`[Federal Register Volume 89, Number 241 (Monday, December 16, 2024)]
[Rules and Regulations]
[Pages 101490-101500]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-29555]


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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

46 CFR Part 67

[Docket No. USCG-2023-0584]
RIN 1625-AC93


Updated Document Submission Process for Compliance With 
Electronic Records Mandate

AGENCY: Coast Guard, DHS.

ACTION: Final rule.

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SUMMARY: The Coast Guard is issuing a final rule to update regulations 
that reflect the Coast Guard National Vessel Documentation Center's 
processes and capabilities, as well as align regulations with statutory 
reporting timelines. The processes noted pertain to electronic file 
submissions, requirements for submission of original build evidence, 
and return of existing Certificates of Documentation (CODs). In 
addition, the time period related to reporting changes to COD 
information is updated to align with statute.

DATES: This final rule is effective January 15, 2025.

ADDRESSES: To view documents mentioned in this preamble as being 
available in the docket, go to www.regulations.gov, type USCG-2023-0584 
in the search box, and click ``Search.'' Next, in the Document Type 
column, select ``Supporting & Related Material.''

FOR FURTHER INFORMATION CONTACT: For information about this document, 
call or email Mr. Ronald (Sam) Teague, Coast Guard National Vessel 
Documentation Center; telephone (304) 271-2506, email 
[email protected].

SUPPLEMENTARY INFORMATION:

Table of Contents for Preamble

I. Abbreviations
II. Basis and Purpose, and Regulatory History
III. Background and Discussion of Rule
IV. Regulatory Analyses
    A. Regulatory Planning and Review
    B. Small Entities
    C. Assistance for Small Entities
    D. Collection of Information
    E. Federalism
    F. Administrative Procedure Act
    G. Unfunded Mandates
    H. Taking of Private Property
    I. Civil Justice Reform
    J. Protection of Children
    K. Indian Tribal Governments
    L. Energy Effects
    M. Technical Standards
    N. Environment

I. Abbreviations

Builder's Certificate Builder's Certification and First Transfer of 
Title (form CG-1261)
CFR Code of Federal Regulations
CGAA 2018 Frank LoBiondo Coast Guard Authorization Act of 2018
COD Certificate of Documentation
CY Calendar year
DHS Department of Homeland Security
Fax Facsimile
FR Federal Register
FTE Full-time equivalent
GS General Schedule
NARA National Archives and Records Administration
NPRM Notice of proposed rulemaking
NVDC U.S. Coast Guard National Vessel Documentation Center
OMB Office of Management and Budget
OPM Office of Personnel Management
PDF Portable document format
Sec.  Section
U.S.C. United States Code
YoY Year-over-year
YTD Year-to-date

II. Basis and Purpose, and Regulatory History

    Section 2103 of Title 46 of the United States Code (U.S.C.) gives 
the Secretary of the Department in which the Coast Guard is operating 
broad regulatory authority to carry out the provisions of 46 U.S.C. 
subtitle II (Vessels and Seamen), where vessel documentation provisions 
in 46 U.S.C. chapter 121 are located. The Secretary's authority is 
delegated to the Coast Guard by the Department of Homeland Security 
(DHS) Delegation No. 00170.1, Revision No. 01.4, paragraph II (92)(a).
    The Coast Guard did not publish a notice of proposed rulemaking 
(NPRM) before this rule. As explained in Section IV.F Administrative 
Procedure Act of this preamble, the Coast Guard finds that this rule is 
exempt from notice and comment as a procedural rule under 5 U.S.C. 
553(b)(A) and for good cause under 5 U.S.C. 553(b)(B).

III. Background and Discussion of Rule

    In 2007, the Coast Guard amended vessel documentation regulations 
to eliminate the requirement to provide certain original documents to 
the U.S. Coast Guard National Vessel Documentation Center (NVDC) for 
recording and eliminated the additional fee for filing by facsimile 
(fax).\1\ Currently, Coast Guard regulations allow the filing of 
instruments, such as Bills of Sale, Deeds of Gifts, Mortgages, and 
Notices of Claim of Lien, to the NVDC by paper submission or 
electronically. Regulations on the

[[Page 101491]]

electronic means for filing specify two technologies: via fax or 
Portable Document Format (PDF) attachment(s) to electronic mail.
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    \1\ Vessel Documentation; Recording of Instruments direct final 
rule, 72 FR 42310, Aug. 2, 2007; and confirmation of effective date, 
72 FR 58762, Oct. 17, 2007.
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    This rule removes references to the specific electronic filing 
methodologies of PDF and faxing and revises the regulations with more 
general terms to capture other electronic filing options. It also 
removes referencing a specific technology that is no longer a part of 
NVDC's current process, because the system provided to and used by the 
NVDC does not support fax capabilities.
    Electronic filing is not mandatory. With this rule, vessel owners 
retain the ability to file paper records with the Coast Guard. 
Historically, paper records that were scanned and uploaded into the 
system were ultimately archived with the Federal Records Center, in 
accordance with National Archives and Records Administration (NARA) 
requirements. The NVDC still scans and uploads paper records, but, 
NARA, with few exceptions, stopped accepting paper records as of 
January 1, 2023. See Transition to Electronic Records, OMB and NARA 
Memorandum M-19-21 (June 28, 2019).\2\ NARA does recognize a possible 
exception for records of intrinsic historic value to its rule on no 
longer accepting paper documents. See Federal Records Management: 
Digitizing Permanent Records and Reviewing Records Schedules, 88 FR 
28410, 28412-13 (May 4, 2023) and Guidance on OMB and NARA Memorandum 
Transition to Electronic Records, NARA Bulletin 2020-01 (September 30, 
2020).\3\ However, that exception would not apply to the vast majority 
of NVDC records, if any. Therefore, paper records currently submitted 
to the NVDC are shelved for up to 2 years awaiting destruction by the 
Coast Guard.
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    \2\ https://www.archives.gov/files/records-mgmt/policy/m-19-21-transition-to-federal-records.pdf (accessed December 10, 2024).
    \3\ https://www.archives.gov/records-mgmt/bulletins/2020/2020-01 
(accessed December 10, 2024).
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    In response to NARA's paper processing change, the NVDC is 
maximizing electronic filing capabilities to reduce the need to 
digitize physical submissions, store the submissions, and ultimately 
destroy them. Additionally, more general language in the regulations 
allows the Coast Guard and affected vessel owners to take advantage of 
developing technologies as they become available for electronic 
submission of instruments.
    Currently, 46 CFR 67.99 requires original vessel build evidence. 
Without the ability to send original documents to NARA, the NVDC is 
required to either mail the form CG-1261, the original Builder's 
Certification and First Transfer of Title (hereafter ``Builder's 
Certificate''), to the vessel owner, or shred the document. The NVDC 
currently accepts copies of other original documents and ceased 
requiring vessel owners to submit original evidence of build as of July 
1, 2022. In line with this practice, the Coast Guard is amending 46 CFR 
67.99 to remove the requirement for original evidence of build 
documents.
    In addition, 46 CFR 67.141(a)(4), 67.167(a), and 67.169(b) 
currently require an outstanding Certificate of Documentation (COD) be 
submitted as part of the application procedure for COD replacement, 
exchange, or deletion. This rulemaking removes this requirement.
    On December 4, 2018, Congress enacted the Frank LoBiondo Coast 
Guard Authorization Act of 2018 (CGAA 2018). Section 512 of the CGAA 
2018 amended 46 U.S.C. 12105(e)(3)(A) \4\ to require vessel owners to 
notify the Coast Guard no later than 30 days after each change in 
information that the issuance of a COD for the vessel is based on if it 
occurs before the expiration of the certificate. The Coast Guard 
previously revised 46 CFR 67.319 to reflect this statutory change (86 
FR 5022, Jan. 19, 2021). With this final rule, the Coast Guard amends 
46 CFR 67.113(e) and 67.321 to also extend, from 10 to 30 days, the 
time that a vessel owner has to report a change of a managing owner's 
address to the NVDC.
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    \4\ Public Law 115-282, 132 Stat. 4192.
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    This rulemaking will benefit vessel owners in the form of greater 
clarification by codifying current policy and practice at the NVDC of 
not requiring vessel owners to mail original build evidence and 
instruments. In addition, Coast Guard regulations will accurately 
reflect current statutory periods for vessel owners to submit changes 
to their address used to apply for a COD. The Coast Guard will also 
benefit from greater clarity, as this final rule harmonizes the CFR 
with current practices.

IV. Regulatory Analyses

    We developed this 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), as amended 
by Executive Order 14094 (Modernizing Regulatory Review), and 13563 
(Improving Regulation and Regulatory Review) direct agencies to assess 
the costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). Executive 
Order 13563 emphasizes the importance of quantifying costs and 
benefits, reducing costs, harmonizing rules, and promoting flexibility.
    The Office of Management and Budget (OMB) has not designated this 
rule a significant regulatory action under section 3(f) of Executive 
Order 12866, as amended by Executive Order 14094. Accordingly, OMB has 
not reviewed this regulatory action. A regulatory analysis follows.
Summary of Regulatory Analysis
    As discussed in Section III, Background and Discussion of Rule, in 
this preamble, the NVDC no longer sends or receives faxes, leaving PDF 
attachment to email as the only electronic means of submission. Since 
July 1 of 2022, the Coast Guard ceased requiring vessel owners to 
submit original Builder's Certificates to the NVDC, and NVDC began 
accepting copies of the original certificate.\5\ To better implement 
this change, the Coast Guard is maximizing electronic filing 
capabilities, although vessel owners will retain the option to submit 
paper records to the Coast Guard. Additionally, more general language 
in the regulations allows the Coast Guard to take advantage of 
developing technologies as they become available for electronic 
submission of records.
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    \5\ https://www.dco.uscg.mil/Portals/9/DCO%20Documents/NVDC/Change%20in%20Requirements%20for%20Original%20Build%20Certificate.pdf?ver=qOU5UxE1-bvviJMo75ZCmA%3D%3D (accessed December 10, 2024).
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    To provide a comprehensive analysis covering both of these 
programmatic changes with implementation of the final rule, the Coast 
Guard utilizes two baselines, a pre-program change baseline that 
represents the state of the world without the program change in 2022 
and a ``no action'' baseline that represents the state of the world 
without the regulation. According to federal guidelines, the economic 
impact of the rule should be accounted for in the period in which the 
changes occur. The rulemaking aligns regulations with current industry 
practice, which existed prior to the rulemaking. Therefore, the 
economic impact of the rule, which normally includes costs, cost-
savings,

[[Page 101492]]

and benefits, will be attributed to the ``pre-program change'' 
baseline.
    The ``pre-program'' baseline is used to measure the economic 
impacts of the program changes (a timespan that includes events 
beginning in 2022 through 2033), and the ``no action'' baseline is used 
to measure the impacts of the final rule (a projected 10-year period, 
which includes events beginning in 2024 through 2033).
    Tables 1 and 2 present the overall impacts for both baselines.
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    \6\ Estimates for total COD applicants are not used in the 
estimation of cost savings. Total COD applications were estimated 
using a 5-year moving average, and similar to methods described 
below for the affected population methodology, we applied a growth 
rate to estimate future years and an annual average.

  Table 1--Summary of the Affected Population, Costs, Cost-Savings, and
                                Benefits
------------------------------------------------------------------------
                                                           Final rule
                                     Program change     impacts compared
             Category                impacts  (``no     to ``no action''
                                   action'' baseline)       baseline
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Applicability....................  July 1, 2022: the   Original Evidence
                                    Coast Guard began   of Build
                                    accepting copies    Documents:
                                    of Builder's        Amends 46 CFR
                                    Certificates and    67.99(a) and
                                    other documents     reflects current
                                    through             processes and
                                    electronic means,   capabilities at
                                    primarily email     the NVDC,
                                    with PDF            eliminating the
                                    attachments.        requirement for
                                                        vessel owners to
                                                        submit original
                                                        evidence of
                                                        build documents
                                                        and allowing
                                                        copies.
                                                       Reporting Period:
                                                        Amends 46 CFR
                                                        67.113(e) and
                                                        67.321 to extend
                                                        the time, from
                                                        10 days to 30
                                                        days, in which a
                                                        vessel owner
                                                        must notify the
                                                        NVDC of a change
                                                        of address, or
                                                        when information
                                                        submitted for
                                                        the issuance of
                                                        a COD changes.
                                                       Electronic Record
                                                        Submissions:
                                                        Amends 46 CFR
                                                        67.209, 67.218
                                                        and 67.219 to
                                                        eliminate
                                                        restrictions on
                                                        electronic
                                                        submission
                                                        options.
                                                       Return of CODs:
                                                        Amends 46 CFR
                                                        67.167(a) and
                                                        67.171(b), and
                                                        deletes
                                                        67.169(b) and
                                                        141(a)(4), which
                                                        requires
                                                        applicants to
                                                        return original
                                                        CODs upon
                                                        application for
                                                        a replacement or
                                                        exchange of COD.
Affected Population..............  Original Evidence   Original Build
                                    of Build            Evidence:
                                    Documents:          Approximately
                                    Approximately       20,068 Initial
                                    20,068 Initial      COD applications
                                    COD applications    are expected to
                                    are expected to     be submitted to
                                    be submitted to     the NVDC
                                    the NVDC annually   annually over
                                    over the next 10    the next 10
                                    years.              years.
                                    Additionally,      Reporting Period:
                                    this population     On average, this
                                    includes the        change applies
                                    18,336 and 17,558   to the entire
                                    applicants who      population of
                                    submitted to NVDC   NVDC customers,
                                    in 2022 and 2023,   estimated at
                                    respectively.       161,587 COD
                                   Electronic Record    holders over the
                                    Submissions: On     next 10 years.
                                    average, this      Electronic Record
                                    change applies to   Submissions: On
                                    the entire          average, this
                                    population of       change applies
                                    NVDC customers,     to the entire
                                    estimated at        population of
                                    161,587 \6\ COD     NVDC customers,
                                    holders over the    estimated at
                                    next 10 years.      161,587 COD
                                    Additionally,       holders over the
                                    this population     next 10 years.
                                    includes the       Return of CODs:
                                    213,087 and         On average, this
                                    174,343             change applies
                                    applicants who      to the
                                    submitted to NVDC   population of
                                    in 2022 and 2023,   NVDC customers
                                    respectively.       who submit a COD
                                   Return of CODs: On   other than an
                                    average, this       Initial COD,
                                    change applies to   estimated at
                                    the population of   141,519 COD
                                    NVDC customers      holders over the
                                    who submit a COD    next 10 years.
                                    other than an
                                    Initial COD,
                                    estimated at
                                    141,519 COD
                                    holders over the
                                    next 10 years.
                                    Additionally,
                                    this population
                                    includes the
                                    194,751 and
                                    156,785
                                    applicants who
                                    submitted to NVDC
                                    in 2022 and 2023,
                                    respectively.
Costs............................  Additional costs    This final rule
                                    were not imposed    does not impose
                                    by a program        any new costs to
                                    change to           industry by
                                    accepting           amending 46 CFR
                                    electronic          67.99(a) and
                                    versions of a       harmonizing CFR
                                    Builder's           language with
                                    Certificate,        current
                                    among other         procedures at
                                    documents, since    NVDC, as the
                                    July 1 of 2022.     NVDC has
                                                        accepted
                                                        electronic
                                                        versions of a
                                                        Builder's
                                                        Certificate,
                                                        among other
                                                        documents, since
                                                        July 1 of 2022.
                                                        The option of
                                                        submitting an
                                                        original
                                                        document to the
                                                        NVDC by mail is
                                                        preserved in
                                                        this final rule.
Cost-savings (in 2023 dollars, 2%  Electronic          This final rule
 discount rate) *.                  Records--Industry   does not impose
                                    : Estimated         any new cost
                                    annualized cost-    savings beyond
                                    savings of          those
                                    approximately       attributable to
                                    $14,914 in 2023     the program
                                    dollars,            change. The
                                    discounted at 2     opportunity for
                                    percent.            cost saving to
                                   Electronic           industry began
                                    Records--Governme   in July 2022,
                                    nt: Estimated       when vessels
                                    annualized cost     owners no longer
                                    savings of          had to submit
                                    approximately       original
                                    $208,985 in 2023    evidence of
                                    dollars,            build documents
                                    discounted at 2     to the Coast
                                    percent.            Guard. The cost
                                   Estimated total      savings of this
                                    annualized cost-    new practice
                                    savings of          were incurred
                                    approximately       even without a
                                    $223,899 in 2023    new regulation
                                    dollars,            codifying the
                                    discounted at 2     practice.
                                    percent.            Therefore, all
                                                        cost savings in
                                                        this analysis
                                                        are assigned to
                                                        the program
                                                        change in 2022.
                                                       Additionally,
                                                        there are no
                                                        estimated cost
                                                        savings to
                                                        industry or
                                                        Government
                                                        associated with
                                                        amending 46 CFR
                                                        67.113(e) and
                                                        67.321.
Benefits.........................  Electronic          Reporting Period--
                                    Records--Industry   Industry: There
                                    : The electronic    are no
                                    submission of       qualitative or
                                    evidence of build   quantitative
                                    benefits industry   benefits.
                                    by reducing the     However,
                                    burden to the       industry is
                                    public of           given an
                                    printing and        increase in the
                                    mailing paper       allotted time
                                    records to the      provided to
                                    NVDC.               vessel owners in
                                   Electronic           which they must
                                    Records--Governme   notify the NVDC
                                    nt: Government      of any changes
                                    benefits by         to the issuance
                                    reducing the need   of their COD,
                                    to digitize         from 10 to 30
                                    original physical   days.
                                    applications,      Reporting Period--
                                    store the           Government:
                                    submissions, and    There are no
                                    ultimately shred    qualitative
                                    or send evidence    benefits to
                                    of build            Government from
                                    documents back to   extending the
                                    vessel owners.      period in which
                                                        vessel owners
                                                        must notify the
                                                        NVDC of any
                                                        changes to the
                                                        issuance of
                                                        their COD from
                                                        10 to 30 days.
------------------------------------------------------------------------
* Totals may not add due to rounding.


[[Page 101493]]


                Table 2--Baseline Matrix--Changes Between the Final Rule and the CFR by Baseline
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                         Description of                            ``No action''
       Subpart               change           Type of change      baseline impact       ``Final rule''  impact
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Sec.   67.99(a).....  Revises the text,    Economic (pre-       The Coast Guard      No economic impact.
                       ``Evidence of the    programmatic         began receiving
                       facts of build may   change baseline)     electronic copies
                       be either a          and Editorial.       of documents in
                       completed original                        July of 2022. This
                       form CG-1261 or                           immediately
                       other original                            reduced the cost
                       document. . .'' to                        to vessel owners
                       ``Evidence of the                         and operators of
                       facts of build may                        the previous
                       be a copy of                              requirement to
                       either the                                mail in original
                       original,                                 documents.
                       completed form CG-                       Estimated
                       1261 (Builder's                           annualized cost-
                       Certification and                         savings to
                       First Transfer of                         industry of
                       Title), or other                          approximately
                       document. . .''.                          $14,165 in 2023
                                                                 dollars,
                                                                 discounted at 2%.
                                                                Estimated
                                                                 annualized cost-
                                                                 savings to
                                                                 Government of
                                                                 approximately
                                                                 $198,501 in 2023
                                                                 dollars,
                                                                 discounted at 2%.
                                                                Total annualized
                                                                 cost-savings of
                                                                 approximately
                                                                 $212,666 in 2023
                                                                 dollars,
                                                                 discounted at 2%.
Sec.   67.113(e)....  Update ``within 10   Editorial..........  No economic impact.  No economic impact.
                       days'' to ``within
                       30 days,'' in
                       accordance with
                       67.319.
Sec.   67.141(a)(4).  Remove ``(4) If the  Editorial..........  No economic impact.  No economic impact.
                       application is for
                       replacement of a
                       mutilated document
                       or exchange of
                       documentation, the
                       outstanding
                       Certificate of
                       Documentation.''.
Sec.   67.167(a)....  Remove .''. . send   Editorial..........  No economic impact.  No economic impact.
                       or deliver the
                       Certificate to the
                       National Vessel
                       Documentation
                       Center, and . .
                       .''.
Sec.   67.169(b)....  Remove ``b) When     Editorial..........  No economic impact.  No economic impact.
                       application for
                       replacement of a
                       Certificate of
                       Documentation is
                       required because
                       the Certificate
                       has been
                       mutilated, the
                       existing
                       Certificate must
                       be physically
                       given up to the
                       National Vessel
                       Documentation
                       Center.''.
Sec.   67.171(b)....  Remove ``or deliver  Editorial..........  No economic impact.  No economic impact.
                       the original
                       Certificate of
                       Documentation to
                       the National
                       Vessel
                       Documentation
                       Center together
                       with.''.
Sec.   67.209.......  Remove reference to  Editorial..........  No economic impact.  No economic impact.
                       67.218 and 67.219.
Sec.   67.218.......  PDF filing--edit to  Editorial..........  No economic impact.  No economic impact.
                       reference
                       ``electronic
                       filing.''.
Sec.   67.219.......  67.219 is            Editorial..........  No economic impact.  No economic impact.
                       eliminated
                       entirely.
Sec.   67.321.......  Replaces the word    Editorial..........  No economic impact.  No economic impact.
                       ``shall'' with
                       ``must,'' and the
                       number ``10'' with
                       ``30.''.
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Affected Population/Methodology
    Every application for an Initial COD submitted to the NVDC must 
include evidence of build in the form of a Builder's Certificate or 
other original documentation containing the same information. Given 
that a Builder's Certificate, or other original documentation 
containing the same information, must be submitted to the NVDC with 
every Initial COD application, for our analysis, the number of 
applications for Initial CODs submitted to the NVDC is used 
interchangeably with the number of Builder's Certificates submitted to 
the NVDC.
    Table 3 displays the number of Initial COD applications submitted 
to the NVDC for Commercial (b), Fishing (c), and Recreational Vessels 
(d), beginning in calendar year (CY) 2018, and ending in CY 2023. The 
sum of these categories will be considered ``Industry'' for purposes of 
this rule. The sum of columns (b), (c), and (d) yields the total 
Initial COD applications submitted to the NVDC per calendar year (e), 
where (e) = (b) + (c) + (d).

 Table 3--Initial CODs Applications (e) Submitted to the NVDC for Commercial (b), Fishing (c), and Recreational
                                                   Vessels (d)
----------------------------------------------------------------------------------------------------------------
                 Year                     Commercial        Fishing      Recreational   Initial COD applications
(a)                                                (b)             (c)             (d)     (e) = (b) + (c) + (d)
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2018..................................           3,010             444          12,444                    15,898
2019..................................           3,161             450          12,811                    16,422
2020..................................           3,559             439          15,510                    19,508
2021..................................           3,790             466          15,798                    20,054
2022..................................           3,159             456          14,721                    18,336
2023..................................           3,269             471          13,818                    17,558
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Methodology--Affected Population
    Our methodology begins with establishing an affected population 
growth rate, to help project Initial COD applicants for an additional 
10 years. Table 4 illustrates the year-over-year (YoY) change for each 
vessel category, calculated as the percentage change within each 
series, over the most recent 5 years' worth of data.

[[Page 101494]]



               Table 4--Percentage Change of Initial COD Applications Between CY 2018 and CY 2023
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                                                                                                   Initial COD
                      Year                         Commercial        Fishing      Recreational     applications
(a)                                                         (b)             (c)             (d)              (e)
----------------------------------------------------------------------------------------------------------------
2018...........................................  ..............  ..............  ..............  ...............
2019...........................................             5.0             1.4             2.9              3.3
2020...........................................            12.6            -2.4            21.1             18.8
2021...........................................             6.5             6.2             1.9              2.8
2022...........................................           -16.6            -2.1            -6.8             -8.6
2023...........................................             3.5             3.3            -6.1             -4.2
                                                ----------------------------------------------------------------
    Average Growth.............................  ..............  ..............  ..............            * 2.4
----------------------------------------------------------------------------------------------------------------
* Average Growth figure is rounded. Therefore, totals may not sum due to rounding.

    As we can see from Table 4, the range in growth between CY 2018 and 
CY 2023 across all vessel categories fluctuated from a -16.6 percent 
YoY decline in Commercial vessels (b) during CY 2022, to a 21.1 percent 
YoY growth for Recreational vessels (d) in CY 2020. However, each 
series has grown over time on average; approximately 2.2 percent for 
Commercial vessels (b), 1.2 percent for Fishing vessels (c), and 2.6 
percent for Recreational vessels (d). The average growth rate for all 
Initial COD applications is estimated at 2.4 percent. This figure is 
used to forecast the Initial COD applications for years 2024-2033.
    Projecting Initial CODs from 2024 to 2033, Table 5 shows the 
average number of Initial COD applications for the next 10 years, 
derived by applying the 2.4 percent growth rate measured in Table 4. We 
take the average annual estimate of Initial COD applications and use 
that number to represent the affected population for Initial COD 
applications for each year from 2024-2033 for both the pre-program 
change baseline and the ``no action'' baseline. Here, the baselines are 
treated equally, as we don't anticipate the final rule to induce a 
change in applications.

                             Table 5--Initial CODs Projections for the Next 10-Years
----------------------------------------------------------------------------------------------------------------
                 Year                     Commercial        Fishing      Recreational   Initial COD applications
(a)                                                (b)             (c)             (d)     (e) = (b) + (c) + (d)
----------------------------------------------------------------------------------------------------------------
2024..................................           3,348             482          14,152                    17,982
2025..................................           3,429             494          14,494                    18,416
2026..................................           3,512             506          14,844                    18,861
2027..................................           3,596             518          15,202                    19,317
2028..................................           3,683             531          15,569                    19,783
2029..................................           3,772             544          15,945                    20,261
2030..................................           3,863             557          16,331                    20,751
2031..................................           3,957             570          16,725                    21,252
2032..................................           4,052             584          17,129                    21,765
2033..................................           4,150             598          17,543                    22,291
                                       -------------------------------------------------------------------------
    Average 2024-2033.................  ..............  ..............  ..............                    20,068
----------------------------------------------------------------------------------------------------------------

Methodology--Industry and Government Cost Savings
    With a value for the average Initial COD applications for future 
years, we can begin estimating cost savings for all years, by 
multiplying the annual affected population no longer needing to submit 
a Builder's Certificate by the opportunity cost of either postage to 
industry, and time and wages to assess the documents by the Federal 
Government. Table 6 provides a list of key inputs used to estimate cost 
savings including the postage rate for assessing industry savings and 
time and wages associated with government savings.

        Table 6--Inputs for Industry and Government Cost-Savings
                               [2022-2033]
------------------------------------------------------------------------
                   Inputs                            HR equivalent
------------------------------------------------------------------------
Government:
    12-minute Process Time..................  0.2 Hour.
    Hourly Wage.............................  $24.88.
    Load Factor.............................  1.75.
    GDP Deflator (2023).....................  1.092.
    Total Wage Rate.........................  $47.64.
Industry:
    Postage Submission Cost.................  $0.68.
    Percent of Submission...................  100%.
------------------------------------------------------------------------


[[Page 101495]]

    Cost savings to industry is calculated as the product of the 
estimated average number of Builder's Certificates that the Coast Guard 
no longer expects to be submitted by mail annually, and the price of a 
standard, stamped, letter-sized envelope bought through the United 
States Postal Service (USPS). For years 2024 through 2033, the 
estimated average affected population is approximately 20,068 Initial 
COD applications submitted yearly, assuming 100 percent electronic 
submission rate. Additionally, according to the USPS, the cost of 
purchasing a standard, stamped, letter-sized envelope is approximately 
$0.68.\7\ To estimate the average annualized cost savings per form not 
mailed to the NVDC, we multiply the estimated annual affected 
population of Initial CODs by the cost of mailing each form. For 
example, for a given future year, we multiply the average 20,068 
Initial COD applications by avoided postage of $0.68, to estimate an 
annual cost savings of $13,646.
---------------------------------------------------------------------------

    \7\ https://www.usps.com/business/prices.htm (accessed December 
10, 2024).
---------------------------------------------------------------------------

    Cost savings to government is calculated as the product of the 
estimated average number of Initial COD applications that the Coast 
Guard no longer expects to receive in the mail annually, and the 12 
minutes it takes to process mailed-in forms, or 0.2 hours, and the 
total wage rate of a GS-5 employee at $47.64 per hour (the total wage 
rate is equal to the hourly wage multiplied by the load rate).
    To explain more about Government savings estimates, in general, 
once a Builder's Certificate paper copy is received by the NVDC, 
General Schedule (GS)-5 personnel must first locate and open the mail, 
put it in the mail tray, classify and sort it, and scan each Builder's 
Certificate into the Coast Guard's database. Once the application has 
been processed, the documents will be shelved at NVDC's file room and 
await destruction. According to our subject matter expert at NVDC, this 
process takes approximately 12 minutes per batch of paper copies, or 
0.2 hours' worth of time for GS-5 employees (12 / 60 = 0.2 hrs.).
    According to the Office of Personnel Management (OPM) salary table 
published for CY 2024, which is the official publication for Federal 
Government employees' salaries and wages, the average hourly wage-rate 
in the Washington DC metropolitan area for a GS-5 employee at the step 
5 level is approximately $24.88.\8\
---------------------------------------------------------------------------

    \8\ https://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/salary-tables/24Tables/html/DCB_h.aspx (accessed 
December 10, 2024).
---------------------------------------------------------------------------

    To account for the employee benefits to which employees are 
typically entitled, we use the Congressional Budget Office (CBO)'s 
Comparing the Compensation of Federal and Private-Sector Employees, 
2011 to 2015 \9\ study to derive a load factor. This is a one-time 
study conducted by the CBO that compared the wages and salaries between 
Federal Government and private sector employees.
---------------------------------------------------------------------------

    \9\ Congressional Budget Office, Comparing the Compensation of 
Federal and Private-Sector Employees, 2011 to 2015.'' https://www.cbo.gov/system/files/115th-congress-2017-2018/reports/52637-federalprivatepay.pdf (accessed December 10, 2024).
---------------------------------------------------------------------------

    Multiplying a benefit factor \10\ by the estimated average hourly 
wage-rate for GS-5 employees, $24.88, yields a loaded wage-rate of 
approximately $47.64. As stated earlier, the process of receiving, 
sorting, logging, storing, and destroying or returning a Builder's 
Certificate is estimated at approximately 0.2 hours' of labor time for 
a GS-5 employee. Multiplying this value by the estimated loaded hourly 
wage-rate, $47.64, yields a total of $9.53 of avoided cost per form not 
processed by the NVDC ($47.64 x 0.2 hrs. = $9.53).
---------------------------------------------------------------------------

    \10\ We divide the Total Compensation for employees in the 
Federal Government with some college as presented in Table 4--
Federal and Private Sector Total Compensation, $56.30, by the 
average Wage for an employee in the Federal Government with some 
college, $32.10 in Table 2--Federal and Private-Sector Wages, by 
Workers' Educational Attainment. Dividing the Federal Sector Total 
Compensation value, $56.30, by the Federal Sector Wages for an 
employee with some college, $32.10, yields a load factor of 1.75, 
$56.30 / $32.10 = 1.75.
    Source: Congressional Budget Office, ``Comparing the 
Compensation of Federal and Private-Sector Employees, 2011 to 
2015.'' https://www.cbo.gov/system/files/115th-congress-2017-2018/reports/52637-federalprivatepay.pdf (accessed December 10, 2024).
---------------------------------------------------------------------------

    The NVDC expects an average annual reduction in burden of 
approximately 20,068 Builder's Certificate paper copies. The product of 
this value, and the opportunity cost per form, $9.53, yields an 
estimated annual average undiscounted cost-savings of approximately 
$191,248. That is, 20,068 x $9.53 = $191,248.
Methodology--Time Value Formulation
    Lastly, with respect to time value considerations, all savings 
figures are discounted by the number of years into the future 
considered under this economic analysis, as well as for years 2022 and 
2023.\11\ For the 2 previous years, we discount using multiplication in 
replacement of division and assign period numbers 1 and 0, 
respectively. Present valuation is then calculated by multiplying the 
previous year value by one (1) plus the discount rate, exponentiating 
the year-period. For years 2024, and all years forward, we assign 
corresponding period number 1, 2, 3 . . . sequentially, and apply the 
standard present value formula, dividing future values by one (1) plus 
the discount rate raised to the corresponding year-period.
---------------------------------------------------------------------------

    \11\ Net Present Value (NPV) is used to estimate the future 
value of money in terms of the present value. Money can be invested 
at annual returns for future income, which means the value of money 
spent in the future may be less than if that money had been invested 
instead. NPV allows us to calculate how much the total expenditures 
are worth discounted backwards to the present, so we can estimate 
the true value of the money expended or saved.
---------------------------------------------------------------------------

Cost-Benefit Analysis From the Program Change (2022-2033)
Costs
    We found no costs associated with or imposed by program changes to 
accept electronic versions of a Builder's Certificate, among other 
documents, starting on July 1 of 2022. Applicants have been able to 
submit documents electronically, or by mail, and the option of 
submitting an original document to the NVDC by mail is preserved in 
this final rule. We assume the time it takes to prepare an electronic 
version versus a hard copy to be the same.
Cost Savings--Undiscounted and Discounted Savings to Industry
    Using the inputs described in the methodology section, in table 7 
we display the estimated undiscounted and discounted cost-savings to 
industry. The discounted figures are calculated as the product of the 
anticipated Initial COD applications expected to be submitted to the 
NVDC (from tables 3 and 5), and the cost of a standard, stamped 
envelope, determined at $0.68 per submission (Table 6). This figure is 
then discounted for a 10-year period.\12\ Including years 2022 (initial 
year of the programmatic change) and 2023, the Coast Guard estimates 
total cost savings to industry of approximately $147,236 in 2023 
dollars, discounted at 2 percent.
---------------------------------------------------------------------------

    \12\ For future years, the discount formula: Yearly Cost-
Savings/(1+.02) [supcaret] Year Number.

[[Page 101496]]



                         Table 7--Undiscounted and Discounted Cost-Savings for Industry
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
Year                                                              Initial COD     Undiscounted  2% Discount \13\
                                                                 applications     cost-savings
----------------------------------------------------------------------------------------------------------------
2022...........................................            1           18,336          $12,468           $12,718
2023...........................................            0           17,558           11,939            11,939
2024...........................................            1           20,068           13,646            13,379
2025...........................................            2           20,068           13,646            13,116
2026...........................................            3           20,068           13,646            12,859
2027...........................................            4           20,068           13,646            12,607
2028...........................................            5           20,068           13,646            12,360
2029...........................................            6           20,068           13,646            12,117
2030...........................................            7           20,068           13,646            11,880
2031...........................................            8           20,068           13,646            11,647
2032...........................................            9           20,068           13,646            11,419
2033...........................................           10           20,068           13,646            11,195
                                                             ---------------------------------------------------
    Total......................................  ...........  ...............          160,870           147,236
                                                             ---------------------------------------------------
    Annualized Equivalent Cost.................  ...........  ...............  ...............            14,914
----------------------------------------------------------------------------------------------------------------

Undiscounted and Discounted Cost Savings to Government
---------------------------------------------------------------------------

    \13\ Discount total for a year is calculated with the following 
formula: (Undiscounted cost savings * discount rate) [supcaret] 
number of years from present.
---------------------------------------------------------------------------

    The Government did incur cost savings under changes during the pre-
programmatic baseline period by not having to process, store, and shred 
or return as many paper Builder's Certificates. In addition to years 
2022, and 2023, the Coast Guard estimates that, from 2024 to 2033, the 
Government will not need to process, store, or destroy, on average, 
approximately 20,068 Initial COD paper instruments annually in the 
future.
    As shown in table 8, the Coast Guard estimates total cost savings 
to the Government of approximately $2,063,232 in 2023 dollars, 
discounted at 2 percent.

                        Table 8--Undiscounted and Discounted Cost-Savings for Government
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
Year                                                              Initial COD     Undiscounted       2% Discount
                                                                 applications     cost-savings
----------------------------------------------------------------------------------------------------------------
2022...........................................            1           18,336         $174,723           178,217
2023...........................................            0           17,558          167,309           167,309
2024...........................................            1           20,068          191,226           187,477
2025...........................................            2           20,068          191,226           183,801
2026...........................................            3           20,068          191,226           180,197
2027...........................................            4           20,068          191,226           176,664
2028...........................................            5           20,068          191,226           173,200
2029...........................................            6           20,068          191,226           169,803
2030...........................................            7           20,068          191,226           166,474
2031...........................................            8           20,068          191,226           163,210
2032...........................................            9           20,068          191,226           160,010
2033...........................................           10           20,068          191,226           156,872
                                                             ---------------------------------------------------
    Total......................................  ...........  ...............        2,254,294         2,063,232
                                                             ---------------------------------------------------
    Annualized Equivalent Cost.................  ...........  ...............  ...............           208,985
----------------------------------------------------------------------------------------------------------------

    Over a 12-year period, the programmatic changes will save the 
Government approximately $2,063,232 when discounted at 2 percent.
Total Undiscounted and Discounted Cost Savings--Industry and Government
    As presented in table 9, the estimated total cost savings for both 
industry and Government is approximately $2,210,468, in 2023 dollars, 
discounted at 2 percent.

[[Page 101497]]



                             Table 9--Total Undiscounted and Discounted Cost-Savings
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
Year                                                              Initial COD     Undiscounted       2% Discount
                                                                 applications     cost-savings
----------------------------------------------------------------------------------------------------------------
2022...........................................            1           18,336         $187,191          $190,935
2023...........................................            0           17,558          179,248           179,248
2024...........................................            1           20,068          204,872           200,855
2025...........................................            2           20,068          204,872           196,917
2026...........................................            3           20,068          204,872           193,056
2027...........................................            4           20,068          204,872           189,271
2028...........................................            5           20,068          204,872           185,559
2029...........................................            6           20,068          204,872           181,921
2030...........................................            7           20,068          204,872           178,354
2031...........................................            8           20,068          204,872           174,857
2032...........................................            9           20,068          204,872           171,428
2033...........................................           10           20,068          204,872           168,067
                                                ----------------------------------------------------------------
    Total......................................  ...........  ...............        2,415,164         2,210,468
                                                ----------------------------------------------------------------
    Annualized Equivalent Cost.................  ...........  ...............  ...............           223,899
----------------------------------------------------------------------------------------------------------------

Benefits
    In addition to cost savings above, industry applicants likely 
experience additional qualitative benefits of increased flexibility and 
ease with the option for electronic submission of Initial COD 
applications.
    Additionally, programmatic changes benefit Government by reducing 
the need to digitize original physical applications, store the 
submissions, and ultimately shred or send evidence of build documents 
back to vessel owners.
Cost-Benefit Analysis From the No Action Baseline (2024-2033)
Costs--All Provisions
    This final rule does not impose any new costs to industry or the 
Government by amending 46 CFR 67.99(a), 67.113(e), 67.321, 67.99(a), or 
67.113(e); that is, the allowance for evidence of build copies, or for 
the extension from 10 to 30 days of notification for changes in 
ownership or address.
Cost Savings--Electronic Records
    As shown under the previous sections, the final rule does not 
produce additional cost savings beyond those attributable to the 
programmatic changes which occurred in 2022, when the NVDC ceased 
requiring vessel owners to submit original evidence of build documents. 
The opportunity for cost saving to industry and Government began in 
2022, following the NVDC's acceptance of electronic submission of 
documents and copies. Therefore, all cost savings in this analysis are 
assigned to the program change of 2022.
Cost Savings--Reporting Period
    There are no quantifiable cost savings to industry or the 
Government by amending 46 CFR 67.113(e) and 67.321, which extends the 
time, from 10 to 30 days, in which a vessel owner must notify the Coast 
Guard for a change of address or when information submitted for the 
issuance of a COD changes.
Benefits--All Provisions
    This final rule eliminates confusion among the regulated public as 
it reconciles language in regulations with current procedures at the 
NVDC, which has been accepting electronic versions of Builder's 
Certificates since July 1 of 2022.
    Industry benefits from the increased period to notify the Coast 
Guard of any changes to their COD by an additional 20 days. The Coast 
Guard considers this a qualitative benefit because it increases the 
flexibility to the affected population by extending the time in which 
vessel owners must notify the Coast Guard of any changes to their COD.
    No new qualitative benefits will occur to Government by amending 
Sec.  67.113(e), which extends the reporting period by which vessel 
owners must notify the NVDC when information submitted for the issuance 
of a COD changes, from 10 to 30 days.
Alternatives
    Alternative (1). The Coast Guard takes no action. The Coast Guard 
considered not updating 46 CFR part 67. However, since July 1 of 2022, 
NVDC has accepted electronic means of submission of build evidence. 
Therefore, taking no action implies preserving the mismatch between 
regulations and the NVDC's current procedures. This would cause 
confusion among the regulated public.
    Alternative (2). The Coast Guard considered requiring paper 
submission via mail delivery for vessel owners to obtain a COD and 
other documents. This alternative would have reverted the NVDC to a 
previous practice of receiving and issuing documents through mail 
submission. This alternative was rejected because it was more expensive 
and less convenient than electronic submission, for both the NVDC and 
vessel owners. The time required for mailing submissions and documents, 
in addition to the expense of postage and added wages for personnel to 
process the forms, made this a less desirable alternative.
    Alternative (3). The Coast Guard considered creating a web portal 
on the NVDC website, to allow vessel owners to submit documents 
directly into a database. This would save time over electronic 
submission via email. However, a web portal must be built by C5I, the 
command organization that controls NVDC resources, and they currently 
do not have the means to create a web portal for document submission. 
This alternative is, therefore, unfeasible.

B. Small Entities

    The Regulatory Flexibility Act of 1980 (RFA), 5 U.S.C. 601-612,\14\ 
requires federal agencies to consider the potential impact on small 
entities when they issue a rule after being required to first publish a 
general NPRM. Under 5 U.S.C. 604(a), a regulatory flexibility analysis 
is not required for this final rule because, under 5 U.S.C. 553(b)(A) 
and (B), we are not required to publish

[[Page 101498]]

a general NPRM. This final rule is exempt from notice and comment 
requirements for the reasons stated in Section IV. F. Administrative 
Procedure Act. Therefore, we did not conduct a regulatory flexibility 
analysis for this rule.
---------------------------------------------------------------------------

    \14\ https://www.govinfo.gov/content/pkg/USCODE-2022-title5/pdf/USCODE-2022-title5-partI-chap6-sec601.pdf (accessed December 10, 
2024).
---------------------------------------------------------------------------

C. Assistance for Small Entities

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

D. Collection of Information

    This rule calls for no new or revised collection of information 
under the Paperwork Reduction Act of 1995, 44 U.S.C. 3501-3520. We 
estimate the time burden to submit paper versus electronic copies to be 
the same.

E. Federalism

    A rule has implications for federalism under Executive Order 13132 
(Federalism) if it has a substantial direct effect on States, on the 
relationship between the National Government and the States, or on the 
distribution of power and responsibilities among the various levels of 
government. We have analyzed this rule under Executive Order 13132 and 
have determined that it is consistent with the fundamental federalism 
principles and preemption requirements described in Executive Order 
13132. Our analysis follows.
    It is well settled that States may not regulate in categories 
reserved for regulation by the Coast Guard. It is also well settled 
that all the categories covered in 46 U.S.C. 3306, 3703, 7101, and 8101 
(design, construction, alteration, repair, maintenance, operation, 
equipping, personnel qualification, and manning of vessels), as well as 
the reporting of casualties and any other category in which Congress 
intended the Coast Guard to be the sole source of a vessel's 
obligations, are within the field foreclosed from regulation by the 
States. See the Supreme Court's decision in United States v. Locke and 
Intertanko v. Locke, 529 U.S. 89, 120 S.Ct. 1135 (2000). This rule 
implements changes to the federal vessel documentation requirements of 
46 U.S.C. chapter 121, over which Congress clearly has granted the 
Coast Guard, via delegation from the Secretary, exclusive authority. 
Therefore, because the States may not regulate within these categories, 
this rule is consistent with the fundamental federalism principles and 
preemption requirements described in Executive Order 13132.
    While it is well settled that States may not regulate in categories 
in which Congress intended the Coast Guard to be the sole source of a 
vessel's obligations, the Coast Guard recognizes the key role that 
State and local governments may have in making regulatory 
determinations.

F. Administrative Procedure Act

    The Coast Guard believes that this rule should be exempt from 
notice and comment rulemaking requirements as a rule of procedure under 
5 U.S.C. 553(b)(A) and for good cause under 5 U.S.C. 553(b)(B).
    Rules are procedural if they are ``primarily directed toward 
improving the efficient and effective operations of an agency.'' 
Mendoza v. Perez, 754 F.3d 1002, 1023 (D.C. Cir. 2014) (quoting 
Batterton v. Marshall, 648 F.2d 694, 702 n.34 (D.C.C. 1980). The 
purpose of the exception is ``to ensure that agencies retain latitude 
in organizing their internal operations.'' Mendoza, 754 F.3d at 1023 
(quoting Batterton, 648 F.2d at 707); accord Bowen, 834 F.2d at 1047. 
Moreover, ``the critical feature of a rule that satisfies the so-called 
procedural exception is that it covers agency actions that do not 
themselves alter the rights or interests of parties, although it may 
alter the manner in which the parties present themselves or their 
viewpoints to the agency.'' James V. Hurson Assocs., Inc. v. Glickman, 
229 F.3d 277, 280 (D.C. Cir. 2000) (internal quotation marks omitted).
    Here, because the rule modifies the procedures and means for the 
submission of files, the rule is primarily directed toward improving 
the efficient and effective operations of the submission process. See 
Mendoza, 754 F.3d at 1023. By expanding the electronic means by which 
parties may submit documentation, this rule conforms Coast Guard 
acceptance of documentation with the ways in which parties typically 
submit documentation. This expansion improves the efficiency of the 
document submission process for evidence of build and CODs. The other 
changes made by this rule--enabling customers to submit copies of 
original documents during the Initial COD application; removing the 
requirement to return paper CODs to the NVDC during the COD 
replacement, exchange, or deletion process; and increasing the time to 
report changes in information that a COD is based on, from 10 to 30 
days--streamline the file submission process and enhance the Coast 
Guard's ability to comprehensively accept, track, store, and adjudicate 
vessel documentation. Additionally, these changes are mere housekeeping 
initiatives that codify the NVDC's current policies, procedures, and 
practices to align with OMB's policy to move federal agencies to an 
electronic environment. Finally, the rule in no way alters the 
substantive rights of parties. The rule does not affect the substantive 
standards by which the Coast Guard makes determinations or otherwise 
impact agency officials' discretion. The rule has no impact on the 
outcome of NVDC determinations to issue or not issue a vessel owner a 
COD. Indeed, the updated provisions increase access to the COD 
submission process by lessening submission requirements, maintaining 
the option to submit paper documentation, and merely codifying current 
practice and policy. In sum, the rule is exempt from notice-and-comment 
as a rule of procedure under 5 U.S.C. 553(b)(A).
    The Coast Guard also believes the good cause exception under 5 
U.S.C. 553(b)(B) to notice-and-comment rulemaking applies. Section 
553(b)(B) provides an exception from the notice and comment 
requirements when an agency finds, for good cause, that notice and 
comment are ``impracticable, unnecessary, or contrary to the public 
interest.'' As explained above, the changes do not affect the rights or 
interests of regulated parties and indeed are less restrictive. 
Moreover, the rule merely updates the procedure for vessel owners to 
present information electronically while still maintaining paper and 
existing electronic means of submission. The replacement of the 
specific fax submission option with an open-ended electronic submission 
allowance is not only inconsequential but also conforms the submission 
process to modern modalities of document submission actually used by 
the public. Accordingly, because the changes made by the rule are 
insignificant in nature and impact, and

[[Page 101499]]

inconsequential to the public, the Coast Guard believes there exists 
good cause to exempt the rule from notice-and-comment rulemaking under 
5 U.S.C. 553(b)(B).

G. Unfunded Mandates

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

H. Taking of Private Property

    This rule will not cause a taking of private property or otherwise 
have taking implications under Executive Order 12630 (Governmental 
Actions and Interference with Constitutionally Protected Property 
Rights).

I. Civil Justice Reform

    This rule meets applicable standards in sections 3(a) and 3(b)(2) 
of Executive Order 12988 (Civil Justice Reform) to minimize litigation, 
eliminate ambiguity, and reduce burden.

J. Protection of Children

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

K. Indian Tribal Governments

    This rule does not have tribal implications under Executive Order 
13175 (Consultation and Coordination with Indian Tribal Governments), 
because it will not have a substantial direct effect on one or more 
Indian Tribes, on the relationship between the Federal Government and 
Indian Tribes, or on the distribution of power and responsibilities 
between the Federal Government and Indian Tribes.

L. Energy Effects

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

M. Technical Standards and Incorporation by Reference

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

N. Environment

    We have analyzed this rule under Department of Homeland Security 
Management Directive 023-01, Rev. 1, associated implementing 
instructions, and Environmental Planning COMDTINST 5090.1 (series), 
which guide the Coast Guard in complying with the National 
Environmental Policy Act of 1969 (42 U.S.C. 4321-4370f), and have made 
a determination that this action is one of a category of actions that 
do not individually or cumulatively have a significant effect on the 
human environment. A Record of Environmental Consideration supporting 
this determination is available in the docket. For instructions on 
locating the docket, see the ADDRESSES section of this preamble. This 
rule is categorically excluded under paragraph A3 and L54 of Appendix 
A, Table 1 of DHS Instruction Manual 023-01-001-01, Rev 1. Paragraph A3 
pertains to ``promulgation of rules of a strictly administrative or 
procedural nature;'' and those that ``interpret or amend an existing 
regulation without changing its environmental effect.'' Paragraph L54 
pertains to regulations that are editorial or procedural. This rule 
updates 46 CFR part 67 to reflect the NVDC's current processes and 
capabilities, particularly regarding electronic files. The changes 
include removing the requirement for ``original'' documents provided 
for evidence of the facts of build. The rule eliminates references to 
specific electronic means of submission of documents, as NVDC systems 
can no longer accept physical faxes or electronic faxes. Finally, the 
rule harmonizes regulations on the length of time that a vessel owner 
has to report changes in information that a COD is based on, from 10 
days to 30 days with statutory requirements.

List of Subjects in 46 CFR Part 67

    Reporting and recordkeeping requirements, Vessels.

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

PART 67--DOCUMENTATION OF VESSELS

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

    Authority:  14 U.S.C. 664; 31 U.S.C. 9701; 42 U.S.C. 9118; 46 
U.S.C. 2103, 2104, 2107, 12102, 12103, 12104, 12105, 12106, 12113, 
12133, 12139; DHS Delegation 00170.1, Revision No. 01.4.


0
2. Amend Sec.  67.99 by revising paragraph (a) introductory text to 
read as follows:


Sec.  67.99   Evidence of build.

    (a) Evidence of the facts of build may be a copy of either the 
original, completed form CG-1261 (Builder's Certification and First 
Transfer of Title), or other document containing the same information, 
executed by a person having personal knowledge of the facts of build 
because that person:
* * * * *


Sec.  67.113   [Amended]

0
3. Amend Sec.  67.113 in paragraph (e) by removing the number ``10'' 
and adding in its place the number ``30''.

0
4. Amend Sec.  67.141 by revising paragraph (a) to read as follows:


Sec.  67.141   Application procedure; all cases.

* * * * *
    (a) Submit the following to the National Vessel Documentation 
Center:
    (1) Application for Initial Issue, Exchange, or Replacement of 
Certificate of Documentation; or Redocumentation (form CG-1258);
    (2) Title evidence, if applicable; and
    (3) Mortgagee consent on form CG-4593, if applicable.
* * * * *

0
5. Amend Sec.  67.167 by revising paragraph (a) to read as follows:


Sec.  67.167   Requirement for exchange of Certificate of 
Documentation.

    (a) When application for exchange of the Certificate of 
Documentation is required upon the occurrence of one or more of the 
events described in paragraph (b), (c), or (d) of this section,

[[Page 101500]]

or the owner of the vessel chooses to apply for exchange of the 
Certificate pursuant to paragraph (e) of this section, the owner must 
apply for an exchange of the Certificate in accordance with subpart K 
of this part.
* * * * *


Sec.  67.169   [Amended]

0
6. Amend Sec.  67.169 by removing and reserving paragraph (b).

0
7. Amend Sec.  67.171 by revising paragraph (b) to read as follows:


Sec.  67.171   Deletion; requirement and procedure.

* * * * *
    (b) Where a cause for deletion arises for any reason under 
paragraphs (a)(1) through (6) of this section, the owner must send to 
the National Vessel Documentation Center a statement setting forth the 
reason(s) deletion is required.
* * * * *

0
8. Revise Sec.  67.209 to read as follows:


Sec.  67.209   No original instrument requirement.

    A copy of the original signed and acknowledged instrument must be 
presented. The copy may be delivered to the National Vessel 
Documentation Center or transmitted electronically in accordance with 
the procedures in Sec.  67.218 of this part. Signatures may be affixed 
manually or digitally.

0
9. Revise Sec.  67.218 to read as follows:


Sec.  67.218   Optional electronic filing of applications and 
instruments.

    (a) Any instrument identified as eligible for filing and recording 
under Sec.  67.200 may be submitted using electronic filing. The 
method(s) or address(es) to be used for electronic filing may be 
obtained from the National Vessel Documentation Center's website. If 
the instrument submitted for filing pertains to a vessel that is not a 
currently documented vessel, a completed Application for Initial Issue, 
Exchange, or Replacement Certificate of Documentation, or Return to 
Documentation (form CG-1258) (or a letter application for deletion from 
documentation) must already be on file with the National Vessel 
Documentation Center or must be submitted electronically with the 
instrument being filed.
    (b) If the filing of any instrument is terminated for any cause 
under Sec.  67.217(a), the instrument will be returned to the 
submitter.


Sec.  67.219   [Removed]

0
10. Remove Sec.  67.219.

0
11. Revise Sec.  67.321 to read as follows:


Sec.  67.321   Requirement to report change of address of managing 
owner.

    Upon the change of address of the managing owner of a documented 
vessel, the managing owner must report the change of address to the 
National Vessel Documentation Center within 30 days of its occurrence.

    Dated: December 11, 2024.
W.R. Arguin,
Rear Admiral, U.S. Coast Guard, Assistant Commandant for Prevention 
Policy.
[FR Doc. 2024-29555 Filed 12-13-24; 8:45 am]
BILLING CODE 9110-04-P`