature of damage to the vessel, floating OCS facility, or 
MODU; and
    (7) Failure or breakdown aboard the vessel, floating OCS facility, 
or MODU, its machinery, or equipment.

0
15. Revise the heading of subpart 4.04 to read as follows:

Subpart 4.04--Notice of Potential Casualty

0
16. Revise Sec.  4.04-1 to read as follows:


Sec.  4.04-1   Reports of potential casualty.

    (a) An owner, charterer, managing operator, or agent of a vessel, 
floating OCS facility, or MODU to which this part applies must 
immediately notify either of the following Coast Guard officers if 
there is reason to believe the vessel, floating OCS facility, or MODU 
is lost or imperiled:
    (1) The Coast Guard district rescue coordination center (RCC) 
cognizant over the area the vessel, floating OCS facility, or MODU was 
last operating; or
    (2) The Coast Guard search and rescue authority nearest to where 
the vessel, floating OCS facility, or MODU was last operating.
    (b) Reasons for belief that a vessel, floating OCS facility, or 
MODU is in distress include, but are not limited to, lack of 
communication with or nonappearance of the vessel, floating OCS 
facility, or MODU.

0
17. Revise Sec.  4.04-3 to read as follows:


Sec.  4.04-3   Reports of lack of communication.

    The owner, charterer, managing operator, or agent that is required 
to report to the United States Flag Merchant Vessel Location Filing 
System under the authority of section 212(A) of the Merchant Marine 
Act, 1936 (46 App. U.S.C. 1122a), must immediately notify the Coast 
Guard if more than 48 hours have passed since receiving communication. 
This notification must be given to the Coast Guard district RCC 
cognizant over the last known operating area.

0
18. Amend Sec.  4.04-5 by revising the introductory text and paragraph 
(a) to read as follows:


Sec.  4.04-5   Substance of reports.

    The owner, charterer, managing operator, or agent, notifying the 
Coast Guard under Sec.  4.04-1 or Sec.  4.04-3, must:
    (a) Provide the name and identification number of the vessel, 
floating OCS facility, or MODU, the names of the individuals on board, 
and other information that may be requested by the Coast Guard (when 
providing the names of the individuals on board for a passenger vessel, 
the list of passengers need only meet the requirements of 46 U.S.C. 
3502); and
* * * * *

0
19. Amend Sec.  4.05-1 by revising paragraph (a) to read as follows:


Sec.  4.05-1   Notice of marine casualty.

    (a) Immediately after addressing resultant safety concerns, the 
owner, agent, master, operator, or person in charge, must notify the 
nearest Coast Guard units, to include Sector, Marine Safety Unit, Coast 
Guard District or Area Offices whenever a vessel, floating OCS 
facility, or MODU to which this part applies is involved in a marine 
casualty consisting of--
    (1) An unintended grounding, or an unintended strike of (allision 
with) a bridge;
    (2) An intended grounding, or an intended strike of a bridge, that 
creates a hazard to navigation, the environment, or the safety of a 
vessel, floating OCS facility, or MODU that meets any criterion of 
paragraphs (a)(3) through (8) of this section;
    (3) A loss of main propulsion, primary steering, or any associated 
component

[[Page 39486]]

or control system that reduces the maneuverability of the vessel, 
floating OCS facility, or MODU;
    (4) An occurrence materially and adversely affecting the vessel's 
seaworthiness or fitness for service or route, including but not 
limited to fire, flooding, or failure of or damage to fixed fire-
extinguishing systems, lifesaving equipment, auxiliary power-generating 
equipment, or bilge-pumping systems;
    (5) A loss of life;
    (6) An injury that requires professional medical treatment 
(treatment beyond first aid) and, if the person is engaged or employed 
on board a vessel in commercial service, floating OCS facility, or MODU 
in commercial service, that renders the individual unfit to perform 
their routine duties; or
    (7) An occurrence causing property-damage in excess of $75,000, 
this damage including the cost of labor and material to restore the 
property to its condition before the occurrence, but not including the 
cost of salvage, cleaning, gas-freeing, drydocking, or demurrage.
    (8) An occurrence involving significant harm to the environment as 
defined in Sec.  4.03-65.
* * * * *

0
20. Revise Sec.  4.05-5 to read as follows:


Sec.  4.05-5   Substance of marine casualty notice.

    The notice required in Sec.  4.05-1 must include the name and 
official number of the vessel, floating OCS facility, or MODU involved, 
the name of the owner or agent, the nature and circumstances of the 
casualty, the locality in which it occurred, the nature and extent of 
injury to persons, and the damage to property.

0
21. Amend Sec.  4.05-15 by revising paragraph (a) to read as follows:


Sec.  4.05-15   Voyage records, retention of.

    (a) The owner, agent, master, or person in charge of any vessel, 
floating OCS facility, or MODU involved in a marine casualty must 
retain such voyage records as are normally maintained, such as both 
rough and smooth deck and engine room logs, bell books, navigation 
charts, navigation work books, compass deviation cards, gyro records, 
stowage plans, records of draft, aids to mariners, night order books, 
radiograms sent and received, radio logs, crew and passenger lists, 
articles of shipment, official logs, and other material which might be 
of assistance in investigating and determining the cause of the 
casualty. The owner, agent, master, other officer, or person 
responsible for the custody thereof, must make these records available 
upon request, to a duly authorized investigating officer, 
administrative law judge, officer, or employee of the Coast Guard.
* * * * *

0
22. Revise Sec.  4.05-20 to read as follows:


Sec.  4.05-20   Report of accident to aid to navigation.

    Whenever a vessel, floating OCS facility, or MODU collides with a 
buoy, or other aid to navigation under the jurisdiction of the Coast 
Guard, or is connected with any such collision, the person in charge 
must report the accident to the nearest Officer in Charge, Marine 
Inspection. No report on Form CG-2692 is required unless one or more of 
the results listed in Sec.  4.05-1 occur.

0
23. Revise the heading of subpart 4.06 to read as follows:

Subpart 4.06--Mandatory Chemical Testing Following Serious Marine 
Incidents Involving Vessels in Commercial Service, Floating OCS 
Facilities, or MODUs in Commercial Service

0
24. Amend Sec.  4.06-1 by revising paragraphs (b) and (e) to read as 
follows:


Sec.  4.06-1   Responsibilities of the marine employer.

* * * * *
    (b) When a marine employer determines that a casualty or incident 
is, or is likely to become, a serious marine incident, the marine 
employer must take all practicable steps to have each individual 
engaged or employed on board the vessel, floating OCS facility, or MODU 
who is directly involved in the incident chemically tested for evidence 
of drug and alcohol use as required in this part.
* * * * *
    (e) The marine employer must ensure that all individuals engaged or 
employed on board a vessel, floating OCS facility, or MODU are fully 
informed about the requirements of this subpart, and that appropriate 
vessel personnel are trained as necessary in the practical applications 
of these requirements.


Sec.  4.06-3   [Amended]

0
25. Amend Sec.  4.06-3 in paragraphs (a)(1) introductory text and 
(b)(1) introductory text by, after the text ``vessel'' adding the text 
``, floating OCS facility, or MODU''.

0
26. Amend Sec.  4.06-5 by revising paragraphs (a) and (b) to read as 
follows:


Sec.  4.06-5   Responsibility of individuals directly involved in 
serious marine incidents.

    (a) Any individual engaged or employed on board a vessel, floating 
OCS facility, or MODU who is determined to be directly involved in an 
SMI must provide a blood, breath, saliva, or urine specimen for 
chemical testing when directed to do so by the marine employer or a law 
enforcement officer.
    (b) If the individual refuses to provide a blood, breath, saliva, 
or urine specimen, this refusal must be noted on Forms CG-2692 and CG-
2692B and in the vessel's official log book, if a log book is required. 
The marine employer must remove the individual as soon as practical 
from duties that directly affect the safe operation of the vessel, 
floating OCS facility, or MODU.
* * * * *

0
27. Amend Sec.  4.06-15 by:
0
a. In paragraphs (a)(1) and (3) and (b)(2), after the text ``vessel'' 
adding the text ``, floating OCS facility, or MODU''; and
0
b. Adding paragraph (b)(3).
    The addition reads as follows:


Sec.  4.06-15   Accessibility of chemical testing devices.

* * * * *
    (b) * * *
    (3) The owner, operator, or person in charge of a foreign vessel, 
floating OCS facility, or MODU who is unable to meet the drug testing 
requirements of 49 CFR part 40 must obtain approval for an alternative 
drug testing process from the U.S. Coast Guard Drug and Alcohol 
Prevention and Investigation Program Manager via email at [email protected] 
before engaging in OCS activities.

0
28. Amend Sec.  4.06-30 by revising paragraph (a) to read as follows:


Sec.  4.06-30   Specimen collection in incidents involving fatalities.

    (a) When an individual engaged or employed on board a vessel, 
floating OCS facility, or MODU dies as a result of a serious marine 
incident, blood and urine specimens must be obtained from the remains 
of the individual for chemical testing, if practicable to do so. The 
marine employer must notify the appropriate local authority, such as 
the coroner or medical examiner, as soon as possible, of the fatality 
and of the requirements of this subpart. The marine employer must 
provide the specimen collection and shipping kit and request that the 
local authority assist in obtaining the necessary specimens. When the 
custodian of the remains is a person other than the local authority, 
the marine employer must

[[Page 39487]]

request the custodian to cooperate in obtaining the specimens required 
under this part.
* * * * *

0
29. Amend Sec.  4.06-60 by revising paragraph (a) to read as follows:


Sec.  4.06-60   Submission of reports and test results.

    (a) Whenever an individual engaged or employed on a vessel, 
floating OCS facility, or MODU is identified as being directly involved 
in a serious marine incident, the marine employer must complete Form 
CG-2692B (Report of Mandatory Chemical Testing Following a Serious 
Marine Incident Involving Vessels in Commercial Service).
* * * * *


Sec.  4.07-45   [Amended]

0
30. Amend Sec.  4.07-45 by removing the word ``shall'' and adding, in 
its place, the word ``must''.

PART 109--OPERATIONS

0
31. The authority citation for part 109 is revised to read as follows:

    Authority:  43 U.S.C. 1333; 46 U.S.C. 3306, 6101, 10104; 
Department of Homeland Security Delegation No. 00170.1, Revision No. 
01.4.


0
32. Revise Sec.  109.411 to read as follows:


Sec.  109.411   Notice and reporting of casualty.

    The owner, operator, or person in charge of a mobile offshore 
drilling unit (MODU) regulated under this part must provide notice and 
report marine casualties in accordance with 46 CFR part 4.

    Dated: June 25, 2026.
R.C. Compher,
Captain, U.S. Coast Guard, Assistant Commandant for Prevention Policy.
[FR Doc. 2026-13137 Filed 6-29-26; 8:45 am]
BILLING CODE 9110-04-P